Nerd Patrol: Computer and Networking Services

The assignment content discusses the business plan for Nerd Patrol, a computer and networking services company that aims to provide diagnostic and replacement services. The company will operate from the central market of California and target business professionals and students as its primary customers. The key features of Nerd Patrol's strategy include product offerings such as motherboards, spare parts, and routers; promotional activities like advertising in college campuses and malls; and a competitive pricing structure that is expected to be lower than that of established competitors. The company also plans to provide 24/7 support services for its customers.

Business Plan
Assessment
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Nerd Patrol Business Plan
Table of Contents
A. Introduction..............................................................................................................................2
a. Venture.................................................................................................................................2
b. Business aspirations..............................................................................................................3
B. Organization of the business and key players..........................................................................4
a. Owners..................................................................................................................................4
b. Company Legal Structure.....................................................................................................5
c. Management team, employees, and roles.............................................................................5
d. Contracts/Vendors................................................................................................................6
C. Financials..................................................................................................................................7
a. Operating costs.....................................................................................................................7
b. Investment requirements.......................................................................................................8
c. Anticipated revenue..............................................................................................................9
d. Payback point......................................................................................................................11
e. Return on investment..........................................................................................................12
D. Marketing/sales......................................................................................................................13
A. Summary of marketing/sales strategy.................................................................................13
Marketing/sales requirement.....................................................................................................13
Prices......................................................................................................................................13
Product...................................................................................................................................14
Promotion..............................................................................................................................14
Place.......................................................................................................................................15
Competition...........................................................................................................................15
E. Operation...............................................................................................................................15
Location.....................................................................................................................................15
Business operations...................................................................................................................16
F. Legal and sundry issues.........................................................................................................16
Legal issues................................................................................................................................16
Handling legal issues:................................................................................................................16
G. Major challenges:...................................................................................................................17
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Nerd Patrol Business Plan
References......................................................................................................................................18
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Nerd Patrol Business Plan
A. Introduction
Every new venture requires a detailed and effective business plan. This business plan
should have clear descriptions and directions. In order to focus on their new and complete range
computer and networking services to individuals and businesses. The requirement of Nerd Patrol
will be catered for personal as well as professional customers. It is a new venture targeting
towards providing services associated with network and computer. It will be a startup by people
who are highly experienced in the field of computer science and marketing. This report study
will discuss the ownership, business, business structure, operations, marketing and legal and
challenges.
a. Venture
Nerd Patrol aims to provide services to users facing problems with computers and networking. It
will be a small store with its location in California for gaining popularity. Due to high
requirement of computer and networking services, the store will be operational in all the seven
days. Services will be provided by Nerd Patrol for calling their customers on the basis of
appointment. Services will be provided by Nerd Patrol for home and office service according to
their job requirement and their request. Assistance will be provided in installation services upon
request.
Hardware and software related problems will be fixed, and personalized services will be
provided to the customers. On installing software or any other service, Nerd Patrol will provide
free service for on their next visit to their regular customers. On installing new software and up
gradation of software, Nerd Patrol will charge a small amount. Packages services will be
provided by to their customers and membership fees be charged for specific services.
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Nerd Patrol Business Plan
Initially, Nerd Patrol is going to render its services to its regional customers only for focusing
more on the customers of the particular region. The employees of Nerd Patrol will be owners so
as to ensure high-quality service. This will help in gaining customer confidence and ensuring
customer satisfaction. Maintenance service will be provided to the small business customers and
will be provided for six months to one year on the basis of complexity of software service. The
customers will be guided regarding the registration of software from any valid and authentic
source. For choosing the software, network, and hardware, Nerd Patrol will be providing full
assistance to their customers. Guidance regarding backup service along with assistance in
solving and maintaining problems which arise from this maintenance.
b. Business aspirations
The business aspiration are given below:
 The increase in the breath of services which are rendered by Nerd Patrol to their
customers.
 Expansion of business in various regions of the country.
 Not to compromise on the quality of work.
 Operating 24/7 and full focus on small business
 Capturing high market share by extending the services
 To gain customer recognition on the basis of the quality of service.
 To provide safe and secure service to the customers
 Provide free online service to the customers for managing minor issues.
 A complaint number will be provided for every repair.
 A 24/7 online chat with the agents of the company for getting detailed
information.
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Nerd Patrol Business Plan
B. Organization of the business and key players
a. Owners
The owners of Nerd Patrol are John Robbins, Mary Singh and Nabil Qureshi who are college
friends.
Owner Name Qualification Experience
John Robbins Graduate with
specialization in computer
science.
System Engineer for five years in a
large technology company.
Mary Singh Graduate with
specialization in computer
science.
Engineer for five years in the large
technology company.
Nabil Qureshi Graduate with
specialization in business
administration.
