Business Management

This document provides an introduction and brief description of the business venture Nerd Patrol. It discusses the organization of the business, key players, financials, marketing, operations, legal and sundry issues, and major challenges. The document also includes a conclusion and references.

Running head: BUSINESS MANAGEMENT
Business Management
Name of the Student:
Name of the University:
Author’s Note:

1BUSINESS MANAGEMENT
Table of Contents
1.0 Introduction and brief description of the venture......................................................................2
1.1 Introduction............................................................................................................................2
1.2 Overview of the Business Venture Nerd Patrol.....................................................................2
1.3 Business Aspirations..............................................................................................................2
2.0 Organization of the business and Key Players..........................................................................3
2.1 Owners: Roles and Qualifications.........................................................................................3
2.2 Company Legal Structure......................................................................................................4
2.3 Management Team: Roles and Qualifications.......................................................................5
2.4 Employees: Roles and Qualifications....................................................................................5
2.5 Contractors: Roles and Qualifications...................................................................................6
3.0 Financials...................................................................................................................................7
3.1 Anticipated Operating Costs of the New Business................................................................7
3.2 Projected Investment Requirements for Launching New Business.......................................7
3.3 Projected Balance Sheet........................................................................................................0
3.4 Anticipated Revenue..............................................................................................................2
3.5 Pro-Forma Cash Flow Projection for the First Year of Business Operation.........................3
3.6 Payback Point in New Business............................................................................................3
3.7 Estimated Rate of Return on the Investments for Three Years Duration..............................5
4.0 Marketing...................................................................................................................................7
4.1 Summary of a marketing strategy..........................................................................................7
4.2 Marketing Mix.......................................................................................................................7
4.3 Competition...........................................................................................................................7
5.0 Operations..................................................................................................................................7
6.0 Legal and sundry issues.............................................................................................................7
7.0 Major Challenges.......................................................................................................................8
8.0 Conclusion.................................................................................................................................8
9.0 References..................................................................................................................................9

2BUSINESS MANAGEMENT
1.0 Introduction and brief description of the venture
1.1 Introduction
As opined by Coviello (2018), the transformation undergone by the modern business
world becomes apparent in the mushrooming of different kinds of business ventures within its
framework in the present times. Marion et al. (2015) are of the viewpoint that the because of the
different emerging new trends within the framework of the modern business world, the
entrepreneurs are establishing new business ventures on the basis of the opportunities presented
by the business markets. However, for the purpose of establishing an effective business venture
which will become profitable in the longer run there are various factors that the entrepreneurs
need to take into account. For example, one of the most important factors in this regard and on
which the profitability as well as the future business prospects of the newly established business
ventures greatly depend is the business opportunity on the basis of which the concerned venture
had been established (Yang and Gabrielsson 2017). In this regard, it needs to be said that the
entrepreneurs need to select the kind of business ideas which will be valid even in the future
times as well and also either low start-up costs or the high start-up costs for the establishment of
their venture. This paper will analyse the business venture idea, namely, Nerd Patrol and will
also recommend the starting strategy that it needs to follow, namely, high start-up costs or low
start-up costs.
1.2 Overview of the Business Venture Nerd Patrol
John Robbins, Mary Singh, and Nabil Quresh have decided to establish a new business
venture which will be called by the name of “Nerd Patrol” modelled after the name of the firm
“Geek Squad”. In this regard, it needs to be said that the above mentioned three individuals were
best friends in college however after the completion of their college they drifted apart. However,
at a reunion after years they decided to established the above-mentioned business venture. The
primary idea of the business venture is the fact that it will offer small business firms as well as
individuals a wide range of computing and networking services. Furthermore, the business
venture would help its customers with various services like hardware installation, hardware
repairs, debugging, software installation, network troubleshooting, software problems and others.
The primary reason for the formulation of this business idea is the fact that in the recent times it
had been seen that the demand for different kinds of hardware and software related services had
increased in an exponential manner. Furthermore, the popularity gained by the computers or the
laptops and their extensive usage by the different individuals ensures that there will be future
demand for the concerned business in the future times as well. More importantly, John and Mary
had been working as systems engineering in reputable firms and thereby have developed their
expertise level in the concerned departments and Nabil had been working in the sales
department. Thus, it is likely that after the establishment of the concerned venture, the service
aspect will be taken care of by John and Mary and the sales aspect will be taken care of Nabil.
However, because of the capital constraints, the group is not sure regarding the start-up policy
that they need to adopt, that is, should they start with John as a single employee of the firm and
when the business starts to grow Mary and Nabil would join or should they start in a full-fledged
manner.
1.3 Business Aspirations
The major business aspiration of the business venture under discussion here is to become
a leading service in the computer industry in the coming 10 years. In this regard, it needs to be

