Ubi Business Plan
Table of Contents P1
Table of Contents
P4-5 Product P6-7 Marketing & Sales P8-9 Management & Organizational Structure P10-11 Investing P12
Ubi Business Plan
Ubi solves the problem millions of Americans deal with every day, but in a unique way. Ubi, short for Ubiquitous, is a full service boutique-styled smart phone repair service. We plan on serving a large demographic that is currently being mis-served by current companies in the smartphone repair industry. Ubi serves the upper middle class businessman or woman who does not have hours to waste and cannot be without their smartphone for days at a time. Ubi does this by sending a Tech (smartphone repair employee) to your current location; whether it be an office, coffee shop, or residence, a Tech will come to your rescue. An Ubi Tech is dressed well and always on time, and will fix you phone as well as clean it, free of charge, in under thirty minutes. Ubi does this by charging a one time flat fee of $200, less than Apple, more than smaller repair storefronts. Â
By using our website or iPhone app, all you do is plan a time 1-day in advance, and have a Tech show up within a 15 minute window to fix your device, then be on their way, all at the location of your leisure. This service is like nothing else currently on the market and we plan to blow away our customers and along with a large advertising campaign of $144,00 Y1, 20% of budget, create an extremely well known product. There are currently more than 18,000 Chicagoans in possession of an iPhone with a cracked screen who make more than $100,000 in household income. Knowing this, we plan on breaking into this demographic with ease and count on repairing nearly 4,000 screens by Y1, and over 11,000 by Y2, netting nearly $800,000. 2
Ubi Business Plan
mission Ubi strives to fix your device at your leisure and at a location determined by you as quickly as possible. goals Ubi plans to partner with Uber to get free/low cost transportation for all of the Techs that work for us. In exchange we will offer to repair UberX driverâ€™s iPhones at cost ($90.98, or heavily discounted) and their employees and partners get a 25% discount. business philosophy The process needs to require minimal effort from the clientâ€™s side. They select the time as well as the location of the repair, the device is fixed on the spot in under 30 minutes and handed back to them. They are billed automatically so no cash needs to trade hands. industry overview This is a huge industry, as the Smartphone market continues to grow, this market grows as well. People drop their phones and laptops every single day, so this is a prime market to be a part of. strengths The most major decider for the success of Ubi is determined by how it is marketed and how the first few initial repair jobs go. This is because it needs to be made extremely easy for our consumers to sign up and plan a time for a Tech to come to service their iDevice. Just as important as how the interaction goes, Ubi needs to be seen as easy, quick, proffesional, above expectations, and well worth the $200. If these all go well, the company will be sought after by our demographic. ownership We want to be able to easily divide P&L amongst shareholders and give out equity to employees that want to buy into the company. This is because if they have some skin in the game they will likely work harder because the company being successful is in their best interest and can generate additional revenue for them. 3
Ubi Business Plan
product description Ubi will focus on Smartphone Repair for the first few years of it’s growth. This business will have two main focuses, recruiting Techs (repairmen) and gaining Clients. Techs will pay 500 dollars to take lessons and get a kit that will give them all of the necessary tools to fix the products we service. Anyone can sign up to be a tech after a background check, and then am in-person interview followed by their payment for the lessons and the kit (we make a small profit on selling kits as well). Tech’s are independent contractors and are not full time employees, they are paid 40 dollars for every phone they fix. Repair: For $200 for an iPhone 5/s/c Screen and LCD repair and a Deep Cleaning (included free of charge on all repairs). This process takes no longer than 30 minutes from start to finish. Training: For $500 we will train and equip you with the tools and knowledge needed to fix a screen from start to finish. In addition you gain access to our customer base and are able to get jobs assigned to you during the time you list yourself as available for repairs.
competitive advantage Our main advantage is that we are a boutique-styled iPhone Repair company that offers an extremely high level of service that leaves our busy customers with very little effort needed. They simply set up a time and location (this can be their office, home, co-working space, or local coffee shop). Ease of mind and simplicity is what our customers pay for, we also deep clean their phones to make them look as good as new, because if someone has cracked their screen they have most likely not taken really good care of it. Our disadvantage is price, although we beat Apple’s (main market share) price, we don’t beat cheaper
Ubi Business Plan pricing & fees There is no overhead cost as we don’t have a central location that everyone comes to. Because of this, overhead costs are reduced an extreme amount. We also profit when buying tools for new Techs because we charge them $500 to be able to work for us, but spend roughly $200 (source in This document). Screens for the iPhone 5/s/c cost $52.18, more info in that same document. product benefits This will allow busy (mostly wealthy) to not have to leave the office and take the effort to set up an appointment and go somewhere, and wait for a few hours (or days!) to get a new phone. Our clients don’t have enough time in the day so the more time we can give them back the happier they will be. By coming to them and doing the repair there it allows them the ability to go back to work while we repair their phone and once we give them their fixed phone they can continue with their day. main features My most popular product/service will be selling screen repairs for the iPhone 5/s/c. These is currently the most popular iPhones and hold the biggest share of the iPhone market. We will be repairing the screens for $200, which will also include a deep cleaning of the phone. What’s special about this service is that we come to you to repair it, and do it in 15 minutes so that your day is nearly uninterrupted. after sale service We offer a two year %20 off deal with any past customers for their current or future iPhones.
