Business Plan for Computer Building and Repair Service

Document Sample
Business Plan for Computer Building and Repair Service Powered By Docstoc
					This Business Plan for a Computer Building and Repair Service allows entrepreneurs or
business owners to create a comprehensive and professional business plan. This
template form allows a business to outline the company's objectives and detail both
current company information as well as any past performance. Companies should
include a complete market analysis in their plan to help showcase why their business
strategy will be effective in the market. Future company plans, including production
targets, management strategy, and financial forecasting, should be used to demonstrate
and confirm that the company's short-term and long-term objective can and will be met.
This model plan can be customized to best fit the unique needs of any entrepreneur or
owner that is seeking to create a strong business plan.
                 [Company Name]




               [Name] & [Name] [Name] - Owners




                                      [Address]

                                   [City, State ZIP]

                          XXX-XXX-XXXX T XXX-XXX-XXXX C

                                [Email Address] -email

                                [Website Address] -web




                                BUSINESS PLAN

© Copyright 2012 Docstoc Inc.                             1
                                Confidentiality Agreement
The undersigned reader acknowledges that the information provided by [Company Name] in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of [Company Name].

It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader may cause serious harm or damage to [Company
Name].

Upon request, this document is to be immediately returned to [Company Name].




___________________
Signature




___________________
Name (typed or printed)




___________________
Date

                   This is a business plan. It does not imply an offering of securities.




© Copyright 2012 Docstoc Inc.                                                          2
                                                               Table of Contents



1.0 Executive Summary .................................................................................................................... 1
    Chart: Highlights .......................................................................................................................... 3
  1.1 Objectives.................................................................................................................................... 3
  1.2 Mission .......................................................................................................................................... 3
  1.3 Keys to Success ........................................................................................................................ 4
2.0 Company Summary ..................................................................................................................... 4
  2.1 Company Ownership ............................................................................................................... 4
  2.2 Company History ...................................................................................................................... 4
    Table: Past Performance ........................................................................................................... 5
    Chart: Past Performance ........................................................................................................... 6
3.0 Products and Services ................................................................................................................ 6
4.0 Market Analysis Summary ........................................................................................................ 7
  4.1 Market Segmentation ............................................................................................................. 7
    Table: Market Analysis ............................................................................................................... 7
    Chart: Market Analysis (Pie) .................................................................................................... 8
  4.2 Target Market Segment Strategy ...................................................................................... 8
  4.3 Service Business Analysis ..................................................................................................... 8
    4.3.1 Competition and Buying Patterns .............................................................................. 9
5.0 Strategy and Implementation Summary ............................................................................ 9
  5.1 SWOT Analysis .......................................................................................................................... 9
    5.1.1 Strengths ............................................................................................................................. 9
    5.1.2 Weaknesses ........................................................................................................................ 9
    5.1.3 Opportunities ..................................................................................................................... 9
    5.1.4 Threats ............................................................................................................................... 10
  5.2 Competitive Edge ................................................................................................................... 10
  5.3 Marketing Strategy ................................................................................................................ 10
  5.4 Sales Strategy ......................................................................................................................... 10
    5.4.1 Sales Forecast.................................................................................................................. 11
      Table: Sales Forecast ........................................................................................................... 11
      Chart: Sales Monthly ............................................................................................................ 12
      Chart: Sales by Year ............................................................................................................. 12
  5.5 Milestones.................................................................................................................................. 13
    Table: Milestones ....................................................................................................................... 13
    Chart: Milestones ....................................................................................................................... 13
6.0 Management Summary ............................................................................................................ 14
  6.1 Personnel Plan ......................................................................................................................... 14
    Table: Personnel ......................................................................................................................... 14
7.0 Financial Plan ............................................................................................................................... 14
  7.1 Important Assumptions ....................................................................................................... 14
  7.2 Break-even Analysis .............................................................................................................. 14
    Table: Break-even Analysis.................................................................................................... 14
    Chart: Break-even Analysis ................................................................................................... 15
  7.3 Projected Profit and Loss ..................................................................................................... 16
    Table: Profit and Loss ............................................................................................................... 16

                                                                                                                                                Page 1
                                                              Table of Contents