3BUSINESS MANAGEMENT
said that although the business venture will start initially start with only three individuals
however in the future times, the founders of the venture are hoping to not only enhance the
number of employees but at the same time their customer base as well. Furthermore, the business
venture under discussion here intends to attain this objective through extensive focus on the
aspect of quality and also on the aspect of customer experience so as to earn the satisfaction as
well as the loyalty of the customers.
2.0 Organization of the business and Key Players
2.1 Owners: Roles and Qualifications
Larimo, Le Nguyen and Ali (2016) have articulated the viewpoint that the owners or the
founders of the business firms or ventures not only play a pivotal role in the foundation of the
concerned ventures but also in the designing of the blueprints of the venture as well. In this
regard, it needs to be mentioned that the founding fathers of the firms are required to formulate
effective strategies and also design the manner in which the different departments of the
concerned venture would work together in a coordinated manner so as to offer the best quality
services to the end users or the customers (Fuad and Akbar 2018). As opined by Gerschewski
and Xiao (2015), the business or the organisational prospects of the business ventures greatly
depends on the synchronicity of the different departments of the ventures and also the manner in
which they are work together in harmony so as to attain the business objectives or goals that had
been outlined. More importantly, Kuratko et al. (2017) have noted that one of the most important
roles or responsibilities of the founders or the owners of the business firms or ventures is to
identify the kind of business opportunities or business ideas which are likely to offer them the
maximum amount of profitability or benefits. Another important job role of the owners or the
founders are required to formulate effective vision, mission as well as values that the concerned
venture would follow over the years within the framework of their organisation. This is
important because of the fact that the organisational culture which is being used by the different
business ventures depends greatly on these aspects of the concerned firms and this is perhaps one
of the major reasons why the founders or the owners need to focus on the formulation of
effective values, mission statement, values and other attributes of the firm (Sklaveniti 2017). In
addition to these, the owners also play an integral role in the formulation of the different kinds of
business objectives as well as goals that the concerned firms need to focus on and also try to
achieve within the stipulated time period so as to attain the desired level of growth. These in
short are some of the key roles as well as responsibilities of the founders or the owners of the
business ventures or firms.
In the particular context or the business venture Nerd Patrol it needs to be said that the
founders or the owners of the concerned venture are John Robbins, Mary Singh, and Nabil
Quresh. More importantly, in order to ensure the continued growth of the firm and also to stay
competitive within the business market, the owners would have to effective perform the roles as
well as the responsibilities which are required of them. For example, one of the most important
roles that the three owners of the venture would have to perform is the identification of an
effective business idea which will not only offer benefits to them in the present times but also in
the future times as well. John Robbins, Mary Singh, and Nabil Quresh have successfully
dispensed this role because of the fact that the business idea which had been selected by them is
in demand presently and the demand for the services offered by the concerned firm is likely to
increase in an exponential manner in the future times as well. Another important job role that the
three had performed in an effective as par of the roles and responsibility of the owners is that

