business proposal sample for computer shop

3. State the problem or need.

This is where you share a summary of the issue impacting the potential client. This is your opportunity to show them you understand their needs and the problem they need help solving.

This section should show your authority in your industry. With this in mind, be sure to include:

• Case studies
• Client testimonials
• Relevant awards
• Industry accreditations

6. Include pricing options.

Pricing is where things can get a bit tricky, as you don't want to under or over-price your product.

The pricing section of your proposal could include:

• A detailed pricing breakdown, including packages, tiers, and add-ons or optional services
• How product features and benefits align with pricing choices
• Pricing for different needs and budgets
• How your pricing compares with competitors
• An FAQ section to respond to anticipated objections and explain your pricing strategy

7. Summarize with a conclusion.

After sharing the above information, simplify it all into one final section.

• First, briefly summarize the proposal. Be sure to share your qualifications and why you’d serve as the best choice.
• Then, to prompt further conversation, confirm your availability to go over the next steps.
• At the end of the proposal, the goal is to have the client ready to work with you. So, be sure to offer your contact information for easy follow-up.

In need of some inspiration before you begin writing? Here are example business proposal templates from popular business proposal software companies you can use to help create your proposal.

1. HubSpot's Free Business Plan Templates

Download these Templates

We know how crucial a great business proposal is to your and your client’s success. That's why we've compiled 2 Free Business Proposal Templates for you to use and customize for any of your projects.

You'll gain access to a concise, one-page template (pictured above), as well as a longer template for you to refine your plan and proposal.

Download the templates now to get started on building your proposal.

2. Web Design Proposal

Companies, big and small, dedicate resources to establishing a noticeable social media presence. With advertising on social networks projected to reach $82.23 billion dollars in 2025 , it's in your business's best interest to have a plan for growing your client's social media presence.

To help you in that effort, the information in this social media marketing proposal includes an executive summary to help introduce your high-level ideas, an assessment of the client’s company to show your diligence, and a breakdown of billing to show how your company charges for posting, content creation, and analytics.

8. Content Marketing Proposal

When pitching your content marketing services to clients, this template can help you organize your ideas. While it walks you through initial objectives and how to communicate your prospected results, one of the most helpful parts of this template is the pricing ideas it gives you when charging for your services.

Business proposal templates are helpful places to get started, but what should your business proposal look like when it's complete? Below, we share an example of a business proposal template that will inspire you.

In the business template example below, Social Portal Consulting (SPC) pitches a marketing proposal to Graphic Bean. At first sight, this proposal appeals to the creative. A nice touch would include designing the layout in your or your client’s brand colors.

Besides the design, the social media icons quickly tell the prospect what platforms Social Portal is pitching. Because we see Facebook, Twitter, Instagram, and Pinterest icons, the client instantly knows that this proposal doesn’t include LinkedIn, YouTube, or other platforms.

While maintaining its design, this example outlines Social Portal Consulting’s plans efficiently. It begins by providing insight into Graphic Bean and its goals before elaborating on how SPC can leverage its expertise to help them achieve them.

This business proposal template includes an easy-to-follow timeframe for goals and objectives while keeping the client abreast of how payment will happen across the project.

Overall, this is an excellent example of how to combine the elements of social media marketing into a creative and concise business proposal. Finally, we'll leave you with some business proposal ideas to get you started on your own.

• Start with an outline.
• Keep it simple.
• Stay on brand.
• Quality control.
• Include data and visuals.
• Add social proof.
• Use a call-to-action.
• Create a sense of urgency.
• Make the decision for them.
• Incorporate video into your proposal.
• Include up-sell and add-on opportunities.
• Clarify your terms and conditions.
• Include a space for signatures to document agreement.
• Create a table of contents.

1. Start with an outline.

If you want to produce a thoughtful, effective business proposal, you need to have some idea of what you're hoping to achieve with it.

So before you dive into writing, outline the major sections of your business proposal and the pertinent information you want to include. This will help you stay focused and make sure your message stays intact as you write.

Use these free business proposal templates to make sure that your outline includes everything you need.

2. Keep it simple.

There's no definitive blueprint for how long a business proposal has to be. Yours should be however long it takes to convey the information you want to get across.

That said, you're best off focusing on quality over quantity. Keep your sentences short and simple, and avoid including too much business jargon.

You want anyone who picks up your proposal to make sense of it. So, be straightforward and don't get too fancy. Aim for substance over flash.

3. Stay on brand.

Don't be afraid to let your company's personality shine through in your proposal. Stay true to your brand and show the client what sets you apart from your competitors.

4. Quality control.

A quick spelling and grammar check before you hit send isn't enough for a business proposal.

Your proposal needs to be clean and airtight. So, as you draft your proposal, and after checking for the basics, keep scanning this document until it's just right.

Check to make sure your proposal:

• Meets client needs and expectations
• Highlights your value proposition
• Is well-structured and easy to read or skim
• Complies with legal, ethical, and regulatory requirements
• Looks professional and engaging

5. Include data and visuals.

You want your business proposal to capture your prospect's attention and help set you apart from any other ones they might have received. One of the best ways to do that is to include hard, quantitative data that helps stress the value of your business.

Use relevant, compelling figures that highlight what you have to offer. This can establish authority and make your proposal more convincing. It also helps to include visuals such as charts and graphs to enhance your proposal.

6. Add social proof.

You can only be so convincing when you're personally talking up how great your business is. Adding social proof lends your proposal another degree of credibility.

Prospects are skeptical. They may not take you at your word. But they'll likely trust peers and fellow customers. That's why including elements like customer quotes and testimonials can go a long way.

7. Use a call-to-action.

Prospects need direction. The best proposal in the world can only take you so far if you don't clearly define the next steps. That's why you have to make sure the reader knows what to do after reading your proposal.

A clear call-to-action is the best way to get there.

Define and highlight exactly what they should do to act on the interest your proposal has generated. Without that guidance, you might leave your reader in limbo.

HubSpot customers : Use this CTA builder to create powerful customized CTAs.

8. Create a sense of urgency.

No one wants to feel as if they missed out on a great opportunity. Without urgency, your prospect might drag their feet and put off making a decision.

So, as you create your business proposal, your goal should be to create a sense of urgency.

When prospective clients read your business proposal they should feel that the best time to sign up for your service is now.

One way you can accomplish this is by stating your short and long-term goals for their business. They'll have to wait for the long-term goals, but you can make the short-term goals so enticing that they'll be ready to begin a collaboration.

9. Make the decision for them.

Craft your copy in a way that seems like saying "no" to the proposal would be stepping over dollars to pick up pennies. Your offer should go above and beyond their expectations. Do everything in your power to remove friction and objections along the way.

10. Incorporate video into your proposal.

If you're creating an online proposal using document file formats like PDF, add multimedia elements. This will enhance the proposal experience, make your document richer, and keep them engaged.

Try adding a video at the beginning as an intro to your proposal. Or, put a video in the project breakdown to verbally discuss some of the more confusing parts.

Extras like this can make an impression. This tip works especially well with prospects who are visual or auditory communicators.

Pro tip : HubSpot Video makes it easy to record and embed video into a website or email for a big proposal boost.

11. Include up-sell and add-on opportunities.

They say you won't receive unless you ask. And readers won't explore the upper tiers of your solutions if you don't give them the opportunity.

So, share some upsells and add-ons about your business that they can act on. Call out a specific pain point and how this extra can add value.

With this step, balance is important. Show them everything your business has to offer without overwhelming your recipient.

12. Clarify your terms and conditions.

Your business proposal should include details on your project timeline and payment schedule. This summary is basically what you and the client agree to if they accept your proposal.

7. Try direct mail.

Your readers probably see a lot of digital communication. To set yourself apart, try adding a thoughtful and personalized direct mail element .

Write a handwritten note, send a small gift, or pull together a beautiful mailer. This tangible approach will make your business proposal a memorable and unique experience. This idea will express your attention to detail and commitment to personalized communication.

8. Ask an influencer to present or vouch for your proposal.

If you're already working with influencers, you know that an influencer can boost credibility and trust for your proposal.

Their endorsement can validate your ideas and show that respected figures in the industry support your proposal. This idea can add authority and appeal to your business proposal, increasing your chances of success.

Learn more about brand influencers and check out our free guide to influencer marketing here.

9. Hide one or more Easter Eggs.

Surprise and delight your audience by adding hidden Easter eggs throughout your business proposal. Whether it's a hidden message, a playful animation, or a secret section, these little surprises add a touch of fun and intrigue.

Easter eggs encourage exploration. This idea can get your readers to spend more time getting into the details of your proposal — all the while having an incredible and unique experience.

Let your business proposal do the talking.

