Business Plan for IA Electronics

Read the business plan for IA Electronics, a partnership providing repairing services for high end electronics in Chatswood, Australia. Includes market research, target market, finances, and sustainability plan.

BUSINESS PLAN
[INSERT YOUR BUSINESS LOGO]
[Your Name]
[Your Title]
[Business Name]
[Main Business Address]
ABN: [ABN]
ACN: [ACN]
[IA Electronics]

Business Plan
Prepared: [Date prepared]

[Business Name] Business Plan [YEAR]
Contents
Business Plan template 1
Using this template 2
Business Plan Summary 5
The Business 5
The Market 5
The Future 5
The Finances 6
The Business 7
Business details 7
Registration details 7
Business premises 7
Organisation chart 7
Management & ownership 8
Key personnel 8
Products/services 10
Innovation 10
Insurance 10
Risk management 11
Legal considerations 11
Operations 11
Sustainability plan 13
The Market 14
Market research 14
Market targets 14
Environmental/industry analysis 14
Your customers 14
S.W.O.T. analysis 15
Your competitors 16
Advertising & sales 17
The Future 19
Vision statement 19
Mission statement 19
Goals/objectives 19
Action plan 19
MS Project Plan 20
The Finances 21
Key objectives & financial review 21
Assumptions 21
Start-up costs for [YEAR] 22
Balance sheet forecast 23
Profit and loss forecast24
Expected cash flow 25
Break-even analysis 26
Recommendations 26
References and Appendices 27
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[Business Name] Business Plan [YEAR]
Business Plan Summary
[Please complete this page last]
[Your business summary should be no longer than a page and should focus on why your
business is going to be successful. Your answers below should briefly summarise your
more detailed answers provided throughout the body of this plan.]
The Business
Business name: IA Electronic
Business structure: Partnership
ABN:[Registered Australian business number.]
ACN: [Registered Australian company number, if applicable.]
Business location: Chatswood, Australia
Date established: 1.12.2018
Business owner(s):
Harpreet Singh (s4584295)
 Pasang Gurung (s4586773)
 Taku Hiraoka (s4576109)
 Rishi Pal (s4580213)
 Shivam Kamboj (s4584304)
 Amardeep Sing (s4579971)
 Sumit Pal Singh (s4580074)
Relevant owner experience: All the partners of this particular business are freshers or
new entrepreneur
Products/services: The company will provide repairing services for the high end
electronics products
The Market
Target market:
The products will be sold out to the local people in Chatswood, Australia. The people will
prefer this service because repairing of the high end electronic products is less costly
than replacement (Hopp et al., 2018).
Marketing strategy:
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[Business Name] Business Plan [YEAR]
The company will follow the AIDA model for entering in the market in a better way. At the
same time, the company will focus on different types of promotional activities like,
television advertisement, social media advertisement, flyers and many others.
The Future
Vision statement:
[The vision statement briefly outlines your future plan for the business. It should state
clearly what your overall goals for the business are.]
Goals/objectives:
[What are your short & long term goals? What activities will you undertake to meet
them?]
The Finances
At the initial year the amount of profit willbe $171000, which will increase gradually. In
order tp start the business, the company will require total fund of $56140 and for
equipment it will require total $126400. The company will avail long term bank loan and
some portion of the funds will be provided by the owners or partners.
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[Business Name] Business Plan [YEAR]
The Business
Business details
Products / services: Repairing televisions, laptops, mobile phones,
computers, camera, tablets as well as home appliances along with
providing services of free estimates on repairing jobs
Registration details
Business name: IA Electronics Stores
Trading name (s): IA Electronics
Date registered: 26th September 2018
Location(s) registered: Chatswood, Australia
Business structure: Sole proprietorship business
ABN: 15 203 931 268
ACN: Not applicable
GST: Registered for GST on 1st October 2018
Domain names: www.iaelectronic.services.com.au
Licenses & permits: Business license, Reseller’s license and Mechanic’s
license
Business premises
Business location: The location chosen for the business is Chatswood
and the space chosen for starting the business is about 1600 square feet.
