Start a Business (How to Start a Business in Pennsylvania)

Start a Business   (How to Start a Business in Pennsylvania)
Executive outline
This is the set up for a brand new business, Reardon pc Repair, LLC
by Henry Reardon, to be started domestically then distended throughout
the state and maybe more if results indicate this can be possible.
The mission of Reardon pc Repair (RCR) is to supply quick,
affordable repairs to workplace and residential computers. the target is to
become profitable among the primary 3 months, and to grow at a
quick however manageable pace.
In order to supply customers the fastest service, RCR can deem
youthful pc whizzes UN agency area unit students and have the time and
expertise to supply the service. they're going to even have the flexibleness to
arrive quickly and therefore the motivation to indicate off their experience.
To reach customers, we'll use restricted advertising, however primarily the
Internet and word of mouth from happy customers.
With nearly each business and family having many computers, and
a lack of quick service presently accessible, it's expected this business
could be productive quickly and will grow speedily.
Product or Service
The company can supply pc repair services each at its search and
at customers’ offices and houses. it'll sell pc components as necessary
to complete the repairs, and it'll additionally carry upgrades,
accessories, and peripherals, which can presumably be valuable to customers
needing repairs.
Market
The market would be nearly each business and family at each address
in the town, state, and country, since these days nearly everybody incorporates a pc.
Figures show nearly 250 million computers in use in America, and
that range is anticipated to grow to over three hundred million in 5 years.
The marketplace for the initial search would be a fifteen-mile radius, which
is a cheap driving distance for our staff. The population in
that space is three hundred,000 people, which might mean 240,000 potential customers,
based on the present level of 800 computers per one,000 people. The market wouldn't embody new computers, which generally return
with a annual guarantee. it might conjointly not embody those that
bought extended guarantees.
The growth trend for the business is 8–10% for subsequent decade.
Competition
The competition would be the approved repair retailers operating with
the computer makers. whereas these have the advantage of
being approved, analysis and knowledge has shown that they're
slow and don't meet customers’ want for a direct repair.
There is one pc shop inside a ten-mile radius of the projected
shop, and 2 a lot of inside a twenty-five-mile radius. Average
wait time for a born off repair is one week. the 2 nighest repair
services provide no on-the-scene repair. Shipping a pc to a dealer for
repair takes one to 2 weeks. Most customers want their pc
fixed inside each day or 2.
One potential supply for competition would be from staff or former
employees UN agency square measure asked to figure for patrons “on the side” at
a reduced rate. To discourage this, the corporate can have a contract
with staff with a noncompete agreement that specifies that
they will pay the corporate thrice what they earn. Also, agreements
with customers can embody a clause that they need the choice
to hire away one in every of our staff for a one-time $2,000 fee.
Marketing set up
The business are marketed through networking, net promoting,
advertising, and inventive promoting.
Networking are through the owner’s contacts, in addition as native pc
clubs and package stores. Some native retailers don't provide
service and that they have already indicated that they'd promote a
local business that might provide quick repairs.
A website would be joined to native businesses and community teams,
and to major pc repair referral sites. Advertising would come with the phone book and native pc club
newsletters. Studies have shown that newspaper and tv
advertising would be too big-ticket and not efficient for this sort
of business.
Creative advertising would come with vinyl writing on the rear window
of owner’s vehicle.
Production arrange
The company are going to be commerce the services of pc technicians and
computer elements. The owner can provide most of the services within the
beginning then add student technicians as required.
The elements can all be purchased ready-made from the makers,
except for cables, which may be created on Associate in Nursing as-needed basis abundant
cheaper than ready-made ones.
Employees
The employees are going to be students UN agency ar very knowledgeable
about computers. Some would decision them pc “geeks”—in a pleasant
way. they need intensive information of the workings of computers,
have immeasurable free time, need money, and would like to boast however
knowledgeable they're.
As students, they have already got insurance and don't would like fulltime
work. they might be obtainable as required. the corporate would pay
them $12 Associate in Nursing hour and mileage, that is quite the other job obtainable
to students, however isn't cost-prohibitive, considering the charge to
customers of $50 per hour.
Financial Projections
The minimum charge for a trip are going to be $75 on-the-scene and $50 inshop,
which will embrace one hour of service. The elements markup are going to be
the trade commonplace of 2 hundredth. the common client bill is calculable
to be $100, as well as labor and markup.

The labor price is calculable to be $30 per, decision together with time, taxes,
insurance, and mileage. The owner are calculable to handle seventy fifth of
the work the primary six months and five hundredth the second six months.
Rent, utilities, insurance, taxes, and different mounted prices square measure calculable to
be $3,000 per month.
Advertising and promotion expenses square measure expected to be $3,000 per
month.
Estimated variety of consumers can be:
First 3 months: ten per week
Second 3 months: twenty per week
Third 3 months: thirty five per week
Fourth 3 months: fifty per week
Estimated monthly revenue:
First 3 months: $4,000
Second 3 months: $8,000
Third 3 months: $14,000
Fourth 3 months: $20,000
Monthly financial gain and expense projection:
First 3 months:
Income $4,000
Labor $300
Fixed prices $3,000
Advertising $3,000
Net $2,300 loss per month
Second three months:
Income $8,000
Labor $600
Fixed prices $3,000
Advertising $3,000

Net $1,400 profit per month

Third three months:
Income $14,000
Labor $2,100
Fixed prices $3,000
Advertising $3,000
Net $5,900 profit per month
Fourth three months:
Income $20,000
Labor $3,000
Fixed prices $3,000
Advertising $3,000
Net $11,000 profit per month
Organization set up
The business can begin with the owner, Henry Reardon, and three
students WHO area unit consultants at laptop repair and area unit offered as
part-time employees on associate as-needed basis.
The owner can manage the business and do as several repairs as area unit
possible with the time remaining within the week.
One of the scholars, Peter Galt, can work when college within the search, and
the others, Dom Roark and Howard Taggert, area unit willing to figure on associate
on-call basis, either at the search or at customers’ homes.
As business grows, the corporate can recruit a lot of student staff
through the varsity job placement offices and at laptop clubs.
Management Team
The owner, Henry Reardon, are going to be the only real manager of the corporate.
He can use the accounting services of his bourgeois, Dave Burton.
The owner anticipates having the ability to supervise up to 10 staff.
When there area unit quite 10, the corporate can would like a manager to
take over programming and a few of alternative management functions.
Risks
Because the business doesn't need lots of capital, there'll be a
low monetary risk within the starting. the most important reason for failure
would be associate inability to urge the word out that the corporate exists and
can fill a necessity once it arises. For this reason, the foremost necessary
task within the starting are going to be selling and promotion.
As the company grows, the danger are going to be that computers can would like fewer
repairs, become more durable to repair, and become thus low-cost they're disposable.
To guard against this chance, the corporate can add
computer consulting services because it grows, in order that it'll forever have

something to supply laptop homeowners.
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