Depending on the type of business you're in, your business proposal elements will vary based on the prospect's needs. After reading through your plan, prospective clients should have very few questions about your company and what it can do for them. With the tips and examples in this article, you have all the tools to guide you through the process. With a professional, customized business proposal, you're sure to delight your client and potentially gain their business.

Editor's note: This post was originally published in February 2020 and has been updated for comprehensiveness. This article was written by a human, but our team uses AI in our editorial process. Check out our full disclosure to learn more about how we use AI.

Don't forget to share this post!

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Propose your business as the ideal solution using this free template.

How to Write a Business Proposal — 2022 Guide and Template

A business proposal can make or break your chances of securing a new client. Write a great one, and you’ll likely snag their business.

Write a poor one, and you might lose out—even if you’re offering the best service out there. So, how do you write a business proposal? What is the proper format? What do you need to include?

While it all depends on your industry, and whether or not you’re offering a product or service, writing a business proposal is pretty straightforward. We’ll answer all those questions and more throughout the course of this guide. 

What to expect with this business proposal guide

Whether you’re starting fresh or need to look at a specific section, here’s what we’ll be covering in this guide. 

• What a business proposal is
• The differences between a business proposal and a business plan
• The format of a business proposal
• How long to make your business proposal

How to write a business proposal

You can download a free business proposal template here to start writing up your own proposal as you work through this article. By the end, you’ll be prepared to develop a well-written business proposal that can explain your business clearly and win more clients. Let’s get started.

What is a business proposal ?

A business proposal is a document you’d send to a prospective client, outlining the service you’re offering, and explaining why you’re the best person for the job. 

It’s a pitch by a business or individual to complete a specific job or project, to supply a service, or, in some instances, to be the vendor of a certain product.

What are the different types of business proposals?

A business proposal can be either solicited or unsolicited. With a solicited proposal, the prospective client will put out a request for proposals; with an unsolicited business proposal, you are approaching a client in hopes of attracting their business, even though they did not explicitly request a proposal.  

While both are commonplace, a solicited proposal is an easier sell, as your prospective client has already decided that they want to make a purchase or use a service, and they’re evaluating possible vendors or businesses.

With a solicited proposal, your prospective client might have issued an RFP, or “request for proposal.” This is exactly what it sounds like—they want you to send over a business proposal so they can take a look at it.

Differences between a business proposal and a business plan

A business proposal is not the same as a business plan . This is the most common misconception, but while there are areas of overlap (like your executive summary ) the two are different.

That being said, you can certainly pull information from your business plan while writing your business proposal—in fact, that’s a great way to start.

But don’t confuse the two; they are distinct and separate. In short, a business plan represents the cohesive strategy of how your business operates and makes money. A business proposal is an official pitch to clients selling your products or services. 

A business proposal outlines a particular product or service offered by an established business to a prospective client.

You’re trying to sell your prospective client on your product or service, not on your business itself. You’re not after funding, as you are with a business plan, you’re trying to make a sale.

A business proposal is also not an estimate; although you’ll likely touch on costs and pricing in your business proposal, an estimate is much more informal and just a quick look at the costs, not the whole picture.

What goes into a business proposal?

Your business proposal should address the three Ps:

• Problem statement: What your customer’s current problem is
• Proposed solution: How your business solves that problem better than other solutions
• Pricing: How much that solution costs compared to alternatives

If you’re stuck on how to start, maybe try brainstorming first; start with these three points, and you’ll have a rough, bare-bones version of your business proposal.

Once you’ve done that if you’re ready to go more in-depth, here is a step-by-step look at how to format your business proposal.

Your business proposal should start with a title page, which should include your name, the name of your company, the name of the person to whom you’re submitting your proposal, and the date submitted.

Table of contents

Depending on how long your business proposal is, a table of contents is a nice touch. Include it after your title page, and before you launch into any details. If you’re delivering it as a PDF, including anchor links down to each section, so it’s easy to get to specific areas. 

Executive summary

Introduce your proposal with a great executive summary, one that really sells your business and the products or services you provide—it’s about why you’re the right company for the job. You can draw from your business plan’s executive summary here, too.

Statement of problem, issue, or job at hand

Following your executive summary, go on to discuss the problem that the client is currently facing. Think of “problem” or “issue” loosely; after all, their main problem may just be finding the right person to complete their project. But be sure you understand why they want the product or service they’re seeking. If the proposal is for developing a brand new website, make sure you understand what they want to get out of the site—better sales, more content management flexibility. 

This is the place to show your new client that you understand their needs , and fully grasp the issue they are trying to solve. Take this opportunity to restate the issue they are facing in your own words so that they know you understand what they are looking for.

Approach and methodology

This section shows how you plan to tackle your potential client’s problem, and the steps you’ll take to carry out your plan.

This is where you’ll get into the nitty-gritty of how you actually plan to fulfill your client’s needs. While earlier sections might have been a bit surface-level, this section of the business proposal is where you’ll go into detail about what steps you’ll take to solve their problem.

Be careful of going into too much detail, though—keep the jargon to a minimum. Your client should be able to follow along and get a clear sense of your plan, but you don’t want to drown them in minutiae.

Qualifications

Go ahead, brag a little—this is the section of your business proposal where you get to convince your potential client why you are the most qualified person to take on the job.

You can mention any relevant education, industry-specific training, or certifications you have, your past successful projects of a similar nature, years of experience, and so on.

Schedule and benchmarks

Be clear with your potential client: How long will your proposed project take?

Making sure you and your prospective client are on the same page from the outset will help make sure that the relationship stays positive for both of you, and that you don’t set your client up with unrealistic expectations.

While you might be tempted to underestimate how long it will take you to complete the project, don’t. Don’t promise what you can’t deliver!

If you’re offering a product, this section might not be applicable to you, so feel free to omit it. The business proposal format is flexible, so tailor it to suit your business and industry.

Cost, payment, and any legal matters

Here is where you get down to brass tacks and state the cost, and payment schedule if necessary.

How you structure this section will largely depend on the particular project or service you are offering. A section entitled “Fee Summary” may be sufficient if one-time payment is required; otherwise, a “Fee Schedule” list or pricing table might be more appropriate. Always refer back to the client’s RFP whenever possible, to make sure you’re supplying them with all the information they need to help make their decision.

If there are any legal issues to attend to, such as permits or licensing, include this information here. Feel free to add a section entirely devoted to handling the legal side of the project if need be.

This is your final sell—don’t be afraid to detail for your prospective client all they have to gain by choosing you to complete the project.

Impress upon your clients why you are the best choice, and all the ways in which their business will benefit from choosing you and your business as their solution.

How long should a business proposal be?

When it comes to the format of a business proposal, this is the million-dollar question without an answer. Remember in school, when you’d ask your teacher how long an essay should be, and they’d reply, “as long as it takes to answer the question.”

The same applies to your business proposal. It ultimately depends on your industry, the scope of the project, and the client’s specifications in terms of detail and elements included.

That being said, the tighter your initial proposal can be and the more directly you can make your point, the easier it will be to pitch it to clients. Start by following the business proposal format above as a guide, and you’ll be well on your way to creating a winning business proposal—and securing new clients.

Editor’s note: This article was originally written in 2018 and updated for 2021.

Briana Morgaine

Briana is a content and digital marketing specialist, editor, and writer. She enjoys discussing business, marketing, and social media, and is a big fan of the Oxford comma. Bri is a resident of Portland, Oregon, and she can be found, infrequently, on Twitter.

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Computer Shop Business Plan Sample PDF Example | Free Download Presented by BizMove

Watch This Video Before Starting Your Computer Shop Business Plan PDF!

Checklist for Starting a Computer Shop Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Computer Shop business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

For more insightful videos visit our Small Business and Management Skills YouTube Chanel .

Here’s Your Free Computer Shop Business Plan DOC

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https://www.bizmove.com/free-pdf-download/how-to-start-a-business.pdf

How to Train Your Sales Team

Ultimately, the value of any employee is measured by the employee's productivity. How many sales dollars did he or she produce? Did they stick? Or did they lead to an extraordinarily high percentage of returns, credit losses, or dissatisfied customers?

Productivity can vary widely from one employee to another. A top producer will often generate two or three times the sales of the average producer. The top producer will develop a loyal following of customers. People who always buy their suits from Sal because he knows what looks good on them. People who always buy wallpaper from Mildred because her recommendations have always been proven current. Best of all, this loyal following sends their friends!

Developing Top Producers

To become a top producer, a person must get to know every aspect of the job thoroughly. This can only be done through development of skills.

The New Employee

The time to begin an employee's skills development process is immediately upon hiring. Beginning training immediately has the following advantages:

Achieves a reasonable level of employee productivity in the shortest possible time.

Avoids unnecessary expenses and lost sales.

Takes advantage of the new employee's natural interest in the job and willingness to learn about it.

