You are on page 1of 43

SWOT Analysis for the Computer Repair Industry

by David Ingram, Demand Media

The computer repair industry has opened up new college degree paths.
Related Articles
Information on SWOT Analysis
How Will a Situational Analysis Help Create the SWOT Analysis?
SWOT Analysis Techniques
What Are the Top 10 Businesses to Start?
Definition of a SWOT Analysis
How Long Do Pre Employment Background Checks Take to Come Back?

The computer repair industry gained momentum alongside the development of computer
technology in the late 20th century. Any computer system, whether a low-end home desktop or
an enterprise-scale server, may need repairs from time to time, opening up opportunities for
small business computer shops to serve as wide or narrow of a target market as they would like.
Taking a look at a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for the
computer repair industry can reveal whether a computer repair shop might do well in your area.
Ads by Google
Kite Systems
Providing I.T. Solutions. Hong Kong Based I.T. Services
Computer technology becomes more ubiquitous with each passing year, increasing the size of the
market for computer repair shops. According to Ibis World, revenue for the industry reached
$20.3 billion in 2010. Computer technology is still in a relatively early stage of development, as
well, meaning computers still fail on a regular enough basis to support the repair industry.
Recessionary conditions in the economy can shift consumers' focus away from buying new
computers and towards maximizing the life of their current machines, providing further
advantages to the industry.
Computer repair shops can find it difficult or virtually impossible to serve anything larger than a
local area. Large computer repair services, such as Geek Squad, grow to a large scale by opening
numerous outlets across the country, which runs counter to the traditional technology business
model that can serve an entire nation from a single office.
Automation is also nearly impossible in the computer repair industry, keeping labor costs high
by requiring each service to be performed by hand on a case-by-case basis. Because of this, it
can be difficult for computer repair shops to achieve economies of scale for operational costs.
Related Reading: How Do the Functions of a SWOT Analysis Work Together?
Just as past advances provided opportunities to the computer repair industry, new advances in
computer technology continue to provide new opportunities for savvy small business
entrepreneurs. The rise of tablet PCs and smartphones, for example, creates the potential to serve
new markets, increasing the revenue repair shops can receive from existing clients. Cloud
computing creates opportunities for small businesses to secure long-term, high-volume repair
contracts with cloud service providers who view their service reliability as a major competitive
Computer technology continues to grow more sophisticated, and major players in the industry
continue to gain experience building more reliable machines. As the computer industry matures,
it is likely that computer technology will become much more reliable, failing less often and
becoming less susceptible to outside threats. The sheer size of the early computer-repair market
may have been a result of early-stage technology that failed more often than it worked. Late 21st
century computers may become so sturdy and reliable that the computer repair industry shrinks

Internet Cafe SWOT Analysis
Home Internet Cafe Internet Cafe SWOT Analysis
In every business, it has its own strengths, weaknesses, opportunities and threats. Knowing each
is vital on starting, running and sustaining the business. Therefore, before you venture into
whatever business, it is important that you have enough knowledge about its ins and outs. And
that is the role of SWOT analysis. Evaluating its advantages and disadvantages for you to see
whats ahead. To keep you on guard on any unwanted possibilities and take advantage on every

Now, let us study the SWOT, I prepared. It is all about Internet caf since our topic is about it.
This is for those who are planning to start their own Internet Caf but is also useful for those
already have their own.


Strength is greatly dependent on what you and your group can do to the company. How
knowledgeable are you? How clear are your visions for the company?

To obtain strength in Internet Caf business you must have a:

1. Knowledgeable and friendly staff, or as an owner you must have these qualities
especially if you are doing some part of the operation. Why? Not all of your customers
are geek some are novice. In my experience there are still a lot of customers who does not
know how to type even to open a document. This is one of your greatest strength; it will
give your customers the reason to keep coming back.
2. State-of-the art equipment. As what I have observed, the customers are becoming more
sophisticated. They are not the same as 10 years ago. Before, you can feel their
excitement every time they strike the keyboard on old PC's. They are more willing to
wait your dial up modem internet connection and pay P60 per hour. But gone are those
days. Today you need to have a good processor, RAM, high speed internet connection
and LCD monitors. Plus. your per hour rental must be low in price.
3. Upscale ambiance. Having friendly staff and high-tech equipments is great but its value
will easily be overseen if you dont have a friendly environment. Clean, Cool and
Comfortable. These 3 Cs are important especially for those professionals who make
reports as well as students who do research and assignments. No one can work well on a
messy place.
4. Clear vision of the market need. If you cannot live without listening or watching news,
which you should, to keep you aware of whats happening in your community especially
in times of calamities. In the same manner you should keep your self updated on news
about your business and your customers needs, so that you will be the first one to offer
new services. Being the first is really a big advantage. Yes, your competitor will soon do
offer the same service that you pioneered. But being always the first to offer new will
mold your business image and eventually become your brand. And brand builds loyalty
and trust.


