Internet Café Business Proposal

INTERNET CAFÉ BUSINESS PROPOSAL

CYBER ANGELO

A Business Proposal
In Partial Fulfillment of the Requirements
In TLE

Submitted By:
John Angelo Callejo Espedido

Submitted to:
Mr. Christopher Laya

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 Internet Café Business Proposal

1. Executive Summary

Cyber Angelo, located in Ibung, Villaverde, Nueva Vizcaya, offers a perfect spot
for the public in their necessities, gaming and leisure. It provides welcoming
environment to whoever wants to surf the internet for leisure, browse websites for
assignments or projects and connect with people through social media and others.

The business intends to obtain finance in few months from external source that
will be used for work on shop renovation, equipment purchases, and as operating cash
flow. Capital injection has been already prepared by the owner, John Angelo Espedido.

The money that will be acquired through this business proposal will allow Cyber
Angelo to successfully open and operate as an internet cafe. A comfortable and
innovative environment is provided to the customers with a casual atmosphere.

1.1 Objectives

Cyber Angelo’s objectives for the first year of operation include:

 The creation of a comfortable environment that will distinguish Cyber Angelo
from other internet shops.
 The creation of internet café that will give venue for people to surf the internet for
different purposes and for networking.
 The creation of internet café where customers can buy snacks inside the café

1.2 Mission
As Internet has become more popular and grown at an expeditious pace, easy
access has become a part of life. provides the public free access to the Internet, high-
quality food and beverages in a comfortable environment. People from different
backgrounds will come to enjoy the exclusive, stylish, and innovative environment that
Jedi Café offers.

1.3 Risks
Possible risks that Cyber Angelo could encounter are:
 Low demand of internet café during vacation.
 The popularity of the Internet stops to grow.
 Competitors that will open near the location

2. Company Description

Cyber Angelo which will soon open in Ibung, Villaverde, Nueva Vizvaya, will
provide the public especially the users a different venue for usual activities in internet
café. Staffs and management of Cyber Angelo are equipped with knowledge and
expertise in information technology, programing and management.

They will not only provide venue for internet gaming, surfing and networking but
also venue for leisure time because of the availability of store.

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2.1 Company Ownership

Cyber Angelo will be privately owned and managed by Mr. John Angelo Callejo
Espedido.

2.2 Start-up Summary

Cyber Angelo start-up costs will cover rent of building, renovation, furniture,
computers, store fund and running capital to cover expenses in the first year.

The biggest amount for that is included to the start-up cost includes the cost of
the computers and programs. Procurement of two printers with scanners and other
supplies will also be added to the start-up cost

Start-up Costs PESO

Legal Fee and Permits 1000
Tableware 1000
Consultation/ Installations 2,500
Insurance 1000
Rent 5,000
Mini Store 7,000
Computer Systems (x15), Software, Printer, Scanner 50,000
Internet Lines (PLDT) 1,700
Fixtures/Renovation 15,000
Total Start-up Costs 84200
Start-up Assets
Running Cash 30,000
Start-up Inventory 2,500
Total Assets 22,500
Total Requirements 116,700

2.3 Location
The Internet Café will be rented and it will be at Tiongson’s building/ Palengke.
1. The site is very strategic because it is located near Our Lady of Fatima School of
Villaverde and Villaverde Central School.
2. It is very accessible because it is in the center of Barangy Ibung.
3. It is also located near the Municipal Building
4. The rented space is very visible to people.

3. Services

Cyber Angelo will provide access to the Internet and computer services such as
printing, scanning to customers. It will also provide customers with a unique and
innovative environment for enjoying snacks.

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3.1 Service Description

Cyber Angelo will provide customers with access to the internet. Some of the
Internet and computing services available to Cyber Angelo customers are listed below:
 Internet browsing
 Laser color printing, copying and scanning.
 Popular software applications.
 Gaming
 Networking
 And different network accessories

Snacks will also be available while they are doing their things through the mini
store. They can enjoy their snacks while working or surfing the internet.

