Mount Carmel College

Carmelite Street, Escalante City

Negros Occidental, Philippines (6124)

BJ Lyn Internet Caf

Final Requirements for the course B.S. in Computer Science In the Subject System Analysis and Design
Documentation Presented to:
Mr. Isagani Agudo
Instructor

Presented by:
Mr. Gregorio S. Llavore Jr. Ms. Roweda Pedrano Ms. Marianne C. Tejamo

October 2011
If you have some questions regarding with the Documentation you can send a message via e-mail to marianne_9379@rocketmail.com/roweda.pedrano@yahoo.com/valvourprogs.exe@gmail.com.

Acknowledgement

The completion of this Documentation was made possible through the encouragement and assistance of some persons who have given their time and solicited advice to this study: To Mr. Isagani Agudo our special project adviser who has been there to support us. For his patience and guidance, encouragement and for sharing his expertise in writing this feasibility study; To the Preparers themselves (Greg, Marianne and Roweda) who have given lot of efforts and consumed so much time to make the completion of the documentation be possible and successful within the given time. To Mr./Mrs. Peterson of BJ Lyn Internet Cafe for giving us the time and allowing us to conduct a survey in their prospective area. To our school MCC which has greatly shared their research facilities to us with patience and diligence in helping us meet the necessary works for the completion of this Documentation. Our Parents who gave us life and guided us ever since we were born, and for the financial and moral support; also to our friends, who always there for us to our classmates and teachers who gave us inspiration and support to finish this study; And above all to our Almighty God a million thanks for the strength and gift of knowledge, good health, wisdom and the guidance that enlightened our hearts and minds that this Study would be possible. Together, we sincerely acknowledge and give thanks the person/s mentioned above who have brought the success of doing this Documentation. We are very grateful for this wonderful accomplishment.

HISTORY
Internet caf business is indeed a very popular business. It is one of the establishments

made indispensable in an increasingly interconnected world. Internet caf was started with the opening of the first cyber caf, Caf Cyberia, in London (UK) September 1, 1994. It was founded by Eva Pascoe. It started with half a dozen HP computers, connected to the Internet through dial-up modems that were able to transfer data at 9.6 kilobytes per second. As the first Internet cafe, Cafe Cyberia got tremendous publicity and additional investments into the business from likes of Mick Jagger and Maurice Saatchi. With the success of Cafe Cyberia, the Internet Cafe business got into a flying start, and there were over 60 similar cafes over the world by the summer of 1995. BJ Lyn is name of an internet Caf established in December 15, 2010 operated and managed by the couple namely Warlyn Peterson and Tore Oystien Peterson. The name of their business was taken from the Wifes Nickname which is Bebe and the last syllable of the name Warlyn which is Lyn name of the wife of the Husband.

Type of Business Organization

Since BJ Lyn Internet Caf has managed and administered by the couple. They preferred to use partnership as a type of business organization. A sole proprietorship, also known as a sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor's. This means that the owner has no less liability than if they were acting as an individual instead of as a business. It is a "sole" proprietorship in contrast with partnerships. Also referred to as single proprietorship, a sole proprietorship is the simplest form of business and the easiest to register, through the Bureau of Trade Regulation and Consumer Protection (BTRCP) of the Department of Trade and Industry (DTI). It is owned by an individual who has full control/authority of its own and owns all the assets, as well as personally answers all liabilities or losses. The fact that it is run by the individual means that it is highly flexible and the owner retains absolute control over it.

Benefits of Single Proprietorship:

