business plan for electronics company pdf

Electronics Store Business Plan PDF Example

• May 23, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful electronics store business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your electronics store business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of an electronics store business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the recreation industry, this guide, complete with a business plan example, lays the groundwork for turning your electronics store business concept into reality. Let’s dive in!

Our electronics store business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the store’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your electronics store’s business concept, market analysis , management, and financial strategy.
• Store & Location: Describes the store’s design, key features, and the benefits of its location (e.g., foot traffic, accessibility).
• Products & Supply: Lists the types of electronics you will sell (e.g., smartphones, laptops, accessories) and outlines your supply chain and sourcing strategy.
• Operations: Details the day-to-day operations of your store, including staffing, inventory management, and customer service.
• Key Stats: Provides data on the electronics market size , growth trends, and other relevant statistics.
• Key Trends: Discusses current trends affecting the electronics sector, such as technology advancements and consumer preferences.
• Key Competitors : Identifies your main competitors and explains how your store will differentiate itself.
• SWOT : Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers, including promotions, advertising, and customer service initiatives.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management: Information on who manages the electronics store and their roles.
• Financial Plan:  Projects the electronics store’s 5-year financial performance, including revenue, profits, and expected expenses.

Electronics Store Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

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Executive Summary

The Executive Summary introduces your electronics store’s business plan, offering a concise overview of your store and its offerings. It should detail your market positioning, the range of electronic products and services you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your electronics store will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your store’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the store’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your store’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For an electronics store, the Business Overview section can be concisely divided into 3 main slides:

Store & Location

Briefly describe the store’s physical environment, emphasizing its layout, design, and the overall atmosphere that makes it inviting for customers. Mention the store’s location, highlighting its accessibility and the convenience it offers to customers, such as proximity to major shopping centers, public transportation, or ample parking facilities. Explain why this location is advantageous in attracting your target clientele.

Products & Supply

Detail the range of electronic products and services offered, from consumer electronics like smartphones, laptops, and home appliances to specialized items such as gaming consoles, smart home devices, and professional audio equipment. Outline your pricing strategy , ensuring it reflects the quality of products provided and matches the market you’re targeting. Highlight any exclusive products, warranty services, or membership programs that provide added value to your customers, encouraging repeat business and customer loyalty.

Provide an overview of the daily operations of the store, including store hours, inventory management, customer service protocols, and sales processes. Explain the supply chain and vendor relationships that ensure a consistent stock of popular and in-demand electronics. Mention any technology or systems in place for efficient operations, such as point-of-sale systems, inventory tracking software, and customer relationship management tools.

Make sure to cover here _ Store & Location _ Products & Supply _ Operations

Market Overview

Industry size & growth.

In the Market Overview of your electronics store business plan, start by examining the size of the electronics industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in smart home devices, wearable technology, and sustainable electronics. For example, highlight the demand for products that offer enhanced connectivity, energy efficiency, and cutting-edge technology. Discuss the growing popularity of e-commerce and the trend towards integrating online and offline shopping experiences.

Key Competitors

Then, consider the competitive landscape, which includes a range of stores from large electronics chains to specialized boutiques, as well as online retailers. Emphasize what makes your store distinctive, whether it’s through exceptional customer service, a unique range of products, or specialization in certain technology segments. This section will help articulate the demand for electronics, the competitive environment, and how your store is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

SWOT Analysis

First, conduct a SWOT analysis for the electronics store , highlighting Strengths (such as a diverse product range and knowledgeable staff), Weaknesses (including high operational costs or strong competition), Opportunities (for example, a growing demand for smart devices and e-commerce expansion), and Threats (such as economic downturns that may decrease consumer spending on non-essential electronics).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, promotional discounts, engaging social media presence, and community involvement.

Finally, create a detailed timeline that outlines critical milestones for the electronics store’s opening, marketing efforts, customer base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the electronics store’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the electronics store toward its financial and operational goals.

For your electronics store business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your electronics store’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs , and capital expenditures.

For your electronics store business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Electronics Company Business Plan Template

Document description.

This electronics company business plan template has 33 pages and is a MS Word file type listed under our business plan kit documents.

Sample of our electronics company business plan template:

Electronics Company Business Plan [YOUR NAME] [YOUR TITLE] Phone: [YOUR PHONE NUMBER] Email: [[email protected]] [YOUR WEBSITE ADDRESS] Confidentiality Agreement The undersigned reader acknowledges that the information provided by [YOUR COMPANY NAME] in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of [YOUR COMPANY NAME]. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to [YOUR COMPANY NAME]. Upon request, this document is to be immediately returned to [YOUR COMPANY NAME].

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Electronics Company Business Plan Template

This Electronics Company Business Plan template provides a comprehensive guide for starting and managing an electronics business. It includes market analysis, financial projections, and business strategies to ensure success.

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Electronics Business Plan Template

• Retail , Business Plan , Browse by Categories , Browse by Industry , Retail Business Plan , Startup Business Plan

$ 250 Original price was: $250. $ 99 Current price is: $99.

Oak Business Consultant Provides a comprehensive, easy-to-use electronic business plan template designed specifically for startups and existing businesses in the electronics sector. This template is tailored to address the nuances and specific requirements of the electronics industry, ensuring a focused and effective business strategy. Adapt the template to fit your niche, whether you’re into consumer electronics, semiconductors, or electronic manufacturing services.

In addition, it includes visual representations for market analysis, competitor benchmarking, and SWOT analysis. Given the increasing emphasis on sustainable practices, this section helps businesses plan their eco-friendly initiatives. The electronic business plan template is not just a document; it’s a roadmap tailored for the electronics sector, guiding businesses to strategize, operate, and thrive in a competitive landscape.

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• This Product: Electronics Business Plan Template - $ 250 Original price was: $250. $ 99 Current price is: $99.
• Electronic Store Excel Financial Model - $ 130 Original price was: $130. $ 95 Current price is: $95.
• Online Electronic Store Pitch Deck Template - $ 30 Original price was: $30. $ 20 Current price is: $20.

Description

Introduction.

Embarking on an electronic business venture in the dynamic electronics marketplace demands more than a business idea . A solid business plan is your compass. This template aims to ensure the smooth running of your enterprise from its inception to its full-fledged operations. It can be helpful in consumer electronic stores, the largest electronics companies, personal appliances stores, and electronic repair companies. 

Electronic Startup Companies

Amid the ever-evolving world of electronic appliances and innovations, numerous startups offer everything from wearable tech to electric razors. For your startup to succeed, grounding it in proven business models and adopting a customer-centric strategy is paramount. It includes a wide range of services and products and shows the type of business in the electronic industry to fulfill your company’s primary goals. 

Executive Summary

A detailed Business Plan provides a succinct overview of your electronic business , detailing your objectives, electronic appliances on offer, target market, and an anticipated income statement. Captivate potential investors and partners right from this section.

Company Introduction

Reveal the ethos of your Electronics Repair Shop or your retail store business plan for Consumer Electronics Retail Store, Inc. Share your mission, goals, and the company’s origin story. Describe your role as the business owner in maintaining robust business relationships.

Industry Analysis

The electronics sector is vast. Highlighting contributions from established players and identifying emerging trends is vital. By understanding the terrain and gauging consumer sentiment, especially during economic meltdowns, you’ll differentiate your venture.

Market Analysis

Conduct detailed market surveys to pinpoint your venture ‘s position in the larger electronics landscape. Recognize your competitors, identify market gaps, and stay abreast of consumer trends.

Target Market

Highlight your ideal customer base. Understand their inclinations and explain how your range of electronic products, from electronic equipment to electric razors, can resonate with them. Enhancing customer service experience is pivotal for loyalty.

Competitive Analysis

Knowledge about your competitors in the electronic business realm is essential. Unravel their strengths and marketing strategies. Harness these insights to uniquely position your offerings in the market.

Marketing Plan

Devise a plan detailing your marketing strategies, from digital campaigns to partnerships. Specify how you’ll reach your target market, keeping in mind consumer sentiment, especially during potential economic meltdowns. It helps to achieve business goals and retain potential customers in the electronic industry. 

Operational Plan

Outline the operational blueprint for your venture. Discuss logistics, the integration of accounting software, and other tools that will ensure efficiency. Whether you’re starting a physical Electronics Repair Shop or delving into the online world, clarity here is key.

Our Team and Advisors

Showcase your dedicated team and the value they bring. Highlight any advisors or professionals who have lent their expertise, ensuring your venture is grounded in industry insights.

Roadmap and Milestone

Detail your future vision and corresponding milestones. Whether it’s about expanding your electronic appliance range, navigating challenges of an economic meltdown, or introducing a welfare package for your employees, be specific in your projections.

Financial Plan

Shed light on your financial aspirations. This includes details on your startup capital and your expected financial trajectory. Whether you’re focusing on electronic repair shops or launching a new product line, transparency is critical. It includes a market share, cash flow statement, income statement, balance sheet, and other relevant financial projection templates. 

Funding from Investors

Specify your investment requirements. Be it funds for expanding repair services or for launching a new line of electronic appliances, offer clear insights into your funding needs and allocation.

Conclude with a persuasive pitch highlighting your distinct value in the electronic business domain. Provide clear contact details and avenues for stakeholders to engage with you.

Frequently Asked Questions

• How do I write a business plan for electronics? Starting a business plan for electronics requires comprehensive research and understanding of the industry. Begin with a clear objective, market and competitive analysis, financial planning, and marketing strategies. Ensure that you understand your target audience and their preferences.
• What are the 7 elements of a business plan PDF? The seven core elements include the executive summary, business description, market analysis, organizational structure, product or service line, marketing and sales strategies, and financial projections.

With dedication, insights, and a professional business plan, carving a niche in the electronics sector is well within reach. Proper planning and execution will guide you through the challenges and opportunities ahead.

The Retail Industry case study was prepared for one of our clients, who is a serial entrepreneur who has invested in multiple businesses. Now he was willing to invest in Retail industry through foreign investment. This platform is a niche market, as he only focused on a specific product. This case study shows how we served and fulfilled our client’s requirements. For more information, click here: Retail Industry Case Study .

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Free PDF Business Plan Templates and Samples

By Joe Weller | September 9, 2020

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We’ve gathered the most useful collection of business plan PDF templates and samples, including options for organizations of any size and type.

On this page, you’ll find free PDF templates for a simple business plan , small business plan , startup business plan , and more.

Simple Business Plan PDF Templates

These simple business plan PDF templates are ready to use and customizable to fit the needs of any organization.

Simple Business Plan Template PDF

This template contains a traditional business plan layout to help you map out each aspect, from a company overview to sales projections and a marketing strategy. This template includes a table of contents, as well as space for financing details that startups looking for funding may need to provide. 

Download Simple Business Plan Template - PDF

Lean Business Plan Template PDF

This scannable business plan template allows you to easily identify the most important elements of your plan. Use this template to outline key details pertaining to your business and industry, product or service offerings, target customer segments (and channels to reach them), and to identify sources of revenue. There is also space to include key performance metrics and a timeline of activities. 

Download Lean Business Plan Template - PDF

Simple 30-60-90 Day Business Plan Template PDF

This template is designed to help you develop and implement a 90-day business plan by breaking it down into manageable chunks of time. Use the space provided to detail your main goals and deliverables for each timeframe, and then add the steps necessary to achieve your objectives. Assign task ownership and enter deadlines to ensure your plan stays on track every step of the way.

Download Simple 30-60-90 Day Business Plan Template

PDF | Smartsheet

One-Page Business Plan PDF Templates

The following single page business plan templates are designed to help you download your key ideas on paper, and can be used to create a pitch document to gain buy-in from partners, investors, and stakeholders.

