Walin Internet Cafe

Business Plan

By: Abebe Mintefa

Contact address: Ambo

 Tel:-+251929362458
 E-mail:-tolabula@gmail.com

January 14, 2022

Ambo

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Table of Contents Page
i. Acronym............................................................................................................................................................................... ii
1. Executive summary..............................................................................................................................................................1

1.1 Organizational Structure and Management......................................................................................................................2

2. Objectives.............................................................................................................................................................................. 2

3. Mission.................................................................................................................................................................................. 2

4. Keys to Success..................................................................................................................................................................... 3

5. Risks...................................................................................................................................................................................... 3

6. Technology............................................................................................................................................................................ 3

8. Start-up Summary................................................................................................................................................................ 4

9. Market Analysis....................................................................................................................................................................4

10.1 Marketing Plan..................................................................................................................................................................4

10.2 Market Needs.....................................................................................................................................................................5

10.3 Marketing Plan services....................................................................................................................................................5

10.4 Marketing Plan Price........................................................................................................................................................ 5

10.5 Marketing Plan Place........................................................................................................................................................ 6

11. Legal Form............................................................................................................................................................................... 6

12. SWOT analysis................................................................................................................................................................7

13. List of fixed assets............................................................................................................................................................8

14. Walin Internet Café Layout............................................................................................................................................9

15. Direct material cost/supply.............................................................................................................................................9

16. Lobar cost.......................................................................................................................................................................10

17. Indirect cost....................................................................................................................................................................10

18. Monthly Sales Plan........................................................................................................................................................ 10

19. Financial plan................................................................................................................................................................ 11

20. Cash flow - Projected monthly cash flow statement....................................................................................................12

21. Profit & loss statement (for Service business)......................................................................................................................13

22. Balance sheet..................................................................................................................................................................14

23. Business start-up schedule/Gantt chart...............................................................................................................................15

24. Conclusion.............................................................................................................................................................................. 17

25. Unit of competence covered...................................................................................................................................................17

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i. Acronym
 SME : Small Micro Enterprise

 Hr: Hour

 Min : Minute

 CD: Compact Disk

 UTP: Unshielded Twisted Pair

 HNS : Hardware and Network servicing

 AOST: Administrative Office and Secretarial Technology

 4 GHz: Giga Herz

 RAM: Random Access Memory

 GB: Giga Bite

 HDD: Hard disk

 LCD: Liquid crystal display

 PC: Personal Computer

 IT: Information Technology

 FTP: File transfer Protocol

 WWW: World Wide Web

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 1. Executive summary

Starting an internet cafe business can be a challenging task, especially if you lack entrepreneur
experience. However, devising a business plan will greatly facilitate you along the way. First of
all, it will help you to gather many important information and facts, come up with a variety of
internet cafe business ideas, decide on the format, consider pros and cons of this business, and
even think about its future development. When getting down to work, the first questions coming
to your mind might be whether it is a profitable business, how much does it cost to open an
Internet cafe or what equipment do you need to start an internet cafe? This article probably won't
provide you with a full answer, rather it will give you a general description of internet cafe
business, while adding more questions for you to consider.

Walin Internet Café, unlike a typical cafe, will provide a unique forum for communication and
entertainment through the medium of the Internet. Walin Internet Café is the answer to an
increasing demand. The public wants: (1) access to the methods of communication and volumes
of information now available on the Internet, and (2) access at a cost they can afford and in such
a way that they aren't socially, economically, or politically isolated. Walin Internet Café’s goal is
to provide the community with a social, educational, entertaining, atmosphere for worldwide
communication.

Walin Internet Cafe will provide to formulate the Internet Café, Secretarial service, service to
local small businesses, offices, the local community as well as home PC users. The enterprise
will focus on marketing responsiveness, quality, and creating and retaining customer relations.

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1.1 Organizational Structure and Management

Manager

ICT technician Secretary

Owner(s) profile

No Name Address Qualification Function in the business Relevant

experience
1 Kena Tesema Ambo HNS Manager 0 year

2 Abera Eshetu Ambo HNS ICT technician 0 year

3 Bontu Jirenga Ambo HNS Secretary 0 year

2. Objectives
 To provide the best service available to the community at an affordable price.

 Constant growth in service from start up through year two.

 To generate customer satisfaction so that at least 50% of our customer base is repeat
business.

