Valpo Internet Cafe

1
Valpo Internet Cafe

• Presented by
• Nasser Albahri
• Xianohui Chu (Judy)
• Takayoshi Okamoto

2
Business Plan for VIC

• As the popularity of the Internet continues to
  grow, easy and affordable access is quickly
  becoming a necessity of life. Valpo Internet Cafe
  provides the community with the ability to access
  the Internet, enjoy a cup of coffee, and share
  Internet experiences in a comfortable
  environment. People of all ages and backgrounds
  will come to enjoy the unique, educational, and
  innovative environment that Valpo Internet Cafe
  provides.

3
VIC Objectives

• Innovative environment
• Education
• Bring people together
• Good coffee and bakery
• Affordable Internet access

4
Company Summary

• Company Ownership
• Company Location
• Services
• Competitive Comparison
• Fulfilment
• Start up Summary

5
Company Summary
6
Market Analysis

• Market Segmentation
• Two Main Groups
• Familiar and not familiar with the Internet
• Details Groups
• Students, Office workers, etc.

7
Market Analysis

• Market research
• - Survey conducted in 2004
• Business Participants
• - Wholesalers and retailers of coffee in
  Valparaiso Area
• - Other Internet providers

8
Strategy and Implementation

• Three main strategies
• - Beginner Internet users
• - Power Internet users
• - Building strong social environment
• Competitive Edge
• Marketing Strategy

9
Strategy and Implementation

• Sales Strategy
• Management
• - Simple organizational structure
• Personal Plan
• - Six employees
• - One technician
• - Two Private Investors

10
Strategy and Implementation
11
Financial Plan

• Sales, Cost of goods sold, Fixture costs,
  Salaries expense, Payroll expense, Rent expense,
  Utilities expense, Marketing expense, Insurance
  expense, Legal and consulting fees, Taxes and
  etc.

12
Loan Proposal

• Business description
• Projections
• Purpose of the loan
• Amount
• Repayment plans

13
Projections

• Cash Flow Statements
• Balance Sheet
• U.S. Individual Income Tax Return
• Fifth Third Bank Commercial Loan Application

14
Projected Cash Flow Statement

• Net Cash received
• Net Cash spent

15
Net Cash Received
16
Net Cash Spent
17
(No Transcript)
18
Projected Balance Sheet

• Assets
• Liabilities and Capital

19
Assets
20
Liabilities and Capital
21
U.S. Individual Income Tax Return
22
Fifth Third Bank Commercial Loan Application
23
Purpose of the loan

• Another 10 Computers
• Marketing campaign
• Ads on the local paper
• Coupon for a free hour
• Three free hours for beginners who sign up for an
  introduction to the Internet workshop

24
Amount

• Total Start-up Capital
  100,000
• The Capital We have now 80,000
• The Loan Amount from the 5/3 Bank
  20,000

25
Repayment Plans

• The Loan Amount 20,000
• Repayment per month 1,000
• The time for us to repay 20 months

26
Mark Recommendation?

• NO recommendation for the main strategy of the
  company
• Contact other businesses that already started an
  Internet Café in different areas
• Deal with the local bank for final approval since
  the loan is less than 150,000?

27
Conclusion

• Questions?
• Suggestions?
• Comments?
• Smart remark?!