Training vs. Education

Training is often confused with education. Therefore, it is often rejected by people whose background includes unsatis­factory educational experiences. In training, the tradi­tional academic atmosphere of teacher, classroom, library, laboratory, and homework have little application because the objectives of education and training are totally different.

The objective of education is to expand the person's knowledge. The objective of training is to make the person able to perform specific tasks. Knowledge may provide a background for training, but the ability to apply that knowledge is the goal of training.

An educator would be satisfied with the student who under­stands and can explain the motivations of a consumer. The trainer wants the person to be able to use that knowledge in a selling situation, not just on a written examination.

Retail Training

In retailing, training generally involves development of the following:

Knowledge of store policies and procedures including cash register operation, credit approvals, and customer returns.

Knowledge of the product that the person is expected to sell.

Selling skills to build sales and profit.

Training Techniques

Most training in small retail operations involves "one-to-one" training. You, as the owner, training a single employee. Ordinarily, people are hired one at a time so that there is little opportunity for training in a classroom setting. To some extent, individual training can be supplemented by books and publications that are available for retail sales training. In other cases, courses sponsored by local community colleges or distributive education associations can be helpful in the development of selling skills.

Criteria for Successful Training

Regardless of the training method that you use for your personnel, there are two key elements for success. These are as follows:

Trainee participation. The training process should directly involve the trainee. Asking the trainee to read a book or listen to you talk has little or no value. Few can absorb it. The passive role of reader or listener is seldom helpful in understanding and remembering. Reading a book or hearing a speech is fine for entertainment or intellectual stimulation, but these activities are seldom effective in a training environment.

People learn by doing things. When you teach new sales personnel how to prepare an invoice or credit memo, it is not enough to tell them how or show them how. It is far more important to have them do it.

Feedback. Feedback is what you learn by testing the employee's understanding of the facts that you are teaching. It permits you to measure the employee's progress at each step. Through feedback, you can recognize problems when they arise. Through early recognition of misunderstandings, you can correct them as soon as possible so that training can progress.

Feedback helps you direct your training efforts since you know those things that give the employee particular difficulty, such as arithmetic or trade terminology. In the remainder of your training effort, you can then be particularly careful and painstaking in teaching anything that involves trade terminology or arithmetic skills.

Teaching selling skills consists of the three following steps:

Customer communications. Developing a courteous approach to greeting customers and discussing their buying needs. This permits the salesperson to assist customers in their product selection and describe products in terms that show how they fulfill the customers' buying needs.

Feature-benefit relationship. Understanding the reasons why your customers buy, relating your products or services to those reasons, and describing your products or services to your customers accordingly.

This article offers managing your business tips and manage business advice. However, you aren't ready to start your own business until you have given any thought to managing it. A company is an ongoing activity that doesn't run itself. As the manager you will have to set goals, decide how to reach those goals and make all the necessary decisions. You'll need to purchase or make your product, cost it, advertise it and market it. You'll need to keep documents, and determine prices. You'll Have to Control stock, make the ideal buying decisions and keep prices down. You'll need to employ, train and motivate employees today or as you develop. Setting Business Management Goals. Great small business management Is the secret to success and great management starts with setting goals. Establish goals for yourself for the accomplishment of the many tasks necessary in starting and managing your company successfully. Be specific. Write down the goals in measurable terms of functionality. Break big targets down to sub-goals, demonstrating what you expect to attain in the next two to three months, the subsequent six months, the next year, and the next five decades. Beside each target and sub-goal set a specific date showing as it is to be achieved. Plan the action you must take to attain the goals. While the attempt Required to reach each sub-goal should be great enough to challenge one, it should not be so great or unreasonable as to dissuade you. Do not plan to achieve too many targets all at one time. Establish priorities. Plan in advance how to measure results so you can know exactly how Well you are doing. This is what is meant by"measurable" goals. If you can't keep score as you move along you are likely to eliminate motivation. Re-work your plan of action to permit for obstacles that might stand on your way. Attempt to foresee obstacles and plan ways to stop or minimize them. Buying. Skillful purchasing is an important essential of profitably Managing a business. This is true whether you're a wholesaler or retailer of product, a manufacturer or a service business operator. Some retailers say it is the most important single factor. Merchandise that's carefully purchased is not difficult to market. Determining what to purchase means finding out the Kind, type, quality, Brand, size, colour, style -whatever applies to your specific inventory - which will sell the very best. This requires close attention to salespeople, trade journals, catalogs, and notably the preferences of your regular clients. Analyze your earnings records. The manufacturer should view the problem through the eyes of customers before determining what materials, components, and materials to buy. Know your regular customers, and also make a Fantastic evaluation of this People you expect will become your clients. Just what socioeconomic category are they? Are they homeowners or renters? Are you currently searching for price, style or quality? What's the predominant age group? The age of your clients can be a prime consideration in Establishing a purchasing pattern. Young men and women buy more often than most older people. They need more, have fewer responsibilities, and spend more on themselves. They are more conscious of fashion trends whether in wearing apparel, cars or electronics. If you choose to appeal to the young trade because they appear dominate in your area, your purchasing pattern will probably be wholly different than when the more conservative middle-aged customers seem to be in the majority. Study trade journals, newspaper advertising, catalogs, window Displays of businesses like yours. Ask advice of salespeople supplying you product, but buy sparingly from several suppliers instead of one, testing the water, so to speak, until you know exactly what your best lines will be. Finding suitable merchandise sources is not easy. You will buy Directly from producers or producers, from wholesalers, distributors or jobbers. Select the providers who sell exactly what you want and can provide it when you want it. (Distributors and jobbers are utilized by most business people for quick fill-ins between mill shipments.) You may spread purchases among many providers to gain more Favorable prices and promotional material. Or you might focus your purchases one of a few providers to reevaluate your credit issues. This may also allow you to become known as the seller of a particular brand or line of merchandise, and to maintain a fixed benchmark in your goods, if you're shopping for stuff for manufacturing functions. When to purchase is essential if your company will have seasonal Variations in sales volume. More stock will be needed prior to the seasonal upturn in sales quantity. As earnings decline, less product is needed. This means purchases of goods for resale and materials for processing must vary accordingly. At the start, how much to buy is speculative. The best policy is To be frugal until you've had sufficient expertise to judge your needs. On the flip side, you cannot sell product in case you do not have it. To help solve buying issues, you should Start to maintain stock Control records simultaneously. This will allow you to maintain the inventory in balance - neither too big nor too small - with a suitable proportion and decent range of merchandise, sizes, colours, styles and qualities. Fundamentallythere are two Kinds of inventory control - control in Dollars and control in physical components. Dollar controllers show the sum of money spent in each merchandise category. Unit controllers indicate the amount of individual items when and from whom bought by class. A fantastic stock control system is able to help you determine everything, from whom, when, and how much to purchase. Pricing. A lot of your success in manage a business will depend on How you price your services. If your prices are too low, you will not cover Costs; too high and you will lose sales volume. In both cases, you won't Earn a profit.

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Computer Sales and Service Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Technology Sector

Are you about starting a computer sales & services business? If YES, here is a complete sample computer sales & services business plan template & feasibility report you can use for FREE .

According to a recent report, computer sales and related services are expected to exceed $47 billion this year in the U.S. alone, with computer servicing leading the way. This goes to show that any entrepreneur who properly positions himself or herself in computer sales and servicing industry would definitely enjoy good business turnover.

As a matter of fact, almost all businesses and homes have computers, and these people may not have the skills, time or the desire to do their own computer servicing, repairs and upgrades, and that puts a computer physician right in the middle of one of the fastest-growing industries in the world.

A Sample Computer Sales & Services Business Plan Template

1. industry overview.

The computer sales and servicing industry includes operators that mainly sell and service all forms of computers such as desktops, laptops, notebooks, palmtops and software, as well as accessories like printers, scanners and keyboards. These goods are generally purchased from domestic and international manufacturers and wholesalers and then sold to end consumers, including households and businesses.

Computers have exploded throughout America and the world over the past 30 years – from 2,000 units shipped in 1960 to 900,000 in 1980 to 7 million in 1990 to over 15 million per year by 2003 to over 65 million per quarter in 2015. With this rapid growth, there has been a corresponding increase in the need for computer services.

If you are conversant with happenings in the Computer Sales and Services industry, you will notice that computers are rapidly becoming indispensable household and personal products. In spite of the growing ubiquity of these products, retailers of computers, peripherals and consumer electronics have experienced some time-consuming challenges over the past five years.

Swift technological change, increased production efficiency and a highly globalized supply chain have lowered computer retail prices, hampering the industry’s revenue potential.

In addition, the increasing adoption of e-commerce has reduced customer traffic in computer stores, further limiting revenue. More consumers are now taking advantage of online shopping, which facilitates product and price comparisons. Going forward, industry revenue is expected to decrease.

