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Computer Repair Business Plan

Starting a computer repair business can be a lucrative and rewarding business venture for any tech enthusiast.

However, entering the marketplace without proper planning can put your business at risk. That’s where a business plan can help.

Need help writing a business plan for your computer repair business? You’re at the right place. Our computer repair 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 Computer Repair Business Plan?

Writing a computer repair 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:

• This section may include the name of your computer repair business, its location, when it was founded, the type of computer repair business (E.g., general computer repair, mobile device repair, gaming console repair.), etc.

Market Opportunity:

Products and services:.

• For instance, your computer repair services may include diagnostic and troubleshooting, hardware repair, software installation, data backup solutions, and network and connectivity solutions.

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:

Describe your business in this section by providing all the basic information:

• General computer repair
• Laptop repair
• Mobile device repair
• Remote support services
• Gaming console repair
• On-site repair services
• Describe the legal structure of your computer repair company, 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:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

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:

• For instance, computer educational institutes and IT offices can be an ideal target market for a computer repair business.

Market size and growth potential:

Competitive analysis:, market trends:.

• For instance, there is a growing demand for mobile device repair services; explain how you plan to deal with this growing market trend.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your computer repair 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:

Describe your services:

Mention the computer repair services your business will offer. This list may include services like

• Diagnosis and troubleshooting
• Hardware repair and replacement
• Virus and malware removal
• Networking and connectivity solutions
• Software installation and configuration

Service Process:

• You might mention how customers request computer repair services, how you diagnose or troubleshoot issues, and when you deliver services.

Quality Assurance:

• This may include standardized procedures, timely quality audits, monitoring and testing equipment, and continuous improvement.

Additional Services

In short, this section of your computer repair 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):

• For example, fast turnaround times, on-site repairs, specialized expertise, and environment-friendly practices could be some of the great USPs for a computer repair company.

Pricing Strategy:

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

• For instance, your customer retention strategies may include providing excellent customer service, customer feedback and surveys, and follow-up calls.

Overall, this section of your computer repair 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 computer repair business, 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:.

• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

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 computer repair business’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:.

• It should include senior management and other key people involved in the computer repair business operations, including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your computer repair services, 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:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

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 computer repair 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 computer repair 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 computer repair business plan will provide an idea for writing a successful computer repair 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 computer repair business plan pdf .

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Frequently asked questions, why do you need a computer repair business plan.

A business plan is an essential tool for anyone looking to start or run a successful computer repair business. 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 computer repair company.

How to get funding for your computer repair business?

There are several ways to get funding for your computer repair business, 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-after 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.

Where to find business plan writers for your computer repair business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your computer repair business plan and outline your vision as you have in mind.

What is the easiest way to write your computer repair business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any computer repair business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

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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Top 10 Computer Shop Business Plan Templates with Examples and Samples (Editable Word Doc, Excel and PDF Included)

Samradni Pradhan

In today's digital age, computer shops play a vital role in facilitating the technology needs of individuals and businesses. Several factors highlight the ongoing necessity for a computer shop .

Computer shops or computer repair shops offer a valuable service to help consumers choose the best hardware and software, carry out repairs, and offer technical support. With the rapidly changing nature of technology, businesses must have physical locations where clients can view and contrast the newest goods. Computer stores act as showrooms where potential customers can try products and get firsthand experience before purchasing.

A strong business strategy, however, is essential to starting and managing a computer store. To ensure long-term sustainability and profitability, it aids in outlining plans for inventory management, marketing, pricing, and customer service. A company strategy furthermore acts as a roadmap, assisting entrepreneurs in adjusting to the constantly altering tech scene and satisfying the wants of their clientele.

The best computer shop business plan templates will be the main topic of this article for you and your company.

Table of Contents

• Executive Summary
• Company Overview
• Industry Analysis
• Customer Analysis
• Competitive Analysis
• SWOT Analysis
• Porter’s Framework
• Operational Plan
• Financial Plan

When considering opening a computer store, there are many factors to consider. In this case, our templates are handy. Using our thorough business plan template gives your business ideas a canvas and a notepad. These templates were specially developed with the requirements of a business plan for a computer shop.

After downloading, you will get the 48-page Doc, PDF, and XLS files.

1. executive summary.

The core of your computer shop business plan is the executive summary, which summarizes the entire document. To attract potential investors, this area is crucial. It should showcase your computer market’s unique value proposition, mission, and vision. Investors can rapidly determine a company's viability by looking at its primary goals and fundamental tactics. A powerful executive summary establishes the general tone of the business strategy. Demonstrating how well-defined your business strategy is and its exciting potential in the computer store sector serves as a tool to attract investors.

In our Executive Summary section, you will get templates for

1.1 The Quick Pitch: Give a powerful and concise introduction highlighting the main traits and value propositions that set your computer store business apart, leaving a lasting impression on potential partners and investors.

1.2 The Entity: Make an easy-to-understand visual representation of your company's organizational structure and a distinctive brand to attract investors' and partners' attention while outlining the genuine nature of your computer store's marke t.

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Looking for a Computer Shop Business Plan in a PowerPoint Format? Click here to explore this fantastic option.

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2. Company Overview

Investors will be given a summary of the company, its background, and its key principles on the Company Overview page. Investors are expected to gain a foundational understanding of the company's structure from this part. If potential investors are given a clear image of the company's mission, culture, and aspirations, they may be more likely to invest in it. It is a chance for the business to show its dedication and zeal, which could be a significant element in luring investors who share the same ideals and goals as the business.

In our Company Overview section, you will get templates for

2.1 Goals & Objectives: Create a clear and motivating road map to success by clearly defining your goals.

2.2 Start-up Summary: Give a brief overview of the beginnings, organizational structure, and key components that served as the cornerstone of your creative process.

2.3 Market Gap and Solution: Unleash the possibilities of the computer retail sector and showcase your distinctive brand to stand out from the competition.

2.4 Products & Services Offered: Showcase your top-notch computer shop services. Show off your complete spectrum of artistic and design abilities.

2.5 Key Success Factors: Investigate the fundamentals that comprise your business plan for a computer shop to set yourself up for success in terms of appearance and design.

3. Industry Analysis

You may get a detailed look at the state and prospects of the computer shop sector by reading the industry analysis. To invest in, investors are looking for high-growth businesses. You may learn more about the market size, prevalent industry trends, and new business prospects from the analysis. It positions your computer store organization to comprehend the present industry dynamics. Investors seeking out expanding industries will find it more alluring as a result.

In our Industry Analysis section, you will get templates for

3.1 Market Analysis: Discover the hidden gems and the industry pioneers who will transform your company for the better as you explore the computer store sector in all its splendor.

3.2 Market Trends: To maintain your consumers' interest, keep up with the most recent trends in computer shops to stay one step ahead of the competition.

3.3 Major Challenges: To keep your computer shop business expanding and prospering, take on the industry head-on and create novel solutions.

3.4 Growth Drivers: Make a strategy plan and decide what will drive your computer store brand's expansion and success in the next years.

3.5 Geographical Analysis: You may assure steady growth that appeals to regional preferences and satisfies local criteria by adapting your strategy to the regions of your target market.

4. Customer Analysis

Knowing who your consumers are is one of the most crucial things investors want to know about your company. You'll want to show that you understand your client's needs, preferences, interests, and personality types on this page. Investors want to know that you understand your market and have strategies to attract and keep clients. It will reassure you that there is a need for your computer hardware market services if you can show that you understand your consumers.

In our Customer Analysis section, we offer comprehensive templates for:

4.1 Target Market: To gain a precise and measurable picture of the market, get a bird's eye perspective of the kind of clients or industries that your services are most suited for.

4.2 Buyer Persona: Create a thorough profile of your ideal customer, including information on their age, gender, tastes, and behavior, so you can skillfully tailor your services to their unique needs.

4.3 Market Sizing: Find the market size for computer shops, calculate the market share your brand can capture, and let us know what prospects exist for you in your sector.

5. Competitive Analysis

Investors like companies knowledgeable about their rivals and the growing trends. The competitor analysis will teach you about the advantages and disadvantages of your competitors. Investors will be able to assess your competitive advantage. Investors who recognize your company's potential to outperform rivals will get interested in it if you demonstrate how you plan to differentiate yourself from the competition in the PC market.

In our Competitive Analysis section, we provide templates for:

5.1 Major Players: By recognizing and evaluating the leading rivals and essential market players, you may successfully navigate the dynamic world of the computer business.

5.2 Key Attributes: You can strategically position your items by conducting in-depth research and making meaningful comparisons of the main traits and features that set other computer store products and services apart in the computer accessories market.

6. SWOT Analysis

The SWOT analysis is a crucial tool for self-evaluation. With a SWOT analysis, investors can better grasp your computer shop's internal strengths and weaknesses as well as its exterior opportunities and dangers. You will discover how to evaluate your company's risks, control them, and build on its advantages on this page. Your company will be more enticing to risk-averse investors.

7. Porters Framework

Porter's Framework examines the rivalry in your industry. Investors are interested in how well-positioned and capable of withstanding competition your computer store firm is. Investors looking for companies with a strong market presence and long-term competitive edge may be drawn to your organization by showcasing your competitive strategies and computer or laptop accessories market position.

8. Marketing Plan

The marketing strategy details how you want to draw in and keep clients. Customers and investors require a thorough marketing strategy for brand building and customer acquisition. Customers and investors who recognize the importance of successful marketing for company growth are attracted by an effective marketing strategy.

In our Marketing Plan section, we provide templates for:

8.1 Promotional Strategies: Make a strong impression on the industry with your computer shop brand by shining a bright light on your marketing and promotion tactics.

8.2 Sales Strategies: Create a unique sales strategy that is specially designed to achieve and even surpass the financial objectives of your computer shop business.

8.3 Pricing Strategies: Learn the trick to developing a pricing strategy that combines profitability and unparalleled competitiveness to become the standard in the computer store sector.

8.4 Sales Funnel: With the expansion of your computer store business, you may guide your consumers through an engaging experience from discovery to satisfaction. Optimize each stage of the sales funnel to increase efficiency and improve the customer experience at your computer store.

9. Operational Plan

On the Operational Plan page, you should describe your company's everyday activities, including staff, operations, and technology. If you have a carefully thought-out operating plan, investors will be more confident in your company's capacity to accomplish its goals and grow.

In our Operational Plan section, we provide templates for:

9.1 Operational Milestones: Highlight the significant turning points and incredible accomplishments that have shaped your growth and success to animate the history of your computer store empire.

10. Financial Plan

The Financial Plan is significant to investors because it helps them comprehend the financial aspects of the administration of the computer store, including how much money will be generated, spent, and lost. Financial estimates that are trustworthy and realistic might entice investors looking for strategies to expand and sustain their businesses.

In our Financial Plan section, we provide templates for:

10.1 Financial Assumptions: Use professional services to turn your business goals into a strategic strategy to boost your computer shop's bottom line.

10.2 Revenue Model: Choose a revenue stream for your computer shop enterprise and plan for future growth.

10.3 Break-Even Analysis: Identify the obstacles preventing your computer shop from making a profit, which is the first step toward profitability.

10.4 Profit and Loss Statement: Learn everything there is to know about the financial possibilities of your computer shop business, including the possible revenue, the prospective expenses, and the projected revenue.

10.5 Cash Flow Statement: To ensure your computer store business is profitable, track how much money you anticipate making.

10.6 Balance Sheet: Get a thorough picture of your computer shop's revenue, the debt you'll incur, and your company's value. You'll be able to manage your money as openly as possible in this manner.

10.7 Scenario Analysis: Consider several situations to discover how various circumstances and dangers may affect the profitability of your computer shop business.

10.8 DCF Valuation: The present market value of your business in the computer industry can be ascertained using a discounted cash flow analysis.

We have so much more to offer

We hope this blog has given you a taste of the fantastic content in this business plan, but this is just the beginning. Graphic-filled 48 pages of content are included when you download our business plan. We can make things simpler for you. Download our business plan ppt templates to customize it to your company's needs.

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How to Start a Computer Repair Business

Starting a computer repair business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful computer repair business.

Importantly, a critical step in starting a computer repair business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Computer Repair Business :

• Choose the Name for Your Computer Repair Business
• Develop Your Computer Repair Business Plan
• Choose the Legal Structure for Your Computer Repair Business
• Secure Startup Funding for Your Computer Repair Business (If Needed)
• Secure a Location for Your Business
• Register Your Computer Repair Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Computer Repair Business
• Buy or Lease the Right Computer Repair Business Equipment
• Develop Your Computer Repair Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Computer Repair Business
• Open for Business

1. Choose the Name for Your Computer Repair Business

The first step to starting a computer repair business is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own computer repair business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your computer repair business.

2. Develop Your Computer Repair Business Plan

One of the most important steps in starting a computer repair business is to develop your computer repair business plan . The process of creating your plan ensures that you fully understand your market and your business model. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your new computer repair business.
• Company Overview – this section tells the reader about the history of your computer repair business and what type of computer repair business you operate. For example, are you a PC, Mac, mobile phone, or a tablet repair shop?
• Industry Analysis – here you will document key information about the computer repair industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products or services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your computer repair business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your computer repair business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your computer repair business.

Next you need to choose a legal structure for your computer repair business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the computer repair business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a computer repair business together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a computer repair business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a computer repair business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your computer repair business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Computer Repair Business (If Needed)

In developing your computer repair business plan , you might have determined that you need to raise funding to launch your business.

If so, the main sources of funding for a computer repair business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a computer repair business that they believe has high potential for growth.

5. Secure a Location for Your Business

When starting a computer repair business, or a commercial computer repair business, the first step is to find a business location. The best place for a computer repair business is in an area with many companies and people. A busy area will bring in more customers. It would help if you also looked for a location that is easy to get to and has plenty of parking. You can rent a space or buy a property. If you purchase a property, make sure it is zoned for commercial use.

6. Register Your Computer Repair Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your computer repair business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your computer repair business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Licensing and permitting requirements may vary by location. Some licenses and permits you may need to start a computer repair business, or a commercial computer repair business include a business license, a vendor’s license, a seller’s permit, and a contractor’s license. Reach out to your local licensing office to determine which licenses and permits are required for your business.

10. Get Business Insurance for Your Computer Repair Business

The type of insurance you need to operate a computer repair business may vary depending on the scope of your operation. For instance, if you offer mobile computer repair services, you will need auto insurance for your business’s vehicle.

Some business insurance policies you should consider for your computer repair business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Computer Repair Business Equipment

To run a computer repair business, you will need some basic office equipment including a computer, phone, and internet connection.

12. Develop Your Computer Repair Business Marketing Materials

Marketing materials will be required to attract and retain customers to your computer repair business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your computer repair business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional computer repair business website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you..
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your computer repair business.

13. Purchase and Setup the Software Needed to Run Your Computer Repair Business

To start a computer repair business, you’ll need some essential business software. First, you’ll need business software such as QuickBooks to manage your finances. You may also want to invest in an inventory management system to track the parts and tools you need for repairs. Finally, a customer relationship management (CRM) system will be helpful for managing your customer information, and a website will be useful for promoting your business.

14. Open for Business

You are now ready to open your computer repair business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

How to Start a Computer Repair Business FAQs

Is it hard to start a computer repair business.

There is no one-size-fits-all answer to this question, as the difficulty of starting a computer repair business will vary depending on the specific niche, the amount of competition in your area, and your level of experience. However, if you have the skills and knowledge required to start a successful computer repair business and you can market your computer repair service effectively, you are off to a good start. Additionally, it is helpful to have a solid business plan before starting any business to ensure that all of your bases are covered and that you have a clear road map for success.

How can I start a computer repair business with no experience?

There are a few ways to start a computer repair business with no experience. You can start by doing research on the internet, attending computer repair classes, or reading books about computer repair. Additionally, you can network with other computer repair shops and learn from their experiences. Finally, you can offer free services to friends and family to get some experience before starting your own business. 

