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Business PLAN FOR Samtech docx

electrical engineering principles (Technical University of Kenya)

Studocu is not sponsored or endorsed by any college or university

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Table of Contents
Table of Contents..............................................................................................................................i

1. EXECUTIVE SUMMARY.........................................................................................................1

2. COMPANY DESCRIPTION.......................................................................................................2

2.1 Brief History and Nature of SAMTECH...............................................................................2

2.2 Management..........................................................................................................................3

2.3 Business Structure, size and location.....................................................................................3

3. DESCRIPTION OF YOUR PRODUCT/SERVICES..................................................................6

3.1 Identification of SAMTECH Products/Services....................................................................7

3.2 Key Features and Benefits of SAMTECH Products/Services...............................................7

3.3 Product Protection.................................................................................................................8

4. MARKET ANALYSIS................................................................................................................8

4.1 Industry Analysis...................................................................................................................8

4.2 Market Research....................................................................................................................9

4.3 Target Market Analysis..........................................................................................................9

4.3.1 Market Segmentation......................................................................................................9

4.3.2 Targeting.......................................................................................................................10

4.3.3 Positioning....................................................................................................................10

5. MARKETING AND SALES.....................................................................................................11

5.1 Pricing strategy....................................................................................................................11

5.2 Promotion strategy...............................................................................................................11

5.3 Sales and distribution...........................................................................................................13

5.3.1 Sales strategy................................................................................................................13

5.3.2 Distribution strategy.........................................................................................................13

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6. OPERATIONS PLAN...............................................................................................................13

6.1 Production or procurement and inventory management......................................................14

6.2 Personnel..............................................................................................................................14

6.3 Research and development plans and other.........................................................................14

7. FINANCIAL PLAN..................................................................................................................15

7.1 Cost of investment...............................................................................................................15

7.2 Estimated revenues..............................................................................................................15

7.3 Working capital requirements and expected cash inflows/outflows....................................16

7.4 Projected income statement.................................................................................................17

7.5 Projected balance sheet........................................................................................................17

7.6 Business performance projections and financial position financial metrics........................19

8. RISK ANALYSIS AND CONTINGENCY PLANNING.........................................................20

8.1 External risk.........................................................................................................................20

8.2 Internal risk..........................................................................................................................20

8.3 Risk management and contingency plans............................................................................20

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

2.1 Brief History and Nature of SAMTECH

The company is owned and managed by Sama Promise Awa, an electronics technician with a
degree in electrical engineering from the Higher Technical Teachers’ Training College (HTTTC)
Kumba. He has a combined experience in computer software and hardware maintenance,
Networking, Printed Circuit Board Designs and Computer Programming, that can help them
build SAMTECH Repair Shop. He will also employ his family members to help with running
and growing the business.

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:

 Achieve steady growth in sales revenues by year three.

 Achieve local market share (in Kumba) of approximately 20% by year five.
 Expand product line to include authorized satellite TV service installation and new
electronics sales.

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.

 Chief Executive Officer

 Head, Technical Services
 Human Resources and Admin Manager
 Sales and Marketing Executive
 Accountant
 Electronics Repair and Maintenance Engineers and Technicians (10)
 Client Service Executive

2.3 Business Structure, size and location

SAMTECH is an electronics repair business that intends starting small as a shop in Lido Street –
Kumba, 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.

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

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

Human Resources and Administration Manager

 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

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

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 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.

Client Service Executive

 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.

3. DESCRIPTION OF YOUR PRODUCT/SERVICES

SAMTECH Electronics offers a wide range of services as outlined in the detailed sections below.
It is ultimately the goal of the company to offer a one-stop facility for all home entertainment
needs, including both sales and servicing. In this way the company can offer greater perceived
value for the customer than many other shops which only offer sales or 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.

