cyber cafe business plann

8/2/2019 Cyber Cafe Business Plann

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2. SWOTANALYSIS:

The SWOT analysis provides us with an opportunity to examine the internal

strengths and weaknesses CYBERIA must address. It also allows us to examine the opportu-

nities presented to CYBERIA as well as potential threats.

STRENGTHS

:

CYBERIA has a valuable inventory of strengths that will help it succeed. These

strengths include:

Knowledgeable and friendly staff:

We've gone to great lengths at CYBERIA to find people with a passion for teach-

ing and sharing their Internet experiences. Our staff is both knowledgeable and eager to

please.

State-of-the art equipment:

2009

Address: highway face,

Vashi plaza

Sector 17,

Vashi

Navi Mumbai 400703

Email: [email protected]

Contact No. 9819151015

9892849678

INTERNET CAF BUSINESSPLAN

C

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B

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mailto:[email protected]:[email protected]


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State- of- the art equipment part of the CYBERIA experience includes access to

state-of-the-art computer equipment. Our customers enjoy beautiful flat-screen displays, fast

machines, and high-quality printers.

Upscale ambiance:

When you walk into CYBERIA, you'll feel the technology.

Clear vision of the market needs:

CYBERIA knows what it takes to build an upscale cyber cafe. We know the cus -

tomers, we know the technology, and we know how to build the service that will bring the

two together.

WEAKNESSES:

Strengths are valuable, but it is also important to realize the weaknesses CYBERIA must ad-

dress. These weaknesses include:

A dependence on quickly changing technology:

CYBERIA is a place for people to experience the technology of the Internet. The

technology that is the Internet changes rapidly. Product lifecycles are measured in weeks, not

months. CYBERIA needs to keep up with the technology because a lot of the CYBERIA ex-

perience is technology.

Cost factor Associated with keeping state-of-the-art hardware:

Keeping up with the technology of the Internet is an expensive undertaking. CYBE-

RIA needs to balance technology needs with the other needs of the business. One aspect of

the business can't be sacrificed for the other.

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their entry into the market. Many of our programs will be designed to build customer loyalty,

and it is our hope that our quality service and up-scale ambiance won't be easily duplicated

CYBERIA, soon to be located in Vashi Navi Mumbai, will offer the community

easy and affordable access to the Internet. CYBERIA will provide full access to email,

WWW, and other Internet applications. CYBERIA will appeal to individuals of all ages and

backgrounds. This educational aspect will attract younger and elderly members of the com-

munity who are rapidly gaining interest in the unique resources that online communications

have to offer. The vashi highway will provide business people with convenient access to their

online needs.

4.BUSINESSFORMATION:

CYBERIA's start-up costs will cover site renovation and modification, capital to cov-

er losses in the first year, the communications equipment necessary to provide CYBERIA's

customers with a high-speed connection to the Internet and the services it has to offer make

up a large portion of the start-up costs. These costs will include the computer terminals and

all costs associated with their set-up. Costs will also be designated for the purchase of two

laser printers and a scanner.

The renovation and modification cost estimate will include the costs associated with prepar-

ing the site for opening business.

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Start-up Expense Details:

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5.CYBERIASLOCATIONANDFACILITIES:

A site has been chosen near Vashi highway. This site was chosen for various rea-

sons including:

Proximity to the downtown business community.

Proximity to schools, colleges & coaching classes.

Proximity to Vashi Station.

Low cost rent Rs.35 per square foot for 400s square feet.

High visibility.

All of these qualities are consistent with CYBERIA's goal of providing a central hub

of communication and socialization for the Vashi community.

6.MANAGEMENTTEAM:

CYBERIA is a privately held internet cafe. Mukesh Lala, the founder of CYBERIA,

is the majority owner. Ajay Bhatia, Bhanumati Motwani, Sanjay Jain, Alka Sedhani and Rishi

Valeja are the co-founders as well as partners of the cafe. CYBERIA, being partnership firm

in nature, requires a simple organizational structure.

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7.DEVELOPMENT:

DEVELOPMENT PROCESS:

CYBERIA has two main strategies. The first strategy and most important, strate-

gy focuses on pulling in power Internet users. Power Internet users are extremely fa-

miliar with the Internet and its offerings. This group of customers serves an important func-

tion at CYBERIA. Power users have knowledge and web-browsing experience that novice In-

ternet users find attractive and exciting.

