Address: 0915924323/0969024522
BUSINESS PLAN FOR
INTERNET CAFE
DEBRE TABOR UNIVERSITY
Email: Yosef0353@Gmail.Com
Submitted To: Feyisa Debissa
Prepared by Id no
1. Yosef alemayehu DTU12/1222
2. Yonas sitotaw DTU12/1220
3. Bereket DTU12/
4. DTU12/
5.
BUSINESS PLAN FOR INTERNET CAFE
INDEX
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1. Introduction sidebar title]
[Type the sidebar content. A sidebar is a standalone
1.1 Objectives
1.2 Keys to success
1.3 Missions
1.4 Risks
2. Company
2.1 company ownership
2.2 Start-Up Summary
2.3 Company locations and facilities
3. Services
3.1 Competitive Comparison
3.2 Service description
3.3 Fulfillment
3.4 Technology
3.5 Future Services
4. Market Analysis
4.1 Target market segment strategy
4.2 Market needs
4.3 Market segmentation
5. Strategy and Implementation summary
5.1 Attracting customers
5.2 SWOT analysis
5.3 Sales strategy
6. Management summary
6. Personnel plan
7. Financial plan
7.1 Start-up funding
7.2 Projected profit and loss
7.3 Break-even analysis
1. INTRODUCTION
This is the business plan of our group created to help starting an internet-
café. This business plan IS part of our freshman project for our
university, the debre tabor south Gonder.
For our freshman project we have chosen to participate with the School'
project which is a project that is meant to support any third world country.
In order to finish this project successfully we have informed our contact
person with all the questions we had.
At first the task was to create a business plan for a local university in
south Gonder. So to make our business plan useful we asked what other
help we could give to the University of Debre Tabor.
The task which we appointed was to create a business plan for an
internet-café. In this business plan we have tried to make a plan to
realize the internet-café and keep it running while making some profit.
Furthermore this business plan Will show how the internet-café itself will
be built and realized. And what the expected costs and upkeep costs will
be.
1.1 Objectives
As mentioned before, the occasion we are aiming at is debre tabor, south
Gonder. Building an Internet café for a local university, as extra income to
keep up with the costs of the school and to have the ability to maintain it by
serving university. In order to provide us with the necessary financial
support the objective is to make internet-café a continuing running internet.
Our own aim are to make a Business plan for this internet café, in order to
help university students, and increase their knowledge with computers, the
internet, giving them access to university digital library and also to connect
to the www.
1.2 Keys to success
We believe that this internet café will be a great success because there
are no internet cafe around the university the only competent is university
Wi-Fi in the area and therefore the university will have its own monopoly.
Also, because there are quite some villages in the area, the potential
demand will be high.
1.3 Missions
The mission of our internet-café is to make the internet available to a
greater population of student. In such a way that the debre tabor
university student will have access to all the sources which can be found
on the internet. Also the internet café should be a place where one can
relax and play some games. Thereby the café IS supposed to be d place
where student and teachers of all ages will come to enjoy the unique,
upscale, educational, and innovative environment that the internet-café
provides.
1.4 Risks
The main risks in establish in any business at all is always the demand.
Will there be enough demand for my product, will there be enough interest
in it? Won’t we go bankrupt due to lack of interest? These risks are also
present in the soon to come internet café, the student may not be
interested in spending money to go online. Also, will the popularity of the
internet sustain, in order for the student to maintain their interests in the
internet and the internet café. And for most, will there be a profit?
2 Company
The internet-café which will be realized will offer the community of debre
tabor university easy and affordable access to the internet.
The internet-café will appeal to individuals of all year student and others.
The instructional internet classes, and the staff that the internet-café
provides, will appeal to the audience that does not associate themselves
with the computer age. This educational aspect will attract younger and
elderly members of the community who are rapidly gaining interest in the
unique resources that online communications have to offer.
2.1Company Ownership
As this business plan will not be used by us the ownership remains
unknown. However the ownership will probably be in hands of the one who
bought and have this business plan specially have potential to cover the
startup cost.
