computer reseller business plan pdf

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Computer Hardware Reseller Business Plan

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Executive Summary

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

We need to effectively compete against the idea that businesses should buy computers as plug-in appliances that don’t need ongoing service, support, and training. Our focus group sessions indicated that our target home office markets think about price but would buy based on quality service if the offering were properly presented. They think about price because that’s all they ever see. We have very good indications that many would rather pay 10-20% more for a relationship with a long-term vendor providing back-up and quality service and support; they end up in the box-pusher channels because they aren’t aware of the alternatives.

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

1.1 Objectives

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

1.2 Keys to Success

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

1.3 Mission

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

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

Company Summary

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

2.1 Company History

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

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

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

Both collection days and inventory turnover are getting steadily worse.

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

2.2 Company Ownership

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

2.3 Company Locations and Facilities

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

Products and Services

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

3.1 Product and Service Description

In personal computers, we support three main lines:

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

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

3.2 Competitive Comparison

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

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

3.3 Sales Literature

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

3.4 Fulfillment

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

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

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

3.5 Technology

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

3.6 Future Products and Services

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

3.7 Service and Support

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

Market Analysis Summary

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

4.1 Market Segmentation

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

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

4.2 Service Business Analysis

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

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

4.2.1 Competition and Buying Patterns

The small business buyers understand the concept of service and support, and are much more likely to pay for it when the offering is clearly stated.

There is no doubt that we compete much more against all the box pushers than against other service providers. We need to effectively compete against the idea that businesses should buy computers as plug-in appliances that don’t need ongoing service, support, and training.

Our focus group sessions indicated that our target Home Offices think about price but would buy based on quality service if the offering were properly presented. They think about price because that’s all they ever see. We have very good indications that many would rather pay 10-20% more for a relationship with a long-term vendor providing back-up and quality service and support; they end up in the box-pusher channels because they aren’t aware of the alternatives. Availability is also very important. The Home Office buyers tend to want immediate, local solutions to problems.

4.2.2 Main Competitors

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

4.2.3 Business Participants

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

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

4.2.4 Distributing a Service

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

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

4.3 Target Market Segment Strategy

4.3.1 market needs.

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

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

4.3.2 Market Trends

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

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

4.3.3 Market Growth

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

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

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• Business Plans Handbook
• Business Plans - Volume 05
• Computer Reseller Business Plan v2 Business Plan

Computer Reseller BUSINESS PLAN

ELLIPSE TECHNOLOGIES, INC.

1500 North River Street

Kalamazoo, MI 48221

This business plan demonstrates that in order to enter an industry where there are already several successful dominant players, a business has to cater to a small segment of the marketplace or offer unique services. Ellipse does both. As a reseller of computer equipment and software, Ellipse is very aware of its position in this competitive arena, and plans to successfully address this challenge.

EXECUTIVE SUMMARY

Company overview.

• PRODUCT STRATEGY

MARKET ANALYSIS

Marketing plan, financial plan.

• CASH FLOW PROJECTION

Ellipse Technologies' mission is to supply clients with state-of-the-art computers and computer related products, along with a plan for integration of computer technologies into clients' day-today business operations.

Ellipse Technologies' core business activity consists of value-added reselling of computers and computer products, including various kinds of system, network system, voice recognition, and image processing. Additionally, Ellipse Technologies provides custom training, and maintains support contracts with certain clients to insure stability in their computer operations and information systems.

The largest volume product sold by Ellipse Technologies is a family of voice recognition software from Dragon Systems, Inc. The voice recognition software consists of large vocabulary speech products that accepts voice input to a Microsoft Windows based personal computer to run commands and produce text.

The principals of Ellipse Technologies have built a solid base of voice recognition clients in the fields of physical rehabilitation, healthcare, and law. During this time, as advances in both computer hardware and the voice recognition software have occurred, sales of voice recognition technologies have grown steadily. This growth hasoccurred with minimal investment in advertising and marketing.

Ellipse Technologies plans to significantly expand its sales and client base by increased marketing and advertising.

Legal Business Description

The legal name of Ellipse Technologies is Ellipse Technologies, Inc.

The legal form of Ellipse Technologies is a Subchapter S Corporation, incorporated in the state of Michigan.

The business location of Ellipse Technologies is 1500 North River Street, Kalamazoo, Michigan, 48221.

Management Team

Our management team consists of 3 individuals whose backgrounds consist of years of in-depth experience in computer system development, sales, healthcare, and marketing with corporations and institutions throughout Michigan and the U.S.

In-House Management

• Matt Williams, President
• Darlene VanMarkus, Vice President of Marketing
• Maria Williams, OTR, CHT, Corporate Secretary, Operations Director

Outside Management Support [hourly/project basis]

• Don Hoffman, Accountant/CPA
• Joanna Crenshaw, Corporate Attorney
• Sam Hillman, Financial and Business Consultant

Strategic Alliances

Dragon Systems, Inc. (Ellipse Technologies is a Premier Reseller of products)

Infotel, Inc. (Ellipse Technologies is a reseller of computer hardware) FOSA Computer (Ellipse Technologies is a reseller of notebook computers)

PRODUCT STRATEGY: CURRENT PRODUCT

Ellipse Technologies currently offers several main products and services:

• DragonDictate for Windows - Personal Edition (Resell software from Dragon Systems, Inc.)
• DragonDictate for Windows - Classic Edition (Resell software from Dragon Systems, Inc.)
• DragonDictate for Windows - Power Edition (Resell software from Dragon Systems, Inc.)
• DragonPro Medical Vocabulary - (Resell software from Dragon Systems, Inc.)
• DragonPro Legal Vocabulary - (Resell software from Dragon Systems, Inc.)
• DragonPro Business Vocabulary - (Resell software from Dragon Systems, Inc.)
• Dragon Naturally Speaking, Continuous Dictation software- (Resell software from Dragon Systems, Inc.)
• Dragon Xtools Development System - (Resell software from Dragon Systems, Inc.)
• Custom configured desktop Voice Recognition computer systems (Resell software, Resell hardware, system integration)
• Custom configured portable Voice Recognition computer systems (Resell software, Resell hardware, system integration)
• Custom configured desktop and portable business computer systems (Resell hardware, system Integration)
• Consulting, training, and installation of voice recognition products (Services)
• Custom configured networked computer systems (Resell hardware, system configuration)
• Networked computer system installation, support, and training (Services)

Market Definition

The voice recognition market is growing at a rapid rate. The market for these products amounted to 20.6 million units sold world-wide in 1994, and 45.3 million in 1995.