4BUSINESS MANAGEMENT
they had formulated effective vision, mission statement and values for the firm. In this regard, it
needs to be said that the vision of the venture is to offer the best quality hardware and software
services to the customers and that too within a very affordable price range. On the other hand,
the mission statement of the concerned venture is to become one of the largest software and
hardware service providers in the nation of United States of America. In addition to these, the
values of the concerned venture which had been formulated by the owners are high quality, cost
effectiveness and others.
John Robbins, Mary Singh, and Nabil Quresh would also be required to formulate an
effective blueprint for the different departments of the venture that they have formulated and also
the manner in which the different departments of the concerned venture would be interconnected
with each other so as to enhance the performance of the firm. In this regard, it needs to be said
that presently the venture under discussion here would have only two departments, namely, the
sales department which would be taken care of Nabil and the service department, which would
be taken care of by Mary and John. Furthermore, the link between these two departments of the
concerned venture had been established by the owners by means of working in close proximity
with each other and also because of the friendship that they share with each other. In addition to
these, it is seen that the three owners of the concerned venture have been able to outline the
objectives or the goals of the venture in an effective manner by way of working in close
association with each other.
2.2 Company Legal Structure
Deligianni, Voudouris and Lioukas (2017) have articulated the viewpoint that the
corporate government policies which are being followed by a particular firm not only articulates
the legal stipulations and also the policies which will be followed by the concerned firm and also
the rules or the regulations which will guide the entire work of the concerned venture. In this
regard, it needs to be said that since the venture will be initially established with only three
employees so no significant HRM policies or processes have been designed however when the
venture expands in the future different kinds of HRM processes or policies would be followed
(Habermann and Schulte 2017). Some of the most important policies or processes related to this
aspect that the concerned venture intends to follow in the future are compensation, reward,
incentives, leave, zero tolerance, gender equality, diversity management and other similar HRM
policies. More importantly, all the important decisions of the concerned venture will be made by
reaching a mutual consensus among the three owners of the venture. For example, each of them
would have equal representation in the meetings which would be organised for making important
decisions and the decisions would only be taken after all the three individuals agree to the same.
In addition to this, special care would be taken so as to ensure that none of the three owners
dominates the other owners and thus all the decisions are unanimous. More importantly, in the
future time when the employee strength of the firm grows, the owners would also formulate
effective performance as well as talent management systems so as to support the business
objectives or goals that have been outlined for the venture. Lastly, the owners also intend to
establish a dispute or grievance resolution committee which will be headed by the three owners
themselves and all the grievances or the disputes that the future employees of the firm would
have will be resolved through this committee itself.
The business venture under discussion here would also have to follow in an ardent
manner the different stipulations as well as regulations of the national government of the United
States of America for conducting their business in an effective manner and also for the

5BUSINESS MANAGEMENT
management of the employees. In this regard, mention needs to be made of the different
corporate legislations of the USA like employment laws, equality law, consumer law and others.
More importantly, the concerned venture would also have to abide by the different
environmental legislations of the USA and thereby ensure that the amount of pollutants released
by them is within the permissible level. Lastly, the owners of the firm would also have to ensure
that the business activities are in synchronicity with the different quality as well as regulatory
parameters of the national government like workplace safety, standard quality of services
delivered to the customers and others. It is pertinent to note that the majority of the above-
mentioned policies or processes would come into play once the business venture expands their
business services as well as their employee strength.
2.3 Management Team: Roles and Qualifications
Vonortas and Kim (2015) are of the viewpoint that one of the most important job roles
that the management teams of the different business ventures perform is not only to manage the
work of the firm but also to ensure that the employees are being able to achieve or attain the
business objectives or goals outlined by the owners or the founders of the firm. This is important
from the perspective of the continued growth as well as the profitability of the business firms
because of the fact that if the work of the firm is not being performed in an effective manner by
the employees then the profitability and the continued growth of the firm will be adversely
affected (Kirkley 2016). More importantly, the management team is also required to take the
help of different kinds of processes or policies like talent management, reward management,
diversity management and others so as to ensure that the employees are being able to perform in
an effective manner (Chi-hsiang 2015). In addition to these, the management teams of the
different firms are also required to formulate various strategies and also make important
decisions of the firm in conjunction with the owners or the Board of Directors. Furthermore, the
members of the management team are required to have various educational qualification like
MBA degrees along with various skills like critical decision making, effective people
management skills, leadership skills and others.
In the particular context of the new business venture it needs to be said that at the initial
stages of the concerned venture the role of management of the venture will be undertake by John
Robbins, Mary Singh, and Nabil Quresh themselves. However, when the business as well as the
employee strength of the venture starts to expand in the future, the venture will formulate its own
management by promoting qualified as well as deserving individuals from the employee base
that they will have. Furthermore, the members of the management team would have to report the
employee performance as well as the progress made by the concerned venture on a regular basis
to the owners. In addition to these, they would also have to take effective care of the different
aspects of the firm like quality management, performance management, talent management and
others so as to ensure the continued growth of the firm and also to ensure that the employees are
being able to meet the objectives or the goals outlined by the owners of the firm. Lastly, the
management team would also be responsible for formulating different kinds of strategies and
making important decisions for the firm however they would have to take get the same approved
by the owners, namely, John Robbins, Mary Singh, and Nabil Quresh.
2.4 Employees: Roles and Qualifications
Broekhuizen, Bakker and Postma (2018) have articulated the viewpoint that the
employees of a business venture can be seen as the backbone of the firms on whom the entire
productivity or the performance of the firm greatly depends. This can be attributed to the fact

