ELIY SPARKLE BUSINESS

PROJECT PROPOSAL
STATIONERY AND INTERNET CAFE

ELIY SPARKLE BUSINESS PARK

Plan Outline

1. Executive Summary
2. Company Summary
3. Services
4. Market Analysis Summary
5. Marketing Strategy and Implementation Plan
6. Management Plan
7. Financial Plan
8. Appendix

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Executive Summary

Eliy Sparkle, unlike a typical Internet Cafe and Stationery , will provide a unique forum
for communication and entertainment through the medium of the Internet. Eliy Sparkle
is the answer to an increasing demand. The public wants: (1) access to the methods of
communication and volumes of information now available on the Internet, and (2)
access at a cost they can afford and in such a way that they aren't socially, economically,
or politically isolated. Eliy Sparkle 's goal is to provide the community with a social,
educational, entertaining, atmosphere for worldwide communication, on the other side,
it will also provide stationery items especially for schools. With the current government
and its implementation on how schools will be spending money on stationery, Eliy
Sparkle will provide just what is needed.

This business plan is prepared to obtain financing in the amount of K172,500.00n The
supplemental financing is required to begin work on site preparation and modifications,
equipment purchases, and to cover expenses in the first year of operations. Additional
financing has already been secured in the form of an already existing stationery and
internet café at Hope Ways Farms opposite Senama Traffic lights.

The proposed finance expected investment will allow Eliy Sparkle to provide its
customers with a full featured Internet Cafe and Stationery . A unique, upscale, and
innovative environment is required to provide the customers with an atmosphere that
will spawn socialization. Successful operation in the first two months will provide Eliy
Sparkle with a customer base that will allow it to be self-sufficient in the third and
fourth month as it already has a share in the market and potential clients.

Objectives

Eliy Sparkle's objectives for the first three months of operation include:

 The creation of a unique, upscale, innovative environment that will differentiate

Eliy Sparkle from local internet cafe and stationeries.
 Educating the community on what the Internet has to offer, cyber security,
software development and website creation through radio as KFM and Tuta
Stations.

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 The formation of an environment that will bring people with diverse interests and
backgrounds together in a common forum.
 Offer schools and other government entities with stationery supplies
 Affordable access to the resources of the Internet and other online services.

Keys to Success

The keys to the success for Eliy Sparkle are:

 The creation of a unique, innovative, upscale atmosphere that will differentiate

Eliy Sparkle from other local Internet Cafe and Stationeries.
 The creation of an environment that won't intimidate the novice user. Eliy Sparkle
will position itself as an educational resource for individuals wishing to learn about
the benefits the Internet has to offer.
 A variety of stationery items that every school needs.
 A café and stationery that will provide teaching and software development which
no one is doing in Mansa at the moment, it is all done outside Mansa.

Mission

As the popularity of the Internet continues to grow at an exponential rate, easy and
affordable access is quickly becoming a necessity of life. Eliy Sparkle provides
communities with the ability to access the Internet. People of all ages and backgrounds
will come to enjoy the unique, upscale, educational, and innovative environment that
Eliy Sparkle provides.

Risks

The risks involved with starting Eliy Sparkle are:

 Will there be a demand for ‘all’ the services offered by Eliy Sparkle in Mansa?
 Will the popularity of the Internet continue to grow, or is the Internet a fad?
 Will individuals be willing to pay for the service Eliy Sparkle offers?

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 Will the cost of accessing the Internet from home drop so significantly that there
will not be a market for Internet Cafe and Stationery s such as Eliy Sparkle?

Company Summary

Eliy Sparkle, soon to be located in Mansa town from Senama if at all it receives the
funding in form of a loan and it will offer the community easy and affordable access to
the Internet and Stationery items. Eliy Sparkle will provide full access to email, www,
FTP, Usenet and other Internet applications, computer software repairs, website
designs, software development and teaching services. Eliy Sparkle will also provide
customers with a unique and innovative environment for stationery items.

Eliy Sparkle will appeal to individuals of all ages and backgrounds. The instructional
Internet classes, and the helpful staff that Eliy Sparkle provides, 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. The
town centre location will provide business people with convenient access to their online
needs and stationery services as printing, photocopying, binding, laminating, scanning
and many more…!

