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Cyber Cafe Business Plan
Cyber Cafe Business Plan
This Cyber Café will provide a unique forum for communication and entertainment through the medium
of the internet. The public want to access to the methods of communication and volumes of information
now available on the internet and access at a cost they can afford and in such a way that they aren’t
socially & economically. The goal of this Cyber Café is to provide the community with a social,
educational, atmosphere for worldwide communication.
The amount to run this Cyber Café is RM 250000 which includes the cost of the equipment, services,
furniture, cabling, decoration, fixed cost and variable cost. All this amount we trying to get loan from
CIMB Bank with Business Premises Loan Scheme.
This Cyber Café will organize and runs by 4 shareholders since they finish the study and take specialist in
this subject. Two of the shareholders already had a degree in networking and others shareholders have
a experience in technician.
We were expecting to maintain about three years to establish our market and settle the bank loan.
Successful operation in the first three years will provide Cyber Café with a customer base that will allow
it to be self-sufficient after three years later.
Objective
Mission
As the popularity of the internet continues to grow at an exponential, easy and affordable access is
quickly becoming a necessity of a life. This Cyber Café provide communities with the ability to access the
internet, enjoying play games and share internet experience in a comfortable environment. The people
of all ages and backgrounds will come to enjoy the unique, upscale, educational and innovative the
cyber café provides.
Key to success
The key to the success are:
The establishment of this Cyber Café is as a community hub for socialization and entertainment.
The creation of an environment that won’t intimidate the novice user. This cyber Café will
position itself as an educational resource for individual wishing to learn about the benefits the
internet has to offer.
Company Overview
This cyber café are registered as name Rhythm International Cyber Café and located at Seremban 2,
NSDK. Rhythm International Cyber Café will provide full access to email, internet application, the lasted
games product, other application like MS Office and Adobe Reader. This cyber café also provides
Company Ownership
Rhythm International Cyber Café is hold by 4 shareholders. As the founder of Rhythm International
Cyber Café, we are owners and the holding share of this Cyber Café is divided into four of us.
Startup Summary
This Cyber Café startup costs will cover computer equipment, site renovation and modification, capital
to cover losses in the first year and the communication equipment necessary to get its customers online
(promotion and others).
The communication equipment necessary to provide the Cyber Café customer with a high speed
connection to internet and the service it has to offer make up a large portion of the startup costs. These
costs will include the computer terminals and all costs associated with their set-up costs will also be
designated for purchases of 2 laser-jet printers and scanner.
In addition, costs will be allocated for the purchase of computers spare parts such as mouse,
microphone, keyboard, monitor, printer ink and other maintenances. A single estimated figure will be
allocated for this purpose. The renovations or modification cost estimate will include the costs
associated with preparing the site for opening the business.
The expecting cost to run the cyber café was shown below:
Services
Rhythm International Cyber Café will provide full access to emails, internet application, the fastest
games registered product, other application like Microsoft Office, printing, scanning, Fax services,
repairing (Desktop and Laptop) and selling Computer hardware & Software. This cyber café also provide
customers with a unique and innovative environment for enjoying their time in our cyber café.
Service Description
Rhythm International Cyber Café will provide its customers with full access to the internet and common
computer software and hardware. There is some of the internet and computing services available to the
customers are listed below:
Access to internet explorer
Access to popular software application like Adobe Photoshop and Microsoft Office
Access to laser and color printing
Future services
As Rhythm International Cyber Café grows in this two sites, more communication systems will be added.
The possibility of additional units has been accounted for in the current floor plan (expansion). As the
demand for the internet connectivity increases, along with the increase in competition. Rhythm
International Cyber Café will continue to add new services to keep its customer base coming for more in
the two sites.
Market analysis
Rhythm International Cyber Café is faced with the exciting opportunity of being the first-mover in the
Negeri Sembilan cyber café market. The consistent popularity of coffee, combined with the growing
interest in the internet has been proven to be a winning concept in other markets and will produce the
same results in Negeri Sembilan.
Market segmentation
The target customer can be dividing into three group. First group is familiar with the internet and desire
a progressive and inviting atmosphere where they can get out of their offices or bedroom. Normally this
group is expert in using computer and their jobs needed to the computer using. Second group is not
familiar with the internet yet and just waiting for the right opportunity to enter the online community.
The third group is for children who aged about 8 to 14 years old. This group is the main target because it
can bring about 50% years of whole profit in a month to the cyber café. Usually they are more attractive
to online games and spend a lot of time in here. In addition to these three broad categories, Rhythm
International Cyber Café target market can be divided into more specific market segments. The majority
of these individuals are student and business people.
Strategy pyramid
Social Hub
The third strategy focuses on building a social environment for Rhythm International Cyber Cafe
customers. A social environment, that provides entertainment, will serve to attract customers that
wouldn't normally think about using the Internet. Once on location at Rhythm International Cyber Cafe,
these customers that came for the more standard entertainment offerings, will realize the potential
entertainment value the Internet can provide.
Competitive Edge
Rhythm International Cyber Cafe will follow a differentiation strategy to achieve a competitive
advantage in the cafe market. By providing Internet service, Rhythm International Cyber Cafe separates
itself from all other cafes in Eugene. In addition, Rhythm International Cyber Cafe provides a
comfortable environment with coffee and bakery items, distinguishing itself from other Internet
providers in Eugene.
