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Computer Hardware Reseller Business Plan

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AMT Computers

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

By focusing on its strengths, its key customers, and the underlying values they need, American Management Technology will increase sales to more than $9 million in three years, while improving the gross margin on sales and cash management and working capital.

This business plan leads the way. It renews our vision and strategic focus: adding value to our target market segments, the small business and high-end home office users, in our local market. It also provides the step-by-step plan for improving our sales, gross margin, and profitability. In order to implement these changes and improve profitability, we plan to borrow another $100,000 long-term this year. The amount seems in-line with the balance sheet capabilities.

AMT is built on the assumption that the management of information technology for business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in that it is not inherently a do-it-yourself prospect. Smart business people who aren’t computer hobbyists need to find quality vendors of reliable hardware, software, service, and support. They need to use these quality vendors as they use their other professional service suppliers, as trusted allies. AMT seeks to fulfill these needs and become the leader in business information technology for its region.

AMT provides both computer products and services to make them useful to small businesses. We are especially focused on providing network systems and services to small and medium business. The systems include both PC-based LAN systems and minicomputer server-based systems. Our services include design and installation of network systems, training, and support.

In order to accomplish our objectives, our keys to success over the next three years are:

• Differentiate from box-pushing, price-oriented businesses by offering and delivering service and support–and charging for it.
• Increase gross margin to more than 30%.
• Increase our non-hardware sales to 20% of the total sales by the third year.

AMT was founded as a consulting-oriented value added reseller (VAR), became a reseller to fill the market need for personal computers, and is emphasizing service and support to differentiate itself from price-oriented competitors.

We have one location–a 7,000 square foot store in a suburban shopping center located conveniently close to the downtown area. It includes a training area, service department, offices, and showroom area.

AMT is a privately-held C corporation owned in majority by its founder and president, Ralph Jones. There are six part owners, including four investors and two past employees. The firm includes 21 employees, under the president and four managers. Our main management divisions are sales, marketing, service, and administration. The service department handles service requests, support, training, and development. At present, we are weakest in the area of technical capabilities to manage the database marketing programs and upgraded service and support, particularly with cross-platform networks. We also need to find a training manager.

Recent changes in the computer reseller market have adversely affected AMT. These include margin squeezes, longer collection periods, and lower inventory turnovers. All of these concerns are part of the general trend affecting computer resellers. The margin squeeze is happening throughout the computer industry worldwide.

The only way we can hope to differentiate well is to define the vision of the company to be an information technology ally to our clients. We will not be able to compete in any effective way with the chains using boxes or products as appliances. We need to offer a real alliance that includes such intangibles as confidence, reliability, and knowing that somebody will be there to answer questions and help at the important times.

Our support services, with which we hope to capture market share will include such services as; training, upgrade offers, installation services, network configuration services, etc. The company will seek to aggressively pursue new opportunities.

AMT focuses on local markets, small business and home office, with special focus on the high-end home office and the 5-20 unit small business office.

The last study we saw published has retail sales growing at 5% per year, while Web sales and direct sales are growing at 25% or 30%.

There are several different kinds of computer retailers within the industry including:

• Computer dealers: often focused on a few main brands of hardware, usually offering only a minimum of software, and variable amounts of service and support. Their service and support is not usually very good and their prices are usually higher than the larger stores.
• Chain stores and computer superstores: usually offer decent walk-in service, with very aggressive pricing, and little support.
• Mail order: offer aggressive pricing of boxed product. For the purely price-driven buyer, who buys boxes and expects no service, these are very good options.

None of these direct competitors provides the customization and service that small businesses such as our clients truly need.

Small business buyers are accustomed to buying from vendors who visit their offices. They expect the copy machine vendors, office products vendors, and office furniture vendors, as well as the local graphic artists, freelance writers, or whomever, to visit their office to make their sales. Many small companies turn immediately to the superstores (office equipment, office supplies, and electronics) and mail order to look for the best price, without realizing that there is a better option for them at only a little bit more.

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. Our focus group sessions indicated that our target home office markets 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.

We currently depend on newspaper advertising as our main way to reach new buyers. As we change strategies, however, we need to change the way we promote ourselves. We will be refocusing on our core message of service through radio, cable TV, sales brochures, direct mailers and newspapers. We need to sell the company, not the product. We sell AMT, not Apple, IBM, Hewlett-Packard, or Compaq, or any of our software brand names.

• The Yearly Total Sales chart summarizes our ambitious sales forecast. We expect sales to increase from $5.3 million last year to more than $6 million next year and to more than $9 million in the last year of this plan.

1.1 Objectives

• Sales increasing to more than $9 million by the third year.
• Bring gross margin back up to above 30%, and maintain that level.
• Sell $1.5 million of service, support, and training by 1998.
• Improve inventory turnover to 6 turns by 1998.

1.2 Keys to Success

• Differentiate from box-pushing, price-oriented businesses by offering and delivering service and support — and charging for it.

1.3 Mission

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AMT is such a vendor. It serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor. We make sure that our clients have what they need to run their businesses as well as possible, with maximum efficiency and reliability. Many of our information applications are mission critical, so we give our clients the assurance that we will be there when they need us.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

AMT is a computer reseller based in the Uptown area. It was founded as a consulting-oriented VAR, became a reseller to fill the market need for personal computers, and is emphasizing service and support to differentiate itself from more price oriented national chains.

2.1 Company History

AMT has been caught in the vise grip of margin squeezes that have affected computer resellers worldwide. Although the chart titled Past Financial Performance shows that we have had healthy growth in sales, it also shows declining gross margin and declining profits.

The more detailed numbers in the Past Performance table include other indicators of some concern:

The gross margin % has been declining steadily, as we see in the chart.

Both collection days and inventory turnover are getting steadily worse.

All of these concerns are part of the general trend affecting computer resellers. The margin squeeze is happening throughout the computer industry worldwide.

2.2 Company Ownership

AMT is a privately-held C corporation owned in majority by its founder and president, Ralph Jones. There are six part owners, including four investors and two past employees. The largest of these (in percent of ownership) are Frank Dudley, our attorney, and Paul Karots, our public relations consultant. Neither owns more than 15%, but both are active participants in management decisions.

2.3 Company Locations and Facilities

Products and services.

AMT provides both computer products and services to make them useful to small business. We are especially focused on providing network systems and services to small and medium business. The systems include both PC-based LAN systems and minicomputer server-based systems. Our services include design and installation of network systems, training, and support.

3.1 Product and Service Description

In personal computers, we support three main lines:

The Super Home is our smallest and least expensive line, initially positioned by its manufacturer as a home computer. We use it mainly as a cheap workstation for small business installations. Its specifications include …[additional specifics omitted]

The Power User is our main up-scale line. It is our most important system for high-end home and small business main workstations, because of …. Its key strengths are …. Its specifications include ….[additional specifics omitted]

The Business Special is an intermediate system, used to fill the gap in the positioning. Its specifications include … [additional specifics omitted]

In peripherals, accessories and other hardware, we carry a complete line of necessary items from cables to forms to mousepads … [additional specifics omitted]

In service and support, we offer a range of walk-in or depot service, maintenance contracts and on-site guarantees. We have not had much success selling service contracts. Our networking capabilities …[additional specifics omitted]

In software and training, we offer … [additional specifics omitted]

3.2 Competitive Comparison

The only way we can hope to differentiate well is to define the vision of the company to be an information technology ally to our clients. We will not be able to compete in any effective way with the chains using boxes or products as appliances. We need to offer a real alliance.

The benefits we sell include many intangibles: confidence, reliability, knowing that somebody will be there to answer questions and help at the important times.

These are complex products, products that require serious knowledge and experience to use, and our competitors sell only the products themselves.

Unfortunately, we cannot sell the products at a higher price just because we offer services; the market has shown that it will not support that concept. We have to also sell the service and charge for it separately.

3.3 Sales Literature

Copies of our brochure and advertisements are attached as appendices. Of course, one of our first tasks will be to change the message of our literature to make sure we are selling the company, rather than the product.

3.4 Fulfillment

Our costs are part of the margin squeeze. As competition on price increases, the squeeze between manufacturers’ price into channels and end-users’ ultimate buying price continues.

With the hardware lines, our margins are declining steadily. We generally buy at … Our margins are thus being squeezed from the 25% of five years ago to more like 13-15% at present. In the main-line peripherals a similar trend shows, with prices for printers and monitors declining steadily. We are also starting to see that same trend with software ….

In order to hold costs down as much as possible, we concentrate our purchasing with Hauser, which offers 30-day net terms and overnight shipping from the warehouse in Dayton. We need to concentrate on making sure our volume gives us negotiating strength.

In accessories and add-ons we can still get decent margins, 25% to 40%.

3.5 Technology

We have for years supported both Windows and Macintosh technology for CPUs, although we’ve switched vendors many times for the Windows (and previously DOS) lines. We are also supporting Novell, Banyon, and Microsoft networking, Xbase database software, and Claris application products.

3.6 Future Products and Services

We must remain on top of the new technologies, because this is our bread and butter. For networking, we need to provide better knowledge of cross platform technologies. Also, we are under pressure to improve our understanding of direct-connect internet and related communications. Finally, although we have a good command of desktop publishing, we are concerned about getting better at the integration of technologies that creates fax, copier, printer, and voice mail as part of the computer system.

3.7 Service and Support

Our strategy hinges on providing excellent service and support. This is critical. We need to differentiate on service and support, and to therefore deliver as well.

• Training: details would be essential in a real business plan, but not in this sample plan.
• Upgrade offers: details would be essential in a real business plan, but not in this sample plan.
• Our own internal training: details would be essential in a real business plan, but not in this sample plan.
• Installation services: details would be essential in a real business plan, but not in this sample plan.
• Custom software services: details would be essential in a real business plan, but not in this sample plan.
• Network configuration services: details would be essential in a real business plan, but not in this sample plan.

Market Analysis Summary how to do a market analysis for your business plan.">

4.1 market segmentation.

The segmentation allows some room for estimates and nonspecific definitions. We focus on a small-medium level of small business, and it is hard to find information to make an exact classification. Our target companies are large enough to need the high-quality information technology management we offer, but too small to have a separate computer management staff such as an MIS department. We say that our target market has 10-50 employees, and needs 5-20 workstations tied together in a local area network; the definition is flexible.

Defining the high-end home office is even more difficult. We generally know the characteristics of our target market, but we can’t find easy classifications that fit into available demographics. The high-end home office business is a business, not a hobby. It generates enough money to merit the owner’s paying real attention to the quality of information technology management, meaning that there is both budget and concerns that warrant working with our level of quality service and support. We can assume that we aren’t talking about home offices used only part-time by people who work elsewhere during the day, and that our target market home office wants to have powerful technology and a lot of links between computing, telecommunications, and video.

