Valpo Internet Cafe by ewghwehws

VIEWS: 9 PAGES: 27

									Valpo Internet Cafe

      Presented by
     Nasser Albahri
   Xianohui Chu (Judy)
   Takayoshi Okamoto
         Business Plan for VIC
“As the popularity of the Internet continues to grow,
  easy and affordable access is quickly becoming a
  necessity of life. Valpo Internet Cafe provides the
  community with the ability to access the Internet,
  enjoy a cup of coffee, and share Internet
  experiences in a comfortable environment. People
  of all ages and backgrounds will come to enjoy the
  unique, educational, and innovative environment
  that Valpo Internet Cafe provides.”
              VIC Objectives
•   Innovative environment
•   Education
•   Bring people together
•   Good coffee and bakery
•   Affordable Internet access
          Company Summary
•   Company Ownership
•   Company Location
•   Services
•   Competitive Comparison
•   Fulfilment
•   Start up Summary
Company Summary
            Market Analysis
•   Market Segmentation
-   Two Main Groups:
-   Familiar and not
    familiar with the
    Internet
-   Details Groups:
-   Students, Office
    workers, etc.
            Market Analysis
• Market research:
  - Survey conducted in 2004
• Business Participants:
  - Wholesalers and retailers of coffee in
  Valparaiso Area
  - Other Internet providers
   Strategy and Implementation
• Three main strategies:
  - Beginner Internet users
  - Power Internet users
  - Building strong social environment
• Competitive Edge
• Marketing Strategy
   Strategy and Implementation
• Sales Strategy
• Management:
  - Simple organizational structure
• Personal Plan:
  - Six employees
  - One technician
  - Two Private Investors
Strategy and Implementation
             Financial Plan
• Sales, Cost of goods sold, Fixture costs,
  Salaries expense, Payroll expense, Rent
  expense, Utilities expense, Marketing
  expense, Insurance expense, Legal and
  consulting fees, Taxes and etc.
              Loan Proposal
•   Business description
•   Projections
•   Purpose of the loan
•   Amount
•   Repayment plans
                Projections
•   Cash Flow Statements
•   Balance Sheet
•   U.S. Individual Income Tax Return
•   Fifth Third Bank Commercial Loan
    Application
     Projected Cash Flow Statement

• Net Cash received
• Net Cash spent
              Net Cash Received

                           2004       2005       2006
Cash Received
Cash from Operations:
Cash Sales              $248,000   $300,000   $330,000
Cash from Receivables        $0         $0         $0
Subtotal Cash from
                        $248,000   $300,000   $330,000
   Operations
Additional Cash
   Received
New Current Borrowing     $2,000     $5,000        $0
Subtotal Cash
                        $250,000   $305,000   $330,000
   Received
                       Net Cash Spent

Expenditures                         2004       2005       2006
Expenditures from Operations:
Cash Spending                      $14,000    $15,000    $17,000
Payment of Accounts Payable       $223,000   $280,000   $300,000
Subtotal Spent on Operations      $237,000   $295,000   $317,000
Additional Cash Spent
Principal Repayment of Current
                                    $9,000     $2,000        $0
    Borrowing
Long-term Liabilities Principal
                                    $9,600     $5,000     $4,000
   Repayment
Subtotal Cash Spent               $255,600   $302,000   $321,000


Net Cash Flow                     ($5,600)     $3,000     $9,000
         Projected Balance Sheet

• Assets
• Liabilities and Capital
                           Assets

Assets
Current Assets               2004      2005      2006
Cash                       $17,765   $20,856   $30,108
Inventory                   $6,972    $8,503    $9,353
Other Current Assets           $0        $0        $0
Total Current Assets       $24,737   $29,359   $39,462
Long-term Assets
Long-term Assets               $0        $0        $0
Accumulated Depreciation       $0        $0        $0
Total Long-term Assets         $0        $0        $0
Total Assets               $24,737   $29,359   $39,462
                    Liabilities and Capital
Liabilities and Capital
Current Liabilities                 2004        2005        2006
Accounts Payable                 $12,033     $13,397     $14,442
Current Borrowing                 $2,000      $5,000      $5,000
Other Current Liabilities             $0          $0          $0
Subtotal Current Liabilities     $14,033     $18,397     $19,442


Long-term Liabilities            $14,400      $9,400      $4,600
Total Liabilities                $28,433     $27,797     $24,042


Paid-in Capital                  $55,000     $55,000     $55,000
Retained Earnings               ($62,290)   ($58,695)   ($53,438)
Earnings                          $3,595      $5,257     $13,858
Total Capital                    ($3,695)     $1,562     $15,420
Total Liabilities and Capital    $24,737     $29,359     $39,462
Net Worth                        ($3,695)     $1,562     $15,420
U.S. Individual Income Tax Return
Fifth Third Bank Commercial Loan
            Application
          Purpose of the loan
• Another 10 Computers
• Marketing campaign
  – Ads on the local paper
  – Coupon for a free hour
  – Three free hours for beginners who sign up for
    an introduction to the Internet workshop
                    Amount
• Total Start-up Capital :
                             $ 100,000

• The Capital We have now:   $ 80,000

• The Loan Amount from the 5/3 Bank:
                                  $ 20,000
           Repayment Plans
• The Loan Amount: $20,000
• Repayment per month: $ 1,000
• The time for us to repay: 20 months
      Mark Recommendation?
• NO recommendation for the main strategy
  of the company
• Contact other businesses that already started
  an Internet Café in different areas
• Deal with the local bank for final approval
  since the loan is less than $150,000?
                 Conclusion
•   Questions?
•   Suggestions?
•   Comments?
•   Smart remark?!

								
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