Cell Phones Retailer Business Plan

Opportunity

Important advice

[This business plan sample is based on a previous one, which was valid several years ago. However, it still serves as an illustration of what a typical business plan looks like and the issues it covers. This information is not current. ]

Problem

In the world today everyone has a cell phone. Cell phones are expected. Cell phones are essential for both work and socializing. They are so common that people assume they should be expected to have one. But, many people who lack one cannot afford it.

Solution

Garbles Cellular’s mission is to offer its customers the highest quality cell phone products and services. Its owner focuses on personalized service to his customers by offering convenience and rapid service. Garbles Cellular is equipped with the technology expertise to help customers select the product and service that suits their needs best. Finally, our staff will have strong vendor relationships with the product suppliers and will be able to meet customers’ demand for the newest innovation in cellular phone technology.

Market

Our products have huge market potential. This can be seen in the seemingly unstoppable increase in the telecom sector. The telecom industry is currently among the fastest-growing industries and is responsible in large part for the capital markets’ huge gains. Cellular phones are expanding at a pace that is unimaginable in the past. One illustration is the forecast that in two years, over 65% children aged between 10 and 15 will own cell phones.

Future growth of the market/products is projected in the following areas:

Text messages between friends (in Japan this big). Users can send regular Short-Message Service (SMS) or email on their phones. Email is of course limited to small file sizes, but many of the phones allow for English characters to be sent. Many providers allow special characters to be sent. These include happy and sad images, small animated images as well as animals, people, and hearts. Special characters may not be available so people sometimes use a set specialized faces to express their emotion. Even though email can be sent to different provider phones, some special characters may be lost. To receive the special characters, it is a good idea to have a few friends who are on the same provider. Email, of course, may be sent from computers as well, but files are often stripped of headers and attachments when received on cell phones.

The majority of North American phones have a few games included to keep users entertained for a brief period. There are two types of games available for Japanese phones: Java applications and built-in. Although the built-in games are simpler, the graphics are crucial to the game’s value. Java application games can be delivered over the network to the customer’s phone. There is a fee for this service. These games are more complex and require streaming data. New games come out monthly. You can buy joysticks, navigation consoles, and even phones that plug directly into your phone.

CCD Cameras are a popular addition to many Korean and Japanese phone models. They can be mounted on either the outside or the hinge of the clamshell. The camera lens, which is slightly smaller than the dime, takes 4’215’4 cm pictures to be displayed on the phone’s display or sent to others. The phone can not only capture pictures but can also capture video clips. Due to limitations in memory, most phones can only record 5-15 seconds. However, they can also send streaming video. Advertisements for camera phones often show people interacting with each other by looking at each other on the screen. They are holding their phones and cameras at arm’s length, using an earpiece and microphone to communicate and also hold the phone. There are two accessories for the camera: an external flash, which plugs into an adapter port, and a miniature printer which prints photos.

Our company will attempt to profit from these developments and service its customers in all these emerging trends and developments.

Competition

[Note that this information is presented here only for illustration. This information is out of date. Not reusable. ]

Three large corporations dominate today’s U.S. markets:

TMobile Wireless &#8211] Owned by Deutsche Telekom subsidiary since May 31, 2001.

• Revenues in 2001: Exceeding $13.6 million

Cingular Wireless has the second largest U.S. wireless company. It is a leader in mobile voice communications and data communications and is determined to bring the individual to a higher level.

• Ownership: Cingular Wireless, a joint venture of the domestic wireless divisions SBC (NYSE.SBC) and BellSouth(NYSE: BLS), is owned by Cingular Wireless. Atlanta, Georgia, is headquarters. Based on the contributions of both the assets and the equity, SBC controls 60% of the company and BellSouth 40%.
• In 2002, the revenue from cellular services was over $14.7 billion.
• More than 22 million subscribers to cellular phone service in the U.S.A.
• Cellular Phone Service and Technology. Cingular has the only U.S. wireless company to offer Rollover. Customers can keep their unused minutes. Cingular provides cellular/PCS service in 43 of the top 50 markets nationwide, and provides corporate e-mail and other advanced data services through its GPRS and Mobitex packet data networks

Nextel Communications based in Reston VA is a major provider of fully integrated, wireless communication services over the largest, guaranteed, all-digital wireless network in the nation.

• Ownership: Nextel Wireless trades on the NASDAQ National Market as NXTL. Nextel Partners (a separate company) is traded on NASDAQ National Market.
• Revenue from the cellular service $8.7 Billion (2002)
• Cellular Phone Service Subscribers 10.61 MILLION (Q4 2002).
• Nextel uses a packet-based platform called the integrated Digital Enhanced Network(tm), which was developed by Motorola. The Nextel 4-in-1 service–Nextel Digital Cellular, Direct ConnectSM, Nextel Mobile Messaging, and Nextel Online(r)–covers thousands of communities across the United States. Nextel and Nextel Partners, Inc. currently service 197 of the 200 largest U.S. markets.

Garbles Cellular Phones is aiming to gather a share of the market from these three.

Why Us

With our vast experience in EAIA, the store will be in a perfect spot to start operations in the U.S.A. and will begin operating shortly. Garbles Cellular Phones provides its customers the best in customer service and convenience.

Expectations

Forecast

We will be working to eliminate any kinks in the start-up and get it off the ground in year 1. We will make a modest profit in year 2. In the third, we will be in a position to hire more admin assistants and store attendants.

Financial Highlights for the Year

You will need financing

To start the company, we will receive $96,000. To cover the start-up costs, Mr. Seramed Garbles is investing $43,000 in Garbles Cellular Phones, Inc. He will also invest an additional $53,000 if the operation succeeds.