CHAPTER – 1
PROJECT AT A GLANCE
1.1 PROJECT BRIEF
This objective of this document is to provide information regarding investment opportunity for setting up an Internet Café, with focus on product differentiation i.e., providing some unique services (Video/Audio Chat, Web Developing) which are not offered by a typical Internet Café. The business can be established in any of the major cities of the country.
1.2 OBJECTIVES
For operating and establishing “SunShine Internet Café”, we are having some objectives.
To earn profit at less investments.
To satisfy our customers providing best quality service at effective price. Providing the service at low cost by providing the best quality at affordable
price.
To know a fair return on the capital invested by the owner
1.3 MISSION STATEMENT
To achieve the economies of scale to minimize costs while maximizing value to Customers.
To achieve leadership, core and functional competencies internet cafe business.
1.4 PROJECT RATIONALE
As the Internet spins a web of interconnectivity around the globe, as it grows literally by the hour, India is struggling, not to catch up but to keep from falling further and further behind. There has been a great increase in Indian content on the Internet. Many net entrepreneurs have been quick to realize the huge potential of the global market. Initially, most sites targeted the global Diaspora of Overseas Indians who had more access to the Internet, not to mention the credit cards that drive Net commerce. But there is a growing realization that the Net can reach the large and wealthy Indian Middle class. This group is rapidly plugging into the Net (still out of range for most people here) and there is increased use of credit cards. The Internet represents so much potential for India, and the demand for efficient Internet infrastructure is growing rapidly. This is where India has been failing. The demand has not yet been met efficiently and this represents an enormous barrier to business and societal development. the government, which has monopolized infrastructure development until recently, has recognized it must not hold back this development. They have opened the industry to private entrants and promised support. In practice, though, the vast bureaucracies that implement (theoretically) the government programs have moved sluggishly and ineffectively. For instance, the private ISPs that were allowed were initially required to acquire their bandwidth from VSNL which wanted a country wide monopoly on this lucrative sector. The result, new users signing up competed for increasingly limited bandwidth. Now the ISPs have been allowed to establish their own gateways but the effect has not yet been felt extensively. The DOT, responsible for providing phone lines to ISPs lagged way behind and the new providers are often left with far too few lines to service the increased demand. Lease lines are reduced, though still very expensive - approximately $1000 per month for a 64 Kpbs line. Businesses are relying more and more on aspects of the Internet. Email, for instance, is a huge asset to companies. And more and more companies are entering into web related business activities, like web site creation, software development, and various service oriented businesses that utilize the Net, like medical transcription or data processing for overseas companies. As the internet demographic becomes more mainstream India is going to a prime battleground for internet business over the next five years. the Internet Service Providers Association of India (ISPAI) was set up in 1998 with a mission to 'Promote Internet for the benefit of all'. ISPAI is the collective voice of the ISP fraternity and by extension the entire Internet community. Over the years ISPAI has helped influence, shape and mould the telecom policies, so that ISPs and entrepreneurs in the business of Internet can setup and grow their services in an environment that is supportive and enabling.
Here in India there is 32.1 million peoples are internet users. So there is a great opportunity for India. India's Internet population stands at 32.1 million and is all set to grow to a 100 million by 2007-08. Internet Users in last few years in India:
Internet Users 60000000 60000000 60000000 18481000 18481000 7000000 7000000 4500000 0 10000000 20000000 30000000 40000000 50000000 60000000 70000000 2001 2002 2003 2004 2005 2006 2007 2008 Years In tre n et U se rs . Source : http://www.indexmundi.com/g/g.aspx
1.5 PROPOSED CAPACITY
The proposed project is based on 20 computer systems. 1.6 TOTAL PROJECT COST
CHAPTER – 2
ORGANIZATIONAL STRUCTURE
2.1 PROPOSED FORM OF ORGANIZATION
There are various forms of organizations such as sole proprietorship, Partnership, Pvt. Ltd. Co., co-operative societies etc. Out of these the most suitable form of organization for this Internet Cafe can be partnership firm.
A partnership firm can be registered by two or more persons but not exceeding 20 persons. There are some advantages of this form of organization such as:-In sole proprietorship only limited funds, which an individual holds, can be invested while shares of a partner ship firm can be distributed among friends, relatives & considerably large organization with more investment can be set up. Partnership firms have a legal entity. It has perpetual succession & a common seal. The profits of a partner ship firm are distributed in the form of profit all its members, which reduces tax liability of a person. Had he been sole owner of the Firm, he would have to pay tax on the entire profit.
