DILLA UNIVERSITY

SCHOOL OF MATHEMATICAL AND COMPUTER SCIENCE

COMPUTER SCIENCE PROGRAM
BUSINESS PLAN
TITLE: - Z DAG INTERNET CENTER

GROUP MEMBERS

No NAME ID

1. Zerihun Tadesse Rcs 054/08

2. Degefe Mekoro Rcs 016/08
3. Andinet Endayilalu Rcs 009/08
4. Gebreab Ayele Rcs 024/08

Submitted to: - Instructor Desalegn

January 18/2012
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Contents
DILLA UNIVERSITY................................................................................................................................1
Executive Summary.....................................................................................................................................2
Objectives....................................................................................................................................................3
Mission........................................................................................................................................................4
CHALLENGES.......................................................................................................................................4
General Description of Services..............................................................................................................4
NAME AND ADRESS OF THE BUSSINESS.......................................................................................5
LEGAL FORM OF BUSINESS ORGANIZATION...............................................................................5
STATUS OF BUSINESS........................................................................................................................5
Start-up Summaries.............................................................................................................................6
TYPE OF BUSINESS.................................................................................................................................7
Short term and long term objectives of the business................................................................................7
Short term objectives...........................................................................................................................7
Long term objectives............................................................................................................................8
The business center Locations.................................................................................................................8
Competitives service giving centers........................................................................................................8
Management........................................................................................................................................9
Personnel’s or owners plan..................................................................................................................9
Market analysis and competitive analysis....................................................................................................9
Market segmentation...............................................................................................................................9
Financial plan..............................................................................................................................................9

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 Executive Summary

Z DAG Internet center located in Dilla town, specifically in front of Dilla university main
campus. The Z DAG Internet center in waleme kebele will be the first of its kind in our
community and will provide customers with the latest and best in computer technology, high
bandwidth connectivity.It provides customers free access to the Internet as well as an area for to
meet together in a casual environment under for different purpose.

Z DAG Internet center, unlike a typical internet center, will provide a unique forum (media for
exchange ideas) for communication and entertainment through the medium of the Internet. Z
DAG Internet center comes up with new solution by providing fast internet access to the
customers.Z DAG Internet center's goal is to provide the community with a social, educational,
entertaining, atmosphere for worldwide communication.

We designed the Z DAG Internet center to welcome Internet users including students and
business people who are curious about this global phenomenon. Local elementary school
students, students from Dilla University, Donbosko high school, Paradise Rift Valley Collegeand
Dilla Technical- Vocational and training College, and the other neighbor’sinstitutions will
benefit from the technologies and training available at the Z DAG Internet center.Z DAG
Internet center will provide the customer with a comfortable and clean environment to enjoy
their Internet experience.

The main attraction of the Z DAG Internet center is high-speed access to the Internet.  It will be a
great place for people to do online research, stimulate(activates) their minds, be entertained, stay
in touch with people from all over the world and provide a community gathering place focused
on the Internet experience.

To establish this internet center, the Z DAG is investing 200,000 birr from their personal savings,
along with another 40,000 birr from a personal friend. Additional financing has already been
obtained in the form of:

 20,000.00 from the Omo micro finance and

 24,200.00in the form of short-term loans.

The finance acquired through this business proposal will allow Z DAGinternet centre to
successfully open and operate as a Z DAG Internet center. A comfortable and innovative
environment is provided to the customers with a casual atmosphere. Operations in year one will
generate Z DAG Internet center a regular customer base that will allow it to be self-maintained in
year two.Before to starting the Z DAG Internet center, Z DAG had extensive experience with computers
and Windows-based software training. Z DAG’s has attending in Dilla University, in computer science
program.

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 Objectives
Z DAG Internet center's objectives for the first three years of operation include:

 The creation of a comfortable environment that will bring differentpeople together.

 The creation of a unique environment that will differentiate Z DAG Internet center from
local internet centers. That makes the Z DAG Internet center preferable than others.
 Affordable access to the resources of the Internet and other online services.
 Free access to online services.

Mission

The mission of Z DAG Internet center is to provide the local community with a much-needed change
in entertainment through the medium of the Internet in a relaxed and stimulating social environment.
In such a way that the society will have access to all the sources which can be found on the internet.

