Executive Summary 

Opportunity

Problem

We depend on our computers. Finding reliable expertise is a problem for anybody who doesn’t
have a direct channel via a company, employer, friend, or relative. We solve that problem.

Solution

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.

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.

Competition

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.

Why Us?

PC repair will 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.

Expectations

Forecast

With our 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. We lose money slightly in the
second and third year, but we are paying the owner’s salaries and the loss is covered in cash
flow. And there will be tax benefits. We do expect to be profitable for the long term.

Financial Highlights by Year

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Financing Needed

We will be getting $43,000 to start. That will be a $20,000 loan and $23,000 from the owner.

Opportunity
Problem & Solution
Problem Worth Solving

We depend on our computers. Finding reliable expertise is a problem for anybody who doesn’t
have a direct channel via a company, employer, friend, or relative. We solve that problem.

Our solution

Pc Repair will 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.

Target Market

Market Size & Segments

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.

The portion of the small business market we are targeting is growing at around 2% a year.

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.

Competition

Current alternatives

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:

1. Competitor A. They are a well established provider of computer upgrades and services, and do
quick work. However, they have a high staff turnover, a young and inexperienced staff, and are
more interested in selling new components than in maintaining existing machines or finding
custom solutions. They do not offer any kind of pick-up and drop-off service, and do not offer
on-site help. They really only offer hardware support.
2. Competitor B. Smaller and less known then A, B provides many services for residents living in
east and south parts of town. They are more willing to spend time with a client, figuring out
exactly what his or her needs are, and suggesting new options than competitor A. However,
they have an inefficient ordering system and an unkempt shop, which deters potential
customers and can turn existing customers to the competition. They also do not offer on-site
services, although they are considering instituting a trial pick-up/drop-off service. They are in
the best position to copy our innovations and steal customers, but their management is
complacent and may not respond to competition.

Both of these companies charge rates in excess of PC Repair; we will be able to attract the price-
sensitive market without much work. 

Our advantages

Our advantages are: 

 Quick response: PC Repair will provide same day and after hours service. 
 A flat rate policy: This 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 this strategy
we can undercut most competitors and gain local market power.
 On-site and pick-up/drop-off services: This will minimize the time and effort a customer needs
to put into dealing with his computer problem.
 Suprisingly, 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.

Keys to Success

Keys to Success

Our keys to success are: 

 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.

Execution
Marketing & Sales

Marketing Plan

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

We will follow up on these opening ads with a smaller direct-marketing campaign to small
business owners, with lists drawn from the local Chamber of Commerce. Jack will use his
contacts with business customers from his years as a manager to create a "buzz" about this new
business.

We will continue periodic advertisements, including several promotions (discounts, free

diagnosis, etc.) throughout the first year. We expect a small but steady response from home PC
users who see our ads elsewhere, but will also run monthly ads in sections other than the
business one.

We will offer a promotion during the first 90 days of business to generate business traffic and
word of mouth. Our promo is Spyware removal on any desktop PC for $70 including tax and
software. Spyware is a huge problem for a lot of residential and small business customers, and
the offer should draw a lot of interest.

Sales Plan

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. At other times, or when I am on the phone, an
answering service we have hired will catch callers and give them an estimated wait time for a
call-back; this is another step towards delivering a complete solution to our customers.

Sales forecast figures are based on industry figures for the typical growth of a start-up and reflect
repeat business generated through meeting customer needs.

Milestones & Metrics

Milestones Table

Milestone Due Date

 Q1 Review Mar 06, 2018

Q2 Review June 13, 2018

Q3 Review Sept 10, 2018

Q4 Review Dec 05, 2018

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Key metrics

Our key metrics are: 

 engagements taken
 fixes
 incidents addressed
 repeat business
 # of tweets and retweets 
 # of facebook likes and views 
 # of website views 
 training 
 customer reviews 
 appt time tracking and locations

Execution
Marketing & Sales

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

We will follow up on these opening ads with a smaller direct-marketing campaign to small
business owners, with lists drawn from the local Chamber of Commerce. Jack will use his
contacts with business customers from his years as a manager to create a "buzz" about this new
business.

We will continue periodic advertisements, including several promotions (discounts, free

diagnosis, etc.) throughout the first year. We expect a small but steady response from home PC
users who see our ads elsewhere, but will also run monthly ads in sections other than the
business one.

We will offer a promotion during the first 90 days of business to generate business traffic and
word of mouth. Our promo is Spyware removal on any desktop PC for $70 including tax and
software. Spyware is a huge problem for a lot of residential and small business customers, and
the offer should draw a lot of interest.

