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Express computer repair Center

Business plan

Prepare by kumera Dinkisa

Megabit 2011

Chiro, Ethiopia

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Table of contents

Content Page
1.0 executive summary -----------------------------------------------1
1.1 business objectives ----------------------------------------1
1.2 mission statement ------------------------------------------1
1.3 guiding principle -------------------------------------------1
1.4 keys to success ---------------------------------------------1
2.0 business description -----------------------------------------------2
2.1 company description --------------------------------------2
2.2 ownership ---------------------------------------------------2
2.3 Legal form ---------------------------------------------------2
2.4 Start up summary ------------------------------------------2
3.0 products /services ---------------------------------------------------2
3.1 product /services descriptions -----------------------------3
3.2 competitive comparison ------------------------------------3
3.3 product / service sourcing ----------------------------------3
3.4 inventory management --------------------------------------3
3.5 ware ho using and fulfillment ------------------------------3
3.6 future products /service -------------------------------------3
4.0 market analysis ------------------------------------------------------4
4.1 industry analysis ----------------------------------------------4
4.1.1 size of the business --------------------------------4
4.1.2 Industry participants ------------------------------4
4.1.3 Main competitors -----------------------------------4
4.1.4 Market segments ------------------------------------4
5.0 marketing strategy and implementation ---------------------------5
5.1SWOT analysis-----------------------------------------------------5
5.2Marketing plan -----------------------------------------------------6
6.0 Organization and management --------------------------------------7
6.1 Form of ownership --------------------------------------------7
6.2 Authority of partners------------------------------------------7
6.3 Assessment of risks -------------------------------------------8
6.4 Technologies ---------------------------------------------------8

7. 0 Financial plan summary --------------------------------------------------8

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1. Executive Summary

Hiddassie computer repair center will be one of computer repair center located in SNNPR
region Gedeo zone Dilla town. The computer repair center will be located in the main road of
the town eastern part and far from the capital city of Ethiopia around 360 km.

Hiddassie computer repair center target people who place great importance in their
entertainments equipment and own higher end maintenance, where repairing them would be
more cost effective than replacing them.

The center will provide computer and technical consulting (repairs, training, net working and
up grade server) to local small business as well as home personal computer users and public
and private organization).

The computer repair center will focus on marketing responsiveness, quality, and creating and
retaining customer relations.

Hiddassie computer repair center is owned and managed by kibret who is a computer science
profession and Tadewos who is maintenance and repair professional. Because of high users of
computers and electronics materials there will be starting computer repair center in the town.

1.1. Business objectives

The most objective of the business plan for Hiddassie computer repair center will be below:

- To generate substantial market share


- To provide the best service available to the community at an affordable price
- To constant growth and increase the revenues by 50000 from year one to year two

1.2 Mission statement

Hiddassie computer repair center will be committed to set on site computer solutions through fast
on site service and response and it will committed to give quality repairing service at affordable
price .

1.3 Guiding principle

Hiddassie computer repair center is committed to values such as fastening, affordable, on time and
ethicality delivering of there service.

1.4 Keys to success

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- Establishing a brand identity and generating brand recognition

- Responsiveness being an on- call computer paramedic with fast responsive time

- Quality – getting the job done right the 1st time offering 100% guarantee.

- Relationships – developing loyal repeat customer

2. Business summary

2.1 Company description

Hiddassie computer repair center computer repair and maintenance center located in gedeo zone
dilla town at the main street of the town eastern back. The computer center will provide computer
and technical consulting (repairs, training, networking and up grade service) to local small business
as well as personal computer users and public and private organizations.

Hiddassie computer repair center will be owned and managed by Kibret and Tadewos, a computer
science and maintenance and repair professionals respectively.

2.2 Ownership

Hidassie computer repair center will be owned by Kibert and Tadewos. Kibret a graduated degree
in computer science from adama university, Tadewos a graduated from hawasa TVET college in
computer maintenance and repair.

2.3 Legal form

Hiddasse computer center will be formed as partnership between Kibret and Tadewos by giving
their brand names Hiddassie computer repair center.

