Bisma PC_REPAIR SHOP

Issue License by Government of Pakistan

HEAD OFFICE

2th Floor, Building No 6 AL fazal tower Jandanwala G.t Road Kharian

Tel: (053) ####-###-### Fax: (053) #######

JULY 2019
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.
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.

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. 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
1. To provide the best service available to the community at an affordable price.
2. To generate substantial market share so that PC Repair is a common name.
3. Constant growth in sales from start up through year three.
4. To generate customer satisfaction so that at least 40% of our customer base is
repeat business.

JULY 2019
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 judgment 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.
Company Summary
 PC Repair is an S Corporation located in Jandanwala, owned by Maria Mubarak
and other partner 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. Ther 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.
.

JULY 2019
Services
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.

3.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 ther initial period
to network with other potential clients.

3.1 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

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

JULY 2019
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.

MARKET ANALYSIS

YEAR YEAR YEAR YEAR YEAR

1 2 3 4 5

Potential Growth
Customers

Home PC Users 7% 25,000 26,750 28,623 30,626 32,770

Small Business 2% 10,000 10,100 10,201 10,303 10,406

Users

Other 0% 0 0 0 0 0

JULY 2019
 Total 5.39% 35,000 36,850 38,824 40,929 43,176

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.
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 ther means job
security well into the future.

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.

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.
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 there
area.

JULY 2019
Strategy and Implementation Summary

Our Strategy and Implementation turn on three points:

1. A value proposition of timely and practical solutions, at a reasonable rate,

coupled with a 100% guarantee
2. Exploiting our competitors weaknesses: a competitive edge based on quick,
effective, and sympathetic customer service, which meets the customer where
her needs are, rather than trying to fit him into an existing box.
3. Quickly establishing a brand identity and developing a great reputation among
local customers to generate word of mouth advertising.

5.1 Competitive Edge

 Quick response: PC Repair will provide same day and after hours service.
 A flat rate policy: Ther undermines the competition, who charge by the
hour. The pricing has been set to reflect the average amount of time it takes to
perform the task. With ther strategy we can undercut most competitors and gain
local market power.
 On-site and pick-up/drop-off services: Ther will minimize the time and effort a
customer needs to put into dealing with her computer problem.
 Surprisingly, our small size is an advantage: customers will recognize me (and
future employees), and will know they will get the same great service every time
they call.

5.2 Marketing Strategy

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

5.3 Sales Strategy

Our marketing strategy will generate customer inquiries. We will close the deals by
offering an outstanding service and a very reasonable price. Happy customers generate
repeat business and word of mouth. Our toll free number is operational 24 hours a day,
seven days a week, and from 8am to 9pm, I will be available to answer calls.

JULY 2019
5.3.1 Sales Forecast

The sales strategy is a prediction of controllable growth for the first year. PC Repair will
focus on quality and attention to detail to avoid some potential pitfalls encountered by
many new businesses. The predicted growth is moderate in the home PC market and in
the small business arena.

Management Summary

PC Repair will be owned and managed by Maria Mubarak. Maria Mubarak has 10 years
of experience in the fields of technical support, networking, and computer training and
repair. Maria Mubarak 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
 the customer needs help, and we're here to help them;
 the customer is frustrated, upset, or confused - but that doesn't make the customer
a problem;
 the customer needs reassurance as well as solutions.
 Within there framework, the techs can solve the customer's problem the best way
they see fit - Maria Mubarak is not a micro manager.

6.1 Personnel Plan

Maria Mubarak will be the only employee for the first few months; her salary is directly
related to the success of the business, and will never exceed 18% of sales revenue. In
the third month, we will move to a leased office space and hire a second employee, with
a third hire planned for August, if projections are on target. We plan to hire additional
part-time employees in the second year, to better handle the increasing sales.
Our employees will be skilled professionals, with equally strong technical and people
skills. It is very important to Maria Mubarak that they be paid salaries commensurate
with their abilities and dedication- happy tech support people make for happy
customers. To that end, our full-time employees will receive health benefits (premiums
split between the employee and PC Repair), paid holidays, and sick time. Those
benefits are included in the payroll totals listed below.