Company Ownership

Eliy Sparkle is a business held by 10 people, of which each has a specific skill and
specialisation that contributes to the makeup of the company. The CEO of the company
is Enock Mulenga, followed by Chiwila Esther as the finance manager, Kabwe Kaluba
as marketing manager, Chewe Chipulu as software and computer repair specialist,
Naomi Mulenga as stationery specialist and other members with some other skills.

Start-up Summary

Eliy Sparkle's start-up costs will cover internet cafe and stationery making equipment,
site renovation and modification, capital to cover losses in the first year, and the
communications equipment necessary to get its customers online and do advertisement.

The communications equipment necessary to provide Eliy Sparkle's customers with a

high-speed connection to the Internet and the services it has to offer make up a large

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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 two
laser printers and a scanner.

In addition, costs will be allocated for the purchase of coffee making equipment and a
fridge for soft drinks as some clients may spend a lot of time thereby require a quick
freshening up. Stationary items to supply schools and other entities.

The site will require funds for renovation and modification. A single estimated figure
will be allocated for this purpose. The renovation/modification cost estimate will
include the costs associated with preparing the site for opening business.

Start-up Expense Details:

ITEMS/ DETAILS PRICE AVAILABILITY PRIORITY

REQUIREMENTS (ESTIMATE) 1/3
Paper work and legal ZRA, PACRA, K1,000 Done except 1
requirements. Business levy, TPIN. business levy
for the newly
to be
proposed
shop
Renovation and Tables, lighting, K7,000 Not done 1
modification of the shop caballing, security
and painting
including wording.
Advertisement Through website, K4,500 Not done 1
flyers, radio stations
and brochures
10 computers (desk tops) 5 for internet users, 2 K20, 000 We already 1
for stationery, 2 for have five
web/software design properly
and 1 for repairs. working so
well buy 5
more at
K4,000 each

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 Router Internet router for the K1, 500 Not available 1
coverage of
200meters
Caballing Network and power K2, 000 16 meters 1
extensions (UTP available
cables and power
adapters)
printers Colour and black ink K45, 000 3 available 1
printer and but worn out
photocopier ( needs
intervention)
scanner Pdf, photo and K3,000 Not available 2
flatbed scanner
Binding machine A6 – A3 binder K6, 500 A4 binder 1
available (A3
needed)
Laminating machine From small ID to A3 K7,000 Not available 1
Stationery items All stationery items K60, 000 Some 1
available
Rent Rent for the first 6 K9, 000 - 1
months
Miscellaneous Unforeseen expenses K 6, 000 - 2
in the first 3 months
Chairs 5 Chairs for internet - available 1
users and 5 more for
customers
GRAND TOTAL K172,500

Competitive Comparison

Eliy Sparkle will be the first Internet Cafe and Stationery in Mansa to provide teaching
basic ICT, Cyber security and provide government institutions with stationery with
proper documentation.

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Technology

Eliy Sparkle will invest in high-speed computers to provide its customers with a fast
and efficient connection to the Internet. The computers will be reliable and fun to work
with. Eliy Sparkle will continue to upgrade and modify the systems to stay current with
communications technology. One of the main attractions associated with Internet Cafe
and Stationery s, is the state of the art equipment available for use. Not everyone has a
Pentium PC in their home or office.

Future Services

As Eliy Sparkle 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, Eliy Sparkle
will continue to add new services to keep its customer base coming back for more
including computer sales. And away from this, it will venture into aqua culture, poultry,
piggery and gardening/farming at large with such things as egg production.

Market Analysis Summary

Eliy Sparkle is faced with the exciting opportunity of being the first-mover in the Mansa
cyber-Internet Cafe and Stationery market. The consistent popularity of stationery,
combined with the growing interest in the Internet, has been proven to be a winning
concept in other markets and will produce the same results in Mansa town centre.

Market Segmentation

Eliy Sparkle's customers can be divided into three groups. The first group is familiar
with the Internet and desires a progressive and inviting atmosphere where they can get
out of their offices or bedrooms and enjoy a great use of powerful computers and
internet. The second group is not familiar with the Internet, yet, and is just waiting for
the right opportunity to enter the online community. And the third group is the
stationery buyers and service delivery in need as Mansa college of nursing and
education even other schools as Mutende Secondary and many others.

Eliy Sparkle's target market falls anywhere between the ages of 15 and 65. This
extremely wide range of ages is due to the fact that both stationery and the Internet
appeal to a variety of people. In addition to these three broad categories, Eliy Sparkle's
target market can be divided into more specific market segments. The majority of these

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individuals are students and business people. See the Market Analysis chart and table
below for more specifics.