The Computer Sales and Services industry is indeed a large industry and pretty much active in most countries of the world.

Statistics has it that in the united states of America alone, there are about 18,173 registered and licensed (big, medium scale and small) computer manufacturing companies scattered all across the United States responsible for employing about 94,791 people and the industry rakes in a whopping sum of $29 billion annually.

The industry is projected to enjoy -0.4 percent annual growth within 2012 and 2017. It is important to state that Apple Inc., Best Buy Co. Inc. and Fry’s have lion shares of the available market in this industry.

Computer sales account for an estimated 44.0 percent of industry revenue in 2017. Products in this segment include desktops and laptops, with laptop sales outpacing that of desktops. While desktops were historically the most commonly purchased computer product, the falling price of computers and computer components over the past five years reduced the premium that laptops once commanded over desktops.

A majority of consumers’ favor laptops for their portability, augmented by the increasingly wireless data infrastructure. However, desktops still maintain advantages in niche market, particularly with gaming enthusiasts and computer power users who prefer a desktop computer’s superior upgrade potential, ease of repair and customizability.

No doubt everybody will quite agree that the computer sales and services industry has come to stay and of course it is one industry that plays key roles not only in the business world, but also in almost all aspects of what goes around in our world today as long as computers are involved.

Over and above, the Computer Sales and Services industry is an open industry hence a low level of market share concentration. Even though large multi-service agencies operate in the industry, revenue is also spread among thousands of small computer stores and repair centers.

2. Executive Summary

Harry & Barry® Computer Sales & Services Center, LLC is a U.S based computer sales and services company. We have been able to secure a standard store facility in a central business district in Phillips Avenue, Sioux Falls – South Dakota. We are set to compete in the highly competitive computer sales and services industry not only in Sioux Falls – South Dakota, but also throughout the United States market.

Harry & Barry® Computer Sales & Services Center, LLC will engage in the sales and servicing of all forms of computers such as desktops, laptops, palmtops and software, as well as accessories like printers, scanners and keyboards. Our business goal is to become one of the top brands in the computer sales and services industry 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 and highly experienced computer sales and services engineers in and around Sioux Falls – South Dakota and also from any part of the United States of America as the business grows.

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 & Barry® Computer Sales & Services Center, 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 & Barry® Computer Sales & Services Center, LLC is a joint partnership business that is owned by Engr. Harry Jordan a computer engineer par excellence who graduated with from Illinois Institute of Technology (B.Engr. Computer Engineering), and his friend and business partner Barry Martins (B.Sc. Business Management).

They have a combined experience that can help them build Harry & Barry® Computer Sales & Services Center, LLC to favorably compete with other leading computer sales and services businesses in the United States of America.

3. Our Products and Services

Harry & Barry® Computer Sales & Services Center, LLC is established with the aim of maximizing profits in the computer sales and services industry. We want to compete favorably with companies in the United States which is why we have put in place a competent quality assurance team that will ensure that every service rendered meets and even surpasses our customers’ expectations.

We will work hard to ensure that Harry & Barry® Computer Sales & Services Center, LLC is not just accepted in Sioux Falls – South Dakota but also in other cities in the United States of America. Our products and services are listed below;

• Sales and servicing of all sort of computers
• Sales and servicing of computer peripherals (e.g. printers, monitors, keyboards, mouse and speakers)
• Sale of computer software
• Computer installation
• Computer Cloning/upgrade
• Offering other computer repair and installation related services

4. Our Mission and Vision Statement

• Our vision is to establish a one stop computer sales and service center whose services and brand will not only be accepted in Sioux Falls – South Dakota but also in other cities in the United States of America.
• Our mission is to retail computers and related products and also to provide professional computer services that will assist businesses and individuals in ensuring that their computers are always in good shape to help them carry out their business.
• We want to build a computer sales and services company that can favorably compete with other leading brands in the computer sales and services industry.

Our Business Structure

Harry & Barry® Computer Sales & Services Center, LLC, is a computer sales and services company that intend starting small in Phillips Avenue, Sioux Falls, but hopes to grow big in order to compete with leading computer sales and services companies in the United States.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operations.

At Harry & Barry® Computer Sales & Services Center, 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 the stakeholders.

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
• Store Manager
• Head, Technical Services
• Human Resources and Admin Manager
• Sales and Marketing Executive
• Computer Repair and Maintenance Engineers and Technicians (10)
• Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by employing, choosing, orientating, 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; providing educational opportunities.
• Accountable for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR 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.
• 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 the daily office activities.

Store Manager:

• Responsible for managing the daily activities in the store
• Ensures that proper records of computers and computer parts are kept and warehouse does not run out of products
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Controls distribution and supply chain inventory
• Supervises the workforce in the sales floor
• Helps to ensure consistent quality of computers and computer parts are purchased and retailed in good price that will ensure we make good profit

Head, Technical Services:

• Serves as project manager of the organization; works directly with employees
• Maintains quality service by establishing and enforcing organization standards.
• Makes certain that the technical department performs efficiently, coordinates employee efforts, facilitates communication between management and computer repairs and maintenance engineers and technicians
• Ensures that the organization work in line with international best practices.

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writing 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 evaluate new plans for expanding sales
• Creates new markets cum businesses for the organization
• Empower 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
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization.

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

• Responsible for general computer repairs and maintenance services
• Carry out computer installation services for clients
• Responsible for carrying out computer cloning and upgrade
• Responsible for handling Networking of computer system
• Responsible for handling virus removal Data recovery
• Handles computer and accessories sales and supply for the organization

Help Desk Officers

• 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.
• Manages administrative duties assigned by the creative director in an effective and timely manner.
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information are supplied to clients when they make enquiries.
• Find out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
• Bag, package or gift-wrap merchandise as requested by customers.

6. SWOT Analysis

Because of our quest for excellence, Harry & Barry® Computer Sales & Services Center, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured computer sales and services business that can favorably compete in the 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 & Barry® Computer Sales & Services Center, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Harry & Barry® Computer Sales & Services Center, LLC;

Our core strength lies in the power of our workforce. We have a team of trained and certified computer 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 best practices in the industry and we will ensure that we have all brands and types of computers in our store per time.

As a new computer sales and services center in Sioux Falls – South Dakota, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already highly competitive computer sales and services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.

• Opportunities:

No doubt, the opportunities in the computer sales and services industry is massive considering the number of individuals and businesses that own computers. So also, the launch of new tablets will likely drive consumers into stores to test and compare products.

As a computer sales and services company, we are ready to take advantage of any opportunity that is available in the industry.

The increasing adoption of e-commerce has reduced customer traffic in computer stores, further limiting revenue and also, the domestic PC market has shrunk due to market saturation and greater competition from tablets, are some of the threats that will confront us.

So also, one major threat that we are likely going to face is economic downturn. Another threat that may likely confront us is the arrival of a new computer sales and services center in same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

• Market Trends

The extent at which the internet and computer has taken over our world is a pure sign that every computer literate needs the services of a computer repairer when his/her computer malfunctions – be it hardware or software. The very nature of the Computer Sales and Services industry, with its extraordinary rate of technological development, creates a constant need for businesses skilled in updating and advising customers on computer-related issues.

With every individual armed with a computer and with almost all valuable information in our daily lives being stored in the computer, the computer selling business is booming and with this booming comes a need for repair.

Everybody with a computer knows that moment of panic when the hard drive crashes–and for business people, it usually happens when they are staring into the eye of a deadline. The need for computer physicians is growing every day and more people are venturing into this field, making it a competitive and goal oriented industry.

Lastly, the computer sales and services industry will continue to evolve due to the advancement of computer technology and software designs et al.

8. Our Target Market

Before starting our computer sales and services business in Sioux Falls – South Dakota, we conducted a market survey and feasibility studies and we are certain that there is a wide range of both corporate and individual clients who cannot successfully run their businesses without computers.

In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know can’t afford to do without our products and services. Below is a list of people we will specifically market our products and services to;

• Banks, Insurance Companies and other related Financial Institutions
• Blue Chips Companies
• Corporate Organizations
• Real Estate Owners, Developers, and Contractors
• Research and Development Companies
• The Government (Public Sector)
• Schools (High Schools, Colleges and Universities)
• Celebrities, Politicians, Public Figures and Public Speakers
• Sport Organizations
• Religious Organizations
• Television Stations
• Printing Press (Publishing Houses) and Authors
• Branding and Advertising agencies
• Individuals and households who own computers

Our Competitive Advantage

Surviving in the business world as a computer sales and services company requires more than your expertise, knowing how to deliver standard repairs and maintenance but also how to network with key people that matter.

We are quite aware that to be highly competitive in the computer sales and services industry means that you are not only expected to deliver reliable computer supply, installation, repair, networking and maintenance jobs, but you must be able to meet set targets.

