Business Plan Sample


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Sample Business Plan for Third Party Technical Support Business

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Business Plan Sample

  1. 1. XServe Consulting Page 1 Business Plan: Third Party Technical Support Company Purpose At Your Service (AYS) will be a global third party on-demand technical support provider. AYS will specialize in PC hardware, software and firmware support and maintenance for home, home office and small businesses. What customer problem are we trying to solve? Over the past few decades, computers have become an integral part of our lives. The popularity and advantages of internet, new technology and social networking has further increased the penetration of computers. It is estimated that there are over 2.50 billion internet users in the world. Regular use of computers, internet and technology often results in technical problems and require maintenance and support. Very few users are equipped with the tools and know-how of resolving most or all technical issues. Visiting a computer repair workshop or waiting for a technician to come to your home / office is neither cost effective nor time saving. This has resulted in the growing popularity of third party on-demand technical support via telephone, e-mails and live chat. Solution and Value Proposition AYS will provide immediate on demand technical support via multiple channels – telephone, emails and live chat. AYS will have a team of Microsoft Certified System Engineers (MCSE) who would have the necessary skills and experience for successful administration and resolution of diverse technical problems encountered by computer users all over the world. Our Value Proposition:  Quick resolution at affordable and unbeatable prices  24X7 instant access to experts  Hassle free technical support Our certified computer and software technicians will provide solutions for a variety of technical problems to ensure a trouble free computing experience for customers and subscribers. Along with AT YOUR SERVICE
  2. 2. XServe Consulting Page 2 troubleshooting all technical issues, we will also provide maintenance support for optimal performance. AYS Services Set-Up & Install AYS technicians will set up customers’ computers and assist in installation of all applications and peripherals. Diagnostics & Repair AYS technicians will diagnose and identify the root cause for all technical problems and fix them. Virus & Spyware Removal AYS technicians will help remove viruses and spyware and install security software for computer and data protection. Internet & Networking AYS technicians will help maximize internet connectivity and improve the experience of internet browsing and network applications. System Optimization AYS technicians will optimize computer performance for highest productivity and efficient computing. AYS will provide comprehensive technical support for full range of desktops, laptops, tablets, notebooks, home and business software applications and Operating Systems. Why Now? Third party technical support is a growing market segment. There is an increasing number of IT firms in the market and the trend seems to be accelerating. With computers becoming a basic necessity and the constant need to upgrade hardware and software, on demand technical support has become an essential service in the recent years. Market Analysis Computers have exploded throughout the world over the past 40 years from 2000 units shipped in 1960 to over 15 million units per year by 2003. With this rapid growth, there has been a corresponding increase in the need for computer support services. Average downtime based on
  3. 3. XServe Consulting Page 3 computer issues cost companies 3.6 percent of annual revenue, showing that the market to fix computer issues is large and valuable. In 2008, the computer maintenance and repair industry consisted of 14,735 firms which generated 4.17 billion USD in revenue. Ninety percent of the firms in this industry employed five or fewer employees. However, only one quarter of the firms were firms whose only business was maintenance and repair. The Home PC repair end of the business began to be fully realized only in the last few years. Competition In the last few years, there have been many new entrants in the online third party technical support industry due to the increase in on demand computer services. Other than the third party service providers, competition comes from a couple of different areas. The industry is still dominated by Original Equipment Manufacturers (OEMs), which are companies that will visit a customer at his or her home / office to repair the products that they make. In recent years, large chains like “Best Buy” have opened up their own repair arms, which, powered by their name recognition and huge marketing budgets, make them a formidable competitor for any computer repair business. However, one factor favourably impacting the business that the owner has no control of is the timing and frequency of big and important software upgrades, such as new editions of Windows, which can lead to a spur in the business. Revenue Model This will be a subscription based revenue model with product up-sells accounting for additional revenue. Annual and multi-year service subscription will include:  Unlimited technical support throughout the year from certified technicians and experts  Access to proprietary self-help tools and guide  Special discounts on computer hardware and software products and upgrades One Time Fix Annual Subscription 2 Years Subscription $39.99 $129.99 $229.99
  4. 4. XServe Consulting Page 4 Sales and Marketing  Online advertising and marketing to generate inbound traffic (phone / email / chat): Search Engine Optimization, Social Media Marketing, Ad-words and Keywords marketing  Outbound telemarketing through a trusted network of outsourced telesales service providers: outsource a pay for performance outbound telemarketing campaign to smaller and experienced telemarketing contact centers  E-mail and SMS marketing: Tie up with E-mail & SMS marketing companies to drive inbound call traffic to our 1-800 number Team Structure Operatins Head (1) HR / Training Manager (1) HR Executives (2) Process Trainer (1) Manager - Business Development (1) Online Markeitng Executive (1) Telemarketing Executive (1) Manager - Operations (1) Team Managers (2) Customer Support Executives (20) Project Manager (1) Ops Manager (1) Team Manager (2) Telesales Agents (10) Proposed Team Structure for each outsourced third party telesales service provider
  5. 5. XServe Consulting Page 5 Financial Plan AYS plans to finance growth mainly through cash flow and equity. We recognize that this means we will have to grow more slowly than we might like. Our projected profit and loss is shown below, with sales increasing steadily from the first year through the second, and into the third year. We do expect to more than break-even in the first year of the operation. Note: All currency values in the charts and tables are expressed in USD ($). Gross Margin Net Profit 0 200000 400000 600000 800000 1000000 1200000 1400000 1600000 Year 1 Year 2 Year 3 65127 492382 1578764 0 200000 400000 600000 800000 1000000 1200000 1400000 1600000 Year 1 Year 2 Year 3 65127 492382 1578764
  6. 6. XServe Consulting Page 6 Pro Forma Profit and Loss Year 1 Year 2 Year 3 Sales 522,720 2,352,240 6,272,640 Total Cost of Sales 258,720 1,164,240 3,104,640 Gross Margin 264,000 1,188,000 3,168,000 Gross Margin % 50.51% 50.51% 50.51% Total Operating Expenses 177,164 531,491 1,062,982 EBITDA 86,836 656,509 2,105,018 Interest & Taxes 21,709 164,127 526,255 Net Profit 65,127 492,382 1,578,764 Net Profit / Sales 12.46% 20.93% 25.17% Writing a Business Plan forces the business owner / team to look at the business in an objective and critical manner. It helps to focus on ideas and serves as a feasibility study of the business’s chances of success and growth. It becomes an operational tool to define the company’s present status and future possibilities. For questions or help in writing your Business Plan, write to us. Email: