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Overview Of the company Bino Computers is a retail shop that is intended to serve users of computers. The shop is situated in a place that is largely accessible by all people. We provide great deals of computer hardware’s, computer services, computer systems that are customized, networking services and computer renting outlets. We believe that this is the right time to undertake this initiative. We have assessed the area and this led us to conclude that we need a more stocked and comprehensive outlet for sale of computers and its services. We will be trying to give services to the local people which are not available amongst our competitors. Mission To provide high qualitycomputer goods, networkingsolutions, professional and reliable support, and unrivalled service to our customers while maintaining ethical business practices. Vision We aim to be the leading seller of computer parts and satisfy our customer needs. Core values As a business, we are committed to ensure that our clients achieve the highest form of satisfaction exemplary service, providing international items and providing a great working
atmosphere. Our business is to make sure that the work environment is one that is respectful to our clients and society at large. Part2 Objectives We have lined up several objectives as follows: To set up a company that is service oriented and whose main aim is to go beyond the customers’ expectations. To achieve increase in sales to $250000 by close of 2nd year and to make sure this increases gradually over the 3rdyear To grow the customer numbers attended to by at least 18% every year through excellent service and also by professionalism.. Achieve a 90% consumer rate by end of the first year. Be a grown business entity by close of the year. Products and Services In our present generation, a lot of people are using the computer whether at the work place or at home (Hughes and Mustafa, 2017). It is therefore very critical for them to have a place where they can purchase and also repair these computers. Bino computers will ensure that the needs of this people are taken care of by offering a great range of products and services in a professional and friendly manner. Some of the products and services include;
Ready made Computers- We will provide both used and new computer systems at fair and affordable prices. Customised Computers– A customer can walk in and order a customized computer system according to his preference which we will gladly provide. Repairs and service–We undertake high quality computer diagnosis and repairs within a short period of time. Upgrades- We will ensure that we have the latest software updates in order to provide our customers with the latest technology. Networking– Networking solutions and wireless networking will also be available for both office and home. Computer Renting outlets– We will set up computer outlets that will enable one to undertake several things such as email checking or internet browsing at a fairly reasonable fee. This will benefit the local people and also tourist who may visit to a big extent. Market Analysis Summary Bino Computerswill focus on individual consumers, micro businesses, and home officesfor employees less than 10 in number. Market research has shown that customers travel long distance in order to fulfill their technology needs. Thus, if a computer store is constructed nearby, it will go a long way in assisting the local people in undertaking their computer needs without much difficulty thus saving time and money
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spent in the long run. The following data was retrieved from the official country and city website. The total population of the city was 148345 in 2012. There is an annual increase of about 2.05% and thus the estimation figures for 2019 will be at 157867. By 2018, 51.5% of the homes owned computers while a further 42% had access to internet services. In 2012, small businesses were ranging at about 77% of all the businesses.in relation to the growth rate it is assumed that there will be over 3000 small businesses in 2019. There were 1,243,313 visitors in the country in 2016. 1,033,615 of them visit our city in particular. In 2017, visitor arrivals are expected to rise by 2%. The figures spell out a rather conducive environment in which Bino computers can operate and succeed. Also, the government has provided increased bandwidth which has led to high speed internet access to the people. Competition Most of the small business buyers and consumers understand what delivery of services and support entail and thus they will not have a major problem when it comes to paying if the offers made are clearly stated. I t is not in doubt that we will face much more stiff competition from the hardware providers than the others who are only providing service. Therefore as a company we would need to
engage the consumers and fight of the myth that one should only purchase computers and throw them away once they get worn out or spoilt. The consumers need to know that they can get training, service and support throughout. Over the years, research has indicated that the consumers we are targeting only think about the price as it is the only thing presented to them. The study actually revealed that the consumers would actually buy based on the service quality provided if only this was laid out clearly to them. This led to the conclusion that about 15-20% of the consumers would be willing to pay more for a relationship with a seller who is ready to provide long term service and support rather than from a one-time vendor. The issue of availability of both the hardware parts and the support service is also a fundamental issue that we will look into. Most of the consumers would want to get immediately or as soon as possible solutions to the problems that they are facing with technology. Our key strengths include: Service Superiority:We provide quality service and goods and carry out repairs in good time. Clean Environment:We ensure that we maintain a conducive atmosphere where one can acquire excellent services. Convenience:We offer clients wide range of products and services under one roof thus making it convenient for them. The clients also save time and money as they can do all things at the same place.