    Chart: Profit Monthly ................................................................................................................ 17
    Chart: Profit Yearly .................................................................................................................... 17
    Chart: Gross Margin Monthly................................................................................................. 18
    Chart: Gross Margin Yearly .................................................................................................... 18
  7.4 Projected Cash Flow .............................................................................................................. 19
    Table: Cash Flow ........................................................................................................................ 19
    Chart: Cash .................................................................................................................................. 20
  7.5 Projected Balance Sheet ...................................................................................................... 21
    Table: Balance Sheet ................................................................................................................ 21
  7.6 Business Ratios ....................................................................................................................... 21
    Table: Ratios ................................................................................................................................ 22
Table: Sales Forecast ......................................................................................................................... 1
Table: Personnel ................................................................................................................................... 2
Table: Profit and Loss ......................................................................................................................... 3
Table: Cash Flow .................................................................................................................................. 4
Table: Balance Sheet .......................................................................................................................... 5




                                                                                                                                            Page 2
                                    [Company Name]



1.0 Executive Summary

  [Company Name] is headquartered in Milwaukie, OR

  Contact: [Name] & [Name] [Name]

  Direct Phone: XXX-XXX-XXXX

  [Address]

  [City, State ZIP]

  Email: [Email Address]

  Introduction
  The three year goal of [Company Name] is to provide the Portland, OR community with
  excellent quality computer products and repairs. In addition to having outstanding turn around
  times on its custom builds and computer repairs the Company will provide excellent customer
  service with a ‘home town’ feel. Hometowne plans to expand its home-based business into a
  new retail facility and attract a growing number of clients through its marketing and web site
  advertising campaign. The Company has set aside $50,000 in the first year alone on this
  endeavor.

  Since 2003, [Name] [Name] has been aspiring to grow into the major computer retail outfit in
  the Milwaukie area. He began working from a home-based office constructed in the garage at
  his home. [Name] has 15 years of computer experience and is being assisted by his wife
  [Name] who has been in the industry for five years.

  Location
  [Company Name] is headquartered in Milwaukie, which is a suburb of Portland, OR, the largest
  city in Oregon accounting for more than 15% of the states' total population.




                                                                                         Page 1
                                    [Company Name]




The Company

[Company Name] is named so because of the owners' mission to deliver a 'home town' type of
customer service to its clients. Hometowne would like all its clients to feel welcome and like
individuals with specific computer needs. The Company's owners are a husband and wife team,
[Name] and [Name] [Name].

Our Services

[Company Name] plans to continue to offer its flagship product; custom built computers. It will
also have the ability to increase its inventory, with the addition of its new retail space and sell
retail laptop and other popular brand named desktop computers systems. Computer repair and
maintenance will also be a large part of its service offerings. The retail offering will also be
complimented by software and peripherals such as PC games, printers and flat screen
monitors, for example.

The Market

[Company Name] is located a short distance from metropolitan Portland, which has
around 500,000 residence, nonetheless, the Company will focus on the suburbanites,
commuters and the residents in the surrounding area as its target market. There is only one
other computer shop in the Milwaukie, OR area and this shop is separated by a highway, so
the market segments are somewhat predefined. Hometowne will utilize its ad campaign to
encourage clients from the outer lying Portland market to make Hometowne their computer
retailer of choice.

Financial Considerations

The current financial plan for [Company Name] is to obtain grant funding in the amount
of $263,000. The grant will be used to lease a new retail office space and equipment,
marketing and advertising, purchase a company car, pay first year employee payroll, etc. (for a
more detailed list please refer to milestones table)

The major focus for grant funding is as follows:

1. The Company is a 50+% woman owned business

2. Purchase a retail space in Milwaukie, OR

3. Hire additional employees (2) in the first 12 months, (5) total.

4. Utilize a new company car to make home and business service calls to clients




                                                                                            Page 2
                                      [Company Name]



   Chart: Highlights




1.1 Objectives

   1. To provide the best service available to the community at an affordable price.

   2. To generate substantial market share so that [Company Name] is a common name.

   3. Achieve significant growth in sales in year one and increase 50% a year through year three.

   4. To generate customer satisfaction so that at least 50% of our customer base is repeat
   business.

1.2 Mission

   Our goal is to set the standard for on-site computer solutions through fast, on-site service and
   response. Our customers will always receive "Hometown" 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.




                                                                                            Page 3
                                       [Company Name]



1.3 Keys to Success

   • Superior Customer Service: provide reliable, high-quality service and products, and a 2-day
   expedient turn-around time on repairs.


   • Environment: provide a clean, friendly, and comfortable environment conducive to giving
   professional trusting service.


   • Convenience: offering clients a wide selection of computer products and services in one place;
   including custom-built computers, computer diagnosis and repair, networking, and in-store
   computer stations where clients can attend classes on how to browse the Internet, check email,
   etc.

   • Location: provide an easily        accessible   location   for   the Portland,   Milwaukie   and
   Gladstone customers' convenience.

