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. $o not
worry about formatting too much. %ust make sure that you are coming up with
answers that are accurate and detailed enough for the &ob. The items in the tables
are only suggestions, if you need an extra line in the tables &ust use 'Table ! insert
row( and type the income or expenditure item into the tables provided here. If a
table item does not apply in your situation )e.g. if you do not need a backup
generator for power* then &ust ignore it or use 'Table ! delete row(
Hint: +se another color text )e.g. red or blue* for your answers so they stand out
and are easy to read.
,ou will need a calculator to do the calculations of income and expenditure.
-e sure to use accurate local prices and conditions that apply in the area where
you are going to set up your community Internet caf. .rices for Internet access,
electricity, rent etc vary greatly around the world. This will require you to do some
research.
This business plan is best done as a team e/ort ) say 0 or 1 people* with a
competent local 2hristian businessman as an advisor.
INCOME / EXPENITU!E "HEET" #pa$es % & '(
Be sure to photocopy these pages )34 times each to do a one year pro&ection*
and 5ll 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 5rst year of operation. $o 67T
&ust do one and multiply by twelve! #llow four months for a start!up period before
you are in full operation and getting full income.
)**ompanyin$ Business Plannin$ o*uments )see
http899www.cybermissions.org9icafe9cd9*
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 5nd 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 caf:
hat do you hope to achieve:
hat spiritual outcomes do you wish to achieve:
;ow much money do you want to make:
ho do you want to be involved:
here do you want to set up your Internet caf:
hen do you want to have it up and running:
;ow long do you want to operate it for:
/OC)TION
2an you locate the Internet caf near a school, college, hospital or business district:
Is locating the icafe in a mall a possibility:
INTE!NET )CCE""
Is there Internet access in your area:
hat kind9s: ! $<=, cable, dial!up, satellite, microwave link, >;?,@.
;ow much bandwidth is available:
;ow much does it cost:
!E0U/)TO!,
;ow long does it take to get a business license in your area: ;ow much does it
cost:
If you are importing the computers " what is 2ustoms like: $o you have someone
who can help you with 2ustoms:
;o w will you comply with the relevant tax laws in your area:
#re there other laws 9 regulations that you need to be aware of:
PEOP/E
$o you have a good computer technician who can help you to set up and maintain
the Internet caf:
$o you have a good entrepreneur 9 businessman who can help you make the
Internet caf pro5table:
$o you have a personal evangelist 9 church worker9 community worker who can
make the icafe transformational in the community:
$o you have high level church and business leaders who can supervise you and
assist you:
#re there people committed believers in %esus 2hrist:
#re the wise and con5dential:
#re they committed to your Internet caf pro&ect for the long term:
!E"OU!CE"
here can you get resources for free8 computers, software, furniture, monitors @. :
2an you get a local church involved: 2an you get some donors involved:
Aake up a list of people you know that might be able to help: $o these people also
know other people who might be able to help:
#re there government agencies that can help you:
2an you get grant funding:
2an you borrow money at Bero )or low* interest:
"T)!T UP CO"T"
Hint: +se the 2omments column to list ways you can save money ! such as people
who might donate the item or a store that is selling it cheaply at the moment.
ITEM CO"T COMMENT
Cent 9 -ond
Dovernment licenses
.utting on electricity
.utting on Internet
Installing a phone line
.ower back!up 9
Denerator:
+.< 9 surge protectors
<erver
2omputers 9 thin clients
=2$ monitors
2abling, hub, networking
Eeyboards, mice,
mousepads
Fxtra C#A needed
;eadsets
ebcams
=2$ pro&ector )for training*
indows 4GG0 server
software
7ther software licenses
2$ 9 $>$ burner
ireless Couter
=aser printer
Aultifunction printer
9scanner
-ackup " external ;$$
?urniture )tables, chairs,
etc.*
$cor 9 wallpaper9 paint
2o/ee making equipment
7ther accessories
7ther costs::
TOT)/
INCOME PE! MONTH
ITEM Pri*e
Char$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$
Co5ee
"na*2s
Hea1sets
Floppy is2s
Computer
Classes
Other Classes
Ministry
onations
TOT)/
INCOME
C)/CU/)TIN0 INTE!NET INCOME
;ow many computers will be available for customers to use:
7n average, how full do you expect the Internet caf to be " 4HI, 1GI, HGI, JGI,
KHI, LGI, 3GGI:
;ow much will you charge per hour:
;ow many hours per day will you be open:
;ow many days per month will you be open:
6ow multiply these numbers e.g if 4G computers, JGI occupancy, M3 per hour, 34
hours per day, 41 days per month )J days a week* N 4G x G.J O M3 x 34 x 41 N
M01HJ per month )you can state the percentage occupancy as a decimal e.g 60%
= 60/100 = 0.6 *
Cal*ulatin$ Other sour*es Of !e6enue )charging standard commercial prices
in your area*
PFormula: amount used per day x cost of service x days open per month
e.g. =aser .rinting8 4GG pages a day x 3Gc per page x 41 days open per month N
M1QG per month
e.g. 2omputer classes8 3G students per day x MH.GG each x 41 days N M34GG per
month
e.g. 2$ -urning8 Q 2$s per day x M0.GG each x 41 days NMHKJ per month
MONTH/, EXPEN"E" / O.E!HE)" )Formula8 2ost .er Item x #mount +sed
.er Aonth N 2ost .er Aonth*
Hint: -e sure to use your local data and prices here " do some research 5rst, 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 2ost .er Aonth column and ignore the middle columns. ?requently
used items such as paper might be easiest to estimate as amount used per day. 7ther items
are sometimes easier to estimate on a monthly basis. %ust use the middle columns as you
feel most comfortable doing.
