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Top 10 Computer Shop Business Plan Templates with Examples and Samples (Editable Word Doc, Excel and PDF Included)

Samradni Pradhan

In today's digital age, computer shops play a vital role in facilitating the technology needs of individuals and businesses. Several factors highlight the ongoing necessity for a computer shop .

Computer shops or computer repair shops offer a valuable service to help consumers choose the best hardware and software, carry out repairs, and offer technical support. With the rapidly changing nature of technology, businesses must have physical locations where clients can view and contrast the newest goods. Computer stores act as showrooms where potential customers can try products and get firsthand experience before purchasing.

A strong business strategy, however, is essential to starting and managing a computer store. To ensure long-term sustainability and profitability, it aids in outlining plans for inventory management, marketing, pricing, and customer service. A company strategy furthermore acts as a roadmap, assisting entrepreneurs in adjusting to the constantly altering tech scene and satisfying the wants of their clientele.

The best computer shop business plan templates will be the main topic of this article for you and your company.

Table of Contents

• Executive Summary
• Company Overview
• Industry Analysis
• Customer Analysis
• Competitive Analysis
• SWOT Analysis
• Porter’s Framework
• Operational Plan
• Financial Plan

When considering opening a computer store, there are many factors to consider. In this case, our templates are handy. Using our thorough business plan template gives your business ideas a canvas and a notepad. These templates were specially developed with the requirements of a business plan for a computer shop.

After downloading, you will get the 48-page Doc, PDF, and XLS files.

1. executive summary.

The core of your computer shop business plan is the executive summary, which summarizes the entire document. To attract potential investors, this area is crucial. It should showcase your computer market’s unique value proposition, mission, and vision. Investors can rapidly determine a company's viability by looking at its primary goals and fundamental tactics. A powerful executive summary establishes the general tone of the business strategy. Demonstrating how well-defined your business strategy is and its exciting potential in the computer store sector serves as a tool to attract investors.

In our Executive Summary section, you will get templates for

1.1 The Quick Pitch: Give a powerful and concise introduction highlighting the main traits and value propositions that set your computer store business apart, leaving a lasting impression on potential partners and investors.

1.2 The Entity: Make an easy-to-understand visual representation of your company's organizational structure and a distinctive brand to attract investors' and partners' attention while outlining the genuine nature of your computer store's marke t.

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Looking for a Computer Shop Business Plan in a PowerPoint Format? Click here to explore this fantastic option.

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2. Company Overview

Investors will be given a summary of the company, its background, and its key principles on the Company Overview page. Investors are expected to gain a foundational understanding of the company's structure from this part. If potential investors are given a clear image of the company's mission, culture, and aspirations, they may be more likely to invest in it. It is a chance for the business to show its dedication and zeal, which could be a significant element in luring investors who share the same ideals and goals as the business.

In our Company Overview section, you will get templates for

2.1 Goals & Objectives: Create a clear and motivating road map to success by clearly defining your goals.

2.2 Start-up Summary: Give a brief overview of the beginnings, organizational structure, and key components that served as the cornerstone of your creative process.

2.3 Market Gap and Solution: Unleash the possibilities of the computer retail sector and showcase your distinctive brand to stand out from the competition.

2.4 Products & Services Offered: Showcase your top-notch computer shop services. Show off your complete spectrum of artistic and design abilities.

2.5 Key Success Factors: Investigate the fundamentals that comprise your business plan for a computer shop to set yourself up for success in terms of appearance and design.

3. Industry Analysis

You may get a detailed look at the state and prospects of the computer shop sector by reading the industry analysis. To invest in, investors are looking for high-growth businesses. You may learn more about the market size, prevalent industry trends, and new business prospects from the analysis. It positions your computer store organization to comprehend the present industry dynamics. Investors seeking out expanding industries will find it more alluring as a result.

In our Industry Analysis section, you will get templates for

3.1 Market Analysis: Discover the hidden gems and the industry pioneers who will transform your company for the better as you explore the computer store sector in all its splendor.

3.2 Market Trends: To maintain your consumers' interest, keep up with the most recent trends in computer shops to stay one step ahead of the competition.

3.3 Major Challenges: To keep your computer shop business expanding and prospering, take on the industry head-on and create novel solutions.

3.4 Growth Drivers: Make a strategy plan and decide what will drive your computer store brand's expansion and success in the next years.

3.5 Geographical Analysis: You may assure steady growth that appeals to regional preferences and satisfies local criteria by adapting your strategy to the regions of your target market.

4. Customer Analysis

Knowing who your consumers are is one of the most crucial things investors want to know about your company. You'll want to show that you understand your client's needs, preferences, interests, and personality types on this page. Investors want to know that you understand your market and have strategies to attract and keep clients. It will reassure you that there is a need for your computer hardware market services if you can show that you understand your consumers.

In our Customer Analysis section, we offer comprehensive templates for:

4.1 Target Market: To gain a precise and measurable picture of the market, get a bird's eye perspective of the kind of clients or industries that your services are most suited for.

4.2 Buyer Persona: Create a thorough profile of your ideal customer, including information on their age, gender, tastes, and behavior, so you can skillfully tailor your services to their unique needs.

4.3 Market Sizing: Find the market size for computer shops, calculate the market share your brand can capture, and let us know what prospects exist for you in your sector.

5. Competitive Analysis

Investors like companies knowledgeable about their rivals and the growing trends. The competitor analysis will teach you about the advantages and disadvantages of your competitors. Investors will be able to assess your competitive advantage. Investors who recognize your company's potential to outperform rivals will get interested in it if you demonstrate how you plan to differentiate yourself from the competition in the PC market.

In our Competitive Analysis section, we provide templates for:

5.1 Major Players: By recognizing and evaluating the leading rivals and essential market players, you may successfully navigate the dynamic world of the computer business.

5.2 Key Attributes: You can strategically position your items by conducting in-depth research and making meaningful comparisons of the main traits and features that set other computer store products and services apart in the computer accessories market.

6. SWOT Analysis

The SWOT analysis is a crucial tool for self-evaluation. With a SWOT analysis, investors can better grasp your computer shop's internal strengths and weaknesses as well as its exterior opportunities and dangers. You will discover how to evaluate your company's risks, control them, and build on its advantages on this page. Your company will be more enticing to risk-averse investors.

7. Porters Framework

Porter's Framework examines the rivalry in your industry. Investors are interested in how well-positioned and capable of withstanding competition your computer store firm is. Investors looking for companies with a strong market presence and long-term competitive edge may be drawn to your organization by showcasing your competitive strategies and computer or laptop accessories market position.

8. Marketing Plan

The marketing strategy details how you want to draw in and keep clients. Customers and investors require a thorough marketing strategy for brand building and customer acquisition. Customers and investors who recognize the importance of successful marketing for company growth are attracted by an effective marketing strategy.

In our Marketing Plan section, we provide templates for:

8.1 Promotional Strategies: Make a strong impression on the industry with your computer shop brand by shining a bright light on your marketing and promotion tactics.

8.2 Sales Strategies: Create a unique sales strategy that is specially designed to achieve and even surpass the financial objectives of your computer shop business.

8.3 Pricing Strategies: Learn the trick to developing a pricing strategy that combines profitability and unparalleled competitiveness to become the standard in the computer store sector.

8.4 Sales Funnel: With the expansion of your computer store business, you may guide your consumers through an engaging experience from discovery to satisfaction. Optimize each stage of the sales funnel to increase efficiency and improve the customer experience at your computer store.

9. Operational Plan

On the Operational Plan page, you should describe your company's everyday activities, including staff, operations, and technology. If you have a carefully thought-out operating plan, investors will be more confident in your company's capacity to accomplish its goals and grow.

In our Operational Plan section, we provide templates for:

9.1 Operational Milestones: Highlight the significant turning points and incredible accomplishments that have shaped your growth and success to animate the history of your computer store empire.

10. Financial Plan

The Financial Plan is significant to investors because it helps them comprehend the financial aspects of the administration of the computer store, including how much money will be generated, spent, and lost. Financial estimates that are trustworthy and realistic might entice investors looking for strategies to expand and sustain their businesses.

In our Financial Plan section, we provide templates for:

10.1 Financial Assumptions: Use professional services to turn your business goals into a strategic strategy to boost your computer shop's bottom line.

10.2 Revenue Model: Choose a revenue stream for your computer shop enterprise and plan for future growth.

10.3 Break-Even Analysis: Identify the obstacles preventing your computer shop from making a profit, which is the first step toward profitability.

10.4 Profit and Loss Statement: Learn everything there is to know about the financial possibilities of your computer shop business, including the possible revenue, the prospective expenses, and the projected revenue.

10.5 Cash Flow Statement: To ensure your computer store business is profitable, track how much money you anticipate making.

10.6 Balance Sheet: Get a thorough picture of your computer shop's revenue, the debt you'll incur, and your company's value. You'll be able to manage your money as openly as possible in this manner.

10.7 Scenario Analysis: Consider several situations to discover how various circumstances and dangers may affect the profitability of your computer shop business.

10.8 DCF Valuation: The present market value of your business in the computer industry can be ascertained using a discounted cash flow analysis.

We have so much more to offer

We hope this blog has given you a taste of the fantastic content in this business plan, but this is just the beginning. Graphic-filled 48 pages of content are included when you download our business plan. We can make things simpler for you. Download our business plan ppt templates to customize it to your company's needs.

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• Sample Business Plans
• IT, Staffing & Customer Service

Computer Repair Business Plan

Starting a computer repair business can be a lucrative and rewarding business venture for any tech enthusiast.

However, entering the marketplace without proper planning can put your business at risk. That’s where a business plan can help.

Need help writing a business plan for your computer repair business? You’re at the right place. Our computer repair business plan template will help you get started

Free Business Plan Template

Download our Free Computer Repair Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Computer Repair Business Plan?

Writing a computer repair business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your Business: Start your executive summary by briefly introducing your business to your readers.
• This section may include the name of your computer repair business, its location, when it was founded, the type of computer repair business (E.g., general computer repair, mobile device repair, gaming console repair.), etc.
• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Products and Services: Highlight the computer repair services you offer your clients. The USPs and differentiators you offer are always a plus.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• General computer repair
• Laptop repair
• Mobile device repair
• Remote support services
• Gaming console repair
• On-site repair services
• Describe the legal structure of your computer repair company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your computer repair company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business History: If you’re an established computer repair service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For instance, computer educational institutes and IT offices can be an ideal target market for a computer repair business.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your computer repair services from them. Point out how you have a competitive edge in the market.
• Market Trends: Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
• For instance, there is a growing demand for mobile device repair services; explain how you plan to deal with this growing market trend.
• Regulatory Environment: List regulations and licensing requirements that may affect your computer repair company, such as business registration, insurance, trade and association memberships, data privacy and security, intellectual property rights, etc.

Here are a few tips for writing the market analysis section of your computer repair business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Diagnosis and troubleshooting
• Hardware repair and replacement
• Virus and malware removal
• Networking and connectivity solutions
• Software installation and configuration
• You might mention how customers request computer repair services, how you diagnose or troubleshoot issues, and when you deliver services.
• Quality Assurance: This section should explain how you maintain quality standards and consistently provide the highest quality service.
• This may include standardized procedures, timely quality audits, monitoring and testing equipment, and continuous improvement.
• Additional Services: Mention if your computer repair company offers any additional services. You may include services like IT consulting and support, data migration, cybersecurity solutions, cloud services, and e-waste recycling and disposal.

In short, this section of your computer repair plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique Selling Proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
• For example, fast turnaround times, on-site repairs, specialized expertise, and environment-friendly practices could be some of the great USPs for a computer repair company.
• Pricing Strategy: Describe your pricing strategy—how you plan to price your services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, local SEO, brochures, email marketing, and print marketing.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include offering free consultations, upselling and cross-selling, and forming strategic partnerships.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them.
• For instance, your customer retention strategies may include providing excellent customer service, customer feedback and surveys, and follow-up calls.

Overall, this section of your computer repair business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your computer repair business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your business’s staffing requirements, including the number of employees or technicians needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your computer repair business. Your operational processes may include equipment and inventory management, data and privacy protection, communication & customer service, and quality assurance & testing.
• Equipment & Machinery: Include the list of equipment and machinery required for computer repairs, such as workbench or repair tables, hand tools, diagnostic and testing tools, hardware components & repair parts, and software for data backup.
• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your computer repair business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your computer repair company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include senior management and other key people involved in the computer repair business operations, including their education, professional background, and any relevant experience in the industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/Consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your computer repair services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your repair business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing Needs: Calculate costs associated with starting a computer repair business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the computer repair industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your computer repair business plan should only include relevant and important information supporting your plan’s main content.

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This sample computer repair business plan will provide an idea for writing a successful computer repair plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our computer repair business plan pdf .

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Frequently asked questions, why do you need a computer repair business plan.

A business plan is an essential tool for anyone looking to start or run a successful computer repair business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your computer repair company.

How to get funding for your computer repair business?

There are several ways to get funding for your computer repair business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought-after startup options.

Apart from all these options, there are small business grants available, Check for the same in your location and you can apply for it.

Where to find business plan writers for your computer repair business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your computer repair business plan and outline your vision as you have in mind.

What is the easiest way to write your computer repair business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any computer repair business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Start a Computer Repair Business in 14 Steps (In-Depth Guide)

Updated:   February 14, 2024

BusinessGuru.co is reader-supported. When you buy through links on my site, we may earn an affiliate commission. Learn more

The global computer repair industry brought in over $34 billion in in 2024. With technology constantly advancing and many households and businesses relying on computers and devices for both work and leisure, the demand for qualified technicians to repair broken electronics continues to grow.

As devices get more complex and integrated into daily operations, even small issues can significantly impact productivity and workflows. This increasing dependence presents a major opportunity for aspiring entrepreneurs or those with some technical expertise to capitalize on by starting their own computer repair company.

This guide will walk you through how to start a computer repair business. Topics include market research, competitive analysis, customer focus, registering an EIN, obtaining business insurance, and more.

1. Conduct Computer Repair Market Research

Market research is essential to starting your own computer repair service. Topics include sourcing equipment, obtaining an EIN, applying for business insurance, opening a business bank account for optimal accounting, and more. Market research is important to create a thorough computer repair business plan.

Some details you might learn through market research for your own computer repair business include:

• With this steady growth and fairly low barriers to entry due to moderate startup costs, the industry presents a strong opportunity for aspiring entrepreneurs.
• Success often depends on establishing a loyal customer base within a local service area.
• Specializing in certain brands or models also helps technicians provide quality service efficiently.
• The majority of industry revenue comes from repairing damaged hardware such as replacing cracked screens or debugging faulty components.
• A growing segment involves software-related services including virus removal, data recovery and backup, OS reinstallation, and wired/wireless network setup.
• Catering to both hardware and software needs allows businesses to offer diverse solutions under one roof.
• Aside from residential clients seeking computer repair services for personal devices, there is substantial potential in serving business accounts as many enterprises rely extensively on technological infrastructure across operations.
• Support and maintenance contracts with local companies provide more recurring service opportunities versus one-off consumer repairs.
• Industry analysis shows the corporate sector makes up the largest and fastest-growing market segment.

The success of a new computer repair business often depends on reputation and word-of-mouth marketing. Convenient location and pickup/drop-off options combined with competitive pricing and reliable service help generate referral business over time.

2. Analyze the Competition

When launching a computer repair shop, it’s vital to assess your local competition. This includes researching existing brick-and-mortar providers in the area to understand their offerings, prices, location convenience, and reviews.

Some ways to learn about computer repair businesses in your area include:

• Checking online directories such as Google Maps lets you compile and compare multiple nearby businesses at once in terms of basic information and customer ratings.
• Common review sites like Yelp and Facebook are useful for gauging customer satisfaction as well.
• Evaluating competitors’ online presence including their website design, content, and search visibility is also key.
• Tools like SEMrush and Ahrefs provide data on their website traffic volumes, top landing pages, and search engine keyword rankings.
• Social media listening with software like Mention is valuable for monitoring online reputation.
• Shadow shopping local repair facilities by getting price quotes for certain services gives first-hand insight into responsiveness, advice quality, and upselling tactics.
• Bringing in an intentionally damaged device can reveal troubleshooting thoroughness.
• Interviewing customers exiting a rival store lets you learn direct feedback on aspects they liked or felt needed improvement to win more business versus other options.
• All findings should be documented in a competitive analysis matrix to identify relative strengths and weaknesses.

Ongoing monitoring of market entries, expansions, or exits helps inform necessary pivots in your offerings and positioning to best compete. This allows acting on opportunities or new threats. The goal is to provide better value vis-à-vis substitutes to stand apart in customers’ minds.

3. Costs to Start a Computer Repair Business

Starting a successful computer repair business entails various upfront expenses before opening for business. Total costs vary widely based on factors like location, size, inventory, and staffing. Prospective entrepreneurs should budget approximately $25,000 to $35,000 to cover necessary startup costs in the beginning stages.

Start-up Costs

A decent reserve helps endure the crucial make-or-break first year when many small businesses fail. Key start-up costs include:

• Storefront Leasing – Renting retail space for a shop averages $15 to $25 per sq. ft. annually in most regions. Plan on securing 500 to 1,000 sq. ft. to allow room for reception, workbenches, parts storage, and office space.
• Equipment/Tools – Essential tech repair tools like soldering irons, screwdrivers, buffers, pliers, flashlights, and branded opening tools cost approximately $500 to $2,000 collectively. Be mindful that you’ll also have to know your way around electricity so voltmeters may also be necessary.
• Inventory – Maintaining a select inventory of common computer parts like RAM, cables, chargers, batteries, screens, and keyboards helps service customers faster. Budget $1,000 to $5,000 for enough varieties and quantities based on available capital.
• Shop Branding & Marketing – Logo design ($200 to $500) and printing signage/business cards ($300+) to build an identity. Initial internet and social media marketing efforts average around $1,000 initially.
• Permits/Insurance – Local business licenses, sales tax permits, and commercial general liability insurance costs vary by state but expect roughly $2,000+ in total fees for handymen working on repairing computers.
• Professional Services – Lawyers and/or accountants can provide guidance on business formation, contracts, and payroll needs for around $500 to $1,500.

In addition to one-time start-up costs, entrepreneurs must also account for recurring monthly and annual operating expenses which typically range from $8,500 to $12,000 in total per year for a small operation including:

Ongoing Costs

• Rent & Utilities – On top of base rent, retail spaces incur electricity, waste removal, security, and other fees adding 25%+ to total occupancy costs.
• Staffing – Technician salaries range from $35,000 to $60,000. Bonus incentives help attract talent. Payroll processing/compliance fees are 2% to 5% on top of base pay.
• Software Subscriptions – Remote monitoring/repair tools ($30 to $100 per month) along with accounting, POS, and marketing systems ($100 to $300 monthly).
• Inventory Restocking – Consistently replenishing spare parts ($500 to $2,000 monthly) necessary to support repair volume along with new tools.
• Marketing & Advertising – Pay-per-click search/social ads, retargeting campaigns, direct mail promotions, and referral programs to stand out against competitors ($300+ monthly).
• Misc. Supporting Services – Security, cleaning/landscaping, credit card processing, phone/internet, and other recurring expenses tally $500 or more monthly.