Your only weakness in this business aside from not carefully planning it beforehand is, not
developing strength as what I mentioned above.

1. Technology changes rapidly. This factor is actually your advantage if you will follow
Strength number 4.
2. Cost factor linked with keeping state-of-the-art hardware. This is the hardest thing
that Internet Caf owners hesitate to do. And that is upgrading the hardware because of
its costs. Some are asking, Why should I upgrade my hardware if it is still ok? Ok, is
not ok in Internet caf business. To excel and to keep your business name unblemished,
you should keep your hardware up to date. To bring balance with new software, games
and speed. How about its cost? The cost is not as expensive as 10 years ago. If you start
your business and buy brand-new units today it will only cost 10k to 15k ($ 300) with
proper maintenance it will last 3-5 years, on that time you already received your (ROI)
Return of Investment. ROI can be attained within a year. The best thing you should do on
upgrading issue is to set goal when to upgrade your hardware (2 years or three years).
This will help you plan and look for buyers.


Since technology evolves endlessly it also create eternal opportunities for Internet caf owners.

1. Rising population of daily Internet users. With technologys usefulness its users will
continue to grow, that is a fact. Therefore your customers also will keep on multiplying if
you keep doing the right thing for your business.
2. Social bonds. The Internet is bringing people from across the world together unlike any
other communication medium. So, you need to capitalize on this area by providing good
communication equipments such as, webcam and headsets. Plus provide a staff to help
them, especially those new to this kind of technology or provide an internet tutorial, (of
course with compensation) simple how tos to help your customers at the same time you
are earning from it.


This is beyond your control but dont panic, if you are focusing on your strengths this threats are
just water under the bridge.

1. Falling cost of Internet access. The cost of access to the Internet for home users is
dropping rapidly. As what we can see (ISP) Internet Service Provider offers wide options
for home internet consumers from prepaid to postpaid in various speed. But still there are
millions who are not keen to add such expenditures to their monthly bills. The reason,
this development will not directly affect Internet cafs.
2. Emerging local competitors. This is the most dangerous threats, competitors.
Concentrating or shall we say building your strength is good as what I have mentioned
earlier, in fact it is your first defense. But dont stop there, go roam around, discover what
your competitors are doing. As what the old adage says, Youve got 50% chances to beat
your enemy if you know your strength and not knowing his, but youve got 100% chances
to dismantle him if you know yours and his."

Read more: Internet Cafe SWOT Analysis
Follow us: @techchore on Twitter | techchore on Facebook

Hopefully this will help!

AMT is a computer store in a medium-sized market in the United States. Lately it has suffered
through a steady business decline, caused mainly by increasing competition from larger office
products stores with national brand names. The following is the SWOT analysis included in its
marketing plan.


Knowledge. Our competitors are retailers, pushing boxes. We know systems, networks,
connectivity, programming, all the Value Added Resellers (VARs), and data management.
Relationship selling. We get to know our customers, one by one. Our direct sales force maintains
a relationship.
History. We've been in our town forever. We have the loyalty of customers and vendors. We are


Costs. The chain stores have better economics. Their per-unit costs of selling are quite low. They
aren't offering what we offer in terms of knowledgeable selling, but their cost per square foot and
per dollar of sales are much lower.
Price and volume. The major stores pushing boxes can afford to sell for less. Their component
costs are less and they benefit from volume buying with the main vendors.
Brand power. Take one look at their full-page advertising, in color, in the Sunday paper. We
can't match that. We don't have the national name that flows into national advertising.


Local area networks. LANs are becoming commonplace in small businesses, and even in home
offices. Businesses today assume LANs are part of normal office work. This is an opportunity
for us because LANs are much more knowledge and service intensive than the standard off-the-
shelf PC.
The Internet. The increasing opportunities of the Internet offer us another area of strength in
comparison to the box-on-the-shelf major chain stores. Our customers want more help with the
Internet and we are in a better position to give it to them.
Training. The major stores don't provide training, but as systems become more complicated with
LAN and Internet usage, training is more in demand. This is particularly true of our main target
Service. As our target market needs more service, our competitors are less likely than ever to
provide it. Their business model doesn't include service, just selling the boxes.