   • Reputation: credibility, integrity, and 100% dedication from 20+ combined years of
   experience in the computer industry.

2.0 Company Summary

   [Company Name] is a sole-proprietorship located in Milwaukie, OR owned by [Name] and
   [Name] [Name]. With its grant funding, Hometowne will grow from a one-man & wife home-
   office based repair/sales shop to a profitable, 3-person business in a leased location. We will
   build the necessary infrastructure to quickly and efficiently respond to customers' computer
   needs, guaranteeing speedy, friendly, competent, and cost-effective technical support.

2.1 Company Ownership

   The owners, [Name] and [Name] [Name] have 15 and 5 years of experience respectively, in
   the fields of technical support, networking, and computer training and repair. [Name] has also
   spent the last three years as the manager of his custom computer building and repair business
   and understands the computer needs of small businesses.

2.2 Company History

   [Company Name] was initially envisioned as a sole proprietorship in the owner's home.
   However, recent feedback from our marketing outreach has suggested a much higher sales
   potential than originally imagined, and Hometowne began to pursue grant assistance; for
   expansion. This change will streamline the financial operations of the company as we expand
   the personnel to 5 within the next three years, lease a separate space for offices, and purchase
   a company vehicle.




                                                                                              Page 4
                                               [Company Name]



Table: Past Performance



   Past Performance
                                                     2008        2009      2010
   Sales                                             $30,501     $31,301   $34,201
   Gross Margin                                      $0          $2,500    $5,000
   Gross Margin %                                    0.00%       7.99%     14.62%
   Operating Expenses                                $30,501     $30,501   $28,801

   Balance Sheet
                                                     2008        2009      2010

   Current Assets
   Cash                                              $5,000      $5,000    $5,000
   Other Current Assets                              $10,000     $17,000   $17,000
   Total Current Assets                              $15,000     $22,000   $22,000

   Long-term Assets
   Long-term Assets                                  $0          $0        $0
   Accumulated Depreciation                          $0          $0        $0
   Total Long-term Assets                            $0          $0        $0

   Total Assets                                      $15,000     $22,000   $22,000

   Current Liabilities
   Current Borrowing                                 $25,000     $0        $0
   Other Current Liabilities (interest free)         $0          $0        $0
   Total Current Liabilities                         $25,000     $0        $0

   Long-term Liabilities                             $0          $0        $0
   Total Liabilities                                 $25,000     $0        $0

   Paid-in Capital                                   $5,000      $7,500    $7,500
   Retained Earnings                                 ($15,000)   $14,500   $14,500
   Earnings                                          $0          $0        $0
   Total Capital                                     ($10,000)   $22,000   $22,000

   Total Capital and Liabilities                     $15,000     $22,000   $22,000




                                                                                     Page 5
                                     [Company Name]



   Chart: Past Performance




3.0 Products and Services

   • Ready-to-Sell Computers - We will sell new and used computer systems in various price
   ranges that are already built and ready to be used.

   • Custom-Built Computers - We will build and sell computer systems that are custom designed
   according to the customer's preferences.

   • Service and Repairs -We will do full-service computer diagnosis and repairs with an emphasis
   on quality work within an expedient turn-around time.

   • Upgrades - We will offer customers the latest technology and software available to upgrade
   the computers they already own.

   • Networking - We will offer full networking solutions for both home and office, including
   wireless networking.

   • Computer Education Classes - We will have work-stations set up where customers can
   participate in classes to learn how to browse the Internet, check e-mail, and download their
   digital photos from their camera memory cards onto discs, for example.




                                                                                          Page 6
                                          [Company Name]



4.0 Market Analysis Summary

   Market research indicates an attractive market niche for our services, of which [Company
   Name] 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 "Geeks on Call," and Best Buy's "Geek Squad" have seen rapid growth
   in demand for these services in the last five 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. Those who can often enlist their tech-
   savvy children's help do, but others are not so fortunate, and small-business owners need
   reliable and quick help with all their computer needs, since every hour down may mean an hour
   or more of lost revenue, especially for any business with a website or those doing e-commerce.

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 three groups, based on their needs: home
   PC/Internet users, PC Gamers and small business clients.

   Home PC Internet User

   Our home PC user market includes non-tech-savvy residents of the local area (10-15 mile
   radius), generally between the ages of 30 and 70, with at least one home computer.

   PC Gamers

   This segment is made up of tech-savvy residents that have a demand for cutting edge
   technology and are loyal pc, peripheral and software patrons.

   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 for business or e-commerce use.

