REYNAND’S COMPUTER SHOP

A Feasibility Study Presented to

The Faculty of the College of Information Technology Education

Mallig Plains Colleges

In partial Fulfillment
of the Requirement for
Network Configuration

By
REYNAND DICHOSO
April 2016

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Table of Contents
Title Page 1
Table of Contents 2
Chapter II 3
Project Summary 3
Chapter II 6
Market Study 6
Service Description 6
Guidelines of Business 7
Ambiance 8
Price Study 8
Manpower 9
Factors Affecting the Market 10
Internet Connection 11
Recommended Connection 11
Marketing Program 11
Attract Power Internet User 12
Market Growth 13
Weaknesses 13
Opportunities 14
Demand 15
Supply 17
Chapter III 19
Technical Feasibility 19
The Services 19
Manufacturing Process 19
Production Schedule 20
Machinery and Equipment 20
Registration of the Business 21
Assumptions 24
Plant Location 25

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 Plant Layout 26
Chapter I

Project Summary

Introduction

Computer shop business is one of the most in demand

businesses here in Mallig. It is one of the most active business
where people find time in making documents, playing games,
chatting and surfing the internet. Due to fast changing
technology that people encountered, computer shop is a greatly
needed where people can go online to check information such as
jobs, news, researches, People today are very busy and would want
to do their jobs in a beautiful and innovative environment that
could satisfy their needs and lessen their stress due to busy
schedule. Families that want to feel comfortable while chatting
love ones abroad.

Name of the Firm

The proposed name of the firm is “REYNAND’S COMPUTER SHOP”.

The owner will register the firm with the Department of Trade and
Industry (DTI) and Local Government Unit (LGU) concerned. The
firm will be registered as single proprietorship. The business is
about computer shop.

Type of Business Organization

Single Proprietorship – a type of business entity that is

owned and run by one natural person and in which there is no
legal distinction between the owner and the business. The owner
is in direct control of all elements and is legally accountable
for the finances of such business and this may include debts,
loans, loss etc. The owner receives all profits (subject to
taxation specific to business) and has unlimited responsibility
to all assets, loses and debts. A sole proprietor may use a trade
name or business name other than his, her or its legal name.

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Location

The business will be renting a space along Hi-way near to

Government Office, and schools. The target consumers are
students, teachers, office workers, and nearby neighborhood,
especially those people whose relatives or loved ones are abroad.
The two hundred meter radius requirements as provided in the
existing zoning code and other applicable rules and regulations
wherein computer shops and other similar establishments and
places of amusements should be put up or constructed at least two
hundred meters away from the church, schools, hospitals and other
government offices shall be strictly complied with.

Long Range Objectives of the Project

REYNAND’s Computer Shop Objectives:

1. To stay long in the business.
2. To earn profit more than payables.
3. To satisfy our customer needs at low cost and providing
best quality service at affordable price.
4. To know a fair return on the capital invested.
5. To help our customers relax and comfortable.
6. To help our customers even if we do not receive any in
return.

Feasibility Criteria

The following are the most important criteria by

which almost every subject is being measured:

1. Raising Funds or Capital – this is the number one need of

a business man in putting up a business. Whether he will produce
the money by his own pocket or he will have a business loan in a
bank.

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 2. Recognize profit from the business – the main reason of a
person for going into business is profit. People tend to enter
into this kind of business because of their expectation to earn
money or have an income.

3. It helps the economic growth of the area – this

company will give a job opportunity to the resident of Roxas.

4. Enhance the availability of the shop – the shop will

become stable if it has the ability to compete to his competitor
and ability to continue operations yet there is expected risks in
a business.

Market Strategies

I will be considering different market strategies and

promotions such as:

 Fliers will be distributed and handed out to vvarious

establishments.
 Games and services offered will be displayed on the
store window.
 Promo offers to will be posted at the shop window to
attract the consumer.
 Services will also be posted at the front of the shop.
 I will put a tarpaulin on the place itself where my
shop is standing, promoting the opening of my computer
shop also one month before the opening. To let the
people know that there will be a new Computer Shop on
the vicinity.
 Lastly, I will keep developing my skills by attending
seminars to improve my knowledge and to be updated in
this business.