With prudent financial planning and operational controls after launch, talented computer repair techs can steadily grow a prosperous small business over time. The ongoing technology boom bodes well for industry expansion.

4. Form a Legal Business Entity

When starting a computer repair shop, one of the first legal decisions is choosing the right business structure. Each option has implications regarding owner liability, taxes, and ease of formation/maintenance that entrepreneurs must weigh. The four primary set-ups include:

Sole Proprietorship

This default option requires no formal registration beyond standard business licenses. Owners report all profits/losses on personal tax returns. However, they assume unlimited financial and legal liability for the business. This exposes personal assets to settlement risks associated with a repair shop including data breaches or hardware damages.

General Partnership

Similar to sole proprietors with minimal registration paperwork but involves two or more owners sharing control and liability. Requires a written partnership agreement governing profit/loss distributions. Still no liability protections for owners.

Limited Liability Company (LLC)

A more complex formation process including filing “Articles of Organization” limits owner liability. No personal assets at risk for business debts/lawsuits. Owners called “members” and LLCs are allowed to choose corporate or pass-through tax status. Most computer repair shops are structured as LLCs for liability purposes.

Corporation

Separate legal business entities from owners requiring formal registration articles. Requires regular board meetings, documented bylaws, officers, and annual filings. Greatest tax complexities but highest liability protections through issuing stock shares rather than direct ownership like LLCs.

5. Register Your Business For Taxes

Before hiring employees or opening doors, every computer repair shop must obtain an Employer Identification Number (EIN) from the IRS . This unique nine-digit number functions like a business’s Social Security Number for tax reporting/filing purposes.

Specifically, an EIN allows registering for important accounts including:

• Business bank accounts
• Merchant services to accept credit card payments
• Payroll and accounting software to remit employment taxes
• Domain registration and establishing service utilities

Sole proprietors can use their personal Social Security Number instead. However, applying for a separate EIN better protects personal identity theft risks. This number stays with the business for life even amidst ownership changes.

Fortunately, the EIN application process is simple and free through the IRS website with instant verification. Follow these main steps:

• Gather personal identification information including Social Security Number
• Determine the correct legal business structure
• Classify principal business activity under “Computer Maintenance and Repair”
• Input owner/responsible party details
• Provide all other business information like address
• Submit the online application and receive an EIN confirmation

In addition to the federal EIN, repair shop owners must complete state/local licensing to collect and remit sales tax on services. Fees vary by jurisdiction but typically less than $100 annually. Both the EIN and sales tax permits are displayed publicly onsite for compliance.

6. Setup Your Accounting

Like any small business, implementing organized accounting processes from day one helps a computer repair shop track finances, remit taxes, control spending, and ultimately maximize profits.

Accounting Software

Since technicians handle multiple service tickets and parts inventory daily, utilizing tools like QuickBooks integrates directly with bank/credit card accounts to automatically log transactions. This eliminates manually compiling monthly figures.

Hire an Accountant

While software provides convenience, working with an accountant from the startup stages ensures properly categorizing income and expenses for accurate reporting. This frees up time for technicians to focus on repair work versus bookkeeping. Typical annual fees range from $1,200 to $5,000 depending on level of involvement such as:

• Monthly reconciliation of bank/credit card accounts
• Payroll compliance like quarterly 941 filings
• Sales tax calculations and government submissions
• Producing financial statements like P&L reports
• Year-end income tax preparation

Most repair businesses engage a CPA at minimum to handle annual filings to comply with IRS 1040 Schedule C requirements for sole proprietorships and 1120 S-corp returns. This professional assistance better withstands audits if questioned about deductions or gross receipts from parts sales.

Open a Business Bank Account and Credit Card

Separating finances is crucial by establishing dedicated business checking/savings accounts and credit cards solely for operating expenses. Many business cards offer higher limits and can help build commercial credit. Providers like Capital One Spark Cards allow easy 1tracking of deductible purchases made across employees.

7. Obtain Licenses and Permits

While eager to start fixing devices and serving customers, computer repair shop owners must complete proper registrations to legally operate at federal, state, and local levels. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

Mandatory documentation depends on business structure and jurisdiction but often includes:

• Federal Trademark – Formally registering a unique shop name/logo through USPTO trademarking helps establish brand identity and exclusive use rights if targeting interstate commerce online or via mail. Lower-cost state filing alternates are available too.
• Municipal Business License – Virtually every town mandates acquiring a standard occupancy permit for commercial spaces zoned as retail or office use. Visit the local county/city administrator’s office. Fees are based on square footage.
• Special Use Permits – Local zoning laws may require special approval for repairing devices with solvents/chemicals or operating machinery like grinders/saws for part fabrication. Supplements general business permits.
• State Business Operating License – Nearly all states require formal “doing business as” registration for in-state shops handling sales tax payments. Submitted with the Secretary of State’s office.
• Sales & Use Tax ID – Following state business license approval, companies must activate a tax ID number specifically for collecting and remitting sales tax on parts and services based on state rates. Streamlined through the state portal with all other registrations.
• Data Protection/Security Plans – Some jurisdictions now require documenting cybersecurity procedures like mandatory encryption for retaining customer devices and data. Ensures privacy protection following repairs.
• Insurance Coverage – General liability policies are often compulsory to cover bodily injury, hardware damage, and other conflicts. Some areas now mandating data breach insurance too.
• Fire Safety/Alarm Preapprovals – Stricter locations necessitate fire suppression action plans detailing emergency exit routes and alarm/sprinkler testing protocols before occupying buildings.

While cumbersome, adhering to all guidelines curbs legal liabilities from faulty parts, injuries, or lost data. Working with counsel expedites navigating specific obligations based on business structure, location, and repair specialty before launch.

8. Get Business Insurance

Operating a computer repair shop without proper insurance exposes businesses to major financial perils, making coverage essential from day one. The right policies mitigate the negative impacts of:

• Customer cyber attacks – Having no data breach insurance could saddle repair shops with towering legal costs and settlements if hackers access devices. Coverage aids with required customer notifications, credit monitoring services, investigation fees, and potential fines.
• Faulty part installations – Lacking general liability insurance means paying massive sums out-of-pocket if a defective screen or CPU replacement unexpectedly damages multiple devices brought in by a large corporate client.
• Disgruntled employee theft – Despite background checks, a rogue technician walks off with customized firmware code worth huge sums to a competitor. Without crime/fidelity bonds, the shop assumes full replacement costs.

Fortunately obtaining quotes from leading business insurance providers like The Hartford is straightforward:

• Determine business structure – LLC vs sole proprietorship
• Calculate total annual sales
• Estimate value of all inventory/equipment
• Outline all services provided
• Research data breach/liability requirement minimums
• Compare premiums for desired coverage levels
• Select preferred deductible agreements
• Pay policy and print proof of insurance

Following these steps takes less than one hour but defends the enterprise for years to come. Don’t become another financial casualty by skipping this fundamental pillar before opening doors. The computer repair field grows more legally complex by the year.

9. Create an Office Space

Securing real estate, whether for a small home office or larger commercial retail space, provides computer repair shops room to safely service devices while storing parts/tools. Work venues offer privacy compared to making house calls and allow customer drop-offs even when technicians are out on assignments.

Home Office

As you start, a home office costs $0 to $500 for basic desk and supplies. Ideal for sole proprietors just starting and willing to work from home. Designating even a corner of a bedroom or basement to tinker with computers provides some separation before securing leased space. Allows testing repairs overnight without shop overhead.

Coworking Space

A coworking space runs $200 to $500 monthly for WeWork desk rental/amenities access. Turnkey flexible office plans like WeWork accommodate the needs of mobile repair technicians between client visits. Provides professional meeting space and shared tools when needing more elbow room than at home. Easy to upgrade private offices as business grows.

Retail Shop

A retail shop and back office will run roughly $2,000 and up monthly for 1,000 sq ft including rent and utilities. Retail storefronts allow walk-in repair businesses from surrounding neighborhoods while showcasing technician talent and inventory. Ideal for establishing a loyal customer base warranting the higher fixed costs.

Commercial Space

Expect to pay upwards of $1,500 monthly per basic office Generic small bay/suite in business park-type buildings offer lower cost options for repair shops not reliant on foot traffic. Accommodates a small team of technicians tinkering out of public view. Typically located near major businesses or neighborhoods for easy house calls.

10. Source Your Equipment

Aspiring repair shop owners need quality tools without overspending upfront. Beyond basics like screwdrivers and pliers, critical gear includes soldering guns, diagnostic devices, magnifying glasses, and comprehensive bit sets for handling various device components.

Big box retailers like Best Buy and Lowes offer consumer tool sets from brands like iFixit for under $100. Higher-grade options provide commercial capabilities but cost over $500. New equipment qualifies for tax deductions.

Buying Used

Scouring classified sites like Craigslist , Facebook, and Marketplace allows finding costly things like thermal imaging cameras or specialty dremels for half off or more from other repair techs scaling back. Test thoroughly before purchasing to ensure quality. Maintain resale value.

National tool rental outlets offer daily/weekly rentals on specialty gear when only occasionally needed. This avoids large capital investments for niche items used infrequently. Discount for longer terms. Availability varies.

Some top suppliers like Interworld Highway now offer customized equipment leasing programs specifically for computer repair shops to access high-grade tools while easing cash flow constraints. 0% short-term financing deals assist new startups in equipping properly. Bundle packages are available for simpler sourcing.

11. Establish Your Brand Assets

Crafting a distinctive brand identity helps new computer repair shops attract loyal customers who recognize the company and return for future transactions. Investing in professional branding vastly improves market visibility against competitors.

Getting a Business Phone Number

Acquiring a dedicated business phone line using VoIP services like RingCentral upgrades credibility beyond relying solely on personal cell numbers. Call routing, voicemail transcriptions, vanity 800 numbers, and smart integrations make managing customer calls easier for small shops.

Creating a Logo and Brand Assets

A polished logo encapsulates the computer repair brand for use across websites, signage, ads, and promotion materials. Services like Looka offer rapid creation of icons, lettermarks, and other designs that reinforce remembrance. Matching assets like color palettes with the logo helps with recognition. Simple paired images make affordable initial brand suites to apply widely.

Creating Business Cards and Signage

Business cards establish professional first impressions when meeting prospective customers, networking at local events, or responding to referrals. Likewise, signage printed through vendors like VistaPrint gets the repair shop noticed by neighborhood traffic.

Purchasing a Domain Name

Secure the perfect dot-com domain using registrars like Namecheap for establishing an online presence and company email addresses. This digital real estate also anchors marketing efforts companywide rather than relying on free sites. Exact name matches aid discoverability during customer web searches.

Building a Website

Every computer business needs a tailored site for promoting services, listing hours, and FAQs for visitors. Utilizing DIY website builders like Wix creates sites without coding expertise. Those wanting advanced eCommerce capabilities can hire web developers on Fiverr to handle technical aspects. This showcases repair expertise online 24/7.

12. Join Associations and Groups

Joining regional organizations and peer communities allows repair shop owners to regularly exchange insights around best practices while forming referral alliances. Surrounding oneself with industry players yields many benefits.

Local Associations

Groups like the Association of Computer Repair Business Owners provide national membership opening local chapters for meetups while lobbying legislators around right-to-repair regulations. Discounted tools, group insurance rates, and training programs maximize capabilities.

Local Meetups

Sites like Meetup list frequent regional IT gatherings to mingle with other technicians, often hosted at coworking spaces or shops. Share troubleshooting war stories, showcase new gears, and discover local job opportunities. These regular meetings build solid peer networks.

Facebook Groups

With over a billion users, Facebook hosts limitless groups for niche interests allowing local repair folks to tap wider communities. Public pages like PC Repair Help/Advice, Gaming Enthusiasts , and Repair and Service Computer share device teardowns, part swap opportunities, and industry news from thousands of worldwide members.

13. How to Market a Computer Repair Business

Implementing ongoing marketing exposes a new repair business to new customers while reinforcing capabilities to past clients. As positive word-of-mouth referrals spread, combining digital and selective traditional promotions expands reach most economically.

Referral Marketing

Referrals from early supportive customers provide the most valuable lead sources based on real service experiences. Entice such brand advocates by providing referral cards with incentives like 10% off future visits. This rewards recommendations helping fill appointment slots.

Digital Marketing

• Run Google/Facebook PPC ads targeted locally by service keywords and geography to attract visitors already needing assistance. These platforms make budgeting easy.
• Create YouTube tutorials for common issues like cleaning laptop fans or upgrading RAM. This positions technicians as experts worth contacting.
• Guest blog for national repair sites to insert backlinks and showcase knowledge. Most accept contributed posts in exchange for byline mentions.
• Foster reviews on Google Business Profile and other directories. Testimonials help conversion rates. Respond to demonstrate reliable support.

Traditional Marketing

• Distribute monthly mailers showcasing seasonal service specials to neighborhood households and businesses. Include 10% off coupons to incentivize trying the shop.
• Sponsor Little League team jerseys and donate raffle prizes for community fundraisers. Raises local profile.
• Negotiate referral placements in nearby complementary businesses like computer stores and coffee shops. Offers residual visibility even on days off.

The most effective marketing incorporates both digital and traditional channels to ensure repair shops surface where existing and prospective customers actively discover local services. Dedicate time weekly to promote offerings through ever-expanding options.

14. Focus on the Customer

More than simply fixing devices, a repair shop’s responsiveness and interactions with customers determine repeat business and referrals. With most issues, multiple local options exist to remedy tech problems. Standing out means providing an exceptional experience beyond just competently swapping parts.

Carefully listening to frustrated visitors describing issues helps pinpoint optimal solutions. Sometimes data recovery takes priority over physical damage. Making customers feel heard eases tensions. Taking the device back to the workbench and thoroughly explaining issues builds confidence in recommendations.

Little frills like free software installs or document transfers after hardware repairs reduce the hassle of getting everything back up and running after downtime without a laptop or tablet. Checking in a few days later to confirm satisfaction gives reassurance if any lingering questions.

Extending standard warranty coverage periods at no extra charge reduces risks around marginal components. Absorbing some costs to prevent problems from reoccurring earns immense goodwill often resulting in glowing online reviews.

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Computer Repair Business Plan Template

Written by Dave Lavinsky

Writing a Successful Business Plan For Your Computer Repair Business + Template

If you’re looking to start or grow a computer repair business, you need a business plan. Your plan will outline your business goals and strategies, and how you plan on achieving them. It will also detail the amount of funding you need, and if needed, present a case to investors and lenders regarding why they should invest in your business.

In this article, we’ll explain why you should invest the time and energy into creating a computer repair business plan, and provide you with a computer repair business plan template and  business plan sample  that includes an overview of what should be included in each section.

Download the Ultimate Computer Repair Business Plan Template here >

Why Write a Business Plan For a Computer Repair Business?

There are many reasons to write a business plan for a computer repair company, even if you’re not looking for funding. A business plan can help you see potential pitfalls in your business strategy, as well as identify opportunities you may not have considered. It can also help you track your progress and adjust your plans as needed.

That said, if you are looking for funding, a business plan is essential. Investors and lenders want to see that you have a solid understanding of your industry, your customers, and your competition. They also want to know that you have a realistic view of your financial situation and how much money you’ll need to get started.

How To Write a Business Plan For a Computer Repair Business

While every business plan is different, there are 10 essential components that all computer repair business plans should include:

Executive Summary

Company description, industry analysis, customer analysis, competitor analysis, marketing plan, operations plan, management team, financial plan.

Keep in mind that you’ll need to tailor this information to your specific type of computer repair business, but these 10 components should be included in every plan.

The executive summary is the first section of your business plan, but it’s often written last. This is because it provides an overview of the entire document.

In the executive summary, briefly explain what your business does, your business goals, and how you plan on achieving them. You should also include a brief overview of your financial situation, including how much money you’ll need to get started.

The next section of your computer repair business plan is the company description, where you’ll provide an overview of your business.

Include information about your:

• Company Overview
• Success Factors & Accomplishments To Date
• How & When Incorporated

With regards to the company overview, here you will document the type of computer repair company you operate. For example, a computer repair company description might look something like this:

At ByteFix Tech Solutions, we offer a comprehensive range of products and services tailored to meet the needs of our customers. Whether you’re dealing with hardware issues, struggling with viruses and malware, in need of data recovery services, or require assistance with software installation and troubleshooting, we’ve got you covered. Our team is also skilled in network setup and configuration, ensuring that your home or business network runs smoothly and securely.

Located in the heart of Huntington, WV, ByteFix Tech Solutions is perfectly positioned to serve our local community. Our deep understanding of the tech challenges faced by our customers in this area enables us to provide targeted, effective solutions.

Our success stems from a combination of factors. The experience of our founder in running a successful computer repair business lays a solid foundation for our operations. Moreover, our commitment to offering superior services and solutions sets us apart from the competition, ensuring that our customers’ computers and networks are in the best hands.

This is just an example, but your company description should give potential investors a clear idea of who you are, what you do, and why you’re the best at what you do.

The next section of your business plan is the industry analysis. In this section, you’ll need to provide an overview of the industry you’re in, as well as any trends or changes that might impact your business.

Questions you will want to answer include:

• What is the overall size of the computer repair industry?
• How is the industry growing or changing?
• What are the major trends affecting the computer repair industry?

For example, your industry analysis might look something like this:

Market research indicates that the Computer Repair industry is projected to experience a steady growth rate of 3% annually over the next five years. This growth is attributed to factors such as the increasing number of individuals and businesses utilizing technology, as well as the constant need for maintenance and repair services. As technology becomes more integrated into everyday life, the market for computer repair services is expected to expand.

This is just an example, but your industry analysis should give potential investors a clear idea of the overall industry, and how your company fits into that industry.

The next section of your computer repair business plan is the customer analysis. In this section, you’ll need to provide an overview of who your target customers are and what their needs are.

• Who are your target customers?
• What are their needs?
• How do they interact with your industry?
• How do they make purchasing decisions?

You want a thorough understanding of your target customers to provide them with the best possible products and/or services. Oftentimes, you will want to include the specific demographics of your target market, such as age, gender, income, etc., but you’ll also want to highlight the psychographics, such as their interests, lifestyles, and values.

This information will help you better understand your target market and how to reach them.

For example, your customer analysis might look something like this:

In addition to local residents, we will also target small to medium-sized businesses in the area. These businesses often lack the resources for an in-house IT department but still require reliable and prompt technical support. We will offer customized service packages to meet the specific needs of these business clients.

Educational institutions, including schools and colleges, will also be key targets for our services. These organizations rely heavily on technology for both administrative functions and classroom activities. We will provide specialized support to ensure minimal downtime and maximum productivity.

In summary, your customer analysis should give potential investors a clear idea of who your target market is and how you reach them.

The next section of your business plan is the competitor analysis. In this section, you’ll need to provide an overview of who your major competitors are and their strengths and weaknesses.