4.2 Service Business Analysis

We are part of the computer reselling business, which includes several kinds of businesses:

• Computer dealers: storefront computer resellers, usually less than 5,000 square feet, often focused on a few main brands of hardware, usually offering only a minimum of software, and variable amounts of service and support. These are usually old-fashioned (1980s-style) computer stores and they usually offer relatively few reasons for buyers to shop with them. Their service and support is not usually very good and their prices are usually higher than the larger stores.
• Chain stores and computer superstores: these include major chains such as CompUSA, Computer City, Future Shop, etc. They are almost always more than 10,000 square feet of space, usually offer decent walk-in service, and are often warehouse-like locations where people go to find products in boxes with very aggressive pricing, and little support.
• Mail order: the market is served increasingly by mail order businesses that offer aggressive pricing of boxed product. For the purely price-driven buyer, who buys boxes and expects no service, these are very good options.
• Others: there are many other channels through which people buy their computers, usually variations of the main three types above.

4.2.1 Competition and Buying Patterns

The 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.

Our focus group sessions indicated that our target Home Offices 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. The Home Office buyers tend to want immediate, local solutions to problems.

4.2.2 Main Competitors

Chain stores: We have Store 1 and Store 2 already within the valley, and Store 3 is expected by the end of next year. If our strategy works, we will have differentiated ourselves sufficiently to not have to compete against these stores.

Strengths: national image, high volume, aggressive pricing, economies of scale.

Weaknesses: lack of product, service and support knowledge, lack of personal attention.

Other local computer stores: Store 4 and Store 5 are both in the downtown area. They are both competing against the chains in an attempt to match prices. When asked, the owners will complain that margins are squeezed by the chains and customers buy on price only. They say they tried offering services and that buyers didn’t care, instead preferring lower prices. We think the problem is also that they didn’t really offer good service, and also that they didn’t differentiate from the chains.

4.2.3 Business Participants

• The national chains are a growing presence. CompUSA, Computer City, Incredible Universe, Babbages, Egghead, and others. They benefit from national advertising, economies of scale, volume buying, and a general trend toward name-brand loyalty for buying in the channels as well as for products.
• Local computer stores are threatened. These tend to be small businesses, owned by people who started them because they liked computers. They are under-capitalized and under-managed. Margins are squeezed as they compete against the chains, in a competition based on price more than on service and support.

4.2.4 Distributing a Service

Small Business buyers are accustomed to buying from vendors who visit their offices. They expect the copy machine vendors, office products vendors, and office furniture vendors, as well as the local graphic artists, freelance writers, or whomever, to visit their office to make their sales.

There is usually a lot of leakage in ad-hoc purchasing through local chain stores and mail order. Often the administrators try to discourage this, but are only partially successful.

Unfortunately our Home Office target buyers may not expect to buy from us. Many of them turn immediately to the superstores (office equipment, office supplies, and electronics) and mail order to look for the best price, without realizing that there is a better option for them at only a little bit more.

4.3 Target Market Segment Strategy

4.3.1 market needs.

All personal computer users need support and service. The self reliant ones, however, supply those needs themselves. In home offices, these are the knowledgeable computer users who like to do it themselves. Among the businesses, these are businesses that have people on staff.

4.3.2 Market Trends

The most obvious and important trend in the market is declining prices. This has been true for years, but the trend seems to be accelerating. We see the major brand-name manufacturers putting systems together with amazing specs–more power, more speed, more memory, more disk storage–at amazing prices. The major chain shops are selling brand-name powerful computers for less than $1,000.

This may be related to a second trend, which is the computer as throw-away appliance. By the time a system needs upgrading, it is cheaper to buy completely new. The increasing power and storage of a sub-$1000 system means buyers are asking for less service.

A third trend is ever greater connectivity. Everybody wants onto the internet, and every small office wants a LAN. A lot of small offices want their LAN connected to the internet.

4.3.3 Market Growth

As prices fall, unit sales increase. The published market research on sales of personal computers is astounding, as the United States market alone is absorbing more than 30 million units per year, and sales are growing at more than 20 percent per year. We could quote Dataquest, Infocorp, IDC, or others; it doesn’t matter, they all agree on high growth of CPU sales.

Where growth is not as obvious is the retail market. A report in CRW says Dell is now selling $5 million monthly over the web, and we assume Gateway and Micron are both close to that. Direct mail has given way to the web, but catalogs are still powerful, and the non-retail sale is more accepted every day. The last study we saw published has retail sales growing at 5% per year, while web sales and direct sales are growing at 25% or 30%.

Strategy and Implementation Summary

The home offices in Tintown are an important growing market segment. Nationally, there are approximately 30 million home offices, and the number is growing at 10% per year. Our estimate in this plan for the home offices in our market service area is based on an analysis published four months ago in the local newspaper.

Home offices include several types. The most important, for our plan’s focus, are the home offices that are the only offices of real businesses, from which people make their primary living. These are likely to be professional services such as graphic artists, writers, and consultants, some accountants and the occasional lawyer, doctor, or dentist. There are also part-time home offices with people who are employed during the day but work at home at night, people who work at home to provide themselves with a part-time income, or people who maintain home offices relating to their hobbies; we will not be focusing on this segment.

Small business within our market includes virtually any business with a retail, office, professional, or industrial location outside of someone’s home, and fewer than 30 employees. We estimate 45,000 such businesses in our market area.

The 30-employee cutoff is arbitrary. We find that the larger companies turn to other vendors, but we can sell to departments of larger companies, and we shouldn’t be giving up leads when we get them.

5.1 Strategy Pyramid

For placing emphasis on service and support, our main tactics are networking expertise, excellent training, and developing our own proprietary software/network administrative system. Our specific programs for networking include mailers and internal training. Specific programs for training include direct mail promotion, and train-the-trainers programs. For developing our own proprietary systems, our programs are company direct mail marketing, and working with VARs.

Our second strategy is emphasizing relationships. The tactics are marketing the company (instead of the products), more regular contacts with the customer, and increasing sales per customer. Programs for marketing the company include new sales literature, revised ad strategy, and direct mail. Programs for more regular contacts include call-backs after installation, direct mail, and sales management. Programs for increasing sales per customer include upgrade mailings and sales training.

5.2 Value Proposition

Our value proposition has to be different from the standard box-oriented retail chain. We offer our target customer, who is service seeking and not self reliant, a vendor who acts as a strategic ally, at a premium price that reflects the value of reassurance that systems will work.

5.3 Competitive Edge

Our competitive edge is our positioning as strategic ally with our clients, who are clients more than customers. 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 need it.

5.4 Sales Strategy

• We need to sell the company, not the product. We sell AMT, not Apple, IBM, Hewlett-Packard, or Compaq, or any of our software brand names.
• We have to sell our service and support. The hardware is like the razor, and the support, service, software services, training, and seminars are the razor blades. We need to serve our customers with what they really need.

5.4.1 Sales Forecast

The important elements of the sales forecast are shown in the Total Sales by Month in Year 1 table. The non-hardware sales increase to over $2 million total in the third year.

5.4.2 Sales Programs

• Direct mail: Use great detail to describe your company’s programs here.
• Seminars: Use great detail to describe your company’s programs here.

5.4.3 Distribution Strategy

Our most important marketing program is [specifics omitted]. Leslie Doe will be responsible, with budget of $XX,XXX and milestone date of the 15th of May. This program is intended to [objectives omitted]. Achievement should be measured by [specific concrete measurement].

Another key marketing program is [specifics omitted]. [Name] will be responsible, with budget of $XX,XXX and milestone date of [date]. This program is intended to [objectives omitted]. Achievement should be measured by [specific concrete measurement].

5.5 Marketing Strategy

The marketing strategy is the core of the main strategy:

• Emphasize service and support.
• Build a relationship business.
• Focus on small business and high-end home office as key target markets.

5.5.1 Promotion Strategy

We depend on newspaper advertising as our main way to reach new buyers. As we change strategies, however, we need to change the way we promote ourselves:

Advertising We’ll be developing our core positioning message: “24 Hour On-Site Service – 365 Days a Year With No Extra Charges” to differentiate our service from the competition. We will be using local newspaper advertising, radio, and cable TV to launch the initial campaign.

Sales Brochure Our collaterals have to sell the store, and visiting the store, not the specific book or discount pricing.

Direct Mail We must radically improve our direct mail efforts, reaching our established customers with training, support services, upgrades, and seminars.

Local Media It’s time to work more closely with the local media. We could offer the local radio a regular talk show on technology for small business, as one example.

5.5.2 Pricing Strategy

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.

We cannot build the service and support revenue into the price of products. The market can’t bear the higher prices and the buyer feels ill-used when they see the same product priced lower at the chains. Despite the logic behind this, the market doesn’t support this concept.

Therefore, we must make sure that we deliver and charge for service and support. Training, service, installation, networking support–all of this must be readily available and priced to sell and deliver revenue.

5.5.3 Positioning Statement

For businesspeople who want to be sure their computer systems are always working reliably, AMT is a vendor and trusted strategic ally who makes sure their systems work, their people are trained, and their down time is minimal. Unlike the chain retail stores, it knows the customer and goes to his or her site when needed, and offers proactive support, service, training, and installation.

5.6 Milestones

Our important milestones are shown on the following table. Row by row, they track the need to follow up on strategy with specific activities. Most of the activities on the list can be easily tied to our strategic goals of selling more service and enhancing the relationship with the customer.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Our management philosophy is based on responsibility and mutual respect. People who work at AMT want to work at AMT because we have an environment that encourages creativity and achievement.

6.1 Organizational Structure

• The team includes 21 employees, under a president and four managers.
• Our main management divisions are sales, marketing, service, and administration. Service handles service, support, training, and development.

6.2 Management Team

Ralph Jones, President: 46 years old, founded AMT in 1984 to focus on reselling high-powered personal computers to small business. Degree in computer science, 15 years with Large Computer Company, Inc. in positions ending with project manager. Ralph has been attending courses at the local Small Business Development Center for more than six years now, steadily adding business skills and business training to his technical background.

Sabrina Benson, VP Marketing: 36 years old, joined us last year following a very successful career with Continental Computers. Her hiring was the culmination of a long recruiting search. With Continental she managed the VAR marketing division. She is committed to re-engineering AMT to be a service and support business that sells computers, not vice-versa. MBA, undergraduate degree in history.

Gary Andrews, VP Service and Support: 48 years old, 18 years with Large Computers, Inc. in programming and service-related positions, 7 years with AMT. MS in computer science and BS in electrical engineering.

Laura Dannis, VP Sales: 32, former teacher, joined AMT part-time in 1991 and went full-time in 1992. Very high people skills, BA in elementary education. She has taken several sales management courses at the local SBDC.

John Peters, Director of Administration: 43, started with AMT as a part-time bookkeeper in 1987, and has become full-time administrative and financial backbone of the company.

6.3 Management Team Gaps

At present we believe we have a good team for covering the main points of the business plan. The addition of Sabrina Benson was important as a way to cement our fundamental re-positioning and re-engineering.

At present, we are weakest in the area of technical capabilities to manage the database marketing programs and upgraded service and support, particularly with cross-platform networks. We also need to find a training manager.

6.4 Personnel Plan

The Personnel Plan reflects the need to bolster our capabilities to match our positioning. Our total headcount should increase to 26 this first year, and to 31 by the third year. Detailed monthly projections are included in the appendix.