Sales staff for five years of a
software engineering service
company.
b. Company Legal Structure
The company will be formed as the Limited Liability Partnership or LLP which is a hybrid
between partnership and corporation. The company will be registered according to the rule and
regulations of the LLP Act. The personal liability of the partner is protected by LLP. Active
participation in all the affairs and business can be seen among the partners (Theta Law Firm,
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Nerd Patrol Business Plan
n.d.) as all the partners possess the right to manage all the activities and operations of the
business.
 LLP has been chosen due to its flexible nature.
 The structure of the organization will be decided by the partners.
 The general partnership will be followed by all the items, deductions, credits, shares,
payroll, sales flows, etc. according to the California Schedule K-1 (State of California
Franchise Tax Board, n.d.).
 The disruptive shares of Nerd Patrol will be handled by the partner.
 For an LLP, California Form 565 will be filed and registration with Secretary of the state
is mandatory.
 The partners will have to pay their taxes, but LLP will not have any tax requirements
(State of California Franchise Tax Board, n.d.).
c. Management team, employees, and roles
John Robbins and his services will be related to computer and network. John Robbins will be
assisted by Mary Singh and will also help in coordinating the work and for managing customer
calls. Mary Singh will handle entire customer line and also schedule appointments with John
Robbins. However, Nabil Qureshi will provide assistance only on the part-time basis and focus
on the development of the company. He will be responsible for focusing on the advertising and
promotion of the company through sources and social media. No employees will be employed
for rendering services, and the owners will be involved directly in ensuring the growth, business
performance and quality at the initial stage of the business.
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Nerd Patrol Business Plan
After three years, Nerd Patrol will appoint two employees who will be handled for managing the
customers who drop directly to the store enabling them to look into issues. Due to high
complexity, the on-sight service will be performed by John Robbins. The employees will be
provided training to the employees and will also focus on the on-job training.
The employees must be graduated with a specialization in computer science. Preference will be
given to employees with three years of experience for enhancing the overall quality of services
being provided. Similarly, Nabil will employ a full-time employee for intensified marketing and
promotions of the business.
d. Contracts/Vendors
The Nerd Patrol will have to establish contact with capable and efficient hardware providers for
enabling them to provide hardware parts at a competitive price from the marketplace and
avoiding any delay. A thorough examination of the network and system will be performed for
understanding the issues. The vendors will be contacted for procuring the materials for avoiding
any customer suffering. The customers will be charged while servicing for the parts being used
by Nerd Patrol. Furthermore, Nerd Patrol will stock some common hardware parts along with
having direct contact with all the suppliers.
A supply chain will be established with the vendors on the contract basis for enabling them to
obtain systems and products without further delays. After three years, the company will opt for
credit sales where the organization and the suppliers will enter into the agreement and the
products as per the demands of the company will be provided to Nerd Patrol.
Expectations from vendor:
 Suppliers will have enough knowledge about products and quality.
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Nerd Patrol Business Plan
 Suppliers from possessing all the products related to networking and computers.
 Only original products must be sold by the suppliers.
 The contract must be renewable in nature giving an opportunity of canceling the contract
in case of dissatisfaction.
 All the products must have a warranty.
C. Financials
a. Operating costs
Electricity bill - $350
Monthly rent for the commercial place - $1,200
Spare parts - $100
Salary after fourth month - $5,500
Housekeeping - $250
Logistics - $250
Maintenance of equipment - $200
Advertisement expenses - $150
Administrative expenses - $200
Travel expenses - $160
Miscellaneous expenses - $150
Salary Component:
John Robbins - $2,500.
Mary Singh - $2,000.
Nabil Quresh - $1,500.
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Nerd Patrol Business Plan
Expenses for first four month = $3,800
Total expense= $8,510 after 4 months.
b. Investment requirements
 Website -$500
 Legal expenses - $650
 Stationery - $100
 Brochures - $150
 Purchase of computer and laptops (mobile, printer)- $4,000
 Purchase of other assets -$3,000
 Purchase of equipment for repairing and testing -$8,000
 Business cards -$200
 Initial advertisement - $2,500
 Inventory for six months -$5,000
 Cost of uniform - $4,000
 CPA expenses -$500
 Furniture and fittings -$2,000
 Cash required for meeting six-month business expenses -$29,060
 Other current assets -$2,500
 Insurance -$200
Total investment amount is $62,360.