One-Page Business Plan Template PDF

Use this one-page template to summarize each aspect of your business concept in a clear and concise manner. Define the who, what, why, and how of your idea, and use the space at the bottom to create a SWOT analysis (strengths, weaknesses, opportunities, and threats) for your business. 

Download One-Page Business Plan Template

If you’re looking for a specific type of analysis, check out our collection of SWOT templates .

One-Page Lean Business Plan PDF

This one-page business plan template employs the Lean management concept, and encourages you to focus on the key assumptions of your business idea. A Lean plan is not stagnant, so update it as goals and objectives change — the visual timeline at the bottom is ideal for detailing milestones. 

Download One-Page Lean Business Plan Template - PDF

One-Page 30-60-90 Day Business Plan Template

Use this business plan template to identify main goals and outline the necessary activities to achieve those goals in 30, 60, and 90-day increments. Easily customize this template to fit your needs while you track the status of each task and goal to keep your business plan on target. 

Download One-Page 30-60-90 Day Business Plan Template

For additional single page plans, including an example of a one-page business plan , visit " One-Page Business Plan Templates with a Quick How-To Guide ."

Small Business Plan PDF Templates

These business plan templates are useful for small businesses that want to map out a way to meet organizational objectives, including how to structure, operate, and expand their business.

Simple Small Business Plan Template PDF

A small business can use this template to outline each critical component of a business plan. There is space to provide details about product or service offerings, target audience, customer reach strategy, competitive advantage, and more. Plus, there is space at the bottom of the document to include a SWOT analysis. Once complete, you can use the template as a basis to build out a more elaborate plan. 

Download Simple Small Business Plan Template

Fill-In-the-Blank Small Business Plan Template PDF

This fill-in-the-blank template walks you through each section of a business plan. Build upon the fill-in-the-blank content provided in each section to add information about your company, business idea, market analysis, implementation plan, timeline of milestones, and much more.

Download Fill-In-the-Blank Small Business Plan Template - PDF

One-Page Small Business Plan Template PDF

Use this one-page template to create a scannable business plan that highlights the most essential parts of your organization’s strategy. Provide your business overview and management team details at the top, and then outline the target market, market size, competitive offerings, key objectives and success metrics, financial plan, and more.

Download One-Page Business Plan for Small Business - PDF

Startup Business Plan PDF Templates

Startups can use these business plan templates to check the feasibility of their idea, and articulate their vision to potential investors.

Startup Business Plan Template

Use this business plan template to organize and prepare each essential component of your startup plan. Outline key details relevant to your concept and organization, including your mission and vision statement, product or services offered, pricing structure, marketing strategy, financial plan, and more.

‌Download Startup Business Plan Template

Sample 30-60-90 Day Business Plan for Startup

Startups can use this sample 30-60-90 day plan to establish main goals and deliverables spanning a 90-day period. Customize the sample goals, deliverables, and activities provided on this template according to the needs of your business. Then, assign task owners and set due dates to help ensure your 90-day plan stays on track.

‌Download Sample 30-60-90 Day Business Plan for Startup Template 

For additional resources to create your plan, visit “ Free Startup Business Plan Templates and Examples .”

Nonprofit Business Plan PDF Templates

Use these business plan PDF templates to outline your organization’s mission, your plan to make a positive impact in your community, and the steps you will take to achieve your nonprofit’s goals.

Nonprofit Business Plan Template PDF

Use this customizable PDF template to develop a plan that details your organization’s purpose, objectives, and strategy. This template features a table of contents, with room to include your nonprofit’s mission and vision, key team and board members, program offerings, a market and industry analysis, promotional plan, financial plan, and more. This template also contains a visual timeline to display historic and future milestones.

Download Nonprofit Business Plan Template - PDF

One-Page Business Plan for Nonprofit Organization PDF 

This one-page plan serves as a good starting point for established and startup nonprofit organizations to jot down their fundamental goals and objectives. This template contains all the essential aspects of a business plan in a concise and scannable format, including the organizational overview, purpose, promotional plan, key objectives and success metrics, fundraising goals, and more.

Download One-Page Business Plan for Nonprofit Organization Template - PDF

Fill-In-the-Blank Business Plan PDF Templates

Use these fill-in-the-blank templates as a foundation for creating a comprehensive roadmap that aligns your business strategy with your marketing, sales, and financial goals.

Simple Fill-In-the-Blank Business Plan PDF

The fill-in-the-blank template contains all the vital parts of a business plan, with sample content that you can customize to fit your needs. There is room to include an executive summary, business description, market analysis, marketing plan, operations plan, financial statements, and more. 

Download Simple Fill-In-the-Blank Business Plan Template - PDF

Lean Fill-In-the-Blank Business Plan PDF

This business plan is designed with a Lean approach that encourages you to clarify and communicate your business idea in a clear and concise manner. This single page fill-in-the-blank template includes space to provide details about your management team, the problem you're solving, the solution, target customers, cost structure, and revenue streams. Use the timeline at the bottom to produce a visual illustration of key milestones. 

Download Fill-In-the-Blank Lean Business Plan Template - PDF

For additional resources, take a look at " Free Fill-In-the-Blank Business Plan Templates ."

Sample Business Plan PDF Templates

These sample business plan PDF templates can help you to develop an organized, thorough, and professional business plan.

Business Plan Sample 

This business plan example demonstrates a plan for a fictional food truck company. The sample includes all of the elements in a traditional business plan, which makes it a useful starting point for developing a plan specific to your business needs.

Download Basic Business Plan Sample - PDF

Sample Business Plan Outline Template

Use this sample outline as a starting point for your business plan. Shorten or expand the outline depending on your organization’s needs, and use it to develop a table of contents for your finalized plan.

Download Sample Business Plan Outline Template - PDF

Sample Business Financial Plan Template

Use this sample template to develop the financial portion of your business plan. The template provides space to include a financial overview, key assumptions, financial indicators, and business ratios. Complete the break-even analysis and add your financial statements to help prove the viability of your organization’s business plan.

Download Business Financial Plan Template

PDF  | Smartsheet

For more free, downloadable templates for all aspects of your business, check out “ Free Business Templates for Organizations of All Sizes .”

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A Sample Electronics Repair Shop Business Plan Template

Are you about starting an electronics repair business? If YES, here is a complete sample electronics repair plan template & feasibility report you can use for FREE . Okay, so we have considered all the requirements for starting an electronics repair business. We also took it further by analyzing and drafting a sample electronics repair marketing plan template backed up by actionable guerrilla marketing ideas for electronics repair companies. So let’s proceed to the business planning section.

Why Start an Electronics Repair Business?

If you studied electrical electronics engineering at the university or even in a technical school, you can comfortably set up your own electronics repair shop in any part of the united states and still make headway in the business. Among the factors that need to be considered before starting a new business is the size/population of the city or town you intend starting the business, the level of competition you are likely going to face, and of course the availability of market for your services or products.

An electronics repair shop is a money spinning business that an aspiring entrepreneur who is looking towards starting a business in the United States of America should consider starting. One good thing about this type of business is that you can learn the technical skills from someone who is already in the business or from a technical school.

All you need to do is to rent a shop in a good location and then setup your shop and advertise your electronics repair business. If you are lucky to be one of the few electronic repair technicians in your community, you will sure make good money from this type of business.

Almost every home and office has one form of electronics or the other, and over time these electronic gadgets will require maintenance, servicing and repairs. This goes to show that there is indeed a huge market for electronic repair shops. All you need to do to start this business is to learn the technical skills required to service, maintain and repair electronic gadgets and also to acquire the required work tools.

In general, starting an electronic repair shop business requires low startup capital, but it is indeed a very profitable venture if it is well positioned and you know how to deliver excellent jobs. The amount you can make per day is largely dependent on your ability to market your service.

Here is a sample electronics repair business plan template that will guide you to write yours.

A Sample Electronics Repair Business Plan Template

1. industry overview.

The Electronic and Computer Repair Services industry is made of companies in that are engaged in repairing and maintaining one or more of the following: consumer electronic equipment, computers, office machines, communication equipment and other electronic and precision equipment.

Establishments in this industry repair items including microscopes, radar and sonar equipment, televisions, stereos, video recorders, computers, photocopying machines, communications equipment, scientific instruments and medical equipment.

If you are in the United States, you will agree that the Electronic and Computer Repair Services industry is looking for ways to increase revenue generation. As a matter of fact, with increasing affordability of electronics and computers, consumers and businesses will rather purchase new products as against repairing their faulty equipment, hence leading to a drop in demand and revenue for the industry.

Additionally, electronic users have opted to purchase more advanced products and scrap damaged or outdated goods. In recent time, the life cycle of electronic goods and computers has shortened, and the introduction of new technology has provided further incentive for consumers and businesses to replace their old equipment.

The industry is still dominated by original equipment manufacturers (OEMs), which are companies that will visit a customer to repair or replace the same products that they make. In recent years, large chains like Best Buy with their “Geek Squad” have opened up repair arms; powered by their name recognition and huge marketing budget, they immediately became a formidable competitor for any computer repair business. In addition, with electronics cheaper than ever, some people have tended to replace their electronics entirely rather than bother to have them repaired.

The Electronic and Computer Repair Services industry is indeed a very large industry and pretty much thriving in all the parts of the world. As a matter of fact, there are no companies with a leading market share in the industry. Statistics has it that in the United States of America alone, there are about 57,629 licensed and registered electronic and computer repair services related businesses responsible for employing about 141,369 employees and the industry rakes in a whooping sum of $19bn annually with an annual growth rate projected at 0.4 percent within 2012 and 2017.

A recent report published by IBISWorld shows that the geographic distribution of industry establishments closely mirrors the geographic distribution of the US population. Most industry players are small-scale, labor-intensive operations, and therefore, they cater to their local markets.

The report further stated that the Southeast region accounts for the largest share of the US population at 25.6 percent and 27.8 percent of total establishments. Florida accounts for a significant share of both population and industry presence in the region.

The report also shows that the West holds a large share of industry establishments (16.8 percent) and US population (17.2 percent). The largest state, in terms of establishments, is California, which captures 11.9 percent.

Some of the factors that encourage entrepreneurs to start their own electronic and computer repair services are that people and businesses who can’t afford to purchase new electronics would always employ the services of electronic repair companies and it will be safe to state that for now, the business is a profitable business. It requires minimal startup capital and minimal manpower to launch and operate the business.

2. Executive Summary

Harry Perry® Electronics Repair Shop, LLC is a U.S based electronics repair business. We have been able to secure a standard shop facility in a central business district close to one of the largest residential estates in Trenton – New Jersey. We are an electronics repair business that is set to compete in the highly competitive industry not only in Trenton – New Jersey, but also throughout the United States market.

Harry Perry® Electronics Repair Shop, LLC will offer all aspects of electronics repair services such as consumer electronics (including home theaters, DVD, radio, TV and VCR) repairs, computer and office machine repairs, communications equipment repairs and other electronic equipment repairs such as dental equipment, medical and surgical equipment and optical instruments et al.

Our business goal is to become one of the leading electronics repair shop business in the United States and we will make sure that we do all we can to compete favorably with leaders in the industry.

Our workers are going to be selected from a pool of certified electronics and computer repair engineers in and around Trenton – New Jersey. We will make sure that we take all the members of our workforce through the required training that will position them to meet the expectations of the company.

At Harry Perry® Electronics Repair Shop, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Harry Perry® Electronics Repair Shop, LLC is founded by Engr. Harry Perry an electrical electronics engineer who graduated with from Massachusetts Institute of Technology (B.Engr. Electrical/Electronic Engineering). He has a combined experience that can help them build Harry Perry® Electronics Repair Shop, LLC to favorably compete with other leading electronics repair businesses in the United States of America.