3. Mission

Besides making profit our internet café first of all should serve a public good. Think of those
social solutions that bring. Walin internet café can fulfill the following mission

 It provides an easy ,reliable ,save and affordable access to the Internet

 It serves a meeting place for sharing online experience

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  It accommodates a creative and confortable environment for people to work, play and
relax

4. Keys to Success

The keys to the success for Walin Internet Cafés are:

 The creation of a unique, innovative, upscale atmosphere that will differentiate Walin
Internet Café from other Internet cafes.
 The establishment of Walin Internet Café as a community hub for socialization and
entertainment.

 The creation of an environment that won't intimidate the novice user. Walin Internet
Cafés will position itself as an educational resource for individuals wishing to learn
about the benefits the Internet has to offer.

5. Risks
The risks involved with starting Walin Internet Cafés are:
 Will there be a demand for the services offered by Walin Internet Café in Ambo?
 Will the popularity of the Internet continue to grow?

 Will the society or customers be enough interest in it?

 Will individuals be willing to pay for the service Walin Internet Café offers?

6. Technology

Walin Internet Café will invest in high-speed computers to provide its customers with a fast and
efficient connection to the Internet. The computers will be reliable and fun to work with. Walin
Internet Café will continue to upgrade and modify the systems to stay current with
communications technology. One of the main attractions associated with Walin Internet cafes, is
the state of the art equipment available for use.
7. Future Services

As Walin Internet Café grows, more communications systems will be added. The possibility of
additional units has been accounted for in the current floor plan. As the demand for Internet
connectivity increases, along with the increase in competition, Walin Internet Café will continue
to add new services to keep its customer base coming back for more.

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 8. Start-up Summary
The communications equipment necessary to provide Walin Internet Café‘s customers with a
high-speed connection to the Internet and printing services to offer make up a large portion of the
start-up costs. We are also seeking a short-term loan from Siinqee Bank amount 113862.5. To
reach our goals, we will use an aggressive advertising campaign to exploit our competitors'
weaknesses. With good cost service, we will see a modest, yet comfortable, net profit the first
year, even after moving into a leased space and adding additional members.

9. Market Analysis

The majority of potential customers are dissatisfied with existing options, creating an attractive
role for an innovative start-up. Small business internet users and offices will provide the majority
of our business revenue. 

Walin Internet Cafe SME has decided to focus mainly on the small business market,
as these customers typically don't have a full-time Internet service, but have full-time IT support
service. Walin Internet Cafe SME will offer an affordable, on-demand service for these
customers. We can also offer maintenance agreements that generate additional monthly income.
For our residential customers, we will offer a very reasonable and helpful service with a very
flexible schedule to meet their needs. Market research indicates there is a plenty of business for a
small company such as Walin Internet Cafe partnership.

10.1 Marketing Plan

As we have conducted a market survey we have identified a high demand for our service in
Ambo town. As far as our survey is concerned, competitors do not have the facilitation for their
internet service. They are limited with some services. We are also providing Walin Internet
Cafes with integration of Internet services, secretarial service.

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10.2 Market Needs

The rapid growth of the Internet services has been observed worldwide. There is a high demand
for an internet cafe where people can come to. Check their email and search the web for
information. Walin Internet cafe is designed to be an additional source of income for a
partnership. It will enjoy the first-mover advantages of name recognition and customer loyalty.
Walin Internet Café has set a goal to maintain greater than a 50 % market share.

10.3 Marketing Plan services

Detailed description of service

No. Service type Descriptions

1 Internet Charged per minute
2 Secretarial Charged per page

10.4 Marketing Plan Price

Questions Services
Internet Secretarial
How much are Highest Average Low Highest Average low
customers willing to
pay?
Competitors’ price 1.5br per 1 per 0.75 per Birr 5 per Birr 4 per Birr 3.5
minutes minute minute page page per page
My price 1br per 0.75 per 0.50 per birr 4.00 Birr 3.50 Birr 3.00
minute minute minute Per page per page per page
Reasons for setting our To attract the customers, to be competitor and we promoted enough.
price

Margin for discount? Yes, 5% 30min - 1hr Yes, 25% Above 1hr

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10.5 Marketing Plan Place
Location of the business
Description of the planned location for the business
The planned location of the business will be Ambo town near to Ambo University Hacalu
Hundesa Campus.
Reason for choosing the location of the business
Demand for our service is high in Ambo town, we can get sufficient working place and there are
limited similar business in that areas and maximum number of customer’s availability.
Reaching the customers by selling service to

 Individuals Retailers Wholesalers

11. Legal Form

The legal form of the Walin Internet Cafe Pvt. Ltd. MSE will be:
Sole proprietorship  partnership
Limited company Corporation
Reason for choosing this legal form

 Easy to form
 Low costs to start
 Added capital sources
 Shared management
 Possible tax advantages

Type of business

Manufacturer  Service provider

Retailer Wholesaler

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 12. SWOT analysis
The SWOT analysis provides us with an opportunity to examine the internal strengths and
weaknesses Walin Internet Café must address. It also allows us to examine the opportunities
presented to Walin Internet Café as well as potential threats.

