Tulu awlia,wollo,Ethiopia

July,2022

MEKDELA AMBA UNIVERSITY

COLLEGE OF NATURAL AND COMPUTATIONAL SCIENCE

DEPARTMENT of STATISTICS

Title: DB: Internet Service Center

 Business Owner: Degefa and Brothers

Status of business: new business

SUBMITTED TO INSTRUCTOR:

GROUP MEMBERS

Name of students ID number

1 DEGEFA GETACHEW----------------------------------------------------------MAU/R1200401

2 ELIAS MISKER-------------------------------------------------------------------MAU/R1200464

3 BIRUK TADESS-------------------------------------------------------------------MUR/R1200343

4 DESALE NEGASH- --------------------------------------------------------------MUR/R1200423

5 BINIYAM MANGISTE-----------------------------------------------------------MAU/R1200251

6 EYUEL TESFAYE--------------------------------------------------------------- MAU/R1200527

7 ABDUSELAM TAYEBU-------------------------------------------------------- MAU/R1200030

8 AYIRE ABOTA--------------------------------------------------------------------- MAU/R1200231

9 BANCHALEM MARALEW------------------------------------------------------- MAU/R1200251

10 AYANAW TEGAB---------------------------------------------------------------- MAU/R 120089

11 Mohammed Aerbo--------------------------------------------------------------------MAU/R1200990

12 Markos kitata -------------------------------------------------------------------------MAU/R1200874

Address: Tulu Awlia Town In Front Of MAU Campus

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 Type of Business: Partnership

Table of Contents
1. INTRODUCTION...................................................................................................................................1
1.1Name and Address of the Industry......................................................................................................1
1.2. OBJECTIVES...................................................................................................................................1
1.2 Mission...........................................................................................................................................1
1.3 Keys to success............................................................................................................................1
1.4 Risks...................................................................................................................................................2
3.1 Company Ownership.........................................................................................................................3
3.2 Start-up Summary..............................................................................................................................3
3.3 Company locations and facilities.......................................................................................................4
4.0 Services..................................................................................................................................................4
4.1The internet service:...........................................................................................................................4
4.2 Services description...........................................................................................................................4
4.3 Competitive Comparison...................................................................................................................5
4.4 Fulfillment..........................................................................................................................................5
4.5Technology.........................................................................................................................................5
4.6 Future services...................................................................................................................................5
5.0 Market Analysis.....................................................................................................................................5
5.1 Target Market Segment Strategy.......................................................................................................6
5.2 Promotion Strategy............................................................................................................................6
5.3 Market needs.....................................................................................................................................6
5.3.1 Market segmentation.................................................................................................................7
5.3.2 Market positioning......................................................................................................................7
6.0 Strategy and implementation summary............................................................................................7
6.1 Strategy pyramids..............................................................................................................................8

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 6.1.1 Attract novice internet users......................................................................................................8
6.1.2Attract power internet users.......................................................................................................8
6.1.3 Social hub...................................................................................................................................8
6.2 SWOT analysis....................................................................................................................................9
6.2.1 Strength......................................................................................................................................9
6.2.2 Weakness....................................................................................................................................9
6.2.3 Opportunities............................................................................................................................10
Once one is familiar with the World Wide Web one may introduce his or her social environment to
the internet. Thereby the popularity of the internet will keep on growing and finally this will reflect
in an increasing number of customers for the internet service.........................................................10
6.2.4 Threats......................................................................................................................................10
7.0 Management summary.......................................................................................................................11
7.1 Personnel plan.................................................................................................................................11
7.2 Financial plan...................................................................................................................................12
7.2.1 Start-up funding........................................................................................................................12
7.2.2 Projected profit and loss...........................................................................................................12
7.2.3 Cash Flow.................................................................................................................................13
1 7.2.4 Balance sheet....................................................................................................................14

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1. INTRODUCTION

1.1Name and Address of the Industry

The name of the enterprise is DB internet service center. The industry is located in Tulu Awulia
town. This location is a great opportunity to access easily worldwide internet service for local
customers and for MAU students and societies of the campus .