Unit sales figures were over 145 million in 1996. Projections are for over 1,700 million in 1997, and 4.2 billion units in 1998, based on data supplied by FSG Associates, a national market research firm.

The traditional market for voice recognition sales has been for individuals with physical disabilities. With today's and tomorrow's computer hardware combined with improvements in the performance of the voice recognition software, the market is shifting to professionals who need to (inexpensively) produce large quantities of documentation.

Customer Profile

Ellipse Technologies' target market includes physical rehabilitation, healthcare, and law. The most typical customer of our products is someone who needs to operate a computer and (especially) produce textual material, but cannot (or chooses not to) use the computer keyboard. This often includes individuals with physical disabilities, physicians and other healthcare professionals, or those in the legal profession, who produce large volumes of documentation.

Competition

Companies that compete in this market are IBM (and representatives), and Kurzweil Applied Intelligence (and representatives), along with other Dragon resellers (to a lesser extent within the state of Michigan). All companies charge competitive prices:

Dragon Systems has clear advantages over other competitors in the voice recognition market. Dragon was the first company to introduce voice recognition software for personal computers, it holds patents in many sectors of this technology, and its software is reputed to be the easiest to use, compared with competing products.

Additionally, Dragon Systems will be releasing a new product this summer called Naturally Speaking. Naturally Speaking is a continuous speech product that allows the user to talk at speeds of over 100 words per minute with a high degree of accuracy. This product is expected to cause sales of voice recognition software to dramatically increase.

Ellipse Technologies has competitive advantages over other resellers in this industry. Its management team entered the market of voice recognition early and has already established a network of clients at major hospitals and rehabilitation agencies throughout the state of Michigan. Ellipse Technologies maintains a status with Dragon Systems known as a Premier Reseller of Dragon software. As a Premier Reseller, it works directly with Dragon Systems to develop marketing plans and provide support and training for all Dragon products in exchange for a regular supply of leads, referrals, and sales consulting.

The top business risks that Ellipse Technologies faces as it begins to expand in the voice recognition market are: (1) Other, larger companies will enter the market; and (2) that voice recognition technology will become "mainstream" and be bundled withcomplete computer system packages.

These risks are minimized by the fact that: (1) The investment in money, personnel, and "knowhow" are significant. Ellipse Technologies' staff has over 2 years experience in installing, configuring, and supporting voice recognition products, and therefore a major lead from all other competitors, (2) Even though voice recognition technology is likely to be part of most computer systems in the future, it will take quite a while before professional assistance is not required. This is evidenced by the fact that there is still a large need for word processor consulting, training, and support even though word processing software has been sold and marketed for over 15 years.

Ellipse Technologies' marketing strategy is to enhance, promote and support the fact that our products are cost-effective solutions for anyone who produces volumes of text using a computer. We can also demonstrate our products' cost-effective nature for use in rehabilitation, since it is Americans with Disability Act (ADA)-compliant, bringing many Workman's Compensation claim individuals back into the marketplace.

Sales Strategy

Because of Ellipse Technologies' special market relationship with Dragon Systems within the state of Michigan, our sales strategy includes telephone follow-up with daily leads submitted by Dragon Systems, processing credit card purchases made by telemarketing staff at Dragon Systems, and selling hardware and custom training for customers of voice recognition systems.

Additionally, Ellipse Technologies plans to undertake direct sales activity to institutions and large business organizations. Likely customers include hospitals, schools, clinics, banks, insurance companies, and law firms. On a regular basis Ellipse Technologies plans to attend or sponsor seminars or conferences for purposes of exhibiting voice recognition and other state-of-the-art computer technologies.

A partial list of Ellipse Technologies' major current customers includes:

• Middleton Medical Center
• Michigan Jobs Commission
• Jordan Clinic of Petoskey
• Kalamazoo Rehabilitation Center
• Detroit Medical Center
• Michigan Rehabilitation Services
• Donald Sutherland, MD, PC
• Littleton & Littleton, PC
• Pharmacia Upjohn
• Benjamin County Central Schools
• Randolph-Milton, PC
• Michigan Land Use Institute
• Kalamazoo Area Public Schools
• Watertown Public Schools

Advertising and Promotion

Our advertising and promotion strategy is to position Ellipse Technologies as the leading voice recognition system dealer in the state of Michigan. Additionally, we wish to achieve name recognition as a supplier of high-tech, state-of-the-art computer systems and components that emphasize voice recognition. Our slogan, "Taking business to new horizons," is intended to signify a company that provides forward-looking office solutions.

We will utilize the following media and methods to allow our message to reach our customers: (1) Advertisements in tradejournals and industry newsletters; (2) Direct sales contacts to institutions, providing them with on-site seminars and trials of the products; (3) Direct mail of literature and videocassettes demonstrating the power of our products; and (4) Sponsorship and attendance at published seminars and conferences to exhibit our products.

For the next 12 months, advertising, marketing, and promotion will require approximately $12,000. Much of this cost will come from ongoing sales revenues, however Ellipse Technologies is seeking part of this money to begin its market thrust.

On an ongoing basis beyond that period, we will budget our advertising investment as 5% to 10% of total sales.

Public Relations

During 1997 Ellipse Technologies will focus on the following publicity strategies: (1) Direct mail of literature and videocassettes to large legal and healthcare organizations; and (2) Direct mail of invitations to seminars held in various cities to demonstrate the capabilities of the technologies.

