If you’re about starting a computer sales & services business, This post contains a complete sample computer sales and service business plan.
According to report, computer sales and related services are expected to cross $47 billion this year in the U.S. alone, with computer servicing leading the way.
This means that any entrepreneur who properly positions himself or herself in computer sales and servicing industry would certainly enjoy good business turnover.
As a matter of fact, almost every businesses and homes have computers, and these people might not have the skills, time or the willingness to do their own computer servicing, repairs and upgrades, and that gives a computer physician right in the middle of one of the fastest-growing industries worldwide.
A Sample Computer Sales & Service Business Plan Template
1. Industry Overview
The computer sales and servicing industry includes operators that sell and service different forms of computers such as desktops, laptops, notebooks, palmtops and software, and also accessories like printers, scanners and keyboards.
These goods are generally bought from domestic and international manufacturers and wholesalers and then sold to end consumers, including businesses and households.
Computers have spread throughout America and the world over the past 30 years – from 2,000 units shipped in 1960 to 900,000 in 1980 to 7 million in 1990 to over 15 million per year by 2003 to more than 65 million per quarter in 2015. With this fast growth, there has been a corresponding increase in the need for computer services.
If you’re conversant with happenings in the Computer Sales and Services industry, you’ll discover that computers are seriously becoming indispensable household and personal products.
In spite of the growing quality of these products, retailers of computers, peripherals and consumer electronics have experienced some time-consuming challenges over the past five years.
Rapid technological change, increased production efficiency and a highly globalized supply chain have lowered computer retail prices, hampering the revenue potential of the industry.
Additionally, the increasing acceptance of e-commerce has reduced customer traffic in computer stores, and also limiting revenue.
Most consumers are currently taking advantage of online shopping, which facilitates product and price comparisons. Going forward, revenue of industry is expected to decrease.
The Computer Sales and Services industry is really a large industry and very much active in most countries of the world.
According to statistics, in the united states of America alone, there are about 18,173 registered and licensed (big, medium scale and small) computer manufacturing companies scattered all across the United States responsible for employing close to 94,791 people and the industry makes over a the sum of $29 billion yearly.
The industry enjoyed -0.4 percent yearly growth within 2012 and 2017. It is essential to state that Apple Inc., Best Buy Co. Inc. and Fry’s have lion shares of the available market in this industry.
Computer sales account for an estimated 44.0 percent of industry revenue in the year 2017. Products in this segment include laptops and desktops. Laptop sales are higher than that of desktops.
Where as desktops were historically the most commonly purchased computer product, the falling price of computers and computer components in the past five years reduced the premium that laptops once commanded over desktops.
A majority of consumers’ prefer laptops for their portability, augmented by the increasingly wireless data infrastructure. Nevertheless, desktops still maintain advantages in niche market, particularly with gaming enthusiasts and computer power users who like a desktop computer’s superior upgrade potential, ease of repair and customizability.
Without doubt, everyone will quite agree that the computer sales and services industry has come to stay and also, it’s one industry that plays key roles not only in the world of business, but also in almost all aspects of what goes around worldwide today as long as computers are involved.
The Computer Sales and Services industry is really an open industry hence a low level of market share concentration. Even though large multiservice agencies work in the industry, revenue is as well spread among thousands of small computer stores and repair centers.
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COMPUTER SALES AND SERVICE BUSINESS PLAN, STEPS TO FOLLOW.
Below are the steps to follow to setup your computer and service business.
Part 1 of 3
Setting Your Skills and Goals With the Market.
1. Assess your skill set. It looks reasonable to assume that anyone harboring ideas of starting a computer business has a deep familiarity with computers and related systems already.
The particulars of your training and experience, and your readiness to learn more, are important in determining the type of computer business that is best suited to your talents.
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- Have you ever dissected, reassembled, or repaired a computer? Is all major operating systems familiar to you? Have you worked in the computer field for the first time? Honestly assess your willingness to start a computer business, or ask someone else with industry knowledge help you make the assessment.
- Completing a degree in the computer field will surely help you in starting a business, but it is unlikely that most customers will like to see your diploma. More essential is your ongoing gathering of experience, whether via education, training, or employment.
- Certification is a good way to show expertise, though. You may want to seek A+ certification from the Computer Technology Industry Association (CompTIA), or the related N+ network certification, or even become a Microsoft Certified System Engineer (MCSE). These can help give your business card an air of legitimacy.
2. Analyze the local market.
Just as any small business, you need to consider the local demographics carefully, the identity plus needs of your target population, and the exact products and services they are likely to desire. How can you set your planned business to meet these conditions?
- In this so-called “post-PC era,” you may see demand for traditional computer sales, service, and/or support to be much reduced, especially among a younger, tech-savvy population. However, especially in areas with older populations and/or small-town and rural areas, you may find a higher percentage of people in need of PC support and repairs. Remember, you’ll need to keep up with the latest technology; most of your potential customers do not (and will not)
3. Consider your business options.
Despite the changes in technology and consumer tastes, there are still opportunities to start a business based on sales of computers, parts, or accessories; troubleshooting and/or training; editing and design services and repairs or refurbishments. The strategy is flexibility and an ability to change along with the technology.