Table: Market Analysis



Market Analysis
                                 2011         2012         2013      2014      2015
Potential Customers    Growth                                                             CAGR
Home PC/Internet       10%       84,000       92,400       101,640   111,804   122,984    10.00%
Users
PC Gamers              15%       18,000       20,700       23,805    27,376    31,482     15.00%
Small Business Users   5%        18,000       18,900       19,845    20,837    21,879     5.00%
Total                  10.10%    120,000      132,000      145,290   160,017   176,345    10.10%




                                                                                             Page 7
                                       [Company Name]



   Chart: Market Analysis (Pie)




4.2 Target Market Segment Strategy

   Although there are more potential profits among small business users, we expect the majority
   of our revenue to come from the home PC/Internet clients, since their need for our services is
   growing the fastest. Moreover, the business segment clients are willing to invest in technology
   as part of their business plan, thus a growing portion of our marketing efforts will be focused on
   small business owners. These customers typically don't have a full-time IT person, but have
   full-time IT needs, while home PCs are often used by multiple people, and serve multiple
   purposes. Our home PC users need help with managing their settings to integrate the different
   needs of all household members as much as they need technical assistance.

   Both the software and hardware side of the computer industry continues to turn out new and
   revised computer components at alarming rates. For PC Repair this means job security well into
   the future. As reported by the Wall Street Journal, there seems to be no end to the development of
   the computer market. 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.

4.3 Service Business Analysis

   Secondary market research shows computer service customers tend to be very loyal to
   providers that do good work and satisfy their needs. An analysis of [Company Name]’ main
   competitors shows no overwhelming strengths that would be significant barriers to entry into
   the store front version of the market, as our local competitors are virtually non-existent with
   only one other shop in our market. Nationally the computer maintenance and repair industry is
   fragmented, with a few large, national players and hundreds of small, local stores.




                                                                                              Page 8
                                       [Company Name]



4.3.1 Competition and Buying Patterns

   Customers choose computer repair and assistance services based on reputation, previous
   experience, and price. They may choose to return to a mediocre provider with whom they're
   familiar, rather than try out a new unknown company about whom they've heard nothing. Once
   we have broken in to the local market with our own space, our great service will turn new
   clients into permanent clients.

   Our services will be second to no one and our prices will be very reasonable for the high quality
   service we offer. By providing superior service, word of mouth alone will bring in many new
   clients. The satisfaction our consumers find will keep them coming back. As mentioned before
   there is only one other local shop in our market, also there is little competition from national
   chains in the 15 mile radius we subscribe to.

5.0 Strategy and Implementation Summary

   1. A value proposition of timely and practical solutions, at reasonable flat rates (not hourly),
   coupled with a 100% guarantee.

   2. Exploiting any potential 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.

   3. Quickly establishing a visible brand identity and developing a great reputation among local
   customers to generate word of mouth advertising.

5.1 SWOT Analysis

   The following SWOT analysis captures the key strengths and weaknesses within the company,
   and describes the opportunities and threats facing [Company Name].

5.1.1 Strengths

      Knowledgeable and friendly staff. Our staff is both knowledgeable and eager to please.
      State-of-the art equipment. Part of the Hometowne experience will include access to state-
       of-the-art computer equipment.
      Clear vision of the market need. We know the customers, we know the technology, and we
       know how to build the service that will bring the two together.

5.1.2 Weaknesses

      A dependence on quickly changing technology.
      Cost factor associated with keeping state-of-the-art hardware in inventory.

5.1.3 Opportunities

      Growing population of daily Internet users.
      The importance of the Internet almost equals that of the telephone.




                                                                                             Page 9
                                      [Company Name]



5.1.4 Threats

      The downturn in the economy has impacted store sales--stock market predictors correlate
       with store sales.
      Continued price pressure due to competition or the weakening market reducing contribution
       margins.

5.2 Competitive Edge

   • Quick response: PC Repair will provide same day and after hours on-site 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 more 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    or     her    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.

5.3 Marketing Strategy

   Our marketing strategy is a simple one: satisfied customers are our best marketing tool. The
   first time a customer comes to [Company Name], they will know that they have found a one-
   stop shop for all of their computer needs, including a friendly personal atmosphere with
   exceptional customer service. We have talked with many friends and associates who are excited
   about our plans and are anxious to shop with us and use our services. Word of mouth and a
   good reputation are the best marketing tools in a close-knit community such as ours.

   In addition, we will have a website, do radio and newspaper advertising, distribute flyers to
   local businesses, and advertise in the Yellow Pages. These venues will help us become known
   as we establish our new shop.