The computer as appliance. Volume buying and selling of computers as products in boxes,
supposedly not needing support, training, connectivity services, etc. As people think of the
computer in those terms, they think they need our service orientation less.
The larger price-oriented store. When they have huge advertisements of low prices in the
newspaper, our customers think we are not giving them good value.

SWOT analyze
Our internet caf can offer food (cup-cake, pizza) and drink (coffee, soft drink, juice)
when customers feel hungry and thirsty;
People can order these thing via the computer they are using or by SMS before arriving;
Furthermore, air-conditioning is available in our caf, so no matter what the weather is,
you still can surf the internet in our internet caf comfortably, and it can attract people;
In our internet caf, you can enjoy the high speed internet, people can download
document faster, and gamers can play video-games without a lag;
For convenience, customers can print and fax documents;
Our internet caf will have a VIP room so that we can attract people who want to do
something together (like businessman, students) without being noisy, and the VIP room
will have additional equipment like a projector, customers will have a privacy space, and
we will accept booking, otherwise, everyone can use the VIP room if no one has booked
this room.
The scale of internet caf is small, the caf only permits 30 customers at the same time;
so therefore, you can call or text us to book a computer in advance;
The target audience is limited and so it will affect the development of our caf, (most of
the people who are likely to go to the internet caf are gamers) so our internet caf has
VIP rooms, it can cater to students, workers and gamers whom want a private space to
converse and therefore allow for an expansion of the target market;
The cost of computers, printers, fax machines and other equipment will be high fixed
costs, and it cannot be avoided.
The opening time is limited, because the shopping center will only permit the shop to be
open from 8:00am to 8:00pm, and it cannot be mitigated, either.
Our internet caf is located within the shopping center, a central location in
Joondalup with a high population flow rate consisting of people shopping, interacting,
eating, and relaxing, which will favour our business by increasing the odds of attracting
potential visitors;
The internet caf can function as a relaxing location for shoppers to rest and converse or
surf the internet after they have finished purchasing items from other shops
The shopping centre is located directly next to a train station, bus port, and ample
parking. The convenience of transport will encourage a greater market for our business;
Our internet caf will collaborate with other businesses such as JB-HiFi, Officeworks and
EB Games. These businesses can offer us their products (such as videogames and
software, and we would host Officeworks equipment for people to use for printing and
other uses) for customers to trial at our internet caf and in return, these businesses will
advertise our internet caf;
If people think such software or games are satisfactory, they can buy these products
directly through our caf, EB games or JB-HiFi will increase their sales and repay our
business by endorsing it, and we can sell some interesting from products from our caf, a
win-win collaboration;
The absence of official competition is a big opportunity; we will be the only business
offering an internet caf in one of the largest social hubs of Joondalup.
Nowadays, more and more people have had laptop and smart phone which can access the
internet. Therefore, we will offer Free Wi-Fi for customers who can drink coffee and
have a rest in our caf, and there are other services which can attract customers, such as
the VIP room which will allow customers to privately hold meetings gaming
competitions, etc., and the trialing of new software/games;
Internet security is also a big problem, because people will think the internet caf is a
public place, with each computer being used by several different people. They may be
afraid that their privacy information (passcode, personal information, address, mobile
phone number, etc.) will be stolen by hackers. To prevent this, all of computers in our
internet caf will be installed with antivirus programs and we will scan the computers for
viruses regularly.
Many people prefer to surf the internet in the privacy of their own home in a quiet
environment, which could threaten the business due to the public nature of internet cafes.
Peoples preference of surfing internet is an important factor that threats the business,
many people prefer to surf internet in their home. To appeal to these particular types of
people, the VIP room is available for people to book and if the room is not reserved, all
the customers can use it but they will be asked to converse quietly (gamers, film watchers
and music listeners in any part of the internet caf must wear headphones or earphones at
all times, with standard fees applying for use of business headphones);
Updating software and hardware will cost a lot of money. That is why we want to
collaborate with stores which sell us our software, the cost will be reduced when they
offer some new products to our internet caf, and we can advertise their new products.
People will be attracted by something new and so that we can increase our profits; if
people think the software is useful or the game is interesting, they will buy it so that the
stores which sell the software can also increase their sales of new products.


