computer repairs business plan pdf

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

Free Computer Shop Business Plan PDF | Computer Repair Business Plan PDF

How to Start a Computer Repair Business - Computer Shop Business Plan PDF

Are you considering starting a Computer Repair Business and are in need of a computer shop business plan pdf? if yes, you'll find this free book to be extremely helpful.

This is a practical guide that will walk you step by step through all the essentials of starting your business. The book is packed with guides, worksheets and checklists. These strategies are absolutely crucial to your business' success yet are simple and easy to apply.

Don’t Start a New Computer Repair Business Unless You Watch This Video First!

Checklist for Starting a Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

Here’s a Valuable Free Gift for You This is a high quality, full blown business plan template complete with detailed instructions and all related spreadsheets. You can download it to your PC and easily prepare a professional business plan for your business. Click Here! To get your free business plan template

The Single Most Important Ingredient for Business Success

The first and most important thing you need to acquire in order to succeed in a small business is... knowledge.

Sounds exaggerated? Listen to this...

According to research conducted by Dun & Bradstreet, 90% of all small business failures can be traced to poor management resulting from lack of knowledge.

This is backed up by my own personal observations. In my 31 years as a business coach and consultant to small businesses, I've seen practically dozens of small business owners go under and lose their businesses -- not because they weren't talented or smart enough -- but because they were trying to re-invent the wheel rather than rely on proven, tested methods that work.

Conclusion: if you are really serious about succeeding in a business... If you want to avoid the common traps and mistakes... it is absolutely imperative that you acquire the right knowledge.

"Why Invent Mediocrity, When You Can Copy Genius?"

That's an excellent quote I picked up from a fellow business owner a few years back. What this means is that you should see what is working and try to duplicate it. Why go through all the trouble of inventing something new, that you don't even know will ever work, when you can easily learn from and duplicate something that has been a proven success?

[ Note: One of the BIGGEST mistakes almost all new businesses make is that they WASTE tons of valuable time, energy and money on trying to create something "new", that has never been tested or proven... only to find out later that it was a total loss. Don't make the same mistake! ]

Hi! My name is Meir. I'm the founder and president of BizMove.com, a successful Internet based information business. I'm also the author of numerous books, mostly in the area of small business management.

I've been involved in small business for the past 31 years of my life, as a business coach, manager of a consulting firm, a seminar leader and as the owner of five successful businesses.

During my career as a business coach and consultant I've helped dozens of business owners start their businesses, market, expand, get out of troubles, sell their businesses and do practically every other small business activity you can think of. You see, I have been there .... done it ... and bought the Small Business t-shirt! -- This free book contains techniques and strategies I've learned during my 31 year small business career.

Here's what you'll discover in the 'How to Start a Computer Repair Business' book:

Success Tip: Setting Goals

Good management is the key to success and good management starts with setting goals. Set goals for yourself for the accomplishment of the many tasks necessary in starting and managing your business successfully. Be specific. Write down the goals in measurable terms of performance. Break major goals down into sub-goals, showing what you expect to achieve in the next two to three months, the next six months, the next year, and the next five years. Beside each goal and sub-goal place a specific date showing when it is to be achieved.

Plan the action you must take to attain the goals. While the effort required to reach each sub-goal should be great enough to challenge you, it should not be so great or unreasonable as to discourage you. Do not plan to reach too many goals all at one time.

Establish priorities. Plan in advance how to measure results so you can know exactly how well you are doing. This is what is meant by "measurable" goals. If you can’t keep score as you go along you are likely to lose motivation. Re-work your plan of action to allow for obstacles which may stand in your way. Try to foresee obstacles and plan ways to avert or minimize them.

Click here! to download your Computer Shop Business Plan PDF book for free

Here're other free books in the "how to start a business" series that may interest you:

Here's a Sample 'Executive Summary' for a Computer Repair Business plan :

Purpose The purpose of this Business Plan is to:

• Set a course for the Company's management to successfully manage, operate, and administer the business.
• Inform financing sources of the capital requirements being requested by the Company, in addition to its history, its projected future, and how the requested funding would give the Company the ability to add value to the local economy, generate tax revenues for local and federal government, and help put people back to work.

The Company [Company Name] is a start-up venture located in Franklin County, OH. The Company offers various computer hardware and accessories items as well as professional repair services. The Company will have a highly visible storefront location to attract walk-in customers as well as members of its community. Furthermore, [Company Name] will expand its exposure through effective marketing as well as introduce the area to market segments that have not yet discovered the Company.

The Market [Company Name]' target market strategy is based on becoming a destination for people who are looking to purchase PC’s, PC parts, accessories; as well as those in need of repair services within the Pickerington, OH community. These customers prefer certain quality of products and services, and it's the Company's duty to deliver on their expectations.

Financial Consideration In addition to diligently following this Business Plan to maintain the safeguards for successful business operations and achieve the financial projections herein, the current financial plan of [Company Name] includes obtaining funding through one of many financing programs in the amount of $400,000. The Company hopes to secure the requested funds sometime in the third/fourth quarter of 2011. It will use the funding for the purpose of doing advertising; covering lease and utility expenses; purchasing inventory and showroom equipment; and doing business development. The Company's revenue is projected to increase during the next three years, from $320,766 to $625,000, while its monthly break-even stands at $29,682. 

The major focus for grant funding is as follows: 1. The Company is a minority owned business 2. It will provide local jobs within its community

1.1 Objectives

[Company Name]’ main objectives include:

• Providing a variety of computer products and services.
• Be the best in class customer service.
• Gaining support of the local community as their technology provider and resource.
• Presenting a competitive advantage by locating in Pickerington being that there are no other significant PC stores in the area.

1.2 Mission

[Company Name]' mission is to provide the best services and products related to computers, IT, and technology in general including small electronics, gadgets, and accessories to the suburban community of Pickerington.

1.3 Keys to Success

[Company Name]’ keys to success involve:

• The owners experience and longevity in the technology industry
• Having no significant competition.
• Being in the Pickerington area, which is a growing community that has no significant PC store.
• Poised to have a wide variety in technology offering netbooks, iPads, tablet PC’s, along with used equipment reselling.

Company: [Company Name] Contact: [Name] Address: [Address] Phone: XXX-XXX-XXXX Cell: XXX-XXX-XXXX Fax: XXX-XXX-XXXX Email: [Email Address] [Company Name]’ is a start-up computer hardware retailer located in the Pickerington, OH community. The Company offers various computer hardware and accessories items as well as professional repair services. Furthermore, the business was founded by [Name], an industry professional with collective experience in technology and IT. Mr. Salaberrios has pooled his resources to develop a new strategy for reaching and serving business clients. 