5.4 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.

   We will sell Hometowne through each employee's expertise, courtesy, and warmth, creating a
   trusting impression on all customers, and establishing loyalty and return visits. We will ensure
   each visit to [Company Name] is a professional and pleasant experience, so that customers can
   always depend on our brand of service when they arrive.




                                                                                           Page 10
                                      [Company Name]



5.4.1 Sales Forecast

   The important elements of the Sales Forecasts are shown in the chart and table below. Initial
   sales forecasts indicate healthy first year revenue increasing dramatically but steadily in the
   second and third year. These figures are based on revenue from three main areas:

   Computer Sales - this includes sales of all hardware components. The sales costs for computer
   hardware average 65% of the final sales prices.

   Computer Service - revenue generated strictly from labor fees, so except for payroll, there
   is little sales cost. We estimate a cost of only 20% of the final sale.

   Peripherals & Software - revenue generated from customers purchasing add-ons and
   software at retail prices mark-up here is 20%

Table: Sales Forecast



   Sales Forecast
                                                2011             2012             2013
   Sales
   Computer Sales                               $51,058          $76,587          $114,880
   Service & Repair                             $107,477         $161,216         $241,824
   Peripherals & Software                       $31,498          $47,247          $70,870
   Total Sales                                  $190,033         $285,050         $427,575

   Direct Cost of Sales                         2011             2012             2013
   Computer Sales                               $33,188          $55,423          $77,593
   Service & Repair                             $21,495          $35,897          $50,256
   Peripherals & Software                       $25,198          $42,081          $58,913
   Subtotal Direct Cost of Sales                $79,881          $133,402         $186,763




                                                                                             Page 11
                       [Company Name]



Chart: Sales Monthly




Chart: Sales by Year




                                        Page 12
                                       [Company Name]



5.5 Milestones

   The following table lists important program milestones, with dates and budgets for each. The
   milestone schedule indicates our emphasis on planning for implementation.

Table: Milestones



Milestones

Milestone                 Start Date   End Date     Budget         Manager        Department
Receive Grant Funding     1/15/2011    1/15/2011    ($263,000)
Lease Retail Shop         1/15/2011    12/15/2012   $22,000
Ad Campaign               1/15/2011    12/15/2012   $50,000
Hire 1st Employee         1/15/2011    2/15/2011    $2,500
Renovate Office Space     1/15/2011    2/15/2011    $10,000
Purchase Inventory        2/1/2011     2/15/2011    $25,000
Purchase Company          2/1/2011     2/15/2011    $20,000
Vehicle
Grand Opening             2/15/2011    2/22/2011    $0
Hire 2nd Employee         8/15/2011    9/15/2011    $2,500
Start Education Classes   8/15/2011    7/15/2011    $0
Totals                                              ($131,000)




Chart: Milestones




                                                                                        Page 13
                                     [Company Name]



6.0 Management Summary

   Our management philosophy is based on responsibility and mutual respect. People who
   will work at Hometowne want to work at Hometowne because we have an environment that
   encourages creativity and achievement.

6.1 Personnel Plan

   The Personnel Plan reflects the need to bolster our capabilities to match our positioning. Our
   total headcount should increase by 2 the first year, and then by 5 the third year.

Table: Personnel



   Personnel Plan
                                                     2011          2012            2013
   Sr. Managing Tech                                 $0            $0              $50,000
   Computer Tech                                     $41,250       $90,000         $120,000
   Total People                                      2             3               5

   Total Payroll                                     $41,250       $90,000         $170,000

7.0 Financial Plan

   The following subtopics help present the financial plan for [Company Name].

7.1 Important Assumptions

   The table below presents the assumptions used in the financial calculations of this business
   plan.

7.2 Break-even Analysis

   For our break-even analysis, we assume fixed costs of approximately $5,003 per month, and
   average variable cost of 42% of revenue.

Table: Break-even Analysis



   Break-even Analysis

   Monthly Revenue Break-even               $8,632

   Assumptions:
   Average Percent Variable Cost            42%
   Estimated Monthly Fixed Cost             $5,003




                                                                                         Page 14
                             [Company Name]



Chart: Break-even Analysis




                                              Page 15
                                      [Company Name]



7.3 Projected Profit and Loss

   Our Pro Forma Profit and Loss statement was constructed from an aggressive point-of-view,
   and is based in large part on moving into a new office space. By strengthening our service
   position, and rebuilding our customer relationships, we will widen our customer base and
   increase sales.