2.2 Start-up Summary
Cost needed for the installation and starting business.
2.2.1 Start-up Expenses
Table 2.1 startup cost
Items Pisces Cost of Total cost
needed one
Computers 15... Dell 9000etb 135,000
corei7 6gb
ram 1T
Printer and 1 12000 12000
scanner
Chair 15 400 6000
Computer 16 1500 24000
stand
Electricity Per month 2000 2000
Internet 5 mb/sec Rout5000 11500
+router 2 router Internet
1500
Labor 3 BCW 3000 5000
expenses for 1 expert
installation
Water Per month 100 100
Total 174,000
expenses
2.3 Company Locations and Facilities
The site where the internet-café will be located was already decided
before the making of this business plan. The location will be close to the
University of Debre Tabor. This building is already not present however
there is electricity and internet running yet. To prevent more unnecessary
cost we will be making use of this facility.
3. SERVICES
Firstly the internet-café will grant the customers (or student) access to
the internet, digital library and www. Besides that, the internet-café will
provide the opportunity to use the scanner, printer and will provide basic
computer classes.
3.1 Competitive comparison
The internet-café which will be located near the University Of Debre Tabor
will be the first internet-café to settle around Debre Tabor University. We
expect that there will more internet-cafés around debre tabor in the future.
However we do think many cafés will be present, but improving our quality
will help us to dominate the market.
3.2 Service description
The internet-café will provide its customers with full access to the Internet
and common computer software and hardware. Some of the Internet and
computing services available to the future internet-café customers are
listed below:
Access to any entertainment services.
Access to school utilities will be available. Such as digital
library ,module
Access to Internet Explorer browser or other browsers,
Access to copy, printing and scanning document.
Access to popular software applications like Microsoft Word and
other often used applications.
Give students access to computers to do research.
Discount for researchers and students which make us unique.
Next to these computer services, the internet-café will provide the
possibility to attain computer courses and faxing. During these courses the
costumer can learn how to use a computer and learn some possibilities,
including web surfing.
3.3 Fulfillments
The internet-café will obtain its computer and its component from
Teshager Electronics P.L.C which can be found in or in the neighborhood
country Bahir Dar. The installation of the internet will also be provided by
the local telecommunication known as ethio tele. Electricity shall be
installed by one of the major providers of electricity around debre tabor
who know the system of university very well.
3.4 Technology
The internet-café will be providing its customers with computers which will
be up to date with today’s system requirements. The computers will be
able to provide the Customers with a variety of application to serve their
needs. These applications will mainly be the mainly used ones which
everyone will be familiar with such as Microsoft Office. And also allow
students who doesn’t have smart phone to access internet which is with
discount as described above.
3.5 Future Services
In the future the internet-café will be able to expand or improve its services.
When expanding the needed amount of hardware should be purchased
however what should be kept in mind is how far the internet café will be
able to expand. And also give night program for teaching basic computer
system. The location may not be big enough to provide an excessive
expansion of teaching.
The improvement of service however could be made possible by providing
the customer with additional services. A drink- and/or snack machine could
be purchased for satisfying the customer, which would attract more
customers and which could make the current customers stay longer but we
didn’t allow using soft drinks and snakes around computer using area.
4. MARKET ANALYSIS
Usually there are of no any present business is designated make a profit
area like this. By providing university a services,
Developing country, this can benefit greatly from international contacts
and access to the World Wide Web. To achieve this however, certain
requirements have to be met, what is the average price, how can a profit
be achieved, and what does the market want?
4.1 Target market segment strategy
Our main intentions are to connect student to the internet, increase their
knowledge by having access to sources from all over the world, and to
increase their social setting among society, by a new way of
communicating. People will come to this internet café check their email,
socialize with their friends, and gather information not found elsewhere by
using our café.