6.5 Other Management Considerations

Our attorney, Frank Dudley, is also a co-founder. He invested significantly in the company over a period of time during the 1980’s. He remains a good friend of Ralph and has been a steady source of excellent legal and business advice.

Paul Karots, public relations consultant, is also a co-founder and co-owner. Like Dudley, he invested in the early stages and remains a trusted confidant and vendor of public relations and advertising services.

Financial Plan investor-ready personnel plan .">

The most important element in the financial plan is the critical need for improving several of the key factors that impact cash flow:

• We must at any cost stop the slide in inventory turnover and develop better inventory management to bring the turnover back up to 6 turns by the third year. This should also be a function of the shift in focus towards service revenues to add to the hardware revenues.
• We must also bring the gross margin back up to 30%. This too is related to improving the mix between hardware and service revenues, because the service revenues offer much better margins.
• We plan to borrow another $100,000 long-term this year. The amount seems in line with the balance sheet capabilities.

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in Table 7.1. The key underlying assumptions are:

• We assume a slow-growth economy, without major recession.
• We assume of course that there are no unforeseen changes in technology to make products immediately obsolete.

7.2 Key Financial Indicators

The Benchmark Comparison chart highlights our ambitious plans to correct declining gross margin and inventory turnover. The chart illustrates why we think the ambitious sales increases we plan are reasonable. We have had similar increases in the recent past.

7.3 Break-even Analysis

For our break-even analysis, we assume running costs which include our full payroll, rent, and utilities, and an estimation of other running costs. Payroll alone, at our present run rate, is only about $55,000. Margins are harder to assume. Our overall average is based on projections for the coming year. We hope to attain a margin that high in the future.

The chart shows how much we need to sell per month to break even, according to these assumptions.

7.4 Projected Profit and Loss

The most important assumption in the Projected Profit and Loss statement is the gross margin, which is supposed to increase. This is up from barely 21% in the last year. The increase in gross margin is based on changing our sales mix, and it is critical. Month-by-month assumptions for profit and loss are included in the appendix.

7.5 Projected Cash Flow

The cash flow depends on assumptions for inventory turnover, payment days, and accounts receivable management. Our projected 60-day collection days is not ideal, but it is realistic in this market, and hard for us to effectively change.  We’re better off planning for it than ignoring it. We need significant new financing in March to get through a cash flow dip as we build up for mid-year sales.

7.6 Projected Balance Sheet

The Projected Balance Sheet is quite solid. We do not project any real trouble meeting our debt obligations–as long as we can achieve our specific objectives.

7.7 Business Ratios

The table follows with our main business ratios. We do intend to improve gross margin, collection days, and inventory turnover. The industry standards are taken for industry classification 5734 in the SIC code.  We assume that the difference between our results and the standards is that the standards include

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How to write a business plan for a computer hardware wholesaler?

Creating a business plan for a computer hardware wholesaler is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating a computer hardware wholesaler business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for a computer hardware wholesaler?

• What information is needed to create a business plan for a computer hardware wholesaler?
• What goes in the financial forecast for a computer hardware wholesaler?
• What goes in the written part of a computer hardware wholesaler business plan?
• What tool can I use to write my computer hardware wholesaler business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a computer hardware wholesaler business plan in the first place.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your computer hardware wholesaler is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your computer hardware wholesaler, you'll have to:

• Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
• Determine the pace at which the business needs to progress to meet its objectives as scheduled,
• Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To get visibility on future cash flows

If your small computer hardware wholesaler runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your computer hardware wholesaler's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your computer hardware wholesaler business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your computer hardware wholesaler's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your computer hardware wholesaler.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your computer hardware wholesaler and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your computer hardware wholesaler's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your computer hardware wholesaler, let's explore what information is required to create a compelling plan.

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Information needed to create a business plan for a computer hardware wholesaler

You need the right data in order to project sales, investments and costs accurately in the financial forecast of your computer hardware wholesaler business plan.

Below, we'll cover three key pieces of information you should gather before drafting your business plan.

Carrying out market research for a computer hardware wholesaler

Carrying out market research before writing a business plan for a computer hardware wholesaler is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

Your market research may reveal that computer hardware wholesalers may experience an increased demand for laptop computers and tablet devices, as they become more popular for both personal and professional use. Additionally, your market research may suggest that there could be a shift towards more eco-friendly and energy-efficient computer hardware, as businesses and consumers become more conscious about their environmental impact.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your computer hardware wholesaler.

Developing the marketing plan for a computer hardware wholesaler

Before delving into your computer hardware wholesaler business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a computer hardware wholesaler

Whether you are at the beginning stages of your computer hardware wholesaler or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

An example of the possible staffing and equipment costs that a computer hardware wholesaler might incur would be the salary costs of the employees who work in the warehouse, as well as the costs of the machines and tools used to move and store the hardware. Additionally, the wholesaler might incur costs associated with the maintenance of the warehouse, such as electricity costs and the costs of cleaning supplies.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your computer hardware wholesaler.

What goes into your computer hardware wholesaler's financial forecast?

The financial forecast of your computer hardware wholesaler will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a computer hardware wholesaler are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

The projected P&L statement for a computer hardware wholesaler shows how much revenue and profits your business is expected to generate in the future.

Ideally, your computer hardware wholesaler's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established computer hardware wholesaler. And similarly, an established company should showcase a higher level of profitability than a new venture.

The forecasted balance sheet of your computer hardware wholesaler

The projected balance sheet of your computer hardware wholesaler will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your computer hardware wholesaler projected balance sheet provides an understanding of your computer hardware wholesaler's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your computer hardware wholesaler's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your computer hardware wholesaler has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your computer hardware wholesaler business plan.

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

• Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
• Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
• Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your computer hardware wholesaler business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting a computer hardware wholesaler.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

Having this table helps understand what costs are involved in setting up the computer hardware wholesaler, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of a computer hardware wholesaler business plan is understood, let's focus on what goes into the written part of the plan.

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The written part of a computer hardware wholesaler business plan

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a computer hardware wholesaler business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your computer hardware wholesaler's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your computer hardware wholesaler, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

The second section in your computer hardware wholesaler's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your computer hardware wholesaler, you may wish to emphasize its proximity to major highways and airports, which could make it a convenient hub for distribution. The region could also offer access to a large population, allowing for the potential for increased sales. Additionally, the area could have a diverse customer base, which could provide the wholesaler with a steady stream of business. Furthermore, the region might have a favorable business climate, offering tax credits or other incentives that could make running the wholesaler more attractive.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your computer hardware wholesaler might offer a wide variety of components such as motherboards, processors, memory, and storage drives to customers. They might also provide services such as technical support to assist customers with troubleshooting and installation of hardware as well as bulk shipping services for large orders. Furthermore, they can provide customers with access to exclusive deals and discounts on products that are not available elsewhere.

4. The market analysis

When presenting your market analysis in your computer hardware wholesaler business plan, you should detail the customers' demographics and segmentation, target market, competition, barriers to entry, and any regulations that may apply.

The goal of this section is to help the reader understand how big and attractive your market is, and demonstrate that you have a solid understanding of the industry.

You should start with the demographics and segmentation subsection, which gives an overview of the addressable market for your computer hardware wholesaler, the main trends in the marketplace, and introduces the different customer segments and their preferences in terms of purchasing habits and budgets.

The target market section should follow and zoom on the customer segments your computer hardware wholesaler is targeting, and explain how your products and services meet the specific needs of these customers.

For example, your target market might include small-to-medium sized computer repair businesses. These businesses will likely be looking for high-quality, yet affordable computer hardware and components to use in their repairs. They may also be looking for a reliable supplier of such parts to ensure they are able to meet their customers' needs.

Then comes the competition subsection, where you should introduce your main competitors and explain what differentiates you from them.

Finally, you should finish your market analysis by giving an overview of the main regulations applicable to your computer hardware wholesaler.

5. The strategy section

When you write the strategy section of your computer hardware wholesaler business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your computer hardware wholesaler faces a variety of risks. They may experience an increase in the cost of parts, making it difficult to stay competitive in the market. Additionally, they could experience supply chain disruptions, which would slow the delivery of products to customers. It is also possible that the wholesaler might face a lawsuit due to the quality of the parts they are shipping, leading to costly legal fees.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your computer hardware wholesaler.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your computer hardware wholesaler's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You could have physical assets in the form of a warehouse or other buildings, along with the equipment necessary to store, manage, and ship the hardware. You may also have intellectual property such as a unique logo or brand, or a unique technology or process. This could provide a key competitive advantage in the market and help you to differentiate your products and services.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a computer hardware wholesaler business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my computer hardware wholesaler's business plan?

In this section, we will be reviewing the two main solutions for creating a computer hardware wholesaler business plan:

• Using specialized online business plan software,
• Outsourcing the plan to the business plan writer.

Using an online business plan software for your computer hardware wholesaler's business plan

Using online business planning software is the most efficient and modern way to create a computer hardware wholesaler business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

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Hiring a business plan writer to write your computer hardware wholesaler's business plan

Outsourcing your computer hardware wholesaler business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your computer hardware wholesaler business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your computer hardware wholesaler's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a computer hardware wholesaler business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my computer hardware wholesaler business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a computer hardware wholesaler business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
• A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for a computer hardware wholesaler. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

• How to write a 5 years business plan
• Business plan myths

Know someone who owns or wants to start a computer hardware wholesaler? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How To Write a Business Plan for Computer IT Hardware Store in 9 Steps: Checklist

By alex ryzhkov, resources on computer & hardware store.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Are you considering starting a Computer IT Hardware store? You've come to the right place. Technology is constantly evolving and advancing, making the IT industry a lucrative one. According to Statista , the global IT market size was valued at $1.2 trillion in 2019 and is expected to grow to $1.9 trillion by 2025. There is no better time than now to create a successful IT hardware store.

To ensure your success, a well-written business plan is essential. In this post, we outline nine crucial steps to help you create a comprehensive and effective business plan for your Computer IT Hardware store. From conducting market research to creating a team and management structure, we cover everything you need to consider before opening your doors.

Let's dive in and get your business started on the right foot.

Conduct Market Research

Market research is an important step before starting any business, and it becomes even more crucial when you're opening an IT hardware store. It is essential to understand your market, analyze competition, and identify your target audience before making any significant investment.

Begin by researching the IT hardware industry trends, including the latest products, devices, and services. Look for articles, reports, and publications that specialize in the IT hardware industry and understand the different components involved. This research will help you to identify the most popular computer brands, the latest technologies, and the customer requirements for the hardware they need.

• Use online forums to get opinions from existing customers in the IT hardware industry.
• Look for industry reports from your national and local government to identify potential business opportunities.
• Attend industry trade shows, workshops, and conferences to meet industry experts and find new suppliers.

Demographics research is also important to identify the audience for your IT hardware store. You need to understand the target market, including their ages, incomes, genders, and education levels. By doing this, you can tailor the services and products to meet their specific needs and preferences. Identify market gaps that can help you position yourself ahead of your competition.

Analyzing competition is another crucial aspect of market research, which involves understanding the strengths and weaknesses of your competitors. Identifying gaps in their services and products can help you to set competitive prices, target unique customer needs and create innovative offers.