2.1 Company Ownership

[Company Name] is a S-Corp business established in Franklin County, Ohio. [Company Name] is a minority-owned business. The owner of the Company is [Name], who has 100% ownership of the Company.

2.2 Start-up Summary

The following table and chart shows the start-up costs for [Company Name]. The Company's start-up expenses consist of legal, lease, payroll, as well as utilities expenses. The start-up assets consist of key inventory.

Table: Start-up

3.0 products and services.

[Company Name] offer the retail of whole PC’s, PC parts, accessories, upgrades, network cables, repair and professional services. The Company will sell within the Pickerington community from a store on RT 256 on the east side suburb of Columbus, Ohio.

How To Deal With Difficult Employees - Dealing With Difficult Subordinates As A Manager

If you've been a manager for long, you know that things can go wrong even in the best of organizations. Problem behavior on the part of employees can erupt for a variety of reasons. Here are ten tips regarding How To Deal With Difficult Employees, Dealing With Difficult Subordinates As A Manager.

1. Recognize that problem behavior usually has a history.

It usually develops over time and seldom from a single incident. As a manager, it is your responsibility to be alert to the early warning signs and deal with the underlying causes before the situation reaches a crisis.

2. Ask yourself: "Am I partly or wholly responsible?"

You would be surprised how frequently it is the manager who has created, or at least contributed to problems of employee behavior. Having an abrasive style, being unwilling to listen, and being inattentive to the nuances of employee behavior are all factors that contribute to the manager's need to thoroughly examine what is going on.

3. Don't focus only on the overt behavior.

When confronted by an angry employee, it's easy to attack the person and target the behavior rather than examine the factors that underlie the behavior. Often, this takes patience, careful probing, and a willingness to forgo judgment until you really understand the situation.

4. Be attentive to the "awkward silence" and to what may be missing.

When an employee is obviously reluctant to communicate, it's almost a sure sign that more lurks beneath the surface. Often, employees will withhold because they feel unsafe. They may test the waters by airing a less severe or kindred issue in order to see what kind of a response they get. In order to get the full story and encourage forthrightness, it's imperative that the manager read between the lines and offer the concern and support necessary to get the employee to open up.

5. Clarify before your confront.

Chances are, when an issue first surfaces, you will be given only a fragmentary and partial picture of the problem. You may have to dig deep to surface important facts, and talk to others who may be involved. One safe assumption is that each person will tend to present the case from his or her viewpoint, which may or may not be the way it really is. Discretion and careful fact-finding are often required to get a true picture.

6. Be willing to explore the possibility that you have contributed to the problem.

This isn't easy, even if you have reason to believe it's so, because you may not be fully aware of what you have done to fuel the fire. Three helpful questions to ask yourself: "Is this problem unique, or does it have a familiar ring as having happened before?", "Are others in my organization exhibiting similar behaviors?", and finally, "Am I partially the cause of the behavior I am criticizing in others?"

7. Plan your strategy.

Start by defining, for yourself, what changes you would like to see take place, Then, follow this sequence: (1) Tell the person that there is a problem. State the problem as you understand it and explain why it is important that it be resolved; (2) Gain agreement that you've defined the problem correctly, and that the employee understands that it must be solved; (3) Ask for solutions, using open-ended questions such as: "What are you willing to do to correct this problem?" In some cases, you may have to make it clear what you expect; (4) Get a commitment that the employee will take the required actions; (5) Set deadlines for completing the actions. In the case of a repeated problem, you may want to advise the employee of the consequences of failing to take corrective action; (6) Follow up on the deadlines you've set.

8. Treat the employee as an adult and expect adult behavior.

To some extent, expectation defines the result. If you indicate, by your actions or by the content or tone of your voice, that you expect less than full adult behavior, that's what you're likely to get.

9. Treat interpersonal conflicts differently.

If the problem behavior stems from a personality conflict between two employees, have each one answer these questions: (1) How would you describe the other person?; (2) How does he or she make you feel?; (3) Why do you feel that the other person behaves the way he/she does?; (4) What might you be able to do to alleviate the situation?; (5) What would you like the other person to do in return?.

10. Seek agreement regarding steps to be taken and results expected.

Nothing is really "fixed" unless it stays fixed. All parties to a dispute must agree that the steps taken (or proposed) will substantially alleviate the problem. Further, they must agree on what they will do IF the results attained are not as anticipated. This can be achieved by doing a simple role play, i.e., having each side (including your own) articulate the steps to be taken and the outcomes anticipated. That way, even if subsequent events are significantly different than expected, the lines of communication for adjusting the situation are opened.

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Computer Repair Business Plan Template & Guidebook

Launching your own computer repair business can be a rewarding way to make supplemental income or become a full-time entrepreneur in the tech sector. However, developing a solid business plan is essential for every successful startup, and this #1 Computer Repair Business Plan Template & Guidebook can help you do just that. From comprehensive operational strategies to detailed financial statements, this comprehensive guide provides the templates, tips, and strategies needed to help you create a professional business plan to propel your venture forward.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Computer Repair Business [11 Steps]
• 10+ Best & Profitable Computer Repair Business Ideas [2023]
• 25 Catchy Computer Repair Business Names:

How to Write a Computer Repair Business Plan in 7 Steps:

1. describe the purpose of your computer repair business..

The first step to writing your business plan is to describe the purpose of your computer repair business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a computer repair business:

Our purpose is to become the preferred choice for computer repair services by providing high quality, cost-effective, and timely services to customers in our local area. We will foster an atmosphere of trust, respect, and hard work that furthers our mission of being a leader in the computer repair industry. We will strive to exceed customer expectations and create a benchmark for quality in the industry which makes us the go-to choice for computer repair needs.

2. Products & Services Offered by Your Computer Repair Business.

The next step is to outline your products and services for your computer repair business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your computer repair business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your computer repair business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your computer repair business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a computer repair business?

The following equipment, supplies, and permits may be needed to run a Computer Repair business:

• Computer tools and diagnostics software
• Computer parts (RAM, hard drives, etc.)
• Business license
• Business liability insurance
• A secure premise for storing customer data
• A professional office space or workshop
• An online presence (website, social media etc.)

5. Management & Organization of Your Computer Repair Business.

The second part of your computer repair business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your computer repair business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Computer Repair Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a computer repair business varies based on many different variables, but below are a few different types of startup costs for a computer repair business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your computer repair business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your computer repair business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your computer repair business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Computer Repair Business Plans:

Why do you need a business plan for a computer repair business.

