Jokjok Internet Cafe

Jokjok’s Internet Cafe

The Internet-services side of the business is rapidly being accepted by the local communities. Students love to gather for late-night sessions, nearby seniors are getting a glimpse of what the Internet offers, and local business people enjoy stopping by for a quick bite to eat while checking their emails. Because of this, demand for internet service has grown tremendously.

Market Analysis

Internet Service nowadays plays an increasing role in bringing education at the utmost. In fact, most universities and colleges use internet for their research and references. No wonder this business is one of the income generating types of commerce. Definitely, competition is very high as well as the demand.

It is very evident that there is a rapid growth in the population nowadays. Not to mention, most of these students really make use of the modern technologies like computers as a part of their daily system. However, despite of the emerging internet café business, there are still some students unaccomodated. Obviously there is shortage in supply of internet service. That is where jokjok’s internet café comes possible. This business will cater to consumer’s preferences to prices and other services as well as accommodate them giving them good costumer service.

Target Market

Jokjok’s internet cafe intends to cater both to people who want a guided tour of the Internet and to experienced users eager to indulge their passion for computers in a social setting. Furthermore, Jokjok’s Internet Cafe will be a magnet for local and traveling professionals who desire to work or check their email messages in a friendly atmosphere. These professionals will either use Jokjok’s Internet café’s PCs, or plug their own notebook computers into Internet connections. Jokjok’s internet cafe target market covers a wide range of ages: from members of “Generation X,” who grew up surrounded by computers, to seniors from local retirement centers.

Our primary target markets include: • Students.

The large student population will become an important part of the Jokjok’s internet cafe customer base. The student population continues to grow at most universities. Evening entertainment, access to the Internet, and the upscale ambiance will be attractive to this demographic group.

• Business people.

Downtown business communities are the areas in which Jokjok’s internet cafe is located. With further expansion into these parts of new cities, there will be access to additional professional centers. Jokjok’s internet cafe provides a perfect setting for business meetings. It also offers traveling business people the opportunity to plug personal laptops into the Jokjok’s internet cafe network to check email communications or conduct Internet business with their customers or home office.

• Seniors

This group represents a growing segment of Internet users. Jokjok’s internet cafe will target the seniors in nearby retirement centers by offering “Introduction to the Internet” classes. The Jokjok’s internet cafe staff will hold brief classes in the off hours to educate seniors on how to use the Internet to communicate with friends and family. This should build a regular base of customers who wouldn’t ordinarily use the services offered by Jokjok’s internet cafe.

Marketing Strategies

There are 3 marketing strategies for Jokjok’s Internet Café

Jokjok’s Internet Cafe first strategy focuses on attracting novice Internet users. Jokjok’s Internet Cafe plans on attracting these customers by:

• Providing a novice-friendly environment. Jokjok’s Internet Cafe will be staffed by knowledgeable employees focused on serving the customer’s needs.

• A customer service desk will always be manned. If a customer has any type of question or concern, a Jokjok’s Internet Cafe employee will always be available to assist.

• Jokjok’s Internet Cafe will offer introductory classes on the Internet and email. These classes will be designed to help novice users familiarize themselves with these key tools and other computer systems.

Jokjok’s Internet Cafe second strategy will be focused on attracting power Internet users who will provide an important function at Jokjok’s Internet Café. Jokjok’s Internet Cafe plans on attracting this type of customer by providing:

• The latest in computing technology. • Scanning and printing services.

• Access to powerful software applications.

The third strategy focuses on building a social environment for Jokjok’s Internet Cafe customers.

A social environment that features entertainment serves to attract customers who wouldn’t normally think about using the Internet. Once on location at Jokjok’s Internet Cafe, the customers who came to enjoy more standard entertainment offerings will soon realize the potential entertainment value of the Internet.

Pricing Structure

Internet and Computer Access

For casual customers, a price of P15 an hour is charged.

For printing

Black and White (laser) P5.00/page; Colour P5.00/page; Photo Printing P10.00/print

CD/DVD Burning is charged P20.00

Technical Aspect

Project Description

Jokjok’s internet café is a place where one can use a computer with Internetaccess, most for a fee, usually per hour or minute; it also provides other services like printing, CD/DVD burning and photocopying. It may serve as a regular café as well, with food and drinks being served.

Location

Sta. Ana Avenue in Davao City will be the best location for Jokjok’s Internet Café. It is located at the façade building of San Pedro College near the Baptist church. The place has been a center of three schools namely: Holy Cross of Davao College, San Pedro College and the Chinese School.

Because of the visibility of the place, this will add convenience for the targeted market encouraging more customers to drop by at Jokjok’s Internet Café.