Sales Plan

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. At other times, or when I am on the phone, an
answering service we have hired will catch callers and give them an estimated wait time for a
call-back; this is another step towards delivering a complete solution to our customers.

Sales forecast figures are based on industry figures for the typical growth of a start-up and reflect
repeat business generated through meeting customer needs.

Milestones & Metrics

Milestones Table

Milestone Due Date

Q1 Review Mar 06, 2018

 Q2 Review June 13, 2018

Q3 Review Sept 10, 2018

Q4 Review Dec 05, 2018

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Key metrics

Our key metrics are: 

 engagements taken
 fixes
 incidents addressed
 repeat business
 # of tweets and retweets 
 # of facebook likes and views 
 # of website views 
 training 
 customer reviews 
 appt time tracking and locations

Financial Plan 
Forecast

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

Revenue by Month

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Expenses by Month

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Net Profit (or Loss) by Year

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Financing

Use of funds

Our Startup Funds are: 

 Legal $650
 Website $350
 Business Cards $100
 Insurance $150
 Uniforms $300
 CPA $250
 Advertisement $1,000

TOTAL START-UP EXPENSES $3,000

Sources of Funds

Jack Hacker will put in $23,000 to start; and will take out a $20,000 loan.

Statements

Projected Profit and Loss

2018 2019 2020

Revenue $441,000 $457,800 $483,000

Direct Costs $200,466 $208,124 $219,674

Gross Margin $240,534 $249,676 $263,326

Gross Margin % 55% 55% 55%

Operating Expenses

Salaries & Wages $139,200 $171,984 $175,423

Employee Related Expenses $27,840 $34,397 $35,084

Rent $38,400 $38,400 $38,400

Marketing $8,820 $9,156 $9,660

Insurance $2,400 $2,400 $2,400

Utilities $3,000 $3,000 $3,000

Amortization of Other Current Assets $0 $0 $0

Total Operating Expenses $219,660 $259,337 $263,967

Operating Income $20,874 ($9,661) ($641)

Interest Incurred $701 $100

 Depreciation and Amortization

Gain or Loss from Sale of Assets

Income Taxes $3,026 ($1,464) ($96)

Total Expenses $423,853 $466,097 $483,545

Net Profit $17,147 ($8,297) ($545)

Net Profit/Sales 4% (2%) 0%

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Projected Balance Sheet

Starting Balances 2018 2019 2020

Cash $29,000 $67,322 $47,076 $49,377

Accounts Receivable $0 $0 $0

Inventory $1,000 $1,000 $1,000 $1,000

Other Current Assets $10,000 $10,000 $10,000 $10,000

Total Current Assets $40,000 $78,322 $58,076 $60,377

Long-Term Assets

Accumulated Depreciation

Total Long-Term Assets

Total Assets $40,000 $78,322 $58,076 $60,377

Accounts Payable $24,490 $23,822 $24,923

Income Taxes Payable $2,170 ($1,464) ($96)

Sales Taxes Payable $7,686 $6,867 $7,245

Short-Term Debt $13,171 $6,829

Prepaid Revenue

Total Current Liabilities $13,171 $41,175 $29,225 $32,072

Long-Term Debt $6,829 $0 $0 $0

 Long-Term Liabilities $6,829 $0 $0 $0

Total Liabilities $20,000 $41,175 $29,225 $32,072

Paid-In Capital $23,000 $23,000 $23,000 $23,000

Retained Earnings ($3,000) ($3,000) $14,147 $5,850

Earnings $17,147 ($8,297) ($546)

Total Owner’s Equity $20,000 $37,147 $28,850 $28,305

Total Liabilities & Equity $40,000 $78,322 $58,076 $60,377

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Projected Cash Flow Statement

2018 2019 2020

Net Cash Flow from Operations

Net Profit $17,147 ($8,297) ($545)

Depreciation & Amortization $0 $0 $0

Change in Accounts Receivable $0 $0 $0

Change in Inventory $0 $0 $0

Change in Accounts Payable $24,490 ($668) $1,101

Change in Income Tax Payable $2,170 ($3,634) $1,368

Change in Sales Tax Payable $7,686 ($819) $378

Change in Prepaid Revenue

Net Cash Flow from Operations $51,494 ($13,418) $2,302

Investing & Financing

Assets Purchased or Sold

Net Cash from Investing

Investments Received

Dividends & Distributions

Change in Short-Term Debt ($6,342) ($6,829)

Change in Long-Term Debt ($6,829) $0 $0

Net Cash from Financing ($13,171) ($6,829) $0

Cash at Beginning of Period $29,000 $67,322 $47,076

Net Change in Cash $38,322 ($20,247) $2,302

Cash at End of Period $67,322 $47,076 $49,377