Marketing Strategy and Implementation Summary

Eliy Sparkle has three main strategies. The first strategy focuses on attracting novice
Internet users. By providing a novice friendly environment, Eliy Sparkle 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 Eliy Sparkle. Power users have
knowledge and web-browsing experience that novice Internet users find attractive and
exciting.

The third strategy focuses on building a social environment for Eliy Sparkle customers.
A social environment, that provides entertainment, will serve to attract customers that
wouldn't normally think about using the Internet. Once on location at Eliy Sparkle,
these customers that came for the more standard stationery items, will realize the
potential entertainment value the Internet can provide.

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SWOT Analysis

The SWOT analysis provides us with an opportunity to examine the internal strengths
and weaknesses Eliy Sparkle must address. It also allows us to examine the
opportunities presented to Eliy Sparkle as well as potential threats.

Eliy Sparkle has a valuable inventory of strengths that will help it succeed. These
strengths include: a knowledgeable and friendly staff, state-of-the-art computer
hardware, and a clear vision of the market need. Strengths are valuable, but it is also
important to realize the weaknesses Eliy Sparkle must address. These weaknesses
include: a dependence on quickly changing technology, and the cost factor associated
with keeping state-of-the art computer hardware.

Eliy Sparkle's strengths will help it capitalize on emerging opportunities. These

opportunities include, but are not limited to, a growing population of daily Internet
users, and the growing social bonds fostered by the new Internet communities. Threats
that Eliy Sparkle should be aware of include, the rapidly falling cost of Internet access,
and emerging local competitors.

Strengths

1. Knowledgeable and friendly staff. We've gone to great lengths at Eliy Sparkle to
find people with a passion for teaching and sharing their Internet experiences. Our
staff is both knowledgeable and eager to please.
2. State-of-the art equipment. Part of the Eliy Sparkle experience includes access to
state-of-the-art computer equipment. Our customers enjoy beautiful flat-screen
displays, fast machines, and high-quality printers.
3. Upscale ambiance. When you walk into Eliy Sparkle, you'll feel the technology.
High backed mahogany booths with flat-screen monitors inset into the walls provide
a cozy hideaway for meetings and small friendly gatherings. Large round tables with
displays viewable from above provide a forum for larger gatherings and friendly
"how-to" classes on the Internet. Aluminium track lighting and art from local artists
sets the mood. Last, but not least, quality cappuccino machines and a glass pastry
display case provide enticing refreshments.

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4. Clear vision of the market need. Eliy Sparkle knows what it takes to build an upscale
cyber Internet Cafe and Stationery . We know the customers, we know the
technology, and we know how to build the service that will bring the two together.

Weaknesses

1. A dependence on quickly changing technology. Eliy Sparkle is a place for people to

experience the technology of the Internet. The technology that is the Internet
changes rapidly. Product lifecycles are measured in weeks, not months. Eliy Sparkle
needs to keep up with the technology because a lot of the Eliy Sparkle experience is
technology.
2. Cost factor associated with keeping state-of-the-art hardware. Keeping up with the
technology of the Internet is an expensive undertaking. Eliy Sparkle needs to balance
technology needs with the other needs of the business. One aspect of the business
can't be sacrificed for the other.

Opportunities

1. 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 Eliy Sparkle offers.
2. Social bonds fostered by the new Internet communities. The Internet is bringing
people from across the world together unlike any other communication medium.
Eliy Sparkle will capitalize on this social trend by providing a place for smaller and
local Internet communities to meet in person. Eliy Sparkle 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.
3. As the new government has requested and given guide on how to spend money sent
in schools as grant for stationery, the procurement office of every government school
will not buy anything from any stationary shop but one that has full documentation
and can properly quote, invoice, receipt and accept cheque as form of payment
which we are able to do and have already done so with Mwang’uni primary school,
Provincial Teacher Resource Center at Mutende (PRCC) and Examination Council
of Zambia in Mansa (ECZ).

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Threats

1. 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. Eliy Sparkle is aware of this threat and
will splendidly see how to handle this and work around pricing.
2. Emerging local competitors. Currently, Eliy Sparkle is enjoying a first-mover
advantage in the local cyber-Internet Cafe and Stationery market. However,
additional competitors are on the horizon, and we need to be prepared for their entry
into the market. Many of our programs will be designed to build customer loyalty,
and it is our hope that our quality service and up-scale ambiance won't be easily
duplicated.