No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects. Our competitive advantage lies in our ability to control stock at hand, our experienced work force and proximity to key markets.

We equally have a team of certified, highly trained and experienced computer repair engineers and technicians, a team with excellent qualifications and experience in various niche areas in the computer sales and service industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by best practices in the industry.

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 & Barry® Computer Sales & Services Center, LLC is established with the aim of maximizing profits in the computer sales and services 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 & Barry® Computer Sales & Services Center, LLC will generate income by;

• Computer Cloning and upgrade

10. Sales Forecast

One thing is certain, there would always be corporate organizations and individuals who would need to purchase computers and accessories. We are well positioned to take on the available market in Sioux Falls –  South Dakota and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation.

We have been able to critically examine the computer sales and services market, 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 Sioux Falls – South Dakota.

• First Year: $350,000
• Second Year: $750,000
• Third Year: $1.2 million

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 products and services as we do within the 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 mindful of the fact that there are stiff competitions in the computer sales and services 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 so as to be well equipped to meet their targets and the overall business goal of Harry & Barry® Computer Sales & Services Center, LLC.

Our corporate goal is to grow Harry & Barry® Computer Sales & Services Center, LLC to become one of the top 10 computer sales and services 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 Sioux Falls – South Dakota but also in other cities in the United States of America.

Harry & Barry® Computer Sales & Services Center, LLC is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our computer sales and services center by sending introductory letters alongside our brochure to individuals, corporate organizations and key stakeholders in and around Sioux Falls – South Dakota.
• Promptness in bidding for computer supply, installation, repair, networking and maintenance contract from the government and other corporate organizations
• Advertise our business in relevant business magazines, newspapers, TV and radio stations.
• List our business in 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 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 consultant 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 Sioux Falls and beyond which is why we have made provisions for effective publicity and advertisement of our computer sales and services company.

Below are the platforms we intend to leverage on to promote and advertise Harry & Barry® Computer Sales & Services Center, 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 Sioux Falls – South Dakota.
• Engage in roadshows from time to time in targeted neighborhoods.
• Distribute our fliers and handbills in target areas.
• List our computer sales and services company in local directories/yellow pages
• Advertise our computer sales and services 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.

12. Our Pricing Strategy

At Harry & Barry® Computer Sales & Services Center, LLC we will keep the prices of our products and services below the average market rate by keeping our overhead low and by collecting payment in advance from corporate organizations who would purchase our products or 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 computer supply, installation, repair, networking and maintenance 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 & Barry® Computer Sales & Services Center, 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 & Barry® Computer Sales & Services Center, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

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

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive computer sales and services company in Sioux Falls – South Dakota and here are the key areas where we will spend our startup capital;

• The total fee for registering the business in the United States of America – $750 .
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Harry & Barry® Computer Sales & Services Center, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring business consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000.
• The cost for start-up inventory (stocking with a wide range of computers such as desktops, notebook computers and software, as well as accessories like printers, scanners and keyboards. et al from different manufacturing brands) – $200,000
• The cost for counter area equipment – $9,500.
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs: $10,000 .
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of launching a website: $600 .
• The cost for our opening party: $7,000 .
• Miscellaneous: $10,000.

We would need an estimate of three hundred and fifty thousand dollars ( $350,000 ) to successfully set up our computer sales and services store in Sioux Falls – South Dakota.

Generating Startup Capital for Harry & Barry® Computer Sales & Services Center, LLC

Harry & Barry® Computer Sales & Services Center, LLC is a business that will be owned and managed by Engr. Harry Jordan and his friend and business partner Barry Martins. They are the 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;

• 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 $150,000 ( Personal savings $120,000 and soft loan from family members $30,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All 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

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Harry & Barry® Computer Sales & Services Center, 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 sell or computers and accessories and offer our computer 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 & Barry® Computer Sales & Services Center, 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 retraining 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: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Securing a standard office facility for our studio: 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 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
• Opening party planning: In Progress
• Compilation of the list of products that will be available in our store: Completed
• Establishing business relationship with vendors – manufacturers and suppliers of computers, computer parts and accessories: In Progress

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Computer Repair Business Plan Sample

MAY.05, 2015

Computer Repair business plan for starting your own shop

Starting a computer repair business is undoubtedly a profitable venture. In this era, computers have become an integral part of offices, industries, organizations, institutes, and even homes. Any enterprise that uses computers to manage its operations also needs some authentic computer repair services to timely maintain, repair, and upgrade the computers.

Thus, if you are thinking about starting this business, you don’t need to worry about the scope and opportunities. Just focus on how to open a computer repair business. For that, you will need to make a business plan for computer repairs, as the first step. In case, you don’t know how to create a comprehensive computer repair business plan pdf , we are providing here the business plan for a startup, PC Fix.

Executive Summary

2.1 the business.

PC Fix will be a licensed and registered computer repair business startup. The business will be based in Boston. The business will provide computer repair, maintenance, and upgradation services to individual customers, and small and large business setups.

2.2 Management of Computer Repair Shop

Computers can get software and hardware problems anytime. Therefore, if you want to start a computer repair business you must have adequate staff. So that you can provide your customers with instant support.

While you decide your strategy about how to set up a computer repair business, you should start gathering a skillful workforce. To manage your business, you will also be needing experienced supervisors to monitor all aspects.

2.3 Customers of Computer Repair Shop

Before researching how to start a computer repair business you should explore who will be your customers. Knowing your customers will help you in amassing the equipment and staff that could meet their demands.

PC Fix identified its customers as individuals who possess their personal computers, small and large businesses, educational institutes, and government organizations.

2.4 Business Target

Our aim is to become the most renowned computer repair business within a year of our launch. Our financial targets to be achieved over the next 3 years are demonstrated in this table.

Company Summary

3.1 company owner.

Steve Wayne will be the owner of PC Fix. Steve has an Associate Degree in Computer Science. He has worked as a computer support specialist for three years at Boston Finance Commission.

3.2 Why the computer repair shop is being started

Steve gained extensive experience in his field during his job. After three years he realized that he can earn multiple folds by becoming an entrepreneur. Considering his knowledge area he decided to start computer repair business plan pdf .

3.3 How the computer repair shop will be started

Step1: Plan your business

As a first step, you should plan everything about your computer repair business plan pdf and write it in your computer repair business description. If you don’t know what to include in a computer repair business plan pdf you can take help from this computer repairs business plan example. In this computer repair business plan sample we have listed everything about PC Fix including market analysis, sales business strategy , personnel plan, and financial plan.

Step2: Define your brand

After creating your computer repair business plan pdf , it’s now time to acquire the required licenses and setting up your physical presence. Meanwhile, you should also define your business values and aims to make people feel associated with your goals.

Step3: Start the recruitment

The next step is to initiate your hiring process to find the most competent employees.

Step4: Get ready to promote & market

After you’ve concluded all the above-mentioned steps, you should go for promoting your services.

Step5: Establish a web presence

These days, whenever people need any type of service, they search for it on Google. Therefore, it is very important to establish a strong web presence. It will enable you to come in top searches. And it will also allow you to attract more people by showing them others’ feedback.

Before owning a computer repair business you should decide your services. Through this, you will be able to purchase the right equipment and hire the right staff. In this computer repair business plan template we are listing the services of PC Fix.

• Hardware Repairs/ Maintenance/ Upgradation

We’ll also provide computer hardware repairs. Hardware issues are very common in computers. People often complain about screen freezes, blue-screen, file corruption errors, and abnormal shutdowns. They are all in actual hardware issues.

Along with it, we will provide regular maintenance and upgradation services on an instant basis as well as on monthly and yearly contracts.

• Software Repairs/ Maintenance/ Upgradation

We will troubleshoot and resolve software problems and faults. When hired on a monthly or yearly contract, we’ll ensure regular maintenance and upgradation of software.

• Computer, Laptop and Mobile Accessories

We will also offer computer and cellphone accessories such as network interface cards, batteries, speakers, headsets, USB flash drives, etc.

• Database Management System Development

Our last service will be for businesses, institutes, and organizations. In this, we will develop a cost-effective database management system for them to manage large and irregular datasets.

Marketing Analysis of Computer Repair Shop

Before starting computer repair business it is essential to carry out a detailed marketing analysis. Marketing analysis allows you to identify ongoing and forthcoming market trends. That will eventually enable you to recognize

• The customers that may be directly or indirectly interested in your services.
• The unoccupied opportunities to serve your target customers.
• The ways that can best capture the attention of your target customers.
• The product prices that can help you draw customers as well as earn profit.

Marketing analysis should be done systematically. If you don’t know what to include in a marketing plan, you can take help from here. In this blog on how to write a business plan for computer repairs, we’re providing the marketing analysis done for PC Fix.

