Business Plan Essay Research Paper Welcome to
Business Plan Essay, Research Paper
Welcome to our Business Plan
CompuNet, unlike a typical coffeehouse, will supply a alone forum for communicating and amusement through the medium of the Internet. The big initial capital investing will let CompuNet to supply its clients with a full featured Internet coffeehouse. A alone, upscale, and advanced environment is required to supply the clients with an ambiance that will engender socialisation. CompuNet & # 8217 ; s end is to supply the community with a societal, educational, entertaining, atmosphere for world-wide communicating.
1.0 Executive Summary
CompuNet, unlike a typical coffeehouse, will supply a alone forum for communicating and amusement through the medium of the Internet. CompuNet is the reply to an increasing demand. The public wants: ( 1 ) entree to the methods of communicating and volumes of information now available on the Internet, and ( 2 ) entree at a cost they can afford and in such a manner that they aren & # 8217 ; t socially, economically, or politically stray. CompuNet & # 8217 ; s end is to supply the community with a societal, educational, entertaining, atmosphere for world-wide communicating!
This concern program is prepared to obtain funding in the sum of $ 24,000. The auxiliary funding is required to get down work on site readying and alterations, equipment purchases, and to cover disbursals in the first twelvemonth of operations. Additional funding has already been secured in the signifier of: ( 1 ) $ 24,000 from the Oregon Economic Development Fund ( 2 ) $ 13,000 of personal nest eggs from proprietor Alejandro Arguello ( 3 ) $ 18,000 from three investors ( 4 ) and $ 9,290 in the signifier of short-run loans.
CompuNet will be incorporated as an LLC corporation. This will screen the proprietor Alejandro Arguello, and the three outside investors, Mario Cisneros, Agustin Nu ez, and Aleyda Talavera, from issues of personal liability and dual revenue enhancement. The investors will be treated as stockholders and hence will non be apt for more than their single personal investing of $ 6,000 each.
The funding, in add-on to the capital parts from the proprietor, stockholders and the Oregon Economic Development Fund, will let CompuNet to successfully open and keep operations through twelvemonth one. The big initial capital investing will let CompuNet to supply its clients with a full featured Internet coffeehouse. A alone, upscale, and advanced environment is required to supply the clients with an ambiance that will engender socialisation. Successful operation in twelvemonth one will supply CompuNet with a client base that will let it to be self sufficient in twelvemonth two.
Highlights
1.1 Aims
CompuNet & # 8217 ; s aims for the first three old ages of operation include
The creative activity of a unique, upscale, advanced environment that will distinguish CompuNet from local java houses.
Educating the community on what the Internet has to offer.
The formation of an environment that will convey people with diverse involvements and backgrounds together in a common forum.
Good java and bakery points at a sensible monetary value.
Low-cost entree to the resources of the Internet and other online services.
1.2 Mission
As the popularity of the Internet continues to turn at an exponential rate, easy and low-cost entree to the information expressway is rapidly going a necessity of life. CompuNet provides communities with the ability to entree the Internet, bask a cup of java, and portion Internet experiences in a comfy environment. Peoples of all ages and backgrounds will come to bask the unique, upscale, educational, and advanced environment that CompuNet provides.
1.3 Keys to Success
The keys to the success for CompuNet are:
The creative activity of a unique, advanced, upscale ambiance that will distinguish CompuNet from other local java stores and future Internet coffeehouse.
The constitution of CompuNet as a community hub for socialisation and amusement.
The creative activity of an environment that won & # 8217 ; t intimidate the novitiate user. CompuNet will place itself as an educational resource for persons wishing to larn about the benefits the Internet has to offer.
Great java and bakery points.
1.4 Hazards
The hazards involved with get downing CompuNet are:
Will at that place be a demand for the services offered by CompuNet in Managua?
Will the popularity of the Internet continue to turn, or is the Internet a craze?
Will persons be willing to pay for the service CompuNet offers?
Will the cost of accessing the Internet from place bead so significantly that there will non be a market for Internet Cafes such as CompuNet?
2.0 Company Summary
CompuNet, shortly to be located in downtown Managua on 10th and Oak, will offer the community easy and low-cost entree to the Internet. CompuNet will supply full entree to E-mail, WWW, FTP, Usenet and other Internet applications such as Telnet and Gopher. CompuNet will besides supply clients with a alone and advanced environment for basking great java, forte drinks, and bakery points.