There will be two different outlets in the area of 800 square feet on each
outlet. It is going to be a retail business and will be extremely beneficial
for the company, as the retail businesses offering similar services to
customers is almost unavailable, thereby showing less competition for IA
Electronics (Benson and Magee, 2018). There will also be a high profit
outcome in the company, as the number of competitors in the area is
extremely low.
Buy/lease: Both the spaces of IA Electronics will be taken on lease. The
arrangements of lease have been made with the help of two different
brokers, who were contacted for the requirements of space for opening
the outlets of IA Electronics. Both the lease contracts have been signed for
a term of 3 years.
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[Business Name] Business Plan [YEAR]
Organisation chart
The organization chart of the business IA Electronics has been provided
below -
(Source: Created by the learner)
Management & ownership
Name of owners: Mr. A. Citizen
Details of management & ownership: The owner of the business
himself will be the person responsible for running the business. There will
be no other Chief Executive Officer hired in the business until it starts
expanding its operations (Jansen, 2017). The owner himself will be playing
the role of the general manager of the company. As a result, there are no
other partners in the business.
Experience: The owner, Mr. Citizen, has been working at GPC Electronics
as a senior manager of the operations department for the past five years
and then decided to open his own business of electronics products and
services (Ottman, 2017).
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[Business Name] Business Plan [YEAR]
Required staff
In the current scenario, no more staff is required in the business.
Recruitment options
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[Business Name] Business Plan [YEAR]
In case of further requirements of staff, advertisements will be provided
on local newspapers. Online advertising will also be done about the staff
requirements (McKenzie, 2017).
Training programs
Before the commencement of the business, a training session will be held
for all the employees. The owner of the business himself will be
conducting the strategy.
Skill retention strategies
Lucrative salaries and additional incentives on achieving targets
Products / Services
Product/
Service
Description Price
Repairing
televisions,
laptops, mobile
phones,
computers,
camera, tablets
as well as home
appliances
Providing exclusive repairing
services at the lowest price
Depending on
the damage of
the products
Services of free
estimates on
repairing jobs
Stating estimates to customers on
the cost needed to repair the
product
Free
Market position: Budget products and services, much better services
than competitors
Unique selling position: Lowest cost, highest quality
Anticipated demand: High demand, on an average of 2 services
availed by each customer
Pricing strategy: Penetration pricing
Value to customer: Necessity service
Growth potential: Cost and quality of services will be driving at least
15% growth every year
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[Business Name] Business Plan [YEAR]
Innovation
Research & development (R&D)/innovation activities: Extensive
market research and development of new products for repairing electronic
goods
Intellectual property strategy: The innovations and confidential
agreements will be protected on computers through anti-virus and a
strong IT security system.
Insurance
Workers compensation: $10000 insurance for common employees
while $20000 for managers
Public liability insurance: No public liability insurance
Professional indemnity: No professional indemnity insurance as well
Product liability: No insurance for product liability
Business assets:
Business revenue: Insurance of business has not been done yet
Risk management
Risk Likelihood Impact Strategy
Customer complaints -
low satisfaction and
low sales
High Low
sales
and
profit
Keeping good service,
listening to customers,
improving services
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[Business Name] Business Plan [YEAR]
Risk Likelihood Impact Strategy
Workplace unsafety -
employee injury and
fire break out
Very low Destruc
tion of
the
workpla
ce
Checking workplace
safety, checking
safety equipments
and documents,
checking evacuation
and extinguisher
Legal considerations
The business laws and consumer laws will have considerable impact on
the business’ operations.
Operations
 Production process
 Finding out issues
 Providing estimated costs
 Deriving repair parts
 Fixing them
 Testing product after fixation
Suppliers
 ABC Repairs - mobile repair parts
 Electrolux services - TV and home appliances repair parts
 Ninety nine stores - Computer and laptop parts
There will be separate contracts for each supplier and the business.
