Mariano Marcos State University

COLLEGE OF BUSINESS, ECONOMICS AND ACCOUNTANCY

City of Batac, Ilocos Norte

Business Plan

bYtEs Internet and Repair Shop

Group 4
Saludares, Ethel Jane
Pronton, Sheena May
Sugui, Fernando III
Ragutero, Shayna
Rabena, Jan Mari
Ruiz, Rustom Jay
Ordonia, Jovelyn
Timbol, Gerardo
BS Accountancy III

Second Semester, A.Y. 2015-2016

INTRODUCTION
Todays age could be traced that what everyone needs, most often if
not always and some if not all, is a computer. It is because computers are
usually the ones who let people explore and unlock curiosity in certain things
most often left unchecked. Taking a macro perspective on the importance or
the function of the computer and other facilities that fall on it, society is in
need with them beginning from the internet connection, computer apps like
Microsoft Office packages, programs for commercial and professional use,
games and entertainment, up to services like printing, scanning, photo
editing and the like. It is important hence in a household to have one but of
course its not humanly cool --- just true at some point.
Businesswise, to address that uncool situation, an internet caf
commerce is ideal. An avenue where a costly personal computer set with
complete associate devices is a friendly way in carrying out the burden of
having a PC and an internet connection at home.
Therefore, this paper is written by the group to discuss their common
interest of identifying paths and aftermaths of putting up an internet caf
business. The paper includes (1) the customers profile, (2) the competitors
profile, (3) the location plan (4) the production plan, (5) the organizational
plan, and (6) the financial plan.
Furthermore, the paper's main challenge is to come up with the
business with three hundred thousand pesos (P300,000.00) as it's starting
capital which will provide an upshot of a million/s after five years.

CUSTOMERS PROFILE
The 101 bYtEs Internet and Repair Shop is preparing to initiate its
service and is very interested in penetrating the market at its finest.
Accordingly, the target market of the shop is a group of customers of any
ages, especially the students who are believed to be the top patrons. These
customers represent a demographic group of people who are mostly in need
of computers to do some research works and other school necessities as it
provides many possible pathways of information with just a single click. They
also like to enjoy and seek for social belongingness at the same time.

The establishment of such is beneficial to the users because it is one of

the most convenient ways to do such things mentioned previously. It is also
very helpful to them as the shop will also provide other services like
computer repairs other than using the internet to do different stuffs.
Summing up, this plan clearly specifies and describes the target
markets toward which the 101 bYtEs and Repair Shop will aim its efforts. By
leveraging the benefits of liberalization and integration of the market, it will
seek to serve the students mostly. This segmentation of the market will
surely make certain profitability.

COMPETITORS PROFILE
As computer shops or internet cafes emerging as common business
establishments around a locality, many owners, if not all, tend to use some
strategies and techniques to maintain and attract more customers. This is so
because these kinds of businesses are now already competing to each other
to gain more profit in which, in order to do such, they will need a lot of
customers.
Some of the strategies that computer shop owners are implementing
include:
1. Overtime operations which usually can be until midnight.
2. Giving some discount for extending time in the usage of computer (e.g.
20 for every hour, 35 for every 2 hours, and 60 for every 4 hours).
3. Installing a variety of trending computer games to attract gamers.
4. Having a high-speed internet connection and better quality or up-todate computers.
5. Using high standard printers and bond papers which printing price can
be cheaper.
6. Accepting encoding works such as a research paper of a student,
making invitations and letters and others.
7. Having a well-ventilated computer shop for the pleasure of a customer.
8. Offering a lot of computer services such as computer reformatting,
updating, and repairing, installing anti-virus, games, and other
applications, and disc burning.
9. Sale of computer parts such as motherboards, keyboards, and
computer screens, disks, flash drives, printer inks, and other computer
supplies.

10.
Some computer shops advertise their business through
tarpaulins, advocating good business ethics and having a pleasing
personality by the owner or the manager or an employee.
With this enumerated competitors profile, the 101 bYtEs and Repair
can adjust to certain circumstances so that it will not be outmatched by
others. The competitors profile can benefit the business in which it enables
an owner to make decisions on how to counter such techniques by other
computer establishments.