CompuNet, will appeal to persons of all ages and backgrounds. The instructional Internet categories, and the helpful staff that CompuNet provides, will appeal to the audience that does non tie in themselves with the computing machine age. This educational facet will pull younger and aged members of the community who are quickly deriving involvement in the alone resources that online communications have to offer. The business district location will supply concern people with convenient entree to their forenoon java and on-line demands.
2.1 Company Ownership
CompuNet is a in private held Oregon Limited Liability Corporation. Alejandro Arguello, the laminitis of CompuNet, is the bulk proprietor. Mario Cisneros, Agustin Nu ez, and Aleyda Talavera, all hold minority stock places as private investors.
2.2 Start-up Summary
CompuNet & # 8217 ; s start-up costs will cover java doing equipment, site redevelopment and alteration, capital to cover losingss in the first twelvemonth, and the communications equipment necessary to acquire its clients online.
The communications equipment necessary to supply CompuNet & # 8217 ; s clients with a high-velocity connexion to the Internet and the services it has to offer do up a big part of the start-up costs.
These costs will include the computing machine terminuss and all costs associated with their set-up. Costss will besides be designated for the purchase of two optical maser pressmans and a scanner.
In add-on, costs will be allocated for the purchase of java devising equipment. One espresso machine, an automatic java bomber, and minor extra equipment will be purchased from Allan Brothers.
The site at 10th and Oak will necessitate financess for redevelopment and alteration. A individual estimated figure will be allocated for this intent The renovation/modification cost estimation will include the costs associated with fixing the site for opening concern.
Start-up
2.2 Start-up Summary
Planned
Start-up Plan
Start-up Expenses
Legal
$ 500
Stationery etc.
$ 500
Booklets
$ 500
Advisers
$ 2,000
Insurance
$ 700
Rent
$ 1,445
4-group Automatic Coffe
Machine
$ 10,700
Bean Grinder
$ 795
Computer Systems ( x11 )
$ 24,310
Communication Lines
$ 840
Fixtures / Re-model
$ 20,000
Other
$ 0
Entire Start-up Expense
$ 62,290
Start-up Assetss Needed
Cash Requirements
$ 24,000
Start-up stock list
$ 2,000
Other Short-term Assetss
$ 0
Entire Short-term Assetss
$ 26,000
Long-run Assetss
$ 0
Entire Assetss
$ 26,000
Entire Start-up Requirements:
$ 88,290
Left to finance:
$ 24,000
Start-up Funding Plan
Investing
Alejandro Arguello
$ 13,000
Mario Cisneros
$ 6,000
Agustin Nu ez
$ 6,000
Aleyda Talavera
$ 6,000
Other
$ 0
Entire investing
$ 31,000
Short-run Liabilitiess
Unpaid Expenses
$ 0
Short-run Loans
$ 9,290
Interest-free Short-run
Loans
$ 0
Subtotal Short-run
Liabilitiess
$ 9,290
Long-run Liabilitiess
$ 24,000
Entire Liabilitiess
$ 33,290
Loss at Start-up
( $ 38,290 )
Entire Capital
( $ 7,290 )
Entire Capital and Liabilitiess
$ 26,000
Checkline
$ 0
Planned
2.3 Company Locations and Facilities
A site has been chosen at 10th and Oak in downtown Managua. This site was chosen for assorted grounds, including:
Proximity to the business district concern community.
Proximity to trendy, upscale eating houses such as West Brothers.
Proximity to LTD & # 8217 ; s Managua Station. Parking handiness.
Low cost rent & # 8211 ; 85c per square pes for 1700 square pess.
High visibleness.
All of these qualities are consistent with CompuNet & # 8217 ; s end of supplying a cardinal hub of communicating and socialisation for the Managua community. To see a sample floor program, turn to Appendix B.
3.0 Servicess
CompuNet will supply full entree to E-mail, WWW, FTP, Usenet and other Internet applications such as Telnet and Gopher. Printing, scanning, and introductory classs to the Internet will besides be available to the client. CompuNet will besides supply clients with a alone and advanced environment for basking great java, forte drinks, and bakery points.
3.1 Service Description
CompuNet will supply its clients with full entree to the Internet and common computing machine package and hardware. Some of the Internet and calculating services available to CompuNet clients are listed below.