3. Our Products and Services

Harry Perry® Electronics Repair Shop, LLC was established with the aim of maximizing profits in the electronics repair services industry. We want to compete favorably with the leading electronics repair businesses in the United States which is why we have but in place a competent quality assurance team that will ensure that every repair carried out meet and even surpass our customers’ expectations.

We will work hard to ensure that Harry Perry® Electronics Repair Shop, LLC is not just accepted in Trenton – New Jersey but also in other cities in the United States of America. Our repair services are listed below;

• Consumer electronics (including home theaters, DVD, radio, TV and VCR) repairs
• Computer and office machine repairs
• Communications equipment repairs
• Other electronic equipment repairs such as dental equipment, medical and surgical equipment and optical instruments

4. Our Mission and Vision Statement

• Our vision is to launch a standard electronics repair business whose services and brand will not only be accepted in Trenton – New Jersey but also in other cities in the United States of America.
• Our mission is to provide professional electronics repair services that owners of electronics will come to when their electronics become faulty. We want to build an electronics repair business that can favorably compete with other leading brands in the electronics repair services industry.

Our Business Structure

Harry Perry® Electronics Repair Shop, LLC, is an electronics repair business that intends starting small in Trenton – New Jersey, but hopes to grow big in order to compete with leading electronics repair companies in the industry. We are aware of the importance of building a solid business structure that can support the kind of business we want to own, which is why we are committed to only hire the best hands within our area of operation.

At Harry Perry® Electronics Repair Shop, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all our stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer
• Head, Technical Services

Human Resources and Admin Manager

• Sales and Marketing Executive
• Electronics Repair and Maintenance Engineers and Technicians (10)

Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions.
• Generates and implements the organization’s vision, mission, and overall direction -.
• Responsible for fixing prices and signing business deals
• Provides direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Head, Technical Services:

• Serves as project manager of the organization; works directly with employees
• Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
• Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
• Maintains quality service by establishing and enforcing organization standards.
• Makes certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communications between management and electronics repairs and maintenance engineers and technicians
• Ensures that the organization works in line with international best practices
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of daily office activities

Sales and Marketing Manager

• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Creates new markets cum businesses for the organization
• Empowers and motivates the sales team to meet and surpass agreed targets

Accountant /Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Accountable for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Electronics Repair and Maintenance Engineers (2) and Technicians (8)

• Responsible for carrying out consumer electronics repairs
• Carrying out computer and office machine repairs
• Responsible for carrying out communications equipment repairs
• Responsible for handling other electronic equipment repairs such as dental equipment, medical and surgical equipment and optical instruments
• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services

6. SWOT Analysis

Harry Perry® Electronics Repair Shop, LLC engaged the services of a professional in the area of business consulting and structuring to assist our organization in building a well – structured electronics repair business that can favorably compete in the highly competitive electronics repair industry in the United States.

Part of what the business consultant did was to work with the management of our organization in conducting a comprehensive SWOT analysis for Harry Perry® Electronics Repair Shop, LLC. Here is the result of the SWOT analysis that was conducted on behalf of Harry Perry® Electronics Repair Shop, LLC;

Our core strength lies in the power of our workforce. We have a team of highly trained electronics repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by international best practices.

As a new electronics repair business in Trenton – New Jersey, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the highly competitive electronics repair industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.

• Opportunities:

The truth is that the opportunities in the electronics repair industry is massive considering the number of individuals and corporate organizations that own one form of electronics or the other and even computers. As an electronics repair business, we are prepared to take advantage of any opportunity that is available in the industry.

From our findings, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. In addition, with electronics becoming cheaper than ever, some people have the tendencies to replace their electronics entirely rather than bother to have them repaired.

Another threat that may likely confront us is the arrival of a new electronics repair shop and even original equipment manufacturers who run repair centers in the same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

One good thing about the electronics repair services industry is that it is an open industry hence it has a low level of market share concentration. Even though large electronics and computer manufacturing companies operate in the industry, revenue is also spread among thousands of small electronics repair centers and even mobile electronics repair businesses.

As a matter of fact, no single electronics repair shop or electronics manufacturing company can account for more than 5.0 percent of the total revenue generated in the industry. This is the reason why smaller electronics repair shops account for a large percentage of the players in the industry.

It is a known trend in the developed world to find steady growth in the electronics repair industry. The industry has grown steadily over the last five years in the United States of America and it is projected to continue to enjoy steady growth.

Individuals and businesses have increased demand for electronics repair services, as rising per capita disposable income and corporate profit encourages consumers to opt for electronics repair and maintenance services over do-it-yourself repair. Going forward, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their electronics and computers.

8. Our Target Market

Prior to starting our electronics repair business in Trenton – New Jersey, we conducted a market survey and feasibility studies and we are certain that there is a wide range of clients who would need our services. In view of that, we have created strategies that will enable us reach out to various corporate and individual clients who we know can’t afford to do without our services.

Below is a list of the people and organizations that can market our repair services to;

• Individuals and households who own electronics
• Banks, Insurance Companies and other related Financial Institutions
• Corporate Organizations
• Manufacturers and Distributors
• The Government (Public Sector)
• Schools (High Schools, Colleges and Universities)
• Religious Organizations (sound system and electrical gadgets)
• Television Stations
• Printing Press (Publishing Houses)
• Entrepreneurs and Start-ups

Our Competitive Advantage

Without a shadow of doubt, there are loads of big time investors that have a stake in the electrical repair services industry; but one thing is certain, there is room big enough to accommodate everyone. What smaller electronics repair companies need to do to survive in the industry is to concentrate on providing electronics repair, maintenance and installation services to households, individuals, estates, communities, schools, hospitals and hotels et al before bidding for big contracts from corporations and government agencies.

We are quite aware that to be highly competitive in the industry means that you are not only expected to deliver highly reliable electronics installation, repair, and maintenance jobs, but you must be able to meet set targets. No one would want to continue to bring their faulty electronics to your shop if they know that you are not going to carry out a thorough repair job.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Harry Perry® Electronics Repair Shop, LLC is established with the aim of maximizing profits in the electronics repair industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.

Harry Perry® Electronics Repair Shop, LLC will generate income by offering the following electronics repair related services;

10. Sales Forecast

One thing is certain, there would always be corporate organizations and individuals who would need to repair their faulty electronics and gadgets hence the need for the services of electronics repair shops.

We are well positioned to take on the available market in electronics and computer repair services industry in Trenton – New Jersey and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow our electronics repair company to enviable heights.

We have been able to critically examine the electronics repair market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Trenton – New Jersey.

• First Year: $250,000
• Second Year: $550,000
• Third Year: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same electronics repair services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

We are fully aware of the competition that exists in the electronics repair industry, hence we have been able to hire some of the best marketing experts to handle our sales and marketing. Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis to meet their targets and the overall business goal of Harry Perry® Electronics Repair Shop, LLC.

Our corporate goal is to grow Harry Perry® Electronics Repair Shop, LLC to become one of the top 10 electronics repair brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Trenton – New Jersey but also in other cities in the United States of America.

Harry Perry® Electronics Repair Shop, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our electronics repair company by sending introductory letters alongside our brochure to households, electronics shops, corporate organizations, religious organizations and key stake holders in and around Trenton – New Jersey
• Promptness in bidding for electronics installation, repair and maintenance contracts from the government and other cooperate organizations
• Advertise our business in relevant business magazines, newspapers, TV stations, and radio station.
• List our business on yellow pages ads (local directories)
• Attend relevant international and local expos, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
• Leverage on the internet to promote our business
• Engage in direct marketing approach
• Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate and individual clients in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our electronics repair and maintenance company.

Below are the platforms we intend to leverage on to promote and advertise Harry Perry® Electronics Repair Shop, LLC;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
• Install our billboards in strategic locations all around Trenton – New Jersey
• Engage in roadshows from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• List our electronics repair and maintenance company in local directories / yellow pages
• Advertise our electronics repair and maintenance company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo et al.

12. Our Pricing Strategy

At Harry Perry® Electronics Repair Shop, LLC, we will keep the prices of our repair services below the average market rate by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one – off jobs or government contracts like electronics installation, repair and maintenance jobs which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

• Payment Options

The payment policy adopted by Harry Perry® Electronics Repair Shop, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Harry Perry® Electronics Repair Shop, LLC will make available to her clients;

• Payment with cash
• Payment via Point of Sale Machine (POS)
• Payment via online bank transfer
• Payment via check

In view of the above, we have chosen banking platforms that will enable our clients make payment for our repair services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. However, this is what it would cost us to setup Harry Perry® Electronics Repair Shop, LLC in the United of America;

• Business incorporating fees in the United States of America will cost – $750.
• The budget for Liability insurance, permits and license will cost – $3,500
• Acquiring an office space or warehouse that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
• The amount required to purchase the needed tool box and repair equipment – $25,000
• Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
• Amount required to purchase the needed software applications – $3,500
• Launching an official Website will cost – $500
• Amount needed to pay bills and staff members for at least 2 to 3 months – $70,000
• Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred and fifty thousand ( 250,000 ) U.S. dollars to successfully set up a medium scale but standard electronics repair and maintenance company in the United States of America.

Generating Startup Capital for Harry Perry® Electronics Repair Shop, LLC

Harry Perry® Electronics Repair Shop, LLC is a business that will be owned and managed by Engr. Harry Perry and his immediate family members. They are the sole financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the startup capital from personal savings and sale of his stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank.

N.B: We have been able to generate about $50,000 ( Personal savings $30,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

One of our major goals of starting Harry Perry® Electronics Repair Shop, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our electronics repair and maintenance services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Harry Perry® Electronics Repair Shop, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts in various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility for our workshop: Completed
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Generating part of the startup capital from the founders: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of Logo for the business: Completed
• Secure trademark for our products: In Progress
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed electronics repair tool box and equipment, furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
• Creating Official Website for the business: In Progress
• Creating Awareness for the business: In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in various industries: In Progress

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COMPANY NAME ADDRESS CITY, STATE, ZIP CODE Tel.  Fax: Email:

COMPANY NAME is an Electrical Sub-Contractor, primarily doing commercial, industrial, medical and residential. COMPANY NAME offers value engineering for energy evaluation & efficiency. The purpose of the company's plan is to grow in the fields mentioned above as well as branch out into Nevada, Arizona & New Mexico. COMPANY NAME also wants to further the company's market share in the solar/energy and the service industry.

1.1 Objectives

1. To fund growth of existing business & increase market share of our service business 2. Expand into the field of energy/solar 3. With additional capital the ability to bid larger projects.

1.2 Mission

COMPANY NAME 's sole purpose is to establish a profitable and well managed company while at the same time designing to please the local residents with excellent service in California.  COMPANY NAME’s near future plans are to grow the company's electrical contracting business in California and other states such as Nevada, Arizona and New Mexico.  The company will seek to provide these services in the timeliest manner and with an ongoing comprehensive quality control program to provide 100% customer satisfaction.

1.3 Keys to Success

1.  Servicing and maintaining our existing client base 2.  Having employees that understand and implement our high standards 3.  Reliability and communication with clients from beginning of each job to end.

COMPANY NAME is in the city of Orange and has been in the county of Orange since 1994, servicing Los Angeles, Riverside, San Bernardino and San Diego counties. We provide electrical contracting services to a wide range of clients, including owners and general contractors, mainly in the medical field. COMPANY NAME's current corporate office is at [INSERT ADDRESS].   The company's corporate office is a 4,650 sq ft concrete tilt up building. This corporate office houses all administrative operations, with warehouse space used for inventory and service vehicles. All of the work is done at many off-site locations.

2.1 Company Ownership

COMPANY NAME is a privately held C Corporation where OWNER’S NAME is president & secretary and CO-OWNER’S NAME is Vice President.

