Contents

1.0 Executive Summary .......................................................................................................................................... 3

Company Description ............................................................................................................................................. 4
1.1 Goals ............................................................................................................................................................. 4
1.2 Mission.......................................................................................................................................................... 5
1.3 Company Summary ...................................................................................................................................... 5
1.4 Company Ownership .................................................................................................................................... 6
1.5 Location ........................................................................................................................................................ 6
1.6 Financial Overview ....................................................................................................................................... 6
1.7 Effective Date of Business ............................................................................................................................ 6
Industry Analysis .................................................................................................................................................... 6
2.1 Description of Industry ................................................................................................................................. 6
2.2 Trends ........................................................................................................................................................... 6
2.3 Strategic Opportunities ................................................................................................................................. 7
Target Market.......................................................................................................................................................... 8
3.1 Target Market................................................................................................................................................ 8
3.2 Market Potential ............................................................................................................................................ 8
3.3 Current Patterns ............................................................................................................................................ 9
3.4 Sensitivities ................................................................................................................................................... 9
Competition............................................................................................................................................................. 9
4.1 Main Competitors ......................................................................................................................................... 9
4.2 Potential Future Competitors ........................................................................................................................ 9
4.3 Entry Barriers .............................................................................................................................................. 10
Marketing Plan & Sales Strategy .......................................................................................................................... 10
5.1 Key Message ............................................................................................................................................... 10
“Custom PCs® will give each customer a personally tailored computer based on their particular needs.” ........ 10
5.2 Message Delivery........................................................................................................................................ 10
5.3 Sales Strategy .............................................................................................................................................. 11
Operations ............................................................................................................................................................. 11
6.1 Business Facilities ....................................................................................................................................... 11
The business will be located at Lakeside Village and will lease approximately 2,000 square feet of retail space.
............................................................................................................................................................................... 11
6.2 Production Plan ........................................................................................................................................... 11
 6.3 Workforce Plan ........................................................................................................................................... 11
6.4 Impact of Technology ................................................................................................................................. 12
Management & Organization ................................................................................................................................ 12
7.1 Management Team...................................................................................................................................... 12
7.2 Recruiting .................................................................................................................................................... 12
7.3 Compensation & Incentives Plans .............................................................................................................. 13
Long-term Development ....................................................................................................................................... 13
8.1 Long-term Goals ......................................................................................................................................... 13
8.2 Potential Negative Results .......................................................................................................................... 13
8.3 Strategy ....................................................................................................................................................... 13
Financials .............................................................................................................................................................. 15
9.1 Accounting System ..................................................................................................................................... 15
9.2 Financial Projections ................................................................................................................................... 15
9.3 Financial Assumptions ................................................................................................................................ 16
1.0 Executive Summary

Custom PCs® aims to offer its customers the flexibility of a custom built computer while providing a friendly
and personal shopping experience. Unlike its competitors, Custom PCs® will give each customer a personally
tailored computer based on their particular needs, so that customers will not have to pay for what they don’t
need. By carefully analyzing a customer’s needs and preferences, Custom PCs can provide a perfect fit based on
the customer’s intended uses, and the computer will be built instantly in the store. Custom PCs also aims to
assist the elderly and less informed computer shopper to make their shopping experience as pleasant as possible.

Custom PCs® is a privately held corporation run by its owner, Jack Gray. Jack has six years of experience in
computer building and repair, with two years of employment at Computer Renaissance, where he sold, repaired,
and built computers and accessories. He has also maintained a private computer repair service for two years.
He will be supported in daily operations by an assistant manager/computer technician and a part-time assistant
manager, both with extensive experience in computer repair, sales, and management.

With technology growing rapidly and a large generation still knowing so little about computers, there is a strong
need for personal computer shopping. With specialized technology and graphic and speed intensive PC games
and software, the lack of power in shelf bought computers calls for a more needs based method of computer
shopping. One that doesn’t require the consumer to spend more money than necessary on features he or she will
never use. Because computers have so many uses, many consumers spend a lot of energy trying to find an
affordable computer that will do what they need, and no more. Custom PCs® will compete well in our market
by providing the leading edge in computer technologies, high-quality, reliable machines built by competent,
certified technicians, by delivering the highest quality in customer support while offering a friendly and pleasant
atmosphere at competitive prices, as well as building a strong reputation with clients through unmatched service
and customer satisfaction.