What type of computer repair business is most profitable?

The profitability of computer repair businesses can vary depending on many factors. However, some of the most profitable computer repair businesses are those that offer services in high demand, such as data recovery or virus removal. Furthermore, businesses that offer a variety of services, as well as those that have a strong online presence, are likely to be more profitable than those that do not.

How much does it cost to start a computer repair business?

It costs about $1,000 to start a computer repair business. This includes setting up a small workshop, purchasing necessary tools and equipment, and advertising your new business. If you lease or purchase a space, the startup costs will be higher.

What are the ongoing expenses for a computer repair business?

There are a few ongoing expenses for a computer repair business. One is the cost of advertising and marketing. This cost may include flyers, online ads, and mailing lists. Another expense is the cost of parts and tools. A computer repair business may need to invest in new tools and parts as technology changes. Finally, there is the cost of insurance. This is important to protect the business and its employees in case of accidents or damage to equipment.

How does a computer repair business make money?

One way a computer repair business makes money is by charging a fee for each service provided. Many computer repair businesses also offer hardware and software sales, which can provide additional revenue. Finally, a computer repair business can make money by providing consulting services to businesses or individuals.

Is owning a computer repair business profitable?

There are several reasons owning a computer repair business can be profitable. One reason is that the demand for computer repair services is high. Many people rely on their computers every day to conduct business and stay connected with friends and family. Additionally, many companies outsource their computer repair needs, giving computer repair businesses great opportunities to generate revenue. Finally, computer repair is a relatively low-cost business to start, making it an attractive option for entrepreneurs.

Why do computer repair businesses fail?

There are many reasons computer repair businesses can fail. One of the most common reasons is a lack of understanding of the market. Companies need to understand what their target customers are looking for to succeed. Another reason is a lack of very strong technical background . A business needs to understand the products they're repairing and the technology behind them to be successful. Finally, a lack of customer service can be a death knell for a computer repair business. If customers don't feel like they're getting the help they need, they'll take their business elsewhere.

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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 191,502 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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Starting a Computer Shop: Your Complete Guide

Main Sections In This Post Steps To Starting A Computer Shop Points to Consider Resources Knowledge Is Power Featured Video

Discover what to anticipate when running a computer shop. Explore a comprehensive guide, including valuable industry insights and a step-by-step plan.

Access essential resources for launching and sustaining your business, ensuring a successful journey in the computer shop industry. Remember to bookmark and share this valuable content if you like it!

Let’s get started with the steps.

Steps to Starting a Computer Shop

Below are the steps to starting a computer shop.

Each step is linked to a specific section, allowing you to jump to your desired section or scroll to follow the steps in order.

• An Overview of What You’re Getting Into
• Computer Shop Overview
• Researching Your Computer Shop
• Looking at Financials
• Choosing A Business Location
• Creating Your Mission Statement
• Creating A Unique Selling Proposition (USP)
• Choose a Computer Shop Name
• Register Your Company
• Create Your Corporate Identity
• Writing a Business Plan
• Banking Considerations
• Getting the Funds for Your Operation
• Software Setup
• Business Insurance Considerations
• Supplier Considerations
• Physical Setup
• Creating a Website
• Create an External Support Team
• Hiring Employees

1.  An Overview of What You’re Getting Into

Is Starting a Computer Shop the Right Step for You?

Passion: The Driving Force for Success

There is a key factor to succeeding in the computer shop, and that factor is you!

Understanding Your Passion

Understanding your feelings about owning and running a computer shop is important. Passion is a crucial element for success in your own business. It is the driving force you need.

The Power of Passion

When you’re passionate about your computer shop, problems become opportunities for finding solutions. Without passion, you may find yourself seeking a way out.

Measure Your Passion

How passionate are you about owning your computer shop?

The 5 Wishes Test

Let’s look at an interesting perspective: Imagine you were granted 5 wishes for anything you want. No restrictions!

Your Wish and Passion

Would you start a computer shop with one of your wishes in this situation? If your answer is yes, it shows that you are passionate about owning and operating a computer shop and are heading in the right direction.

Discover Your Path

However, if your answer is no, it prompts another question: What would you prefer to do instead? Perhaps, you should pursue that path instead.

Passion Leads to Success

In summary, you need to be passionate about the computer shop. You are starting to increase your chances of success. Without passion, you may be facing an uphill battle.

For More, See How Passion Affects Your Business . Also, see, Considerations Before You Start Your Business to identify key points for a new business owner.

2. Gaining an Overview of Owning a Computer Shop

Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running your business.

a.) A Quick Overview of Owning a Computer Shop

A computer shop is a store that sells computers, components, and accessories. Sometimes related services like repairs or software installations are offered.

Such shops cater to a wide audience, from individuals seeking personal computers to businesses needing bulk hardware.

Day-to-Day Tasks Involved in Running a Computer Shop

Managing a computer shop involves various daily activities:

• Inventory Management: Keeping track of stock, ordering new products, and ensuring that the store has a variety of items to cater to different customer needs.
• Sales: Assisting customers in purchasing decisions, explaining product features, and processing transactions.
• Customer Service: Handling returns, addressing customer complaints, and ensuring customer satisfaction.
• Maintenance: Ensuring that the shop remains clean, organized and that all display units function correctly.
• Technical Support: For shops that provide repair or software services, there’s a need for diagnosing issues, repairing hardware, or installing software.
• Marketing and Promotion: Creating and executing strategies to attract customers, including social media campaigns, promotions, or in-store events.
• Staff Management: For larger shops, this includes scheduling shifts, training new employees, and overseeing the team’s performance.

Owning and running a computer shop requires balancing technical knowledge and business management skills. Building a loyal customer base and staying updated with the latest computer technology is key to success in this industry.

b.) A Key Points To Succeeding in a Computer Shop

Building a Strong Customer Base: Attracting a steady stream of customers in the startup phase can be challenging. Establishing trust early on and creating a loyal customer foundation that provides consistent patronage is essential.

Fostering Positive Relationships: Cultivate healthy relationships with customers, suppliers, and employees. Trusted suppliers can provide better deals and timely deliveries, while content employees contribute positively to the overall business atmosphere.

Tailored Product and Service Lineup: It’s not just about having products but the right ones. Understand your target audience and provide the products and services they genuinely want.

Acting on Customer Feedback: Listen to your customers. When they voice concerns or suggestions that align with your business operation, address them proactively.

Prioritizing Customer Service: Your customers are the lifeline of your business. Always maintain high customer service to ensure a satisfactory shopping experience.

Consistent Value Delivery: In every transaction or service, ensure you provide genuine value to your customers.

Hire the Right Team: Employing individuals who align with your business ethos is crucial. A well-suited team can dramatically boost business operations and customer satisfaction.

Effective Staff Management: Treat staff respectfully and as a collective unit. A healthy work environment is conducive to high productivity levels and can enhance employee retention.

Cash Flow Vigilance: Monitor and manage your cash flow to ensure the business remains financially healthy, even in leaner periods.

Balancing Cost and Quality: While keeping costs low is important, it should never come at the expense of product quality or service standards.

Staying Ahead of Change: The computer industry is dynamic. Whether it’s tech advancements or evolving business processes, adaptability is necessary.

Navigating Revenue Fluctuations: Revenue might not always be steady. Have strategies to manage lean times without compromising the shop’s operations.

Competitor Awareness: Be mindful of both new entrants and existing competitors. Understanding their strategies can help refine your own.

Strategic Advertising and Marketing: Effective marketing campaigns are crucial whether in-house or outsourced. They drive traffic and position your shop favorably in the market.

By keeping these points in mind and adapting to the ever-evolving landscape, computer shop operators can ensure longevity and success in the industry.

c.) Making Your Computer Shop Stand Out

Friendly Communication for All:

One of the core aspects of a successful computer shop is communication. There’s a vast segment of the population who might not be tech-savvy.

Adopt a non-technical way of communicating with such customers. Break down complex jargon into simple, relatable terms.

This approach ensures that everyone feels welcome and understood rather than overwhelmed or embarrassed by technical terms.

Niche Product Selection:

Carry unique or hard-to-find products that cater to a specific market segment. For instance, retro gaming enthusiasts might seek older computer models or accessories.

Hands-On Experience Zones:

Set up areas where customers can try out products before buying. This tactile experience can be particularly effective in helping make purchasing decisions.

Workshops and Classes:

Offer beginner’s classes on computer basics or software tutorials. This positions your shop as a knowledge hub and strengthens community ties.

Expert In-Shop Support:

Have dedicated personnel to answer questions or provide quick fixes. Customers will appreciate the immediate attention and expert guidance.

Eye-Catching Store Design:

A distinctive store layout or theme can create a memorable shopping experience, encouraging repeat visits.

Loyalty Programs:

Implement reward schemes or loyalty cards to encourage repeat business and to make customers feel valued.

d.) Add-on Ideas for Your Computer Shop:

Cell Phone Corner: Given the ubiquity of smartphones, consider having a section dedicated to cell phones. This can include sales of popular models, repairs, and software optimization services.

Customization Station: Offer services like custom PC builds where customers can select individual components based on their needs.

Extended Warranties: Offer extended product warranty plans, assuring customers of prolonged support.

Accessory Bundles: Create packaged deals with complementary products, such as a mouse, keyboard, and headset bundle, at a discounted price.

Recycling Services: Provide an option for customers to bring in old electronics for recycling. This promotes sustainability and can draw in eco-conscious patrons.

Tech Book Section: Consider a small section with top-rated tech magazines or books. It can be a great resource for enthusiasts looking to expand their knowledge.

Subscription Services: Implement a subscription model for regular software updates, system check-ups, or antivirus solutions.

VR Experience Booth: Virtual Reality is a growing trend. A VR booth that customers can try before buying can be a unique attraction.

Your computer shop can effectively stand out and cater to a broader clientele by offering diverse services and ensuring a customer-centric approach.

Computer Shop Models

Traditional Retail Store:

This is the most common setup where customers walk in, browse products, and make purchases. These stores often have a wide range of computers, accessories, and sometimes software.

They earn revenue primarily from direct sales and may offer some basic after-sales services.

Service and Repair Hub:

Focusing primarily on fixing hardware and software issues, this model relies heavily on technical expertise.

Revenue is generated from service charges, the sale of replacement parts, and sometimes software installations or upgrades.

Custom Build Specialists:

These shops cater to enthusiasts and professionals looking for tailor-made computer systems. They work closely with customers to understand requirements and assemble machines that fit specific needs.

Earnings come from sales of high-end components and assembly charges.

Online and E-Commerce:

An online storefront caters to a wider audience, sometimes even globally. While it reduces overheads linked to a physical location, it demands efficient logistics, inventory management, and digital marketing efforts.

Revenue is generated from online sales, and there’s potential for subscription-based tech support or remote software installation.

Second-Hand and Refurbished Sales:

Focusing on selling used or refurbished computers, these stores cater to budget-conscious customers. They acquire old devices, upgrade or repair them, and sell them at a lower price than brand-new items.

Revenue comes from sales and sometimes from repair services.

Educational and Training Center:

While not primarily a sales model, these setups offer courses, workshops, and training sessions on various computer-related topics.

They generate income from course fees, and there’s potential for sales of related software or equipment.

Specialty or Niche Shops:

These shops focus on specific areas, like gaming rigs, graphic design machines, or vintage computers.

They cater to a passionate and specialized clientele, generating revenue from sales of niche products and related accessories or software.

Tech Cafés:

A blend between a coffee shop and a tech hub, patrons can try out new devices while enjoying a cup of coffee.

Revenue is a mix of product sales, food and beverage sales, and sometimes fees for special tech events or launches.

Choosing the right business model from the beginning is crucial, as switching your model later is more challenging. Identifying a profitable and high-demand niche for your computer shop is essential.

f.) Questions You Need to Consider for Your Computer Shop

Type of Business Model: What computer shop model are you considering? The answer can help streamline your subsequent decisions, resources, and business strategies.

Work Delegation: Will you personally handle all the tasks, or is hiring employees on the horizon? Your decision impacts the operational dynamics of your shop.

Management Considerations: Do you intend to be at the forefront, managing the shop, or are you considering hiring a manager to oversee daily operations?

Partnerships and Funding: Are you contemplating bringing partners or investors to share responsibilities or provide additional capital?

Business Location: Do you envision your computer shop being home-based, or are you looking at commercial locations? The location can play a pivotal role in reaching your target audience.

Business Format: If applicable, are you leaning towards a physical brick-and-mortar setup, or is the idea to operate predominantly online?

Growth and Future Plans: Have you given thought to scalability? What are your long-term aspirations for your computer shop?

Customer Engagement: How do you plan to maintain and enhance customer relationships?

Inventory Management: Have you thought about your sourcing strategy? Will you keep large stock or follow a just-in-time inventory system?

Marketing and Promotion: What strategies do you have to create awareness about your computer shop and attract customers?

Technological Considerations: Do you plan to incorporate the latest payment, inventory, or customer relationship management technology?

Regulatory and Compliance: Have you researched the necessary licenses, permits, or regulations associated with running a computer shop?

Financial Strategy: How do you plan to manage your shop’s finances? Do you have a break-even analysis or a projected cash flow statement?

As you establish your computer shop, addressing these questions can provide clarity, ensuring you’re well-prepared for the challenges and opportunities ahead.

g.) Pros and Cons of Owning a Computer Shop

Pros of Running a Computer Shop

Being Your Own Boss: Running a computer shop means being in charge. A sense of independence comes with not having to answer to anyone.

Decision-Making Power: You can call the shots and run the business based on your vision and principles.

Creative Freedom: You’re free to innovate, whether in terms of the products you stock, the store’s layout, or the marketing campaigns you run.

Potential for High Revenue: If executed well, a computer shop can yield significant profits, especially in tech-savvy regions.

Flexible Hours: Once your business is successful and you’ve built a reliable team, you can choose your working hours, allowing for a better work-life balance.

Control Over Work Environment: From the store’s ambiance to the tech tools you use, every element can be tailored to your preferences.

Direct Impact: You can witness the direct results of your hard work and strategies. Each success story or satisfied customer is a testament to your efforts.

Building Community: Owning a computer shop can make you a central figure in the local tech community, providing opportunities for networking and partnerships.

Cons of Running a Computer Shop

Sole Responsibility: When issues arise, they land squarely on your shoulders. Problems, big or small, are yours to solve.

Irregular Income: Especially in the early days, there might be times when business is slow, affecting your income.

Challenging Initial Phase: The startup phase requires a lot of effort, from finding the right location to sourcing inventory and hiring staff.

Customer Acquisition and Retention: Building a loyal customer base isn’t easy; maintaining those relationships demands consistent effort and quality service.

Long Working Hours: Until the business gains traction, you might work longer than traditional working hours.

Success Pressure: Being the face of your business, there’s inherent pressure to succeed and prove the viability of your venture.

Initial Capital Requirement: Setting up a computer shop, especially a physical one, demands a substantial investment in inventory, rent, and other overheads.

Constant Evolution: The tech world is ever-changing. Keeping up with the latest trends, products, or software can be overwhelming.

Inherent Business Risks: There are multiple risks in running a computer shop, from potential thefts to market downturns or technological disruptions.

Technical Challenges: You’ll often need to keep abreast of technical developments and issues, which can be challenging if you’re not tech-savvy.

Inventory Management: Predicting which products will be in demand and managing stock levels can be a delicate balance, with overstocking or stockouts having financial implications.

By weighing these pros and cons, potential owners can better prepare for the realities of running a computer shop and make informed decisions that bolster the chance for success.

For more, see Pros and Cons of Starting a Small Business.

3. Research

Computer shop research.

Research: Your Key to Informed Decisions

You must conduct thorough research for the computer shop business you intend to open before taking any other action.

