3. Introduction
This presentation is about the company that I just set up to repair and
build custom computers.
I will be tackling six scenarios and suggesting possible solutions to the
problems and then picking the best solution that the company can adopt
to better its business.
This will hopefully give you a good insight into the operation and depth in
which you have to go to set up a computer company.
4. Target market
Possible consumers Figure 4
Computer gamers
Office workers
Self employed people
Small businesses i.e. shops, cafes
Social media company’s
5. Target market
Market research
Target customers Computer Gamers
What gamers want
Fast computers Figure 5
Custom built
Large data storage
Fast connection
Powerful software
Strong firewalls and virus protection
6. Target market
why I chose gamers
Gamers are known for spending large sums of money on custom
computers.
Average spend on custom built computers is anywhere between
£500-£3,500 in the UK (Pc world 2003)
Gamers constantly want new and updated systems and are
willing to pay for it as well as we can see from the figures on
spending.
This is a market which my competitors aren’t involved in and
being in my own premises means less expenses.
7. Targeting the customer
Targeting the customers
Advertising in computer magazines
Social network advertising
Local news papers
Figure 8
Flyers and leaflets
Figure 6 Figure 7
8. Targeting the customer
Best way to target the customer
Marketing tool Gaming magazines
Magazine advertising
Minimal advertising costs
Good level of exposure
Linked onto social network sites
Reviews in magazines
Magazines come out monthly
Lots of gamers buy gaming magazines
Figure 9
9. Targeting the customer
Why I have chosen to advertise in a magazine
one of the main reasons I chose to advertise in a computer
magazine is images and text is in a much higher quality due to
quality printing on glossy paper.
And by advertising in a gaming magazine you get your business
idea straight to the customers i.e. the computer gamers.
Magazines usually advertise on social network sites and give a
insight into what is in their magazine which could be a good way
of exposing the computer company.
10. Sales strategy
sales options
Online sales
Sales through magazines
Sales team
Sales through other computer sites Figure 10
11. Sales strategy
sales option
Best sales option Online sales
Online sales
Easy use for customer
small running and start up costs
International exposure
Open 24hrs a day 7 days a week
Faster payments
No shop rental costs
Secure online card transactions
Figure 11
12. Sales strategy
Why my sales will be done online
To reduce the amount that would be spent if I was going to have
a shop and whole team of people working.
Gives the customer a fast and cost effective way of designing
there pc to the way they want it.
The standard price for a custom computer will be £800.00 + vat
and delivery and a 10% discount on a purchase In the first
month.
And if the customer has had a bad service they can complete a
online complaint, contact by phone email during working hours.
13. Product design
What gamers need
Fast a new computers
Self designed on the website with color and lighting features
value for money with getting the best possible product.
Design time
This could take a couple of weeks to design creating 4 different
designs costing £250.00 each and with different color options.
This will give the customer several types of basic design and color
schemes. They will then be able to decide what kind of software
and programming they want.
14. Purchasing strategy
Credit agreements
The supplier has to meet the consumer credit act 1974 to
provide a credit level.
You can leave a credit agreement under section 66 of
the(CCA) 1974 without any reason as long as there is
written conformation and a notice period of 14 days.
You can increase the credit agreement if both parties agree
a new credit agreement.
15. Purchasing strategy
Credit agreement
Best credit option change supplier
New supplier
Increased 90 day credit
Makes room to expand business
Gives the business more time to cover its costs
Credit act on your side if the new supplier doesn’t preform to
agreed standards.
Figure 12 Figure 13 Figure 14
16. Product production
Unit production
only produce a couple at a time
Produce a large number
Produce one and see if it sells
Wait to see on orders before producing a computer. Figure 15
17. Product production
Production
Best production option produce a couple to see the
market interest
New production
No stock sitting around
Only a few demo computers needed
All different models styling different colors
Reduces large initial startup costs
Figure 16
18. Product production
Reasons for production choice
I chose only to build a few initial demo computers because it can
give u a good idea of your product interest without spending a
fortune.
Doesn’t leave you with stock sitting around not making any
money.
With delivery aspects I would be delivering the computers myself
initially then as the business expands have a courier service make
the delivery’s.
19. Quality control
Monitoring
Initially all the products will be check by myself
Send products to be checked by another company
Eventually when the business has expanded their will be a better
aspect of quality control.
Figure 17
20. Raising finance
Ways to raise finance
Ask the banks for a loan
Ask friends and family if they could help
Look for private investors
Ask the supplier for some credit.
Figure 18
21. Raising finance
Chosen investor
I have chosen to ask the bank for a loan as they offer good small
business loans with a good paying back period.
This will enable to get funds quickly without begging any family
or friends or trying to find an investors.
All banks offer small business loans between £1,000-£25,000
with around 8.9% Annual percentage rate (APR)
22. People management
Employment issues
Employ you friend and one other.
Don’t employ your friend
Hiring my friend
National guidelines state maternity leave is a minimum of 26
weeks then you take a further 26 weeks in total a years paid
leave.
If I hired my friend this would leave me without a receptionist
potentially for a year and I would still have to pay her wages.
23. People management
Hiring of staff
After interviewing my friend I have decided its better for the
business that I decide not to employ her as I wouldn’t be able to
afford to pay someone who would be there.
This was a business decision not due to the fact she was pregnant
which if I was found to be not hiring a pregnant women due to
her being pregnant I could face legal action.
However I will be waiting for another response to the adds and
reviewing the technicians before deciding which one to employ.
24. Conclusion
Hopefully this presentation has give you a insight into the starting
up and running of a small business namely a computer business
and show you how to tackle all the problems that a business like
this would face.
Thank very much for listening and if you have any questions
please feel free to ask.