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Flier and Tarpaulin

Shop Name

6
 Chapter II

Market Study

As the popularity of the Internet continues to grow at an

exponential rate, easy and affordable access is quickly becoming
a necessity of life. “REYNAND’S COMPUTER SHOP” provides
communities with the ability to access the Internet and share
Internet and Gaming experiences in comfortable environment.

People of all ages and backgrounds will come to enjoy the

unique, up to date, and innovative environment that “REYNAND’S
COMPUTER SHOP” provides.

Service Description

REYNAND’S COMPUTER SHOP will provide its customers with full

access to the Internet, software, and hardware. Some of the
Internet and computing services available to REYNAND’S COMPUTER
SHOP are listed below:

•Surf the web at high speed!

•Chat online using Steam, IM, Messenger, Yahoo Messenger and

Skype.

•Have a video conference!

•Play games like DOTA II, Counter-Strike, Angry Birds,

Plants VS Zombies, Clash Royale, Clash of Clans and other games
you like!

•Hook up your laptop to our Internet connection via WiFi

Hotspot.

•Rent REYNAND’S COMPUTER SHOP for your late night or all-

night gaming party or research.

•Send and receive email.

•Create your own greeting cards, flyers, school reports,

invitations or presentations.

•Download shareware programs in the blink of an eye and copy

them to a CD/DVD or Removable Drives.

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 •Scan a picture using one of our self-service photo scanners
and send via email.

•Plan your next vacation or print out driving directions.

•Listen to music clips and watch videos.

•Type resumes, letters and term papers with Microsoft Word

and Excel.

•Find that dream job on the internet.

•Check out continuously updated news, sports and weather.

•REYNAND’S COMPUTER SHOP will also accept Computer Repair

and Software Installations.

My friendly staff is ready to assist your computer needs.

Guidelines of Business

•All malicious and adult sites are blocked.

•Connections are metered.

•We are not allowing inserting flash drive or any storage

device without the consent of the shop staff.

•Eating and drinking is not allowed, they are only allow to

eat and drink in the waiting area.

•One person for one unit to maintain orderliness.

•Customer should be responsible with their own things to

avoid loss.

•Noisy and no discipline customers will automatically

receive a warning message and will be automatically logged
out when warned twice.

Ambiance
• The shop is properly cleaned and freshened everyday.
• Not too dark and bright because we want the shop more
encouraging to work and play.
•Our computer tables have a board between users for privacy
purposes.

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 •All furniture are comfortable, fully furnished and labor
included.
•Air-conditioned and well properly ventilated.

Price Study

Price is one of the considerations that enhance them to rent

computers. If the price is lower, they will rent.

Our services are the following:

Services Amount(PhP)
Minimum Rent 5.00/15min
Internet 15.00/hour
Games 15.00/hour
Video Calling 20.00/hour
WiFi Connect(metered) 7.00/hour
Fax 15.00
Printing black and white(short) 1.00
(long) 1.50
Printing colored 4.00
Photocopying (short and long) 0.50
Scanning and Email 15.00
CD/DVD burning 20.00

Other Services
Payphone 2.00/minute
Computer Repair (labor) 300.00

Membership Fee 100.00

Manpower
Manpower requirements are very important to any business in
order for them to have an intelligent and accurate people who
will manipulate inside the firm. Requirements will serve as basis
on personal and general background of an employee enable for the
business to know the capacity of their skills and ability to do
work to the assign for them.

ESTIMATED ANNUAL COST FOR MANPOWER

Computer Assistant –
P150/day (4,500/month)
Requirement on Hiring an Applicant
Applicant must be 20 years old and above, residence of Roxas or
nearby and:
•Resume

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 •Application Letter
•One valid I.D.
•Birth Certificate
•Hardworking
Job Functions
Business Owner
- Establishes store policies and procedure for strict
implementation.

- Execute final decisions on all matters pertaining to

the operation and the management functions of the
business.