Gratefully acknowledgement to the following persons who in one or another helping us
inmaking this study a successful one. They serve as guide and shared knowledge that thisproject
was made possible.
To Mr. Arnold Policarpio our special project adviser who has been there to support us.
To Mr. Arbie Laquian for teaching how to prepare the financial statement and spendinghis time
even though hes busy.
To Mr. Christian Ortega owner of RAMPAGE CAF
and Ms. Lorna Torres employee of Caloocan City Hall for giving us the time and allowing us to
conduct a survey in their prospective area.
To our dear family who have been always there supporting and being understanding ingiving the
time for us to spend this project.
And above all to our Almighty God a million thanks for the strength, knowledge, goodhealth,
wisdom and the guidance that enlightened our hearts and minds that this study wouldbe possible.

Internet caf business is indeed a very popular business. It is one of the establishmentsmade
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 HPcomputers,
connected to the Internet through dial-up modems that were able to transfer dataat 9.6 kilobytes
per second. As the first Internet cafe, Cafe Cyberia got tremendous publicityand 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 therewere over 60 similar
cafes over the world by the summer of 1995.CYBERKADAHAN INTERNET CAFE is name
of a proposed business plan; CYBERbeing related to computers and KADAHAN meaning a
group of individual or people who areclosely bonded.

Type of Business Organization
Since the composed of five (5) ladies each one of has agreed and decided to be partners.The
groups preferred to use partnership as a type of business organization.
is an organization where two or more person binds themselves to contributemoney, property, or
industry into a common fund with the intention of dividing profits amongthemselves.

Benefits of partnership type of business we are establishing:

Partnership is relatively easy to establish; however times should be invested indeveloping the
partnership agreement, in our case theres no problem about it becausewe are mostly friends and
we are devoted to make our business progress.

With more than one owner, the ability to raise funds- Debt vs. Equity maybe increased.

Enhanced capital availability. Two or more people will be providing and searching for capital. In
addition, funding sources are more likely to entertain financing requestbecause of the broader
capital base.

The profit from the business flow directly to the business though the partners personaltax return.
Higher quality employees. Partnerships tend to attract better employees because of thepossibility
of becoming a principal in the firm.
Easy form. Procedures and expenses are minimized.
The business usually benefit from partners who have complementary skills.
Better decision- making capability. Two heads are better than one.
Managerial flexibility. Generally, important decisions can be quickly, although not as fastin a
sole proprietorship.

Limited government interference. Like sole proprietorship are normally free of
extensivegovernmental scrutiny.

Cyberkadahan Internet Caf provides services that would give satisfaction to our customer.Aside
from computer rental that have reasonable hourly rates for internet gaming,
internetsurfing or searching cd-burning, scanning, and colored printingProposed Location will
be located at # 82 Samson Road Caloocan City, our prospectivecustomers are basically
everybodystudents doing their projects or research and gamers.This business starts with
the capital of P 700,000.00 Seven Hundred Thousand Pesos contributed by each partner
as follows:

oTo earn profit.
oTo develop ones skill to build up good relationship among customer.
oTo help the students especially the neighboring Barangays to find a computers rental
ataffordable price.
oTo give leisure and enjoyment.
oTo be successful business partners.

The business will be renting a space along hi -way near to malls, and schools, were
our target customers are mainly students and nearby neighborhood especially those people
whoserelatives or loved ones are at abroad and find it very convenient
communicating with themthrough chat and email. The two hundred (200) meter
radius requirements as provided in theexisting Zoning Code and other applicable rules and
regulations wherein computer shops andother similar establishments and places of
amusements should be put up or constructed at l e a s t t wo h u n d r e d ( 2 0 0 )
me t e r s a wa y f r o m t h e c h u r c h , s c h o o l s , h o s p i t a l s , a n d
o t h e r government offices shall be strictly complied with. Site survey is primarily our main
concern inthis preparation. On our site survey we find out that the site has less than 5
competitors andits a good sign of putting up the business.

