Opportunity
Important advisory
[This example business plan is based upon one that was written several years ago. It’s still applicable as an illustration for what a business plans consists of and what it covers. It is not intended for information purposes. ]
Problem
Everyone has a cell telephone these days. Cell phones are expected. They are needed for work and for socializing. Because they are expected, many people believe that someone without one is untrustworthy or wrong. In truth, those without one can’t afford it.
Solution
Garbles Cellular’s mission is to provide the best cell phone products and services for its customers. Its owner focuses on personalized service to his customers by offering convenience and rapid service. Additionally, Garbles Cellular has the technological expertise to assist customers in picking the product and service that best meets their needs. We will also be able to satisfy customers’ demand for the latest innovations in cellular phone technology because our staff has strong vendor relationships.
Market
Our products have huge market potential. This can be seen in the seemingly unstoppable increase in the telecom sector. The telecom sector is currently one of the most important growth industries. It is also responsible for large capital market gains. The proliferation of cellular phones is increasing at rates which at one time were unimaginable. One example is that over 65% of the children between the ages 10 and 15 will have cell phone access within the next two years.
These are the areas where future growth is expected for the market/products:
In Japan, text messages can be exchanged between friends. Users can send regular Short-Message Service (SMS) or email on their phones. While email can only be used for small file sizes, many phones support English characters. Special characters can be sent by each provider. This includes animated images, happy and sad faces as well small animals, people, hearts, and even people. If special characters are unavailable, people will often use a specific set of faces in order to express their emotions. While email can be sent between multiple provider phones, not all special characters are available. Therefore users should try to keep the special characters in their hands by keeping a group or friends connected to the same provider. Email can be sent using computers but files are often deleted from cell phones.
The majority of North American phones have a few games included to keep users entertained for a brief period. Japanese phones have two types of games. There are built-in and Java application versions. While the built-in options are easy to use, graphics are vital for the game’s quality. Java application game are delivered via the network and charged for. These games require streaming data and are more complicated. Monthly new games are published. You can even buy joysticks and navigation consoles that plug into your phone.
One of the recent popular additions to many of the Japanese and Korean phone models is a CCD Camera that is mounted either on the outside of the clamshell or on the clamshell hinge. The camera lens measures just 4×2154 cm and can take pictures that are approximately the same size as a dime. Users can not only take photos but also record video clips. Because of memory limitations, most phones only allow for 5-15 seconds of video. They can also stream video. Advertisements for camera phones often show people interacting with each other by looking at each other on the screen. They are holding their phones and cameras at arm’s length, using an earpiece and microphone to communicate and also hold the phone. You can also get a small printer to print photos and an external flash.
Our company will try to take advantage of these developments and serve its customers in all these new trends and developments.
Competition
[Note that this information is presented here only for illustration. This information is very out-of-date. Not reusable. ]
Three large companies currently dominate the U.S. marketplace:
TMobile Wireless has been owned by a subsidiary Deutsche Telekom since May 31,2001.
- Revenues in 2001: Exceeding $13.6 million
Cingular Wireless second largest wireless company is the U.S.
- Ownership: Cingular Wireless is a joint venture between the domestic wireless divisions of SBC (NYSE:SBC) and BellSouth (NYSE: BLS). Atlanta, Georgia, is headquarters. Based on the contribution of both assets to the venture, SBC holds 60% of the company while BellSouth has 40%.
- Revenue from the cellular service in 2002 was greater than $14.7 Billion
- Cellular Phone Services Subscribers: More 22 million Voice and Data customers across the U.S.A.
- Cellular Phone Service and Technology: A leader in mobile voice and data communications, Cingular is the only U.S. wireless carrier to offer Rollover, the wireless plan that lets customers keep their unused monthly minutes. Cingular offers cellular/PCS services in 43 of 50 top markets. Cingular also provides advanced data services for corporate e-mail through its GPRS network and Mobitex packet networks.
Nextel Communications, based in Reston, VA, is a leading provider of fully integrated, wireless communications services on the largest guaranteed, all-digital, wireless network in the country.
- Ownership: Nextel Wireless is traded on the NASDAQ National Market under the symbol NXTL. Nextel Partners (a separate company) is traded on NASDAQ National Market.
- Revenue from the cellular service $8.7 Billion (2002)
- Cellular Phone Service Subscribers (Q4 2002): 10.61million
- Nextel uses a packet-based platform called the integrated Digital Enhanced Network(tm), which was developed by Motorola. Nextel Online(r), Nextel Digital Cellular (Direct ConnectSM), Nextel Mobile Messaging (Nextel Digital Cellular), and Nextel Digital Cellular ™–covers many communities across the United States. Nextel and Nextel Partners, Inc. currently service 197 of the 200 largest U.S. markets.
Garbles Cellular Phones seeks to gain a share from these three companies.
Why Us
Because of our extensive and comprehensive experience in EAIA we feel that our store is the right location to launch our U.S.A operations. Our store will also be operational in the right amount of time. Garbles Cellular Phones will offer its customers convenience and support that is second to none.
Expectations
Forecast
We intend to iron out kinks in our start-up and get things off the ground in year 1. In year 2, we will be able to make a small profit. In the third, we will be in a position to hire more admin assistants and store attendants.
Financial Highlights for Year
Finance Required
To start the company, we will receive $96,000. Mr. Seramed Garbles will invest $43,000 in Garbles Cellular Phones, Inc. to cover start-up costs. If the operation goes well, he will also invest $53,000.