• Visit the websites of your competitors and analyze their products, services, prices, and other value propositions.
• Visit the competitors' physical store locations, observe how they are managing the store, and converse with their staff to identify any critical gaps.

Overall, conducting market research is critical for identifying market opportunities, understanding your business's potential, and setting realistic benchmarks for your IT hardware store in the industry.

Identify Target Customers

When it comes to starting a successful computer IT hardware store, identifying your target customers is essential. Without a clear understanding of who your ideal customer is, your marketing efforts and product offerings could fall flat. Here are some tips for identifying your target customers:

• Start by analyzing the demographics of your area. Look at factors like age, income, and occupation to get an idea of who your potential customers are.
• Consider the types of products and services you will be offering. Are you targeting individual consumers or businesses? Will you focus on a specific industry or niche, such as gamers or graphic designers?
• Think about the pain points your target customers may experience. What problems can you solve for them with your products and services?
• Research competitors in your area and see who their customers are. Are there any gaps in the market that you can fill by targeting a different segment of customers?

Once you have a clear understanding of who your target customers are, create customer personas to represent different segments of your audience. These personas should include information like age, gender, occupation, interests, pain points, and buying habits.

By identifying your target customers and creating personas, you can tailor your marketing efforts and product offerings to meet their specific needs and preferences. This will help you build a loyal customer base and differentiate yourself from competitors in the market.

Analyze Competition

It is essential to know about your competitors in the market so you can understand their strengths, weaknesses, and pricing strategies. By analyzing your competitors, you can get an idea of what your target customers want and how you can offer them better products and services. Here are some crucial steps to analyze your competition:

• Identify Competitors: You need to know who your competition is and where they are located. Identify companies that sell similar IT hardware and services in your area and compare their offerings.
• Compare Pricing: Check the prices of your competitors and see how they compare to yours. Make sure that you are not overcharging or undercharging for your products and services. You need to find a balance between affordability and profitability.
• Assess Quality: Analyze the quality of products and services offered by your competitors. Identify areas where they excel and where they fall short. Use this information to improve the quality of your offerings.
• Examine Marketing Strategies: Check out the marketing strategies used by your competitors in promoting their products and services. Evaluate the channels they use to reach their customers and the messages they convey. Use this information to enhance your marketing strategy.
• Consider Online Presence: Analyze the online presence of your competitors. Check their website, social media accounts, and online reviews. Consider creating an online presence for your business as well to expand your customer base.
• Use Google search to find your competitors.
• Visit your competitor's physical stores to see the products and services they offer.
• Ask customers who have used your competitor's products or services about their experience.
• Join local business groups or associations to learn more about the market and your competition.

By analyzing your competition, you can make informed decisions about your business strategy and offerings. It can help you identify gaps in the market and gain a competitive advantage.

Determine Startup Costs

Before starting your computer IT hardware store, you need to have a clear idea of the amount of money that will be required to get the business up and running. Determining startup costs is crucial in order to properly allocate financial resources and to have a realistic understanding of the financial requirements of your new venture.

Startup costs refer to the one-time expenses that are essential to start your business. These include expenses such as equipment, rent, inventory, licenses, legal fees, marketing, and other costs:

• Equipment: You will need to purchase computer hardware and other IT equipment.
• Rent: You will need to rent a space where you can operate your computer IT hardware store.
• Inventory: You will need to purchase inventory for your store. This should include a variety of computers, laptops, tablets, and other IT-related hardware.
• Licenses: You will need to obtain the necessary licenses from state and local governments to operate your business.
• Legal fees: You may need to consult with a lawyer to help you with the legal aspects of starting a business, such as drafting of contracts and filing necessary documents.
• Marketing: You will need to create a marketing campaign to attract customers.
• Other costs: Other costs may include insurance, utilities, and office supplies.
• Keep a detailed record of startup costs. As you go through the process of starting your business, keep track of all the expenses you incur. This will help you better understand your finances and make informed decisions regarding your budget.
• Consider finding a business mentor who has experience opening a computer IT hardware store. You can learn a lot from someone who has already gone through the process, including what expenses you may have overlooked.

Determining the startup costs for your computer IT hardware store can be a daunting task, but understanding the financial requirements of your new business venture is essential to its success. By accurately estimating your startup costs, you will be better prepared to make informed financial decisions and ensure that your business is financially sustainable in the long run.

Determine Funding Sources

Starting an IT hardware store business requires a significant amount of initial capital to cover expenses, such as purchasing inventory, equipment, and office rent. Therefore, identifying the right funding source is crucial to ensure that you have enough resources to get your business off the ground. Here are some of the most common funding sources that you can consider:

• Personal Savings: Starting a business with personal savings is the safest and most straightforward way to fund your startup. You can use any savings you have or tap into your retirement accounts to support your business.
• Friends and Family: Reach out to friends and family members who may be interested in investing in your business. Consider offering them equity in your venture in exchange for financial support.
• Small Business Administration (SBA) Loans: The SBA offers different loan programs for small business owners. You can apply for a loan through their network of lenders to help finance start-up costs, equipment purchases, and working capital.
• Crowdfunding: With the advent of online platforms like Kickstarter, Indiegogo, and GoFundMe, you can seek individual contributions from people who are interested in your business idea. Crowdfunding is a popular funding option for entrepreneurs who want to test the market and raise capital at the same time.
• Angel Investors and Venture Capitalists: You can pitch your business idea to angel investors or venture capitalists who are interested in funding innovative startups. These investors typically invest in high-risk, high-growth potential businesses and expect a substantial return on their investment.
• Choose a funding source that aligns with your business goals and long-term plans.
• Prepare a compelling business plan that outlines your business model, target audience, and financial projections to attract investors.
• Research on different funding options to explore all the possible sources of funding and choose the one that suits your business needs best.

Before you select a funding source, it's important to determine your start-up costs to identify the amount of capital you need to get your business off the ground. Keeping track of your expenses, maintaining a healthy cash flow, and minimizing unnecessary costs can help ensure the success of your IT hardware store business.

Identify Location

Choosing the right location for your computer IT hardware store is crucial for the success of your business. You need to consider certain factors, such as accessibility, visibility, competition, and cost, before deciding on the location.

Accessibility: Make sure that your store is easily accessible to your target customers. Consider the proximity to major transportation hubs, such as airports, train stations, and bus depots. Also, evaluate the availability of parking spaces and accessibility for disabled customers.

Visibility: Your store should be visible to a large number of potential customers. Consider selecting a location that has high foot traffic and is located in a busy commercial area that is frequented by your target customers.

• Consider opening your store in a shopping mall or near a major retail store, as they attract a considerable amount of foot traffic.
• Choose a location that is easily recognizable and memorable.

Competition: Evaluate your competition in the area. Make sure that you are not opening your store near similar establishments that offer the same products and services. Consider the competitiveness of the market, and make sure that your store has something unique to offer.

• Research the demographics of the area to ensure that there is a need for your products and services.
• Consider conducting a SWOT analysis to identify the strengths, weaknesses, opportunities, and threats of your business and your competitors.

Cost: Consider the cost of renting or purchasing a store in the area. Make sure that the location is within your budget without compromising the quality of the location.

• Consider leasing a storefront instead of purchasing a property if you have limited capital.
• Make sure that the location is in line with the projected revenue of your business.

Overall, identifying the right location for your computer IT hardware store requires in-depth research, analysis, and planning. Take your time to make an informed decision and select a location that offers the best opportunity for your business to succeed.

Create A Business Structure

When it comes to starting a computer IT hardware store, it is important to have a clear idea of the business structure that will work best for your needs. Whether you are starting your business alone or with a group of co-founders, taking the time to create a solid structure will help ensure that everyone on the team knows their roles and responsibilities.

The most common types of business structures include sole proprietorship, partnership, limited liability company (LLC), and corporation. The choice you make will depend on factors such as the number of co-founders, your personal liability preferences, and tax considerations. Consulting with a legal or financial professional can help you decide which business structure will work best for your specific situation.

• Consider registering your business with the state or obtaining necessary licenses and permits
• Develop a business plan to help guide your decision-making process
• Choose a name that accurately reflects your brand and is legally available for use

Once you have chosen your business structure, it is important to create a partnership agreement or operating agreement that outlines the roles and responsibilities of each team member, as well as important aspects such as ownership percentages and profit distributions. This document can serve as a valuable reference point and conflict resolution tool in the event that disagreements arise in the future.

It is also important to register your business with the appropriate federal and state agencies, obtain necessary tax IDs and permits, and open a business bank account to help keep your personal and business finances separate.

• Take into account any legal or financial implications of each business structure
• Consider consulting with a legal or financial professional for guidance
• Set up clear policies and procedures for business operations, such as inventory management and customer service

Overall, creating a solid business structure is an essential step in setting up your computer IT hardware store for success. Taking the time to outline roles and responsibilities, register your business, and consult with professionals can help you create a strong foundation for growth and sustainability.

Develop A Marketing And Sales Plan

Now that you have a business structure and team in place, it's time to develop your marketing and sales plan to attract customers to your computer IT hardware store . A well-designed plan can help you build your brand, reach your target audience, and drive sales. Here are some key steps to develop a marketing and sales plan.

• Define Your Unique Selling Proposition (USP): Clearly define what sets your computer IT hardware store apart from others in the market. Identify your strengths and unique offerings that will appeal to your target customers.
• Identify Your Target Audience: Identify your ideal customer demographic that will benefit from your computer IT hardware store. Identify their needs and wants and tailor your marketing strategies accordingly.
• Create a Content Strategy: Develop a content strategy that aligns with your USP and target audience. This is an excellent way to build your brand and establish yourself as a thought leader in the industry. The content could be in the form of blog posts, videos, social media posts, and more.
• Use Social Media: Utilize various social media platforms such as Facebook, Twitter, Instagram, and Linkedin to connect with your target audience. Share your content and promote your offers on these platforms to build followers and attract potential customers.
• Partner with Complementary Businesses: Identify businesses that complement your hardware store, such as software companies or other tech-related businesses, and partner with them to offer joint promotions and discounts.
• Use Paid Advertising: Consider using paid advertising to reach a larger audience. You can use Google Ads, Facebook Ads, Instagram Ads, and more to boost your reach and promote your products and services to your target audience.
• Make sure your website is user-friendly and contains all the necessary information about your products and services.
• Offer promotions and discounts to attract new customers and incentivize them to make a purchase.
• Organize events and workshops that showcase your products and services and help educate customers about IT-related topics.

By following these steps, you can develop an effective marketing and sales plan for your computer IT hardware store that will help you attract customers and build a loyal following. Remember to regularly evaluate and adjust your plan based on market changes and customer feedback to ensure your business stays competitive.

Create A Team And Management Structure

Creating a team and management structure is a crucial aspect of starting a business. As the owner of your Computer IT Hardware Store, you should have a team to help manage your daily operations and ensure that all tasks are being completed efficiently and effectively.

Identify the Roles: Begin by identifying the roles that your business requires. Depending on the size and complexity of your operation, you may need to hire individuals for positions such as sales representatives, service technicians, customer service representatives, and marketing specialists. Clearly defining each role will help you determine what skills and experience you require from potential employees.