Table: Profit and Loss



   Pro Forma Profit and Loss
                                          2011           2012             2013
   Sales                                  $190,033       $285,050         $427,575
   Direct Cost of Sales                   $79,881        $133,402         $186,763
   Other Costs of Sales                   $0             $0               $0
   Total Cost of Sales                    $79,881        $133,402         $186,763

   Gross Margin                           $110,152       $151,648         $240,812
   Gross Margin %                         57.96%         53.20%           56.32%


   Expenses
   Payroll                                $0             $0               $0
   Marketing/Promotion                    $0             $25,000          $20,000
   Depreciation                           $0             $0               $0
   Rent                                   $20,167        $22,000          $22,000
   Utilities                              $12,375        $13,500          $13,500
   Insurance                              $4,583         $5,000           $5,000
   Payroll Taxes                          $0             $0               $0
   Other                                  $22,917        $25,000          $25,000

   Total Operating Expenses               $60,042        $90,500          $85,500

   Profit Before Interest and Taxes       $50,110        $61,148          $155,312
   EBITDA                                 $50,110        $61,148          $155,312
    Interest Expense                      $0             $0               $0
    Taxes Incurred                        $15,033        $18,344          $46,594

   Net Profit                             $35,077        $42,803          $108,718
   Net Profit/Sales                       18.46%         15.02%           25.43%




                                                                                     Page 16
                        [Company Name]



Chart: Profit Monthly




Chart: Profit Yearly




                                         Page 17
                              [Company Name]



Chart: Gross Margin Monthly




Chart: Gross Margin Yearly




                                               Page 18
                                           [Company Name]



7.4 Projected Cash Flow

   The following chart and table show the project cash flow for [Company Name].

Table: Cash Flow



   Pro Forma Cash Flow
                                                    2011         2012             2013
   Cash Received

   Cash from Operations
   Cash Sales                                       $190,033     $285,050         $427,575
   Subtotal Cash from Operations                    $190,033     $285,050         $427,575

   Additional Cash Received
   Sales Tax, VAT, HST/GST Received                 $0           $0               $0
   New Current Borrowing                            $0           $0               $0
   New Other Liabilities (interest-free)            $0           $0               $0
   New Long-term Liabilities                        $0           $0               $0
   Sales of Other Current Assets                    $0           $0               $0
   Sales of Long-term Assets                        $0           $0               $0
   New Investment Received                          $263,000     $0               $0
   Subtotal Cash Received                           $453,033     $285,050         $427,575

   Expenditures                                     2011         2012             2013

   Expenditures from Operations
   Cash Spending                                    $154,956     $242,246         $318,856
   Subtotal Spent on Operations                     $154,956     $242,246         $318,856

   Additional Cash Spent
   Sales Tax, VAT, HST/GST Paid Out                 $0           $0               $0
   Principal Repayment of Current Borrowing         $0           $0               $0
   Other Liabilities Principal Repayment            $0           $0               $0
   Long-term Liabilities Principal Repayment        $0           $0               $0
   Purchase Other Current Assets                    $154,583     $90,000          $170,000
   Purchase Long-term Assets                        $20,000      $0               $0
   Dividends                                        $0           $0               $0
   Subtotal Cash Spent                              $329,539     $332,246         $488,856

   Net Cash Flow                                    $123,494     ($47,197)        ($61,282)
   Cash Balance                                     $128,494     $81,298          $20,016




                                                                                          Page 19
              [Company Name]



Chart: Cash




                               Page 20
                                       [Company Name]



7.5 Projected Balance Sheet

   The table below presents the balance sheet for [Company Name]. This table reflects a positive
   cash position through out the period of this financial plan.

Table: Balance Sheet



   Pro Forma Balance Sheet
                                               2011              2012              2013
   Assets

   Current Assets
   Cash                                        $128,494          $81,298           $20,016
   Other Current Assets                        $171,583          $261,583          $431,583
   Total Current Assets                        $300,077          $342,881          $451,599

   Long-term Assets
   Long-term Assets                            $20,000           $20,000           $20,000
   Accumulated Depreciation                    $0                $0                $0
   Total Long-term Assets                      $20,000           $20,000           $20,000
   Total Assets                                $320,077          $362,881          $471,599

   Liabilities and Capital                     2011              2012              2013

   Current Liabilities
   Current Borrowing                           $0                $0                $0
   Other Current Liabilities                   $0                $0                $0
   Subtotal Current Liabilities                $0                $0                $0

   Long-term Liabilities                       $0                $0                $0
   Total Liabilities                           $0                $0                $0

   Paid-in Capital                             $270,500          $270,500          $270,500
   Retained Earnings                           $14,500           $49,577           $92,381
   Earnings                                    $35,077           $42,803           $108,718
   Total Capital                               $320,077          $362,881          $471,599
   Total Liabilities and Capital               $320,077          $362,881          $471,599

   Net Worth                                   $320,077          $362,881          $471,599

7.6 Business Ratios

   The company's projected business ratios are provided in the table below. The final column,
   Industry Profile, shows the industry profile ratios based on the Standard Industrial Classification
   (SIC) code 5734, Computer and Software Stores.




