ITFix Computer Repair and Maintenance Business Plan

Executive Summary 

A1. Company Identification 

The startup will be known as ITFix Computer Repair and Maintenance and will be located in Los Angeles, California. The city is an excellent location for the new business, given that its residents are highly receptive to innovative businesses, including tech-based enterprises. In addition, the city presents a potentially huge customer base for the new entity since it is the second-most populous city in the US. The city’s thriving economy means that the startup has the potential of growing rapidly and earning considerable revenue over its entire lifecycle. Moreover, the city is home to various financing options such as investment banks and venture capital firms. The city's governing bodies recognize the essence of attracting successful enterprises. The LACOED provides incentives that can assist the sole proprietor to launch the startup successfully. The body offers business incentives to startups at the federal or local level. 

A2. Mission of the Company 

The mission of ITFix Computer Repair and Maintenance is to offer quality onsite computer software and hardware solutions at an affordable price through fast and reliable response and excellent customer service. The startup will ensure that it fixes whatever problems the customers are having with regard to their PCs and laptops. In this regard, it will guarantee that computers owned by individuals and businesses are in perfect condition at all times to allow them to complete their tasks. The startup will seek to offer computer repair and maintenance services at affordable prices to ensure it attracts a large number of customers in the local area. It will ensure that the customers receive the best customer service available. Essentially, the startup’s employees will receive fair compensation, extensive training, and incentives to motivate them to solve the customers’ problems promptly. 

A3. Business Goals 

The first goal for the first year is to have 90% customer satisfaction with the overall service that the startup offers to customers, including individuals and businesses. 

A key aspect of the startup’s mission is to provide the best customer service possible by providing prompt and quality repair and maintenance services, being friendly, listening to the customers, asking for feedback, and implementing suggestions from customers. The startup will measure client satisfaction and ensure that the customer service scores meet or surpass the goal to guarantee that the startup is meeting its vision. 

The second goal is to ensure the startup breaks even in the first year to ensure the startup remains operational in its subsequent years. 

The profitability goal will support the entity's mission, given that the startup can only continue offering its quality computer repair and maintenance solutions if it generates a profit that will guarantee its survival. In addition, if the startup is profitable, it can offer its services at affordable prices rather than raise its prices to earn more revenue to meet its costs. 

A4. Keys to Success 

A key success factor is hiring highly qualified workers at competitive wages. 

Hiring qualified workers will be vital in ensuring that the startup offers quality computer repair and maintenance services while guaranteeing a high level of customer satisfaction. 

Another success factor is offering computer repair and maintenance services at affordable prices. 

Providing affordable services will ensure that the startup attracts a large number of customers in light of the fact that many customers are price-conscious and computer repair and maintenance services are not basic. 

Another success factor is the provision of onsite computer repair and maintenance service with a fast response time. 

The provision of onsite IT support services will enable the customers to trust the brand with the fast response time, prompting them to become repeat clients. 

Company Summary 

B1. Industry History 

The history of the computer repair and maintenance industry is tied to that of the computer industry. In the late 1970s, several companies, including Apple, Radio Schack, IBM, Commodore, and Panasonic, began manufacturing computers for home and business use (Winter, 2016). Most of the personal computers at that time were bought by individuals who were highly knowledgeable in the technology and, as a result, when problems emerged, the tech-savvy computer owners had the capacity to fix the computer software and hardware issues themselves. PC sales increased dramatically in the 1980s and 1990s as the general public became aware of the new technology, including its benefits. The individuals who purchased PCs had little knowledge regarding how to address software-or hardware-related problems. Resultantly, the need for computer repair and maintenance solutions grew significantly. In the 1980s and 1990s, third-party maintenance entities and original equipment manufacturers were the types of entities operating in the computer repair and maintenance industry (“SIC 7378 computer maintenance and repair,” n.d.). The top original equipment manufacturers included IBM, Compaq, and Sun Microsystems. Most of the third-party maintenance firms were local and regional service providers in addition to Cerplex Group and Inacom Corporation, which operated at the national level. Following the surge in demand for computer repair and maintenance industries in the 1990s, third-party maintenance companies devised new strategies to reduce costs and improve the reliability of computer hardware. The TPM entities reduced repair time by replacing computer components rather than repairing them. Subsequently, they introduced diagnostic software to diminish the need for costly onsite repair services. Lastly, they expanded their offerings to incorporate software installation and maintenance, virus protection, and internet connection services. 

