Transcript [Name of Business] - Mrs. A. Nguyen

“Ne razumijem kako da popravim moj
kompjuter, može li mi neko pomoći?”
Beta Bytes
LLC
Belma Ahmetovic
Zermina Velic
Grade 11
Age 17
1
Mission Statement
Opportunity




Beta Bytes currently provides a full suite of computer repair services on a
limited basis for relatives and close family friends in Hartford’s Bosnian
community
Judging from the large number (over 90%) of potential customers that
Beta Bytes is aware of, there is a significant opportunity to build a
business around this underserved ethnic group
Hartford’s Bosnian community is roughly 15,000 people and growing
Main stream service providers do not target this group because of the
language and cultural barriers
Mission Statement
Beta Bytes will provide professional, affordable, computer repair services
in a culturally sensitive manner. We guarantee there will be no hidden
costs.
2
Business Profile
Beta Bytes is a Computer Service Business that strives to
provide customers with full range technical assistance:






In the customer’s native language
At an affordable price ($40/hr)
With available phone support
At our site or the customer’s home/business location (for an additional cost of
$20 for in-home)
With a 24 hour repair guarantee for existing customers
Delivery and on-site pick up available (for an additional $15 fee)
Beta Bytes is a Limited Liability Corporation
This legal structure was selected to protect the owners from the liability
associated with difficult to value data (pictures, financial records, legal
documents, etc.), that comes with the territory in computer repair. The LLC
legal structure also requires less paperwork.
3
Qualifications

Six years of combined experience in computer repair services

Trained at a certified computer repair shop

Owners are trilingual, fluent in Bosnian (first language), English
second language) and currently learning Spanish

Owners will be CompTIA A+ Certified by June 2011

Owners will be enrolled in A+ Computer Hardware and
Operating Systems classes for the fall semester of 2010
4
Market Analysis
Industry Name
Computer Support & Repair in
Hartford’s Bosnian Community
Industry Size
$3,200,000
15,000
Total Bosnian Population
Population
Area
Hartford County,
Connecticut
Target Market
Typical Bosnian households
Potential
Market
Survey data taken from Mission
District:
 90% of Bosnian households have
one or more computers
Households on average had four
significant repair incidents
annually
6,000
Bosnian
Households
5,300
Target
Households
21,000
Available
Service
Units
5
Consumer Profile