2.4 Start up summary

Hiddassie computer repair center will renders there repairing services by renting small shops from
other individual paying 1000 birr in a month for indefinite period of time. For repairing computers
the center will be needs different technical machines and materials plus to the knowledge and
experience of there entrepreneur. The cost for the machines and equipments will be around50, 000
up to 100,000 birr in addition to the personal computer of the centre.

The other start up expenses of Hiddassie computer repair center will be rent, license other jewelries
and advertisements and promotional expenses.

3. Product/services

3.1 product / services descriptions

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Hiddassie computer repair will offer computer repairing ,training ,networking , pass wording and
up grade services to clients in two major categories home pc users and small business users .

As pc repair and the client demands grow, the center will offer soft ware development to the
business clients.

From the very first day the repair center will offer on site repair and consulting services so that
clients will not need to take time out of their busy days to haul a computer in to the workshop.
Much of the diagnostic equipment will be portable and will remove a pc to the work shop only
when the problem requires more detail diagnosis or repair. There will also offer free pick up and
delivery of pc‘s needing repair .To meet the growing demand for this services, the center will
purchase vehicle in the next development of the business in order to fastening services and affect
customers from time to time .

The business will offer extended maintenance contracts, so that the business clients will deal with
technical support and repair needs as a single line item expense, rather than plan for up expected
crashes and problems with rainy- day fund they may never use. Maintenance contracts will yield
a high gross margin for the business, and it will provide peace of mind for the customer,

3.2 Competitive comparisons

Based on surveying and studying of these who will found in the computer repairing and
maintenance there will have two or more competitors found in the town.

- Habu computer center


- Zemen computer center

3.3 Product /service sourcing

Hiddassie computer repair center will have agreements with several computer trading electronic
equipment and machine suppliers in dilla towns, Hawassa and Addis Ababa.

3.4 Inventory management

Hiddassie computer center will not have effective inventory management system.

3.5 Ware housing and fulfillment

Hiddassie computer center will have its own ware house for storing of new machines, equipments
and for storing of customer defective computers.

3.6 Future Products / Services

In the future Hiddassie computer repair center will be increases its service by adding the number
of technicians it will be starts networking development program, software development program,

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computer training program and other such as on line computer assistance, internet and WI –FY
program for the targeted customers of Dilla town as well as in the zone.

4. Market Analysis

Hiddasie computer repair center will be one of the influential ,most qualified computer training
and repair center in the near future in the town as well as zone and the region . It will be receive

A Winning award on computer and ICT, by developing software for different business groups’
government organizations and non governmental organizations. At this highly developing and
competitive world the numbers of personal computer users are increase in a fast moving from time
to time in the country, region as well as the zone and specifically the town.

Dilla town is one of the highly developing and most comfortable town for business people. It
specializes from other towns because of a university in the town with above three campuses of
Dilla University. By this factor the numbers of personal computer and lap top users are increase
from time to time.

4.1 Industry Analysis

In Ethiopia the market related to computer training, computer maintenance and repair are low level
and at introductory stage. As well, in Dilla town the number of computer users, computer training
centers, computer maintenance and repair and other related actives are low at this time but it
increase from time to time .

4.1.1 Size of the business

Hiddassie computer repair center will be invest birr 50,000 at the initial level and it will increases
its efficiency to above 100,000 birr, and other related computer repair competitor of the business
will be invest of the same scale in the town and all most the total of computer repair centers will
invest up to 500,000 -1,000, 000 birr in the town.

4.1.2 Industry participant

In Dilla town there will be at least two well known computer Dilla town will be at repair business center
and involved in the ICT industry. The annual revenues of all these business will be greater than one million.
In least 20or more industries involved in ICT and computer industries and it will be contributes around 5
million or more Ethiopian birr but for these case we will see two of them.

4.1.3 Main competitors

There will be at least two main competitors for Hiddassie computer repair center.

