Business Plan for a Computer Breaker Company - Essay Example

Running Head: BUSINESS PLAN FOR A COMPUTER BREAKER COMPANY. Executive Summary Maverick Computer Breakers (MCB) is a New York-based company that offers Personal Computer (PC) breaker services to the PC owners and the organizations alike. The company is a proprietorship organisation currently however the business plans to make it a New York based LLC in next 2-3 years. Maverick Computer Breakers (MCB) was founded by a group of Engineering Students in the year 2009 while they were studying at their college. The company has been in existence for last two years, operations have been informal, picking up computers here and there. While it has filled some of student’s spare time, they are now ready to concentrate on developing this business into a more efficient source of revenue while helping the environment by offering a suitable recycling of the personal computers and accessories. In order to secure funds from the angel investors, the company has decided to come up with a business plan which can be presented to the prospective investors. The plan would also be helpful in creating internal review of the targets, milestones and deadlines. Maverick Computer Breakers (MCB) operates with low overhead, but seeks capital for expanding their operations. The Market Maverick Computer Breakers (MCB) has recognized various target segments which would be vigorously pursued. The biggest of them all is the Individual Consumer segment which wants to upgrade to the higher version of the computers.  The other segment which can be pursued vigorously is the organization segments. This segment consists of the organizations which use computers for their regular operations. As the new and faster computers come into the market these organisation want to dispose of their existing machines. In the current scenario, either they are not aware of the disposal process or they do not have time to pursue the disposal. MCB would help them achieve the disposal of their existing machines at a reasonable cost. Mission To establish Maverick Computer Breakers (MCB) as an important brand in the Computer breaking business that represents speed, efficiency and customer delight. The company will achieve this by using high quality customer service, doorstep PC collection facility, and extensive research into the computer recycling extending to e-waste recycling. By using this multi-channel approach the company expects to hit the niche market for Computer Breaking within our target market. Keys to Success Developing methods of Computer breaking or tying up with partners that helps MCB to complete the assigned tasks within the deadline assigned Encouraging and sustaining promotion of services through verbal publicity and references where existing clients refer MCB to other prospective clients Diagnosing the client’s needs by listening to their problem and providing a customized solution for a truly synergetic discussion which makes them understand the concept even when their understanding is not as clear Objectives Generate five commercial and 20 individual members for the MCB Online Computer breaking services Increase revenue steadily from 2009 to 2010. Achieve full hourly capacity by 10/1/10. The Services Maverick Computer Breakers offer a wide range of Computer Breaking Services. Following items represent the offered services: Tracking of E-Assets and customized support to dispose them off Recycling support and the destruction of data as needed Recycling of the PC products with an objective of maximum salvage value to the customers The most optimum solution provided to the client with minimum adverse impact to the environment Practical and ready to implement solution as compared to the landfills with E-waste Pricing Strategy Our pricing strategy is to position our services with a price that is competitive in the market and has a value for money approach. We have accomplished this by careful market comparisons and adjusting our services size. The organization would be focusing on long term clients and the operation on the basis of the Volume. Hence, the pricing strategy would be to offer the clients to become a member of the organizations’ membership scheme for availing the discounts on offer. The company would also strive to serve as many customers possible to collate the profit advantage from the high volume customers. The company would have a different pricing strategy for the premium customers. The premium customers would be given an advantage on the quick service and personal attention. This is required to tap on the commercial market which puts a premium on the turnaround time. Company Summary Maverick Computer Breakers (MCB) was founded by a group of Engineering Students in the year 2009 while they were studying at their college to provide a doorstep service in the field of computer breaking/recycling by partnering with the recycling industries and the clients requiring the breaking service. The organization was started with an objective to provide a revenue generating Computer breaking services as well as to help the environment by reducing the e-waste. Company Past performance The following data and graph gives the view of the past performance of the organisation since the company was started. The detailed analysis would be carried out after the organization completes one year of operation. Though the future prospects are high and are discussed in the later sections. Market Analysis Summary The company was founded for the purpose of replacement, recycling and breaking of computer parts. This is the core segment of the MCB. In future, other areas like salvaging of computer parts can be taken up and has been identified to be a future segment which can be developed as a major source of income. Individual as well as Commercial Clients will be served, however there are several institutions like academic, private-public, private or individuals like students or home based professionals who can provide MCB with a uniform work stack. The following pie chart represents the market for the Maverick Computer breakers as per the research conducted before starting the organisation. Strategy and Implementation Summary Maverick Computer Breakers will be making use of its expertise in the field of computing to get major market share. The expertise would further enable the organisation to offer best price to its clients by utilizing its less overhead and strategy to work on volumes. The last advantage, the Systematic Analysis Framework for the researching