Business Plan For IA Electronic: Repairing Services For High-End Electronics Products

Project Options for BPLAN-PID

Business name: IA Electronic

Business structure: Partnership

ABN:[Registered Australian business number.]

ACN: [Registered Australian company number, if applicable.]

Business location: Chatswood, Australia

Date established: 1.12.2018

Business owner(s): 

Harpreet Singh (s4584295)

• Pasang Gurung (s4586773)
• Taku Hiraoka (s4576109)
• Rishi Pal (s4580213)
• Shivam Kamboj (s4584304)
• Amardeep Sing (s4579971)
• Sumit Pal Singh (s4580074)

Relevant owner experience: All the partners of this particular business are freshers or new entrepreneur

Products/services: The company will provide repairing services for the high end electronics products

The products will be sold out to the local people in Chatswood, Australia. The people will prefer this service because repairing of the high end electronic products is less costly than replacement (Hopp et al., 2018).

The company will follow the AIDA model for entering in the market in a better way. At the same time, the company will focus on different types of promotional activities like, television advertisement, social media advertisement, flyers and many others.

Vision statement:

[The vision statement briefly outlines your future plan for the business. It should state clearly what your overall goals for the business are.]

Goals/objectives:

[What are your short & long term goals? What activities will you undertake to meet them?]

At the initial year the amount of profit willbe $171000, which will increase gradually. In order tp start the business, the company will require total fund of $56140 and for equipment it will require total $126400. The company will avail long term bank loan and some portion of the funds will be provided by the owners or partners.

Products / services: Repairing televisions, laptops, mobile phones, computers, camera, tablets as well as home appliances along with providing services of free estimates on repairing jobs

Registration details

Business name: IA Electronics Stores

Trading name (s): IA Electronics

Date registered: 26^th September 2018

Location(s) registered: Chatswood, Australia

Business structure: Sole proprietorship business 

ABN: 15 203 931 268

ACN: Not applicable

GST: Registered for GST on 1^st October 2018

Domain names: www.iaelectronic.services.com.au

Licenses & permits: Business license, Reseller’s license and Mechanic’s license

Business location: The location chosen for the business is Chatswood and the space chosen for starting the business is about 1600 square feet. There will be two different outlets in the area of 800 square feet on each outlet. It is going to be a retail business and will be extremely beneficial for the company, as the retail businesses offering similar services to customers is almost unavailable, thereby showing less competition for IA Electronics (Benson and Magee, 2018). There will also be a high profit outcome in the company, as the number of competitors in the area is extremely low.

Buy/lease: Both the spaces of IA Electronics will be taken on lease. The arrangements of lease have been made with the help of two different brokers, who were contacted for the requirements of space for opening the outlets of IA Electronics. Both the lease contracts have been signed for a term of 3 years.

The organization chart of the business IA Electronics has been provided below –

(Source: Created by the learner)

Name of owners: Mr. A. Citizen

Details of management & ownership: The owner of the business himself will be the person responsible for running the business. There will be no other Chief Executive Officer hired in the business until it starts expanding its operations (Jansen, 2017). The owner himself will be playing the role of the general manager of the company. As a result, there are no other partners in the business.

Purpose of a BPLAN

Experience: The owner, Mr. Citizen, has been working at GPC Electronics as a senior manager of the operations department for the past five years and then decided to open his own business of electronics products and services (Ottman, 2017). 

In the current scenario, no more staff is required in the business.

Recruitment options

In case of further requirements of staff, advertisements will be provided on local newspapers. Online advertising will also be done about the staff requirements (McKenzie, 2017).

Training programs

Before the commencement of the business, a training session will be held for all the employees. The owner of the business himself will be conducting the strategy.

Skill retention strategies

Lucrative salaries and additional incentives on achieving targets

Products / Services

Product/Service	Description	Price
Repairing televisions, laptops, mobile phones, computers, camera, tablets as well as home appliances	Providing exclusive repairing services at the lowest price	Depending on the damage of the products
Services of free estimates on repairing jobs	Stating estimates to customers on the cost needed to repair the product	Free

Market position: Budget products and services, much better services than competitors

Unique selling position: Lowest cost, highest quality

Anticipated demand:  High demand, on an average of 2 services availed by each customer

Pricing strategy: Penetration pricing

Value to customer: Necessity service

Growth potential: Cost and quality of services will be driving at least 15% growth every year

Research & development (R&D)/innovation activities: Extensive market research and development of new products for repairing electronic goods

Intellectual property strategy: The innovations and confidential agreements will be protected on computers through anti-virus and a strong IT security system.

