Computer Shop Business Plan to Achieve your Goals

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A computer shop business plan is the first step to start a new, expanding your current, or purchasing an existing computer shop.

The South African PC market is expected to grow steadily over the next few years, thanks to a better economic outlook and consumers looking to replace their older technology. Both desktop and laptop products are in demand.

There is a consistent interest from enterprises in desktop machines, and high-end desktop PC’s will always be in demand for intensive tasks. Compact desktop machines are also being purchased for offices, despite the increasing popularity of laptops among professionals. Entry-level laptops are the best sellers, as customers do not have a lot of disposable income. Gaming is a smaller market than mainstream devices.

The global computers market grew from $414.6 billion in 2022 to $449.02 billion in 2023 at a compound annual growth rate (CAGR) of 8.3%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The computers market is expected to grow to $604.75 billion in 2027 at a CAGR of 7.7%.

The computer market is expected to be aided by rapid growth in investments in smart city projects in many countries globally. Smart city technologies use information and communication technologies to efficiently manage and operate urban services, including transportation systems, water supply and law and order. These technologies are enabled through IoT technology. IoT is a convergence of computing devices, mechanical and digital objects. This system facilitates the transfer of data over a network without human interaction and minimal human-to-computer interaction. Smart cities use computers and related hardware, thereby benefiting the companies operating in this market. APG Algemene Pensioen Groep N.V. announced an investment of €250 million in “Smart City Infrastructure Fund”, for the development of smart city projects across North America, Europe, Australia and other major urban areas in the world.

Interest rates are expected to increase in developed nations, particularly the USA and Europe, between 2019 and 2022, making it harder and more expensive for companies manufacturing computers. The computer market is characterised as requiring fair amount of capital funds to operate, renovate, innovate and expand business. Therefore, changes in the economy such as changes in interest rates are expected to greatly affect the profit margins, cost structures, and expansion strategies of the companies in the cloud services market.

The Internet of Things (IoT) is emerging as the next big trend in the computer market with the ability to create an impact across the business spectrum. The Internet of Things merged the physical and online worlds to open up a host of opportunities for companies, governments, and consumers. The IoT is a complex ecosystem with multiple players such as device vendors, communication service providers, software vendors, and IT service providers. For example, the August Smart Lock uses the Internet of Things platform to automatically lock and unlock the front door of a user’s residence and can also remotely grant access to guests, friends or staff.

In August 2020, Sharp Corporation, a Japan-based company that designs and manufactures electronic products, completed the acquisition of Toshiba’s laptop business for an undisclosed amount. Sharp had earlier acquired an 80.1% stake from Toshiba, and now it has acquired the remaining 19.1% of shares from Toshiba. Toshiba is a Japanese multinational engineering and electronics conglomerate corporation.

Major companies in the computers market include Apple, Samsung Electronics Co., Ltd., HP, Pegatron Corp, Quanta Computer, Lenovo Group Limited, Inventec Corp, Microsoft, Dell Technologies Inc. and Hon Hai Precision Industry.

Asia-Pacific was the largest region in the computers market in 2022. North America was the second largest region in computers market. The regions covered in the computers market are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the computers market report are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela and Vietnam.

The computers market consists of sales of computers which are programmable electronic devices designed to accept data, perform prescribed mathematical and logical operations at high speed, and display the results of these operations. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The revenues for a specified geography are consumption values that are revenues generated by organisations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

The global computers market is segmented: –

1) By Type: PCs, Laptops, Tablets, Other Computers;

2) By Application: Household, Commercial; and

3) By Distribution Channel: Business-To-Business (B2B), Business-To-Consumer (B2C).

Core elements of Computer Shop Business Plan include:

Executive summary: This is an overview of your business plan. It includes brief information on top management personnel, the grant or fund request and amount thereof, objectives, keys to success, and mission.

Company summary: This section provides details on company ownership, expense details, and company location, and facilities.

Services: This section will cover your competitive comparison, service description, fulfillment, technology, and future services.

Market analysis summary: This section includes information on target market segment strategy, market strategy, market trends, market needs, market segmentation, service business analysis, competition and buying patterns, business participants, and distribution services.

Strategy & implementation summary: The strategy pyramid details how will attract power internet users, attract novice internet users, and grow a social hub. A SWOT Analysis may be included.

Management summary: This section includes information on top, middle, and lower management.

Financial projections: Documents comprising of the management account, income statement, balance sheet, cash flow, cash forecast, break even analysis, loan amortisation schedule, and fixed asset schedule. Charts, ratios, graphs, and calculations are included.

Annexures: Includes documents that provide additional information that funders require in an application (contact us for the list).

computer shop business planThe DTC Team understands the complexities of the requirements and criteria for a tailoured and accurate business plan. Whether the development is for the purpose of raising funding and/or non-repayable business grants, we guide you through the process and provide access to our vast funding network.

Contact us for more information and assistance with your Computer Shop Business Plan.