Entrepreneurship & Small Business Group Assignment

Department Of Computer Science
5th year
Entrepreneurship and Small Business
Group Assignment
Section- B
Project title
KTK Internet Café Business Plan proposal

Addis Abeba Ethiopia
Group member
Name Id
1. Kidist Berhanu 0115/17

2. Kalkidan Dereje 0113/17
3. Tesfu Dagne 0144/17
4. Kelemua Zewdie 0114/17
Instructor Name: - Bekele F

Submitted date: - April 30, 2022
Executive summary
Starting an internet cafe business can be a challenging task, especially if you lack entrepreneur Ing
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 furnish 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.
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Rift valley university Department of computer science Entrepreneurship and small business
Table of Content
Chapter One
1. Introduction
1.1 Objectives ……………………………………………………………………………………. 1
1.2 Internet cafe business overview……………………………………………………………... 1
1.3 Keys to success ………………………………………..... ………………………………. 2
1.4 Missions ………………………………………………………………………………….. 2
1.5 Pros & Cons of starting an Internet Café ……………. …………………………………. 3
1.6 Risks …………………………………………………….. ……………………………. .. 3
1.7 Company ………………………………………………………………………………… 3
1.8 Company Ownership ………………………………… …………………………………. 3
Chapter Two
2. Technical Documentation
2.1 Hardware Requirement ............................................................................................................….... 4
2.2 Software Needed ………………………………………………………………………………… 5
2.3 Topology Type …………………………………………………………………………………… 5
2.4 Internet Connection Type ………………………………………………………………………... 5
2.5 Activity Planning ………………………………………………………………………………… 6
Chapter Three
3. Company Locations and Facilities ………………………………………………………………... 6
3.1 Service ………………………………………………………………………………………… 7
3.2 Service Description ………………………………………… ………………………………... 7
3.3 What products and services …………………………………………………………………… 7
3.4 Primary service ………………………………………………………………………………. 7
3.5 Additional products/services ………………………………………………………………….. 8
3.6 Attract Power Internet Users ……………………………. ……………………………………. 8
3.7 Comparison to competitors ……………………………….......................................................... 9
3.8 Legal business structure ……………………………………………………………………….. 9
3.9 Brief description ………………………………………… …………………………………… 9
3.3.1 Mission ……………………………………………………………………………………… 10
3.3.2 What problem does your Internet cafe solve ……………………………………………...... 10
3.3.3 What results does your internet café create…………………………………………………. 10
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3.3.4 How does your internet cafe create those results..…………………………………………. 10

3.3.5 Who does your company serve ………………………. …………………………………… 10
3.3.6 Why do you do what you do……………………………………………………………….... 11
3.3.7 Internet cafe management software ………………………………………………………… 11
3.3.8 What are your objectives ……………………………………………………………………. 12
Chapter Four
4. Marketing analysis and strategy
4.1 Market analysis ……………………………………………………………………………... 12
4.2 Market trends & needs ……………………………………………………………………… 14
4.3 Internet cafe marketing plan and strategy …………………………………………………... 17
4.4 Demographics & Psychographics …………………………………………………………. 17
4.5 Where can you find your clients …………………………………………………………… 17
4.6 Visibility (awareness) strategy …………………………………………………………….. 17
4.7 Content strategy comes first ……………………………...................................................... 18
4.8 Website strategy …………………………………………………………………………… 18
4.9 Promotion strategy ………………………………………. ………………………………. 19
4.4.1 Conversion strategy ………………………………………………………………………… 19
4.4.2 Analytics strategy ………………………………………………………………………….. 19
Chapter Five
5.1 Pricing Strategy ………………………………………………………………………………. 20
5.2 Sales Strategy ………………………………………………………………………………… 20
5.3 Sales Forecast …………………………………………………………………………………. 20
5.4 Exit Strategy …………………………………………………………………………………… 20
5.4 Appendix Exit …………………………………………………………………………………. 21
5.5 References ……………………………………………………………………………………… 25
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KTK Internet Café Business Plan Proposal
Chapter One
1. Introduction
Give your internet cafe a name is KTK. Be creative, make sure it fits into the whole picture of your
business concept. Double-check that it’s different from those of your competitors and easy to remember
for your customers. Here you can also consider buying a franchise. In this case, you will build your
institution based on the existing internet cafe business model which proved its success. Basically, you will
get a ready-to-use guide on how to open an Internet cafe, which will save you time, resources and efforts.
However, keep in mind that along with convenience and support that you get as franchisee, you are limited
to a certain level in strategic and managerial decisions. Thus, for experienced and ambitious entrepreneurs,
nurturing novel and fresh business ideas in mind, franchising won’t be a suitable option.
1.1 Objectives
Attain consistent profitability, thus laying the basis for sustainability. Create access to the
information, learning opportunities, and communications media of the Internet, within the host
community. Grow community members’ familiarity with abstract computing and Internet
concepts. Give community members the opportunity to self-teach specialized skills such as
academic research techniques, email and instant messaging, and usage of word processor and
spreadsheet software. •Create a physical space for future development projects in the community.
Enrich communication between residents of Bulawayo and the South African diaspora by
delivering access to affordable voice calls through Skype services. Generate sufficient revenue to
allow physical expansion, offering the potential to replicate the same development objectives in
surrounding areas.
1.2 Internet cafe business overview

