Computer Repair business plan for starting your own shop

Starting a computer repair business is undoubtedly a profitable venture. In this era, computers have become an integral part of offices, industries, organizations, institutes, and even homes. Any enterprise that uses computers to manage its operations also needs some authentic computer repair services to timely maintain, repair, and upgrade the computers.

Thus, if you are thinking about starting this business, you don’t need to worry about the scope and opportunities. Just focus on how to open a computer repair business. For that, you will need to make a business plan for computer repairs, as the first step. In case, you don’t know how to create a comprehensive computer repair business plan pdf, we are providing here the business plan for a startup, PC Fix.

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Executive Summary

2.1 The Business

PC Fix will be a licensed and registered computer repair business startup. The business will be based in Boston. The business will provide computer repair, maintenance, and upgradation services to individual customers, and small and large business setups.

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2.2 Management of Computer Repair Shop

Computers can get software and hardware problems anytime. Therefore, if you want to start a computer repair business you must have adequate staff. So that you can provide your customers with instant support.

While you decide your strategy about how to set up a computer repair business, you should start gathering a skillful workforce. To manage your business, you will also be needing experienced supervisors to monitor all aspects.

2.3 Customers of Computer Repair Shop

Before researching how to start a computer repair business you should explore who will be your customers. Knowing your customers will help you in amassing the equipment and staff that could meet their demands.

PC Fix identified its customers as individuals who possess their personal computers, small and large businesses, educational institutes, and government organizations.

2.4 Business Target

Our aim is to become the most renowned computer repair business within a year of our launch. Our financial targets to be achieved over the next 3 years are demonstrated in this table.

3 Years Profit Forecast - Computer Repairs Business Plan
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Company Summary

3.1 Company Owner

Steve Wayne will be the owner of PC Fix. Steve has an Associate Degree in Computer Science. He has worked as a computer support specialist for three years at Boston Finance Commission.

3.2 Why the computer repair shop is being started

Steve gained extensive experience in his field during his job. After three years he realized that he can earn multiple folds by becoming an entrepreneur. Considering his knowledge area he decided to start computer repair business plan pdf.

3.3 How the computer repair shop will be started

Step1: Plan your business

As a first step, you should plan everything about your computer repair business plan pdf and write it in your computer repair business description. If you don’t know what to include in a computer repair business plan pdf you can take help from this computer repairs business plan example. In this computer repair business plan sample we have listed everything about PC Fix including market analysis, sales business strategy, personnel plan, and financial plan.

Step2: Define your brand

After creating your computer repair business plan pdf, it’s now time to acquire the required licenses and setting up your physical presence. Meanwhile, you should also define your business values and aims to make people feel associated with your goals.

Step3: Start the recruitment

The next step is to initiate your hiring process to find the most competent employees.

Step4: Get ready to promote & market

After you’ve concluded all the above-mentioned steps, you should go for promoting your services.

Step5: Establish a web presence

These days, whenever people need any type of service, they search for it on Google. Therefore, it is very important to establish a strong web presence. It will enable you to come in top searches. And it will also allow you to attract more people by showing them others’ feedback.

Startup Cost - Computer Repair Business Plan
Start-up Expenses 
Research and Development$28,000
Expensed Equipment$54,000
Start-up Assets$322,000
Cash Required$333,000
Start-up Inventory$54,000
Other Current Assets$200,500
Long-term Assets$225,400
TOTAL ASSETS$1,134,900
Total Requirements$1,532,800
Start-up Expenses to Fund$397,900
Start-up Assets to Fund$1,134,900
Non-cash Assets from Start-up$1,510,900
Cash Requirements from Start-up$367,500
Additional Cash Raised$54,000
Cash Balance on Starting Date$34,000
TOTAL ASSETS$1,966,400
Liabilities and Capital 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$44,000
Other Current Liabilities (interest-free)$0
Planned Investment$1,532,800
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$360,600
Total Funding$1,532,800
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    Before owning a computer repair business you should decide your services. Through this, you will be able to purchase the right equipment and hire the right staff. In this computer repair business plan template we are listing the services of PC Fix.

