Business Plan Template For Community Internet

Cafes
How To Use This Template
This template is not like a school examination, you do not have to answer it all in one sitting!
The questions are meant to spur you to doing some background research and constructive
thinking about your proposed Internet caf.
rite as much as you can! That is why this is a word!processing document "s o you can edit it
freely. #s you type in the blanks everything else will move down. $o not worry about formatting
too much. %ust make sure that you are coming up with answers that are accurate and detailed
enough for the &ob. The items in the tables are only suggestions, if you need an extra line in the
tables &ust use 'Table ! insert row( and type the income or expenditure item into the tables
provided here. If a table item does not apply in your situation )e.g. if you do not need a backup
generator for power* then &ust ignore it or use 'Table ! delete row(
Hint: +se another color text )e.g. red or blue* for your answers so they stand out and are easy to
read.
,ou will need a calculator to do the calculations of income and expenditure.
-e sure to use accurate local prices and conditions that apply in the area where you are
going to set up your community Internet caf. .rices for Internet access, electricity, rent etc
vary greatly around the world. This will require you to do some research.
This business plan is best done as a team effort ) say / or 0 people* with a competent local
1hristian businessman as an advisor.
INCOME / EXPENITU!E "HEET" #pa$es % & '(
Be sure to photocopy these pages )23 times each to do a one year pro&ection* and fill one out
for each month of operation as income and expenditure will vary from month to month due to
social and business conditions. $o a separate income report and expenditure report for each
month of the first year of operation. $o 45T &ust do one and multiply by twelve! #llow four
months for a start!up period before you are in full operation and getting full income.
)**ompanyin$ Business Plannin$ o*uments )see
http677www.cybermissions.org7icafe7cd7*
The Pro+e*t is*ernment worksheet should be done prior to doing this business plan. It asks
basic questions about the general viability of your pro&ect.
The worksheet How To o )n )nalysis Of "u**essful Internet Cafes In ,our )rea should
be done as part of the research phase of this business plan and will help you find out the right
prices and the equipment and marketing ideas that work best in your locality.
OB-ECTI.E"
hat are your three )or so* main ob&ectives in starting the Internet caf8
hat do you hope to achieve8
hat spiritual outcomes do you wish to achieve8
9ow much money do you want to make8
ho do you want to be involved8
here do you want to set up your Internet caf8
hen do you want to have it up and running8
9ow long do you want to operate it for8
/OC)TION
1an you locate the Internet caf near a school, college, hospital or business district8
Is locating the icafe in a mall a possibility8
INTE!NET )CCE""
Is there Internet access in your area8
hat kind7s8 ! $:;, cable, dial!up, satellite, microwave link, <9=,>.
9ow much bandwidth is available8
9ow much does it cost8
!E0U/)TO!,
9ow long does it take to get a business license in your area8 9ow much does it cost8
If you are importing the computers " what is 1ustoms like8 $o you have someone who can
help you with 1ustoms8
9o w will you comply with the relevant tax laws in your area8
#re there other laws 7 regulations that you need to be aware of8
PEOP/E
$o you have a good computer technician who can help you to set up and maintain the Internet
caf8
$o you have a good entrepreneur 7 businessman who can help you make the Internet caf
profitable8
$o you have a personal evangelist 7 church worker7 community worker who can make the icafe
transformational in the community8
$o you have high level church and business leaders who can supervise you and assist you8
#re there people committed believers in %esus 1hrist8
#re the wise and confidential8
#re they committed to your Internet caf pro&ect for the long term8
!E"OU!CE"
here can you get resources for free6 computers, software, furniture, monitors >. 8
1an you get a local church involved8 1an you get some donors involved8
?ake up a list of people you know that might be able to help8 $o these people also know other
people who might be able to help8
#re there government agencies that can help you8
1an you get grant funding8
1an you borrow money at @ero )or low* interest8
"T)!T UP CO"T"
Hint: +se the 1omments column to list ways you can save money ! such as people who might
donate the item or a store that is selling it cheaply at the moment.
ITEM CO"T COMMENT
Aent 7 -ond
Bovernment licenses
.utting on electricity
.utting on Internet
Installing a phone line
.ower back!up 7 Benerator8
+.: 7 surge protectors
:erver
1omputers 7 thin clients
;1$ monitors
1abling, hub, networking
Ceyboards, mice, mousepads
Dxtra A#? needed
9eadsets
ebcams
;1$ pro&ector )for training*
indows 3EE/ server
software
5ther software licenses
1$ 7 $<$ burner
ireless Aouter
;aser printer
?ultifunction printer 7scanner
-ackup " external 9$$
=urniture )tables, chairs, etc.*
$cor 7 wallpaper7 paint
1offee making equipment
5ther accessories
5ther costs88
TOT)/
INCOME PE! MONTH
ITEM Pri*e Char$e1 )mount "ol1
Per ay
In*ome Per
ay
)multiply price
charged by
amount sold*
In*ome Per
Month
)multiply income
per day by days
open per month*
Internet )**ess
/aser Printin$
Color Printin$
Photo Printin$
.OIP / "2ype
3e4*am use
"*annin$
Photo*opyin$
C /.
Burnin$
Coffee
"na*2s
Hea1sets
Floppy is2s
Computer
Classes
Other Classes
Ministry
onations
TOT)/ INCOME
C)/CU/)TIN0 INTE!NET INCOME
9ow many computers will be available for customers to use8
5n average, how full do you expect the Internet caf to be " 3FG, 0EG, FEG, HEG, IFG, JEG,
2EEG8
9ow much will you charge per hour8
9ow many hours per day will you be open8
9ow many days per month will you be open8
4ow multiply these numbers e.g if 3E computers, HEG occupancy, K2 per hour, 23 hours per
day, 30 days per month )H days a week* L 3E x E.H M K2 x 23 x 30 L K/0FH per month )you can
state the percentage occupancy as a decimal e.g 60% = 60/100 = 0.6 *
Cal*ulatin$ Other sour*es Of !e5enue )charging standard commercial prices in your area*
NFormula: amount used per day x cost of service x days open per month
e.g. ;aser .rinting6 3EE pages a day x 2Ec per page x 30 days open per month L K0OE per
month
e.g. 1omputer classes6 2E students per day x KF.EE each x 30 days L K23EE per month
e.g. 1$ -urning6 O 1$s per day x K/.EE each x 30 days LKFIH per month
MONTH/, EXPEN"E" / O.E!HE)" )Formula6 1ost .er Item x #mount +sed .er ?onth
L 1ost .er ?onth*
Hint: -e sure to use your local data and prices here " do some research first, even ring up companies
listed in the telephone book and ask them!
:ome items will have monthly bills e.g. Internet access, electricity, if so &ust enter the amount in the right
hand 1ost .er ?onth column and ignore the middle columns. =requently used items such as paper might
be easiest to estimate as amount used per day. 5ther items are sometimes easier to estimate on a
monthly basis. %ust use the middle columns as you feel most comfortable doing.
$epreciation should be /G of the value of your assets per month. 1omputer repairs " estimate what you
will need over a year and divide by 23. .rofessional fees L accountant, book!keeper, lawyer etc. =eel free
to add or remove items on the list as relevant to your situation.
ITEM Cost Per Item (No. Used Per Day) No. Used Per Month Cost Per Month
Aent
Internet access
Telephone 7 =ax
Dlectricity
ater
Bas
Transport
1omputer Aepairs
$epreciation
Interest on ;oans
.rofessional =ees
?arketing 7 =lyers
:oftware licenses
<irus checking
.aper
1$s 7 $<$s
;aser Toner
.rinter Ink
5ffice bits P
pieces
1offee
=ood 7 :nacks
5ther Items
Bovernment =ees
?embership fees
:ales Tax 7 B:T
ages
Income Tax
9ealth coverage
5ther benefits
TOT)/
P!OFIT & /O"" "tatement
2. Take the set up costs you calculated on page 0 and put them in the first E6pen1iture
column and in the first Profit / /oss column )as your income at start up is @ero*
3. Dnter the month by month income you calculated on page F under In*ome in the
relevant ?onthly 5peration section.
