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Business Plan For Samtech
Business Plan For Samtech
Table of Contents..............................................................................................................................i
1. EXECUTIVE SUMMARY.........................................................................................................1
2. COMPANY DESCRIPTION......................................................................................................2
2.2 Management..........................................................................................................................3
4. MARKET ANALYSIS................................................................................................................8
4.3.2 Targeting.......................................................................................................................10
4.3.3 Positioning....................................................................................................................10
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6. OPERATIONS PLAN...............................................................................................................13
6.2 Personnel..............................................................................................................................14
7. FINANCIAL PLAN..................................................................................................................15
9. SUPPORTING MATERIALS...................................................................................................21
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1. EXECUTIVE SUMMARY
SAMTECH is a start-up business located in Lido Street of Kumba. We have been able to secure
a standard shop facility. The company specializes in the design, realization and installation of
electronic equipment, repair and sales of consumer electronics (including mobile phones, DVD,
radio, TVs and VCR, etc.) repairs, computer and office machine repairs, communications
equipment repairs and other electronic equipment repairs. Our business goal is to become
regional leader in consumer electronics repair, with shops throughout the South-West Region of
Cameroon.
Our competitive advantage is clear for the fact that there are a lot 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 businesses 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.
SAMTECH is a business that will be owned and managed by Engineer Sama Promise Awa 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 startup capital; personal savings, income from the
documentation and cyber café department that is already operational, loans from banks if
necessary. The capital generated shall be used to furnish the shop, purchase repairing
equipments, and part will be invested in sales of electronic equipments and accessories.
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2. COMPANY DESCRIPTION
Our business goal is to become regional leader in consumer electronics repair, with shops
throughout the South-West Region of Cameroon. SAMTECH is a growth-oriented business. Its
ten year goal is to become a regional leader in consumer electronic repair, with shops in the
South-West Region of Cameroon. With this in mind, the objectives over the next three years for
SAMTECH are the following:
SAMTECH is a business located in Lido Street of Kumba. The company specializes in the
design, realization and installation of electronic equipment, repair and sales of consumer
electronics, specifically home electronics, including TV, DVDs and VCRs. It also operates in the
computer and office machine repairs, communications equipment repairs and other electronic
equipment repairs.
We will target people who place great importance in their entertainment equipment and own
higher-end electronics, where repairing them would be more cost effective than replacing them.
Many low end VCRs for example, are priced so low, people find it more cost effective and
convenient to purchase a new product than to get the existing one repaired.
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The mission of SAMTECH is to provide high quality, convenient and comprehensive home
electronics repair at a low cost. The most important aspect of our business is trust. It is the goal
of our firm to have 100% customer satisfaction in regards to quality, friendliness and time to
completion, and discover new ways to exceed the expectations of our customers while doing so
at the lowest possible cost. We want to build an electronics repair business that can favorably
compete with other leading brands in the electronics repair services industry.
2.2 Management
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; these positions are in order of
hierarchy and flow of information from the CEO right down to the client service Executive.
SAMTECH, 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.
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Roles and Responsibilities
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.
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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
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
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Handles all financial transactions for the organization
Serves as internal auditor for the organization
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.
The industry is highly competitive with suppliers having a great deal of power in setting and
negotiating the prices of their products and services to repair shops. In addition, because the
customers see the service as undifferentiated and a “commodity” with little value separation
between competitors, buyer power is also very high. Finally, the barriers to entry are moderately
low, and the large number of competitors in this field, including substitutes (such as do-it-
yourself work) mean that the pricing for such services is very competitive. The only way to have
an advantage in this industry is a low cost leadership principal applied aggressively or to create
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higher switching costs through the building of strong business-to-customer ties. It is the aim of
SAMTECH Electronics to create a competitive advantage through both the low cost strategy and
by offering greater value through its broader product and service line.
Repair and cleaning of home and car stereos and CB radios.
Repair and cleaning of TVs.
Repair and cleaning of VCRs and DVDs.
Sale of used TVs, stereos, VCRs and DVDs.
Free estimates on repair jobs.
Authorized warranty servicing on all major brands of home entertainment systems.
Responsible for carrying out consumer electronics repairs
It has staffs who provide repairing services at consumer’s home thereby cutting off the
cost of transportation of heavy electrical products.
They also provide their services at a remarkable discount.
Welcomes clients and potential clients by greeting them in person or on the
telephone; answering or directing inquiries.
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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
These Services are provided to assist customers in making informed decisions about the financial
services we provide to them. It explains who we are, the financial services provided by us, how
we are remunerated and how their complaints are dealt with. Where we provide general factual
advice to them about SAMTECH Accidental Damage Protection Insurance, or arrange for the
issue of SAMTECH Accidental Damage Protection Insurance to them.