2.2 ABOUT THE MAIN PROMOTERS:
The company is being promoted by Mr. Priyank Shah, Mr. Umang Shah & Miss Parmar Jignasha
Mr. Priyank Shah has done B.com in Accounting & Financing. Then he
has done M.B.A. from one of the premier institute in North Gujarat i.e. SVIM, MBA collage Ahmedabad. These competencies help him in knowing the intricacies in Finance as in Administration Department & Head of the Plant. He has extensive knowledge of the real business as well as computer field. He knows computer software such as Capitaline, Prowess, SPSS, Foxpro, DOS, Tally, Newsclips, Capitastocks, Adobe software and many others software. He is the cogent and enthusiastic personality
Mr. Umang Shah has done B.Com. After completing his graduation, he
has done M.C.A. from one of the premier institute. These competencies help him in knowing the intricacies of this business in operator. He Knows computer software and languages like C, C++, VB, Java, Oracle etc. . He is the cogent and enthusiastic personality.
financed by her also. She has done B.Com. after completing graduation, she has done M.B.A with specialization of Marketing. She has been responsible for successfully coordinating the activities.
2.3 STEPS IN FORMING A PARTNERSHIP FIRM
The first step is to be taken for forming a partnership firm is to select a
few names of the proposed firm & put them in order of preference which will be finalized.
The second step is to propose. The documents should be signed by all
the three members of the proposed partnership firm & stamp by notary.
2.4 NAME OF THE ORGANIZATION
Name of our organization would be SunShine Cyber Cafe, which would be located at Opp. Mother Dairy, Near C.U.Shah College, Surendrangar-363001, Gujarat.
2.5 PROPOSED LOCATION
For the Proposed project following premises should be considered.
Proximity to the majority of people living are from middle income group Proximity to Private hostels setup in different areas of cities.
Low cost rent Rs. 4000/- per Marla High visibility.
2.6 SERVICES
Proposed internet café will provide full access to the resources of internet and other online services, printing, composing, scanning, fax. However or the sake of innovation and differentiation there would be a unique services of Video/Audio Chat. Just being a net café will not serve the purpose as business need to be more than a value addition process rather than a traditional net café, that is why after being operational for first two years there will be a facility added to the cart i.e. Web developing. It will not only be the value addition but also a business expansion tool.
2.7 DATE OF INCORPORATION:
The Company will be incorporated on 1st April, 2009, with registration number___________.
CHAPTER - 3
PROJECT BACKGROUND
3.1 PROJECT CONCEPT:
Sunshine Internet Cafe is being promoted by a cohesive team of three enthusiastic— Mr. Priyank Shah, Mr. Umang Shah & Miss Parmar Jignasha. The promoters of the company are well educated and command experience of the diversified areas in their projects.
The company will be incorporate to provide internet service, printing, faxing, net to call etc.. The promoters have a considerable knowledge in this field. Besides having technical and marketing set up, the promoters are financially sound to set up a project of this scale. All these factors combined together resulted into making this organization a reality.
3.2
SCHEDULE OF IMPLEMENTATION:Particulars of Activity Apr May June July Aug
1. Incorporation of Company ⇒⇒
2. Acquisition of Land ⇒⇒
3. Computer & other Equipments ⇒⇒⇒ ⇒⇒⇒ ⇒⇒ 4.Furniture & Fixtures ⇒⇒
5. Arrangement for Power ⇒⇒⇒ ⇒⇒
6. Internet Connections ⇒⇒⇒ ⇒⇒
9. Trial runs ⇒⇒
CRUCIAL FACTORS & STEPS IN DECISION MAKING FOR
INVESTMENT
4.1 KEY SUCCESS FACTORS
The common viability of this Internet café depends on the following factors:
Location of the project: Location of the project is of prime importance. If the project is set up in a location with high income group, the amount of traffic on the café will be less because majority of the people will have personal computers at their home. A project like this can really do well in places, where the majority of people living are from middle income group, who cannot afford a personal computer. Another location can be near private hostels setup in different areas of cities.
Unique Services: Majority of the internet cafes are operating on a similar kind of services. If the proposed setup is opened with a strategy of differentiation, it can be more successful i.e. video/Audio chat facility, for value addition, web development should also be started in the up coming years. In this feasibility web development services are initiated after two years of operations of net café.