As the necessity of the Internet access becomes increasing more and more, easy and affordable
access is quickly becoming a necessity of life. Z DAG Internet center provides communities with the
ability to access the Internet, and share Internet experiences in a comfortable environment. Regardless
of ages and backgrounds of all Peoples will come to enjoy the unique, educational, and innovative
environment that Z DAG Internet center provides.

In general the Z DAG Internet center strives to be the best choice for the client. Providing high quality
internet service, competitive pricing, and excellent customer service.

CHALLENGES

The challenges involved with starting Z DAG Internet centerare:

 Will the popularity of the Internet continue to growup, or down?
 Will individuals be willing to pay for the service Z DAG internet offers?

General Description of Services

Z DAG Internet centerwill have 12 computers situated at workstations linked to a main server with
access to the Internet better connection. It will also contain a small room with 3 or 4 linked computers
each with access to the Internet making up a private work area. Many people have limited, if any,
access to a computer because of the high cost of computers. Students, tend to go to Internet
centermore often than others. The centers are open during people’s spare time, or when they cannot
reach other computers

The center will be equipped with powerful computers with high bandwidth and permanent
connections to the Internet. High-speed connections mean that it takes less time to download a web

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 page or send an email. Less time means lower cost. We will also offer other options, like printouts
and copying services for those files which can be downloaded from the Z DAG Internet center only.

The computers are equipped with professional versions of many of the most popular computer
programs to which customers have unlimited access. The other big area of is email where
customers and receive and respond to letters sent to them digitally over the Internet. Next comes
chatting. The majority of the chatters are young people and women/girls.

Z DAG Internet center, soon to be located in Dilla town, specifically in Dilla university main
campus front 200m to the left. The centre Will offer the community easy and affordable access
to the Internet. Z DAG Internet center will provide full access to email, WWW, FTP and other
Internet applications.Z DAG Internet center will also provide customers with a unique and
innovative environment for enjoying.

NAME AND ADRESS OF THE BUSSINESS

As already mentioned in the previous sections we are going to establish a unique, comfortable
internetcentre that provides services for all peoples without background and other ethical
consideration, can enjoy and entertain themselves and communicate with other side of the world
through medium called internet. Its name is Z DAG Internet centre. The site where the internet-
cafe will be located was already decided before the making of this business plan. The location
will be close to Dilla University.
To implement our business plan we choose a place that makes us more profitable, in dilla
town, specifically, in front of dilla university main campus. We choose this place depending on
the market analysis that conduct on the specified place and will be described in the following
section

LEGAL FORM OF BUSINESS ORGANIZATION

Z DAG Internet center is a Partnership business center, owned by Z DAG. It will start giving function
for the society officially on September 1, 2012. The partnership has computer based knowledge since
they will get their bachelor degree in computer science on coming June 2012. This implies that as the Z
DAG’s have a deep rotted knowledge about the internet and other related computer based skills which
enables them to fix computer based problems within a period of short time that maximizes its profits.

STATUS OF BUSINESS

Since we start the business on green field environment the partnerships decided to follow the
start-up business procedures.

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Start-up Summaries
The communications equipment necessary to provide Z DAG Internet center’s customers with a high-
speed connection to the Internet and the services it has to offer make up a large portion of the start-up
costs. These costs will include the computer terminals and all costs associated with their set-up. Costs will
also be designated for the purchase of one black & white laser printer, a colour inkjet printer and a
scanner.

To sum up the overall description of the start-up summery we use the following tables that
illustrate the different type of equipment’s with their corresponding price.

Equipment Quantity Unit price Total price

computer 12 5,000.00 60,000.00

Printer 2 30,000.00 60,000.00

scanner 1 15,000.00 15,000.00

chair 15 150 2250.00

Ventilator 2 350.00 700.00

blower 1 450.00 450.00

Switch 1 700.00 700.00

Internet cable 100 meter 20.00 2000.00

Power regulator 1 1000.00 1000.00

Electricity - - -

Whole price 284200.00

TYPE OF BUSINESS
The Z DAG Internet center is service giving business center that will provide full internet
access to: -
 email,

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  Web, and
 Other Internet applications such as Facebookchatting.
 Skype calling

And also it will provide a service for customers such as Printing for downloaded data’s from Z DAG
Internet center, scanning.

