University Of Management And Technology Information Technology Essay

University Of Management And Technology Information Technology Essay This business plan describes a proposed venture to setting up a company called Nerd Patrol to provide individuals and small businesses with a full range of computer and networking services including hardware and software upgrades, hardware repairs, debugging software problems, dealing with network problems etc. Nerd Patrol will be initially owned by John Robbins. Depending on growth development, the company will possibly join with Mary Singh and Nabil Quresh to expand operations and to coverage in widen area. The Market Market research indicated the available niche market able to be occupied by additional businesses of this kind of nature. 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. Individual home PC users will provide the majority of our business revenue income. Those jobs will typically consist of minor problem resolve and upgrade services such as software installation, hardware upgrade or Operation system upgrade and advising them for changing required. Business Week expects the computing industry to grow at a rate of 12% and the central processor unit speeds to continue to expand for years to come, providing obvious resource for sales. Nerd Patrol has decided to focus mainly on the individual home PC market for many kind of services. These home customers generally request the jobs done be quick, easier and less resource intensive then the opposing small business customer. In addition, this market tends to offer more flexibility for service times allowing a more productive workday and can have better human resources arrangement. Our target market will initially focus on the surrounding areas. Market research indicated there is an plenty of business for a small company such as US Computer Services, Computer Repair Chicago and Northern Computer Service, LLC. If we need exists for increased business, such promotional medium like TV, Internet or printing advertisement will be explored to increase the citizen perception of Nerd Patrol. The next step will be setting up a branch in other state to cover widen area. There are many competitors for the computer upgrade business in the surrounding area. Therefore we expect to be able to attract the price-sensitive market without much work to get involved in the competitive market. Financial Considerations Total start-up expenses are modest. Since Nerd Patrol is a service business and not product oriented, operational costs should remain low through the start-up process. Fixed costs have been set at a reasonably accurate monthly level. This should allow for equipment maintenance and purchase or replacement of basic parts used in performing our services. Somehow hardware parts may require keeping inventory at our shop as well. Variable costs have been set per unit to allow for additional expenses such as travel costs specific to each job. Objectives To provide a computer related service to the district that is in sufficient demand as to generate a profit. Maintain a strong repeat customer base in individual and or small business to maximize growth rate. Become a positive influence in the district in which we operate. Mission To become a contributing unit of society while delivering a services and products of exceptional quality, value and in a timely base. We will treat every customer as if they were our only customer. Providing the best services and suggestions to our customer. Keys to Success * Marketing and Networking being known to the public. * Responsiveness being an on-call computer paramedic in fast response time. * Quality service getting the job done right at the first time, offering 100% after service guarantee. * Relationships developing loyal and repeat customersretainers. * Experienced in SOHO operating system with Database management solution. * One stop solution to individual home users and small business. Company Summary Nerd Patrol will initially be a sole proprietorship. The goal will be to start the venture as inexpensively as possible with minimal outside financing. Nerd Patrol will be a home office start-up, utilizing one studio room in the owners home. Company Ownership Nerd Patrol will be initially owned by John Robbins as a sole proprietorship. Possibly later having Mary Singh and Nabil Quresh join the venture and expanding operations as well as clientele. Start-up Summary Total start-up expenses are modest. This composed of mostly equipment costs along with a few dollars for research of consumer wants and desires and few pads of stationary. Exact allocations are shown on the following table. Since this is a service business and not product oriented, operational costs should remain low through the start-up process. Start-up Requirements Start-up Expenses Legal US$200 Stationery etc. US$40 Brochures US$40 Consultants US$0 Insurance US$0 Rent US$0 Research and development US$20 Expensed equipment US$400 Other US$0 Total Start-up Expenses US$700 Start-up Assets Cash Required US$300 Other Current Assets US$0 Long-term Assets US$0 Total Assets US$300 Total Requirements US$1,000 Start-up Funding Start-up Expenses to Fund US$700 Start-up Assets to Fund US$300 Total Funding Required US$1,000 Assets Non-cash Assets from Start-up US$0 Cash Requirements from Start-up US$300 Additional Cash Raised US$0 Cash Balance on Starting Date US$300 Total Assets US$300 Liabilities and Capital Liabilities Current Borrowing US$0 Long-term Liabilities US$0 Accounts Payable (Outstanding Bills) US$0 Other Current Liabilities (interest-free) US$0 Total Liabilities US$0 Capital Planned Investment Investor 1 US$1,000 Investor 2 US$0 Other US$0 Additional Investment Requirement US$0 Total Planned Investment US$1,000 Loss at Start-up (Start-up Expenses) (US$700) Total Capital US$300 Total Capital and Liabilities US$300 Total Funding US$1,000 3. Services Nerd Patrol will offer computer support, repair, networking, upgrade and also software/hardware debug service to clients of two major categories, individual home PC users and small office users. These categories will define 90% of our operations. 