$epreciation should be 0I of the value of your assets per month. 2omputer repairs "
estimate what you will need over a year and divide by 34. .rofessional fees N 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
Cent
Internet access
Telephone 9 ?ax
Flectricity
ater
Das
Transport
2omputer
Cepairs
$epreciation
Interest on
=oans
.rofessional
?ees
Aarketing 9
?lyers
<oftware
licenses
>irus checking
.aper
2$s 9 $>$s
=aser Toner
.rinter Ink
7Rce bits S
pieces
2o/ee
?ood 9 <nacks
7ther Items
Dovernment
?ees
Aembership
fees
<ales Tax 9 D<T
ages
Income Tax
;ealth coverage
7ther bene5ts
TOT)/
P!OFIT & /O"" "tatement
3. Take the set up costs you calculated on page 1 and put them in the 5rst
E7pen1iture column and in the 5rst Pro8t / /oss column )as your income at
start up is Bero*
4. Fnter the month by month income you calculated on page H under In*ome in
the relevant Aonthly 7peration section.
0. Fnter the month by month expenditures you calculated on page J under
E7pen1iture in the Aonthly 7peration column
1. ?or each month under A76T;=, 7.FC#TI76, do )Income minus
Fxpenditure* to get the pro5t or loss for that month and enter it in the right!
hand Pro8t//oss column
ITEM INCOME EXPENITU!E P!OFIT / /O""
"ET UP CO"T"
)page 1*
MONTH/,
OPE!)TION
3
st
4
nd
0
rd
1
th
H
th
J
th
K
th
Q
th
L
th
3G
th
33
th
34
th
TOT)/
C)"H F/O3 "T)TEMENT #rea1 *arefully99(
3. # cash Tow 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.
4. 2ash is like oxygen for a business and you need it to survive.
0. If you run out of cash you will need to borrow money to make it through.
1. In the 5rst section enter your 2ash 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
H. 2ut and .aste the .ro5t9=oss monthly 5gures from page K )right hand column for
each month, do not include total or setup costs sections*, into the monthly
Pro8t//oss section on the table below.
J. ?or the 3
st
month the formula is to take 2ash 7n ;and To 2ommence 7perations and
then add that monthUs pro5t )or subtract that monthUs loss* from it* this will give you
the cash on hand at the end of the 5rst month.
K. ?or instance if your 2ash 7n ;and To 2ommence 7perations is M4HGG and you make
a M3GGG loss in the 5rst month, you then have M3HGG cash on hand at the end of the
month, 7C if your 2ash 7n ;and To 2ommence 7perations is M4HGG and you make a
MHGG pro5t in the 5rst month you have M0GGG cash in hand at the end of the 5rst
month.
Q. ?or each subsequent month &ust add the pro5t )or subtract the loss* from the
previous months 5gure8 e.g. 4
nd
month cash in hand N 3
st
month cash in hand plus
pro5t for second month
L. $o not total up the cash on hand column, it is a running total and does not need to
be added up at the end.
)MOUNT C)"H ON H)N COMMENT"
"T)!TIN0 OUT
2#<; I6 -#6E #T
<T#CT
Ainus <FT +. 27<T<
2ash in ;and to
2ommence
7perations
MONTH P!OFIT / /O"" C)"H ON H)N
*ont:1
3
st
4
nd
0
rd
1
th
H
th
J
th
K
th
Q
th
L
th
3G
th
33
th
34
th
Un1erstan1in$ The Cash Flow !eport
The 2ash ?low <tatement shows whether you will have a cash Tow crisis )run out of
money* during the start up phase before you become pro5table.
3. If you have plenty of cash in bank at start you will be 7E, it will see you
through.
4. The extra amount you might need is the largest cash Tow de5cit that you
pro&ect occurring.
0. <o if the largest cash Tow de5cit you foresee a M3HGG cash Tow de5cit in
month four, this is the extra amount you should raise at the start to ensure
you do not get below Bero in month four.
1. 7therwise you have two alternatives8 a* reduce costs or b* increase revenue
H. Do through your business plan and 5nd how you can reduce costs
J. Do through your business plan and 5nd ways to add sources of revenue
K. In a worst case scenario you may need to borrow money. This should be
avoided if at all possible.
Mar2etin$ Plan
;ow will you get customers to come to your Internet caf:
;ow will you get customers to like the service in your Internet caf:
;ow will you maintain customer loyalty and keep them coming back to your Internet
caf:
;ow can you use free 9 low cost methods to get the word out:
Me1ia ,es No May4
e
Creati6e I1ea Cost
ord of Aouth
6etworking
?lyers
.osters
<hop <ignage
Aembership
cards
$iscount 2ards
6ewspaper ads
AagaBine ads
Cadio ads
ebsite
Doogle #ds
-e sure to enter these costs in the marketing9?lyers line of Aonthly
Fxpenditure )page J*
$iscounts are an absolute last resort as they can eat away at your pro5t
margins and cash Tow
2ompete on quality not on price " a great product 9service is the best
promotional tool!
<tart with some initial paid publicity then use word of mouth 9 organic growth
$evelop a professional looking logo and shop sign to start with.