1.2. OBJECTIVES

DB internet service objectives include:

1. Educating the community that nearby Mekdela Amba campus and other Tulu awlia town
peoples on what internet has to offer.
2. It provides suitable services for the society live that area.
3. Affordable business access to the resources of internet and other online services.
4. The creation of a unique, upscale and innovative environment that will different DB internet
service from local internet service.

1.2 Mission

 As the popularity of internet continues to grow an exponential rate, easy and affordable
access is becoming a necessity of life.
DB internet service provides communities with the ability to access the internet, enjoy Face
book, news, email and any information and share internet experiences in a comfortable
environment.
 To make the internet available to a greater population.
 People of all ages and backgrounds will come to enjoy the unique, educational and
innovative environment that DB internet service.

1.3 Keys to success

The keys to the success for DB internet services provides

 The creation of unique, innovative, upscale atmosphere that will differentiate DB internet
service from another internet service and future internet services.

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  Establishment of DB as a community hub for socialization and The entertainment.
 The creation of an environment that will not intimidate the notice user. DB internet
service will position itself as an educational resource for individuals wishing to learn
about the benefits the internet has to offer.
 It create to local society and students well internet services.

1.4 Risks

The risk involved with starting Minnesota is:

 Will the popularity of the internet continue to grow?

 Will there be a profit?
 Will there be enough demand for my service, will there be enough interest in it?
 Won't we go bankrupt due to lack of interest?

2.0 Executive Summary

This is the business plan of third year statistics students created to help starting an D and B
internet service.
At first the task was to create a business plan for D and B internet services. DB internet service
was established in 2014EC to give many several services for Mekdela Amba University main
campus students, employees, staff workers and other customers who live in Tulu awlia town and
Akesta. Although this internet services already seemed to be present, its business plan needs to
be developed. As a consequence to make our business plan useful we asked what other help we
could give to the dwellers of Tulu awlia town.
The task which we got appointed was to create a business plan for an
Internet service . In this business plan we have tried to make a plan to realize the internet service
and keep it running while making some profit. Furthermore this business plan will show how the
internet service itself will be built and realized and what the expected costs and unexpected costs.
3.0 Company Description
The DB internet services which will be realized will offer all customers easy and affordable
access to the internet. The DB internet services will appeal to individuals of all ages and

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backgrounds. DB internet service will provides customers with a unique and innovative
environment for enjoying great services, specialty Google and other items.
The instructional internet classes and the staff that the internet service providers will appeal to
the audience that does not associate themselves with the computer age. This educational aspect
will attract younger and elderly members of the community who are rapidly gaining interest in
the unique resources that online communications have to offer.

3.1 Company Ownership

DB is a partnership corporation (company). Degefa and Brothers are the founder of DB

internet services major owner. Mr Degefa and brothers a third year students in Mekdela Amba
University. Not only this but also we create job opportunity for twelve employees which means
to create the job group members.

3.2 Start-up Summary

The DB internet services will have seating for 8 patrons. The rent is 2,000 birr a month, with a
ten year lease available. The site consists of 500 square feet of leased space consisting of an
internet room.

Start-up expense details:

5 computer 14000 birr each 70,000 birr

1 commercial printer 8,200 birr
1 commercial scanner 6,000 birr
8 chairs 450 birr each 3,600 birr
8 computer stands 400 birr each 3,200 birr
1 air-conditioner 2,000 birr
Labour for fixing the computer and furniture 11,000 birr
Automatic copy machine 20,500 birr
Electricity 1,500 birr
Internet + router 2500 birr
Binding 750 birr
Total 129,250 birr

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 3.3 Company locations and facilities
The site where the internet service will be located was already decided before the making of this
business plan. The location is in front of Mekdela Amba University. This site was chosen for
various reasons
Those reasons are:
1. Proximity to Mekdela Amba University Main Campus and which are exist much of
customer.
2. Proximity to the town entrance.
3. High visibility.
4. Low cost rent for rooms.

4.0 Services

4.1The internet service:

1. Will grant the customers access to the internet and World Wide Web.
2. Will provide the opportunity to use the scanner and printer
3. Will provide basic computer classes.