6BUSINESS MANAGEMENT
that the employees within the mould of the different firms are required to perform the majority of
the work of the firms and also it is on the basis of their performance that the profitability of the
firms greatly depends. More importantly, the productivity given by the employees also decides
whether the firms are going to attain or achieve the business objectives or goals that the owners
of the firm have formulated (Oviatt and McDougall 2018). In addition to these, it is seen that the
employees are required to have different kinds of qualifications as well as skills so that they can
perform the different jobs or tasks that they are required to perform. In this regard, it needs to be
said that the firms need to offer different kinds of training programs to the employees so that
they are being able to perform as per the expectation of the firms.
In the particular context of Nerd Patrol, it needs to be said that the business venture will
initially start with three individuals, namely, John Robbins, Mary Singh, and Nabil Quresh or
more appropriately the owners of the firm. Nabil will take care of the sales and the management
of the business whereas John and Mary will take care of the service section of the business. More
importantly, in order to save costs, the concerned firm will initially have one full-time employee,
namely, John and later on as the business starts to grow Mary and Nabil will join him. However,
in the future when the business of the concerned venture expands the venture will have to recruit
new employees so as to meet the demand for the services offered by them. The firm will
therefore need two sects of employees, namely, the employees who would be working in the
sales department under Nabil and the employees who would be working in the service
department under John and Mary. Furthermore, the employees working in the service department
would be required be have engineering degree and other qualification so that they can offer high
quality services to the customers. On the other hand, the employees working in the sales team
would be required to have management degrees in addition to other soft and hard skills so that
they can bring in the right number of customers within the fold of the firm. Moreover, in the
future, the firm also intends to have an HRM department, the employees of which would need to
have management degrees in human resource management and would be required to manage the
human resources of the concerned firm in an effective manner. In addition to these, the firm
would also offer different kinds of trainings to the employees so as to ensure that they have the
right kind of skill sets to complete their job roles and thereby help the firm in the achievement of
the goals or the objectives that it had outlined for itself.
2.5 Contractors: Roles and Qualifications
As opined by Au et al. (2016), the different kinds of contractors are increasingly playing
an integral role within the modern business world and also it is seen that the different business
firms are increasingly using them for the enhancement of the prospects of their business. In this
context, it needs to be said that the different contractors are the third parties who take projects
from the business firms and complete them on behalf of the firms for a nominal amount of
remuneration for the same (Habermann and Schulte 2017). The net result of this is that the
different business firms are increasingly taking the help of different kinds of qualified
contractors for the reduction of their workload and also to ensure that the work of the firm is
being completed in a timely as well as quality manner. However, at the same time it needs to be
said that there are various qualifications that the contractors are required to have. For example,
the contractors need to have the right kind of skill sets so that they can complete the projects that
they have taken from the firms in a quality as well as timely manner keeping into perspective the
reputation of the firms (Morris et al. 2018). Secondly, the firms also need to ensure that the
contractors share the same vision or mission with them so as to ensure that their reputation or

7BUSINESS MANAGEMENT
credibility in the business market is not being hampered (Marion et al. 2015). The firms also
need to ensure that the contractors are taking the help of ethical means for the completion of the
projects which have been allocated to them so as to avert any future disasters. In the particular
context of the business venture Nerd Patrol it needs to be said that in the initial phase the entire
work of the firm will be handled by John Robbins, Mary Singh, and Nabil Quresh however when
the workload increases they will take the help of different contractors for the completion of the
work keeping into perspective the above-mentioned factors.