With quality information, you will know what you’re getting into. Otherwise, you might find yourself in a situation you don’t expect.

Learn from Experienced Professionals

One way to get the best information is from people experienced in running a computer shop. They are qualified to give you information you can depend on.

The time you spend with them can be priceless and an opportunity to gain insights from their knowledge and years of experience.

Article: Your Guide to Connecting

I have written an article with ideas to help find the right people to contact and approach them in an acceptable and non-threatening way.

The steps go beyond this post, but I strongly suggest you read the article from the link below to understand what you’re getting into.

See An Inside Look Into the Business You Want To Start for all the details.

Target Audience

Understanding your target audience in the computer shop industry can lead to significant benefits.

Knowing your target market, you can tailor your offers to appeal directly to customers and provide products and services that pique their interest.

This targeted approach enhances customer satisfaction and fosters brand loyalty.

Target Market Ideas:

• Tech enthusiasts and hobbyists
• Small business owners in need of computer equipment
• Students seeking laptops and accessories for educational purposes
• Gamers looking for high-performance gaming rigs
• Professionals requiring reliable workstations
• Individuals seeking computer repairs and technical support
• Home users looking for everyday computing solutions.

For more, see How To Understand Your Target Market.

4. Looking at Financials:

Computer Shop Financial Overview

This section concisely overviews startup costs, routine expenses, revenues, and potential earnings for a computer shop.

Startup Cost:

Getting a precise grip on the initial expenses is imperative to lay the groundwork for a thriving computer shop. This ensures a seamless transition from the ideation phase to the grand opening .

Underestimating could lead to a funding shortfall, hindering your shop’s launch. On the flip side, overestimating could paint your computer shop as a high-risk enterprise.

Factors influencing your initial outlay include the shop’s scale, location, whether to recruit staff immediately, the decision to invest in brand-new or refurbished tech equipment, and the choice between renting and leasing a storefront.

Begin by cataloging every requisite item, followed by diligent market research for accurate pricing. This exercise will likely bring other considerations to the fore, enabling a comprehensive budget projection.

For more detailed information, refer to my article on Estimating Startup Costs.

Sales and Profit:

The revenue stream of your computer shop will be significantly impacted by:

• The appeal of your computer products and tech services.
• The prevailing demand for tech products and IT solutions.
• Strategically promoting your shop to resonate with the target demographic.

Merely assessing the margin on each computer or accessory sold won’t give you the full financial picture. It’s essential to factor in recurring expenses to get a handle on profitability. This includes rent for your shop, payroll for technicians and sales staff, utility bills, and other operational overheads.

For your computer shop to flourish, you must clock in consistent sales, robust enough to comfortably manage these monthly outgoings and draw a personal income.

For More, See Estimating Profitability and Revenue

Sample Financial Lists As a Starting Point

Below are three overly simplified sample financial lists to provide a broad understanding of the key areas to consider.

Estimated Startup Costs for a Computer Shop:

• Shop Lease Deposit: $5,000 – $15,000
• Renovation and Setup: $3,000 – $10,000
• Initial Inventory (Computers, Accessories, Parts): $20,000 – $50,000
• Licensing and Permits: $500 – $1,500
• Insurance: $1,000 – $5,000
• Tech Equipment (Cash Registers, Security Systems): $2,000 – $8,000
• Initial Marketing and Branding: $2,000 – $6,000
• Miscellaneous (Furniture, Decor, etc.): $2,500 – $7,500

Total Startup Costs: $36,000 – $103,000

Estimated Monthly Expenses:

• Shop Lease: $2,000 – $5,000
• Employee Salaries: $5,000 – $15,000
• Utility Bills (Electricity, Internet, etc.): $500 – $1,500
• Loan Payments: $500 – $1,500
• Inventory Restocking: $10,000 – $25,000
• Marketing and Advertising: $1,000 – $4,000
• Miscellaneous Expenses: $500 – $2,000

Total Monthly Expenses: $19,500 – $54,000

Sales and Profit Sample Outline:

Assuming a monthly sales volume of 100 units (mix of computers, accessories, and tech services):

• Average Sale Price per Unit: $500
• Total Revenue: $500 x 100 = $50,000

Deducting the upper range of monthly expenses from this figure:

• Estimated Monthly Profit: $50,000 – $54,000 = -$4,000

This profit estimate has been calculated based on a moderate sales scenario, considering an average sale price and the provided monthly sales volume.

Understanding that actual profits can vary due to external factors, promotional activities, seasonal demands, and operational efficiencies is essential.

These fictitious examples help you grasp the considerations essential when planning your computer shop.

Adjusting costs can greatly influence the success trajectory of the business. Even a minor alteration in profit per sale, especially on higher sales volumes, can significantly impact overall profits.

It’s also worth noting that many new businesses require time to turn profitable. Establishing a solid customer base, forging a reputation, and streamlining operations are all steps in this journey.

Your actual figures will vary. Each scenario is unique, with various factors at play.

It’s advisable to conduct thorough research and possibly seek professional advice when mapping out startup costs, ongoing expenses, and potential revenue and profits for your enterprise.

5. Choosing The Right Business Location

The Importance of Location for a Computer Shop

Location’s Impact on Success

Your choice of location can significantly influence the success or downfall of your computer shop.

Setting up in an area without interest in tech products and services will likely spell trouble before you even get started.

Balancing Demand and Competition

Starting your shop in a region saturated with similar businesses can make it challenging to carve out a niche.

You’re seeking that sweet spot: a place with a keen demand for tech but without being overwhelmed by competitors.

Budgeting and Affordability

While it might be tempting to set up shop in a bustling urban center, remember to weigh the potential benefits against the costs.

Such areas promise more foot traffic, but can you keep up with the high rents?

Evaluating Low-Cost Areas

Conversely, choosing a more affordable spot might save on rent, but is the location too remote? Will you be able to attract enough customers to sustain the business?

Final Thoughts on Choosing a Location

Picking the right spot for your computer shop is a pivotal decision. It’s about striking a balance between demand, competition, and cost. Research and make an informed choice. Your shop’s success hinges on it!

For more about business locations, see Choosing The Best Location for Your Business.

6. Create Your Mission Statement

A mission statement plays a vital role in identifying the purpose of your computer shop business. It keeps you focused and reminds you of the primary benefit you strive to offer your customers and community.

Examples of Computer Shop Mission Statements:

• “Our mission is to provide cutting-edge technology solutions and exceptional customer service to empower individuals and businesses in their digital endeavors.”
• “At XYZ Computers, we are dedicated to offering top-quality products, reliable technical support, and fostering a technology-driven community.”
• “Striving to be the go-to destination for all computing needs, our mission is to deliver innovative and affordable solutions, backed by expert advice and unmatched customer care.”

For more, see, How To Create a Mission Statement

7. Creating A Unique Selling Proposition (USP)

A Unique Selling Proposition (USP) assists in identifying and creating distinctive features that set your computer shop apart from the competition.

Examples of USPs for a Computer Shop:

• “Offering personalized computer assembly with tailored specifications to meet individual needs.”
• “Fast and efficient computer repair services, ensuring minimal downtime for our customers.”
• “Exclusive selection of rare and vintage computer components for enthusiasts and collectors.”
• “Free comprehensive tech workshops to empower customers with better computer knowledge.”
• “Extended warranty coverage and lifetime technical support for all products.”

8. Choose a Business Name

When selecting a name for your computer shop, aim for something catchy and fitting. Opt for a name that’s easy to remember and pronounce.

Keep in mind that business names are usually long-lasting, so choose wisely. Ensure the name aligns with your vision for the company.

Furthermore, securing a matching domain name for your online presence is crucial. Check for existing registrations to avoid conflicts.

30 Computer Shop Name Ideas to Inspire Your Creativity:

• Tech Haven Emporium
• ByteCraft Computers
• Digital Nexus Solutions
• Circuit Central
• MegaByte Mart
• TechTrendy Hub
• Computopia Corner
• GigaGadgets
• MicroTech Masters
• CyberSphere Store
• Speedy Systems Hub
• ElectroByte Emporium
• DataDynamics Depot
• The PC Prodigy
• Logic Lane Computers
• TechnoTrail Blazers
• Future Fusion Tech
• The IT Gurus
• ByteGenius Store
• ComputeConnect Hub
• QuantumQube Computers
• DigitalDream Machines
• The Chippery Shop
• eTech Euphoria
• TechnoCraft Corner
• MicroMega Depot
• ComputeXpress Solutions
• ByteBlast Tech
• CircuitSavvy Store

For more, see the following articles:

• How To Register a Business Name
• Registering a Domain Name For Your Business

9. Register Your Company

Ensuring Your Computer Shop Business is Legal and Compliant

Setting up your computer shop business requires careful attention to legal aspects to ensure smooth operations and avoid potential issues.

Consult a professional to navigate legal requirements effectively, securing the best tax benefits and liability protection.

Professional Consultation:

• Engaging a legal or business consultant can provide valuable insights.
• They can assist in choosing the appropriate business structure, such as sole proprietorship, partnership, LLC, or corporation, considering tax implications and liability protection.

Common Types of Registrations for a Computer Shop:

• Business Name Registration: Registering your computer shop’s trade name ensures exclusive rights to its usage.
• Business Entity Registration: Depending on your chosen business structure, you may need to register as a sole proprietorship, partnership, LLC, or corporation with the appropriate state authorities.
• Tax Identification Number (TIN): Obtain an Employer Identification Number (EIN) or Federal Tax Identification Number (TIN) for tax purposes.
• Sales Tax Permit: If you plan to sell products, you’ll need a sales tax permit to collect and remit sales taxes.

Permits and Licenses for a Computer Shop:

• Local Business License: Obtain a local business license to operate legally within the city or county.
• Zoning Permits: Ensure your computer shop complies with local zoning regulations.
• Building Permits: If modifying or renovating your business premises, you may require building permits.
• Environmental Permits: Depending on your products, you might need environmental permits for proper waste disposal.
• Resale Permit: A resale permit may be required if you plan to resell computer components or products.

Adhering to legal requirements and obtaining the necessary permits and licenses ensures your computer shop operates legally and without interruptions.

Seeking professional guidance can save you time and effort while providing peace of mind.

Registration:

• How to Register Your Business
• How To Register a DBA
• How to Register a Trademark
• How to Get a Business License

Business Structures:

• How to Choose a Business Structure
• Pros & Cons of a Sole Proprietorship
• How To Form an LLC
• How To Register a Business Partnership
• How To Form a Corporation
• How To Choose a Business Registration Service

10. Create Your Corporate Identity

A Corporate Identity (Corporate ID) visually represents your computer shop business. It includes essential components like your logo, business cards, website, business sign, stationary, and promotional items.

Ensuring a consistent and professional design across all these elements is crucial to leave a lasting impression on new and existing customers.

A well-crafted Corporate ID reinforces your brand image and fosters a sense of trust and reliability among your target audience.

It also helps establish a strong and cohesive brand presence in the competitive computer shop industry.

You can see our page for an overview of your logo , business cards , website , and business sign , or see A Complete Introduction to Corporate Identity Packages.

11. Writing a Business Plan

The Importance of a Business Plan

A business plan is crucial, especially for computer shops looking to thrive in a competitive market.

This blueprint is pivotal when seeking funds or drawing the attention of potential investors’ attention and serves as a roadmap during both the formative phase and the routine operations of your shop.

Crafting Your Vision

Writing a business plan demands significant effort and contemplation. You’re crafting a tangible depiction of your envisioned computer shop through this exercise.

Delving into its intricacies requires patience, but the reward is a comprehensive understanding of your startup requirements and a lucid operational strategy.

Options for Creating Your Business Plan

Remember, when drafting your business plan for your computer shop, you’re not restricted to a single approach.

Whether you start from the ground up, seek professional assistance, adopt a template, or employ business plan software, it’s fundamental to immerse yourself actively in the formulation.

Even if you lean towards professional help, your active involvement ensures your business plan resonates with your computer shop’s unique ethos and operational nuances.

Dynamic Nature of Your Business Plan

As you navigate the complexities of the tech industry and gain deeper insights into your clientele’s preferences, it’s natural for your business strategies to evolve.

Thus, revisiting and refining your business plan regularly is recommended and essential.

Such periodic revisions ensure that your strategies align with the market dynamics and your computer shop’s growth trajectory.

A Fictitious Business Plan Example for a Computer Shop

Sample Business Plan: “Tech Haven Computer Shop”

Executive Summary

Business Name: Tech Haven Computer Shop

Location: 123 Silicon Avenue, Tech City, USA

Mission Statement: To provide comprehensive computing products and unmatched tech services, ensuring every customer feels informed and satisfied.

Business Objectives

• Establish a trusted brand within the local community by the end of Year 1.
• Offer a diverse range of the latest computing products and accessories.
• Introduce tech workshops by the end of Year 2, enhancing customer engagement.

Products and Services

• Desktop Computers (Branded & Custom Builds)
• Laptops & Notebooks
• Accessories (Keyboards, Mice, Headsets)
• Software & Antivirus Packages
• Computer Repairs and Maintenance
• Software Installations
• Consultations & Custom PC Builds

Market Analysis

Target Market:

• Students, professionals, and gaming enthusiasts within the Tech City area.
• Local businesses in need of computer systems and maintenance services.

Competitive Analysis: There are three other computer shops within a 5-mile radius. Tech Haven will differentiate by offering custom PC builds and tech workshops.

Marketing and Sales Strategy

• Launch Promotion: 10% off for the first month.
• Community Engagement: Hosting monthly tech workshops and seminars.
• Digital Presence: Establish a website and maintain active social media profiles on platforms like Facebook and Instagram. Collaborate with local tech influencers for promotions.

Operational Plan

• Store Hours: Mon-Sat, 10 AM – 7 PM.
• A team of 5, including two salespersons, two technicians, and a manager.
• Regular inventory checks and updates every Monday.

Management and Organization

Owner: Jane Doe Manager: John Smith Technicians: Alice Williams, Bob Brown Salespersons: Charlie Green, David Black

Financial Projections

• Revenue: $500,000
• Expenses: $350,000
• Profit: $150,000

Year 2 (with the introduction of workshops):

• Revenue: $650,000
• Expenses: $400,000
• Profit: $250,000

Tech Haven aims to become the go-to computer shop in Tech City, emphasizing community involvement, top-tier products, and unparalleled services.

As the business grows and the market landscape evolves, this plan will be revisited and adjusted accordingly.

Remember, while this is a fictitious example, it covers the essentials of a business plan for a computer shop.

Business plans should be more comprehensive, tailored to specific circumstances, and often require detailed research and professional guidance.

For information on creating your business plan, see, How to Write a Business Plan.

12. Banking Considerations

Choosing the Right Bank for Your Computer Shop

Consider choosing a nearby bank that caters to business owners.

Separate Business Account: Efficient Expense Management

A separate business account separates your business expenses from personal spending. As a result, it’s easier to track expenses and manage your bookkeeping and can provide proof in case of a tax audit.

Develop a Professional Relationship with Your Banker

Developing a professional relationship with your banker is also a good idea. They can assist you with advice and financial services and streamline applications.

Accepting Electronic Payments: Apply for a Merchant Account

You will also want to consider applying for a merchant account or a similar setup to accept credit and debit cards.

This allows your computer shop to offer convenient payment methods to customers, enhancing their shopping experience and increasing sales.

Accepting electronic payments aligns with modern business practices, making your computer shop more appealing to tech-savvy customers.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

13. Getting the Funds for Your Operation

Obtaining Funding for Your Computer Shop

If you require financial assistance to launch your computer shop, the following tips can be useful, particularly if you’re considering applying for a loan.

Exploring Funding Options

Securing funds to start and operate your computer shop is essential. Fortunately, various funding options are available, including traditional lenders, private loans, investors, and leveraging assets or collateral.