Custom PCs® will focus on one major shopping center: ‘Lakeside Village,’ which is a dynamic lifestyle
complex located in Lakeland’s upscale Grassland area, and offers a total of 610,000 square feet of mixed-use
space. The outdoor mall also includes a movie theater, hotel, restaurants, and second-floor commercial office
space. Our target customers will be a wide range of ages, seeing as how nearly everyone uses computers.
However the elderly, who generally know too little about computers to efficiently shop for one, and
teenagers/young adults that play PC games that require more power than the average computer, will be our
primary focus. Our services can be suited for consumers of nearly every income class, from the lower middle-
class through the high-class consumer.

We will open for business on June 1, 2008. We project healthy revenues by the end of the first year, and expect
to triple that by the end of 2010. Our biggest operating expenses will be rent on our facilities and the first
stocking of a wide range of computer parts and accessories. We would eventually like to grow into a franchise,
but growth will be determined based on future cash flow and earnings. We anticipate a net profit beginning in
our second year.

Such a proposed business requires a considerable amount of investment. Consequently, sufficient funding in the
form of an SBA loan would be a vital step in the startup for this business.

Company Description
1.1 Goals

1. Sales increasing to almost double first year sales by the end of Fiscal 2009.
2. Maintain a high raw gross margin by the end of Fiscal 2008.
 3. Begin franchise effort by end of Fiscal 2010.

1.2 Mission

In this day in age, computers have too many different uses for consumers to purchase computers intended for a
general market.

Technology changes rapidly, and so do the prices. Often consumers end up paying too much for a computer
either due to lack of knowledge or lack of options. Most computers available off the shelf today have more
features than some would ever use, especially the elderly. With an all custom PC store, a person with little or no
knowledge in computers can purchase a totally new and reliable computer personally suited just for them and
spend the least amount of money possible. This method of computer shopping would offer the advantages of a
shelf bought computer, such as warranties, quality, and reliability. And with a more personal than ever customer
relationship and premium customer service, customers know they will have a reliable support service to go to if
they have a problems or questions about their product. No more calling a technical support hotline or sending
computers back to the manufacturer.

Custom PCs® is a one-stop shop for virtually any computer shopper. The store dedicates its efforts and
resources toward ensuring top-notch customer satisfaction while meeting the needs and budgets of every
shopper, from old folks to gamers.

1.3 Company Summary

Custom PCs® will be located in Lakeland, FL. The store will apply 8 key principles that will define the
business and its services:

 High Quality Custom Built Computers

 World Class Customer Service and Support
 Up To Date Technology, Parts, and Equipment
 Skilled, Competent, and Friendly Staff
 Full Range of Peripherals, Games, and Services for Gaming Customers
 Patience, Understanding, and Guidance for the Less Computer Literate Shopper
 In-Store, Same Day Repair Warranties on All Custom PCs® Machines
 A Relaxed, Friendly Atmosphere and A Pleasant Shopping Experience
1.4 Company Ownership

Custom PCs® is a privately held proprietorship owned by its founder, Jack Gray. The company intends to
eventually expand into a franchise, when it will re-register as a limited liability company.

1.5 Location

Custom PCs® will focus on one major shopping center: ‘Lakeside Village,’ which is a dynamic lifestyle
complex located in Lakeland’s upscale Grassland area, and offers a total of 610,000 square feet of mixed-use
space. The outdoor mall also includes a movie theater, hotel, restaurants, and second-floor commercial office
space.

1.6 Financial Overview

Initial working capital requirements will be $50,000, which will consist of owner’s capital and a business line of
credit from a financial institution.

1.7 Effective Date of Business

We will open for business on June 1, 2008. We project healthy revenues by the end of the first year, and expect
to triple that by the end of 2010.

Industry Analysis
2.1 Description of Industry

The personal computer industry is a vast and rapidly growing market. With very few, if any, businesses offering
our services, there is little or no competition in the custom computer niche. However, we will have to compete
on some level with off-the-shelf retailers. Personal computer sales have been expanding since the 1980s, and
further growth in the industry is almost guaranteed.