PRODUCTION PLAN
Our computer shop is located in #1 Valdez, San Marcelino St., Batac
City, near schools such as Batac Junior College, Batac Institute, Immaculate
Concepcion Academy and Mariano Marcos Memorial Elementary School. We
will open every day from Monday to Sunday for the purpose of earning more
profit. Based on the number of customers, our computer shop intends to
extend the service.
We will establish our business with a capital of Php 300 000 which is
allotted to the following: computer desktops, printers, headsets, computer
tables and other expenses. With the capital we have, we can be able to
provide 31 computer units which cost Php 6 700 each amounting to Php 207
700; 31 headsets, Php 140 each with a total of Php 4340; 5 3-in-1 printers
which cost Php 2 500 each, a total of Php 12 500; 15 2-in-1 computer tables,
Php 2 000 each with the total amount of Php 30 000; and other expenses
which is comprised of legal fees, advanced rental payment etc. It should be
noted that both the computer desktops and printers are already used for one
year. The prices are based on OLX. Upon the operation of the business, there
are still necessary expenses that are incurred, such as electricity, internet
connection, rent, supplies and materials, and salaries. The monthly
electricity bill is estimated to the amount of Php 7 000 and a total of Php 84
000 a year. The internet connection will cost Php 5 000 a month and Php 60
000 a year. The monthly rent expense is Php 7 500 and Php 90 000 a year.
The group decided to rent a space rather than to build our own for it is less
costly. The supplies and materials which is needed in the printing and
repairing has an estimated monthly cost of Php 7 500 and a total of Php 90
000 a year. All in all, the projected cash outflows that will be incurred has a
total of Php 384 000. Taking into consideration the depreciation expense of

the computer units and printers which totaled to Php 55 050, the total cash
outflows will be Php 439 050. From the nature of our business, it is difficult to
determine the exact number of product to be produced. However from the
estimates of an accountant, it has been forecasted that our computer shop
will be able to generate a total income of Php 2 028 000 comprising an
income of Php 90 000 a month totaling to Php 1 080 000 from internet
services, Php 70 000 a month amounting to Php 840 000 from printing, and
Php 9000 per month, a total of Php 108 000 from repair services. For every
year, we can earn an income with a total of Php 936 000 every year
exclusive of the expenses.

ORGANIZATIONAL PLAN
The owner has 6 years of experience in the fields of technical support,
networking, and computer training and repair. He has also spent the last
three years as the manager of a custom computer building and repair store,
and understands the computer needs of small businesses. However, he
decided to put up a computer cafe due to severe stress that he had
experienced in his previous jobs and due to the increased demand in the
cyber business. The said cafe will also provide computer repairs and
services.
The cafe will be registered as a sole proprietorship and will be managed
by him as the manager, along with his wife as his assistant. They will hire a
computer technician that will cater the needs of users with malfunctioning
computers or other office equipments. Accordingly, the functions of the
personnels are as follows:

POSITION

FUNCTION

Manager/Owner

Establishes store policies and

procedures
for
strict
implementation

 Execute final decisions on all

matters
pertaining
to
the
operation
and
management
functions of the business
Audit individual computers to
check for proper system
Upgrade existing hardware and
software
Act as a technical resource in
order to assist users with
resolving computer issues
Assistant Manager

Maintain inventory of supplies in

the shop
Assist customers in their needs
Maintain
cleanliness
and
orderliness
Help
conserve
utility
consumption
Logging the customers hours
consumed
Maintain
documentation
of
technical
maintenance
procedures carried out
Assist in preparing, maintaining,
and upholding procedures for
logging,
reporting,
and
statistically
monitoring
PC
performance

Computer Technician

In-charge
in
computer
maintenance
Provide
information
and/or
technical aspect
Install and configure computer
workstations and local area
networks, operate them, monitor
their performances, diagnose

and solve their problems

Upgrade existing hardware and
software
Visit home users to set up their
PCs or fix faulty computers and
other office equipment (known
as peripherals)

FINANCIAL PLAN
Cost of Investment
Computer Desktop
Printer (3-in-1)
Headset
Computer Table (2-in-1)
Others (legal fees, advance rental
payment, etc)

Cost
6,700
2,500
140
2,000

No. of Items
31
5
31
15

Total
207,700
12,500
4,340
30,000
45,460

300,000
*Computer Desktops are already used for 1 year as well as the printers.
Projected Cash Outflows
Electricity
Internet
Connection
Rent
Supplies
Materials
Salaries

Cost/month
7,000
5,000
7,500
and 5,000
7,500

Total Cost/ yr
84,000
60,000
90,000
60,000
90,000
384,000

Depreciation Expense

Computer
Desktop
Printer

Depreciation
Expense/ yr
1,675

No. of Items

Total Cost/yr

31

51,925

625

3,125

55,050
Projected Income
Internet
Printing
Repair Services

Monthly Income
45,000
24,000
9,000

Total Income/yr
540,000
288,000
108,000
936,000

Service Income
Less: Cash Outflows (including depreciation expense)
Income before Tax
Income Tax
Net Income
Add Back: Depreciation Expense
ANNUAL NET CASH INFLOWS

Cost of Investment
Divide: Annual Net Cash Inflows
Payback Period
*Net Cash Inflows after 5 years = 2,014,575

936,000
439,050
496,950
149,085
347,865
55,050
402,915
300,000
402,91
5
0.75
year/9
months