Recruit and Hire: The next step is to recruit and hire your team members. You can post job listings on recruitment websites, social media platforms, or industry-specific job boards. Be clear about the qualifications required for each position, and conduct thorough interviews to assess the candidate's skills, experience, and fit for the position. It is also essential to provide competitive compensation packages to attract top talent.

Train and Develop: Once you have hired your team, focus on training and developing their skills to ensure that they can deliver excellent customer service and maintain your high standards. Conduct regular training sessions and provide opportunities for continuing education and development to stay up-to-date with the latest industry trends and best practices.

Create a Management Structure: Establish a management structure to ensure that your team is functioning smoothly and effectively. Define the roles and responsibilities of your managers and supervisors, and establish communication channels to ensure that everyone is aligned with the company's goals and objectives.

• Delegate responsibilities and tasks to your team members to avoid micromanaging.
• Set clear performance metrics to evaluate the progress of your team members.
• Implement regular team-building exercises to build strong relationships and foster a positive work environment.

Writing a business plan for a computer IT hardware store requires a thorough analysis of the market, competition, and funding sources. By following the nine steps in this checklist, you can create a successful business that offers quality hardware, technical support, and excellent customer service to your target audience. Investing in a sound marketing and management plan, as well as a talented team, can help in taking your business to new heights.

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Computer Hardware Reseller Business Plan

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E-commerce internet sample business plan, computer repair business plan, wifi kiosks sample business plan.

Click here to view this full business plan

Executive Summary

By focusing on its strengths, its key customers, and the underlying values they need, American Management Technology will increase sales to more than $9 million in three years, while improving the gross margin on sales and cash management and working capital.

This business plan leads the way. It renews our vision and strategic focus: adding value to our target market segments, the small business and high-end home office users, in our local market. It also provides the step-by-step plan for improving our sales, gross margin, and profitability. In order to implement these changes and improve profitability, we plan to borrow another $100,000 long-term this year. The amount seems in-line with the balance sheet capabilities.

AMT is built on the assumption that the management of information technology for business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in that it is not inherently a do-it-yourself prospect. Smart business people who aren’t computer hobbyists need to find quality vendors of reliable hardware, software, service, and support. They need to use these quality vendors as they use their other professional service suppliers, as trusted allies. AMT seeks to fulfill these needs and become the leader in business information technology for its region.

AMT provides both computer products and services to make them useful to small businesses. We are especially focused on providing network systems and services to small and medium business. The systems include both PC-based LAN systems and minicomputer server-based systems. Our services include design and installation of network systems, training, and support.

In order to accomplish our objectives, our keys to success over the next three years are:

• Differentiate from box-pushing, price-oriented businesses by offering and delivering service and support–and charging for it.
• Increase gross margin to more than 30%.
• Increase our non-hardware sales to 20% of the total sales by the third year.

AMT was founded as a consulting-oriented value added reseller (VAR), became a reseller to fill the market need for personal computers, and is emphasizing service and support to differentiate itself from price-oriented competitors. We have one location–a 7,000 square foot store in a suburban shopping center located conveniently close to the downtown area. It includes a training area, service department, offices, and showroom area.

AMT is a privately-held C corporation owned in majority by its founder and president, Ralph Jones. There are six part owners, including four investors and two past employees. The firm includes 21 employees, under the president and four managers. Our main management divisions are sales, marketing, service, and administration. The service department handles service requests, support, training, and development. At present, we are weakest in the area of technical capabilities to manage the database marketing programs and upgraded service and support, particularly with cross-platform networks. We also need to find a training manager.

Recent changes in the computer reseller market have adversely affected AMT. These include margin squeezes, longer collection periods, and lower inventory turnovers. All of these concerns are part of the general trend affecting computer resellers. The margin squeeze is happening throughout the computer industry worldwide.

The only way we can hope to differentiate well is to define the vision of the company to be an information technology ally to our clients. We will not be able to compete in any effective way with the chains using boxes or products as appliances. We need to offer a real alliance that includes such intangibles as confidence, reliability, and knowing that somebody will be there to answer questions and help at the important times.

Our support services, with which we hope to capture market share will include such services as; training, upgrade offers, installation services, network configuration services, etc. The company will seek to aggressively pursue new opportunities. AMT focuses on local markets, small business and home office, with special focus on the high-end home office and the 5-20 unit small business office. The last study we saw published has retail sales growing at 5% per year, while Web sales and direct sales are growing at 25% or 30%.

There are several different kinds of computer retailers within the industry including:

• Computer dealers: often focused on a few main brands of hardware, usually offering only a minimum of software, and variable amounts of service and support. Their service and support is not usually very good and their prices are usually higher than the larger stores.
• Chain stores and computer superstores: usually offer decent walk-in service, with very aggressive pricing, and little support.
• Mail order: offer aggressive pricing of boxed product. For the purely price-driven buyer, who buys boxes and expects no service, these are very good options.

None of these direct competitors provides the customization and service that small businesses such as our clients truly need.

Small business buyers are accustomed to buying from vendors who visit their offices. They expect the copy machine vendors, office products vendors, and office furniture vendors, as well as the local graphic artists, freelance writers, or whomever, to visit their office to make their sales. Many small companies turn immediately to the superstores (office equipment, office supplies, and electronics) and mail order to look for the best price, without realizing that there is a better option for them at only a little bit more.

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. Our focus group sessions indicated that our target home office markets 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.

We currently depend on newspaper advertising as our main way to reach new buyers. As we change strategies, however, we need to change the way we promote ourselves. We will be refocusing on our core message of service through radio, cable TV, sales brochures, direct mailers and newspapers. We need to sell the company, not the product. We sell AMT, not Apple, IBM, Hewlett-Packard, or Compaq, or any of our software brand names.

1.1 Objectives

• Sales increasing to more than $9 million by the third year.
• Bring gross margin back up to above 30%, and maintain that level.
• Sell $1.5 million of service, support, and training by 1998.
• Improve inventory turnover to 6 turns by 1998.

1.2 Keys to Success

• Differentiate from box-pushing, price-oriented businesses by offering and delivering service and support — and charging for it.

1.3 Mission

AMT is built on the assumption that the management of information technology for business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in that it is not inherently a do-it-yourself prospect. Smart business people who aren’t computer hobbyists need to find quality vendors of reliable hardware, software, service, and support. They need to use these quality vendors as they use their other professional service suppliers, as trusted allies.

AMT is such a vendor. It serves its clients as a trusted ally, providing them with the loyalty of a business partner and the economics of an outside vendor. We make sure that our clients have what they need to run their businesses as well as possible, with maximum efficiency and reliability. Many of our information applications are mission critical, so we give our clients the assurance that we will be there when they need us.

Company Summary

AMT is a computer reseller based in the Uptown area. It was founded as a consulting-oriented VAR, became a reseller to fill the market need for personal computers, and is emphasizing service and support to differentiate itself from more price oriented national chains.

2.1 Company History

AMT has been caught in the vise grip of margin squeezes that have affected computer resellers worldwide. Although the chart titled Past Financial Performance shows that we have had healthy growth in sales, it also shows declining gross margin and declining profits.

The more detailed numbers in the Past Performance table include other indicators of some concern:

The gross margin % has been declining steadily, as we see in the chart.

Both collection days and inventory turnover are getting steadily worse.

All of these concerns are part of the general trend affecting computer resellers. The margin squeeze is happening throughout the computer industry worldwide.

2.2 Company Ownership

AMT is a privately-held C corporation owned in majority by its founder and president, Ralph Jones. There are six part owners, including four investors and two past employees. The largest of these (in percent of ownership) are Frank Dudley, our attorney, and Paul Karots, our public relations consultant. Neither owns more than 15%, but both are active participants in management decisions.

2.3 Company Locations and Facilities

We have one location–a 7,000 square foot store in a suburban shopping center located conveniently close to the downtown area. It includes a training area, service department, offices, and showroom area.

Products and Services

AMT provides both computer products and services to make them useful to small business. We are especially focused on providing network systems and services to small and medium business. The systems include both PC-based LAN systems and minicomputer server-based systems. Our services include design and installation of network systems, training, and support.

3.1 Product and Service Description

In personal computers, we support three main lines:

• The Super Home is our smallest and least expensive line, initially positioned by its manufacturer as a home computer. We use it mainly as a cheap workstation for small business installations. Its specifications include …[additional specifics omitted]
• The Power User is our main up-scale line. It is our most important system for high-end home and small business main workstations, because of …. Its key strengths are …. Its specifications include ….[additional specifics omitted]
• The Business Special is an intermediate system, used to fill the gap in the positioning. Its specifications include … [additional specifics omitted]

In peripherals, accessories and other hardware, we carry a complete line of necessary items from cables to forms to mousepads … [additional specifics omitted] In service and support, we offer a range of walk-in or depot service, maintenance contracts and on-site guarantees. We have not had much success selling service contracts. Our networking capabilities …[additional specifics omitted] In software and training, we offer … [additional specifics omitted]

3.2 Competitive Comparison

The only way we can hope to differentiate well is to define the vision of the company to be an information technology ally to our clients. We will not be able to compete in any effective way with the chains using boxes or products as appliances. We need to offer a real alliance.

The benefits we sell include many intangibles: confidence, reliability, knowing that somebody will be there to answer questions and help at the important times. These are complex products, products that require serious knowledge and experience to use, and our competitors sell only the products themselves. Unfortunately, we cannot sell the products at a higher price just because we offer services; the market has shown that it will not support that concept. We have to also sell the service and charge for it separately.

3.3 Sales Literature

Copies of our brochure and advertisements are attached as appendices. Of course, one of our first tasks will be to change the message of our literature to make sure we are selling the company, rather than the product.

3.4 Fulfillment

Our costs are part of the margin squeeze. As competition on price increases, the squeeze between manufacturers’ price into channels and end-users’ ultimate buying price continues.

With the hardware lines, our margins are declining steadily. We generally buy at … Our margins are thus being squeezed from the 25% of five years ago to more like 13-15% at present. In the main-line peripherals a similar trend shows, with prices for printers and monitors declining steadily. We are also starting to see that same trend with software ….

In order to hold costs down as much as possible, we concentrate our purchasing with Hauser, which offers 30-day net terms and overnight shipping from the warehouse in Dayton. We need to concentrate on making sure our volume gives us negotiating strength. In accessories and add-ons we can still get decent margins, 25% to 40%.

3.5 Technology

We have for years supported both Windows and Macintosh technology for CPUs, although we’ve switched vendors many times for the Windows (and previously DOS) lines. We are also supporting Novell, Banyon, and Microsoft networking, Xbase database software, and Claris application products.

3.6 Future Products and Services

We must remain on top of the new technologies, because this is our bread and butter. For networking, we need to provide better knowledge of cross platform technologies. Also, we are under pressure to improve our understanding of direct-connect internet and related communications. Finally, although we have a good command of desktop publishing, we are concerned about getting better at the integration of technologies that creates fax, copier, printer, and voice mail as part of the computer system.

