WebSeal Cyber Cafe Business - Example

Starting a Small Business Name: School: Course Level: Course: Task: Starting a Small Business PROPOSED BUSINESS PLAN FOR WEBSEAL CYBER CAFECAFÉ For the best and fastest Internet and Computer Services Sevices: Cheap Browsing Typing Services Printing Services Photocopy Services Scanning Fax International Calls The World is Just a Click Away! EXECUTIVE SUMMARY 1 Business Description This will be a sole proprietorship, owned by John Peters and managed by Ms. Jane Harvardson, an IT college graduate. The name of the purposed business will be WebSeal Cyber Cafe. This is because it is easy to pronounce and to be recalled by customers. Major business activity will be sending money and selling airtime in wholesale and retail. 2 Marketing Plan The business opportunity will be making of profit. The owner is attracted to the business opportunity because cyber café business is very marketable and flexible. More services can be added in the future such as computer training college on programming and other I.T. services and there is an opportunity for increasing the in income as the business becomes more stable and self-sustaining. The plan to exploit this opportunity will be getting more ideas by studying the tactics being used by other competitors and good ideas that will apply to this business. Plans for growth and expansion will include provision of high quality, reliable, unique and affordable services. Those offering services will be qualified personnel. Primary target group will be the students from the university and the colleges around who may be willing to access internet in a quick and affordable way. Also, passers-by will be attracted to the business as they may be in need of the services and may not be having their own computers with them at the time. 3 Management team The owner has some knowledge in cyber café work as he has been doing a holiday job in an uncle’s cyber café for quite sometime. He has some experience in the running of the cyber services and in accounting and business studies. The staff will consist of the owner, who will be involved in the business as the Director of the business and will also help in most of the functions in the business. He will also act as the cashier in the business. The other members of staff will be the Manager, having a Diploma in Information Technology, and a certificate in computer hardware and software, and three cyber attendants with at least a Certificate in IT or Secretariat courses. The purposed business hence needs five employees. They will work together to achieve good results. 4 Business Operation Plan WebSeal Cyber Café will be dealing with provision of fast and reliable browsing services, typing and printing services, scanning services, photocopy services, fax and international calls. These services will make this a very marketable and preferable place to come to especially for university students from the surrounding as they can get almost all the services they need at the same place. Hence, the combination of all the services at the same place is an added advantage for the better of the business and the customers. 5 Financial Plan This deals with operational costs, working capital, Proforma profit and Loss account, Proforma balance sheet, Desired financing, and Purposed capitalization. CHAPTER ONE BUSINESS DESCRIPTION 1.1 Business Name The name of the purposed business will be WebSeal Cyber Cafe. This name is closely associated with the functions of the business. The cyber café will be providing internet services which include access to the web. A sealed thing is something whose quality is guaranteed. Hence, the name implies that the quality of the services offered will be unquestionable. 1.2 Business, location, address and accessibility This business will be located within the surrounding of Stanford University in Palo Alto city, Santa Clara county, northern California, U.S.A. Physical address will be as follows: WebSeal Cyber Café, 3200 El Camino Real Palo Alto, CA 94306-2119, United States (650) 852-3636 The location has accessibility to many customers and good market for cyber clients. WebSeal Cyber Cafés located near the highway and within the surrounding of Stanford University, in a place where most of the students pass on their way to and from the city centre. This will enhance easy access, convenience and enhance customers to find it easy to use the services offered by the Business The location also has the advantage of good communication network that is facilitated by good telephone network which helps in communication between business owner and customer. Easy access to electricity and water will ensure smooth running of the business. 