Chapter 1 Project Summary

Introduction
Computer shop business is one of the most in demand businesses here
in Bulacan. Nowadays, internet cafes are really in demand because of
the fast changing technology that the people embraced just like here in
the Philippines. Some have their own laptops and bring it to coffee
shops so that they could relax and at the same time prepare their
assignments and paper works. The people today are very busy and
would want to do their jobs in a beautiful and innovative environment
that could satisfy their needs and lessen their stress due to busy
schedule.

Name of the Firm

The proposed name of the firm is “AC COMPUTER SHOP”. The owner
will register the firm with the Department of Trade and Industry (DTI)
and Local Government Unit (LGU)concerned. The firm will be registered
as single proprietorship. The business is about computer shop.
Location
The business will be renting a space along Hi-way near to Government
Office, and schools. The target consumers are students, teachers,
office workers, and nearby neighborhood especially those people
whose relatives or loved ones are abroad. The two hundred (200)
meter radius requirements as provided in the existing zoning code and
other applicable rules and regulations wherein computer shops and
other similar establish mentsand places of amusements should be put
up or constructed at least two hundred (200) meters away from the
church, schools, hospitals and other government offices shall be strictly
complied with.
Long Range Objectives of the Project
The AC Computer Shop looks forward to be the most competitive shop
in Bocaue and nearby towns of Bulacan. The proponent dreams of
making profit and staying long in the business. For operating and
establishing “AC COMPUTER SHOP”, I am having some objectives.
1.To earn profit at less investments.
2.To satisfy our customers providing best quality service at effective
price.
3.Providing the service at low cost by providing the best quality at
affordable price.
4.To know a fair return on the capital invested by the owner.

Feasibility Criteria
The following are the most important criteria by which almost every
subject is being measured:
1.Raising Funds or Capital – this is the number one need of a business
man in putting up a business. Whether he will produce the money by
his own pocket or he will have a business loan in a bank.
2.Recognize profit from the business – the main reason of a person for
going into business is profit. People tend to enter into this kind
of business because of their expectation to earn money or have an
income.
3.It helps the economic growth of the area – this company will give a
job opportunity to the resident of bulacan.
4.Enhance the availability of the company – the company will become
stable if it has the ability to compete to his competitor and ability to
continue operations yet there is expected risks in a business.
Market Strategies
To penetrate the target market, different marketing strategies
and promotions will be considered. Leaflets will be distributed and
handed out to various business establishments, offices, schools, bus
and jeepney stations, friends, and relatives. Games and services offered
will be displayed on the store window. I will offer promo’s to attract the
consumer like cheaper rate for computer rental, and membership
card. I will put a tarpaulin on the place itself where my shop is standing,
promoting the opening of my computer shop also one month before
the opening. To let the people know that there will be a new Computer
Shop on the vicinity. Lastly, I will keep developing my skills by attending
seminars to improve my knowledge and to be updated in this business.
Chapter 2Market Study
As the popularity of the Internet continues to grow at an exponential
rate, easy and affordable access is quickly becoming a necessity of life.
“AC Computer Shop” provides communities with the ability to access
the Internet and share Internet experiences in a comfortable
environment. People of all ages and backgrounds will come to enjoy the
unique, up to date, and innovative environment that “AC Computer
Shop” provides.
Service Description
AC Computer Shop 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 AC Computer Shop are
listed below:
•Surf the web at warp speed!
•Chat online using Instant Messenger, Yahoo, IRC or Pal Talk.
•Have a video conference with a business associate, family member or
friend.
•Experience hot Internet games like World of Warcraft, Warcraft III,
Counter-Strike, Battle Realms and Dance Audition and auto jam (3Mbps
downstream and upstream) without rageous ping times.
•Hook up your laptop to our Internet connection via Ethernet cable.
You can even send a print job from your laptop to our network color
laser printer.
•Rent AC Computer Shop for your late-night or all-night gaming party.
•Send and receive email using your home or business account, or
set up a free email account using Yahoo, Hotmail or any other web-
based service.
•Create your own greeting cards, flyers, school reports or presentations
using Print Shop, Microsoft PowerPoint or Microsoft Publisher and print
them in color.
•Download shareware programs in the blink of an eye and copy them
to a CD or Zip Disk.
•Scan a picture using one of our self-service photo scanners and
send via email.
•Plan your next vacation or print out driving directions.
•Listen to music clips and watch videos from your favorite performers
with iTunes, Yahoo Music or Real Video/RealAudio.
•Type resumes, letters and term papers with Microsoft Word.
•Send and receive faxes on AC Computer Shop’s color fax machine.
•Find that dream job using CareerBuilder or Monster Jobs.
•Check out continuously updated news, sports highlights, weather, and
stock quotes.
•Enjoy quiet online board games from Yahoo. You can even join a
Yahoo league!
•AC Computer Shop will also accept computer repair. You'll appreciate
surfing and gaming at AC Computer Shop. It has super-fast Internet
connection; you'll be visiting all your favorite sites in record time. Multi-
player gaming is quicker and more exciting when you and your friends
are able to do battle with no lag and plenty of bonding for everyone.
My friendly staff is ready to help with your computer needs.
Guidelines of Business
•All malicious sites are blocked.
•We’re not allowing inserting flash drive or any storage device without
the consent of the shop staff.
•Eating and drinking in the gaming and typing area is not allowed, they
are only allow to eat and drink in the waiting area.
•One person for one unit to maintain orderliness.
Ambiance
• Not too dark and bright because we want the shop more encouraging
to work and play.
•Our computer tables have a board between users for privacy
purposes.
•All furniture are fully furnished and labor included.
Price Study
It is one of the considerations of the customer that enhance them
to rent computers. If the price is lower they will rent. The following
services are:
Amount
Internet/Games Php. 15.00 / hour
Printing black& white (short) 4.00
(Long) 5.00
Colored (logo size) 8.00
Photocopying (short) 0.75
(Long) 1.00
Scanning 10.00
CD burning (max. of 17 songs) 35.00
Other services:
Pay phone (for every 3 min.) 5.00
Computer Repair (labor) 250.00