2.2 Trends

Older baby boomers are beginning to buy computers, especially for basic functions such as banking and
emailing. In addition, gaming is becoming very popular among the younger generation.
2.3 Strategic Opportunities

Off the shelf computers do not meet the needs for these groups. Custom PCs® will take advantage of these
unmet needs while redefining the standards of computer retailing.
Target Market
3.1 Target Market

Our target market is any potential computer buyer. While our services may appeal most to the less informed
shopper and gaming community, our target market will remain broad, because every consumer can benefit from
a custom computer. This includes professionals using processor and graphic intensive software, or anyone that
uses any kind of specialized application:

 Graphic designers
 Video editors
 Visual artists
 Architects
 Scientists
o Biologists
o Physicists
o Chemists
o Researchers
 Software Developers
 Engineers

The number of uses for computers is so vast, and because they make nearly any process more efficient (for both
businesses and consumers), that number will continue to grow. Consequently, the need for specialized
computers is significant, and will continue to grow.

3.2 Market Potential

The number of uses for computers is so vast, and because they make nearly any process more efficient (for both
businesses and consumers), that number will continue to grow. Consequently, the need for specialized
computers is significant, and will also continue to grow.
3.3 Current Patterns

With technology in computers advancing at such a high rate, the computer retail business is prospering. Baby
boomers and elders continue to enter into the age of computing. As hardware capabilities develop, so does
software and games. Businesses and corporations are finding more and more uses for computers every day.

3.4 Sensitivities

Each of the following are sensitive factors pertaining to the industry, which could potentially affect the buying
behavior of consumers:

 Technological advances
 Increased capabilities and functionality
 New ideas

Competition
4.1 Main Competitors

1. Computer Renaissance:
o Strengths: Matured franchise. Recognized company name. Personal customer service.
o Weaknesses: Too many hats. Uncompetitive prices.
2. Best Buy:
o Strengths: Convenience. Competitive prices. Name recognition. National marketing. Financial
resources.
o Weaknesses: Sales staff lacks knowledge and experience. Impersonal. Understaffed. Poor
customer service.
3. Internet Retailers:
o Strengths: Competitive prices. Convenience.
o Weaknesses: Lack of personal service. Product intangibility. Little or no technical support.
Inconvenient to return or repair. Cost and inconvenience of shipping.

4.2 Potential Future Competitors

 Copycats
  National retailers potentially offering customization services.

4.3 Entry Barriers

 Attracting qualified and personable employees to provide the best service

 Need for start-up capital
 Saturated market
 Obtaining reliable suppliers

Marketing Plan & Sales Strategy

5.1 Key Message

“Custom PCs® will give each customer a personally tailored computer based on their particular needs.”

5.2 Message Delivery

We will deliver our message through a combination of advertising, promotional events, and community
involvement:

1. Advertising will consist of a combination of print, radio, and television. Channeling appropriate
media outlets will help to maximize exposure to our target customer base.

2. Promotional Events—We will engage in promotional activities with the goal of increasing our
visibility and attracting new customers. Initial ideas of promotional activities include hosting all-
night gaming tournaments and sponsoring or participation in technology expos.

3. Community Involvement—We will become members of the Chamber of Commerce, participating

in its networking functions.
5.3 Sales Strategy

The main goal of Custom PCs® is to make the customer feel comfortable shopping for and purchasing a custom
computer. A needs-based analysis can then be made based on their specifications. Once the customer knows
what they want, a plan can be made to fit their budget.

Operations
6.1 Business Facilities

The business will be located at Lakeside Village and will lease approximately 2,000 square feet of retail space.

6.2 Production Plan

We will have a wide assortment of computer parts and accessories in inventory in order to build a specialized
computer of any number of configurations. Keeping a large inventory will allow larger availability of parts and
accessories for shoppers, and will allow the needs of the customer to be met by ensuring the availability of the
necessary parts to build a specialized computer in a timely manner.