• Who are your major competitors?
• What are their strengths and weaknesses?
• How do they compare to you?

You want to make sure that you have a clear understanding of your competition so that you can position yourself in the market. Creating a SWOT Analysis (strengths, weaknesses, opportunities, threats) for each of your major competitors helps you do this. 

For example, your competitor analysis might look something like this:

Computer Medics

Computer Medics offers a range of services including computer repair, virus removal, data recovery, and hardware upgrades. They price their services competitively, with basic diagnostics starting at $50 and more complex repairs ranging from $100 to $300. Their annual revenues are estimated to be around $500,000. They are based in Huntington, WV, and serve both residential and small business customers in the local area. Their customer segments include tech-savvy individuals, small business owners, and students. One of their key strengths is their quick turnaround time and personalized customer service. However, they have a limited online presence which can be considered a weakness in today’s digital age. They also rely heavily on walk-in traffic, which makes them vulnerable to market fluctuations. Overall, they have a solid reputation locally but lack broader market reach.

Ignite Link

Ignite Link provides comprehensive IT solutions including computer repair, network setup, cybersecurity, and cloud services. Their price points are higher, with services ranging from $80 for basic diagnostics to $500 for advanced network solutions. They generate annual revenues of approximately $1 million. Located in Huntington, WV, they serve a broader geographic area including nearby towns and cities. Their customer segments include mid-sized businesses, educational institutions, and healthcare providers. One of their main strengths is their diversified service portfolio, which attracts a wide range of clients. However, their pricing may be a barrier for individual customers and small businesses. Their focus on high-end services can sometimes lead to longer service times for basic repairs. Despite these weaknesses, their strong market presence and diverse offerings make them a formidable competitor.

CPR Cell Phone Repair Huntington

Your competitor analysis should give potential lenders and investors a clear idea of who your major competitors are and how you compare to them.

The next section of your business plan is the marketing plan. In this section, you’ll need to provide an overview of your marketing strategy and how you plan on executing it.

Specifically, you will document your “4 Ps” as follows:

• Products/Services : Here is where you’ll document your product/service offerings.
• Price : Detail your pricing strategy here.
• Place : Document where customers will find you and whether you will use distribution channels (e.g., partnerships) to reach them.
• Promotion : Here you will document how you will reach your target customers. For instance, computer repair businesses often reach new customers via promotional tactics including advertising and online marketing.

For example, your marketing plan might look something like this:

ByteFix Tech Solutions offers a range of essential services tailored to meet the needs of individuals and businesses. The primary category of services includes Hardware Repair and Replacement. This encompasses fixing or replacing components such as hard drives, motherboards, and screens. Customers can expect to pay an average of $100 to $300 for these services, depending on the complexity and cost of parts involved.

Another crucial service provided is Virus and Malware Removal. This service is vital for maintaining the security and performance of computers. ByteFix Tech Solutions uses advanced tools and techniques to thoroughly remove malicious software. The average cost for this service is around $80 to $150, reflecting the time and expertise required.

Data Recovery Services are also a key offering, especially for clients who have experienced data loss due to hardware failure, accidental deletion, or other issues. Utilizing specialized software and hardware, the team can recover lost data with a high success rate. Pricing for these services typically ranges from $200 to $500, largely based on the severity of the data loss situation.

For those needing assistance with software, ByteFix Tech Solutions provides Software Installation and Troubleshooting. This service ensures that all software is correctly installed and functioning as intended. It also includes resolving any software-related issues clients might encounter. The average price for this service ranges from $50 to $120, depending on the complexity of the software and the nature of the troubleshooting required.

Network Setup and Configuration service is particularly beneficial for small businesses and home offices. This includes setting up wired and wireless networks, configuring routers, and ensuring optimal network performance. The cost for network setup and configuration services generally falls between $150 and $300, varying with the size and complexity of the network.

By offering these comprehensive services, ByteFix Tech Solutions caters to a wide array of customer needs, ensuring reliable and professional support for all types of computer-related issues at competitive prices.

Promotions Plan

As you can see, your marketing plan should give potential investors a clear idea of your marketing objectives, strategies, and tactics.

The next section of your business plan is the operations plan. In this section, you’ll need to provide an overview of your company’s day-to-day operations and how they will be structured.

• What are your company’s daily operations?
• How are your company’s operations structured?

Your operations plan should be detailed and concise. You want to make sure that potential investors have a clear understanding of your company’s day-to-day operations and how they are structured.

You will also include information regarding your long-term goals for your operations and how you plan on achieving them.

For example, your operations plan might look something like this:

To ensure the success of ByteFix Tech Solutions, there are several key day-to-day operational processes that we will perform:

• Offer friendly and knowledgeable customer support via phone, email, and in-person.
• Respond promptly to customer inquiries and service requests.
• Maintain a customer database for efficient follow-up and service history tracking.
• Schedule and confirm appointments for repair services.
• Send reminders to customers about upcoming appointments.
• Perform diagnostic tests to identify computer issues.
• Carry out hardware repairs and upgrades including replacing hard drives, RAM, and other components.
• Conduct software troubleshooting and installations, such as operating system reinstallation and virus removal.
• Maintain an inventory of frequently used parts and tools.
• Order new parts as needed to ensure timely repairs.
• Keep track of inventory levels and update them regularly.
• Perform quality checks on completed repairs to ensure they meet company standards.
• Gather customer feedback to improve service quality.
• Prepare and send invoices to customers for services rendered.
• Process payments and update financial records.
• Develop and implement marketing strategies to attract new customers.
• Maintain a presence on social media and other online platforms.
• Engage in community events and local advertising to build brand recognition.
• Provide ongoing training to staff to keep them updated on the latest repair techniques and technologies.
• Encourage professional development and certification.
• Maintain detailed records of all repair jobs, inventory, and customer interactions.
• Use a centralized system to store and manage data efficiently.
• Ensure the workspace is clean and safe for both employees and customers.

Your operations plan should give readers a clear idea of your company’s day-to-day operations, how they are structured, and your long-term goals for the company.

The next section of your business plan is the management team. In this section, you’ll need to provide an overview of your management team and their experience.

• Who is on your management team?
• What are their qualifications?
• What is their experience?

Your management team ideally includes individuals who are experts in their respective fields. You want to make sure that lenders and investors have a clear understanding of your management team’s qualifications and experience, and feel they can execute on your plan.

For example, your management team might look something like this:

Harper King, President

Your management team should give potential lenders and investors a clear idea of who is on your team and how their qualifications and experience will help your company succeed.

The final core section of your business plan is the financial plan. In this section, you’ll need to provide an overview of your company’s financials.

• What are your company’s projected revenues?
• What are your company’s projected expenses?
• What is your company’s projected growth rate?
• How much funding do you need and for what purposes? 

Your financial plan should give potential investors a clear understanding of your company’s financials. While you may include a summary of this information in this section, you will include full financial statements in the appendix of your business plan.

For example, your financial plan might look something like this:

Below is a summary of your financial projections. If/when you change the Revenue Assumptions, Cost Assumptions, and/or Other Assumptions, the results below will change.

This is just an example, but your financial plan should give potential investors a clear idea of your company’s financial projections.

The final section of your business plan is the appendix. In this section, you’ll need to provide any additional information that was not included in the previous sections.

This may include items such as:

• Full financial statements
• Resumes of key management team members
• Letters of reference
• Articles or press releases
• Marketing materials
• Product information
• Any other relevant information

By including this information in the appendix, you are allowing potential investors and lenders to learn more about your company.

In summary, writing a computer repair business plan is a vital step in the process of starting and/or growing your own business.

A business plan will give you a roadmap to follow. It can also help you attract investors and partners.

By following the tips outlined in this article, you can be sure that your business plan will be effective and help you achieve your goals.  

Finish Your Business Plan in 1 Day!

Wish there was a faster, easier way to finish your business plan?

With our Ultimate Computer Repair Business Plan Template you can finish your plan in just 8 hours or less!

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How to Start a Computer Repair Business

Starting a computer repair business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful computer repair business.

Importantly, a critical step in starting a computer repair business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Computer Repair Business :

• Choose the Name for Your Computer Repair Business
• Develop Your Computer Repair Business Plan
• Choose the Legal Structure for Your Computer Repair Business
• Secure Startup Funding for Your Computer Repair Business (If Needed)
• Secure a Location for Your Business
• Register Your Computer Repair Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Computer Repair Business
• Buy or Lease the Right Computer Repair Business Equipment
• Develop Your Computer Repair Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Computer Repair Business
• Open for Business

1. Choose the Name for Your Computer Repair Business

The first step to starting a computer repair business is to choose your business’ name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own computer repair business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your computer repair business.

2. Develop Your Computer Repair Business Plan

One of the most important steps in starting a computer repair business is to develop your computer repair business plan . The process of creating your plan ensures that you fully understand your market and your business model. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your new computer repair business.
• Company Overview – this section tells the reader about the history of your computer repair business and what type of computer repair business you operate. For example, are you a PC, Mac, mobile phone, or a tablet repair shop?
• Industry Analysis – here you will document key information about the computer repair industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products or services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your computer repair business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your computer repair business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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3. choose the legal structure for your computer repair business.

Next you need to choose a legal structure for your computer repair business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the computer repair business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a computer repair business together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a computer repair business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a computer repair business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your computer repair business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Computer Repair Business (If Needed)

In developing your computer repair business plan , you might have determined that you need to raise funding to launch your business.

If so, the main sources of funding for a computer repair business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a computer repair business that they believe has high potential for growth.

5. Secure a Location for Your Business

When starting a computer repair business, or a commercial computer repair business, the first step is to find a business location. The best place for a computer repair business is in an area with many companies and people. A busy area will bring in more customers. It would help if you also looked for a location that is easy to get to and has plenty of parking. You can rent a space or buy a property. If you purchase a property, make sure it is zoned for commercial use.

6. Register Your Computer Repair Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your computer repair business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your computer repair business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Licensing and permitting requirements may vary by location. Some licenses and permits you may need to start a computer repair business, or a commercial computer repair business include a business license, a vendor’s license, a seller’s permit, and a contractor’s license. Reach out to your local licensing office to determine which licenses and permits are required for your business.

10. Get Business Insurance for Your Computer Repair Business

The type of insurance you need to operate a computer repair business may vary depending on the scope of your operation. For instance, if you offer mobile computer repair services, you will need auto insurance for your business’s vehicle.

Some business insurance policies you should consider for your computer repair business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Computer Repair Business Equipment

To run a computer repair business, you will need some basic office equipment including a computer, phone, and internet connection.

12. Develop Your Computer Repair Business Marketing Materials

Marketing materials will be required to attract and retain customers to your computer repair business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your computer repair business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional computer repair business website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you..
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your computer repair business.

13. Purchase and Setup the Software Needed to Run Your Computer Repair Business

To start a computer repair business, you’ll need some essential business software. First, you’ll need business software such as QuickBooks to manage your finances. You may also want to invest in an inventory management system to track the parts and tools you need for repairs. Finally, a customer relationship management (CRM) system will be helpful for managing your customer information, and a website will be useful for promoting your business.

14. Open for Business

You are now ready to open your computer repair business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Computer Repair Business FAQs

Is it hard to start a computer repair business.

There is no one-size-fits-all answer to this question, as the difficulty of starting a computer repair business will vary depending on the specific niche, the amount of competition in your area, and your level of experience. However, if you have the skills and knowledge required to start a successful computer repair business and you can market your computer repair service effectively, you are off to a good start. Additionally, it is helpful to have a solid business plan before starting any business to ensure that all of your bases are covered and that you have a clear road map for success.

How can I start a computer repair business with no experience?

There are a few ways to start a computer repair business with no experience. You can start by doing research on the internet, attending computer repair classes, or reading books about computer repair. Additionally, you can network with other computer repair shops and learn from their experiences. Finally, you can offer free services to friends and family to get some experience before starting your own business. 

What type of computer repair business is most profitable?

The profitability of computer repair businesses can vary depending on many factors. However, some of the most profitable computer repair businesses are those that offer services in high demand, such as data recovery or virus removal. Furthermore, businesses that offer a variety of services, as well as those that have a strong online presence, are likely to be more profitable than those that do not.

How much does it cost to start a computer repair business?

It costs about $1,000 to start a computer repair business. This includes setting up a small workshop, purchasing necessary tools and equipment, and advertising your new business. If you lease or purchase a space, the startup costs will be higher.

What are the ongoing expenses for a computer repair business?

There are a few ongoing expenses for a computer repair business. One is the cost of advertising and marketing. This cost may include flyers, online ads, and mailing lists. Another expense is the cost of parts and tools. A computer repair business may need to invest in new tools and parts as technology changes. Finally, there is the cost of insurance. This is important to protect the business and its employees in case of accidents or damage to equipment.

How does a computer repair business make money?

One way a computer repair business makes money is by charging a fee for each service provided. Many computer repair businesses also offer hardware and software sales, which can provide additional revenue. Finally, a computer repair business can make money by providing consulting services to businesses or individuals.

Is owning a computer repair business profitable?

There are several reasons owning a computer repair business can be profitable. One reason is that the demand for computer repair services is high. Many people rely on their computers every day to conduct business and stay connected with friends and family. Additionally, many companies outsource their computer repair needs, giving computer repair businesses great opportunities to generate revenue. Finally, computer repair is a relatively low-cost business to start, making it an attractive option for entrepreneurs.

Why do computer repair businesses fail?

There are many reasons computer repair businesses can fail. One of the most common reasons is a lack of understanding of the market. Companies need to understand what their target customers are looking for to succeed. Another reason is a lack of very strong technical background . A business needs to understand the products they're repairing and the technology behind them to be successful. Finally, a lack of customer service can be a death knell for a computer repair business. If customers don't feel like they're getting the help they need, they'll take their business elsewhere.

Other Helpful Business Plan Articles & Templates

Starting a Computer Shop: Your Complete Guide

Main Sections In This Post Steps To Starting A Computer Shop Points to Consider Resources Knowledge Is Power Featured Video

Discover what to anticipate when running a computer shop. Explore a comprehensive guide, including valuable industry insights and a step-by-step plan.

Access essential resources for launching and sustaining your business, ensuring a successful journey in the computer shop industry. Remember to bookmark and share this valuable content if you like it!

Let’s get started with the steps.

Steps to Starting a Computer Shop

Below are the steps to starting a computer shop.

Each step is linked to a specific section, allowing you to jump to your desired section or scroll to follow the steps in order.

• An Overview of What You’re Getting Into
• Computer Shop Overview
• Researching Your Computer Shop
• Looking at Financials
• Choosing A Business Location
• Creating Your Mission Statement
• Creating A Unique Selling Proposition (USP)
• Choose a Computer Shop Name
• Register Your Company
• Create Your Corporate Identity
• Writing a Business Plan
• Banking Considerations
• Getting the Funds for Your Operation
• Software Setup
• Business Insurance Considerations
• Supplier Considerations
• Physical Setup
• Creating a Website
• Create an External Support Team
• Hiring Employees

1.  An Overview of What You’re Getting Into

Is Starting a Computer Shop the Right Step for You?

Passion: The Driving Force for Success

There is a key factor to succeeding in the computer shop, and that factor is you!

Understanding Your Passion

Understanding your feelings about owning and running a computer shop is important. Passion is a crucial element for success in your own business. It is the driving force you need.

The Power of Passion

When you’re passionate about your computer shop, problems become opportunities for finding solutions. Without passion, you may find yourself seeking a way out.

Measure Your Passion

How passionate are you about owning your computer shop?

The 5 Wishes Test

Let’s look at an interesting perspective: Imagine you were granted 5 wishes for anything you want. No restrictions!

Your Wish and Passion

Would you start a computer shop with one of your wishes in this situation? If your answer is yes, it shows that you are passionate about owning and operating a computer shop and are heading in the right direction.

Discover Your Path

However, if your answer is no, it prompts another question: What would you prefer to do instead? Perhaps, you should pursue that path instead.

Passion Leads to Success

In summary, you need to be passionate about the computer shop. You are starting to increase your chances of success. Without passion, you may be facing an uphill battle.

For More, See How Passion Affects Your Business . Also, see, Considerations Before You Start Your Business to identify key points for a new business owner.

2. Gaining an Overview of Owning a Computer Shop

Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running your business.

a.) A Quick Overview of Owning a Computer Shop

A computer shop is a store that sells computers, components, and accessories. Sometimes related services like repairs or software installations are offered.

Such shops cater to a wide audience, from individuals seeking personal computers to businesses needing bulk hardware.

Day-to-Day Tasks Involved in Running a Computer Shop

Managing a computer shop involves various daily activities:

• Inventory Management: Keeping track of stock, ordering new products, and ensuring that the store has a variety of items to cater to different customer needs.
• Sales: Assisting customers in purchasing decisions, explaining product features, and processing transactions.
• Customer Service: Handling returns, addressing customer complaints, and ensuring customer satisfaction.
• Maintenance: Ensuring that the shop remains clean, organized and that all display units function correctly.
• Technical Support: For shops that provide repair or software services, there’s a need for diagnosing issues, repairing hardware, or installing software.
• Marketing and Promotion: Creating and executing strategies to attract customers, including social media campaigns, promotions, or in-store events.
• Staff Management: For larger shops, this includes scheduling shifts, training new employees, and overseeing the team’s performance.

Owning and running a computer shop requires balancing technical knowledge and business management skills. Building a loyal customer base and staying updated with the latest computer technology is key to success in this industry.

b.) A Key Points To Succeeding in a Computer Shop

Building a Strong Customer Base: Attracting a steady stream of customers in the startup phase can be challenging. Establishing trust early on and creating a loyal customer foundation that provides consistent patronage is essential.

Fostering Positive Relationships: Cultivate healthy relationships with customers, suppliers, and employees. Trusted suppliers can provide better deals and timely deliveries, while content employees contribute positively to the overall business atmosphere.

Tailored Product and Service Lineup: It’s not just about having products but the right ones. Understand your target audience and provide the products and services they genuinely want.

Acting on Customer Feedback: Listen to your customers. When they voice concerns or suggestions that align with your business operation, address them proactively.

Prioritizing Customer Service: Your customers are the lifeline of your business. Always maintain high customer service to ensure a satisfactory shopping experience.

Consistent Value Delivery: In every transaction or service, ensure you provide genuine value to your customers.

Hire the Right Team: Employing individuals who align with your business ethos is crucial. A well-suited team can dramatically boost business operations and customer satisfaction.

Effective Staff Management: Treat staff respectfully and as a collective unit. A healthy work environment is conducive to high productivity levels and can enhance employee retention.

Cash Flow Vigilance: Monitor and manage your cash flow to ensure the business remains financially healthy, even in leaner periods.

Balancing Cost and Quality: While keeping costs low is important, it should never come at the expense of product quality or service standards.

Staying Ahead of Change: The computer industry is dynamic. Whether it’s tech advancements or evolving business processes, adaptability is necessary.

Navigating Revenue Fluctuations: Revenue might not always be steady. Have strategies to manage lean times without compromising the shop’s operations.