    • Hardware Repairs/ Maintenance/ Upgradation

    We’ll also provide computer hardware repairs. Hardware issues are very common in computers. People often complain about screen freezes, blue-screen, file corruption errors, and abnormal shutdowns. They are all in actual hardware issues.

    Along with it, we will provide regular maintenance and upgradation services on an instant basis as well as on monthly and yearly contracts.

    • Software Repairs/ Maintenance/ Upgradation

    We will troubleshoot and resolve software problems and faults. When hired on a monthly or yearly contract, we’ll ensure regular maintenance and upgradation of software.

    • Computer, Laptop and Mobile Accessories

    We will also offer computer and cellphone accessories such as network interface cards, batteries, speakers, headsets, USB flash drives, etc.

    • Database Management System Development

    Our last service will be for businesses, institutes, and organizations. In this, we will develop a cost-effective database management system for them to manage large and irregular datasets.

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    Marketing Analysis of Computer Repair Shop

    Before starting computer repair business it is essential to carry out a detailed marketing analysis. Marketing analysis allows you to identify ongoing and forthcoming market trends. That will eventually enable you to recognize

    • The customers that may be directly or indirectly interested in your services.
    • The unoccupied opportunities to serve your target customers.
    • The ways that can best capture the attention of your target customers.
    • The product prices that can help you draw customers as well as earn profit.

    Marketing analysis should be done systematically. If you don’t know what to include in a marketing plan, you can take help from here. In this blog on how to write a business plan for computer repairs, we’re providing the marketing analysis done for PC Fix.

    5.1 Market Trends

    In the United States, almost everyone possesses a personal computer, laptop, or cellphone. Along with it, to manage large data sets and to work on research areas, government organizations, educational institutes, and businesses use computer-based labs and systems. With these electronic gadgets, come their hardware and software issues. Therefore, a computer repair business is needed more than ever.

    Currently, more than 41k computer repair businesses are running in the U.S. according to IBISWorld. The market size until 2020 is reported to be $18 billion. Moreover, the industry has also acted as a source of employment for more than 124k people.

    5.2 Marketing Segmentation

    Before opening a computer repair business, you should identify the groups of your target customers. Doing this will enable you to recognize their expectations, needs, and purchasing capabilities.

    As computers are used in nearly every field now, the customers of the computer repair business belong to various walks of life. The major groups of customers as identified by PC Fix are given below.

    Marketing Segmentation - Computer Repairs Business Plan
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    5.2.1 Individuals

    The first group of our target customers comprises people and students who have their personal computers and laptops. This category gets really worried on encountering any faults/ problems with their devices. Therefore, we expect them to visit our shop frequently for hardware/ software repairs and also for purchasing electronic accessories.

    5.2.2 Small & Large Businesses

    The second group of our target customers will be businesses. Nowadays companies use computers to monitor their business, cash flows, and to perform their work. Thus, they are expected to avail of our services on a contract basis as they need regular maintenance and upgradation.

    5.2.3 Educational Institutes

    Our third category comprises educational institutes that have established computer labs for study, research, and management purposes.

    5.2.4 Government Organizations

    Last we also expect government organizations based in our city to be our customers for their computer repairs and upgradation.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Small/ Large Businesses30%34,00035,00036,00037,00038,00010.00%
    Educational Institutes25%24,00025,00026,00027,00028,00010.00%
    Government Organizations18%19,00020,00022,00023,00024,00011.00%
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    5.3 Business Target

    In your computer repair business model you should clearly define your computer repair business plan pdf targets to be achieved over a specified time. This can help you in directing your workforce and your resources towards a common goal.

    PC Fix aims at

    • Earning a net profit margin of $28k per month by the end of the third year
    • Earning an average rating above 4.65 by the end of the first year
    • Maintaining a CSAT score above 90%
    • Achieving a customer retention rate of 90% by the end of the first year

    5.4 Product Pricing

    Our prices are slightly lower than that of our competitors. This is because we want to get introduced to a large number of people as soon as we get launched.