A business plan is important for any business as it provides a roadmap, sets out goals and objectives, outlines the financial sources and expenses, and ultimately helps an entrepreneur to decide whether to proceed with the venture or not. A computer repair business needs a business plan to assess feasibility and identify potential sources of income. It should also contain an industry analysis to determine current market trends and potential target customers, details of the products or services you offer, a marketing strategy, and a financial plan. All this information is necessary in order to secure financing or attract investors as well as to form a viable road map for launching the business.

Who should you ask for help with your computer repair business plan?

You should start by asking a business consultant or an accountant for help with your computer repair business plan. They can provide you with valuable feedback and advice on how to structure your plan, how to approach potential investors, and what type of information you should include in the document. Additionally, you may want to reach out to other business owners in the same field for help, as they may be able to provide insider tips on what works and what doesn't.

Can you write a computer repair business plan yourself?

Yes, you can write a computer repair business plan yourself. However, it is recommended that you seek help from an experienced business consultant or business plan expert. A professional can help ensure that you create a comprehensive and accurate plan that meets the needs of your business.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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Computer Repair Business Plan Sample

MAY.05, 2015

Computer Repair business plan for starting your own shop

Starting a computer repair business is undoubtedly a profitable venture. In this era, computers have become an integral part of offices, industries, organizations, institutes, and even homes. Any enterprise that uses computers to manage its operations also needs some authentic computer repair services to timely maintain, repair, and upgrade the computers.

Thus, if you are thinking about starting this business, you don’t need to worry about the scope and opportunities. Just focus on how to open a computer repair business. For that, you will need to make a business plan for computer repairs, as the first step. In case, you don’t know how to create a comprehensive computer repair business plan pdf , we are providing here the business plan for a startup, PC Fix.

Executive Summary

2.1 the business.

PC Fix will be a licensed and registered computer repair business startup. The business will be based in Boston. The business will provide computer repair, maintenance, and upgradation services to individual customers, and small and large business setups.

2.2 Management of Computer Repair Shop

Computers can get software and hardware problems anytime. Therefore, if you want to start a computer repair business you must have adequate staff. So that you can provide your customers with instant support.

While you decide your strategy about how to set up a computer repair business, you should start gathering a skillful workforce. To manage your business, you will also be needing experienced supervisors to monitor all aspects.

2.3 Customers of Computer Repair Shop

Before researching how to start a computer repair business you should explore who will be your customers. Knowing your customers will help you in amassing the equipment and staff that could meet their demands.

PC Fix identified its customers as individuals who possess their personal computers, small and large businesses, educational institutes, and government organizations.

2.4 Business Target

Our aim is to become the most renowned computer repair business within a year of our launch. Our financial targets to be achieved over the next 3 years are demonstrated in this table.

Company Summary

3.1 company owner.

Steve Wayne will be the owner of PC Fix. Steve has an Associate Degree in Computer Science. He has worked as a computer support specialist for three years at Boston Finance Commission.

3.2 Why the computer repair shop is being started

Steve gained extensive experience in his field during his job. After three years he realized that he can earn multiple folds by becoming an entrepreneur. Considering his knowledge area he decided to start computer repair business plan pdf .

3.3 How the computer repair shop will be started

Step1: Plan your business

As a first step, you should plan everything about your computer repair business plan pdf and write it in your computer repair business description. If you don’t know what to include in a computer repair business plan pdf you can take help from this computer repairs business plan example. In this computer repair business plan sample we have listed everything about PC Fix including market analysis, sales business strategy , personnel plan, and financial plan.

Step2: Define your brand

After creating your computer repair business plan pdf , it’s now time to acquire the required licenses and setting up your physical presence. Meanwhile, you should also define your business values and aims to make people feel associated with your goals.

Step3: Start the recruitment

The next step is to initiate your hiring process to find the most competent employees.

Step4: Get ready to promote & market

After you’ve concluded all the above-mentioned steps, you should go for promoting your services.

Step5: Establish a web presence

These days, whenever people need any type of service, they search for it on Google. Therefore, it is very important to establish a strong web presence. It will enable you to come in top searches. And it will also allow you to attract more people by showing them others’ feedback.

Before owning a computer repair business you should decide your services. Through this, you will be able to purchase the right equipment and hire the right staff. In this computer repair business plan template we are listing the services of PC Fix.

• Hardware Repairs/ Maintenance/ Upgradation

We’ll also provide computer hardware repairs. Hardware issues are very common in computers. People often complain about screen freezes, blue-screen, file corruption errors, and abnormal shutdowns. They are all in actual hardware issues.

Along with it, we will provide regular maintenance and upgradation services on an instant basis as well as on monthly and yearly contracts.

• Software Repairs/ Maintenance/ Upgradation

We will troubleshoot and resolve software problems and faults. When hired on a monthly or yearly contract, we’ll ensure regular maintenance and upgradation of software.

• Computer, Laptop and Mobile Accessories

We will also offer computer and cellphone accessories such as network interface cards, batteries, speakers, headsets, USB flash drives, etc.

• Database Management System Development

Our last service will be for businesses, institutes, and organizations. In this, we will develop a cost-effective database management system for them to manage large and irregular datasets.

Marketing Analysis of Computer Repair Shop

Before starting computer repair business it is essential to carry out a detailed marketing analysis. Marketing analysis allows you to identify ongoing and forthcoming market trends. That will eventually enable you to recognize

• The customers that may be directly or indirectly interested in your services.
• The unoccupied opportunities to serve your target customers.
• The ways that can best capture the attention of your target customers.
• The product prices that can help you draw customers as well as earn profit.

Marketing analysis should be done systematically. If you don’t know what to include in a marketing plan, you can take help from here. In this blog on how to write a business plan for computer repairs, we’re providing the marketing analysis done for PC Fix.

5.1 Market Trends

In the United States, almost everyone possesses a personal computer, laptop, or cellphone. Along with it, to manage large data sets and to work on research areas, government organizations, educational institutes, and businesses use computer-based labs and systems. With these electronic gadgets, come their hardware and software issues. Therefore, a computer repair business is needed more than ever.

Currently, more than 41k computer repair businesses are running in the U.S. according to IBISWorld. The market size until 2020 is reported to be $18 billion. Moreover, the industry has also acted as a source of employment for more than 124k people.

5.2 Marketing Segmentation

Before opening a computer repair business, you should identify the groups of your target customers. Doing this will enable you to recognize their expectations, needs, and purchasing capabilities.

As computers are used in nearly every field now, the customers of the computer repair business belong to various walks of life. The major groups of customers as identified by PC Fix are given below.

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5.2.1 Individuals

The first group of our target customers comprises people and students who have their personal computers and laptops. This category gets really worried on encountering any faults/ problems with their devices. Therefore, we expect them to visit our shop frequently for hardware/ software repairs and also for purchasing electronic accessories.