We choose the location, at #82 Samson Road at Caloocan City, beside Asian
TrustBank. Its about 40 square meters. It is the ideal place to establish an internet caf because
itis accessible to public because its along the highway and our target market is mostly
students,near to schools like Divine Mercy College, Sacred Heart, St. Gabriel Academy and
GomburzaElementary School. We choose this site because we found out that competitors are
minimal inthe place. Its an urbanized area were accessibility, competency and we study
niche/market, asour mai n obj ect i ve whi l e choos i ng t hi s s i t e. I n acces s i bi l i t y,
t he l ocat i on i s j us t al ong t he highway, and its near to malls such as Ever Grand Central,
Victory Mall, Araneta Square, andP u r e g o l d , a n d s c h o o l s s u c h a s D i v i n e
Me r c y C o l l e g e , S a c r e d H e a r t a n d G o m b u r z a Elementary School and
people just strolling along the way and or passengers of utility vehiclecan eas i l y s ee t he
I nt er net Caf . I n compet ency and s t udy of ni che/ mar ket , t he
pr opos edlocation is a commercial place, so the prospective customers is almost everybody.
Most of theI nt er net s hop l ocat ed i n t he ar ea i s i ns i de t he mal l s whi l e t he
compet i t or s out s i de i s j us t minimal, and for that we are more capable of attracting
customers because we will offer moreaffordable rental fee in 15 pesos per hour. Our
Internet caf will provide small private boothsfor quiet chatting compare to the standard
elbow to elbow computer station.We agreed that the shop should be well ventilated (air
condition) to make our customer comfortable, good music is well provided, the
PCs is all well organized and arrange properlyaccording to their rows for the
convenience of our customer. Each computer has their owngames, internet and surfing
to be chosen by our customer, what they want and need is mainlyour concerns.

In technical aspect it identifi es whether the services rendered could be the
highestpossible quality level with minimum cost. In this aspect we will discuss the
equipment andother computer application we use in the business. We purchase
equipment as packages inor der t o l es s en our expens e. Har dwar e and Sof t war e
i s our much f ocus as pect s . We di d researching on how much the Hardware and
software will cost us, through net surfing. Thei nt er net connect i on we us ed i s
Package pl an of DSL Ba yant el amount i ng P9, 799. 00 wi t h capacity for 20
computers and have a speed of 2 Mbps.
In Hardware our target number of PC is 15 (monitor-flatscreen, keyboard, PS2 mouse
andpr oces s or , webcam) , The I nt er net connect i on i s a package of Bayan t el
DSL connect ed(cables) with the speed of 2mbps amounting 9,799.00, 3 in 1Printer, Scanner
& Photocopier. InSoftware, we will installing original Operating System of Ms Office
Professional 2007 likes MSWord, Excel, Power point, Access, Desktop Publishing and installing
the popular on line gamessuch World of warcraft , CounterStrike, Battle Realms, Dance
Audition, Auto Jam, and we willbe installing Norton 360 version 3.0 premium for our
anti-virus and anti -spyware. We offer other service to customers likes printing in
black and white, DVD/CD burning, photocopying, scanners, and payphone.

In marketing aspect, promoting business will use different strategies and techniques toattract
probable customers. And offer promos to attract customer like:

to rent for cheap

- (the customers will be given a card to be stamped every visit and if theygot 25
stamped there every 2 hours is 20% discounted)
held everySaturday
from 3:00 to 5:00 pm only.)

We create some marketing strategies like; we will print a thousands little half
or quarter page fliers printed with the total cost of Php 908.00 (500 pcs. on the
small fliers that cost of Php. 220.50 while the second fliers is also 500 pcs. with the
cost of Php. 687.50), a monthbefore our opening and we will distribute the fliers, mailboxes
or gate. If we get a lot of text ande-mail we know we already have a market.We will put
tarpaulin on the place itself where our shop is standing, promoting the openingof our Internet
caf also one month before the opening. To let people know that there will benew
Internet Shop on the vicinity. Tarpaulin size is 35 x 70, the streamers amount is
Php340.27, And another tarpaulin for the services with the size of 29 x 39 amounting of

Manpower requirements are very important to any business in order for them to have
anintelligent and accurate people who will manipulate inside the firm. Requirements will serve
asbasis on personal and general background of an employee enable for the company
to knowthe capacity of their skills and ability to do work to the assign for them.
Business owner will be in charge in human resource. The personnel to man Internet
cafewill be the industrial partner who works by shift, 8 hours a day, the first shift is from 7:00
am to3:00 pm while the second shift is from 2:00 pm to 10:00 pm. A walk in technician will be
calledin case of computers malfunctions and he will visit the shop twice a month.Walking
Technician P400.00/visit twice a month.



