Nerd Petrol: A Detailed Entrepreneurship Project and Business Plan

This project presents a comprehensive business plan for Nerd Petrol, a B2B computer service firm. The plan outlines the company's mission, vision, and aspirations, detailing its services, which include turnkey computer solutions, technical consulting, and web-based applications. It covers the organizational structure, roles of key players, and qualifications of the owners and management team. The financial plan includes anticipated operating costs, investment requirements, start-up costs, sales forecasts, projected profit and loss accounts, cash flow statements, and balance sheets. The marketing plan details the target market segmentation, pricing strategy, promotion strategy, product strategy, and competitive analysis. The operations section discusses the business location and operational procedures, while the legal and sundry issues section addresses potential legal challenges. The plan concludes with a list of references, providing a solid foundation for Nerd Petrol's business venture.

Running head: ENTREPRENEURSHIP
Entrepreneurship
Name of the Student
Name of the University
Authors Note
Course ID

1ENTREPRENEURSHIP
Table of Contents
Introduction:...............................................................................................................................2
Description of business:.............................................................................................................2
Business aspirations:..............................................................................................................3
Business Vision:.....................................................................................................................3
Business Mission:...................................................................................................................3
Organization of the business and Key Players:..........................................................................4
Owners- Roles and Qualifications:........................................................................................4
Qualifications of Owners.......................................................................................................4
Management Team- Roles and Responsibilities:...................................................................4
Employee- Roles and Qualifications:.....................................................................................5
Financial Plan:............................................................................................................................5
Anticipated Operating Costs:.................................................................................................5
Anticipated Investment requirement:.....................................................................................6
Start Up Costs:.......................................................................................................................6
Sales Forecast:........................................................................................................................7
Projected Profit and Loss Account:........................................................................................8
Cash Flow Statement:............................................................................................................9
Monthly Cash Flow:.............................................................................................................10
Projected Balance Sheet:......................................................................................................11
Marketing Plan:........................................................................................................................11

2ENTREPRENEURSHIP
Summary of Marketing Strategy:.........................................................................................11
Market Analysis:..................................................................................................................12
Target Market Segmentations:.............................................................................................12
Pricing Strategy:.......................................................................................................................13
Promotion Strategy:.............................................................................................................13
Product Strategy:..................................................................................................................14
Place:....................................................................................................................................14
Competition:.........................................................................................................................14
Operations:...............................................................................................................................15
Locations of the Business:...................................................................................................15
Business Operations:............................................................................................................15
Legal and Sundry Issues:.........................................................................................................16
Legal Issues:.........................................................................................................................16
Measures to handle legal issues:..........................................................................................16
Major Challenges:....................................................................................................................17
References:...............................................................................................................................18

3ENTREPRENEURSHIP
Introduction:
Nerd Petrol will be a B2B computer service firm that would offer its customers with
turnkey computer solution based on current technologies and web-based application. The
company would be serving a separate as well as detailed marketing plan. It will be providing
its customers with technical consultant service to both the household computer users and
locally located small business. Nerd Petrol would be emphasizing on marketing, quality
creation and responsiveness towards customers for better relations.
The company would formed as partnership business where the partners will be
responsible for launching a full-sized business. The company will set up its office in a small
rental premises to service the customers in local area.
Description of business:
Nerd Petrol will be a US based computer Solution Company to offer its customers
with needed technological expertise. It will be introducing the US market with new all-
inclusive business to business computer consultancy (Piperopoulos 2016). It will be
providing web-based computer solution ranging from hosting services for ASP companies to
hosting internet sales for small and mid-size business. This includes;
a. Offering customers with services on the basis of hourly based technical aid, retainer
contracts association to specific system and project consultancy.
b. Nerd Petrol would offer its customers with onsite repair service to households and
locally located companies.
c. The company would help its customers in installation, customization and maintenance
of computers.