Competitor Awareness: Be mindful of both new entrants and existing competitors. Understanding their strategies can help refine your own.

Strategic Advertising and Marketing: Effective marketing campaigns are crucial whether in-house or outsourced. They drive traffic and position your shop favorably in the market.

By keeping these points in mind and adapting to the ever-evolving landscape, computer shop operators can ensure longevity and success in the industry.

c.) Making Your Computer Shop Stand Out

Friendly Communication for All:

One of the core aspects of a successful computer shop is communication. There’s a vast segment of the population who might not be tech-savvy.

Adopt a non-technical way of communicating with such customers. Break down complex jargon into simple, relatable terms.

This approach ensures that everyone feels welcome and understood rather than overwhelmed or embarrassed by technical terms.

Niche Product Selection:

Carry unique or hard-to-find products that cater to a specific market segment. For instance, retro gaming enthusiasts might seek older computer models or accessories.

Hands-On Experience Zones:

Set up areas where customers can try out products before buying. This tactile experience can be particularly effective in helping make purchasing decisions.

Workshops and Classes:

Offer beginner’s classes on computer basics or software tutorials. This positions your shop as a knowledge hub and strengthens community ties.

Expert In-Shop Support:

Have dedicated personnel to answer questions or provide quick fixes. Customers will appreciate the immediate attention and expert guidance.

Eye-Catching Store Design:

A distinctive store layout or theme can create a memorable shopping experience, encouraging repeat visits.

Loyalty Programs:

Implement reward schemes or loyalty cards to encourage repeat business and to make customers feel valued.

d.) Add-on Ideas for Your Computer Shop:

Cell Phone Corner: Given the ubiquity of smartphones, consider having a section dedicated to cell phones. This can include sales of popular models, repairs, and software optimization services.

Customization Station: Offer services like custom PC builds where customers can select individual components based on their needs.

Extended Warranties: Offer extended product warranty plans, assuring customers of prolonged support.

Accessory Bundles: Create packaged deals with complementary products, such as a mouse, keyboard, and headset bundle, at a discounted price.

Recycling Services: Provide an option for customers to bring in old electronics for recycling. This promotes sustainability and can draw in eco-conscious patrons.

Tech Book Section: Consider a small section with top-rated tech magazines or books. It can be a great resource for enthusiasts looking to expand their knowledge.

Subscription Services: Implement a subscription model for regular software updates, system check-ups, or antivirus solutions.

VR Experience Booth: Virtual Reality is a growing trend. A VR booth that customers can try before buying can be a unique attraction.

Your computer shop can effectively stand out and cater to a broader clientele by offering diverse services and ensuring a customer-centric approach.

Computer Shop Models

Traditional Retail Store:

This is the most common setup where customers walk in, browse products, and make purchases. These stores often have a wide range of computers, accessories, and sometimes software.

They earn revenue primarily from direct sales and may offer some basic after-sales services.

Service and Repair Hub:

Focusing primarily on fixing hardware and software issues, this model relies heavily on technical expertise.

Revenue is generated from service charges, the sale of replacement parts, and sometimes software installations or upgrades.

Custom Build Specialists:

These shops cater to enthusiasts and professionals looking for tailor-made computer systems. They work closely with customers to understand requirements and assemble machines that fit specific needs.

Earnings come from sales of high-end components and assembly charges.

Online and E-Commerce:

An online storefront caters to a wider audience, sometimes even globally. While it reduces overheads linked to a physical location, it demands efficient logistics, inventory management, and digital marketing efforts.

Revenue is generated from online sales, and there’s potential for subscription-based tech support or remote software installation.

Second-Hand and Refurbished Sales:

Focusing on selling used or refurbished computers, these stores cater to budget-conscious customers. They acquire old devices, upgrade or repair them, and sell them at a lower price than brand-new items.

Revenue comes from sales and sometimes from repair services.

Educational and Training Center:

While not primarily a sales model, these setups offer courses, workshops, and training sessions on various computer-related topics.

They generate income from course fees, and there’s potential for sales of related software or equipment.

Specialty or Niche Shops:

These shops focus on specific areas, like gaming rigs, graphic design machines, or vintage computers.

They cater to a passionate and specialized clientele, generating revenue from sales of niche products and related accessories or software.

Tech Cafés:

A blend between a coffee shop and a tech hub, patrons can try out new devices while enjoying a cup of coffee.

Revenue is a mix of product sales, food and beverage sales, and sometimes fees for special tech events or launches.

Choosing the right business model from the beginning is crucial, as switching your model later is more challenging. Identifying a profitable and high-demand niche for your computer shop is essential.

f.) Questions You Need to Consider for Your Computer Shop

Type of Business Model: What computer shop model are you considering? The answer can help streamline your subsequent decisions, resources, and business strategies.

Work Delegation: Will you personally handle all the tasks, or is hiring employees on the horizon? Your decision impacts the operational dynamics of your shop.

Management Considerations: Do you intend to be at the forefront, managing the shop, or are you considering hiring a manager to oversee daily operations?

Partnerships and Funding: Are you contemplating bringing partners or investors to share responsibilities or provide additional capital?

Business Location: Do you envision your computer shop being home-based, or are you looking at commercial locations? The location can play a pivotal role in reaching your target audience.

Business Format: If applicable, are you leaning towards a physical brick-and-mortar setup, or is the idea to operate predominantly online?

Growth and Future Plans: Have you given thought to scalability? What are your long-term aspirations for your computer shop?

Customer Engagement: How do you plan to maintain and enhance customer relationships?

Inventory Management: Have you thought about your sourcing strategy? Will you keep large stock or follow a just-in-time inventory system?

Marketing and Promotion: What strategies do you have to create awareness about your computer shop and attract customers?

Technological Considerations: Do you plan to incorporate the latest payment, inventory, or customer relationship management technology?

Regulatory and Compliance: Have you researched the necessary licenses, permits, or regulations associated with running a computer shop?

Financial Strategy: How do you plan to manage your shop’s finances? Do you have a break-even analysis or a projected cash flow statement?

As you establish your computer shop, addressing these questions can provide clarity, ensuring you’re well-prepared for the challenges and opportunities ahead.

g.) Pros and Cons of Owning a Computer Shop

Pros of Running a Computer Shop

Being Your Own Boss: Running a computer shop means being in charge. A sense of independence comes with not having to answer to anyone.

Decision-Making Power: You can call the shots and run the business based on your vision and principles.

Creative Freedom: You’re free to innovate, whether in terms of the products you stock, the store’s layout, or the marketing campaigns you run.

Potential for High Revenue: If executed well, a computer shop can yield significant profits, especially in tech-savvy regions.

Flexible Hours: Once your business is successful and you’ve built a reliable team, you can choose your working hours, allowing for a better work-life balance.

Control Over Work Environment: From the store’s ambiance to the tech tools you use, every element can be tailored to your preferences.

Direct Impact: You can witness the direct results of your hard work and strategies. Each success story or satisfied customer is a testament to your efforts.

Building Community: Owning a computer shop can make you a central figure in the local tech community, providing opportunities for networking and partnerships.

Cons of Running a Computer Shop

Sole Responsibility: When issues arise, they land squarely on your shoulders. Problems, big or small, are yours to solve.

Irregular Income: Especially in the early days, there might be times when business is slow, affecting your income.

Challenging Initial Phase: The startup phase requires a lot of effort, from finding the right location to sourcing inventory and hiring staff.

Customer Acquisition and Retention: Building a loyal customer base isn’t easy; maintaining those relationships demands consistent effort and quality service.

Long Working Hours: Until the business gains traction, you might work longer than traditional working hours.

Success Pressure: Being the face of your business, there’s inherent pressure to succeed and prove the viability of your venture.

Initial Capital Requirement: Setting up a computer shop, especially a physical one, demands a substantial investment in inventory, rent, and other overheads.

Constant Evolution: The tech world is ever-changing. Keeping up with the latest trends, products, or software can be overwhelming.

Inherent Business Risks: There are multiple risks in running a computer shop, from potential thefts to market downturns or technological disruptions.

Technical Challenges: You’ll often need to keep abreast of technical developments and issues, which can be challenging if you’re not tech-savvy.

Inventory Management: Predicting which products will be in demand and managing stock levels can be a delicate balance, with overstocking or stockouts having financial implications.

By weighing these pros and cons, potential owners can better prepare for the realities of running a computer shop and make informed decisions that bolster the chance for success.

For more, see Pros and Cons of Starting a Small Business.

3. Research

Computer shop research.

Research: Your Key to Informed Decisions

You must conduct thorough research for the computer shop business you intend to open before taking any other action.

With quality information, you will know what you’re getting into. Otherwise, you might find yourself in a situation you don’t expect.

Learn from Experienced Professionals

One way to get the best information is from people experienced in running a computer shop. They are qualified to give you information you can depend on.

The time you spend with them can be priceless and an opportunity to gain insights from their knowledge and years of experience.

Article: Your Guide to Connecting

I have written an article with ideas to help find the right people to contact and approach them in an acceptable and non-threatening way.

The steps go beyond this post, but I strongly suggest you read the article from the link below to understand what you’re getting into.

See An Inside Look Into the Business You Want To Start for all the details.

Target Audience

Understanding your target audience in the computer shop industry can lead to significant benefits.

Knowing your target market, you can tailor your offers to appeal directly to customers and provide products and services that pique their interest.

This targeted approach enhances customer satisfaction and fosters brand loyalty.

Target Market Ideas:

• Tech enthusiasts and hobbyists
• Small business owners in need of computer equipment
• Students seeking laptops and accessories for educational purposes
• Gamers looking for high-performance gaming rigs
• Professionals requiring reliable workstations
• Individuals seeking computer repairs and technical support
• Home users looking for everyday computing solutions.

For more, see How To Understand Your Target Market.

4. Looking at Financials:

Computer Shop Financial Overview

This section concisely overviews startup costs, routine expenses, revenues, and potential earnings for a computer shop.

Startup Cost:

Getting a precise grip on the initial expenses is imperative to lay the groundwork for a thriving computer shop. This ensures a seamless transition from the ideation phase to the grand opening .

Underestimating could lead to a funding shortfall, hindering your shop’s launch. On the flip side, overestimating could paint your computer shop as a high-risk enterprise.

Factors influencing your initial outlay include the shop’s scale, location, whether to recruit staff immediately, the decision to invest in brand-new or refurbished tech equipment, and the choice between renting and leasing a storefront.

Begin by cataloging every requisite item, followed by diligent market research for accurate pricing. This exercise will likely bring other considerations to the fore, enabling a comprehensive budget projection.

For more detailed information, refer to my article on Estimating Startup Costs.

Sales and Profit:

The revenue stream of your computer shop will be significantly impacted by:

• The appeal of your computer products and tech services.
• The prevailing demand for tech products and IT solutions.
• Strategically promoting your shop to resonate with the target demographic.

Merely assessing the margin on each computer or accessory sold won’t give you the full financial picture. It’s essential to factor in recurring expenses to get a handle on profitability. This includes rent for your shop, payroll for technicians and sales staff, utility bills, and other operational overheads.

For your computer shop to flourish, you must clock in consistent sales, robust enough to comfortably manage these monthly outgoings and draw a personal income.

For More, See Estimating Profitability and Revenue

Sample Financial Lists As a Starting Point

Below are three overly simplified sample financial lists to provide a broad understanding of the key areas to consider.

Estimated Startup Costs for a Computer Shop:

• Shop Lease Deposit: $5,000 – $15,000
• Renovation and Setup: $3,000 – $10,000
• Initial Inventory (Computers, Accessories, Parts): $20,000 – $50,000
• Licensing and Permits: $500 – $1,500
• Insurance: $1,000 – $5,000
• Tech Equipment (Cash Registers, Security Systems): $2,000 – $8,000
• Initial Marketing and Branding: $2,000 – $6,000
• Miscellaneous (Furniture, Decor, etc.): $2,500 – $7,500

Total Startup Costs: $36,000 – $103,000

Estimated Monthly Expenses:

• Shop Lease: $2,000 – $5,000
• Employee Salaries: $5,000 – $15,000
• Utility Bills (Electricity, Internet, etc.): $500 – $1,500
• Loan Payments: $500 – $1,500
• Inventory Restocking: $10,000 – $25,000
• Marketing and Advertising: $1,000 – $4,000
• Miscellaneous Expenses: $500 – $2,000

Total Monthly Expenses: $19,500 – $54,000

Sales and Profit Sample Outline:

Assuming a monthly sales volume of 100 units (mix of computers, accessories, and tech services):

• Average Sale Price per Unit: $500
• Total Revenue: $500 x 100 = $50,000

Deducting the upper range of monthly expenses from this figure:

• Estimated Monthly Profit: $50,000 – $54,000 = -$4,000

This profit estimate has been calculated based on a moderate sales scenario, considering an average sale price and the provided monthly sales volume.

Understanding that actual profits can vary due to external factors, promotional activities, seasonal demands, and operational efficiencies is essential.

These fictitious examples help you grasp the considerations essential when planning your computer shop.

Adjusting costs can greatly influence the success trajectory of the business. Even a minor alteration in profit per sale, especially on higher sales volumes, can significantly impact overall profits.

It’s also worth noting that many new businesses require time to turn profitable. Establishing a solid customer base, forging a reputation, and streamlining operations are all steps in this journey.

Your actual figures will vary. Each scenario is unique, with various factors at play.

It’s advisable to conduct thorough research and possibly seek professional advice when mapping out startup costs, ongoing expenses, and potential revenue and profits for your enterprise.

5. Choosing The Right Business Location

The Importance of Location for a Computer Shop

Location’s Impact on Success

Your choice of location can significantly influence the success or downfall of your computer shop.

Setting up in an area without interest in tech products and services will likely spell trouble before you even get started.

Balancing Demand and Competition

Starting your shop in a region saturated with similar businesses can make it challenging to carve out a niche.

You’re seeking that sweet spot: a place with a keen demand for tech but without being overwhelmed by competitors.

Budgeting and Affordability

While it might be tempting to set up shop in a bustling urban center, remember to weigh the potential benefits against the costs.

Such areas promise more foot traffic, but can you keep up with the high rents?

Evaluating Low-Cost Areas

Conversely, choosing a more affordable spot might save on rent, but is the location too remote? Will you be able to attract enough customers to sustain the business?

Final Thoughts on Choosing a Location

Picking the right spot for your computer shop is a pivotal decision. It’s about striking a balance between demand, competition, and cost. Research and make an informed choice. Your shop’s success hinges on it!

For more about business locations, see Choosing The Best Location for Your Business.

6. Create Your Mission Statement

A mission statement plays a vital role in identifying the purpose of your computer shop business. It keeps you focused and reminds you of the primary benefit you strive to offer your customers and community.

Examples of Computer Shop Mission Statements:

• “Our mission is to provide cutting-edge technology solutions and exceptional customer service to empower individuals and businesses in their digital endeavors.”
• “At XYZ Computers, we are dedicated to offering top-quality products, reliable technical support, and fostering a technology-driven community.”
• “Striving to be the go-to destination for all computing needs, our mission is to deliver innovative and affordable solutions, backed by expert advice and unmatched customer care.”

For more, see, How To Create a Mission Statement

7. Creating A Unique Selling Proposition (USP)

A Unique Selling Proposition (USP) assists in identifying and creating distinctive features that set your computer shop apart from the competition.

Examples of USPs for a Computer Shop:

• “Offering personalized computer assembly with tailored specifications to meet individual needs.”
• “Fast and efficient computer repair services, ensuring minimal downtime for our customers.”
• “Exclusive selection of rare and vintage computer components for enthusiasts and collectors.”
• “Free comprehensive tech workshops to empower customers with better computer knowledge.”
• “Extended warranty coverage and lifetime technical support for all products.”

8. Choose a Business Name

When selecting a name for your computer shop, aim for something catchy and fitting. Opt for a name that’s easy to remember and pronounce.

Keep in mind that business names are usually long-lasting, so choose wisely. Ensure the name aligns with your vision for the company.

Furthermore, securing a matching domain name for your online presence is crucial. Check for existing registrations to avoid conflicts.

30 Computer Shop Name Ideas to Inspire Your Creativity:

• Tech Haven Emporium
• ByteCraft Computers
• Digital Nexus Solutions
• Circuit Central
• MegaByte Mart
• TechTrendy Hub
• Computopia Corner
• GigaGadgets
• MicroTech Masters
• CyberSphere Store
• Speedy Systems Hub
• ElectroByte Emporium
• DataDynamics Depot
• The PC Prodigy
• Logic Lane Computers
• TechnoTrail Blazers
• Future Fusion Tech
• The IT Gurus
• ByteGenius Store
• ComputeConnect Hub
• QuantumQube Computers
• DigitalDream Machines
• The Chippery Shop
• eTech Euphoria
• TechnoCraft Corner
• MicroMega Depot
• ComputeXpress Solutions
• ByteBlast Tech
• CircuitSavvy Store

For more, see the following articles:

• How To Register a Business Name
• Registering a Domain Name For Your Business

9. Register Your Company

Ensuring Your Computer Shop Business is Legal and Compliant

Setting up your computer shop business requires careful attention to legal aspects to ensure smooth operations and avoid potential issues.

Consult a professional to navigate legal requirements effectively, securing the best tax benefits and liability protection.

Professional Consultation:

• Engaging a legal or business consultant can provide valuable insights.
• They can assist in choosing the appropriate business structure, such as sole proprietorship, partnership, LLC, or corporation, considering tax implications and liability protection.

Common Types of Registrations for a Computer Shop:

• Business Name Registration: Registering your computer shop’s trade name ensures exclusive rights to its usage.
• Business Entity Registration: Depending on your chosen business structure, you may need to register as a sole proprietorship, partnership, LLC, or corporation with the appropriate state authorities.
• Tax Identification Number (TIN): Obtain an Employer Identification Number (EIN) or Federal Tax Identification Number (TIN) for tax purposes.
• Sales Tax Permit: If you plan to sell products, you’ll need a sales tax permit to collect and remit sales taxes.

Permits and Licenses for a Computer Shop:

• Local Business License: Obtain a local business license to operate legally within the city or county.
• Zoning Permits: Ensure your computer shop complies with local zoning regulations.
• Building Permits: If modifying or renovating your business premises, you may require building permits.
• Environmental Permits: Depending on your products, you might need environmental permits for proper waste disposal.
• Resale Permit: A resale permit may be required if you plan to resell computer components or products.

Adhering to legal requirements and obtaining the necessary permits and licenses ensures your computer shop operates legally and without interruptions.

Seeking professional guidance can save you time and effort while providing peace of mind.

Registration:

• How to Register Your Business
• How To Register a DBA
• How to Register a Trademark
• How to Get a Business License

Business Structures:

• How to Choose a Business Structure
• Pros & Cons of a Sole Proprietorship
• How To Form an LLC
• How To Register a Business Partnership
• How To Form a Corporation
• How To Choose a Business Registration Service

10. Create Your Corporate Identity

A Corporate Identity (Corporate ID) visually represents your computer shop business. It includes essential components like your logo, business cards, website, business sign, stationary, and promotional items.