An Internet cafe (also KTKcafe) is by no means new, yet a still relevant idea. The service of
providing the public with a PC along with access to the Internet for a charge has been in expanding
request since a long time ago. The first online cafe was launched in 1988 in Seoul and had only
two 16-bit-computers connected to the online system of networks. Today internet cafes can be
found all around the globe, while their purpose has evolved from basic webmail and instant
messaging to multiplayer gaming. Since modern games often require modern computers and
expensive gadgets more and more gamers prefer shared-access models over personal ownership.
Rift valley university Department of computer science Entrepreneurship and small business group assignment 1|Page
Depending on location, target audience, and social agenda of the proprietors, KTK cafés come in
a wide range of formats and can be quite a profitable business. Internet cafes also appear as
gaming lounges, KTK sports arenas, or PC bangs - equipped with VR headsets, gaming consoles
like Xbox and PlayStation, and broadcasting eSports tournaments on a big screen.
The majority of the entrepreneurs, engaged in this field are men of 22 - 50 years old, who
understand computers at the level between the advanced user and system admin. Most of them
also enjoy playing online games, keep abreast of new developments in the realm of computers
and gaming equipment, be up to date with the latest developments in the cyber industry, follow
the news about gaming teams and tournaments. As a rule, these people don’t have a wage job.
Their work is focused on Internet cafes, gaming lounge business, bets, and sometimes other
related businesses. Usually, these people start with a small budget and gradually increase their
income. Those who managed to properly organize their business and make a profit, begin to open
a chain of Internet cafes, some sell franchises.
On rare occasions, there are businessmen, possessing entrepreneurial experience from other
projects, with a million-turnover, who open Internet cafe out of curiosity and desire to try
something new. In this case, they invest a lot of money at once. Often, these business owners are
interested in holding tournaments in specially equipped cyber arenas.
There are also those who don't know anything about this kind of business, rather they’ve been
told that opening an Internet cafe business is a way to make money easily and fast. No matter
which group you belong to if you are considering launching an Internet (KTK) cafe you will need
to devise a business plan. Hereby we introduce an example of an internet cafe business plan,
which can be modified according to your geographies and goals.
1.2 Keys to success

The internet cafe will be a great success because there are very few internet cafes which provide
a one-stop shop,(exact number remains unknown) in the area and therefore the Cheetahs Cafe
will have its own monopoly as far as provision of high profile service is concerned.
1.4 Missions
The mission of our internet-cafe is to make the internet available to a greater population.
In such a way that people will have access to all the sources which can be found on the internet.
Thereby the cafe is supposed to be a place where people of all ages will come to enjoy the unique,
upscale, educational, and innovative environment that the internet-cafe provides.
1.5 Pros & Cons of starting an Internet Cafe

Before establishing a business it is always useful to make up a list of advantages and
disadvantages. We have gathered some of them, which are relevant for an Internet cafe business,
yet keep in mind, that it might look different in each case, depending on the particular market and
the entrepreneurial experience of yours.
1.6 Risks
The main risks in establishing any business at all is always the demand. Will there be enough
demand for my product, will there be enough interest in it? Won't we go bankrupt due to lack of
interest? These risks are also present in the soon to come internet cafe, the population may not be
interested in spending money to go online.
Also, will the popularity of the internet sustain, in order for the people to maintain their interests
in the internet and the internet cafe. And foremost, will there be a profit?
1.7 Company
The internet-cafe which will be realized will offer the community of Bulawayo easy and
affordable access to the internet. The internet-cafe will appeal to individuals of all ages and
backgrounds. The instructional internet classes, and the staff that the internet-cafe provides, will
appeal to the audience that does not associate themselves with the computer age.
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.
1.8 Company Ownership

Soon to be located in Addis Ababa, will offer the community easy and affordable access to the
Internet. Will also provide customers with a unique and innovative environment for enjoying
great coffee and stationary goods. Will appeal to individuals of all ages and backgrounds. The
instructional Internet classes, and the helpful staff that provides, will appeal to the audience that
does not associate themselves with the computer age. 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.
Chapter Two
2. Technical Documentation for KTK Internet Café
2.1 Hardware Requirement
No Item Manu Quantity Unit price Total Price Spec

Power
Dell OptiPlex gx745 HDD
1 Desktop Computer Pcs 11 5,500 60,500 160GB RAM 2GB CPU 2.99
MHZ With
2 Printer Pcs 1 16,00 16,000 HP LaserJet 2055
Accessory
3 Switch Pcs 1 2,000 2,000 HP Port 24
4 Webcam Pcs 10 250 2,500 Web Camera

5 Rj 45 Pcs 30 10 300 RJ 45 Connecter
6 Ups Pcs 6 3,749 22,494 Apc Backup-Ups 650VA,230V
7 Headphone Pcs 10 50 500

8 Power Divider Pcs 6 300 1,800 Power king Pc Mate Ups System
9 Table Pcs 2 2,500 5,000 1.80M * 0.50M
10 Table Pcs 2 2,000 4,000 1.20M * 0.50M
11 Table Pcs 1 2,000 2,000 Internet Café Standard
12 Chair Pcs 10 2,000 20,000 Internet Café Standard
13 Chair Pcs 1 5,000 5,000 Office Standard
14 Tracking Meter 17 100 1,700 38cm * 16cm

15 Net Cable Meter 55 30 1,650 Utp Cable Cat6
16 Screw Packet 1 50 500 6MM
17 Fisher Packet 1 50 50 6MM
18 Liber Cost
Total Price 145,994
2.2 Software Needed
No Application & Os Quantity Total Price specifications Remark

Name of Software
1 Microsoft Window 1 Microsoft Server 2008 R2 Licensed

Server 2008 R2
2 E-Mail Server 2008 R2 1 Microsoft Mail Exchange Licensed

Server 2008 R2
3 Data Base Server 2008 1 Microsoft SQL Server 2008 Licensed

R2 R2
4 Antiviruses Server 1of Kaspersky Server Edition Licensed
Based for 2008 R2 2008 R2
5 Web Server 2008 R2 Microsoft Web Server Licensed