3.1 Service Description Our services can be obtained through direct hourly compensation, or if preferred or more applicable, through a contract situation with pre-defined limits. Network setup will be define as job base and software implementation will be define to charge per function. 3.2 Competitive Comparison Our services are more intensive and accurate than any existing competition in the surrounding metro area. Since we have no excessive overhead we can be focused on delivering exactly what the customer wants, something other computer support providers in this area have a shock with. Also Nerd Patrol also provide hardware and software debug service which others provider not yet have such service in these area. 3.3 Technology Nerd Patrol will operate in an environment with technology that is constantly developing. Keeping up to date will be of essential importance to the profitability of this venture. We will maintain working as well as functional knowledge of all the latest hardware and software available to the public. Our customers will receive the most current versions of all software and hardware upgrades requested. Also providing suggestion to small company for the latest automated software system in order to save the operating cost. Market Analysis Summary Nerd Patrol will provide computer support in both a consulting and technical capacity to individual home PC users and small business owners. Also Nerd Patrol will apply for Microsoft authorization to sell their product like Microsoft Dynamics which is a pre-defined ERP system which can be customize. Since Nerd Patrol is currently a one man operation it will be limited in growth to the capacity of work able to be completed. Personal market research indicated an available niche market able to be occupied by additional businesses of this nature. The very nature of the computing industry with its noteworthy rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues. 4.1 Market Segmentation The existing computer service market is so spacious categorizing it is a rather difficult task. For our revenue-oriented purposes we will define the market into individual home PC users and small business customers. Individual home PC users will share the majority of our business revenue. These jobs will typically consist of minor repairing, upgrades services and advising. The small business market will be defined as customers with five or more computers or a network requiring services or maintenance. Sometime including advice for SAP, MRP, ERP, CRM system and database management solution for our customers. 4.2 Target Market Segment Strategy Nerd Patrol has decided to focus mainly on the individual home PC market for many reasons. These home customers typically requests jobs that are in immediate, economy and less resource intensive then the opposing small business customers. In addition, this market tends to offer more flexibility for service times allowing a more productive workday. 4.2.1 Market Needs As reported by ComputingNet magazine, there is a substantial need for individuals capable of performing computer repairs, upgrading and Wi-Fi network setup in a timely and cost-effective manner in this region. Nerd Patrol is directed specifically at this niche market. 4.2.2 Market Trends Both the hardware and software side of the computer industry continue to turn out new and revised computer components at surprising rates. For Nerd Patrol this means job security well into the future since our aim is to providing such service to customer. 4.2.3 Market Growth As reported by the Wall Street Journal, there seems to be endlessly to the development of the computer market. Business Week expects the computing industry to grow at a rate of 12% and the central processor unit 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 providers that perform work in speed and satisfy their needs. An analysis of Nerd Patrol main competitors shows no demonstrative strengths that would be significant barriers to possible success. Likewise, identifying competitors weaknesses has illuminated several areas that Nerd Patrol can target as marketing strategies like combination of the use of Office application for home users and Dynamics with database like MySQL and Oracle for small businesses. 4.3.1 Main Competitors There are two main competitors for the computer upgrade business in this area. 1. COMPUTER REPAIR CHICAGO . They are a well established provider of computer upgrades and services and also launching the Free over the phone estimate. 