2.2 Company History

In 2006 and 2007 COMPANY NAME experienced a decrease in sales due to California budget cuts for the company's voice and data division that had provided services to Employment Development Departments.   The decrease in sales was also due to existing clients who were very slow in paying for services rendered.  COMPANY NAME had also made the decision to focus more on the medical field and their primary client base. The company had cut ties with three general contractors and proceeded to establish new contacts within the medical field. The year of 2008 was a great year and COMPANY NAME was on track to double sales; however the economy was starting to slow. 2009 was a respectable year, however, again, due to the economy COMPANY NAME re-evaluated again to expand into solar/energy industry.

Table: Past Performance

3.0 Services

COMPANY NAME 's products are: 1) Design build which is based on a per square foot price. 2) Contract work which is specific to a certain set of blueprints/drawings. 3) Service work that is based on an hourly rate.

COMPANY NAME will focus on four main markets within the industry such as: MEDICAL This field is a viable source of business now and due to ever changing technology a great source of future business that will sustain us long term. SERVICE There will always be a need for service and this is an area that we have never taped into and believe there is great potential. COMMERCIAL/INDUSTRIAL This has been the company's main focus; COMPANY NAME has built great long term relationships with building owners who now look for our guidance in directing their energy improvements. SOLAR/ENERGY We feel we always need to look at new trends and stay ahead of change in our approach to long term sustainability.

How to Organize Paperwork for Business

We must all be efficient and productive in today's business world. Being organized helps you handle tasks quickly so that you have more time and space to do what you truly want to do.

1. One-time mail system.

Have an In Box on your desk for new mail/information. Look at your mail once a day. Review each piece of mail once to decide whether to do it, delegate it or dump it. If it adds value to your business or is required for doing business, do it or delegate it. If not, then dump it. If you keep it, then categorize it using the A, B, C system. Use your time wisely.

2. Categories for performing your work.

Set up desk trays labeled A, B, and C. Items in category A must be handled today. Category B items must be handled this week. Category C items are generally filing that must be kept because they have some value, such as invoices, tax returns, and statements.

3. Prioritize your work within categories A and B.

Sort the categories into 1, 2, and 3. A1 must be done NOW, it is "hot" or "urgent." A2 can be done this AM. A3 can be done by the end of the day. B1 is done on Monday. B2 done by Wednesday. B3 done by the end of the week. Make the decision once, then do the work.

Set a day and time each week for filing. Don't let it stack up. Give yourself space to work.

5. Purge your files on a regular schedule.

For example, purge files every six months. Send these documents to storage. This gives you more space to work.

6. Storing records.

Store documents in boxes. Mark the contents of each box. For instance, clients A-F2013. Mark the destruction date on the box, D = June 02. Base your destruction date on the legal requirements for your industry.

7. Toss out stored documents on a regular schedule.

For example, two times per year, visit the storage area and remove boxes that are beyond the destruction date. Depending on your industry, they may need to be shredded rather than put in the trash.

8. Color code your records.

For example, clients with first names beginning with A-F are in Orange folders; G-K Yellow; L-P Blue; Q-Z Green. This will save you time when you are searching for a file. You can also apply this to AP, AR, Payroll, and Taxes. This can also be done by year. For example, 2012 AP is blue; 2013 AP is purple.

9. Hot files.

Put a red cover on files that you consider "hot." These could be urgent projects, legally or financially sensitive, or important VIP clients. Keep these visually at your fingertips.

10. Use out guides.

If you work with other people and share files, create a check-out system so that files are not lost. Put the file name, taken-by name, and date on a card and place it in an out guide box. When you can't find what you want, check the box to see if your co-worker is using the file. Be sure to remove the card from the box when you return the file.

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Start » strategy, how to build a manufacturing business plan.

A manufacturing business plan can help get your new venture off the ground and running smoothly.

A manufacturing business plan outlines the goals, strategies, and operations of a manufacturing company. Use this article as a road map for your business and to help recruit investors as your operation grows.

Manufacturing business plans vary slightly compared to business plans for other types of companies. Here's what goes into a manufacturing business plan and how to create one for your venture.

Why do companies need manufacturing business plans?

Manufacturing business plans are used for the same purpose as other companies' plans. These documents help set clear goals and objectives for internal stakeholders. They provide a framework for making decisions around financing, budgeting, hiring, and procurement. Additionally, investors and lenders often require a business plan to assess the venture's potential.

Business plans are meant to be flexible, living documents that are revisited periodically as the business grows. Writing a manufacturing business plan is a good exercise in understanding what equipment will be needed, evaluating the size of the market your business is based in, and assessing your competition. These things will change over time, so make sure you adjust your plan as your company matures.

[Read more: How to Use AI Tools to Write a Business Plan ]

What goes into a manufacturing business plan?

Manufacturing plans can be very detailed, but at a minimum should include the following sections:

• An executive summary.
• A company description.
• A production plan.
• An industry analysis.
• The target market.
• Compliance.
• A financial plan.

Some manufacturing plans also include sections for marketing, management, and operations. An operations plan can include the details of how you will source materials, your design process, how you will manage production, and ways to coordinate logistics with potential buyers. Marketing sections detail how you will position your product and reach potential buyers, while management identifies the key roles for which you will hire.

[Read more: 6 Product Design Software Programs for Beginners ]

While there's a lot of overlap with a normal business plan, manufacturing companies have unique processes and constraints they need to consider and address in their plan.

Why are manufacturing business plans unique?

The production plan section should provide a detailed outline of the manufacturing process, equipment, facilities, and supply chain. It should also include operational details that are crucial to the success of the manufacturing business: quality control, inventory management, and supply chain logistics, which should be covered extensively.

Manufacturing business plans also play an outsized role in recruiting funding. Manufacturers often require significant capital investments in equipment, machinery, and facilities. The financial projections included in the plan must accurately reflect these costs to ensure adequate funding for getting off the ground.

Finally, meeting global environmental, safety, and quality regulations is no easy feat. Identifying these requirements early positions the manufacturer to be compliant, as well as to assess which supply chain partners are also able to meet these rules. A manufacturing business plan should detail supply chain management, compliance demands, and steps to streamline both of these key elements.

How to write a manufacturing business plan

The easiest way to get started is to use a template. A few outlines are available online, like this one from Katana or this one from MoreBusiness.com . Start by defining your business and answering questions such as:

• What product will the business manufacture?
• Who is the target market of ideal customers?
• What makes this product unique?
• What business structure will be used?

From there, you can work through section by section to conduct market research, develop your operations plan, prototype your product, and identify supply chain partners. Include financial projections such as your startup costs, operational costs, revenue projections, and the break-even point.

"It's important to be optimistic when starting a new business, but you also need to be realistic. This is especially true when it comes to financial projections. Don't overestimate the amount of revenue you will generate or underestimate the costs of goods sold," wrote Katana .

Breaking your plan down into smaller sections can make it easier to identify areas where you need outside help too. Don't be shy about asking others in the industry for advice.

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Electronic Engineering Business Plan

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Rosafarbenes Nilpferd & Sons Engineering, Inc.

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Rosafarbenes Nilpferd & Sons Engineering, Inc. (RNSE) has established a strong foothold in a niche technology market for Product Category One* devices. The potential market demand of 180 million units far outstrips the capacity of present suppliers and is growing at a rate of 22% annually. RNSE’s success in taking advantage of this boom market is evidenced by its recent growth in sales and profitability. Sales are projected to grow from the first quarter of Year 1 total of $280,000 to $1,600,000 by the end of the first year, and to exceed $14 million by the end of the third year of operations. A similar growth pattern will cause before tax profits to rise significantly by the end of Year 1 and continue increasing through the end of Year 3. These results will be achieved without large additions to fixed assets. A relatively small banking facility will be needed in the form of a line of credit of $150,000-$200,000 to support the necessary growth in current assets, half of which will represent prime corporate receivables.

*Note: Propriety and confidential information has been disguised or removed from this sample plan.

1.1 Objectives

While working to develop Rosafarbenes Nilpferd & Sons Engineering’s image as the premier maker of Product Category One devices with the latest cutting-edge technology, the measurable objectives are:

• Complete work to make RNSE’s products compatible with at least five of the most popular first-tier operating systems (by end Month 5, Year 1), and at least three others within one year. 
• Complete a thorough website redesign and get out a quality mailer to 300 Value Added Resellers (VARs) (by end Month 6, Year 1). 
• On the basis of a professional media analysis, arrange an effective advertising campaign in trade publications designed to target the telecommunications, industrial automation, and instrumentation sectors (by end Month 7, Year 1). 
• Through networking and partnering with operating system developers, technology manufacturers, and other industry players, arrange at least five banners/links on a reciprocal basis with key market-related websites.

1.2 Mission

Rosafarbenes Nilpferd & Sons Engineering’s mission is to develop cutting-edge Product Category 1 solutions for appliance and equipment makers who, due to the fast pace of technology, are under pressure to get their products to the market quickly. RNSE achieves this by maintaining a small “think tank” style technical team, outsourcing the manufacturing, and keeping a marketing offering which caters to the more demanding Product Category One requirements, leaving the simpler high-volume and price-sensitive market needs to the competition.

Note: Proprietary and confidential information has been disguised or omitted from this sample plan.

1.3 Keys to Success

The demand and growth potential is so overwhelming that success in selling Product Category 1 devices is virtually assured provided a few key aspects are kept in mind:

• There is no problem in contract manufacturing the devices, provided a ready stock of components is available. Careful planning in ordering sensitive components is essential, and sufficient financing must be in place to support long inventory periods. 
• Avoid time-consuming inquiries originating from outside the chosen market targets. Everyone is interested in Technology 1. It is important to weed through the inquiries and respond to those that fall within sales and marketing parameters (needs between 100 and several thousand units, designed for use with high-ticket sophisticated equipment). 
• Move quickly to build a brand awareness for cutting-edge reliability. The market need for Product Category 1 devices is potentially so large that more competitors can be expected. It will be more difficult to build an image later.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Rosafarbenes Nilpferd & Sons Engineering solely owned by Becket Nilpferd, has been in the high-tech business since 1992. To capitalize on the growing demand for the Product Category 1 devices, the company recently shifted from offering consulting services to the development of the Technology 1 hardware and software.  Its first prototype has been vastly popular with its clients and the company soon will start shipping the improved version of its device. The company positions itself as a developer of high-end devices and selectively targets telecommunications companies, as well as smaller industrial automation and instrumentation companies, that have strong demand for the high performance Product Category 1 devices.

2.1 Company History

Rosafarbenes Nilpferd & Sons Engineering was solely service-based for seven years, but as the market for Technology 2 systems began to appear, RNSE shifted its emphasis from consulting to the development of Technology 2 hardware and software. This explains why the Past Performance Table does not show inventory or accounts receivable in years 1997 and 1998. Consulting revenue dropped in 1998 as RNSE limited its consulting activities and began ramping up to produce its first product line which was introduced in 1999. Since then, earnings have increased dramatically from approximately $4,000 in 1998 to nearly $80,000 in 1999 which grew to over $110,000 in the first quarter of 2000.

2.2 Company Ownership

Rosafarbenes Nilpferd & Sons Engineering was incorporated as a “C” corporation in the state of Freedonia in 1992.  Becket Nilpferd is the founder, owner, and sole stockholder.  The company is not publicly traded at the time of this writing.

2.3 Company Locations and Facilities

Rosafarbenes Nilpferd & Sons Engineering presently operates from two large offices located in Fezzaewyg, Freedonia.  All manufacturing is out-sourced to contract manufacturers.

Rosafarbenes Nilpferd & Sons Engineering’s products are off-the-shelf ready platforms containing all the necessary infrastructure for Technology 1, so that appliance makers can immediately focus just on their own specific product applications.