5.2.2 Small & Large Businesses

The second group of our target customers will be businesses. Nowadays companies use computers to monitor their business, cash flows, and to perform their work. Thus, they are expected to avail of our services on a contract basis as they need regular maintenance and upgradation.

5.2.3 Educational Institutes

Our third category comprises educational institutes that have established computer labs for study, research, and management purposes.

5.2.4 Government Organizations

Last we also expect government organizations based in our city to be our customers for their computer repairs and upgradation.

5.3 Business Target

In your computer repair business model you should clearly define your computer repair business plan pdf targets to be achieved over a specified time. This can help you in directing your workforce and your resources towards a common goal.

PC Fix aims at

• Earning a net profit margin of $28k per month by the end of the third year
• Earning an average rating above 4.65 by the end of the first year
• Maintaining a CSAT score above 90%
• Achieving a customer retention rate of 90% by the end of the first year

5.4 Product Pricing

Our prices are slightly lower than that of our competitors. This is because we want to get introduced to a large number of people as soon as we get launched.

Marketing Strategy

To capture the attention of your target customers amid huge competition, it is necessary to have an efficient sales strategy. In this computer repair business proposal we are providing computer repair business marketing plan of PC Fix. So that you can learn what can be done to stay competitive and successful.

6.1 Competitive Analysis

• We have extremely skilled and collaborative staff.
• We are highly client-oriented and are willing to go the extra mile to satisfy our customers.
• Customers can book our services through our website.
• Only we in our vicinity are providing computer and cellphone accessories. And that is something that will help us draw more customers.

6.2 Sales Strategy

To attract our target customers, we will:

• Establish a strong web presence by making it SEO
• Advertise our services through Google Local ads service
• Provide a 40% discount on all of our services except PC accessories for the first 3 months of the launch
• Provide a 30% discount to organizations, businesses, and institutes on a 6-month maintenance contract.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

When you write a business plan computer repair shop, you should also include a list of required employees in it. Through this, you’ll be able to define a criterion to select the most competent employees. Moreover, make sure that you also throw light on their average salaries for at least 3 years in your personnel plan.

7.1 Company Staff

Steve will be the CEO himself. However, to run his business he will hire the following people.

• 1 Co-Manager/ Supervisor to procure equipment & see overall operations
• 8 Computer Repair Technicians
• 1 Software Developer to develop management software & company’s website
• 1 Accountant to maintain financial records
• 2 Sales Executives to promote the company and negotiate contracts
• 1 Store Manager (to manage accessories display and sales)
• 1 Receptionist

7.2 Average Salary of Employees

Financial plan.

A considerable amount is needed to build a computer repair business. If you want to make sure that your investment group to business plan doesn’t go waste, you must do accurate financial planning before you actually start your business. An accurate financial plan includes cash flow tables and diagrams, projected profit and loss, gross margins, and balance sheets. Combined, all these segments provide you with the idea of how to cover any unexpected financial loss. Or how much to keep in reserve etc.

Here, we are providing the financial plan made for PC Fix, so that you can take a general idea of computer repair finances.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Example Computer Repair Business Plan in pdf

OGS capital writers specialize in business plan themes such as mobile phone company business plan , computer store business plan, iPhone repair business planning , solid semiconductor business plan , best biotech business plan , tech business plan, etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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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..

Related Topics

E-commerce internet sample business plan, wifi kiosks sample business plan, industry specific software sample business plan.

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.

ExpertHub Staff

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Computer repair business plan

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Electronics Repair Shop Business Plan

Start your own electronics repair shop business plan

Tucson Electronics

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.">.

Tucson is a start-up business located in the West end of Tucson Arizona. The company specializes in the repair and sales of home electronics, specifically home entertainment electronics, including TV, DVDs VCRs and CD players.

We will target people who place great importance in their entertainment equipment and own higher-end electronics, where repairing them would be more cost effective than replacing them. Many low end VCRs for example, are priced so low, people find it more cost effective and convenient to purchase a new product than to get the existing one repaired.

The company is owned and managed by James Munroe, a retired Navy Commander with a degree in electrical engineering from the University of Texas-Austin. He is a certified electronics technician with various brand companies. He will also employ his son to help with running and growing the business.

1.1 Objectives

Tucson Electronics (TE) is a growth-oriented business. Its ten year goal is to become a regional leader in TV/VCR/home stereo repair, with shops in the Tucson and Phoenix area. With this in mind, the objectives over the next three years for Tucson Electronics are the following:

• Achieve steady growth in sales revenues by year three.
• Achieve local market share (in the Tucson area) of approximately 20% by year five.
• Expand product line to include authorized satellite service installation and new home entertainment electronics sales.

1.2 Mission

The mission of Tucson Electronics is to provide high quality, convenient and comprehensive TV/DVD/VCR and home electronics repair at a low cost. The most important aspect of our business is trust. It is the goal of our firm to have 100% customer satisfaction in regards to quality, friendliness and time to completion, and discover new ways to exceed the expectations of our customers while doing so at the lowest possible cost.

1.3 Keys to Success

In the TV/VCR repair industry a company builds its client base one customer at a time and mostly through established marketing practices (ads, billboards, etc.). With this in mind, the keys to success for Tucson Electronics are:

• High-quality work.
• Attention to professional appearances at all times.
• Knowledgeable technicians that are friendly, customer oriented, and will take the time to explain to customers the intricate nature of our business and our work.
• Maintaining a highly aggressive managerial oversight on costs to provide our services at the lowest price.

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.">

Tucson Electronics is envisioned to be the low cost leader in TV/DVD/VCR and home stereo repair for the Tucson area that will also be able to eventually provide satellite TV installation/servicing and new electronics sales, making it the local leader in comprehensive electronic sales/services.

The company will be a sole proprietorship registered in the state of Arizona and owned by Mr. James Munroe. The firm will have facilities on 530 W. Prince Ave. The initial facilities will contain a sales area, repair room in the back of the shop, office space and storage for parts and equipment.

The company is seeking a loan in order to finance the start of operations for the company. The owners will be putting up additional capital of their own as equity.

2.1 Start-up Summary

The data obtained for the start-up table comes from research done in the Tucson area with other small electronics shops who have started their own business, in addition to Mr. Munroe’s previous experience within the industry. Inflation has been taken into account between the estimates of these fellow business owners (and when they started) and the current prices for expensed items. Much of the equipment to go into the facilities such as tools, are currently owned by Mr. Munroe.