Marketing Strategy
Rhythm International Cyber Cafe will position itself as an upscale coffee house and Internet service
provider. It will serve high-quality coffee and espresso specialty drinks at a competitive price. Due to the
number of cafes in Eugene, it is important that Rhythm International Cyber Cafe sets fair prices for its
coffee. Rhythm International Cyber Cafe will use advertising as its main source of promotion. Ads placed
in The Register Guard, Eugene Weekly, and the Emerald will help build customer awareness.
Accompanying the ad will be a coupon for a free hour of Internet travel. Furthermore, Rhythm
International Cyber Cafe will give away three free hours of Internet use to beginners who sign up for an
introduction to the Internet workshop provided by Rhythm International Cyber Cafe.
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 the area. Therefore, Rhythm International Cyber Cafe
considered three sources to determine the hourly charge rate as some charge a monthly fee, while
others charge an hourly fee. In addition, some providers use a strategy with a combination of both
Promotion Strategy
Rhythm International Cyber Cafe will implement a pull strategy in order to build consumer awareness
and demand. Initially, Rhythm International Cyber Cafe has budgeted RM2,000 for promotional efforts
which will include advertising with coupons for a free hour of Internet time in local publications and in-
house promotions such as offering customers free Internet time if they pay for an introduction to the
Internet workshop taught by Rhythm International Cyber Cafe's computer technician.
Rhythm International Cyber Cafe realizes that in the future, when competition enters the market,
additional revenues must be allocated for promotion in order to maintain market share.
Sales Strategy
As a retail establishment, Rhythm International Cyber Cafe employs people to handle sales transactions.
Computer literacy is a requirement for Rhythm International Cyber Cafe employees. If an employee does
not possess basic computer skills when they are hired, they are trained by our full-time technician. Our
full-time technician is also available for customers in need of assistance. Rhythm International Cyber
Cafe's commitment to friendly, helpful service is one of the key factors that distinguishes Rhythm
International Cyber Cafe from other Internet cafes.
SWOT Analysis
The SWOT analysis provides us with an opportunity to examine the internal strengths and weaknesses
Rhythm International Cyber Cafe must address. It also allows us to examine the opportunities presented
to Rhythm International Cyber Cafe as well as potential threats.
Rhythm International Cyber Cafe has a valuable inventory of strengths that will help it succeed. These
strengths include: a knowledgeable and friendly staff, state-of-the-art computer hardware, and a clear
vision of the market need. Strengths are valuable, but it is also important to realize the weaknesses
Rhythm International Cyber Cafe must address. These weaknesses include: a dependence on quickly
changing technology, and the cost factor associated with keeping state-of-the art computer hardware.
Rhythm International Cyber Cafe's strengths will help it capitalize on emerging opportunities. These
opportunities include, but are not limited to, a growing population of daily Internet users, and the
growing social bonds fostered by the new Internet communities. Threats that Rhythm International
Cyber Cafe should be aware of include, the rapidly falling cost of Internet access, and emerging local
competitors.
WEAKNESSES :
Strengths are valuable, but it is also important to realize the weaknesses RHYTHM
INTERNATIONAL CYBER CAFE must address. These weaknesses include:
A dependence on quickly changing technology:
RHYTHM INTERNATIONAL CYBER CAFE 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. RHYTHM INTERNATIONAL CYBER CAFE needs to
keep up with the technology because a lot of the RHYTHM INTERNATIONAL CYBER CAFE
experience is technology.
Cost factor Associated with keeping state-of-the-art hardware:
Keeping up with the technology of the Internet is an expensive undertaking. RHYTHM
INTERNATIONAL CYBER CAFE needs to balance technology needs with the other needs of the
business. One aspect of the business can't be sacrificed for the other.
OPPORTUNITIES :
RHYTHM INTERNATIONAL CYBER CAFE's strengths will help it capitalize on emerging
opportunities. These opportunities include:
Growing population of daily Internet users:
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 RHYTHM INTERNATIONAL
CYBER CAFE offers.
Social bonds fostered by the new Internet communities:
The Internet is bringing people from across the world together unlike any other
communication medium. RHYTHM INTERNATIONAL CYBER CAFE will capitalize on this social
trend by providing a place for smaller and local Internet communities to meet in person.
THREATS:
Threats that RHYTHM INTERNATIONAL CYBER CAFE should be aware of include, the
rapidly falling cost of Internet access, and emerging local competitors.
Rapidly falling cost of Internet access:
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.
RHYTHM INTERNATIONAL CYBER CAFE is aware of this threat and will closely monitor pricing.
Emerging local competitors:
Currently, RHYTHM INTERNATIONAL CYBER CAFE 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
Management Summary
Rhythm International Cyber Cafe is owned and operated by 4 of us. The company, being small in nature,
requires a simple organizational structure. Implementation of this organizational form calls for the
owner, to make all of the major management decisions in addition to monitoring all other business
activities.
Organization Structure
Personal Plan
The staff will consists of few fulltime staff in which some of them will take care Seremban 2 branch and
Nilai branch respectively. We act as a technician as well.
Financial Plan
After having a discussion and survey about the loans, we prefer to get loan from CIMB Bank. The interest
rate will be counted as follows:
1st year – 3.5% interest
2nd year – BLR – 1.0% interest
3rd year – BLR + 0% interest
Thereafter – BLR + 0.6% interest
For the first three years, we concentrate to pay the bank loan and establish on our market. After three
years, when bank loan already done, the cyber café will upgrade in term of computer specification,
adding more computers for each site and finally renovate our two premises to make our café looks more
attractive.
Summary of business