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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.
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.
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.
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.
| Start-up Expenses | ||
| Legal | $252,800 | |
| Consultants | $0 | |
| Insurance | $33,000 | |
| Rent | $26,000 | |
| Research and Development | $28,000 | |
| Expensed Equipment | $54,000 | |
| Signs | $4,100 | |
| TOTAL START-UP EXPENSES | $397,900 | |
| 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 FUNDING | ||
| Start-up Expenses to Fund | $397,900 | |
| Start-up Assets to Fund | $1,134,900 | |
| TOTAL FUNDING REQUIRED | $1,532,800 | |
| Assets | ||
| 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 | ||
| Liabilities | $29,000 | |
| Current Borrowing | $0 | |
| Long-term Liabilities | $0 | |
| Accounts Payable (Outstanding Bills) | $44,000 | |
| Other Current Liabilities (interest-free) | $0 | |
| TOTAL LIABILITIES | $73,000 | |
| Capital | ||
| Planned Investment | $1,532,800 | |
| Investor 1 | $0 | |
| Investor 2 | $0 | |
| Other | $0 | |
| Additional Investment Requirement | $0 | |
| TOTAL PLANNED INVESTMENT | $1,532,800 | |
| Loss at Start-up (Start-up Expenses) | $360,600 | |
| TOTAL CAPITAL | $1,893,400 | |
| TOTAL CAPITAL AND LIABILITIES | $1,966,400 | |
| Total Funding | $1,532,800 | |
Services
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.
Business plan for investors
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.
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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 Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Individuals | 27% | 31,000 | 32,000 | 33,000 | 35,000 | 37,000 | 10.00% |
| Small/ Large Businesses | 30% | 34,000 | 35,000 | 36,000 | 37,000 | 38,000 | 10.00% |
| Educational Institutes | 25% | 24,000 | 25,000 | 26,000 | 27,000 | 28,000 | 10.00% |
| Government Organizations | 18% | 19,000 | 20,000 | 22,000 | 23,000 | 24,000 | 11.00% |
| Total | 100% | 108,000 | 112,000 | 117,000 | 122,000 | 127,000 | 10% |
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
- We have extremely skilled and collaborative staff.
- We are highly client-oriented and are willing to go the extra mile to satisfy our customers.
- Customers can book our services through our website.
- 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
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Hardware Repairs/ Maintenance/ Upgradation | 41,000 | 43,460 | 46,068 |
| Software Repairs/ Maintenance/ Upgradation | 40,000 | 42,400 | 44,944 |
| Computer, Laptop and Mobile Accessories | 32,000 | 33,920 | 35,955 |
| Database Management System Development | 12,000 | 12,720 | 13,483 |
| TOTAL UNIT SALES | 125,000 | 132,500 | 140,450 |
| Unit Prices | Year 1 | Year 2 | Year 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 |
| Sales | |||
| 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 Costs | Year 1 | Year 2 | Year 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 1 | Year 2 | Year 3 | |
| Co-Manager | $13,000 | $14,300 | $15,730 |
| Computer Repair Technicians | $75,000 | $82,500 | $90,750 |
| Software Developer | $11,000 | $12,100 | $13,310 |
| Accountant | $9,000 | $9,900 | $10,890 |
| Sales Executives | $9,000 | $9,900 | $10,890 |
| Store Manager | $10,000 | $11,000 | $12,100 |
| Receptionist | $8,000 | $8,800 | $9,680 |
| Drivers | $14,000 | $15,400 | $16,940 |
| 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 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.19% | 8.22% | 8.28% |
| Long-term Interest Rate | 8.39% | 8.41% | 8.47% |
| Tax Rate | 23.78% | 24.33% | 25.02% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
| Brake-Even Analysis | ||
| Monthly Units Break-even | 5341 | |
| Monthly Revenue Break-even | $131,600 | |
| Assumptions: | ||
| 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 1 | Year 2 | Year 3 | |
| Sales | $5,344,000 | $6,570,982 | $8,079,680 |
| Direct Cost of Sales | $4,970,000 | $5,964,620 | $7,303,400 |
| Other | $0 | $0 | $0 |
| 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% |
| Expenses | |||
| Payroll | $149,000 | $163,900 | $180,290 |
| Sales and Marketing and Other Expenses | $124,000 | $126,000 | $127,000 |
| Depreciation | $2,230 | $2,340 | $2,450 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,190 |
| Insurance | $1,900 | $2,000 | $2,100 |
| Rent | $3,200 | $3,300 | $3,400 |
| Payroll Taxes | $35,000 | $37,000 | $39,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $318,230 | $337,540 | $357,430 |
| Profit Before Interest and Taxes | $55,770 | $268,822 | $418,850 |
| EBITDA | $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/Sales | 0.83% | 3.27% | 4.15% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 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 |
| Expenditures | Year 1 | Year 2 | Year 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 |
| Dividends | $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 | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $271,000 | $303,520 | $333,872 |
| Accounts Receivable | $24,000 | $26,880 | $30,213 |
| Inventory | $4,100 | $4,592 | $4,900 |
| 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 Capital | Year 4 | Year 5 | Year 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 |
| Earnings | $193,000 | $210,370 | $231,407 |
| 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 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.22% | 8.00% | 8.86% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.20% | 10.19% | 11.29% | 9.80% |
| Inventory | 5.38% | 5.96% | 6.60% | 9.90% |
| Other Current Assets | 2.10% | 2.33% | 2.58% | 2.40% |
| Total Current Assets | 149.70% | 152.00% | 152.00% | 158.00% |
| Long-term Assets | 11.34% | 11.44% | 11.57% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.91% | 4.95% | 4.99% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.58% | 7.64% | 7.71% | 7.38% |
| NET WORTH | 100.90% | 101.71% | 102.64% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.88% | 97.44% | 100.17% | 99.00% |
| Selling, General & Administrative Expenses | 94.30% | 96.85% | 99.56% | 97.80% |
| Advertising Expenses | 1.53% | 1.57% | 1.62% | 1.40% |
| Profit Before Interest and Taxes | 41.09% | 42.20% | 43.38% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 34 | 35 | 35.875 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 73.49% | 74.70% | 75.59% | 75.00% |
| Pre-tax Return on Assets | 94.79% | 99.53% | 104.51% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.04% | 34.06% | 35.12% | N.A. |
| Return on Equity | 54.99% | 56.69% | 58.45% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 31 | 32.55 | 33 | N.A. |
| Accounts Payable Turnover | 15.1 | 16 | 16.8 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $233,400 | $246,470 | $260,273 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.86 | 0.87 | 0.87 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.04 | 29.09 | N.A. |
| Sales/Net Worth | 2.2 | 2.3 | 2.3 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
Download Example Computer Repair Business Plan in pdf
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