8BUSINESS MANAGEMENT
3.0 Financials
3.1 Anticipated Operating Costs of the New Business
Operating Costs
Month
1
Month
2
Month
3
Month
4
Month
5 Total
Net income $15,000 $17,000
$18,00
0
$18,50
0
$19,00
0 $87,500
Depreciation $0 $0 $0 $0 $0 $0
Accounts receivable $30,000 $50,000 $0 $0 $0 $80,000
Inventories $60,000 $52,000 $0 $0 $0
$112,00
0
Accounts payable $40,000 $0 $0 $0 $0 $40,000
Amortization $5,000 $5,000 $5,000 $5,000 $5,000 $25,000
Other liabilities $25,000 $25,000
$25,00
0
$25,00
0
$25,00
0
$125,00
0
Other operating cash
flow items $0 $0 $0 $0 $0 $0
Total operating costs
$175,00
0
$149,00
0
$48,00
0
$48,50
0
$49,00
0
$469,50
0
3.2 Projected Investment Requirements for Launching New Business
Sources of Capital
Owners' Investment (name & %
ownership)
Your name & % ownership $50,000
Other Investor $25,000
Other Investor $25,000
Other Investor $0
Total Investment $100,000
Bank Loans

9BUSINESS MANAGEMENT
Bank 1 $50,000
Bank 2 $50,000
Bank 3 $0
Bank 4 $0
Total Bank Loans $100,000
Total Investment Funds $200,000
Other Loans
Source 1 $0
Source 2 $0
Total Other Loans
Start-up Expenses
6 Months
Timeframe
Buildings / Real Estate
Purchase $40,000
Construction $10,000
Remodeling $0
Other $500
Total Buildings and R / E $50,500
Leasehold Improvements
furnishing facilities $5,500
inventory purchases $5,500
meeting payroll $5,500
Advertising / Promo Expenses $5,500
Other Expenses $22,000

10BUSINESS MANAGEMENT
Capital Equipment List
Furniture $55,000
Equipment $1,500
Fixtures $1,500
Machinery $6,500
Other $2,500
Total Capital Equipment $67,000
Location and Admin Expenses
Rental $0
Utility Deposits $5,500
Legal and Accounting Fees $4,500
Prepaid Insurance $55,000
Pre-opening Salaries $5,500
Other $5,500
Total Location and Admin Expenses $76,000
Opening Inventory
furnishing facilities $2,560
inventory purchases $2,560
meeting payroll $2,560
Advertising / Promo Expenses $2,560
Other Expenses $2,560
Total Inventory $12,800
Advertising and Promotional
Expenses
Advertising $1,500
Signage $1,500

11BUSINESS MANAGEMENT
Printing $1,500
Travel & Entertainment $1,500
Other / Additional categories $0
Total Adv and Promo expenses $6,000
Payroll and payroll taxes
Expense 1 $25,000
Expense 2 $25,000
Total Payroll and payroll taxes $50,000

Running head: BUSINESS MANAGEMENT
3.3 Projected Balance Sheet
Assets
Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Cash and short-term investments $230,000
$484,5
20
$679,9
61
$775,1
57
$860,4
30
$956,58
0
Accounts receivable $0 $0 $0 $0 $3,000
Total inventory $0 $0 $0 $0 $6,000 $6,000
Prepaid expenses $0 $0 $0 $0 $0 $0
Deferred income tax $0 $0 $0 $0 $0 $0
Other current assets $0 $0 $0 $0 $0 $0
Total current assets $230,000
$484,5
20
$679,9
61
$775,1
57
$869,4
30
$962,58
0
Buildings $50,500
$50,50
0
$50,50
0
$50,50
0
$50,50
0 $50,500
Land $23,000
$23,00
0
$23,00
0
$23,00
0
$23,00
0 $23,000
Capital improvements $22,000
$22,00
0
$22,00
0
$22,00
0
$22,00
0 $22,000
Machinery and equipment $67,000
$67,00
0
$67,00
0
$67,00
0
$67,00
0 $67,000
Less: Accumulated depreciation
expense $0
$27,90
0
$56,35
8
$85,37
4
$114,9
48
$145,08
0
Net property/equipment $162,500
$134,6
00
$106,1
42
$77,12
6
$47,55
2 $17,420
Goodwill $11,000
$11,00
0
$11,00
0
$11,00
0
$11,00
0 $11,000
Deferred income tax $12,000
$12,00
0
$12,00
0
$12,00
0
$12,00
0 $12,000
Long-term investments $14,000
$14,00
0
$14,00
0
$14,00
0
$14,00
0 $14,000
Deposits $10,000
$10,00
0
$10,00
0
$10,00
0
$10,00
0 $10,000
Other long-term assets $9,000 $9,000 $9,000 $9,000 $9,000 $9,000
Total assets $448,500
$675,1
20
$842,1
03
$908,2
83
$972,9
82
$1,036,0
00