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[Business Name] Business Plan [YEAR]
Technology (Software): Business website for customers developed by a
website developing company at $100
Trading hours: Monday to Saturday 9 am to 9 pm
Communication channels: Telephones, E-mails, websites
Payment types accepted: Debit and credit card, mobile banking, cash
and mobile wallets
Credit policy: No credit given
Warranties & refunds: No warranties or refunds
Quality control: Thorough assessment of production procedure and
checking of repaired products before delivering it to customers.
Memberships & affiliations: Not available
Sustainability plan
Environmental/resource impacts
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[Business Name] Business Plan [YEAR]
Generation of huge e-wastes from the disposal of the damaged parts
repaired into land areas and soil.
Community impact & engagement
The extreme impact on the environment and community can be reduced
through community engagement in different waste management practices
(Borland et al., 2018).
Risks/constraints
There are risks of environmental pollution and human health degradation.
Strategies
Development and implementation of effective e-waste management
program through community engagement.
Action plan
Key milestones Target Target date
Reducing waste
generation
50% reduction 30.6.2018
Reducing waste
disposal
60% reduction 31.12.2018
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[Business Name] Business Plan [YEAR]
The Market
Market Research
This new venture of IA Electronic will be closely associated with the electronics industry
in Chatswood, Australia. Therefore, in order to understand the viability of the business
market research should be done on the electronics market in Chatswood. For this
business, market research has been performed through online survey. The primary
objective of the survey was to identify how far repairing services are needed by the
people in Chatswood.
The findings of the survey indicate that the people in Chatswood need repairing services
for their electronics products. The survey was done with the local people in Chatswood.
In the survey, it has been identified that many people think that repairing is better than
replacement because replacement cost is much higher than repairing. At the same time,
the survey participants have also mentioned that if they replace the electronics devices
electronics wastage increases, which is another head ache for them. On the other hand,
the survey participants have also mentioned they will prefer if they get electronics
repairing services at their home because currently, most of the time they need to visit at
the repairing centre, which is time consuming. This is more applicable to the large
appliances.
Hence, it can be stated that the market demand for repairing services at home is much
high in Chatswood.
Market Targets
IA Electronic has the target to expand its business throughout Chatswood. As per the
estimation of the key people of this new venture, the business will achieve the sales
target of $240000 in the first year of business. At the same time, the new venture will
also try to enhance the sales level by 10% to 15% in every year. It means, on average,
the company has the target to provide repairing services of minimum 50000 devices in
every year, which will increase in every year.
Environmental / industry analysis
It has been mentioned before in the business plan that the business IA Electronic will be
established at Chatswood, Australia, where the population is experiencing growth in
every year. The current state of the industry shows that there is no such big employer
within the industry; however, there are several small and medium sized electronics
products repairing centre in Chatswood, Australia, which have increased the competition
level in the market (Yang, 2018). In this context, it is important to mention that the
electronics repairing industry in Australia is earning $17.6 billion in each year (Van der
Eng, 2017). Hence, it can be stated that the industry is stable and the market demand
indicates high growth opportunity within the industry. Moreover, there are no such
seasonal variations within this industry because the electronics devices are used by the
people throughout the year.
If the focus is made on the size of the industry or market, it will be identified that the
market is of standard size; there are sufficient growth opportunities in the market (Van
der Eng, 2018). On the other hand, considering the recent market trend in Australia, it
can be stated that more than 60% of the people prefer repairing than replacement
especially in the context of large electronic appliances, which cost high in the case of
replacement (Langlois et al., 2018).
Your customers
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[Business Name] Business Plan [YEAR]
The target customers of IA Electronic are the local people in Chatswood, Australia. The
company will focus on the customers above 30 years who are working and do not have
the time to visit at the repairing shops and do not prefer to change devices repeatedly.
In order to reach to the right people, the company will segment the market based on the
demographic factors. The company will consider the age group and occupation of the
people. The company will focus on the AIDA model to convince the customers for
repairing services. At the same time, the company will require focusing on the
promotional activities to attract the customers in a better way (Boyd et al., 2017).
The key customers of the company will be the people in Chatswood, Australia, who are
service holders and business persons and belong from the age group of more than 30
years. There will be no variations in respect to the gender of the people.