2. US Computer Services. They provide low cost computer repair, network and training provider specializing in quality on-site service for small businesses and homes in metro area. Both of these companies charge higher rate then Nerd Patrol so we will be able to attract the price-sensitive market without much work. Our second main advantage is the accessibility of our services. The time conscientious customer will appreciate our speedy work. 4.3.2 Competition and Buying Patterns As previously mentioned, there had other computer service providers of in the same area. Our services will be second to no one and our prices will be rock bottom. By providing superior service word of mouth alone will bring in many new clients. The satisfaction our consumers find will keep them as our business. Strategy and Implementation Summary A value proposition of timely and practical solutions to customer and at a reasonable charge coupled with a 100% after service guarantee. A competitive edge based on breeding existing customer relationships and loyalty. Our target market will mainly focus on the surrounding areas. Market research indicated that there is large amount of business for a small company such as Nerd Patrol. If obvious need exists for increased business, such promotional mediums like TV, Internet, radio or print advertisement could be implements and distribute. 5.1 Competitive Edge Our competitive advantage will be our ability to speedy take in a request from a customer and complete the requested task in a short time. Typically we will strive for a 48-hour completion of most home PC user requests and slightly longer for small business obligations. In addition we will conduct our services at the going wage or slightly below. Setting marginal revenue at marginal cost until Nerd Patrol established a substantial customer base if not forever. With this strategy we can undercut most competitors and gain local market share. Also our team with fully certified on Microsoft and Oracle software products which other competitor does not have. We have the ability to promote Microsoft and Oracle product to small business which involving another revenue income 5.2 Value Proposition Our business will be simple and direct. Providing quality services at a reasonable price and taking care of the customers, for they are your business. 5.3 Sales Strategy Happy customers will be a repeat customer is always true for a business. If the customer feels satisfied with our services, he or she will tell his/her friends and more business will come in the door. Sales forecast figures are based on industry figures for the typical growth of a consulting start-up and reflect repeat business generated through meeting customer needs. 5.3.1 Sales Forecast The sales strategy is a prediction of slow with controllable growth rate. Since I am the sole employee at the beginning and I will be focusing on quality and attention to detail especially in the beginning to avoid some potential pitfalls encountered by new businesses. The predicted growth rate is very moderate in the individual home PC market and the small business arenas. This should allow for careful examination of variations in demand with regards to season or holidays and still allow enough flexibility to sufficiently compensate. 5.4 Milestones The milestones listed in the table below, outlined the major events that will promote as well as insure the success of Nerd Patrol and keep it going concern well into the coming future. Management Summary Nerd Patrol is a sole proprietorship initially However Mary Singh and Nabil Quresh will be join together in the future and propose the management team as follow:- John Robbins Handle the daily home PC repairing and daily enquires. Mary Singh Co-ordinate with John for maintain service for individual and small business. Nabil Quresh Mainly act as the controlling of overall Nerd Patrol operation and scheduling. Also he will be able to take over the company account and keep track of all documentation. 6.1 Personnel Plan The following table shows my expected compensation. Since I am the sole employee and I am the only one on the books. I have decided to have my pay directly reflective of the businesses success. Additionally, I have decided to leave a residual amount of income with the company each month which intended to allow a means of adaptation or evolution of the business should circumstances dictate expansion or the hiring of additional employees in the future. Financial Plan The following sections include the annual estimates for the standard set of financial tables. Detailed monthly pro-forma tables are included in the appendix. 7.1 Important Assumptions Nerd Patrol customer base would fluctuate if there was a recess in the economy or other extenuating circumstances that pertain directly to consumer or industry behavior. 7.2 Break-even Analysis Fixed costs have been set at a reasonably accurate monthly level. This should allow for equipment maintenance and purchase or replacement of basic tools used in performing our services. Variable costs have been set per unit to allow for additional expenses such as travel costs specific to each job. 7.3 Projected Profit and Loss The profit and loss shown for this company is a source of inspiration. For the first year of operation the books show a modest net profit. This should allow for great flexibility and survival in the start-up phase in case of unexpected problems or expenses. The profit margin declines incrementally in the following two years as greater payroll allocations are made which reflected the join of Mary and Nabil. These increased allocations will be contingent upon the continued success of this going concern. Since this business is operated out of the home, expenses such as rent, utilities, and insurance are sunk costs and not reflective of the business venture. 7.4 Projected Cash Flow This information is presented in the chart and table below. 7.5 Projected Balance Sheet This information is presented in the table below. 7.6 Business Ratios Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7379, Computer Related Services NEC, are shown for comparison. Appendix Personal Plan General Assumptions Pro forma Profit Loss Pro Forma Cash Flow Pro forma Balance Sheet