1. Habu computer center


E –mail: habucomp12@ Gmail. Com
2. Zemen computer center

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E – Mail: zemencomp12 @Gmail. Com

4.1.4 Market segments

The existing computer service market will be so extensive that categorizing it is rather difficult.
The positional market will be broken down in two or more groups based on their needs home pc
users and small business clients.

1. Home pc user

The home pc user market will be including generally between the ages of 30 and 70. With at
least one home computer .We will not expecting income from users below ages 30, who tend
to the more comfortable with technology and willing to attempt repairs and up grades on their
own with out seeking professional assistance such home users generally own a computer to do
email, play games, write letters, scanner and print photos, occasion any to do book keeping or
taker and other purpose. Home pc user wit more sophisticated applications generally have
enough technology savvy, from technology experience at work, to do their own reports and up
grades. Their hardware needs will include the computer it self, monitors, keyboard, mouse,
printer and scanner.

2. Small business users

Small business users will provide the majority of the business revenue. The small business
market will be defined as customers with in two or more computers or a network which they
use for business purposes at least 25% of time. The business use may include minor usage such
as updating a business websites, keeping the books designing writing copy for press releases.
It may also be more extensive incorporating inventory tracking customer databases, on line
products / service delivery.

5 marketing strategy and implementation

Hiddassie computer repair center will be rendering quality, attractive, Faithfull and affordable
repairing service

5.1 SWOT analysis

5.1.1 Strengths

Hiddasie computer center will be deliver quality repairing center because of the owner of the
center has professional and experienced on their profession and their business.

5.1.2 Weakness

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If there will be giving quality service the center have not enough space for refreshment of customer
and lack of good inventory management.

5.1.3 Opportunities

The government support entrepreneurs who start their business with out expecting government
employment.

There will not be enough competitors in this type of business.

The market of computer and related activates are at the low level and the environment is good for
the business.

5.1.4 Threats

Shortage of excess space and license problems will be in the government side this will be affect
the business from growing in the fast rate.

5.2 marketing plan

Pricing

Hiddassie computer repair center will give all services for its customers in a fair price. This low
payment will differentiate it from other computer repairing companies and centers in the town.

Promotion

With aggressive advertising and word of mouth and other promotional tools the customer of the
center will be increase. That means, our aggressive TV advertising will increase personal and small
business customer base as well as word of mouth with in the 1st year.

Distribution

As a retail establishment, a Hiddassie repair center handle sales transaction, computer literary is
requirement for employees. If an employee’s does not possess basic computer skills when they
are hired, they will be trained by the full time technicians. The full time technical is also available
for customer in need of assistance. Hiddassie computer repair center will be committed to friendly
, help full service , giving computer trending for customer , is one of the key factor that
differentiate hiddasssie computer from other computers .

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Product plan

Hiddassie computer center is envisioned to be the low cost leader in repair training, networking
and up grade service and home stereo repair for Dilla town area that will also be able to making is
the local leader in comprehensive computer services.

The center will be partnership registered in the town as well as SNNPR own by Kibert and
Tadewos. The initial facilities will contain a sales area, repair room in the back of the shop office
space and storage for parts and equipment.

The company will be seeking a loan in order to finance the start of operations for the company.
The owners will be putting up additional capital of their own of equity.

6. Organization plan

Form of ownership

Hiddassie computer repair center will be proposed as partnership between Kibet and Tadewos, a
computer science and maintenance and repair professional respectively.

The center will be increase the number of employees for the next there years because the number
of customer in the market will be increase as the number of computer and electronics users are
increase from the time to time .

Authority of partners

As we explained before the company will be established by Kibret and Tadewos.

They will have different authority in the activates of the company. Kibret may be participating in
controlling and providing of materials and equipment and as a whole management authority of the
business. Tadewos will be participate mainly in repairing and maintains and other customer
service.

Roles and responsibilities of members of organization

Name Position Authority Back ground

Kibert First degree General manager He will be


graduated from
Adama
university
Tadewos TVET level IV Operational Graduated from
manger hawassa TVET
collage

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7. Assessment of risks

They will be flexibility and expertise into their business model in two primary ways.