Factors that we consider while putting up our own Internet caf

Location-Picking a good spot and well hit us a gold mine.
Competition-Most business-minded people think of competition as a race to charge
thelowest prices in order to win customers. While its good for the customers,
exceedingthe lower boundaries can drive you and your competitors to bankruptcy. One
cannotexpect to recover a Php500, 000 investments if hourly rentals go down to as low
asPhp10. It goes without saying that in this industry, there are no customer loyalty;
justcheaper rentals.
Software Licensing-its really important to have an original operating system,
becausepirated OS can eventually damage the system.
Expected ROI- investing money in a business is a risk in our case the well tabulated
if financial statement is our major concern.

Caf opens at 7:00 am until 10:00 pm. Ahead of other competitors, this will lead us of
beingknown. Our goal is to give the needs of the students and others in an early
manner of time. Itwill also include the completion all legal requirements before the
operation of business. Inoperational procedure we keep in minds all the legal
aspects of establishing a business suchas Business permit & the following requirements
Registration with BIR (Bureau of Internal Revenue)
Registration of business name with DTI ( Department of Trade and Industry)
Barangay Clearance and Business Permit
Mayors PermitBARANGAY CLEARANCEThe proposal business will secure Barangay
permit that is our responsibilities. It wouldmake the immediate community to be aware of
the business that would give satisfaction andpromote community

The proposed business should be registered with DTI to assure that any organization
of individual for their business proposal for future use would not copy the name of our business.
Itacquires 15 days period of processing before the name of the business registered
certificatecan be issued by the said government agency.

Business Permit must be applied with the licensing office at the Municipal Hall of
thes ai d l ocal i t y. I t woul d be bas ed on t he r epor t ed bus i nes s ent i t y t o be
put up; we s ecur edbarangay clearance as a requirement for an application.

Bureau of Internal Revenue The proposed business should register with BIR and
secured TIN (Tax IdentificationNumber) which will be used as simplifying the record
control producers relating to taxation andsecuring VAT (Value Added Tax)

MAYORS PERMITMayors permit must acquired before the operation of the businessSteps in
processing permitsSTEP 11. Business Name Registration CertificateValidity: 5 yearsRequirements:
Accomplished Business Name Registration Form [Single Proprietorship/Partnership]
Tax Identification Number (TIN)
Registration fee of P 300.00STEP 2Mayors / Business PermitLocal Municipality where the
business is locatedValidity: 1 year Requirements:

Accomplished Business Permit Application Form
oDTI-Business Name Certificate
oSketch of he business location
oBarangay Clearance
oLease ContractSTEP 3
oBureau of Internal Revenue (BIR) National OfficeSTEP 4Securities and Exchange Commission
(SEC) CertificateRequirements:
oVerification Slip Form (re: proposed name)
oAccomplished Registration Data SheetLEGAL REQUIREMENTS COSTBarangay Clearance

* The mayors permit computation was computed by Ms. Lorna Torres at Business Permits
andLicensing Office, City of Caloocan
Signage Permit
According to Mr. Bong Reyes of Engineers Office of Caloocan City Hall signage permit is35.00
per square ft.
Computation:10sq.ft. x 35.00 = 350.00
AdditionalInspection fee 150.00Filing fee 50.00
Total Cost Php550.00The amount of signage is Php.4,000.00

he store will be open Monday through Sunday. Ahead from other Internet shop along thearea,
the mall opens at 8:30 am; we always believe that the early bird catches the worm.
Theplace is good for group, good for kids, attire- casual.


Business Year will start at June 2009

Prepaid Rent is Php.10,000.00 monthly, Payment will first month of the business year.

Payable must paid before the division of income

Division of income will be at the end of business year

Salaries for Other technician will be Php.500.00 per visit, estimated once a month

Air condition maintenance will for Php.450.00 every year

Water expense is Php.117.50 minimum bill every month.

Bill of telephone was included in DSL

Cleaning Expense is Php.1,735.00 for the whole year

Anti virus is package purchase that good for 5 computers amounting Php.3,600.00 each

2010 purchase another Norton Anti virus for the additional computer

Padlock and other cleaning materials considered as expense at the end of the year

Membership card is good for 1 year

All lightings materials are included in lease of contract

Membership card, small tarpaulins & fliers will purchased twice a year

Financial aspect conform the detailed computation of every financial needs of
thebus i nes s t o det er mi ne and eval uat e t he pr oj ect r equi r ement s , pos s i bl e
s our ces , capi t al financing and also the limitation of the business such as terms and
condition. Capital is themost important asset in the business; it must be available at
least cost when it is needed andthe most important aspect among others. It admits
how the business is made possible anddetermines the profitability of the business.