Original equipment manufacturers also altered their strategies as PCs became increasingly similar. They started to differentiate their products by improving their maintenance services. In the late 1990s, various discount manufacturers diminished their support and forced consumers to handle their own maintenance. This scenario offered a new opening for TPM entities that provided disaster-recovery offerings and began supporting software applications to meet the huge available demand. Concurrently, corporate focus on outsourcing led to increased business for TPM providers. 

Growth in computer repair and maintenance continued in the late 1990s and early 2000s with the increased efficiency of the computer production process. Manufacturing costs reduced significantly as the production process became more streamlined. Computers became more disposable given their ease of replacement. The increasing use of the internet led to the emergence of various computer issues (Ware, 2017). The huge popularity of the internet led to the increased risk of computer viruses and malware. Consumers were not keen on disposing of their laptops due to internet connectivity issues. Rather, they opted for assistance from local repair shops, which easily resolved the issues. Software releases also contributed to the growth of the industry. The major launch of the Microsoft Windows 95 operating system contributed to the increased demand for system maintenance. Home and corporate PC users had to grapple with the intricacies of new computer system resources. In the early 2000s, Wal-Mart provides intense competition to computer repair enterprises operating in the industry (Fernie et al., 2015). The retailing entity collaborated with Computer Doctor to open computer repair businesses in various retail locations. In this case, customers could take their computers to be repaired while they shopped for other items, including foodstuffs, clothes, and shoes. In the late 2000s, PC sales continued to grow significantly with the product being sold globally. The increase in the US population and increased use of computers to perform daily operations contributed to this increment. The growth of the repair and maintenance industry also expanded significantly as a result. 

B2. Legal Form of Ownership 

ITFix Computer Repair and Maintenance will be established as a limited liability company. As a result, the entity’s owners will not be responsible for repaying the entity’s debts or liabilities. The establishment of a limited liability entity is a simple process due to the few corporate formalities. Members of the entity do not have to hold regular meetings, unlike members of a corporation. The adoption of the LLC business structure will ensure that ITFix Computer Repair and Maintenance is treated as a pass-through entity for tax purposes. In this scenario, the entity can avoid double taxation. 

B3. Location and Facilities 

ITFix Computer Repair and Maintenance will be located in Los Angeles, California. The city's extensive customer base, business incentives, funding availability, thriving economy, and populous nature make it an excellent location for the startup. The business will be located in the southern part of the Westside area of Los Angeles, where there are numerous computer shops. The setup of the new business in the area where various computer shops are clustered together is fitting for the setup, given that its services are complementary to the operations of the computer shops. When customers purchase computers from the computer shops, they are likely to go back to the same area they purchased the products if they are in need of hardware repair and software upgrade services. Resultantly, the business will be in a suitable position to meet the need of such individuals. In addition, the southern part of the Westside area is a commercial location with existing businesses benefitting from the location’s heavy foot traffic. The establishment of the startup entity in the southern part of the Westside area will allow it to attract a large number of customers leading to a high amount of revenues and profits. 

The main office will be set up in the southern part of the Westside area where customers can visit the location with their PCs that need fixing. Such individuals include those working in the Westside area. They can leave their PCs in the morning and take their devices in the evening after leaving in the evening. The startup will need to acquire various facilities for its office. It should acquire furniture to allow customers to seat while waiting for their devices to be fixed. In addition, chairs and desks will allow the startup’s employee to perform their duties. Pens, envelopes, printer paper, stamps, permanent markers, paper clips, and staplers are some of the office stationeries which the startup will require. The startup will need to purchase computers to allow the employees to store important information about the customers, for instance, their phone numbers. It will also need to purchase diagnostic equipment that will assist the employees to easily identify computer hardware and software problems. The office equipment will assist the startup’s employees to manage office-related work. Resultantly, the startup’s operations will run smoothly. The startup will need to set up routers and other devices to ensure it has a reliable internet connection. It will need to share information externally and internally to ensure customers and employees are fully aware of the entity’s operations. Numerous businesses operate online, and, as a result, the startup should also be connected to the internet to ensure it does miss lucrative opportunities. A strong internet connection will also be needed to allow the startup to communicate with customers online. The entity can contact customers on social media and convince them to utilize the entity’s repair and maintenance services. 

