Internet Café Business Plan: C Y B E R I A
Internet Café Business Plan: C Y B E R I A
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It’s just a matter of how you view them. Challenges can
be accomplished by teamwork gives you success.
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There are two kinds of people. Optimistic and
pessimistic. Optimistic sees the glass as half filled and
the pessimist sees the glass as half empty. The things
are not actually how they are; but how you perceive
them. The things go on, as you want them to go. So,
always be a positive thinker.
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But again positive attitude is not all, for this we
need to have firm determination because it is the
wake-up call to human will.
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DETERMINATION IS THE WAKE-UP CALL TO
HUMAN WILL.
UNITY IN DIVERSITY
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It is said that great is the art of beginning and
greater is the art of
CYBERIA, unlike a typical cafe, will provide a unique forum for communication
and entertainment through the medium of the Internet. CYBERIA is the answer to an
increasing demand. The public wants:
(2) Access at a cost they can afford and in such a way that they aren't socially,
economically, or politically isolated. CYBERIA's goal is to provide the community with a
social, educational, entertaining, atmosphere for worldwide communication.
The financing, in addition to the capital contributions from the owner, will allow
CYBERIA to successfully open and maintain operations through year one. The large initial
capital investment will allow CYBERIA to provide its customers with a full featured
Internet cafe. A unique, upscale, and innovative environment is required to provide the
customers with an atmosphere that will initiate socialization.
Successful operation in first year will provide CYBERIA with a customer base that
will allow it to be self sufficient in next year.
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MISSION:
BUSINESS GOALS:
• The formation of an environment that will bring people with diverse interests and
backgrounds together in a common forum
• Affordable access to the resources of the Internet and other online services
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2. SWOT ANALYSIS:
STRENGTHS:
CYBERIA has a valuable inventory of strengths that will help it succeed. These
strengths include:
We've gone to great lengths at CYBERIA to find people with a passion for
teaching and sharing their Internet experiences. Our staff is both knowledgeable and eager
to please.
• Upscale ambiance:
CYBERIA knows what it takes to build an upscale cyber cafe. We know the
customers, we know the technology, and we know how to build the service that will bring
the two together.
WEAKNESSES:
Strengths are valuable, but it is also important to realize the weaknesses CYBERIA must
address. These weaknesses include:
CYBERIA 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. CYBERIA needs to keep up with the technology because a lot of the
CYBERIA experience is technology.
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OPPORTUNITIES :
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 CYBERIA
offers.
The Internet is bringing people from across the world together unlike any other
communication medium. CYBERIA will capitalize on this social trend by providing a place
for smaller and local Internet communities to meet in person. CYBERIA 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.
THREATS:
Threats that CYBERIA should be aware of include, the rapidly falling cost of Internet
access, and emerging local competitors.
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. CYBERIA is aware of this threat and will closely monitor pricing.
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Currently, CYBERIA is enjoying a first-mover advantage in the local cyber-cafe
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
3.BUSINESS DESCRIPTION:
CYBERIA, soon to be located in Vashi Navi Mumbai, will offer the community
easy and affordable access to the Internet. CYBERIA will provide full access to email,
WWW, and other Internet applications. CYBERIA will appeal to individuals of all ages and
backgrounds. 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 vashi highway will provide business people with
convenient access to their online needs.
4.BUSINESS FORMATION:
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CYBERIA's start-up costs will cover site renovation and modification, capital to
cover losses in the first year, the communications equipment necessary to provide
CYBERIA's customers with a high-speed connection to the Internet and the services it has
to offer make up a large 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.
The renovation and modification cost estimate will include the costs associated with
preparing the site for opening business.
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AMT
ITEM ( Rs.)
2,12,
ZENITH 401P-11 PC 17" LCD 400
CABINETS 24000
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5.CYBERIA’S LOCATION AND FACILITIES:
A site has been chosen near Vashi highway. This site was chosen for various
reasons including:
• Low cost rent Rs.35 per square foot for 400s square feet.