2008 R2
6 Microsoft Window Microsoft Window 10
Client Professional Edition Licensed
2.3 Topology Type
Topology Advantage Disadvantage

Start Cable Frailer & Hub Cab Be Upgraded Easily If the central device fail the overall
device is stop working
2.4 Internet Connection type Need

Internet type Band width Monthly
Broadband Leased 1MBPS 2,200
2.5 Activity Planig
NO Task List Of Activates Performer Duration

1 Planning Observation, measuring. The1st day Owner &Network Admin
2 Purchasing Buying all necessary req. The 2nd day Network Admin
3 Implement on Cable installation, crimper, The 2nd day 1daily Network Admin
installation
4 Testing Test The 1nd day Network Admin
5 Document ion Prepare manual documentation The 3nd day Network Admin
report the
Chapter Three
3. Company Locations and Facilities
A site has been chosen at. This site was chosen for various reasons, including:
Proximity to trendy, upscale restaurants.
communication and socialization for the potential customers
3.1 Services
Will provide full access to email, WWW, FTP, Usenet and other Internet applications such as
Telnet and Gopher. Printing, scanning, and introductory courses to the Internet will also be
available to the customer. Java Net will also provide customers with a unique and innovative
environment for enjoying great coffee, specialty beverages, and bakery items.
3.2 Service Description

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 customers are listed below:
Java Net email account. This account will be managed by Java

Net servers and accessible from computer systems outside the Java Net network.
to laser and color printing.

Word.
will also provide its customers with access to introductory Internet and email classes. These
classes will be held in the afternoon and late in the evening. By providing these classes, will build
a client base familiar with its services. The computers, Internet access, and classes wouldn't mean
half as much if taken out of the environment will provide. Good coffee, specialty drinks and
3.3 What products and services KTKcafe business provides?

When devising a business plan for your Internet cafe it is helpful to distinguish between the
primary and additional services.
3.4 Primary service – within this section think of the core service that your cyber cafe
company provides. Is it good connection to the Internet, gaming facilities, possibility to use
expensive software for a small price, or an equipped working space? Pick out one thing that will
serve as a pillar for your business, think of it as your unique selling proposition (USP).
While choosing a core service mention in your business plan the impact that it will cause.
Speculate on how your customers’ life will be affected by the service(s) that you provide? Maybe
you make people happy, satisfied, productive, entertained. You help the local community to stay
connected with the rest of the world and fulfil their goals by the help of Internet connection /
modern computers / gaming facilities etc.
It might be that your core service will be focused on eSports. This field is getting more and more
popularity, encouraging e-Sports schools being opened around the world. With this regard, many
KTK cafes nowadays also provide separate rooms for training eSports teams.
3.5 Additional products/services. Now time to brainstorm further. Make up a list of

accompanying services that will be offered in your Internet (cyber) cafe and one-by-one write
About the impact they are supposed to make for your customers. You can also use the items that
were mentioned above, yet were not defined as a primary service. Additionally, you can include
the following options to your service list:
 Cafe serving beverages / snacks / healthy meals
 Copy center services
 Private working space (rooms)
 Kicker, darts, etc.
Once your list of primary and additional services is ready keep it at hand. The next step would be
to define their prices. Easily said, but this task will require thoughtful consideration. Besides
checking the prices of your competitors and willingness of customers to pay, you will also need
to count your expenses and comply with financial goals you set. You should also observe the
habits of your customers, and possibly introduce a dynamic pricing scheme (when prices are
flexible and depend on the day time and demand). You should also consider introducing system
of discounts, special offers for loyal customers etc.
3.6 Attract Power Internet Users
Second strategy will be focused on attracting power Internet users. Power Internet users provide
an important function at plans on attracting this type of customer by:
3.7 Comparison to competitors

Check your competitors, define their market share, strong and weak spots. This will then help you
to find your position or niche on the market, as well as set more realistic goals on sales and profit.
Why should customers choose you over your competitor? This question is very important for
defining your unique selling proposition (USP), discovering the pillars of your internet cafe.
Check the list below, pick the points that are relevant for your case and expand if necessary.
 Upscale equipment (laptops, computers, printers, scanners, headsets, consoles (Xbox,
PlayStation), gaming mice, professional keyboards, additional gadgets- VR glasses,
Gaming wheels, controllers etc.)
 Comfortable gaming chairs
 Fast and reliable Internet & Wi-Fi hotspots
 Besides state-of-the-art hardware the computers will also come with professional software
(e.g., Adobe Cloud Programs) and gaming platforms (e.g., Steam). Upon customer request,
the Internet cafe business can also acquire a license for a particular software.
 Possibility for open space and private working rooms/cabins
 Convenient (central, unique, extraordinary) location
 Fair prices, convenient booking system and payment options, bonuses, client discounts etc.
 Open 24/7
3.8 Legal business structure. Every business is a legal unit with a specific structure. Think
of yours. Will it be a sole proprietorship or a partnership, Limited Liability Company (LLC) or a
corporation? Are there any investors involved? While choosing a structure for your business
consider such impacting factors as flexibility, complexity, control, permits, licenses, taxes and
other regulations.
3.9 Brief description of what your business does. Here you should be able to explain
in a nutshell your business concept.
3.3.1 Mission. Besides making profit your internet cafe first of all should serve a public good.
Think of those social solutions that you bring. Your cybercafé can, for example, fulfill the
following missions:
 It provides an easy, reliable, safe and affordable access to the Internet.