1BUSINESS MANAGEMENT
Liabilities
Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Accounts payable $65,000
$65,00
0
$65,00
0
$65,00
0
$65,00
0 $65,000
Accrued expenses $34,000
$34,00
0
$34,00
0
$34,00
0
$34,00
0 $34,000
Notes payable/short-term debt $21,000
$21,00
0
$21,00
0
$21,00
0
$21,00
0 $21,000
Capital leases $14,000
$14,00
0
$14,00
0
$14,00
0
$14,00
0 $14,000
Other current liabilities $12,000
$12,00
0
$12,00
0
$12,00
0
$12,00
0 $12,000
Total current liabilities $146,000
$146,0
00
$146,0
00
$146,0
00
$146,0
00
$146,00
0
Long-term debt from loan payment
calculator $100,000
$83,62
0
$65,60
3
$45,78
3
$23,98
2 $0
Other long-term debt $14,000
$17,00
0
$18,00
0
$21,00
0
$24,00
0 $27,000
Total debt $260,000
$246,6
20
$229,6
03
$212,7
83
$193,9
82
$173,00
0
Other liabilities $18,000
$18,00
0
$18,00
0
$18,00
0
$18,00
0 $18,000
Total liabilities $264,000
$247,6
20
$229,6
03
$209,7
83
$187,9
82
$164,00
0
Equi
ty
Initial
balance Year 1 Year 2 Year 3 Year 4 Year 5
Owner's equity (common) $50,000
$50,00
0
$50,00
0
$50,00
0
$50,00
0 $50,000
Paid-in capital $27,000
$27,00
0
$27,00
0
$27,00
0
$27,00
0 $27,000
Preferred equity $31,000
$31,00
0
$31,00
0
$31,00
0
$31,00
0 $31,000

2BUSINESS MANAGEMENT
Retained earnings $28,000 $0 $0 $0 $0 $0
Total equity $136,000
$108,0
00
$108,0
00
$108,0
00
$108,0
00
$108,00
0
Total liabilities and equity $400,000
$355,6
20
$337,6
03
$317,7
83
$295,9
82
$272,00
0
3.4 Anticipated Revenue
Year 1 Year 2 Year 3 Year 4 Year 5
Gross revenue
$100,00
0
$102,00
0
$106,08
0
$112,44
5
$121,44
0
Cost of goods sold $2,000 $2,040 $2,122 $2,249 $2,429
Gross margin $98,000 $99,960
$103,95
8
$110,19
6
$119,01
2
Other revenue [source] $0 $0 $0 $0 $0
Interest income $0 $0 $0 $0 $0
Total revenue $98,000 $99,960
$103,95
8
$110,19
6
$119,01
2
Operating expenses
Sales and marketing $6,000 $6,120 $6,365 $6,747 $7,286
Payroll and payroll taxes $50,000 $51,000 $53,040 $56,222 $60,720
Depreciation $27,900 $28,458 $29,016 $29,574 $30,132
Maintenance, repair, and
overhaul $0 $0 $0 $0 $0
Total operating expenses $83,900 $85,578 $88,421 $92,543 $98,139
Operating income $14,100 $14,382 $15,538 $17,653 $20,873
Interest expense on long-term
debt $8,863 $7,225 $5,423 $3,441 $1,261