Short term and long term objectives of the business

Short term objectives

Z DAG Internet center will provide different services for its customers and having short term
objectives like:-

 Keep other expenses low to make achieving profitability easier. There is no need to
spend a lot of money in order to accomplish our goals quicker.
 Givegood services which are friendly, to the point, and inspire people to accomplish
their task.
 The creation of a unique atmosphere that will differentiate Z DAG Internet center
from other local Internet centers.
 The establishment of Z DAG Internet center as a community bridge for socialization
and entertainment.
 Consistent fulfillment of the client’s expectations.
 Competitive pricing for the quality and array of services offered.

Long term objectives

As Z DAG Internet center grows, more communications systems will be added. The possibility
of additional units has been accounted for in the current floor plan. As the demand for Internet
connectivity increases, along with the increase in competition,Z DAG Internet centerwill
continue to add new services to keep its customer base coming back for more.

Under our long term plan we will come up with the following outcomes.

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  Internet Clubs

 Online Gaming

 Increase our service by opening branches in another place

 Giving full service for computer training and certifying.

 We will use local radio, TV, and other media for advertising Z DAG Internet center.

The business centerLocations

A site has been chosen at dilla town specifically in front of Dilla University main campus. This site was
chosen for various reasons, including:

 Proximity to the dilla town business community.

 Proximity Dilla university students
 High visibility.
 High speed internet access and comfortable place for customers
All of these qualities are consistent with Z DAG Internet center’s goal of providing a medium of
communication and socialization for the dilla societies.

Competitives service giving centers

The Z DAG Internet centerwhich will be located near the Dilla University main campus will notbe the
first internet-cafe to settle in dilla town but it is first for waleme kebele. We expect that there are different
internet-cafes in dilla town that give internet service for the society but their internet access is very slow
and they don’t give additional service such as coffee and beverages for customers when they need to
refresh their mind when they are using internet.Z DAG Internet center will come with the additional
services that make the customers to enjoy when they are using the internet service in Z
DAG’s.Suchadditional services are coffee and beverages for recreation of mind of customers and
comfortable place for customers that attract the customers.

Management
Z DAG Internet center itself does not require a lot of employees. Therefore the organizational structure of
Z DAG’s is not complicated. In this section the intended future organizational structure is explained
below.

Personnel’s or owners plan

The Z DAG Internet center is partnership, founded, owned and operated by the Z DAG’s. As
the name business description the name of the business is derived from the group members
who decided to establish the Z DAG Internet centerare Zerihun, Degefe, Andinet and
Gebreab. The name of the business center is derived from those members by taking the first

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 letters of each member to dedicate their contribution in the business center. Each group
members will graduate in BSC computer science program in June 2012 and all group
members have knowledge of computer so they decided to choose one manager of the center,
one coordinator and the other two’s to be assisting the customers in the case of difficulty for
the customers who don’t know how to use the internet service.

Market analysis and competitive analysis

The main goal of any business is to make a profit by providing services that usually are not present in the
designated area. Our country is developing country that benefit from international contact and access to
the World Wide Web. To achieve this however certain requirements have to be met, what is the average
price, how can a profit be achieved and what does the market want?

Market segmentation
Our main intentions are to connect people to the internet, increase their knowledge by having access to
sources from all over the world, and to increase their sociality by a new way of communication. Society
will come to our internet center to check their email, to contact with their friends and gather information,
and for other personal issues.

Financial plan
The following sections lay out the details of the financial plan for the future years.

Start-up funding

The internetcenter will not have the suitable condition of a start-up fund. Thereby the internet
center should be self-providing and also earn back the made costs

Sales:  Internet sales were estimated by calculating the total number of hours each terminal will
be active each day and then generating a conservative estimate as to how many hours will be
purchased by consumers.

Fixed Costs: Fixed costs associated with starting Z DAG Internet center are the following:

computers = 60,000.00 birr

2 printers = 60,000.00birr
15 chair = 2250.00 birr
2 Ventilator= 700.00birr
1 Blower = 450.00birr
1switch= 700.00birr
100meter Internet cable=2000.00 birr
1 Power regulator=1000.00birr
for a total fixed cost of 284200.00

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Estimated customer per-day 300

Unit price per hour 4.00 birr

Estimated total amount of birr per year 432000

Profit 147000 birr