4.2 Services description

The internet service will provide its customers with full access to the Internet and
common computer software and hardware. Some of the Internet and computing services
available to DB customers are listed below:
 Access to external POP3 email accounts.
 FTP, Telnet and other popular Internet utilities will be available.
 Access to Internet Explorer browser or other browsers.
 Laminating, scanning and printing services.
 Access to popular software applications like Microsoft Word, Adobe
Photoshop and other often used applications.
Next to these computer services, the internet service will provide the possibility to attain
computer courses. During these courses the costumer can learn how to use a computer and learn
some possibilities, including web surfing.

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4.3 Competitive Comparison

The DB internet service which will be located near the School of Mekdela Amba University will
not be the first internet service to settle in Tulu awlia. We expect that there are more internet
service in Tulu awlia however; we do not think many internet services will be present that gives
such affordable services.

4.4 Fulfillment

The internet services will obtain its computer hardware from local stores which can be found in
or in the neighbourhood of Tulu awlia. The installation of the internet will also be provided by
the local resources.

4.5Technology

The internet service will be providing its customers with computers which
Will be up to date with today’s system requirements; the computers will be able to provide the
customers with a variety of application to serve their needs. These applications will mainly be
the mainly used ones which everyone will be familiar with such as Microsoft Office.

4.6 Future services

In the future the internet service will be able to expand or improve its
Services. When expanding the needed amount of hardware should be
Purchased however what should be kept in mind is how far the internet service will be able to
expand. The location may not be big enough to
Provide an excessive expansion of hard ware. The improvement of service however could be
made possible by providing the customer with additional services.
A necessary machine or materials could be purchased for satisfying the customer, which would
attract more customers and which could make the current customers stay longer.

5.0 Market Analysis

 The main goal of any business is to make a profit by providing services. To achieve this
however, certain requirements have to be met,

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  What is the average price?
 How can a profit be achieved?
 What does the market want?
 Who is our customer?
 Where is our customer located?

5.1 Target Market Segment Strategy

Our main purposes are:

 To build customer awareness and demand.
 To connect people to the internet.
 increase their knowledge by having access to sources from all over the world
 To increase their social setting, by a new way of communicating.
People will come to this internet service to check their email, socialize with their friends (like
Face book, viber, whatsapp etc.), and gather information not found elsewhere.

5.2 Promotion Strategy

DB partnership will implement a pull strategy in order to build customer awareness and
demand. Initially, DB internet service has budgeted 10,000 birr for promotional efforts which
will include advertising with coupons for a free hour of internet time in a local publications
and in-house promotions such as offering customers free internet time if they pay for an
introduction to the internet workshop taught by DB computer technician. DB partnership
realizes that in the future, when competition enters the market, additional revenues must be
allocated for promotion in order to maintain market share.

5.3 Market needs

Tulu awlia town firstly needs an internet service since there is a small amount of Internet
service’s present in the Tulu awlia area. So there is a high demand for an internet service where
people can come to:
 Check their email and search the web for information.
 Also, this internet service is designed to be an additional source of income for Mekdela
Amba University Main Campus, which is a need for the school itself.

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The customers at the internet service will also enjoy the freedom of accessing different programs
like Microsoft Word and other applications.
5.3.1 Market segmentation
Since our internet service is situated in a Tulu awlia city in Ethiopia, we expect The population
to increase and decrease with the same speed. Therefore, we can state and use the population
pyramids to predict the amount of Customers that would be suitable for our market, by looking at
the Average growth and applying this to the market, we can predict how many customers we will
get.
As can be seen, mainly the age groups between 21 and 40 have the largest growth. This is our
main target market; therefore we can make an estimated growth of about 2.6% customers per
month. We make an assumption of around 600 customers per month, mainly being university
students and business people, looking for an opportunity to go online and explore the World
Wide Web.
5.3.2 Market positioning
We start search engine positioning project by insuring that the market areas of your internet site
aren’t built using technologies which specifically exclude search engine. Web site accessibility
issues affect both search engine spiders, and human users. If the technology platform and
structure of the marketing area of our site exclude search engine through differ from other
content system, security and inappropriate use of technology.ST internet service will position
ourselves at the premier internet service by preparing quality internet service.

6.0 Strategy and implementation summary

A DB internet service has three main strategies.

