House of Projectors (HOP) is an Ohio based Limited Liability Corporation (L.L.C.) start-up business that provides Liquid Crystal Display (LCD) computer projectors for rent. The company has been formed and will be run by John Laaklytte, a veteran of the computer rental industry. HOP has identified three distinct market segments that they will target. The first segment is entrepreneurs. Entrepreneurs are often in need of projectors when they are making presentations to angel and venture capital investors. These days a projector is a standard for professional presentations, generally PowerPoint based presentations. This customer segment has a 9% growth rate with 33,243 potential customers. The second segment is small size companies which can be defined as companies with less than 15 employees. These companies have the need for a projector, but do not use it frequently enough to justify the high capital expense. The group has a 7% growth rate with 5,423 potential customers. The last group is medium size companies with 15-50 employees who share similar motivation for projector rentals. This group has a 6% growth rate and 3,433 possible customers.
The computer based office equipment rental industry is a $745 million industry. Most players in the industry rent a wide variety of equipment, not specializing on a specific type of equipment. While this creates a larger customer base for them, it reduces their ability to offer a high level of service for every type of technology because of the unique technical nature of all of the different hardware types. Because the industry is organized primarily as comprehensive service providers, House of Projectors will be able to excel within their niche of just offering projector rentals. They will be able to obtain and provide a level of service (both customer and technical) that is difficult and conceivably impossible to provide by the comprehensive service providers. This is House of Projectors' niche competitive edge - industry benchmarked customer service. House of Projectors believes it can achieve and maintain this competitive edge for two reasons:
- The concentration on projectors allows HOP to excel in their chosen niche.
- Organization wide expectations, actually requirements, that HOP's business model for all employees will provide this ambitious level of customer support.
John Laaklytte will be leading House of Projectors through their early stages of market penetration. John received a Bachelor of Science, Business major from Case Western Reserve University. While in school, John received practical experience as an Assistance Manager of a local CompUSA retail store. This was where John began to build his business skill set that will ultimately be used in the growth of his own business. John also worked at the University in the position of computer lab manager. Lastly, John worked for (name omitted), a large, national computer rental company. At this corporation, John quickly ascended to the Regional Manager position.
John will leverage his knowledge and experience to take House of Projectors from a start-up business to an established player in the computer office hardware industry. By executing a well thought out business plan and proven business model, John will generate exemplary revenues in year two, increasing in year three. HOP will achieve profitability by the end of year two.
- To become the premier source for rentals of LCD computer projectors.
- To develop a significant base of long-term customers.
- To reach profitability by the end of year two.
1.2 Keys to Success
- Design and employ strict financial controls. This will be pursued as a means to analyze all aspects of the business.
- Treat every customer as the most important customer HOP has.
- Constantly evaluate the market and the needs of the customers, never taking presuming that HOP always knows what the customer wants. An interactive feedback mechanism will be just one method used to gain insight into the customers' preferences.
It is House of Projectors' mission to become the premier source of computer projectors for the Cleveland business community. By offering fair prices and ground breaking service, House of Projectors will quickly establish the reputation as the finest store in its niche.