3.2 Competitive Comparison

Cyber Angelo will be different from other internet Cafes because of the
ambiance and the availability of food or snacks from the mini store. Pricing cant also be
comparable because the management will give several promos.

3.3 Technology
Cyber Angelo will subscribe to dsl/ fiber high speed internet from PLDT so
customers will be able to enjoy their activities inside the café without problems. High
Tech Computers and Licensed Programs will also be used so there will be no problems
in the service.

4. Market Analysis
Cyber Angelo will give very big opportunity to people because of the good
environment and at the same time good service. The availability of snacks from the mini
store will also be a very big different from other cafes.

4.1 Market Segmentation

Different groups of people will be possible customers of Cyber Angelo. It
anticipates that majority of these individuals are students and business people. See the
Market Analysis table below for more specifics.

Students Office Workers Gamers Seniors Others

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4.2.2 Market Needs

Factors such as current trends, addiction, and historical sales data ensure that
the high demand for snacks and Internet access will remain constant over the next five
years. Cyber Angelo will ensure that that services that will be provided will up to date,
and the snacks will be the trending snacks and usual food that people buy.

4.3 Service Business Analysis

The popularity of the Internet is growing exponentially. Those who are familiar
with the Internet are well aware of how fun and addictive going online can be. Those
who have not yet experienced with the Internet need a convenient, relaxed atmosphere
where they can feel comfortable learning about and utilizing the current technologies.
Cyber Angelo seeks to provide its customers with affordable Internet access in an
innovative and supportive environment.

4.3.1 Competition
The main competitors in the services are the existing computer shops found in
Palengke and beside the school campuses.

5. Marketing Strategy
Cyber Angelo will position itself to the market through different strategies. It will
serve high-quality service to the customers. It will use advertising as its main source of
promotion. Advertisements through words and stickers will help build customer
awareness. Accompanying the ad will be a coupon for discounted snacks.

5.1 Promotion Strategy

Cyber Angelo will implement a pull strategy in order to build consumer
awareness and demand. Initially it will start with soft opening that will be followed by
discounts and free snacks during the first day. Additional promos will be given away
based on the needs after the following days after the soft opening.

5.2 Pricing Strategy

Cyber Angelo will give reasonable prices for the different services it provides. For
the internet and computer services it will be lower than the price of the competitors
during the first month. It will become the same as the competitors the following months.
In terms of the snacks, it will give the same prices as those in the sari-sari stores.

5.3 Sales Strategy

As a small Internet Café, it employs people to handle sales transactions.
Computer knowledge is a prerequisite for its 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 assistance.
Helpful service is one of the key factors that distinguishes itself from other cyber cafés.

6. Management Summary
Cyber Angelo is owned and operated by Mr. John Angelo Callejo Espedido. The
company, being small in nature, requires a simple organizational structure.
Implementation of this organizational form calls for the owner, Mr. Espedido, to make all
of the major management decisions in addition to monitoring all other business
activities.

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Personnel Plan
The staff will consist of the cashier for internet and computer services and at the
same time cashier in the mini store. Expert computer technician and at the same time
programmer will also be hired. Two alternate staff will also be hired for the
implementation of cleanliness and orderliness of the café for the whole day. This simple
structure provides a great deal of flexibility and allows communication to disperse
quickly and directly. Because of these characteristics, there are few coordination
problems seen at Cyber Angelo that are common within larger organizational chains.

7. Financial Plan
The following sections lay out the details of our financial plan

7.1 Start-up Funding

This business plan is prepared to obtain financing in the amount of P40,000 more
aside from the personal savings of the owner. 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.

Owners’ investments has already been secured as follows:

1. P70,00 from the personal savings from owner Mr. John Angelo C Espedido
2. P40,000 in the form of short-term bank loans.

7.2 Projected Profit and Loss

Cyber Angelo anticipates big profit after a year of existence but it will also loss
amount of money due to the following reasons:
 Payroll Expense
 Rent Expense
 Utilities Expense
 Marketing Expense
 Insurance Expense

“He who risks and fails can be forgiven. He who never risks and never
fails is a failure in his whole being.” - Paul Tillich

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