B4. Management Structure 

The management will comprise various employees, including the general manager, head of technical services, the sales and marketing manager, customer service manager, and the accountant. The general manager will be the entity's overall leader. He or she will implement the entity's mission and vision. He or she will also lead the implementation of the startup's business strategy. He or she will evaluate the startup's success and will sign checks and important documents. The head of the technical services will serve as the startup’s project manager. He or she will work together with the IT professionals to identify the customers’ needs. He or she will coordinate efforts by setting up procurement and technical services practices. He or she will also attend educational forums and workshops to gain key information regarding technological changes and best diagnostic practices. They will ensure that the employees who undertake the repair and maintenance duties perform their tasks efficiently to guarantee high customer satisfaction. He or she will also be responsible for the quality of the startup’s technical services by ensuring that the tasks performed by the employees are in line with global best practices. The startup's human resources manager will be responsible for defining the various job positions for recruitment and overseeing the interviewing process. He or she will perform the staff induction for the startup’s new team members. He or she will also be tasked with training and evaluating the startup's employees. The sales and marketing manager will develop and execute the startup's sales and marketing strategy. He or she will be responsible for performing market surveys and feasibility studies for the startup. He or she will model demographic information and assess the volumes of transactional data generated by the startup’s clients. The accountant will be responsible for formulating the startup’s financial reports, budgets, and financial statements. He or she will be responsible for performing financial forecasting and risk assessment. He or she will also administer payrolls, perform cash management, and manage financial systems. Moreover, he or she analyzes the financial feasibility of various capital projects and ensures that the business meets the relevant tax laws. He or she will also work as the entity's internal auditor. 

B5. Products and Services 

ITFix Computer Repair and Maintenance will offer various services, including software and hardware repair, maintenance, and upgradation. PC and laptop owners are likely to experience hardware issues such as screen freezes, file corruption problems, blue-screen errors, abnormal shutdowns, jumpy mouse, CMOS error, hard drive failure, insufficient memory, power cord issues, and keyboard problems. The entity’s staff will seek to solve such issues while providing regular upgradation and maintenance services. They will also solve software problems such as slow internet, restarting issues, misinterpretation of peripheral commands, and document opening issues. They will also carry out software upgrades to repair security holes, protect the customers’ data, and enhance software features. 

The startup will offer software and hardware repair, maintenance, and upgradation services onsite by visiting the customer's premises where the PCs in need of fixing are located. The diagnostic tools and equipment are easily portable, and, in such a case, the startup's employees can visit home and business customers at their request. Carrying the PCs can be a stressful process, and, in this respect, onsite services will save the customers from such troubles. The startup's employees will take the PCs to the main office in case the problem needs a detailed diagnosis. The pick-up and delivery of PCs will be carried out free of charge. However, customers can also visit the startup’s office and leave their gadgets there if they do not feel comfortable having the entity’s employees at their premises. 

Market Analysis 

C1. Target Market 

ITFix Computer Repair and Maintenance will target home PC users, educational institutions, and small businesses. Home PC users comprise both male and female individuals aged between 20 and 50 years living in Los Angeles and using PCs and laptops at home to send emails, complete assignments, blog, do bookkeeping, and play games. Such individuals are likely to be students and entry-level workers working from home. They are likely to be low-and middle-income earners. They are also likely to be individuals with tertiary education and above. The startup expects that such individuals will have low technology experience and, as a result, will utilize its software and hardware repair, maintenance, and upgrade services. The business will target home PC users located in Los Angeles. The provision of the onsite software and hardware repair, maintenance, and upgrade services to the city’s residents will save the startup considerable costs incurred due to the movement of specialists to the customers' premises. 

The startup will also target small businesses located in Los Angeles. Such enterprises include those with between ten and one thousand employees and average yearly revenues of between $40,000 and $100,000. The employees are likely to use computers at work to perform their tasks. The startup will seek to form a contract with such entities to ensure it provides the computer software and hardware repair, maintenance, and upgradation services regularly. In addition, such entities entail those which have been in operation for a period of between two and five years. Such entities may include sole proprietorships, limited liability companies, and partnerships. 