3.1 Identification of SAMTECH Products/Services

SAMTECH Electronics provides a wide range of home entertainment repair services. These
include:

 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
 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
 House calls and free pickup and delivery.
 Provide Repair Service at Customer’s Home:

3.2 Key Features and Benefits of SAMTECH Products/Services

SAMTECH product/services are beneficial in the following ways:

 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

3.3 Product Protection

Future products and services that SAMTECH Electronics will prepare to institute include
TV/VCR/DVD rental, satellite TV installation and servicing, sales of new TVs, DVDs, VCRs
and stereos, and repair/sale of microwave ovens. Mr. SAMA is also investigating the possibility
of offering a new product line of home entertainment cabinets at some future date.

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

4.1 Industry Analysis

SAMTECH Establishment will be part and parcel of the electronic industry in Cameroon which
is a growing branch of the economy. There enormous factors influencing the growth of the
industry such as:

 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.

4.2 Market Research

There are approximately 332,500 households in Kumber area. Virtually all of these households
have TVs, VCRs, etc. SAMTECH segments its market into product categories that reflect the
estimated number of each electronic device currently being used in the greatly in Kumba area,
since each of these devices may fail at any time and require our services. Presently, the fastest
growing product, in terms of sales, is the DVD player. It is anticipated that the DVD will replace
the VCR within the next three to five years as movie rental stores replace their existing VHS
movies with DVD. The largest segment is the home and car stereo segment, since usually a
household has more than one of these systems. The company will be focusing on servicing all of
these systems, and not focusing on one over the other.

4.3 Target Market Analysis

The STP process is an important concept in the study and application of marketing. The letters
STP stand for segmentation, targeting, and positioning. The STP process demonstrates the links
between an overall market and how a company chooses to compete in that market.

4.3.1 Market Segmentation

SAMTECH has segmented the households in the SAMTECH area as follows:

 Couples with children.

 Couples without children (including Baby Boomers).
 Retired people.
 Students living in multi-unit housing.

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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 1,098,22 1,230,01 1,377,61 12.00%
7 4 6
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

5. MARKETING AND SALES

The business will provide quality and superior service at a fair price to the customers on time.
Promotional measures therefore will be quality recreational activities availability at the right
place and time. SAMTECH Electronic Shop will succeed by offering its customers high-quality
and convenient electronic repair service. Each satisfied customer is a potential of five new
referrals so the quality of our workmanship is key to growing the business.

The most important marketing strategies will be:

5.1 Pricing strategy

The business will have a mark-up policy of 20%-30% which will be affordable by the target
market. The market place dictates our pricing and the approval of loans for customers is a proof
that our pricing structure is acceptable in the market. It means a fair price lead by demand and
supply.

5.2 Promotion strategy

The business will be engaged in direct marketing. The products will be market by means of word
of mouth and house visits. The manager of SAMTECH also ensures that fliers are posted about
town and seminars and workshops organized to sensitize the public of how the services the shop
renders to the society are so important. The owner plans to mount a demonstration model on his
four wheel drive vehicle for promotion purposes.

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.

5.3 Sales and distribution

5.3.1 Sales strategy

Our sales strategy is oriented toward the idea of arming the sales force with information so they
completely understand both the product and the market and can hit the ground running. within
our own company, so the sales staff will have firsthand knowledge of the product.

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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.)

Special product training will also be done for retail merchants.

5.3.2 Distribution strategy

Products will be distributed by technicians to the customer site when necessary. Otherwise, the
clients visit the shop to request for their goods and services.

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.

6.1 Production or procurement and inventory management

Repairs at SAMTECH are done by qualified technicians. Skilled labor is employed and the
management is done by qualified personnel.

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.

 Chief Executive Officer

 Head, Technical Services
 Human Resources and Admin Manager
 Sales and Marketing Executive
 Accountant
 Electronics Repair and Maintenance Engineers and Technicians (10)
 Client Service Executive

6.3 Research and development plans and other

Over the time, SAMTECH researches in electronic technology and has been interested in
producing local or homemade electronics rather than importing.