Location:To ensure easy access for our customers. Reputation:We possess integrity, credibility and dedication while serving our clients. Part 3 Differentiation of business We intend to portray ourselves as being different from the other competitors by ensuring that the products we issue to the consumers are genuine and of high quality. This will make the consumers perceive us as real and genuine traders and thus will believe more on our products. Also we intend to emphasis more on the service delivery which we noticed lacked a lot and thus the consumers will know that they have reliable place in which they can sort out their computer technological needs. Furthermore customer relationship is very critical in the issue of being different form your competitors. We believe that this is the right time to undertake this initiative. We have assessed the area and this led us to conclude that we need a more stocked and comprehensive outlet for sale of computers and its services. We will be trying to give services to the local people which are not available amongst our competitors. A good atmosphere and respectful and courteous employees ensures that you set a higher bar to your competitors and the consumers will always feel comfortable to walk in whenever they are faced with any difficult problems. Also as a business we are very mindful of the image reputation that we may portray to the outside world and in particular to our consumers. Therefore we will ensure that we upheld the highest form of reputation by the manner in which we go about
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our duties and also in the form in which we undertake our advertisements, how we do the branding of our products and lastly how we communicate and interact with our target audience. (Cruz, and Justo, 2017). Competitive Edge The major item that gives our business the competitive advantage is the fact that we will be combining a wide range of products and services.(Piperopoulos., 2016).This will give our consumers plenty of options when going for our products. Also our location which is central to most of the population and our communication with our clients will provide us with that competitive edge. We believe that by creating and building a business that provides long term relationship with the consumers, they will in turn be satisfied and thus it will cushion us against competition from our competitors for a long period of time. We will make sure the clients understand exactly what we are providing and thus they will be able to stay longer with us and also be able to refer our business to other consumers. For such a place in which we are located reputation is very critical and thus referral by word of mouth is very much valuable. Marketing Strategy For us at Bino, our best marketing tool to have is to ensure that we have satisfied consumers. Therefore we will ensure that once a customer visits us for the first time, he will get a conducive atmosphere and excellent service such that he will have found his shop for all his computer needs for the future. We have been able to engage a lot of friends who are equally excited about this venture and can’t wait to acquire our services.
To add to this we will also do both radio and newspapers advertising, hand out flyers, engage yellow pages in advertising and lastly put up a website for our business. All this methods will help us be heard as we strive to grow up the business. .(Bojica, et al, 2017).Also as a business we are very mindful of the image reputation that we may portray to the outside world and in particular to our consumers. Therefore we will ensure that we upheld the highest form of reputation by the manner in which we go about our duties and also in the form in which we undertake our advertisements, how we do the branding of our products and lastly how we communicate and interact with our target audience.(Cruz, and Justo, 2017). In 2012, small businesses were ranging at about 77% of all the businesses.in relation to the growth rate it is assumed that there will be over 3000 small businesses in 2019. There were 1,243,313 visitors in the country in 2016. 1,033,615 of them visit our city in particular. In 2017, visitor arrivals are expected to rise by 2%. Market Segmentation The segmentation of our market will mainly focus on the local residents, small scale businesses and tourist who will be coming to the city.it is important to note that for the tourist segment, it is
comprised of various different needs and therefore the potential income will be quite different from the rest. Although the numbers indicate that the tourist part has the largest number of our target consumers, this does not translate to it being the highest income earner. Normally a tourist will be in the city for a period of about a week and chances are that he may not purchase a computer or have one repaired. Despite this, most of them would want to access the internet, check on their mails or even interact with their friends on the social media platform.(Poole, 2018)Therefore we will be able to capture and satisfy the needs of these people by setting up of the rental computer outlets. They will thus be able to rent for some period of time in order to do all this and the fees that we will charge will be cheap and affordable as there are no products that will be leaving the outlet. The fees that we will be charging will be direct profits and therefore we expect these outlets to bring in about 10% of the total profit. Thus the actual income that we will be expecting will be 10%. When talking about bringing in the largest share of potential income, we need to look at the local consumers. We have represented this scheme in the segmentation scheme as resident households. Based on figures from the city official website in 2019, 52.4% of the total households owned computers .Also in various households’ people had more than one computer. Therefore it is wise to state that these consumers need a place where they can go to and have their computers repaired or even upgraded. They can also purchase additional new computers and be installed with the latest technology parts. If we look at the market right now, the consumers are highly limited when it comes to resources for buying of computers or services. They are ordering computers and its parts through the internet which is very costly as they incur