We will track, wherever possible, the incremental revenue generated from our publicity efforts. We anticipate at least 40 percent of total sales will be generated directly from our publicity, journal advertising, and name recognition, 20 percent from follow-up of direct referrals from Dragon Systems, 20 percent from "cold calls" of target organizations, and 20 percent of sales from indirect referrals and "word-of-mouth" referrals.

Our objective, at this time, is to propel the company into a prominent marketposition in the areas of voice recognition and high-tech office solutions. We feel that within 3 years Ellipse Technologies will be in a suitable position for further expansion or profitable acquisition.

Assumptions

The cash flow analysis shown in Appendix A shows revenues based on the first 4 months of operation. It also delineates revenues from a network maintenance contract with Benjamin County Central Schools that includes contractually specified service revenue and a moderate amount of hardware sales revenues.

After the first few months of administrative setup, sales are expected to increase, and then grow at a rate of approximately 5% per month for hardware and 10% per month for the software. This is expected due to greatly increased expenditures for advertising and promotion, coupled with national expectations of the growth of certain technologies.

Capital Requirements

According to the opportunities and requirements for Ellipse Technologies described in this business plan, and based on what we feel are sound business assumptions, our first year outside capital requirements are for $16,000.

The loan will be used to purchase a high-end demonstration computer, and to finance an initial thrust in advertising, marketing, and promotion beyond levels spent in the past.

Exit/Payback

The increase in profits generated by Ellipse Technologies sales will allow us to have the funds to repay the loan in 24 months.

Ellipse Technologies enjoys an established track-record of excellent sales, support, and service for our customers. Their expressions of satisfaction, encouragement, and testimonials are numerous, and we intend to continue our advances in the voice recognition marketplace with even more unique and effective products and services.

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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

More on Technology

How To Write a Business Plan for Reseller in 9 Steps: Checklist

By henry sheykin, resources on reseller.

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

Are you considering starting your own reseller business? As the most popular business model in the US, dropshipping offers resellers a chance to earn profits without the hassle of inventory or shipping. In fact, according to recent statistics, the global dropshipping market is projected to reach a staggering $557.9 billion by 2025 , growing at a CAGR of 28.8% . With such incredible potential, it's crucial to have a solid business plan in place to ensure your success. In this article, we will guide you through the 9 essential steps to help you write a comprehensive business plan for your reseller venture.

Identify Target Market

One of the crucial steps in writing a business plan for a reseller is identifying the target market. This involves understanding and defining the specific group of customers or businesses that will be likely to purchase the products or services being offered.

1. Define your ideal customer: Start by creating a profile of your ideal customer. Consider factors such as age, gender, location, interests, and purchasing behavior. This will help you tailor your marketing strategies and product offerings to meet their specific needs and preferences.

2. Conduct market segmentation: Divide your target market into specific segments based on characteristics such as demographics, psychographics, and behavior. This will enable you to develop targeted marketing campaigns and reach the right customers with the right messaging.

3. Research market demand: Determine whether there is a demand for the products or services you plan to resell within your target market. Analyze industry trends, customer preferences, and market data to assess the viability of your business idea and identify potential opportunities.

Tips for identifying your target market:

• Utilize online surveys or questionnaires to gather insights and feedback from your potential customers.
• Observe and engage with your target market on social media platforms and online communities to understand their needs and preferences.
• Monitor industry reports and publications to stay updated on market trends and changes.
• Consider conducting focus groups or interviews with a sample of your target customers to gain deeper insights.

By identifying your target market, you can effectively tailor your business plan and strategies to meet the needs and preferences of your potential customers, increasing the likelihood of success as a reseller.

Conduct Market Research

Market research plays a crucial role in a reseller's business plan, as it provides valuable insights into the target market, competition, and customer preferences. By understanding market trends and customer demands, resellers can make informed decisions and develop strategies that will set them apart from their competitors.

1. Define your target market: Start by identifying the specific demographic, geographic, and psychographic characteristics of your ideal customers. This will help you tailor your marketing efforts and product selection to meet their needs and preferences.

2. Analyze market trends: Stay informed about the current trends and developments in the reselling industry. This includes understanding the demand for certain products or services, tracking changes in consumer behavior, and identifying emerging market opportunities.

3. Research competition: Study your competitors' strategies, pricing models, product offerings, and customer reviews. This will help you identify gaps in the market and determine how you can differentiate yourself to attract customers.

4. Understand customer preferences: Conduct surveys, interviews, or focus groups to gather insights into customer preferences, pain points, and buying habits. This information will assist you in selecting the right products or services to resell and tailoring your marketing messages to reach your target audience effectively.

• Make use of online tools, such as Google Trends and social media listening platforms, to gain insights into popular products and customer sentiment.
• Consider exploring niche markets that are underserved or have less competition, as this can provide lucrative opportunities for resellers.
• Keep track of industry reports, trade publications, and industry conferences to stay up to date with the latest market trends and developments.

Analyze Competition

When starting a reseller business, it is crucial to thoroughly analyze the competition in your target market. This step will help you understand the competitive landscape and make informed decisions about your business strategy. Here are some key points to consider:

• Identify direct competitors: Research and create a list of businesses that offer similar products or services in your niche. Look for both local and online competitors to get a comprehensive view of the market.
• Evaluate their strengths and weaknesses: Analyze your competitors' products, pricing strategies, marketing efforts, and customer reviews. Identify what they do well and where they may be lacking to find potential opportunities for your reseller business.
• Understand their target market and positioning: Determine who your competitors are targeting and how they differentiate themselves in the market. This information will help you identify gaps or niches that you can target effectively.
• Assess market saturation: Consider the saturation level of your market and the number of competitors already operating. If the market is already crowded, think about how you can differentiate your business to stand out.