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

7.1 Cost of investment

Table 1: Start-Up Costs

Start-Up Expenses Amount (in FCFA)

Graphic Logo and Name Creation 1,000
Outdoor Sign 15,00
Building Improvements 15,000
Working Capital 172,500
Pre Opening Expenses 15,000
Rent store 180,000 / one year
Total Start-Up Expenses 252,500

Start-Up Assets
3chairs 10,000
2 tables 10,000
2 multi-meters 5,500
5,000

3 soldering iron and led

Varieties of components 25,000
1 computer and software for design 15,000
Liquid Fire Protection System 10,000
1 printer 10,000
2 distributors 5,000
Chemical product and their safety 5,000
Total Start-Up Assets 110,500
Total Required Start-Up Costs 363,000

7.2 Estimated revenues

Table 2: Source and Use of Funds

Owners' and other investments 174, 000fcfa
Bank loans 189,000fcfa
Other loans 0fcfa
Total Source of Funds 363,000fcfa

Use of Funds
Buildings/real estate - fcfa
Leasehold improvements 50,000 fcfa
Capital equipment 110,500 fcfa
Location/administration expenses 14,800 fcfa

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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

7.3 Working capital requirements and expected cash inflows/outflows.

Table 3: Projected Profits and Losses

Year 1 (fcfa) Year 2 (fcfa) Year 3 (fcfa)

Income

Sales 1, 028,422 1, 161,443 1, 235,835

Cost of Goods
(402,113) (414,176) (426,602)
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Gross Profit 626,309 747,267 809,234

Expenses

Accounting /
12,000 12,360 12,731
Legal

Bad Debts 25,711 26,482 27,276

Shrinkage 90,000 92,700 95,481

Credit Card Fees 20,568 21,185 21,821

Insurance 75,000 77,250 79,568

Miscellaneous 44,112 45,435 46,798

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Payroll Taxes 0 0 0

Permits and
7,356 7,577 7,804
Licenses

Rent 68,000 70,040 72,141

Salaries 12,341 12,711 13,093

Wages 269,987 323,057 340,027

Total Expenses 625,075 688,798 716,739

Net Profit 1,234 58,469 92,494

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7.4 Projected income statement

Table 4: Projected Form for Cash Flow

Year 1 (fcfa) Year 2 (fcfa) Year 3 (fcfa)
Cash Received
Cash from Operations 148,101 30,995 11,402
Cash Sales 1,028,422 1,161,443 1,235,835
Cash from Receivables 0 0 0
Subtotal Cash from 1,176,523 1,192,438 1,247,237
Operations
Additional Cash 189,000
Received
Sales Tax
Owners Investment 174,000
Subtotal Cash Received 1,539,523 1,192,438 1,247,237
Expenditures
Expenditures from 765,113 414,176 426,602
Operations
Cash Spent 710,176 731,481 753,426
Bills Paid
Subtotal Spent on 1,475,289 1,145,658 1,180,028
Operations
Additional Cash Spent
Sales Tax
Loan Payment 33,240 35,378 37,654
Subtotal Additional 33,240 35,378 37,654
Cash Spent
Subtotal Expenditures 1,508,529 1,181,036 1,217,681
Net Cash Flow 30,994 11,402 29,556
Cash Balance 30,994 42,397 71,953

7.5 Projected balance sheet

Table 5: Projected Form Balance Sheet

Year 1 (fcfa) Year 2 (fcfa) Year 3 (fcfa)
Assets
Current Assets
Cash 63,000 66,150 71,111
Accounts 25,000 26,250 28,219
Receivable

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Inventory 14,000 14,700 15,803

Other Current 129,500 135,975 146,173
Assets
Total Current Assets 231,500 243,075 261,306
Long Term Assets
Long Term Assets 144,500 151,725 163,104
Accumulated 0 0 0
Depreciation
Total Long Term 268,500 281,925 303,069
Assets
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 28,500 29,925 32,169
Liabilities
Subtotal Current 59,000 66,596 0
Liabilities
Long Term 189,000 198,450 213,334
Liabilities
Total Liabilities 277,000 290,850 312,664
Paid In / Invested 223,000 234,150 251,711
Capital
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