 It serves a meeting place for sharing online experiences.
 It accommodates a creative and comfortable environment for people to learn, work, play
and relax.
3.3.2 What problem does your Internet cafe solve for your customers? Possible
answers here might be the following:
 bad PCs at home that do not allow people to play at maximum settings or in the latest
games;
 no privacy at home (parents/ partner or children interfere, etc.)
Think of any other relevant points, depending on your case. Maybe it is also useful to conduct a
focus group to identify other customer needs.
3.3.3 What results does your internet café create?
 Customers get things done by means of having a quick, reliable safe and affordable access
to the Internet
 Customers enjoy being in a creative environment, using affordable upscale equipment for
their studies, work, gaming or entertainment
 Customers are happy to have another place for making friends and connections, while
sharing their online experiences.
Think of any other relevant points, depending on your case.
3.3.4 How does your internet cafe create those results? By means of providing
necessary equipment (computers, software and access to the Internet) in comfortable premises at
a convenient location, offering other services (e.g., food & drinks, open-space and private rooms)
to meet customer needs and ensure best-in-class user experience.
3.3.5 Who does your company serve? Again, think of your Personas. Which customer
cluster reflects the main target audience? Are these travelers, students, professionals, gamers etc.?
What is their average age? What are their core needs? It is important to remember that the choice
of business model and related services will change the target audience, and vice versa. As a rule,
the majority of players in cyber cafes are pupils and students. At the same time the related services
Rift valley university Department of computer science Entrepreneurship and small business group assignment 10 | P a g e
a KTK cafe provides will directly influence the target audience. In case the cyber cafe also sells
alcohol, hookahs, etc., the clients will then be different. You can also expand the target audience
by means of equipping your Internet cafe with gaming consoles, e.g. Xbox or PlayStation.
3.3.6 Why do you do what you do? Reasons for you to run an internet cafe might be
numerous and diverse. Yet try to figure out what it means to you. Maybe you’re an expert t in the
field of KTK cafes or you possess suitable resources for this business. Maybe there is a sharp
demand for such a place, but none or little supply. Maybe you yourself belong to the target
audience and know the needs of the customers as no one else. Or it has always been your dream
to own an internet café. Sincere answer to this question will help you to understand your motives
and plan more realistically not just in a short term, but in a long-term perspective.
3.3.7 Internet cafe management software
Here it is relevant to remind that provided you go with the franchise option, the proprietary system
as well as the main KTK cafe requirements will be provided by franchisor for you to use. Of
course, the terms and conditions might be different depending on the agreement, but the
fundamental restrictive unit for the beginning you will get in most of cases.
3.3.8 What are your objectives? (Define your goals) Last but not least - schedule your
goals. Elaborate some plans regarding sales, revenue and profit you intend to make. Devise a
roadmap of future development of your business. Think of your goals in terms of short-and long-
time perspectives. Draft them for 1-year, 2-years, 5-years’ time span or longer. While setting your
goals on the paper use the rule of S.M.A.R.T. In other words, keep your goals Specific,
Measurable, Achievable, Relevant and Time-bound.
Chapter Four
4. Marketing analysis and strategy
4.1Market analysis
At this stage, make sure to gather as much information about the market, as possible. Invest
enough time to research the general state of matters and trends. A useful technique to apply at this
stage would be PESTLE analysis. The name stands for the abbreviation of the components of the
analysis and is used to scan the following macro-environmental factors - political, economic,
social, technological, legal and environmental. When analyzing the above mentioned factors, try
to identify the elements within each of them, as well as seek to understand what their business
impact is. For example, does the current political situation create a solid basis for you to start the
internet cafe business? Is the economic condition favorable for introducing your service to the
market? Is the society open/ willing to pay for your service etc.? The following table provides the
respective questions to assist you in conducting PESTLE analysis.
Element Factor Business Impact
(List here all factors that have been (Think on what impact each of the
identified) identified factors has on your
business?)
Political  What is the level of corruption?  Does it create favorable
 At what level is the Rule of Law conditions for leading fair and
in the country? transparent business?
 How big are risks from political  Does it serve as a solid basis
instability, threat of violence or for business activity?
terrorism in the country?
Economic  What is the level of income in the  Does it create better
country? possibilities for price policy?
 How high is the GDP per capita?
 Does it make favorable

conditions for introducing a
premium product to the
market?
Sociological  How much do households spend  How likely it is that people
on entertainment / gadgets / will pay for your service?
gaming?  What impact it will have on
 What is the level of human and your marketing campaign and
intellectual development in the key messages?
country?  Does it correspond to the
 What is the average education service you plan to offer?
level in the society?
Technological  What share of the population use  How likely is that people will
the Internet / computers / use the services of Internet
smartphones / VR? (cyber) cafe?
 What are the standards of  What speed of Internet are you
(mobile) Internet in the country? able to provide?
Legal  How long does it take to start a  How does it affect your plans
business? to open an Internet (cyber)
 What are the internet cafe legal cafe?
requirements?
 What is the level of regulatory
quality in the market?
Environmental (if  What is the general opinion on How can it be used for the business
applicable) sustainability topics of the /services of Internet (cyber) cafe?
society?
 What is the Sustainability Image

Score of the country?
Additionally, you can make a SWOT analysis to identify strengths, weaknesses, opportunities
and threats for your business.
4.2 Market trends & needs