                                                                                              Page 21
                                           [Company Name]



Table: Ratios



   Ratio Analysis
                                               2011         2012       2013       Industry Profile
   Sales Growth                                455.64%      50.00%     50.00%     2.32%

   Percent of Total Assets
   Other Current Assets                        53.61%       72.09%     91.51%     27.04%
   Total Current Assets                        93.75%       94.49%     95.76%     87.95%
   Long-term Assets                            6.25%        5.51%      4.24%      12.05%
   Total Assets                                100.00%      100.00%    100.00%    100.00%

   Current Liabilities                         0.00%        0.00%      0.00%      41.10%
   Long-term Liabilities                       0.00%        0.00%      0.00%      11.70%
   Total Liabilities                           0.00%        0.00%      0.00%      52.80%
   Net Worth                                   100.00%      100.00%    100.00%    47.20%

   Percent of Sales
   Sales                                       100.00%      100.00%    100.00%    100.00%
   Gross Margin                                57.96%       53.20%     56.32%     21.69%
   Selling, General &         Administrative   39.51%       38.18%     30.89%     8.90%
   Expenses
   Advertising Expenses                        0.00%        8.77%      4.68%      0.54%
   Profit Before Interest and Taxes            26.37%       21.45%     36.32%     1.43%

   Main Ratios
   Current                                     0.00         0.00       0.00       1.88
   Quick                                       0.00         0.00       0.00       0.89
   Total Debt to Total Assets                  0.00%        0.00%      0.00%      56.34%
   Pre-tax Return on Net Worth                 15.66%       16.85%     32.93%     7.67%
   Pre-tax Return on Assets                    15.66%       16.85%     32.93%     3.35%

   Additional Ratios                           2011         2012       2013
   Net Profit Margin                           18.46%       15.02%     25.43%     n.a
   Return on Equity                            10.96%       11.80%     23.05%     n.a

   Activity Ratios
   Accounts Payable Turnover                   8.82         12.17      12.17      n.a
   Total Asset Turnover                        0.59         0.79       0.91       n.a

   Debt Ratios
   Debt to Net Worth                           0.00         0.00       0.00       n.a
   Current Liab. to Liab.                      0.00         0.00       0.00       n.a

   Liquidity Ratios
   Net Working Capital                         $300,077     $342,881   $451,599   n.a
   Interest Coverage                           0.00         0.00       0.00       n.a

   Additional Ratios
   Assets to Sales                             1.68         1.27       1.10       n.a
   Current Debt/Total Assets                   0%           0%         0%         n.a
   Acid Test                                   0.00         0.00       0.00       n.a
   Sales/Net Worth                             0.59         0.79       0.91       n.a
   Dividend Payout                              0.00        0.00       0.00       n.a


                                                                                          Page 22
                                   Appendix

Table: Sales Forecast



Sales Forecast
                                2011          2012       2013
Sales
Computer Sales                  $51,058       $76,587    $114,880
Service & Repair                $107,477      $161,216   $241,824
Peripherals & Software          $31,498       $47,247    $70,870
Total Sales                     $190,033      $285,050   $427,575

Direct Cost of Sales            2011          2012       2013
Computer Sales                  $33,188       $55,423    $77,593
Service & Repair                $21,495       $35,897    $50,256
Peripherals & Software          $25,198       $42,081    $58,913
Subtotal Direct Cost of Sales   $79,881       $133,402   $186,763




                                                                    Page 1
                       Appendix

Table: Personnel

   Personnel Plan
                              2011      2012      2013
   Sr. Managing Tech          $0        $0        $50,000
   Computer Tech              $41,250   $90,000   $120,000
   Total People               2         3         5

   Total Payroll              $41,250   $90,000   $170,000




                                                             Page 2
                                              Appendix

Table: Profit and Loss



Pro Forma Profit and Loss
                                   2011                  2012       2013
Sales                              $190,033              $285,050   $427,575
Direct Cost of Sales               $79,881               $133,402   $186,763
Other Costs of Sales               $0                    $0         $0
Total Cost of Sales                $79,881               $133,402   $186,763