3.1 Product Description

Rosafarbenes Nilpferd & Sons Engineering occupies an important segment of the “Technology 2 system” market.  A Technology 2 system is any system that is physically incorporated into a product that performs a dedicated function or specific application.  Consumer examples include kitchen appliances and home entertainment systems, whereas commercial examples are point-of-sale terminals, industrial process controls, etc.  The button you press which toggles back and forth between total miles travelled and the trip mileage is an example of the many Technology 2 systems found in new cars.

RNSE makes these Technology 1 devices.  The basic device (here called Product Wrasse), about the size of a credit card, is comprised of:

• A central processing unit (CPU).  This is a very powerful chip supplied by Technology Manufacturer 1 which represents the computing brain. 
• FLASH chip.  This is memory capacity that does not die when power is turned off. 
• SDRAM chip.  Normal memory capacity. 
• A Controller.  This governs the data flow from the satellites to the server. 
• RNSE’s proprietary Product Blennie.
• Other elements like voltage regulators, electrical conduits to connect chips and external hook-ups.

The Product Wrasse, described above, would be bought by original equipment manufacturers (OEMs) to incorporate into their appliance (such as an odometer).  The unit might also be bought by an “integrator” who takes a basic odometer, plus the Product Wrasse, and adds some software to end up with a “smart” odometer which the market integrator then tries to sell to companies with fleets of vehicles that might have good need for this specialized product.  RNSE would configure the Product Wrasse so that it is compatible with the operating system used in the appliance, and would build in whatever FLASH and SDRAM capacity are needed for the designed purpose of the smart odometer.

RNSE’s third product is an add-on to the basic Product Wrasse and is called the Product Damselfish.  Going back to the odometer example: If the company with the fleet of vehicles would like to be able, once a certain mileage had been reached, to tell the driver: “Time for an oil change,” then the Technology 2 device would need to have audio capability.  Some applications might even need a video screen and a keyboard (like an ATM) for user interface.  These capabilities are available through Product Damselfish.

3.2 Competitive Comparison

OEMs who want to benefit from the trend toward Product Category One their products, typically outsource their needs.  This allows the OEMs to concentrate on the design and application of their specific appliance without having to worry about the Product Category One aspect.  Outsourcing this part saves the OEM in development costs, and more importantly, saves time in getting the appliance to the market.

The attached table is a schematic of the main recipients of this outsourcing and the major features of the Product Category One devices offered by each. 

• Outsource Provider 1.  The processor used is somewhat slower and parts costs are higher than with Technology Manufacturer 1’s CPU chip.  This company, by virtue of its parent being a contract manufacturer-assembler of smart devices, is primarily hardware-focused.  It would not be easy for Outsource Provider 1 to switch from Technology Manufacturer 2’s chip to Technology Manufacturer 1’s. 
• Outsource Provider 2.  This company seems to be market-segmenting to concentrate more on the multi-media market represented mainly by ATMs and kiosks (such as betting kiosks) which require a keyboard and a screen for user interface. 
• Outsource Provider 3.  This company moved in the wrong direction from the start by using their own proprietary software which is built into their devices.  This puts them at a real disadvantage.  Their devices are the slowest, and the least flexible, but still fine for certain non-demanding purposes.  The company has done some work for the HVAC market.  Their lower price reflects their limitations. 
• Outsource Provider 4.  This company, located in Vancouver, in close proximity to Software Manufacturer 1, is primarily a software company made up probably of ex-Software Manufacturer 1 people.  This explains their emphasis on the Technology 2 software.  Despite Software Manufacturer 1’s operating system dominance in one market, the Technology 2 market is different.  There are many widely-used Technology 2 operating systems.  This company buys their hardware from Outsource Provider 1. 
• Outsource Provider 5.  Outsource Provider 5 is a European-based company.  Its products are distributed and supported in America by a separate corporation in California.  This extra layer may explain the added price.  Specs are similar to those of Outsource Provider 1. 
• Rosafarbenes Nilpferd & Sons Engineering.  RNSE has made a considered effort to offer the fastest CPU chip and to build in the widest range of capacity (from low amounts of FLASH and SDRAM up to high amounts).  RNSE tries to make its units compatible with all the major top-tier Technology 2 world operating systems and will work with the second- and third-tiers as well.

3.3 Sales Literature

See the appendices for product data sheets.

** Appendix materials omitted in this sample plan.

3.4 Sourcing

The chips and other basic building blocks used in Rosafarbenes Nilpferd & Sons Engineering’s Product Category One platforms can be purchased from a number of large distributors.  Sourcing is not a problem, but order scheduling must be given careful attention.  Shortages can occur, making it necessary to order well in advance and to stockpile in order to make certain that sales does not outstrip production.

3.5 Technology

Technology is moving at a rapid pace.  The first commercial computer in the early 1970’s had a speed, measured in megahertz, of only 0.1 Mhz.  Now computers are on the market that race at 1,000 Mhz.  Although the speed may still increase, a bigger area for growth involves Technology 2 systems, (rather than personal computers) and especially the Technology 1 use of those Technology 2 systems.  In a speech by Hewlett Packard CEO, Carly Fiolani, aired on television 4/18/2000, in the future nearly….”every appliance, yes, even the toaster, will be connected to the Internet.” Ms.  Fiolani’s vision includes an “Information Utility” which, in her opinion, would work in a similar manner to the gas company, the electric or the water and sewer utility.  For all of the 20th century, manufacturers have produced their appliances under a certain protocol of “assumed power.” They have taken it for granted that every consumer has a Power Service Provider (PSP) that supplies 110 AC to wall sockets all through the house.  The appliance makers simply include a power cord and an appropriately sized plug.  The consumer merely plugs the unit in and pays for whatever power he actually uses.  The emerging technology now refers to another protocol of “assumed communication.”

Product Category One appliances are not going to be reserved for simple on/off features.  Now available on the market are many very sophisticated appliances such as a printer, a sewing machine with computerized embroidery capability, or data stream music.  At the moment these are PC-dependent.  Take a high-tech sewing machine like a Pfaff Model 7570.  This machine with its Technology 2 system can perform complex sequences of operations including executing pre-programmed patterns and monograms and fonts.  The difficult operations which are very user-interface intensive can be performed by the general-purpose PC into which the sewing machine (like a printer peripheral) is plugged instead of by the sewing machine’s Technology 2 system.  If this user-interface capability had to be built into the Technology 2 system of the sewing machine, the cost of that machine would skyrocket.  Likewise, the MP3 player (data stream music) is extremely CPU-intensive.  At the moment the encoding takes place on the general-purpose PC which allows the music player to have much lower requirements for CPU and memory.  These devices are essentially one step removed from the Internet.  Technology is moving quickly to remove the PC intermediary thus making the devices able to communicate directly with a content provider.  Those capabilities of the general-purpose PC will be replaced by the Internet itself thus making the appliances more flexible, more portable, and less expensive.  PCs themselves will metamorphose into very light-weight, very inexpensive units without hard disks and without extensive memory.  All these aspects will be provided by the Internet itself.

Need to use “Winword”? Just log onto the Internet and download the program or any other software you want.  And, it will always be the latest version.

Need file capacity? That too, can be provided by the Internet.  A user can move around the globe and access his/her files from a very portable laptop.  If the laptop is lost or damaged there will not be a crisis.  Simply buy another (for maybe $100).  All your files are safe, located elsewhere. 

Forrester Research predicts that by 2002 43% of all “smart” products will be non-PC devices.  According to International Data Corporation of Framingham, MA. by the year 2004 such appliances will exceed PCs. 

Market Analysis Summary how to do a market analysis for your business plan.">

The market for Product Category One devices is keyed to the production of Technology 2 microprocessors.  Over 180 million 32-bit microprocessors are being delivered annually.  Conservative estimates have the market growing at 22% annually.  Some estimates are much higher.  Market trends indicate that most, if not all, of these microprocessors will be wanting Technology 1.  At the present time, the number of makers of off-the-shelf Product Category One devices is limited and unlikely to be able to fill the demand.

4.1 Market Segmentation

Statistics related to Product Category One devices are very difficult to find, and when found, usually outdated.  A number of industry newsletters (Technology 2 Processor Watch, Microprocessor Report, Technology 2 Systems Programming) will give dollar figures from time to time for the total embedded market.  In 1999 the market was quoted to be $3.5 billion and expected to grow to $9 billion by 2003.  The Product Category One devices sold by RNSE are connected to this total Technology 2 product market.  The more products that are produced, the greater the demand for Technology 1.  According to Jim Turley, Editor-in-chief of Technology 2 Processor Watch…  “in 1997, more than 180 million Technology 2 32-bit microprocessors were shipped.  This does not include the 32-bit microprocessors placed in the 80 million PCs, the three million MACs, or the approximately one million work stations.” Mr. Turley’s article goes on to state that if the low-end 4-bit and 8-bit microprocessors were included, the totals would be more than doubled.  He estimates that there now exist about 35 low-end microprocessors in every middle-class North American home.  It is, however, the 32-bit sector that is growing fastest.  It is this sector that is most meaningful in projecting the market for RNSE’s products.  Of this total of 180 million 32-bit microprocessor units, the market research firm of Information Architects, claims that the market is broken up roughly into thirds:

• Office Automation (34%).  This included laser printers, faxes, feature phones, etc.
• Consumer (33%).  Includes video games, portable games, CD players, and high-end audio visual equipment.
• Communications (28%).  Includes network hubs, routers, switches, telephone infrastructure equipment.
• Automotive (3%).
• Military (1%).
• Other (1%).

Since the total dollar market is predicted to grow from $3.5 billion to $9 billion in the five years 1999-2003, we will assume a 22% annual growth rate over the next three years.  Although the 180 million shipped 32-bit microprocessor data was for 1997, we have not made any growth assumptions for the period 1997-1999, but will apply the 22% annual growth during the next three years to the 1997 data.  It is however highly likely that the market has grown substantially over that period 1997-1999.

In addition to the new Technology 2 microprocessors, there are hundreds of millions of older 4-bit, 8-bit and 16-bit boards that have already been sold.  These too, although ignored in the market study, represent a potential demand for Product Category One devices retrofitted into many of those microprocessors.

The 33% consumer share of the market is characterized by high production runs and price-sensitivity.  VCRs and MP3 players are good examples of products in this consumer market segment.  Similar comments can be made concerning the office automation market segment as well.

The third large sector of the market, telecommunications (28%) does not appear to be as price sensitive nor are production runs as large.  It is this sector that has so far accounted for the majority of Rosafarbenes Nilpferd & Sons Engineering’s sales.

The other category, representing only 1% of the total, probably includes various industrial automation products as well as testing and instrumentation.  These fields, although small in relation to the three major categories, still accounts for over two million microprocessors placed in high-ticket equipment, nearly all of which will need Internet connectivity.

The chart and table below summarize estimated domestic market potential for the RNSE’s products.  As stated above, RNSE will selectively focus on the telecommunications and other customer segments.

4.2 Target Market Segment Strategy

Rosafarbenes Nilpferd & Sons Engineering plans to concentrate on the telecommunications segment of the market (28% of total market) as well as the industrial automation and testing and instrumentation segments (1% of total) as these sectors are most likely to have more demanding requirements which are suited to RNSE’s premier, cutting-edge of technology architecture.  These sectors are most likely to be installing the Product Category 1 devices into high-ticket item instruments and appliances, thus making these clients less price-sensitive in relation to the high-volume consumer (MP3 players, Palm Pilots, etc).  VARs and OEMs (Fortune 500 as well as venture capital start-ups) connected with these market sectors are the most attractive target customers for RNSE.

4.2.1 Market Needs

4.2.2 market trends.