5.1 Market Trends

In the United States, almost everyone possesses a personal computer, laptop, or cellphone. Along with it, to manage large data sets and to work on research areas, government organizations, educational institutes, and businesses use computer-based labs and systems. With these electronic gadgets, come their hardware and software issues. Therefore, a computer repair business is needed more than ever.

Currently, more than 41k computer repair businesses are running in the U.S. according to IBISWorld. The market size until 2020 is reported to be $18 billion. Moreover, the industry has also acted as a source of employment for more than 124k people.

5.2 Marketing Segmentation

Before opening a computer repair business, you should identify the groups of your target customers. Doing this will enable you to recognize their expectations, needs, and purchasing capabilities.

As computers are used in nearly every field now, the customers of the computer repair business belong to various walks of life. The major groups of customers as identified by PC Fix are given below.

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5.2.1 Individuals

The first group of our target customers comprises people and students who have their personal computers and laptops. This category gets really worried on encountering any faults/ problems with their devices. Therefore, we expect them to visit our shop frequently for hardware/ software repairs and also for purchasing electronic accessories.

5.2.2 Small & Large Businesses

The second group of our target customers will be businesses. Nowadays companies use computers to monitor their business, cash flows, and to perform their work. Thus, they are expected to avail of our services on a contract basis as they need regular maintenance and upgradation.

5.2.3 Educational Institutes

Our third category comprises educational institutes that have established computer labs for study, research, and management purposes.

5.2.4 Government Organizations

Last we also expect government organizations based in our city to be our customers for their computer repairs and upgradation.

5.3 Business Target

In your computer repair business model you should clearly define your computer repair business plan pdf targets to be achieved over a specified time. This can help you in directing your workforce and your resources towards a common goal.

PC Fix aims at

• Earning a net profit margin of $28k per month by the end of the third year
• Earning an average rating above 4.65 by the end of the first year
• Maintaining a CSAT score above 90%
• Achieving a customer retention rate of 90% by the end of the first year

5.4 Product Pricing

Our prices are slightly lower than that of our competitors. This is because we want to get introduced to a large number of people as soon as we get launched.

Marketing Strategy

To capture the attention of your target customers amid huge competition, it is necessary to have an efficient sales strategy. In this computer repair business proposal we are providing computer repair business marketing plan of PC Fix. So that you can learn what can be done to stay competitive and successful.

6.1 Competitive Analysis

• We have extremely skilled and collaborative staff.
• We are highly client-oriented and are willing to go the extra mile to satisfy our customers.
• Customers can book our services through our website.
• Only we in our vicinity are providing computer and cellphone accessories. And that is something that will help us draw more customers.

6.2 Sales Strategy

To attract our target customers, we will:

• Establish a strong web presence by making it SEO
• Advertise our services through Google Local ads service
• Provide a 40% discount on all of our services except PC accessories for the first 3 months of the launch
• Provide a 30% discount to organizations, businesses, and institutes on a 6-month maintenance contract.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

When you write a business plan computer repair shop, you should also include a list of required employees in it. Through this, you’ll be able to define a criterion to select the most competent employees. Moreover, make sure that you also throw light on their average salaries for at least 3 years in your personnel plan.

7.1 Company Staff

Steve will be the CEO himself. However, to run his business he will hire the following people.

• 1 Co-Manager/ Supervisor to procure equipment & see overall operations
• 8 Computer Repair Technicians
• 1 Software Developer to develop management software & company’s website
• 1 Accountant to maintain financial records
• 2 Sales Executives to promote the company and negotiate contracts
• 1 Store Manager (to manage accessories display and sales)
• 1 Receptionist

7.2 Average Salary of Employees

Financial plan.

A considerable amount is needed to build a computer repair business. If you want to make sure that your investment group to business plan doesn’t go waste, you must do accurate financial planning before you actually start your business. An accurate financial plan includes cash flow tables and diagrams, projected profit and loss, gross margins, and balance sheets. Combined, all these segments provide you with the idea of how to cover any unexpected financial loss. Or how much to keep in reserve etc.

Here, we are providing the financial plan made for PC Fix, so that you can take a general idea of computer repair finances.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

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Computer Software Retailer Business Plan

Start your own computer software retailer business plan

Eagle Computers

Strategy and implementation summary.

Our target market consists of consumers, small businesses and home offices (less than 10 employees), and tourists. Our sales and marketing strategy will consist of offering a wide selection of quality products and services, a friendly pleasant atmosphere, and a convenient location in the center of Kailua-Kona with accessibility to locals and tourists alike. We will establish ourselves in the community through word-of-mouth referrals from our satisfied clients, and various forms of advertising.

5.1 Competitive Edge

Our competitive edge is a combination of our wide range of products and services, outstanding location, and our interaction with our clients. By building a business based on long-standing relationships with satisfied clients, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer them and why they should both stay with Eagle Computers, and refer us to others in the community. In close-knit communities like the Big Island of Hawaii, reputation is extremely important, and word-of-mouth advertising is invaluable.

5.2 Marketing Strategy

Our marketing strategy is a simple one: satisfied customers are our best marketing tool. The first time a customer comes to Eagle Computers, they will know that they have found a one-stop shop for all of their computer needs, including a friendly personal atmosphere with exceptional customer service. We have talked with many friends and associates who are excited about our plans and are anxious to shop with us and use our services. Word of mouth and a good reputation are the best marketing tools in a close-knit community such as ours.

In addition, we will have a website, do radio and newspaper advertising, distribute flyers to local businesses, and advertise in the Yellow Pages. These venues will help us become known as we establish our business. 

5.3 Sales Strategy

Our umbrella sales strategy is to sell Eagle Computers to the West Hawaii community as the best resource for their computer needs, enhancing their lives with our quality, latest-technology products, the convenience of our one-stop shop, affordable pricing and the reliable professional service we offer.

We will sell Eagle Computers through each employee’s expertise, courtesy, and warmth, creating a trusting impression on all customers, and establishing loyalty and return visits. We will ensure each visit to Eagle Computers is a professional and pleasant experience, so that customers can always depend on our brand of service when they arrive.

We expect to have a customer return rate of 90% at the end of the first year and for sales to increase to over a quarter-million dollars by end of second year.

5.3.1 Sales Forecast

The important elements of the Sales Forecasts are shown in the chart and table below. Initial sales forecast indicate a healthy first year revenue increasing modestly but steadily in the second and third year. These figures are based on revenue from three main areas:

• Computer Sales – this includes sales of all hardware components. We estimate a 5% annual increase in this revenue area from new customer acquisition. The sales costs for computer hardware averages 70% of the final sales prices when the hardware is sold. Costs for wholesale computer hardware is expected to have a 2% annual increase.
• Computer Service – revenue generated strictly from labor fees, so except for payroll, there is no sales cost. We estimate a 10% annual increase in this revenue area from repeat business as a result of customer loyalty.
• Computer Rental Stations – revenue generated from customers renting the computer stations by the hour. We estimate a 3% annual increase to reflect the projected increase in tourism to Kona. This revenue is all profit since it requires no cost for inventory and it is basically self-service, so requires no labor hours.

5.4 Milestones

The following table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

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ChatGPT Cheat Sheet: Complete Guide for 2023

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Get up and running with ChatGPT with this comprehensive cheat sheet. Learn everything from how to sign up for free to enterprise use cases, and start using ChatGPT quickly and effectively.

ChatGPT reached 100 million monthly users in January, according to a UBS report , making it the fastest-growing consumer app in history. The business world is interested in ChatGPT too, trying to find uses for the writing AI throughout many different industries. This cheat sheet includes answers to the most common questions about ChatGPT and its competitors.

What is ChatGPT?

Who made chatgpt, how much does chatgpt cost, how to use chatgpt, chatgpt updates and openai api news, criticisms and security issues.

• What are ChatGPT’s competitors?

The future of AI in business

• What’s next for OpenAI?

ChatGPT is an AI chatbot product developed by OpenAI. ChatGPT is built on the structure of GPT-4 . GPT stands for generative pre-trained transformer; this indicates it is a large language model that checks for the probability of what words might come next in sequence. A large language model is a deep learning algorithm — a type of transformer model in which a neural network learns context about any language pattern. That might be a spoken language or a computer programming language.

The model doesn’t “know” what it’s saying, but it does know what symbols (words) are likely to come after one another based on the data set it was trained on. The current generation of artificial intelligence chatbots, such as ChatGPT, its Google rival Bard and others, don’t really make intelligently informed decisions; instead, they’re the internet’s parrots, repeating words that are likely to be found next to one another in the course of natural speech. The underlying math is all about probability. The companies that make and use them pitch them as productivity genies, creating text in a matter of seconds that would take a person hours or days to produce.

In ChatGPT’s case, that data set is a large portion of the internet. From there, humans give feedback on the AI’s output to confirm whether the words it uses sound natural.