By Location
◦ Hartford County, CT
By Population
◦ Bosnian households, head of
household between the ages of
21and 65, high school educated
By Personality/ Behavior
◦ Working adults with children and
sometimes extended families
By Income
◦ Predominantly middle income
households
6
Competitive Advantage
Geek
Gurus-to-Go
Beta Bytes
Good
Excellent
Excellent
Price
High
High/Medium
Low
Location
Nationwide
Nationwide
Hartford
County
Brand/Reputation
Good
Good
Good
Unique Knowledge
Partners with
Best Buy
Partners with
Corporations
Knowledge of
Bosnian
Squad
Quality of
Product/Service
7
Marketing Mix
People
Beta Bytes targets
middle income Bosnian
households, ages 21
to 65
Price
Promotion
Beta Bytes pricing is
more affordable than
national alternatives
Marketing
Plan
Place
Beta Bytes serves
consumers in
Hartford County, CT
Beta Bytes will be
promoted through
word-of-mouth,
Bosnian retailers &
website
Product
Professional, computer
service in Bosnian with
no hidden fees
8
Marketing Plan
Awareness
Purchase
Retention
Current & Short Term (1 month-6 months)
 Word of Mouth throughout the Bosnian
community
 Diagnostics fee waived if
repaired by us at that time
(saves money)
 Guaranteed 24 hour repair
turnaround for existing
customers
 Business Cards – European
retailers will display the cards
at point of purchase
 Service rate per hour is 50% of
national competitors
 No mark-up on
replacement parts for existing
customers
 Website - displayed on
business cards and found
through Bosnian web search
terms
 Unique “Shop with you/for
you” service
Long Term (6 months-1 year)
Advertise on Bosnian radio and
community television channels
Monthly cost,
by phase:
$50.00
Awareness
Cost saving annual service contracts
will be available in the future
$0.00
Purchase
Free online system checks for
existing customers
$50.00
Retention
9
Cost of Materials/Direct Labor
Definition of One Unit :
Two hour service visit
Cost of Sales Per Unit
Direct Labor
(Labor Cost per Hour)
$10.00
Time (in hours) to make
1 unit
Direct Labor Cost Per
Unit
120 minutes or 2 hrs
$20.00
Total Direct Labor Per Unit
Material Description
Cost/Total Quantity
Total Material Cost Per Unit
Variable Costs Per Unit (Transportation)
Cost of Sales Per Unit
$20.00
Cost Per Unit ($)
$0.00
$5.00
$25.00
10
Economics of 1 Unit
Definition of One Unit:
Two hour service visit
Selling Price per Unit
$100.00
Direct Labor Per Unit
$20.00
Materials Per Unit
Total COGS Per Unit
Variable Costs Per Unit
$0.00
$20.00
$5.00
Total Cost of Sales
$25.00
Gross Profit Per Unit
$75.00
11
Average Monthly Fixed Costs
Type of Fixed Cost
Entrepreneurial Stipend
Utilities (Internet, Phone, etc)
Advertising (Business Website + Cards)
Monthly Cost
$50.00
$100.00
$50.00
Insurance ($1M Liability)
$150.00
Rent (Home)
$150.00
Depreciation (Laptops + Software)
$100.00
Total Monthly Fixed Costs
$600.00
12
Time Management Plan
Free Hours
48
Business
Hours
20
School/
Study Hours
44
Sleep Hours
56
Business Schedule for a Typical Week
13
Monthly Sales Projections
180
160
140
120
100
80
60
40
20
0
Break-Even Units
8
Total Units
December
November
October
September
August
July
June
May
April
March
February
January
976
Full Capacity
1160
14
Projected Yearly Income Statement
Selling Price Per Unit
# of Units Sold
Total Sales
Total COGS
Other Variable Costs
$100.00
976
$97,600.00
$19,520.00
$4,880.00
Total Variable Costs
$24,400.00
Gross Profit
$73,200.00
USAIIRD (Yearly)
$7,200.00
Other Costs/Unforeseen
$1,000.00
Total Fixed Costs
$8,200.00
Profit before Taxes
$65,000.00
Less Estimated Taxes @25%
$16,250.00
Net Profit
$48,750.00
15
Start-up Investment
Item
Where I will buy this?
Cost of Item
2 Laptops with Wireless
Capability
Best Buy
2 Computer Business Kits
www.technibble.com
$100.00
Parts & Tools Inventory
Various Stores
$700.00
Paperwork for LLC
Secretary of State
$320.00
2 External Hard Drives 1TB
www.crunchdeals.com
$130.00
2 Norton & Symantec Master
Collections
www.symantec.com
$880.00
Already Owned (New)
CASH RESERVE
$1,800.00
Estimated TOTAL START-UP INVESTMENT
$3,930.00
Hours Needed
80 hrs
x
Wage
$10.00
=
Total Time Investment
$800.00
Total: $4,730.00
16
Return
…on Investment
Annual Net Profit
=
Start-Up Inv.
$48, 750.00
$4, 730.00
…on Sales
Annual Net Profit
Total Sales
=
1,031%
$10.31
50%
$48, 750.00
$0.50
$97, 600.00
17
Financing Strategy
For Total Start-up Investment
Source
Personal Savings
Amount
Debt
Equity
$4,730.00
Gift
X
Total:
$4,730.00
18
Social Responsibility Plan


Beta Bytes will donate 4% of their net profits to the
One Laptop Per Child Association.
Our consumers will be aware of this by the One
Laptop Per Child logo located on our business
website and business cards.
19
Business & Educational Goals
Long Term
Short Term
Business
 Get the business
formally up and running
to work out the “kinks”
 Grow service units to
50 per month
 Grow service units to
roughly 80 per month
 Expand target market
outside of the Bosnian
community to increase
density and profitability
Personal
Graduate from high school
with honors and enter top
university
Earn a Bachelor’s degree
while subsidizing college
costs with Beta Bytes’
earnings and profits
20
When your computer bites, we byte back.
Thank you for your consideration of
Beta Bytes
www.Beta-Bytes.com
*In the process of registering a domain.
21