ENGLISH-II BUSINESS PLAN PROJECT

Submitted To : MAM QURAT-UL-AIN

Submitted By : AREEJ (BSCS-F-19-20)
Department : Computer Science

TITLE:
JavaNet Internet Café
Internet Cafe Business Plan

Executive Summary:
JavaNet, in contrast to an ordinary cafe, will give an extraordinary gathering to
correspondence and amusement with the help of the Internet. JavaNet is the response
to an expanding request.

The open needs:

(1) access to the strategies for correspondence and volumes of data now accessible on
the Internet

(2) access at a cost they can bear the cost of and so that they aren't socially,
monetarily, or politically disconnected.

JavaNet will probably furnish the network with a social, instructive, engaging, air for
overall correspondence.

Marketing – Is there a market? How much can I sell?

Market Analysis Summary:
JavaNet is confronted with the energizing chance of being the principal mover in the
Eugene digital cafe advertise. The consistent popularity of espresso, joined with the
developing enthusiasm for the Internet, has been demonstrated to be a triumphant idea
in different markets and will create similar outcomes in Eugene.
Market Segmentation:
JavaNet’s clients can be partitioned into two gatherings.
The principal bunch knows about the Internet and wants a dynamic and welcoming air
where they can escape their workplaces or rooms and appreciate an incredible mug of
espresso.

The subsequent gathering is curious about with the Internet, yet, and is simply hanging
tight for the correct chance to enter the online network.

JavaNet's objective market falls anyplace between the ages of 18 and 50. This
incredibly wide scope of ages is because of the way that both espresso and the Internet
bid to an assortment of individuals. Notwithstanding these two general classifications,
JavaNet's objective market can be separated into increasingly explicit market
fragments. Most of these people are students and business individuals. See the Market
Analysis outline for additional points of interest.
Management – Does the management team have the skill required?

Management Summary:

The organization, being little in nature, requires a straightforward authoritative structure.

Usage of this authoritative structure requires the proprietor, to settle on the entirety of
the significant management choices in addition to observing all different business
exercises.

Personnel Plan:

The staff will consist of six part-time employees working thirty hours a week at $5.50 per
hour. In addition, one full-time technician (who is more technologically oriented to
handle minor terminal repairs/inquiries) will be employed to work forty hours a week at
$10.00 per hour. The three private investors, will not be included in management
decisions. This simple structure provides a great deal of flexibility and allows
communication to disperse quickly and directly. Because of these characteristics, there
are few coordination problems seen at JavaNet that are common within larger
organizational chains. This strategy will enable JavaNet to react quickly to changes in
the market.

Financial – Can the business make a profit?

Projected Profit and Loss:

Payroll Expense: The founder of JavaNet, will receive a salary of $24,000 in year one,
$26,400 in year two, and $29,040 in year three. JavaNet intends to hire six part-time
employees by the end of year one at $5.75/hour and a full-time technician at
$10.00/hour.

Rent Expense: JavaNet is leasing a 1700 square foot facility at $.85/sq. foot. The lease
agreement JavaNet signed specifies that we pay $2,000/month for a total of 36 months.
At the end of the third year, the lease is open for negotiations and JavaNet may or may
not re-sign the lease depending on the demands of the lessor.

Utilities Expense: As stated in the contract, the lessor is responsible for the payment of
utilities including gas, garbage disposal, and real estate taxes. The only utilities expense
that JavaNet must pay is the phone bill generated by fifteen phone lines; thirteen will be
dedicated to modems and two for business purposes. The basic monthly service charge
for each line is $17.29. The 13 lines used to connect the modems will make local calls
to the network resulting in a monthly charge of $224.77. The two additional lines used
for business communication will cost $34.58/month plus long-distance fees. JavaNet
assumes that it will not make more than $40.00/month in long distance calls. Therefore,
the total cost associated with the two business lines is estimated at $74.58/month and
the total phone expense at $299.35/month.

Marketing Expense: JavaNet will allocate $33,750 for promotional expenses over the
first year. These dollars will be used for advertising in local newspapers in order to build
consumer awareness.

Insurance Expense: JavaNet has allocated $1,440 for insurance for the first year. As
revenue increases in the second and third year of business, JavaNet intends to invest
more money for additional insurance coverage.

Depreciation: In depreciating our capital equipment, JavaNet used the Modified

Accelerated Cost Recovery Method. We depreciated our computers over a five-year
time period and our fixtures over seven years.

Taxes: JavaNet is an LLC and, as an entity, it is not taxed. However, there is a 15%
payroll burden.
Detailed Profit and Loss data is presented in the table below.