Workers compensation: $10000 insurance for common employees while $20000 for managers  

Public liability insurance: No public liability insurance

Professional indemnity: No professional indemnity insurance as well

Product liability: No insurance for product liability

Business assets:

Business revenue: Insurance of business has not been done yet  

Risk	Likelihood	Impact	Strategy
Customer complaints – low satisfaction and low sales	High	Low sales and profit	Keeping good service, listening to customers, improving services
Workplace unsafety – employee injury and fire break out	Very low	Destruction of the workplace	Checking workplace safety, checking safety equipments and documents, checking evacuation and extinguisher

The business laws and consumer laws will have considerable impact on the business’ operations.

Operations

• Production process
• Finding out issues
• Providing estimated costs
• Deriving repair parts
• Fixing them
• Testing product after fixation

Suppliers

• ABC Repairs – mobile repair parts
• Electrolux services – TV and home appliances repair parts
• Ninety nine stores – Computer and laptop parts

There will be separate contracts for each supplier and the business.

Technology (Software): Business website for customers developed by a website developing company at $100

Trading hours: Monday to Saturday 9 am to 9 pm

Communication channels: Telephones, E-mails, websites

Payment types accepted: Debit and credit card, mobile banking, cash and mobile wallets

Credit policy: No credit given

Warranties & refunds: No warranties or refunds

Quality control: Thorough assessment of production procedure and checking of repaired products before delivering it to customers.

Memberships & affiliations: Not available

Environmental/resource impacts

Generation of huge e-wastes from the disposal of the damaged parts repaired into land areas and soil.

Community impact & engagement

The extreme impact on the environment and community can be reduced through community engagement in different waste management practices (Borland et al., 2018).

Risks/constraints

There are risks of environmental pollution and human health degradation.

Strategies

Development and implementation of effective e-waste management program through community engagement.

Key milestones	Target	Target date
Reducing waste generation	50% reduction	30.6.2018
Reducing waste disposal	60% reduction	31.12.2018

This new venture of IA Electronic will be closely associated with the electronics industry in Chatswood, Australia. Therefore, in order to understand the viability of the business market research should be done on the electronics market in Chatswood. For this business, market research has been performed through online survey. The primary objective of the survey was to identify how far repairing services are needed by the people in Chatswood.

Business Details

The findings of the survey indicate that the people in Chatswood need repairing services for their electronics products. The survey was done with the local people in Chatswood. In the survey, it has been identified that many people think that repairing is better than replacement because replacement cost is much higher than repairing. At the same time, the survey participants have also mentioned that if they replace the electronics devices electronics wastage increases, which is another head ache for them. On the other hand, the survey participants have also mentioned they will prefer if they get electronics repairing services at their home because currently, most of the time they need to visit at the repairing centre, which is time consuming. This is more applicable to the large appliances.

Hence, it can be stated that the market demand for repairing services at home is much high in Chatswood.

IA Electronic has the target to expand its business throughout Chatswood. As per the estimation of the key people of this new venture, the business will achieve the sales target of $240000 in the first year of business. At the same time, the new venture will also try to enhance the sales level by 10% to 15% in every year. It means, on average, the company has the target to provide repairing services of minimum 50000 devices in every year, which will increase in every year.

It has been mentioned before in the business plan that the business IA Electronic will be established at Chatswood, Australia, where the population is experiencing growth in every year. The current state of the industry shows that there is no such big employer within the industry; however, there are several small and medium sized electronics products repairing centre in Chatswood, Australia, which have increased the competition level in the market (Yang, 2018). In this context, it is important to mention that the electronics repairing industry in Australia is earning $17.6 billion in each year (Van der Eng, 2017). Hence, it can be stated that the industry is stable and the market demand indicates high growth opportunity within the industry. Moreover, there are no such seasonal variations within this industry because the electronics devices are used by the people throughout the year.