Gross Margin                       $110,152              $151,648   $240,812
Gross Margin %                     57.96%                53.20%     56.32%


Expenses
Payroll                            $0                    $0         $0
Marketing/Promotion                $0                    $25,000    $20,000
Depreciation                       $0                    $0         $0
Rent                               $20,167               $22,000    $22,000
Utilities                          $12,375               $13,500    $13,500
Insurance                          $4,583                $5,000     $5,000
Payroll Taxes                      $0                    $0         $0
Other                              $22,917               $25,000    $25,000

Total Operating Expenses           $60,042               $90,500    $85,500

Profit Before Interest and Taxes   $50,110               $61,148    $155,312
EBITDA                             $50,110               $61,148    $155,312
 Interest Expense                  $0                    $0         $0
 Taxes Incurred                    $15,033               $18,344    $46,594

Net Profit                         $35,077               $42,803    $108,718
Net Profit/Sales                   18.46%                15.02%     25.43%




                                                                               Page 3
                                            Appendix

Table: Cash Flow



Pro Forma Cash Flow
                                             2011       2012        2013
Cash Received

Cash from Operations
Cash Sales                                   $190,033   $285,050    $427,575
Subtotal Cash from Operations                $190,033   $285,050    $427,575

Additional Cash Received
Sales Tax, VAT, HST/GST Received             $0         $0          $0
New Current Borrowing                        $0         $0          $0
New Other Liabilities (interest-free)        $0         $0          $0
New Long-term Liabilities                    $0         $0          $0
Sales of Other Current Assets                $0         $0          $0
Sales of Long-term Assets                    $0         $0          $0
New Investment Received                      $263,000   $0          $0
Subtotal Cash Received                       $453,033   $285,050    $427,575

Expenditures                                 2011       2012        2013

Expenditures from Operations
Cash Spending                                $154,956   $242,246    $318,856
Subtotal Spent on Operations                 $154,956   $242,246    $318,856

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out             $0         $0          $0
Principal Repayment of Current Borrowing     $0         $0          $0
Other Liabilities Principal Repayment        $0         $0          $0
Long-term Liabilities Principal Repayment    $0         $0          $0
Purchase Other Current Assets                $154,583   $90,000     $170,000
Purchase Long-term Assets                    $20,000    $0          $0
Dividends                                    $0         $0          $0
Subtotal Cash Spent                          $329,539   $332,246    $488,856

Net Cash Flow                                $123,494   ($47,197)   ($61,282)
Cash Balance                                 $128,494   $81,298     $20,016




                                                                                Page 4
                                       Appendix

Table: Balance Sheet



Pro Forma Balance Sheet
                                2011              2012       2013
Assets

Current Assets
Cash                            $128,494          $81,298    $20,016
Other Current Assets            $171,583          $261,583   $431,583
Total Current Assets            $300,077          $342,881   $451,599

Long-term Assets
Long-term Assets                $20,000           $20,000    $20,000
Accumulated Depreciation        $0                $0         $0
Total Long-term Assets          $20,000           $20,000    $20,000
Total Assets                    $320,077          $362,881   $471,599

Liabilities and Capital         2011              2012       2013

Current Liabilities
Current Borrowing               $0                $0         $0
Other Current Liabilities       $0                $0         $0
Subtotal Current Liabilities    $0                $0         $0

Long-term Liabilities           $0                $0         $0
Total Liabilities               $0                $0         $0

Paid-in Capital                 $270,500          $270,500   $270,500
Retained Earnings               $14,500           $49,577    $92,381
Earnings                        $35,077           $42,803    $108,718
Total Capital                   $320,077          $362,881   $471,599
Total Liabilities and Capital   $320,077          $362,881   $471,599

Net Worth                       $320,077          $362,881   $471,599




                                                                        Page 5
                                                               Appendix


				
DOCUMENT INFO
Shared By:
Tags:
Stats:
views:589
posted:12/21/2011
language:English
pages:33
Description: This Business Plan for a Computer Building and Repair Service allows entrepreneurs or business owners to create a comprehensive and professional business plan. This template form allows a business to outline the company's objectives and detail both current company information as well as any past performance. Companies should include a complete market analysis in their plan to help showcase why their business strategy will be effective in the market. Future company plans, including production targets, management strategy, and financial forecasting, should be used to demonstrate and confirm that the company's short-term and long-term objective can and will be met. This model plan can be customized to best fit the unique needs of any entrepreneur or owner that is seeking to create a strong business plan.