• High visibility.
All of these qualities are consistent with CYBERIA's goal of providing a central
hub of communication and socialization for the Vashi community.
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6.MANAGEMENT TEAM:
CYBERIA is a privately held internet cafe. Mukesh Lala, the founder of CYBERIA,
is the majority owner. Ajay Bhatia, Bhanumati Motwani, Sanjay Jain, Alka Sedhani and
Rishi Valeja are the co-founders as well as partners of the cafe. CYBERIA, being
partnership firm in nature, requires a simple organizational structure.
7.DEVELOPMENT:
DEVELOPMENT PROCESS:
CYBERIA has two main strategies. The first strategy 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 CYBERIA. Power users have knowledge and web-browsing
experience that novice Internet users find attractive and exciting.
CYBERIA's first strategy will be focused on attracting power Internet users. Power
Internet users provide an important function at CYBERIA. CYBERIA plans on attracting
this type of customer by:
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• Providing the latest in computing technology
PROJECT PLAN:
CYBERIA's start-up costs will cover site renovation and modification, capital to
cover losses in the first year, and the communications equipment necessary to get its
customers online. The communications equipment necessary to provide CYBERIA's
customers with a high-speed connection to the Internet and the services it has to offer make
up a large 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. The renovation and modification cost estimate will include the
costs associated with preparing the site for opening business.
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8.MARKETING:
The popularity of the Internet is growing exponentially. Those who are familiar
with the Internet are well aware of how fun and addictive surfing the internet can be. Those
who have not yet experienced the Internet need a convenient, relaxed atmosphere where
they can feel comfortable learning about and utilizing the current technologies. CYBERIA
seeks to provide its customers with affordable Internet access in an innovative and
supportive environment.
Due to intense competition, we must look for ways to differentiate their place of
business from others in order to achieve and maintain a competitive advantage. The fact that
no cyber-cafes are established in VASHI HIGHWAY, presents CYBERIA with a chance to
enter the window of opportunity and enter into a profitable niche in the market.
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MARKET NEEDS:
The rapid growth of the Internet and online services, that has been witnessed
worldwide, is only the tip of the iceberg. The potential growth of the Internet is enormous,
to the point where one day, a computer terminal with an online connection will be as
common and necessary as a telephone. This may be 10 or 20 years down the road, but for
the next five years, the online service provider market is sure to experience tremendous
growth. Being the first cyber-cafe in VASHI, CYBERIA will enjoy the first-mover
advantages of name recognition and customer loyalty. Initially, CYBERIA will hold a 100
percent share of the cyber-cafe market in LOCATION. In the next five years, competitors
will enter the market. CYBERIA has set a goal to maintain greater than a 50 percent market
share.
MARKET TRENDS:
A market survey was conducted in the fall of 2009. Key questions were asked of
fifty potential customers. Some key findings include:
35 subjects said they would be willing to pay for access to the Internet.
Rupees Twenty five for an hour was the most popular hourly Internet fee.
COMPARATIVE RESEARCH :
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Larger, online service providers, such as AOL and CompuServe are also a competitive
threat to CYBERIA. Due to the nature of the Internet, there are no geographical boundaries
restricting competition.
CYBERIA intends to cater to people who want a guided tour on their first spin
around the Internet and to experienced users eager to indulge their passion for computers in
a social setting. Furthermore, CYBERIA will be a magnet for local and traveling
professionals who desire to work or check their email messages in a friendly atmosphere.
These professionals will either use CYBERIA's PCs, or plug their notebooks into Internet
connections. CYBERIA's target market covers a wide range of ages: from members of
Generation X who grew up surrounded by computers, to Baby Boomers who have come to
the realization that people today cannot afford to ignore computers.