Ease in Business Commencement: The business can be very easily started if there is only one owner. The legal cost involved in such a type of business structure is very low. The paperwork and formalities are also very less. Due to this many businessmen start as sole proprietors initially and later change the business structure when their businesses grow. Read more on growth strategies. Absolute Control: Decision making power lies with a single person. The proprietor has complete control over each and every aspect of the business. He has full legal and financial responsibility. Hence, there is no question of any kind of conflict arising due to difference of opinion related to business policies. This is one of the primary sole proprietorship business advantages. Avoidance of Double Taxation: One of the main sole proprietorship benefits is that the taxes to be paid are lesser compared to other forms of business which have business partnerships involved or in case a firm is a corporation. The reason for this is the absence of double taxation in a sole proprietorship firm. Double taxation means that the company and his owner both have to pay tax on the income generated by the business. The company pays the corporate tax and the owner pays income tax. This is not the case in sole proprietary firms. In the eyes of the law, the proprietor and his business are considered to be a single entity in case of a sole proprietorship firm. So there is no corporate tax that has to be paid. The owner only has to pay the income tax. No Income Sharing: Another one of the sole proprietorship advantages is that in a sole proprietorship, the owner has 100% right over the income generated through the business. Thus, financial planning becomes hassle free as the income remains in the hands of a single owner and he may keep it with him or re-invest it according to his discretion. The owner may also use the business income for non-business purposes or for personal use. The reason for this is that in sole proprietorship, there is no distinction between business income and personal income. Reduced Income Tax: In case the owner has just started the business or if the business is going through a slump, the proprietor may face some business losses. In such a scenario, the owner can deduct his business losses from his total income, including the income generated from sources unrelated to his business like interest on shares and sale of property. The income tax a proprietor pays is then calculated on the basis of this reduced income. Ease in Business Dissolution: The business can be dissolved very easily. The proprietor reserves the sole rights to sell his business to anybody. The proprietor can also transfer his business on anybody's name. There is no headache of calculating percentages of the sale proceeds to be given to different parties or conflict related to on whose name the business should be transferred. Thus, financial management becomes easy. This is one of the main advantages of sole proprietorship.

In addition to, BJ Lyn Internet Caf provides services that would give satisfaction to their customers. Aside from computer rental that have reasonable hourly rates for internet surfing or searching cd-burning, scanning, photo printing and black and white/colored printing

This business is location at # 15 Shopping Center, Escalante City, and their prospective customers are basically everybodystudents doing their projects or research or every individual who has a family and friends abroad. This business starts with the capital of P 500,000.00 Five Hundred Thousand Pesos allocated by the couple.

Objective of Business:
The objective of this proposed project is to acquire the prospective customers and to achieve the desired profit with in the specific period of time, and -

To develop ones skill to build up good relationship among customer. To help the students especially the neighboring Barangays to find a computers rental at affordable price. To give leisure and enjoyment. To be successful and know by the market.

The underlying presumption of many companies is that people are too disorganized and that they can be exploited by leveraging their own interests against each other. However, it doesn't require any level of organization for economic attitudes to change, but only that enough people reach a critical mass to where they simply won't or can't engage with such a company anymore. Interestingly enough, the common viewpoint is that the biggest bulk of economic and job growth occurs from small businesses, which raises the obvious question; why do we persist in protecting the survival of large corporations?

SITE PREPARATION
The business renting a space along hi-way Laydas Hotel at Escalante City Shopping Center, and their target customers are mainly students and nearby neighborhood especially those people whose relatives or loved ones are at abroad and find it very convenient communicating with them through chat and email. The two hundred (200) 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 (200) meters away from the church, schools, hospitals, and other government offices shall be strictly complied with. Site survey is primarily their main concern in this preparation. On our site survey we find out that the site has less than 10 competitors and its a good sign of putting up the business.

They have chosen the location, at 2nd Floor Shopping Center Escalante City, adjacent to Escalante Central Elementary School. Its about 40 square meters. It is the ideal place to establish an internet caf because it is accessible to public because its along the highway and their target market is mostly students, near to schools like Mount Carmel College, Alternative Learning School and Escalante Central Elementary School. They choose this site because they found out that competitors are minimal in the place. Its an urbanized area were accessibility, competency and they study niche/market, as their main objective while choosing this site. In accessibility, the location is just along the highway and people just strolling along the way and or passengers of utility vehicle can easily see the Internet Caf. In competency and study of niche/market, the proposed location is a commercial place, so the prospective customers is almost everybody. Most of the Internet shop located in the area is inside and cant be seen by the public, while the competitors outside is just minimal, and for that we are more capable of attracting customers because we will offer more affordable rental fee in 15 pesos per hour. BJ Lyn agreed that the shop should be well ventilated (air condition) to make their customers comfortable, good music is well provided, the PCs is all well organized and arrange properly according to their rows for the convenience of our customer. Each computer has their own useful software applications, internet and surfing to be chosen by our customer, what they want and need is mainly the concern of the business.

