Contents pageSlide introduction Main body Conclusion References
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.
Target marketPossible consumers Figure 4 Computer gamers Office workers Self employed people Small businesses i.e. shops, cafes Social media company’s
Target marketMarket researchTarget customers Computer GamersWhat gamers want Fast computers Figure 5 Custom built Large data storage Fast connection Powerful software Strong firewalls and virus protection
Target marketwhy 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.
Targeting the customerTargeting the customers Advertising in computer magazines Social network advertising Local news papers Figure 8 Flyers and leaflets Figure 6 Figure 7
Targeting the customerBest way to target the customerMarketing tool Gaming magazinesMagazine 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
Targeting the customerWhy 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.
Sales strategysales options Online sales Sales through magazines Sales team Sales through other computer sites Figure 10
Sales strategysales optionBest sales option Online salesOnline 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
Sales strategyWhy 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.
Product designWhat 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.
Purchasing strategyCredit 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.
Purchasing strategyCredit agreementBest credit option change supplierNew 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
Product productionUnit 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
Product productionProductionBest production option produce a couple to see themarket interestNew production No stock sitting around Only a few demo computers needed All different models styling different colors Reduces large initial startup costs Figure 16
Product productionReasons 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.
Quality controlMonitoring 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
Raising financeWays 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
Raising financeChosen 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)
People managementEmployment issues Employ you friend and one other. Don’t employ your friendHiring 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.
People managementHiring 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.
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.