ITFix Computer Repair and Maintenance will also target educational institutions in Los Angeles. Such institutions are likely to set up computer labs for learning, research, and management purposes. They are likely to need the entity’s services on a regular basis. 

C2. Industry Analysis 

The computer repair industry has been on the decline for the past five years as a result of positive macroeconomic conditions. In 2021, the industry revenue is expected to fall to around nineteen billion dollars ("Electronic & Computer," 2021). The industry revenue is expected to fall despite the increase in computer purchases in 2021. In the first quarter of 2021, the US PC market grew more than seventy percent year-on-year due to order backlogs and increased demand to facilitate remote working and education ("US PC market Q1 2021," 2021). The increasing affordability of computers has prompted customers and entities to buy new computers rather than fix existing equipment. This scenario has led to a decrease in demand in the computer repair and maintenance industry. In addition, businesses and home users have typically opted to buy more advanced products and do away with damaged products. The lifecycle of computers has decreased over the past decade, and the launch of new technology has offered an additional incentive for consumers and entities to replace their old computers. Moreover, as single-purpose gadgets become obsolete, the number of gadgets potentially requiring repairs has decreased ("Electronic & Computer," n.d.). In the next half-decade, the computer repair industry will continue declining even though at a slower rate. The introduction of technologically complex products will pave the way for repair service demand. Regardless, the continued decrease in the price of computers will lead to industry decline as more and more people purchase new computers rather than fix their old ones. The US economy is on the path of recovering to pre-coronavirus-pandemic levels. In this respect, the unemployment rate is likely to decrease, and the disposable incomes of individuals are likely to continue to increase. Resultantly, more people will have the necessary cash resources to purchase new computers rather than replace those with hardware and software problems. 

C3. SWOT Analysis 

S (Strengths)  1. The provision of onsite computer software and hardware repair and maintenance services is a key strength of the startup. ITFix Computer Repair and Maintenance will visit the customers’ premises to repair their PCs and laptop. Customers may include home PC users, educational institutions, and small businesses. The provision of onsite computer repair, maintenance, and upgradation services will enable the business to provide convenient service to the customers. The coronavirus pandemic has forced individuals to work from home or attend online classes leading to the frequent use of computers at home. Restrictions on movement mean that such users are required to stay at home for long periods. The onsite services mean that computers users can enjoy the software and hardware repair, maintenance, and upgradation services at their own preferred time from the comfort of their homes. The services will enable the home PC users and business entities to save time that could be used in moving the PCs to the entity's office. Small business owners and educational institutions that are likely to have many PCs will save considerable costs due to the onsite services. Essentially, there is likely to be high customer satisfaction from such clients.  2. Another key strength of ITFix Computer Repair and Maintenance is the provision of low-cost offerings. The startup will offer software and hardware repair, maintenance, and upgradation services that the target customers can afford. In this respect, it will adopt the cost leadership strategy to realize this goal. The low-cost offerings will benefit the startup since it will be able to attract a large number of its target customers. The startup needs to attract as many customers as it can to ensure the entity breaks even in the first year of operation. Consequently, the startup can easily increase its market share in the Los Angeles area in the face of existing competitors.  3. Another major strength of the startup is the highly skilled technicians and specialists. The startup will hire the best staff available by selecting those with extensive experience in making computer repairs and performing maintenance duties. It will select talented individuals from a wide pool of applicants. The startup’s employees will be taken through a rigorous training process that will allow them to sharpen their skills considerably. Its invaluable employees will ensure that the clients receive the best service available in the market.

W (Weaknesses)  1. The startup’s lack of sufficient startup capital is a major weakness. The new business cannot obtain capital easily with banks, venture capitalists, and other financers likely to provide their funds to well-established businesses. The lack of capital will make it difficult for ITFix Computer Repair and Maintenance to exploit key opportunities that arise. Moreover, the lack of sufficient capital exposes the startup to the risk of running out of its cash assets. In this scenario, meeting payroll and purchasing inventory will prove to be difficult.  2. The entity’s undeveloped network is another weakness. The startup entity lacks the necessary connections that may allow it to save costs. For instance, the startup may lack a close relationship between itself and suppliers of diagnostic and office equipment and, as a result, may not be able to benefit from discounts. In addition, the startup’s young nature means that it has not had the time to come up with smooth systems. Resultantly, the startup’s inexperience can cause problems and inefficiencies that cause its operations to be less competitive.  3. The startup’s lack of experience is another major weakness affecting it. The new business lacks the yardstick to measure its development and openings, given that it has not seen companies and ideas come and go. It will venture into the unknown without having key points of reference. The new entity is likely to experience false hopes and missteps. The lack of perspective due to inexperience means that there is a high chance that ITFix Computer Repair and Maintenance might fail if it does not establish contingency plans. If the new business fails, stakeholders such as customers, employees, and financers will experience considerable losses.

