Business Plan

Warpgate Industries

ABN: Click here to enter text.

Owner / Operator
Name: Jesse Fielder-Coleman
Address: 13/1041 Albany Hwy, St James
Tel: Click here to enter text.
Mob: 0450427914
E-Mail: jesse.fc@live.com

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 Business Plan
BUSINESS PROPOSAL PROFORMA

1. EXECUTIVE SUMMARY
1.1.Description of the business:
We provide the Luxury Experience to the Hardware (Computing & Computing
Solutions) aspect of the Information Technology Industry. The business at its
core, is simple enough. Hands on experience with the Client/ Customer from
start to finish. This allows for the system to be built specifically for the goal and
budget in mind with no compromise. Compromise in this matter of course refers
to purchasing systems that are mass produced. These mass produced systems
offers limited option, minimal testing, zero control over multiple factors like
power consumption & heat generation and most important of them all in the
modern world, personalized aesthetics.
1.2.Motives for entering the business enterprise:
To launch a career in IT with my own goals and responsibilities rather than
working for an existing company.
1.3.Business goals and objectives:
The ultimate goal is establish the company enough to host annual electronics
convetions. Smaller goals include branching out into reviews, and sponsorships.
1.4.The target market:
The main target market is to people who use high-powered computers,
specifically gamers, video producers, 3D designers, and so on. Due to the
service we provide however, we are confident we can appeal to anyone seeking
to purchase a desktop computer.
1.5.Financial assistance required:
NEIS
1.6.Financial summary:
Paste summary from financial spreadsheet here
1.7.Break even analysis:
Paste break even summary from financials spreadsheet here

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2. The Business Concept

Business Plan
2.1.ABOUT THE BUSINESS
2.1.1. Business Type
Online retail for bespoke computers
2.1.2. The vision for the business
Provide an easy, high quality service to ensure high customer satisfaction
2.1.3. Business goals
To grow into a known computer retailer.
2.1.4. Business objectives
Establish stable profit gain through base product/service. Branch out into
online media eg streaming platforms and reviews. Sponsorship deals for
high value alternative media content creators to boost advertising.

2.1.5. Key stakeholders

Jesse Fielder-Coleman
2.2.BUSINESS NAME
To be decided, currently Warpgate Industries
2.3.QUALIFICATIONS AND SKILLS
No formal qualifications. High knowledge of modern computer hardware.
2.4.LEGAL BUSINESS STRUCTURE
2.4.1. Description
Limited Liability Corporation
2.4.2. Legal and tax implications
GST will not be required for the first year.

3. MARKET RESEARCH
3.1.MARKET RESEARCH
3.1.1. Methods used
Surveys, competition research, trend research
3.1.2. Results
Results of the surveys and research showed there is a growing demand for
high-end computer systems with people who lack the knowledge to build
the PCs themselves or make informed decisions when ordering parts. This is
where the company comes in, filling the gap between retailers selling
usually overpriced PCs and ordering parts online and hazarding mistakes.
3.2.CURRENT STATE OF THE INDUSTRY (include trends & seasonal factors)
With regards to part supply, recent trends have caused certain compentent
prices to rise significantly which is both a positive and negative outcome:
Obtaining the parts will be more expensive but will benefit the final sale price of
assembled computers.
3.3.MARKET SEGMENT
My target market is consumer, targeted at people with digital based professions
and recreational interests.
3.4.CUSTOMERS

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 3.4.1. Customer profile

Business Plan
Local (Perth region), of 20-40 years old, predominantly male working in
computer related fields such as video editing/producing, 3D applications,
games media, etc.
3.4.2. Customers’ buying motives
The ideal customer is someone seeking a high quality service that provides
a high quality final product, who knows little about building computers and
needs that professional quality assurance for peace of mind.
3.5.BUSINESS ANALYSIS
3.5.1 SWOT Analysis
Strengths
Appeal of professional service provided at all steps of the sale process
while still remaining affordable.
Weaknesses
The expense of the product is relatively expensive.
Opportunities
The business concept takes advantage of a gap in computer retailers
that only provide mainly pre-built computers with high price markups.
Threats
Established competition (retail chains like Arrow Computers)
3.5.2PEST Analysis
Political
N/A
Economic
Fluctuating part prices, recent purchasing trends have had a large
influence on demand not quite meeting the supply thus causing price
increases.
Social
Target demographic is fairly limited in population.
Technological
Due to the long term nature of computers, repeat custom is extremely
limited.

3.6.COMPETITION AND COMPETITIVE ADVANTAGE

3.6.1. Major competitors
Major computer retailers: PLE Computers, Storm Computers, Austin
Computers, Arrow Computers
3.6.2. Competitive advantage
Business provides a service these retailers do not.