 The first strategies focus on attracting novice internet users. By providing a novice
friendly environment, DB internet service hopes to educate and train a loyal customer
base.
 The second, and most important, strategy focuses on pulling in power internet
users. Power internet users are extremely familiar with the internet and its offerings.
This group of customers serves an important function at DB internet service. Power
users have knowledge and web-browsing experience that novice internet users find
attractive and exciting.

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  The third strategy focus on building a social environment for DB internet service
customers. A social environment, that provides entertainment, will serve to attract
customers that wouldn’t normally think about using internet. Once on location at DB
internet service, these customers that came for the more standard entertainment offering,
will realize the potential entertainment value the internet can provide.

6.1 Strategy pyramids

The following subtopics provide an overview of DB internet service three key

strategies. Strategy pyramids graphics are presented in the appendices of this plan.
6.1.1 Attract novice internet users
DB internet service first strategy focuses on attracting novice internet users. Ma
partnership plans on attracting these customers by:
 Providing a novice friendly environment. DB internet service will be
staffed by knowledgeable employees focused on serving the customer’s
needs.
 A customer service desk will always be staffed. If a customer has any
type of question or concern, a DB Internet service employee will always
be available to assist.
 The partnership will offer introductory classes on the internet and email.
6.1.2Attract power internet users
The DB internet service second strategy will be focus on attracting power internet
users. Partnership 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.
6.1.3 Social hub
The third strategy focus on building a social environment for DB internet service
customers, a social environment, that provides entertainment, will serve to attract

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customers that wouldn’t normally think about using internet. Once on location at
the DB internet service these customers that came for the more standard
entertainment offering, will realize the potential entertainment value the internet
can provide.

6.2 SWOT analysis

This section will focus on the SWOT analysis. The SWOT analysis is a
Strategic planning method used to evaluate the:
 Strengths
 Weaknesses
 Opportunities and
 Threats involved in a project or in a business venture.
SWOT is an abbreviation for: Strength, Weakness, Opportunity and
Threats.
6.2.1 Strength
The strength that the DB internet service will have is:
 Its dominant position in the local internet availability.
 Staying up-to-date with the latest computer software. By keeping the
hardware updated with the needed software the customers will enjoy
working with the computers present.
 Staying updated with the newest software is also cheap cheap' investment'
which again would benefit to the success of the DB internet service.
6.2.2 Weakness

Besides the strengths each company/business has its weaknesses.

Weakness can lead to a decrease of a company's success and Development.
The weakness of DB internet service is:
 Keeping up with the latest hard-ware technology.
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  Staying updated with the latest hardware is not only an expensive
investment it is an investment which does not sincerely pays off its prices
immediately. Over a period of years such an investment should be needed
however it remains expensive.

6.2.3 Opportunities

As any other organisation an DN internet service has its opportunities. Having

certain opportunities offers an organisation a possibility to expand their turnover.
an opportunity of a DB internet service is that:
 The global population which is requiring access to the World Wide Web is
slowly increasing. This increase of internet users should offer the DB
internet service a chance to expand the business.
 The possibility of a rising demand in the market. This raise would be the
outcome of the growing popularity under the inhabitants.
Once one is familiar with the World Wide Web one may introduce his or her social
environment to the internet. Thereby the popularity of the internet will keep
on growing and finally this will reflect in an increasing number of customers
for the internet service.
6.2.4 Threats
The DB internet service will be one of a few located in the city of.
However the internet service will face certain threat which can cause a
Slight decrease in its popularity in the market.
One of the threats the cafe will face is:
o The continuous reducing price of the availability of internet itself. Because
of the lowering price the internet will become available to a greater
population. When this situation occurs more and more people will have an
internet connection at their own house. This will make the existence of an
internet service redundant.

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 o The increase of internet services at a local scale. When the consumers get
the opportunity to choose from a variety of offers the amount of customers
will probably decrease.

7.0 Management summary

DB internet service is owned and operated by Edge and brothers. The company
being small in nature requires a simple organizational structure. Implementation of
this organizational form calls for the owner, Degefa and to make all of the major
management decisions in addition to monitoring all other business activities.

7.1 Personnel plan

The DB internet service requires just a handful of employees in order to

Function. In total the DB internet service will count a staff of a least two persons.
These two can be divided in two groups. At first there is one teacher which will be
spending his/her time teaching customers and children how to manage handling a
computer. Besides these teaching employees there is another group of employer.
This employer will fulfil the role of supporting staff. Their job is
Mainly to support customers with any problems and next to that they will Appoint
customers computers.