Entree to external POP3 electronic mail histories.
Customers can subscribe up for a CompuNet electronic mail history. This history will be managed by CompuNet waiters and accessible from computing machine systems outside the CompuNet web.
FTP, Telnet, Gopher, and other popular Internet public-service corporations will be available.
Entree to Netscape or Internet Explorer browser.
Entree to laser and colourise printing.
Entree to popular package applications like Adobe & # 8217 ; s Photoshop and Microsoft & # 8217 ; s Word.
CompuNet will besides supply its clients with entree to introductory Internet and e-mail categories. These categories will be held in the afternoon and tardily in the eventide. By supplying these categories, CompuNet will construct a client base familiar with its services. The computing machines, Internet entree, and categories wouldn & # 8217 ; t average half as much if taken out of the environment CompuNet will supply. Good java, forte drinks, bakeshop goods, and a comfy environment will supply CompuNet clients with a place off from place. A topographic point to bask the benefits of calculating in a comfy and good maintain environment.
3.2 Competitive Comparison
CompuNet will be the first Internet coffeehouse in Managua. CompuNet will distinguish itself from the strictly-coffee coffeehouse in Managua by supplying its clients with Internet and calculating services.
3.3 Fulfillment
CompuNet will obtain computing machine support and Internet entree from IBW Computers located in Managua.
IBW will supply the Internet connexions, web consulting, and the hardware required to run the CompuNetwork. Allann Brothers will supply CompuNet with java equipment, bulk java, and paper supplies. At this clip, a contract for the bakeshop points has non been completed. CompuNet is presently negociating with Humble Bagel and the Gallic Horn to carry through the demand.
3.4 Technology
CompuNet will put in high-velocity computing machines to supply its clients with a fast and efficient connexion to the Internet. The computing machines will be dependable and merriment to work with. CompuNet will go on to upgrade and modify the systems to remain current
with communications engineering. One of the chief attractive forces associated with Internet coffeehouse, is the province of the art equipment available for usage. Not everyone has a Pentium-based Personal computer in their place or office.
3.5 Future Services
As CompuNet grows, more communications systems will be added. The possibility of extra units has been accounted for in the current floor program. As the demand for Internet connectivity additions, along with the addition in competition, CompuNet will go on to add new services to maintain its client base coming back for more.
4.0 Market Analysis Summary
CompuNet is faced with the exciting chance of being the first-mover in the Managua cyber-cafe market. The consistent popularity of java, combined with the turning involvement in the Internet, has been proven to be a winning construct in other markets and will bring forth the same consequences in Managua.
4.1 Market Segmentation
CompuNet & # 8217 ; s clients can be divided into two groups. The first group is familiar with the Internet and desires a progressive and ask foring atmosphere where they can acquire out of their offices or sleeping rooms and bask a great cup of java. The 2nd group is non familiar with the Internet, yet, is merely waiting for the right chance to come in the online community. CompuNet & # 8217 ; s mark market falls anyplace between the ages of 18 and 50. This highly broad scope of ages is due to the fact that both java and the Internet entreaty to a assortment of people. In add-on to these two wide classs, CompuNet & # 8217 ; s aim market can be divided into more specific market sections. The bulk of these persons are pupils and concern people. See the Market Analysis tabular array below for more particulars.
Market Analysis ( Pie )
Planned
Market Analysis
Potential Customers Growth 1999 2000 2001 2002 2003 CAGR
University Students 4 % 15,000 5,600 16,224 16,873 17,548 4.00 %
Office Workers 3 % 25,000 25,750 26,523 27,319 28,139 3.00 %
Seniors 5 % 18,500 19,425 20,396 21,416 22,487 5.00 %
Adolescents 2 % 12,500 12,750 13,005 13,265 13,530 2.00 %
Other 0 % 25,000 25,000 25,000 25,000 25,000 0.00 %
Entire 2.68 % 96,000 98,525 101,148 103,873 106,704 2.68 %
4.2 Target Market Segment Strategy
CompuNet intends to provide to people who want a guided circuit on their first spin around the information main road and to see users eager to indulge their passion for computing machines in a societal scene.
