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SOHO Computer Consulting Business Plan
Executive Summary
Introduction
Creative Concepts Computer Design will provide computer and technical consulting to local small businesses as well as home PC users. In doing so the company will focus on marketing, responsiveness, quality, and creating and retaining customer relations.
The Company
Creative Concepts will initially be a sole proprietorship with minimum outside financing. Creative Concepts will be a home office start-up, utilizing one studio room in the owner’s home and serving customers in the local Eugene, Oregon area. Creative Concepts will be initially owned by Bram Ekstrand. Depending on growth, the company will possibly add additional employees and expand operations.
The Market
Market research indicates an available market niche able to be occupied by additional businesses of this nature. 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. Home PC users will provide the majority of our business revenue. These jobs will typically consist of minor upgrades services and advising. 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.
Creative Concepts has decided to focus mainly on the home PC market for many reasons. These home customers typically request jobs that are easier, faster, and less resource intensive then the opposing small business customer. In addition, this market tends to offer more flexibility for service times allowing a more productive workday.
Our target market will focus on Eugene and the surrounding areas. Market research indicates there is an abundance of business for a small company such as Creative Concepts. If a need exists for increased business, such promotional mediums as radio or print ads will be explored. There are two main competitors for the computer upgrade business in the greater Eugene/Springfield area. These companies are VOS and Suntech Computers. Both of these companies charge rates in excess of Creative Concepts, therefore we expect to be able to attract the price-sensitive market without much work.
Financial Considerations
Total start-up expenses are modest. Since this is a service business and not product oriented, operational costs should remain low through the start-up process.
Fixed costs have been set at a reasonably accurate monthly level. This should allow for equipment maintenance and purchase or replacement of basic tools used in performing our services. Variable costs have been set per unit to allow for additional expenses such as gas or other travel costs specific to each job.
1.1 Objectives
- To provide a service to the community that is in sufficient demand as to generate a profit.
- Gain a strong repeat customer base to maximize growth.
- Become a positive influence in the community in which we operate.
1.2 Mission
To become a contributing unit of society while delivering a product of exceptional quality, value, and in a timely fashion. We will treat every customer as if they were our only customer.
1.3 Keys to Success
- Marketing and Networking (being known to the public).
- 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
Creative Concepts will initially be a sole proprietorship.
The goal will be to start the venture as inexpensively as possible, with minimal outside financing. Creative Concepts will be a home office start-up, utilizing one studio room in the owner’s home.
2.1 Company Ownership
Creative Concepts will be initially owned by Bram Ekstrand as a sole proprietorship. Possibly later adding additional employees and expanding operations as well as clientele.
2.2 Start-up Summary
Total start-up expenses are modest. This is composed of mostly equipment costs along with a few dollars for research of consumer wants and desires and a few pads of stationary. Exact allocations are shown on the table. Since this is a service business and not product oriented, operational costs should remain low through the start-up process.
Services
Creative Concepts will offer computer support and upgrade service to clients of two major categories, home PC users and small office users. These categories will define 95% of our operations.
3.1 Service Description
Our services can be obtained through direct hourly compensation, or if preferred or more applicable, through a contract situation with pre-defined limits.
3.2 Competitive Comparison
Our services are more thorough and precise than any existing competition in the surrounding metro area. Since we have no extravagant overhead we can be focused on delivering exactly what the customer wants, something other computer support providers in this area have a hard time with.
3.3 Technology
Creative Concepts will operate in an environment with technology that is constantly evolving. Keeping up to date will be of vital importance to the profitability of this venture. Keeping this in mind, we will maintain working, as well as functional, knowledge of all the latest software available to the public. Our customers will receive the most current versions of all software and hardware upgrades requested.
Market Analysis Summary
Creative Concepts Computer Design will provide computer support in both a consulting and technical capacity to home PC users as well as small business owners. Since Creative Concepts is currently a one man operation it will be limited in growth to the capacity of work able to be completed. Personal market research indicates an available market niche able to be occupied by additional businesses of this nature. 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.
4.1 Market Segmentation
The existing computer service market is so extensive categorizing it is a rather difficult task. For our revenue-oriented purposes we will define the market into home PC users and small business clients. Home PC users will provide the majority of our business revenue. These jobs will typically consist of minor upgrades services and advising. The small business market will be defined as customers with five or more computers or a network requiring service or repair.
4.2 Target Market Segment Strategy
Creative Concepts has decided to focus mainly on the home PC market for many reasons. These home customers typically requests jobs that are easier, faster, and less resource intensive then the opposing small business customer. In addition, this market tends to offer more flexibility for service times allowing a more productive workday.
4.2.1 Market Needs
As reported by ComputingNet magazine, there is a substantial need for individuals capable of performing computer upgrades and repairs in a timely and cost-effective manner in this region. Creative Concepts is directed specifically at that market niche.
4.2.2 Market Trends
Both the software and hardware side of the computer industry continue to turn out new and revised computer components at alarming rates. For Creative Concepts this means job security well into the future.
4.2.3 Market Growth
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 providers that do good work and satisfy their needs. An analysis of Creative Concepts’ main competitors shows no overwhelming strengths that would be significant barriers to possible success. Likewise, identifying competitor’s weaknesses has illuminated several areas that Creative Concepts can target as marketing strategies.
4.3.1 Main Competitors
There are two main competitors for the computer upgrade business in this area.
- VOS. They are a well established provider of computer upgrades and services.
- Suntech Computers. Smaller and less known then VOS, Suntech provides many services for residents living in East and South Eugene.
Both of these companies charge rates in excess of Creative Concepts, we will be able to attract the price-sensitive market without much work. Our second main advantage is the accessibility of our services. The time conscientious customer will appreciate our swift work.
4.3.2 Competition and Buying Patterns
As previously noted, there are other providers of similar services in the area. Our services will be second to no one and our prices will be rock bottom. By providing superior service word of mouth alone will bring in many new clients. The satisfaction our consumers find will keep them as our business.