1.3 Business ownership The Business will be a sole proprietorship because of the following advantages: (i) All profit will go to the owner. (ii) He will be the boss hence lead others. (iii) The owner can take active initiatives. (iv) It will be easy to start and manage the business. The Business is to start its activities in the year July, 1st 2010. The major activities of the Business will be provision of fast, reliable and affordable browsing services, typing and printing services, scanning services, photocopy services, fax and international calls. The services will be of high quality and efficient, convenient and easy to be accessed by every customer who is willing to access the web, communicate or get other computer services. Principle customers will be individuals and students from the surrounding, especially the students from Stanford University and the colleges from the neighborhood. People working in small offices from the surrounding are also a part of the target population, together with those traveling along the road from Stanford University to the City centre. The Business commencement will be July, 2010 because by then the capital will be readily available from the proposed sources. The owner of the Business will also have adequate experience to run the Business obtained from an internship at a local IT firm. The start-up capital is approximately $7,000. This will consist of the owner’s contribution, a promised grant from some relatives and friends and a small business loan. Friends and relatives contribution will be $ 3,500, and owner’s contribution will be $ 1,500. A bank loan will provide the remaining $2,000. 1.4 The percentage will be as follows: Friends and relatives: (3,500/7,000)*100= 50% Owner’s Contribution: (1,500/7,000)*100= 21.43% Bank Loan: (2,000/7,000)*100= 28.57% 1.5 Products and Services WebSeal Cyber café will offer the following products and services. a) Cheap Browsing b) Typing Services c) Printing Services d) Photocopy Services e) Scanning f) Fax g) International Calls The key service will be the browsing Services which involves access to internet and websites together with other internet services. , and use of latest technology to make online calls. Through browsing, customers will be able to: i) Browse from the web ii) use webcams iii) chat iv) use the latest technology to make online calls v) download allowed content from the web Typing services will also be availed for the students and other customers. Other related services will include printing and scanning services. For the communications sector, customers will be able to communicate using chatting services, online calling services and fax services. 1.6 Industry The purposed business belongs to the Information and Technology industry therefore it requires efficient and qualified employees who are good in computers and Information Technology. This is to ensure smooth running of the business and that the customers enjoy and are satisfied with the services offered. A survey carried out in this part of the city showed that the number of private cyber cafés in the areas was very small and these services were usually only available from big institutions and public libraries. This is hence a good opportunity for the business since most people will not wish to move for long distances to get to those locations or spend so much time dealing with the orders and protocol of the public utilities and institutions. The proposed business is a small business and hence it is easy to start as it requires little capital to start and minimal management expenses. Also, there are no very many government restrictions for the business. The firm will grow big day by day and ultimately become a leading IT firm. This is because of the presence of customer, a fact that will increase income available for the owner to expand the business. The main challenge of in the industry will include the provision of a license by the local government. Another challenge will be competition from other established cyber cafés in institutions around. Industrial trend and characteristics and future of industry are as shown in the table below: Description Small Business Medium Business Large Business Number of Employees 1 - 6 6 – 10 10 and above Total Asset $5,000 $10,000 15,000 Value of Transaction & sales per year $5,000 –10,000 $10,000 – 20,000 20,000 and above WebSeal Cyber Cafe intends to expand extensively in the future. This is by increasing the number of outlets which will be offering the browsing services and by adding more services and equipment including more computers and workstations. 1.7 Justification of the opportunities Research that has been carried out by the management team shows that there are a number of unsatisfied customers. This is because the population in the area is higher compared to the number of cyber cafés and the available cyber cafés are not very user-friendly or are a distance away from the consumers. This business will create employment for qualified personnel in the society thus people in the area who will be using the services will be provided with high quality and efficient services. Hence WebSeal Cyber Café an internet access provider will therefore succeed in the environment successfully. 