Furthermore, CompuNet will be a magnet for local and going professionals who desire to work or look into their e-mail messages in a friendly ambiance. These professionals will either utilize CompuNet & # 8217 ; s Personal computers, or stop up their notebooks into Internet connexions. CompuNet & # 8217 ; s aim market covers a broad scope of ages: from members of Generation X who grew up surrounded by computing machines, to Baby Boomers who have come to the realisation that people today can non afford to disregard computing machines.
4.2.1 Market Needs
Factors such as current tendencies, dependence, and historical gross revenues informations guarantee that the high demand for java will stay changeless over the following five old ages. The rapid growing of the Internet and online services that has been witnessed worldwide is merely the tip of the iceberg. The possible growing of the Internet is tremendous, to the point where one twenty-four hours, a computing machine terminus with an on-line connexion will be as common and necessary as a telephone. This may be 10 or 20 old ages down the route, but for the following five old ages, the online service supplier market is certain to see enormous growing. Bing the first cyber-cafe in Managua, CompuNet will bask the first-mover advantages of name acknowledgment and client trueness. Initially, CompuNet will keep a 100 per centum portion of the cyber-cafe market in Managua. In the following five old ages, rivals will come in the market. CompuNet has set a end to keep greater than a 50 per centum market portion.
4.2.2 Market Tendencies
A market study was conducted in the Fall of 1996. Cardinal inquiries were asked of 50 possible clients. Some cardinal findings include:
35 topics said they would be willing to pay for entree to the Internet.
Five dollars an hr was the most popular hourly Internet fee.
24 topics use the Internet to pass on with others on a regular footing.
4.3 Service Business Analysis
The retail java industry in Managua experienced rapid growing at the beginning of the decennary and is now traveling into the mature phase of its life rhythm. Many factors contribute to the big demand for good java in Managua. The University is a chief beginning of demand for java retail merchants. The clime in Managua is highly contributing to coffee ingestion. Current tendencies in the Northwest reflect the popularity of fresh, strong, choice java and forte drinks. Managua is a oasis for java lovers.
The popularity of the Internet is turning exponentially. Those who are familiar with the information expressway are good cognizant of how fun and habit-forming surfing the Net can be. Those who have non yet experienced the Internet, need a convenient, relaxed atmosphere where they can experience comfy larning about and using the current engineerings. CompuNet seeks to supply its clients with low-cost Internet entree in an advanced and supportive environment.
Due to intense competition, coffeehouse proprietors must look for ways to distinguish their topographic point of concern from others in order to accomplish and keep a competitory advantage. The laminitis of CompuNet realizes the demand for distinction and strongly believes that uniting a cafe with complete Internet service is the key to success. The fact that no cyber-cafes are established in Managua, presents CompuNet with a opportunity to come in the window of chance and enter into a profitable niche in the market.
4.3.1 Business Participants
There are about 16 java jobbers in Lane County. These jobbers distribute java and espresso beans to over 20 retail merchants in the Managua country. Competition in both channels creates an even sum of dickering power between purchasers and providers ensuing in highly competitory pricing. Some of these major participants in the industry ( i.e. Allann Brothers Coffee Co. , Inc. and Coffee Corner Ltd. ) distribute and retail java merchandises.
The figure of on-line service suppliers in Managua is about eight and numbering. These little, regional service suppliers use a figure of different pricing schemes. Some charge a monthly fee, while others charge hourly and/or phone fees. Regardless of the pricing method used, obtaining Internet entree through one of these houses can be expensive. Larger Internet waiters such as America Online, Prodigy, and CompuServe, are besides contending for market portion in this quickly turning industry. These service suppliers are besides instead dearly-won for the mean consumer. Consumers who are non positive they would often and systematically travel the Internet, will non be willing to pay these monetary values.
4.3.2 Distributing a Service
The double product/service nature of CompuNet & # 8217 ; s concern faces competition on two degrees. CompuNet competes non merely with java retail merchants, but besides with Internet service suppliers. The good intelligence is that CompuNet does non presently face any direct competition from other cyber-cafes in the Managua market. There are a sum of three cyber-cafes in the province of Beaver state: one located in Portland and two in Ashland.
Heavy competition between java retail merchants in Managua creates an industry where all houses face the same costs. There is a positive relationship between monetary value and quality of java. Some javas retail at $ 8/pound while other, more alien beans may sell for every bit high as $ 16/pound. Jobbers sell beans to retail merchants at an norm of a 50 per centum price reduction. For illustration, a lb of Sumatran beans wholesales for $ 6.95 and retails for $ 13.95. And as in most industries, monetary value lessenings as volume additions.