See the Market Analysis chart and table below for more specifics:
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8.2 MARKETING STRATEGY:
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MARK
PRODUCT (SERVICE) DESCRIPTION:
CYBERIA 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 CYBERIA customers are listed below:
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• Customers can sign up for a CYBERIA email account. This account will be
managed by CYBERIA servers and accessible from computer systems outside the
CYBERIA network
PLACE:
PRICING STRATEGY:
CYBERIA bases its prices for specialty drinks on the "retail profit analysis"
provided by our supplier, Coca-Cola India Ltd., they have been in the business for 22 years
and have developed a solid pricing strategy.
Determining a fair market, hourly price, for online use is more difficult because
there is no direct competition from another cyber-cafe in VASHI. Therefore, CYBERIA
considered three sources to determine the hourly charge rate. First, we considered the cost
to use other Internet servers, whether it is a local networking firm or a provider such as
India Online. Internet access providers use different pricing schemes. Second, CYBERIA
looked at how cyber-cafes in other markets such as Nerul and Mulund went about pricing
Internet access. Third, CYBERIA used the market survey conducted.
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Evaluating these three factors resulted in CYBERIA's hourly price of RUPEES
PROMOTION STRATEGY:
9.HISTORICAL ANALYSIS:
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Milestones in India’s Internet Journey:
1995
- VSNL introduces internet in India via dialup in 6 cities on Aug 14,1995
1996
- Rediff.com launched by Ajit Balakrishnan
- India’s first cyber café called “Cybercafe” launched in a Mumbai hotel
1997
- First online banking site launched by ICICI Bank
- Naukri.com launched; this becomes India’s first profitable dotcom
- Sabeer Bhatia’s Hotmail sold to Microsoft for $400 million in USA ; he becomes the
poster boy of the Internet age to Indians
1998
- India introduces new ISP policy which ends VSNL’s monopoly on internet
- Sify becomes India’s first ISP
- First major hacking case-teenagers hack data on BARC’s servers
- Launch of Nasscom by Dewang Mehta, a chartered accountant by profession to promote
IT industry
- Cybercafés start mushrooming across Indian cities
1999
- Indiaworld sold to SIFY for $115 million;this triggers off the dotcom boom
- Large number of dotcoms appear, mostly modeled as e-marketplaces but have untested
revenue models
- Webdunia, India’s first and most successful Hindi portal launched
2000
- IT ACT 2000 passed by the Indian Parliament
- Bazzee.com launched based on the EBay model
- Indya.com launched with Rs 4.5 crore campaign blitz
- Foreign portals set up shop in India; Yahoo & MSN launch Indian sites:
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2001
- First cyber crime related arrest-2 arrested for hacking go2nextjob.com
- Indian Railways launches online ticketing site, irctc.com
- India’s first cyber crime police station opens in Bangalore
- Dotcom bubble bursts – some sites close, some go into hibernation
2002
- Home Trade fiasco– brokerage site launched with Rs 65 crore blitz goes bust
- New dotcoms start emerging with more refined revenue models
2003
- Air Deccan becomes first airlines to offer online ticketing in India
- Phase of consolidation and stocktaking for Indian dotcoms
2004
- Dotcoms start exercising exit options
- EBay buys out Bazee.com & Monster.com buys Jobsahead.com
- First Indian Dotcoms IPOs are successful– indiabulls.com & indiainfoline.com
- A high profile cyber crime exposes sheer inadequacy of India’s IT laws - Baazee CEO
jailed for MMS scandal.
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10. ORGANIZATIONAL STRUCTURE:
CYBERIA is a partnership firm of total six partners. one is active partner and
five are dormant partners. Mukesh Lala is active partner who is running the
business. He is from engineering background and one assistant is appointed to assist
customers as well as handling other business activities.
CYBERIA
1 2 3 4 5 6
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11.CONTINGENCY PLANNING:
This plan is just that, a plan. plan don’t always work out and we have to be ready with
the likelihood that CYBERIA won’t make good on the projections outlined in this plan. we also
have to prepare ourselves for overwhelming success. The following are some possible scenarios:
A serious increase in revenues over projection will give us an opportunity to increase our
market budget above the allocated. We will be able to provide more equipment and possibly add an
additional location.