To gather information about your target market turn to statistical data, relevant market reports,
professional periodicals, marketing research agencies. While doing your research check the
related industries and fields - Online Gaming, Video Streaming, Cyber Security, eSports etc. Also
look at associated issues in the respective fields: Internet penetration, number of available
commercial wi-fi locations and hotspots, number of Internet users, reasons for using Internet etc.
Some introductory data and insights can be found at statista.com. For example, the eSports market
has been consistently developing in recent years. It is expected to grow further in the next 3-5
years. More and more people nowadays come to watch how their favorite’s games are being
played by world recognized gamers. As indicated by the new zoo there are determined to be 646
million viewers of eSports worldwide by 2023, which is over 30% expansion from the 395
million.
Some introductory data and insights can be found at statista.com. For example, the eSports market
has been consistently developing in recent years. It is expected to grow further in the next 3-5
years. More and more people nowadays come to watch how their favorite games are being played
by world recognized gamers. As indicated by the new zoo there are determined to be 646 million
viewers of eSports worldwide by 2023, which is over 30% expansion from the 395 million in
2026.
The fans are spread over the world, yet the Asia Pacific area is by all accounts a specific hotspot
for eSports. In the USA, meanwhile, some 9.2 % of web users in 2023 viewed eSports, with the
figure expected to rise to 15.5 % by 2026.
As the statistics show every year more and more tournaments are held, bigger audience is
attracted. Thus, while planning a KTK cafe business one should keep in mind that the majority of
gamers also make bets in the field of gaming and eSports.
4.3 Internet cafe marketing plan and strategy

Every marketing action - be it a message, flyer, social post or event - is aimed at people. Thus,
when devising an internet cafe marketing plan it is crucial to gather as much information about
your audience as possible.
4.5 Demographics & Psychographics. Define the demographics of your target audience
– what is their age, gender, income, place of living etc. Then collect their psychographic
characteristics – such as interests, desires, fears etc. In the process of collecting these data you
might come up to the fact that there are several groups / clusters of you TA. Use Personas method
to differentiate them. This will help you achieve the goal of your marketing campaigns, improve
your lead generation and conversion strategy, as well as offer more suitable products/ services to
your clients.
Remember, that a slight detail can make a huge difference. What if a significant part of your
customers are vegans, environmental activists living a sustainable life? How can you make their
experience in your cafe more comfortable - provide vegan snacks, supplying the place with
renewable energy sources, equipping it with eco-friendly furniture etc. The variations are endless
here. Your task is to identify the factors that will signify the interest and bonds of the customers
to your Internet cafe.
4.6 Where can you find your clients? Where can you find each of them - online or off-
line? Think on which online services and social media they use. Do they actively participate in
social media groups, do they read expert magazines or do they attend festivals? The clearer picture
you will get on this stage the easier it will be for you on the next steps - when drawing marketing
strategy (visibility, lead generation and conversion).
4.7 Visibility (awareness) strategy. How people will learn about your Internet cafe - via
ads in Google or social media, through paid commercials on TV or in YouTube, by means of
influencers, flyers or word-of-mouth? Options and combinations can be numerous. The key
factors here are budget and efficacy. You can spend thousands and get zero results, or you can
spend almost nothing but hit the target. Look first at the answers from the previous step, identify
the channels through which you can reach your audience, compare the prices of the channels. And
then build your strategy. Remember, that the advantage (benefit) of digital marketing is that you
can test different strategies with relatively low budget, see what works best and then rise the costs.
Consider turning to a digital marketing agency if that corresponds to your needs.
Additionally, brainstorm for info drivers and events that can be part of your KTK cafe marketing
strategy. One of the possible promotion steps for your business can be hosting eSports
tournaments.
This step requires much thought and effort. The core question here is “How will you establish
contact with potential customers?” It is most likely that you will apply digital tools and online
marketing. In this case your lead generation will comprise the following elements: content, SEO,
promotion, conversion and analytics. Let’s briefly look into each of these.
4.7 Content strategy comes first. This will characterize the story behind your services, the
key messages you send to your target audience and, also, the tone of voice in which they will be
articulated. The content will be sent through all possible channels you decide for: website, landing
pages, emails, social media, blog post as well as Call to Action.
4.8 Website strategy. If your internet cafe can't be discovered on the web, then it doesn’t
exist. In other words to make your KTKcafe visible you need to have a website. Besides raising
the rating of your Internet cafe, a website is also an excellent informative tool that helps to attract
more clients from organic search. Generally, a website will build trust to your institution from
clients and partners. Thus, if one day you decide to grow by selling KTK cafe franchises, a website
will be a big plus.
4.9 Promotion strategy as a rule starts nowadays with Social Networks - Facebook, Twitter,
Instagram, YouTube, TikTok, Snap chat. Check the most relevant for your type of business. For
example, TikTok and Snap chat are the main channels for attracting teenagers, while adults are
bound to be found elsewhere. Some question here to help you with the decision are the following:
 Where can you gather most of your TA (target audience)?
 Which of those are most efficient with regard to available budget?
 Which Social Media fits the best to your content strategy and chosen tone of voice?
In case you identify several platforms which are relevant for your internet cafe business it’s then
worth trying to try all of them and see which ones work best in your field, region, market. Within
your promotion activity you also manage social posts and email communication.
4.4.1 Conversion strategy. Once you’ve got your leads it’s time to convert them into
prospects or customers. The method of communication you decide - be it a phone call, email or
personal message in social media. Within this stage you should look at the lead nurturing lifecycle
and devise a complex of measures to acquire, keep and grow your customers - e.g. outreach
programs, loyalty programs, organization of events, system of upselling, cross-selling etc.
4.4.2 Analytics strategy. The essential part of every strategy are the metrics and indicators
that help to measure and analyses the results of the steps having been taken. Principal performance
indicators are CTR, CPL, (Website) Rate of Conversion, Leads to qualified leads, Leads per
channel etc. All the necessary info regarding these and other indicators can be found in the
Internet, thus we shall not focus on them within this article.
What you need to keep in mind however, that analytics is an important task, which you better not
skip. Once you identify the cost of a lead from each channel, try to reduce it to a minimum without
loss in quality. Check the reports and regularly manage your advertising budget. After six months,
compare the figures, analyses the amount of money spent on acquired leads to the quality of these
leads.
Chapter Five
5.1 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 Addis Ababa. Therefore, considered three sources to
determine the hourly charge rate.. Internet access providers use different pricing schemes. Some
charge a monthly fee, while others charge an hourly fee. In addition, some providers use a strategy
with combination of both pricing schemes.
5.2 Sales Strategy