/. Dnter the month by month expenditures you calculated on page H under E6pen1iture in
the ?onthly 5peration column
0. =or each month under ?54T9;, 5.DA#TI54, do )Income minus Dxpenditure* to get
the profit or loss for that month and enter it in the right!hand Profit//oss column
ITEM INCOME EXPENITU!E P!OFIT / /O""
"ET UP CO"T"
)page 0*
MONTH/,
OPE!)TION
2
st
3
nd
/
rd
0
th
F
th
H
th
I
th
O
th
J
th
2E
th
22
th
23
th
TOT)/
C)"H F/O3 "T)TEMENT #rea1 *arefully77(
2. # cash flow statement helps you see how your total amount of cash is going and especially if you
are going to run out of cash at any point in the year.
3. 1ash is like oxygen for a business and you need it to survive.
/. If you run out of cash you will need to borrow money to make it through.
0. In the first section enter your 1ash In -ank #t :tart )the mount you have to invest at the
beginning* then subtract the set up costs from it. This will give you the amount of cash on hand
you have to commence operation
F. 1ut and .aste the .rofit7;oss monthly figures from page I )right hand column for each month, do
not include total or setup costs sections*, into the monthly Profit//oss section on the table below.
H. =or the 2
st
month the formula is to take 1ash 5n 9and To 1ommence 5perations and then add
that monthQs profit )or subtract that monthQs loss* from it* this will give you the cash on hand at the
end of the first month.
I. =or instance if your 1ash 5n 9and To 1ommence 5perations is K3FEE and you make a K2EEE
loss in the first month, you then have K2FEE cash on hand at the end of the month, 5A if your
1ash 5n 9and To 1ommence 5perations is K3FEE and you make a KFEE profit in the first month
you have K/EEE cash in hand at the end of the first month.
O. =or each subsequent month &ust add the profit )or subtract the loss* from the previous months
figure6 e.g. 3
nd
month cash in hand L 2
st
month cash in hand plus profit for second month
J. $o not total up the cash on hand column, it is a running total and does not need to be added up
at the end.
)MOUNT C)"H ON H)N COMMENT"
"T)!TIN0 OUT
1#:9 I4 -#4C #T
:T#AT
?inus :DT +. 15:T:
1ash in 9and to
1ommence 5perations
MONTH P!OFIT / /O"" C)"H ON H)N *ont81
2
st
3
nd
/
rd
0
th
F
th
H
th
I
th
O
th
J
th
2E
th
22
th
23
th
Un1erstan1in$ The Cash Flow !eport
The 1ash =low :tatement shows whether you will have a cash flow crisis )run out of money*
during the start up phase before you become profitable.
2. If you have plenty of cash in bank at start you will be 5C, it will see you through.
3. The extra amount you might need is the largest cash flow deficit that you pro&ect
occurring.
/. :o if the largest cash flow deficit you foresee a K2FEE cash flow deficit in month four, this
is the extra amount you should raise at the start to ensure you do not get below @ero in
month four.
0. 5therwise you have two alternatives6 a* reduce costs or b* increase revenue
F. Bo through your business plan and find how you can reduce costs
H. Bo through your business plan and find ways to add sources of revenue
I. In a worst case scenario you may need to borrow money. This should be avoided if at all
possible.
Mar2etin$ Plan
9ow will you get customers to come to your Internet caf8
9ow will you get customers to like the service in your Internet caf8
9ow will you maintain customer loyalty and keep them coming back to your Internet caf8
9ow can you use free 7 low cost methods to get the word out8
Me1ia ,es No May4
e
Creati5e I1ea Cost
ord of ?outh
4etworking
=lyers
.osters
:hop :ignage
?embership cards
$iscount 1ards
4ewspaper ads
?aga@ine ads
Aadio ads
ebsite
Boogle #ds
-e sure to enter these costs in the marketing7=lyers line of ?onthly Dxpenditure )page H*
$iscounts are an absolute last resort as they can eat away at your profit margins and
cash flow
1ompete on quality not on price " a great product 7service is the best promotional tool!
:tart with some initial paid publicity then use word of mouth 7 organic growth
$evelop a professional looking logo and shop sign to start with.