We have to be prepared for this possibility. If we miss our projections, we simply have
to redouble our marketing efforts. The danger in this scenario is that the first reaction missed
projections is to decrease spending. we can’t do that! We have to get our message out to the target
customer and we can’t do that if we stop spending on the marketing.
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Internet side of business plays lesser role:
Our customer might not be willing to pay for internet access costs and hardware costs
continue to fall. If this scenario materializes, we will need to move our focus to beverages, perhaps
even providing daily style lunches. Internet services in the scenario still play an important role in
attracting customers; we just have to charge less and move our numbers round to accommodate
trends.
TECHNOLOGY:
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SERVICES:
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14. APPENDICES:
INCOME STATEMENT:
AMOUNT AMOUNT
PARTICULARS AMOUNT (Rs) (Rs) (Rs)
M/S. CYBERIA
COMPARATIVE REVENUE STATEMENT FOR THE YEARS ENDED
31ST MARCH,2010 & 2011
PARTICULARS 2009-10 2010-11
SALES
1) internet charges recd 912500 1186250
2) sundry incomes 286620 1199120 372602 1558856
OPERATING NET
PROFIT -14600 313615
Add: Non-Operating
Incomes
commission recd on sale of
beverages 10950 12045
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Less: Appropriations
Interest on Capital 84000 84000
Salary to Active Partner 96000 -180000 96000 -180000
Balance Transferred to
Partner's Capital A/c -176350 45407
By Balance b/d
Mukesh 200000
Ajay 100000
Alka 100000
Bhanu 100000
Rishi 100000
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880000 880000
From :- M/s.______________________________
______________________________
______________________________
______________________________
Date :-
To,
The Commissioner of Police
Desk-X, (Theatre Branch),
Brihan Mumbai.
Subject :- Application for the grant of Premises Licence for Cyber Café of similar
establishment providing services of internet / internet
connectivity in a public place.
Sir,
I/We the undersigned, Shri/Smt./Kum. _____________________________________
Owner(s) of Cyber Café / Computer and / or Virtual Reality Game (as defined under section
2(9) of Mumbai Police Act-1951, definition of place of public amusement), by name M/s.
______________________________________________________ would like to apply for
grant of Premises Licence at the following address. The place belongs to me/us take on rent
is on lease/leave and licence.
Details are as follows (if more than :-
one applicant details of each applicant
be provided) :-
1.
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Full Name of Applicant
(Extended initials)
2. Occupation :- _________________________
______________
3. Parentage :- _________________________
(Fathers/Hus ______________
band Name)
4. Age (Date :- _________________________
of Birth) ______________
5. Nationality :- _________________________
______________
6. E-Mail :- _________________________
Address of ______________
the Owner
7. (a) Full :- _________________________
Name and ______________
address of
the Cyber
Café /
Establishme
nt
(b) Telephone No. :- _________________________________
______
(c) Fax No. :- _________________________________
______
(d) Email Address of the :- _________________________________
Cyber Café, ______
(e) How many branches / :- _________________________________
outlets existing, give details as ______
per this form. (use separate
sheet if required)
(f) Approximate area of the :- _________________________________
premises ______
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(g) Number of Terminal proposed :-
8. (a) Whether :- _________________________
premises are ______________
owned,
leased,
rented or
taken on
leave and
license by
applicant –
owner ?
(Specify)
(b) If on rental, lease or leave :- _________________________________
and license period of ______
tenancy/lease/licence.
9. (a) Whether :- _________________________
any other ______________
name is used
for the
establishme
nt. If so,
give details
(b) Whether applied in the :- _________________________________
past for similar licence. If so, ______
give details.
All telephone :- _________________________
numbers at the ______________
cyber café with
name and
address of the
telephone
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subscriber (Use
separate sheet, if
required)
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