3BUSINESS MANAGEMENT
Operating income before other
items $5,237 $7,157 $10,114 $14,212 $19,612
Loss (gain) on sale of assets $0 $0 $0 $0 $0
Other unusual expenses
(income) $0 $0 $0 $0 $0
Earnings before taxes $5,237 $7,157 $10,114 $14,212 $19,612
Taxes on income 0 $1,571 $2,147 $3,034 $4,263 $5,884
Net income (loss) $3,666 $5,010 $7,080 $9,948 $13,728
3.5 Pro-Forma Cash Flow Projection for the First Year of Business Operation
REVENUES Month
1
Month
2
Month
3
Month
4
Month
5.
Capital expenditures
$10,00
0
$30,00
0
$50,00
0
$55,00
0
$60,00
0
Acquisition of business
$15,00
0
$15,00
0
$15,00
0
$15,00
0
$15,00
0
Sale of fixed assets
$10,00
0
$10,00
0
$10,00
0
$10,00
0
$10,00
0
Other investing cash flow
items
$20,00
0 $0 $0 $0 $0
TOTAL REV $55,00
0
$55,00
0
$75,00
0
$80,00
0
$85,00
0
COSTS
Rent 2000 2500 3000 3500 4000
Payroll 2500 2800 3100 3400 3700
Materials 4500 5000 5500 6000 6500
Others 1600 2000 2400 2800 3200
TOTAL COST 10600 12300 14000 15700 17400
NETCASH FLOW $44,40
0
$42,70
0
$61,00
0
$64,30
0
$67,60
0

4BUSINESS MANAGEMENT
3.6 Payback Point in New Business
Payback Period Analysis
Undiscounted Payback
Period Analysis
Projected
Year 1 Year 2 Year 3
Year
4 Year 5
Undiscounted Net Cash
Flow
$
(200,00
0)
$
44,400
$
42,700
$
61,000
$
64,30
0
$
7,600
Cumulative Net Cash Flow
(155,6
00)
(112,9
00)
(51,9
00)
12,
400
20,
000
Positive Cash Flow?
FALS
E
FALS
E
FALS
E
TRU
E TRUE
Undiscounted Payback
Period 4
First Year
Positive
Partial Year Payback Period 3.81 Actual Number of Years
Partial Year Payback Period
(One Cell) 3.81 Using arrays and index

5BUSINESS MANAGEMENT
3.7 Estimated Rate of Return on the Investments for Three Years Duration
Discount
Rate 3%
Intervention Year Total
Pre-
implementat
ion 1 2 3
(All
Years)
Investment in New Venture
Initial Investment Costs
$
200,000.00
$
3,000.0
0
$
3,500.0
0
$
4,000.00 10,500
Operating Costs
2,
500.00
2,
700.00
2
,900.00 8,100
Total Annual
Investment Costs
2
00,000.00
5,
500.00
6,
200.00
6
,900.00 18,600
x Present Value
Factors 1.00 2.00 3.00 4.00 9
Total Discounted
Annual Investment Costs
$
200,000.00
$
11,000.
00
$
18,600.
00
$
27,600.00
$
257,200.
00
Savings (Increases) from
New Venture
Estimated Utilization
Increases
$
3,100.0
0
$
3,300.0
0
$
3,500.00
$
9,900.00
Estimated Utilization
Savings
4,
100.00
4,
200.00
4
,300.00
12,6
00.00
Total Annual Savings
(Increases)
7,
200.00
7,
500.00
7
,800.00
$
22,500.0
0
x Present Value
Factors 20.00 22.00 26.00 68.00
Total Discounted
Annual Savings (Increases)
$
144,000
.00
$
165,000
.00
$
202,800.0
0
$
511,800.
00
Return on Investment

6BUSINESS MANAGEMENT
Summary
Undiscounted Annual Net
Cash Flows
$
(200,000)
$
1,700
$
1,300
$
900
$
(196,100
)
Cumulative ROI 0.68 1.35 1.99 1.99