Strengths

 Knowledgeable and friendly staff. We've gone to great lengths at Internet Café to find
people with a desire for training and sharing their Internet experiences.
 State-of-the art equipment. Part of the Walin Internet Café experience includes access to
state-of-the-art computer equipment. Our customers enjoy beautiful flat-screen displays,
fast machines, and high-quality printers.

 Upscale ambiance. When you walk into Walin Internet Café, you'll feel the technology.

 Clear vision of the market need Walin Internet Café 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
 A dependence on quickly changing technology. Walin Internet Café is a place for people
to experience the technology of the Internet. The technology that is the Internet changes
rapidly.
 Cost factor associated with keeping state-of-the-art hardware. Keeping up with the
technology of the Internet is an expensive undertaking. Walin Internet Café needs to
balance technology needs with the other needs of the business.

Opportunities

 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 Walin Internet Café offers.
 Social bonds fostered by the new Internet communities. The Internet is bringing people
from across the world together unlike any other communication medium. Walin Internet
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 Café will grow some of these communities on its own by establishing chat areas and
community programs.

Threats

 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. Walin Internet Café is aware of this threat and will
closely monitor pricing.
 Emerging local competitors. Currently, Walin Internet Café 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.

13. List of fixed assets

No Item Specification Quantity Unit cost Total cost

1. Personal Processor speed 2.4 GHz, 2 26,000 52,000

Computer RAM 4 GB.HDD,40GB,
LCD Monitor

2. Network Switch 12 port 1 3600 3,600

3. PC Station Support at least 4 nodes 1 3000 3,000

4. LCD Monitor 17” 4 3000 12,000
5. Table 1.5mx.80m 6 3000 18,000

6. Chair Single Seat 10 400 4,000

7. Printer HP Laser Jet 400d 1 12000 12,000

Total Cost 104,600

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 14. Walin Internet Café Layout

15. Direct material cost/supply

No Raw materials Specification Quantity Unit cost Total cost
needed per month
1. Paper A4 double 5 pack 1500 7500
2 CD Princo 1 pack 350 350
3. Network Cable UTP Cat.6 50 Meter 20 1000

4. UTP Connector RJ-45 20 5 100

5. Divider Power king 3 500 1,500

6 Toner HP 1 PC 1000 1000

7 Sweep Portable 2 50 100
Total cost 11,550

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 16. Lobar cost

No Position Qualifications Salary Total salary

month

1 Manager HNS 2000 24000

2 IT technician HNS 1500 18000

3 Secretary AOST 1000 12000

Total staff Cost 54000

17. Indirect cost

No Expenses Item Per month Annual
expenses

1 House rent 1000 12000

2 Electric 200 2400

3 Internet 2600 31200

Total staff Cost 45600

18. Monthly Sales Plan

The following table shows the monthly sales plan of the all services
provided in our business.

Monthly Total
Annual
Unit revenue
1 2 3 4 5 6 7 8 9 10 11 12

Price 0.75 0.75 cent 0.75 cent 0.75 cent 0.75 cent 0.75 0.75 0.75 0.75 0.75 0.75 cent 0.75 cent
cent cent cent cent cent cent

Quantity 27000 25200 27000 18000 25200 23400 21600 27000 25200 25200 18000 25200
min min min min min min min min min

Revenue 20250 18900 20250 13500 18900 17550 16200 20250 18900 18900 13500 18900

Price 3.5 Birr 3.5 Birr 3.5 Birr 3.5 Birr 3.5 Birr 3.5 Birr 3.5 Birr 3.5 Birr 3.5 Birr 3.5 Birr 3.5 Birr 3.5 Birr

Quantity 600 500 600 650 1200 800 700 600 700 650 750 1000

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 Revenue 2100 1750 2100 2275 4200 2800 2450 2100 2450 2275 2625 3500
S

ec
Total Revenue 22350 20650 22350 15775 23100 20350 18650 22350 21350 21175 16125 22400 246625