Ubi Business Plan
Marketing & Sales
who Nearly everyone has a Smartphone (57% of Chicagoans), and tons of people have broken iPhones. This is a more boutique/pricey service and will appeal to the middle/upper class busy person who works all day and doesn’t have time to stop into the apple store and not have their for a couple days. This service is extremely fast, simple, and easy. This is what people are willing to pay extra for. our client The Ubi Client works in Downtown Chicago and has an extremely busy schedule. He/She does not have hours in the day to leave the office to go get their phone fixed. He/She also cannot be without their phone for days while it is being fixed. 18,092 Chicagoans currently own an iPhone with a cracked screen and make more than $100,000 household income. current demand 11% [7.36 Million] of all iPhone users have a cracked screen market trends iPhone ownership has gone up .7% from Jun-13 to Sep-13, currently 66.99 million people own iPhones in the United States, 628,082 people in Chicago. growth potential The potential for expansion is massive. Ubi is in a huge market that can be broken into any city across the globe. The most important thing is brand identity and making people aware of Ubi and what we do. overcoming barriers Ubi’s barriers revolve around the amount of startup capital that is necessary to launch. A large percent of the initial capital will be invested into a marketing campaign. Other startup costs such as employees and parts are a much more minor percentage. Hiring Techs will be sufficiently easy once we’ve created brand awareness, we pay extremely well so finding the best people for the job will not be a problem. It’s going 6
Ubi Business Plan to be near impossible to try and advertise against huge companies like Apple that own the major market share of the iPhone repair industry. industry safety My industry is rock solid, and thereâ€™s a few reasons why. Firstly, the reason my company exists is because people arenâ€™t perfect, and they drop their phones and break them. Second, the phone companies wonâ€™t make stronger glass for phones because they make a lot of money from repairing them as well.
Ubi Business Plan
Management & Organizational Structure
Employee #1 Responsibilities This employeeâ€™s responsibilities cover five main facets, those being Digital Marketing, Affiliate Marketing, Graphic Design, Social Media, and Customer Service. On a day to day basis, this employee will be in control and oversee daily operations on Social Media as well as handle questions and concerns that come to our Customer Service phone number and email box. A strong background in marketing and graphic design will also be necessary as this employee will be tasked with creating new company graphics and new company marketing material. Finally this employee will be tasked with overseeing and working with the Full Service Digital Marketing company that 8
Ubi Business Plan we hire (DataXu) to make sure we are meeting our daily goals. They will also deal with our affiliates and make sure all affiliate programs are running smoothly and everyone i payed out on a regular basis. This employee will also have the ability to buy into the company and gain equity, this will create more care for the employee as they have skin in the game as well. Employee #2 Responsibilities This employee’s responsibility cover a single, yet extremely important section of our company, Accounting. This employee will work part time and will work on keeping updated information of how our company is doing on a Daily, Weekly, and Monthly basis and will also create monthly forecasts. Ubi will be ran very analytically to make sure we are meeting our goals, and if we aren’t we can create a strategy to reach them. Employee #3 Responsibilities This employee’s responsibilities will cover the sales portion of our company. They will be tasked with generating sales and looking to sign retainers with large companies such as Blue Cross Blue Shield that give out Smartphones to all employees. They will get a base salary plus a %15 commission on all retainers.
Ubi Business Plan
Accounting & Investment PICTURE GOES HERE!