Products and Services

Tucson Electronics offers a wide range of services as outlined in the detailed sections below. It is ultimately the goal of the company to offer a one-stop facility for all home entertainment needs, including both sales and servicing. In this way the company can offer greater perceived value for the customer than many other shops which only offer sales or services.

The industry is highly competitive with suppliers having a great deal of power in setting and negotiating the prices of their products and services to repair shops. In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors, buyer power is also very high. Finally, the barriers to entry are moderately low, and the large number of competitors in this field, including substitutes (such as do-it-yourself work) mean that the pricing for such services is very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively or to create higher switching costs through the building of strong business-to-customer ties. It is the aim of Tucson Electronics to create a competitive advantage through both the low cost strategy and by offering greater value through its broader product and service line.

Tucson Electronics will initially have only one factory trained and certified technician in the person of Mr. Munroe. As the company grows and expands, Mr. Munroe will hire trained and certified technicians who are able to prove they have superior customer awareness and interaction. It is the company’s professional people who will fulfill the firm’s contracts and goals. The largest part of the company’s expenses will be in labor costs.

3.1 Product and Service Description

Tucson Electronics provides a wide range of home entertainment repair services. These include:

• Repair and cleaning of  home and car stereos and CB radios.
• Repair and cleaning of TVs.
• Repair and cleaning of VCRs and DVDs.
• Sale of used TVs, stereos, VCRs and DVDs.
• Free estimates on repair jobs.
• Authorized warranty servicing on all major brands of home entertainment systems.
• House calls and free pickup and delivery.

Future products and services that Tucson Electronics will prepare to institute include TV/VCR/DVD rental, satellite TV installation and servicing, sales of new TVs, DVDs, VCRs and stereos, and repair/sale of microwave ovens. Mr. Munroe is also investigating the possibility of offering a new product line of home entertainment cabinets at some future date.

3.2 Sourcing

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A large part of Tucson Electronics enhanced services will be free pickup and delivery of electronics to a person’s home. Mr. Munroe’s cousin, Mr. Thomas Porter, owns Caesar Courier Services, a local company providing pickup and delivery services. Mr. Porter has agreed to provide these services to Tucson Electronics’ clients at discounted prices to Mr. Munroe.

3.3 Technology

The technological revolution in computers has enhanced our abilities to diagnose and repair our clients home electronics. Tucson Electronics will remain on the cutting edge by instituting the use of computer diagnostic equipment in its shop. The company will continue to seek new ways to provide a better service through technology.

3.4 Competitive Comparison

The electronics repair industry is highly competitive. Each company within this field has high labor costs, low margins, and a high intensity of competition.

Suppliers have a great deal of power in setting and negotiating the prices of their products and services to repair shops. This is due to the fact that the suppliers who absorb the greatest amounts of cash from repair shops are large electronic manufacturing companies such as Panasonic, Emerson, Toshiba, etc. These companies are more consolidated than the repair industry, have deeper pockets, an almost limitless number of substitute customers, and finally they are the single most important supplier to the electronic repair industry. Therefore, these companies can set whatever price they wish to. Furthermore, labor is the single most important expense in this industry, and salaries for such individuals are well known and not very flexible.

 In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors (if they offer a suitable level of quality) buyer power is also very high. Additionally, the costs of our services are not cheap, and buyers are willing to search for the most favorable combination of price and acceptable service.

 The barriers to entry and exit are moderately low in this industry. Switching costs are virtually non-existent and the costs to entry and exist the market are low. The large number of competitors in this field including substitutes mean that pricing for such services are very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively to all aspects of the business or to build up customer relations to a point where the switching costs are raised.

Based on this analysis, Tucson Electronics will pursue a low cost leadership strategy as its primary competitive advantage. Furthermore, the company will simultaneously build up its product and service line to take advantage of the limited opportunity to create higher switching costs through enhanced value creation and to spread out costs.

3.5 Future Products and Services

Future products and services that Tucson Electronics will prepare to institute include TV/VCR/DVD rental, satellite TV installation and servicing, sales of new TVs, DVDs VCRs and stereos, and repair/sale of microwave ovens. Mr. Munroe is also investigating the possibility of offering a new product line of home entertainment cabinets at some future date.

Tucson Electronics will start implementing these new products or services in the following time periods:

• Repair/sale of microwave ovens (3rd Qtr 2004).
• Satellite TV installation and servicing (3rd Qtr 2005).
• TV/VCR/DVD rental (2nd Qtr 2006).
• Sales of new TVs/DVDs/VCRs (4th Qtr 2006).

The capital investment needed for such expansion will primarily come from the company’s accumulated operating cash account. It is anticipated that some of these product/service expansions that require significant inventory, such as new sales, may require additional cash inflow such as loans. The company will be preparing proposals for various lending institutions in anticipation of this need.

Presently the product that is really driving the electronics repair market is computers. While Tucson Electronics is not currently positioned to take advantage of this situation, it is the long-term goal of Tucson electronics to incorporate computer repair services within the company. Once the firm is able to generate enough cash to retain the services of a computer repair technician, the company will evaluate the viability of such a move. It is anticipated that this service will be offered sometime after 1st Qtr 2007.

Market Analysis Summary how to do a market analysis for your business plan.">

There are approximately 332,500 households in the greater Tucson area, which includes suburbs such as Green Valley, Ina, and South Tucson. Virtually all of these households have TVs, VCRs, etc. Tucson Electronics segments its market into product categories that reflect the estimated number of each electronic device currently being used in the greater Tucson area, since each of these devices may fail at any time and require our services. In addition the growth rate of each product emplaced in the home is based on the current sales growth of each product. Presently, the fastest growing product, in terms of sales, is the DVD player. It is anticipated that the DVD will replace the VCR within the next three to five years as movie rental stores replace their existing VHS movies with DVD. The largest segment is the home and car stereo segment, since usually a household has more than one of these systems. The company will be focusing on servicing all of these systems, and not focusing on one over the other.

4.1 Market Segmentation

Tucson Electronics has segmented the households in the Tucson area as follows:

• Couples with children.
• Couples without children (including Baby Boomers).
• Retired people.
• Students living in multi-unit housing.
• Single people living alone.
• Single people living with roommates.

Tucson will target the following segments.

Middle class couples without children . This group will tend to have a higher disposable income since they have two incomes but do not have the expense of children. They prioritize socializing and spend a fair amount of time entertaining in their home and in the homes of their friends. For this reason they will spend more on their electronic equipment.

Single men living alone or with roommates . This group is not the largest segment for us, but potentially one of the most profitable, since single men tend to prioritize their home entertainment equipment. They will spend a greater percentage of their income on high-quality TV and stereo equipment.