Table 6: Ratio Analysis

Financial Ratios

Quick Ratio 1.49 1.49 1.49 1.06

Current Ratio 3.92 3.92 3.92 1.46

Current Liabilities
0.26 0.26 0.26 0.40
to Net Worth

Current Liabilities
4.21 4.21 4.21 5.85
to Inventory

Total Liabilities to
1.24 1.24 1.24 1.24
Net Worth

Fixed Assets to
1.20 1.20 1.20 1.11
Net Worth

Collection Period

Inventory
28.7 28.2 27.0 29.44
Turnover

Assets to Sales 48.6% 45.2% 45.7% 49.1%

Working Capital
16.8% 15.6% 15.8% 14.0%
to Sales

Accounts Payable
2.8% 2.6% 2.6% 2.8%
to Sales

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Return on Sales 0.1% 5.0% 7.5% 1.0%

Return on Assets 0.2% 11.1% 16.4% 2.1%

Return on Equity 0.6% 25.0% 36.7% 4.7%

Interest Coverage 0.8 7.6 15.5 1.66

Income
Statement

100.0
Gross Sales 100.0% 100.0% 100.0%
%

Gross Profit 60.9% 64.3% 65.5% 56.0%

Operating
0.1% 5.0% 7.5% 2.1%
Income

Net Profit After

Tax

Balance Sheet

Cash 12.6% 12.6% 12.6% 12.6%

Accounts
5.0% 5.0% 5.0% 5.0%
Receivable

Inventory 2.8% 2.8% 2.8% 3.0%

Total Current
46.3% 46.3% 46.3% 49.5%
Assets

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Total Fixed Assets 28.9% 28.9% 28.9% 25.7%

Other Non-
24.8% 24.8% 24.8% 24.8%
Current Assets

100.0
Total Assets 100.0% 100.0% 100.0%
%

Accounts Payable 5.8% 5.8% 5.8% 5.8%

Total Current
0.0% 0.0% 0.0% 17.6%
Liabilities

Total Long Term

37.8% 37.8% 37.8% 37.8%
Liabilities

Net Worth 44.6% 44.6% 44.6% 44.6%

8. RISK ANALYSIS AND CONTINGENCY PLANNING

8.1 External risk

External risks arise from changes or threats in business environment (political, economic,
technological, sociological changes, market changes customers, competitors, product, supliers)
that can influence negative on the objectives and strategies of the company.

The external risk in SAMTECH

 constant cut of electricity by Eneo

 lack composing good quality
 The increase of the prices of the components

8.2 Internal risk

Internal risk can come from a variety of source: corporate strategy, processes, resources,
management information.

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The internal risk in SAMTECH

 risk of electrocution because the electric installations are not in the norms
 bad maneuver
 risk of fire

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).

Risk management and contingency plan

The risk can be reduced or eliminated by taking corrective or preventive actions.

 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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Key members of the management team

 Chief Executive Officer

 Head, Technical Services
 Human Resources and Admin Manager
 Sales and Marketing Executive
 Accountant

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REFERENCES

[1].Tucson Electronics (2018). Electronics Repair Shop Business Plan. Retrieved at

https://articles.bplans.com/a-standard-business-plan-outline.
[2].A Sample Electronics Repair Business Plan Template. Retrieved
athttps://www.profitableventure.com/electronics-repair-business-plan/
[3].Apr 6, 2018 - Business Plans (Business Reference Services; Science, Technology, and
Business Division; Library of Congress)
[4].Business Planning References. General Information Sources. INC Magazine.
http://www.inc.com. Garage.com (organization to accelerate startups).
[5].Business Plan Structure Proposed By NEGOU Ernest

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