“Ne razumijem kako da popravim moj kompjuter, može li mi neko pomoći?”

Beta Bytes

Belma AhmetovicZermina VelicGrade 11Age 17

LLC

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Opportunity Beta Bytes currently provides a full suite of computer repair services

on a limited basis for relatives and close family friends in Hartford’s Bosnian community

Judging from the large number (over 90%) of potential customers that Beta Bytes is aware of, there is a significant opportunity to build a business around this underserved ethnic group

Hartford’s Bosnian community is roughly 15,000 people and growing Main stream service providers do not target this group because of the

language and cultural barriers

Mission Statement Beta Bytes will provide professional, affordable, computer repair services in a culturally sensitive manner. We guarantee there will be no hidden costs.

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Mission Statement

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Business Profile

Beta Bytes is a Computer Service Business that strives to provide customers with full range technical assistance:

In the customer’s native language At an affordable price ($40/hr) With available phone support At our site or the customer’s home/business location (for an additional cost

of $20 for in-home) With a 24 hour repair guarantee for existing customers Delivery and on-site pick up available (for an additional $15 fee)

Beta Bytes is a Limited Liability Corporation

This legal structure was selected to protect the owners from the liability associated with difficult to value data (pictures, financial records, legal documents, etc.), that comes with the territory in computer repair. The LLC legal structure also requires less paperwork.

Six years of combined experience in computer repair services

Trained at a certified computer repair shop

Owners are trilingual, fluent in Bosnian (first language), English second language) and currently learning Spanish

Owners will be CompTIA A+ Certified by June 2011

Owners will be enrolled in A+ Computer Hardware and Operating Systems classes for the fall semester of 2010

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Qualifications

Industry Name

Computer Support & Repair in Hartford’s Bosnian Community

Industry Size

$3,200,000

Survey data taken from Mission District: 90% of Bosnian households have one or more computersHouseholds on average had four significant repair incidents annually

Typical Bosnian households

Hartford County, Connecticut

Potential Market

Target Market

Population Area

15,000

5,300

6,000

Market Analysis

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21,000

Total Bosnian Population

Bosnian Households

Target Households

Available Service Units

By Location◦ Hartford County, CT

By Population◦ Bosnian households, head of

household between the ages of 21and 65, high school educated

By Personality/ Behavior◦ Working adults with children and

sometimes extended families By Income

◦ Predominantly middle income households

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Consumer Profile

Beta BytesGeek

SquadGurus-to-Go

GoodQuality of

Product/Service

Price

Location

Brand/Reputation

Unique Knowledge

Excellent Excellent

High High/Medium Low

Partners with Best Buy

Partners with Corporations

Knowledge of Bosnian

Nationwide Nationwide Hartford County

Good Good Good

Competitive Advantage

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Marketing Mix

8

Beta Bytes pricing is more affordable than national alternatives

Beta Bytes targets middle income

Bosnian households, ages 21 to 65

Beta Bytes will be promoted through

word-of-mouth, Bosnian retailers &

website

Beta Bytes serves consumers in

Hartford County, CT

Professional, computer service in

Bosnian with no hidden fees

Purchase Retention

Diagnostics fee waived if repaired by us at that time (saves money)

Service rate per hour is 50% of national competitors

Unique “Shop with you/for you” service

Guaranteed 24 hour repair turnaround for existing customers

No mark-up on replacement parts for existing customers

Long Term (6 months-1 year)

Current & Short Term (1 month-6 months)

Awareness

Advertise on Bosnian radio and community television channels

Cost saving annual service contracts will be available in the future

Free online system checks for existing customers

$50.00 $0.00 $50.00Monthly cost, by phase: Awareness Purchase Retention

Marketing Plan

Word of Mouth -throughout the Bosnian community

Business Cards – European retailers will display the cards at point of purchase

Website - displayed on business cards and found through Bosnian web search terms

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Cost of Materials/Direct Labor

Definition of One Unit :