The aim for Custom PCs® is to discover a customer’s needs, and then determine the right computer for the
customer. The computer specifications and detailed price summary is then put on paper and explained for the
customer, who will then be able to adjust specifications and details of the purchase according to their budget.
Once the customer decides on the right configuration, a technician will build the computer instantly, in the
store. Building the computer, installing software, and testing should take around an hour, so the customer may
choose to enjoy Lakeside Village’s many shops, restaurants, café’s, or ice-creameries while they wait.
Accessories will also be sold in the store including monitors to make Custom PCs® a source for a broad range
of computer shoppers.

6.3 Workforce Plan

Our staff will consist of the Owner/Manager, an Assistant Manager/Technician, and a part-time Assistant
Manager.

Duties and Responsibilities of Employees:

1. Owner/Manager: Run and manage the business and facility while assisting customers.
 2. Assistant Manager/Technician: Building custom ordered computers and assisting the manager with
various tasks.

3. Part-time Assistant Manager: When all employees are present, the part-time assistant manager will be
responsible for helping the manager maintain the store and assist customers, or other various tasks. In
the absence of a technician, the part-time assistant manager will be solely responsible for covering the
responsibilities of the manager while the manager covers the responsibilities of the technician. The part-
time assistant manager will also undertake the same responsibilities in the absence of the manager.

Employees will be cross-trained in order to be well prepared and able to function in other areas.

6.4 Impact of Technology

Technology will not have a significant impact on the operations of our business, however it will have a
considerable impact on growth prospects.

Management & Organization

7.1 Management Team

Owner/President – John H. Gray III. The Owner/President will have overall fiscal responsibility, ensuring that
the business is financially sound and attains its planned goals.

 Six years of experience in computer building and repair

 Two years employment at Computer Renaissance
 High School Graduate
 Minor knowledge in business management and accounting systems

7.2 Recruiting

Employees will be sought after based on the following criteria:

  IT Certified
 Extensive Experience and Knowledge in Managerial Concepts and Sales
 Skill
 Employee History and Reputation

An interview will be conducted to determine the applicant’s ability to work well with others, judge his or her
attitude, competence, and friendliness, as well as how well he or she is with customers.

7.3 Compensation & Incentives Plans

Bonuses will be offered based on employee performance and overall production goals. Managers will be
salaried. Other employees will be paid on an hourly basis. To recruit and retain superior staff, compensation
will need to be very competitive.

As of now, our current financial status precludes us from offering any employee incentives, however as the
business grows and more employees are hired, we intend on providing basic benefits such as retirement plans
and group health insurance.

Long-term Development
8.1 Long-term Goals

Our primary goal is to develop and grow into a franchise by the end of 2010. We also aim to become a
nationally accredited company with a widely known name, be recognized as a well-managed business with the
best customer service and satisfaction, and ultimately be a profitable and prosperous competitor in the industry.

8.2 Potential Negative Results

 Not achieving anticipated sales results

 Not being able to meet consumer needs
 Not being able to compete in the market

8.3 Strategy

 Instill into the company the importance of high quality customer relationships
 Profit as a business
 Make plans to expand
 Effective marketing strategies
 Appealing business appearance (name, logo, colors, building and interior)
 Build a strong, positive reputation with customers and the community
Financials
9.1 Accounting System

We plan to utilize QuickBooks as our primary accounting software. Our inventory records will be accounted for
using QuickBooks as well.

9.2 Financial Projections

9.3 Financial Assumptions

Revenue:

 Will average 2 computer sales per day at $700 each, increasing to an average of 6 computer sales per
day at $700 each by 2010
 Will sell an average of $100 of accessories per day in 2008, an average of $200 of accessories in 2009,
and an average of $400 of accessories by 2010

Gross Margin:

 Gross margin will average 35% for the sale of computers and accessories

Compensation:

 A full-time manager will be paid $25,000 per year with annual raises of 5%
 One part-time employee will be paid $8 per hour with annual raises of 5%
 Plans are to add an additional full-time technician by 2010

Rent:

 Rent will be $25 per square foot with an annual 4% escalation

Utilities:

 $250 per month with annual average increases of 10%

Advertising:

 Initial advertising will be $3,000 a month decreasing to $1,000 per month by 2010

Other Expenses:

 Interest
 Payroll Taxes
 Supplies
 Miscellaneous Taxes