Are you about starting a data recovery company? If YES, here is a complete sample data recovery business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a data recovery business. We also took it further by analyzing and drafting a sample data recovery business marketing plan template backed up by actionable guerrilla marketing ideas for data recovery businesses. So let’s proceed to the business planning section.
Why Start a Data Recovery Business?
If you are ICT inclined and have the startup capital, then you may begin to work toward starting a business in the ICT industry. One of your best bet would be to start a data recovery company. There is indeed a huge global market for the services rendered by data recovery companies especially in this age and time where data means everything in business and governance.
All you need to do to attract clients and maximize profits as a newbie in this industry is to ensure that your business is well – publicized, you are highly professional and your fees are affordable. To achieve all that is stated above, you should be ready to work hard and smart, hire dedicated and competent employees and above all, have a reliable server and pretty fast internet connection.
If you are truly serious about starting your own data recovery company, then the best place to start is to draft a good business plan.
The truth is that the aim of writing a business plan is not just to have a business document in place, but to have a detail guide on how to effectively set up, run and manage your business. The sample data recovery company business plan template below will guide you on how to draft yours with little or no stress.
A Sample Data Recovery Business Plan Template
- Industry Overview
Data recovery companies fall under the Data Recovery industry and this industry is made up of establishments that offer hardware and software related data recovery. Please note that some data recovery companies may also offer services ranging from automated data entry to data processing.
The Data Recovery industry in the United States salvages computer files from damaged, failed, corrupted or inaccessible storage media. Even though the increasing number of households with at least one computer and the rising popularity of electronic devices were expected to provide ample demand for industry services, options for data recovery and data loss prevention have expanded and demand for industry services has declined.
A recent report published by IBISWorld shows that as a result of an immense marketing push by some of its largest companies to popularize Data Recovery, the industry has experienced steady growth over the past five years. The report also stated that over the five years to 2018, industry revenue is estimated to fall at an annualized rate of 10.9 percent to $10.9 million, with an expected decline of 9.9 percent in 2018 alone. Cloud computing, or online data storage, represents the latest threat to the industry.
If you are a close watcher of happenings in the Data Recovery Services industry, you will notice that the industry has declined by -10.9 percent to reach revenue of $11m in 2018. In the same timeframe, the number of businesses has declined by -3.1 percent and the number of employees has declined by -7.4 percent.
The advent and popularization of cloud computing, one of the industry’s fastest-growing product offerings, has similarly led to greater demand. Over the next five years, industry revenue is expected to grow. As the technology required to process and host data becomes more complex, the level of expertise needed to effectively manage large data centers will rise.
The Data Recovery industry is indeed a growing industry and pretty much active in the United States, China, India and most countries of the world. Statistics has it that in the United States of America alone, there are about 367 registered data recovery companies in this industry, employing about 2,266 people and the industry rakes in a whooping sum of $11 billion annually. The industry is projected to continue to grow at a -10.9 percent rate. It is important to state that there is no company with a dominant market share in the industry.
There are quite a few players in this industry despite the fact that the entry barriers for the industry are low. As a matter of fact, the required startup costs for a new organization can be as low as the cost of acquiring a computer/laptop and internet device.
Over and above, the Data Recovery Services industry is very open to any aspiring entrepreneur who has the required skills to start his or her own business. As a matter of fact, it was projected that over the next five years, new technology will continue to emerge that will make it easier for more players to come into the industry hence increasing the competition in the industry.
Data Recovery Business Plan – Executive Summary
Denis Whitley® Data Recovery Services, LLC is a registered data recovery company that will be based in Orange County – California, United States of America, but operate all over the United States. We have been able to secure a standard and well – positioned office facility in a conducive business district in Orange County, and that is where we intend coordinating all our activities from.
Denis Whitley® Data Recovery Services, LLC will offer a wide range of hardware and software related data recovery; we will help our clients retrieve computer files from damaged, failed, corrupted or inaccessible storage media. Our business goal is to become one of the leading data recovery companies in the United States and we will make sure that every data recovery job that we handle for our clients is total and can favorable compete with the best in the industry.
Our workers are going to be selected from a pool of talented and highly detailed professionals with various skills as it relates to the services we offer in and around Orange County – California. We will make sure that we take all our workers through the required trainings that will position them to meet the expectation of the company and to compete favorably with leading data recovery companies in the United States.
At Denis Whitley® Data Recovery Services, LLC, our client’s best interest comes first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Denis Whitley® Data Recovery Services, LLC is founded by Denis Whitley (a Computer Scientist) and his friend and business partner Nelson Rooney (Computer Engineer). They have a combined qualification and experience that will position them to perform excellently in the Data Recovery Industry.
- Our Services Offering
Denis Whitley® Data Recovery Services, LLC is established with the aim of maximizing profits in the industry. We want to compete favorably with leading data recovery companies in the United States, which is why we have but in place a competent quality assurance team that will ensure that all our services meet and even surpass our customers’ expectations.