The market trend is to add Technology 1  to just about everything, leading eventually to a view of the future well-expressed by the CEO of Hewlett-Packard (see the section on Technology).  The trend is moving so quickly that the market is having problems keeping pace with the demand.  Reports of component shortages among chip makers have been in the business news.  For the foreseeable future, we can expect Technology 1 products to be a sellers’ market.

4.2.3 Market Growth

The market for 32-bit microprocessors totalled $3.5 billion in 1999 and is expected to grow to $9 billion by 2003.  This amounts to a 22% annual growth rate (see the section on Market Segmentation).  In 1997 180 million 32-bit microprocessors were delivered, not counting those that were used in computers and work stations.  A 22% growth rate comes to an additional 40 million annually.  Nearly all of these (180 million plus 40 million annually) will need Technology 1.  The total unit sales projected for Rosafarbenes Nilpferd & Sons Engineering in the third year will amount to only .00014 of that.  In the absence of more specific market data, we have projected market growth at 22% for every segment of the Technology 1 market, although it is likely that some segments will grow faster than 22% annually and others perhaps less.

4.3 Industry Analysis

The industry encompassing Technology 2 microprocessors, the operating systems housed in them, the makers of components used to build them, and the people developing software to make special applications possible is quickly mushrooming into one of the world’s largest industries.  To be successful in marketing a Product Category One device it is essential to understand the patterns and major players in the industry.

4.3.1 Competition and Buying Patterns

Currently, demand for the Product Category One devices outstrips supply.  With the trend of adding Technology 1 to almost any appliance, demand will continue to grow.  The variety of offered platforms and configurations of such devices lead to the market fragmentation where no incumbent company holds a major market share.  For low-end devices, pricing is one of the major factors.  However, for high-end devices, such as the products supplied by Rosafarbenes Nilpferd & Sons Engineering, high technical specification and flexibility with major operation systems are more important.

4.3.2 Main Competitors

The main competitors for Rosafarbenes Nilpferd & Sons Engineering’s products are listed in the section on Competitive Comparison.  The listed competition is unlikely to even come close to satisfying a small portion of the demand for Product Category One devices indicated by market research.  One hundred, eighty million 32-bit microprocessors being delivered annually with a projected growth rate of 22% is a huge market for Technology 1, not to mention the billions of microprocessors already delivered in stock configuration.  Obviously, much of the Technology 1 will be done by internal engineering.  But this option has serious drawbacks for the company trying to develop this feature on its own.  First, its engineers have to examine hardware and software options, which, given the number to choose from, could take months.

• Will the component support the input/output (I/O) requirements needed by the product?
• Do separate add-on components need to be designed and manufactured?
• Which operating system vendors support the component?
• Does the hardware vendor support the operating system (O/S) vendor?
• What about integration of the hardware and software?

After months of evaluation, and spending $25,000 on a leading real-time operating system (plus another $10,000-$20,000 buying and building hardware), more months will pass building, debugging, and integrating the operating system with the software.  More time is spent writing the application.  An engineer (who is an expert in the chosen operating system) will need to be hired, and each year another $5,000 will need to be spent in O/S upgrades and software.  Keeping up with protocols and standards will also take time away from development efforts.  In the end, hundreds of thousands of dollars can easily have been spent just on the task of adding Technology 1 to the product internally.  The end product, now including Technology 1, will have been delayed getting to market by six to nine months.  This delay to market aspect is the strongest deterrent to attempting to engineer one’s own Product Category One device.

4.3.3 Industry Participants

There are several major components in the industry:

Microprocessor Manufacturers The sheer variety and quantity of microprocessors is huge in relation to desktop computers.  There are only a few choices with desktop computers as Technology Manufacturer 1’s MMMM architecture increasingly dominates.  But with microprocessors there are NNNN, PPPP, QQQQ, MMMM, and RRRR which represent only a tiny fraction of the total volume of microprocessors shipped each year.  Even if we restrict the count to only 32-bit chips, there are more than 100 different microprocessors currently on sale.  This does not take count of the all the different speed grades or packaging options.  These 100 different microprocessors represent more than a dozen instruction-set architectures and more than 30 different vendors worldwide.  Some of these manufacturers have large sales forces and large marketing budgets.  The ability to attract the attention of one of these large manufacturers is key to marketing Product Category One devices.  If the Product Category One device uses an Technology Manufacturer 1 chip, Technology Manufacturer 1 has a vested interest in pushing its CPU customers to use that particular device.

Operating Systems Microprocessors must have an operating system in order to function.  Again, unlike the desktop market where DDDD dominates, there are many competing operating systems.  So many in fact that they are graded as “First Tier,” “Second Tier,” etc.  When a manufacturer of an automated milling machine chooses an Product Category One device, he will want one that is compatible with his chosen Technology 2’s operating system.  In fact, the first time he hears about a particular Product Category One device it is likely to be through the salesman who sold him his operating system.  If the operating system is GGGG, marketed by Software Manufacturer 2, for example, the salesman will recommend only Technology 1 devices that are compatible with GGGG.

Market Integrators Market Integrators are often referred to as value added resellers (VARs).  There are countless VARs who develop special applications which are usually industry-specific.  For example, Reseller 1 is a VAR engaged in software related to building maintenance.  This involves Product Category One thermostats and other building maintenance connected equipment in large office buildings.  These VARs are heavy users of Product Category One devices.

OEMs Original Equipment Manufacturers have quickly recognized the importance of adding the power of the Internet to their equipment, for example, the manufacturer of an automatic scale for use in a production line.  The scale will weigh every packet of tea passing along the belt to check that the weight is within certain tolerances.  If not, the packet is removed from the line by compressed air.  By adding Technology 1 to the scale, the scale’s activity no longer needs to be visually monitored by a human in the production hall, but can be remotely monitored from a central location.  This is especially interesting for a factory with a dozen production lines.  The same evolution is having an impact on almost every type of equipment.  The OEMs are important customers for Product Category One devices as the device adds very little cost relative to the ticket price of the equipment.

4.3.4 Distribution Patterns

There are large established distributors of microprocessor chips, and other components.  It is possible that one, or all, of these distributors may consider offering an Product Category One device soon with a few limited configurations.  However, the main distribution channel for RNSE’s products is direct.  The buyer may have heard about RNSE through an Technology Manufacturer 1 salesman, or through an operating system salesperson, but the sale would be handled directly.  Most inquiries come initially via telephone or email over RNSE’s website.

Strategy and Implementation Summary

Rosafarbenes Nilpferd & Sons Engineering’s marketing strategy will be to concentrate on the large telecommunication sector of the market (28% of 180 million units annually), as well as the smaller industrial automation, and the instrumentation sectors.  In keeping with RNSE’s trim organizational structure, growth in sales will be closely keyed to success in its partnering relationships with Technology Manufacturer 1 (its main component maker), developers of operating systems, as well as with suitable VARs.  It will be necessary to augment sales staff.  This “push” marketing will be supported by some “pull” marketing in the form of advertising in specialized trade publications.  At the moment supplying Product Category One devices is a sellers’ market, however, with demand projected to outstrip supply, more makers of these devices are likely to spring up.  It is important for RNSE to leverage its present ground-floor position in the supply of Technology 1 devices by building a market image that will make it difficult for later entrants to make in-roads into RNSE’s target market sectors.

5.1 Competitive Edge

Rosafarbenes Nilpferd & Sons Engineering’s competitive edge stems from the high technical specifications of its products.  The company develops top-of-the-line Product Category One devices that can work with all the major operating systems available in the market.  Further, RNSE has developed a very favorable partnership with Technology Manufacturer 1, who not only provides the chips but is also interested in promoting RNSE’s products.  Moreover, RNSE’s compatibility with all the first- and second-tier operating systems provides a unique opportunity to capture the market share.

5.2 Marketing Strategy

Rosafarbenes Nilpferd & Sons Engineering will concentrate on the more demanding sectors of the market and, in doing so, build an image for the highest cutting-edge technology among the various makers of Product Category One devices.  Pricing on the high side is consistent with that image, and alignment with Technology Manufacturer 1 (the premier CPU maker), and the first-tier developers of operating systems will further enlarge that image.  In addition, an investment should be made in image-bolstering advertising in targeted trade publications serving the chosen market segments.

5.2.1 Positioning Statement

Rosafarbenes Nilpferd & Sons Engineering’s positioning statement is to stay on the cutting edge of Product Category One device technology by constantly improving its products ahead of the competition with such features as the Product Blennie for Technology Manufacturer 1’s product.  RNSE will target customers in the demanding telecommunications, industrial automation, and instrumentation sectors rather than to market-segment a narrower field with lower Technology 1 requirements which tend to be more price-sensitive.

5.2.2 Pricing Strategy

For projection purposes, pricing has been based on production costs at 40% of sales price, which is in line with the historical COGS of 38% for the first quarter 2000.  This pricing scheme seems to put Rosafarbenes Nilpferd & Sons Engineering’s products on the high end of the ball park with the competition (see the section on Competitive Comparison), which is consistent with the image RNSE wants to build for its products.  Product Category One devices are not yet perceived as “all-the-same” commodities, with price being the only deciding feature.  In line with RNSE’s positioning statement, RNSE’s market sectors are the more demanding ones (telecommunications, industrial automation, and instrumentation).  These customers are installing RNSE’s devices into sophisticated, expensive equipment, and are more likely to make a choice based on which Product Category One device has the highest technical specifications and flexibility in respect to operating system compatibility, choices in configuration, etc., rather than price.

5.2.3 Promotion Strategy

Although Rosafarbenes Nilpferd & Sons Engineering does have sales positions in the personnel plan, RNSE’s promotion strategy will stress “partnering” as its main means of getting the word out concerning its products.  The importance of partnering with major industry players (see the section on Industry Participants) is explained below:

Partnering with Technology Manufacturer 1 Technology Manufacturer 1 has a large sales force and is the industry leader with its CPU chips.  All of RNSE’s products contain this chip, which is a good foundation for Technology Manufacturer 1 wanting to promote RNSE’s products wherever possible over other Technology 1 devices that use Technology Manufacturer 2’s chip.  RNSE is already working directly with several direct-sales people from Technology Manufacturer 1 who are referring high volume Fortune 100 customer’s to RNSE.  In addition, RNSE is receiving calls from Technology Manufacturer 1 reps who have lower volume opportunities.  RNSE will be placed on Technology Manufacturer 1’s website as a member of its third party program.  This is expected to result in increased volume of inquiries to RNSE’s website, and help build the desired image.

RNSE has awakened a great deal of special interest in Technology Manufacturer 1 by developing a Product Blennie for their product.  Technology Manufacturer 1 visited RNSE recently and expressed interest in using some of RNSE’s products internally, or in some sort of joint-venture.

Partnering with Real Time Operating System (RTOS) Developers As mentioned elsewhere in this plan, compatibility with existing operating systems is key to Product Category One device sales.  The following is a list of most of the first- and second-tier operating systems:

O/S Vendor Compatibility with RNSE Products

• JJJJ ready within one year.

Some of these top echelon O/S developers have hundreds of salespersons which translates into sizeable promotional activity, as virtually all customers for operating systems have Technology 1 in their plans.  Partnering with the first tier O/S developers will also serve to build that all-important image for RNSE products.

Partnering with Market Integrators Market Integrators are heavy users of Product Category One devices.  Hundreds of these VARs have sprung up who have developed software, and attached hardware designed to address problems, or save time and money for a specific industry.  Most, if not all, of these VARs utilize Technology 1 as part of their value added offering.  Special instrumentation or monitoring devices which attach to hospital beds that can sense wet sheets or patient body temperature are good examples.  These devices all require satellites units located at each bed have a Technology 1 device like RNSE’s Product Wrasse.  Considering the number of hospital beds alone, it is easy to see why the VARs represent prime customers for Product Category One devices.  These VARs may first hear about RNSE’s products through one of the operating system developers or via a search through the Web.  In addition, RNSE plans to get out a direct mailing to a list of 300 VARs.