Repair Price Breakdown In order to service on iPhone, we spend roughly $110. This is broken down into three direct expenses: Payroll ($45), Consumables ($45.98), Marketing ($19.02). Payroll consists of paying the Tech to fix the device, this amount is credited into their account and a check is sent bi-weekly. Consumables consist of White iPhone 5 LCD w/Digitizer and Frames, and are bought on a monthly basis based on our projections for the following month. Marketing is averaged at $19.02 per unit, and consists of %15.47 of our yearly expenses (Projected $538,000.00 for Year 1). Training Price Breakdown Training costs us roughly $370, this is based on the assumption that it is done one-on-one, which may change and drastically reduce the price in the future (Payroll consists of %27 of total budget). Costs are broken down into two direct expenses: Payroll ($100), and Consumables ($270). Payroll consists of four hours of one-on-one training billed at $25 per hour. Consumables consist of five different items that will be given to the Techs: Full Toolkit ($70), Refurbish Toolkit ($100), Expansion Toolkit ($70), iSclack ($25), and a (de)Magnetizer ($5). Training will happen regularly throughout the week at our location. Year 1 Projections For year one we plan to repair a total of 3,750 iPhones and train 210 Techs in the Chicagoland area. This equals a total projected income of $750,000.00 for Year 1. We find this goal extremely reachable because of the lack of competitors and massive amount of investment into a Marketing campaign we plan on investing in. We have a very specific demographic interested in our product (Refer to Page 6, our client for more details) already and plan to easily convert with them. In addition, the growth potential for our Market is enormous as we are focused on only one city and one smartphone company, by Year 3 we plan to expand immensely. Numbers 3,750 total Repaired iPhones 210 trained Techs $750,00 in sales from Repairs $90,000 in sales from Training 10
Ubi Business Plan $493,950 in direct expenses on Repairs & Training Cumulatively $116,025 spent on Marketing $211,950.00 Total Net Income Year 3 Projections For year three we plan to repair a total of 10,950 Smartphones across three major cities (CHI, NYC, LA) and three major cell companies (Apple, Windows, Android). We plan to train a total of 720 Techs, 360 in NYC and LA respectively. Numbers 18,250 total Repaired Smartphones 720 trained Techs $3,650,000 sales from Repairs $360,000 sales from Training $2,292,150 in direct expenses on Repairs & Training Cumulatively $564,655 spent on Marketing $1,313,750 Total Net Income Year 5 Projections For year give we plan to expand Nationally to major cities across the entire United States. We plan to repair 25,550 Smartphones and train 1,080 Techs. We will still service the three major cell companies (Apple, Windows, Android) but will start to begin planning for launching a Laptop Repair which will start by fixing Macbooks. Numbers 25,550 total Repaired Smartphones 1,080 trained Techs $5,110,000 sales from Repairs $540,000 sales from Training $3,235,650 in direct expenses on Repairs & Training Cumulatively $790,517 spent on Marketing $1,830,250 Total Net Income Initial Seed Investment For our first round of investing we are looking for $250,000 in startup capital to cover initial expenses on: Equipment and Consumables, Rent & Insurance, Payroll, and a Marketing Campaign. We are looking to either give %15 equity, or give $312,500 by Y3, a %25 ROI in three years. more details here
Ubi Business Plan
Bibliography Ubi Reference Documents: Unedited Business Plan, Sales Forecast (explanation), Product Expenses, Tools and Resources Bibliography "Americans Have Spent $5.9 Billion on Damaged IPhones (SquareTrade Warranty Blog )." 'SquareTrade Warranty Blog ' N.p., n.d. Web. 21 May 2014. <http://blog.squaretrade.com/2012/09/americanshavespent59billionondamagedipho nes.html>. Blodget, Henry. "Actually, The US Smartphone Revolution Has Entered The Late Innings." Business Insider. Business Insider, Inc, 13 Sept. 2012. Web. 22 May 2014. <http://www.businessinsider.com/ussmartphonemarket20129#!Hqp46>. Blodget, Henry. "Actually, The US Smartphone Revolution Has Entered The Late Innings." Business Insider. Business Insider, Inc, 13 Sept. 2012. Web. 22 May 2014. <http://www.businessinsider.com/ussmartphonemarket20129#!Hqp46>. "Choosing a Business Structure LLC vs. CCorp Vs. SCorp Blog McStartup Tasty Advice for Startup Companies." Choosing a Business Structure LLC vs. CCorp Vs. SCorp Blog McStartup Tasty Advice for Startup Companies. N.p., n.d. Web. 22 May 2014. <http://www.mcstartup.com/blog/2008/3/7/choosingabusinessstructurellcvsccorpv sscorp.html>. "ComScore Reports September 2013 U.S. Smartphone Subscriber Market Share." ComScore, Inc. N.p., n.d. Web. 22 May 2014. <https://www.comscore.com/Insights/Press_Releases/2013/11/comScore_Reports_Se ptember_2013_U.S._Smartphone_Subscriber_Market_Share>. "How IPhone and Android Ownership Varies by Demographic." MarketingProfs. N.p., n.d. Web. 22 May 2014. <http://www.marketingprofs.com/charts/2013/10957/howiphoneandandroidownership variesbydemographic>. "IPhone Repair Stats." Whats the Most Common Apple IPhone Fault? N.p., n.d. Web. 22 May 2014. <http://www.buzzbox.co.uk/Stats/Apple>. 12
Ubi Business Plan "LLC vs. S Corp: Which Is Right for Your Startup?" Mashable. N.p., n.d. Web. 22 May 2014. <http://mashable.com/2012/02/17/smallbusinessincporporation/>. "Quarter of IPhones Have a Broken Screen, Says New Poll CNET." CNET. N.p., n.d. Web. 22 May 2014. <http://www.cnet.com/news/quarterofiphoneshaveabrokenscreensaysnewpoll/>. "What City Has the Highest Smartphone Adoption Rate? Not NYC or SF AGBeat." AGBeat. N.p., n.d. Web. 22 May 2014. <http://agbeat.com/technews/cityhighestsmartphoneadoptionratenycsf/>.