The second strategy focuses on building a social environment for CYBE-

RIA customers. A social environment, that provides entertainment, will serve to attract cus-

tomers that wouldn't normally think about using the Internet. Once on vashi highway at CY-

BERIA, these customers that came for the more standard entertainment offerings will realize

the potential entertainment value the Internet can provide.

Attract Power Internet Users:

CYBERIA's first strategy will be focused on attracting power Internet users. Power

Internet users provide an important function at CYBERIA. CYBERIA plans on attracting this

type of customer by:

Providing the latest in computing technology

Providing scanning and printing services

Providing access to powerful software applications

Building a social environment:

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The second strategy focuses on building a social environment for CYBERIA cus-

tomers. A social environment, that provides entertainment, will serve to attract customers that

wouldn't normally think about using the Internet. Once on location at CYBERIA, these cus-

tomers that came for the more standard entertainment offerings will realize the potential en-

tertainment value the Internet can provide.

PROJECT PLAN:

CYBERIA's start-up costs will cover site renovation and modification, capital to

cover losses in the first year, and the communications equipment necessary to get its cus-

tomers online. The communications equipment necessary to provide CYBERIA's customers

with a high-speed connection to the Internet and the services it has to offer make up a large

portion of the start-up costs. These costs will include the computer terminals and all costs as-

sociated with their set-up. Costs will also be designated for the purchase of two laser printers

and a scanner. The renovation and modification cost estimate will include the costs associatedwith preparing the site for opening business.

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8.MARKETING:

8.1 MARKET (SERVICE BUSINESS) ANALYSIS :

The popularity of the Internet is growing exponentially. Those who are familiar

with the Internet are well aware of how fun and addictive surfing the internet can be. Those

who have not yet experienced the Internet need a convenient, relaxed atmosphere where they

can feel comfortable learning about and utilizing the current technologies. CYBERIA seeks to

provide its customers with affordable Internet access in an innovative and supportive environ-

ment.

Due to intense competition, we must look for ways to differentiate their place of

business from others in order to achieve and maintain a competitive advantage. The fact that

no cyber-cafes are established in VASHI HIGHWAY, presents CYBERIA with a chance to

enter the window of opportunity and enter into a profitable niche in the market.

Detailed analyses of the market are given below:

MARKETNEEDS:

The rapid growth of the Internet and online services, that has been witnessed world-

wide, is only the tip of the iceberg. The potential growth of the Internet is enormous, to the

point where one day, a computer terminal with an online connection will be as common and

necessary as a telephone. This may be 10 or 20 years down the road, but for the next five

years, the online service provider market is sure to experience tremendous growth. Being the

first cyber-cafe in VASHI, CYBERIA will enjoy the first-mover advantages of name recogni-

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tion and customer loyalty. Initially, CYBERIA will hold a 100 percent share of the cyber-cafe

market in LOCATION. In the next five years, competitors will enter the market. CYBERIA

has set a goal to maintain greater than a 50 percent market share.

MARKETTRENDS:

A market survey was conducted in the fall of 2009. Key questions were asked of

fifty potential customers. Some key findings include:

35 subjects said they would be willing to pay for access to the Internet.

Rupees Twenty five for an hour was the most popular hourly Internet fee.

24 people use the Internet to communicate with others on a regular basis.

COMPARATIVE RESEARCH:

Competition from online service providers comes from locally-owned businesses

as well as national firms. There are approximately eight, local, online service providers in

VASHI. This number is expected to grow with the increasing demand for Internet access.

Larger, online service providers, such as AOL and CompuServe are also a competitive threat

to CYBERIA. Due to the nature of the Internet, there are no geographical boundaries restrict-

ing competition.

The number of online service providers in VASHI is approximately eight and

counting. These small, regional service providers use a number of different pricing strategies.

Some charge a monthly fee, while others charge hourly and/or phone fees. Regardless of the

pricing method used, obtaining Internet access through one of these firms can be expensive.

These service providers are also rather costly for the average consumer. Consumers, who are

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not convinced they would frequently and consistently travel the Internet, will not be willing to

pay these prices.

TARGET MARKET SEGMENTATION:

CYBERIA intends to cater to people who want a guided tour on their first spin

around the Internet and to experienced users eager to indulge their passion for computers in a

social setting. Furthermore, CYBERIA will be a magnet for local and traveling professionals

who desire to work or check their email messages in a friendly atmosphere. These profession-

als will either use CYBERIA's PCs, or plug their notebooks into Internet connections. CYBE-

RIA's target market covers a wide range of ages: from members of Generation X who grew

up surrounded by computers, to Baby Boomers who have come to the realization that people

today cannot afford to ignore computers.