In order to build better relationship with the customers the company will maintain
communication through SMS and emails. The company will focus on the quality of
services and behaviour of the service persons to satisfy the customers in a better way, so
that they come back for repeat service. The company will follow the code of ethics and
will maintain transparency in the business.
SWOT analysis
Strengths
 The company will have high quality
service provider
 The company will have strong
customer base in the local market of
Chatswood, Australia.
 The company will invest in brand
promotion
Weaknesses
 The financial strength will be limited
 Availability of service provider
employee will be limited
Opportunities
 High growth opportunity in the local
market of Chatswood, Australia
 High growth opportunity because of
the growth of electronics industry
(Hopp et al., 2018)
Threats
 The level of competition is very high
(Watson and McGowan, 2018)
Your competitors
Competit
ors
Establish
ed date
Size Mark
et
share
Value to
custom
ers
Strengt
hs
Weaknes
ses
David 1939 4
peop
Family
busine
No
review
-Old
customer
Less
updates on
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[Business Name] Business Plan [YEAR]
Leisk le ss till now s are
referring
to new
customer
.
-
Nationall
y
Certified
their
website.
Not a
proper
marketing
Grand
Electronics
1954 5
peop
le
Sole
trader
3
reviews
with 5
stars
-
Nationall
y
Certified
-Good
connectio
n with
customer
s
Not a
proper
update on
the sites
Less
marketing
Harrisson
TVs and
Video
1954 4-5
Peop
le
Sole
trader
No
review
till now
-Member
of TESA
(Televisio
n and
Electroni
c
Services
Associati
on)
Not a
proper
website
DLE
Authorised
Service
Centre
1957 6-7
Peop
le
Sole
trader
linked
with
5/5 rate
with a
good
review
-Good
connectio
n with
customer
Less
marketing
Micro bell
Electronic
sales,
service
and repair
1989 4
peop
le
Sole
trader
No
review
till now
-Helps in
insurance
claims
-Good
connectio
n with
member
Not a
proper
marketing
Considering the above table, it can be stated that the competitors of IA Electronic are of
small and medium sized organizations. However, as the competitors are present in the
local market for a long time, the level of competition will be high.
Advertising and sales
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[Business Name] Business Plan [YEAR]
Planned promotion / advertising
type
Expected business improvement
Flyers This particular tool will provide
enough scope to describe the
business to the customers.
Advertisement on social media and
on television
This will help to reach to the
maximum number of customers
within limited time.
Newspaper advertisement This will also help in enhancing the
customer base
Radio advertisement Radio advertisement will help to get
attention of the people during
travelling
Web banners on local information
sites
This will help to get the attention of
local people.
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[Business Name] Business Plan [YEAR]
Sales & marketing objectives
The sales team of the business will include four members – 1 manager and 3 sales
executives. In order to sell the services they will focus on online and telephonic booking
technique through which the customers will be able to book the service at any time. This
will be one type of direct selling strategy. The company will aim to enhance the sales
percentage by 10% to 15% in each year.
The USP of the company will be the higher quality home services at cheapest price.
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[Business Name] Business Plan [YEAR]
The Future
Vision Statement
To provide extensive and exclusive solutions to customers at the lowest possible rates
for repairing damaged electronic devices and reducing e-wastes.
Mission Statement
The mission at IA Electronics is reducing e-wastes through repairing damaged electronic
devices, encouraging customers in repairing rather than throwing away electronics
devices as well as supporting the regulations for e-waste management through working
in an environment friendly manner.
