Executive Summary

Custom PCsaims to offer its customers the flexibility of a custom built computer while
providing afriendly and personal shopping experience. Unlike its competitors, Custom
PCs will give each customera personally tailored computer based on their particular
needs, so that customers will not have to pay forwhat they dont need. By carefully
analyzing a customers needs and preferences, Custom PCs can providea perfect fit
based on the customers 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 shoppingexperience as pleasant as possible.Custom PCs is a privately
held corporation run by its owner, Jack Gray. Jack has six years of experiencein
computer building and repair, with two years of employment atComputer Renaissance,
where he sold,repaired, and built computers and accessories. He has also maintained a
private computer repair servicefor two years. He will be supported in daily operations by
an assistant manager/computer technician anda part-time assistant manager, both with
extensive experience in computer repair, sales, andmanagement.With technology
growing rapidly and a large generation still knowing so little about computers, there is
astrong need for personal computer shopping. With specialized technology and graphic
and speed intensivePC games and software, the lack of power in shelf bought
computers calls for a more needs based methodof computer shopping. One that doesnt
require the consumer to spend more money than necessary onfeatures 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 willcompete well in our market by providing the leading edge in computer
technologies, high-quality, reliablemachines built by competent, certified technicians, by
delivering the highest quality in customer supportwhile offering a friendly and pleasant
atmosphere at competitive prices, as well as building a strongreputation with clients
through unmatched service and customer satisfaction.Custom PCs will focus on one
major shopping center: Lakeside Village, which is a dynamic lifestylecomplex located
in Lakelands 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-floorcommercial office space. Our target customers will be a wide range of
ages, seeing as how nearlyeveryone uses computers. However the elderly, who
generally know too little about computers toefficiently shop for one, and
teenagers/young adults thatplay PC games that require more power than theaverage
computer, will be our primary focus. Our services can be suited for consumers of nearly
everyincome class, from the lower middle-class through the high-class consumer.We
will open for business onJune 1, 2008. We project healthy revenues by the end of the
first year, andexpect to triple that by the end of 2010. Our biggest operating expenses
will be rent on our facilities andthe first stocking of a wide range of computer parts and
accessories. We would eventually like to grow intoa franchise, but growth will be
determined based on future cash flow and earnings. We anticipate a netprofit beginning
in our second year.Such a proposed business requires a considerable amount of
investment. Consequently, sufficient fundingin 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
computersintended for a general market.Technology changes rapidly, and so do the
prices. Often consumers end up paying too much for acomputereither due to lack of
knowledge or lack of options. Most computers available off the shelf todayhave more
features than some would ever use, especially the elderly. With an all custom PC store,
aperson with little or no knowledge in computers can purchase a totally new and reliable
computerpersonally suited just for them and spend the least amount of money possible.
This method of computershopping would offer the advantages of a shelf bought
computer, such as warranties, quality, andreliability. 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 questionsabout their product.
No more calling a technical support hotline or sending computers back to
themanufacturer.Custom PCs is a one-stop shop for virtually any computer shopper.
The store dedicates its efforts andresources toward ensuring top-notch customer
satisfaction while meeting the needs and budgets of everyshopper, 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 thebusiness 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 toeventually 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 lifestylecomplex located in Lakelands 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-floorcommercial office space.
1.6 Financial Overview
Initial working capital requirements will be $50,000, which will consist of owners capital
and a businessline 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, andexpect 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, businessesoffering our services, there is little or no competition in the custom
computer niche. However, we will haveto compete on some level with off-the-shelf
retailers. Personal computer sales have been expanding sincethe 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 andemailing. 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 lessinformed shopper and gaming community, our target market will remain
broad, because every consumercan benefit from a custom computer. This includes
professionals using processor and graphic intensivesoftware, or anyone that uses any
kind of specialized application:

Graphic designers

Video editors

Visual artists

Architects

Scientists

Biologists

Physicists

Chemists

Researchers

Software Developers

EngineersThe 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 forspecialized 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 forspecialized 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 computersevery day.
3.4 Sensitivities
Each of the following are sensitive factors pertaining to the industry, which could
potentially affect thebuying behavior of consumers:

Technological advances

Increased capabilities and functionality

New ideas

Competition
4.1 Main Competitors
1.
Computer Renaissance:

Strengths: Matured franchise. Recognized company name. Personal customer service.

Weaknesses: Too many hats. Uncompetitive prices.
2.
Best Buy:

Strengths: Convenience. Competitive prices. Name recognition. National
marketing.Financial resources.

Weaknesses: Sales staff lacks knowledge and experience. Impersonal. Understaffed.
Poorcustomer service.
3.
Internet Retailers:

Strengths: Competitive prices. Convenience.

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 communityinvolvement:
1.
Advertising
will consist of a combination of print, radio, and television. Channeling appropriate
mediaoutlets 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 visibilityand
attracting new customers.

Initial ideas of promotional activities include

hosting all-night gamingtournaments and sponsoring or participation in technology
expos.
3.
Community Involvement
We will become members of the Chamber of Commerce, participating in
itsnetworking functions.
5.3 Sales Strategy
The main goal of Custom PCs is to make the customer feel comfortable shopping for
and purchasing acustom computer. A needs-based analysis can then be made based
on their specifications. Once thecustomer 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 retailspace.
6.2 Production Plan
We will have a wide assortment of computer parts and accessories in inventory in order
to build aspecialized computer of any number of configurations. Keeping a large
inventory will allow largeravailability of parts and accessories for shoppers, and will
allow the needs of the customer to be met byensuring the availability of the necessary
parts to build a specialized computer in a timely manner.The aim for Custom PCs is to
discover a customers needs, and then determine the right computer forthe customer.
The computer specifications and detailed price summary is then put on paper and
explainedfor the customer, who will then be able to adjust specifications and details of
the purchase according totheir 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 Villages many shops,
restaurants, cafs, or ice-creamerieswhile they wait. Accessories will also be sold in the
store including monitors to make Custom PCs asource 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 AssistantManager.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 varioustasks.
3.
Part-time Assistant Manager
: When all employees are present, the part-time assistant manager will beresponsible
for helping the manager maintain the store and assist customers, or other various tasks.
In theabsence of a technician, the part-time assistant manager will be solely responsible
for covering theresponsibilities of the manager while the manager covers the
responsibilities of the technician. The part-timeassistant 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 aconsiderable impact on growth prospects.
Management & Organization
7.1 Management Team
Owner/President John H. Gray III. The Owner/President will have overall fiscal
responsibility, ensuringthat 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 ReputationAn interview will be conducted to determine the
applicants ability to work well with others, judge his orher 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 besalaried. 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 thebusiness grows and more employees
are hired, we intend on providing basic benefits such as retirementplans 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 anationally accredited company with a widely known
name, be recognized as a well-managed business withthe best customer
service and satisfaction, and ultimately be a profitable and prosperous
competitor in theindustry.
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 accountedfor 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 salesper day at $700 each by 2010


Will sell an average of $100 of accessories per day in 2008, an average of
$200 of accessories in2009, and an average of $400 of accessories by
2010Gross Margin:

Gross margin will average 35% for the sale of computers and
accessoriesCompensation:

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 2010Rent:

Rent will be $25 per square foot with an annual 4% escalationUtilities:

$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
2010Other Expenses:

Interest

Payroll Taxes

Supplies

Miscellaneous Taxes