Quality of Service: The most important factor for the success of the project is the quality of service provided to the customer, which includes customer’s privacy, speed of internet and the atmosphere in the café.
4.2 OT ANALYSIS OPPORTUNITIES
Growing population of daily Internet users. The importance of the Internet almost equals that of the telephone. As the population of daily Internet users increases, so will the need for the services of internet café.
THREATS
Rapidly falling cost of Internet access. The cost of access to the Internet for home users is dropping rapidly. Internet access may become so cheap and affordable that nobody will be willing to pay for access to it.
Emerging local competitors. Additional competitors are on the horizon, and we need to be prepared for their entry into the market.
A dependence on quickly changing technology. Internet Café is a place for people to experience the technology of the Internet. The technology that is the Internet changes rapidly.
Cost factor associated with keeping state-of-the-art hardware. Keeping up with the technology of the Internet is an expensive undertaking. Internet café needs to balance technology needs with the other needs of the business. One aspect of the business can't be sacrificed for the other.
4.3 KEY SUCCESS FACTORS
The commercial viability of this proposed Internet Café depends on the following factors:
Location of the project is of prime importance. If the project is set up in a location with high income group, the amount of traffic on the café will be less because majority of the people will have personal computers at their home. A project like this can really do well in places, where the majority of people living are from middle income group, who cannot afford a personal computer. Another location can be near private hostels setup in different areas of cities.
Majority of the Internet cafés are operating on a similar kind of services. If the proposed setup is opened with a strategy of differentiation, it can be more successful i.e. video chat facility, or a small snack café along with the Internet service. With more services provided under the same roof, more traffic can be generated in the Internet café.
The most important factor for the success of the project is the quality of service provided to the customer, which includes customer’s privacy, speed of Internet and the atmosphere in the café.
4.4 TARGET CUSTOMERS
The proposed project intends to cater to students and middle income group people Furthermore will be a magnet for local and traveling professionals who desire to work or
check their e-mail massages in friendly environment. Students
Business people Middle Income Groups Private Hostels
The large student population will become an important part of the Net Café customer base. The student population continues to grow with the success of the educational institutes. Evening entertainment, access to the Internet, and the up-scale ambiance will attract the students. Business community is growing rapidly with the addition of new companies day by day. Internet café will provide an
opportunity to local and traveling professionals to check their e-mails communications, this will be an attracting entity for the Middle income group and for the residents of private hostels as they do not have ccess to the internet at their living places.
4.5 MARKET NEED
As the popularity of internet continues to grow at an exponential rate, easy and affordable access is quickly becoming a necessity of life. Public wants access to the methods of communication and volumes of information now available on the internet, and access at a cost they can afford and in such a way that they are not socially, economically and politically isolated.
4.6 MARKET TRENDS
More than 90 percent of visitors of these cafes and clubs are youngsters and their sole objective to get to these is to get enjoyment.
4.7 KNOWLEDGEABLE AND FRIENDLY STAFF
Internet café is a service business. The success of the business depends upon the quality of the service offer and delivering the service consistently. So a knowledgeable friendly and eager to please staff, state-of-art computer hardware and a clear vision of the market need will help it succeed.
4.8 INTERNET CONNECTION
The major cost of an Internet café is the Internet connection. For providing better service,
the proposed project will use a High Band width connection for better speed as the project is going to provide service of video chat. It is recommended that the Internet connection should be taken from the best Internet service provider.
4.9 RECOMMENDED CONNECTION
If the project is set up in area, where DSL Internet connection is available, it is recommended to use DSL Internet connection instead of a any other Internet connection.
This will improve the speed of Internet, which will improve the performance of video chat and will also reduce the telephone expense.
4.10 MARKETING
players in the industry are following the strategy of low price with no differentiation, i.e., they are providing similar services and competing with each other on the basis of lower prices. It is recommended to follow a different strategy for the proposed project, which is the product differentiation. For this purpose, a special service of video chat facility is going to be offered by the proposed project. To build an image of a reliable and excellent Internet service, extensive promotion in the locality near the project will be done by use of print media and billboards.