- Audit individual computers to check for proper

system.

- Visit the shop from time to time.

- Check the book of accounts and financial statement

in daily basis.

- Handles license renewals, facilities preparation and

payment of annual tax generated by the business.

- In charge in computer maintenance. * I.T. Expert

- Provide information and/ or technical aspect.

Computer Assistant
- Accept payment

- Maintains inventory of supplies in the shop.

- To assist customers in their needs.

- Maintain cleanliness and orderliness.

- Help conserve Utilities consumption.

- Logging the customers hours consumed.

- Will help in computer maintenance.

Factors Affecting the Market

Factors that I consider while putting up my own Computer Shop:

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 •Location – picking a good spot is an advantage for me.

•Competition – most business–minded people think of

competition as a race to charge the lower prices in order to
win the customers.

•Software Licensing – it is important to have an original

operating system, because pirated OS can eventually damage
the system.

•Expected Risk Investing – investing money in a business is

a risk in my case the well tabulated if financial statement
is my major concern.

•Professionalism – humble and well-trained staff actions

will serve the customer to their proper needs.

Internet Connection

The major cost of a computer shop is the internet

connection. For providing better service, the proposed project
will use a high bandwidth connection for better speed as the
project is going on to provide service of video chat. It is
recommended that the internet connection should be taken from the
best internet service provider.

Recommended Connection

If the project is set up in area, where Globe Tattoo Home

Internet connection is available, it is recommended to use Globe
Tattoo Home connection instead of any other Internet connection.
This will improve the speed of internet, which will improve the
performance of video chat and will also reduce the telephone
expense at the speed of 3Mbps with an affordable price of
1299/month.

Marketing Program

REYNAND’S COMPUTER SHOP has three main strategies:

The first strategy focuses on attracting novice Internet

users, by providing a novice friendly environment, and hopes to
educate and train a loyal customer base.

The second, and most important, strategy focuses on pulling

in Internet user that are familiar with the Internet and computer

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environment. This group of customers has knowledge and experience
to the internet.

The third strategy focuses on building a social environment

for customers. A social environment, that provides entertainment,
will serve to attract customers that would not normally think
about using the Internet. Once on location at REYNAND’S INTERNET,
the customers that came for the more standard entertainment
offerings will realize the potential entertainment value the
Internet can provide.

REYNAND’S COMPUTER SHOP second strategy will be focused on

attracting power Internet users. Power Internet users provide an
important function. REYNAND’S COMPUTER SHOP plans on attracting
this type of customer by:

•Providing the latest in computing technology.

•Providing scanning and printing services.
•Providing access to powerful software applications
•Providing a promo services.
The large student and nearby neighborhood population will
become an important part of the Computer Shop customer base. The
student population continues to grow with the success of the
educational institutes. Access to the internet, entertainment,
and the upscale ambiance will attract the students. Business
community is growing rapidly with the addition of new companies
day by day.
REYNAND’s Computer Shop will provide an opportunity to local
and traveling professionals to check their e-mails
communications; this will be an attracting entity for the middle-
income group and for the residents of Mallig as they do not have
access to the internet at their living places.

Tar get Mar k et

Target Market

Students 42

Nearly Neighborhood 38

Office Worker 12

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Teacher 8

0 5 10 15 20 25 30 35 40 45
 The market for the services REYNAND’S COMPUTER SHOP will
offer is growing rapidly. The computer shop has not come to this
area yet, but similar services are growing rapidly on a global
scale. Large cities that cater to large numbers of traveling
business people have been saturated with businesses offering the
services REYNAND’s Computer Shop will offer.
Business people use the Internet services to catch up on
email and communications with their family. My area supports a
population that has many of the same needs and interests of this
larger group. The student population continues to grow as the
University grows in popularity with high-school graduates from
out of state. These students tend to have money and an interest
in up-scale social centers.
REYNAND’S COMPUTER SHOP will target these groups with the
use of fliers and tarpaulin.

Strengths
REYNAND’S COMPUTER SHOP has many strengths:

 My staff is both knowledgeable and eager to please.