TECHNICAL ASPECT -Internet Connection AspectIn technical aspect it identifies whether the services rendered could be the highest possible quality level with minimum cost. In this aspect we will discuss the equipment and other computer application we use in the business. BJ Lyn purchase equipment as packages in order to lessen their expense. Hardware and Software is our much focus aspects. They did researching on how much the Hardware and software will cost to them, through net surfing and asking those who are experts in Computer technologies. The internet connection they used is Package plan of Globe connection amounting Php2,000.00/Month with capacity for 11computers and have a speed of 2 Mbps. In Hardware their target number of PC is 11 (monitor-flat screen, keyboard, PS2 mouse and processor, webcam and headset). The Internet connection is a package of Globe Connection connected (cables) with the speed of 2mbps amounting 2,000.00 and 1 Printer and 1 Scanner . In Software, they are installing original Operating System of Windows NT and other Ms Microsoft

Applications such as MS Word, Excel, Power point, Access, Desktop Publishing and installing Norton 360 version 3.0 premiums for their anti-virus and anti-spyware. They offer other service to customers likes printing in black and white, scanning, pictures in digital or cellphone cameras and payphone.

-Hardware AspectQuantity of Hardware Package(11 Units) Php187,000.00 Brand Name Total Amount of Package Trendsonic

Computer Software Applications will be installed by the assigned Computer Technician and will be included in the salary.

FLIERS:
To be filled

TARPAULINS:
To be filled

Services
Its the factor that affects mostly ones business because through services customer will decide if they are satisfied or not.

Price
It is one of the considerations of the customer that enhance them to rent computers. If the price is lower they will rent.

Their services are the following: Services: Internet Amount Php15.00/Per Hour

Printing: (a)Colored (b)Black and White (c)Cellphone/Digital Pictures

Photocopying CD/DVD Burnings Scanning

Php12.00 Php6.00 Php8.00

None None

Php10.00

Other services: Payphones

Php7.00 / every 3 min.

Business Process Cost

Business Tax and Tax Identification Number (TIN) Mayors Permit) BIR Brgy. Clearance DTI Zoning Occupational Tax Health Certificate Sanitary Permit Certificate Others: Filing and Processing Cost(e.g.) Traveling Total Cost Php900.00 Php2,500.00 Php500.00 Php150.00 Php300.00 Php300.00 Php450.00 Php50.00 Php30.00

Php1500.00 =Php6,680.00

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 company to know the capacity of their skills and ability to do work to the assign for them. BJ Lyn is operated by the Couple so they decided that since the wife doesnt have any Business she will be in charge in human resource, cashier and operator. A walk in technician will be called in case of computers malfunctions and he will visit the shop twice a month.

Walking Technician P400.00/visit twice a month

EVALUATION SUMMARY AND CONCLUSION

Top 5 things to consider when putting up an Internet caf
1. Capital- Planning is very important. The risks are high when going for this kind of business so you should only allot the right amount of money needed. Be sure you wont be touching any of your family savings. Also, spare some money for your future expenses, just to be safe. 2. Study your niche/market- See to it that there is a great demand for an Internet caf in your area. Obviously, the urbanized areas are the ones you would target, or as long as the place is busy with people and they will have a need for the services youre offering. 3. Location- If your area is situated near a school then that would be a big plus. Just observe the law regarding how many meters away, your Internet caf should be, from any schools or colleges. Some are not following it but the law is the law. Commercial zones within residential areas are also advisable. 4. Hardware, software and other utilities Consider first what services youre going to offer. For example: If you would only provide Internet services such as web surfing, chatting, etc., then you could go for the low-end or the average specifications for your computers. The Internet doesnt demand much from your hardware. Just apply for a relatively fast Internet connection (DSL, Broadband, Cable) with a high bandwidth. Then install operating systems and other programs needed. Headsets with microphones are often used when chatting. If you would consider adding gaming then the best specs, as much as possible or whichever the games require, should be your priority. There are the offline and online games which require Internet connection. Your clients, especially the gamers, are very demanding when it comes to the speed and reliability of both your PCs and Internet connection. You would often hear complaints about logging, hanging, or slow Internet

connection. So make sure that your clients are satisfied to avoid all of those. Buy the best performance PCs and avail a faster Internet connection. There are other services that you may offer your customers. You could do printing (b&w or colored), typing services, CD/DVD burning, some even have fax machines or photocopiers. 5. Pricing and Promotions- Know how much youll charge for your services. Studying the market will play a great role here. If the price is right then people will avail of your services. Some owners often use pricing as a tool to have an edge over other competitors *Be sure to apply for the necessary documents needed if you want to start your own Internet caf, such as Barangay Clearance, Mayors Permit, DTI permit, etc. Just so your business would be legalized.