O (Opportunities)  1. A key opportunity is the high number of individuals aged between twenty and forty-five years living in the city. The median age of Los Angeles’ male and female residents is 34.7 and 36.5 years, respectively. The city ranks second in the list of the most populous main cities in the US (Brandenburger, 2016). The large young population presents an excellent opportunity for the entity to generate considerable revenues from its software and hardware repair, maintenance, and upgradation services. The startup can realize fast growth by attracting a large number of consumers in the city.  2. Another key opportunity is the potential of receiving capital from governing bodies and crowdfunding in Los Angeles. The additional financing will assist the startup to hire sufficient staff.  3. Another opportunity is the expansion of the startup outside Los Angeles. The startup will have an excellent opening for expanding into other nearby cities such as San Diego, San Francisco, and Las Vegas.

T (Threats)  1. A major threat is the intense competition from existing computer repair and maintenance businesses in the city. Such enterprises have established a presence in the city and are likely to have close relations with Los Angeles residents.  2. rapid technological progress is also a major threat facing the startup. The introduction of durable computers at lower costs reduces the need for visiting repair technicians since consumers can purchase the computers.  3. Changes in regulations also present a threat to the startup due to the increased costs of setting up operations in the city.

Market Strategy 

D1. 4Ps 

Concerning the product, ITFix Computer Repair and Maintenance will offer a variety of services. In this respect, the startup will adopt the differentiation strategy. The various types of services to be offered include software and hardware repair, maintenance, and upgradation. The computers can be repaired onsite, or the entity's employees can pick them up and take them to the startup's office for repair. Concerning the onsite services, the startup will offer software and hardware repair, maintenance, and upgradation services onsite by visiting the consumer’s premises. The diagnostic tools and equipment are easily portable, and, resultantly, the startup’s employees can visit home PC users, education institutions, and business entities. Carrying the PCs can be challenging and, for this reason, onsite services will enable the customers to avoid troubles. Concerning the pick-up services, the startup’s employees will pick up PCs from the desired location chosen by the customer. The PCs will then be transported to the startup’s main office. The pick-up and delivery of PCs will be carried out free of charge. Consumers can also visit the startup’s office and leave their gadgets there if they do not feel comfortable having the startup’s workers at their premises. The availability of various services will suit different customers, including students, remote workers, and office workers. Admittedly, the entity will gain a large number of customers in the first year of operation. The differentiation strategy will benefit the startup by contributing to brand loyalty (Hitt et al., 2017). The variety of services creates increased customer satisfaction leading to repeat purchases and increased loyalty. 

Concerning the price, ITFix Computer Repair and Maintenance will operate in Los Angeles, where there are established price points for software and hardware repair, maintenance, and upgradation. The repair services cost at least forty dollars, while maintenance is charged at a lower cost. Upgradation costs will be charged at $200 and above. The entity will adopt the penetration pricing strategy as its pricing strategy. Essentially, ITFix Computer Repair and Maintenance will offer its computer software and hardware repair, maintenance, and upgradation services at prices below those of the competitors. The low prices will assist the startup to penetrate the Los Angeles market and attract clients away from rivals. ITFix Computer Repair and Maintenance will gain market share quickly due to its use of the penetrative pricing strategy. The startup will offer mid-year and end-year discounts on its computer software and hardware repair, maintenance, and upgradation services. Such discounts will enable the startup to increase the number of loyal customers served by the entity. 

Regarding the place, ITFix Computer Repair and Maintenance will offer its computer software and hardware repair, maintenance, and upgradation services onsite or offsite depending on the customer’s preferences. Onsite services will allow the consumers to benefit from the computer software and hardware repair, maintenance, and upgradation services from the comfort of their homes. The startup’s staff will visit home PC users, small business owners, and educational institutions at their own premises to repair, maintain, or upgrade computer software or hardware. If the computer technicians are unable to fix the PCs at the customers’ premises, they will take the PCs back to the startup’s main office. 