4ENTREPRENEURSHIP
Business aspirations:
The business of Nerd Patrol is to provide an on paper guide for managing the
computer consultancy business with a strategic framework of forming a comprehensive
marketing plan. Beside aspirations there are certain objectives of Nerd Patrol;
Profit: The main aim of Nerd Patrol is to produce adequate profit so that it can fund its future
business growth and providing the needed resources to meet other business objectives of
owners (Colombelli, Krafft and Vivarelli 2016).
Growth and Development: To develop business that is challenging and manageable. It aims
to lead the market with adaptability and innovation.
Business Integrity: The objective of Nerd Patrol is to satisfy the need of small business by
giving online collaboration of software updates and solving the problems associated to
networks.
Business Vision:
Nerd Patrol carries the vision of offering its customers with fast, responsive and well-
versed expertise to constantly offer reliable solution. Nerd Patrol will be aiming to produce
set of repeated consumers and retaining the base of stable customers (Wu and Huarng 2015).
This will help in generating needed profits for future growth of business.
Business Mission:
The mission of Nerd Patrol is to meet the short-term business objectives by
commencing the activities sooner and with lower amount of debt. While the long term
mission of business to attain growth and profitability for comfortable management of the
firm.

5ENTREPRENEURSHIP
Organization of the business and Key Players:
Owners- Roles and Qualifications:
The business will be formed under the partnership which will be jointly owned by
John Robbins, Mary Singh and Nabil Quresh. John. Concerning the roles of owners during
the initial three months John and Mary will be accountable for every business aspects. While
from third month onwards the owners will be hiring additional technicians (Baker 2014).
Whereas John will be responsible for training and administering new staff. He will also be
responsible for responding to the client’s needs. Mary will be accountable for delegating
technical repairs to techs that will be working in leased office and she will also be responsible
for training staff for telephonic conversation with potential clients.
Qualifications of Owners
Nabil Quresh: Graduated in Business Administration
Mary Singh: Graduated in Computer Science
John Robbins: Graduated in Computer Science
Management Team- Roles and Responsibilities:
Nerd Patrol will be under the ownership of John, Mary and Nabil based on
partnership agreement. The owners here possess five year experience in Information and
Communication Technology Industry. With needed skills and expertise the owners would be
accountable for forming customer creation. The customer formation ability of the business
helps in bringing more amount of operations which in turn would be a profitable venture
inside six months of operations. The management team would include John and Mary since
they specialize themselves in software aspects of computer repair and they are expected to
work collaboratively.

6ENTREPRENEURSHIP
Besides this, the management team will be responsible for growing the boundaries of
business in the first six months of operations. They are anticipated to make advertisement
which will effectively be targeting the households PC and small business that are located
locally.
Employee- Roles and Qualifications:
Nerd Patrol will be looking forward to hire five employee inside the six months span.
The salary and wages of employees will be directly associated with the business success. The
employees of Nerd Patrol would be holding professional qualifications and computer skills
(Barringer 2015). They are anticipated to hold strong inter personal and technical skills as
well. It is important for the employees to commensurate with needed business abilities and
dedications to serve the customers with utmost satisfaction.
The employees will be accountable for providing services on the hourly basis
technical aid, project counselling and on site services. The employees will also be
accountable for providing customers with first hand solution and should assure 100% quality
assurance in discharge of their responsibilities.
Financial Plan:
Under this head financial plans on yearly basis will be provided for Nerd Patrol. A
detailed cash flow pro-forma based on monthly basis is also provided below.
Anticipated Operating Costs:
The expected cash flow for the first year of operations stands $233,165. This
generally includes the general and administrative expenditure, capital improvement costs and
lease expenses (Burns 2016). The business would also incur the non-recurring costs for its
fixed assets such as computers, furniture and equipment.