Factors Affecting the Market

Factors that I consider while putting up my own Computer Shop:
•Location – picking a good spot is an advantage for me.
•Competition – most business – minded people think of competition as
a race to charge the lower prices in order to win the customers.
•Software Licensing – it’s really important to have an original
operating system, because pirated OS can eventually damage the
system.
•Expected ROI – investing money in a business is a risk in my case
the well tabulated if financial statement is my major concern.
Internet Connection
The major cost of a computer shop is the internet connection. For
providing better service, the proposed project will use a high band
width connection for better speed as the project is going on to
provide service of video chat. It is recommended that the internet
connection should be taken from the best internet service provider.
Recommended Connection
If the project is set up in area, where DSL Internet connection is
available, it is recommended to use DSL Internet connection instead of
any other Internet connection. This will improve the speed of internet,
which will improve the performance of video chat and will also reduce
the telephone expense.
Marketing Program
AC Computer Shop has three main strategies. The first strategy focuses
on attracting novice Internet users, by providing a novice friendly
environment, AC Computer Shop hopes to educate and train a loyal
customer base. The second, and most important, strategy focuses on
pulling in power Internet users. Power Internet users are extremely
familiar with the Internet and its offerings. This group of customers
serves an important function at AC Computer Shop. Power users have
knowledge and web-browsing experience that novice Internet users
find attractive and exciting. The third strategy focuses on building a
social environment for AC Computer Shop 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 AC Computer Shop, these customers that came for
the more standard entertainment offerings will realize the potential
entertainment value the Internet can provide.

Attract Power Internet Users

AC Computer Shop’s second strategy will be focused on attracting
power Internet users. Power Internet users provide an important
function. AC Computer Shop plans on attracting this type of customer
by:
•Providing the latest in computing technology.
•Providing scanning and printing services.
•Providing access to powerful software applications
The large student and nearby neighborhood population will become an
important part of the AC Computer Shop customer base. The student
population continues to grow with the success of the educational
institutes. Access to the internet, entertainment, and the upscale
ambiance will attract the students. Business community is growing
rapidly with the addition of new companies day by day.AC Computer
Shop will provide an opportunity to local and traveling professionals to
check their e-mails communications; this will be an attracting entity for
the middle income group and for the residents of Bocaue as they do
not have access to the internet at their living places.