If the focus is made on the size of the industry or market, it will be identified that the market is of standard size; there are sufficient growth opportunities in the market (Van der Eng, 2018). On the other hand, considering the recent market trend in Australia, it can be stated that more than 60% of the people prefer repairing than replacement especially in the context of large electronic appliances, which cost high in the case of replacement (Langlois et al., 2018).

The target customers of IA Electronic are the local people in Chatswood, Australia. The company will focus on the customers above 30 years who are working and do not have the time to visit at the repairing shops and do not prefer to change devices repeatedly.  In order to reach to the right people, the company will segment the market based on the demographic factors. The company will consider the age group and occupation of the people. The company will focus on the AIDA model to convince the customers for repairing services. At the same time, the company will require focusing on the promotional activities to attract the customers in a better way (Boyd et al., 2017).

Vision Statement and Goals/Objectives

The key customers of the company will be the people in Chatswood, Australia, who are service holders and business persons and belong from the age group of more than 30 years. There will be no variations in respect to the gender of the people.

In order to build better relationship with the customers the company will maintain communication through SMS and emails. The company will focus on the quality of services and behaviour of the service persons to satisfy the customers in a better way, so that they come back for repeat service. The company will follow the code of ethics and will maintain transparency in the business.

Strengths · The company will have high quality service provider · The company will have strong customer base in the local market of Chatswood, Australia. · The company will invest in brand promotion	Weaknesses · The financial strength will be limited · Availability of service provider employee will be limited
Opportunities · High growth opportunity in the local market of Chatswood, Australia · High growth opportunity because of the growth of electronics industry (Hopp et al., 2018)	Threats · The level of competition is very high (Watson and McGowan, 2018)

Competitors	Established date	Size	Market share	Value to customers	Strengths	Weaknesses
David Leisk	1939	4 people	Family business	No review till now	-Old customers are referring to new customer. -Nationally Certified	Less updates on their website. Not a proper marketing
Grand Electronics	1954	5 people	Sole trader	3 reviews with 5 stars	-Nationally Certified -Good connection with customers	Not a proper update on the sites Less marketing
Harrisson TVs and Video	1954	4-5 People	Sole trader	No review till now	-Member of TESA (Television and Electronic Services Association)	Not a proper website
DLE Authorised Service Centre	1957	6-7 People	Sole trader linked with	5/5 rate with a good review	-Good connection with customer	Less marketing
Micro bell Electronic sales, service and repair	1989	4 people	Sole trader	No review till now	-Helps in insurance claims -Good connection with member	Not a proper marketing

Considering the above table, it can be stated that the competitors of IA Electronic are of small and medium sized organizations. However, as the competitors are present in the local market for a long time, the level of competition will be high.

Planned promotion / advertising type	Expected business improvement
Flyers	This particular tool will provide enough scope to describe the business to the customers.
Advertisement on social media and on television	This will help to reach to the maximum number of customers within limited time.
Newspaper advertisement	This will also help in enhancing the customer base
Radio advertisement	Radio advertisement will help to get attention of the people during travelling
Web banners on local information sites	This will help to get the attention of local people.

The sales team of the business will include four members – 1 manager and 3 sales executives. In order to sell the services they will focus on online and telephonic booking technique through which the customers will be able to book the service at any time. This will be one type of direct selling strategy. The company will aim to enhance the sales percentage by 10% to 15% in each year.

The USP of the company will be the higher quality home services at cheapest price.

To provide extensive and exclusive solutions to customers at the lowest possible rates for repairing damaged electronic devices and reducing e-wastes.

The mission at IA Electronics is reducing e-wastes through repairing damaged electronic devices, encouraging customers in repairing rather than throwing away electronics devices as well as supporting the regulations for e-waste management through working in an environment friendly manner.