Financial aspect conform the detailed computation of every financial needs of
thebus i nes s t o det er mi ne and eval uat e t he pr oj ect r equi r ement s , pos s i bl e
s our ces , capi t al financing and also the limitation of the business such as terms and
condition. Capital is themost important asset in the business; it must be available at
least cost when it is needed andthe most important aspect among others. It admits
how the business is made possible anddetermines the profitability of the business.
Major Assumption
The Initial capital will be Php 700,000.00.
The projected financial statement will cover up to 5 yrs.
Equipment will be depreciated for 5 yrs.
Other Assets will also depreciated for 5 years
Software will be amortize for 5 years
Salaries will be increase 3% annually.
Light expense will be increase 3% annually.
Telephone bill/DSL increase 3% annually.
Supplies will purchase annually.

Additional equipment will purchase before the business year operate

Division of net income is a bonus method (bonus after tax) to industrial
partner will be40% and 60% to capitalist partner for the following years within 5 years
of operation.
60% of the net income is divided equally to the capitalist partner
Dr awi ngs wi l l be 2. 5 % ever y mont h bas ed on t he net i ncome whi ch
i s 30 % f or t he whole year.

There are some objectives and guidelines to be met:
To make a safe, realistic and complete of operating revenues and costs.
To determined the liquidity, profitability and soundness of its financial position.
To determined the accumulated capital financing from partners.
To determined and ensure the necessary financial management of business will have
monetary resources whenever necessary.
To make an accurate estimated total cost.

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

When starting a new business, there are many important decisions to make and
many rulesand procedures that must be addressed. The number of task you need to
complete and theinformation you need to track down before you begin a business. The
followings are:
I . B a s i c n e e d s t o o p e n a n e w b u s i n e s s
Wher e t o open your bus i nes s - Deci di ng wher e t o open and when t o
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 successof t he bus i nes s can hi nge on wher e i t s l ocat ed and
when i t s opened. To wor k through these decisions, choose one of the following:
1. Choos i ng whet her t o l eas e s pace or f r om home.
2.Choosing the best geographic location for your business.

Selecting a location - An important factor in selecting a location is that you keep along
term perspective. Site selection can be a big investment. Choosing the rightsite now can
avoid the cost of relocation in the future. Here are some factors thatyou should consider
in making your site decision:1 . Lo c a t i o n o f c o mp e t i t o r s . 2 . T a r g e t
m a r k e t .

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
dependson your budget. Here are some suggestions:1. Di s t r i but e f l i er s
announci ng your bus i nes s . 2 . P u t a b u s i n e s s s i g n . 3. Cr eat e s ever al
pr omot i onal gi mmi cks .
Get t i ng l i cens es and per mi t s - Bef or e your bus i nes s s t ar t t o oper at e
al l t henecessary legal requirements must be complied, to avoid problem in
the near future.

Hiring employees - This is very important, hire people, who is trustworthy
andhave knowledge at your business, consider relatives and those recommended

Starting a new business
Owner s hi p Res pons i bi l i t i es - Pr obabl y t he t wo mos t common r eas ons
t hat abus i nes s does n t s ucceed ar e t hat 1) t he bus i nes s i s poor l y managed
becaus e t he owner lacks the necessary skills and 2) the owner underestimates how
much money itwill take to start the business. To begin the process of preparing
yourself, lets take alook at:
1. Pr os and Cons of owni ng a bus i nes s :
A. You have the chances to make a lot of money than you can make workingfor 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 ina variety of
.H. Youll the chance to work directly with your customers.
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
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
anddes i r es i nt o concr et e t er ms by s et t i ng goal s and t hes e i s a Per s onal
goal s - unl i kemoney, 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 businessinclude:
1. Freedom- owning your own business is a way to achieve personal freedom onmany levels.

2. Career change- Most people change jobs or even careers several times duringthe 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 notbeing used
properly in a corporate setting, and they want the chance to do it the right way.

How to get Exposure for my business
Exposure through Advertising and Promotions- Advertising and promotions isbringing 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 theorganizations. The plan usually includes what
target markets you want to reach, howmuch money is budgeted for this effort.