CHAPTER – 5
TECHNICAL ANALYSIS
5.1 EQUIPMENT REQUIREMENT
The proposed project is going to be of 20 computer systems and the details of the. Equipment required for the project is given below:
EQUIPMENT REQUIREMENT DETAILS
Description No. Cost Per Unit(Rs.) Total Cost(Rs.) Computer System(P-4) 21 25000 525000 Hub 1 6000 6000 Computer Camera 21 1000 21000 UPS 1 60000 60000 Printer 1 28000 28000 Scanner 1 4000 4000 Modem DSL 1 8000 8000 Other Equipment
Networking Cable 720 ft 10 per ft 7200
Total Equipment Cost
659200
FURNITURE & FIXTURE DETAILS
Description No. Rate (Rs.) Total Cost(Rs.)
Computer Table & Cabins 21 5000 105000 Computer Chairs 21 2000 42000 Air Conditioner 2 25000 50000 Telephone Sets 2 1000 2000 Fax Machine 1 5000 5000 Carpet 900 sq ft 30 per sq ft 27000
Total Furniture &
Fixtures 231000
The project is based on Pentium-4 computer systems. Second hand systems are also available in the market at much lower prices. The reason for using the latest system is the new software coming in the market that requires more powerful systems which will provide better service to the customer. The prices of computer
systems vary with the introduction of new technology in the market.
5.2 HUMAN RESOURCE REQUIREMENT
The details of human resource requirement for the project are given in the following table:
Human Resource Requirement
Description No. Monthly
Salary(Rs) Annual Salary (Rs)
Network Administrator
1 8000 96000
Security Guard 1 4000 48000
Total Cost 144000
5.3 LAND & BUILDING REQUIREMENT
The details of the area required for the proposed project is given in the below table:
Covered Area requirement Details
Description Area Required (sq ft)
Computer Cabins 600
Sitting Area 100
Administrator Office 100
Free Space 100
Total Area Required 900
Recommended Mode
It is recommended that this project should be started in a rented building, as this will reduce the initial capital cost. The approximate area required is almost 4-marla space. The details of monthly rent are given below:
Rental Cost Details:
Description Monthly Rent (Rs) Annual Rent (Rs)
Approximate Rent @ Rs. 4000 per marla
16000 192000
5.4 UTILITIES REQUIREMENTS
Electricity Telephone
FINANCIAL PROJECTIONS
6.1 CAPITAL OUTLAY
Cost of Project
The total outlay on the project works out to Rs. 918200 and the margin money for working capital required to be brought in is Rs. 192000. Thus, the total cost of project works out to Rs.1110200, the details of which are given as under:
-Capital Expenditure Total Cost (Rs)
Equipment 659200
Furniture & Fixtures 231000
Pre – Operational Expense 28000
Total Capital Expenditure (A) 918200 Working Capital
Up Front Insurance Payment 0
Up Front Building Rent 192000
Total Working Capital (B) 192000 Total Investment in Project (A + B) 1110200
The working of the various major components of the cost estimates are based upon quotations and estimates obtained from suppliers. The preliminary and pre-operative expenses are taken on estimated basis.
Project Returns
Internal Rate Of Return 35%
NPV (Rs) 360258
Pay Back Period (Years) 2.36
6.2 MEANS OF FINANCE
For the purpose of this pre-feasibility study, it has been assumed that all the funding required for this project would be provided by the investor himself.
PARTICULAR RATIO AMOUNT Equity Shareholder Fund Priyank 1/3 370067 Umang 1/3 370067 Jignasha 1/3 370067 6.3 KEY ASSUMPTIONS FINANCIAL ASSUMPTIONS: Project Life(Years) 5 Equity 100% Discount Rate 20% PRODUCTION ASSUMPTIONS : NO. Of Computers 21
Total capacity per day(Hours) 240 Maximum Capacity Per Year 86400 Capacity Utilization (Year 1) % 70% Capacity Utilization (Year 1) hours 60480 Capacity Growth Rate Per Year % 5% Maximum capacity
Composing/pages/day
100
First year capacity 20%
Increase in composing capacity 5% First year capacity Web Developing
/web/year
5 Increase in W.D.per Year 2
OPERATING ASSUMPTIONS:
Shift per day 1