Market Growth
The market for the services AC Computer Shop will offer is growing
rapidly. The computer shop hasn't come to this area yet, but similar
services are growing rapidly on a globalscale. Large cities that cater to
large numbers of traveling business people have been saturatedwith
businesses offering the services AC Computer Shop will offer. Business
people use theInternet services to catch up on email and
communications with their family. My area supports a population that
has many of the same needs and interests of this larger group.
The student population continues to grow as the University grows in
popularity with high-school graduatesfrom out of state. These students
tend to have money and an interest in up-scale social centers.AC
Computer Shop will target these groups with the use of fliers and
tarpaulin.

SWOT Analysis
The SWOT analysis provides us with an opportunity to examine the
internal strength sand weaknesses AC Computer Shop must address. It
also allows us to examine the opportunities presented to AC Computer
Shop as well as potential threats. AC Computer Shop has a useful
inventory of strengths that will help it succeed. These strengths
include: a knowledgeable and friendly staff, modern computer hardware,
and a clear vision of the market need. Strengths are valuable, but it is
also important to realize the weaknesses AC Computer Shop must
address. These weaknesses include: a dependence on quickly changing
technology and the cost factor associated with keeping modern
computer hardware. AC Computer Shop’s strengths will help it
capitalize on rising 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 AC Computer Shop should be aware of include, the rapidly
falling cost of Internet access, and rising local competitors.
Strengths
1.Knowledgeable and friendly staff – I’ve gone to great lengths at AC
Computer Shop to find people with a passion for teaching and sharing
their Internet experiences. My staff is both knowledgeable and eager to
please.
2.Modern equipment – Part of the AC Computer Shop experience
includes access to modern computer equipment. My customers enjoy
beautiful and convenient units’ displays, fast machines, and high-quality
printers.
3.Up-scale ambiance – When you walk into AC Computer Shop or even
sit at my waiting area, you'll feel the technology. Great sound
background, nice lighting that sets the mood and the whole area was
clean.
4.Clear the vision of the market need –
AC Computer Shop knows what it takes to build an upscale computer
shop. I and my staff know the customers, the technology, and how
to build the service that will bring the two together.
Weaknesses
1. A dependence on quickly changing technology – AC Computer
Shop 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.AC
Computer Shop needs to keep up with the technology because a
lot of the AC Computer Shop experience is technology.
2. Cost factor associated with keeping state-of-the-art hardware
– Keeping up with the technology of the Internet is an expensive
undertaking. AC Computer Shop 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
1.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 AC Computer
Shop offers.
2.Social bonds fostered by the new Internet communities – The
Internet is bringing people from across the world together unlike any
other communication medium. AC Computer Shop will capitalize on this
social trend by providing a place for smaller and local Internet
communities to meet in person. AC Computer Shop will grow some of
these communities on its own by establishing chat area sand
community programs. These programs will be designed to build
customer loyalty
Threats
1.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. AC Computer Shop is aware of this threat and will closely
monitor pricing.
2.Rising local competitors – Currently, AC Computer Shop is enjoying a
first-mover advantage in the local computer shop market. However,
additional competitors are on the horizon, and I need to be prepared
for their entry into the market. Many of my programs will be designed
to build customer loyalty, and it is my hope that my quality service and
up-scale ambiance won’t be easily duplicated.
Market Needs
As the popularity of internet continues to grow at an exponential rate,
easy and affordable access is quickly becoming a necessity of life. Public
wants 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 are not socially, economically, and
politically isolated.
Market Trends
More than ninety percent of my customers are youngsters and their
only objective to get to these is to get enjoyment.
Marketing Strategies
I create some advertising strategies like I will print a thousand of fliers
printed with the total cost of Php. 908.00 (500 pieces on small fliers
that cost Php. 220.50, while the second fliers are also 500 pieces with
the cost of Php. 687.50), a month before the opening me and my
staff will distribute the fliers. I will also put tarpaulin on the place itself
where my shop is standing a month before the opening. It will promote
the services offered and also the opening of my Computer Shop. To let
the people know that there will be a new Computer Shop on
the vicinity. The tarpaulin size is 64” x 100”and amounting Php. 497.75.
Management Strategies
Maintain a focus on quality products with bottom-line growth
through cost reduction and optimal performance. I also focus on
technology and innovation to make sure our employees skills are up to
standard with today’s mode of production.
Demand
Demand in Internet Services for the last five years:
As you can see there is 8.08 percent of demand in internet service in
year 2004 and increase of 6.6 percent on the next year. In 2006 there is
17.28 percent of demand in internet service and increase of 6.14
percent in year 2007 and in the year 2008 there’s a demand of
36.54 percent in internet services. I will use the “Arithmetic Straight
Line” method in projecting the demand for the next five years.
Yc = a + Yi - 1 Yc = initial
Value Yn = final value
Yi – 1 = value for past years
where: a = Yn – Yc
N-1
Computation:
a = 175,110 – 38,720 = 34,098
5-1
2009= 34,098 + 175,110 =Php. 209,208.00
2010 =34,098 + 209,208 =Php. 243,306.00
2011 =34,098 + 243,360 =Php. 277,404.00
2012 =34,098 + 277,404 =Php. 311,502.00
2013 =34,098 + 311,502 =Php.
345,600.00
Projected Demand for five
years:
Table 1.2
Year Quantity Demand
(in peso)
2009 209,208
2010 243,306
2011 277,404
2012 311,502
2013 345,600