Tips for analyzing competition:

• Study competitor websites: Explore their websites to understand their product offerings, customer experience, and overall branding.
• Follow them on social media: Monitor your competitors' social media accounts to gain insights into their marketing strategies and engagement with customers.
• Read customer reviews: Look for customer feedback and reviews about your competitors' products or services. This will give you an understanding of their strengths and weaknesses from the perspective of consumers.
• Attend industry trade shows or events: Participating in industry events can provide valuable networking opportunities and allow you to observe your competitors' presence and interactions with potential customers.

By thoroughly analyzing your competitors, you can gain valuable insights that will inform your own business decisions. This knowledge will help you identify competitive advantages, distinguish your reseller business, and develop strategies to capture your target market effectively.

Determine The Products Or Services To Be Resold

When starting a reseller business, it is crucial to determine the products or services you will be reselling. This decision will heavily impact your target market, competition, pricing strategy, and overall success. Here are some important steps to consider when determining the products or services to be resold:

• Conduct market research: Research market trends, consumer preferences, and demand for various products or services. Identify gaps in the market that you can fill with your offerings.
• Assess your expertise and interests: Consider your knowledge, skills, and interests. Choosing products or services that align with your expertise and interests can give you a competitive advantage and enhance your passion for the business.
• Evaluate profit potential: Analyze the profit margins, competition, and potential demand for the products or services you are considering. Ensure that they offer a reasonable profit potential to make your business financially sustainable.
• Consider the target market: Determine who your target audience is and what products or services they are seeking. Catering to a specific niche or addressing a particular customer need can help you stand out in the market.
• Research supplier options: Explore potential suppliers or manufacturers who can provide you with the products or services you plan to resell. Look for reliable partners who offer high-quality products and competitive pricing.
• Stay updated with market trends and evolving customer preferences.
• Consider diversifying your product or service offerings to appeal to a broader customer base.
• Test different products or services through pilot programs or small-scale trials before committing to a full-scale reselling operation.
• Keep an eye on your competition's products or services to differentiate yourself and offer unique value to customers.

By carefully determining the products or services to be resold, you lay a strong foundation for your business plan and increase the likelihood of attracting customers and achieving profitability. Take the time to thoroughly assess your options and make informed decisions that align with your goals and target market.

Develop A Pricing Strategy

Developing a pricing strategy is a crucial step in creating a successful reseller business. Your pricing strategy will determine how much profit you can make from each sale and will also impact your competitiveness in the market. Here are some important considerations to keep in mind:

• Understand your costs: Before setting the price for your products or services, it's essential to have a clear understanding of all the costs involved. This includes not only the cost of acquiring the products from your suppliers but also any additional expenses such as shipping, packaging, and marketing.
• Research market prices: Conduct thorough market research to determine the prices that other resellers are charging for similar products or services. This will give you an idea of the current market rates and help you position yourself competitively.
• Consider your target market: Different customers may be willing to pay different prices based on factors such as perceived value, brand reputation, and convenience. Take into account the preferences and purchasing power of your target market to set your prices accordingly.
• Factor in your desired profit margin: Determine the profit margin you aim to achieve for each sale. This will depend on various factors, including your business goals, competition, and overhead costs. Calculate the price that allows you to generate the desired profit while remaining attractive to customers.
• Consider offering tiered pricing options to cater to different customer segments.
• Regularly reassess and adjust your pricing strategy based on market trends, costs, and customer feedback.
• Offer value-added services or bundles to justify higher prices.

By carefully developing a pricing strategy, you can strike a balance between profitability and competitiveness, maximizing your chances of success as a reseller.

Create A Marketing Plan

A solid marketing plan is essential for the success of your reselling business. It helps you attract customers, build brand awareness, and differentiate yourself from competitors. Here are some important steps to consider when creating your marketing plan:

• Identify your target audience: Determine who your ideal customers are and understand their preferences, needs, and buying behaviors. This will guide your marketing efforts and help you tailor your messages effectively.
• Define your unique selling proposition (USP): Identify what sets your reselling business apart from the competition. This could be your niche market focus, exceptional customer service, or exclusive product offerings. Highlight your USP in all your marketing communications.
• Choose the right marketing channels: Based on your target audience and budget, select the most effective marketing channels to reach your customers. This could include social media platforms, email marketing, content marketing, search engine optimization (SEO), or paid advertising.
• Create compelling content: Develop engaging and informative content that appeals to your target audience. This could include product descriptions, blog posts, videos, or customer testimonials. Use Hemingway App to ensure your content is clear, concise, and free of grammatical errors.
• Build an online presence: Establish a professional and user-friendly website or e-commerce store to showcase your products and make it easy for customers to purchase from you. Optimize your website for search engines to increase visibility.
• Utilize social media: Leverage social media platforms such as Facebook, Instagram, Twitter, or LinkedIn to engage with your target audience, share valuable content, and promote your products. Consistency is key, so develop a social media posting schedule.
• Track and measure results: Regularly analyze the effectiveness of your marketing efforts. Use tools like Google Analytics to monitor website traffic, email marketing software to track open and click-through rates, and social media analytics to measure engagement. Adjust your marketing strategies based on this data.
• Research your competitors' marketing strategies to gain insights and identify areas where you can differentiate yourself.
• Consider offering special promotions, discounts, or loyalty programs to incentivize customers to choose your reselling business over competitors.
• Collaborate with influencers or bloggers in your niche to increase brand exposure and reach a wider audience.
• Encourage customer reviews and testimonials as social proof to build trust and credibility.
• Stay updated on industry trends and adapt your marketing strategies accordingly to stay ahead of the competition.