 My customers enjoy beautiful and convenient units’
displays, fast machines, and high-quality printers.
 Great sound background, nice lighting that sets the
mood and the whole area was clean.
 My staff and I know the customers, the technology,
and how to build the service that will bring the two
together.
Weaknesses
REYNAND’S COMPUTER SHOP has also weaknesses like:

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  REYNAND’S COMPUTER SHOP needs to keep up with the
technology because a lot of the REYNAND’S COMPUTER
SHOP experience is technology.
 Keeping up with the technology of the Internet is
an expensive undertaking. REYNAND’S COMPUTER SHOP
needs to balance technology needs with the other
needs of the business.
 The uncontrollable actions that customers will
bring.
Opportunities

 Growing population of daily Internet users

 The importance of the Internet almost equals that of
the telephone.
 As the population of daily Internet users increases,
so will the need for the services REYNAND’S COMPUTER
SHOP offers.
 Social bonds fostered by the new Internet communities
 The Internet is bringing people from across the world
together unlike any other communication medium.
 REYNAND’S COMPUTER SHOP will capitalize on this social
trend by providing a place for smaller and local
Internet communities to meet in person.
 REYNAND’S COMPUTER SHOP will grow some of these
communities on its own by establishing chat areas and
community programs.
 These programs will be designed to build customer
loyalty
Threats

 Rapidly falling cost of Internet access

 The cost of access to the Internet for home users is
dropping rapidly.
 Internet access may become so cheap and affordable
that nobody will be willing to pay for access to it.
 REYNAND’S COMPUTER SHOP aware of this threat and will
closely monitor pricing.
 Rising local competitors.
 REYNAND’S COMPUTER SHOP is enjoying a first-mover
advantage in the local computer shop market.
 Additional competitors are on the horizon, and I need
to be prepared for their entry into the market.
 Many of my programs will be designed to build
customer loyalty, and it is my hope that my quality
service and up-scale ambiance won’t be easily
duplicated.
Market Needs and Trends

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 As the popularity of internet continues to grow at an
exponential rate, easy and affordable access is quickly becoming
a necessity of life. Public wants access to the methods of
communication and volumes of information now available on the
internet, and access at a cost they can afford and in such a way
that they are not socially, economically, and politically
isolated.
More than forty percent of my customers are youngsters and
their only objective to get to these is to get enjoyment. And
other forty percent will be the neighborhood who will need
printing jobs to be done, video calling and others.
Maintain a focus on quality products with bottom-line growth
through cost reduction and optimal performance. I also focus on
technology and innovation to make sure our employees skills are
up to standard with today’s mode of production.
Demand
Demand in internet service for the last 5 Years:
Table 1.1 Demand Last Five Years
Year Quantity Demand
(Peso)
2011 28,240
2012 92,400
2013 100,200
Figur e 1.1 quanti ty demand
2014 122,000
2015 175,110
200000

180000 175,110
160000

140000

120000 122,000

100000 100,200
92,400
80000

60000

40000
28,240
20000
0 0 0 0 0 0 0 0 0 0
0
1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015

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 As you see there is 9 percent of demand in internet service
in year 2011 and gain higher next year. In 2013 there is 13
percent of demand in internet and 6 percent in year 2014. And in
year 2015 there is 36 percent of internet services.
I will use the “Arithmetic Straight line Method in
projecting the demand next 5 years.
Ye = a + Yi – 1 Ye = initial Value
Yn = Final value
Yi – 1 = value for 5 years
Where: a = Yn – Yc
N-1
Computation: a = 175,110 – 28,240
5 – 1
= 36,717.5
2016 = 36,717.5 + 175,110 = Php. 211,827.50
2017 = 36,717.5 + 211,827.50 = Php. 248,545.00
2018 = 36,717.5 + 248,545.00 = Php. 285,262.50
2019 = 36,717.5 + 285,262.50 = Php. 321,980.00
2020 = 36,717.5 + 321,980.00 = Php. 358,697.50

Table 1.2-Projected Demand for Next Five Years

Year Quantity Demand
(Peso)
2016 211,827.50
2017 248,545.00
2018 285,262.50
2019 321,980.00
2020 358,697.50

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 Figur e 1.2 pr ojected quanti ty dem and f or next
5 year s
400000

350000 358,698
321,980
300000
285,263
250000 248,545
211,828
200000

150000

100000

50000
0 0 0 0 0 0 0 0 0 0
0
1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020

This is the projected market quantity demand for the next

five years and it will gain higher as the REYNAND’S COMPUTER SHOP
will became popular and trusted by our customers every year.