4.2 Market Needs
Foremost needs an internet café since there is a no amount of internet
café's present in the university area. But there is a high demand for an
internet where student use to achieve what they want. Check their email
and search the web for information. Also, this café is designed to be an
additional source of internet for a local university. Which is a need for the
university itself? The customers at the internet café will also enjoy the
freedom of accessing different programs like Microsoft Word and other
applications except pornography sites and applications.
4.3 Market segmentation
Since our internet café is situated in a major town in south Gonder, we
expect the customer to increase and decrease with the same speed.
Therefor we can state and use the year of student to predict the
amount of customers that would be suitable for our market, by looking
at the average number of student come and out from the market, we
can predict how many customers we will get.
AS can be seen, mainly the last year groups are the main groups use the
café. This is our main target of market; therefore we can make an
estimated growth customer of about 1% customers per year. We make an
assumption of around 2000 customers a year, mainly last year student
have no access to smart phone to do research and proposal.
Table4.1 customer expected per year
No
Year 1 Year 2 Year 3
Year of student
1 Number of customers 5000 5065 5131
2 Estimated customer
growth by percent 1.3% 1.3% 1.3%
3 Estimated customer 65 66 67
growth
5. Strategy and Implementation Summary
In this section the strategies of the internet café will be further explained. These
strategies are meant to become aware of the possible improvements and
decrease.
5.1 attracting customers
To attract the Intended customers the internet-café can use different types of
advertising to reach each target group. For the extension student for example
some posters could be made. These posters could be placed around places
where the extension student would mainly be present outside of university.
Places like game-halls, streets, vehicles and sports clubs would be perfect for
advertising if we advertise our café well number of customers will be attracted.
Another way of attracting the customer is to advertise in and out of university
by many means. By advertising in and out of university by fliers business card
would get notice of the new internet-café. This would result in attracting the
extension student of the university and people outside university.
These ways of advertising will most be inhabitants stopped after one and half
years. This is because over such a period of time will have noticed the internet
café heard about it.
5.2 SWOT analysis
In This section we will talks on the SWOT analysis. The SWOT analysis is a
strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities and Threats involved in a project or in a business venture. SWOT is
an abbreviation for: Strength, Weakness, Opportunity and Threats.
Strength
The strength that the internet-café will have is its dominant position in the
local internet availability and additional service that gives. In debre tabor the
access to internet is very limited however there is some Wi-Fi which surely will
make competition. but university Wi-Fi didn’t allows as to use internet if we
don’t have smart phone or laptop but our internet-café allow any person to
use internet without pre condition.
Secondly the internet-café should have strength in staying up-to-date with the
latest computer software. By keeping the hardware updated with the needed
software the customers will enjoy working with the computers we have. Staying
updated with the newest software is also a cheap cheap investment' which again
would benefit to the success of the internet-café.
Weakness
Besides the strengths each company/business has its weaknesses. Weakness can
lead to a decrease of a company's success and development.
The weakness of an internet-café in general and also the university internet Wi-Fi
is keeping up with the latest network technology. Staying updated with the latest
network technology (4G) is not only an expensive investment it is an investment
which does not sincerely pays off its prices immediately. Over a period of years
such an investment should be needed however it remains expensive.
Opportunities
As any other organization an internet-café has its opportunities. Having certain
opportunities offers an organization a possibility to expand their turnover. An
opportunity of an internet-café is that the global population which is requiring
access to the world wide web is slowly increasing.
This increase of internet users should offer the internet-café a chance to expand
the business.
Another opportunity from which the internet-café might benefit is the
possibility of a rising demand in the market. This raise would be the outcome
of the growing popularity under the inhabitants. Once one is familiar with the
World Wide Web one may introduce his or her social environment to the
internet. Thereby the popularity of the internet will keep on growing for
years and finally this will reflect in an increasing number of customer’s
internet-cafe.
Threats
The Internet-café will be one of a few located in the town of debre tabor.
However the internet-café will face certain threats which can cause a slight
decrease in its popularity in the market.