Meeting with a Loan Officer: Key Considerations

When meeting with a loan officer to discuss your funding needs, there are some important considerations to keep in mind:

• Research and Preparation: Thoroughly research potential lenders and their loan offerings before the meeting. Prepare a well-structured business plan outlining your computer shop’s vision, mission, and financial projections.
• Financial Projections: Be prepared to present realistic financial projections for your computer shop, including revenue forecasts, cash flow estimates, and projected expenses.
• Credit History and Score: Your credit history and score significantly influence loan approval. Ensure your credit report is accurate and in good standing.
• Collateral and Assets: Gather the necessary documentation to substantiate their value and ownership if you plan to use collateral or assets to secure the loan.

Sample List of Documents for a Business Loan Application (NEW Computer Shop):

• Business Plan
• Business License and Registration
• Financial Statements (Income Statement, Balance Sheet, Cash Flow Statement)
• Bank Statements (Personal and Business)
• Tax Returns (Personal and Business)
• Identification (Driver’s License, Passport, etc.)
• Collateral Documentation (if applicable)
• Credit Report and Score
• Legal Agreements (Partnership Agreements, Lease Agreements, etc.)

Being well-prepared and organized can increase your chances of obtaining funding for your new computer shop and pave the way for a successful business venture.

See, Getting a Small Business Loan for more.

14. Software Setup

Software Considerations for Your Computer Shop

Selecting the right software is crucial for efficient operations and seamless data management when setting up your computer shop. Here are some essential factors to consider:

• Implementation Ease: Research software options thoroughly before making a decision. Implementing a program from scratch is easier than switching to a new system after your data is already in another program.
• Demo and Reviews: Look for software providers that offer demos. This allows you to explore the features and functionalities firsthand. Additionally, read reviews and participate in forums to learn from other’s experiences with the software.
• Accounting Software: Research software solutions for tracking expenses and preparing financial documents for tax filing. Consulting with your bookkeeper or accountant can help you choose the most suitable accounting software for your computer shop.

List of Software to Consider for Your Computer Shop:

• Point of Sale (POS) Software: Enables efficient sales transactions, inventory management, and customer tracking.
• Inventory Management Software: Helps track stock levels, monitor product movements, and streamline inventory control.
• Customer Relationship Management (CRM) Software: Aids in managing customer interactions, enhancing customer satisfaction, and driving sales.
• Accounting Software: Simplifies financial management, bookkeeping, and tax preparation tasks.
• E-commerce Platform: If you plan to sell online, consider an e-commerce platform to manage your online store.
• Data Backup and Recovery Software: Essential for safeguarding your computer shop’s critical data from potential losses or hardware failures.

Choosing the right software can significantly impact your computer shop’s efficiency and overall success, so take the time to explore options that best suit your specific needs.

Check out Google’s latest search results for software packages for a computer shop.

15. Get The Right Business Insurance

Insurance Considerations for Your Computer Shop

Incidents can happen anytime, so you must have the right insurance before any activity occurs at your computer shop.

Comprehensive Coverage:

Consider insurance policies that offer comprehensive coverage to protect various aspects of your computer shop, including customers, employees, premises, property, and any potential liabilities.

Professional Liability Insurance:

As a computer shop owner, consider obtaining professional liability insurance to safeguard your business against potential lawsuits or claims arising from errors or omissions in your services.

Expert Guidance:

Utilize the services of a competent insurance broker who specializes in the computer shop industry. They can guide you through the insurance selection process and ensure sufficient coverage tailored to your business needs.

Property and Asset Protection:

Ensure your insurance policy adequately covers your computer shop’s physical assets, such as computers, peripherals, inventory, and other valuable equipment, in case of theft, damage, or disasters.

General Liability Insurance:

Consider obtaining general liability insurance to protect your computer shop from third-party claims related to bodily injury, property damage, or advertising mistakes.

Business Interruption Coverage:

Explore business interruption coverage, which provides financial protection in case your computer shop faces unexpected disruptions that result in lost income or temporary closure.

Cyber Liability Insurance:

Given the nature of your business, consider cyber liability insurance to protect against data breaches, cyberattacks, and associated legal expenses.

Workers’ Compensation Insurance:

If you have employees, ensure you have workers’ compensation insurance to cover medical expenses and lost wages in the event of work-related injuries or illnesses.

Review and Update:

Regularly review and update your insurance policies as your computer shop grows and evolves, ensuring your coverage remains adequate and up-to-date.

Proper insurance coverage protects your computer shop from unforeseen risks and potential financial losses. Take the time to carefully assess your insurance needs and select policies that provide comprehensive protection for your business.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for computer shop insurance .

16. Select Suppliers

Selecting Reliable Suppliers for Your Computer Shop

Establishing a strong relationship with reputable suppliers is crucial for the success of your computer shop. Having reliable and trustworthy suppliers is key to ensuring smooth operations and profitability.

Competitive Pricing and Profit Margins:

A reliable supplier can offer competitive prices for computer components and equipment, allowing you to pass on cost savings to your customers and increase your profit margin.

Sufficient Stock Availability:

Maintaining a good relationship with your suppliers ensures that you always have a steady and sufficient stock of computer products, preventing disruptions in fulfilling customer demands.

Mutually Beneficial Approach:

Treating your suppliers respectfully and ensuring they benefit financially from the partnership is essential. This approach improves your working relationship, fostering a long-lasting and fruitful collaboration.

Building strong partnerships with suppliers in the computer shop industry enables you to provide top-quality products to your customers and run your business efficiently, ensuring customer satisfaction and long-term success.

For More See, How To Choose a Supplier.

17. Physical Setup

A computer shop’s physical setup/layout is crucial for creating a welcoming and functional environment. Organize the space efficiently to showcase products and facilitate easy navigation for customers. Arrange display areas logically and ensure ample space for product demonstrations and customer inquiries. A well-planned layout enhances the shopping experience and encourages customers to explore your computer shop further.

2. Signage:

Signage is essential to guide customers and showcase your computer shop’s professionalism. Along with the main business sign, strategically place signs in relevant locations like parking lots, exits, and special areas. Well-designed signs direct people and promote a positive image of your operation. Clear and informative signage aids in customer orientation and adds to the overall appeal of your computer shop.

3. Office Setup:

A well-organized office is vital as managing your computer shop will require considerable time spent in this space. Ensure your office is fully equipped with all the necessary tools and resources for effective business management. Furnish it with essential office equipment, storage solutions, and technology to support your administrative tasks. A tidy and functional office setup boosts productivity and enables smooth operations in your computer shop.

See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

18. Creating a Website

Benefits of Having a Website for Your Computer Shop

Having a website for your computer shop offers numerous advantages. It serves as an online storefront, allowing customers to explore your products and services from the comfort of their homes.

Marketing Tool: Establishing Expertise

You can also use your website as a marketing tool.

You establish yourself as an expert by regularly blogging about your industry and sharing valuable tips and insights tailored to your customers.

This builds customer trust and can increase sales and a stronger presence in the competitive computer shop industry.

For more, see How to Build a Website for Your Business .

19. Create an External Support Team

Building a Support Team for Your Computer Shop

An external support team of professionals is a group of experts you can rely on for valuable advice and services. It’s essential to note that these individuals are not on your payroll, allowing you to access their expertise as needed.

Diverse Expertise:

Ideally, you can utilize their services per project, contractual, or hourly.

While you may already collaborate with certain individuals, considering them as part of your team helps you appreciate their significance and allows adding more members.

Continuous Development:

You don’t need to have all these professionals in place before starting your computer shop.

Building strong professional relationships takes time but is an ongoing effort that brings long-term benefits.

Your Support Team May Include:

Your support team may consist of professionals such as an accountant, a lawyer, a financial advisor, a marketing specialist, technical advisors, and consultants.

With a robust support team, you have a network of dependable experts ready to assist whenever you need their specialized services and guidance.

For more, see, Building a Team of Professional Advisors for Your Business.

20. Hiring Employees

Building Your Team for the Computer Shop

In the early stages of operating your computer shop, you might handle most tasks yourself to avoid the initial expense of hiring employees.

This approach is practical when manageable, as payroll can be a significant expense, especially during the startup phase.

However, managing and operating everything alone may become overwhelming as your computer shop grows.

Hiring employees can significantly improve productivity , especially when you find the right people to join your team.

List of Jobs Needed to Run a Computer Shop:

The following are job positions or outsourced services you may want to consider as your computer shop grows and becomes successful:

• Sales Associates
• Computer Technicians
• Customer Support Representatives
• Inventory Managers
• Marketing Specialists
• Website Developers
• Administrative Assistants
• Accounts and Finance Managers
• IT Support Staff
• E-commerce Managers
• Social Media Managers

As your computer shop expands, assembling a competent and dedicated team ensures efficient operations and enhanced customer satisfaction.

Outsourcing certain services can also be beneficial to access specialized expertise while controlling operational costs.

For more, see, How and When to Hire a New Employee.

Points To Consider

Hours of operation:.

Hours of Operation to Consider for a Computer Shop:

• Opening Time: 9:00 AM
• Closing Time: 6:00 PM
• Opening Time: 10:00 AM
• Closing Time: 4:00 PM
• Closed (Considered as a rest day)

Note: Depending on your target market and customer preferences, you may adjust the hours of operation accordingly.

Additionally, consider any seasonal variations or special events that may impact your computer shop’s schedule.

A List of Equipment and Supplies to Consider for a Computer Shop:

• Computers: To showcase and demonstrate various models and configurations to customers.
• Computer Accessories: Keyboards, mice, monitors, speakers, webcams, etc.
• Printers and Scanners: For document printing, scanning, and copying services.
• Networking Equipment: Routers, switches, and cables for creating a network and offering internet connectivity.
• POS System: Point of Sale system for processing transactions and managing sales.
• Cash Register: For handling cash transactions.
• Barcode Scanners: To streamline inventory management and sales processes.
• Security Cameras: For surveillance and protection against theft and unauthorized access.
• Furniture: Display shelves, counters, chairs, and tables for customer and staff use.
• Workstations: Desks, chairs, and computers for employees.
• Storage Cabinets and Shelving: For organizing and storing inventory and equipment.
• Display Stands: To showcase laptops, tablets, and other products.
• UPS (Uninterruptible Power Supply): Provides backup power in case of power outages.
• Software Licenses: Operating systems, office productivity software, antivirus programs, etc.
• Repair Tools and Equipment: Screwdrivers, soldering tools, anti-static mats, etc.
• Workshop Area: A designated space for computer repairs and maintenance.
• Packaging Materials: Boxes, bubble wrap, and packing tape for shipping products.
• Signage and Branding Materials: Business signs, banners, and promotional materials.
• Security System: Alarm system and access control for enhanced security.
• Cleaning Supplies: To maintain a clean and presentable store environment.

Remember that the specific equipment needs may vary based on the scale and scope of your computer shop business.

Tailor the list according to your business requirements and growth plans.

Marketing Considerations

A computer shop without customers is not a real business. To succeed, you must attract customers, especially when your operation is new, and people are unaware of it.

Building a good reputation over time will make it easier to attract customers, and you’ll gain more marketing experience.

Marketing your computer shop is an ongoing process. Investing in effective marketing techniques leads to increased revenue.

While you don’t always need a marketing agency or expert, you can handle marketing yourself.

Think of it as bringing awareness to your business whenever opportunities arise.

See our article How To Get Customers Through the Door

Potential Partnerships for Your Computer Shop

Local Office Supply Stores

When individuals or businesses often buy office supplies, they might also be in the market for new tech equipment or services.

By partnering with office supply stores, they can recommend your computer shop to customers, and you can reciprocate by directing clients their way or offering tech support deals.

Independent Software Developers

Local software developers often have clients needing hardware to run their newly developed programs. A mutual referral system can benefit both parties.

Educational Institutions

Schools and colleges regularly require tech supplies and services. By forming a partnership, these institutions could refer students or staff to your shop for their personal tech needs.

Small Business Centers and Co-working Spaces

Entrepreneurs and startups often require tech support and equipment. Collaborating with these centers can provide a steady clientele looking for quality computer products and services.

Print and Copy Shops

People visiting these places often have tech needs. A partnership might involve them recommending your shop for computer-related queries, and in return, you could offer their customers discounts on printing or other services.

Graphic Design Studios

Designers need high-performance computers and might require specialized hardware.

These studios could refer clients to your shop, and you could offer them deals on tech support or other services.

Rewarding Referrals

In appreciation for referrals, you can provide partners with a referral fee or special discounts that benefit their business and clients.

Forming alliances with local businesses can drive traffic to your computer shop and help you establish a foothold in the community. It’s a win-win for everyone involved!

Marketing Offers

Irresistible Offers for Your Computer Shop

For New Customers:

• Introductory Discounts: Offer first-time customers a discount on their initial purchase. This could be a 10% off on their first computer or accessory purchase.
• Free Tech Consultation: Offer a complimentary 30-minute tech consultation to assess their computer needs. It helps in building trust and offers a personalized experience.
• Bundle Deals: Pair popular products together at a discounted price, such as a laptop with a complementary mouse or keyboard.
• Referral Program: Encourage new customers to bring a friend, and both get a discount on their purchase.
• Tech Workshop Invite: Host beginner tech workshops on topics like ‘Getting Started with Your New PC’ and invite potential customers for free.

For Existing Customers:

• Loyalty Program: Introduce a point system where purchases accrue points that can be redeemed for products or services.
• Exclusive Sales: Offer special sales events or early access to new product launches reserved for returning customers.
• Upgrade Discounts: Provide special discounts for existing customers looking to upgrade their old computers or accessories.
• Free Maintenance Check: Once a year, offer a free computer check-up or cleaning to keep their devices in optimal shape.
• Customer Feedback Reward: Encourage feedback on products or services and offer a discount on their next purchase for their input.

Sample Ads for a Computer Shop:

• “Revamp Your Tech Life!” Discover the latest in computers and accessories. Drop by today and experience the future.
• “Unbeatable Computer Deals Await!” Dive into our limited-time offers. Upgrade your tech without breaking the bank.
• “Tech Troubles?” Get a free 30-minute consultation with our experts. Find your perfect computer match today!
• “Exclusive Loyalty Discounts!” To our esteemed customers, enjoy special offers tailored just for you. Swing by and see what’s new.
• “Stay Ahead of the Curve!” Dive into our newest collection of cutting-edge computers and accessories. Elevate your tech game today!

Crafting compelling offers and attention-grabbing ads is crucial to stand out in the competitive landscape of computer retail.

You can attract and retain a loyal customer base with the right approach.

Simple Marketing Ideas 

Spread the Word about Your Computer Shop

• Tech Blogging: Start a blog connected to your shop’s website, where you discuss tech trends, computer maintenance tips, and the latest software updates. It establishes you as an authority in the field and drives organic traffic.
• Local Radio Ads: Use local radio stations to advertise special promotions, new product arrivals, or tech services you provide.
• Community Bulletin Boards: Pin flyers or posters highlighting sales, promotions, or tech workshops at community centers, libraries, and local grocery stores.
• Host a Tech Day: Organize an event at your store where locals can come in for free diagnostics, tech advice, or to test out new products.
• Customer Testimonials: Encourage satisfied customers to share their positive experiences on platforms like Google Reviews, Yelp, and even on your own website.
• Engage on Social Media: Regular posts, interactive polls, and tech quizzes can engage the community and make them aware of your offerings.
• Local Newspaper Ads: A well-placed ad or an informative article about computer care can capture the attention of local readers.
• Partnerships with Schools: Offer special student discounts or collaborate with schools to provide tech support or equipment.
• Window Displays: Regularly update the storefront with attractive displays showcasing the latest products or services.
• Attend Local Fairs or Markets: Set up a stall or booth at local events to showcase your products, hand out flyers, and engage with potential customers face-to-face.

Promoting your computer shop requires a mix of traditional advertising methods and innovative, community-focused strategies.