Ensuring a consistent and professional design across all these elements is crucial to leave a lasting impression on new and existing customers.

A well-crafted Corporate ID reinforces your brand image and fosters a sense of trust and reliability among your target audience.

It also helps establish a strong and cohesive brand presence in the competitive computer shop industry.

You can see our page for an overview of your logo , business cards , website , and business sign , or see A Complete Introduction to Corporate Identity Packages.

11. Writing a Business Plan

The Importance of a Business Plan

A business plan is crucial, especially for computer shops looking to thrive in a competitive market.

This blueprint is pivotal when seeking funds or drawing the attention of potential investors’ attention and serves as a roadmap during both the formative phase and the routine operations of your shop.

Crafting Your Vision

Writing a business plan demands significant effort and contemplation. You’re crafting a tangible depiction of your envisioned computer shop through this exercise.

Delving into its intricacies requires patience, but the reward is a comprehensive understanding of your startup requirements and a lucid operational strategy.

Options for Creating Your Business Plan

Remember, when drafting your business plan for your computer shop, you’re not restricted to a single approach.

Whether you start from the ground up, seek professional assistance, adopt a template, or employ business plan software, it’s fundamental to immerse yourself actively in the formulation.

Even if you lean towards professional help, your active involvement ensures your business plan resonates with your computer shop’s unique ethos and operational nuances.

Dynamic Nature of Your Business Plan

As you navigate the complexities of the tech industry and gain deeper insights into your clientele’s preferences, it’s natural for your business strategies to evolve.

Thus, revisiting and refining your business plan regularly is recommended and essential.

Such periodic revisions ensure that your strategies align with the market dynamics and your computer shop’s growth trajectory.

A Fictitious Business Plan Example for a Computer Shop

Sample Business Plan: “Tech Haven Computer Shop”

Executive Summary

Business Name: Tech Haven Computer Shop

Location: 123 Silicon Avenue, Tech City, USA

Mission Statement: To provide comprehensive computing products and unmatched tech services, ensuring every customer feels informed and satisfied.

Business Objectives

• Establish a trusted brand within the local community by the end of Year 1.
• Offer a diverse range of the latest computing products and accessories.
• Introduce tech workshops by the end of Year 2, enhancing customer engagement.

Products and Services

• Desktop Computers (Branded & Custom Builds)
• Laptops & Notebooks
• Accessories (Keyboards, Mice, Headsets)
• Software & Antivirus Packages
• Computer Repairs and Maintenance
• Software Installations
• Consultations & Custom PC Builds

Market Analysis

Target Market:

• Students, professionals, and gaming enthusiasts within the Tech City area.
• Local businesses in need of computer systems and maintenance services.

Competitive Analysis: There are three other computer shops within a 5-mile radius. Tech Haven will differentiate by offering custom PC builds and tech workshops.

Marketing and Sales Strategy

• Launch Promotion: 10% off for the first month.
• Community Engagement: Hosting monthly tech workshops and seminars.
• Digital Presence: Establish a website and maintain active social media profiles on platforms like Facebook and Instagram. Collaborate with local tech influencers for promotions.

Operational Plan

• Store Hours: Mon-Sat, 10 AM – 7 PM.
• A team of 5, including two salespersons, two technicians, and a manager.
• Regular inventory checks and updates every Monday.

Management and Organization

Owner: Jane Doe Manager: John Smith Technicians: Alice Williams, Bob Brown Salespersons: Charlie Green, David Black

Financial Projections

• Revenue: $500,000
• Expenses: $350,000
• Profit: $150,000

Year 2 (with the introduction of workshops):

• Revenue: $650,000
• Expenses: $400,000
• Profit: $250,000

Tech Haven aims to become the go-to computer shop in Tech City, emphasizing community involvement, top-tier products, and unparalleled services.

As the business grows and the market landscape evolves, this plan will be revisited and adjusted accordingly.

Remember, while this is a fictitious example, it covers the essentials of a business plan for a computer shop.

Business plans should be more comprehensive, tailored to specific circumstances, and often require detailed research and professional guidance.

For information on creating your business plan, see, How to Write a Business Plan.

12. Banking Considerations

Choosing the Right Bank for Your Computer Shop

Consider choosing a nearby bank that caters to business owners.

Separate Business Account: Efficient Expense Management

A separate business account separates your business expenses from personal spending. As a result, it’s easier to track expenses and manage your bookkeeping and can provide proof in case of a tax audit.

Develop a Professional Relationship with Your Banker

Developing a professional relationship with your banker is also a good idea. They can assist you with advice and financial services and streamline applications.

Accepting Electronic Payments: Apply for a Merchant Account

You will also want to consider applying for a merchant account or a similar setup to accept credit and debit cards.

This allows your computer shop to offer convenient payment methods to customers, enhancing their shopping experience and increasing sales.

Accepting electronic payments aligns with modern business practices, making your computer shop more appealing to tech-savvy customers.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

13. Getting the Funds for Your Operation

Obtaining Funding for Your Computer Shop

If you require financial assistance to launch your computer shop, the following tips can be useful, particularly if you’re considering applying for a loan.

Exploring Funding Options

Securing funds to start and operate your computer shop is essential. Fortunately, various funding options are available, including traditional lenders, private loans, investors, and leveraging assets or collateral.

Meeting with a Loan Officer: Key Considerations

When meeting with a loan officer to discuss your funding needs, there are some important considerations to keep in mind:

• Research and Preparation: Thoroughly research potential lenders and their loan offerings before the meeting. Prepare a well-structured business plan outlining your computer shop’s vision, mission, and financial projections.
• Financial Projections: Be prepared to present realistic financial projections for your computer shop, including revenue forecasts, cash flow estimates, and projected expenses.
• Credit History and Score: Your credit history and score significantly influence loan approval. Ensure your credit report is accurate and in good standing.
• Collateral and Assets: Gather the necessary documentation to substantiate their value and ownership if you plan to use collateral or assets to secure the loan.

Sample List of Documents for a Business Loan Application (NEW Computer Shop):

• Business Plan
• Business License and Registration
• Financial Statements (Income Statement, Balance Sheet, Cash Flow Statement)
• Bank Statements (Personal and Business)
• Tax Returns (Personal and Business)
• Identification (Driver’s License, Passport, etc.)
• Collateral Documentation (if applicable)
• Credit Report and Score
• Legal Agreements (Partnership Agreements, Lease Agreements, etc.)

Being well-prepared and organized can increase your chances of obtaining funding for your new computer shop and pave the way for a successful business venture.

See, Getting a Small Business Loan for more.

14. Software Setup

Software Considerations for Your Computer Shop

Selecting the right software is crucial for efficient operations and seamless data management when setting up your computer shop. Here are some essential factors to consider:

• Implementation Ease: Research software options thoroughly before making a decision. Implementing a program from scratch is easier than switching to a new system after your data is already in another program.
• Demo and Reviews: Look for software providers that offer demos. This allows you to explore the features and functionalities firsthand. Additionally, read reviews and participate in forums to learn from other’s experiences with the software.
• Accounting Software: Research software solutions for tracking expenses and preparing financial documents for tax filing. Consulting with your bookkeeper or accountant can help you choose the most suitable accounting software for your computer shop.

List of Software to Consider for Your Computer Shop:

• Point of Sale (POS) Software: Enables efficient sales transactions, inventory management, and customer tracking.
• Inventory Management Software: Helps track stock levels, monitor product movements, and streamline inventory control.
• Customer Relationship Management (CRM) Software: Aids in managing customer interactions, enhancing customer satisfaction, and driving sales.
• Accounting Software: Simplifies financial management, bookkeeping, and tax preparation tasks.
• E-commerce Platform: If you plan to sell online, consider an e-commerce platform to manage your online store.
• Data Backup and Recovery Software: Essential for safeguarding your computer shop’s critical data from potential losses or hardware failures.

Choosing the right software can significantly impact your computer shop’s efficiency and overall success, so take the time to explore options that best suit your specific needs.

Check out Google’s latest search results for software packages for a computer shop.

15. Get The Right Business Insurance

Insurance Considerations for Your Computer Shop

Incidents can happen anytime, so you must have the right insurance before any activity occurs at your computer shop.

Comprehensive Coverage:

Consider insurance policies that offer comprehensive coverage to protect various aspects of your computer shop, including customers, employees, premises, property, and any potential liabilities.

Professional Liability Insurance:

As a computer shop owner, consider obtaining professional liability insurance to safeguard your business against potential lawsuits or claims arising from errors or omissions in your services.

Expert Guidance:

Utilize the services of a competent insurance broker who specializes in the computer shop industry. They can guide you through the insurance selection process and ensure sufficient coverage tailored to your business needs.

Property and Asset Protection:

Ensure your insurance policy adequately covers your computer shop’s physical assets, such as computers, peripherals, inventory, and other valuable equipment, in case of theft, damage, or disasters.

General Liability Insurance:

Consider obtaining general liability insurance to protect your computer shop from third-party claims related to bodily injury, property damage, or advertising mistakes.

Business Interruption Coverage:

Explore business interruption coverage, which provides financial protection in case your computer shop faces unexpected disruptions that result in lost income or temporary closure.

Cyber Liability Insurance:

Given the nature of your business, consider cyber liability insurance to protect against data breaches, cyberattacks, and associated legal expenses.

Workers’ Compensation Insurance:

If you have employees, ensure you have workers’ compensation insurance to cover medical expenses and lost wages in the event of work-related injuries or illnesses.

Review and Update:

Regularly review and update your insurance policies as your computer shop grows and evolves, ensuring your coverage remains adequate and up-to-date.

Proper insurance coverage protects your computer shop from unforeseen risks and potential financial losses. Take the time to carefully assess your insurance needs and select policies that provide comprehensive protection for your business.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for computer shop insurance .

16. Select Suppliers

Selecting Reliable Suppliers for Your Computer Shop

Establishing a strong relationship with reputable suppliers is crucial for the success of your computer shop. Having reliable and trustworthy suppliers is key to ensuring smooth operations and profitability.

Competitive Pricing and Profit Margins:

A reliable supplier can offer competitive prices for computer components and equipment, allowing you to pass on cost savings to your customers and increase your profit margin.

Sufficient Stock Availability:

Maintaining a good relationship with your suppliers ensures that you always have a steady and sufficient stock of computer products, preventing disruptions in fulfilling customer demands.

Mutually Beneficial Approach:

Treating your suppliers respectfully and ensuring they benefit financially from the partnership is essential. This approach improves your working relationship, fostering a long-lasting and fruitful collaboration.

Building strong partnerships with suppliers in the computer shop industry enables you to provide top-quality products to your customers and run your business efficiently, ensuring customer satisfaction and long-term success.

For More See, How To Choose a Supplier.

17. Physical Setup

A computer shop’s physical setup/layout is crucial for creating a welcoming and functional environment. Organize the space efficiently to showcase products and facilitate easy navigation for customers. Arrange display areas logically and ensure ample space for product demonstrations and customer inquiries. A well-planned layout enhances the shopping experience and encourages customers to explore your computer shop further.

2. Signage:

Signage is essential to guide customers and showcase your computer shop’s professionalism. Along with the main business sign, strategically place signs in relevant locations like parking lots, exits, and special areas. Well-designed signs direct people and promote a positive image of your operation. Clear and informative signage aids in customer orientation and adds to the overall appeal of your computer shop.

3. Office Setup:

A well-organized office is vital as managing your computer shop will require considerable time spent in this space. Ensure your office is fully equipped with all the necessary tools and resources for effective business management. Furnish it with essential office equipment, storage solutions, and technology to support your administrative tasks. A tidy and functional office setup boosts productivity and enables smooth operations in your computer shop.

See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

18. Creating a Website

Benefits of Having a Website for Your Computer Shop

Having a website for your computer shop offers numerous advantages. It serves as an online storefront, allowing customers to explore your products and services from the comfort of their homes.

Marketing Tool: Establishing Expertise

You can also use your website as a marketing tool.

You establish yourself as an expert by regularly blogging about your industry and sharing valuable tips and insights tailored to your customers.

This builds customer trust and can increase sales and a stronger presence in the competitive computer shop industry.

For more, see How to Build a Website for Your Business .

19. Create an External Support Team

Building a Support Team for Your Computer Shop

An external support team of professionals is a group of experts you can rely on for valuable advice and services. It’s essential to note that these individuals are not on your payroll, allowing you to access their expertise as needed.

Diverse Expertise:

Ideally, you can utilize their services per project, contractual, or hourly.

While you may already collaborate with certain individuals, considering them as part of your team helps you appreciate their significance and allows adding more members.

Continuous Development:

You don’t need to have all these professionals in place before starting your computer shop.

Building strong professional relationships takes time but is an ongoing effort that brings long-term benefits.

Your Support Team May Include:

Your support team may consist of professionals such as an accountant, a lawyer, a financial advisor, a marketing specialist, technical advisors, and consultants.

With a robust support team, you have a network of dependable experts ready to assist whenever you need their specialized services and guidance.

For more, see, Building a Team of Professional Advisors for Your Business.

20. Hiring Employees

Building Your Team for the Computer Shop

In the early stages of operating your computer shop, you might handle most tasks yourself to avoid the initial expense of hiring employees.

This approach is practical when manageable, as payroll can be a significant expense, especially during the startup phase.

However, managing and operating everything alone may become overwhelming as your computer shop grows.

Hiring employees can significantly improve productivity , especially when you find the right people to join your team.

List of Jobs Needed to Run a Computer Shop:

The following are job positions or outsourced services you may want to consider as your computer shop grows and becomes successful:

• Sales Associates
• Computer Technicians
• Customer Support Representatives
• Inventory Managers
• Marketing Specialists
• Website Developers
• Administrative Assistants
• Accounts and Finance Managers
• IT Support Staff
• E-commerce Managers
• Social Media Managers

As your computer shop expands, assembling a competent and dedicated team ensures efficient operations and enhanced customer satisfaction.

Outsourcing certain services can also be beneficial to access specialized expertise while controlling operational costs.

For more, see, How and When to Hire a New Employee.

Points To Consider

Hours of operation:.

Hours of Operation to Consider for a Computer Shop:

• Opening Time: 9:00 AM
• Closing Time: 6:00 PM
• Opening Time: 10:00 AM
• Closing Time: 4:00 PM
• Closed (Considered as a rest day)

Note: Depending on your target market and customer preferences, you may adjust the hours of operation accordingly.

Additionally, consider any seasonal variations or special events that may impact your computer shop’s schedule.

A List of Equipment and Supplies to Consider for a Computer Shop:

• Computers: To showcase and demonstrate various models and configurations to customers.
• Computer Accessories: Keyboards, mice, monitors, speakers, webcams, etc.
• Printers and Scanners: For document printing, scanning, and copying services.
• Networking Equipment: Routers, switches, and cables for creating a network and offering internet connectivity.
• POS System: Point of Sale system for processing transactions and managing sales.
• Cash Register: For handling cash transactions.
• Barcode Scanners: To streamline inventory management and sales processes.
• Security Cameras: For surveillance and protection against theft and unauthorized access.
• Furniture: Display shelves, counters, chairs, and tables for customer and staff use.
• Workstations: Desks, chairs, and computers for employees.
• Storage Cabinets and Shelving: For organizing and storing inventory and equipment.
• Display Stands: To showcase laptops, tablets, and other products.
• UPS (Uninterruptible Power Supply): Provides backup power in case of power outages.
• Software Licenses: Operating systems, office productivity software, antivirus programs, etc.
• Repair Tools and Equipment: Screwdrivers, soldering tools, anti-static mats, etc.
• Workshop Area: A designated space for computer repairs and maintenance.
• Packaging Materials: Boxes, bubble wrap, and packing tape for shipping products.
• Signage and Branding Materials: Business signs, banners, and promotional materials.
• Security System: Alarm system and access control for enhanced security.
• Cleaning Supplies: To maintain a clean and presentable store environment.

Remember that the specific equipment needs may vary based on the scale and scope of your computer shop business.

Tailor the list according to your business requirements and growth plans.

Marketing Considerations

A computer shop without customers is not a real business. To succeed, you must attract customers, especially when your operation is new, and people are unaware of it.

Building a good reputation over time will make it easier to attract customers, and you’ll gain more marketing experience.

Marketing your computer shop is an ongoing process. Investing in effective marketing techniques leads to increased revenue.

While you don’t always need a marketing agency or expert, you can handle marketing yourself.

Think of it as bringing awareness to your business whenever opportunities arise.

See our article How To Get Customers Through the Door

Potential Partnerships for Your Computer Shop

Local Office Supply Stores

When individuals or businesses often buy office supplies, they might also be in the market for new tech equipment or services.

By partnering with office supply stores, they can recommend your computer shop to customers, and you can reciprocate by directing clients their way or offering tech support deals.

Independent Software Developers

Local software developers often have clients needing hardware to run their newly developed programs. A mutual referral system can benefit both parties.

Educational Institutions

Schools and colleges regularly require tech supplies and services. By forming a partnership, these institutions could refer students or staff to your shop for their personal tech needs.

Small Business Centers and Co-working Spaces

Entrepreneurs and startups often require tech support and equipment. Collaborating with these centers can provide a steady clientele looking for quality computer products and services.

Print and Copy Shops

People visiting these places often have tech needs. A partnership might involve them recommending your shop for computer-related queries, and in return, you could offer their customers discounts on printing or other services.

Graphic Design Studios

Designers need high-performance computers and might require specialized hardware.

These studios could refer clients to your shop, and you could offer them deals on tech support or other services.

Rewarding Referrals

In appreciation for referrals, you can provide partners with a referral fee or special discounts that benefit their business and clients.

Forming alliances with local businesses can drive traffic to your computer shop and help you establish a foothold in the community. It’s a win-win for everyone involved!

Marketing Offers

Irresistible Offers for Your Computer Shop

For New Customers:

• Introductory Discounts: Offer first-time customers a discount on their initial purchase. This could be a 10% off on their first computer or accessory purchase.
• Free Tech Consultation: Offer a complimentary 30-minute tech consultation to assess their computer needs. It helps in building trust and offers a personalized experience.
• Bundle Deals: Pair popular products together at a discounted price, such as a laptop with a complementary mouse or keyboard.
• Referral Program: Encourage new customers to bring a friend, and both get a discount on their purchase.
• Tech Workshop Invite: Host beginner tech workshops on topics like ‘Getting Started with Your New PC’ and invite potential customers for free.

For Existing Customers:

• Loyalty Program: Introduce a point system where purchases accrue points that can be redeemed for products or services.
• Exclusive Sales: Offer special sales events or early access to new product launches reserved for returning customers.
• Upgrade Discounts: Provide special discounts for existing customers looking to upgrade their old computers or accessories.
• Free Maintenance Check: Once a year, offer a free computer check-up or cleaning to keep their devices in optimal shape.
• Customer Feedback Reward: Encourage feedback on products or services and offer a discount on their next purchase for their input.