Baby boomers . Baby boomers are reaching the age where their children have left home and they have more disposable income than when their children were young and living at home. They are more tech savvy than the generation before them and appreciate the good things in life. They like to spend time in their homes, now that the children are out of the house.

4.1.1 Market Trends

The market demand for electronics repair has been relatively stable over the past decade. With the advent of DVD players, the market is seeing more highly trained technicians needed. As technology progresses, long-term planners within this market expect to see new opportunities for electronics repair quickly arise. Such devices as cellular telephones, PDAs and other new electronics may have a role to play in the people who have a broad vision in this field.

4.2 Service Business Analysis

Tucson Electronics is fortunate in that Janet Munroe, Mr. Munroe’s wife works in cost analysis for Wal-Mart, one of the country’s best low cost companies. Mrs. Munroe has agreed to furnish cost analysis services to Tucson Electronics for free.

The low cost leadership strategy will not be simple to achieve. Realistically speaking, because of the fragmented nature of the industry, Tucson Electronics will only seek a low cost leadership in the Tucson region for the first seven to ten years of operations. In order to capture this position and achieve its benefits of high market share and profitability, the company is expected to have higher start-up costs and lower profits within the first few years as the company invests in better and more efficient facilities and equipment than most competitors and engages in aggressive pricing to capture market share. The company will rigorously evaluate every aspect of the company to improve efficiency and lower costs. Mrs. Munroe is preparing an analysis of the company’s value chain and cost drivers to identify where costs can be lowered and which aspects of the business Mr. Munroe must focus on. It is expected that management will expend a great deal of energy in cost management and the reduction of things such as marginal customer accounts and marketing expenses. Once in operation, management will concentrate on developing established procedures that will create the most effective service experience. Finally, as part of this low cost leadership strategy, the company plans to vertically integrate to include original sales and broad services that will spread costs and serve all major customer types so as to build volume.

4.2.1 Competition and Buying Patterns

Customers traditionally purchase services in this industry because of effective advertising and reputation. The customers wish to be reassured that they will receive prompt and reliable service and have an understanding service representative will listen to their problems and seek to solve them in a fast and professional manner. Therefore image during the entire service experience is crucial to maintain word-of-mouth marketing and keep a low curn rate. Currently the largest problem that faces small firms is product/service awareness. By the use of effective and widespread advertising, Tucson Electronics expects to be able to capitalize on the weakness of the the “mom and pop” outfits style of passive promotion (such as Yellow Page ads) and to leverage greater product awareness into higher market share. There is no seasonality to this industry although there is some slight increase in servicing sales during the Christmas season.

4.2.2 Business Participants

As stated before, the electronic repair industry is highly fragmented. In fact, there are so many small providers that any company in this industry is facing a purely competitive environment. Approximately 23,700 electronic repair firms exist in the country today. Firms within this field range in sizes from the “mom and pop” outfits such as Dave’s Electronics and Kachina Repair  in downtown Tucson to regional companies like Magnolia Hi-Fi and the national chains such as Circuit City. Not all of these firms are purely repair outfits. In fact all of the larger firms make the majority of their revenue in original sales. It is these companies that have the largest market share and have the opportunity to compete by differentiating on customer service or product/service range.

As stated before, Tucson Electronics will seek a low cost leadership approach in the local Tucson region first. Its goals are not to directly compete with the larger companies who could effectively out compete Tucson Electronics. Instead, the company will seek to outprice the local “mom and pop” outfits and acquire their market share in order to then compete with the regional firms. There are eight such “mom & pop” firms that will be Tucson Electronics’ main competitors in its first few years of operation. They are:

• Dave’s Electronics.
• Kachina Repair.
• Cactus Repair and Appliance.
• Robb’s Repair.
• Sam the TV Man.
• Teletron Service Co.
• Ferndale TV Shoppe.

Strategy and Implementation Summary

The following sections outline Tucson Electronic’s strategy and implementation summary.

5.1 Marketing Strategy

The company has a strong program of marketing its services that include the following:

• Direct mailers.
• Newspaper ads.
• Yellow Pages.
• Referrals through other local businesses.
• Billboards.
• Web banners on local information sites.

The company’s aim is to overcome the traditional small firm’s passive form of advertising and promotion by sending our message to the customer, instead of having the customer look for a firm when they need our services. The share development graph below shows how the company plans to build market share through service awareness, value creation, competitive price, availability, and attractive service experience, all leading to the purchasing of our services. The numbers given in the graph give the estimated percentages of those customers who respond favorably to each marketing step. These numbers multiplied together give us an estimated aggregate market share of approximately 16%. The company expects to achieve this by year four.

5.1.1 Pricing Strategy

Tucson Electronics exists in a purely competitive environment where each firm must be a price taker. In other words, the firm has no ability to affect the market price of its services, regardless of how many TVs/DVDs or VCRs it repairs. In this case, therefore, marginal revenue (the revenue incurred by producing or servicing one more unit) is equal to the price charged. Furthermore, because the demand curve is essentially horizontal, Tucson Electronics can service electronics at total capacity without effecting the price.

What all of this means for the company is that the we must seek to charge our clients at the market price (or lower). Research has shown that the average price is approximately $75 per electronic device. As long as marginal costs do not exceed revenues, the company’s method to maximize short-run profits is to service the various electronic devices at maximum capacity. This means that Tucson Electronics can expect an long-term ROA of approximately 14%.

5.1.2 Promotion Strategy

The company’s promotion strategy will take the form of flyers, direct mailers, price discounts, billboards, radio ads and advertisements in newspapers and yellow pages. TE expects to spend a large amount on marketing in the first two years in order to build up product awareness and service value in the minds of our customers.

5.2 Competitive Edge

Tucson Electronics’ competitive edge lies in its ability to provide quality and fast electronic repair at lower cost than any local small competitor. This positioning of the company provides protection against the power of suppliers by creating more flexibility to cope with increasing costs. In addition, this approach will provide returns even during economic downturns and when other unforeseen problems arise.

Sales Forecast forecast sales .">

The sales forecast is based on the estimated number of electronics the company could service that are currently emplaced in the homes in Tucson. This is conservatively estimated at about two million units. From that number it is assumed that approximately 3% of all those will fail in any year. These two numbers multiplied together give us yearly market demand for our services. With an aggressive promotional strategy, a 10% market share is assumed by year three and multiplied by the estimated market demand. This is then multiplied by the estimated price per unit to arrive at the yearly sales figure assumed for year three (once the company’s marketing efforts have paid off). This number is then decreased by a logical amount to estimate the first two years of revenue.