Assess Funding Options

When starting a reselling business, it is essential to assess your funding options to ensure you have the necessary capital to support your venture. Here are some key steps to consider:

• Evaluate personal savings: Assess your personal financial situation and determine if you have any savings available to invest in your business. This can help you get started without relying heavily on external funding sources.
• Research loans: Look into different loan options, such as small business loans or lines of credit, offered by banks, credit unions, or online lenders. Compare interest rates, terms, and repayment plans to find the best fit for your needs.
• Seek investors: If you require a larger amount of capital, consider seeking out potential investors who might be interested in supporting your reselling business. Prepare a solid business plan and pitch to showcase your idea and potential returns.
• Consider crowdfunding: Crowdfunding platforms can be a unique way to raise funds for your reselling business. Create a compelling campaign and offer attractive incentives to encourage individuals to contribute to your cause.
• Explore grants and government programs: Research available grants and government programs that support small businesses. These can provide financial assistance or resources specifically tailored to reselling ventures.
• Prepare a detailed financial projection: Having a comprehensive financial projection can help you determine the exact amount of funding you need and showcase your potential profitability.
• Build a strong credit history: Maintain a good credit score by paying bills on time and using credit responsibly. This can increase your chances of securing favorable loan terms.
• Consider bootstrapping: If possible, bootstrap your reselling business by reinvesting profits and minimizing expenses. This approach allows you to maintain control over your business and limit external debt.
• Seek professional advice: Consult with financial advisors, accountants, or business mentors who can provide guidance on funding options and assist with financial planning.

Define Legal And Regulatory Requirements

When starting a reseller business, it is crucial to understand and comply with the necessary legal and regulatory requirements. Failing to do so can result in fines, penalties, or even the closure of your business. Here are some important steps to consider:

• Business Registration: Determine the legal structure of your reselling business, such as sole proprietorship, partnership, or LLC. Register your business with the appropriate local, state, and federal authorities.
• Tax Obligations: Consult with a tax professional to ensure you understand your tax obligations as a reseller. This includes obtaining the necessary tax identification numbers and understanding how sales tax applies to your business.
• Permits and Licenses: Research and obtain any required permits or licenses specific to your reselling business. This may include local business licenses or industry-specific licenses.
• Product Regulations: Understand any product-specific regulations, such as safety standards, labeling requirements, or import/export restrictions. Ensure that the products you plan to resell comply with these regulations.
• Intellectual Property: Familiarize yourself with intellectual property laws and ensure that the products you resell do not infringe on any trademarks, copyrights, or patents.
• Consider consulting with an attorney specializing in business law to ensure you fully adhere to all legal requirements.
• Stay updated on any changes or updates to relevant regulations or licensing requirements in your industry.
• Keep detailed records of your compliance efforts, including permits, licenses, and any certifications you may obtain.

Establish Key Partnerships Or Supplier Relationships

One of the key steps in writing a business plan for a reseller is to establish key partnerships or supplier relationships . These partnerships are integral to the success of your reselling business as they will provide the products or services that you will be selling to your customers.

When looking to establish these relationships, it is important to thoroughly research and vet potential suppliers. You want to ensure that they are reliable, offer quality products, and have a good reputation within the industry. Look for suppliers who have experience working with resellers and understand the dropshipping model.

Additionally, consider the niche or target market that you have identified in your business plan. Look for suppliers who specialize in the types of products or services that cater to your target market. This will help you offer unique and in-demand products to your customers.

Once you have identified potential suppliers, reach out to them and initiate a dialogue. Ask questions about their process, shipping times, return policies, and any other concerns you may have. It is important to establish a clear line of communication with your suppliers to ensure smooth operations and customer satisfaction.

Furthermore, consider establishing mutually beneficial partnerships with your suppliers. This could include negotiating pricing terms, securing exclusive product lines or discounts, or even collaborating on marketing efforts. Building strong relationships with your suppliers can lead to long-term success and growth for your reselling business.

• Regularly communicate with your suppliers to stay updated on inventory availability and any changes in their operations.
• Consider establishing backup suppliers or diversifying your product range to mitigate any potential risks or disruptions in the supply chain.
• Build trust and reliability with your suppliers by promptly paying invoices, respecting their terms and conditions, and providing feedback on their products and services.
• Continuously evaluate and assess your supplier relationships to ensure they align with your business goals and objectives.

In conclusion, writing a business plan for a reseller in the US, particularly for a dropshipping model, requires careful consideration and strategic planning. By following the nine steps outlined in this checklist, resellers can effectively identify their target market, analyze competition, develop pricing and marketing strategies, and establish key partnerships. Successful implementation of these steps will help resellers navigate the challenges of the industry and achieve profitability in the competitive market.

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Computer hardware reseller business plan

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Computer Business Plan Template & Guidebook

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

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

• How to Start a Profitable Computer Business [11 Steps]
• 10+ Best & Profitable Computer Business Ideas [2023]
• 25 Catchy Computer Business Names:
• List of the Best Marketing Ideas For Your Computer Store:

How to Write a Computer Business Plan in 7 Steps:

1. describe the purpose of your computer business..

The first step to writing your business plan is to describe the purpose of your computer business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

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

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

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

2. Products & Services Offered by Your Computer Business.

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

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

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

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

3. Build a Creative Marketing Stratgey.

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

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

Target market

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

Customer base 

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

Product or service description

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

Competitive analysis

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

Marketing channels

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

Form an LLC in your state!

4. Write Your Operational Plan.

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

In it, you should list:

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

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

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

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

5. Management & Organization of Your Computer Business.

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

This section will cover all of the following:

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

6. Computer Business Startup Expenses & Captial Needed.

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

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

Startup Costs

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

Running & Operating Costs

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

Marketing & Sales Expenses

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

7. Financial Plan & Projections

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

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

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

Frequently Asked Questions About Computer Business Plans:

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

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

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

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

Can you write a computer business plan yourself?

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

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

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

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

How to Start a Reselling Business

Starting a reselling 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 reselling business.

Importantly, a critical step in starting a reselling 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 Reselling Business :

• Choose the Name for Your Reselling Business
• Develop Your Reselling Business Plan
• Choose the Legal Structure for Your Reselling Business
• Secure Startup Funding for Your Reselling Business (If Needed)
• Secure a Location for Your Business
• Register Your Reselling 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 Reselling Business
• Buy or Lease the Right Reselling Business Equipment
• Develop Your Reselling Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Reselling Business
• Open for Business

1. Choose the Name for Your Reselling Business

The first step to starting a reselling 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 reselling 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 reselling business.