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shipping cost. This method also prevents the buyer from carrying out physical inspection of the good before it is shipped to him. The other option is to buy from the only available dealer who does not have a variety of models and is not able to customize for the consumer according to his specific needs. Bino computers will ensure that we resolve this by offering our clients with computers and their parts the latest technology in the market.To add to this we will also do both radio and newspapers advertising, hand out flyers, engage yellow pages in advertising and lastly put up a website for our business. All this methods will help us be heard as we strive to grow up the business.We will provide computer displays that make it possible for the consumer to undertake an inspection and be satisfied with the product before acquiring it. We will also provide customized computers and carry out in house upgrades to ensure that the consumer needs are catered for.to add to this we will offer guarantee on our products and also provide in store repair services. Looking at all the factors, sales from the computers repairs and upgrades will bring in much more income than the computer rental outlets and therefore we will be expecting this market segment to generate 50% of the total income.(Kim, and Kim, 2017). This leaves us with the balance of 40% of the business income still to be filled. This we hope to cover under the small scale business segment. According to a study carried out, 77% of the businesses in the city are small business with employees not exceeding 10 in number. The business are quite small to have a computer staff management but are also equally big enough to warrant the use of computer technology that we provide.in most cases this portion is mostly ignored by most business computer resources due to its buying habits which are low end and also the tendency not to enter into competition with the big players.(Inekwe, 2016).It leads to the small business to have the same limited resources that are also at disposal to the local customers. In order to address this issue we will provide high range of quality affordable products coupled
with the latest technology together with customizing according to each business need. The small business due to the nature of their work cannot afford to waste time on repairs and thus our computer diagnosis department will work to ensure that repair services are done in the shortest time possible so as not to ground the work of the small businesses. Market Analysis Resident Houses2 Small Businesses2 Tourists2 Total2.05 Despite this, most of them would want to access the internet, check on their mails or even interact with their friends on the social media platform.(Poole, 2018)Therefore we will be able
to capture and satisfy the needs of these people by setting up of the rental computer outlets. They will thus be able to rent for some period of time in order to do all this and the fees that we will charge will be cheap and affordable as there are no products that will be leaving the outlet. Target Market Segment Strategy From the analysis done on our market segment, it clearly indicates that 90% of all the business income will be achieved through small business and local customers. The remainder of 10% will be from the tourist portion. We will provide computer displays that make it possible for the consumer to undertake an inspection and be satisfied with the product before acquiring it. We will also provide customized computers and carry out in house upgrades to ensure that the consumer needs are catered for.to add to this we will offer guarantee on our products and also provide in store repair services. Looking at all the factors, sales from the computers repairs and upgrades will bring in much more income than the computer rental outlets and therefore we will be expecting this market segment to generate 50% of the total income. Therefore it follows that the advertising strategy that will be used on these two will be very different from the tourist one. This will be as below: Small business and local customers advertisement: Local newspapers Yellow pages Internet website
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Handing out flyers to businesses Radio Tourist Advertisement: Setting up a sign pot at the point where people can easily see. Handing out brochures to hotels and car tour entities. Sales Strategy Our biggest and most comprehensive strategy is to promote Bino Computers to the city as the most convenient point for all their computer needs, to ensure that they get only the best quality products and professional service at an affordable fee. We will strive to ensure that we create a good trust and impression on all customers which will in turn guarantee us loyalty, dependence on our brands and frequent visits. This will be done through our courtesy and expertise in handling computer problems. We are expecting a 90% customer return rate by the close of the first year and also to increase our sales by the end of the second year to over a quarter million dollars. Sales Forecast The sales forecast shows key elements of the business in regard to expected sales. During the first year the forecast shows the revenue increasing modestly and this becomes steady in the second year. These figures are mainly on earnings from 3 key areas.
1.Computer sales– It entails the sale made from the hardware parts of the computer. We hope to achieve a 5% increase in revenue due to acquiring new customers. When it comes to the cost of sale for computer hardware’s, it averages around 70% of the total sales if the hardware is sold. We expect a 25% annual increase in the cost for wholesale computer hardware. Thisincludes sales of all hardwarecomponents. 2.ComputerService– This is purely revenue earned from charging of labour fees. There is no sales cost except that for the payroll. We project an annual increase of 10% from this side due to the customer loyalty we will have established. 3.Computer Rental Outlets– This is the revenue generated from renting the computer outlets according to time.in this we estimate an annual increase of 3% which is in line with the projected increase in number of tourist visiting the city. This revenue has no cost at all and is therefore all profit. Sales Forecast Year 1Year 2 Sales$145,470$159,345 Computer sales$54,050$57,250 Computer repairs$11,000$11,360 TOTAL SALES$210,520$227,955
Direct cost of salesYear 1Year 2 Computer parts$108,450$112,751 Sub total$108,450$112,751 Part 4 Operation strategy As earlier outlined above, our main target market includes the small businesses, local consumers and tourists. Therefore we will devise an operation strategy which will enable us to capture in all fronts the available pool of customers for maximizing our profits. This we intend to achieve by offering a wide range of products that are affordable to the people.in order to fully capture the customers, we will also introduce a number of discounts for those customers who purchase in bulk. This will go a long way in attracting those customers who may wish to save. We have selected a conducive and convenient location for our operations which is highly accessible to both the tourist and the locals. We will carry out our business from that particular point for the time being as our business will be mainly small scale for the first few months. This will later be expanded to a fully operational large scale business once the numbers start adding up and the demand for our products reach high levels. Our business model will be in such a way that we have separate rooms for the sale of computer hardware’s and software’s and those for repairs and