As a retail establishment, employs people to handle sales transactions. Computer literacy is a
requirement for 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. Commitment to friendly, helpful service is one of the key factors
that distinguishes from other Internet cafes.
5.3 Sales Forecast

Internet sales were estimated by calculating the total number of hours each terminal will be active
each day and then generating a conservative estimate as to how many hours will be purchased by
consumers. Cost of Sales: The cost of goods sold for coffee-related products was determined by
the "retail prof.
5.4 Exit Strategy

Project. Existing Cafes. Training Programmers. TDVRC Internet Café. Conclusions/ Explanatory
Notes. Team Members. EXECUTIVE SUMMARY: The KTK internet café proposal articulates a
compelling vision‚ that will enable ‚ the state capital to through the center‚ play a pivotal role in
assisting the government to define‚ develop and deliver its programmers and facilitate development
based on the new Information Communication Technology (ICT’s) strategy (ies) and so facilitate
BUS 456 Easy Does It (Group E) – Exit Strategy The financial health of Easy Does it is good‚ but it is
not great. We currently have an impeccable credit rating of an A+‚ which is great. Our earnings per share
could be much better; they currently stand at ETB 0.61. We hope to improve upon this at the end of Year
20. We also have a return on equity of 1.0%‚ which again‚ is not great. We also plan to improve this after
Year 20. Our net revenues were 248 million‚ but we only turned a net profit of .
Appendix Table: Sales Forecast
Sales
Forecas Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
t Unit
Coffee (based on average) 400 680 750 970 1,019 1,070 1,102 1,135 1,169 1,204 1,240 1,277
Sales
Specialty Drinks (based on average) 225 300 400 546 573 602 620 638 657 677 698 718
Email Memberships 300 320 425 695 729 766 804 844 886 931 977 1,026
Hourly Internet Fees 1,000 1,800 2,500 3,245 3,343 3,443 3,546 3,653 3,762 3,875 3,991 4,111
Baked Goods (based on average) 1,000 1,400 300 2,950 3,039 3,130 3,224 3,321 3,420 3,523 3,629 3,737
Total Unit Sales 2,925 4,500 4,375 8,406 8,703 9,010 9,296 9,591 9,895 10,210 10,535 10,870
Unit Prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Coffee (based on average) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Specialty Drinks (based on average) 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Email Memberships 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
Hourly Internet Fees 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50
Baked Goods (based on average) 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25
Sales
Coffee (based on average) 400 680 750 970 1,019 1,070 1,102 1,135 1,169 1,204 1,240 1,277
Specialty Drinks (based on average) 450 600 800 1,091 1,146 1,203 1,239 1,277 1,315 1,354 1,395 1,437
Email Memberships 3,000 3,200 4,250 6,946 7,293 7,658 8,041 8,443 8,865 9,308 9,773 10,262
Hourly Internet Fees 2,500 4,500 6,250 8,113 8,357 8,608 8,866 9,132 9,406 9,688 9,979 10,278
Baked Goods (based on average) 1,250 1,750 375 3,688 3,799 3,913 4,030 4,151 4,275 4,404 4,536 4,671
Total Sales 7,600 10,730 12,425 20,808 21,613 22,451 23,278 24,137 25,029 25,958 26,923 27,925
Direct Unit Costs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Coffee (based on average) 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25
Specialty Drinks (based on average) 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
Email Memberships 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50
Hourly Internet Fees 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63 0.63
Baked Goods (based on average) 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31 0.31
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Coffee (based on average) 100 170 188 243 255 267 275 284 292 301 310 319
Specialty Drinks (based on average) 113 150 200 273 287 301 310 319 329 339 349 359
Email Memberships 750 800 1,063 1,736 1,823 1,914 2,010 2,111 2,216 2,327 2,443 2,566
Hourly Internet Fees 625 1,125 1,563 2,028 2,089 2,152 2,216 2,283 2,351 2,422 2,495 2,569
Baked Goods (based on average) 310 434 93 915 942 970 999 1,030 1,060 1,092 1,125 1,158
Subtotal Direct Cost of Sales 1,898 2,679 3,106 5,195 5,396 5,605 5,811 6,026 6,249 6,481 6,722 6,972
Appendix Table: Personnel
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Owner 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Part Time 1 660 660 660 660 660 660 660 660 660 660 660 660
Part Time 2 660 660 660 660 660 660 660 660 660 660 660 660
Part Time 3 660 660 660 660 660 660 660 660 660 660 660 660
Part Time 4 660 660 660 660 660 660 660 660 660 660 660 660
Part Time 5 0 0 0 0 0 0 660 660 660 660 660 660