c. Anticipated revenue
The anticipated revenue for every month:
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Nerd Patrol Business Plan
 Month 1 - $2,000
 Month 2 - $3,200
 Month 3 - $4,200
 Month 4 -$5,800
 Month 5 - $7,900
 Month 6 - $8,600
 Month 7 - $9,500
 Month 8 - $9,800
 Month 9 -$10,800
 Month 10 - $11,600
 Month 11 - $11,800
 Month 12 - $13,000
Pro-forma cash flow:
Month 1
Month
2
Month
3
Month
4
Month
5
Month
6
Computer Service Revenue $2,000 $2,200 $2,600 $2,800 $4,200 $4,200
Network Service Revenue $1,000 $1,600 $3,000 $3,700 $4,400
Total $2,000 $3,200 $4,200 $5,800 $7,900 $8,600
Operating expenses
Electricity bill 350 350 350 350 350 350
Maintenance of equipment 200 200 200 200 200 200
Monthly rent 1200 1200 1200 1200 1200 1200
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Nerd Patrol Business Plan
Logistics 250 250 250 250 250 250
Salary 6000 6000
Spare parts 100 100 100 100 100 100
Travel expenses 160 160 160 160 160 160
Advertisement expenses 150 150 150 150 150 150
Administrative expenses 200 200 200 200 200 200
Housekeeping 250 250 250 250 250 250
Miscellaneous expenses 150 150 150 150 150 150
Total operating expenses 3800 3800 3800 3800 8510 8510
Net cash flow ($1,800) $500 $400 $2,000 $610 $90
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Revenue from computer
service $4,500 $4,500 $5,000 $5,000 $5,000 $5,500
Revenue from network
service $5,000 5,300 5,800 6,600 6800 7, 500
Total $9,500 $9,800 $10,800
$11,60
0 $11,800 $13,000
Operating expenses
Electricity bill 350 350 350 350 350 350
Maintenance of equipment 200 200 200 200 200 200
Monthly rent 1200 1200 1200 1200 1200 1200
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Nerd Patrol Business Plan
Logistics 250 250 250 250 250 250
Salary 6000 6000
Spare parts 100 100 100 100 100 100
Travel expenses 160 160 160 160 160 160
Advertisement expenses 150 150 150 150 150 150
Administrative expenses 200 200 200 200 200 200
Housekeeping 250 250 250 250 250 250
Miscellaneous expenses 150 150 150 150 150 150
Total operating expenses 8510 8510 8510 8510 8510 8510
Net cash flow $990 $1290 $2,290 $3,090 $3,290 $4,410
d. Payback point
From the third month, the payback period will start and increase in revenue is expected
from this month. It is speculated that it will be a progressive increase but the organization cannot
accommodate three employees for the reduction in the overall costs in its initial years. However,
as per the revenue chart, it can be estimated that two service engineers can be recruited in the
initial three years. Once the revenues are stabilized, employees can be appointed as their salary
will not hurt the cash flow.
e. Return on investment
Due to increased usage of tabs and mobiles, the purchase of personal computers is seen to
decline (Hamblen, 2014). However, the adverse impact on the growth of the business will not be
seen. Due to increased demand and popularity of cloud computing, the reduction in the overall
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Nerd Patrol Business Plan
cost will be seen. The organization must focus on the cloud computing usage, and $180 billion
will be spent by the end users over the cloud computing by the end 2015 (Woods, 2014). The
cloud equipment related global market would be $79.1 billion by 2018. The overall workload of
network and software professional will be increased. When the customers are seen to concentrate
on computer maintenance and network maintenance, they will depend on organizations like Nerd
Patrol. This will boost company's revenue, and with the increase in the use of the internet, the
demand of computer and network services will increase.
The expected annual sales of Nerd Patrol are listed below:
Year 0 Year 1 Year 2 Year 3
Sales $0
$99,80
0 $125,010 $175,123
Investmen
t
($62,370
)
$17,58
0
$22,871.9
0 $29,820.38
IRR 5.622%
Therefore, the return on investment on the basis of the first three-year cash flow is
estimated out to be 5.622%.
D. Marketing/sales
A. Summary of marketing/sales strategy
A complete diagnosis will be performed for the network and customer computer which
will be maintained in the database of the company enabling it to understand all the shortcomings.
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Nerd Patrol Business Plan
The organization will advertise in TV channels and will distribute business cards. The target
population will be the college students.
Marketing/sales requirement
Prices
 Diagnosis – Free for the customers.
 Drivers, cards, and modem - $35
 Bios password recovery - $52 plus.
 Computer setup and installation - $38
 Processor replacement - $55 plus.
 Computer peripheral setup and installation - $32
 Data backup services -$55
 Restoring CD - $15
 CPU replacement - $50
 Operating system installation - $40 additional cost
 Software installation - $20 additional cost of software
 Troubleshooting -$70 per hour
 Replace of power supply - $25 additional parts
 Motherboard replacement -$90 additional parts
 Complex network configuration - $120 per hour
 Network configuration - $90 per hour
 Replacement of memory -$15 additional cost
 Hard disk replacement - $25 each
 Network maintenance - $50 per hour
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Nerd Patrol Business Plan
 Other hardware and software problems -$60 per hour.