We will work hard to ensure that Denis Whitley® Data Recovery Services, LLC is not just accepted in Orange County – California, but also throughout the United States of America. Our service offerings are listed below;
- Hardware related data recovery
- Software related data recovery
- Data processing computer services
Our Vision Statement
Our vision is to establish a standard data recovery company whose services will not only be accepted in Orange County – California, but also throughout the United States of America.
- Our Mission Statement
Our mission is to provide professional and highly reliable data recovery service that will assist businesses and individuals in retrieving their data when their hard – drive crashes. We want to build a data recovery company that can favorably compete with other leading brands in the industry.
- Our Business Structure
Denis Whitley® Data Recovery Services, LLC, will be launched in Orange County – California, but hopes to grow big and secure outsourced jobs from big corporations from all over the United States of America. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own. This is why we are committed to only hire the best hands within our area of operation.
At Denis Whitley® Data Recovery Services, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Operation Manager
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Data Recovery Experts (Computer Engineers)
- Client Service Executive
Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Accountable for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Ensures that the organization work in line with international best practices.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Sales and Marketing Manager
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of data recovery projects.
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policies
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Accountable for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Data Recovery Experts (Computer Engineers)
- Responsible for handling core services such as data recovery services, data processing and database management amongst others
- Responsible for developing records management processes and policies, identifying areas to increase efficiency and automation of processes, identifying, evaluate and implement external services and tools to support data validation and cleansing
- Produces and track key performance indicators
- Monitors and audits data quality
- Liaises with internal and external clients to fully understand data content
- Mine and analyze large datasets, draw valid inferences and present them successfully to management using a reporting tool.
Client Service Executive
- Welcomes clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the chief executive office in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries.
Data Recovery Business Plan – SWOT Analysis
Denis Whitley® Data Recovery Services, LLC engaged the services of a professional in the area of business consulting and structuring to assist our organization in building a well – structured data recovery services business that can favorably compete in the highly competitive industry in the United States.
Part of what the consultant did was to work with the management of our organization in conducting a SWOT analysis for Denis Whitley® Data Recovery Services, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Denis Whitley® Data Recovery Services, LLC;
The track record of our chief executive officer and of course the skills that our carefully selected team will be bringing to the table will definitely count for strength for us. We are also confident of the fact that the location of our office is a plus for our business; we are located in one of the most suitable business locations in Orange County – California.
As a new data recovery services company, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the highly competitive Data Recovery industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
Beyond doubt, the opportunities in the Data Recovery Service industry is massive considering the number of individuals and corporate organizations whose businesses depend on data and any loss of data can shut down their business. As a data recovery service company, we are ready to take advantage of any opportunity that is available in the industry.
Cloud computing, or online data storage, represents the latest threat to a business such as ours. On a consumer level, cloud computing services, such as Google’s Drive and iCloud et al are part of what we will be contending with. Some other threats that we are likely going to face as a data recovery service company operating in the United States are unfavorable government policies, and the arrival of a competitor within our location of operation.
Data Recovery Business Plan – MARKET ANALYSIS
- Market Trends
Notable trends in the data recovery industry shows that businesses have increasingly outsourced their IT infrastructure needs, directly benefiting industry operators. As a matter of fact, most companies lack the internal capability to handle their IT needs efficiently and consolidation is expected to be the dominant trend among the industry’s larger companies.
Data recovery services endure intense external competition from data recovery and backup software, online storage services such as cloud computing and technological advancements that enable potential customers to recover data without assistance. The need for data recovery service will decline as external competition continues to increase over 2018, posing a potential threat to the industry.
The level of private investment in computers and software represents the total annual expenditure by businesses on all information processing equipment and software. Businesses are a major market for data recovery services; therefore, the level of their investment in software is a valuable indicator of this industry’s performance.
Private investment in computers and software is expected to increase over 2018, representing a potential opportunity for the industry. The fact that the Data Recovery Services industry is a service-based industry makes it easy to set up.
As a matter of fact, it was projected that over the next five years, new technology will continue to emerge that will make it easier for more players to come into the Data Recovery industry hence increasing the competition in the industry.
- Our Target Market
Before starting our data recovery services company, we are certain that there is a wide range of both corporate and individual clients who cannot successfully run their businesses without outsourcing some of their data related operations to a third party service provider.
In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know can’t afford to do without our services. We have conducted our market research and survey and we will ensure that the services we offer well accepted in the market place.