7BUSINESS MANAGEMENT
4.0 Marketing
4.1 Summary of a marketing strategy
The business venture will be taking the help of digital marketing strategies for the
promotion as well as marketing of the hardware and software related services offered by it.
For example, the firm will in specific take the help of the social media marketing and content
marketing strategies for the promotion or the marketing of the services offered by it. These
two strategies of marketing have been selected because of the fact that through the usage of
these two strategies the firm would not only be able to reach out to a large number of people
but it would also be a cost effective one for the firm as well. More importantly, since the firm
is going to offer hardware and software services to the customers so it would be better if the
firm takes the help of the concerned strategies.
4.2 Marketing Mix
Product The business venture intends to offer various services like hardware
installation, hardware repairs, debugging, software installation, network
troubleshooting, software problems and others
Price The venture would be taking the help of the cost leadership strategy so as to
offer the best quality services to the customers and that too at a very afford
price. This will enable the firm to enhance its customer base and also earn a
higher amount of profitability and thereby gain competitive advantage.
Promotio
n
Digital marketing strategies, namely, content marketing and social media
marketing.
Place The firm would initially be established in the city of New York however after
gaining success in the concerned city it will expand to the other cities of the
nation as well.
4.3 Competition
The firm is likely to face a high level of competition in the city of New York because
of the fact that there are a large number of firms in the concerned city which are offering the
same services and they have already monopolised the business market of the concerned area.
More importantly, it is seen that the firms like Microsoft, Apple and other reputable firms
themselves offer these kinds of services to the customers and thus it is likely that the
concerned firm would find it very difficult to sustain itself within the concerned business
market.
5.0 Operations
The business firm will be initially established in the city of New York and the
employees will be required to work for 6 hours on a daily basis. Furthermore, the individuals
willing to avail the services offered by the concerned firm can contact them over the website
or can even call the representatives of the firm over their phone number. In addition to this,
the services will be delivered to the customers after checking or diagnosing their system in an
effective manner and thereby recommending them the most appropriate solutions. However,
it can be said that at the initial phase of its business, the venture is likely to face some
operations issues because of the presence of only three employees and this is likely to make
the delivery of service to the customers a very difficult job for the firm.
6.0 Legal and sundry issues
The owners of the firm for the formation of the business and also for the designing of
its corporate governance policies will take into account the different corporate laws of USA.

8BUSINESS MANAGEMENT
More importantly, special focus will be given to the different employment laws, commercial
laws, intellectual property and others. Furthermore, the firm would also take into account the
aspect of consumer law, tax regulation, workplace safety, quality regulations and others so as
to comply with the business regulations of USA. Moreover, for the effective handling of
different kinds of legal disputes the firm will take the help of outside legal services since this
will not save a valuable amount of its financial resources but also because of the fact that by
effectively following all the business regulations of the nation it is likely that the firm will
face very few legal disputes.
7.0 Major Challenges
Some of the most important challenges that the business venture is likely to face are
listed below-
 Fierce Competition: The electronic industry of US is a highly competitive one with
the presence of some of major players of the concerned industry like Microsoft, Apple
and others. Thus, it is likely that this challenge will significantly affect the prospects
of the concerned venture.
 Start-up Capital: John Robbins, Mary Singh, and Nabil Quresh does not have the
required amount of capital to start their venture on a full-fledged manner and thus
they have decided to start with the low start-up strategy. However, because of the
fierce competition which exists within the concerned industry this is likely to act as a
major challenge for the firm.
 Lack of past business experience: It is pertinent to note that although John Robbins,
Mary Singh, and Nabil Quresh have experience in working for different firms yet at
the same time it is seen that they lack experience in handling their own business.
Thus, it can be said that their lack of experience is another major challenge that the
firm is likely to face.
8.0 Conclusion
To conclude, the process of establishing a successful business venture is not an easy
act and there are various factors that the founders or the entrepreneurs need to take into
account for the same. For example, they need to firstly analyse the business market
thoroughly so as to select the right kind of business opportunity on the basis of which they
can establish their business venture. Furthermore, the owners also need to formulate the
blueprint of the entire firm like the manner in which the management team, the work of the
employees and other aspects of the firm so that the firm is being able to attain the objectives
or goals outlined by the owners. In addition to this, for the founders with low capital it is
always better start with the process of low start-up cost and with lesser number of employees
and when the business of the firm expands it can hire new employees and also acquire new
resources on the basis of their requirement. These aspects of the process of establishing new
business ventures become apparent from the above analysis of the establishment of Nerd
Patrol by John Robbins, Mary Singh, and Nabil Quresh.

9BUSINESS MANAGEMENT
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10BUSINESS MANAGEMENT
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