4. MARKET ANALYSIS
Increase in population
Increase in the electronic equipment brands
Increase in technology and so on
There are no standard regulations which can affect electronic repairs in Kumba. However, some common
costs and profit margins tend to influence consumer-capability of electronic equipment use. These
include: personal influence from families, changes due to inflation, and rural-urban migration.
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The opportunities for electronic repairs and sales are enormous. The population of Kumba is large enough
and given their economic power and standard of living, there is enough market demand to satisfy the
supply. Moreover, the people in this area have a very low bargaining power which is an added advantage
to the business. Threats that may impinge the growth of SAMTECH are:
Lack of capital
Competition from similar businesses
Lack of advance equipment to meet the necessary repairs
There is no entry barrier into the business. The main competitors are uneducated and mainly use unskilled
labor. This is an advantage to SAMTECH.
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Single people living alone.
Single people living with roommates.
4.3.2 Targeting
SAMTECH will target the following segments.
Middle class couples without children. This group will tend to have a higher disposable
income since they have two incomes but do not have the expense of children. They prioritize
socializing and spend a fair amount of time entertaining in their home and in the homes of their
friends. For this reason they will spend more on their electronic equipment.
Single men living alone or with roommates: This group is not the largest segment for us, but
potentially one of the most profitable, since single men tend to prioritize their home
entertainment equipment. They will spend a greater percentage of their income on high-quality
TV and stereo equipment.
Baby boomers: Baby boomers are reaching the age where their children have left home and they
have more disposable income than when their children were young and living at home. They are
more tech savvy than the generation before them and appreciate the good things in life. They like
to spend time in their homes, now that the children are out of the house
4.3.3 Positioning
As stated before, the electronic repair industry is highly fragmented. In fact, there are so many
small providers that any company in this industry is facing a purely competitive environment.
Approximately 23,700 electronic repair firms exist in the country today. Firms within this field
range in sizes from the "mom and pop" outfits such as MAXLAP Electronics and Kachina
Repair in downtown Kumba to regional companies like Magnolia Hi-Fi and the national chains
such as Circuit City. Not all of these firms are purely repair outfits. In fact all of the larger
firms make the majority of their revenue in original sales. It is these companies that have the
largest market share and have the opportunity to compete by differentiating on customer service
or product/service range.
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SUMMARY OF MARKET ANALYSIS
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Potential Growth CAGR
Customers
TVs 3% 415,875 428,351 441,202 454,438 468,071 3.00%
VCRs -2% 310,645 304,432 298,343 292,376 286,528 -2.00%
DVDs 25% 106,400 133,000 166,250 207,813 259,766 25.00%
Stereo Systems 12% 875,500 980,560 1,098,227 1,230,01 1,377,616 12.00%
4
Microwave Ovens 8% 282,625 305,235 329,654 356,026 384,508 8.00%
Total 8.67% 1,991,04 2,151,57 2,333,67 2,540,66 2,776,48 8.67%
5 8 6 7 9
We will begin promoting SAMTECH to the market through several avenues. These include:
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Special IT and Project Management
Conference sponsorships and
Demonstrations
Direct mail campaigns
Print advertising campaigns
Email and web promotional
Campaigns Supplemental to these efforts will be development of the company web site
Development of supporting print and electronic literature and multi-media presentations of
SAMTECH will be promoted heavily at the 2021 National Project Managers'
Professional Development Conference in July, to begin to build product awareness in the overall
project management market. A special open invitation session and cocktail reception will be held
at the end of day two of the conference to introduce and demonstrate the product, focusing on its
link and its benefits. Demo CDs will be placed in each attendee's seat prior to the session. This
promotion will act as a practice run for two national IT conferences held in August and October
of 2021where a similar special session, demonstration, and reception will be held. While the goal
of these sessions is to build brand awareness, ordering opportunities will also be available during
and after conferences. A direct mail campaign will begin immediately following the October IT
conference with special time-limited pricing discounts for those on the mailing list who also
attended the special demo sessions. Print advertising campaigns will begin in July with
prominent placement in the show programs, as well as in publications that will be available at the
conferences. This campaign will be continued through January of 2021.
Email and web campaigns will also begin in July, with email announcements sent out to the pre-
registered conference attendees notifying them of the special session and reception SAMTECH
offers. A link to the SAMTECH web site will be included.
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Our sales team (initially three representatives and a sales manager) will be divided by geographic
territory and will be on a base salary plus commission structure. They will each go through two
week-long training sessions on basic project management, as well as a week-long training
session on project management needs in the maintenance field (Led by a leading maintenance
project manager.)