Sample Ads for a Computer Shop:

• “Revamp Your Tech Life!” Discover the latest in computers and accessories. Drop by today and experience the future.
• “Unbeatable Computer Deals Await!” Dive into our limited-time offers. Upgrade your tech without breaking the bank.
• “Tech Troubles?” Get a free 30-minute consultation with our experts. Find your perfect computer match today!
• “Exclusive Loyalty Discounts!” To our esteemed customers, enjoy special offers tailored just for you. Swing by and see what’s new.
• “Stay Ahead of the Curve!” Dive into our newest collection of cutting-edge computers and accessories. Elevate your tech game today!

Crafting compelling offers and attention-grabbing ads is crucial to stand out in the competitive landscape of computer retail.

You can attract and retain a loyal customer base with the right approach.

Simple Marketing Ideas 

Spread the Word about Your Computer Shop

• Tech Blogging: Start a blog connected to your shop’s website, where you discuss tech trends, computer maintenance tips, and the latest software updates. It establishes you as an authority in the field and drives organic traffic.
• Local Radio Ads: Use local radio stations to advertise special promotions, new product arrivals, or tech services you provide.
• Community Bulletin Boards: Pin flyers or posters highlighting sales, promotions, or tech workshops at community centers, libraries, and local grocery stores.
• Host a Tech Day: Organize an event at your store where locals can come in for free diagnostics, tech advice, or to test out new products.
• Customer Testimonials: Encourage satisfied customers to share their positive experiences on platforms like Google Reviews, Yelp, and even on your own website.
• Engage on Social Media: Regular posts, interactive polls, and tech quizzes can engage the community and make them aware of your offerings.
• Local Newspaper Ads: A well-placed ad or an informative article about computer care can capture the attention of local readers.
• Partnerships with Schools: Offer special student discounts or collaborate with schools to provide tech support or equipment.
• Window Displays: Regularly update the storefront with attractive displays showcasing the latest products or services.
• Attend Local Fairs or Markets: Set up a stall or booth at local events to showcase your products, hand out flyers, and engage with potential customers face-to-face.

Promoting your computer shop requires a mix of traditional advertising methods and innovative, community-focused strategies.

The key is to be consistent and engage with the community in a way that resonates with their tech needs.

See our marketing section for articles that will provide ideas to bring awareness to your business.

Evaluating Your Skill Set for Running a Computer Shop

It’s crucial to focus on your skill set and assess whether you possess the right abilities to run a computer shop successfully.

Remember, if you lack any essential skill, you can learn it or hire someone with the required expertise.

List of Essential Skills for a Computer Shop Owner:

• Technical Knowledge: Understanding computer hardware, software, and troubleshooting.
• Customer Service: Providing exceptional service and addressing customer inquiries.
• Sales and Marketing: Promoting products and attracting customers to drive sales.
• Inventory Management: Efficiently managing stock levels and product availability.
• Financial Management: Handling finances, budgeting, and profit analysis.
• Business Development: Strategizing and expanding the computer shop’s offerings and market reach.
• Problem-Solving: Resolving issues and finding solutions for various challenges.
• Leadership: Effectively managing and motivating a team of employees.
• Communication: Clear communication with customers, employees, and suppliers.
• Time Management: Prioritizing tasks and ensuring smooth operations.

Having these essential skills equips a computer shop owner to effectively navigate the complexities of the business and achieve long-term success.

Expert Tips

Gaining insights from expert tips can enhance your skill set, regardless of your expertise level.

Experts may discover more efficient methods or alternative perspectives, while novices can acquire numerous valuable tips to boost their skills and knowledge.

See the latest search results for expert computer shop tips to gain tips and insights.

In this section, you will find valuable resources curated to provide the latest and most popular information in the computer shop industry.

These resources are beneficial during startup and when your computer shop is fully operational.

Use them to gain insights into the industry and access tips for enhancing your business operations.

Trends and Statistics

Examining industry trends and statistics for a computer shop offers valuable insights and advantages.

It enables businesses to identify emerging market patterns, consumer preferences, and competitors’ performance, facilitating informed decision-making and strategic planning for sustainable growth.

See the latest search results for trends and statistics related to the computer shop industry.

Computer Shop Associations

Trade associations provide several advantages, such as staying updated on industry news and accessing valuable networking opportunities.

These benefits become particularly apparent during events organized by the associations, fostering knowledge exchange and business connections.

See the search results related to computer shop associations.

Top Computer Shop

Analyzing established computer shops can spark ideas to identify gaps in the industry where you can introduce unique offerings or discover overlooked aspects of your business.

Learning from others’ experiences can inspire improvements and innovation.

See the latest search results for the top computer shops.

The Future of the Computer Shop Industry

Researching the industry’s future offers prospective computer shop owners valuable insights and advantages.

It helps understand upcoming trends, potential growth areas, and emerging technologies, aiding in making informed decisions and strategic plans for a successful and sustainable business.

See the search results for the future of the computer shop industry.

Computer Shops for Sale

Considering an existing computer shop for purchase has its advantages and drawbacks.

Benefits of Buying an Established Computer Shop:

• Immediate Revenue Generation
• Avoidance of Startup Phase
• Proven Business Model
• Known Revenue, Profit, and Expenses
• Existing Customer Base
• Established Reputation

Disadvantages of Buying an Established Computer Shop:

• Higher Cost due to Goodwill (customer base purchase)
• Potential Customer Loss if Business Operations Change
• Inheriting Both Positive and Negative Reputation

Even if an exact match is unavailable, exploring existing computer shops for sale in the same industry can be insightful. Use the following link to explore available options.

Businesses for sale: See the latest results for a computer shop and others related to this business model.

Franchise Opportunities Related to a Computer Shop

Exploring the option of buying a computer shop franchise offers both advantages and disadvantages worth considering before starting a business. Understanding these opportunities may unveil aspects related to computer shops that were previously overlooked.

Pros of Buying a Computer Shop Franchise:

• Proven Business Model: Follow a pre-established plan provided by the corporate office.
• Established Reputation and Marketing: Benefit from the franchise’s brand recognition and marketing efforts.
• Comprehensive Knowledge: Gain insights into all aspects of the business before committing.
• Corporate Support: Receive support and guidance from the corporate office.

Cons of Buying a Computer Shop Franchise:

• Higher Initial Investment: Franchise ownership can be expensive.
• Limited Autonomy: Major changes require corporate approval.
• Product/Service Restrictions: Only approved products/services can be offered.
• Adherence to Agreement: Operate strictly within the terms of the franchise agreement.
• Ongoing Franchise Fees: Continual payment of franchise fees.

Even if an exact computer shop franchise match is unavailable, exploring franchises in the same industry can be beneficial.

Use the following link to explore available opportunities.

See the latest search results for franchise opportunities related to this industry.

Knowledge Is Power if You Use It!

Knowledge is a powerful tool in the computer shop industry when applied effectively!

Online resources offer a wealth of information about the computer shop business.

Explore the provided links in the following sections for valuable insights that can aid you in research, startup phases, and the full operational capacity of your computer shop.

Empower yourself with the knowledge to drive success in your venture.

Computer Shop Managers Interviews

Interviews with experienced business owners in the computer shop industry provide valuable information and insights.

Taking time to delve into this section offers a diverse perspective and valuable insights, preparing you for what to expect in the industry.

See the search results related to interviews of computer shop owners.

Computer Shop Insights

Exploring tips and insights in the computer shop industry can spark innovative ideas, highlight potential pitfalls to avoid, and enhance your knowledge in the field.

It is a valuable resource for improving business strategies and gaining a competitive edge.

See the latest search results leading to resources about  Computer Shop Insights.

Computer Retail and Service Industry Publications

Publications are an excellent means to stay updated with the latest information about a computer shop.

These valuable resources offer insights, trends, and industry news, aiding business owners in making informed decisions and staying competitive in the market.

See the search results for Computer Retail and Service Industry publications.

Computer Retail and Service Industry Forums

Computer shop forums offer an opportunity to participate in hot-topic discussions and build industry relationships.

Understanding customer perspectives through these forums provides invaluable insights to enhance your business strategies and interactions.

See the latest search results related to Computer Retail and Service Industry forums.

Courses provide an excellent opportunity to learn, enhance your skillset, and stay updated with the latest developments in the computer shop industry.

Engaging in courses ensures continuous professional growth and competence.

See the latest courses related to IT Hardware and Software  and our management articles to provide insights and tips on managing Your business.

Computer Shop Blogs

Subscribing to computer shop blogs provides valuable ideas and informs you about industry trends.

Subscribing to various blogs and filtering out irrelevant ones, you build a collection of informative resources that constantly flow valuable information to enhance your knowledge and business strategies.

Look at the latest search results for computer shop blogs to follow.

Computer Retail and Service Industry News

Staying updated with the Computer Retail and Service Industry is easily achieved through news outlets.

Set up alerts to receive timely notifications whenever the media cover new developments.

Videos about the computer shop industry provide valuable tips and insights.

Exploring related videos suggested by YouTube often unveils previously overlooked topics, enhancing your knowledge and understanding of the industry.

See the links to YouTube Videos Below.

• Videos related to starting a computer shop can be found here.

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How to Start a Computer Business

Last Updated: June 5, 2024 References

This article was co-authored by Luigi Oppido and by wikiHow staff writer, Christopher M. Osborne, PhD . Luigi Oppido is the Owner and Operator of Pleasure Point Computers in Santa Cruz, California. Luigi has over 25 years of experience in general computer repair, data recovery, virus removal, and upgrades. He is also the host of the Computer Man Show! broadcasted on KSQD covering central California for over two years. This article has been viewed 200,716 times.

While your dream may be to start the next Apple or Microsoft out of your garage, it is more likely that your desire to start a computer business involves dealing with existing systems via sales, service, or support. With the rapid changes in technology that have already led some to place us in the “post-PC era,” [1] X Research source the job of a computer repair person , for instance, has changed quite a bit from ten years ago and will surely be quite different ten years from now. Beyond keeping up with changing technology and maintaining your expertise, however, starting a computer business requires many of the same skills required of any other small business field — things like a clear business plan, a smart marketing strategy , and outstanding customer service.

Aligning Your Skills and Goals With the Market

• Have you ever dissected, reassembled, or repaired a computer? Are you familiar with all major operating systems? Have you worked in the computer field before? Honestly assess your readiness to start a computer business, or ask someone else with industry knowledge help you make the assessment.
• Completing a degree in the computer field will certainly help you in starting a business, but it is unlikely that most customers will ask to see your diploma. More important is your ongoing gathering of experience, whether through education, training, or employment.
• Certification is a good way to indicate expertise, though. You may want to seek A+ certification from the Computer Technology Industry Association (CompTIA), or the related N+ network certification, or become a Microsoft Certified System Engineer (MCSE). [2] X Research source These can help give your business card an air of legitimacy.

• In this so-called “post-PC era,” you may find demand for traditional computer sales, service, and/or support to be much reduced, especially among a younger, tech-savvy population. However, especially in areas with older populations and/or small-town and rural areas, you may find a greater percentage of people in need of PC repairs and support. Remember, you need to keep up with the latest technology; many of your potential customers do not (and will not). [3] X Research source [4] X Research source

• New technology is meant to make life easier, but many consumers find it to be just another layer of confusion. General set-up and troubleshooting tasks, like setting up printers and wireless networks, data recovery and wiping, and media archiving or editing, may remain a viable component of your business, even if PC repair requests decrease.
• If you can prove yourself to be an expert on computers and related technology, and can build a positive reputation, you should be able to find a niche for your computer business.

• If you’re looking to keep your computer business as a part-time job, then keeping your focus on repairs and troubleshooting may suffice.
• Building your business into a full-time occupation, however, may require further diversification of the products and services you offer, perhaps by selling parts, accessories, or entire systems. You’ll need to draw in a loyal client base and build a positive reputation in the community.

Brandon Phipps

Your core goal is to offer benefits to your customers for a fair price. By providing such a service, you can earn a significant income while doing something you are skilled at and helping others.

Succeeding in the Computer Business

• Even if computers are your focus, expect people to seek help and guidance with all sorts of mobile technology, from phones to tablets to watches. You may or may not want to get into the mobile tech sales and/or service business — consider the increased inventory demands, for instance — but being able to provide general troubleshooting, training, and support on the latest devices may prove quite useful. [6] X Research source
• If home service calls are part of your business, the essential toolkit you take with you will continue to shift along with technology. However, you can find a good list of basic equipment you’ll need (for the time being) at https://www.technibble.com/categories/starting-computer-repair-business/ .

• You’ll deal with panicked customers who think they’ve just lost all their important files, irate customers who want immediate help at 10 p.m., and hovering customers who want to supervise (and ask about) every move you make. You need to be able to remain calm , courteous, and patient. As a small business, you’re not likely to be able to match the prices of your larger competitors — the personalized service you offer needs to offset this disadvantage.

• Put some thought to your business name, logos , signage, marketing, etc. Create a professional look that presents your business as legitimate and lasting.
• Referrals will be essential to your business. Always hand out professional-looking business cards to existing customers, and consider offering referral discounts or rewards. Throwing in some free service or equipment is a small price to pay in order to build up your customer base. [8] X Research source
• Especially if you don’t have a storefront, make your business website and/or social media presence appear professional and interconnected to your overall brand.

• Working from home, for instance, offers more flexibility and less overhead costs, but also offers less visibility and possibly more distractions. A well-placed storefront adds to your visibility and helps legitimize your business in the public’s mind, but it comes at a cost and tends to lock you into a more rigid schedule.
• If you focus on computer repairs, working in your own shop may limit distractions and save you time and travel money, but customers may be more comfortable with you working on the equipment in their homes. (Your potential liability is also likely to be reduced when you don’t take the equipment with you.)

Starting a Small Business: Some Basics

• See How to Write a Business Plan for a good primer on the process of creating this important document.

• You may want to save on taxes by having customers pay cash “under the table” and not reporting the income, but this gives your business an air of illegitimacy (as well it should) for your customers. You are better off paying the taxes and appearing (and being) legitimate. [9] X Research source
• How to Open a Small Business offers some nice information on the legal requirements of establishing a business. The U.S. Small Business Administration website is also a great resource; see, for instance, https://www.sba.gov/content/follow-these-steps-starting-business .

• Volunteer some of your time and expertise. Be a supporting sponsor at community events (with the requisite public recognition, of course). Use your advertising and branding to develop a sense of stability and permanence for your business, even in a field that changes as rapidly as computers.
• No matter the nature of your small business, you need to be visible, you need to be reliable, and you need to provide a personalized experience that builds customer loyalty.

Expert Q&A

You Might Also Like

• ↑ https://www.technibble.com/moving-wearable-mobile-repair-post-pc-era/
• ↑ http://www.computerhope.com/issues/ch001553.htm
• ↑ https://www.technibble.com/categories/starting-computer-repair-business/
• ↑ http://www.mytopbusinessideas.com/computer/
• ↑ http://www.tomshardware.com/answers/id-1813630/starting-computer-repair-setup-consulting-business-tips.html

About This Article

To start up a successful computer business, find a way to match your skills with the needs of your local computer market. Assess the training and experience that you have with computers to determine the type of computer business that is best suited to your talents. For example, if you have experience building personal computers, you can use your background to start up a business selling discounted computers that you assemble from parts that you acquire. In addition to your skills and experience, it’s important that you analyze the market around you to see if you can start a successful business. Consider the demographics in your area and think about what type of computer products or services they’re likely to purchase. For example, if you’re selling discounted computer systems, and your area has a large number of older people looking to buy a simple home computer, you may have a market for your business! For tips about how to build your brand identity when you’re starting a computer business, keep reading! Did this summary help you? Yes No

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ZenBusinessPlans

Home » Sample Business Plans » Technology

How to Write a Computer Sales & Service Business Plan [Sample Template]

Are you about starting a computer sales & services business? If YES, here is a complete sample computer sales & services business plan template & feasibility report you can use for FREE . According to a recent report, computer sales and related services are expected to exceed $47 billion this year in the U.S. alone, with computer servicing leading the way.

This goes to show that any entrepreneur who properly positions himself or herself in computer sales and servicing industry would definitely enjoy good business turnover. As a matter of fact, almost all businesses and homes have computers, and these people may not have the skills, time or the desire to do their own computer servicing, repairs and upgrades, and that puts a computer physician right in the middle of one of the fastest-growing industries in the world.

A Sample Computer Sales & Services Business Plan Template

1. industry overview.

The computer sales and servicing industry includes operators that mainly sell and service all forms of computers such as desktops, laptops, notebooks, palmtops and software, as well as accessories like printers, scanners and keyboards. These goods are generally purchased from domestic and international manufacturers and wholesalers and then sold to end consumers, including households and businesses.

Computers have exploded throughout America and the world over the past 30 years – from 2,000 units shipped in 1960 to 900,000 in 1980 to 7 million in 1990 to over 15 million per year by 2003 to over 65 million per quarter in 2015. With this rapid growth, there has been a corresponding increase in the need for computer services.

If you are conversant with happenings in the Computer Sales and Services industry, you will notice that computers are rapidly becoming indispensable household and personal products. In spite of the growing ubiquity of these products, retailers of computers, peripherals and consumer electronics have experienced some time-consuming challenges over the past five years.

Swift technological change, increased production efficiency and a highly globalized supply chain have lowered computer retail prices, hampering the industry’s revenue potential.

In addition, the increasing adoption of e-commerce has reduced customer traffic in computer stores, further limiting revenue. More consumers are now taking advantage of online shopping, which facilitates product and price comparisons. Going forward, industry revenue is expected to decrease.

The Computer Sales and Services industry is indeed a large industry and pretty much active in most countries of the world. Statistics has it that in the united states of America alone, there are about 18,173 registered and licensed (big, medium scale and small) computer manufacturing companies scattered all across the United States responsible for employing about 94,791 people and the industry rakes in a whooping sum of $29 billion annually.

The industry is projected to enjoy -0.4 percent annual growth within 2012 and 2017. It is important to state that Apple Inc., Best Buy Co. Inc. and Fry’s have lion shares of the available market in this industry.

Computer sales account for an estimated 44.0 percent of industry revenue in 2017. Products in this segment include desktops and laptops, with laptop sales outpacing that of desktops. While desktops were historically the most commonly purchased computer product, the falling price of computers and computer components over the past five years reduced the premium that laptops once commanded over desktops.

A majority of consumers’ favor laptops for their portability, augmented by the increasingly wireless data infrastructure. However, desktops still maintain advantages in niche market, particularly with gaming enthusiasts and computer power users who prefer a desktop computer’s superior upgrade potential, ease of repair and customizability.

No doubt everybody will quite agree that the computer sales and services industry has come to stay and of course it is one industry that plays key roles not only in the business world, but also in almost all aspects of what goes around in our world today as long as computers are involved.

Over and above, the Computer Sales and Services industry is an open industry hence a low level of market share concentration. Even though large multiservice agencies operate in the industry, revenue is also spread among thousands of small computer stores and repair centers.

2. Executive Summary

Harry & Barry® Computer Sales & Services Center, LLC is a U.S based computer sales and services company. We have been able to secure a standard store facility in a central business district in Phillips Avenue, Sioux Falls – South Dakota. We are set to compete in the highly competitive computer sales and services industry not only in Sioux Falls – South Dakota, but also throughout the United States market.