Supply
Supply in the Internet Services for the last five years:
As you can see there is 8.21 percent of supply in internet service in year
2004 and increase of 5.47 percent on the next year. In 2006 there is
16.09 percent of supply in internet service and increase of 5.05 percent
in year 2007 and in the year 2008 there’s a supply of 41.87 percent in
internet services. I will use the “Arithmetic Straight Line” method in
projecting the supply for the next five years.
Yc = a + Yi - 1 Yc = initial
Value Yn = final value
 Yi – 1 = value for past years
where: a = Yn – Yc
N-1
Computation:
a = 107,770 – 21,120 = 21,663
5-1

2009= 21,663 + 107,770=Php. 129,433.00

2010 =21,663 +129,433 =Php. 151,096.00
2011 =21,663 + 151,096=Php. 172,759.00
2012 =21,663 + 172,759=Php. 194,422.00
2013 =21,663 + 194,422=Php. 216,085.00
Demand and Supply Analysis
The table and figure below will show the projected demand and supply
of AC Computer Shop for the next five years in percentage.
The figure 3 shows the projected demand and supply of AC Computer
Shop for the next five years. In year 2009 there is a 15.08% of demand
on internet services, that’s why AC Computer Shop needs a 14.98% to
supply the demand. In 2010 there is 17.54% in demand and 17.49% in
supply, while in 2011 it has a 20% both in demand and in supply. And in
2012 there is 22.46% in demand and 22.51% in supply. For the fifth year
2013 it has a 24.92% in demand and 25.02% of supply. In totality, every
year AC Computer Shop will increase of 2.46% in demand and 2.51%in
supply.

Chapter 3Technical Feasibility

In this chapter, I will discuss the product, the manufacturing process of
my business including the plant size and production schedule. I will also
discuss the machinery and equipment and also the other computer
application that I will use in the business.

In order for me to lessen my expenses, I purchase equipment in

packages. I focus much in the hardware and software. I research on
how much the hardware and software will cost me, through net surfing.
The Services
The following services of AC Computer Shop are listed below:
•Gaming
•Typing
•Searching the net
•Printing/ Photocopying/Fax/Scanning
•Down loads
•Cd – burning
•Computer Repair For gaming I will install popular online games like
Warcraft, Counter strike, Battle Realms, Dance Audition, and Auto jam.
In typing I will install original Operating System of MSOffice Professional
2007 like MS Word, Excel, Power point, Access, Desktop Publishing. I
will have printer, Scanner, Photocopier, and Fax Machine for the
Printing, Photo copying, and faxing.AC Computer Shop will also offer
other services like DVD/CD burning, Pay phone, and Computer Repair.

Manufacturing Process
The “AC Computer Shop” will provide the product and services to the
customers, andthen the customer will give income or profit to AC
Computer Shop in return. The income or profit that the customer gave
in return will used to provide the product and services.
Plant Size and Production Schedule
The “AC Computer Shop” will operate seven days a week. AC Computer
Shop opens at8:00 am ahead to the other competitors. This will lead
my shop of being known. My goal is togive the needs of the students
and others in early manner of time.

