Computer Shop Business Proposal

A computer shop business proposal is a document prepared by an entrepreneur who is seeking investors for his computer shop business. Sometimes, client companies or individual investors are looking for investment opportunities to increase their sources of income. At the same time, the individuals or companies may want to start or expand their business, for which they require capital. When these two come together, a business idea can be realized.

A computer shop, usually, includes items, such as hardware parts, new or used technological equipment, USBs, etc. Depending on what items need to be stored and sold in the computer shop, the required capital may vary. The proposal is then prepared, and investors are sought accordingly. Generally, when making a computer shop business proposal, the following details are included:

  • Executive summary.
  • Introduction of company profile.
  • Testimonials, if any.
  • Experience and expertise.
  • Linkages with the suppliers, if applicable.
  • Details of the computer shop, including items/products.
  • Financials and costing.
  • Profits and growth trends.
  • Benefits to the investor.
  • Wooing statements.
  • Terms and conditions.

If the investor would accept the proposal, he would release the investment money and the entrepreneur can open his computer shop. In the case of rejection, not only another investor has to be sought, but time and effort in preparing the proposal and correspondence would be wasted as well. Therefore, the computer shop business proposal should be thorough with the required details as well as it should serve as a marketing and promotional tool to convince the client and minimize the chances of rejection.

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Sample Template

Computer Shop Business Proposal

To:      Alison Smith
ABC Firm

From:  Mark Johns
XYZ Computer Shop
Chicago, Illinois 

22nd October 2020

Dear Ms. Smith,

Thank you very much for the meeting yesterday. We are extremely excited to start our Computer Shop business on Ashland Avenue, Chicago and looking forward to your company assisting us financially to set up this business. We have prepared this proposal for you, with all the details. We would like your company to have a look at the entire opportunity and share your assistance to support our business idea.

Let us know if you have any reservations or queries.

Regards,

Mark Johns

XYZ Computer Shop Business Proposal

Business Summary

Nowadays, computers are becoming one of the obligatory household items and technology is one of the fastest moving areas in the world. Computer services and sales industry evolve constantly because of the advancements in the latest technologies. Our aim is to compete with the world’s best in this industry and eventually become one of the top brands of computer services. We will provide all computer related products at competitive prices with sincerity and honesty. The XYZ computer shop will be selling all types of computers, including laptops, desktops, notepads, notebooks, software, and accessories. We will purchase these goods from local and international manufacturers and sell them at fair prices. As ABC is a top Venture capital firm and you support talented entrepreneurs, we would like you to provide us the necessary finances to start up our business.

Services

Our shop will be providing the following services and products:

  • Computer services
  • Printing services
  • IT Consultation
  • Internet services
  • Repair/maintenance services

Products

  • Desktops
  • Laptops
  • Notebooks
  • Notepads
  • Tablets
  • Software
  • Printers
  • Scanners
  • Keyboards
  • Hard Disks
  • USBs

Business Summary

Hours of operation:

Monday -Saturday: 11am -5pm

Location:

Ashland Avenue, Chicago

Items sold:

Computer services, products, and accessories

Workers:

3 workers will be hired

Objective

Our main objectives are as follows:

  • Provide computers to corporations, Universities, Schools, and Individuals. We would also like to work with customized workstations.
  • Supply a wide variety of accessories related to computers and electronics.
  • Recruit clients with annual service contracts so we can have a sustainable business model.
  • Manage IT hardware needs of corporations.
  • Provide repair and maintenance services to our clients.

Business ownership

We are currently 2 partners registered under the XYZ Computer Shop business. It will be a privately held business in Chicago.

  • Mark Johns/ owner
  • Nielson Johana/ owner

This business will contemplate a 50-50 equal partnership.

Registration

We have registered the name of the shop with the Department of Trade and Industry and Local Government Unit.

Location

For a computer shop, the location is the most important factor and on that depends the profitability of the business. We understand that foot traffic is also very important. The location that we have chosen is nearby a lot of Schools and Universities and a few corporate organizations. There is a 3,000 square feet shop available on Ashland Avenue, next to a Stationary shop and we think it is an ideal location to start the computer business.

Target Market

Our target market will be Corporate Organizations, Banks, Universities, Schools, and Individuals who own computers. Students need printing services and the accessibility of the internet to do their respective work. Sometimes people even bring their own laptops and connect them to do their work, so we will be providing these services as well.

Market Analysis

Computer owners and users need repair and maintenance services whether it’s a hardware or a software malfunction. According to the survey conducted in the area, there is a big range of individual as well as corporate customers. Moreover, there are a few Universities and schools nearby and all of these departments need computers and computer maintenance services.

Competitive Analysis

Computer business is a highly competitive industry and one has to be reliable and meet the objective effectively, in order to stay on top. Our competitive advantage will be our hardworking, qualified and experienced staff providing guidance and assistance to our customers, accordingly. There are currently 2 computer shops operating in the area and both of them are small scale retailers.

Marketing

We are planning to advertise in all mediums, print, Internet, Social Media, and Radio, about the shop. We will print ads in all the local newspapers and place ad banners on the internet to make people aware of our computer shop. Also,

  1. Website: We will create a website about the XYZ computer shop. We will mention all the products that are being sold, along with the prices and services we will offer.
  2. Social media pages: We will create social media pages and advertise the products sold at the shop.
  3. Newspaper: We will print ads in all the local newspapers.

Start-up Cost 

We would like ABC to initially grant us a loan of $75,000. Estimated start-up expense details are provided below:

 

                      Names Cost
Legal paperwork $1,000
Marketing $1,000
Rental $20,000
Computers $2,000
Printer Equipment $10,000
Accessories $10,000
Power supplies $10,000
Software $10,000
Inventory $80,000
Cash $5,000
Miscellaneous $1,000
Total $150,000

 

Legal paperwork includes getting approval from the concerned authorities, obtaining licenses and permits. Equipment includes furniture, shelves, electronic devices, display units, CCTV cameras, etc.

Running Cost

Expenses for each month will be the following:

                      Names Cost/month Cost /year
Employee Salaries $1,500 $18,000
Utility Bills $500 $6,000
Miscellaneous $500 $6,000
Total $1,500 $30,000

 

Loan Requirement

In order to set up this business and sustain it, we will be needing a sum of approximately $150,000. We will put in half of the amount and seek your esteemed firm to lend me $75,000, for a period of five years.

Sales Forecasts

This computer shop will surely attract a large number of consumers because of its specification and customer’s need for constant up-gradation. We are glad to inform you that we approached and have the consent of 10 companies who are willing to sign us for annual maintenance. On average, these contracts will be $300-$500 a month, per company. Furthermore, we will be managing the hardware needs of 20 offices in nearby towers. Based on our estimation, this will help us to generate a stable income of around $2000-$5000 per month. We are very optimistic and certain that we will break even within the first year and start generating profit by the end of the second year. Below is the sales forecast for the fiscal years, based on information collected on the field.

First 6 months: $150,000
First fiscal year: $210,000
Second fiscal year: $380,000

Future plan

  • We want to make XYZ an online store so people would be able to order computer related products online and get them delivered at their doorstep.
  • We would like to open more branches of XYZ computer stores all over the USA.

Approval

We would like to seek your approval to proceed with the necessary arrangements. After your approval, we will initiate the process and we must work on the Terms and Conditions for the future.

Contact Us

You can contact us with any of the following ways:

Phone: 223-1145511
E-mail: xyz@gmail.com

 

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