Harry & Barry® Computer Sales & Services Center, LLC will engage in the sales and servicing of all forms of computers such as desktops, laptops, palmtops and software, as well as accessories like printers, scanners and keyboards. Our business goal is to become one of the top brands in the computer sales and services industry in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.

Our workers are going to be selected from a pool of certified and highly experienced computer sales and services engineers in and around Sioux Falls – South Dakota and also from any part of the United States of America as the business grows. We will make sure that we take all the members of our workforce through the required training that will position them to meet the expectations of the company.

At Harry & Barry® Computer Sales & Services Center, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Harry & Barry® Computer Sales & Services Center, LLC is a joint partnership business that is owned by Engr. Harry Jordan a computer engineer par excellence who graduated with from Illinois Institute of Technology (B.Engr. Computer Engineering), and his friend and business partner Barry Martins (B.Sc. Business Management).

They have a combined experience that can help them build Harry & Barry® Computer Sales & Services Center, LLC to favorably compete with other leading computer sales and services businesses in the United States of America.

3. Our Products and Services

Harry & Barry® Computer Sales & Services Center, LLC is established with the aim of maximizing profits in the computer sales and services industry. We want to compete favorably with companies in the United States which is why we have put in place a competent quality assurance team that will ensure that every service rendered meets and even surpasses our customers’ expectations.

We will work hard to ensure that Harry & Barry® Computer Sales & Services Center, LLC is not just accepted in Sioux Falls – South Dakota but also in other cities in the United States of America. Our products and services are listed below;

• Sales and servicing of all sort of computers
• Sales and servicing of computer peripherals (e.g. printers, monitors, keyboards, mouse and speakers)
• Sale of computer software
• Computer installation
• Computer Cloning/upgrade
• Offering other computer repair and installation related services

4. Our Mission and Vision Statement

• Our vision is to establish a one stop computer sales and service center whose services and brand will not only be accepted in Sioux Falls – South Dakota but also in other cities in the United States of America.
• Our mission is to retail computers and related products and also to provide professional computer services that will assist businesses and individuals in ensuring that their computers are always in good shape to help them carry out their business.
• We want to build a computer sales and services company that can favorably compete with other leading brands in the computer sales and services industry.

Our Business Structure

Harry & Barry® Computer Sales & Services Center, LLC, is a computer sales and services company that intend starting small in Phillips Avenue, Sioux Falls, but hopes to grow big in order to compete with leading computer sales and services companies in the United States.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Harry & Barry® Computer Sales & Services Center, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Store Manager
• Head, Technical Services
• Human Resources and Admin Manager
• Sales and Marketing Executive
• Computer Repair and Maintenance Engineers and Technicians (10)
• Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by employing, choosing, orientating, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Accountable for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Store Manager:

• Responsible for managing the daily activities in the store
• Ensures that proper records of computers and computer parts are kept and warehouse does not run out of products
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Controls distribution and supply chain inventory
• Supervises the workforce in the sales floor
• Helps to ensure consistent quality of computers and computer parts are purchased and retailed in good price that will ensure we make good profit

Head, Technical Services:

• Serves as project manager of the organization; works directly with employees
• Maintains quality service by establishing and enforcing organization standards.
• Makes certain that the technical department performs efficiently, coordinates employee efforts, facilitates communication between management and computer repairs and maintenance engineers and technicians
• Ensures that the organization work in line with international best practices.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops executes and evaluate new plans for expanding sales
• Creates new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization.

Computer Repair and Maintenance Engineers (2) and Technicians (8)

• Responsible for general computer repairs and maintenance services
• Carry out computer installation services for clients
• Responsible for carrying out computer cloning and upgrade
• Responsible for handling Networking of computer system
• Responsible for handling virus removal Data recovery
• Handles computer and accessories sales and supply for the organization

Help Desk Officers

• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level.
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services.
• Manages administrative duties assigned by the creative director in an effective and timely manner.
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information are supplied to clients when they make enquiries.
• Find out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
• Bag, package or gift-wrap merchandise as requested by customers.

6. SWOT Analysis

Because of our quest for excellence, Harry & Barry® Computer Sales & Services Center, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured computer sales and services business that can favorably compete in the industry in the United States.

Part of what the business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Harry & Barry® Computer Sales & Services Center, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Harry & Barry® Computer Sales & Services Center, LLC;

Our core strength lies in the power of our workforce. We have a team of trained and certified computer repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry and we will ensure that we have all brands and types of computers in our store per time.

As a new computer sales and services center in Sioux Falls – South Dakota, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already highly competitive computer sales and services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities in the computer sales and services industry is massive considering the number of individuals and businesses that own computers. So also, the launch of new tablets will likely drive consumers into stores to test and compare products. As a computer sales and services company, we are ready to take advantage of any opportunity that is available in the industry.

The increasing adoption of e-commerce has reduced customer traffic in computer stores, further limiting revenue and also, the domestic PC market has shrunk due to market saturation and greater competition from tablets, are some of the threats that will confront us.

So also, one major threat that we are likely going to face is economic downturn. Another threat that may likely confront us is the arrival of a new computer sales and services center in same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

The extent at which the internet and computer has taken over our world is a pure sign that every computer literate needs the services of a computer repairer when his/her computer malfunctions – be it hardware or software.

The very nature of the Computer Sales and Services industry, with its extraordinary rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues.

With every individual armed with a computer and with almost all valuable information in our daily lives being stored in the computer, the computer selling business is booming and with this booming comes a need for repair.

Everybody with a computer knows that moment of panic when the hard drive crashes–and for business people, it usually happens when they are staring into the eye of a deadline. The need for computer physicians is growing every day and more people are venturing into this field, making it a competitive and goal oriented industry.

Lastly, the computer sales and services industry will continue to evolve due to the advancement of computer technology and software designs et al.

8. Our Target Market

Before starting our computer sales and services business in Sioux Falls – South Dakota, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who cannot successfully run their businesses without computers.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know can’t afford to do without our products and services. Below is a list of people we will specifically market our products and services to;

• Banks, Insurance Companies and other related Financial Institutions
• Blue Chips Companies
• Corporate Organizations
• Real Estate Owners, Developers, and Contractors
• Research and Development Companies
• The Government (Public Sector)
• Schools (High Schools, Colleges and Universities)
• Celebrities, Politicians, Public Figures and Public Speakers
• Sport Organizations
• Religious Organizations
• Television Stations
• Printing Press (Publishing Houses) and Authors
• Branding and Advertising agencies
• Individuals and households who own computers

Our Competitive Advantage

Surviving in the business world as a computer sales and services company requires more than your expertise, knowing how to deliver standard repairs and maintenance but also how to network with key people that matter.

We are quite aware that to be highly competitive in the computer sales and services industry means that you are not only expected to deliver reliable computer supply, installation, repair, networking and maintenance jobs, but you must be able to meet set targets.

No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects. Our competitive advantage lies in our ability to control stock at hand, our experienced work force and proximity to key markets.

We equally have a team of certified, highly trained and experienced computer repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the computer sales and service industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Harry & Barry® Computer Sales & Services Center, LLC is established with the aim of maximizing profits in the computer sales and services industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Harry & Barry® Computer Sales & Services Center, LLC will generate income by;

• Computer Cloning and upgrade

10. Sales Forecast

One thing is certain, there would always be corporate organizations and individuals who would need to purchase computers and accessories. We are well positioned to take on the available market in Sioux Falls –  South Dakota and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation.

We have been able to critically examine the computer sales and services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Sioux Falls – South Dakota.

• First Year: $350,000
• Second Year: $750,000
• Third Year: $1.2 million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are mindful of the fact that there are stiff competitions in the computer sales and services industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Harry & Barry® Computer Sales & Services Center, LLC.

Our corporate goal is to grow Harry & Barry® Computer Sales & Services Center, LLC to become one of the top 10 computer sales and services brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Sioux Falls – South Dakota but also in other cities in the United States of America.

Harry & Barry® Computer Sales & Services Center, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our computer sales and services center by sending introductory letters alongside our brochure to individuals, corporate organizations and key stake holders in and around Sioux Falls – South Dakota.
• Promptness in bidding for computer supply, installation, repair, networking and maintenance contract from the government and other cooperate organizations
• Advertise our business in relevant business magazines, newspapers, TV and radio stations.
• List our business in yellow pages’ ads (local directories)
• Attend relevant international and local expos, seminars and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
• Leverage on the internet to promote our business
• Engage direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our in-house brand and publicity consultant to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate and individual clients in the whole of the Sioux Falls and beyond which is why we have made provisions for effective publicity and advertisement of our computer sales and services company.

Below are the platforms we intend to leverage on to promote and advertise Harry & Barry® Computer Sales & Services Center, LLC;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like Instagram, Facebook, twitter, YouTube, Google + et al to promote our services.
• Install our billboards in strategic locations all around Sioux Falls – South Dakota.
• Engage in roadshows from time to time in targeted neighborhoods.
• Distribute our fliers and handbills in target areas.
• List our computer sales and services company in local directories/yellow pages
• Advertise our computer sales and services company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo.

12. Our Pricing Strategy

At Harry & Barry® Computer Sales & Services Center, LLC we will keep the prices of our products and services below the average market rate by keeping our overhead low and by collecting payment in advance from corporate organizations who would purchase our products or hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts like computer supply, installation, repair, networking and maintenance which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

The payment policy adopted by Harry & Barry® Computer Sales & Services Center, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Harry & Barry® Computer Sales & Services Center, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payments for the purchase of our products or our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials for this purpose.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive computer sales and services company in Sioux Falls – South Dakota and here are the key areas where we will spend our startup capital;

• The total fee for registering the business in the Unites States of America – $750 .
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Harry & Barry® Computer Sales & Services Center, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring business consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000.
• The cost for start-up inventory (stocking with a wide range of computers such as desktops, notebook computers and software, as well as accessories like printers, scanners and keyboards. et al from different manufacturing brands) – $200,000
• The cost for counter area equipment – $9,500.
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs: $10,000 .
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of launching a website: $600 .
• The cost for our opening party: $7,000 .
• Miscellaneous: $10,000.

We would need an estimate of three hundred and fifty thousand dollars ( $350,000 ) to successfully set up our computer sales and services store in Sioux Falls – South Dakota.

Generating Startup Capital for Harry & Barry® Computer Sales & Services Center, LLC

Harry & Barry® Computer Sales & Services Center, LLC is a business that will be owned and managed by Engr. Harry Jordan and his friend and business partner Barry Martins. They are the financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings and sale of his stocks.
• Generate part of the startup capital from friends and other extended family members.
• Generate a larger chunk of the startup capital from the bank.

N.B: We have been able to generate about $150,000 ( Personal savings $120,000 and soft loan from family members $30,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Harry & Barry® Computer Sales & Services Center, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell or computers and accessories and offer our computer repair and maintenance services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Harry & Barry® Computer Sales & Services Center, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility for our studio: Completed
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Secure trademark for our products: In Progress
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating official website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Opening party planning: In Progress
• Compilation of the list of products that will be available in our store: Completed
• Establishing business relationship with vendors – manufacturers and suppliers of computers, computer parts and accessories: In Progress

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Computer Repair Business Plan

This sample business plan will guide you with regards to successfully starting your own computer repair business..

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Click here to view this full business plan

Executive Summary

PC Repair will provide computer and technical consulting (repairs, training, networking and upgrade service) to local small businesses as well as home PC users. The company will focus on marketing, responsiveness, quality, and creating and retaining customer relations.

PC Repair was initially formed as a sole proprietorship, but was reconfigured as an S Corporation in December of 2004. PC Repair will at first be a home office start-up, utilizing one studio room in the owner’s home and serving customers in the local Ramsford-on-Bitstream area.

In the third month of our plan, we will move into a leased office space and hire a second technician. As sales increase, we will hire additional personnel.

The Market The very nature of the computing industry, with its extraordinary rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues.

In town, the majority of potential customers are dissatisfied with existing options, creating an attractive niche for an innovative start-up. Small business PC users will provide the majority of our business revenue.

Business Week expects the computing industry to grow at a rate of 12% and the processor speeds to continue to expand for years to come, providing a rich resource for sales.

PC Repair has decided to focus mainly on the small business market, as these customers typically don’t have a full-time IT person, but have full-time IT needs.

PC Repair will offer an affordable, on-demand service for these customers. We can also offer maintenance agreements that generate additional monthly income.

For our residential customers, we will offer a very affordable and helpful service with a very flexible schedule to meet their needs. Our target market will focus on Ramsford-on-Bitstream and the surrounding areas. Market research indicates there is an abundance of business for a small company such as PC Repair.

Start-up Funding and Financials To get PC Repair started the owner is providing cash and assets. We are also seeking a short-term loan, to be secured with the owner’s home equity, and repaid within three years.

Our conservative sales forecasts, based on industry research within the local area, project hefty sales in year one, steadily increasing through year three. To reach these goals, we will use an aggressive advertising campaign to exploit our competitors’ weaknesses.

With good cost control, we will see a modest, yet comfortable, net profit the first year, even after moving into a leased space and hiring additional technicians.

1.1 Objectives

• To provide the best service available to the community at an affordable price.
• To generate substantial market share so that PC Repair is a common name.
• Constant growth in sales from start up through year three.
• To generate customer satisfaction so that at least 40% 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 one-on-one personal attention at a very affordable price.

Our customers will receive the highest quality of customer service available. Our employees will receive extensive training, a great place to work, fair pay and benefits, and incentives to use their own good judgement to solve customers’ problems.

1.3 Keys to Success

• Establishing a brand identity and generating brand recognition through marketing.
• Responsiveness: being an on-call computer paramedic with fast response time.
• Quality: getting the job done right the first time, offering 100% guarantee.
• Relationships: developing loyal repeat customers–retainers.

Company Summary

PC Repair is an S Corporation located in Ramsford-on-Bitstream, owned by Jack Hacker. With a small 3-year loan, PC Repair will grow in one year from a one-man, home-office based repair 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

PC Repair 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 PC Repair has been reformed as an S Corporation.

This change will provide additional legal protection for the owner, and will also streamline the financial operations of the company as we expand the personnel to 5 within the next three years, lease a separate space for offices, and purchase company vehicles and cell phones.

The owner, Jack Hacker, has 10 years of experience in the fields of technical support, networking, and computer training and repair. Jack has also spent the last three years as the manager of a custom computer building and repair store, and understands the computer needs of small businesses.

2.2 Start-up Summary

Total start-up expenses include initial expenses for establishing our website, setting up the business, and doing our pre-opening advertising. Exact allocations are shown in the table.

The bulk of our start-up requirements are asset needs: we need diagnostic and repair equipment, half of which will be contributed to the business by the owner from his own materials.

We are treating this equipment as assets because we expect it to last at least three years, and to have some resale value when we are through with it; we will buy additional expensed equipment in years two and three. We also need start-up inventory which includes RAM, spare hard drives, cables, and cases.

Although we will keep expenses to a minimum for the first three months, before we move, we will also need cash at start-up, to see us through the next several months with a positive cash balance.

PC Repair will offer computer repairs, training, networking and upgrade service to clients in two major categories: home PC users and small business users. As PC Repair and the client demands grow, we will offer software development to our business clients.

From the very first day, we will offer on-site repair and consulting services, so that our clients don’t need to take time out of their busy days to haul a computer in to our workshop. This is the single biggest frustration Jack has seen among small business owners needing computer help.

Much of our diagnostic equipment is portable, and we will remove a PC to our workshop only when the problem requires more detailed diagnosis or repair. We will also offer free pick-up and delivery of PCs needing repair. To meet the growing demand for this service, we will purchase a company vehicle in the third month.

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

We will offer limited software support (installation and compatibility issues), and focus on hardware and networking support – this is a vital distinction, since software is evolving much more rapidly than hardware, and our clients will have such diverse software needs that we couldn’t possibly keep up with all of them.

We will encourage clients to register their software and use the software’s own support options to their full potential. We will, however, keep up to date with multiple operating systems and networking developments, working with clients to make sure they have the most appropriate combinations of hardware, OS, networking, backup systems, and software.

Backup and security are becoming higher priorities for all our potential customers, as internet usage (and its pitfalls) becomes more common, and as more and more daily records are stored electronically.

Market Analysis Summary

PC Repair will provide computer support in both a consulting and technical capacity to small business owners as well as home PC users. Since PC Repair is currently a one man operation, its growth in the first three months will be limited by the owner’s capacity to complete work.

However, these first three months are critical for establishing our credibility and a reputation for getting the job done quickly and well. We will focus on delivering excellent service, and using the good word of mouth from this initial period to network with other potential clients.

Personal market research by the owner indicates an attractive market niche for our services, of which PC Repair will take full advantage.

The very nature of the computing industry, with its extraordinary rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues.

National chains, such as “Geeks on Call,” and Best Buy’s “Geek Squad” have seen rapid growth in demand for these services in the last few years. Customers are seeking skilled help with everything from installation of software and hardware components, to networking, to transferring files from an old computer to a new one.

Those who can often enlist their tech-savvy children’s help, 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 two groups, based on their needs: home PC users and small business clients.

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

We are not expecting income from users below 30, who tend to be more comfortable with technology and willing to attempt repairs and upgrades on their own, without seeking professional assistance.

Such home users generally own a computer to do email, play games, write letters, scan and print photos, and occasionally to do bookkeeping or taxes. Home PC users with more sophisticated applications generally have enough tech savvy, from tech experience at work, to do their own repairs and upgrades.

Their hardware needs will include the computer itself, monitors, keyboards, mouse, printer, and scanner.

This group is growing slightly faster than the overall population growth in our area, in part due to the increasing demand for computers among retired people and young families, about 7% a year.

Small Business Users Small business users will provide the majority of our business revenue. The small business market will be defined as customers within a 15 mile radius, with 2 or more computers or a network which they use for business purposes at least 25% of the time.

Their business use may include minor usage, such as updating a business website for a brick-and-mortar store, keeping the books, designing graphics or ad campaigns, and writing copy for press releases. It may also be more extensive, incorporating inventory tracking, POS systems, customer databases, online product/service delivery, or product development.

The more intensive their computer usage for business, the more critical it is to them that their technology work well and reliably, and that quality repairs and support are available in a crisis. Their hardware needs will include the same items as home users, plus servers, backup systems, data storage, and wireless networking.

4.2 Target Market Segment Strategy

Although there are more potential customers among home PC users, we expect the majority of our revenue to come from small business clients, since their need for our services is more urgent, and they are willing to invest in technology as part of their business plan.

The majority of our marketing efforts will thus be focused on small business owners. These customers typically don’t have a full-time IT person, but have full-time IT needs. 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.

ComputingNet magazine recently reported on the substantial need for timely and cost-effective computer upgrades and repairs in this region; Jack Hacker has seen this market need in person, as frustrated clients waited for days or weeks for their critical components to be returned to full capacity, with no inexpensive alternative to the existing computer repair shops.

