Business Plan: Start-Up Company: Computer Reseller
The Company to be set up will be a computer reseller. It is going to be set up to fill the market need for personal computers. This company is going to put emphasis on service and support in order for it to make itself different from the national chains in the industry that are more inclined to using price as a competitive strategy. This is going to assist the company in achieving a competitive advantage through capitalizing on the weaknesses of its competitors.
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The company is going to be a privately owned company and the major owner will be the person founding it. In addition, there are going to be five investors who are going to invest in the company.
The company will be targeting the local markets, small business and home office. Special concentration will be put on the high-end home office and the small business office. It is going to be a part of the computer reselling business which comprises of various kinds of businesses which include; Computer dealers, Computer superstores and chain store, mail order among others. .
The buyers in small businesses are used to carrying out purchases from those sellers who come to visit their offices. In setting up this business, one unfortunate thing is that the home office target buyers may not have expectation of buying from this company. They may turn to the superstore as well as to the superstores in order to obtain the most favorable price. However, they will have to be made to realize that there can be a better option available for them at just a little higher price.
The company’s competitive edge will have to be its positioning as a strategic ally with its clients, and clients who are beyond just being customers. By the company ensuring setting up a business that is based on long-standing relationships with the clients who are satisfied, the company will be able to set up protection against competition at the same time. As the relationship stands with the client for a longer the time, this will facilitate offering more help to the clients to having the understanding of what the company offers them and why they need what the company offers to them.
The company is going to offer both computer products as well as computer services to make them be of use to small business. The company is going to particularly focus on offering network systems as well as services to the medium businesses and the small businesses. The systems to be offered will encompass the micro-computer server-based systems and also the PC-based LAN systems. The services that the company is going to provide will comprise of network systems design and installation, training and support.
– Advertising through the local newspapers, television, and radio in engaging in the launching of the initial awareness.
– Direct mail: The Company will have to use direct mail in a most effective manner to reach the customers that will be established with training, upgrades, seminars and training.
The company will have to charge in an appropriate manner for the high-end, excellent support and service that it will offer. The revenue structure of the company will have to match the cost structure of the company, and therefore the salaries that the company pays in order to have assurance of excellent service as well as support is supposed to be balanced by the revenue the company charges. The company will not set up the support and service revenue in to the price of the products. There can not be bearing by the market of the higher prices and there will be feeling among buyers of being ill-used when they realize that the same product is being priced at a lower level at the chains. In spite of the sense behind this, there is no supporting of this concept by the market. Thus, the company will ensure that it engages in delivering and charging for support as well as service. All that will have to be offered to the customer – service, training, installation, and networking support – will have to be readily offered and priced to sell and bring revenue.
This company is going to have one location which is going to be a 7, 000 square foot store that is going to be located in an inhabited shopping center situated near the downtown region in a most convenient way, near customers.
The management philosophy of this company will be on the basis of responsibility and mutual respect. There will be ensuring that the people who will be working in this company will want to work in the company for the reason that there will be provision of an environment that embraces creativity and achievement.
In this company, the team will comprise of 20 employees who will be working under a president and four managers. The major divisions in the management will be the sales division, the service division, the marketing division and the administrative service division.
The assumption here that is of great significance in the projected financial statement (profit and loss) is the GM which needs to increase on a continual basis from the first year all through to the third year. The increase in the GM is on the basis of the company changing its sales mix.