Vicinity Map

Hardware needed Furniture and Fixtures

1. 20 x Client PCs 1. 20 clients’ chairs

2. 1 x PC Server 2. 20 computer tables 3. 1 x 24 ports 4. 1 x Modem 5. 1 x Printer 6. 1 x Scanner Appliances 1. 2 Air Conditioner 1.5 HP 2. 1 Coffee Heater 3. 1 Mini Refrigerator Floor Plan Manpower Requirement  Skilled

These positions require an adept people who will contribute their knowledge for the success of operation of jokjok’s internet café. Below is the list of positions under the skilled category.

 1 manager and 2 computer technicians

 Semi- Skilled

This category entails people who have the capacity to help in the business operation of the Jokjok internet café. They must have at least a good educational background in able to fulfill these positions.

 1 cashier and 1 security guard

 Unskilled

This category involves positions that will support the business activity of Jokjok’s Internet café. It does not require much of educational background as long as they can perform their work.

 3 service staffs and 1 janitor

Form of Organization

This business will be a sole proprietorship type of business. An individual proprietor who owns and manages the business and is responsible for all business transactions. The owner is also personally responsible for all debts and liabilities incurred by the business. A sole proprietor can own the business for any duration of time and sell it when he or she sees fit. As owner, a sole proprietor can even pass a business down to his or her heirs.

In this type of business, there are no specific business taxes paid by the company. The owner pays taxes on income from the business as part of his or her personal income tax payments.

Advantages of this type of business are the sole proprietor has complete control and decision-making power over the business; sale or transfer can take place at the discretion of the sole proprietor; no corporate tax payments minimal legal costs to forming a sole proprietorship; and few formal business requirements.

Organizational Structure

Felix T. Acosta Jr.CEO/ Owner

Manager

Computer Technician

Cashier

Service Staffs

Security Personnel\

Security Guard

Qualification and Functions of Manpower

Positions

Qualifications

Functions

Manager

Age 25-30 years old, Male/ Female

business or marketing-related degree or

equivalent professional qualification

experience in all aspects of developing and

maintaining marketing strategies

technical marketing skills



proven experience in customer and market

research



experience with relevant software

applications



Monitors, reviews and

reports on all marketing

activity and results

Determines and manage

the marketing budget

Delivers marketing

activity within agreed

budget



Develops pricing

strategy

Cashier

18- 23 years old, Male/Female



Must be at least a college level preferably

business related courses



With experience as a cashier for at least 6

months



Accepts payments,

Makes change,

Provides information,

Fills out forms and

Provides receipts for

goods and services.

Service Staffs

18-25 years old, Male



Must be at least a college level

With pleasing personality

Computer savvy



Supports the customer

needs at all times.

Attentive to the requests

and complains of

customers as well as

Helps in maintaining

cleanliness and

orderliness of the

place.

Computer

Technician



23-30 years old, Male/Female



College graduate preferably computer

related courses



Extensive and diversified Information.

Technology experienced.



In-depth knowledge on troubleshooting.

Strong communication and interpersonal

skills.



Tests and installs

computers hardware

systems,



Connects PCs in a

network and sets up

peripheral equipment,

hardware components

and allied devices.,

Checks

performance-related issues and

network support

problems,



Responds to complaints

and queries, provides

technical advice, and

solves employees’

technical problems by

phone or in person.

Security Guard

18-30 years old, Male



1 year experience as a security guard

A well disciplined and organized security

personnel from military background.



He must perform

security services for the

entire internet café

building.

Janitor

18-30 years old, Male



Must have personal skills to interact

effectively with tenants, staff and the public.

Must be able to work independently as well

as in a team environment.



Maintain a safe, clean,

living environment in

the building.

Project Cost Summary A. Capitalizable Expenditure

 Equipments (refer to schedule 1) P890, 000  Appliances (refer to schedule 2) 12,000  Furniture and Fixture (refer to schedule 3) 43,000

Total Capitalizable Expenditure : P945, 000

B. Direct Expenditure

 Pre- operating Expenses 49,000(refer schedule4)

C. Working Capital

Monthly Working Capital 70,056 (refer schedule 7)

Total Project Cost : P 1,064,056

A. Capitalizable Expenditure

This section represents the necessary assets for the entire operation of Jokjok’s Internet Café. Listed below are the items and their corresponding projected prices

Schedule 1

Equipments

Quantity

Unit Price

Total

Clients’ PCs

20

P35,000

P 700,000

PC Server

1

35,000

35,000

Modem

1

5,000

5,000

24 Ports Switch

1

130,000

130,000

Printer

1

10,000

10,000

Scanner

1

10,000

10,000

Total Amount :

P 890, 000

Schedule 2

Furniture and Fixtures

Quantity

Unit Price

Total

Plastic Chairs

20

P 300

P 6,000

Computer Tables

20

300

6,000

Total Amount :

P 12,000

Schedule 3

Appliances

Quantity

Unit Price

Total

Air Conditioner1.5 HP 2

P 15,000

P 30,000

Coffee Heater

1

3,000

3,000

Mini- Refrigerator

1

10,000

10,000

Total Amount :

P 43,000

Total Capitalizable Expenditure: P945, 000

B. Direct Expenditure

Below is the financial allotment for the following pre-operating activities of Jokjok’s Internet Café.