Part Time 6 660 660 660 660 660 660 660 660 660 660 660 660
Technician 1,500 1,500 1,500 1,500 1,500 1,500 1,650 1,815 1,997 2,196 2,416 2,657
Manager 0 0 0 0 0 0 0 0 $0 0 2,000 2,000
Total People 0 0 0 0 0 0 0 0 0 0 0 0
Total Payroll 6,800 6,800 6,800 6,800 6,800 6,800 7,610 7,775 7,957 8,156 10,376 10,617
Appendix Table: Profit and Loss
Pro Forma Profit and Loss

Sales 7,600 10,730 12,425 20,808 21,613 22,451 23,278 24,137 25,029 25,958 26,923 27,925
Direct Cost of Sales 1,898 2,679 3,106 5,195 5,396 5,605 5,811 6,026 6,249 6,481 6,722 6,972
Production Payroll 0 0 0 0 0 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0 0 0 0 0
Total Cost of Sales 1,898 2,679 3,106 5,195 5,396 5,605 5,811 6,026 6,249 6,481 6,722 6,972
Gross Margin 5,703 8,051 9,320 15,614 16,218 16,846 17,466 18,111 18,780 19,477 20,201 20,953
Gross Margin % 75.03% 75.03% 75.01% 75.04% 75.04% 75.03% 75.03% 75.03% 75.03% 75.03% 75.03% 75.03%
Expenses:
Payroll 6,800 6,800 6,800 6,800 6,800 6,800 7,610 7,775 7,957 8,156 10,376 10,617
Sales and Marketing and Other Expenses 4,000 4,000 3,250 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0
Utilities 10% 760 760 760 760 760 760 760 760 760 760 760 760
Insurance 500 500 500 500 500 500 500 500 500 500 500 500
Rent 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Payroll Taxes 15% 1,020 1,020 1,020 1,020 1,020 1,020 1,142 1,166 1,193 1,223 1,556 1,593
Other 0 0 0 0 0 0 0 0 0 0 0 0
Total Operating Expenses 15,080 15,080 14,330 13,580 13,580 13,580 14,512 14,701 14,910 15,140 17,692 17,970
Profit Before Interest and Taxes (9,378) (7,029) (5,011) 2,034 2,638 3,266 2,955 3,410 3,871 4,338 2,509 2,983
Interest Expense 265 252 239 226 213 217 204 191 178 165 152 137
Taxes Incurred (2,411) (1,820) (1,312) 452 606 762 688 805 923 1,043 589 712
Net Profit (7,232) (5,460) (3,937) 1,356 1,819 2,287 2,063 2,414 2,770 3,130 1,768 2,135
Net Profit/Sales -95.15% -50.89% -31.69% 6.52% 8.41% 10.19% 8.86% 10.00% 11.07% 12.06% 6.57% 7.65%
Include Negative Taxes
Appendix Table: General Assumptions
General Assumptions
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Calculated Totals
Payroll Expense 6,800 6,800 6,800 6,800 6,800 6,800 7,610 7,775 7,957 8,156 10,376 10,617
New Accounts Payable 14,038 16,057 15,892 20,170 18,778 19,118 20,154 20,638 21,149 21,692 24,050 24,657
Inventory Purchase 1,795 3,461 3,532 7,284 5,597 5,814 6,018 6,241 6,472 6,713 6,963 7,222
Appendix Table: Cash Flow
Pro Forma Cash Flow Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received
Cash from Operations:
Cash Sales 7,600 10,730 12,425 20,808 21,613 22,451 23,278 24,137 25,029 25,958 26,923 27,925
Cash from Receivables 0 0 0 0 0 0 0 0 0 0 0 0
Subtotal Cash from Operations 7,600 10,730 12,425 20,808 21,613 22,451 23,278 24,137 25,029 25,958 26,923 27,925
Additional Cash Received

Non Operating (Other) Income 0 0 0 0 0 0 0 0 0 0 0 0
Sales Tax, VAT, HST/GST0 0 0 0 0 0 0 0 0 0 0 0
Received
0.00%
New Current Borrowing 0 0 0 0 0 2,000 0 0 0 0 0 0
New Other Liabilities (interest-free) 0 0 0 0 0 0 0 0 0 0 0 0
New Long-term Liabilities 0 0 0 0 0 0 0 0 0 0 0 0
Sales of Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0
Sales of Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0
New Investment Received 0 0 0 0 0 0 0 0 0 0 0 0
Subtotal Cash Received 7,600 10,730 12,425 20,808 21,613 24,451 23,278 24,137 25,029 25,958 26,923 27,925
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations:
Cash Spending 691 915 897 1,372 1,218 1,255 1,267 1,300 1,333 1,368 1,346 1,383
Payment of Accounts Payable 8,027 14,105 16,051 16,034 20,123 18,790 20,053 20,353 20,857 21,389 24,238 24,339
Subtotal Spent on Operations 8,718 15,021 16,948 17,406 21,341 20,045 21,320 21,653 22,190 22,757 25,585 25,722
Additional Cash Spent