Diversified income stream including both retail and whole sale sales

The following is a discussion of several scenarios that will be developed to help assessment of
their risks

1. Low sale
2. Significant cost increase
3. High sale risk
4. Key personal risk
5. Equipment failure risk: their operation will be dependent on equipment and equipment does
not break down.

Strategy: They will be developed long term relationships with reliable maintenances firms
over the last years of operation.

Technologies

The technologies revolution in computers will be enhance their abilities to diagnose and repair
client’s home computers. Hiddassie computer repair center will remain on the cutting edge by
instituting the use of computer diagnostic in its shop.

The company will continue to seek new ways to providing a better service through technology.

EXITING STRATEGY

In case of business risk it will be exiting by selling the equipments for other similar business

8 .Financial plan summary

The following will the financial plan for hiddassie computer repair center services and it will
be includes office equipment requirement, cash flow projections, Performa balance sheet and
break even analysis.

Office equipments required

The following will be the start up expenses of hiddassie computer repair center at the start up of
their businesses and it is explained by Ethiopian birr’s.

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REQUIREMENTS

Start up expenses

Legal 3000

STATIONARY 300

Rent 1000

Startup inventory 15,000

Leased equipment 20,000

Total start up expenses 40, 800

Start up Assets

Cash required 9,200

Other current assets 0

Long term assets 100,000

Total Assets 109,200

Total Requirements 150,000

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Cash flow projections

The projected cash flow is outlined in the following table

Pro Month Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
Forma 1 h h h h h h h h h h 11 h
cash 2 3 4 5 6 7 8 9 10 12
flow
Cash 13,00 16,00 19,000 19,00 20,000 21,000 22,000 20,000 20,000 21,000 21,000 20,000
Sales 0 0
Subtota 13,000 16,000 19,000 20,000 21,000 22,000 20,000 20,000 22,000 21,000 21,000 20,000
l
Cash
From
operatio
ns
SUBTO 13,000 16,000 19,000 20,000 21,000 22,000 20,000 20,000 22,000 21,000 21,000
TAL
CASH
RECEI
VED
EXPEN Month Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont
DITUR 1 h h h h h h h h h h h
S 2 3 4 5 6 7 8 9 10 11 12
Cash 12,000 12,000 12,000 12,000 12,00 12,000 12,000 12,000 12,000 12,000 12,000 12,000
spendin
g
Subtota 12,156 16.710 17,684 18,735 19,091 19,328 19,328 18,883 18,899 19,360 19,341 19,343
l cash
spent
Net cash 8444 710 1,316 1,265 1,909 2,947 673 1,117 3,101 1,640 1,659 657
flow
Cash 10,044 9,334 10,650 11,915 13,824 16,771 17.444 18,561 21,662 23,302 24,961 25,618
Balance

Pro forma balance sheet

Year 1 Year 2 Year 3

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Assets Cash 25,618 38.162 51.700
Current Other current 0 0 0
assets Assets
Total current 25,618 38,162 51,700
Asset
Long – Long –term assets
term assets Long –term assets 1000,000 100,000 100,000
Accumulated 2,220 4,440 6,660
Depreciation
Total long –term 97,780 95,560 93,340
Assets
Liabilities Account payable 6,687 6,875 7,217
and capital Current borrowing 0 0 0
current Other current 0 0 0
liabilities Liabilities
Subtotal current 6,687 6,875 7,217
Liabilities
Long term liabilities 100,000 100,000 7,217
total liabilities 106,687 106,875 100,000
Paid in capital 50,000 50,000 107,217
Retained earnings (40,800) (33,289) 23,153)
Earnings 7,511 10,136) 10,976
Total capital 16,7111 26,847 37,823
Total liabilities and capital 123,398 133,7222 145,040
Net worth 16,711 26,847 37,823

Break even analysis


Monthly units break even 52
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Monthly revenue break even 15,110
Assumptions 10
Average per-unit re venue 12,300
Estimated monthly fixed cost 11,000
TR/TC

15,120

11,000

52 Q

Fig - monthly break even analysis

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