Schedule 4 Pre- operating Expenditure

Survey of the locationPreparation of FS

Sourcing of Funds

Acquisition of Business Permits and

Licenses

Acquisition of Materials and Equipments

P 3,00010,000

3,000

3,000

5,000

20,000

Renovation of Building

Acquisition of Manpower

5,000

Total :

P49,000

Schedule 5 Schedule of Depreciation

Assets

Usefu

l life

Qty Unit Price

Total

Annual

Depreciation

A. Equipments

Clients’ PCsPC

Server

24 Ports Switch

Modem

Printer

Scanner

55

5

5

5

5

201

1

1

1

1

P35,00035,000

130,000

5,000

10,000

10,000

P700,00035,000

130,000

5,000

10,000

10,000

P140,0007,000

26,000

1,000

2,000

2,000

Total

P890,000

P178,000

B. Furniture and

Fixture

Plastic

ChairsComputer

Tables

33

202

0

P300300

P6,0006,000

P2,0002,000

Total

P12,000

P4,000

C. Appliances

Air

ConditionerCoffe

e HeaterMini-

Refrigerator

525

211 P15,0003,00010,00

0

P30,0003,00010,00

0

P6,0001,5002,00

0

Total

P43,000

P9,500

Position

Monthly Salary SSS

PhilHealth Pag ibig

Total

ManagerComput

er

TechnicianCashi

er

Service Staff

Security

Personnel

Janitor

P9,0004,5003,5

00

3,000

2,500

2,000

P636318247.

3

212

176.7

141

P22510010

0

100

100

100

P10010010

0

100

100

100

P9,9615,0183,947

.3

3412

2,876.7

2,341.3

Total

P24,500

P1,731

P725

P600

P27,556

Schedule 7 Schedule of Monthly Working Capital

Salaries, SSS, PhilHealth, and Pag

ibigLight and Water

Telephone

Repairs and Maintenance

Rental

Merchandise Inventory

Supplies

Miscellaneous

P27, 55615,000

500

5,000

10,000

7,000

3,000

2,000

Total :

70,056

Internet AccessPrinting

CD/ DVD Burning

Refreshment

Drinks

Pastries

P85,00011,000

20,000

12,600

8,400

Total:

137,000

PROJECTED INCOME STATEMENT

Year 1 Year 2 Year 3

Revenue Service Income P1, 644,000 P1, 808,400 P1, 989,240 Less: Operating Expenses P840, 672 P924, 739 P1, 017,213 Direct Expenditure 49,000 Depreciation Expenses 191,500 191,500 191,500 Net Income before Tax 562,828 692,161 780,527 Less: Tax Provision (35%) 196,990 242,256 273,184 Net Income after Tax P365, 838 P449, 905 P507, 343 Note: Revenue and Expenses are increased by 10% every year and thereafter.

PROJECTED CASH FLOW STATEMENT

Cash Inflows Capital C. P1, 100,000 Revenue P1, 644,000 P1,808,400 P1, 989,240 Total P1, 100,000 P1, 644,000 P1, 808,400 P1, 989,240 Cash Outflows Capitalizable Expenditure P945, 000 Direct Expenditure 49,000 Operating Expenses P840, 672 P924, 739 P1, 017,213 Tax Payments 196,990 242,256 Profit Sharing Total P994, 000 P840, 672 P1, 121,729 P1, 259,469

Net Cash Flow P106, 000 P803,

328 P686, 671 P729, 771 Add: Cash Bal.

Beg. 106,000 909,328 1,595,999

Cash Bal. End. P106, 000 P909, 328 P1, 595,999 P2, 325,770

PROJECTED BALANCE SHEET

Assets Year 1 Year 2 Year 3

Cash P909, 328 P1, 595,999 P2, 325,770

Equipment 712,000 534,000 356,000

Furniture and Fixture 8,000 4,000 Appliances 33,500 24,000 14,500 Total Assets P1, 662,828 P2, 157,999 P2, 696,270

Owner’s Capital and Liabilities

Tax Payable P196, 990 P242, 256 P273, 184 Capital 1,100,000 1,100,000 1,100,000 Retained Earning 365,838 815,743

Add: Net Income 365,838 449,905 507,343

Total Capital and Liabilities P1, 662,828 P2, 157,999 P2, 696,270