Mobile Computer Repair Business

Submitted To: Sir Ahsan Qamar

Class MBA-4B

Date 03-01-2012

Submitted By : Muhammad Rizwan (042)

Abdul Sattar (065)

Nasir Abbas: (080)

Adeem Munir (028)

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 MOBILE COMPUTER REPAIR BUSINESS

Executive summary:
Business model:

Customer
Partner Network
Relation

Customer
Core
value proposition
Capabilities ValueTarget
Proposition

Cost Structure
Revenue Streams

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1-Partner network:

our network consist of technician, IT consultant, software

integrator, who put their trust in our technologies and are ready to help you to better
solve problems.

2-customer relation:

We build strong relationship with our customers ( local

community, residential person, and small business) By providing best solution of pc
problems with feedback.

3-Core capabilities:

Our main core capabilities consist of home delivery services

with reasonable cost.and giving long life warranty’s that we can differentiate our services
.4-value proposition:

Overall view of our products and services is repairing, maintenance, networking,

customized computers and upgrade services, home delivery services, training and
software services.

5- Target Customer: our target customers are Home pc user, and small businesses.

6- Cost structure: (2011)

items Fixed cost (RS) Variable Total cost( RS)

cost(RS)
Building 1,20,000 - 1,20,000
vehicle 50,000 - 50,000
Cell phone 25,000 - 25,000
payroll 2,40,000 - 2,40,000
Maintenance cost 50,000 50,000
TOTAL 4,45,000

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7-Revenue stream:

Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales 3,75,000 425000 6,00,000
Costs of Fulfilling Maintenance
50,000 60,000 75000
Contracts
Total Cost of Sales 50,000 60,000 75000
Gross Margin 3,25,000 3,75,000 5,25,000
Expenses
Payroll 2,40,000 2,50,000 2,75,000
Vehical 50,000 50,000 50,,000
Website 5000 5000 5000
Answering Service 2000 2000 2000
Cell Phones 25,000 20,000 20,000
Moving Expenses 23,000 0 0
Total Operating Expenses 3,45,000 3,27,,000 3,52,000

(20000
Net Profit 48000 1,73,000
)

Ownership:

MCRB is a Corporation located in Wah Cantt (basti), owned by Abdul Sattar, Adeem
Munir, Nasir Abbas, M.rizwan. With a small 5,00,000 loan,

Target Market:

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

we will have only short-term assets, such as computer equipment and furniture.

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. We will also offer free pick-up and delivery of PCs needing repair. To meet

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the growing demand for this service, we will purchase a company vehicle in the third
month.

PC Repair was initially formed as a sole proprietorship, . 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 area. In the third month of our plan, we will move into a leased
office space and hire technicians. As sales increase, we will hire additional personnel.

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. . For our
residential customers, we will offer a very affordable and helpful service with a very
flexible schedule to meet their needs.

Mission statement:

Our goal is to set the standard for on-site computer solutions through fast, on-site
service and response. 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 judgment to solve customers'

Company History:

MCRB is a Corporation located in Wah cantt (Basti), owned by Abdul sattar, adeem
munir, nasir abbas, M.rizwan. With a small 5,00,000 loan, Our sales target in first year
375000 and increased by 425000 second and 600000 in third year…our target market
will be from home user to small business level people. From minor loss in first year to
gain profit in second and third year.

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Business and industry profile:

Computer industry is in growth stage. Personal market research by the owners

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.

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. 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.

Business strategy:

A business strategy typically is a document that clearly articulates the

direction a business will pursue and the steps it will take to achieve its goals. The
business strategy results from goals established to support the stated mission of the
business. A typical business strategy is developed in three steps: analysis, integration and
implementation

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Niche differentiation strategy:

It is appropriate for business that produces highly differentiation need fulfilling products
or services for the specialized needs of a narrow range of customer. through this strategy
we will grow at a specific level targeted..we will grow 7% in second year.infact our
business may be deliberately inefficient because they continuously because we
continuously attempt to create market opportunity or to respond them .

Broadly speaking high prices are acceptable to certain customer who need product
performance safety or security.

The chief vulnerability of this strategy is that competitors who also emphasize lowering
of cost may in some situations be able to offer similar products at predatory prices. in
fact, using niche differentiation in conjunction with lower cost can be particularly
effective strategy for a number of but not all small business unit in selecting industries.