new ways to dispose of the e-waste by partnering with the existing top players in the market would an advantage to clients and the organisation alike. The marketing strategy will work hand in hand with the mix of clientele base. This will help MCB to get a steady stream of referrals from their clients. The marketing strategy will also make best use of the print media and suitable flyers would be posted in commercial hubs as well as Universities. The sales strategy would focus on conversion of prospective clients into customers. One important part of this strategy is conducting free regular sessions on why do we need to safely dispose of e-waste. These sessions would act as an introduction of MCB to new clients who are not sure if they will be getting any advantage from disposing off their e-waste. Maverick Computer Breakers feel that a high degree of prospective customers would become Clients in these free sessions. Competitive Advantage Doorstep e-collection facility is not offered by any organisation with a Unique Selling Point of customer service which is specialized and targeted. The experience and knowledge about each of the organisation engaged in the disposing of the e-waste and their methods puts the company in a different league. Following items clearly identify the differentiation in the MCB’s services: Individualized service The option of one-on-one discussion with the prospective client to explain them about the disposal of e-waste and the facilities provided by the MCB Specialized handouts prepared over several months of service to the clients Experience of explaining difficult concepts and knowledge in the area of e-waste management especially on Computer waste Framework of analysis would be common to all e-waste management exercise. This is a system where each exercise of e-waste management is documented and added to online database to advice the next exercise. This helps the e-waste manager as well as the sales person to explain to the prospective clients, the category of e-waste they are carrying and the formal problem solving techniques employed by MCB in paste, empowering the clients to learn with it on their own. This is different than most other competitors who assist the clients only with their queries rather than helping them understand the context of the issue. This approach addresses the current difficulty but it is not helpful for the clients with global problem solving techniques in e-waste management that provides clients with dedicated tools to help them with future problems. Marketing Strategy Staying ahead of the mercurial e-waste management strategies as well as maintaining a close contact with the existing clients is the key to success in the E-waste recycling process. It is critically important to be visible to all of the prospective clients. References by existing and past clients served become highly valuable in this Global world. A get together at the company premises during occasions like foundation day, meeting/greeting day of the year would give clients a chance to meet and mingle with e-waste managers. The networking focus is incorporated where the MCB would maintain the close interaction with the existing E-waste companies and the relevant standards groups. This makes the company become familiar with the relevant details as well as remaining aware of the global best practices to reduce cost and provide the delightful customer experience. Maverick Computer Breakers will place advertisements in the different newspapers to attract the prospective clients. The newspapers selected would be commercial as well University’s internal newspapers/magazines to make the advertisements effective as these are the ones which are the company’s targeted readership. Sales Strategy The visibility of the organisation and the references from the past clients as well as the word of mouth are important channels for sales. The message which would be conveyed is that the computer breaking (e-waste management) services are not just for commercial organisation but for the University computers as well for the student population as well. MCB will develop and maintain testimonials of past/current clients for sales pitch indicating just how helpful MCB has been to the clients in managing their e-waste. MCB will periodically offer a free session to provide leads which can be converted with an opportunity to understand the e-waste management and check for themselves the effectiveness of the service. This event is expected to convert many prospective customers into the clients and the people who would not have considered an e-waste management service may like to go for this. Another focus of the sales strategy would be to ability for clients to become a member of the MCB online service for a long term e-waste management consultancy and breaking services. By becoming a member, the clients pay less per consultancy, MCB makes more per hour, and it promotes long term association and committed work stack for MCB. Sales Forecast In order to predict the future sales in a conservative way, the sales forecast is developed. The Sales is expected to increase slowly initially and would pick up as more clients are served and the company would receive references and testimonials from them. Following table and chart details yearly sales on the various target customers category. Milestones Several milestones will be set for MCB as they are helpful in monitoring the progress of the organization. This is to follow a realistic, lofty goal with the objective of expanding the business model to a full time and a profitable revenue source. The following table notes the specific milestones and the timeline for completion of each of them. Break-even Analysis The maximum costs of the business would include gas and transportation to meet with clients away from the home and occasional external meeting. The team has rented office/meeting room for the business. Additionally, additional cost is of Internet service provider fees with additional variable cost of 3 computers every 1 year. The fee charged from clients would cover any variable costs of service. Fixed costs are limited as well. References Creative Recycling, Electronics Recycling Team of experts (2009), [Internet], Available from: http://www.crserecycling.com/, Accessed on: 22 Jun 2009 Grossmen, Elizbeth, High tech trash: digital devices, hidden toxics, and human health (2006), Island Press Starting up, BBC Business News (2009), [Internet], Available from: http://www.crserecycling.com/, Accessed on: 22 Jun 2009 Read More