The computer software and hardware repair, maintenance, and upgradation services will also be offered offsite. Customers with laptops or those who are not comfortable having the computer specialists at their premises can take the laptops or PCs to the startup’s main office. Customers with busy schedules can drop off their laptops or PCs at the entity's office at their preferred time, for instance, after leaving work. Alternatively, they can request the entity's staff to pick up their computers from their premises and take them to the office for repairs or maintenance. Customers who leave their laptops or PCs at the office can schedule a time to pick up their devices within 48 hours. However, the office will communicate to the customer what time they can pick up their machines. 

Concerning the promotional strategy, ITFix Computer Repair and Maintenance will advertise computer software and hardware repair, maintenance, and upgradation services through various channels, including social media, face-to-face, and print media. The new business targets young individuals living in Los Angeles and, in this regard, will need to appeal to such individuals from the start. Social media is a significant part of the lives of numerous young people. Young adults utilize social media to communicate with their friends, view entertainment content, and explore identities (Goodyear & Armour, 2019). Young individuals living in Los Angeles have not been left behind and are heavy users of social media platforms. ITFix Computer Repair and Maintenance will need to take advantage of the significant use of social media platforms. Fundamentally, the startup will need to set up social media profiles on Facebook and Twitter to create awareness regarding its various services. After setting up social media profiles, the startup will advertise the computer software and hardware repair, maintenance, and upgradation services. The use of social media channels will enable the startup to set up a reliable social network. Therefore, the startup can be in touch with Los Angeles residents on a more personal level. 

The startup will also promote its business by carrying out face-to-face marketing. In this case, the computer specialists will visit educational institutions, small business owners, and home PC users. They will let the potential customers know about the new business and the services it offers. They will also attend computer conventions, workshops, and trade shows and interact with the attendees to inform them of the startup’s services. They will issue flyers and brochures containing business information, for instance, the contact details, the type of services offered, the prices of the services, the business location, and distribution options with regards to the computer hardware and software repair, maintenance, and upgradation services. Face-to-face marketing will enable ITFix Computer Repair and Maintenance to establish close personal relationships with Los Angeles residents. Moreover, the entity will be able to establish a high level of credibility with the city's residents, building trust in the entity as a result. 

ITFix Computer Repair and Maintenance will also utilize print media to advertise the startup’s services. Notably, the new business will post advertisements in magazines and the local newspaper to inform the Los Angeles residents of the entity’s services. ITFix Computer Repair and Maintenance will post information regarding its business, including the services, prices, and contact details. The entity will purchase small classified advertisements that contain text only. Resultantly, it will be able to save costs given the costly nature of advertising space. Local newspapers target various audiences due to the mix of content entailing business, political, technology, and fashion issues (Hoffman & Bateson, 2017). The entity's advertisement in the local newspaper can be placed in the technology section. ITFix Computer Repair and Maintenance will also utilize magazines to create awareness regarding the entity's products. Business magazines offer coverage of particular industries include the computer industry. Essentially, the entity can advertise its computer software and hardware services in business magazines that cover technology topics or the computer industry. The use of such magazines will expose the entity to various professionals in different fields. For instance, engineers and software developers can easily view the entity's offerings in magazines leading to increased awareness of the startup's services. 

The use of the multichannel promotion strategy will increase the entity’s chances of creating a high level of awareness. The startup will need to generate considerable awareness among Los Angeles residents to ensure it captures customers loyal to its competitors. The shift of the customers from existing entities to the startup will guarantee an increase in revenues. Undeniably, the new business can easily survive in its first year due to its large number of customers. The marketing message will emphasize the low-cost nature of the computer software and hardware repair, maintenance, and upgradation services. It will also emphasize the fast response time with regard to repairing, maintaining, or upgrading the customers’ computers. It will highlight the promise of customer satisfaction by ensuring excellent customer service. The marketing message will be delivered through the different channels to be used by the startup. 

D2. Price List 

The prices of the various computer software and hardware repair, maintenance, and upgradation services offered by ITFix Computer Repair and Maintenance are indicated below. 