There are both short-term and long-term objectives of the company IA Electronics. The following are the short-term goals of the business, which are achievable within the next six months –

• Deriving information about the most cheapest suppliers available in the market and building up relationships with at least 8 of them
• Developing an effective marketing plan with which customers can be attracted to the business
• Establishing good relationships with existing customers
• Taking effective measures to reduce the wastes in the company
• Targeting customers with higher end electronic products where repairing is the only cost effective option rather than disposing

On the other hand, the long-term goals of the business IA Electronics are as follows –

• Entering into contracts with 10 cheapest and most efficient suppliers in the marketplace
• Reaching a sales level of $171000 within 2018 and achieving an increase in sales by 15 to 18% each year
• Achieving a minimum of 300 regular customers by the end of the next year
• Reducing an average of 50 tons of e-wastes through repairing and recycling electronic devices each year  

In order to achieve the above goals, the following activities will be adopted –

• A proper organizational structure will be developed
• Each individual in the business will be allocated individual responsibilities
• An effective market research will be conducted
• Proper communication and waste management skills and techniques will be adopted

Milestone	Date of expected completion	Person responsible
Developing contracts with at least 8 suppliers providing cheapest repair parts for electronic devices	31/12/2018	The Sales and Operations Manager
Achieving Sales of $171000	31/12/2019	The Office Manager, Sales Manager, the Salesperson and the Events Coordinator
Creating approximately 300 regular customers	31/12/2019	The Marketing Manager
Reducing approximately 50 tone of e waste by repairing or recycling the electronic devices every year	30/6/2019	The Operations Manager

Use your action plan to prepared a detailed project plan

Identify specific tasks, which can be completed parallel to each other? Which tasks must be completed sequentially? What resources will (people, material, money etc) you need, who is responsible (Watson and McGowan, 2018).

Key objective and financial overview

• The primary financial objective of the business is to achieve sales of $171000 in the first year
• The secondary objective is to increase the sales minimum by 10% to 15% in each year.

In the initial stage the sales will be $240000, which will increase to $260000 and at the end of the 3^rd year the sales will be $300000.

• The demand in the market will increase
• The cost level of the company will be under control (Rauter et al., 2017)

After reviewing the overall plan for the business, it can be stated that IA Electronic will be a profitable venture. The company will be able to deal with the competitive environment and at the same time, it will be able to generate enough profit and cash from this business (Tukker and Tischner, 2017). Hence, it can be stated that the owners of IA Electronic should carry on the venture for a long-period.

References

Benson, C.L. and Magee, C.L., 2018. Data-Driven Investment Decision-Making: Applying Moore’s Law and S-Curves to Business Strategies. arXiv preprint arXiv:1805.06339.

Borland, H., Lindgreen, A., Ambrosini, V. and Vanhamme, J., 2018. Creating theory for business strategies for sustainability and climate change: Transitional and transformational strategies and ecocentric dynamic capabilities. In Business Strategies for Sustainability (pp. 65-80). Routledge.

Boyd, B., Henning, N., Reyna, E., Wang, D., Welch, M. and Hoffman, A.J., 2017. Hybrid organizations: New business models for environmental leadership. Routledge.

Hopp, C., Greene, F.J., Honig, B., Karlsson, T. and Samuelsson, M., 2018. Revisiting the influence of institutional forces on the written business plan: a replication study. Management Review Quarterly, pp.1-38.

Jansen, W., 2017. New business models for the knowledge economy. Routledge.

Langlois, R., Pugel, T., Haklisch, C.S., Nelson, R.R. and Egelhoff, W., 2018. Micro-Electronics: An Industry in Transition (Vol. 27). Routledge.

McKenzie, D., 2017. Identifying and spurring high-growth entrepreneurship: Experimental evidence from a business plan competition. American Economic Review, 107(8), pp.2278-2307.

Ottman, J., 2017. The new rules of green marketing: Strategies, tools, and inspiration for sustainable branding. Routledge.

Rauter, R., Jonker, J. and Baumgartner, R.J., 2017. Going one’s own way: drivers in developing business models for sustainability. Journal of Cleaner Production, 140, pp.144-154.

Tukker, A. and Tischner, U. 2017. New business for old Europe: product-service development, competitiveness and sustainability. Routledge.

Van der Eng, P., 2017. European Integration and Australian Manufacturing Industry: The Case of Philips Electronics, 1960s–1970s. Australian Economic History Review, 57(2), pp.217-238.

Van der Eng, P., 2018. Turning Adversity into Opportunity: Philips in Australia, 1945-1980. Enterprise & Society, 19(1), pp.179-207.

Watson, K. and McGowan, P., 2018. Emergent Perspectives toward the Business Plan among Nascent Entrepreneur Start-Up Competition Participants. Journal of Small Business and Enterprise Development.

Yang, D., 2018. Has the arrival of Amazon altered the market structure for consumer electronic goods in Australia?.