 Virus/spyware and adware removal -$60 plus software
 Replacement of router -$60 additional cost
 Replace of cables - $20 plus additional cost
 Other network related problems - $80 per hour
Product
Nerd Patrol was dealing with products and services related to computer and networking.
They have motherboards, spare parts, CDs, hard disc, routers, DVD, etc. for making the
diagnosis. In the case of replacement, Nerd Patrol will ask to the customer to buy the parts or to
replace it. In case the client wants it to be replaced, the organization will give them various other
products as a complement.
Promotion
Nerd Patrol will advertise in college regarding their service with various coupon cards for
encouraging them to visit the store. Further advertising in malls will help in enhancing the
popularity, and via television, more contacts can be attained. Intensified promotion is important,
and it must be given preference.
Place
Nerd Patrol will operate in the main market of the California. The store in the central market will
help in creating popularity among the customers and business professionals. The main market
will have high accessibility and reachability among the business population.
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Nerd Patrol Business Plan
Competition
There is an intense competition in this industry. The major players in this industry are (BoxAid,
2013):
 iYogi
 Boxaid
 Geek squad
There are various startups and local players in the marketplace that provide the same services.
Various small and large sized companies that are giving each other a cut throat competition. The
well-established companies provide online as well as insight services.
As Nerd Patrol is new in the market, it gets difficult to gain customers’ trust as all the
information is stored in the computer. In industries like these, familiar and established players
get more customer preference as compared to the new startups.
E. Operation
Location
The location selected for Nerd Patrol is the central market of California. The store in the central
market will help in creating popularity among the customers and business professionals. The
main market will have high accessibility and reachability among the business population. Nerd
Patrol will maintain a big hoarding with the address, email, and contact number for attracting
more customers. The crowded area will be problematic but at the same time will provide the
better opportunity for the company to grow.
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Nerd Patrol Business Plan
Business operations
The company office will open at 9:00 am in the morning and will be operational till 10:00 pm.
The store will be operational for seven days where John Robbins will work during weekends and
evening hours. The location is highly crowded, and the company will observe more customer
visit due to location. However, no facilities will be provided for on-sight personal computers
after 7:00 pm. However, the business customers will be provided with 24/7 services. Online
support will be provided to customers upon their request.
F. Legal and sundry issues
Legal issues
The following steps are required for establishing an LLP in California (Theta Law Firm, n.d.):
 Registration in the California Secretary of the state.
 Partnership agreement with its drafting and execution.
 Obtaining the Local business license and complied with the law.
 Obtaining the Employer identification number.
 California state LLP fees/taxes and its payment.
Handling legal issues:
The legal consultant will be hired for handling Ned Patrol. The company will maintain
the relationship with some legal firm for handling legal matters. Nerd Patrol is a startup and
requirement for legal assistance is lesser and therefore will not hire the lawyer. Nerd Patrol will
hire a lawyer while meeting the requirements.
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Nerd Patrol Business Plan
G.Major challenges:
Due to internal and external factors, the businesses are susceptible to face more
challenges. The major challenges expected by Nerd Patrol are:
 Obtaining a credible supplier
 Difficulty in procuring the needed items and material on time.
 Tough local competition
 Fragmented industry.
 Difficulty in providing services at the lower price than the competitors.
 The Bigger player may operate a store next to Nerd Patrol.
 Difficulty in getting the customer base and maintaining customer loyalty.
 Many more startups to come due to entry barriers.
 Any spare part of lower quality will lead to decreasing the brand reputation.
 The company needs to diagnose and understand each and every issue so as to maintain the
brand reputation.
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Nerd Patrol Business Plan
References
BoxAid. (2013, September 23). iYogi vs. Boxaid vs. Geek Squad Comparison. Retrieved
from
https://www.boxaid.com/blog/iyogi-vs-boxaid-vs-geek-squad-comparison/
Hamblen, M. (2014, March 27). PC sales to drop by 6% in 2014 | Computerworld. Retrieved
from
http://www.computerworld.com/article/2489057/tablets/pc-sales-to-drop-by-6--in-
2014.html
Internet Live Stats. (2015, July). Number of Internet Users (2015) - Internet Live Stats.
Retrieved from
http://www.internetlivestats.com/internet-users/
State of California Franchise Tax Board. (n.d.). Limited Liability Partnership (LLP) |
California Franchise Tax Board. Retrieved from
https://www.ftb.ca.gov/businesses/bus_structures/LLpartner.shtml
Statista. (2015). U.S. computer and video game sales 2014 | Statistic. Retrieved from
http://www.statista.com/statistics/273258/us-computer-and-video-game-sales/
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