IMS
PROJECT
Computer Sales and Services Centre
Waqar Chauhan
5/21/2012
Table of Contents
Executive Summary………………………………………….…………………….page#3
Objectives Mission Key to Success
Company Summary………………..……………………………………………….page#7
Company Ownership Start up Requirements Start up Funding
Services………………………………..………………………………………………..page#10
Market Analysis…………………………….………………………………………..page#12
Market Segmentation
Strategy and Implementation Summary……………….…………………page#14
Competitive Edge Market Strategy Sale Strategy Sales forecast Milestones
Management Summary………………………………………………………….page#18
Personnel Plan…………..………………………………………………………….page#19
Conclusion…………………………………………………………………………….page#20
Executive Summary:
Computer sales and service center will be a whole sale centre whose main product will be to
provide all the latest model computers, laptops, and all the accessories related to them. This
centre will also deal in all the branded desktop computers and laptops. This centre will also
provide all the original software like windows, office, antivirus, games, media players and many
more.
As this is also a service centre so it will provide all the technical consulting which includes
repair, training, networking and upgrade service to local small businesses as well as home
PC(personal computers) users. The company will focus on marketing, responsiveness, quality,
and creating and retaining customer relations.
Computer sales and service will keep one or two pieces of each item initially and will provide
the item in bulk on order. As the company sale will increase then the company will hire a store
room and will keep the products in bulk. The company will hire one technician initially as the
demand of our services will increase we will hire more technicians and skilled persons to provide
all the services at the customers door step.
The Market:
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.
The company will initially provide services to home users and 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 the surrounding areas. Market research indicates there is
an abundance of business for a small company dealing in computer services.
Importance of computer repair shop can be understood through this graph
Start-up Funding and Financials:
To get PC Repair started the owner is providing cash and assets. We are also seeking a short-
term loan, to be secured with the owner's home equity, and repaid within two years. Our
conservative sales forecast, based on industry research within the local area, company sales in
year one, steadily increasing through year two. With good cost control, we will see a modest, yet
comfortable, net profit the first year, even after hiring a store and additional technicians.
1.1 Objectives:
To provide all kind of Hardware and Software related to computer.
To provide latest models in market of desktop computers and laptops.
To provide the best service available to the community at an affordable price.
To install networking setups in institutions and organizations.
To provide services being an on-call computer paramedic with fast response time.
To generate customer satisfaction at high priority.
1.2 Mission:
Our goal is to set the standard for computer solutions through fast, 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 judgment to solve customers' problems.
1.3 Keys to Success:
Following are the main keys to success that will be followed by the company:
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
Company Summary:
Computer sales and service centre is a small Corporation located in Hafeez Centre Lahore,
owned by Waqar Chauhan. With a small 2-year loan, the company will grow in one year from
small number of men, small office based repair shop to a profitable, and much person business in
a bug shop along with a store. We will build the necessary infrastructure to quickly and
efficiently respond to customer’s computer needs, guaranteeing speedy, friendly, competent, and
cost-effective technical support. We will provide latest machines in the market at low margins
then our competitors.
2.1 Company Ownership:
Computer sales and service centre was initially envisioned as a sole proprietorship in a shop
rented by the owner. However, recent feedback from our marketing outreach has suggested a
much higher sales potential than originally imagined, and the company has been reformed as a
big Corporation. This change will provide additional legal protection for the owner, and will also
streamline the financial operations of the company as we expand the personnel to 5 within the
next two years, lease a separate space for offices, and purchase company vehicles and cell
phones.
The owner, Waqar Chauhan, has 5 years of experience in the fields of technical support,
networking, and computer training and repair. Waqar 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.
2.2 Start up Requirements:
Total start-up expenses include initial expenses for establishing our website, setting up the
business, and doing our pre-opening advertising. Exact allocations are shown in the table.
Sr # Start up Expenses Rupees
1 Shop Hired Rs 75000
2 Shop Decorations Rs 100000
3 Tax Id, Sales tax license Rs 15000
4 Website Rs 5000
5 Advertisement Rs 10000
6 Accessories Rs 300000
7 Computers and Laptops Rs 350000
8 Telephone line, Wifi, Broadband Rs 2500
9 Employees (technician with petrol allowance, helper) Rs 20000+10000
2.3 Start up Funding:
Following is the start up funding details:
Total Expenses: Rs 887500
Owners: Rs 500000
Bank Loan: Rs 387500
Chart Title
loan investment
Services:
Computer sales and service centre will provide all the latest desktop computers, laptops and all
the accessories related to the computers. Online shopping is also provided along with home
delivery.
The company will offer computer repairs, training, and networking and upgrade service to
clients in two major categories: home PC users and small business users. As PC repair and the
client demands grow, we will offer software development to our business clients.
From the very first day, we will offer on-site repair and consulting services, so that our clients
don't need to take time out of their busy days to haul a computer in to our workshop. This is the
single biggest frustration Waqar has seen among small business owners needing computer help.
Much of our diagnostic equipment is portable, and we will remove a PC to our workshop only
when the problem requires more detailed diagnosis or repair. We will also offer free pick-up
and delivery of PCs needing repair. To meet the growing demand for this service, we will
purchase a company vehicle in the third month.
We will also offer extended maintenance contracts, so that business clients can deal with
technical support and repair needs as a single line-item expense, rather than having to plan for
unexpected crashes and problems with a rainy-day fund they may never use. Maintenance
contracts yield a high gross margin for us, and provide peace of mind for the customer.