3.7 Service and Support

• Our strategy hinges on providing excellent service and support. This is critical. We need to differentiate on service and support, and to therefore deliver as well.
• Training: details would be essential in a real business plan, but not in this sample plan.
• Upgrade offers: details would be essential in a real business plan, but not in this sample plan.
• Our own internal training: details would be essential in a real business plan, but not in this sample plan.
• Installation services: details would be essential in a real business plan, but not in this sample plan.
• Custom software services: details would be essential in a real business plan, but not in this sample plan.
• Network configuration services: details would be essential in a real business plan, but not in this sample plan.

Market Analysis Summary

AMT focuses on local markets, small business and home office, with special focus on the high-end home office and the 5-20 unit small business office.

4.1 Market Segmentation

The segmentation allows some room for estimates and nonspecific definitions. We focus on a small-medium level of small business, and it is hard to find information to make an exact classification. Our target companies are large enough to need the high-quality information technology management we offer, but too small to have a separate computer management staff such as an MIS department. We say that our target market has 10-50 employees, and needs 5-20 workstations tied together in a local area network; the definition is flexible.

Defining the high-end home office is even more difficult. We generally know the characteristics of our target market, but we can’t find easy classifications that fit into available demographics. The high-end home office business is a business, not a hobby. It generates enough money to merit the owner’s paying real attention to the quality of information technology management, meaning that there is both budget and concerns that warrant working with our level of quality service and support. We can assume that we aren’t talking about home offices used only part-time by people who work elsewhere during the day, and that our target market home office wants to have powerful technology and a lot of links between computing, telecommunications, and video.

4.2 Service Business Analysis

We are part of the computer reselling business, which includes several kinds of businesses:

• Computer dealers: storefront computer resellers, usually less than 5,000 square feet, often focused on a few main brands of hardware, usually offering only a minimum of software, and variable amounts of service and support. These are usually old-fashioned (1980s-style) computer stores and they usually offer relatively few reasons for buyers to shop with them. Their service and support is not usually very good and their prices are usually higher than the larger stores.
• Chain stores and computer superstores: these include major chains such as CompUSA, Computer City, Future Shop, etc. They are almost always more than 10,000 square feet of space, usually offer decent walk-in service, and are often warehouse-like locations where people go to find products in boxes with very aggressive pricing, and little support.
• Mail order: the market is served increasingly by mail order businesses that offer aggressive pricing of boxed product. For the purely price-driven buyer, who buys boxes and expects no service, these are very good options.
• Others: there are many other channels through which people buy their computers, usually variations of the main three types above.

4.2.1 Competition and Buying Patterns

The 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.

Our focus group sessions indicated that our target Home Offices 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. The Home Office buyers tend to want immediate, local solutions to problems.

4.2.2 Main Competitors

Chain stores: We have Store 1 and Store 2 already within the valley, and Store 3 is expected by the end of next year. If our strategy works, we will have differentiated ourselves sufficiently to not have to compete against these stores. Strengths: national image, high volume, aggressive pricing, economies of scale. Weaknesses: lack of product, service and support knowledge, lack of personal attention. Other local computer stores: Store 4 and Store 5 are both in the downtown area. They are both competing against the chains in an attempt to match prices. When asked, the owners will complain that margins are squeezed by the chains and customers buy on price only. They say they tried offering services and that buyers didn’t care, instead preferring lower prices. We think the problem is also that they didn’t really offer good service, and also that they didn’t differentiate from the chains.

4.2.3 Business Participants

The national chains are a growing presence. CompUSA, Computer City, Incredible Universe, Babbages, Egghead, and others. They benefit from national advertising, economies of scale, volume buying, and a general trend toward name-brand loyalty for buying in the channels as well as for products.

Local computer stores are threatened. These tend to be small businesses, owned by people who started them because they liked computers. They are under-capitalized and under-managed. Margins are squeezed as they compete against the chains, in a competition based on price more than on service and support.

4.2.4 Distributing a Service

Small Business buyers are accustomed to buying from vendors who visit their offices. They expect the copy machine vendors, office products vendors, and office furniture vendors, as well as the local graphic artists, freelance writers, or whomever, to visit their office to make their sales.

There is usually a lot of leakage in ad-hoc purchasing through local chain stores and mail order. Often the administrators try to discourage this, but are only partially successful. Unfortunately our Home Office target buyers may not expect to buy from us. Many of them turn immediately to the superstores (office equipment, office supplies, and electronics) and mail order to look for the best price, without realizing that there is a better option for them at only a little bit more.

4.3 Target Market Segment Strategy

4.3.1 market needs.

Since our target market is the service seeker, the most important market needs are support, service, training, and installation, in that order. One of the key points of our strategy is the focus on target segments that know and understand these needs and are willing to pay to have them filled.

All personal computer users need support and service. The self reliant ones, however, supply those needs themselves. In home offices, these are the knowledgeable computer users who like to do it themselves. Among the businesses, these are businesses that have people on staff.

4.3.2 Market Trends

The most obvious and important trend in the market is declining prices. This has been true for years, but the trend seems to be accelerating. We see the major brand-name manufacturers putting systems together with amazing specs–more power, more speed, more memory, more disk storage–at amazing prices. The major chain shops are selling brand-name powerful computers for less than $1,000.

This may be related to a second trend, which is the computer as throw-away appliance. By the time a system needs upgrading, it is cheaper to buy completely new. The increasing power and storage of a sub-$1000 system means buyers are asking for less service. A third trend is ever greater connectivity. Everybody wants onto the internet, and every small office wants a LAN. A lot of small offices want their LAN connected to the internet.

4.3.3 Market Growth

As prices fall, unit sales increase. The published market research on sales of personal computers is astounding, as the United States market alone is absorbing more than 30 million units per year, and sales are growing at more than 20 percent per year. We could quote Dataquest, Infocorp, IDC, or others; it doesn’t matter, they all agree on high growth of CPU sales.

Where growth is not as obvious is the retail market. A report in CRW says Dell is now selling $5 million monthly over the web, and we assume Gateway and Micron are both close to that. Direct mail has given way to the web, but catalogs are still powerful, and the non-retail sale is more accepted every day. The last study we saw published has retail sales growing at 5% per year, while web sales and direct sales are growing at 25% or 30%.

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ExpertHub’s team of Staff Writers deliver unique, insightful and curated content from successful business leaders, authors and subject matter experts. This highly-experienced team understands the information that business readers are looking for, what’s unique and impactful, and how to distil key ideas into actionable insights.

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Hardware Shop Business Plan

Planning to start a hardware store? The extensive marketplace and consistently rising demands make starting a hardware store a lucrative business venture.

Anyone can start a hardware shop, however, a business plan can help you raise funds and map out its scalability for prolific growth.

Need help writing a business plan for your hardware shop? You’re at the right place. Our hardware shop business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Hardware Shop Business Plan?

Writing a hardware shop 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 and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products & services:.

Highlight the products you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

• General hardware store
• Specialty hardware store (automotive supplies, construction hardware, etc)
• Online hardware store
• Industrial hardware store
• Plumbing hardware store
• Electrical hardware store
• Describe the legal structure of your hardware store, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established hardware store, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your hardware shop business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Hardware products:

Mention the products your business will offer. This list may include product categories like,

• Building materials
• Plumbing materials
• Electrical material
• Safety and protective equipment
• Hardware and fasteners

Mention if your hardware store offers any niche-specific services to the customers.

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your hardware plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your hardware store business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your hardware shop, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for hardware, such as pipe cutters, pipe threaders, showroom displays, and fixtures, pressure testing equipment, cutting and measuring tools, office equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your hardware shop’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your hardware store, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the hardware industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your retail hardware store business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample hardware shop business plan will provide an idea for writing a successful hardware plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our hardware shop business plan pdf .

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Choose the Right Business Location

Frequently asked questions, why do you need a hardware shop business plan.

A business plan is an essential tool for anyone looking to start or run a successful hardware shop. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your hardware store.

How to get funding for your hardware shop?

There are several ways to get funding for your hardware shop, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

How do I write a good market analysis in a hardware shop business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my hardware shop business plan?

The level of detail of the financial projections of your hardware shop may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a hardware shop business plan include?

The following are the key components your hardware shop business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

What's the importance of a marketing strategy in a hardware shop business plan?

Marketing strategy is a key component of your hardware shop business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Start a Computer Business

Last Updated: March 21, 2024 References

This article was co-authored by Luigi Oppido and by wikiHow staff writer, Christopher M. Osborne, PhD . Luigi Oppido is the Owner and Operator of Pleasure Point Computers in Santa Cruz, California. Luigi has over 25 years of experience in general computer repair, data recovery, virus removal, and upgrades. He is also the host of the Computer Man Show! broadcasted on KSQD covering central California for over two years. This article has been viewed 191,811 times.

While your dream may be to start the next Apple or Microsoft out of your garage, it is more likely that your desire to start a computer business involves dealing with existing systems via sales, service, or support. With the rapid changes in technology that have already led some to place us in the “post-PC era,” [1] X Research source the job of a computer repair person , for instance, has changed quite a bit from ten years ago and will surely be quite different ten years from now. Beyond keeping up with changing technology and maintaining your expertise, however, starting a computer business requires many of the same skills required of any other small business field — things like a clear business plan, a smart marketing strategy , and outstanding customer service.

Aligning Your Skills and Goals With the Market

• Have you ever dissected, reassembled, or repaired a computer? Are you familiar with all major operating systems? Have you worked in the computer field before? Honestly assess your readiness to start a computer business, or ask someone else with industry knowledge help you make the assessment.
• Completing a degree in the computer field will certainly help you in starting a business, but it is unlikely that most customers will ask to see your diploma. More important is your ongoing gathering of experience, whether through education, training, or employment.
• Certification is a good way to indicate expertise, though. You may want to seek A+ certification from the Computer Technology Industry Association (CompTIA), or the related N+ network certification, or become a Microsoft Certified System Engineer (MCSE). [2] X Research source These can help give your business card an air of legitimacy.

• In this so-called “post-PC era,” you may find demand for traditional computer sales, service, and/or support to be much reduced, especially among a younger, tech-savvy population. However, especially in areas with older populations and/or small-town and rural areas, you may find a greater percentage of people in need of PC repairs and support. Remember, you need to keep up with the latest technology; many of your potential customers do not (and will not). [3] X Research source [4] X Research source

• New technology is meant to make life easier, but many consumers find it to be just another layer of confusion. General set-up and troubleshooting tasks, like setting up printers and wireless networks, data recovery and wiping, and media archiving or editing, may remain a viable component of your business, even if PC repair requests decrease.
• If you can prove yourself to be an expert on computers and related technology, and can build a positive reputation, you should be able to find a niche for your computer business.

Brandon Phipps

Start a business that solves problems for your customers. Your core mission is to offer benefits to your customers for a fair price. By providing such a service, you can earn a significant income while doing something you are skilled at and helping others.

• If you’re looking to keep your computer business as a part-time job, then keeping your focus on repairs and troubleshooting may suffice.
• Building your business into a full-time occupation, however, may require further diversification of the products and services you offer, perhaps by selling parts, accessories, or entire systems. You’ll need to draw in a loyal client base and build a positive reputation in the community.