All of our clients need technical assistance, but we are also selling peace of mind: our clients will know that friendly, efficient help is just a phone call away.

As more and more companies switch their support services to automated call centers or touch-tone menus, the simple reassurance of hearing another human voice on the phone within a few rings is immeasurable. Even better is knowing that within a few hours, someone will show up and take care of their problem.

Both the software and hardware side of the computer industry continue 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 PC Repair’s main competitors shows no overwhelming strengths that would be significant barriers to entry into the market, as our local competitors have serious weaknesses.

The computer maintenance and repair industry is fragmented, with a few large, national players and hundreds of small, local stores.

While most computers are actually repaired in-store, near the customer, parts for the repair come from major manufacturers and distributors; delays in receiving necessary parts can significantly slow down the repair process.

Large chains have solved this problem by keeping vast amounts of inventory in stock at all times, while local stores offer customers the trade-off of personal interaction and trust that may make up for some delay.

PC Repair has established a relationship with a local distributor to do rapid special-ordering; although this capability is more expensive than normal channels, it will enable us to quickly establish a reputation as efficient and responsive to customer needs, particularly for our small business users.

We will leverage this customer loyalty into great word of mouth marketing and steady growth.

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.

Large stores, especially the service departments of national chains, have a great advantage simply in their affiliation with an established brand.

Establishing our brand identity and a great reputation in the first few months is critical to our success. Once we have broken in to the local market, 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. There are two main competitors for the computer upgrade and repair business in this area:

Competitor A:

They are a well established provider of computer upgrades and services, and do quick work. However, they have a high staff turnover, a young and inexperienced staff, and are more interested in selling new components than in maintaining existing machines or finding custom solutions.

They do not offer any kind of pick-up and drop-off service, and do not offer on-site help. They really only offer hardware support.

Competitor B:

Smaller and less known then A, B provides many services for residents living in east and south parts of town. They are more willing to spend time with a client, figuring out exactly what his or her needs are, and suggesting new options than competitor A.

However, they have an inefficient ordering system and an unkempt shop, which deters potential customers and can turn existing customers to the competition. They also do not offer on-site services, although they are considering instituting a trial pick-up/drop-off service.

They are in the best position to copy our innovations and steal customers, but their management is complacent and may not respond to competition.

Both of these companies charge rates in excess of PC Repair; we will be able to attract the price-sensitive market without much work.

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Computer Software Retailer Business Plan

Start your own computer software retailer business plan

Eagle Computers

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Eagle Computers is a one-stop shop for IBM-compatible computer users. We are located in the center of Kailua-Kona, on the Big Island of Hawaii. Our location is a major asset, as it is accessible to both the largest concentration of the local community as well as tourism to the island. We will offer a wide selection of latest-technology computer hardware, custom-built computer systems, computer service, computer rentals by the hour, and networking services. We are dedicated to providing consistently high client satisfaction by rendering excellent service, carrying items that are not locally available, and furnishing a warm, pleasant atmosphere at a competitive price. Our work environment will be one of respect for our clients and our community.

The timing is right for starting this new venture. Our target area is the North Kona and South Kona districts of Hawaii County. Presently, there is only one other computer store in these districts that handles IBM-compatible computers, and that store focuses primarily on computer service, not hardware sales. We have polled the Kona community and have received an overwhelming response that there is a definite need for a more comprehensive resource for computer sales and service in our target area. We will offer solutions to the community not provided by any of our competitors. With over 13 years of experience in the computer industry, information industry, management and retail, Jim and Judy Johnson have the skills necessary to make this venture extremely successful and profitable.

To achieve our objectives, Eagle Computers is seeking a start-up loan. This loan will be paid back from the cash flow of the business within ten years, collateralized by the assets of the company, backed by personal integrity, experience, and a contractual guarantee from the owners. This loan will be used to purchase inventory, increase working capital, and assist in start-up costs.

1.1 Objectives

The objectives for Eagle Computers are outlined below:

• To create a service-based company whose goal is to exceed customer’s expectations.
• Sales increase to over a quarter-million dollars by end of second year and increase modestly in the third year.
• To increase the number of customers serviced by at least 20% per year through superior performance and word-of mouth referrals.
• Have a customer return rate of 90% by end of first year.
• Become an established community destination by end of first year.

1.2 Mission

To provide the West Hawaii community with quality brand-name products, computer and networking solutions, reliable and professional technical support, and unparalleled customer service through the application of the principles of kina`ole and heartfelt aloha, and to earn a fair profit for our employee-owners and stakeholders by embracing sound, ethical business practices.

1.3 Keys to Success

The keys to success in our business are:

• Superior Customer Service: provide reliable, high-quality service and products, and an 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 environment; including custom-built computers, computer diagnosis and repair, networking, and in-store computer stations where clients can buy time to browse the Internet, check e-mail, and download their digital photos from their camera memory cards onto discs.
• Location: provide an easily accessible location for customer convenience.
• Reputation: credibility, integrity, and 100% dedication from 13+ years of experience in the computer industry.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Eagle Computers will sell and service IBM-compatible computers to the West Hawaii community. It will also offer custom-built computers, networking solutions, and in-store computer stations where customers can buy time to browse the Internet, check e-mail, and download their digital photos from their camera memory cards onto discs. What will set Eagle Computers apart from the competition is providing our customers all this in one convenient location, our dedication to excellent customer service, and an expedient turn-around time on repairs.

2.1 Company Ownership

Eagle Computers will be created as an Hawaii Limited Liability Company (LLC) based in Hawaii County, and privately co-owned by Jim Johnson and his wife, Judy Johnson. Jim has 13 years experience in the computer industry. He was co-owner of Eagle Computers in Phoenix Arizona until he moved out of Arizona to live in Hawaii. Jim is a computer technician and also has many years of management and retail experience.

Judy Johnson has 5 years of experience in the information technology industry. She was most recently employed by Wilmer Communications, which is a nationwide provider of DSL service (high speed Internet access). Judy also has management experience and extensive retail experience. 

2.2 Start-up Summary

The start-up costs are to be financed by the direct owner investment. The cost, expense, and investment details are included in the following tables and chart.

Products and Services

Most people today use computers either at work or at home. It is important that people have a quality resource for buying and servicing those computers. Eagle Computers will provide the West Hawaii community with just such a quality resource – a one-stop shop for IBM-compatible computers. Eagle Computers will offer the following products and services with excellent customer service in a friendly, professional, and pleasant environment:

• 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 available to upgrade the computers they already own.
• Networking – We will offer full networking solutions for both home and office, including wireless networking.
• Computer Rental Stations – We will have work-stations set up where customers can browse the Internet, check e-mail, and download their digital photos from their camera memory cards onto discs. These stations will be rented by the hour, but with no minimum time requirement. This will be useful to both tourists and the local community.

Market Analysis Summary how to do a market analysis for your business plan.">

Market research shows that customers on the West side of Hawaii County go to Kailua-Kona for their technological needs. Because of this, if a computer store is located in Kailua-Kona, the prime market is a 20-mile radius, within the North Kona and South Kona districts. Also, Kailua-Kona is the main center for tourism on the Big Island of Hawaii. Eagle Computers will be located in Kailua-Kona. The following demographics were gathered from the official Hawaii County website, the official Hawaii government website and the Kona-Kohala Chamber of Commerce:

• In 2000, the total resident population of Hawaii County was 148,677 and 25% of the population was located in the districts of North Kona and South Kona. In 2002, that residential population was estimated to be 154,794, which was an increase of 4.1%, or 2.05% per year. Based on those figures, in 2003 is estimated at 157,967.
• In 2000, there were 52,985 households in Hawaii, with an average of 2.75 people per household. Based on a population growth rate of 2.05% per year, there is estimated to be 56,243 households in in 2003.
• In 1999, there were 3,548 businesses in Hawaii. Of those businesses, 77% of them were small (less than 10 employees). Based on the population growth rate of 2.05% per year, there are estimated to be 2,956 small businesses in Hawaii County in 2003.
• There were 1,243,313 visitors to Hawaii in 2002. Of those visitors, 1,033,615 of them visited Kona and stayed in Kona an average of 6.21 days. The average tourist’s age is 43 years old. In 2003, visitor arrivals to the State of Hawaii are expected to increase .2% from 2002, for an estimated 1,035,682 visitors to Kona. Also, that growth rate for visitor arrivals is expected to increase dramatically another 6.3% in 2004.

These demographics illustrate a favorable climate for the success of Eagle Computers. Also, in 2001, a new transpacific cable linking Australia to the U.S. mainland via Hawaii provided increased bandwidth to the islands, which has increased the availability of high-speed Internet access to Hawaii computer users.

4.1 Market Segmentation

Our market segmentation focuses on residents, small businesses, and tourists to the Big Island of Hawaii. However, the tourist market segment has very different needs, so the income potential is vastly different than the other two market segments. The income potential analysis is as follows:

Though the numbers in our market segmentation scheme show that the tourist segment makes up the largest portion of potential customers, they do not actually represent the largest income potential. The average tourist is in Kona for about a week and will not be in the market to purchase a computer or have one repaired. However, many tourists want to be able to access the Internet and check their e-mail. We will satisfy this need with our Computer Rental Stations. Tourists will be able to rent time at a Computer Rental Station to browse the Internet, check e-mail, and download their digital photos from their camera memory cards onto discs. The fees we will charge to rent the Stations will be modest, but since there will be no actual product leaving the store for this service, the rental fees are straight profit. We expect these Rental Stations to generate approximately 10% of the business’ profit, so the income from the tourist market segment is actually 10%. 

In terms of income potential, the largest market segment is actually the local consumers. This segment is represented in the market segmentation scheme under the heading “Resident Households”. According to the official website for the state of Hawaii, in 2000, 52.4% of Hawaii households had computers. In fact, many households have more than one computer. Consumers need a place to repair and upgrade the computers they already have as well as purchase new computers and parts with the latest technology. Currently, the local residents have very limited resources for purchasing computers or parts. Their options are: a) order computers and computer parts over the Internet, which incurs shipping costs and prevents hands-on inspection by the purchaser; or b) buy a computer from Costco, which only offers a handful of different models and there is no option to customize the computer to match the purchaser’s specific needs. Eagle Computers will resolve these issues for local consumers by selling computers and computer parts that are of the latest technology. We will have computers on display so that a customer can do a hands-on inspection before purchasing. We will also sell custom-built computers and do in-store upgrades so that customers can purchase computers that match their specific needs. In addition, we will offer in-store repair service and guarantee our products. Computers sales, upgrades, and repairs generate a much greater income than the Computer Rental Stations will. We expect the local consumer market segment to provide 50% of the business income.

The remaining 40% of our business income will be generated by the small business market segment. 77% of the businesses in Hawaii are small businesses with less than 10 employees. These small businesses are large enough to need the high-quality computer technology we offer, but too small to have a separate computer management staff. This segment is largely overlooked by most business-focused computer resources because of its “low end” buying habits, and a reluctance to compete with the major retail chain box movers. This currently leaves the small businesses with the same limited resources as are available to the local consumers. As with the local consumers, we will resolve these issues for the small business market segment by providing affordably-priced, high-quality products of the latest technology, customized according to each business’ unique needs. Our full-service computer diagnosis and repair service will provide quality work within an expedient turn-around time. Small businesses cannot afford to wait very long for computer repairs or servicing. We will also offer full networking solutions, including wireless networking.

4.2 Target Market Segment Strategy

Analysis of our market segmentation shows that 90% of our income will be generated by local consumers and small businesses, with the remaining 10% being generated by tourists. Advertising strategy to the local market segments will differ from advertising strategy to the tourism segment in the following ways:

Advertising to Local Consumers and Small Businesses:

• Yellow Pages
• Local newspapers
• Hand out flyers to local businesses
• Internet website

Advertising to Tourists:

• Post a sandwich-board sign at the busiest intersection near the store to direct walk-by traffic
• Hand out flyers to local hotels, car rental agencies, and tour companies

4.3 Service Business Analysis

Eagle Computers is part of the retail computer industry, which includes several types of businesses:  

• Chain Stores and Computer Superstores: these include major chains such as CompUSA, Best Buy, Sam’s Club, Costco, etc. They are almost always more than 10,000 square feet of space, and are often warehouse-like locations where people go to find products in boxes. They usually offer a wide selection of software as well as the hardware. When purchasing computer systems, customers chose from various as-is computer systems, often without the option to alter the system components. Their products are usually aggressively priced, but little or no support is provided. If they do offer computer repair service, the turn-around time is often lengthy.
• Small Computer Dealers: storefront computer retailers, usually less than 5,000 square feet. These computer stores are usually privately owned and often owner-operated. Because they are privately owned, the quality of products and service varies greatly from one store to another. They usually focus on a few main brands of hardware, offer a minimum of software, and usually offer some level of service and support. A well run store will offer top-quality products and competent, timely support and repair service; whereas, a poorly run store will provide little or no support and carry products chosen mainly for their low price point, not quality or reliability. As with quality and service, the prices at these small stores vary between one store and another. Some small stores make a point to compete with the prices of the large chain stores and superstores, and some do not. Small stores have the advantage of a one-on-one relationship between the customer and the sales person, which often results in more personalized service and products that are better matched to the individual customer’s needs.
• Internet/Mail order: mail order businesses from which customers purchase hardware over the phone or Internet, including components and whole computer systems. They typically offer boxed products that are aggressively priced, but usually offer no service or support. This is a viable option for the purely price-driven buyer, who buys boxes and expects no service. There is, of course, always a time delay between purchasing the products and receiving them due to shipping time, and often, the customer has to pay the shipping charges. Also, there is no opportunity for the customer to do a hands-on inspection before a product is purchased.

4.3.1 Competition and Buying Patterns

Consumers and small business buyers understand the concept of service and support, and are much more likely to pay for it when the offering is clearly stated.

There is no doubt that we compete much more against all the box pushers than against other service providers. We need to effectively compete against the idea that businesses should buy computers as plug-in appliances that don’t need ongoing service, support, and training.

Research indicates that our target consumers and small businesses think about price but would buy based on quality service if the offering were properly presented. They think about price because that’s all they ever see. We have very good indications that many would rather pay 10-20% more for a relationship with a long-term vendor providing back-up and quality service and support; they end up in the box-pusher channels because they aren’t aware of the alternatives.

Availability is also very important. Consumers and small business buyers tend to want immediate, local solutions to problems.

Strategy and Implementation Summary

Our target market consists of consumers, small businesses and home offices (less than 10 employees), and tourists. Our sales and marketing strategy will consist of offering a wide selection of quality products and services, a friendly pleasant atmosphere, and a convenient location in the center of Kailua-Kona with accessibility to locals and tourists alike. We will establish ourselves in the community through word-of-mouth referrals from our satisfied clients, and various forms of advertising.

5.1 Competitive Edge

Our competitive edge is a combination of our wide range of products and services, outstanding location, and our interaction with our clients. By building a business based on long-standing relationships with satisfied clients, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer them and why they should both stay with Eagle Computers, and refer us to others in the community. In close-knit communities like the Big Island of Hawaii, reputation is extremely important, and word-of-mouth advertising is invaluable.

5.2 Marketing Strategy

Our marketing strategy is a simple one: satisfied customers are our best marketing tool. The first time a customer comes to Eagle Computers, 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 business. 

5.3 Sales Strategy

Our umbrella sales strategy is to sell Eagle Computers to the West Hawaii community as the best resource for their computer needs, enhancing their lives with our quality, latest-technology products, the convenience of our one-stop shop, affordable pricing and the reliable professional service we offer.

We will sell Eagle Computers 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 Eagle Computers is a professional and pleasant experience, so that customers can always depend on our brand of service when they arrive.

We expect to have a customer return rate of 90% at the end of the first year and for sales to increase to over a quarter-million dollars by end of second year.

5.3.1 Sales Forecast

The important elements of the Sales Forecasts are shown in the chart and table below. Initial sales forecast indicate a healthy first year revenue increasing modestly 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. We estimate a 5% annual increase in this revenue area from new customer acquisition. The sales costs for computer hardware averages 70% of the final sales prices when the hardware is sold. Costs for wholesale computer hardware is expected to have a 2% annual increase.
• Computer Service – revenue generated strictly from labor fees, so except for payroll, there is no sales cost. We estimate a 10% annual increase in this revenue area from repeat business as a result of customer loyalty.
• Computer Rental Stations – revenue generated from customers renting the computer stations by the hour. We estimate a 3% annual increase to reflect the projected increase in tourism to Kona. This revenue is all profit since it requires no cost for inventory and it is basically self-service, so requires no labor hours.

5.4 Milestones

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

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The management philosophy of Eagle Computers is based on respect for each of our fellow employees, respect for every client, and individual responsibility. We believe in listening to our clients and doing our best to embody their vision of a community-minded business dedicated to meeting all their computer needs. Our management team consists of the owners, who are experienced entrepreneurs possessing a breadth of functional experience in computer technology, information technology, management and retail. Both Jim Johnson and Judy Johnson will share the senior management responsibilities with Jim directing the sales, development, operations and production, and Judy directing the finances and marketing.

We still need to find a networking specialist for our clients who require that service, but as the need for that will be on a job-by-job basis, we will use an independent contractor. We already know of a couple of qualified candidates.

When the need arises to hire employees, we will hire only employees who demonstrate technical aptitude and a dedication to excellent customer service. The organizational structure and personnel plan reflect our intentions to maintain an organization that is customer oriented and technologically proficient, while efficiently managing cost controls and productivity.

6.1 Personnel Plan

Financial Plan investor-ready personnel plan .">

The following subtopics help present the financial plan for Eagle Computers.

7.1 Important Assumptions

The key underlying assumptions of our financial plan shown in the following general assumption table are:

• We assume access to the start-up funding necessary to provide adequate initial capitalization and establish our company.
• We assume continued steady population growth of the West Hawaii community.
• We assume continued steady increase in tourism to the Kona area as predicted by the Department of Business, Economic Development and Tourism for the State of Hawaii.
• We assume continued usage of IBM-compatible computers in the home and at work.

7.2 Break-even Analysis

For our break-even analysis, we assume running costs which include our full payroll, rent and utilities, and an estimation of other running costs.

We will monitor gross margins very closely, and maintain them at or above 50% by taking advantage of all promotions and discounts offered by our manufacturers and by our higher-profit revenue generators of computer service and Computer Rental Stations.

The chart shows what we need to sell per month to break even, according to these assumptions. This is about 6% of our projected sales for our first year.

7.3 Projected Profit and Loss

There are two important assumptions with our Projected Profit and Loss statement:

• Our revenue is based on minimum estimated averages against highest expense expectations.
• Our major expense of rent is fixed for the next three years.

7.4 Projected Cash Flow

Our projected cash flow includes planned borrowing to increase our capital and thereby ensure a positive cash balance while our business is becoming established. Though the cash flow is negative on and off throughout the year, we will maintain a healthy cash balance, which steadily increases in both the second and third years.

7.5 Projected Balance Sheet

Our Projected Balance Sheet shows we will not have any difficulty meeting our debt obligations as long as our revenue projections are met.

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.

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