5.2.4 Distribution Strategy

There are no immediate plans to wholesale Rosafarbenes Nilpferd & Sons Engineering’s products.  There might be opportunities to distribute some Technology 1 devices to one of the major component wholesalers, but this could only be possible in limited configurations.  All sales are expected to be direct sales.  This should be qualified as many major customers out-source their manufacturing.  XYXY, for example, is a customer of RNSE, but they subcontract to SRSR who actually purchases the enabling devices from RNSE.  In the case of VARs, they would purchase from RNSE and install them in the equipment being sold to someone else.  The target market customers addressed in RNSE’s positioning statement should have unit requirements of 100-10,000.  With annual sales volume projected reaching 30,000 in the third year, direct sales should not be a problem logistically.

5.2.5 Marketing Programs

The most important element in Rosafarbenes Nilpferd & Sons Engineering’s marketing game plan is to complete programming of its products to be compatible with the top tier operating systems (see the section on Promotion Strategy).  Completion is planned for the end of May 2000.  As soon as this has been done, partnering activity with those operating systems developers can begin in earnest.  Informational releases via email to O/S sales forces containing data specifications should be encouraged.  Opportunities to speak at O/S developers’ sales meetings should be sought.  This will be coordinated by the new sales manager position.

In conjunction with the above activities, a direct mailing to VARs should be undertaken.  An up-to-date list of 300 VARs can be obtained through Software Manufacturer 1.  A budget of $1,000 has been provided for in the cash flow projections.

Since many first impressions of RNSE’s products are made by a visit to its website, it is important to give RNSE’s website a face lift.  The Cyber Design Group as well as other professional website designers are being considered.  A budget of $15,000 has been provided for in the projections.  This is the shop window first seen by potential Technology 1 device customers.  The website design must put the desired image at the top of its priorities.  Included in this budget are some ad agency costs, as most Web designers are really technicians who have little knowledge of the art of image building.  The website technician and the advertising specialist need to work together to get the right result.

To help increase awareness of and build the desired image for RNSE’s products, advertising should be done in targeted trade publications.  A media specialist should be consulted to help in selection.  In keeping with RNSE’s positioning statement, trade publications which reach OEMs in the telecommunication, industrial automation, and testing and instrumentation sectors of the market should be favored.  It is important to provide an adequate budget to make certain of attracting notice.  A media specialist can examine the “noise level” (the amount of competing ads) to suggest how much needs to be spent to break through the noise level and be heard.  Until a proper media analysis can be done, a budget will be initially set for year 2000 at $50,000 growing to $250,000 in year 2002. 

5.3 Sales Strategy

The general sales strategy is to concentrate efforts on those sectors of the more demanding 32-bit microprocessor market that have volume needs of 100 to several thousand.  Despite the dramatic increase in visits to Rosafarbenes Nilpferd & Sons Engineering’s website, a more proactive policy needs to be taken by directly approaching heavy users of Product Category One devices. Calls must be made on selected VARs, and OEMs who fit the parameters set by RNSE’s marketing strategy.  Referrals from RNSE’s partnering program (operating system partners, Technology Manufacturer 1, and other industry players) will be stressed. RNSE plans to add a sales manager as well as other sales personnel (see the section on Personnel Plan).

5.3.1 Sales Forecast

Over 400 units of Rosafarbenes Nilpferd & Sons Engineering’s first generation product were sold in the first quarter of 2000 without any dedicated sales staff other than the owner and an administrative assistant.  In keeping with RNSE’s need to stay on the cutting edge of technology, a faster, smarter, smaller improved product is now ready which should easily succeed in reaching the company’s sales goal of 1040 units by the end of the year, increasing to 3000 and 9000 in the second and third year respectively.  This is not an unrealistic achievement considering the market demand for this product, as evidenced by RNSE’s actual sales growth in the past year and the growth in visits to RNSE’s website which have grown from a few thousand a year ago to over 30,000 website visits monthly as of May 2000.  With sales prices set at 2.5 times variable costs, gross profits are expected to reach nearly $1 million in the first year and nearly $9 million in the third year.

The sales projections forecast three RNSE products, made up of a main product (Product Wrasse) and two other products (Product Parrotfish and Product Damselfish) each of which constitute the main product with several add-ons (see the section on Product Description). 

Within these three products, customers have several choices in the configuration in respect to the amount of FLASH (from 1 Mb up to 32 Mb) as well as SDRAM (8 Mb up to 64 Mb).  Depending on the configuration options, the costs of materials range as follows:

• Product Damselfish: $150.10 up to $211.85.

To simplify projections, we will assume only one configuration for all three products.  This configuration is with 32 MB DRAM and 4 MB of FLASH.  The costing then will have the following breakdown for the basic product, the Product Wrasse:

The Product Parrotfish starts with the basic Product Wrasse ($165.85) and adds Technology 1 components ($27.00), a modem module ($35.00) and several other minor parts ($16.50), bringing the cost up to $244.35.

The Product Damselfish starts with the basic Product Wrasse ($165.85) and adds an audio interface ($10.00), Technology 2 components and connectors ($10.00), bringing the cost up to $183.85.

See the section on Pricing Strategy for explanation of pricing policy.

5.3.2 Sales Programs

The most important sales program is the program based on “partnering” (see the section on Promotion Strategy).  By constantly being in touch with the activities of Technology Manufacturer 1, and the operating system developers, and by developing relationships with their extensive sales teams, referrals can be expected to VARs and OEMs who fit the parameters set in the marketing strategy.

Once a solid sales prospect has been identified in this manner, more specific action can be taken directly with the prospect.  This action would include more technical discussions between Rosafarbenes Nilpferd & Sons Engineering and the prospect’s engineers.  “Starter Kits” can be arranged which make it very easy for the prospect to integrate hardware and software between the Technology 1 devices and the appliance.  Once a starter kit has been sold, telephone follow-up is necessary to convert the original opening into a substantial sale of 100 or more units.

5.4 Strategic Alliances

As already explained (see the section on Promotion Strategy), strategic alliances between Rosafarbenes Nilpferd & Sons Engineering and Technology Manufacturer 1, the chip manufacturer, and the top tier operating system developers like WWWW, XXXX, or LLLL are essential to success in selling large quantities of enabling devices.  Partnering leads to referrals which can be filtered as to needs, and many referrals can be expected to transform into completed sales. 

The prospects for a deeper strategic alliance with Technology Manufacturer 1 is possible as a result of Technology Manufacturer 1’s recent visit to RNSE.  Technology Manufacturer 1 is especially interested in RNSE’s development of a Product Blennie for the Technology Manufacturer 1 product.  Technology Manufacturer 1 expressed an interest in working together to exploit the product.

5.5 Milestones

The attached table lists the major milestones in the first year that are key to the success of the company’s overall market strategy.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The management of Rosafarbenes Nilpferd & Sons Engineering is led by the owner/founder, Becket Nilpferd, who has extensive technical experience in consulting to the industry.  A profitable track record indicates the presence of business acumen.  Important additions to sales and marketing staff should round out the needs of the company to achieve the projected goals set by the sales and marketing strategy.

6.1 Organizational Structure

Rosafarbenes Nilpferd & Sons Engineering plans to increase the number of employees to five in the second year and to ten by the third year.  Half of these with be sales staff reporting to a sales manager who reports to the owner, Becket Nilpferd.  Two relatively low-level technicians will be included to deal with repairs and testing of returns.  Rather than depend completely on outside consultants for software engineering, an engineer will be hired by 2002.  The technicians will report to Becket Nilpferd, but there will be a good deal of interaction with the administration manager as well as with the sales manager.  The software engineer will, like the outside consultants, report directly to Mr.  Nilpferd.

6.2 Management Team

The major members of the management team are Becket Nilpferd, owner and founder, his administrative assistant, Ms. Beda Fomm, and two independent consultant-engineers, who, as is common in the industry, prefer to remain independent rather than become full-time employees.  This team will be augmented by a sales manager who will coordinate the activities of those responding to telephone and website inquiries with direct sales efforts to VARs and OEMs referred through the partnering program, and a full-time software engineer.

6.3 Management Team Gaps

It is vital that a more proactive approach to selling be initiated to take full advantage of the partnering program which leverages the connections with operating system developers.  There are about 300 VARs which certainly justifies a dedicated sales person.  The number of original equipment manufacturers is also high enough to warrant employing someone with experience in dealing with large OEMs.  A sales manager should first be employed to oversee these sales efforts and to coordinate the involvement of media specialists and ad agency work.

The Personnel Plan projects the addition of this staff.

6.4 Personnel Plan

The founder and owner, Becket Nilpferd, during his years spent as a consultant to the industry, has many contacts among software and hardware engineers.  He has utilized them on a contractual basis for much of the software engineering during the development of Rosafarbenes Nilpferd & Sons Engineering’s product line.  He will still use them and their cost can be seen on the income statement under the heading “Contract Consultants” rather than in the Personnel Plan.

In addition to the owner/founder (Becket Nilpferd) and the office manager (Beda Fomm), it will be necessary to add this year:

Sales Manager The primary duties of the sales manager will be to coordinate the activity of media people to make certain the correct amount of advertising is spent in the most suitable trade publications and that the campaign adequately meets the goals of RNSE’s positioning statement.  The sales manager should be engaged as soon as possible.  A starting salary of $60,000 is budgeted with increases to reward sales growth.

Sales Staff Reporting to the sales manager will be salespersons who will work primarily via telephone and email.  One to concentrate on VARs and another to concentrate on OEMs.  One each will be added by the end of 2000 after the sales manager is in place.  Starting salary projected at $40,000 annually with increases connected to sales success. 

Two more will be added in the third year.

Technicians Beginning in year 2002 two low-level technicians need to be added to deal with returns, repairs, testing, etc.  Salary of each is projected at $45,000.

Software Engineer Despite the excellent success that RNSE has had with independent consulting engineers, it will be advisable by 2002 to hire a permanent in-house software engineer at a salary of $80,000.

Financial Plan investor-ready personnel plan .">

Rosafarbenes Nilpferd & Sons Engineering’s dramatic growth in sales poses substantial financing needs for receivables as well as inventory.  In 2001 and 2002 virtually all of this need can be supported by accumulated earnings. RNSE will need a line of credit to provide cash in the first year until accounts receivables begin to turn over into cash. Projections indicate a need for a line of approximately $135,000 which could stretch to $200,000.  As the receivables are projected to be high in the first year, and stem from prime quality customers, commercial banking lines of credit (or A/R factoring) should be easily obtainable supported by this current asset without a need for reliance on inventory.

7.1 Important Assumptions

Interest rate is assumed to be 10% if a commercial line of credit is obtained.  Should it be necessary to arrange for factoring of the receivables, interest expense would increase.  In the first year, factoring would add an additional cost of $10,000-$12,000.

The federal tax rate on corporate profits is graduated, beginning at 15% on profits up to $50,000.  The average weighted federal tax rate on profits up to $335,000 works out to 34%.  On profits in excess of $335,000 the federal tax rate is 34%.  To this an additional 9.5% has been added for Freedonia state corporate taxes.

The period of 45 days for receivables is not unusual, but the inventory turn-over is projected to be slow due to a need to keep higher levels than was necessary only a few years ago.  The growth in demand for components has put pressure on suppliers to keep up with the demand.  The risk of maintaining inadequate stocks of certain key components must be minimized by larger than normal forward purchasing.