Service	Average Price
Repair services for slow internet and document opening issues.	$30
Repair services restarting issues and misinterpretation of peripheral commands,	$45
Repair services for screen freezes, file corruption problems, blue-screen errors, abnormal shutdowns, and CMOS errors.	$60
Repair services for jumpy mouse, hard drive failure, insufficient memory, power cord issues, and keyboard problems.	$80
Maintenance and upgrading of software depending on the type of software	$100-$500
Maintenance and upgrading of hardware depending on the type of hardware	$200-$700

D3. Promotional Strategy 

Task	Target completion date	Responsible party
Create social media profiles on Twitter and Facebook	15-Nov-21	Sales and marketing representative
Door-to-door visitation of educational institutions, small business owners, and home PC users.	20-Nov-21	Computer specialists
Attend computer conventions, workshops, and trade shows and interact with the attendees.	25-Nov-21	Computer specialists
Create and print business cards, flyers, and brochures to issues to consumers	30-Nov-21	Sales and marketing representatives
Set up meeting with local newspaper representatives to purchase advertisement space	05-Dec-21	Sales and marketing representatives
Meeting with magazine producers to discuss a potential partnership	07-Dec-21	Sales and marketing representatives
Add startup company signage to the front part of the business	15-Dec-21	External signage specialists

D4. Sales Forecast 

Month 1 (January 22)	Month 2	Month 3	Month 4	Month 5	Month 6	Month 7	Month 8	Month 9	Month 10	Month 11	Month 12 (December 2022)
$4000	$4500	$5900	$6600	$8000	$8500	$9700	$10,400	$10,900	$12,000	$14,500	$18,000

By December 2022, the market conditions are expected to have improved due to the impact of coronavirus vaccines. It is anticipated that a large part of the US population will be vaccinated. The negative effects of COVID-19, including unemployment and restrictions on movement, are expected to ease up (Hughes et al., 2021). Resultantly, the disposable incomes are likely to increase with time causing individuals to have sufficient cash to repair their computers by taking them to the entity’s specialists. The sales forecast figures were obtained from daily forecasts. ITFix Computer Repair and Maintenance projects to earn $160 each day for 25 days in the first month to guarantee revenues amounting to $4,000. The daily earning is projected to be received from between 1 and 3 customers. In the second month, the number of customers purchasing the startup's services is expected to increase due to the influence of the startup's marketing activities. Los Angeles is currently expanding as people and businesses recover from the pandemic. The surge in the purchases of PCs creates an excellent environment for the entity since more PCs mean that the entity will have more customers requiring the computer hardware and software repair, maintenance, and upgradation services. There are many competitors in the southern part of the Westside area of Los Angeles, where the business is located. However, the competitors' services are priced above those of the entity, allowing it to compete favorably with its existing rivals. 

Implementation Strategy 

E1. Overall Strategy 

The implementation strategy of ITFix Computer Repair and Maintenance is depicted below. The startup's prelaunch phase will be critical since the entity can assess how much money it can raise from external parties. The acquired funds will be needed to finance the implementation of the promotion plan to ensure that a high number of Los Angeles residents are aware of the entity before its start date. 

Task	Completion date	Responsible party
Meet with a lawyer to file necessary permits	05-Sept-21	Owner/lawyer
Acquire business license	10-Sept-21	Owner
Open bank account	15-Sept-21	Owner
Obtain financing to purchase office equipment	20-Sept-21	Owner
Order diagnostic and office equipment	05-Oct-21	owner
Hire the general manager, head of technical services, sales and marketing manager, customer service manager, and accountant.	15-Oct-21	owner
Install equipment, including furniture in the office	20-Oct-21	Contractor
Hire workers including sales and marketing representatives and computer specialists	25-Oct-21	General manager
Train workers	05-Oct-21	General manager
Implement promotion plan	15-Dec-21	Sales and marketing manager/representatives
Launch date	01-Jan-22	Owner/management

E2. Monitoring Plan 

The startup’s monitoring plan is indicated below. 

