Opportunity
Problem
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.
Solution
PC Repair offers technical support (repairs/training, networking and upgrades) to both local businesses and individual PC users. The company’s marketing strategy will be focused on quality, responsiveness, customer service, and building and maintaining customer relationships.
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. The majority of potential customers in town are unhappy with the existing options. This creates an opportunity for innovative start-ups. Our revenue comes from small business users of PCs. Business Week anticipates that the computing industry will grow at a rate in excess of 12%, and that processor speeds will continue to increase for many years to provide 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 also offer maintenance plans that can generate additional monthly income. We will provide a cost-effective and efficient service for residential customers. Our schedule is flexible to suit their needs. Our target market will focus on Ramsford-on-Bitstream and the surrounding areas. Market research shows there is ample business for a small company like 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. Our local competitors are weaker than ours, so PC Repair’s strengths do not seem to be overwhelming.
The computer maintenance and repair industry is fragmented, with a few large, national players and hundreds of small, local stores. The majority of computers are repaired in-store near customers. Parts for the repair come directly from the major manufacturers or distributors. However, delays in receiving the necessary parts can dramatically slow down repair times. 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 close relationship with a local distributor that allows us to perform rapid special-ordering. While this service is more expensive than traditional channels, it will help us quickly establish a reputation as being efficient and responsive for customer needs, especially for small business customers. This customer loyalty will help us grow our business through word of mouth and steady growth.
Why Us
PC repair will set a new standard for on-site computer solutions. We offer fast, local service and a prompt response. Customers will receive personal attention and a low price for one-on-one service. Customers will receive the best quality customer service. Our employees will get extensive training, great workplace, fair pay, benefits, and incentives for using their own good judgment to solve customers’s problems.
Expectations
Forecast
Because of our cost control, we will still see a modest but steady net profit in the first 12 months. Even after moving into a lease space and hiring more 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. You will also receive 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.