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 shortterm 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 customers 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 # 1 2 3 4 5 6 7 8 9

Start up Expenses Shop Hired Shop Decorations Tax Id, Sales tax license Website Advertisement Accessories Computers and Laptops Telephone line, Wifi, Broadband Employees (technician with petrol allowance, helper)

Rupees Rs 75000 Rs 100000 Rs 15000 Rs 5000 Rs 10000 Rs 300000 Rs 350000 Rs 2500 Rs 20000+10000

2.3 Start up Funding:

Following is the start up funding details:

Total Expenses: Owners: Bank Loan:

Rs 887500 Rs 500000 Rs 387500

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.

5.1Competitive 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 startup 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 competitors 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 companys 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.