One of the threats the café will face is the continuous reducing price of the
availability of internet itself. Because of the lowering price the internet will
become available to a greater population. When this situation occurs more and
more people will have an internet connection at their own house. This will make
the existence of an internet-café redundant.
Another threat which may threaten the internet-café is the increase of internet-
cafés at a local scale. When the consumers get the opportunity to choose from a
variety of offers the amount of customers will probably decrease.
5.3 Sales Strategy
For our internet café, our employees do not require much background training
apart from a basic computer course. If they do not possess this knowledge,
there will be an opportunity to learn these. The full time technician will require
basic handyman training and more advanced computer knowledge. This
however cannot be provided by the internet café itself. Helpful service is one of
the key factors that distinguish our internet café from other Internet cafés.
6. MANAGEMENT SUMMARY
An internet-café itself does not require a lot of employees. Therefore the
organizational structure isn't too complicated. In this section the intended future
organizational structure is further explained,
6.1 Personnel plan
The internet-café requires just a handful of employees in order to function.
In total the internet-café will count a staff of a least three persons. At first there
will be accountants who control cash and printing area and then IT expert which
will be spending their time -teaching customers how to manage handling a
computer. Besides these two employees there is another employee who works
on fixing and updating system and network.
These employers work cooperatively to manage the cafe. Their job is mainly to
support customers with any problems and next to that they will appoint
customers computers.
Table6.1 salary of employees
List of employees Daily Monthly salary
IT expert 200 Etb 6000 Etb
Accountant 100 Etb 3000 Etb
Total 300 Etb 9000 Etb
7. FINANCIAL PLAN
The following sections lay out the details of the financial plan for the future years.
7.1 Start-up funding
The internet-café will not have the pleasant condition of a start-up fund. Thereby
the internet-café should be self-providing and also earn back the made costs.
Table7.1 amount of money to expend and earn from business
Profit and lose Year 1 Year 2 Year 3
Sales
Estimated customers 5000 5065 5131
Copy ,fax and scan 73,000.00 73,090.00 91,340.00
Internet sell 369,562.50 Etb 377,775.00 Etb 383,250.00 Etb
Expenses payroll
IT expert 72,000.00 Etb 72,000.00 Etb 72,000.00 Etb
Accountant 36,000.00 Etb 36,000.00 Etb 36,000.00 Etb
Marketing promotion
Business card 625.00 Etb 625.00 Etb 625.00 Etb
Banner 700.00 Etb 350.00 Etb 0.00 Etb
Fliers 500.00 Etb 250.00 Etb 0.00 Etb
Furniture
Chairs 6000.00 Etb 0.00 Etb 0.00 Etb
Computer stands 24,000.00 Etb 0.00 Etb 0.00 Etb
Electronics
Scanner and printer 12,000.00 Etb 0.00 Etb 0.00 Etb
Computer 135,000.00 Etb 0.00 Etb 0.00 Etb
Fax machine 17,000.00 Etb 0.00 Etb 0.00 Etb
Internet router 10,000.00 Etb 0.00 Etb 0.00 Etb
Other expanses
Tax 25,000.00 Etb 27,000.00 Etb 29,000.00 Etb
House rent 60,000.00 Etb 60,000.00 Etb 60,000.00 Etb
Electricity payment 24,000.00 Etb 24,000.00 Etb 24,000.00 Etb
Internet payment 36,000.00 Etb 36,000.00 Etb 36,000.00 Etb
Additional unexpected 10,000.00 Etb 10,000.00 Etb 10,000.00 Etb
expenses
Total expenses
Total sales 442,562.50 Etb 450,865.00 Etb 474,590.00
Total expenses 0 Etb 266,225.00 Etb 267,625.00
Profit -21,262.50 Etb 184,640.00 Etb 206,965.00
7.3 break-event analysis
Calculation done to know in how much day the start up cost will be covered and start earning
the profit.
Profit per day 184,640.00/365 505.8
Lost of 1st year 21,262.5 21,262.5
Lost of 1st year/daily profit 42
As calculation done above after 42 days of second year we start making some profit.
APENDEX
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