Electronics Business Plan
Electronics Business Plan
Electronics Business Plan
o 1. Industry Overview
2. Executive Summary
6. SWOT Analysis
7. MARKET ANALYSIS
2. Executive Summary
Chris Logan® Consumer Electronics Retail Store, Inc. is a registered
consumer electronics retail store business that will be located in one of the
busiest business districts in New Haven – Connecticut.
We have been able to lease a shopping facility that is big enough (a 20,000
square feet facility) to fit into the design of the kind of standard consumer
electronics retail store that we intend launching and the facility is located in
the heart of New Haven – Connecticut.
Chris Logan® Consumer Electronics Retail Store, Inc. will retail a wide range
of new appliances, electrical goods and home entertainment products to
customers and also offer repair services in conjunction with our retail
operations.
We are aware that there are several consumer electronics retail store outlets
all around Connecticut, which is why we spent time and resources to conduct
a thorough feasibility studies and market survey so as to be well positioned to
favorably compete with all our competitors.
We have an online – service options for our customers, and our outlet is well
secured with the various payment of options. Chris Logan® Consumer
Electronics Retail Store, Inc. will ensure that all our customers are given first
class treatment whenever they visit our store.
We have a CRM software that will enable us manage a one on one
relationship with our customers no matter how large their numbers grow to.
We will ensure that we get our customers involved in the selection of brands
that will be on our store and also when making some business decisions.
Chris Logan® Consumer Electronics Retail Store, Inc. will at all times
demonstrate her commitment to sustainability, both individually and as a
business, by actively participating in our communities and integrating
sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards
by meeting our customers’ needs precisely and completely whenever they
patronize our products. Chris Logan® Consumer Electronics Retail Store, Inc.
is owned by Chris Logan and his immediate family members.
Chris Logan has a B.Sc. in Business Administration, with over 10 years’
experience in the Consumer Electronics Stores industry, working for some of
the leading brands in the United States. Although the business is launching
out with just one outlet in New Haven – Connecticut, but there is a plan to
open other outlets all around major cities in the United States of America via
the sale of franchising.
3. Our Products and Services Executive Summary
Chris Logan® Consumer Electronics Retail Store, Inc. is in the Consumer
Electronics Stores industry to service a wide range of clients and of course to
make profits, which is why we will ensure we go all the way to make available
a wide range of consumer electronics from top manufacturing brands in the
United States and other countries of the world.
Some of the products in our store are listed below;
For that singular reason, we will make sure that establish the business on a
solid business structure. As a result of business goal, we will ensure that we
hire people that are qualified, honest, customer centric and are ready to work
to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our
senior management staff and it will be based on their performance for a period
of ten years or more. In view of that, we have decided to hire qualified and
competent hands to occupy the following positions;
Responsible for overseeing the smooth running of HR and administrative tasks for
the organization
Maintains office supplies by checking stocks; placing and expediting orders;
evaluating new products.
Ensures operation of equipment by completing preventive maintenance
requirements; calling for repairs.
Defines job positions for recruitment and managing interviewing process
Carries out staff induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversees the smooth running of the daily office activities.
Store Manager:
Merchandise Manager
Manages vendor relations, market visits, and the ongoing education and
development of the organizations’ buying teams
Helps to ensure consistent quality of consumer electronics are purchased and
retailed/supplied in good price that will ensure we make good profit
Responsible for the purchase of consumer electronics for the organizations
Responsible for planning sales, monitoring inventory, selecting the merchandise,
and writing and pricing orders to vendors
Ensures that the organization operates within stipulated budget.
Accountant/Cashier:
Responsible for preparing financial reports, budgets, and financial statements for the
organization
Provides managements with financial analyses, development budgets, and
accounting reports
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the organization
Serves as internal auditor for the organization
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides
the client with a personalized customer service experience of the highest level
Through interaction with customers on the phone, uses every opportunity to build
client’s interest in the company’s products and services
Responsible for monitoring and recording inventory and stock levels, electronic sales
associates periodically check inventory, comparing it to expected levels, taking note
of discrepancies or missing stock.
Help customers choose electronic equipment and devices, such as mobile phones,
televisions, game consoles, and computers.
