- Summary of Business Plan
- Introduction to Acme Business Services & Co
- Product: Computer Sales
- Product: Training Services
- Why the Business will Succeed
- Financial Summary
- Management
- Proprietor: Employment Record
- Junior Partners: Brief Summary
- How and Why the Business Started
- Product / Service
- Computers Sales
- Printer Sales
- Training Sales
- Marketing
- The Market Size
- Future Growth
- Market Sector
- Expected Client Profile
- Competitors
- Sales
- Advertising
- Promotion
- Who will Sell
- The Unique Selling Points
- Setting the Price
- Operational
- Location
- Equipment and Costs To-date
- Equipment Required
- Staff
- Short - Medium Term Trading
- Objective Short Medium-term
- What if ? - contingency plans
- Financials
- Contact Details
| Summary of Business Plan |
Page 1 |
- Introduction to Acme Training Services & Computer Sales
Acme Training Services & Computer Sales has been established
for two months, and trade on a regional basis. There are
currently two partners: John Smith (28) and Jane Jones (25),
who have extensive experience of computers and training.
- Product: Computer Sales
John Smith has been building computers for five years for
the well known firm BuildComputer.com and he has access to
favourably priced computer parts. The computers are aimed at
the corporate market, with service contracts available.
- Product: Training Services
Jane Jones has been involved in computer training for for 5
years, the last two years as an independent consultant. Jane
specializes in cutting edge technology. The planned courses
run for 2 - 3 days, with quarterly 1-day progress and update
courses to keep those under training up to date with the
latest technology.
- Why the Business will Succeed
Jane and John compliment each other: John worked for his
father for four years as an office manager in a small
manufacturing company, as such he has strong managerial
skills to compliment Jane's ability to easily digest new
technology and her undoubted skills in technology training.
Further, both parties bring existing business and network
contacts. Both parties believe that they could increase
their own business areas by 200% within 6 - 12 months if
they could delegate some less skillful areas within their
current work schedules..
- Financial Summary
As you will see from the enclosed financials, the markup
is 40% with an expected profit of £90,00 in the first
year. They have £20,000 capital to invest in the company
and seek further funds of £40,000 from a lender - secured
on Johns property. An overdraft facility of £15,000 is
also required to finance larger than expected growth if
cash flow is limited due to increased costs.
- Proprietor: Employment Record
John Smith - CV attached
Aged 28, John with City & Guilds Computer Studies (1994),
has always had responsible positions in his career to-date.
Working for his fathers manufacturing company as office
manager for five years up to 1995: where his interest in
computers began. For the past three years John worked for
WeBuildComp.com as Computer Services Manager and has gained
much experience of 'blue chip' requirements. John has been
married for 4 years with two young children.
Jane Jones - CV attached
Aged 25, Jane with three A Levels in English, History and
Art, has always sought positions that allow her to use her
skills as a communicator and organiser. Jane worked for the
leading firm WinMac Training Systems for three years before
branching out as a successful independent training
consultant for the past two years.
- Other: Brief Summary
John Smith's father, Richard Smith, will be assisting with
the initial setup of the manufacturing outlet. He is retired
after running his own successful manufacturing business for
40 years. And of course, he will be available as an ongoing
source of help and advice.
Two other suitable individuals have been sounded out for
management positions and are keen to be involved with this
venture.
- How and Why the Business Started
Jane and John worked for the same client about a year ago
and have used each others services on an informal basis
since then. They believe that actively sourcing business
for each other as a combined service will give them 'first
sight' of opportunities.
- Computer Sales
Three standards of computers will be built:
RS 01 350 MHz 32MB 6.4GB 15" Screen
RS 02 450 MHz 64MB 6.4GB 15" Screen
RS 03 550 MHz 128MB 12.6GB 17" Screen
Each machine can have a number of specified add-on's: CD ROM,
DVD, Modem The machine will built in their own manufacturing
unit, with service for the first year on the client's site.
Servers will be purchased as required to the specifications
of the client.
- Printer Sales
A number of leading laser and ink jet printers will be
available, with the anticipated service contracts as a
major source of income.
- Training Sales
Four levels of training will be available:
- Trainee up to 8 persons with no, or little, computer
experience
- Basic up to 8 persons with basic computer skills
- Intermediate up to 8 persons who have a good working knowledge of computer systems
- Advanced up to 4 persons who understand technical computer systems
- The Market Size
Currently, corporate computer sales are rising at 15% per
quarter. It is expected to continue at that rate for
another two years. There are few business's that will
avoid using a computer in those two years. The ability to
configure a network of computers will be an important
requirement.
- Future Growth
The computer is still not integrated within 75% of UK
business's. The computer will not be superceded within
the next five years, and even then it is hard to see a
dramatic change in hardware that will not be backward
compatible.
- Market Sector
Based in Manchester the need for computer hardware and
training is always available. SME Office space is
increasing by 10% per annum. There are currently 95,000
SME's in Manchester.
- Expected Client Profile
- Small Medium Enterprise (SME) Computer Sales
- Medium - Large Companies for Training Services
- Commerce and Industry
- Turnover £2m +
- Initially: Manchester and Districts
- Prefer client to be computer literate
- Competitors
COMPUTERS
Six companies have been identified as true competitors i.e.
computer and peripheral sales and service direct to
corporate clients on-site. The three main competitors are:
ABC Computers
Established 6 years, turnover £0 (Not Known), 6 staff, no
growth in past two years
Bell & Son PC's
Established 4 years, turnover £2m, 10 staff, specialist
computer systems, steady growth
Corporate Comps (National Company)
Established 2 years, turnover £7.5m, 40 staff, mainly top
end clients, always stretched
Summary
Service complaints are common with all competitors, and
hardware upgrades are long overdue. Corporate Comps are
looking to revamp their national operation in the spring.