2. Develop Your Reselling Business Plan

One of the most important steps in starting a reselling business is to develop your business plan. The purpose of a business plan is to ensure that you fully understand your market and your business strategy. 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 reselling business.
• Company Overview – this section tells the reader about the history of your reselling business and what type of reseller business you operate. For example, are you a distributor, wholesaler, retailer, or a dropshipper?
• Industry Analysis – here you will document key information about the reselling 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 market are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products 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 reselling 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 reselling 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 reselling business.

Next you need to choose a legal structure for your reselling 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 reselling 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 business owners. It is an agreement between two or more people who want to start a reselling 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 reselling 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 reselling 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 reselling 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 Reselling Business (If Needed)

In developing your reselling 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 reselling 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 reselling business that they believe has high potential for growth.

5. Secure a Location for Your Business

There are a few things to consider when looking for a location for your reselling business. You’ll want to think about the type of products you’ll sell, how much space you’ll need, and your target customers. 

Suppose you’re selling products that take up a lot of room, like furniture or large appliances. In that case, you’ll need a spacious location to display your items. You can get away with less space if you sell smaller items, like clothes or jewelry.

Think about the type of customers you want to attract. If you’re targeting busy professionals, you may prefer a high-traffic area with tons of foot traffic. If you’re targeting stay-at-home moms, a location near a grocery store or shopping mall might be more appropriate.

Once you’ve thought about these factors, start touring different locations and see which one feels the best for you. Talk to the landlord or property manager and get a feel for how they do business. If you’re comfortable with them, sign a lease and set up your new reselling business.

6. Register Your Reselling 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 reselling 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 reselling 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

A reselling business requires some licenses and permits that may vary depending on the location and the products and services. For example, you may need a business license, a seller’s permit, and a zoning permit. Contact your local licensing agency or business licensing office to find out what licenses and permits you need.

10. Get Business Insurance for Your Reselling Business

The type of insurance you need to operate a reselling business will depend on the scope of the operation. 

Some business insurance policies you should consider for your reselling 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 Reselling Business Equipment

To start a reselling business, you will need to invest in some essential equipment. This equipment includes a computer, printer, scanner, and a reliable internet connection. Once you have these basics in place, you can start sourcing products to sell.

12. Develop Your Reselling Business Marketing Materials

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

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your reselling 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 reselling business website provides potential customers with information about the products 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 platforms will help customers and others find and interact with your reselling business.

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

To start a reselling business, you will need access to software that can help you manage your inventory and orders. A popular option for this is Shopify, which allows you to create a custom store and manage your products, orders, and customers from one central location. Additionally, you will need a payment processing solution to accept payments. 

14. Open for Business

You are now ready to open your reselling 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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How to Start a Reselling Business FAQs

Is it hard to start a reselling business.

There is no one-size-fits-all answer to this question, as the difficulty of starting a reselling business will vary depending on the products you sell and the market you target. However, some general advice for those considering starting a reselling business is to do some research on the best reseller business ideas , and be prepared to put in the hard work required to make your business a success.

How can I start a reselling business with no experience?

If you're looking to start a reselling business with no experience, the best way is to sell online. You can create an online business or join an affiliate program. Another option is to become a dropshipper, which doesn't require any inventory or upfront costs. You can also start a social media reselling business by finding products to sell on platforms like Instagram or Facebook. The key is to find a niche that you're passionate about and start marketing to your target audience.

What type of reselling business is most profitable?

The most profitable type of resale business is one that specializes in a particular product or niche. This allows you to become an expert in your field and provide valuable information and products to your customers. It also makes it easier to market your business and attract customers.

How much does it cost to start a reselling business?

The cost to start a reselling business varies based on several factors, including the type of products or services, the size of your business, and the location. However, a ballpark estimate is around $1,000-$10,000. 

Startup costs may include the cost of inventory, marketing, and other necessary expenses. Of course, you can always start small and scale your business as needed. For example, you may only need to spend a few hundred dollars to get started if you plan to sell products that you already have on hand. Whatever the case may be, it's important to do some preliminary research and plan accordingly to ensure that your business can be successful.

What are the ongoing expenses for a reselling business?

There can be many ongoing expenses for a reselling business. Some of the most common ones include inventory costs, shipping supplies and handling fees, and advertising and marketing expenses.

How does a reselling business make money?

A reselling business makes money by buying products at a lower price and then selling them for a higher price. This can be done in a number of ways, such as through thrift stores, flea markets, garage sales , or through online resale business and marketplaces, auctions, or retail stores. 

Is owning a reselling business profitable?

There are many reasons reselling can be a profitable business . One reason is that there is a large market for goods and services, and people are always looking for ways to save money. Additionally, more people are looking to buy used items versus new ones as the trend towards environmentally conscious shopping rises. Finally, opportunities to source products at low prices can increase profitability potential for reselling businesses. 

Why do reselling businesses fail?

There are many reasons resale businesses fail. One reason is that it can be difficult to compete with larger businesses who have more resources. Additionally, it can be hard to make a profit if the business is not able to purchase products at a low price and sell them for a higher price. Finally, the business owners may not have a good reselling business model or the skills or knowledge to make it successful. They may not know how to market their products effectively, or they may not have a good understanding of what customers want. As a result, they end up losing money and eventually have to close down.

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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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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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Computer Repair Business Plan

Start your own computer repair business plan

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.">

Opportunity.

We depend on our computers. Finding reliable expertise is a problem for anybody who doesn’t have a direct channel via a company, employer, friend, or relative. We solve that problem.

PC Repair will provide computer and technical consulting (repairs, training, networking and upgrade service) to local small businesses as well as home PC users. The company will focus on marketing, responsiveness, quality, and creating and retaining customer relations.