Supply
Supply in the Internet Services for the last five years.
Table 2.1 Supply Last Five Years
Year Quantity Supply
(Peso)
2011 21,120
2012 37,800
2013 44,600
2014 52,100
2015 68,100

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 Figur e 2.1 quanti ty SUpply
80000

70000 68,100

60000

52,100
50000
44,600
40000
37,800
30000

20000 21,120

10000
0 0 0 0 0 0 0 0 0 0
0
1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015

As you see there is 8 percent of supply in internet service

in year 2011 and gain 5 percent next year. In 2013 there is 16
percent of demand in internet and 5 percent in year 2014. And in
year 2015 there is 41 percent of internet services.
I will use the “Arithmetic Straight line Method in
projecting the demand next 5 years.
Ye = a + Yi – 1 Ye = initial Value
Yn = Final value
Yi – 1 = value for past 5 years
Where: a = Yn – Yc
N-1
Computation: a = 68,100 – 21,120
5 – 1
= 11,745
2016 = 11,745 + 68,100 = Php. 79,845.00
2017 = 11,745 + 79,845.00 = Php. 91,590.00

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2018 = 11,745 + 91,590.00 = Php. 103,335.00
2019 = 11,745 + 103,335.00 = Php. 115,080.00
2020 = 11,745 + 115,080.00 = Php. 126,825.00

Table 2.2-Projected Demand for Next Five Years

Year Quantity Demand
(Peso)
2016 79,845
2017 91,590
2018 103,335
2019 115,080
2020 126,825
Figur e 2.2 pr ojected quanti ty dem and f or next
5 year s
140000
126,825
120000
115,080
100000 103,335
91,590
80000 79,845

60000

40000

20000
0 0 0 0 0 0 0 0 0 0
0
1/1/2016 1/1/2017 1/1/2018 1/1/2019 1/1/2020

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 Chapter III
TECHNICAL FEASIBILITY
In this chapter, I will discuss the product, the
manufacturing process of my business including the plant size and
production schedule.
I will also discuss the machinery and equipment and the
other computer application that I will use in the business.
In order for me to lessen my expenses, I purchase equipment
in packages. I focus much in the hardware and software.
I research on how much the hardware and software will cost
me, through net surfing and gaming.

The Services
The following services of REYNAND’S COMPUTER SHOP are listed
below:
•Gaming
•Typing
•Searching the Internet
•Printing
•Photocopying
•Fax
•Scanning
•Downloads
•Computer Repair
•DVD/CD Burning
•Email
•Creating Invitations
•Text and Photo Manipulation

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 Manufacturing Process
This is the REYNAND’S COMPUTER SHOP manufacturing process:

REYNAND’S COMPUTER SHOP

SERVICES

CUSTOMER

PROFIT and INCOME

The “REYNAND’S COMPUTER SHOP” will provide the services to

the customers, and then the customer will give income and profit
to REYNAND’S COMPUTER SHOP Café in return. The income or profit
that the customer gave in return will used to provide the product
and services.
Production Schedule
The “REYNAND’S COMPUTER SHOP” will operate seven days a
week. REYNAND’S COMPUTER SHOP opens at 8:00am ahead to the other
competitors. This will lead my shop of being known. My goal is to
give the needs of the students and others in early manner of
time.
REYNAND’S COMPUTER SHOP Time Schedule
Weekdays 8:00am – 5:00pm
Weekends 9:00am – 5:00pm
Machinery and Equipment
The proposed project is going to be of 20 units of computer
systems and the details of the equipment required for the project
is given below:
List Brand Name Description Amount
Package Computer AMD A6 Dual 20 Units w/ 14,200/each
Core 3.9Ghz – complete
4.1Ghz Turbo accessories
18.5” LCD
4GB DDR3 RAM
500GB SATA