Succeeding in the Computer Business

• Even if computers are your focus, expect people to seek help and guidance with all sorts of mobile technology, from phones to tablets to watches. You may or may not want to get into the mobile tech sales and/or service business — consider the increased inventory demands, for instance — but being able to provide general troubleshooting, training, and support on the latest devices may prove quite useful. [6] X Research source
• If home service calls are part of your business, the essential toolkit you take with you will continue to shift along with technology. However, you can find a good list of basic equipment you’ll need (for the time being) at https://www.technibble.com/categories/starting-computer-repair-business/ .

• You’ll deal with panicked customers who think they’ve just lost all their important files, irate customers who want immediate help at 10 p.m., and hovering customers who want to supervise (and ask about) every move you make. You need to be able to remain calm , courteous, and patient. As a small business, you’re not likely to be able to match the prices of your larger competitors — the personalized service you offer needs to offset this disadvantage.

• Put some thought to your business name, logos , signage, marketing, etc. Create a professional look that presents your business as legitimate and lasting.
• Referrals will be essential to your business. Always hand out professional-looking business cards to existing customers, and consider offering referral discounts or rewards. Throwing in some free service or equipment is a small price to pay in order to build up your customer base. [8] X Research source
• Especially if you don’t have a storefront, make your business website and/or social media presence appear professional and interconnected to your overall brand.

• Working from home, for instance, offers more flexibility and less overhead costs, but also offers less visibility and possibly more distractions. A well-placed storefront adds to your visibility and helps legitimize your business in the public’s mind, but it comes at a cost and tends to lock you into a more rigid schedule.
• If you focus on computer repairs, working in your own shop may limit distractions and save you time and travel money, but customers may be more comfortable with you working on the equipment in their homes. (Your potential liability is also likely to be reduced when you don’t take the equipment with you.)

Starting a Small Business: Some Basics

• See How to Write a Business Plan for a good primer on the process of creating this important document.

• You may want to save on taxes by having customers pay cash “under the table” and not reporting the income, but this gives your business an air of illegitimacy (as well it should) for your customers. You are better off paying the taxes and appearing (and being) legitimate. [9] X Research source
• How to Open a Small Business offers some nice information on the legal requirements of establishing a business. The U.S. Small Business Administration website is also a great resource; see, for instance, https://www.sba.gov/content/follow-these-steps-starting-business .

• Volunteer some of your time and expertise. Be a supporting sponsor at community events (with the requisite public recognition, of course). Use your advertising and branding to develop a sense of stability and permanence for your business, even in a field that changes as rapidly as computers.
• No matter the nature of your small business, you need to be visible, you need to be reliable, and you need to provide a personalized experience that builds customer loyalty.

Expert Q&A

You Might Also Like

• ↑ https://www.technibble.com/moving-wearable-mobile-repair-post-pc-era/
• ↑ http://www.computerhope.com/issues/ch001553.htm
• ↑ https://www.technibble.com/categories/starting-computer-repair-business/
• ↑ http://www.mytopbusinessideas.com/computer/
• ↑ http://www.tomshardware.com/answers/id-1813630/starting-computer-repair-setup-consulting-business-tips.html

About This Article

To start up a successful computer business, find a way to match your skills with the needs of your local computer market. Assess the training and experience that you have with computers to determine the type of computer business that is best suited to your talents. For example, if you have experience building personal computers, you can use your background to start up a business selling discounted computers that you assemble from parts that you acquire. In addition to your skills and experience, it’s important that you analyze the market around you to see if you can start a successful business. Consider the demographics in your area and think about what type of computer products or services they’re likely to purchase. For example, if you’re selling discounted computer systems, and your area has a large number of older people looking to buy a simple home computer, you may have a market for your business! For tips about how to build your brand identity when you’re starting a computer business, keep reading! Did this summary help you? Yes No

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Hardware Store Business Plan

NOV.25, 2023

A hardware store is a retail business that sells tools, materials, and equipment for home improvement, construction, and maintenance projects. Hardware stores can cater to different segments of customers and can also offer services such as installation, repair, and consultation, as we explained in our Hardware Retail Franchise Business Plan .

What is the Business Plan for a Retail Hardware Store?

A business plan for a retail hardware store is a document that outlines the goals, strategies, and financial projections of a store that sells hardware products and supplies to customers. A business plan typically includes the following sections:

• Executive summary
• Company description
• Products and services
• Market analysis
• Competitive analysis
• Marketing and sales strategy 
• Management and organization
• Financial plan

Why Do You Need a Business Plan Sample for a Hardware Shop?

A hardware shop needs a business plan sample to outline its vision, goals, and strategies. It can show how the shop will operate, what products and services it will offer, and how it will reach its target market. A business plan sample, like a Computer Software Business Plan , can also demonstrate the financial viability of the shop and attract funding and support from various stakeholders. A business plan sample is a vital document for any hardware shop owner who wants to start or grow their business.

Here is an example of a retail hardware store business plan sample:

Executive Summary

Ace Hardware is a new hardware store that will be located in San Diego, California. Ace Hardware will operate as a sole proprietorship owned by Alex Hales, an experienced and certified hardware professional.

Ace Hardware will target residential and commercial customers in the San Diego area who are looking for a convenient, reliable, and friendly hardware store. Ace Hardware will focus on the following customer segments:

• DIY enthusiasts
• Contractors

Ace Hardware will require a total of $500,000 to start and operate the business. Ace Hardware is seeking a $300,000 loan from a reputable bank to finance the startup and operating costs of the business. The loan will be repaid in 5 years with an interest rate of 10%. Ace Hardware will also contribute $200,000 of the owner’s savings as equity.

Company Overview

Ace Hardware is a new hardware store that will be located on Main Street, San Diego, California. The store will occupy a 5,000-square-foot space in a busy and convenient shopping plaza, with ample parking and visibility. The store will be open from 8 a.m. to 8 p.m., seven days a week.

Ace Hardware will be registered as a limited liability company (LLC) in the state of California and will comply with all the relevant federal, state, and local laws and regulations. The store will be owned and operated by Alex Hales, who will also serve as the manager and the chief executive officer (CEO) of the company. Alex Hales will own 100% of the company’s shares and will have complete control over the business decisions and operations.

Industry Analysis

The hardware store industry is a segment of the larger home improvement industry. It includes businesses that sell tools, materials, and equipment for home improvement, construction, and maintenance projects.

Here are some interesting market insights for DIY & Hardware Store in the United States:

• The global hardware market size amounts to $121.34 bn in 2023 and is expected to grow to $164.21 bn in 2027. (Source – The Business Research Company )
• The revenue generated in the DIY & Hardware Store market in 2023 amounts to $641.80 bn. (Source – Statista )
• It is projected that the hardware market will experience an annual growth rate of 2.63% from 2023 to 2028. (Source – Statista )

Customer Analysis

Ace Hardware’s target market is the home improvement market in San Diego, California. This market consists of customers who are looking for products and services for home improvement, construction, and maintenance projects. 

According to the US Census Bureau, there were 1,419,845 housing units in San Diego County in 2020, of which 56.4% were owner-occupied and 43.6% were renter-occupied. The median value of owner-occupied housing units was $632,000, and the median monthly rent was $1,647. The median household income was $85,507, and the per capita income was $38,923.

Ace Hardware’s customer segments are:

1. Residential customers

• These are homeowners or renters who are looking for products and services for their own home improvement, construction, and maintenance projects. 
• They have different levels of skills, budgets, and tastes and may seek advice, guidance, and assistance from hardware store staff. 
• They also value convenience, quality, and variety in their purchases. 

Ace Hardware will target residential customers who live or work within a 10-mile radius of the store location and who have a household income of $50,000 or more . Ace Hardware estimates that there are about 500,000 potential residential customers in this segment.

2. Commercial customers

• are contractors, builders, landscapers, decorators, and other professionals who are looking for products and services for their clients’ home improvement, construction, and maintenance projects. 
• They have specific requirements, standards, and deadlines and may seek reliability, efficiency, and flexibility from hardware store staff. 
• They also value price, quality, and availability in their purchases. 

Ace Hardware will target commercial customers who operate within a 20-mile radius of the store location and who have an annual revenue of $100,000 or more . Ace Hardware estimates that there are about 10,000 potential commercial customers in this segment.

Competitive Analysis

ABC Hardware faces competition from other hardware stores in the area, such as:

• Home Depot – Home Depot is the largest home improvement retailer in the US, with over 2,300 stores nationwide, including 20 stores in San Diego County. Home Depot offers a wide range of products and services for home improvement, construction, and maintenance projects. Home Depot’s strengths include its large scale, brand recognition, loyal customer base, and online presence. Home Depot’s weaknesses include its high operating costs, low customer service, and generic product selection.
• Lowe’s – Lowe’s is the second largest home improvement retailer in the US, with over 1,700 stores nationwide, including 15 stores in San Diego County. Lowe’s offers a similar range of products and services as Home Depot but with a focus on home decoration and design. Lowe’s strengths include its brand recognition, loyal customer base, and online presence. Lowe’s weaknesses include its high operating costs, low customer service, and generic product selection.
• Menards – Menards is the third largest home improvement retailer in the US, with over 300 stores in 15 states, including 5 stores in California. Menards offers a similar range of products and services as Home Depot and Lowe’s but with a focus on price and value. Menards’ strengths include its low prices, loyal customer base, and online presence. Menards’ weaknesses include its limited geographic coverage, low customer service, and generic product selection.

ABC Hardware assesses and rates its competitive advantages and disadvantages based on a 1-5 scale rating. ABC Hardware’s competitive advantages and disadvantages are as follows:

Marketing Plan

ABC Hardware’s marketing objectives and goals are to:

• Increase the brand awareness and recognition of ABC Hardware in the local market and online platforms
• Attract and retain at least 1,000 loyal customers by the end of the first year
• Achieve a monthly sales revenue of $100,000 by the end of the first year
• Increase the customer engagement and loyalty by 10% by the end of the first year
• Generate at least 100 referrals and word-of-mouth per month by the end of the first year

ABC Hardware’s marketing mix is based on the following four Ps:

• Product – ABC Hardware offers high-quality tools, materials, and equipment for home improvement, construction, and maintenance projects at affordable prices. ABC Hardware also offers installation, repair, and consultation services to its customers.
• Price – ABC Hardware sets its prices based on the cost-plus pricing strategy, which adds a markup percentage to the cost of the products and services. ABC Hardware’s markup percentage is 30%, which covers its overhead and profit margin.
• Place – ABC Hardware sells its products and services through its physical store and its online store. The physical store is located in a busy and central area with high foot traffic and visibility. The online store is accessible through its website, which is user-friendly, secure, and responsive.
• Promotion – ABC Hardware uses a combination of online and offline channels to promote its brand, products, and services to its target customers.