The very nature of the computing industry, with its extraordinary rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues. In town, the majority of potential customers are dissatisfied with existing options, creating an attractive niche for an innovative start-up. Small business PC users will provide the majority of our business revenue.  Business Week  expects the computing industry to grow at a rate of 12% and the processor speeds to continue to expand for years to come, providing a rich resource for sales.

PC Repair has decided to focus mainly on the small business market, as these customers typically don’t have a full-time IT person, but have full-time IT needs. PC Repair will offer an affordable, on-demand service for these customers. We can also offer maintenance agreements that generate additional monthly income. For our residential customers, we will offer a very affordable and helpful service with a very flexible schedule to meet their needs. Our target market will focus on Ramsford-on-Bitstream and the surrounding areas. Market research indicates there is an abundance of business for a small company such as PC Repair.

Competition

Secondary market research shows computer service customers tend to be very loyal to providers that do good work and satisfy their needs. An analysis of PC Repair’s main competitors shows no overwhelming strengths that would be significant barriers to entry into the market, as our local competitors have serious weaknesses.

The computer maintenance and repair industry is fragmented, with a few large, national players and hundreds of small, local stores. While most computers are actually repaired in-store, near the customer, parts for the repair come from major manufacturers and distributors; delays in receiving necessary parts can significantly slow down the repair process. Large chains have solved this problem by keeping vast amounts of inventory in stock at all times, while local stores offer customers the trade-off of personal interaction and trust that may make up for some delay.

PC Repair has established a relationship with a local distributor to do rapid special-ordering; although this capability is more expensive than normal channels, it will enable us to quickly establish a reputation as efficient and responsive to customer needs, particularly for our small business users. We will leverage this customer loyalty into great word of mouth marketing and steady growth.

PC repair will set the standard for on-site computer solutions through fast, on-site service and response. Our customers will always receive one-on-one personal attention at a very affordable price. Our customers will receive the highest quality of customer service available. Our employees will receive extensive training, a great place to work, fair pay and benefits, and incentives to use their own good judgement to solve customers’ problems.

Expectations

With our good cost control, we will see a modest, yet comfortable, net profit the first year, even after moving into a leased space and hiring additional technicians. We lose money slightly in the second and third year, but we are paying the owner’s salaries and the loss is covered in cash flow. And there will be tax benefits. We do expect to be profitable for the long term.

Financial Highlights by Year

Financing needed.

We will be getting $43,000 to start. That will be a $20,000 loan and $23,000 from the owner.

Problem & Solution

Problem worth solving, our solution.

Pc Repair will set the standard for on-site computer solutions through fast, on-site service and response. Our customers will always receive one-on-one personal attention at a very affordable price. Our customers will receive the highest quality of customer service available. Our employees will receive extensive training, a great place to work, fair pay and benefits, and incentives to use their own good judgement to solve customers’ problems.

Target Market

Market size & segments.

Market Segmentation

The existing computer service market is so extensive that categorizing it is rather difficult. We have broken our potential market down into two groups, based on their needs: home PC users and small business clients.

Home PC User Our home PC user market includes non-tech-savvy residents of the local area (15 mile radius), generally between the ages of 30 and 70, with at least one home computer. We are not expecting income from users below 30, who tend to be more comfortable with technology and willing to attempt repairs and upgrades on their own, without seeking professional assistance. Such home users generally own a computer to do email, play games, write letters, scan and print photos, and occasionally to do bookkeeping or taxes. Home PC users with more sophisticated applications generally have enough tech savvy, from tech experience at work, to do their own repairs and upgrades. Their hardware needs will include the computer itself, monitors, keyboards, mouse, printer, and scanner.

This group is growing slightly faster than the overall population growth in our area, in part due to the increasing demand for computers among retired people and young families, about 7% a year.

Small Business Users Small business users will provide the majority of our business revenue. The small business market will be defined as customers within a 15 mile radius, with 2 or more computers or a network which they use for business purposes at least 25% of the time. Their business use may include minor usage, such as updating a business website for a brick-and-mortar store, keeping the books, designing graphics or ad campaigns, and writing copy for press releases. It may also be more extensive, incorporating inventory tracking, POS systems, customer databases, online product/service delivery, or product development. The more intensive their computer usage for business, the more critical it is to them that their technology work well and reliably, and that quality repairs and support are available in a crisis. Their hardware needs will include the same items as home users, plus servers, backup systems, data storage, and wireless networking.

The portion of the small business market we are targeting is growing at around 2% a year.

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ComputingNet  magazine recently reported on the substantial need for timely and cost-effective computer upgrades and repairs in this region; Jack Hacker has seen this market need in person, as frustrated clients waited for days or weeks for their critical components to be returned to full capacity, with no inexpensive alternative to the existing computer repair shops. All of our clients need technical assistance, but we are also selling peace of mind: our clients will know that friendly, efficient help is just a phone call away. As more and more companies switch their support services to automated call centers or touch-tone menus, the simple reassurance of hearing another human voice on the phone within a few rings is immeasurable. Even better is knowing that within a few hours, someone will show up and take care of their problem.

Both the software and hardware side of the computer industry continue to turn out new and revised computer components at alarming rates. For PC Repair this means job security well into the future. As reported by the  Wall Street Journal , there seems to be no end to the development of the computer market.  Business Week  expects the computing industry to grow at a rate of 12% and the processor speeds to continue to expand for years to come.

Current alternatives

Customers choose computer repair and assistance services based on reputation, previous experience, and price. They may choose to return to a mediocre provider with whom they’re familiar, rather than try out a new unknown company about whom they’ve heard nothing. Large stores, especially the service departments of national chains, have a great advantage simply in their affiliation with an established brand. Establishing our brand identity and a great reputation in the first few months is critical to our success. Once we have broken in to the local market, our great service will turn new clients into permanent clients.