The public version of ChatGPT can call on current events information as recent as January 2022. ChatGPT Plus can call on current events information as recent as April.

In August OpenAI launched a GPTBot, a web crawler meant to expand ChatGPT’s knowledge. Technical details and ways to keep GPTBot from crawling a website you run can both be found here .

SEE: OpenAI’s probability assessments were trained on Microsoft’s Azure AI supercomputer. (TechRepublic)

Several organizations have built this ability to answer questions into some of their software features too. Microsoft, which provides funding for OpenAI, rolled out ChatGPT in Bing search and in Microsoft 365 . Salesforce has added ChatGPT to some of its CRM platforms in the form of the Einstein digital assistant.

ChatGPT was built by OpenAI, a research laboratory with both nonprofit and for-profit branches. At the time of its founding in 2015, OpenAI received funding from Amazon Web Services, InfoSys and YC Research and investors including Elon Musk and Peter Thiel. Musk has since cut ties with the company, while Microsoft provided $10 billion in funding for OpenAI in 2023.

The base version of ChatGPT can strike up a conversation with you for free. For $20 per month, ChatGPT Plus gives subscribers priority access in individual instances, faster response times and the chance to use new features and improvements first. For example, right now ChatGPT Plus subscribers will be running GPT-4, while anyone on the free tier will talk to GPT-3.5.

For developers and organizations who don’t already have a specific contract with OpenAI, there is a waitlist for access to the ChatGPT API.

In August, OpenAI launched ChatGPT Enterprise , a subscription plan for business with more security enhancements and admin controls compared to the basic version. Organizations interested in pricing for ChatGPT Enterprise can contact OpenAI’s sales team.

It’s easy to use the free version of ChatGPT. You need to sign up for an account with OpenAI , which involves fetching a confirmation code from your email; from there, click through and provide your name and phone number. OpenAI will warn you that the free version of ChatGPT is “a free research preview.” For the Plus version, you’ll see an “upgrade to Plus” button on the left side of the home page.

New signups or account upgrades for ChatGPT Plus were paused on Nov. 14. “The surge in usage post devday has exceeded our capacity and we want to make sure everyone has a great experience,” OpenAI CEO Sam Altman wrote on X (the social media site formerly known as Twitter). To be notified when signups and account upgrades are available again, sign up to be alerted on the ChatGPT mobile app.

For businesses, ChatGPT can write and debug code, as well as create reports, presentations, emails and websites. In general, ChatGPT can draft the kind of prose you’d likely use for work (“Write an email accepting an invitation to speak at a cybersecurity conference.”). ChatGPT can answer questions (“What are similar books to [xyz]?”) as well. Microsoft showed off these features in its announcement that OpenAI is coming to Word and some other parts of the 365 business suite .

ChatGPT has historically not ‘remembered’ information from one conversation to another. However, starting on July 20, ChatGPT Plus members can use a feature called custom instructions to make sure the AI remembers certain things about them. For example, it can remember a specific user tends to want content for a business audience, or, conversely, for third graders. It is not available in the UK and EU.

ChatGPT app for iOS

On May 18, OpenAI announced the launch of the free ChatGPT app for iOS . The company stated the app syncs your history across devices, and that it integrates with its open-source speech-recognition system Whisper. On the iOS app, OpenAI said ChatGPT Plus subscribers get exclusive access to GPT-4’s capabilities, early access to features and faster response times.

OpenAI started this rollout in the U.S. As of May 24 it expanded to 11 more countries — Albania, Croatia, France, Germany, Ireland, Jamaica, Korea, New Zealand, Nicaragua, Nigeria, and the UK, with more expected to follow.

ChatGPT app for Android

ChatGPT for Android dropped on July 25 for users in the US, India, Bangladesh, and Brazil. Android users in those countries can download the app through the Google Play Store now. Additional countries gained access over the following week, OpenAI said .

Browse with Bing

ChatGPT Plus and Enterprise subscribers can use ChatGPT to answer questions using the Bing search engine. Browsing was brought out of beta on October 17.

To access Bing in ChatGPT, subscribing customers can choose Browse with Bing in the selector under GPT-4. OpenAI expects to expand internet browsing to all users at a later date.

Browse with Bing was disabled on July 3 out of “an abundance of caution,” OpenAI wrote, and reinstated in beta on Sept. 27. OpenAI has since added “updates include following robots.txt and identifying user agents so sites can control how ChatGPT interacts with them.”

Voice and image capabilities

On Nov. 21, ChatGPT Voice was released for all users. This feature allows users to ask questions out loud and for ChatGPT to reply in the same way.

Subscribers to ChatGPT Plus and Enterprise first  reported new voice and image capabilities rolling out in late October.

The ability to use Tools without switching is an important step toward multimodality, in which GPT-4 can automatically access DALL-E 3 to analyze or create images without a manual switch. Text-based queries will be able to result in images and vice versa. OpenAI expects to expand these capabilities to developers and other groups of users “soon after” the October release for Plus and Enterprise users.

OpenAI continues to update ChatGPT and its other services with developer-focused changes.

OpenAI’s bug bounty program

OpenAI started a bug bounty program on April 12, offering between $200 and $20,000 to ethical hackers who find vulnerabilities in the code. More critical vulnerabilities net larger bounties.

OpenAI isn’t looking for solutions to problems with ChatGPT’s content (e.g., the known “hallucinations”); instead, the organization wants hackers to report authentication issues, data exposure, payments issues, security issues with the plugin creation system and more. Details about the bug bounty program can be found on Bugcrowd .

Web browsing and plugins

GPTPlus users gained access to a beta version of web browsing and Plugins on the week of May 12. The beta includes web browsing mode, in which ChatGPT will sometimes access the internet to pull in information about current events.

Secondly, the beta version of ChatGPT will call on third-party plugins at the appropriate times if the user enables them. Third-party plugins can be accessed in the Plugin Store under Plugins in the model switcher. This opens ChatGPT up to more than 70 third-party plugins.

June 2023 API and pricing updates

On June 13, OpenAI added function calling to the Chat Completions API; reduced the price of their embeddings model (which helps the model interpret tokens); and reduced the price of input tokens for GPT-3.5 -turbo, one of the subscription models for the GPT 3.5 model.

With function calling, developers can describe functions to GPT-4 or GPT-3.5 turbo and the AI will return a JSON object which can call those functions. This could be used to create chatbot tools that call external plugins, convert natural language into database queries or API calls, or extract structured data from text.

Other announcements from OpenAI’s June 13 blog post include:

• updated and more steerable versions of GPT-4 and GPT-3.5-turbo
• new 16K context version of GPT-3.5-turbo (compared to the standard 4Kversion)
• Applications using GPT-3.5-turbo, GPT-4, and GPT-4-32K will automatically be upgraded to new models on June 27th.

Code interpreter

On July 6, OpenAI made ChatGPT’s code interpreter function available to all ChatGPT Plus users. The Code interpreter is an in-house plug-in with which ChatGPT can run code to analyze data, solve math problems, create charts, edit files, and similar tasks. It functions using a Python interpreter in   a sandboxed, firewalled execution environment in a persistent session the length of the chat conversation, OpenAI said in their blog post .

Code interpreter is available in beta by taking the following steps in a ChatGPT Plus account:

Click on your name

Select beta features from your settings

• Toggle on the beta features you’d like to try.

On Nov. 6, OpenAI released GPT-4 Turbo and GPTs, custom versions of ChatGPT that can be built for specific tasks, for ChatGPT Plus and Enterprise users. GPTs do not require any knowledge of coding to create; instead, users can have a natural language conversation with generative AI to create them. Developers can define custom actions for GPTs by making one or more APIs available to the GPT. Enterprise customers can share GPTs within their organizations.

Later in November, creators will be able to promote and sell GPTs on the GPT Store.

With more and more organizations adopting generative AI, many questions arise. Will AI be able to fill jobs currently held by humans? What privacy and ethical concerns does it raise? These questions apply to both ChatGPT and its competitors, since any generative AI can perform similar tasks.

Will ChatGPT result in people losing jobs?

Whether ChatGPT will take jobs away from humans is impossible to predict. Goldman Sachs says in an April report that a quarter to a half of humans’ workloads could be automated with generative AI. The financial institution notes that doesn’t necessarily mean those jobs will disappear – instead, most will be “only partially exposed to automation” – and it may lead to up to a 7% increase in global GDP.

Roles that are repetitive or based on very specific rules are most likely to be able to be performed by AI, Steven Miller, professor emeritus of information systems at Singapore Management University, told CNBC .

ChatGPT could lead to new job roles being created, too. At the very least, people will be needed to prompt, train and audit AI like ChatGPT. Most likely, we’ll see the kind of shuffle that comes with any major technological shift as some jobs change and others do not.

