Opportunity
Important advisory
[This sample business plan is based on one from several years ago, valid then, and still useful as an illustration of what a business plan contains and what issues it covers. This sample business plan is no longer valid for information. ]
Problem
In the world today everyone has a cell phone. The expectation is that cell phones will be everywhere. They are needed for work and for socializing. People expect them to be there. In reality, most people can’t afford one.
Solution
Garbles Cellular’s mission is to provide the best cell phone products and services for its customers. Its owner focuses on personalized service to his customers by offering convenience and rapid service. Garbles Cellular offers the technological expertise necessary to assist customers in selecting the right product and service. Our staff will also have strong relationships with product suppliers, allowing them to respond to customers’ demands for the latest innovation in cellular telephone technology.
Market
The market potential is huge for our products, evidenced by what appears to be the unstoppable growth of the telecom industry. The telecom industry is currently among the fastest-growing industries and is responsible in large part for the capital markets’ huge gains. The growth of cell phones is at an unprecedented rate. One example is that over 65% of the children between the ages 10 and 15 will have cell phone access within the next two years.
These areas will see the future growth of the market/products.
Text messages between friends (in Japan this big). Regular Short-Message Service (SMS), or email can be sent from phones. Although email is limited to small files, many phones allow 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. People often use a special set of faces to express emotion when they aren’t able to send the special characters. Email can also be sent between different provider phones, but many of the special characters are lost, hence users may try to keep a circle of friends on the same provider to receive the special characters. While email can also be sent via computers, many files are stripped of attachments and headers when they arrive on mobile phones.
Many North American smartphones come with a handful of games to keep people entertained, but only for a short period. Japanese phones include two types: Java application games and built-in games. The built-in games are quite simple, but the graphics play a major role in the game’s enjoyment. Java application games are delivered via the network to the customer’s phone and there is a charge for this service. These games require streaming data and are more complicated. Monthly new games are published. Joysticks and navigation consoles can be purchased that plug into your smartphone.
CCD Cameras have become a very popular feature on many Korean and Japanese phones. These cameras can be mounted on the clamshell hinge or on the outside of clamshells. The camera lens is slightly smaller than a dime and takes 4×4 cm pictures to display on the phone’s screen or to send to others. You can also take videos. Most smartphones can record video for between 5-15 seconds due to limitations on memory. However, you can also send streaming video. Many advertisements for camera phones feature people watching eachother on the screen while holding the phone and camera arm-in-arm and using an earpiece, microphone and hands-free microphone. A couple of accessories are also available for the camera, such as an external flash which can be plugged into an accessory port, and a miniature printer that can print pictures.
Our company will try to take advantage of these developments and serve its customers in all these new trends and developments.
Competition
[Note: This information is provided for illustration purposes only. This information has been seriously outdated. Not reusable. ]
Three large companies dominate the U.S. market today:
TMobile Wireless is a subsidiary owned by Deutsche Telekom since May 31, 2001.
- Revenues: More than $13.6 billion in 2001
Cingular Wireless, the second-largest wireless company in America, is determined to take the individual to new heights.
- 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 the headquarters. SBC owns 60 percent of the company and BellSouth owns 40 percent, based on the value of the assets both contributed to the venture.
- Revenue on the cellular service in Year 2002 was more than $14.7 billion.
- Cellular phone service subscribers: More than 22,000,000 voice and data customers 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 leading provider of fully integrated, wireless communications services on the largest guaranteed, all-digital, wireless network in the country.
- Ownership: Nextel Wireless trades on the NASDAQ National Market as NXTL. Nextel Partners (a separate company) is traded on NASDAQ National Market.
- Revenues on the cellular network $8.7B (2002)
- Cellular Phone Service Subscribers: 10.61 Million (Q4 2002).
- Cellular Phone Service and Technology: Nextel uses a packet-based platform, the integrated Digital Enhanced Network (iDEN(tm)) technology, developed by Motorola. Nextel Online(r), Nextel Digital Cellular (Direct ConnectSM), Nextel Mobile Messaging (Nextel Digital Cellular), and Nextel Digital Cellular ™–covers many communities across the United States. Nextel and Nextel Partners, Inc. currently serves 197 of 200 top U.S. cities.
Garbles Cellular Phones aims to capture a portion of the market from all three.
Why Us
Our extensive and long-standing experience in EAIA will allow us to locate our store in the best location for our U.S.A. operations. This will enable us to open the shop in the appropriate time. Garbles Cellular Phones will provide its customers support and convenience second to none.
Expectations
Forecast
We plan to work out any kinks and get things moving in year 1. In year 2, we will be able to make a small profit. We will be able hire more store attendants, and administrative assistants by the third year.
Financial Highlights Year-by-Year
Financing Needed
We will be getting $96,000 to start up . Mr. Seramed Garbles invests $43,000 to Garbles Cellular Phones, Inc., in order cover start-up cost. In addition, he will make an additional $53,000 once the operation begins to take off