    Marketing Strategy

    To capture the attention of your target customers amid huge competition, it is necessary to have an efficient sales strategy. In this computer repair business proposal we are providing computer repair business marketing plan of PC Fix. So that you can learn what can be done to stay competitive and successful.

    6.1 Competitive Analysis

    1. We have extremely skilled and collaborative staff.
    2. We are highly client-oriented and are willing to go the extra mile to satisfy our customers.
    3. Customers can book our services through our website.
    4. Only we in our vicinity are providing computer and cellphone accessories. And that is something that will help us draw more customers.

    6.2 Sales Strategy

    To attract our target customers, we will:

    • Establish a strong web presence by making it SEO
    • Advertise our services through Google Local ads service
    • Provide a 40% discount on all of our services except PC accessories for the first 3 months of the launch
    • Provide a 30% discount to organizations, businesses, and institutes on a 6-month maintenance contract.

    6.3 Sales Monthly

    Sales Monthly - Computer Repair Business Plan

    6.4 Sales Yearly

    Sales Yearly - Computer Repairs Business Plan

    6.5 Sales Forecast

    Unit Sales - Computer Repair Business Plan
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    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Hardware Repairs/ Maintenance/ Upgradation41,00043,46046,068
    Software Repairs/ Maintenance/ Upgradation40,00042,40044,944
    Computer, Laptop and Mobile Accessories32,00033,92035,955
    Database Management System Development12,00012,72013,483
    TOTAL UNIT SALES125,000132,500140,450
    Unit PricesYear 1Year 2Year 3
    Hardware Repairs/ Maintenance/ Upgradation$48.00$55.68$64.59
    Software Repairs/ Maintenance/ Upgradation$40.00$46.40$53.82
    Computer, Laptop and Mobile Accessories$42.00$48.72$56.52
    Database Management System Development$36.00$41.76$48.44
    Hardware Repairs/ Maintenance/ Upgradation$1,968,000.00 $2,419,852.80 $2,975,451.00
    Software Repairs/ Maintenance/ Upgradation$1,600,000.00 $1,967,360.00 $2,419,065.86
    Computer, Laptop and Mobile Accessories$1,344,000.00 $1,652,582.40 $2,032,015.32
    Database Management System Development$432,000.00 $531,187.20 $653,147.78
    TOTAL SALES$5,344,000.00 $6,570,982.40 $8,079,679.96
    Direct Unit CostsYear 1Year 2Year 3
    Hardware Repairs/ Maintenance/ Upgradation$46.00$51.00$60.00
    Software Repairs/ Maintenance/ Upgradation$36.00$41.00$47.00
    Computer, Laptop and Mobile Accessories$39.00$45.00$51.00
    Database Management System Development$33.00$38.00$44.00
    Direct Cost of Sales   
    Hardware Repairs/ Maintenance/ Upgradation$1,886,000.00 $2,216,460.00 $2,764,056.00
    Software Repairs/ Maintenance/ Upgradation$1,440,000.00 $1,738,400.00 $2,112,368.00
    Computer, Laptop and Mobile Accessories$1,248,000.00 $1,526,400.00 $1,833,715.20
    Database Management System Development$396,000.00 $483,360.00 $593,260.80
    Subtotal Direct Cost of Sales$4,970,000.00 $5,964,620.00 $7,303,400.00

    Personnel plan

    When you write a business plan computer repair shop, you should also include a list of required employees in it. Through this, you’ll be able to define a criterion to select the most competent employees. Moreover, make sure that you also throw light on their average salaries for at least 3 years in your personnel plan.

    7.1 Company Staff

    Steve will be the CEO himself. However, to run his business he will hire the following people.