We will offer limited software support (installation and compatibility issues), and focus on
hardware and networking support - this is a vital distinction, since software is evolving much
more rapidly than hardware, and our clients will have such diverse software needs that we
couldn't possibly keep up with all of them. We will encourage clients to register their software
and use the software's own support options to their full potential. We will, however, keep up to
date with multiple operating systems and networking developments, working with clients to
make sure they have the most appropriate combinations of hardware, OS, networking, backup
systems, and software. Backup and security are becoming higher priorities for all our potential
customers, as internet usage (and its pitfalls) becomes more common, and as more and more
daily records are stored electronically.
Market Analysis:
Computer sales and service centre will provide accessories related to computers and computer
support in both a consulting and technical capacity to small business owners as well as home PC
users. Since the company is currently a one man operation, its growth in the first three months
will be limited by the owner's capacity to complete work. However, these first three months are
critical for establishing our credibility and a reputation for getting the job done quickly and well.
We will focus on delivering excellent service, and using the good word of mouth from this initial
period to network with other potential clients.
Personal market research by the owner indicates an attractive market niche for our services, of
which PC Repair will take full advantage. 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.
National chains, such as "NASA computers" and “Tech Computers” have seen rapid growth in
demand for these services in the last few years. Customers are seeking skilled help with
everything from installation of software and hardware components, to networking, to transferring
files from an old computer to a new one.
4.1 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. 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.
Strategy and Implementation Summary:
Our Strategy and Implementation turn on three points:
A value proposition of timely and practical solutions, at a reasonable rate, coupled
with a 100% guarantee.
Exploiting our competitors weaknesses: a competitive edge based on quick, effective,
and sympathetic customer service, which meets the customer where his needs are,
rather than trying to fit him into an existing box.
Quickly establishing a brand identity and developing a great reputation among local
customers to generate word of mouth advertising.
5.1 Competitive Edge
Quick response: The company will provide same day and after hours service.
A flat rate policy: This undermines the competition, who charges 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.
Surprisingly, 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.
5.2 Marketing Strategy:
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.
5.3 Sales Strategy
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.
5.4 Sales Forecast
The sales strategy is a prediction of controllable growth for the first year. The company will
focus on quality and attention to detail to avoid some potential pitfalls encountered by many new
businesses. The predicted growth is moderate in the home PC market and in the small business
arena. However, with aggressive advertising and word of mouth, this will increase. Our
aggressive TV advertising will increase our residential and small business customer base as well
as word of mouth within the first year. Within a few months we will have the need for additional
employees to handle the work load. At that time, we will hire a new store with additional square
footage, and buy a company vehicle to help with the on-site calls.
Our competitor’s average 75+ calls a month. Given that our advertising will be aggressive, we
expect the same results. The sales forecast is conservative, which gives us a chance to gauge our
experience and adjust the plan accordingly.
We will provide the computer hardware accessories to all cities in Punjab at whole sale rates and
we will provide service in all areas of Lahore, and the surrounding area. We expect that the
majority of our jobs will be performed in the immediate town area. A service technician can
perform an average of 3 jobs per day. Our sales forecast predictions are less than that. With our
agressive advertising campaign we expect nominal growth. We predict it will take a few weeks
for the marketing to settle in with customers. However, we are going to offer a promo for our
services which should generate some substantial results.
The one element of sales not represented in the table below is direct costs for our maintenance
contracts. We estimate these costs at 12% of sales revenue, but expect a delayed occurrence -
that is, we will sell maintenance contracts starting in February, but do not expect to actually
perform maintenance on computers guaranteed under them for the first few months. We will
incur more and more costs from these as time goes on, and the computers age - most of the
service in a maintenance contract is performed within the last quarter of the specified period.
5.5 Milestones
Our milestones, listed in the table below, outline the major events that will promote, as well as
insure the success of the company and keep it a going concern well into the future. We will
measure our success in meeting these milestones every month, and adjust the plan to keep up
with our objectives. Name recognition, in particular, is very important to breaking into this
market - we will conduct a survey by calling 200 randomly selected small businesses from the
Chamber of Commerce listings on the specified dates and asking them whether they have heard
of the company, and if so, what their impression is of our service. If any of the respondents have
actually used our services, we will elicit feedback on their experience with us, and suggestions
for improvement. We will also ask if they would recommend us to a colleague.
Management Summary:
The company will be owned and managed by Waqar Chauhan. Waqar has 5 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, Waqar will be in charge of all aspects of the business. Waqar will
maintain direct control over inventory ordering and bookkeeping, and will try to do as many of
the on-site call as possible him. Part of our brand recognition strategy is to identify Computer
sales and service centre with Waqar's efficiency, friendliness, and technical expertise. The easiest
way to associate the two is for Waqar 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.
Waqar 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
company’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.
Personnel Plan:
Waqar Chauhan will be the managing director for the company; his salary is directly related to
the success of the business, and will never exceed 18% of sales revenue. Initially only two
employees will be hired one technician and other a helping boy. In the third month, we will hire
a store room and another technician, with a third hire planned for August, if projections are on
target. We plan to hire additional part-time employees in the second year, to better handle the
increasing sales.
Our employees will be skilled professionals, with equally strong technical and people skills. It is
very important to waqar that they be paid salaries commensurate with their abilities and
dedication- happy tech support people make for happy customers. To that end, our full-time
employees will receive health benefits (premiums split between the employee and PC Repair),
paid holidays, and sick time. Those benefits are included in the payroll totals listed below.
Conclusion:
Computer sales and service centre is new in market and as it is at its initial stages so it requires a
lot of up gradation to achieve its goals. To make the company name the owner of the company
must work very hard and give full devotion to his work. If the company fully follows this
business plan soon it will be on the path of progress. So this plan is highly profitable and our long
term objective would be to target every possible Business with requirements for our solutions and
maximize our revenue and turn these clients into our repeated patrons.
