ubi business plan
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ÂTRANSCRIPT
Ubi Business Plan
Table of Contents
P1 Table of Contents
P2 Executive Summary
P3 Company Overview
P4-5 Product
P6-7 Marketing & Sales
P8-9 Management & Organizational Structure
P10-11 Investing
P12 Bibliography
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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.
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.
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Ubi Business Plan
Company Overview
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 driver’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 client’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.
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Ubi Business Plan
Product
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
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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.
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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
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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 there’s a few reasons why. Firstly, the reason
my company exists is because people aren’t perfect, and they drop their phones and break
them. Second, the phone companies won’t make stronger glass for phones because they
make a lot of money from repairing them as well.
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Ubi Business Plan
Management & Organizational
Structure
Employee #1 Responsibilities This employee’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
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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.
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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
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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
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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/americanshavespent59billionondamagediphones.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/choosingabusinessstructurellcvsccorpvsscorp.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_September_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/howiphoneandandroidownershipvariesbydemographic>. "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>.
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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/>.
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