JULY 2019
 PERSONAL PLAN YEAR 1

Owner 33,000

Tech1 21,600

Tech2 14,400

Part Time $0

TOTAL PEOPLE 3

Total Payroll 69,000

Financial Plan

Our financial plan calls for limited growth in the first three months, followed by much
higher sales when we move and hire additional employees. These projections are
based on sound market research and ratios for comparable businesses. As we grow,
we will keep our operating expenses down, and maintain a positive cash balance as we
repay our three-year loan.

7.1 Important Assumptions

PC Repair's customer base would fluctuate if there was a recess in the economy or
other extenuating circumstances that pertain directly to consumer or industry behavior.
However, given the steady increase in computer users despite the recent recession, we

JULY 2019
assume that sales forecasts are unlikely to be dramatically altered by economic events.
The table below shows some of our other assumptions.

YEAR
1

Plan Month 1

Current Interest Rate 7.00%

Long-term Interest Rate 10.00%

Tax Rate 30.00%

Other 0

7.2 Break-even Analysis

Fixed costs are projected at a monthly average for the first year. This includes payroll,
moving expenses and rent, purchase of a company vehicle, and other necessities like
cell phones and the answering service. Variable costs (inventory used in repairing or
servicing computers) are projected as well. At these levels, what we need to bring in per
month to break even is shown in the table and chart below. We will reach our break-
even point mid-year, although we expect sales in November and December to dip below
this level because of holidays.

JULY 2019
 BREAK-EVEN ANALYSIS

Monthly Units Break-even 52

Monthly Revenue Break-even $15,110

Assumptions:

Average Per-Unit Revenue $291.29

Average Per-Unit Variable Cost $70.00

Estimated Monthly Fixed Cost $11,479

7.3 Projected Profit and Loss

The table below shows our projected profit and loss. There are two lines for direct cost
of sales - the second line shows projected inventory costs of fulfilling our maintenance
contracts.

PROFIT AND LOSSS YEAR 1

Sales 203,030

JULY 2019
 Direct Cost of Sales 42,604

Costs of Fulfilling Maintenance Contracts 1,488

TOTAL COST OF SALES 44,092

Gross Margin 158,938

Gross Margin % 78.28%

Expenses

Payroll 69,000

Marketing/Promotion 28,000

Depreciation 0

Lease $10,000

Insurance 3,150

Website 2,080

JULY 2019
 Answering Service 2000

Mileage 2,660

Vehicles 13,200

Cell Phones 1,260

Utilities 5,000

Internet 1,200

Moving Expenses 2,000

Total Operating Expenses 137,750

Profit Before Interest and Taxes 21,188

EBITDA 21,188

Interest Expense 1,097

Taxes Incurred 6,027

JULY 2019
 Net Profit 14,064

Net Profit/Sales 6.93%

7.4 Projected Balance Sheet

The Balance Sheet shows a steadily increasing net worth over the next three years.
Since we are planning to rent, and because computer technology changes so rapidly,
we will have only short-term assets, such as computer equipment and furniture. This will
make our net worth much more liquid than many similar businesses.

BALANCE SHEET YEAR 1

Assets

Current Assets

Cash 44,593

Inventory 4,890

Other Current Assets 10,000

JULY 2019
 TOTAL CURRENT ASSETS 59,482

Long-term Assets 0

Accumulated Depreciation 0

TOTAL ASSETS 59,482

Liabilities and Capital Year 1

Current Liabilities

Accounts Payable 12,783

Current Borrowing 12,661

SUBTOTAL CURRENT LIABILITIES 25,444

TOTAL LIABILITIES 25,444

Paid-in Capital 23,000

JULY 2019
 Retained Earnings (3,025)

Earnings 14,064

TOTAL CAPITAL 34,039

TOTAL LIABILITIES AND CAPITAL 59,482

Net Worth 34,039

JULY 2019