Hours Operational Per Shift 12 Days Operational Per Month 30 Days Operational Per Year 360
Pre-Operational Period 1
ECONOMY RELATED ASSUMPTIONS
Electricity Growth Rate 10%
Wages Growth rate 10%
Equipment Maintenance Growth Rate 2%
DEPRECIATION EXPENSE ASSUMPTIONS
Computer Equipment 20%
Furniture-FIxtures 20%
Pre-Operation 20%
EXPENSE ASSUMPTIONS
Internet Connection Charges Year 1 300000
Connection Type 512 KB
Connection Charges Per Month 25000 Composing Charges (%of Composing
sales)
50% Web Development Charges(%of Web
sales)
50% Internet connection charges(Decrease
Rate)
1% Equipment maintenance(%of internet
sales) 2%
Prepaid Building Rate(Months) 12
Rent Rate Per Marla 4000
Sq. ft in per marla 225
Rent Growth rate 10%
Insurance Rate(%of net fixed Assets) 2% Marketing &selling Expense(% of
sales)
2%
Taxes 20%
Printing expense(%of Printing Price) 50%
Fax(%Price of per Fax) 50%
Video / Audio Chat Price/hour 2 Internet Plain price/Hour 20
Plain internet Usage 60%
Video/Audio Usage 40%
Internet sales price decrease rate 0% W.A sales price per hour 22 Printing revenue(%of internet sales) 10% Fax revenue (% of internet sales) 3%
Composing price 20
Web price 10000
6.4.1 PROJECTED INCOME STATEMENT Particular 2010 2011 2012 2013 2014 Sales Internet Sales 1330560 1425600 1520640 1615680 1710720 Printing Revenue 133056 142560 152064 161568 171072 Fax Revenue 39917 42768 45619 48470 51322 Composing Revenue 144000 180000 216000 252000 288000 Web development Revenue 50000 70000 90000 Total Revenue 164753 3 179092 8 198432 3 214771 8 2311114 Cost Of Goods Sold
Internet Connection Charges 300000 297000 294030 291090 288179 Printing Charges 66528 71280 76032 80784 85536 composing charges 72000 90000 108000 126000 144000 Web Development 25000 35000 45000 Fax Charges 19958 21384 22810 24235 25661 Machine Maintenance 26612 28512 30413 32314 34214 Direct Electricity 237553 219766 229217 238668 248118 Total COGS 722651 727942 785502 828091 870708 Gross Profit/Loss 924882 106298 6 1198821 131962 7 1440406 Operating Expenses Payroll Admin 144000 158400 174240 191664 210830 Marketing&selling 26611 28512 30413 32314 34214 Amortization (Pre-Operation) 5600 5600 5600 5600 5600 Depreciation 178040 178040 178040 178040 178040 Total 354251 370552 388293 407618 428684 Operating Profit/loss 570631 692434 810528 912009 1011722 Non Operating Expenses
Financial Charges(Short Term) 26880 32341 34800 37554 40633 Financial Charges(long Term) 35291 29952 23866 16927 9017 Building rent 192000 211200 232320 255552 281107 Total 254171 273493 290986 310033 330757
Profit Before Tax 316460 418941 519542 601976 680965
Tax 63292 83788 103909 120396 136193
Profit After Tax 253168 335153 415633 481580 544772
Retained Earning(Year Beginning) 253168 588321 1003955 1485537 Retained Earning(year Ending) 253168 588321 100395 4 148553 5 2030309
Particular Year 0 2010 2011 2012 2013 2014 Assets
Cash 400678 875997 1425712 2034436 2698437
upfront Insurance 17804 14243 10682 7122 3561
Upfront Building Rent 192000 211200 232320 255552 281107 309218
Total Current
Assets 192000 629682 1122560 1691946 2322665 3011216
Gross Fixed Assets 890200 890200 890200 890200 890200 890200 Less:Accumulated
Depreciation 178040 356080 534120 712160 890200
Net Fixed Assets 890200 712160 534120 356080 178040 0
Pre - Operational 28000 22400 16800 11200 5600 0 Total Intangible Assets 28000 22400 16800 11200 5600 0 Total Assets 1110200 1364242 1673480 2059226 2506305 3011216 Liabilities Running Finance 192000 231010 248570 268242 290238 314789 Long Term Loan 252080 213944 170470 120909 64409 0
Total Liabilities 444080 444954 419040 389151 354647 314789 Equity
Paid up Capital 666120 666120 666120 666120 666120 666120 Retained Earning 0 253168 588320 1003955 1485537 2030307
Total 666120 919288 1254440 1670075 2151657 2696427 Total Liabilities &
Equity 1110200 1364242 1673480 2059226 2506304 3011216