19. Financial plan

Capital requirement
Capital requirement/project cost? Amount
 
Fixed asset
 Equipment/ asset 104,600
 Others -
Total fixed asset 104,600
Pre-operating expense
 Working Capital/operational cost of one month 9262.5
Total working expense 9262.5
Total capital requirement 113862.5

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 20. Cash flow - Projected monthly cash flow statement
Particulars
Months

Cash at the beginning 1 2 3 4 5 6 7 8 9 10 11 12

of the month
Cash inflow - 20552.0833 31841.666 42616.692 53392.6962 64169.7227 74947.7492 85726.7757 96506.8022 107287.8287 118069.8552 128852.8817

Revenue income 20552.0833 20552.0833 20552.0833 20552.0833 20552.0833 20552.0833 20552.0833 20552.0833 20552.0833 20552.0833 20552.0833 20552.0833

Loan 113862.5 - - - - - - - - - - -

Total revenue 134414.5833 41104.1666 52396.7493 63172.7753 73949.7795 84727.806 95506.8325 106286.859 117067.8855 127849.912 138632.9385 149416.965

Direct cost/ supply 962.5 962.5 962.5 962.5 962.5 962.5 962.5 962.5 962.5 962.5 962.5 962.5

Salary 4500 4500 4500 4500 4500 4500 4500 4500 4500 4500 4500 4500

Indirect cost 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800

Fixed asset 104,600 - - - - - - - - - - -

Interest payable - - 517.5568 517.5568 517.5568 517.5568 517.5568 517.5568 517.5568 517.5568 517.5568 517.5568

Others - - - - - - - - - - - -

Total Expense 113862.5 9262.5 9780.0568 9780.0568 9780.0568 9780.0568 9780.0568 9780.0568 9780.0568 9780.0568 9780.0568 9780.0568

Taxes payable - - - - - - - - - - - -

Total Cash outflow 20552.083 31841.666 42616.692 53392.6962 64169.7227 74947.7492 85726.7757 96506.8022 107287.8287 118069.8552 128852.8817 139636.9082

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21. Profit & loss statement (for Service business)

Revenue Amount

Revenue from service 246625

Expenditure

Salary expenses 54000

Rent expenses 12000

Electric 2400

Internet 31200

Paper 7500

CD 350

Network Cable 1000

UTP Connector 100

Divider 1,500

Toner 1000

Sweep 100

111150
Total expenditure
135475
Net income before tax

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 22. Balance sheet
Assets Amount Liability Amount
Current Assets Current liabilities
House rent 1000 Account payable -
Electric 200 Taxes payable -
Internet 2600
Salary 4500
Supplies 962.5
Total current Assets 9262.5 Total current liabilities -
- Loans 113862.5
Fixed Assets Total liabilities 113862.5
Equipment /asset 104,600 Owners’ equity -
Total fixed Assets 104,600 Capital -
Total Assets 113862.5 Total liabilities & capital 113862.5

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23. Business start-up schedule/Gantt chart
Year 2022
Month
S.N Milestones
January February March April

1 Action Plan preparation

2 Gather information

3 Prepare business plan

4 Secure stat-up Funding

6 Purchasing fixed Asset and supply

7 Site Selection

8 Architect Designs

9 Implementation/connecting devices

9 Licensing

9 Starting service

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Milestone Start Date End Date Budget Responsible person

Action plan preparation 1/1/2022 8/1/2022 Free Manager

Gather information 9/1/2022 15/1/2022 Free System analyst

Business Plan 16/1/2022 31/1/2022 Free Manager

Secure Start-up Funding 1/2/2022 10/2/2022 Free Manager

Purchasing fixed asset and supply 11/2/2022 20/2/2022 Free Manager

Site Selection 21/2/2022 28/2/2022 free Manager

Architect Designs 1/3/2022 18/3/2022 Free System designer

Implementation/connecting devices 19/3/2022 25/3/2022 Free ICT technician

Licensing 26/3/2022 28/3/2022 Free Manager

Stating service 1/4/2022

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24. Conclusion
This project is expected to develop Internet Café for society around the Ambo University
Campus to solve the limitation of Internet access and printing service. It minimizes or reduces
the cost of using internet and printing services for the customers and easy to share different files
in world wide area.

25. Unit of competence covered

 Gather Data to Identify Business Requirements
 Monitor Implementation of Work plan/Activities
 Plan and Organize Work
 Build Internet Infrastructure
 Manage Continuous Improvement System
 Improve Business Practice

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