The key is to be consistent and engage with the community in a way that resonates with their tech needs.

See our marketing section for articles that will provide ideas to bring awareness to your business.

Evaluating Your Skill Set for Running a Computer Shop

It’s crucial to focus on your skill set and assess whether you possess the right abilities to run a computer shop successfully.

Remember, if you lack any essential skill, you can learn it or hire someone with the required expertise.

List of Essential Skills for a Computer Shop Owner:

• Technical Knowledge: Understanding computer hardware, software, and troubleshooting.
• Customer Service: Providing exceptional service and addressing customer inquiries.
• Sales and Marketing: Promoting products and attracting customers to drive sales.
• Inventory Management: Efficiently managing stock levels and product availability.
• Financial Management: Handling finances, budgeting, and profit analysis.
• Business Development: Strategizing and expanding the computer shop’s offerings and market reach.
• Problem-Solving: Resolving issues and finding solutions for various challenges.
• Leadership: Effectively managing and motivating a team of employees.
• Communication: Clear communication with customers, employees, and suppliers.
• Time Management: Prioritizing tasks and ensuring smooth operations.

Having these essential skills equips a computer shop owner to effectively navigate the complexities of the business and achieve long-term success.

Expert Tips

Gaining insights from expert tips can enhance your skill set, regardless of your expertise level.

Experts may discover more efficient methods or alternative perspectives, while novices can acquire numerous valuable tips to boost their skills and knowledge.

See the latest search results for expert computer shop tips to gain tips and insights.

In this section, you will find valuable resources curated to provide the latest and most popular information in the computer shop industry.

These resources are beneficial during startup and when your computer shop is fully operational.

Use them to gain insights into the industry and access tips for enhancing your business operations.

Trends and Statistics

Examining industry trends and statistics for a computer shop offers valuable insights and advantages.

It enables businesses to identify emerging market patterns, consumer preferences, and competitors’ performance, facilitating informed decision-making and strategic planning for sustainable growth.

See the latest search results for trends and statistics related to the computer shop industry.

Computer Shop Associations

Trade associations provide several advantages, such as staying updated on industry news and accessing valuable networking opportunities.

These benefits become particularly apparent during events organized by the associations, fostering knowledge exchange and business connections.

See the search results related to computer shop associations.

Top Computer Shop

Analyzing established computer shops can spark ideas to identify gaps in the industry where you can introduce unique offerings or discover overlooked aspects of your business.

Learning from others’ experiences can inspire improvements and innovation.

See the latest search results for the top computer shops.

The Future of the Computer Shop Industry

Researching the industry’s future offers prospective computer shop owners valuable insights and advantages.

It helps understand upcoming trends, potential growth areas, and emerging technologies, aiding in making informed decisions and strategic plans for a successful and sustainable business.

See the search results for the future of the computer shop industry.

Computer Shops for Sale

Considering an existing computer shop for purchase has its advantages and drawbacks.

Benefits of Buying an Established Computer Shop:

• Immediate Revenue Generation
• Avoidance of Startup Phase
• Proven Business Model
• Known Revenue, Profit, and Expenses
• Existing Customer Base
• Established Reputation

Disadvantages of Buying an Established Computer Shop:

• Higher Cost due to Goodwill (customer base purchase)
• Potential Customer Loss if Business Operations Change
• Inheriting Both Positive and Negative Reputation

Even if an exact match is unavailable, exploring existing computer shops for sale in the same industry can be insightful. Use the following link to explore available options.

Businesses for sale: See the latest results for a computer shop and others related to this business model.

Franchise Opportunities Related to a Computer Shop

Exploring the option of buying a computer shop franchise offers both advantages and disadvantages worth considering before starting a business. Understanding these opportunities may unveil aspects related to computer shops that were previously overlooked.

Pros of Buying a Computer Shop Franchise:

• Proven Business Model: Follow a pre-established plan provided by the corporate office.
• Established Reputation and Marketing: Benefit from the franchise’s brand recognition and marketing efforts.
• Comprehensive Knowledge: Gain insights into all aspects of the business before committing.
• Corporate Support: Receive support and guidance from the corporate office.

Cons of Buying a Computer Shop Franchise:

• Higher Initial Investment: Franchise ownership can be expensive.
• Limited Autonomy: Major changes require corporate approval.
• Product/Service Restrictions: Only approved products/services can be offered.
• Adherence to Agreement: Operate strictly within the terms of the franchise agreement.
• Ongoing Franchise Fees: Continual payment of franchise fees.

Even if an exact computer shop franchise match is unavailable, exploring franchises in the same industry can be beneficial.

Use the following link to explore available opportunities.

See the latest search results for franchise opportunities related to this industry.

Knowledge Is Power if You Use It!

Knowledge is a powerful tool in the computer shop industry when applied effectively!

Online resources offer a wealth of information about the computer shop business.

Explore the provided links in the following sections for valuable insights that can aid you in research, startup phases, and the full operational capacity of your computer shop.

Empower yourself with the knowledge to drive success in your venture.

Computer Shop Managers Interviews

Interviews with experienced business owners in the computer shop industry provide valuable information and insights.

Taking time to delve into this section offers a diverse perspective and valuable insights, preparing you for what to expect in the industry.

See the search results related to interviews of computer shop owners.

Computer Shop Insights

Exploring tips and insights in the computer shop industry can spark innovative ideas, highlight potential pitfalls to avoid, and enhance your knowledge in the field.

It is a valuable resource for improving business strategies and gaining a competitive edge.

See the latest search results leading to resources about  Computer Shop Insights.

Computer Retail and Service Industry Publications

Publications are an excellent means to stay updated with the latest information about a computer shop.

These valuable resources offer insights, trends, and industry news, aiding business owners in making informed decisions and staying competitive in the market.

See the search results for Computer Retail and Service Industry publications.

Computer Retail and Service Industry Forums

Computer shop forums offer an opportunity to participate in hot-topic discussions and build industry relationships.

Understanding customer perspectives through these forums provides invaluable insights to enhance your business strategies and interactions.

See the latest search results related to Computer Retail and Service Industry forums.

Courses provide an excellent opportunity to learn, enhance your skillset, and stay updated with the latest developments in the computer shop industry.

Engaging in courses ensures continuous professional growth and competence.

See the latest courses related to IT Hardware and Software  and our management articles to provide insights and tips on managing Your business.

Computer Shop Blogs

Subscribing to computer shop blogs provides valuable ideas and informs you about industry trends.

Subscribing to various blogs and filtering out irrelevant ones, you build a collection of informative resources that constantly flow valuable information to enhance your knowledge and business strategies.

Look at the latest search results for computer shop blogs to follow.

Computer Retail and Service Industry News

Staying updated with the Computer Retail and Service Industry is easily achieved through news outlets.

Set up alerts to receive timely notifications whenever the media cover new developments.

Videos about the computer shop industry provide valuable tips and insights.

Exploring related videos suggested by YouTube often unveils previously overlooked topics, enhancing your knowledge and understanding of the industry.

See the links to YouTube Videos Below.

• Videos related to starting a computer shop can be found here.

Privacy Overview

How to open a computer repair shop?

Are you keen to open a computer repair shop but don't know where to begin? Then you're in luck because this guide will lead you through all the steps required to check if your business idea can be profitable and, if so, turn it into a reality. 

Our guide is for prospective entrepreneurs who are thinking about starting a computer repair shop no matter how far they are in their journey - whether you’re just thinking about it or in the middle of market research this guide will be useful to you.

Think of this as your blueprint: we cover everything you need to know about opening a computer repair shop and what key decisions you’ll need to make along the way.

Ready? Let’s get started!

In this guide:

• Understanding how a computer repair shop works
• Assembling your computer repair shop's founding team
• Conducting market research for a computer repair shop

Choosing the right concept and positioning for your computer repair shop

• Deciding where to base your computer repair shop

Choosing your computer repair shop's legal form

• Calculating the budget to open a computer repair shop
• Creating a sales & marketing plan for your computer repair shop
• Building your computer repair shop's financial forecast
• Finding a name and registering your computer repair shop
• Deciding upon the corporate identity of your computer repair shop

Understanding the legal and regulatory steps involved in opening a computer repair shop

Writing a business plan for your computer repair shop, financing the launch of your computer repair shop, launching your computer repair shop and monitoring progress against your forecast, key takeaways, learn how a computer repair shop works.

Before you can start a computer repair shop, you need to have a solid understanding of how the business works and what are its main revenue streams.

This will give you a glimpse into the profitability potential of your venture, whilst allowing you to decide whether or not it is a good fit for your situation (current skill set, savings and capital available to start the business, and family responsibilities).

It may be that creating a computer repair shop is an excellent idea, but just not the right one for you.

Before starting their own company, successful entrepreneurs typically:

• Consult with and take advice from experienced computer repair shop owners 
• Acquire hands-on experience by working in an operational computer repair shop

Take relevant training courses

Let's explore each option in a bit more detail.

Consulting with and taking advice from experienced computer repair shop owners

Having "seen it all", established business owners can offer valuable insights and hands-on advice drawn from their own experiences.

This is because, through both successes and failures, they've gained a more informed and practical understanding of what it takes to build and sustain a successful computer repair shop over the long term.

Acquiring hands-on experience by working in an operational computer repair shop

If you want to open a computer repair shop, having industry-specific experience is imperative because it equips you with the knowledge, network, and acumen necessary to navigate challenges and make informed decisions critical to the success of your future business.

You'll also be able to judge whether or not this business idea is suitable for you or if there might be conflicts of interest with your personal life (for example, long working hours could be incompatible with raising young children).

This work experience will also help you to make contacts in the industry and familiarise yourself with customers and their expectations, which will prove invaluable when you set up your computer repair shop.

Taking a training course is another way of familiarising yourself with the business model of your future activity before you decide to make the jump.

You may choose to complete a training course to obtain a certificate or degree, or just take online courses to acquire practical skills.

Before going any further in setting up your venture

Before you go any further with your plans to open a computer repair shop, make sure you have a clear vision of what it will take in terms of:

• What skills are needed to run the business successfully (do you have some or all of these skills?)
• What a standard working week looks like (does it suit your personal commitments?)
• What sales potential and long-term growth prospects the computer repair shop has (compare this with your level of ambition)
• What options you'll have once you decide to retire (or move on and inevitably sell the company)

This analysis of the business model and the constraints of the business should help you to check that your idea of launching a computer repair shop fits your entrepreneurial profile.

If there is a match, it will then be time to look at assembling the founding team of your business.

Create your business plan online!

Think your business idea could be profitable? Find out how with a business plan

What is the ideal founding team for my computer repair shop?

The next step to opening your computer repair shop, is to decide whether to assemble an ideal team or venture solo.

The failure rate for business start-ups is high: almost half don't make it past the five-year mark, and setting up a computer repair shop is no exception.

Starting with a group of co-founders helps reduce this risk as each of you brings complementary skills and enables the financial risk to be spread on multiple shoulders.

However, managing a business with multiple partners comes with its own set of challenges. Disagreements among co-founders are quite prevalent, and they can pose risks to the business. That's why it's essential to carefully weigh all aspects before launching a business.

To help you think things through, we recommend that you ask yourself the following questions:

Do you need more co-founders for this venture?

Do you share the same vision and ambition as your potential partners for this project, what is your plan b.

Let's look at these issues in more detail.

To answer this question you will need to consider the following:

• Are there any key skills missing for which you would rather have a business partner than recruit an employee?
• Do we have enough equity? Would the company benefit from more capital at the outset?
• Will the proposed number of founders make it easy to make decisions (an odd number of partners, or a majority partner, is generally recommended to avoid deadlock)?

In simple terms, co-founders bring skills, money, or both to the table. Having more partners is beneficial when there's a lack of either of these resources.

One of the main sources of conflict between co-founders comes from a lack of alignment on the long-term vision.

To avoid any risk of disagreement, it is advisable to agree on ambitions from the outset and to provide an exit mechanism for one of the partners in the event of disagreement.

We hope your computer repair shop takes off and thrives, but it's smart to have a "plan B" just in case things don't go as expected.

How you tackle potential failure can vary broadly depending on the type of co-founders (close friend, spouse, ex-colleague, etc.) and the personal circumstances of each of them. 

For example, launching a family business with your spouse might seem exciting, but if it fails, you risk losing all of your household income at once, which might be stressful.

Likewise, starting a business with a friend might strain the friendship if things go wrong or if tough decisions need to be made.

Before diving in, make sure to thoroughly think about your choices. This way, you'll be ready for whatever might come your way when starting up.

Is there room for another computer repair shop on the market?

The next step in starting a computer repair shop is to undertake market research. Now, let's delve into what this entails.

The objectives of market research

The goal here is straightforward: evaluate the demand for your business and determine if there's an opportunity to be seized.

One of the key points of your market analysis will be to ensure that the market is not saturated by competing offers.

The market research to open your computer repair shop will also help you to define a concept and market positioning likely to appeal to your target clientele.

Finally, your analysis will provide you with the data you need to assess the revenue potential of your future business.

Let's take a look at how to carry out your market research.

Evaluating key trends in the sector

Market research for a computer repair shop usually begins with an analysis of the sector in order to develop a solid understanding of the its key players, and recent trends.

Assessing the demand

After the sector analysis comes the demand analysis. Demand for a computer repair shop refers to customers likely to consume the products and services offered by your company or its competitors.

Looking at the demand will enable you to gain insights into the desires and needs expressed by your future customers and their observed purchasing habits.

To be relevant, your demand analysis must be targeted to the geographic area(s) served by your company.

Your demand analysis should highlight the following points:

• Who buys the type of products and services you sell?
• How many potential customers are there in the geographical area(s) targeted by your company?
• What are their needs and expectations?
• What are their purchasing habits?
• How much do they spend on average?
• What are the main customer segments and their characteristics?
• How to communicate and promote the company's offer to reach each segment?

Analyzing demand helps pinpoint customer segments your computer repair shop could target and determines the products or services that will meet their expectations.

Assessing the supply

Once you have a clear vision of who your potential customers are and what they want, the next step is to look at your competitors.

Amongst other things, you’ll need to ask yourself:

• What brands are competing directly/indirectly against your computer repair shop?
• How many competitors are there in the market?
• Where are they located in relation to your company's location?
• What will be the balance of power between you: are your competitors independent players or franchises?
• What types of services and products do they offer? At what price?
• Are they targeting the same customers as you?
• How do they promote themselves? 
• Which concepts seem to appeal most to customers?
• Which competitors seem to be doing best?

The aim of your competitive analysis will be to identify who is likely to overshadow you, and to find a way to differentiate yourself (more on this see below).

Regulations

Market research is also an opportunity to look at the regulations and conditions required to do business.

Ask yourself the following questions:

• Do you need a special degree to open a computer repair shop?
• Are there necessary licences or permits?
• What are the main laws applicable to your future business?

At this stage, your analysis of the regulations should be carried out at a high level, to familiarize yourself with any rules and procedures, and above all to ensure that you meet the necessary conditions for carrying out the activity before going any further.

You will have the opportunity to come back to the regulation afterwards with your lawyer when your project is at a more advanced stage.

Take stock of the lessons learned from your market analysis

Market research should give you a definitive idea of your business idea's chances of commercial success.

Ideally, the conclusion is that there is a market opportunity because one or more customer segments are currently underserved by the competition.

On the other hand, the conclusion may be that the market is already taken. In this case, don't panic: the first piece of good news is that you're not going to spend several years working hard on a project that has no chance of succeeding. The second is that there's no shortage of ideas out there: at The Business Plan Shop, we've identified over 1,300 business start-up ideas, so you're bound to find something that will work.

Don't start from scratch!

With dozens of business plan templates available, get a clear idea of what a complete business plan looks like

Once your market research is completed, it's time to consider the type of computer repair shop you want to open and define precisely your company's market positioning in order to capitalise on the opportunity you identified during your market research.