See the Market Analysis chart and table below for more specifics:

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10. ORGANIZATIONALSTRUCTURE:

CYBERIAis a partnership firm of total six partners. one is active partner and

five are dormant partners. Mukesh Lala is active partner who is running the business.

He is from engineering background and one assistant is appointed to assist customers

as well as handling other business activities.

PARTNER PARTNER PARTNER PARTNER PARTNER PARTNER

1 2 3 4 5 6

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CYBERIA


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11.CONTINGENCYPLANNING:

This plan is just that, a plan. plan dont always work out and we have to be ready with

the likelihood that CYBERIA wont make good on the projections outlined in this plan. we also

have to prepare ourselves for overwhelming success. The following are some possible scenarios:

Revenues exceed projections:

A serious increase in revenues over projection will give us an opportunity to increase our

market budget above the allocated. We will be able to provide more equipment and possibly add an

additional location.

Revenues miss projections:

We have to be prepared for this possibility. If we miss our projections, we simply have

to redouble our marketing efforts. The danger in this scenario is that the first reaction missed projec-

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tions is to decrease spending. we cant do that! We have to get our message out to the target cus-

tomer and we cant do that if we stop spending on the marketing.

Internet side of business plays lesser role:

Our customer might not be willing to pay for internet access costs and hardware costs con-

tinue to fall. If this scenario materializes, we will need to move our focus to beverages, perhaps even

providing daily style lunches. Internet services in the scenario still play an important role in attract-

ing customers; we just have to charge less and move our numbers round to accommodate trends.

12. INVESTMENTBUDGETOFCYBERIA:

Investment requirement of cyberia is Rs 7 lakh, as a result, Mr.-

Mukesh lala who is the founder of the caf is shelling out Rs 2 lakh while the

remaining members are contributing Rs. 1 lakh each.

13.FUTURESTRATEGIES OF CYBERIA :

TECHNOLOGY:

CYBERIA will invest in high-speed computers to provide its customers with a

fast and efficient connection to the Internet. The computers will be reliable and fun to work

with. CYBERIA will continue to upgrade and modify the systems to stay current with com-

munications technology. One of the main attractions associated with Internet cafes, is the

state of the art equipment available for use.

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14. APPENDICES:INCOME STATEMENT:

PARTICULARS AMOUNT (Rs) AMOUNT(Rs) AMOUNT(Rs)

M/S. CYBERIACOMPARATIVE REVENUE STATEMENT FOR THE YEARS ENDED

31ST MARCH,2010 & 2011

PARTICULARS 2009-10 2010-11

SALES

1) internet charges recd 912500 1186250

2) sundry incomes 286620 1199120 372602 1558856

Less operating expenses

(A) administrative over-heads

salaries 48000 48000

electricity charges 96000 96000

office rent 168000 168000

cleaner charges 2400 2400

Miscellaneous Expenses 2045 3000

printing & stationary 636000 763200

rent paid for internet 60000 1012445 60000 1140600

(B) selling & distribution

advertisement 25000 25000

( C ) financial overheads

licenses 1500 -1038945 0 -1165600

Operating Cash Profit 160175 393256

Less Depreciation -174775 -79641

OPERATING NET

PROFIT -14600 313615

Add: Non-Operating In-comes

commission recd on sale of

beverages 10950 12045

Net Profit before Tax -3650 325660Last year's Loss Adjusted -3650

322010

Less: Provision For Income

Tax 0 -96603

NET PROFIT AFTER TAX -3650 225407

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Less: Appropriations

Interest on Capital 84000 84000

Salary to Active Partner 96000 -180000 96000 -180000

Balance Transferred to Part-ner's Capital A/c -176350 45407

PARTNER'S CAPITAL A/C

Particulars

Amount

(Rs.)

Amount

(Rs.) Particulars Amount (Rs.)Amount(Rs.)

By Balance b/d

Mukesh 200000

Ajay 100000

Alka 100000

Bhanu 100000

Rishi 100000

To P & L A/c 176350 Sanjay 100000 70000

To Balance c/d By Interest on Capital

Mukesh 201045 Mukesh 24000

Ajay 100521 Ajay 12000

Alka 100521 Alka 12000

Bhanu 100521 Bhanu 12000

Rishi 100521 Rishi 12000

Sanjay 100521 703650 Sanjay 12000 8400

By Salary to Mukesh 9600

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880000 88000

From :- M/s.______________________________

______________________________

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cyber cafe business plann

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