Task	frequency	Responsible party
Ongoing training will be carried out to sharpen the customer service skills of the startup's employees and their understanding of the startup's culture, vision, and objectives.	Monthly	General manager
Monitor social media accounts, including Facebook and Twitter, and respond immediately to the customers' issues and concerns.	Weekly	Customer service manager
The entity's customers will fill customer satisfaction surveys issued to the customer after the machines are returned to customers. Surveys will be sent online, through mail, or physical forms depending on the customer's preference. Survey results will be reviewed and taken into account during the decision-making processes.	Monthly	General manager
Review of projected sales revenue and comparison with actual revenues obtained from the provision of the computer hardware and software repair, maintenance, and upgradation services. The projected profit figures will also be compared to the actual profit generated by the startup. Thus, the entity can be able to assess the financial effect of its operations.	Monthly	Accountant
Customer service surveys and 360 Degree feedback forms will be reviewed and used for decision-making purposes, including the dismissal of employees.	Monthly	Head of technical services
Job satisfaction surveys will be provided to the entity’s customers to obtain their views on the staff scheduling process, compensation and benefits level, level of pressure, and opportunity for growth	quarterly	General manager/head of technical services
Staff meetings will be held to discuss monthly performance, cost management, and potential areas of improvement.	Monthly	General manager
Meetings will be held by the management and sales and marketing representatives, and IT specialists to discuss new strategies that result in the rise in sales.	Quarterly	General manager

Financial Statements and Projections 

F1. Forecasted Profit and Loss Statement 

The forecasted profit and loss statement is shown in the Excel file. 

F2. Forecasted Balance Sheet 

The forecasted balance sheet is indicated in the Excel file. 

Financial Projections 

G1. Financial Projections 

During the first year of operations, it was determined that ITFix Computer Repair and Maintenance incurred a fixed wages cost amounting to $4,500. The startup was expected to hire few employees in the first year resulting in a low monthly wage cost. The entity assumed that it would retain the same number of employees in its first year of operation. Essentially, when one employee was dismissed, they would be replaced immediately to ensure the startup’s operations run smoothly. The rent paid for the office occupied by the startup was expected to be constant as per the rental agreement. This rent amount may be reviewed upwards at the end of the first year. In Los Angeles, the office rent was determined to be around three dollars per square foot. The size of the startup's office was expected to be around 330 square feet. Utility costs were estimated based on the average costs for other computer repair and maintenance businesses operating in Los Angeles. 

The main cost components in the startup’s balance sheet included furniture, equipment, and motor vehicle costs. The total motor vehicle costs amounted to $70,000. ITFix Computer Repair and Maintenance would purchase two new vans, each costing $35,000. $100,000 would be used to cater for the furniture and equipment costs. $80,000 would be used to purchase diagnostic equipment, while $20,000 would be used to purchase high-quality furniture. The business owner received a large inheritance amounting to $100,000, which will be used in starting ITFix Computer Repair and Maintenance. The startup's accounts receivable balance is $40,000, which are the expected amounts owed for hardware repair services carried out during the first six months after startup. 

G2. Financial Position 

ITFix Computer Repair and Maintenance will end with a loss of $5,030 in the first month of operations and a profit amount to $5,970 after the end of the first year. The assessment of the projected monthly profits shows that there is a steady increase in the metric. The outlook for the computer repair and maintenance business is positive even though the entity is projected to realize losses for six out of twelve months. The losses are attributed to the low sales as the entry strives to establish itself in the new market. The startup needs time to convince customers to shift from existing brands to the entity. Additionally, it requires time to prove its credibility and obtain the trust of Los Angeles residents. It has to overextend itself financially to guarantee its success in the long run. The startup’s slow start is typical of any successful business. Initially, the revenues are low but increase steadily as the positive effects of the entity’s marketing efforts begin to be felt. Moreover, the startup’s debt level is nearly equal to its level of the owners’ equity. Evidently, ITFix Computer Repair and Maintenance is not significantly leveraged, and its risk of collapsing is relatively low. The low risk means that the startup can borrow additional funds from financial institutions to finance expansion. 

G3. Estimated Capital/Investment Needs 

The owner of ITFix Computer Repair and Maintenance has invested $100,000 of his personal savings for the launch of the entity to cater for long-term asset purchases and to pay for legal procedures, business cards, office-front signage, and advertisement procedures. The entity also took an additional loan amounting to $77,000 to cater for the prelaunch expenses. At the end of the initial year, the remaining amount of the loan will be the total loan amount less the total interest. The startup pays a fixed interest of $600 monthly, meaning that its yearly fixed interest cost is $7,200. In this sense, the remaining loan amount will be $68,200. Given this amount, there is no need for additional financing. 

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