Description of product and services:

Mobile computer repair business will offer unique features of product and services such
as We will also offer free pick-up and delivery of PCs needing repair. 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 we have 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

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diagnosis or 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 strategy:

Our marketing strategy will aggressively exploit our competitors' weaknesses. During the
start-up phase, we will run large ads in the business section of the local newspaper,
asking, "Are you fed up with poor customer service for your computer needs?" These ads
will focus on our advantages, including on-site service, competitive rates, and quick
response and turn-around times. They will announce our opening date, and include a
coupon for free diagnostic service for the first 20 customers.

We will follow up on these opening ads with a smaller direct-marketing campaign to

small business owners, with lists drawn from the local news paper.

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We will continue periodic advertisements, including several promotions (discounts, free
diagnosis, etc.) throughout the first year. We expect a small but steady response from
home PC users who see our ads elsewhere, but will also run monthly ads in sections other
than the business one.

We will offer a promotion during the first 90 days of business to generate business traffic
and word of mouth.

Showing customer interest:

We judge specially through questionnaire, survey in Basti (Wah Cantt) we receive

positive response of people demand in efficiently. home delivery computer repairs
magazine recently reported on the substantial need for timely and cost-effective computer
upgrades and repairs in this region; we 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.

. 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
professionalassistance .
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

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families, about 7% a year. 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.

Documenting market claims:

• Questionnaire
• Survey

Effective response of market through questionnaire and survey from starting business
now our sale is increased through out the year growth of 7% by these test of market
there is effective response of providing services of home delivery computer repair and
new computers . we must spend heavily in the first year in order to establish the brand
recognition that will help us break in to the local market .We are seeking a modest net
profit in the first year. As our reputation grows, we will see higher revenues and net
profit over the next three years.

Competitor analysis:

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.

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There are two main competitors for the computer upgrade and repair business in this
area:

1. 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.

2. 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.

Description of management team:

Mobile computer repair business will be owned and managed by abdul sattar has 10
years of experience in the fields of technical support, networking, and computer training
and repair. Sattar 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. sattar

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is adept at managing his time, and at quickly responding to multiple customer calls and
needs.

For the first three months, sattar will be in charge of all aspects of the business. In the
third month, when another tech is hired, sattar will shift some of his energy from directly
responding to customer needs, to training and managing others to do this work
effectively. sattar will maintain direct control over inventory ordering and bookkeeping,
and will try to do as many of the on-site calls as possible himself. Part of our brand
recognition strategy is to identify mobile computer Repair with sattar's efficiency,
friendliness, and technical expertise. The easiest way to associate the two is for Jack to be
a major part of many customers' experiences with us. He will delegate technical repairs
later in the year to the techs working in the leased office space, and will also train them in
his method of direct phone support.

Sattar has worked extensively with computer technicians and support staff in the past,
and knows that they work best when given free rein within a set of mutually-agreed-upon
guidelines. The first week of each tech's employment will be dedicated to helping them
understand PC Repair's guidelines:

• the customer needs help, and we're here to help them;

• the customer is frustrated, upset, or confused - but that doesn't make the customer
a problem;
• the customer needs reassurance as well as solutions.

Within this framework, the techs can solve the customer's problem the best way they see
fit.

Plan of operation:

To get mobile computer Repair business 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

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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

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.

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Forecasted Performa Financial Statement:

The following sections include the annual estimates for the standard set of financial
tables.

Performa Profit and Loss

Year 1 Year 2 Year 3
Sales 3,75,000 425000 6,00,000

Costs of Fulfilling
50,000 60,000 75000
Maintenance Contracts

Total Cost of Sales 50,000 60,000 75000

Gross Margin 3,25,000 3,75,000 5,25,000
Expenses
Payroll 2,40,000 2,50,000 2,75,000
vehical 50,000 50,000 50,,000
Website 5000 5000 5000
Answering Service 2000 2000 2000
Cell Phones 25,000 20,000 20,000
Moving Expenses 23,000 0 0
3,27,,00
Total Operating Expenses 3,45,000 3,52,000
0
Net Profit (20000) 48000 1,73,000

In the first year our business get loss and in the second year and third years
48000,173000 profit respectively.

Loan or investment proposal:

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In start up of our business we take loan Rs.5,00,000 for the investment and the
repayment of loan is as follows

Repayment of loan:

Year 1 Year 2 Year 3

Repayment of loan - 50,000 50,000

Besides first year due to get loss we will re- pay loan installment from year2 to onward
with fixed installment of Rs50,000.

Utilizing of Funds:

items Fixed cost (RS) Variable Total cost( RS)

cost(RS)
Building 1,20,000 - 1,20,000
vehicle 50,000 - 50,000
Cell phone 25,000 - 25,000
payroll 2,40,000 - 2,40,000
Maintenance cost 50,000 50,000
TOTAL 4,45,000

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