Our services will be second to no one and our prices will be very reasonable for the high quality service we offer. By providing superior service, word of mouth alone will bring in many new clients. The satisfaction our consumers find will keep them coming back. There are two main competitors for the computer upgrade and repair business in this area:

• Competitor A . They are a well established provider of computer upgrades and services, and do quick work. However, they have a high staff turnover, a young and inexperienced staff, and are more interested in selling new components than in maintaining existing machines or finding custom solutions. They do not offer any kind of pick-up and drop-off service, and do not offer on-site help. They really only offer hardware support.
• Competitor B . Smaller and less known then A, B provides many services for residents living in east and south parts of town. They are more willing to spend time with a client, figuring out exactly what his or her needs are, and suggesting new options than competitor A. However, they have an inefficient ordering system and an unkempt shop, which deters potential customers and can turn existing customers to the competition. They also do not offer on-site services, although they are considering instituting a trial pick-up/drop-off service. They are in the best position to copy our innovations and steal customers, but their management is complacent and may not respond to competition.

Both of these companies charge rates in excess of PC Repair; we will be able to attract the price-sensitive market without much work. 

Our advantages

Our advantages are: 

• Quick response : PC Repair will provide same day and after hours service. 
• A flat rate policy : This undermines the competition, who charge by the hour. The pricing has been set to reflect the average amount of time it takes to perform the task. With this strategy we can undercut most competitors and gain local market power.
• On-site and pick-up/drop-off services : This will minimize the time and effort a customer needs to put into dealing with his computer problem.
• Suprisingly, our small size  is an advantage: customers will recognize me (and future employees), and will know they will get the same great service every time they call.

Keys to Success

Our keys to success are: 

• Establishing a brand identity and generating brand recognition through marketing. 
• Responsiveness: being an on-call computer paramedic with fast response time.
• Quality: getting the job done right the first time, offering 100% guarantee.
• Relationships: developing loyal repeat customers–retainers.

Marketing & Sales

Marketing plan.

Our marketing strategy will aggressively exploit our competitors’ weaknesses. During the start-up phase, we will run large ads in the business section of the local newspaper, asking, "Are you fed up with poor customer service for your computer needs?" These ads will focus on our advantages, including on-site service, competitive rates, and quick response and turn-around times. They will announce our opening date, and include a coupon for free diagnostic service for the first 20 customers.

We will follow up on these opening ads with a smaller direct-marketing campaign to small business owners, with lists drawn from the local Chamber of Commerce. Jack will use his contacts with business customers from his years as a manager to create a "buzz" about this new business.

We will continue periodic advertisements, including several promotions (discounts, free diagnosis, etc.) throughout the first year. We expect a small but steady response from home PC users who see our ads elsewhere, but will also run monthly ads in sections other than the business one.

We will offer a promotion during the first 90 days of business to generate business traffic and word of mouth. Our promo is Spyware removal on any desktop PC for $70 including tax and software. Spyware is a huge problem for a lot of residential and small business customers, and the offer should draw a lot of interest.

Our marketing strategy will generate customer inquiries. We will close the deals by offering an outstanding service and a very reasonable price. Happy customers generate repeat business and word of mouth. Our toll free number is operational 24 hours a day, seven days a week, and from 8am to 9pm, I will be available to answer calls. At other times, or when I am on the phone, an answering service we have hired will catch callers and give them an estimated wait time for a call-back; this is another step towards delivering a complete solution to our customers.

Sales forecast figures are based on industry figures for the typical growth of a start-up and reflect repeat business generated through meeting customer needs.

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are: 

• engagements taken
• incidents addressed
• repeat business
• # of tweets and retweets 
• # of facebook likes and views 
• # of website views 
• training 
• customer reviews 
• appt time tracking and locations

Ownership & Structure

The owner, Jack Hacker, has 10 years of experience in the fields of technical support, networking, and computer training and repair. Jack has also spent the last three years as the manager of a custom computer building and repair store, and understands the computer needs of small businesses.

Management team

PC Repair will be owned and managed by Jack Hacker. Jack has 10 years of experience in the fields of technical support, networking, and computer training and repair. Jack has also spent the last three years as the manager of a custom computer building and repair store, and understands the computer needs of small businesses. Jack is adept at managing his time, and at quickly responding to multiple customer calls and needs.

For the first three months, Jack will be in charge of all aspects of the business. In the third month, when another tech is hired, Jack will shift some of his energy from directly responding to customer needs, to training and managing others to do this work effectively. Jack will maintain direct control over inventory ordering and bookkeeping, and will try to do as many of the on-site calls as possible himself. Part of our brand recognition strategy is to identify PC Repair with Jack’s efficiency, friendliness, and technical expertise. The easiest way to associate the two is for Jack to be a major part of many customers’ experiences with us. He will delegate technical repairs later in the year to the techs working in the leased office space, and will also train them in his method of direct phone support.

Jack has worked extensively with computer technicians and support staff in the past, and knows that they work best when given free rein within a set of mutually-agreed-upon guidelines. The first week of each tech’s employment will be dedicated to helping them understand PC Repair’s guidelines:

• the customer needs help, and we’re here to help them;
• the customer is frustrated, upset, or confused – but that doesn’t make the customer a problem;
• the customer needs reassurance as well as solutions.

Within this framework, the techs can solve the customer’s problem the best way they see fit – Jack is not a micro manager

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

PC Repair’s customer base would fluctuate if there was a recess in the economy or other extenuating circumstances that pertain directly to consumer or industry behavior. However, given the steady increase in computer users despite the recent recession, we assume that sales forecasts are unlikely to be dramatically altered by economic events. The table below shows some of our other assumptions

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Our Startup Funds are: 

• Website $350
• Business Cards $100
• Insurance $150
• Uniforms $300
• Advertisement $1,000

TOTAL START-UP EXPENSES $3,000

Sources of Funds

Jack Hacker will put in $23,000 to start; and will take out a $20,000 loan.

Projected Profit and Loss

Projected balance sheet, projected cash flow statement.

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