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services. This will go a long way in ensuring service delivery is achieved without any distraction or interference from any of the said departments.(Zhang,et al,2016).We have acquired the latest equipment’s and technology that will be effective in detecting computer problems very easily and offer solutions in real time.in the long run we also intend to purchase several motor vehicles that will not only assist us in carrying our products from the manufacturers but also in offering after sales services to our clients. This will save us on the cost of hiring cars for transport. We will also be able to import directly for our clients and thus it will go a long way in saving them time and money while engaging in the process. We will carry out marketing through various form of advertisement which will ensure that our business is constantly mentioned out in order to attract even more customers. We will also put up warehouses nearby to the location of work in order to ensure that the products are easily available and the consumer will not have to wait for a long time for the product to be retrieved form the ware house in case it gets finished in the store. This will ensure that he customer is attended to promptly. There will also be room for accounting and human resource departments but that will come way later in the business. Management The philosophy at Bino computers is one that is based on respect for both the client and the employees. It is our believe that once we are able to listen to our customers and take into account their vision we will be able to satisfy all their computer needs in a much simpler way. (Shemi, and Procter, 2018).The management team will consist of the owners who are two and who have a wide experience in computer technology and also information technology. One will be in charge of handling the finances and the marketing side while the other will be responsible for the development of sales, operations and the production part.
We will also hire a specialist for offering networking solutions in order to cater for the needs of our clients who require this service. In the meantime we will go for an independent contractor as the job will still be on a need by need basis. For that we already have a list of potential candidates. This will go a long way in attracting those customers who may wish to save. We have selected a conducive and convenient location for our operations which is highly accessible to both the tourist and the locals. We will carry out our business from that particular point for the time being as our business will be mainly small scale for the first few months. This will later be expanded to a fully operational large scale business once the numbers start adding up and the demand for our products reach high levels. When it comes to employee hiring, we will only be able to engage people who can demonstrate high knowledge of computer operations and those who can offer high level of customer service. These we cannot compromise as they will be the ones interacting daily with the clients thus are very critical to the company. This is evidenced by our structure of the organization that emphasizes on proficiency in technology and customer orientation and at the same time managing cost and maximizing productivity. Also we may decide to engage in external outsourcing whenever we feel that we require the expertise in a particular matter that may pop up during the course of operating the business. Here we will only engage professionals and not just any other person so as not to compromise on the quality of our services.(McDonald, 2019). Personnel Plan
The plan that is indicated below only entails only what we need at the time of starting the business and goes up to the second year. Additional personnel can only come in after the second year of operations. Personnel Plan Year 1Year 2 Jack Mel$ 36,000$39,000 James Keen$15,000$20,200 TOTAL22 Total Cost$51,000$ 59,200 PART 5
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The initial cost that are required to start up the business will be financed by own capital investment. The cost, expense, and investment are detailed below. Administrative and operating expense chart We look at two critical points in relation to the administrative and operating expenses. This are; The revenue to be achieved is dependent on the lowest average against the highest expense. The rent expense is constant for the next 3 years.
Break-even Analysis When it comes to our break even analysis we look at factors such as the payroll, rent to be paid, utilities incurred and several estimates of running costs that may be there. We will ensure that we keep a close eye on the gross margins and make sure that we at least maintain them at not lower than 50%.this is to be done by maximizing on the promotional discounts that may be handed out by our producers and also by the big profit makers of computer services. In order for us to achieve break even at the earliest time, we need to sell adequately in each month based on the assumptions that we have taken.We will make sure the clients understand exactly what we are providing and thus they will be able to stay longer with us and also be able to refer our business to other consumers. For such a place in which we are located reputation is very critical and thus referral by word of mouth is very much valuable
Cash Flow management According to our cash flow projections, we have planned to enhance our capital by borrowing. This is to ensure that we don’t fall into a negative balance as we try to establish the business. Although the cash flow may be negative at one point and positive at another during the year, we will still be able to portray a healthy cash balance which will gradually increase over the years. We will ensure that we keep a close eye on the gross margins and make sure that we at least maintain them at not lower than 50%.this is to be done by maximizing on the promotional discounts that may be handed out by our producers and also by the big profit makers of computer services. In order for us to achieve break even at the earliest time, we need to sell adequately in each month based on the assumptions that we have taken.
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