    • 1 Co-Manager/ Supervisor to procure equipment & see overall operations
    • 8 Computer Repair Technicians
    • 1 Software Developer to develop management software & company’s website
    • 1 Accountant to maintain financial records
    • 2 Sales Executives to promote the company and negotiate contracts
    • 1 Store Manager (to manage accessories display and sales)
    • 1 Receptionist
    • 2 Drivers

    7.2 Average Salary of Employees

     Personnel Plan   
     Year 1Year 2Year 3
    Computer Repair Technicians$75,000$82,500$90,750
    Software Developer$11,000$12,100$13,310
    Sales Executives$9,000$9,900$10,890
    Store Manager$10,000$11,000$12,100
    Total Salaries$149,000 $163,900 $180,290

    Financial Plan

    A considerable amount is needed to build a computer repair business. If you want to make sure that your investment group to business plan doesn’t go waste, you must do accurate financial planning before you actually start your business. An accurate financial plan includes cash flow tables and diagrams, projected profit and loss, gross margins, and balance sheets. Combined, all these segments provide you with the idea of how to cover any unexpected financial loss. Or how much to keep in reserve etc.

    Here, we are providing the financial plan made for PC Fix, so that you can take a general idea of computer repair finances.

    8.1 Important Assumptions

     General Assumptions   
     Year 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.19%8.22%8.28%
    Long-term Interest Rate8.39%8.41%8.47%
    Tax Rate23.78%24.33%25.02%
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      8.2 Brake-even Analysis

      Brake-even Analysis - Computer Repairs Business Plan
       Brake-Even Analysis 
      Monthly Units Break-even5341
      Monthly Revenue Break-even$131,600
      Average Per-Unit Revenue$233.00
      Average Per-Unit Variable Cost$0.65
      Estimated Monthly Fixed Cost$163,100

      8.3 Projected Profit and Loss

       Pro Forma Profit And Loss   
       Year 1Year 2Year 3
      Sales$5,344,000 $6,570,982 $8,079,680
      Direct Cost of Sales$4,970,000 $5,964,620 $7,303,400
      TOTAL COST OF SALES$4,970,000 $5,964,620 $7,303,400
      Gross Margin$374,000 $606,362 $776,280
      Gross Margin %7.00%9.23%9.61%
      Sales and Marketing and Other Expenses$124,000$126,000$127,000
      Leased Equipment$0$0$0
      Payroll Taxes$35,000$37,000$39,000
      Total Operating Expenses$318,230 $337,540 $357,430
      Profit Before Interest and Taxes$55,770$268,822$418,850
      Interest Expense$0$0$0
      Taxes Incurred$11,154$53,764$83,770
      Net Profit$44,616$215,058$335,080
      Net Profit/Sales0.83%3.27%4.15%

      8.3.1 Profit Monthly

      Profit Monthly - Computer Repair Business Plan

      8.3.2 Profit Yearly

      Profit Yearly - Computer Repair Business Plan

      8.3.3 Gross Margin Monthly

      Gross Margin Monthly - Computer Repairs Business Plan

      8.3.4 Gross Margin Yearly

      Gross Margin Yearly - Computer Repair Business Plan
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        8.4 Projected Cash Flow

        Brake-even Analysis - Computer Repairs Business Plan
         Pro Forma Cash Flow   
        Cash ReceivedYear 1Year 2Year 3
        Cash from Operations   
        Cash Sales$56,000$60,480$65,318
        Cash from Receivables$17,000$18,360$19,829
        SUBTOTAL CASH FROM OPERATIONS$73,000 $79,570 $85,936
        Additional Cash Received   
        Sales Tax, VAT, HST/GST Received$0$0$0
        New Current Borrowing$0$0$0
        New Other Liabilities (interest-free)$0$0$0
        New Long-term Liabilities$0$0$0
        Sales of Other Current Assets$0$0$0
        Sales of Long-term Assets$0$0$0
        New Investment Received$0$0$0
        SUBTOTAL CASH RECEIVED$74,000 $80,000 $86,000
        ExpendituresYear 1Year 2Year 3
        Expenditures from Operations   
        Cash Spending$35,000$36,000$38,000
        Bill Payments$18,000$18,500$19,000
        SUBTOTAL SPENT ON OPERATIONS$53,000 $54,500 $57,000
        Additional Cash Spent   
        Sales Tax, VAT, HST/GST Paid Out$0$0$0
        Principal Repayment of Current Borrowing$0$0$0
        Other Liabilities Principal Repayment$0$0$0
        Long-term Liabilities Principal Repayment$0$0$0
        Purchase Other Current Assets$0$0$0
        Purchase Long-term Assets$0$0$0
        SUBTOTAL CASH SPENT$54,000 $58,320 $62,986
        Net Cash Flow$14,800$15,600$16,500
        Cash Balance$24,000$25,000$27,000