TRAINING
Three companies currently service the above client profile
in computer training. Top two are:
Easy Train
Established 15 years, turnover £900,000, computer training
staff 4, no plans for rapid growth
The PC Training Co. (National Company)
Established 8 years, turnover £6.5m, computer training staff
35, no local office
Summary
At present demand exceeds resources. No effective
competition is challenging the top companies, who offer
only limited cutting edge technology training skills.
- Advertising
An advert has been placed in the:
- 'Computer Sales' and 'Training' sections of Yellow Pages
- The Tuesday business section of the Manchester Regional News (on going)
- PCMAC Computer Monthly magazine
- Promotion
- Targeted mail shot within 3 months
- Telesales company to start promotion within 1 month
- Two regional computer shows booked - 1st in 2 months 2nd
in 6 months
- Who will Sell
Both proprietors are competent sales negotiators
- The Unique Selling Points
- Dual capability of hardware supplier and training provider
- Latest technology training package
- Availability
- Setting the Price
COMPUTERS
Prices include 1 year on-site total cover
RS 01 350 MHz 32MB 6.4GB 15" Screen £650.00
RS 02 450 MHz 64MB 6.4GB 15" Screen £800.00
RS 03 550 MHz 128MB 12.6GB 17" Screen £950.00
PC Service contracts are
£150 per annum for one PC and then £85 for each
additional PC
Printer
£50 per annum for one, then £30 for each additional unit
TRAINING
£110 Per Day Trainee up to 8 persons with no, or little,
computer experience
£135 Per Day Basic up to 8 persons with basic computer
skills
£180 Per Day Intermediate 8 persons, a good working
knowledge of computer systems
£295 Per Day Advanced up to 4 persons who understand
technical computer systems
20% reduction for in-house training
- Location
New office-warehouse development on Industrial Estate
located 3 miles from city centre. Development has three
meeting/conference rooms of high standard.
3 year lease - no payment for first 3 months, then £3,000
per quarter in advance.
- Equipment and Costs To-date
| OFFICE |
|
| 6 x Tables |
475 |
| 6 x Chairs |
350 |
| 3 x Filing cabinet |
210 |
| 2 x Computer |
875 |
| laser printer |
375 |
| Ink jet printer |
300 |
| Photocopier |
1200 |
| Fax |
250 |
| Answer phone |
100 |
| 2 x Phone line |
150 |
| Stationary and printing |
1100 |
| Sub Total |
5385 |
| WAREHOUSE |
|
| 4 x Work bench |
2000 |
| 8 x Stack shelving |
1500 |
| Lighting |
750 |
| Sub Total |
4625 |
| STOCK |
|
| Computer parts |
3750 |
| TOTAL |
£13,860 |
- Staff
A mature office manager, and a trainee computer assembler
will be sufficient for the initial 3 months - between 3 and
9 months two training staff (to cover Trainee and Basic
training) and a junior office clerk will be employed. At 9
months a review of staff needs will take place.
| Short - Medium Term Trading |
Page 7 |
- Objective Short-term
COMPUTERS
An average of 5 computer sales per week, and 2 service
contracts. The trainee assembler to be competent at
assembly within 6 months, and to service a computer on site
within 9 months.
TRAINING
Jane training for average of 3 days per week within 3
months. New training staff to be working an average of 4
days per week by 9 months.
At the 12 month plus period, a number of Jane and John's
tried and tested ex-colleagues and friends will be
approached to join the company with equity available.
- What if ? - contingency plans
Both John and Jane are confident (with good reason) that a
contingency plan is unlikely to be needed, however, John has
contacts who can provide him with computer fitting and
servicing without notice, and likewise Jane with her
training contacts.
In a real emergency, say, John or Jane became ill, it is
anticipated that the new staff could continue with 'basic'
computer servicing or training - the requirement of a mature
Office Manager is a strategic and important position.
- Monthly Profit & Loss Account (P&L)-projected for 2 years
2000 to 2001 Net Profit £ 90,000
2001 to 2002 Net Profit £175,000
As you can see from the P&L the business is expecting to
make a net profit of £90,000 in the first year. The figures
include the salary of the full compliment of staff as
outlined on page 6 (c) above. The second year shows a net
profit of £275,000: if this does happen they will purchase
their own premises for £180,000. The total compliment of
staff at the end of 2002 is 25.
- Balance Sheet projected for 2 years
2000 to 2001 Net Assets £130,000
2001 to 2002 Net Assets £260,000
The projected figures show the anticipated reinvestment of
all profits for the first two years: this trend will
continue. Stock at the end of the second year is high but
the discounts on bulk purchase is a profitable option in
the computer industry, if technology allows.
- Monthly Cash Flow Forecast for 2 years
2000 to 2001 Year-End Net Cash Flow £ 25,000
2001 to 2002 Year-End Net Cash Flow £120,000
In the first year the cash flow will remain positive unless an
opportunity to buy bulk computer parts presents it's self.
Likewise the entire second year is planned to be in the black
and consideration will be given at that time as to the purchase
of assets.
[N.B. If you are an existing company your audited accounts for
up to three years are usually required - More info about the above Profit and Loss Accounts to be added soon]
| John Smith |
|
Jane Jones |
| 01234 9876543 |
Office
Unit 3 The Trading Estate
The Avenue
MANCHESTER M23 4SA |
01234 9876543 |
| 019671 3546387 |
Home |
01234 1234567 |
| 09876 1234567 |
Mobile |
017790 9876544 |
96 Avenue Hill
MANCHESTER M34 5RR |
Home Address |
12 High Road
MANCHESTER M12 3AA |