The product will be initially sold through our direct sales force and company web site
It will be available introduced into retail outlets where electronics are sold.
Negotiations are also under way with the Project Management Institute to offer the product to
their members at a slightly discounted price through both their website and other membership
publications.
6. OPERATIONS PLAN
SAMTECH services are provided through electronic repairs. Electronic equipments and
accessories are bought and stocked. These equipments and accessories come from Douala which
is the economic capital of Cameroon and not far from Kumba.
SAMTECH is expected to maintain a healthy financial position over the next five years. The
following plan outlines the financial development of our company. The business will be initially
financed by a 189,000fcfa five-year term loan and a total capital investment of 363,000fcfa.
The source to repay the loan will be the cash flow generated from operations. The company will
also finance growth through cash flow. After an initial period of five years, the company will be
able to make a further expansion. At that time, it is envisioned that a bank loan or equity funding
will be sought to finance the new development, in addition to retained earnings.
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The projected financial statements have been prepared in accordance with the general accounting
principles, and necessarily include some amounts that are based on reasonable estimates and
judgment. For accounting purposes, the long-term assets are expensed using the straight-line
depreciation method, and inventory is accounted for based on the First-In, First-Out (FIFO)
method. The following sections outline important financial information.
6.2 Personnel
In view of the above, we have decided to hire qualified and competent hands to occupy the
following positions; these positions are in order of hierarchy and flow of information from the
CEO right down to the client service Executive.
Total start up costs will be 363,000fcfa of which will be contributed by the owners and the
remainder will be secured through a proposed bank loan.
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7. FINANCIAL PLAN
Start-Up Assets
3chairs 10,000
2 tables 10,000
2 multi-meters 5,500
5,000
Use of Funds
Buildings/real estate - fcfa
Leasehold improvements 50,000 fcfa
Capital equipment 110,500 fcfa
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Location/administration expenses 14,800 fcfa
Opening inventory -fcfa
Advertising/promotional expenses 4,000fcfa
Other expenses 1,200fcfa
Contingency fund 10,000fcfa
Working capital 172,500fcfa
Total Use of Funds 363,000fcfa
Income
Expenses
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Payroll Taxes 0 0 0
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7.4 Projected income statement
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Long Term Assets 144,500 151,725 163,104
Accumulated 0 0 0
Depreciation
Total Long Term Assets 268,500 281,925 303,069
Total Assets 500,000 525,000 564,375
Liabilities and Capital
Current Liabilities 198,450
Accounts Payable 29,000 30,450 32,734
Current Borrowing 1,500 1,575 1,693
Other Current Liabilities 28,500 29,925 32,169
Subtotal Current 59,000 66,596 0
Liabilities
Long Term Liabilities 189,000 198,450 213,334
Total Liabilities 277,000 290,850 312,664
Paid In / Invested Capital 223,000 234,150 251,711
Retained Earnings
Earnings
Total Capital 223,000 234,150 251,711
Total Liabilities and 500,000 525,000 564,375
Capital
Net Worth 223,000 234,150 251,711
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7.6 Business performance projections and financial position financial metrics
Financial Ratios
Current Liabilities to
0.26 0.26 0.26 0.40
Net Worth
Current Liabilities to
4.21 4.21 4.21 5.85
Inventory
Total Liabilities to
1.24 1.24 1.24 1.24
Net Worth
Collection Period
Working Capital to
16.8% 15.6% 15.8% 14.0%
Sales
Accounts Payable to
2.8% 2.6% 2.6% 2.8%
Sales
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Return on Sales 0.1% 5.0% 7.5% 1.0%
Income Statement
Balance Sheet
Other Non-Current
24.8% 24.8% 24.8% 24.8%
Assets
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Total Assets 100.0% 100.0% 100.0% 100.0%
Total Current
0.0% 0.0% 0.0% 17.6%
Liabilities
risk of electrocution because the electric installations are not in the norms
bad maneuver
risk of fire
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8.3 Risk management and contingency plans
After having identified the risk incurred by the organization, the management carries out their
analysis based on qualitative and quantitative methods (collection point of view of different
people or the use of sophisticated probalistics models).
Correct at the source the risks that are of high importance and probability
Check for risks that are high in importance and low probability
Analyze risks that are low importance and high probability
Ignore temporarily risks of low importance and probability
9. SUPPORTING MATERIALS
Sample of laptop Repairs at SAMTECH
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Chief Executive Officer
Head, Technical Services
Human Resources and Admin Manager
Sales and Marketing Executive
Accountant
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REFERENCES
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