Year O 2010 2011 2012 2013 2014 Operating Activities
Net Profit 253,168 335,152 415,635 481,582 544,770 Depriciation 178,040 178,040 178,040 178,040 178,040 Insurance amortization 5,600 5,600 5,600 5,600 5,600 Upfront Insurance Payment -17,804 3,561 3,561 3,561 3,561
Cash Provided By Operations
0 419,004 522,353 602,836 668,783 731,971
Financing Activities
Long term Debt principle Payment
-38,136 -43,475 -49,561 -56,500 -64,409 Building Rent Payment -192,000 -211,200 -232,320 -255,552 -281,10
7 -309,218 Building Rent Expense 192,000 211,200 232,320 255,552 281,107 Addition to Long term debt 252,080
Addition to Short Term Debt 192,000 39,010 17,560 19,672 21,995 24,551 Paid up Capital 666,120
Casfh Flow By Financing Activities
918,200 -18,326 -47,034 -53,121 -60,059 -67,969
Investing Activities
Capital expenditure -918,200
Cash Flow by Investing Activities
-918,200
Net Cash 0 400,678 475,319 549,715 608,724 664,002
Cash Balance brought Forward 0 0 400,678 875,997 1,425,7 12 2,034,4 36 Cash Balance 0 400,678 875,997 1,425,712 2,034,4 36 2,698,437
Cash carried Forward 0 400,678 875,997 1,425,712 2,034,4 36
2,698,4 37
6.4.4 RATIO ANALYSIS
1. GROSS PROFIT RATIO = Gross Profit / Net sales
Year 2010 2011 2012 2013 2014 Gross Profit 924882 1062986 1198821 1319627 1440406 Sales 1647533 1790928 1984323 2147718 2311114 Gross Profit Ratio(%) 56.14 59.35 60.41 61.44 62.33
Gross Profit Ratio(%)
56.14 59.35 60.41 61.44 62.33 52 54 56 58 60 62 64 2010 2011 2012 2013 2014 Years P er ce nt age
2. NET PROFIT RATIO = Net Profit / Sales
Year 2010 2011 2012 2013 2014
Net Profit 253168 335153 415633 481580 544772 Sales 1647533 1790928 1984323 2147718 2311114 Net Profit
Net Profit Ratio(% ) 15.37 18.71 20.95 22.42 23.57 0 5 10 15 20 25 2010 2011 2012 2013 2014 Years P e rc e n ta g e
3. ASSETS TURNOVER RATIO = Sales / Total Assets
Year 2010 2011 2012 2013 2014 Total Assets 1364242 1673480 2059226 2506305 3011216 Sales 1647533 1790928 1984323 2147718 2311114 Assets Turnover(times) 0.83 0.93 1.04 1.17 1.30
Total Assets Turnover(times)
0.83 0.93 1.04 1.17 1.3 0 0.2 0.4 0.6 0.8 1 1.2 1.4 2010 2011 2012 2013 2014 Years P e rc e nt a ge
Year 2010 2011 2012 2013 2014 PAT 253168 335153 415633 481580 544772 Owner’s Equity 919288 1254440 1670075 2151657 2696427 Return on Equity (%) 27.54 26.72 24.89 22.38 20.20
Return on Owner's Equity
27.54 26.72 24.89 22.38 20.2 0 5 10 15 20 25 30 2010 2011 2012 2013 2014 Years P erc ent age
5. CASH RATIO = Cash / Current Liabilities X 100
Year 2010 2011 2012 2013 2014
Cash 400678 875997 1425712 2034436 2698437 Current
Liabilities 231010 248570 268242 290238 314789 Cash Ratio(%) 173.45 352.41 531.50 700.95 857.22
Cash Ratio(%) 173.45 352.41 531.5 700.95 857.22 0 100 200 300 400 500 600 700 800 900 1000 2010 2011 2012 2013 2014 Years P erc en ta g e
CHAPTER – 7
CONCLUSION
After making this report we have faced real environment stress in real business. This research work has enabled us to gather a lot of information about the café business and we have been able to apply our classroom knowledge to the practical life very effectively.
In conclusion, from the above Projected Balance Sheet, Projected Income, Projected Cash Flow and other major financial ratio calculation it can be said that the project is very much feasible, having good profitability, conceived by the people already experienced in the similar field. Promoters are having expertise in marketing for decades. Individually each promoter is having a sound financial background. The group concerns are also in profitable existence for a number of years. The financial and economic feasibility of the project is well established on the basis of estimates and projections. All the assumptions and basis of estimation are on the principle of conservatism and prudence. Therefore, it can be concluded that the business has a high potential.
