Computer Software Retailer Business Plan
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 accessible to both the local community and tourism. We offer a wide selection of latest-technology computer hardware, custom-built computer systems, computer service, computer rentals, and networking services. We are dedicated to consistently high client satisfaction by providing excellent service, carrying items not locally available, and maintaining a pleasant atmosphere at a competitive price. Our work environment values our clients and our community.
The timing is right for starting this venture in the North Kona and South Kona districts of Hawaii County. Currently, there is only one other computer store in these districts that handles IBM-compatible computers, primarily focusing on computer service, not hardware sales. We have polled the Kona community and received an overwhelming response indicating a need for a comprehensive resource for computer sales and service in our area. We offer solutions not provided by our competitors. With over 13 years of experience in the computer industry, information industry, management, and retail, Jim and Judy Johnson have the necessary skills to make this venture successful and profitable.
To achieve our objectives, Eagle Computers seeks a start-up loan. This loan will be paid back within ten years from business cash flow, collateralized by company assets, backed by personal integrity, experience, and a contractual guarantee from the owners. The loan will be used for inventory purchase, increasing working capital, and start-up costs.
1.1 Objectives:
– Create a service-based company that exceeds customer expectations.
– Increase sales to over a quarter-million dollars by the end of the second year, with modest increases in the third year.
– Increase the number of customers serviced by at least 20% per year through superior performance and word-of-mouth referrals.
– Achieve a customer return rate of 90% by the end of the first year.
– Become an established community destination by the end of the first year.
1.2 Mission:
– Provide the West Hawaii community with quality brand-name products, computer and networking solutions, reliable and professional technical support, and unparalleled customer service.
– Earn a fair profit for our employee-owners and stakeholders by embracing sound and ethical business practices.
1.3 Keys to Success:
– Superior Customer Service: Provide reliable, high-quality service and products with expedient turn-around time on repairs.
– Environment: Offer a clean, friendly, and comfortable environment for giving professional and trusting service.
– Convenience: Provide a wide selection of computer products and services in one location, including custom-built computers, computer diagnosis and repair, networking, and in-store computer stations.
– Location: Provide an easily accessible location for customer convenience.
– Reputation: Establish credibility, integrity, and 100% dedication through 13+ years of experience in the computer industry.
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. What sets Eagle Computers apart is the convenience of providing all of these services in one location, along with excellent customer service and expedient turn-around time on repairs.
2.1 Company Ownership:
Eagle Computers will be a Hawaii Limited Liability Company (LLC) based in Hawaii County. It will be privately co-owned by Jim Johnson and his wife, Judy Johnson. Jim has 13 years of experience in the computer industry and has both technical and management skills. Judy has 5 years of experience in the information technology industry, including management and retail experience.
2.2 Start-up Summary:
The start-up costs will be financed by direct owner investment. Detailed cost, expenses, and investment information are included in the following tables and chart.
Start-up Funding:
– Start-up Expenses: $7,975
– Start-up Assets: $12,025
– Total Funding Required: $20,000
Assets:
– Non-cash Assets from Start-up: $10,000
– Cash Requirements from Start-up: $2,025
– Additional Cash Raised: $0
– Cash Balance on Starting Date: $2,025
– Total Assets: $12,025
Liabilities and Capital:
– Liabilities:
– Current Borrowing: $0
– Long-term Liabilities: $0
– Accounts Payable (Outstanding Bills): $0
– Other Current Liabilities (interest-free): $0
– Total Liabilities: $0
– Capital:
– Planned Investment:
– Jim & Judy Johnson: $20,000
– Investor 2: $0
– Other: $0
– Additional Investment Requirement: $0
– Total Planned Investment: $20,000
– Loss at Start-up (Start-up Expenses): ($7,975)
– Total Capital: $12,025
– Total Capital and Liabilities: $12,025
– Total Funding: $20,000
Products and Services:
Most people today use computers either at work or at home. Eagle Computers will provide the West Hawaii community with 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.
– Custom-Built Computers: We will build and sell computer systems custom-designed according to the customer’s preferences.
– Service and Repairs: We will offer full-service computer diagnosis and repairs with an emphasis on quality work and quick turnaround time.
– Upgrades: We will offer the latest technology available to upgrade customers’ existing computers.
– Networking: We will provide full networking solutions for both home and office, including wireless networking.
– Computer Rental Stations: We will have workstations set up for customers to browse the Internet, check email, and download photos. The stations will be rented by the hour, with no minimum time requirement.
Market Analysis Summary:
Eagle Computers will focus on markets on the West side of Hawaii, including consumers, small businesses, home offices (less than 10 employees), and tourists.
Market research shows that customers on the West side of Hawaii County go to Kailua-Kona for their technological needs. Eagle Computers will be located in Kailua-Kona, the main center for tourism on the Big Island of Hawaii.
Demographics from official sources indicate a favorable climate for the success of Eagle Computers. The availability of high-speed Internet access has increased due to a new transpacific cable linking Australia to the US mainland via Hawaii.
Market Segmentation:
Our market segmentation focuses on residents, small businesses, and tourists to the Big Island of Hawaii.
The average tourist will not be in the market to purchase or repair a computer. However, they will be able to rent our Computer Rental Stations for Internet browsing and other digital services. This segment will contribute approximately 10% of the business profit.
The largest income potential comes from the local consumer market segment. Many households in Hawaii have computers and need a place to purchase new ones, have them repaired, or upgrade them. We will provide hands-on inspection, custom-built options, and in-store repairs, catering to the specific needs of local consumers. This segment is expected to generate 50% of the business income.
The small business market segment, comprising of businesses with less than 10 employees, is often overlooked by major retail chains. We will provide high-quality computer technology, customized solutions, and full networking services to meet their unique needs. This segment is estimated to contribute 40% of the business income.
Market Analysis:
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Resident Households 2% 56,243 57,396 58,573 59,774 60,999 2.05%
Small Businesses 2% 2,956 3,017 3,079 3,142 3,206 2.05%
Tourists 2% 1,035,682 1,056,913 1,078,580 1,100,691 1,123,255 2.05%
Total 2.05% 1,094,881 1,117,326 1,140,232 1,163,607 1,187,460 2.05%
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