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 A58 Chipset
Motherboard
Radeon HD8470D
800Mhz
650W PSU
Printer Printer L1800 InkJet Printer 24,500.00
EPSON

Modem Globe Tattoo 2 Modems 1,299/month(each)

Home 3Mbps
9,500.00

Software
Windows 7 Microsoft 5,380

Antivirus 1 User 899

Office 2010 Microsoft 3 Users 3,485
Games Software
Warcraft Blizzard 1,450
Counter Strike Half-Life 350
PopCap Games 1,950
Star Wars 2,550
DOTA2 Steam Free
Bluestacks Android Games Free
Total Machinery PHP 53,093.00
And Equipment
Cost

LIST OF SUPPLIES
The materials needed for the operation of the business:
Bond Paper 150.00 (500pcs/ream)
DVD and CD w/ Case 120.00/12Pcs
Ballpen 48.00/box of 12pcs
Stapler 100.00
Stapler Wire 30.00
Ink 950.00
Record Book 25.00
Fire Extinguisher 10lbs. (Danwell) 3,950.00
Other Equipment
Air-condition 2hp 14,500.0

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Total PHP 19,873.00

Furniture & Fixture

Quantity Unit Price Total Price
Table for Server 1 500.00 500.00
Monoblock Chair 20 320 6,400.00
Tool Chair 2 300 600.00
Cabinet 1 5,600.00 5,600.00
Total 13,100.00
Additional Expense
Pad Lock (Abloy) 2 300.00 600.00
Waste Disposal
The proper disposal of the garbage is very important. Since
our business is a computer shop we usually used bond paper, so it
is not hard for us to think how it will be disposed. To maintain
the cleanliness inside the café there are trash basket at one
corner.

Cleaning Materials
Broom 60.00 (replace every 6 months)
Dust Pan Plastic 45.00
Trash Basket 100.00
Feather Dust 50.00 (25.00/ pc.)
Mop 250.00
Powder Soap 20.00 (6pcs. Good for 2 mos.)
Air Freshener 175.00 (replace every 2 months)
Total 700.00

Registration of the Business

The proposed business should be registered with DTI to

assure that any organization of individual for their business
proposal for future use would not copy the name of our business.
It acquires 15 days period of processing before the name of the
business registered certificate can be issued by the said
government agency.

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Business/Mayor’s Permit

Business Permit must be applied with the licensing office at

the Municipal Hall of the said locality. It would be based on the
reported business entity to be put up; we secured barangay
clearance as a requirement for an application.

Bureau of Internal Revenue

The proposed business should register with BIR and secured

TIN (Tax Identification Number) which will be used as simplifying
the record control producers relating to taxation and securing
VAT (Value Added Tax)

Assumptions:
1. Payable must paid before the division of income
2. Air condition maintenance will for Php.450.00 every year
3. Water expense is Php.117.50 minimum bill every month.
4. Bill of telephone was included in Globe Tattoo Home
5. Cleaning Expense is Php.1, 735.00 for the whole year
6. Anti-virus is package purchase that good for 1 computers
amounting Php. 800.00 each
7. Padlock and other cleaning materials considered as expense
at the end of the year
8. Membership card is good for 1 year
9. All lightings materials are included in lease of contract

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Plant Location

The business will be here in the corner near Nona’s Lechon

Manok along the main hi-way near to the Government Office
(Municipal Hall and Mallig Plains Rural Bank), Police Station,
Public Market and nearby schools. The space would be perfect for
targeting consumers like students, teachers, office workers,
nearby neighborhood and travelers.

Plant Layout

25
 I made this layout because I want the shop to be more
encouraging to work and play. The computer tables have a
board between users for privacy purposes. Clean and
comfortable. You will feel the technology, well ventilated
and air-conditioned.

26