I V . M i n i m i z i n g r i s k f o r m y b u s i n e s s
oHiring family members - A family member will more willing to step into your shoeswhen
needed. For example, if you get tied up doing something, a family member usually makes a
reliable fill-in.

oFranchising - A good way to reduce your risk of failure is to purchase a franchisebecause
franchises typically have a higher success rate than other types of smallbusiness.
oKnow when to cut your losses - If you dont decide the financial commitment
toyour new business in advance, you may regret it in the future
oFinancing assessment- Fi ndi ng t he money t o s t ar t a new bus i nes s i s
al mos t al wa ys one of t he mos t di f f i cul t hur dl es new owner s f ace. At t hi s
poi nt i n t he process of analyzing your business idea. You should have examined
both theresults that you know how much it should cost and how much you should be ableto
oLegal assessment- I n maki ng a l egal as s es s ment of your bus i nes s i dea,
youneed to determine to what extent the operation of your business might
exposeyou to legal liability.

V . M i n i m i z i n g r i s k f o r m y b u s i n e s s
Hiring family members - A family member will more willing to step into your shoeswhen
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 franchisebecause
franchises typically have a higher success rate than other types of smallbusiness.
Know when to cut your losses - If you dont decide the financial commitment toyour
new business in advance, you may regret it in the future.
Financing assessment - Fi ndi ng t he money t o s t ar t a new bus i nes s i s
al mos t al wa ys one of t he mos t di f f i cul t hur dl es new owner s f ace. At t hi s
poi nt i n t he process of analyzing your business idea. You should have examined
both theresults that you know how much it should cost and how much you should be ableto
Legal assessment- I n maki ng a l egal as s es s ment of your bus i nes s i dea,
youneed to determine to what extent the operation of your business might
exposeyou to legal liability.

Technical Aspect* Pr i ce i nf or mat i on of Nor t on Ant i Vi r us was gat her ed f r om
Mi cr os er ve Comput er s Co. a company who merchandise a computer gadgets and
software which is located at #91 DelMonte Ave Manresa 1 Quezon City. We
purchase 3 packages, every package i s good for 5uni t s wi t h t he pr i ce of
3, 600. 00 each and a t ot al cos t of 10, 800. 00. On t he next year we purchase 1
package for the additional computer.

Computer software such as Ms Office Software, Game Software and Anti -Virus will
beamortized annually.- I n a ques t i on about t he amor t i z at i on of comput er
s of t war e, C. T. Val i x expl ai n t hat Under PAS 38, t he amor t i z at i on met hod
f or a comput er s of t war e s hal l r ef l ect t he pattern in which the assets future
economic benefits are expected to be consume byentity.- If such pattern cannot be
determined reliably, the straight line method is used (683)-Based on personal interview of Mr
.Emmanuel Sadiua CPA, SGV Auditing firm that thecomputer software product shall be
charge to expense when incurred until at technical feasibility has been established for the


S.W.O.T Analysis of an Internet caf (Mecca) on Melton Road


* Belgrave area in which disposable incomes are moderate to high.

* Situates near the "Golden Mile" which is the heart of the Belgrave community. There are also a primary
and a secondary school near by.

* Proposed premises are situated near bus stops and a busy shopping area throughout the week which
will mean easy access to the general public in the area.

* The premises have many large windows and an open plan, located near the town centre, providing much
opportunity to entice custom via interior design.

* The premises have easy access routes as there are number of ways to get to the location via buses and


* The exterior design of there location is not breath taking and therefore does not attract many customers
throughout the day.

* Limited parking space available (parking has to be done in the side streets which could become a
problem such as congestion).

* It offers limited amounts of internet access as other space is used for national/international calls.

* They do not offer facilities that are offered by competitors such as scanning or gaming experience.


* There is an opportunity to completely dominate the market of internet cafes and the small surrounding
towns as the main service provided is modern, fashionable and the closest replicating service is in near by
on Melton Road. On top of which it will be the most competitively price though this may require the
adoption of penetration pricing until customer loyalty is established.

* If market domination is established there is and opportunity to expand the range of services to include
new and efficient technology.


* The main threat comes from current competitors who may also aim to slash prices, if this is the case; the
internet caf may have to look at product differentiation.

* The other threat comes for competitors as they can offer more technological facilities which could drive
the business into bankruptcy problems, as profits may decline.