Market positioning refers to the place your product and service offering occupies in customers' minds and how they differ from competing products and services. Being perceived as the premium solution, for example.

There are four questions you need to consider: 

How will you compete with and differentiate yourself from competitors already on the market?

• Can you join a franchise to reduce the risk?

Is it better to start or buy a computer repair shop already in operation?

How will you validate your concept and market positioning.

Let's look at each of these in a little more detail.

When you choose to start up a computer repair shop, you are at a disadvantage compared to your rivals who have an established presence on the market. 

Your competitors have a reputation, a loyal customer base and a solid team already in place, whereas you're starting from scratch...

Entering the market and taking market share from your competitors won't happen automatically, so it's important to carefully consider how you plan to establish your presence.

There are four questions to consider here: 

• Can you avoid direct competition by targeting a customer segment that is currently poorly served by other players in the market?
• Can you offer something unique or complementary to what is already available on the market?
• How will you build a sustainable competitive advantage for your computer repair shop? 
• Do you have the resources to compete with well-established competitors on your own, or would it be wiser to explore alternative options (more on that below)?

Also, think about how your competitors will react to your arrival on their market.

Are there franchises available for you to join?

Opening a new computer repair shop from the "ground up" is exciting because you'll enjoy more freedom and flexibility. However, you'll need to put in extra effort to establish a trustworthy brand and attract customers.

On the other hand, joining a franchise might limit your personal flexibility, but you'll be operating under an established brand name. This is likely to bring significant benefits in terms of operational processes, supplier relationships, recruitment, and more.

Of course, joining a franchise is not free: you will have to pay an entry fee and an annual royalty (generally as a percentage of sales).

And franchising opportunities vary from country to country and region to region, so there's no guarantee that you will be able to find a franchise to join.

Nevertheless, where possible, joining a franchise is generally a good way of reducing the risk associated with setting up a computer repair shop, and is well worth considering.

Another alternative to opening a new business is to take over a computer repair shop already trading. 

Purchasing an existing computer repair shop means you get a loyal customer base and an efficient team. It also avoids disrupting the equilibrium in the market by introducing a new player.

A takeover hugely reduces the risk of the business failing compared to starting a new business, whilst giving you the freedom to change the market positioning of the business taken over if you wish.

This makes buying an existing computer repair shop a solid alternative to opening your own or operating under a franchise.

However, here again, buying a business requires more capital compared to starting a computer repair shop from scratch, as you will need to purchase the business from its current owner.

Regardless of how you choose to establish your business, it's crucial to make sure that the way you position your company aligns with the expectations of your target market.

To achieve this, you'll have to meet with your potential customers to showcase your products or services and get their feedback.

Where should I base my computer repair shop?

The next step in our guide on starting a computer repair shop involves making a key choice about where you want your business to be located.

Picking the ideal location for your business is like selecting the perfect canvas for a painting. Without it, your business might not showcase its true colors.

We recommend that you take the following factors into account when making your decision:

• Visibility and foot traffic: This is important for a computer repair shop as it will attract potential customers who may be passing by and in need of their services.
• Parking space, road and public transport accessibility: This is important for customers who may need to bring in their computers for repair and need convenient access to the shop.
• Proximity to target customers: A computer repair shop should be located in an area where there is a high concentration of potential customers, such as near office buildings, universities, or residential areas.
• Competitor presence: It is important to take into consideration the competition in the area and ensure that the shop is in a location with a reasonable level of competition.

This list is not comprehensive and will have to be adjusted based on the details of your project. 

The parameters to be taken into account will also depend on whether you opt to rent premises or buy them. If you are a tenant, you will need to consider the conditions attached to the lease: duration, rent increase, renewal conditions, etc.

Lease agreements differ widely from country to country, so it's essential to review the terms that apply to your situation. Before putting pen to paper, consider having your lawyer look carefully at the lease.

The next step to open a computer repair shop is to choose the legal form of your business.

The legal form of a business simply means the legal structure it operates under. This structure outlines how the business is set up and defines its legal obligations and responsibilities.

Why is your computer repair shop's legal form important?

Choosing the legal form for your computer repair shop is an important decision because this will affect your tax obligations, your personal exposure to risk, how decisions are made within the business, the sources of financing available to you, and the amount of paperwork and legal formalities, amongst other things.

The way you set up your business legally will impact your taxes and social contributions, both at a personal level (how much your income is taxed) and at the business level (how much the business's profits are taxed).

Your personal exposure to risk as a business owner also varies based on the legal form of your business. Certain legal forms have a legal personality (also called corporate personality), which means that the business obtains a legal entity which is separate from the owners and the people running it. To put it simply, if something goes wrong with a customer or competitor, for example, with a corporate personality the business gets sued, whereas without it is the entrepreneur personally.

Similarly, some legal forms benefit from limited liability. With a limited liability the maximum you can lose if the business fails is what you invested. Your personal assets are not at risk. However, not all structures protect you in such a way, some structures may expose your personal assets (for example, your creditors might try to go after your house if the business incurs debts and then goes under without being able to repay what it owed).

How decisions are made within the business is also influenced by the legal form of your computer repair shop, and so is the amount of paperwork and legal formalities: do you need to hold general assemblies, to produce annual accounts, to get the accounts audited, etc.

The legal form also influences what sources of financing are available to you. Raising capital from investors requires having a company set up, and they will expect limited liability and corporate personality.

What are the most common legal structures?

It's important to note that the actual names of legal structures for businesses vary from country to country . 

But they usually fall within two main types of structures:

Individual businesses

Individual businesses, such as sole traders or sole proprietorships, are legal structures with basic administrative requirements.

They primarily serve self-employed individuals and freelancers rather than businesses with employees.

The main downside of being a sole trader is that there's usually no legal separation between the business and the person running it. Everything the person owns personally is tied up with the business, which can be risky.

This means that if there are problems or the business goes bankrupt, the entrepreneur's personal assets could be taken by creditors. So, there's a risk of personal liability in case of disputes or financial issues.

It is also not possible to raise equity from investors with these structures as there is no share capital.

Despite the downsides, being a sole proprietorship has some advantages. There is usually very little paperwork to get started, simpler tax calculations and accounting formalities.

Companies are all rounders which can be set up by one or more individuals, working on their own or with many employees.

They are recognized as a distinct entity with their own legal personality, and the liability is usually limited to the amount invested by the owners (co-founders and investors). This means that you cannot lose more than you have invested in the business.

This separation ensures that in legal disputes or bankruptcy, the company bears primary responsibility, protecting the personal assets of the founder(s) and potential investor(s).

How should I choose my computer repair shop's legal structure?

Deciding on the legal structure is usually quite straightforward once you know how many co-founders you'll have, whether you'll have employees, and the expected revenues for the business.

A good business idea will be viable whatever the legal form you choose. How businesses are taxed changes every year, therefore one cannot rely on specific tax benefits tied to a particular structure when deciding to go into business.

One easy way to proceed is to take note of the legal structures used by your top five competitors, and assume you're going with the most commonly chosen option. Once your idea is mature and you're prepared to formally register the business, you can validate this assumption with a lawyer and an accountant.

Can I switch my computer repair shop's legal structure if I get it wrong?

You can switch your legal setup later on, even if it involves selling the old one to a new entity in some cases. However, this comes with extra costs, so it's better to make the right choice from the beginning if you can.

How much money do I need to start a computer repair shop?

To answer this key question, we first need to look at the resources you'll need to launch your computer repair shop and keep it running on a daily basis. Let's take a look at what that entails.

Since each venture is distinct, providing an average budget for starting a computer repair shop is impossible.

We strongly advise careful consideration when reading estimates on the web. It’s best to ask yourself the following questions:

• Is my project similar (location, concept, planned size, etc.)?
• Can I trust where this information is coming from?
• Is the data fresh or stale?

Your thinking behind the investments and human resources required to launch and operate the business will then enable you to cost each item and include them in your financial forecast (which we'll look at later in this guide).

Once complete, the forecast will give you a precise idea of the initial investment required and profitability potential for your business idea.

Startup costs and investments to start a computer repair shop

Let's start with the investments. To set up a computer repair shop, initial working capital and investments can include the following items:

• Computer Equipment: This includes all the hardware and software necessary for running your computer repair shop, such as desktops, laptops, servers, and diagnostic tools.
• Furniture and Fixtures: This includes desks, chairs, shelves, and other furniture needed for your employees to work comfortably and efficiently.
• Tools and Equipment: This includes specialized tools and equipment for repairing and servicing computers, such as screwdrivers, soldering irons, and diagnostic software.
• Inventory: This includes the cost of purchasing and stocking spare parts and components for repairs, such as motherboards, RAM, and hard drives.
• Vehicles: If your computer repair shop offers on-site services, you may need to purchase a company vehicle or two for your technicians to travel to clients' locations.

Of course, you will need to adapt this list to your company's specific needs.

Staffing requirements to operate a computer repair shop

You'll also need to think about the staff required to run the business on a day-to-day basis.

The human resources required will vary according to the size of your company.

Once again, this list is only indicative and will need to be adjusted according to the specifics of your computer repair shop.

Operating expenses of a computer repair shop

The final point to consider when analyzing the resources required is the question of operating costs.

Operating expenses for a computer repair shop may include:

• Staff Costs: This includes salaries, benefits, and any other wages paid to employees working in your computer repair shop. This could also include training and development costs for your staff.
• Accountancy Fees: You may need to hire an accountant to help you manage your finances and file taxes for your business.
• Insurance Costs: It is important to have insurance coverage for your computer repair shop to protect against any potential risks or damages.
• Software Licences: As a computer repair shop, you will need to purchase software licences for any programs or tools you use to diagnose and fix computer issues.
• Banking Fees: This includes fees for maintaining a business bank account, transaction fees, and any other charges related to your business banking.
• Rent/Lease: If you are renting or leasing a space for your computer repair shop, this will be a significant operating expense.
• Utilities: This includes electricity, water, internet, and any other utilities necessary to operate your computer repair shop.
• Advertising and Marketing: You may need to spend money on advertising and marketing to attract customers to your computer repair shop.
• Supplies and Materials: This includes any tools, equipment, and supplies needed to repair computers, such as replacement parts, cleaning supplies, and diagnostic tools.
• Maintenance and Repairs: As a computer repair shop, you will need to budget for regular maintenance and repairs on your equipment and tools.
• Professional Memberships: You may need to join professional organizations or associations related to the computer repair industry, which may have membership fees.
• Taxes and Licences: You will need to pay taxes and obtain necessary business licences to operate your computer repair shop.
• Legal Fees: If you need to seek legal advice or services for your computer repair shop, this will be an operating expense.
• Office Supplies: This includes any supplies needed to run your office, such as paper, ink, pens, and other office materials.
• Training and Development: It is important to keep your skills and knowledge up to date in the constantly evolving computer repair industry, so budget for training and development expenses.

Here also, this list will need to be tailored to the specifics of your computer repair shop but should be a good starting point for your budget.

How will I promote my computer repair shop's?

The next step to starting a computer repair shop is to think about strategies that will help you attract and retain clients.

Consider the following questions: 

• How will you attract as many customers as possible?
• How will you build customer loyalty?
• Who will be responsible for advertising and promotion? What budget can be allocated to these activities?
• How many sales and how much revenue can that generate?

Once again, the resources required will depend on your ambitions and the size of your company. But you could potentially action the initiatives below.

Your computer repair shop's sales plan will also be affected by variations in consumer demand, like changes in activity during peak holiday seasons, and the dynamics within your competitive environment.

Build your computer repair shop's financial forecast

The next step to start your computer repair shop: putting your financial projections together.

What is the financial forecast for a computer repair shop?

A forecast is a quantified decision-making document that shows the initial investment required to open a computer repair shop and the company's potential profitability and cash flow generation over the next 3 to 5 years.

As you think about your computer repair shop idea, the main role of financial projections will be to help you decide whether it makes sense to create the company.

Building a financial forecast helps determine the amount of initial financing required to start your computer repair shop.

In fact, creating financial projections is the only way to assess the amount of initial financing you'll need to open your computer repair shop, and to make sure your project makes economic and financial sense.

Keep in mind that very few business ideas are financially viable. At The Business Plan Shop, we've seen nearly a million business start-up ideas, and we estimate that less than one in four is economically viable.

Your forecast will therefore require your full attention and constant revision, as your project matures. It's also a good idea to simulate different scenarios to anticipate several possibilities (what happens if your sales take longer than expected to ramp up, for example), so you're ready for all eventualities.

When seeking financing, your forecast will be incorporated into your business plan, which is the document you will use to present your business idea to financial partners. We'll come back to the business plan in more detail later in this guide.

Creating and updating your computer repair shop's forecast is an ongoing process. Indeed, having up-to-date financial projections is the only way to maintain visibility over your company's future cash flow and cash position.

Forecasting is, therefore, the financial management tool that will be with you throughout the life of your company. Once you've started trading, you'll need to regularly compare the difference between your actual accounts and your forecasts, and then adjust them to maintain visibility over your future cash flows.

What does a financial projection look like?

Your computer repair shop forecast will be presented using the following financial tables.

The projected P&L statement

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

The projected balance sheet of your computer repair shop

Your computer repair shop's projected balance sheet provides a snapshot of your business’s financial position at year-end.

The cash flow forecast

A projected cash flow statement for a computer repair shop is used to show how much cash the business is expected to consume or generate in the years to come.

Which solution should you use to make a financial forecast for your computer repair shop?

The easiest and safest way to create your computer repair shop forecasts is to use an online financial forecasting software , like the one we offer at The Business Plan Shop.

There are several advantages to using professional software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You have access to complete financial forecast templates
• You get a complete financial forecast ready to be sent to your bank or investors
• The software helps you identify and correct any inconsistencies in your figures
• You can create scenarios to stress-test your forecast's main assumptions to stress-test the robustness of your business model
• After you start trading, you can easily track your actual financial performance against your financial forecast, and recalibrate your forecast to maintain visibility on your future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you are interested in this type of solution, you can try our forecasting software for free by signing up here .

Choose a name and register your computer repair shop

The next phase in launching your computer repair shop involves selecting a name for your company.

This stage is trickier than it seems. Finding the name itself is quite fun; the difficulty lies in finding one that is available and being the first to reserve it.

You cannot take a name that is similar to a name already used by a competitor or protected by a registered trademark without inevitably risking legal action.

So you need to find a name that is available, and be able to register it before someone else can.

In addition, you will probably want to use the same name for:

• Your company’s legal name - Example LTD
• Your business trading name - Example
• The trademark - Example ® 
• Your company’s domain name - Example.com

The problem is that the procedures for registering these different names are carried out in different places, each with their own deadlines:

• Registering a domain name takes only a few minutes
• Registering a new trademark takes at least 12 weeks (if your application is accepted)
• The time taken to register a new business depends on the country, but it's generally fast

You will therefore be faced with the choice of: either registering everything at once and hoping that your name will be accepted everywhere, or proceeding step by step in order to minimise costs, but taking the risk that someone else will register one of the names you wanted in the meantime.

Our advice is to discuss strategy with your legal counsel (see further down in this guide) and prioritise your domain names and registered trademarks. You'll always have the option of using a trade name that's different from your company's legal name, and that's not a big deal.

To check that the name you want is not already in use, you should consult:

• Your country's business register
• The relevant trademark registers depending on which countries you want to register your trade mark in
• A domain name reservation company such as GoDaddy
• An Internet search engine

In this area too, your legal counsel will be able to help with the research and formalities.

What corporate identity do I want for my computer repair shop?

The following step to start a computer repair shop is to define your company's visual identity.

Visual identity is part of the DNA of your computer repair shop: it makes you recognizable and recognized by your customers, and helps you stand out from the competition. It also helps convey your values, notably through the choice of colors that identify the company. 

Creating your business's visual identity yourself is entirely possible: there are several online tools that let you generate color palettes, choose typography and even generate logos.