- New technology can make life easier, but most consumers see it to as another layer of confusion. General set-up and troubleshooting tasks, such as setting up printers and wireless networks, data recovery and wiping, and media archiving or editing, might remain a viable component of your business, even if PC repair service requests decrease.
- If you’re an expert on computers and related technology, and can build a good reputation, you should be able to get a niche for your computer business.
4. Set your goals.
When setting your computer sales and service business plan, you should consider if you want to do it as a side job, or a source of supplementary income. Or if you hope to build the business into your full-time career. Either way, it is really a good idea to start small and determine the market and prospects for your business over a period of time.
- If you want to keep your computer business as a part-time job, then keeping your focus on repairs and troubleshooting may suffice.
- Building your business into a full-time occupation, moreover, may require more diversification of the products and services you provide, perhaps by selling parts, accessories, or entire systems. You’ll need to draw in a loyal client base then build a positive reputation in the community.
Succeeding in the Computer sales and service Business.
1. Be up-to-date.
Even if your business is focused mainly on fixing obsolete desktops for customers not interested in making a change, you should maintain your expertise on emerging technologies. Complacency in a field that changes as fast as computer technology can leave you behind the curve before you know what has happened.
- Even your focus are computers, expect people to seek help and guidance with all sorts of mobile technology, from phones to tablets to watches. You may or may not want to go into the mobile tech sales and/or service business — consider the increased inventory demands, for instance — but being able to offer general troubleshooting, training, and support on the latest devices may be very useful.
- If part of your business includes home service calls, the important toolkit you take with you will continue to shift along with technology. However, you can get a good list of basic equipment you’ll need (for the time being) at https://www.technibble.com/categories/starting-computer-repair-business/.
2. Make customer service your priority.
If you possess terrible people skills, it may not matter how great you are with the machines — your computer sales and service business is not likely to succeed.
When customers have a computer problem or need, they expect efficient, fast, effective service that is also explained to them in a way that can be vividly understood by even computer novices.
- You’ll deal with some panicked customers who think they’ve just lost all their vital files, irate customers who want immediate help at 10 p.m., and some hovering customers who want to supervise (and ask about) every move you make. You should be able to keep calm, courteous, and patient. As a small business, you may not likely to be able to match the prices of your larger competitors — the personalized service you provide needs to offset this disadvantage.
3. Build identity of your brand.
A new computer sales and service business, just like any other small business, should make a quick and lasting impression in order to survive.
Even if you’re running your business out of your home office, you need to build a consistent brand that establishes awareness and shows quality and reliability.
- Put some thought to your business name, logos, signage, marketing, etc. build a professional look that presents your business as legitimate and lasting.
- Referrals will be important to your business. Always give out professional-looking business cards to your existing customers, and consider offering discounts or rewards for referral. Giving some free service or equipment is a small price to pay in order to grow your customer base.
- Especially if you don’t have a physical store, create your business website and/or social media presence appear professional and interconnected to your overall brand.
4. Think about location of your business.
A successful computer sales and service business can primarily operate out of your own home, in customers’ homes, or in an office / store location. Weigh the pros and cons of your options, keeping in mind your goals and your budget for the business.
- For instance, working from home offers more flexibility and less overhead costs, but also offers less visibility and possibly more distractions. A well-placed storefront adds to your visibility and helps legitimize your business in the mind of public, but it costs money and tends to lock you into a more rigid schedule.
- If you focus on computer repairs, working in your own shop may reduce distractions and save you time and travel money, but customers may be more comfortable with you working on the equipment in their homes. (Your potential liability will also be reduced when you don’t take the equipment with you.)
Starting a Small Business: Some Basics To Help You.
1. Start with a business plan.
No matter what business you are going into, you should always begin by developing a detailed business plan. It will describe the nature of your business, the products / services you will provide, your marketing plan, budget, and target customer base, and project the growth of your business for several years to come.
It is the guidebook for developing your business, and your “sales pitch” to potential investors or financial contributors.
Wikihow.com has provided how to write a business plan, you can read it and see the best way to write your business plan.
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2. Protect your business and yourself.
Starting a legitimate business is not as easy as doing a little advertising and collecting money from customers.
In order to create a business that can grow and succeed, you need to understand the process of starting a business legally, collecting and paying taxes, obtaining insurance and any permitting, licensing, or certification requirements, and becoming an employer (if you should eventually hire help).
- You may want to save on taxes by letting customers pay cash “under the table” and not reporting the income, but this can give your business an air of illegitimacy (as well it should) for your customers. It’s better paying off the taxes and appear legitimate.
- How to Open a Small Business offers some good information on the legal requirements of establishing a business. The U.S. Small Business Administration website is also a nice resource; see, for instance, https://www.sba.gov/content/follow-these-steps-starting-business
3. Become a part of the community.
You’ll need the support of the community for your small business in order for it to succeed, of course. Engaging with and supporting the community with your business can help to create a mutually-beneficial relationship.
- Donate some of your time and expertise. Give your support at community events (with the requisite public recognition, of course). Make use of your advertising and branding to develop a sense of stability and permanence for your business, even in a field that changes as rapidly as computers.
- No matter the nature of your small business, you need to be visible, you should be reliable, and you need to provide a personalized experience that builds customer loyalty.
Conclusion on computer sales and service business plan.
The information above will certainly help in your computer sales and service business plan. If it’s what you want, then do it the right way.
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