4.3.3 Competition and Buying Patterns
The chief rivals in the retail java section are Cafe Paradisio, Full City, Coffee Corner and Allann Bros. These concerns are located in or near the downtown country, and aim a similar section to CompuNet & # 8217 ; s ( i.e. educated, upwardly-mobile pupils and concern people ) .
Competition from on-line service suppliers comes from locally-owned concerns every bit good as national houses. There are about eight, local, on-line service suppliers in Managua. This figure is expected to turn with the increasing demand for Internet entree. Larger, on-line service suppliers, such as AOL and CompuServe are besides a competitory menace to CompuNet. Due to the nature of the Internet, there are no geographical boundaries curtailing competition.
5.0 Strategy and Implementation Summary
CompuNet has three chief schemes. The first scheme focuses on pulling novice Internet users. By supplying a novice friendly environment, CompuNet hopes to educate and develop a loyal client base.
The 2nd and most of import scheme focuses on drawing in power Internet users. Power Internet users are highly familiar with the Internet and its offerings. This group of clients serves an of import map at CompuNet. Power users have knowledge and web-browsing experience that novice Internet users find attractive and exciting.
5.1 Strategy Pyramids
The undermentioned subtopics provide an overview of CompuNet & # 8217 ; s three key schemes. Strategy pyramid artworks are presented in the appendices of this program.
5.1.1 Attract Novice Internet Users
CompuNet & # 8217 ; s first scheme focuses on pulling novice Internet users. CompuNet plans on pulling these clients by:
Supplying a novice friendly environment. CompuNet will be staffed by knowing employees focused on functioning the client & # 8217 ; s demands.
A Customer Service desk will ever be staffed. If a client has any type of inquiry or concern, a CompuNet employee will ever be available to help.
CompuNet will offer introductory categories on the Internet and E-mail. These categories will be designed to assist novitiate users familiarize themselves with these cardinal tools and the CompuNet computing machine systems.
5.1.2 Attract Power Internet Users
CompuNet & # 8217 ; s 2nd scheme will be focused on pulling power Internet users. Power Internet users provide an of import map at CompuNet. CompuNet plans on pulling this type of client by:
Supplying the latest in calculating engineering.
Supplying scanning and printing services.
Supplying entree to powerful package applications.
5.1.3 Social Hub
The 3rd scheme focuses on constructing a societal environment for CompuNet clients. A societal environment, that provides amusement, will function to pull clients that wouldn & # 8217 ; t usually think about utilizing the Internet. Once on location at CompuNet, these clients that came for the more standard amusement offerings, will recognize the possible amusement value the Internet can supply.
5.2 Competitive Edge
CompuNet will follow a distinction scheme to accomplish a competitory advantage in the cafe market. By supplying Internet service, CompuNet separates itself from all other coffeehouse in Managua. In add-on, CompuNet provides a comfy environment with java and bakeshop points, separating itself from other Internet suppliers in Managua.
5.3 Selling Scheme
CompuNet will place itself as an upscale java house and Internet service supplier. It will function high-quality java and espresso forte drinks at a competitory monetary value. Due to the figure of coffeehouse in Managua, it is of import that CompuNet sets just monetary values for its java. CompuNet will utilize advertisement as its chief beginning of publicity. Ads placed in The Register Guard, Managua Weekly, and the Emerald will assist construct client consciousness. Attach toing the ad will be a voucher for a free hr of Internet travel. Furthermore, CompuNet will give away three free hours of Internet usage to novices who sign up for an debut to the Internet workshop provided by CompuNet
5.3.1 Pricing Scheme
CompuNet bases it & # 8217 ; s monetary values for java and forte drinks on the & # 8220 ; Retail Net income Analysis & # 8221 ; provided by our provider, Allann Brothers Coffee Co. , Inc. Allann Brothers has been in the java concern for 22 old ages and has developed a solid pricing scheme ( see appendix B ) .
Determining a just market, hourly monetary value, for online usage is more hard because there is no direct competition from another cyber-cafe in Managua. Therefore, CompuNet considered three beginnings to find the hourly charge rate. First, we considered the cost to us