Goals / Objectives
There are both short-term and long-term objectives of the company IA Electronics. The
following are the short-term goals of the business, which are achievable within the next
six months -
 Deriving information about the most cheapest suppliers available in
the market and building up relationships with at least 8 of them
 Developing an effective marketing plan with which customers can
be attracted to the business
 Establishing good relationships with existing customers
 Taking effective measures to reduce the wastes in the company
 Targeting customers with higher end electronic products where
repairing is the only cost effective option rather than disposing
On the other hand, the long-term goals of the business IA Electronics are as follows -
 Entering into contracts with 10 cheapest and most efficient
suppliers in the marketplace
 Reaching a sales level of $171000 within 2018 and achieving an
increase in sales by 15 to 18% each year
 Achieving a minimum of 300 regular customers by the end of the
next year
 Reducing an average of 50 tons of e-wastes through repairing and
recycling electronic devices each year
In order to achieve the above goals, the following activities will be adopted -
 A proper organizational structure will be developed
 Each individual in the business will be allocated individual
responsibilities
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[Business Name] Business Plan [YEAR]
 An effective market research will be conducted
 Proper communication and waste management skills and
techniques will be adopted
Action plan
Milestone Date of
expected
completion
Person responsible
Developing contracts with at least 8
suppliers providing cheapest repair
parts for electronic devices
31/12/2018 The Sales and Operations
Manager
Achieving Sales of $171000 31/12/2019 The Office Manager, Sales
Manager, the Salesperson and
the Events Coordinator
Creating approximately 300 regular
customers
31/12/2019 The Marketing Manager
Reducing approximately 50 tone of e
waste by repairing or recycling the
electronic devices every year
30/6/2019 The Operations Manager
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[Business Name] Business Plan [YEAR]
MS Project Plan
Use your action plan to prepared a detailed project plan
Identify specific tasks, which can be completed parallel to each other? Which tasks must
be completed sequentially? What resources will (people, material, money etc) you need,
who is responsible (Watson and McGowan, 2018).
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[Business Name] Business Plan [YEAR]
The Finances
Key objective and financial overview
 The primary financial objective of the business is to achieve sales of $171000 in the
first year
 The secondary objective is to increase the sales minimum by 10% to 15% in each
year.
In the initial stage the sales will be $240000, which will increase to $260000 and at the
end of the 3rd year the sales will be $300000.
Assumptions
 The demand in the market will increase
 The cost level of the company will be under control (Rauter et al., 2017)
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Recommendations
After reviewing the overall plan for the business, it can be stated that IA Electronic will be
a profitable venture. The company will be able to deal with the competitive environment
and at the same time, it will be able to generate enough profit and cash from this
business (Tukker and Tischner, 2017). Hence, it can be stated that the owners of IA
Electronic should carry on the venture for a long-period.
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References, Bibliography and Appendices
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Benson, C.L. and Magee, C.L., 2018. Data-Driven Investment Decision-Making: Applying
Moore's Law and S-Curves to Business Strategies. arXiv preprint arXiv:1805.06339.
Borland, H., Lindgreen, A., Ambrosini, V. and Vanhamme, J., 2018. Creating theory for
business strategies for sustainability and climate change: Transitional and
transformational strategies and ecocentric dynamic capabilities. In Business Strategies
for Sustainability (pp. 65-80). Routledge.
Boyd, B., Henning, N., Reyna, E., Wang, D., Welch, M. and Hoffman, A.J., 2017. Hybrid
organizations: New business models for environmental leadership. Routledge.
Hopp, C., Greene, F.J., Honig, B., Karlsson, T. and Samuelsson, M., 2018. Revisiting the
influence of institutional forces on the written business plan: a replication
study. Management Review Quarterly, pp.1-38.
Jansen, W., 2017. New business models for the knowledge economy. Routledge.
Langlois, R., Pugel, T., Haklisch, C.S., Nelson, R.R. and Egelhoff, W., 2018. Micro-
Electronics: An Industry in Transition (Vol. 27). Routledge.
McKenzie, D., 2017. Identifying and spurring high-growth entrepreneurship: Experimental
evidence from a business plan competition. American Economic Review, 107(8), pp.2278-
2307.
Ottman, J., 2017. The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Routledge.
Rauter, R., Jonker, J. and Baumgartner, R.J., 2017. Going one's own way: drivers in
developing business models for sustainability. Journal of Cleaner Production, 140, pp.144-
154.
Tukker, A. and Tischner, U. 2017. New business for old Europe: product-service
development, competitiveness and sustainability. Routledge.
Van der Eng, P., 2017. European Integration and Australian Manufacturing Industry: The
Case of Philips Electronics, 1960s–1970s. Australian Economic History Review, 57(2),
pp.217-238.
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