ABC Hardware’s marketing budget and allocation are based on the following assumptions and estimates:

• ABC Hardware allocates 10% of its monthly sales revenue to its marketing budget
• ABC Hardware spends 60% of its marketing budget on online channels and 40% on offline channels
• ABC Hardware tracks and measures the return on investment (ROI) and cost per acquisition (CPA) of each marketing channel

ABC Hardware’s marketing budget and allocation for the first year are represented in the following chart:

Operations Plan

ABC Hardware’s operations plan covers the following aspects of its business:

• Location – The store location is 123 Main Street, Los Angeles, CA 90001, which is a busy and central area with high foot traffic and visibility. It is close to its target customers, has low rent and utilities costs, and has ample parking space and public transportation access.
• Size – The store has a size of 5,000 square feet, which is enough to accommodate its products, services, staff, and customers. ABC Hardware plans to expand its store size to 10,000 square feet by the end of the third year.
• Layout – The store is divided into four main sections: tools, materials, equipment, and services. ABC Hardware also has a checkout counter, a customer service desk, a storage room, and a restroom.
• Inventory management – ABC Hardware uses a barcode scanner and a point-of-sale (POS) system to record and monitor sales and inventory transactions. ABC Hardware also uses a software program and a database to analyze and forecast inventory levels and trends. Refer to our SaaS Business Plan for a better understanding.
• Procurement – ABC Hardware sources its products and services from reliable and reputable suppliers and vendors. ABC Hardware has established long-term and mutually beneficial relationships with its suppliers and vendors.
• Barcode scanner
• Security camera
• Alarm system
• Fire extinguisher

Organization and Management

Ace Hardware will have a simple and flat organizational structure, where the owner and manager will have direct and close supervision and communication with the staff. The organizational structure will consist of the following positions:

• Owner and Manager – Alex Hales, the owner, manager, and CEO of the store, will oversee all aspects of the business, from planning and budgeting to hiring and reporting. He has a business degree and 10 years of experience in the hardware store industry.
• Sales Staff – 10 sales staff will be hired to assist and serve the customers, as well as sell and provide various services on the sales floor. They will have 2 years of experience and a high school diploma and will work in shifts of 5 under the owner and manager.
• Cashier Staff – 3 cashier staff will be hired who will process and complete the transactions, as well as perform checkout and customer service tasks. They will have 1 year of experience and a high school diploma and will work in shifts of 2 or 3 under the owner and manager.

Financial Plan

Startup costs.

Ace Hardware will require a total of $500,000 to start and operate the business. The startup costs will include the purchase of inventory, equipment, fixtures, signage, and leasehold improvements, as well as the initial marketing, legal, and administrative expenses. The breakdown of the startup costs is as follows:

Operating Costs

Ace Hardware will incur monthly operating costs to run and operate the business. The operating costs will include the rent, utilities, payroll, taxes, insurance, and maintenance expenses. The breakdown of the operating costs is as follows:

Ace Hardware will generate revenue from the sale of products and services, such as paint, plumbing, electrical, gardening, hardware, lumber, cutting, installation, repair, and delivery. Ace Hardware will use the following assumptions to project its revenue:

• Average sale per customer: $50
• Average number of customers per day: 100
• Average number of days per month: 30
• Average revenue per month: $50 x 100 x 30 = $150,000
• Average revenue growth rate per year: 10%

Based on these assumptions, Ace Hardware projects to generate $1.2 million in sales revenue in the first year, $1.8 million in the second year, and $2.4 million in the third year.

Break-Even Analysis

Ace Hardware expects to achieve break-even in the first year of operation, where its total revenue will equal its total costs. Ace Hardware will use the following formula to calculate its break-even point:

Break-Even Point = Fixed Costs / (Revenue per Unit – Variable Cost per Unit)

• Fixed Costs: $32,000 per month, or $384,000 per year.
• Revenue per Unit: $50 per unit.
• Variable Cost per Unit: $25, or 50% of the revenue per unit.

Based on these figures, Ace Hardware’s break-even point will be:

• Break-Even Point = $384,000 / ($50 – $25) = 15,360 units
• Break-Even Point in Sales = 15,360 x $50 = $768,000

This means that Ace Hardware will need to sell 15,360 units or generate $768,000 in sales revenue to cover its costs and break even.

Cash Flow Statement

Income statement, balance sheet, why choose ogscapital for your hardware store business plan.

At OGSCapital, we are the leading provider of business plan services for businesses of all sizes. We have a team of senior business experts with 15+ years of experience in 45 industries who can create customized and unique business plans that meet the highest standards of quality, professionalism, and effectiveness. We also offer comprehensive and in-depth market research, fast and reliable results, a proven track record of success, and access to a wide network of contacts. For reference, check our Computer Repair Business Plan .

Contact us today and get a free consultation from one of our business plan experts. We will help you achieve your business goals and become a market leader.

Frequently Asked Questions

Is a hardware shop profitable.

Hardware shop business is profitable in the US, as it sells essential tools and materials for home improvement and construction projects. The profit margin in hardware stores in the US is estimated to be around 15% to 30%, depending on the type and category of products sold. Check our iPhone Repair Business Plan here.

How do I start a hardware business?

To open a hardware store business, you need to conduct market research, write a hardware business plan, choose a suitable location, obtain the necessary licenses and permits, source your products, hire and train your staff, promote your business, and provide quality products and services.

How do I write a business plan for a hardware store?

A small hardware store business plan is a document that describes the details and objectives of your business and how you plan to achieve them. It should include the sections of executive summary, market analysis, products and services, marketing plan, operational plan, financials, and appendix. Refer to our Web Hosting Business Plan to learn more.

What is the business category of a hardware store?

A hardware store is a type of retail store that sells a variety of tools, materials, and supplies for home improvement, construction, gardening, and other activities. Hardware stores are usually classified under the NAICS Code 444130, SIC Code 5251, and Business Activity Code 444000.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Computer Repair Business Plan Template

Written by Dave Lavinsky

Computer Repair Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their computer repair businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a computer repair business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Computer Repair Business Plan?

A business plan provides a snapshot of your computer repair business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Computer Repair Business

If you’re looking to start a computer repair business, or grow your existing computer repair business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your computer repair business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Computer Repair Businesses

With regards to funding, the main sources of funding for a computer repair business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the lender will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for computer repair businesses.

Finish Your Business Plan Today!

How to write a business plan for a computer repair & maintenance company.

If you want to start a computer repair business or expand your current one, you need a business plan. Below we detail what should be included in each section of your own business plan:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of computer repair business you are operating and its status. For example, are you a startup, do you have a computer repair business that you would like to grow, or are you operating computer repair businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the computer repair industry. Discuss the type of computer repair business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of computer repair business you are operating.

For example, you might operate one of the following types of computer repair businesses:

• Hardware repair : this type of business provides repairs to physical units such as PCs and motherboards, game systems, accessories, etc.
• Software repair: this type of business involves troubleshooting, operating system updates, and virus removal.
• IT services: this type of business provides a range of services for IT products and components, including upgrades, installation and maintenance, security testing, technical support, and both hardware and software repairs.

In addition to explaining the type of computer repair business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of repairs completed, maintenance contracts signed, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the computer repair industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the computer repair industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the market research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the PC repair industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your computer repair business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the computer service customers you serve and/or expect to serve.

The following are examples of customer segments: small businesses, nonprofits, government entities, and individuals.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of PC repair business you operate. Clearly, government entities would respond to different marketing promotions than nonprofits, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most computer repair businesses primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your computer service customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other computer repair businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes warranty repair options, or from dedicated in-house IT teams.

With regards to direct competition, you want to describe the other PC repair businesses with which you compete. Most likely, your direct competitors will be computer repair businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• Do they specialize in specific services (i.e. PC repair, Apple product repair, software services, etc.)?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide either a wider range or more specialized range of services?
• Will you offer features such as mobile repair?
• Will you provide superior customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a computer maintenance and repair company, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of computer repair company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to PC hardware repair, will your PC repair business provide software upgrade services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your computer repair company. Document your location and mention how the location will impact your success. For example, will you operate from a physical office, or will you primarily interact with clients at their home or place of business? In this section, discuss how your location will affect demand for your services.

Promotions : The final part of your marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Signs and billboards
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your computer support business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your PC repair business, including marketing, providing consultations, troubleshooting, providing the actual repairs, keeping abreast of new technology, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to repair your 100th PC, or when you hope to reach $X in revenue. It could also be when you expect to open a computer repair business in a new location.  

Management Team

To demonstrate your computer repair business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing PC repair businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in repairing electronics, or successfully running IT businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you provide hardware repairs exclusively, or will you also offer help desk services and software upgrades? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your computer repair business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a PC repair business:

• Office build-out
• Cost of buying or leasing a company vehicle
• Cost of office supplies such as computers and software
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office lease, or an overview of the services you offer.  

Putting together a business plan for your computer repair business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the computer repair industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful computer repair business.  

Computer Repair Business Plan FAQs

What is the easiest way to complete my computer repair business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Computer Repair Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of computer repair business you are operating and the status; for example, are you a startup, do you have a computer repair business that you would like to grow, or are you operating a chain of computer repair businesses?

Don’t you wish there was a faster, easier way to finish your Computer Repair business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan professional services can help you create a winning business.

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Computer Business Plan Template & Guidebook

If you're looking for a comprehensive, easy-to-follow template to help you create the perfect business plan for your computer business, then look no further than the #1 Computer Business Plan Template & Guidebook. This handy template and guidebook provide an effective, comprehensive and convenient approach to building the perfect plan, leading you step-by-step through all the necessary elements of the process. Ready to get started? Let's dive in!

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Computer Business [11 Steps]
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How to Write a Computer Business Plan in 7 Steps:

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. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a computer business:

Our mission at XYZ Computer is to provide our customers with high-quality, affordable computers, software solutions and services that meet or exceed their expectations. We strive to deliver innovative products and services while maintaining our commitment to excellence and customer satisfaction.

2. Products & Services Offered by Your Computer Business.

The next step is to outline your products and services for your computer business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your computer business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your computer business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your computer business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a computer business?

In order to run a Computer business, you will need the following:

• Computer hardware and software
• An Internet connection
• A business license
• Appropriate insurance coverage for the business
• Office supplies such as paper, pens, etc.
• Computer accessories such as printers, scanners, etc.

5. Management & Organization of Your Computer Business.

The second part of your computer business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your computer business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Computer Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a computer business varies based on many different variables, but below are a few different types of startup costs for a computer business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your computer business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your computer business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your computer business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Computer Business Plans:

Why do you need a business plan for a computer business.

A business plan for a computer business is important because it allows entrepreneurs to clearly define and evaluate the potential of their business idea. It also serves as a roadmap for setting goals, managing resources, and making decisions to move the business forward. Additionally, lenders may require potential business owners to submit a business plan when applying for financing. A well-written and comprehensive business plan can help demonstrate the viability of the venture and should include a competitive analysis, industry trends, operational procedures, market analysis, management team evaluation and financial projections.

Who should you ask for help with your computer business plan?

The best person to ask for help with your computer business plan would be a professional business consultant who specializes in the computer industry. An experienced consultant can offer insights, ideas, and advice about how to develop and implement a successful computer business plan.

Can you write a computer business plan yourself?

Yes, it is possible to write a computer business plan yourself. However, it is recommended to seek professional help from a consultant or an expert in the field, as business plans require extensive research and knowledge in order to be accurate and effective. Additionally, an experienced consultant can offer valuable advice and insights based on their own experience that can help make the plan more successful.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.