1.8 Goals of the Business Short-term Goals: i) Achieving higher profits. ii) Improving the technology to computerizing every operation in the business. iii) Attracting the customers with good quality products such as fast and cheap high quality internet access, webcams, online calling, printing and scanning services. iv) Reducing the problems of internet access in the area. Long-term Goals: i) Expansion of the business i.e. by equipping the business with more facilities such as more computers and opening more branches. ii) Supplying products to clients one year after the business commences. This may include being an internet supplier and doing networking services for other smaller businesses, institutions and individuals. iii) Establishment of other products such as computers sales modems for internet connection purposes, computer repair services and establishment of a computer college. 1.9.1 Entry and Growth Strategy WebSeal Cyber Café will advertise its fast and cheap browsing services and other products by use of posters and sign-boards. Also, internet advertisements will be done on such websites as Facebook, Stanford University, blogs and other advertising websites. Advertising through the internet is advantageous and important because the information will reach many people in the target population more easily. Posters and bill boards will also serve the same purpose. Promotion methods will also be used. For example, the first few customers may be charged half-price for all the services provided so as to attract more customers. Charges for the services will be cheaper and more affordable to the target population. This will enable the customers’ access the services more easily and conveniently. Use of appropriate language and special customer care and attendance will enhance good relation with customers. 1.9.2 Growth Strategy There are high opportunities of growth for the business because all employees will be qualified and experienced in the industry. Hence, the industry will grow faster and more easily. This will also be encouraged by its location whereby it is located in an area where there are many customers. WebSeal Cyber Café will provide the best internet services among other services hence offering customers more convenient and affordable high quality services under one roof. As the business will be growing faster, it will lead to expansion of the business because income generated can be used to pay employees, buy more equipment and even open more branches. CHAPTER TWO Marketing Plan 2.1 potential customer The potential customers of the proposed business will be the students from Stanford University and other people operating around the university. People working in the small offices around the locality of the cyber café will also use the services, as well as those traveling using the road between the university and the city center. The target population is an appropriate one since it involves students who don’t want to spend so much money on browsing yet they need to access the internet many times for such reasons as entertainment, networking, research and other academic work and communication. The approximated number of customers per day is sixty customers with an average browsing time of one hour each. Due to popularity which will result from good services, customers will socialize and cooperate with employees of the business. The pattern of service use will differ from customer to customer. Some customers will spend large amounts on browsing and such services as typing, printing and scanning while others will just spend a small amount on the services. However, with provision of good services and ensuring the customers are satisfied, most of the customers are bound to come back to the business again. 2.2 Competition Potential competitors of WebSeal Cyber Café will be the two small-sized cyber cafés within two hundred meters of the proposed location for the business. However, those two do not provide all these services offered by this proposed cyber café under one roof. Other competitors are the internet services offered in the university library, other public utilities and institutions around. Hotels in the neighborhood also offer free browsing services. However, the advantage that WebSeal Cyber Café will have over most of the other businesses is the offering of many services at the same place. In most of the other browsing cafés, services such as printing, typing and webcams are absent. Also, online calls are not allowed in such places as the libraries and institutions. 2.2.1 Market Size and Market Share According to the research which was carried out in the surrounding area, almost everyone within the locality accesses internet every day. Most of the people have their own computers which are connected to the internet. However, some people prefer to leave their computers at home and need to access internet from the cybers. Also, there is a lot of typing and printing work for many students and they don’t have all the time required for that. Hence, every day, an approximate 300 people of all who wish to access the internet do not get a chance to do so and end up unsatisfied. Others have to move for long distances to access these services. Hence, by targeting this population, WebSeal Cyber Café will achieve its goal of satisfying at least a hundred customers, of whom sixty will access use the browsing services while the rest will use the other