        8.5 Projected Balance Sheet

         Pro Forma Balance Sheet   
        AssetsYear 1Year 2Year 3
        Current Assets   
        Accounts Receivable$24,000$26,880$30,213
        Other Current Assets$1,000$1,000$1,000
        TOTAL CURRENT ASSETS$290,000 $324,800 $365,075
        Long-term Assets   
        Long-term Assets$10,000$10,000$10,000
        Accumulated Depreciation$18,000$20,160$22,680
        TOTAL LONG-TERM ASSETS$22,000 $24,640 $27,720
        TOTAL ASSETS$293,000 $328,160 $369,180
        Liabilities and CapitalYear 4Year 5Year 6
        Current Liabilities   
        Accounts Payable$18,200$20,384$22,912
        Current Borrowing$0$0$0
        Other Current Liabilities$0$0$0
        SUBTOTAL CURRENT LIABILITIES$15,200 $17,024 $19,135
        Long-term Liabilities$0$0$0
        TOTAL LIABILITIES$14,000 $15,680 $17,624
        Paid-in Capital$29,000$30,000$30,950
        Retained Earnings$54,000$58,860$64,746
        TOTAL CAPITAL$276,000 $300,840 $330,924
        TOTAL LIABILITIES AND CAPITAL$290,000 $328,160 $369,180
        Net Worth$279,000$304,110$334,521

        8.6 Business Ratios

         Ratio Analysis    
         Year 1Year 2Year 3INDUSTRY PROFILE
        Sales Growth7.22%8.00%8.86%3.00%
        Percent of Total Assets    
        Accounts Receivable9.20%10.19%11.29%9.80%
        Other Current Assets2.10%2.33%2.58%2.40%
        Total Current Assets149.70%152.00%152.00%158.00%
        Long-term Assets11.34%11.44%11.57%12.00%
        TOTAL ASSETS100.00%100.00%100.00%100.00%
        Current Liabilities4.91%4.95%4.99%4.34%
        Long-term Liabilities0.00%0.00%0.00%0.00%
        Total Liabilities7.58%7.64%7.71%7.38%
        NET WORTH100.90%101.71%102.64%110.00%
        Percent of Sales    
        Gross Margin94.88%97.44%100.17%99.00%
        Selling, General & Administrative Expenses94.30%96.85%99.56%97.80%
        Advertising Expenses1.53%1.57%1.62%1.40%
        Profit Before Interest and Taxes41.09%42.20%43.38%33.90%
        Main Ratios    
        Total Debt to Total Assets0.18%0.18%0.17%0.40%
        Pre-tax Return on Net Worth73.49%74.70%75.59%75.00%
        Pre-tax Return on Assets94.79%99.53%104.51%111.30%
        Additional RatiosYear 1Year 2Year 3 
        Net Profit Margin33.04%34.06%35.12%N.A.
        Return on Equity54.99%56.69%58.45%N.A.
        Activity Ratios    
        Accounts Receivable Turnover7.77.87.8N.A.
        Collection Days100100100N.A.
        Inventory Turnover3132.5533N.A.
        Accounts Payable Turnover15.11616.8N.A.
        Payment Days272727N.A.
        Total Asset Turnover2.52.52.6N.A.
        Debt Ratios    
        Debt to Net Worth-0.04-0.03-0.04N.A.
        Current Liab. to Liab.111N.A.
        Liquidity Ratios    
        Net Working Capital$233,400$246,470$260,273N.A.
        Interest Coverage000N.A.
        Additional Ratios    
        Assets to Sales0.860.870.87N.A.
        Current Debt/Total Assets1%0%0%N.A.
        Acid Test2929.0429.09N.A.
        Sales/Net Worth2.22.32.3N.A.
        Dividend Payout000N.A.

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