Opportunity
Important warning
[This sample businessplan is based off a document from many years back, valid at the time, and still useful for illustration of what an actual business plan covers. This sample business plan is no longer valid for information. ]
Problem
Everyone has a cell telephone these days. Mobile phones are becoming a norm. They are used for work and socializing. Because they are expected, many people believe that someone without one is untrustworthy or wrong. In reality, most people can’t afford one.
Solution
Garbles Cellular’s mission, is to provide its customers with the best quality cell phones and services. Its owner focuses on personalized service to his customers by offering convenience and rapid service. Garbles Cellular also has the technical expertise to help customers choose the right product or service. We will also be able to satisfy customers’ demand for the latest innovations in cellular phone technology because our staff has strong vendor relationships.
Market
The market potential is huge for our products, evidenced by what appears to be the unstoppable growth of the telecom industry. The telecom industry currently ranks among the most dynamic growth industries and is responsible to huge gains in capital markets. The proliferation of cellular phones is increasing at rates which at one time were unimaginable. It is predicted that cell phones will be available to more than 65% of children between the ages of 10 and 15.
The following areas are projected to see future market/product growth:
Text messages between friends (in Japan, this is huge). Regular Short-Message Service (SMS), or email can be sent from phones. Although small file sizes are not allowed for email, many phones allow English characters. Special characters can be sent by each provider. This includes animated images, happy and sad faces as well small animals, people, hearts, and even people. When special characters are not available, people often use a specialized set of faces to show emotion. You can also send email between different provider phone numbers, but some of the special characters will be lost. Therefore, users might want to keep a small group of friends with the same provider in order to receive these special characters. Email can be sent using computers but files are often deleted from cell phones.
Many North American smartphones come with a handful of games to keep people entertained, but only for a short period. Two types of games are available on Japanese phones: Java application and built-in. The built-in ones are simple, but again the graphics are very important to the game value. Java application games are delivered via the network to the customer’s phone and there is a charge for this service. These games are much more complex and require streaming data to access. Every month, new games are released. You can even purchase joysticks to plug into your mobile phone.
One of the recent popular additions to many of the Japanese and Korean phone models is a CCD Camera that is mounted either on the outside of the clamshell or on the clamshell hinge. The camera lens, which is slightly smaller than the dime, takes 4’215’4 cm pictures to be displayed on the phone’s display or sent to others. You can also take videos. Most phones take between 5-15 seconds of footage due to memory limitations, but they can send streaming video. Advertising for camera phones shows people watching each other while they are using the screen to watch each other. This includes both holding the phone and the camera at arm’s reach and using a handsfree microphone and earpiece. There are two accessories for the camera: an external flash, which plugs into an adapter port, and a miniature printer which prints photos.
We will make every effort to capitalize on these developments, and provide our customers with the best possible service in these new trends.
Competition
[Note that this information is presented here only for illustration. This information is out of date. Not reusable. ]
Three large corporations dominate today’s U.S. markets:
TMobile Wireless –] Owned by Deutsche Telekom subsidiary since May 31, 2001.
- Revenues in 2001: Exceeding $13.6 million
Cingular Wireless is the second largest wireless company in the U.S. A leader in mobile voice and data communications, Cingular is a wireless company determined to promote the individual to a new level.
- Ownership: Cingular Wireless was formed by the domestic divisions of SBC and BellSouth. Atlanta, Georgia, is headquarters. SBC owns 60 percent of the company and BellSouth owns 40 percent, based on the value of the assets both contributed to the venture.
- Revenue on the cellular service in Year 2002 was more than $14.7 billion.
- Cellular Phone Service Subscribers: More than 22 Million Voice and Data Customers in the U.S.A.
- Cellular Phone Service and Technology – Cingular is the US’s only wireless carrier that offers Rollover, which allows customers to keep their unused minutes. Cingular offers cellular/PCS services in 43 of 50 top markets. Cingular also provides advanced data services for corporate e-mail through its GPRS network and Mobitex packet networks.
Nextel Communications has its headquarters in Reston (VA) and is the leading provider of wireless communications services that are fully integrated on the most reliable, all-digital network in the country.
- Ownership: Nextel Wireless trades on the NASDAQ National Market as NXTL. Nextel Partners is a separate company traded on the NASDAQ National Market.
- Revenue on the cellular service $8.7 billion (2002).
- Cellular Phone Service Subscribers: 10.61 Million (Q4 2002).
- Nextel uses a next-generation packet-based platform, the integrated Digital Enhanced Network technology (iDEN(tm),), developed by Motorola. Nextel 4 in 1 service-Nextel Digital Cellular and Direct ConnectSM, Nextel Mobile Messaging and Nextel Online(r),–covers thousands across the United States. Nextel and Nextel Partners, Inc. serve 197 of America’s top 200 markets.
Garbles Cellular Phones hopes to grab a piece of the market with these three.
Why Us?
We believe that, with our long and thorough experience in the EAIA, our store will be in the perfect location to start our operations in the U.S.A., and will start operating in the right time. Garbles Cellular Phones provides its customers the best in customer service and convenience.
Expectations
Forecast
We will be working to eliminate any kinks in the start-up and get it off the ground in year 1. In year 2, we will see a slight profit. In the third year, we can hire more store attendants.
Financial Highlights Year-by-Year
Finance Required
To start the company, we will receive $96,000. Mr. Seramed Garbles will invest $43,000 in Garbles Cellular Phones, Inc. to cover start-up costs. He will also invest an additional $53,000 when operation takes off