4. MARKETING PLAN
4.1. PRODUCT / SERVICE DESCRIPTION

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 Online based bespoke computer retailing with an emphasis on service and

Business Plan
communication.
4.2. PRICE OF PRODUCTS / SERVICES
Depends entirely on the build of the computer. Flat service fee, along with cost
of parts + mark-up and nominal delivery fee. No cost overhead for store means
prices will be competitive.
4.3.PLACE – LOCATION AND DISTRIBUTION
4.3.1. Location
Perth region
4.3.2. Advantages of the location
Relatively untapped market due to the isolation of perth from eastern
states.
4.3.3. Distribution
All products will be delivered and installed on-site.
4.4.PROMOTION AND ADVERTISING
4.4.1. Promotion and advertising approach
The main form of advertising will be mainly online based, such as banner
ads, however once computers begin selling I will push for word of mouth
and sponsorship deals to enhance brand awareness.
4.4.2. Basis of the approach
Due to the target market, this advertising approach is the most effective
since it provides the most exposure.

4.5. MONITORING MARKETING PERFORMANCE

4.5.1. Monitoring marketing activities
Since the main advertising platform will be online based, specifically ads,
having that accurate feedback available about potential customers will
support marketing immensely.
4.5.2. Customer requirements
Customers purchasing expensive, high end computers require the company
providing this product to be first and foremost knowledgeable about
computer systems. Having this knowledge will allow the customer to
commit to a purchase when they are presented with a quality build
alongside an assurance that what they are buying is worth it.
4.5.3. New opportunities
Opportunities such as price drops and new hardware releases become good
selling points.

5. OPERATIONS PLAN
5.1. BUSINESS PREMISES

5.1.1. Details
Home-operated office (unit)

5.1.2. Your workplace at home (if applicable)

I will be utilizing a single workspace to accommodate my main business PC
and assembly area.

5.1.3. Lease / Rental Details (if applicable)

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 My current rent is 200/week paid fortnightly. Permission to operate a

Business Plan
business is granted as long as no customers are on the premises.

5.2. LEGAL AND ADMINISTRATIVE REQUIREMENTS

5.2.1. Local, State or Commonwealth Government Regulations

To be obtained: ABN and business registrations.

5.2.2. Insurance
To be obtained: public liability insurance.

5.2.3. Contracts
No current contracts.

5.3. PRODUCTION PROCESS

5.3.1. Description of equipment

Parts are typical PC components, once obtained are assembled into a
complete computer system.

5.3.2. Raw material and stock

Stock will be acquired upon customer order, no stock is kept long-term.

5.4. MONITORING RESOURCES

5.4.1. Monitoring procedures

Little to no stock will be kept.

5.4.2. Maintenance procedures

No maintenance required.

5.5. ORGANISATION OF TASKS / DUTIES

5.5.1. Key Roles

Director

5.5.2. Responsibilities
Administration, customer service, product assembly, marketing.

5.5.3. Further skill development

Web development

5.5.4. Work schedule

Monday to Fridays, 9-5.

5.5.5. Contingency plans

The biggest issue is if a PC is damaged post-build. Order contracts will
contain an assurance of the product being delivered, so there will be a
contingency fund for unforeseeable damages that require any part
replacements. In this event the customer will be notified of a delay.

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 5.5.6. Minimising conflict (if applicable)

Business Plan
All contracts will ensure both parties (business and customer) benefit from
sales.

5.6. STRATEGIC RELATIONSHIPS

Mutual referrals with IT/tech support companies. If someone requires a new PC,
a technicial could refer my business. If one of my existing customers has a
problem and contacts me, I could refer the customer to a recommended
technician.

6. FINANCIAL PLAN
6.1. Establishment costs plant & equipment
(see attached)

6.2. Personal budget

(see attached)

6.3. Personal assets and liabilities

(see attached)

6.4. Source of funds

NEIS, sales

6.5. Sales mix

6.5.1. Year 1

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 6.5.2. Year 2

Business Plan
6.6. Cash flow forecast

6.6.1. Year 1

6.6.2. Year 2

6.7. Profit and loss statement

6.7.1. Year 1

6.7.2. Year 2

6.8. Break even analysis

52 weeks x 5 days = 260 days

Less public holidays 10
Less annual leave 0
Total working days for the
year = 250 days
250 days x 10 hrs = 2500 hours per year
Less 1 hrs per day unproductive time (Lunch)
250 days x 9.0 = 2250 productive hours
Personal Budget divided by productive hours

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 $17,610 / 2250 = $7.83

Business Plan
Business Expenses divided by productive hours
$58,922 / 2250 = $26.19
Total Hourly rate to break even = $34.01
Desired Income / Total Expenses $76,532
Weekly required income $2,142.91
Hrs to work each week = 63.00
Number of products/services required to sell each week.
Average price = #######
= 1 Sales needed per week
= 20 Sales needed per annum
Desired Income - per annum $76,532
Hourly rate to break even $34.01
No. of hours required to work each
week 63
Weekly income $2,142.91
Average price per service/sale $3,785.71

$17,610
Total Expenses from Personal Budget
$58,922
Plus Total Expenses from Business - Cashflow Year 1
Total Expenditure - Business and Personal $76,532

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