Opportunity

Important note

[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

Everyone has a cell telephone these days. They are commonplace. They are needed for work and for socializing. Because they are expected, many people believe that someone without one is untrustworthy or wrong. It is true that those who don’t have one cannot afford them.

Solution

Garbles Cellular’s mission is to offer its customers the highest quality cell phone products and services. Its owner, Garbles Cellular, is focused on providing quick and personalized service to its customers. Garbles Cellular is equipped with the technology expertise to help customers select the product and service that suits their needs best. Our staff will have strong vendor relationships and be able meet the demands of customers for the most recent innovation in cell phone 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 currently ranks among the most dynamic growth industries and is responsible to huge gains in capital markets. The number of cellular phones growing rapidly is a phenomenon that was previously unimaginable. One example is the prediction that by 2020, more than 65% will have cell phones.

These are the areas where future growth is expected for the market/products:

Text messages between friends are a great way to communicate (in Japan, this is very common). Users can send SMS (short-message service) and email to their friends via their phones. Although email is limited to small files, many phones allow English characters to be sent. You can also send specific characters to each provider, such as happy or sad faces, small animated pictures, animals, people and hearts. To express emotions, people use a set of faces that are specialized for special characters. 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. You can send email from computers too, but files are often stripped off headers and attachments after they have been received on cell phones.

Most North American phones come with a few games to keep people entertained for a limited duration. There are two types of games available for Japanese phones: Java applications and built-in. While the built-in options are easy to use, graphics are vital for the game’s quality. 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. New games come out monthly. You can even purchase joysticks to plug into your mobile phone.

CCD Cameras are becoming increasingly popular on many Korean and Japanese smartphones. The camera can be mounted on the hinge or outside of the shell. The camera lens is slightly smaller that a dime. It can display 4&#215&#8217 mm pictures on the phone’s screen, or send them to others. Users can not only take photos but also record video clips. Most phones take between 5-15 seconds of footage due to memory limitations, but they can 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 strive to benefit from these developments in order to serve its customers in all the new trends.

Competition

[Note: This information is provided for illustration purposes only. This information is very out-of-date. Not reusable. ]

The U.S. market is dominated today by three large companies:

TMobile Wireless has been owned by a subsidiary Deutsche Telekom since May 31,2001.

• Revenues exceeded $13.6 billion for 2001

Cingular Wireless, the second-largest wireless company in America, is determined to take the individual to new heights.

• Ownership: Cingular Wireless is a joint venture between the domestic wireless divisions of SBC (NYSE:SBC) and BellSouth (NYSE: BLS). Atlanta, Georgia. Based on the contributions of both the assets and the equity, SBC controls 60% of the company and BellSouth 40%.
• The revenue for cellular service was $14.7 billion in 2002.
• Cellular Phone Service Subscribers: More than 22 Million 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 with its headquarters in Reston VA, is a top provider of fully integrated wireless communications services using the largest all-digital, guaranteed wireless network in America.

• Ownership: Nextel Wireless traded on NASDAQ National Market under NXTL. Nextel Partners trades separately on the NASDAQ National Market.
• Revenue on the cell service $8.7 million (2002).
• Cellular Phone Service Subscribers: 10.61 Million (Q4 2002).
• Nextel uses a technology-based packet platform, the integrated Digital Enhanced Network (« iDEN(tm),), which Motorola developed. Nextel 4 in 1 service-Nextel Digital Cellular and Direct ConnectSM, Nextel Mobile Messaging and Nextel Online(r),–covers thousands across the United States. Nextel and Nextel Partners, Inc. currently serves 197 of 200 top U.S. cities.

Garbles Cellular Phones seeks to gain a share from these three companies.

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 plan to work out any kinks and get things moving in year 1. In year 2, there will be a small profit. In the third, we will be in a position to hire more admin assistants and store attendants.

Financial Highlights Year-by-Year

Finance is required

We will get $96,000 to begin our business. Mr. Seramed Garbles invests $43,000 to Garbles Cellular Phones, Inc., in order cover start-up cost. He will also invest an additional $53,000 if the operation succeeds.