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.">

Mr. James Munroe is a retired Navy Commander with a degree in electrical engineering from the University of Texas-Austin. During his naval career, Mr. Munroe gained extensive experience in project management, engineering, and electronics systems. During his leisure time, Mr. Munroe sought to expand his experiences in electronics by becoming a certified electronics technician with various brand companies. Mr. Munroe is now seeking to leverage this experience into a growth-oriented business that will be able to eventually compete with the largest firms in the industry.

Mr. Munroe will also be employing the services of his son Samuel, who desires to eventually take over the business. Samuel Munroe has been attending a local trade school and is expected to graduate with a degree in electronics in the summer of 2002.

7.1 Personnel Plan

Tucson Electronics’ initial staffing will consist of Mr. Munroe, his son, and two part-time technician trainees. Accounting, bookkeeping, and marketing consulting services will be outsourced. The company’s intermediate goal is to have four full-time, fully trained technicians at the original facility, plus a full-time office manager. However, management has decided to await future developments before determining the best time to bring on such personnel.

Financial Plan investor-ready personnel plan .">

The following sections outline the financial plan for Tucson Electronics.

8.1 Break-even Analysis

The company’s break-even analysis is based on an average company’s running costs within this industry, including payroll, and its fixed costs for such things as rent, utilities, etc. As Tucson Electronics operates as a job-shop, with each task a unique, customized service, it is difficult to estimate revenue per unit and variable costs. The reader must understand that there is a high degree of variance within these estimates.

The reader will also note that the company is not expected to reach its break-even point until the last three months of sales of the first year.

8.2 Projected Profit and Loss

The following table and charts are the projected profit and loss for Tucson Electronics.

8.3 Projected Cash Flow

The following chart and table is the projected cash flow for Tucson Electronics.

8.4 Projected Balance Sheet

The following table is the projected balance sheet for Tucson Electronics.

8.5 Business Ratios

The Business ratios give an overall idea of how profitable, and at what risk level, Tucson Electronics will operate at. The ratio table gives both time series analysis and cross-sectional analysis by including industry average ratios. Industry Profile ratios are based on Standard Industrial Classification (SIC) code 7622, Radio and Television Repair. As can be seen from the comparison between industry standards and Tucson Electronics own ratios, there are some differences. Most of these are due to the fact that there is a very large variance in assets, liabilities, financing, and net income between companies in this industry due to the vast differences in company size. The reader will also note that there is a fair amount of variability between the various years. This is due to the fact that the company is expected to grow quickly and have a large variance in profitability from year to year at first.

Overall the company’s projections show a company that faces the usual risks of companies in this industry and one that will be profitable in the long-run. The company shows that it has higher advertising and start-up costs than other competitors, however management has deliberately overstated costs and minimized profits in order to create a “safe” or “buffer” zone in case of hard times or other unforeseeable problems. Pre-tax return on net worth and pre-tax return on assets appears to be very high, especially within the first two years, however again this is due to the fact that the company will be facing highly variable revenue and costs over the first few years.

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Everyone deserves to succeed. But today, for too many Canadians, especially Millennials and Gen Z, your hard work isn’t paying off like it did for previous generations. Your paycheque doesn’t go as far as costs go up, and saving enough seems harder and harder. It doesn’t have to be this way. Every generation should get a fair chance to get ahead.

One of the biggest pressures on people right now is housing. Young Canadians are renting more than ever and being priced out of their communities. Families are finding it difficult to get a good place to settle down. The cost to build homes is too high, and the time it takes to finish projects is too long. We need to build more homes in Canada, and we need to build them by the millions.

The Prime Minister, Justin Trudeau, the Deputy Prime Minister and Minister of Finance, Chrystia Freeland, and the Minister of Housing, Infrastructure and Communities, Sean Fraser, today unveiled the federal government’s ambitious housing plan, Solving the housing crisis: Canada’s Housing Plan , supported by new investments from the upcoming Budget 2024. At the heart of this plan lies a commitment to make housing affordable. No hard-working Canadian should have to spend more than 30 per cent of their income on housing costs. No Canadian should have to live without knowing they have a safe and affordable place to live.

The plan lays out a bold strategy to unlock 3.87 million new homes by 2031. This includes a minimum of 2 million net new homes, on top of the Canada Mortgage and Housing Corporation’s forecast of 1.87 million being built anyway by 2031. Federal actions in this plan, in Budget 2024, and taken in fall 2023 will support at least 1.2 million new homes, and we call on all orders of government to build at least 800,000 more homes by 2031.

Here’s what we’re doing:

Building more homes by bringing down the costs of homebuilding, helping cities make it easier to build homes at a faster pace, changing the way Canadian homebuilders manufacture homes, and growing the workforce to ensure we get the job done. This includes:

• A Public Lands for Homes Plan to lead a national effort to build affordable housing on federal, provincial, territorial, and municipal lands across the country. We will partner with homebuilders and housing providers to build homes on every possible site across the public portfolio and ensure long-term affordability.
• $15 billion in additional loans for the Apartment Construction Loan Program to build a minimum of 30,000 new rental apartments, in big cities, small towns, and rural communities alike, will be proposed in Budget 2024. With this additional financing, the program is on track to build over 131,000 new apartments by 2031-32.
• Launching Canada Builds, a Team Canada approach to building affordable homes for the middle class on under-utilized lands across the country. Canada Builds combines federal low-cost loans with provincial and territorial investments to scale up construction on rental homes for the middle class, from coast to coast to coast.
• Supporting Indigenous Peoples in urban, rural, and northern areas . We will also provide additional distinctions-based investments for Indigenous housing to be delivered by Indigenous governments, organizations, housing, and service providers.

Making it easier to own or rent a home by ensuring that every renter or homeowner has a home that suits their needs, and the stability to retain it. We’re putting measures to protect tenants against unfairly rising rent payments, leverage rental payment history to improve credit scores, increase the Home Buyers’ Plan withdrawal limit, extend mortgage amortizations for first-time home buyers buying newly built homes, and more:

• Launching a Tenant Protection Fund to provide funding to legal services and tenants’ rights advocacy organizations to better protect tenants against unfairly rising rent payments, renovictions, or bad landlords.
• Leveraging rental payment history to improve credit scores, helping you qualify for a mortgage and better rates.
• Increasing the Home Buyers’ Plan withdrawal limit by $25,000 and extending the grace period to repay by an additional three years.
• Extending mortgage amortizations for first-time buyers buying newly built homes . Mortgage insurance rules will be amended to allow 30-year mortgage amortizations exclusively for first-time home buyers purchasing new builds.