In addition to selling electronic equipment and devices, he/she also process returns
and exchanges, inspecting returned items for signs of damage as they process
returns via cash or credit card. Additionally, enter returns in the store’s point-of-sale
(POS) system and return items to inventory or to shelves.
Support sales goals by promoting value-added items such as extended warranties
and device insurance. They present customers with information regarding
replacement costs and insurance coverage, usually during the checkout process.
Consistently stays abreast of any new information on the organizations’ products,
promotional campaigns etc. to ensure accurate and helpful information is supplied to
customers when they make enquiries
Strength:
Our business is located in a city with people with high purchasing powers and
also, we can boast of having good business relationship with top
manufacturers in the consumer electronics manufacturing industry and
wholesale distributors in and around New Haven – Connecticut.
Weakness:
A major weakness that may count against us is the fact that we are not yet a
major wholesale distributor, we are a new consumer electronics retail store
outlet and we don’t have the financial capacity to compete with multi – million
dollar stores when it comes to retailing consumer electronics at a rock bottom
price.
Opportunities:
Threat:
If you are conversant with the Industry, you will quite agree that the changes
in disposable income, consumer sentiment, ever changing trends and of
course the rate of homeownership are major growth drivers for this industry.
No doubt, a massive rise in consumer confidence has also contributed in
helping the industry experience remarkable growth, but uneven performance
in these drivers has led to slightly constrained revenue growth.
So also, the rising demand for both building renovations as a result of
increasing disposable income and consumer sentiment, will result in revenue
growth, but profit margins will stagnate as consumer electronics retail stores
keep prices low to attract more sales amid growing competition.
A close watch on industry activities reveals that the retail market for consumer
electronics was hit hard by the recent economic downturn and experienced a
decline in revenue in recent time. The construction of new homes is a primary
market for industry products, so as housing stats increase, demand tends to
follow. Moreover, as home builders have increased their use of electronics,
demand for complementary consumer electronics has risen.
Offices
Home Remodeling Companies
Facility managers
Households in and around our store locations
N.B: This projection was done based on what is obtainable in the industry and
with the assumption that there won’t be any major economic meltdown and
there won’t be any major competitor retailing same consumer electronics
within same location. Please note that the above projection might be lower
and at the same time it might be higher.
Aside from quality, pricing is one of the key factors that gives leverage to
consumer electronics retail stores, it is normal for consumers to go to places
where they can get cheaper prices which is why big player in the industry
attract loads of clients.
We know we don’t have the capacity to compete with multi – million – dollar
consumer electronics retail stores but we will ensure that the prices and
quality of all our electronics are competitive with what is obtainable amongst
consumer electronics retail stores within our level.
Payment Options
In view of the above, we have chosen banking platforms that will enable our
client make payment for purchase of our consumer electronics without any
stress on their part. Our bank account numbers will be made available on our
website and promotional materials.
The total fee for registering the Business in New Haven – Connecticut – $750.
Legal expenses for obtaining licenses and permits as well as the accounting
services (software, P.O.S machines and other software) – $3,300.
Marketing promotion expenses for the grand opening of Chris Logan® Consumer
Electronics Retail Store, Inc. in the amount of $3,500 and as well as flyer printing
(2,000 flyers at $0.04 per copy) for the total amount of $3,580.
The cost for hiring Business Consultant – $2,500.
Insurance (general liability, workers’ compensation and property casualty) coverage
at a total premium – $2,400.
The cost for payment of rent for 12 months at $1.76 per square feet in the total
amount of $65,600.
The cost for shop / warehouse remodeling (construction of racks and shelves) –
$20,000.
Other start-up expenses including stationery ($500) and phone and utility deposits
($2,500).
Operational cost for the first 3 months (salaries of employees, payments of bills et al)
– $60,000
The cost for start-up inventory (stocking with a wide range of electronics such as
new household appliances (e.g. refrigerators, washing machines and ovens), new
personal appliances (e.g. hair dryers, curling irons and electric razors), consumer
electronics (e.g. radios, TVs, digital cameras, video games and computers) and
mobile phones, smartphones and accessories et al) – $250,000
The cost for counter area equipment – $9,500
The cost for store equipment (cash register, security, ventilation, signage) – $13,750
The cost of purchase and installation of CCTVs – $10,000
The cost for the purchase of office furniture and gadgets (Computers, Printers,
Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
The cost of launching a Website – $600
Miscellaneous – $10,000