However, we advise you to delegate this task to a designer or a communications agency for a professional result.

Your corporate identity will include the following elements: 

• Your business logo 
• Your brand guidelines
• Your business cards
• Design and theme of your website

Your computer repair shop's logo serves as a quick identifier for your company. It will be featured on all your communication platforms (website, social networks, business cards, etc.) and official documents (invoices, contracts, etc.).

Beyond its appearance, your logo should be easy to use on any type of support and background (white, black, gray, colored, etc.). Ideally, it should be easy to use in a variety of colors.

Brand guidelines

One of the challenges when starting a computer repair shop is to ensure a consistent brand image wherever your company is visible.

This is the role of your company's brand guidelines, which defines the typography and colors used by your brand and thus acts as the protector of your brand image.

Typography refers to the fonts used (family and size). For example, Trebuchet in size 22 for your titles and Times New Roman in size 13 for your texts.

The colors chosen to represent your brand should typically be limited to five (or fewer):

• The main colour, 
• A secondary colour (the accent),
• A dark background colour (blue or black),
• A grey background colour (to vary from white),
• Possibly another secondary colour.

Business cards

Classic but a must-have, your business cards will be at your side to help you easily communicate your contact details to your founders, customers, suppliers, recruitment candidates, etc.

In essence, they should feature your logo and adhere to the brand guidelines mentioned earlier.

Website theme

Likewise, the theme of your computer repair shop website will integrate your logo and follow the brand guidelines we talked about earlier.

This will also define the look and feel of all your site's graphic elements:

The next step in opening a computer repair shop is to take the necessary legal and regulatory steps. 

We recommend that you be accompanied by a law firm for all of the steps outlined below.

Registering a trademark and protecting the intellectual property of your computer repair shop

The first step is to protect your company's intellectual property. 

As mentioned earlier in this guide, you have the option to register a trademark. Your lawyer can assist you with a thorough search to ensure your chosen trademark is unique and doesn't conflict with existing ones and help select the classes (economic activities) and jurisdictions in which to register your trademark. 

Your lawyer will also be able to advise you on other steps you could take to protect your company's other intellectual property assets.

Drafting the contractual documents for your computer repair shop

Your computer repair shop will rely on a set of contracts and legal documents for day-to-day operations. 

Once again, we strongly recommend that you have these documents drawn up by a lawyer. 

Your exact needs will depend on the country in which you are launching your computer repair shop and the size of the company you are planning. 

However, you may wish to consider the following documents at a minimum: 

• Employment contracts 
• General terms and conditions of sale
• General terms and conditions of use for your website
• Privacy Policy for your website
• Cookie Policy for your website

Applying for licences and permits and registering for various taxes

The licenses and permits needed for your business will depend on the country where you are establishing it. Your lawyer can guide you on the regulations relevant to your activity.

Similarly, your chartered accountant will be able to help you register for taxes and take the necessary steps to comply with the tax authorities.

The next step in opening a computer repair shop is to draw up your business plan.

What is a computer repair shop's business plan?

A business plan serves as a comprehensive roadmap outlining the objectives, strategies, and key components of your venture. 

There are two essential parts to a business plan:

• A numerical part, the financial forecast we mentioned earlier in this guide, which highlights the amount of initial financing needed to launch the business and its potential profitability over the next 3 to 5 years,
• A written part, which presents in detail the project of creating a computer repair shop and provides the necessary context to enable the reader of the business plan to judge the relevance and coherence of the figures included in the forecast.

Your business plan helps guide decision-making by showcasing your vision and financial potential in a coherent manner.

Your business plan will also be essential when you're looking for financing, as your financial partners will ask you for it when deciding whether or not to finance your project to open a computer repair shop. So it's best to produce a professional, reliable, and error-free business plan.

In essence, your business plan is the blueprint to turn your idea into a successful reality. 

What tool should you use to create your computer repair shop business plan?

If you want to write a convincing business plan quickly and efficiently, a good solution is to use an online business plan software for business start-ups like the one we offer at The Business Plan Shop.

Using The Business Plan Shop to create a business plan for a computer repair shop has several advantages :

• 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 startup 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 create scenarios to stress test your forecast's main assumptions
• You can easily track your actual financial performance against your financial forecast by importing accounting data
• You can easily update your forecast as time goes by to maintain visibility on future cash flows

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

Once your business plan has been written, you’ll need to think about how you might secure the funding required to open your computer repair shop.

The amount of initial financing required will of course depend on the size of your computer repair shop and the country in which you wish to set up.

Financing your startup will probably require you to obtain a combination of equity and debt, which are the primary financial resources available to businesses.

Equity funding

Equity refers to the amount of money invested in your computer repair shop by founders and investors and is key to starting a business.

Equity provides your company with stable, long-term (often permanent) capital. It also demonstrates the commitment of the company's owners to the project, since these sums can be lost in the event of bankruptcy.

Because the equity invested by the founders may be lost if the project doesn't succeed, it signals to investors and other financial institutions the founders' strong belief in the business's chances of success and might improve the likelihood of obtaining further funding as a result.

In terms of return on investment, equity investors receive dividends paid by the company (provided it is profitable) or realise capital gains by reselling their shares (provided they find a buyer interested in the company).

Equity investors are, therefore, in a very risky position. They stand to lose their initial investment in the case of bankruptcy and will only obtain a return on investment if the business manages to be profitable or sold. On the other hand, they could generate a very high return if the venture is a financial success.

Given their position, equity investors are usually looking to invest in business ventures with sufficient growth and profitability potential to offset their risk.

From the point of view of the company and its creditors, equity reduces risk, since equity providers finance the company and are only remunerated in the event of success.

From a technical standpoint, equity consists of:

• Share capital and premiums: which represent the amount invested by the shareholders. This capital is considered permanent as it is non-refundable. In return for their investment, shareholders receive shares that entitle them to information, decision-making power (voting in general assembly), and the potential to receive a portion of any dividends distributed by the company.
• Director loans: these are examples of non-permanent capital advanced to the company by the shareholders. This is a more flexible way of injecting some liquidity into your company than doing so as you can repay director loans at any time.
• Reserves: these represent the share of profits set aside to strengthen the company's equity. Allocating a percentage of your profits to the reserves can be mandatory in certain cases (legal or statutory requirement depending on the legal form of your company). Once allocated in reserves, these profits can no longer be distributed as dividends.
• Investment grants: these represent any non-refundable amounts received by the company to help it invest in long-term assets.
• Other equity: which includes the equity items which don't fit in the other categories. Mostly convertible or derivative instruments. For a small business, it is likely that you won't have any other equity items.

The main sources of equity are as follows:

• Personal contribution from the founders' savings.
• Private investors: business angels, friends and family.
• Crowdfunding campaigns to find investors or collect donations (usually in exchange for a gift).
• Government initiatives such as loans on favourable terms to help partners build up their start-up capital.

Debt funding

Another option for partially funding your computer repair shop is to borrow.

By definition, debt works in the opposite way to equity:

• Debt needs to be repaid, whereas equity is permanent.
• Lenders get a contractually guaranteed return, whereas equity investors only generate a return if the company is a success.

When a company borrows money, it agrees to pay interest and repay the borrowed principal according to a pre-established schedule. Therefore, lenders make money regardless of whether the company is profitable and their main risk is if the company goes bankrupt.

To limit their risk, lenders are usually conservative and cautious in their approach. They only finance projects where they are confident that they will be repaid in full.

Companies borrow in two ways:

• Against their assets: this is the most common way of borrowing. The bank finances a percentage of the price of an asset (a vehicle or a building, for example) and takes the asset as collateral. If the company cannot repay, the bank seizes the asset and sells it to limit its losses.
• Against their future cash flows: the bank evaluates the company's financial forecast to estimate its borrowing capacity and assesses the conditions (amount, interest rate, term, etc.) on which it is prepared to lend, taking into account the credit risk posed by the company.

It's difficult to borrow against future cash flow when setting up a computer repair shop, because the business doesn't yet have historical data to reassure lenders about the credibility of the forecasted cash flows.

Borrowing against assets is, therefore, often the only option available to entrepreneurs. What's more, the assets that can be financed with this option must be easy to resell, in the unfortunate event that the bank is forced to seize them, which may limit your options even further.

In terms of possible sources of borrowing, the main sources here are banks and credit institutions. Bear in mind, however, that each institution is different, both in terms of the risk it is prepared to accept and in terms of how the risk of your project will be perceived and what items it will agree to finance.

In some countries, it is also possible to borrow from private investors (directly or via crowdlending platforms) or other companies, but not everywhere.

Things to remember about financing a computer repair shop

There are various ways you can raise the initial financing you need to open your computer repair shop. A minimum amount of equity will be needed to give the project credibility, and bank financing can be sought to complete the package.

Once you’ve secured financing, you will finally be ready to launch your computer repair shop. Congratulations! 

Celebrate the launch of your business and acknowledge the hard work that brought you here, but remember, this is where the real work begins. 

As you know, 50% of business start-ups do not pass the five-year mark. Your priority will be to do everything to secure your business's future. 

To do this, it is key to keep an eye on your business plan to ensure that you are on track to achieve your goals.

No one can predict the future with certainty, so it’s likely that your computer repair shop's financial performance will differ from what you predicted in your forecast.

This is why it is recommended to make several forecasts: 

• A base case (most likely)
• An optimistic scenario
• And a pessimistic scenario to test the robustness of your financial model

If you follow this approach, your numbers will hopefully be better than your optimistic case and you can consider accelerating your expansion plans. That’s what we wish you anyway!

If, unfortunately, your figures are below your base case (or worse than your pessimistic case), you will need to quickly put in place corrective actions, or consider stopping the activity. 

The key, in terms of decision-making, is to regularly compare your real accounting data to your computer repair shop's forecast to: 

• Measure the discrepancies and promptly identify where the variances with your base case come from
• Adjust your financial forecast as the year progresses to maintain visibility on future cash flow and cash position

There is nothing worse than waiting for your accountant to prepare your year-end accounts, which can take several months after the end of your financial year (up to nine months in the UK for example), to realise that the performance over the past year was well below the your base case and that your computer repair shop will not have enough cash to keep running over the next twelve months.

This is why using a financial forecasting solution that integrates with accounting software and offers actuals vs. forecast tracking out of the box, like the financial dashboards we offer at The Business Plan Shop , greatly facilitates the task and significantly reduces the risk associated with starting a business.

• This guide outlines the 15 key steps to open a computer repair shop.
• The financial forecast is the tool that will enable you to validate the financial viability of your business idea.
• The business plan is the document that will enable you to approach your financial and commercial partners to convince them of the strengths of your project and secure the financing you need to launch your business.
• The real work begins once you've launched your business, and the only way to maintain visibility of your company's future cash flow is to keep your forecast up to date.
• Using a financial planning and analysis platform that combines forecasting, business planning and actual vs. forecast tracking and monitoring, such as The Business Plan Shop, makes the process easier and reduces the risks involved in starting a business.

We hope this guide has helped you understand how to start a computer repair shop. Please don't hesitate to contact us if you have any questions.

Also on The Business Plan Shop

• Business plan samples for start-ups

Do you know someone who wants to know how to open a computer repair shop? Share our guide 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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Home » Sample Business Plans » Technology

How to Write a Computer Sales & Service Business Plan [Sample Template]

Are you about starting a computer sales & services business? If YES, here is a complete sample computer sales & services business plan template & feasibility report you can use for FREE . According to a recent report, computer sales and related services are expected to exceed $47 billion this year in the U.S. alone, with computer servicing leading the way.

This goes to show that any entrepreneur who properly positions himself or herself in computer sales and servicing industry would definitely enjoy good business turnover. As a matter of fact, almost all businesses and homes have computers, and these people may not have the skills, time or the desire to do their own computer servicing, repairs and upgrades, and that puts a computer physician right in the middle of one of the fastest-growing industries in the world.

A Sample Computer Sales & Services Business Plan Template

1. industry overview.

The computer sales and servicing industry includes operators that mainly sell and service all forms of computers such as desktops, laptops, notebooks, palmtops and software, as well as accessories like printers, scanners and keyboards. These goods are generally purchased from domestic and international manufacturers and wholesalers and then sold to end consumers, including households and businesses.

Computers have exploded throughout America and the world over the past 30 years – from 2,000 units shipped in 1960 to 900,000 in 1980 to 7 million in 1990 to over 15 million per year by 2003 to over 65 million per quarter in 2015. With this rapid growth, there has been a corresponding increase in the need for computer services.

If you are conversant with happenings in the Computer Sales and Services industry, you will notice that computers are rapidly becoming indispensable household and personal products. In spite of the growing ubiquity of these products, retailers of computers, peripherals and consumer electronics have experienced some time-consuming challenges over the past five years.

Swift technological change, increased production efficiency and a highly globalized supply chain have lowered computer retail prices, hampering the industry’s revenue potential.

In addition, the increasing adoption of e-commerce has reduced customer traffic in computer stores, further limiting revenue. More consumers are now taking advantage of online shopping, which facilitates product and price comparisons. Going forward, industry revenue is expected to decrease.

The Computer Sales and Services industry is indeed a large industry and pretty much active in most countries of the world. Statistics has it that in the united states of America alone, there are about 18,173 registered and licensed (big, medium scale and small) computer manufacturing companies scattered all across the United States responsible for employing about 94,791 people and the industry rakes in a whooping sum of $29 billion annually.

The industry is projected to enjoy -0.4 percent annual growth within 2012 and 2017. It is important to state that Apple Inc., Best Buy Co. Inc. and Fry’s have lion shares of the available market in this industry.

Computer sales account for an estimated 44.0 percent of industry revenue in 2017. Products in this segment include desktops and laptops, with laptop sales outpacing that of desktops. While desktops were historically the most commonly purchased computer product, the falling price of computers and computer components over the past five years reduced the premium that laptops once commanded over desktops.

A majority of consumers’ favor laptops for their portability, augmented by the increasingly wireless data infrastructure. However, desktops still maintain advantages in niche market, particularly with gaming enthusiasts and computer power users who prefer a desktop computer’s superior upgrade potential, ease of repair and customizability.

No doubt everybody will quite agree that the computer sales and services industry has come to stay and of course it is one industry that plays key roles not only in the business world, but also in almost all aspects of what goes around in our world today as long as computers are involved.

Over and above, the Computer Sales and Services industry is an open industry hence a low level of market share concentration. Even though large multiservice agencies operate in the industry, revenue is also spread among thousands of small computer stores and repair centers.

2. Executive Summary

Harry & Barry® Computer Sales & Services Center, LLC is a U.S based computer sales and services company. We have been able to secure a standard store facility in a central business district in Phillips Avenue, Sioux Falls – South Dakota. We are set to compete in the highly competitive computer sales and services industry not only in Sioux Falls – South Dakota, but also throughout the United States market.

Harry & Barry® Computer Sales & Services Center, LLC will engage in the sales and servicing of all forms of computers such as desktops, laptops, palmtops and software, as well as accessories like printers, scanners and keyboards. Our business goal is to become one of the top brands in the computer sales and services industry in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.

Our workers are going to be selected from a pool of certified and highly experienced computer sales and services engineers in and around Sioux Falls – South Dakota and also from any part of the United States of America as the business grows. We will make sure that we take all the members of our workforce through the required training that will position them to meet the expectations of the company.

At Harry & Barry® Computer Sales & Services Center, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Harry & Barry® Computer Sales & Services Center, LLC is a joint partnership business that is owned by Engr. Harry Jordan a computer engineer par excellence who graduated with from Illinois Institute of Technology (B.Engr. Computer Engineering), and his friend and business partner Barry Martins (B.Sc. Business Management).

They have a combined experience that can help them build Harry & Barry® Computer Sales & Services Center, LLC to favorably compete with other leading computer sales and services businesses in the United States of America.