Below is a list of the people and organizations that we will specifically market our services to;
- Government agencies
- Transport and Logistics Companies
- Busy businessmen and businesswomen
- Banks, Insurance Companies and other related Financial Institutions
- Blue Chips Companies
- Corporate Organizations
- Manufacturers and Distributors
- Real Estate Owners, Developers, and Contractors
- Research and Development Companies
- Entrepreneurs and Startups
Our Competitive Advantage
The competition in the Data Recovery industry is getting stiffer by the day, you have to come up with detailed services and concepts in order to survive in the industry. The Data Recovery industry is indeed very prolific and at the same time a highly competitive industry. Clients will only hire your services if they know that they can get nothing but the best from you.
We are quite aware that to be highly competitive in this industry means that you are not only expected to deliver consistent and highly detailed jobs, but you must be able to meet set targets. No one would want to continue to hire your services if don’t always meet up with the target date of completion of projects.
Our competitive advantage lies in our effective quality control system, having a cost-effective distribution system, ability to quickly adopt new technology and of course, the power of our team and management. Aside from the synergy that exists in our carefully selected workforce, our fees and services will be guided by best practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
Data Recovery Business Plan – SALES AND MARKETING STRATEGY
The Data Recovery industry is experiencing growing competitions; hence we have been able to hire some of the best marketing experts to handle our sales and marketing. Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis to meet their targets and the overall business goal of Denis Whitley® Data Recovery Services, LLC.
Our goal is to grow Denis Whitley® Data Recovery Services, LLC to become one of the top 10 data recovery companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the United States of America.
Denis Whitley® Data Recovery Services, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters / emails alongside our brochure to corporate organizations, schools and key stake holders in and around Orange County – California and throughout the United States of America.
- Promptness in bidding for data recovery contracts from the government and other cooperate organizations
- Advertise our business in relevant business and computer based magazines, newspapers, TV and radio stations
- List our business on yellow pages’ ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
Sources of Income
Denis Whitley® Data Recovery Services, LLC is established with the aim of maximizing profits in the industry and we are going to ensure that we do all it takes to meet and surpass the expectations of all our clients. Denis Whitley® Data Recovery Services, LLC will generate income by offering the following services;
- Hardware related data recovery
- Software related data recovery
- Data processing computer services
One thing is certain, there would always be businesses that make use of data that would need the services of data recovery companies.
We are well positioned to take on the available market in and around Orange County – California and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our data recovery company to enviable heights.
We have been able to examine the data recovery market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Denis Whitley® Data Recovery Services, LLC, it is based on the location of our business and of course the wide range of data recovery related services that we offer and of course our target market;
- First Fiscal Year: $160,000
- Second Fiscal Year: $230,000
- Third Fiscal Year: $470,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and arrival of a competitor offering similar data recovery services like us. Please note that the above projection might be lower and at the same time it might be higher.
- Our Pricing Strategy
At Denis Whitley® Data Recovery Services, LLC we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to startups, nonprofits, cooperatives, and small social enterprises.
- Payment Options
The payment policy adopted by Denis Whitley® Data Recovery Services, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Denis Whitley® Data Recovery Services, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
Data Recovery Business Plan – Publicity and Advertising Strategy
We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for clients in the whole of the United States, which is why we have made provisions for effective publicity and advertisement of our data recovery company.
Below are the platforms we intend to leverage on to promote and advertise Denis Whitley® Data Recovery Services, LLC;
- Place adverts on both print (newspapers and computer related magazines) and electronic media platforms
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
- Distribute our fliers and handbills in target areas
- List our data recovery services company in local directories / yellow pages
- Advertise our data recovery services company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our official vehicles are well branded with our company logo.
Data Recovery Business Plan – Financial Projections and Costing
From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive data recovery company in Orange County – California and here are the key areas where we will spend our startup capital;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Renting / leasing a small office space that will accommodate our employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $150,000.
- Equipping the office (computers, printers, projectors, markers, server / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
- The amount required to purchase the needed software applications – $3,500
- The cost of launching an official website – $500
- The total amount need to pay bills and staff members for at least 2 to 3 months – $70,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about one hundred and fifty thousand (150,000) U.S. dollars to successfully set up a medium scale but standard data recovery company in the United States of America.
Please note that you can successfully launch this type of business from any part of the world in your bedroom with just a functional laptop, internet facility and the required software applications. But if you choose to build a business with structure, a business that does not revolve around one man or woman, then you should follow the above structure.
Generating Startup Capital for Denis Whitley® Data Recovery Services, LLC
Denis Whitley® Data Recovery Services, LLC is owned by Denis Whitley and his friend and business partner Nelson Rooney. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $50,000 (Personal savings $35,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and document have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
DATA RECOVERY BUSINESS GROWTH: Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Denis Whitley® Data Recovery Services, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to consistently offer reliable, excellent and error – free data recovery services at a very competitive price than what is obtainable in the industry.
Denis Whitley® Data Recovery Services, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce (freelance workers and back office staff members inclusive) is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a small but standard office facility: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Secure trademark for our products: In Progress
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed computers, internet server, furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in various industries: In Progress