7ENTREPRENEURSHIP
Anticipated Investment requirement:
The expected investment for the first year of operations stands $245,000
approximately. The business anticipates to incur a total fixed cost of $150,000 in the first
year of its operations. The total amount of owner’s contribution would be $125,000 while a
sum of $75,000 would be obtained as bank loan.
Start Up Costs:
Start-up Expenses
Fixed Costs Particulars Amount ($)
Premises (RENT & RATES) $50,000
Salaries $17,500
Interest on loan 10% $7,500
Accountant Fees $14,000
Payroll Tax $2,500
Retainer contracts $12,750
Sales and Marketing $15,000
Postage & Telephone $1,750
Brouchers $2,250
Logo Designs $2,000
Market survey $7,500
Preliminary expenses $2,200
Capital Improvements Expenes $16,000
Total Fixed Costs $1,50,950
Average Monthly Costs
Rent $4,167
Capital Improvements Expenes $1,333
Interest on loan 10% $625
Postage & Telephone $146
Repairs and Maintainance $188
Salaries / Wages $1,458
Total Average Monthly Costs $7,917
x Number of Months: 12
Total Monthly Costs $95,000
Total Startup Expenses $2,45,950
Start-up Requirements

8ENTREPRENEURSHIP
Start-up Assets
Owner Funding
Owners Fund $1,25,000
Total Owner Funding $1,25,000
Loans
Bank Loan $75,000
Other
Total Loans $75,000
Total Start up Funds $2,00,000
Assets
Equipments $22,000
Computers $20,000
Total Fixed Assets $42,000
Total Start-up Assets $2,42,000
Sales Forecast:
(1) SALES FORECAST
Year 0 1 2 3
Projected Sales 2,50,000 2,75,000 3,08,000
Direct Cost of Sales 75,000 86,250 99,188
Year 1 Year 2 Year 3
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
0%
5%
10%
15%
20%
25%
24,050
59,225
63,745
Profit Before tax
Pretax Net Margin
Figure 1: Figure illustrating profit before tax and pre-tax net margin
(Source: As Created by Author)

9ENTREPRENEURSHIP
Projected Profit and Loss Account:
(4) PROFIT AND LOSS FORECAST
Preop
Year 0 1 2 3
Revenue 0 2,50,000 2,75,000 3,08,000
Cost of sales 0 75,000 86,250 99,188
Gross profit 0 1,75,000 1,88,750 2,08,813
Gross Margin 2,33,165 2,33,543 2,63,379
Expenses/overheads
Payroll 50,000 55,000 61,600
Marketing and Promotion 17,500 19,250 21,560
Accountant Fees 14,000 15,400 17,248
Lease 2,500 2,750 3,080
Supplier contracts 12,750 14,025 15,708
Sales and Marketing 15,000 16,500 18,480
Postage & Telephone 1,750 1,925 2,156
Website Development Expenses 2,250 2,475 2,772
Logo Designs 2,000 2,200 2,464
Interest on loan 10% 7,500 7,500 7,500
General and Admin Expenses 7,500 8,250 9,240
Preliminary expenses 2,200 2,420 2,710
Capital Improvement Cost 16,000 17,600 19,712
Total expenses/overheads 1,50,950 1,29,525 1,45,068
Profit before tax 24,050 59,225 63,745
Tax @ 30% 7,215 17,768 19,123
Before tax net margin 10% 22% 21%
Profit after tax 16,835 41,458 44,621
Transfer to reserves 24,050 59,225 63,745
ROC 17% 33% 30%