3. Our Products and Services

Harry & Barry® Computer Sales & Services Center, LLC is established with the aim of maximizing profits in the computer sales and services industry. We want to compete favorably with companies in the United States which is why we have put in place a competent quality assurance team that will ensure that every service rendered meets and even surpasses our customers’ expectations.

We will work hard to ensure that Harry & Barry® Computer Sales & Services Center, LLC is not just accepted in Sioux Falls – South Dakota but also in other cities in the United States of America. Our products and services are listed below;

• Sales and servicing of all sort of computers
• Sales and servicing of computer peripherals (e.g. printers, monitors, keyboards, mouse and speakers)
• Sale of computer software
• Computer installation
• Computer Cloning/upgrade
• Offering other computer repair and installation related services

4. Our Mission and Vision Statement

• Our vision is to establish a one stop computer sales and service center whose services and brand will not only be accepted in Sioux Falls – South Dakota but also in other cities in the United States of America.
• Our mission is to retail computers and related products and also to provide professional computer services that will assist businesses and individuals in ensuring that their computers are always in good shape to help them carry out their business.
• We want to build a computer sales and services company that can favorably compete with other leading brands in the computer sales and services industry.

Our Business Structure

Harry & Barry® Computer Sales & Services Center, LLC, is a computer sales and services company that intend starting small in Phillips Avenue, Sioux Falls, but hopes to grow big in order to compete with leading computer sales and services companies in the United States.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Harry & Barry® Computer Sales & Services Center, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Store Manager
• Head, Technical Services
• Human Resources and Admin Manager
• Sales and Marketing Executive
• Computer Repair and Maintenance Engineers and Technicians (10)
• Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by employing, choosing, orientating, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Accountable for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Store Manager:

• Responsible for managing the daily activities in the store
• Ensures that proper records of computers and computer parts are kept and warehouse does not run out of products
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Controls distribution and supply chain inventory
• Supervises the workforce in the sales floor
• Helps to ensure consistent quality of computers and computer parts are purchased and retailed in good price that will ensure we make good profit

Head, Technical Services:

• Serves as project manager of the organization; works directly with employees
• Maintains quality service by establishing and enforcing organization standards.
• Makes certain that the technical department performs efficiently, coordinates employee efforts, facilitates communication between management and computer repairs and maintenance engineers and technicians
• Ensures that the organization work in line with international best practices.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops executes and evaluate new plans for expanding sales
• Creates new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization.

Computer Repair and Maintenance Engineers (2) and Technicians (8)

• Responsible for general computer repairs and maintenance services
• Carry out computer installation services for clients
• Responsible for carrying out computer cloning and upgrade
• Responsible for handling Networking of computer system
• Responsible for handling virus removal Data recovery
• Handles computer and accessories sales and supply for the organization

Help Desk Officers

• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level.
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services.
• Manages administrative duties assigned by the creative director in an effective and timely manner.
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information are supplied to clients when they make enquiries.
• Find out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
• Bag, package or gift-wrap merchandise as requested by customers.

6. SWOT Analysis

Because of our quest for excellence, Harry & Barry® Computer Sales & Services Center, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured computer sales and services business that can favorably compete in the industry in the United States.

Part of what the business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Harry & Barry® Computer Sales & Services Center, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Harry & Barry® Computer Sales & Services Center, LLC;

Our core strength lies in the power of our workforce. We have a team of trained and certified computer repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry and we will ensure that we have all brands and types of computers in our store per time.

As a new computer sales and services center in Sioux Falls – South Dakota, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already highly competitive computer sales and services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities in the computer sales and services industry is massive considering the number of individuals and businesses that own computers. So also, the launch of new tablets will likely drive consumers into stores to test and compare products. As a computer sales and services company, we are ready to take advantage of any opportunity that is available in the industry.

The increasing adoption of e-commerce has reduced customer traffic in computer stores, further limiting revenue and also, the domestic PC market has shrunk due to market saturation and greater competition from tablets, are some of the threats that will confront us.

So also, one major threat that we are likely going to face is economic downturn. Another threat that may likely confront us is the arrival of a new computer sales and services center in same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

The extent at which the internet and computer has taken over our world is a pure sign that every computer literate needs the services of a computer repairer when his/her computer malfunctions – be it hardware or software.

The very nature of the Computer Sales and Services industry, with its extraordinary rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues.

With every individual armed with a computer and with almost all valuable information in our daily lives being stored in the computer, the computer selling business is booming and with this booming comes a need for repair.

Everybody with a computer knows that moment of panic when the hard drive crashes–and for business people, it usually happens when they are staring into the eye of a deadline. The need for computer physicians is growing every day and more people are venturing into this field, making it a competitive and goal oriented industry.

Lastly, the computer sales and services industry will continue to evolve due to the advancement of computer technology and software designs et al.

8. Our Target Market

Before starting our computer sales and services business in Sioux Falls – South Dakota, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who cannot successfully run their businesses without computers.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know can’t afford to do without our products and services. Below is a list of people we will specifically market our products and services to;

• Banks, Insurance Companies and other related Financial Institutions
• Blue Chips Companies
• Corporate Organizations
• Real Estate Owners, Developers, and Contractors
• Research and Development Companies
• The Government (Public Sector)
• Schools (High Schools, Colleges and Universities)
• Celebrities, Politicians, Public Figures and Public Speakers
• Sport Organizations
• Religious Organizations
• Television Stations
• Printing Press (Publishing Houses) and Authors
• Branding and Advertising agencies
• Individuals and households who own computers

Our Competitive Advantage

Surviving in the business world as a computer sales and services company requires more than your expertise, knowing how to deliver standard repairs and maintenance but also how to network with key people that matter.

We are quite aware that to be highly competitive in the computer sales and services industry means that you are not only expected to deliver reliable computer supply, installation, repair, networking and maintenance jobs, but you must be able to meet set targets.

No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects. Our competitive advantage lies in our ability to control stock at hand, our experienced work force and proximity to key markets.

We equally have a team of certified, highly trained and experienced computer repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the computer sales and service industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Harry & Barry® Computer Sales & Services Center, LLC is established with the aim of maximizing profits in the computer sales and services industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Harry & Barry® Computer Sales & Services Center, LLC will generate income by;

• Computer Cloning and upgrade

10. Sales Forecast

One thing is certain, there would always be corporate organizations and individuals who would need to purchase computers and accessories. We are well positioned to take on the available market in Sioux Falls –  South Dakota and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation.

We have been able to critically examine the computer sales and services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Sioux Falls – South Dakota.

• First Year: $350,000
• Second Year: $750,000
• Third Year: $1.2 million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiff competitions in the computer sales and services industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Harry & Barry® Computer Sales & Services Center, LLC.

Our corporate goal is to grow Harry & Barry® Computer Sales & Services Center, LLC to become one of the top 10 computer sales and services brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Sioux Falls – South Dakota but also in other cities in the United States of America.

Harry & Barry® Computer Sales & Services Center, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our computer sales and services center by sending introductory letters alongside our brochure to individuals, corporate organizations and key stake holders in and around Sioux Falls – South Dakota.
• Promptness in bidding for computer supply, installation, repair, networking and maintenance contract from the government and other cooperate organizations
• Advertise our business in relevant business magazines, newspapers, TV and radio stations.
• List our business in yellow pages’ ads (local directories)
• Attend relevant international and local expos, seminars and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our in-house brand and publicity consultant to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate and individual clients in the whole of the Sioux Falls and beyond which is why we have made provisions for effective publicity and advertisement of our computer sales and services company.

Below are the platforms we intend to leverage on to promote and advertise Harry & Barry® Computer Sales & Services Center, LLC;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like Instagram, Facebook, twitter, YouTube, Google + et al to promote our services.
• Install our billboards in strategic locations all around Sioux Falls – South Dakota.
• Engage in roadshows from time to time in targeted neighborhoods.
• Distribute our fliers and handbills in target areas.
• List our computer sales and services company in local directories/yellow pages
• Advertise our computer sales and services company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo.

12. Our Pricing Strategy

At Harry & Barry® Computer Sales & Services Center, LLC we will keep the prices of our products and services below the average market rate by keeping our overhead low and by collecting payment in advance from corporate organizations who would purchase our products or hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts like computer supply, installation, repair, networking and maintenance which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

The payment policy adopted by Harry & Barry® Computer Sales & Services Center, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Harry & Barry® Computer Sales & Services Center, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payments for the purchase of our products or our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials for this purpose.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive computer sales and services company in Sioux Falls – South Dakota and here are the key areas where we will spend our startup capital;

• The total fee for registering the business in the Unites States of America – $750 .
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Harry & Barry® Computer Sales & Services Center, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring business consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000.
• The cost for start-up inventory (stocking with a wide range of computers such as desktops, notebook computers and software, as well as accessories like printers, scanners and keyboards. et al from different manufacturing brands) – $200,000
• The cost for counter area equipment – $9,500.
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs: $10,000 .
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of launching a website: $600 .
• The cost for our opening party: $7,000 .
• Miscellaneous: $10,000.

We would need an estimate of three hundred and fifty thousand dollars ( $350,000 ) to successfully set up our computer sales and services store in Sioux Falls – South Dakota.

Generating Startup Capital for Harry & Barry® Computer Sales & Services Center, LLC

Harry & Barry® Computer Sales & Services Center, LLC is a business that will be owned and managed by Engr. Harry Jordan and his friend and business partner Barry Martins. They are the financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings and sale of his stocks.
• Generate part of the startup capital from friends and other extended family members.
• Generate a larger chunk of the startup capital from the bank.

N.B: We have been able to generate about $150,000 ( Personal savings $120,000 and soft loan from family members $30,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Harry & Barry® Computer Sales & Services Center, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell or computers and accessories and offer our computer repair and maintenance services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Harry & Barry® Computer Sales & Services Center, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility for our studio: Completed
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Secure trademark for our products: In Progress
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating official website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Opening party planning: In Progress
• Compilation of the list of products that will be available in our store: Completed
• Establishing business relationship with vendors – manufacturers and suppliers of computers, computer parts and accessories: In Progress

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How To Open A Computer Shop Business Philippines

How To Open A Computer Shop Business Philippines: Some people refer to starting an Internet cafe business in the Philippines as a computer shop business. Still, whatever terminology they use, is it a good idea to start an Internet cafe business in the Philippines , and is it profitable ?

Opening a computer shop business in the Philippines can be a fantastic idea if the demand and profit are monitored and the maintenance costs are low. With this being said, you may ask if an Internet cafe business in the Philippines is profitable?

An Internet cafe business in the Philippines can be profitable long-term. However, through research, it is clear that the location heavily influences demand and opportunities. Therefore, profitability for a computer shop business / Internet cafe business in the Philippines will depend on the location and other factors, including utility costs, equipment costs, and other maintenance fees.

Table of Contents

How To Open A Computer Shop Business In The Philippines

1. create your plan, goal and strategy.

The most important part of any computer shop business is a plan . Luckily, several computer shop business plans can be downloaded for free. However, suppose you are looking for a business template specifically for the Philippines. In that case, Filipino wealth has a free downloadable template that you can find by clicking on the business plan tab at the top of this page.

Whether you choose to download a business plan for a computer shop business or write your own, what is important is that several key questions are answered. This includes what the goal of the business is, what will the financial costs and profit be, and finally, what will be your strategy for business success?

As mentioned above, the success of an Internet cafe business in the Philippines depends on several factors, but one of the most fundamental is the location. This moves into market research, which we will be discussing in much more detail below.

2. Market Research  

To succeed in opening a computer shop business in the Philippines, you need to know as much information about the current market as possible. Not only will this help you build a business plan for a computer shop in the Philippines, but it will also allow you to base your decisions on the current demand carefully.

Here are some topics you may wish to dive into deeper when looking at how to start a computer shop business in the Philippines.

• Why Are Customers In Need Of A Computer Shop Business
• Which Area Offers The Cheapest Costs But Is Accessible
• Are There Any Other Internet Cafe Businesses In My Area
• What Types Of Facilities Are My Customers Looking For
• How Are Other Businesses Earning Money From This Type Of Business
• What Are Gaps In The Market That I Can Fill
• Is There A Future For Computer Shop Businesses In The Philippines
• Are There Any Suppliers In My Area? If So, How Much Would This Cost Me

These are a few basic ideas, but finding out the answers will help you decide on your next move. Unfortunately, when starting a computer shop business in the Philippines, market research is often neglected, but it is perhaps one of the most important.

Not only can market research save you a great deal of time, but it can also save you thousands of pesos, so it is always recommended to spend a significant amount of time researching the local market and demand before taking any physical action in starting a computer store business in the Philippines.

3. Choose The Best Location

Where is the best location for your customers? The location of an Internet cafe business needs to have several key elements. The first is accessibility. The second is affordability. The third is comfortability.

If a location is not accessible, affordable, or even worse, uncomfortable, this can seriously impact your business and overall business growth. Of course, some things can be changed, such as how comfortable a room or offices but accessibility and affordability are two factors that are very difficult to manage.

This is why choosing a location in the perfect area for your customers, and your business is key. For example, if you are within the city, you may find that some prices can be fairly high. Therefore, you may benefit from slightly moving outside of the city as long as this is also accessible to your targeted customers.

4. Registration And Regulations

Registration of a business in the Philippines is fairly simple. Several websites have documented this process over the years, but you can head over to the government website for a step-by-step guide for the official guide.

In addition, you will also need to follow business rules and regulations. For example, if you decide to sell food, you will also need to apply different laws. Fundamentally, your overall business plan will impact what regulations need to be researched and followed.

It’s often recommended to contact a local lawyer when registering a business for the first time. They will also be able to highlight any laws and regulations that you will need to follow as a business owner (depending on the services and scope of your business).

From research, most of the laws with this type of business are around the safety of consumers, which tends to fall under the general business law. This includes ensuring your customers are safe, following fire and emergency procedures, etc.

5. Open And Grow

The final stage on how to open a computer shop business in the Philippines is opening and growing the business.

Business owners often ask how can I grow a computer shop business in the Philippines? There are many ways growth can take effect.

Scalability is where processes are made simpler and easier. Even though this is not a direct form of growth, this does allow for business growth indirectly. For example, instead of marketing leaflets, you could focus on Facebook marketing which can cost less than printing thousands of different leaflets each month.

Another way to encourage growth is by reinvesting your profits back into the business. This can include increasing hardware, software, facilities, chairs, marketing, staff, etc.

Other Considerations When Starting A Computer Business Philippines

As there are many different types of Internet cafe businesses in the Philippines, there are several areas that may be applicable that have not been mentioned in the list above, so here are several categories that you may wish to investigate when you are looking at how to open a computer shop business in the Philippines.

• Internet Providers
• Installation
• Equipment (Hardware)
• Programs (Software)
• Vending Machines, Food, And Drink
• Membership Prices

Naturally, the areas that will need to be researched will depend on the type of business you plan. There are several ways you can make money from an Internet cafe business in the Philippines; however, it’s often recommended to start small when opening a new business of this type.

How Much Does It Cost To Start A Computer Shop Business Philippines

The total cost to start a computer shop business in the Philippines is 250,000 Pesos. The total capital includes equipment, installation, marketing, and so on. Nevertheless, the total capital needed may be slightly higher or lower depending on the size of your business.

The great news is when you are looking at how to open a computer shop business in the Philippines, the overall cost for hardware is reducing. As technology is increasingly developing, older models are becoming much cheaper, and there are several companies and suppliers selling equipment in bulk for a great price.

You can also start an Internet cafe business in the Philippines for much less than 250,000 Pesos, but the business will need to be on a much smaller scale. In addition, this excludes many significant capital costs, such as a survival budget and insurance.

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Get this complete sample business plan as a free text document.

Computer Hardware Reseller Business Plan

Start your own computer hardware reseller business plan

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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