Some experts refer to the current wave of AI as similar to the early days of the internet . Technological limitations still exist, and some estimations about how many jobs would be lost through automation have proven exaggerated in the past . The IEEE points out that the AI industry will need to be aware of hardware limitations and costs. Companies may not find it practical to spend enough money on AI services in order to replace a large percentage of their workforce. Paying users of ChatGPT can make a maximum of 25 GPT-4 queries every three hours, IEEE points out.

In some jobs, the AI may remove the need for a first draft, MIT labor economics professor David Autor said in an interview with CBS MoneyWatch . A human will need to tweak the output and give in a unique angle or more varied wording, but ChatGPT could write the bare bones version of a speech or a blog post.

SEE: How ChatGPT could enhance jobs instead of replacing them. (TechRepublic)

Ethical and privacy concerns about ChatGPT

Perhaps inspired by science fiction about AI taking over the earth, some high-profile players in tech urge caution about giving AI too much free rein. On March 22, a petition and open letter signed by Elon Musk and many others urged companies to pause large AI development until more safeguards can be built in.

Ethics questions to ask when using generative AI

ChatGPT opens up questions about the ethics of using written content created by the algorithm. Posts created by AI should be clearly marked as such, but what about more casual communication such as emails? Business leaders should establish guidelines for when to be transparent about the use of ChatGPT or other AI at work.

OpenAI cautions that its products are not to be used for decisions in law enforcement or global politics . Privacy, which is perhaps a more pressing concern than global domination, led Italy to ban ChatGPT . OpenAI has since stated it wants to find a way to let ChatGPT work within the European Union’s strict privacy rules.

OpenAI’s new privacy update allows users to exclude themselves from training data

On April 25, OpenAI announced it has added a Chat History & Training setting that lets users turn off their ChatGPT chat history, preventing future versions of OpenAI’s large language models from training on those conversations. To find this option, click on your account name, which will display as your email address. Select Settings > Data Controls > Chat History & Training.

As of now, if this setting is not selected, user data will be fed back into the AI to train it on producing more naturalistic and useful responses.

OpenAI filters out personally identifiable information from the training data, OpenAI told Bloomberg . As of April 2023, users can download a copy of their ChatGPT chats and see what training data they have produced. In ChatGPT Enterprise, users’ data is used to train other OpenAI products.

Copyright Shield

On Nov. 6, OpenAI announced Copyright Shield. Copyright Shield is a guarantee that if someone files  legal claims around copyright infringement against content created by users of ChatGPT Enterprise or OpenAI’s developer platform, OpenAI will costs incurred.

Malicious uses of generative AI

Another potential problem comes from people using generative AI like ChatGPT to draft business email compromise messages or other attacks. Threat actors have created WormGPT , an application specifically for drafting malicious emails and customizing them to the prospective victims. Email security company SlashNext discovered WormGPT being used on black hat forums. WormGPT doesn’t actually share any genes with OpenAI’s ChatGPT; instead, the threat-oriented AI is based on GPT-J, a large language model from EleutherAI .

Training data extracted with ‘poem’ exploit

On Nov. 28, security researchers from Google DeepMind found that adversarial actors could extract training data, including personal information, from ChatGPT using a flaw based on extractable memorization. The paper, published as a PDF on arXiv , shows that the researchers could trick the chatbot into revealing its raw training data. One way to do so was to ask ChatGPT to repeat the word ‘poem’ forever. This would result in the chatbot eventually diverging from the task and generating random content, or, in some cases, generating the exact data the generative AI was trained on.

“The actual attack is kind of silly,” the researchers wrote, referring to the endless poem prompt. However, they warn that the consequences could be quite serious, with the attack circumventing ChatGPT’s privacy safeguards.

What are ChatGPT’s competitors?

ChatGPT’s primary competitors are or could be Google’s Bard , Baidu’s Ernie, DeepMind’s Sparrow and Meta’s BlenderBot .

Google’s Bard

ChatGPT’s main competitor is Bard, Google’s AI generative AI chatbot. People who would like to try Bard’s chat function need to join a waitlist .

Now Google plans to add Bard into search. In comparison to ChatGPT , Bard focuses more on creating prose that sounds like a human could have spoken it naturally and less on being able to answer any question. Bard is built on Google’s Language Model for Dialogue Applications.

While Microsoft is ahead of the pack right now (as of summer 2023) in terms of providing chat functions to productivity software, the company lags behind in terms of its search engine Bing. Google decision-makers allegedly pivoted to urgently roll out a competitor for Microsoft’s decision to add generative AI to Bing search. (Meanwhile, ChatGPT helped Bing reach 100 million daily users. )

Baidu’s Ernie

The Chinese search engine Baidu plans to add a chatbot called Ernie. Baidu announced the upcoming change on March 16, at which point the initial showing disappointed investors .

DeepMind’s Sparrow

OpenAI competes with DeepMind, an artificial intelligence research laboratory owned by Alphabet. The two organizations are significantly different in terms of their aims. DeepMind focuses more on research and has not yet come out with a public-facing chatbot. DeepMind does have Sparrow, a chatbot designed specifically to help AI communicate in a way that is “ helpful, correct and harmless .” DeepMind founder Demis Hassabis told The Independent in January that DeepMind may release a private beta version of Sparrow later in 2023.

Meta’s Llama 2 and BlenderBot

Meta released BlenderBot in August 2022. The prototype BlenderBot from the company behind Facebook focuses on being able to chat, providing short, conversational replies rather than full paragraphs.

Meta also has Llama 2 , a foundational model competitive with the GPT-4 engine behind ChatGPT.

Anthropic’s Claude 2

Claude 2 is a generative AI assistant released in July. Anthropic describes it as “a friendly, enthusiastic colleague or personal assistant who can be instructed in natural language.”

X.ai’s Grok

Elon Musk’s AI company X.ai , which includes developers with prior experience at OpenAI and DeepMind among other AI companies, released a chatbot called Grok in November. Grok was trained on the X social media platform (formerly Twitter) and “is designed to answer questions with a bit of wit and has a rebellious streak,” X.ai wrote on Nov. 4.

What about Apple?

According to The New York Times , Apple is working on leveraging the tech it has, especially Siri, to create a ChatGPT rival. More information about what the final product might look like is thin on the ground for now.

Will ChatGPT be common in online products in the future or is it a technological innovation forever in search of a greater use case? Today its “intelligence” is clearly still in the beginning stages, with OpenAI including disclaimers about inappropriate content or incorrect “hallucinations.” ChatGPT may put the words in a coherent order, but it won’t necessarily keep the facts straight.

GPT-3.5 and GPT-4 may also be getting worse at math . An August report from Stanford University and the University of California, Berkeley noted this “drift,” or gradual erosion of the ability to perform tasks like identifying prime numbers. Their theories as to why it’s happening include reduced ability to follow chain-of-thought (or, roughly, step-by-step) instructions.

In July, two MIT economics graduate students conducted a study of 453 professionals. They found that people who used ChatGPT for writing tasks – such as producing press releases, short reports, or analysis plans – took 40% less time to finish their tasks than a control group that was not encouraged to use the generative AI. These professionals were then scored by their peers. On average, they received grades 18% higher than those in the control group (who did not use AI). This provides some qualitative data on the effect ChatGPT could have on white-collar work.

“Participants with weaker skills benefited the most from ChatGPT, which carries policy implications for efforts to reduce productivity inequality through AI,” wrote the authors of the study, Shakked Noy and Whitney Zhang.

Overall, Noy and Zhang maintained that widespread use of ChatGPT for writing tasks could have both positive and negative impacts in the workplace and the labor market.

Meanwhile, AI announcements that go viral can be good or bad news for investors. Microsoft’s stock price rose after the announcement of GPT-4, while Google’s stock dropped when Bard performed badly in a demonstration.

OpenAI saw visitor numbers to the ChatGPT website drop for the first time since its release in November 2022 this June. According to Similarweb , worldwide unique visitors dropped 5.7% from May to June. Global desktop and mobile web traffic dropped 9.7%. ChatGPT still receives more worldwide visitors than Microsoft’s in-house AI at Bing.com. The shine may have worn off chat AI, although it’s too early to tell whether the business world will also start to cool on this trendy technology.

What’s next for OpenAI?

For now, OpenAI says it isn’t training GPT-5, the likely successor to today’s model. In a talk at MIT reported on by The Verge , OpenAI CEO Sam Altman pushed back against the open letter – an earlier draft of which had stated that a 5th generation was on the way; primarily, he criticized the letter’s lack of technical specificity.

“We are doing other things on top of GPT-4 that I think have all sorts of safety issues that are important to address and were totally left out of the letter,” Altman said.

He said no one should expect to see a GPT-5 rollout “for some time.”

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