Personnel plan Monthly salary

Teacher 1 2000 birr
Supporting staff member 1 1500 birr
Total 3500 birr

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7.2 Financial plan

The financial plan will cover the following:

 Required Cost of Start-Up

 Profit and Loss
 Cash Flow
 Balance Sheet

7.2.1 Start-up funding

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

7.2.2 Projected profit and loss

Profit and loss Year 1 Year 2 Year 3

Sales
Estimated customer 2050 2340 2620
Hourly fee 8 birr 10 birr 10 birr
Total sales 65,545 birr 68,900 birr 70,230 birr
Expenses
Teacher 24,000 birr 24,000birr 24,000birr
Supporting staff 18,000 birr 18,000 birr 18,000 birr
Marketing/promotion
Posters 150 birr 100 birr 50 birr
Advertising 5000 birr - -

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Chairs 3200 birr - -
Computer stands 21,000 birr - -
Electronics
Scanner 4000 birr - -
Printer 42,00 birr -- -
Computers 27,000 birr - -
Other expenses
Computer electricity** 950 birr 950 birr 950 birr
Internet 1600 birr 1600 birr 1600 birr
Additional unexpected expenses 3500 birr 3500 birr 3500 birr
Total expenses 107,608 birr 48,150 birr 48,100 birr
Total sales 85,545 birr 92,900 birr 93,230 birr
Total expenses 107,608 birr 48,150 birr 48,100 birr
Profit -22,063 birr 44,750 birr 45,130 birr

7.2.3 Cash Flow

Cash flow data is presented in the table below.

Table: Cash Flow

Cash received 2008EC 2009EC 2010EC

Cash from operations
Cash sales 248,878 birr 303,548 birr 333,903 birr
Subtotal cash from operations 248,878 birr 303,548 birr 333,903 birr
Additional cash received
New current borrowing 2000 birr 5000 birr -
Subtotal cash received 250,678 birr 308,548 birr 333,903 birr
Expenditures
Cash spending 14,345 birr 15,972 birr 17,218 birr
Payment of accounts payable 224,30 birr 282,485 birr 302,556 birr

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Subtotal spent on operations 238,705 birr 298,457 birr 319,773 birr
Additional cash spent
Principal repayment of current 9290 birr 2000 birr -
borrowing
Long term liabilities principal 9600 birr 5000 birr 4800 birr
repayment
Subtotal cash spent 257,595 birr 305,457 birr 324,573 birr
Net cash flow 6,717 birr 3,091 birr 9,330 birr
Cash balance 17,283 birr 20,374 birr 29,704 birr

1 7.2.4 Balance sheet

7.2.4.1 Projected Balance Sheet

Our project balance sheet is presented in the table below.

Table: Balance Sheet

Assets Year 1 Year 2 Year 3

Current Assets
Cash 50,000 birr 74,987 birr 98,459 birr
Inventory 10,000birr 650 birr 958 birr
Other Current Assets 20,000 birr - -
Total Current Assets 80,000 birr 75,637 birr 99,417 birr
Long-term Assets 20,000 birr - -
Accumulated Depreciation - - -
Total Long-term Assets 20,000 birr - -
Total Assets 120,000 birr 75,637 birr 99,417 birr
Liabilities and Capital

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Accounts Payable 23,000 birr 27,345 birr 30,289 birr
Current Borrowing 5,000 birr 9050 birr 15,000 birr
Subtotal Current Liabilities 28,000 birr 36,395 birr 45,289 birr
Long-term Liabilities 10,000 birr 18,580 birr 11,200 birr
Total Liabilities 38,000 birr 54,975 birr 55,489 birr
Paid-in capital 25,000 birr 85,000 birr 85,000 birr
Retained Earnings 7,000 birr 93,600 birr 87,200 birr
Earnings 18,000 birr 18,900 birr 24,890 birr
Total Capital 60,000 birr 9400 birr 31,100 birr
Total Liabilities and Capital 120,000 birr 59,000 birr 70,150 birr
Net Worth 60,000 birr 9400 birr 31,100 birr

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