AC Computer Shop’s Time Schedule

Opening Closing Operating Hours
Monday 8:00 AM 11:00 PM 15
Tuesday 8:00 AM 11:00 PM 15
Wednesday 8:00 AM 11:00 PM 15
Thursday 8:00 AM 11:00 PM 15
Friday 8:00 AM 11:00 PM 15
Saturday 8:00 AM 11:00 PM 15
Sunday 8:00 AM 11:00 PM 15

Total Operating Hours per week: 105

Machinery and Equipment

The proposed project is going to be of 10 units of computer systems
and the details of the equipment required for the project is given
below:
Furniture and Fixtures
The project is based on Pentium-4 computer systems. Second hand systems are also available in the
market at much lower prices. The reason for using the latest system is the new software coming in the
market that requires more powerful systems which will provide better service to the customer. The
price of computer systems varies with the introduction of new technology in the market.

Description Quantity Unit Price Total Price

Computer Cabinet 10 250 Php. 2,500.00
Table for waiting area 1 400 400.00
Air Conditioner 1 6,500 6,500.00
Mono block chair 10 230.5 2,305.00
office chair for server 1 745.75 745.75
Cabinet for the supplies 1 950 950.00
 Pad Lock 2 750 1,500.00

Total Furniture andFixtures CostPhp. 14,900.75

Plant Location

Plant Layout
“AC Computer Shop”
Building and Facilities
Description Amount
Rent ( 2,500*12) Php. 30000.00
Construction of the Shop 3,000.00
Total Building and facility Cost Php. 33,000.00
Raw Materials and Supplies
The material needed for the operation of the business:
Description Price
Bond Paper Php 150.00 (500pcs./rim)
CD w/ Case 13.00 /set
Ball pen 48.00 /box (12pcs)
Stapler 100.00
Staple wire 30.00
HP 96 Black Ink 800.00
HP 97 Tri-Color 850.00
Record Book 25.00
Fire Extinguisher 10 lbs. 3,950.00
Total Raw Materials and Supplies Cost: Php 5,966.00

Utilities
Description Monthly Cost Total Amount (year)
Electricity Php. 5,000.00 Php. 60,000.00
Water 117.50 1,410.00
Total Utility Cost: Php. 61,410.00

Waste Disposal
AC Computer Shop can manage the waste disposal properly, because
every Monday, Wednesday, Friday and Sunday is the schedule in
collecting all the garbage in barangay Poblacion, Bocaue.

Cleaning Materials Price

Broom & Dust Pan Php. 105.00
replace every 5 months
Trash Can 100.00
Feather Dust 60.00
2pcs. Good for 3 months
Mop 250.00 replace every 5 months
Powder Soap 60.00 6pcs. Good for 2 mon
ths
Air Freshener 175.00 replace every 2 mont
hs
Total Waste Disposal Cost: Php. 750.00
Legal 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 Permit

Legal Requirements Cost

Barangay Clearance Php 150.00
Mayor’s Permit 4,000.00
Business Tax 950.00
Business Plate 100.00
Sanitary Permit 250.00
Occupational Tax 400.00
Inspection Fee 500.00
Filing 100.00
Processing 120.00
Zoning350.00
Electrical Inspection 250.00
Fire Inspection 350.00
BIR 300.00
DTI 5,750.00
Total Legal Requirement Cost: Php 13,570.00

Production Cost
The details of production cost for the project are given below:

Labor Requirements
Estimated Annual Cost for Salaries and Wages

Description Monthly Salary

Annual Salary
Manager Php. 8,000.00 Php. 96,00
0.00
Employee 4,500.00 54,000.00
Total Salaries and Wages Cost: Php.
150,000.00
* Additional fee to my employee for computer repair (labor) Php 250.0
0
Requirement on Hiring an Applicant
Applicant must be 20 years old, residence of Bocaue …
•Resume
•Two valid I.D.
•Birth Certificate (NSO)
• N.B.I Clearance
•SSS number
•Vocational Graduate (computer technician)
•Hardworking

Source: https://www.scribd.com/doc/20944696/AC-Computer-Shop-
feasibility-studies