Helping Canadians who can’t afford a home by creating more affordable and rental housing – including for students, seniors, persons with disabilities, and equity-deserving communities – and eliminating chronic homelessness in Canada. This includes:

• Providing $1 billion for the Affordable Housing Fund to build affordable homes and launching a permanent Rapid Housing Stream to build on the success of the previous three rounds of the Rapid Housing Initiative.
• Launching a $1.5 billion Canada Rental Protection Fund to protect and expand affordable housing.

The Prime Minister also announced new measures included in Canada’s Housing Plan to attract, train, and hire the skilled-trade workers Canada needs to build more homes.

• $90 million for the Apprenticeship Service , creating apprenticeship opportunities to train and recruit the next generation of skilled trades workers.
• $10 million for the Skilled Trades Awareness and Readiness program to encourage high school students to enter the skilled trades – creating more jobs and opportunities for the next generation of workers to build Canada up.
• $50 million in the Foreign Credential Recognition Program , with a focus on residential construction to help skilled trades workers get more homes built. Like our previous $115 million investment, this funding will remove barriers to credential recognition, so workers spend less time dealing with red-tape and more time getting shovels in the ground.

Transforming our housing system and solving the housing crisis will take a Team Canada effort. No one level of government, home builder, not-for-profit, or community can do it alone. We need every partner pulling in the same direction to build the homes Canadians need.

This is about realizing Canada’s promise of affordable housing for every generation – and it’s just one of the things that we are going to be doing in Budget 2024. Alongside these measures, we’re getting healthy food on kids’ plates, delivering stronger public health care, making life more affordable, and creating good jobs to make sure every generation can get ahead.

“We are changing the way we build homes in Canada. In our housing plan and Budget 2024, we are delivering ambitious action and investments to build more homes, make it easier to rent or own, and help the most vulnerable with stable housing. This is about restoring fairness for every generation, and housing is at the heart of that.” The Rt. Hon. Justin Trudeau, Prime Minister of Canada

“We are announcing today real, tangible measures that are going to help more younger Canadians get those first keys of their own. We are using every tool at our disposal to deliver housing without delay – because we want to make the dream of homeownership a reality for younger Canadians.” The Hon. Chrystia Freeland, Deputy Prime Minister and Minister of Finance

“Canada can and will solve the housing crisis, and we’re going to do it by getting every home builder, not-for-profit, mayor, city councillor, and premier pulling in the same direction to build the homes Canadians need.” The Hon. Sean Fraser, Minister of Housing, Infrastructure and Communities

Quick Facts

• The Prime Minister today also announced the creation of a new Deputy Minister of Public Lands and Housing position within the Privy Council Office. The Deputy Minister will oversee and report on federal efforts to build more homes for Canadians through the use of public lands, providing a single point of accountability within the public service. An appointment to this position will be announced later today.
• Since 2015, the federal government has helped almost two million Canadians find a place to call home.
• Restore generational fairness for renters, particularly Millennials and Gen Z, by taking new action to protect renters’ rights and unlock pathways for them to become homeowners. Learn more .
• Launch a new $6 billion Canada Housing Infrastructure Fund to accelerate the construction or upgrade of essential infrastructure across the country and get more homes built for Canadians. Learn more .
• Top-up the Apartment Construction Loan Program with $15 billion, make new reforms so it is easier to access, and launch Canada Builds to call on all provinces and territories to join a Team Canada effort to build more homes, faster. Learn more .
• Support renters by launching a new $1.5 billion Canada Rental Protection Fund to preserve more rental homes and make sure they stay affordable. Learn more .
• Change the way we build homes in Canada by announcing over $600 million to make it easier and cheaper to build more homes, faster, including through a new Homebuilding Technology and Innovation Fund and a new Housing Design Catalogue. Learn more .
• The Apartment Construction Loan Program , a $40 billion initiative that will be topped up with an additional $15 billion in Budget 2024 to boost the construction of new rental homes by providing low-cost financing to homebuilders. Since 2017, the Apartment Construction Loan Program has committed over $18 billion in loans to support the creation of more than 48,000 new rental homes. With our recently announced measures , the Apartment Construction Loan Program is now on track to help build over 131,000 new rental homes across Canada by 2031-32.
• The  Affordable Housing Fund , a $14+ billion initiative that supports the creation of new market and below-market rental housing and the repair and renewal of existing housing. It is designed to attract partnerships and investments to develop projects that meet a broad spectrum of housing needs, from shelters to affordable homeownership. As of December 31, 2023, the Fund has committed $8+ billion to repair or renew over 150,000 homes and support the construction of more than 32,000 new homes.
• The Housing Accelerator Fund , a $4 billion initiative that will be topped up with an additional $400 million in Budget 2024 to encourage municipalities to incentivize building by making transformative changes, such as removing prohibitive zoning barriers. To date, the federal government has signed 179 Housing Accelerator Fund agreements which, combined, will fast-track an estimated total of over 750,000 housing units across the country over the next decade.
• The Rapid Housing Initiative , a $4 billion fund that is fast-tracking the construction of 15,500 new affordable homes for people experiencing homelessness or in severe housing need by 2026. The Rapid Housing Initiative also supports the acquisition of existing buildings for the purpose of rehabilitation or conversion to permanent affordable housing units, focusing on the housing needs of the most vulnerable, including people experiencing or at risk of homelessness, women fleeing domestic violence, seniors, Indigenous Peoples, and persons with disabilities.
• Progress on these and other programs and initiatives under Canada’s National Housing Strategy are updated quarterly at  www.placetocallhome.ca . The Housing Funding Initiatives Map  shows housing projects that have been developed.
• On November 9, 2023, we signed a historic Housing Accelerator Fund agreement with the Province of Quebec.
• Building on the success of the 2023 agreement, the federal government will continue to work closely with Quebec to build more homes for Quebecers, including by delivering additional funding through the Housing Accelerator Fund and the new Canada Housing Infrastructure Fund.
• The Government of Canada’s Budget 2024 will be tabled in the House of Commons by the Deputy Prime Minister and Minister of Finance on Tuesday, April 16, 2024.
• Save more young families money and help more moms return to their careers by building more affordable child care spaces and training more early childhood educators across Canada. Learn more .
• Create a National School Food Program to provide meals to about 400,000 kids every year and help ensure every child has the best start in life, no matter their circumstances. Learn more .
• Secure Canada’s AI advantage through a $2.4 billion package of measures that will accelerate job growth in Canada’s AI sector, boost productivity by helping researchers and businesses develop and adopt AI, and ensure this is done responsibly. Learn more .
• Provide the Canadian Armed Forces with the tools and capacity they need to defend Canada and protect North America, advance Canada’s interests and values around the world, and support its members with an overall investment of $8.1 billion over five years and $73 billion over 20 years. Learn more .

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