Two hour service visit

Cost of Sales Per Unit

Direct Labor

(Labor Cost per Hour)

Time (in hours) to make 1 unit

Direct Labor Cost Per Unit

$10.00 120 minutes or 2 hrs $20.00

Total Direct Labor Per Unit $20.00

Material Description Cost/Total Quantity Cost Per Unit ($)

Total Material Cost Per Unit $0.00

Variable Costs Per Unit (Transportation) $5.00

Cost of Sales Per Unit $25.00

Definition of One Unit: Two hour service visit

Selling Price per Unit $100.00

Direct Labor Per Unit $20.00

Materials Per Unit $0.00

Total COGS Per Unit $20.00

Variable Costs Per Unit $5.00

Total Cost of Sales $25.00

Gross Profit Per Unit $75.00

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Economics of 1 Unit

Type of Fixed Cost Monthly Cost

Entrepreneurial Stipend $50.00

Utilities (Internet, Phone, etc) $100.00

Advertising (Business Website + Cards)

$50.00

Insurance ($1M Liability) $150.00

Rent (Home) $150.00

Depreciation (Laptops + Software) $100.00

Total Monthly Fixed Costs $600.00

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Average Monthly Fixed Costs

Free Hours48

Sleep Hours56

School/ Study Hours

44

Business Hours

20

Time Management Plan

Business Schedule for a Typical Week

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Total Units

Full Capacity

Break-Even Units

020406080

100120140160180

Januar

y

Febru

ary

Mar

ch

Apri

l

May

June

July

August

Septe

mber

Oct

ober

Nove

mber

Dec

ember

Monthly Sales Projections

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Selling Price Per Unit $100.00

# of Units Sold 976

Total Sales $97,600.00

Total COGS $19,520.00

Other Variable Costs $4,880.00

Total Variable Costs $24,400.00

Gross Profit $73,200.00

USAIIRD (Yearly) $7,200.00

Other Costs/Unforeseen $1,000.00

Total Fixed Costs $8,200.00

Profit before Taxes $65,000.00

Less Estimated Taxes @25% $16,250.00

Net Profit $48,750.00

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Projected Yearly Income Statement

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Start-up Investment

Item Where I will buy this?

Cost of Item

2 Laptops with Wireless Capability

Best Buy Already Owned (New)

2 Computer Business Kits www.technibble.com $100.00

Parts & Tools Inventory Various Stores $700.00

Paperwork for LLC Secretary of State $320.00

2 External Hard Drives 1TB www.crunchdeals.com $130.00

2 Norton & Symantec Master Collections

www.symantec.com $880.00

CASH RESERVE $1,800.00

Estimated TOTAL START-UP INVESTMENT $3,930.00Hours Needed

80 hrs

Total Time Investment

$800.00

Wage

$10.00

x =

Total: $4,730.00

…on Sales

…on Investment 1,031%

Annual Net Profit

Start-Up Inv.

$48, 750.00

$4, 730.00

= $10.31

50%

Annual Net Profit

Total Sales

$48, 750.00

$97, 600.00

=

$0.50

Return

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Total: $4,730.00

Source Amount Debt Equity Gift

Personal Savings $4,730.00 X

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Financing StrategyFor Total Start-up Investment

Beta Bytes will donate 4% of their net profits to the One Laptop Per Child Association.

Our consumers will be aware of this by the One Laptop Per Child logo located on our business website and business cards.

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Social Responsibility Plan

Graduate from high school with honors and enter top university

Business

Personal

Sh

ort

Term

Lon

g T

erm Earn a Bachelor’s degree

while subsidizing college costs with Beta Bytes’ earnings and profits

Business & Educational Goals

Get the business formally up and running to work out the “kinks”

Grow service units to 50 per month

Grow service units to roughly 80 per month

Expand target market outside of the Bosnian community to increase density and profitability

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Thank you for your consideration of

Beta Bytes

When your computer bites, we byte back.

www.Beta-Bytes.com

*In the process of registering a domain.