7.2 Break-even Analysis

In the first quarter of year 2000 the first generation of Technology 1 devices sold an average of 133 units monthly.  The second generation (smaller, faster, smarter) will be ready by early June.  Many customers for Rosafarbenes Nilpferd & Sons Engineering’s products are holding back their orders awaiting the newer version.  The break-even analysis, below, indicates monthly sales needed to break even.

7.3 Projected Profit and Loss

Projected gross profits for year 2000 will be strong and will climb even further in the second and third year.  Despite substantial investments in marketing (primarily advertising and sales staff), net profits before taxes are projected to  be high.

Explanations for projected expenses are outlined below:

Advertising The actual expenditures were used for January, February and March.  This expense averaged $817 for 1999.  An additional $50,000 is budgeted for advertising during 2000, $150,000 in 2001, and $250,000 in year 2002.

Documentation Printing This relates to the specification sheets and manuals that are included with sold products.  We project this expense in year 2000 at the same rate ($96 monthly) as 1999.  In years 2001 and 2002 we have increased this expense to reflect the projected increased sales.  We have assumed, with increased volume of sales, some efficiencies can be had in per unit printing costs.

Electronic Testing Equipment The actual expenditures were recorded for the first quarter of 2000.  This is a significant expense which came to $1,430 in 1999, but will increase to $500 monthly in 2000 and to $650 monthly in 2001 and $750 monthly in year 2002.

Merchant Services These services relate to fees paid to credit card companies when credit cards are accepted as cash payment for a sale.  These fees are about 3% (some more, some less) of the sales price.  Actual figures were used for the first quarter, thereafter, we’ll assume fees to be 3% of cash sales.

Computer Parts Actual figures are given for the first quarter.  Thereafter, the historical monthly average of $542 is used for projection purposes.

Professional Fees These include accounting ($95/month), legal and miscellaneous outside services such as photography, etc.  Actual figures are given for the first quarter, then $500 monthly is projected, increasing in years 2001 and 2002 to reflect increased sales. 

Computer Software Actual expenditure is given for the first quarter 2000.  Thereafter, an average monthly figure of $200 is projected.

Office Supplies The actual figures are given for the first quarter, and $350 monthly is projected thereafter.

Travel Travel is kept at historical levels for 2000 but will double in years 2001 and 2002.

Miscellaneous Included here are professional books, minor bank charges, Massachusetts annual report, etc.  Projected at $200 monthly, increasing in years 2001 and 2002.

Leased Equipment These expenses relate to a computer that is on lease.  They are expected to continue at the same rate.

Online Services Kept at historical levels.

Telephone Actual figures are given for the first quarter.  Thereafter at $250/month increasing in years 2001 and 2002.

Utilities Averaging $100 per month.  Are expected to increase as new space is acquired to accommodate staff hires.  Includes gas and electricity.

Insurance Insurance related to a business policy which is expected to increase as additional office space is acquired.

Depreciation Fixed assets are represented by such items as a printer and an iMAC computer plus some software.  Net capital assets are a bit over $4,000 as of 12/31/99.  Assume depreciation at $1,000 annually.

Rent Currently two offices are rented. With the increase in staff, additional space will be acquired.

Health Care This relates to the health care plan for the two current members and is projected at present actual cost.  It will increase proportionally as new employees are hired.

Contract/Consultants These expenses are paid to independent computer technicians who regularly perform services for the company.  They charge $45/hr.  The actual costs for the first quarter are given.  The costs are projected at $2,200 per month, increasing as sales increase.

7.4 Projected Cash Flow

The current borrowing of $14,866 outstanding at the end of 1999 was fully repaid in the first quarter 2000.

The cash flow reflects success in obtaining a line of credit in the range of $150,000-$200,000 which is drawn down and repaid in accordance with need during 2000 leaving a balance of $135,000 at the end of 2000 which is then repaid over the next two years.

7.5 Projected Balance Sheet

Of the long-term liabilities, $12,000 relates to a family loan with no specific repayment schedule.  It carries an interest rate of 7%, although in the projections all LTD has been calculated at 10%.

7.6 Business Ratios

The following table outlines important business ratios for the electrical and electronic engineering industry, as described by the standard industry classification (SIC) index 8711.9905.

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• Disaster recovery planning and management

Example disaster recovery plan for small businesses

Small businesses make significant investments in it infrastructure. they must protect those investments from unplanned and potentially destructive events with a dr plan..

• Paul Kirvan

Technology disaster recovery plans are necessary for businesses of every size. A small business disaster recovery plan protects and recovers critical IT infrastructure assets after a disruptive event.

DR plans provide step-by-step procedures for recovering disrupted systems and networks, helping them return to normal operations. The goal of these processes is to minimize any negative impacts to company operations. DR plans are essential for ensuring that a business can continue to deliver its products and services in the aftermath of a crisis.

The scale and details of a small-to-medium business ( SMB ) DR plan are typically less complex than those for a large enterprise but no less necessary. The key is to have the resources and procedures for recovering critical systems, networks and data the organization needs to function.

Included in this article is an example disaster recovery plan for small business. This template is a solid first step that can facilitate the initiation and completion of an IT DR plan. The structure of this article and the template is consistent with established national and international standards for IT disaster recovery .

Why create a DR plan specifically for small business?

Regardless of the type and size of the business, a DR plan provides a structured approach for responding to unplanned incidents that threaten an IT infrastructure. These can include threats to software, networks, processes and people.

Protecting an organization's investment in its technology infrastructure and its ability to conduct business are the key reasons for implementing an IT DR plan. Considering that businesses of any size depend on technology, DR plans should be on every CIO's short list. Support from senior management is the primary starting point for a small business DR plan, especially with funding and a project budget .

Get started with goals and analyses

Once management approval has been received to develop a DR plan, IT and DR teams should begin by completing a risk assessment to identify potential threats to the IT infrastructure. A risk assessment can also be used to identify potential vulnerabilities and single points of failure that could cause a disruption or outage.

The goal of a risk assessment is to determine which infrastructure elements are most at risk to the organization's business. For a small business with less than 100 employees, this could be any hardware in the data center, key applications the business uses, and networking resources. If the organization uses external cloud resources, the assessment should consider risks that might affect their ability to recover from an incident.

When an incident -- internal or external -- negatively affects the IT infrastructure, the business could be compromised, resulting in loss of business and reputational damage. Identifying risks and threats to the infrastructure is a key activity. For smaller organizations with fewer resources, attention to detail is critical.

It might be advisable to conduct a business impact analysis (BIA), which identifies the most important activities the organization performs. BIAs also correlate the key functions with the technologies needed to support them. This information, coupled with data from the risk assessment, results in a DR plan design that focuses on protecting the most essential systems and functions.

What do you need for a DR plan?

It is essential to have the right players during the planning process as well as a team ready to respond to system disruptions. Coordination with business unit leaders, particularly those who are responsible for the mission-critical functions, helps zero in on the technology requirements needed to sustain business operations. Senior leaders define recovery time objectives and recovery prioritization.

The DR planning process identifies critical IT systems and networks; links them to mission-critical business functions; prioritizes recovery times; and delineates the steps needed to restart, reconfigure, and recover operations.

A comprehensive IT DR plan also includes relevant supplier contacts and sources of expertise for recovering disrupted systems.

In today's business environment, both large and small businesses use cloud-based services to supplement existing IT resources. Data storage is a key use for cloud services, and many cloud vendors offer DR services of their own. The flexibility and relatively low cost of cloud DR make it a good option for small businesses.

In addition to securely protecting data, databases and applications, hardware devices must also be protected in a DR plan. Having one or two spare servers ready to use if an existing server fails is one way to minimize the consequences of a device failure. Backup power, such as uninterruptible power systems , is also essential.

Considering how much small business technology can be deployed today from hosted sources, one could make the argument that in-house DR is unnecessary for SMBs. Such a decision should be carefully made and in consultation with third-party resources to make sure they can support the technology needs of a business.

Limitations and benefits of a DR plan

Among the less tangible benefits of a DR plan is peace of mind. Aside from that, it is good to know how to manage disruptions to IT systems and return them to normal. In situations where the technology is on site, a DR plan -- even if it is only a few pages of who to call and what systems to fix first -- is far better than having no plan at all.

By contrast, SMBs using hosted systems for most of their infrastructure will still need to know who to call, what to say, and how to work on an interim basis while the third party fixes operations.

One of the key activities to perform with a DR plan is a periodic test . This will determine if the right systems are being addressed and the recovery steps have been validated. Periodic testing ensures that backup systems and data are accessible, and the organization has contact information for all necessary parties, within and outside the organization.

Regrettably, testing is perhaps the one activity most SMBs fail to perform, and it increases the risk of damage from a disruptive event.

Another challenge with DR plans is keeping them up to date. Changes in technology, installation of new patches, changes to storage devices, updates to key applications and other events should be added to DR plans but often are not.

Additional resources to develop an IT DR plan

In addition to the plan template attached to this article, the National Institute for Standards and Technology Special Publication 800-34, Contingency Planning for Information Technology Systems , is a helpful resource for building a DR plan.

This standard covers several areas of DR organizations can include in a plan. Helpful additions from this standard might include the following:

• Add a vulnerability assessment component to the risk assessment to identify and address any potential weak points.
• Identify preventive controls that reduce the effects of system disruptions and can increase system availability and reduce life cycle costs.
• Conduct plan testing, training and exercising to improve plan effectiveness and overall company preparedness.
• Consider the plan as a living document to be reviewed and updated regularly to remain current with system changes and business requirements.

SMB considerations

While this article addresses disaster recovery from a general perspective, the SMB template is designed to be flexible yet comprehensive enough to address the key business and technology issues an organization might face in a disaster. An SMB might decide that the focus is recovering critical system and network resources. As such, other sections of the template can be omitted.

Staffing can be a challenge in an SMB. In some organizations, there might be only one or two employees who can lead a recovery effort. Organizations with a one- or two-person IT department might be challenged to respond in an incident.

It might be necessary to consolidate DR plan data and procedures into a one- or two-page document. As long as emergency contacts are up to date for crisis communications , procedures are current, and backup resources are in place, SMBs can likely make it through all but the most devastating events.

How to use the template

The included template is designed to be flexible for most SMBs, and users can delete sections that don't apply to their business. Key sections to review include emergency contacts, recovery and restoration procedures, and any other activities needed to return the IT infrastructure to normal.

Following is a summary of the plan template and its sections:

• Information Technology Statement of Intent . This sets the stage and direction for the plan.
• Policy Statement. It is important to include an approved statement of the organization's policy regarding the provision of disaster recovery services.
• Objectives. These describe the main goals of the plan.
• Key Personnel Contact Information. Key contact data should be included early in the plan. It is the information most likely to be used right away and must be easy to locate.
• Plan Overview. This describes basic aspects of the plan.
• Emergency Response . This describes what needs to be done immediately following the onset of an incident.
• Disaster Recovery Team . This lists members and contact information of the DR team.
• Emergency Alert, Escalation and DR Plan Activation. These list steps to take through the early phase of the incident, leading to activation of the DR plan.
• Media. This includes tips for dealing with the media during and after a crisis.
• Insurance. This summarizes the insurance coverage associated with the IT environment and any other relevant policies.
• Financial and Legal Issues. This lists actions to take for dealing with financial and legal issues.
• DR Plan Exercising. This underscores the importance of DR plan exercising.
• Appendix A – Technology Disaster Recovery Plan Templates. This includes sample templates for a variety of technology recoveries. For some organizations, these templates might be sufficient by themselves as DR plans.
• Appendix B – Suggested Forms. These are ready-to-use forms that will facilitate the plan completion.

Paul Kirvan is an independent consultant, IT auditor, technical writer, editor and educator. He has more than 25 years of experience in business continuity, disaster recovery, security, enterprise risk management, telecom and IT auditing.

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