Strategy Pyramid

The following subtopics provide an overview of Eliy Sparkle's three key strategies.
Strategy pyramid graphics are presented in the appendix of this plan.

Attract Novice Internet Users

Eliy Sparkle's first strategy focuses on attracting novice Internet users. Eliy Sparkle
plans on attracting these customers by:

 Providing a novice friendly environment. Eliy Sparkle 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 Eliy Sparkle employee will always be available to assist.
 Eliy Sparkle will offer introductory classes on the Internet and email. These classes
will be designed to help novice users familiarize themselves with these key tools
and the Eliy Sparkle computer systems.

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Attract Power Internet Users

Eliy Sparkle's second strategy will be focused on attracting power Internet users. Power
Internet users provide an important function at Eliy Sparkle. Eliy Sparkle 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.

Social Hub

The third strategy focuses on building a social environment for Eliy Sparkle customers.
A social environment, that provides entertainment, will serve to attract customers that
wouldn't normally think about using the Internet. Once on location at Eliy Sparkle,
these customers that came for the more standard entertainment offerings, will realize
the potential entertainment value the Internet can provide.

Competitive Edge

Eliy Sparkle will follow a differentiation strategy to achieve a competitive advantage

in the Internet Cafe and Stationery market. By providing Internet service, Eliy Sparkle
separates itself from all other Internet Cafe and Stationery s in Mansa. In addition, Eliy
Sparkle provides a comfortable environment with coffee and bakery items,
distinguishing itself from other Internet providers in Mansa.

Milestones

The Eliy Sparkle management team has established some basic milestones to keep the
business plan priorities in place. These Milestones Table below will be updated as the
year progresses using the actual tables. New milestones will be added as the first year
of operations commences.

Sales Strategy

As a retail establishment, Eliy Sparkle employs people to handle sales transactions.

Computer literacy is a requirement for Eliy Sparkle employees. If an employee does
not possess basic computer skills when they are hired, they are trained by our full-time
technician. Our full-time technician is also available for customers in need of

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 assistance. Eliy Sparkle's commitment to friendly, helpful service is one of the key
factors that distinguishes Eliy Sparkle from other Internet Cafe and Stationery s.

Sales Forecast

Sales: Eliy Sparkle based their projected on 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.

Cost of Sales: The cost of goods sold for stationery-related products was determined by
the "retail profit analysis" we obtained from COMPSTAT Limited Company.

SALES FIRST 6 MONTHS 2023 2024 2025

Internet use K18,000 K36,000 K90,000 K140,000
Software (web/application making) K45,000 K90,000 K100,000 K130,000
Stationery K45,000 K55,000 K70,000 K100,000
Computer repairs/sales K6,000 K10,000 K18,000 K45,000

Projected Profit and Loss

Payroll Expense: The founder of Eliy Sparkle, Enock Mulenga, will receive a salary of
K24,000 in year one, K36,000 in year two, and K48,000 in year three. Eliy Sparkle
intends to hire six part-time employees by the end of year one and a full-time technician.

Rent Expense: Eliy Sparkle is leasing a shop in Senama at K600 per month. Eliy
Sparkle will then move into town and be expected to pay around K1,500 per month.

Utilities Expense: As stated in the contract, the lessor is responsible for the payment of
utilities including electricity, garbage disposal, and real estate taxes, but since the new
building in town has not been rented yet, we are not sure if the lessor will pay for such
expenses as the one we have now.

Marketing Expense: Eliy Sparkle will allocate K6,000 for promotional expenses over
the first year. This money will be used for renting the host of the website, radio adverts,
flyers and brochures

Insurance Expense: Eliy Sparkle has allocated K2,000 for insurance for the first year.
As revenue increases in the second and third year of business, Eliy Sparkle intends to
invest more money for additional insurance coverage.

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Depreciation: In depreciating our capital equipment, Eliy Sparkle used the Modified
Accelerated Cost Recovery Method. We depreciated our computers over a five-year
time period and our fixtures over seven years.

Taxes: Eliy Sparkle is also taxed as it were, at 16%.

COMPANY DETAILS

Company name: Eliy Sparkle Business Park

Company email: eliysparklebusinesspark@gmail.com

TPIN: 1018409224

Date of incorporation: 27th January, 2021

Company number (PACRA): 320210018677

Account number: 0242040000397

CEO: Mulenga Enock

Phone number: 0972756847

Email: elizchiermah@gmail.com

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