Recommendations
When starting a new business, there are many important decisions to make and many rules and procedures that must be addressed. The number of task you need to complete and the information you need to track down before you begin a business. The followings are:

I. Basic needs to open a new business

Where to open your business- Deciding where to open and when to open your new business is often one of the most difficult decisions a business owner faces. These decisions may also be the most important ones because the ultimate success of the business can hinge on where its located and when its opened. To work through these decisions, choose one of the following: Choosing whether to lease space or from home. 2. Choosing the best geographic location for your business.

Selecting a location - An important factor in selecting a location is that you keep a long term perspective. Site selection can be a big investment. Choosing the right site now can avoid the cost of relocation in the future. Here are some factors that you should consider in making your site decision: Location of competitors. 2. Target market.

Leasing space - A lease agreement is a contract between you and the owner of the property. Since its a legal document, you should review it before you sign it. Marketing your product or services - How you will market your product depends on your budget. Here are some suggestions: Distribute fliers announcing your business. Put a business sign. Create several promotional gimmicks. Getting licenses and permits - Before your business start to operate all the necessary legal requirements must be complied, to avoid problem in the near future. Hiring employees - This is very important, hire people, who is trustworthy and have knowledge at your business, consider relatives and those recommended by friends. II. Starting a new business Ownership Responsibilities- Probably the two most common reasons that a business doesnt succeed are that 1) the business is poorly managed because the owner lacks the necessary skills and 2) the owner underestimates how much money it will take to start the business. To begin the process of preparing yourself, lets take a look at:1. Pros and Cons of owning a business: PROS: A. You have the chances to make a lot of money than you can make working for someone else. B. Youll be your own boss and make the decisions that are crucial to your business success or failure. C. You may be the boss of other people. D. Youll have job securityno one can fire you. E. You have the chance to put your ideas into practices. F. You may participate in every aspect of running a business. G. Youll learn more about every aspect of a business and gain experience in a variety of disciplines. H. Youll the chance to work directly with your customers.

CONS: A. You may have to take a large financial risk. B. You will probably have to work long hours and may have fewer opportunities to take vacation. C. You may end up spending a lot of your time attending to the details of running a business and less time in those things you really enjoy.

 Goals Setting- For many people, it helps to translate their expectations and desires into concrete terms by setting goals and these is a Personal goals- unlike money, many of these factors cant be quantified but are important nevertheless. For many people, the chance to build something of their own, according to their own vision drives them to start a business. Typical reasons that people choose to start a business include: 1. Freedom- owning your own business is a way to achieve personal freedom on many levels. 32

2. Career change- Most people change jobs or even careers several times during the course of their lives. Sometimes, its by choice; other times, existing jobs simply disappear. 3. Professional growth- Some people believe their ideas are being ignored or not being used properly in a corporate setting, and they want the chance to do it the right way. III. How to get Exposure for your business Exposure through Advertising and Promotions- Advertising and promotions is bringing a service to the attention of potential and current customers. The goals of the plan should depend very much on the overall goals and strategies of the organizations. The plan usually includes what target markets you want to reach, how much money is budgeted for this effort.

IV. Minimizing risk for my business

Hiring family members - A family member will more willing to step into your shoes when needed. For example, if you get tied up doing something, a family member usually makes a reliable fill-in.

Franchising - A good way to reduce your risk of failure is to purchase a franchise because franchises typically have a higher success rate than other types of small business.
Know when to cut your losses - If you dont decide the financial commitment to your new business in advance, you may regret it in the future. Financing assessment- Finding the money to start a new business is almost always one of the most difficult hurdles new owners face. At this point in the process of analyzing your business idea. You should have examined both the results that you know how much it should cost and how much you should be able to earn.

Legal assessment - In making a legal assessment of your business idea, you need to determine to what extent the operation of your business might expose you to legal liability.

Sources:
http://www.buzzle.com/articles/sole-proprietorship-advantages.html