10ENTREPRENEURSHIP
Cash Flow Statement:
(2) CASHFLOW FORECAST Preop
Year 0 1 2 3
CASH INFLOWS
Cash from Sales 2,50,000 2,75,000 3,08,000
Directors loans 75,000 75,000 75,000 75,000
Capital Employed 1,00,000 1,25,000 1,50,000 1,75,000
Other cash inflows
TOTAL CASH INFLOW 1,75,000 4,50,000 5,00,000 5,58,000
CASH OUTFLOWS
Payments for materials 75,000 86,250 99,188
operating expenses ( ) 0
Payroll 0 50,000 55,000 61,600
Marketing and Promotion 0 17,500 19,250 21,560
Accountant Fees 0 14,000 15,400 17,248
Lease 0 2,500 2,750 3,080
Supplier contracts 0 12,750 14,025 15,708
Sales and Marketing 15,000 16,500 18,480
Postage & Telephone 1,750 1,925 2,156
Website Development Expenses 2,250 2,475 2,772
Logo Designs 2,000 2,200 2,464
Interest on loan 10% 7,500 7,500 7,500
General and Admin Expenses 7,500 8,250 9,240
Preliminary expenses 2,200 2,420 2,710
Capital Improvement Cost 16,000 17,600 19,712
Corporation Tax 7,215 17,768 19,123
Loan repayments 7,500 7,500
TOTAL CASH OUTFLOWS 0 2,33,165 2,76,813 3,10,041
Cash flow summary
NET CASHFLOW FOR PERIOD 1,75,000 2,16,835 2,23,188 2,47,959
OPENING CASH BALANCE 0 1,75,000 3,91,835 6,15,023
CLOSING CASH BALANCE 1,75,000 3,91,835 6,15,023 8,62,981

11ENTREPRENEURSHIP
Monthly Cash Flow:
INCOME Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Operating Income
Sal es Revenue 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 2,50,000
Total Operating Income 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 2,50,000
Total INCOME 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 20,833 2,50,000
Operating Expenses
Payroll 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 50,000
Marketing and Promotion 1,458 1,458 1,458 1,458 1,458 1,458 1,458 1,458 1,458 1,458 1,458 1,458 17,500
Accountant Fees 1,167 1,167 1,167 1,167 1,167 1,167 1,167 1,167 1,167 1,167 1,167 1,167 14,000
Lease 208 208 208 208 208 208 208 208 208 208 208 208 2,500
Supplier contracts 1,063 1,063 1,063 1,063 1,063 1,063 1,063 1,063 1,063 1,063 1,063 1,063 12,750
Sal es and Marketing 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000
Postage & Telephone [phone] 146 146 146 146 146 146 146 1,750
Website Development Expenses 188 188 188 188 188 188 188 188 188 188 188 188 2,250
Logo Designs 167 167 167 167 167 167 167 167 167 167 167 167 2,000
Interest on loan 10% 625 625 625 625 625 625 625 625 625 625 625 625 7,500
General and Admin Expenses 625 625 625 625 625 625 625 625 625 625 625 625 7,500
Preliminary expenses 183 183 183 183 183 183 183 183 183 183 183 183 2,200
Capital Improvement Cost 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 1,333 16,000
Total Operating Expenses 12,579 12,579 12,579 12,579 12,579 12,579 12,579 12,579 12,579 12,579 12,579 12,579 1,50,950
Non-Recurring Expenses
Equipments 1,833 1,833 1,833 1,833 1,833 1,833 1,833 1,833 1,833 1,833 1,833 1,833 22,000
Computers 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,000
Utilities 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000
Furnitures 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,000
Total Non-Recurring Expenses 6,417 6,417 6,417 6,417 6,417 6,417 6,417 6,417 6,417 6,417 6,417 6,417 77,000
Total EXPENSES 18,996 18,996 18,996 18,996 18,996 18,996 18,996 18,996 18,996 18,996 18,996 18,996 2,27,950
Net Income Before Taxes 1,838 1,838 1,838 1,838 1,838 1,838 1,838 1,838 1,838 1,838 1,838 1,838 22,050
Income Tax Expense 601 601 601 601 601 601 601 601 601 601 601 601 7,215
NET INCOME 1,236 1,236 1,236 1,236 1,236 1,236 1,236 1,236 1,236 1,236 1,236 1,236 14,835
EXPENSES