Last week we conducted a staff meeting. The purpose of this meeting was to examine the factors that cause pizza businesses to fail. We did determine that 80% of our advertisement is distributed through the local newspaper. We soon discovered that potential customers would rather log on to the Internet to obtain stock quotes, shop, and read the local and world news. There has been a recent decline of sales in the Rocky Mountain News and Denver Post since they decided to merge.
Pic-A-Pizza will need two Pentium IV computers to handle the new database and a mailing software to increase capacity for future customers that move into the neighborhood. Microsoft SQL Server 7.0 will employ the new database software. The total system cost will be $9500.00.
|
EQUIPMENT |
QUANTITY |
COST |
TOTAL |
|
Micron P6-XL Computer System |
2 |
$3,500.00 |
$7,000.00 |
|
SQL SERVER 7.0 |
1 |
$1,500.00 |
$1,500.00 |
|
TRAINING |
1 |
$1,000.00 |
$1,000.00 |
|
SUB TOTAL |
|
|
$9,500.00 |
Although the cost funding is expensive, there is a much bigger return on investment that just the bottom line. As a co-founder of Pic-A-Pizza, it is my job to put together business plans and recommend computer upgrades and installations.
Many small businesses use computer databases to keep track of inventory, employee data, manufacturers and a current mailing list. Since we have an outdated accounting system, (cash register) which currently does not have the capacity to handle anything besides adding and subtracting. Therefore we will be purchasing this new system for the following reasons:
· Determine what our future sales will be
· Using charts from previous year (s)
· Accounting software for billing purposes
· Taxation problems
· Managing the inventory
· Customer service tracking
· Marketing communication (e-coupons, mailing lists, sale promotions through our website)
· Sale projections
· Employee data/personnel records