This paper outlines the process of establishing a computer hardware and software business in the United Kingdom. It begins with evaluating the business idea and conducting market research, then moves through writing a business plan, naming and registering the company, and developing a marketing strategy. The paper also provides a detailed examination of the operational network infrastructure required — covering wiring types, network interface cards, hubs, switches, routers, cable modems, DSL, LAN, WAN, and virtual private networks — and concludes with guidance on IP address management and selecting an internet service provider.
Proper planning, assessment, and measurement of a proposed idea play the most important role in any new venture. Steve Jobs, Michael Dell, and Bill Gates are renowned names for their ideas in the computer industry. In fact, there is no mystery behind any successful business; one simply needs the right procedures and decisions to follow.
Preparing a business model is the first step toward the path of a successful business. Before developing a model, however, one must estimate whether the idea has the potential to return enough value to the business, sponsors, stakeholders, and customers. For this purpose, thorough research of the target market is essential.
This paper is based on building a computer company that would supply desktops, PCs, software, and hardware parts to customers. It first requires identification of the target market and an assessment of whether an opportunity exists for this business. A model must then be developed and the business structured accordingly — specifically, how hardware and software products will be delivered to customers in an efficient and cost-effective manner.
In order to start a computer business, one must first assess whether there are sufficient abilities, skills, product knowledge, and market expertise to run such an operation. Researching other business models to apply to one's own operations is also advisable. Franchise arrangements, retail shops, and personal websites are among the available options.
The second step is to conduct market research and decide what core business strategy can best position the new computer business in the market. For example, economic indicators available at the census.gov website show that more than 75% of U.S. households own at least one computer. Similar statistics can be found for any selected target market. Considering different age group demands is valuable — for instance, between 2000 and 2008 the need for computers among the 55–65 age group increased by 33.3% in the U.S., representing a significant opportunity for a computer business.
The business being planned is a computer hardware and software company operating in the UK market. It would deliver computers, PCs, desktops, hardware parts, and software to individuals and institutions, and would also provide repair services to customers.
Customers consistently seek affordable services that can be accessed at their doorstep. This business focuses on precisely that aspect of customer need. Customers will be able to place orders through a website and have products delivered to their homes. In the case of repair services, they will be able to seek online help or receive assistance at their location.
Once the idea, target market, and business model are confirmed, it is time to write a formal business plan. A business plan describes the business, its services and products, operational plans, financial plan, resources, budget, and stakeholder information. It is a document of high importance since it illustrates the chances of business success. Sponsors and stakeholders decide to invest after reviewing the business plan, so it must highlight strengths, treat risks as manageable, and emphasize core competencies — showing how the business will differentiate itself and generate profits.
At this stage, the business must also be named and registered. The name chosen for this business is Technology Services.
Although competition in the UK computer and technology market is tough and positioning a new business is challenging, significant opportunity still exists for computer hardware, software, and services businesses. The UK accounts for 4% of global demand in computer hardware and peripherals. Numerous manufacturers from the U.S., China, and South East Asia sell their products in the UK market, yet there remains high scope for a new computer business. Government programs such as the national IT project for the National Health Service create further opportunities. Currently, there is high demand for tablets, notebooks, and other computer accessories in the UK. The demand for portable PCs has increased by 7.1%, while desktop sales have declined by 5.6%. The business will therefore emphasize the latest trends: portable PCs, tablets, and notebooks (Global Trade, 2012).
Various options are available for setting up the business and obtaining financial help. Business.gov assists in establishing a legal structure — for example, a sole proprietorship, partnership, or Limited Liability Corporation. Once the business name is registered, a tax identification number must be obtained in order to pay local, federal, and state taxes. Initially the business requires a large investment, but once established the ongoing maintenance costs will not be prohibitively high.
"Online operations and business network fundamentals"
"NICs, hubs, switches, routers, and wiring types"
"Cable modems, DSL, LAN, WAN, and VPN options"
"IP management and choosing an ISP"
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