services 2.2.4 Sales Tactics The tactic or method that is going to be used is personal sales where a customer comes to the business and is given the services that they require. WebSeal Cyber Cafe will be offering services which are fast, convenient and affordable at the best way possible. This will retain customers and increase the transaction number and more profits will be made even as more customers are drawn to the business. Qualified employees will motivate the consumers in WebSeal Cyber Cafe outlet because they will enjoy being given right services by the right personnel. CHAPTER THREE MANAGEMENT 3.1 Director The business will be run by the owner, John Peters, who is experienced in cyber café work and management. He has also done well in Business studies and will act as the cashier for the business. Duties and Responsibilities i) General running of the business. ii) In charge of all the undertakings of the business iii) Collection, documentation and banking of all the monetary transactions. iv) Above the manager, who will report directly to him. As the cashier of WebSeal Cyber Café, he will earn a salary of $350 per month and other allowances. As the director, he will be in charge of all the profits generated by the business. 3.2 Manager The business will be managed by the Ms. Jane Harvardson, who has a diploma in Information Technology and computer hardware. She has worked for a few other cyber cafés and is qualified for the job. Duties and Responsibilities Reporting directly to the director. Paying salaries to all employees at the right time. Dealing with discipline behaviors of all employees. Recruiting and selection of suitable employees. Delegating duties and responsibilities to the employees. Ensuring smooth flow of activities within the company. As the manager of WebSeal Cyber Café, he will earn a salary of $450 per month and other allowances. 3.2 Cyber Café Assistant Should have at least a Certificate in IT or Secretariat courses. Salary given will be $300 Duties and Responsibilities Creating good relations with the customers. Guiding and assisting customers. Providing typing, printing and scanning services amongst other services offered. Cleaning the cyber café and maintaining it clean and neat. 3.5 RENUMERATION AND INCENTIVES For smooth running of the business the owner will motivate his employees by informing them that doing good work earn you a reward of salary increment. As the business grows, the workers salary will be increased gradually. CHAPTER FOU 4.1 LICENCES, PERMITS AND BY-LAWS. For WebSeal Cyber Cafe to run smoothly the owner will be authorized by the local authority as a single business operator. The owner will be also required to work with a service provider for internet to be supplied to him. Taxes will have to be paid as per the laws and the local government will be in-charge of that. 4.2 SUPPORT SERVICES Banking services will be handled by the owner’s bank, which will also offer the loan. This is because this bank is efficient for running of the business as it offers special accounts for the co-operate customers and those running small businesses. 4.3 OPERATIONS AND PRODUCTION PLAN The business will use the availed equipment for providing their services. Machines and equipment will be purchased for objective work. This will include 10 cheap but good-looking computers, a powerful server computer with high specifications, internet adapters and switches from a reliable service provider, two very good printers with an integrated photocopying, scanning and fax technology, webcams and headphones. Other things to be bought or made for the cyber are computer desks, seats, tables and workstations. 4.4 THE PRODUCTION PROCESS WebSeal Cyber Café will be operating with finished goods therefore no production cost will be incurred because the products that will be offered in WebSeal Cyber Café will be finished goods. However goods such as stationary and ink for the printers will be bought on regular basis. 4.5 FINANCIAL PLAN 4.5.1 PRE-OPERATIONAL COSTS WebSeal Cyber Cafe will incur the following pre-operational costs: ITEM AMOUNT($) Branding 200 Rent deposit 250 Electricity 100 Licenses 200 TOTAL $750 4.5.2 ESTIMATION OF WORKING CAPITAL Working capital for the business over the first year will be as shown below. Working Capital = (Current assets – Current liabilities) ITEM AMOUNTS(KSHS) CURRENT ASSETS Cash at bank $ 1,000 Cash at hand 2,000 Purchases Total Current assets $3,000 CURRENT LIABILITIES Bank loan $ 1, 000 Insurance $ 750 Tax payable $250 Total Current Liabilities $2,000 Working Capital $3,000 References: Abrams, R. (2004). Six-Week Start-Up: A Step-By-Step Program for Starting Your Business, NY: McGraw hill press Cleaver, R. (2003) Starting a business, NJ: Prentice hall Krueger, N. (2002) Entrepreneurship: critical perspectives on business and management, NY: Black well Kuratko, D.(2008) Entrepreneurship: Theory, Process, and Practice, NY: McGraw hill press Shane, S. and Baron, R. (2007). Entrepreneurship: a process perspective, NY: Wiley and sons Welsch, H. (2004). Entrepreneurship: the way ahead, NY: Black well Read More