Non Operating (Other) Expense 0 0 0 0 0 0 0 0 0 0 0 0
Sales Tax, VAT, HST/GST Paid Out 0 0 0 0 0 0 0 0 0 0 0 0
Principal Repayment of Current Borrowing 750 750 750 750 750 750 750 750 750 750 750 1,040
Other Liabilities Principal Repayment 0 0 0 0 0 0 0 0 0 0 0 0
Long-term Liabilities Principal Repayment 800 800 800 800 800 800 800 800 800 800 800 800
Purchase Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 0
Purchase Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0
Dividends 0 0 0 0 0 0 0 0 0 0 0 0
Subtotal Cash Spent 10,268 16,571 18,498 18,956 22,891 21,595 22,870 23,203 23,740 24,307 27,135 27,562
Net Cash Flow (2,668) (5,841) (6,073) 1,852 (1,277) 2,856 408 934 1,289 1,651 (211) 364
Cash Balance 21,332 15,491 9,418 11,270 9,993 12,849 13,257 14,191 15,481 17,131 16,920 17,283
Appendix Table:
Balance Sheet
Pro Forma
Balance Sheet
Assets
Current Assets Starting Balances Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash 24,000 21,332 15,491 9,418 11,270 9,993 12,849 13,257 14,191 15,481 17,131 16,920 17,283
Inventory 2,000 1,898 2,679 3,106 5,195 5,396 5,605 5,811 6,026 6,249 6,481 6,722 6,972
Other Current 0 0 0 0 0 0 0 0 0 0 0 0 0
Assets
Total Current Assets 26,000 23,229 18,170 12,524 16,465 15,389 18,454 19,068 20,217 21,729 23,612 23,641 24,255
Long-term Assets
Long-term Assets 0 0 0 0 0 0 0 0 0 0 0 0 0
Accumulated 0 0 0 0 0 0 0 0 0 0 0 0 0
Depreciation
Total Long-term0 0 0 0 0 0 0 0 0 0 0 0 0
Assets
Total Assets 26,000 23,229 18,170 12,524 16,465 15,389 18,454 19,068 20,217 21,729 23,612 23,641 24,255
Liabilities and
Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Accounts Payable 0 6,011 7,962 7,802 11,938 10,593 10,921 11,022 11,307 11,599 11,902 11,714 12,033
Current Borrowing 9,290 8,540 7,790 7,040 6,290 5,540 6,790 6,040 5,290 4,540 3,790 3,040 2,000
Other Current 0 0 0 0 0 0 0 0 0 0 0 0 0
Liabilities
Subtotal Current 9,290 14,551 15,752 14,842 18,228 16,133 17,711 17,062 16,597 16,139 15,692 14,754 14,033
Liabilities
Long-term 24,000 23,200 22,400 21,600 20,800 20,000 19,200 18,400 17,600 16,800 16,000 15,200 14,400
Liabilities
Total Liabilities 33,290 37,751 38,152 36,442 39,028 36,133 36,911 35,462 34,197 32,939 31,692 29,954 28,433
Paid-in Capital 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000 55,000
Retained Earnings (62,290) (62,290) (62,290) (62,290) (62,290) (62,290) (62,290) (62,290) (62,290) (62,290) (62,290) (62,290) (62,290)
Earnings 0 (7,232) (12,692) (16,629) (15,273) (13,454) (11,167) (9,104) (6,690) (3,920) (790) 978 3,113
Total Capital (7,290) (14,522) (19,982) (23,919) (22,563) (20,744) (18,457) (16,394) (13,980) (11,210) (8,080) (6,312) (4,177)
Total Liabilities and26,000 23,229 18,170 12,524 16,465 15,389 18,454 19,068 20,217 21,729 23,612 23,641 24,255
Capital
Net Worth (7,290) (14,522) (19,982) (23,919) (22,563) (20,744) (18,457) (16,394) (13,980) (11,210) (8,080) (6,312) (4,177)
 Reference
 When I made this proposal, it was on our own initiative When we took the COC
exam, there was a question on level Three
 We took a sample from it COC exam
 On the other hand, we asked about the current state of the market
 www.google.com

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Department Of Computer Science

KTK Internet Café Business Plan proposal

1. Kidist Berhanu 0115/17

Instructor Name: - Bekele F

3.3.4 How does your internet cafe create those results..…………………………………………. 10

1.2 Internet cafe business overview

1.2 Keys to success

1.5 Pros & Cons of starting an Internet Cafe

1.8 Company Ownership

No Item Manu Quantity Unit price Total Price Spec

4 Webcam Pcs 10 250 2,500 Web Camera

7 Headphone Pcs 10 50 500

11 Table Pcs 1 2,000 2,000 Internet Café Standard

12 Chair Pcs 10 2,000 20,000 Internet Café Standard

13 Chair Pcs 1 5,000 5,000 Office Standard

14 Tracking Meter 17 100 1,700 38cm * 16cm

2.2 Software Needed

No Application & Os Quantity Total Price specifications Remark

1 Microsoft Window 1 Microsoft Server 2008 R2 Licensed

2 E-Mail Server 2008 R2 1 Microsoft Mail Exchange Licensed

3 Data Base Server 2008 1 Microsoft SQL Server 2008 Licensed

5 Web Server 2008 R2 Microsoft Web Server Licensed

2.3 Topology Type

Topology Advantage Disadvantage

2.4 Internet Connection type Need

2.5 Activity Planig

NO Task List Of Activates Performer Duration

Proximity to trendy, upscale restaurants.

communication and socialization for the potential customers

3.2 Service Description

Java Net email account. This account will be managed by Java

to laser and color printing.

3.3 What products and services KTKcafe business provides?

3.5 Additional products/services. Now time to brainstorm further. Make up a list of

3.7 Comparison to competitors

 It provides an easy, reliable, safe and affordable access to the Internet.

3.3.7 Internet cafe management software

 Does it make favorable

 What is the Sustainability Image

4.2 Market trends & needs

4.3 Internet cafe marketing plan and strategy

5.2 Sales Strategy

5.3 Sales Forecast

5.4 Exit Strategy

Appendix Table: Sales Forecast

Appendix Table: Personnel

Part Time 5 0 0 0 0 0 0 660 660 660 660 660 660

Appendix Table: Profit and Loss

Pro Forma Profit and Loss

Appendix Table: General Assumptions

Appendix Table: Cash Flow

Additional Cash Received

Additional Cash Spent

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Entrepreneurship & Small Business Group Assignment

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