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INTERNATIONAL SCHOOL OF TECHNOLOGY SKILLS & DEVELOPMENT Alvendia St. Poblacion, floridablanca, Pampanga

.COMPUTER SHOP INTERNET CAFÉA Feasibility Study Presented to: INTERNATIONAL SCHOOL Of Technology & Skills development

FULLFILLMENT FOR THE COURSE COMPUTER BASED ON INFORMATION TECHNOLOGY

Christian V. Capulong Princess joy Santos Fatima C. Cuenco Arvin Lagman Bryan Perez

August 2014

Acknowledgement Gratefully acknowledgement to the following persons who in one or another helping us in mak in g this stud y a successfu l on e. They serv e as gu id e an d shared kno wledge that this project was made possible. To Mr. Ramon Raymundo our special project adviser who has been there to support us and for teaching how to prepare the financial statement and spending his time even though he’s busy. To our owner of GIARTH INTERNET CAFÉ MRS.GERLIE V. STAMARIA and MS. AIMEE A. DAVID her employee of t h i s s h o p for giving us the time and allowing us to conduct a s u r v e y i n t h e i r prospective area. To our dear family who have been always there supporting and being understanding in giving the time for us to spend this project. And above all to our Almighty God a million thanks for the strength, knowledge, good health, wisdom and the guidance that enlightened our hearts and minds that this study would be possible

HISTORY Internet café business is indeed a very popular business. It is one of the establishmentsmade indispensable in an increasingly interconnected world.Internet café was started with the opening of the first cyber café, Café Cyberia, in London(UK) September 1, 1994. It was founded by Eva Pas coe. It s tarted with half a dozen HP computers, connected to the Internet through dial-up modems that were able to transfer dataat 9.6 kilobytes per second. As the first Internet cafe, Cafe Cyberia got tremendous publicityand additional investments into the business from likes of Mick Jagger and Maurice Saatchi.With the success of Cafe Cyberia, the Internet Cafe business got into a flying start, and therewere over 60 similar cafes over the world by the summer of 1995.―CYBERKADAHAN INTERNET CAFE‖ is name of a proposed business plan; ―CYBER‖being related to computers and ―KADAHAN‖ meaning a group of individual or people who areclosely bonded.

Type of Business Organization Since the composed of five (5) ladies each one of has agreed and decided to be partners.The groups preferred to use partnership as a type of business organization.

Partnership – is an organization where two or more person binds themselves to contributemoney, property, or industry into a common fund with the intention of dividing profits amongthemselves. Benefits of partnership type of business we are establishing: 

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Partnership is relatively easy to establish; however times s h o u l d b e i n v e s t e d i n developing the partnership agreement, in our case there’s no problem about it becausewe are mostly friends and we are devoted to make our business progress. With more than one owner, the ability to raise funds- Debt vs. Equity maybe increased. Enhanced capital availability. Two or more people will be providing and searching for c a p i t a l . I n a d d i t i o n , f u n d i n g s o u r c e s a r e m o r e l i k e l y t o e n t e r t a i n f i n a n c i n g r e q u e s t because of the broader capital base.

The profit from the business flow directly to the business though the partners personaltax return. Higher quality employees. Partnerships tend to attract better employees because of thepossibility of becoming a principal in the firm. Easy form. Procedures and expenses are minimized. The business usually benefit from partners who have complementary skills. Better decision- making capability. Two heads are better than one. Managerial flexibility. Generally, important decisions can be quickly, although not as fastin a sole proprietorship. Limited government interference. Like sole proprietorship are normally free of extensivegovernmental scrutiny.Cyberkadahan Internet Café provides services that would give satisfaction to our customer.Aside from computer rental that have reasonable hourly r ates for internet gaming, internetsurfing or searching cd-burning, scanning, and colored printingProposed Location will be located at # 82 Samson Road Caloocan City, our prospectivecustomers are basically everybody—students doing their projects or research and gamers.This business starts with the capital of P 700,000.00 Seven Hundred Thousand Pesos contributed by each partner as follows:

NAME

AMOUNT CONTRIBUTED

Christian capulong Princess joy Santos Fatima Cuenco Arvin Lagman Brayan Perez

Php 233,333.33 Php 233,333.33 Php 233,333.33 Php233,333,33 Php233,333,33

TYPE OF PARTNERS Capitalist Industrial Capitalist Industrial Capitalist Industrial Trinidad Industrial Trinidad Industrial

Capitalist Partner – one who contributes capital in money or property Capitalist Industrial Partner – one who contributes in money, property, and industry. Industrial Partner – one who contributes industry, labor, skill or service.The objective of this proposed project is to acquire the prospective customers and to achieve the desired profit with in the specific period of time, and     

To earn profit. To develop one’s skill to build up good relationship among customer. To help the students especially the neighboring Barangays to find a computer’s rental ataffordable price. To give leisure and enjoyment. To be successful business partners

SITE PREPARATION The business will be renting a space along hi-way near to malls, and schools, were our target customers are mainly students and nearby neighborhood especially those people whoserelatives or loved ones are at abroad and find it very convenient communicating with themthrough chat and email. The two hundred (200) meter radius requirements as provided in theexisting Zoning Code and other applicable rules and regulations wherein computer shops andother similar establishments and places of amusements should be put up or constructed atleast two hundred (200) meters away from the church, schools, hospitals, and other government offices shall be strictly complied with. Site survey is primarily our main concern inthis preparation. On our site survey we find out that the site has less than 5 competitors andit’s a good sign of putting up the business.We choose the location, at #82 Samson Road at Caloocan City, beside Asian TrustBank. It’s about 40 square meters. It is the ideal place to establish an internet café because itis accessible to public because it’s along the highway and our target market is mostly students,near to schools like Divine Mercy College, Sacred Heart, St. Gabriel Academy and GomburzaElementary School. We choose this site because we found out that competitors are minimal inthe place. It’s an urbanized area were accessibility, competency and we study niche/market, asour main objective while choosing this site. In accessibility, the location is just along thehighway, and it’s near to malls such as Ever Grand Central, Victory Mall, Araneta Square, andPuregold, and schools such as Divine Mercy College, Sacred Heart and GomburzaElementary School and people just strolling along the way and or passengers of utility vehiclecan easily see the Internet Café. In competency and study of niche/market, the proposedlocation is a commercial place, so the prospective customer’s is almost everybody. Most of theInternet shop located in the area is inside the malls while the competitors outside is justminimal, and for that we are more capable of attracting customer’s because we will offer moreaffordable rental fee in 15 pesos per hour. Our Internet café will provide small private boothsfor quiet chatting compare to the standard elbow to elbow computer station.We agreed that the shop should be well ventilated (air condition) to make our customer comfortable, good music is well provided, the PC’s is all well organized and arrange properlyaccording to their rows for the convenience of our customer. Each computer has their owngames, internet and surfing to be chosen by our customer, what they want and need is mainlyour concerns

TECHNICAL ASPECT

In technical aspect it identifies whether the services rendered could be the highest possible quality level with minimum cost. In this aspect we will discuss the equipment andother computer application we use in the business. We purchase equipment as packages inorder to lessen our expense. Hardware and Software is our much focus aspects. We didresearching on how much the Hardware and software will cost us, through net surfing. Theinternet connection we used is Package plan of DSL Bayantel amounting P9,799.00 withcapacity for 20 computers and have a speed of 2 Mbps.In Hardware our target number of PC is 15 (monitor-flatscreen, keyboard, PS2 mouse andprocessor, webcam),The Internet connection is a package of Bayantel DSL connected(cables) with the speed of 2mbps amounting 9,799.00, 3 in 1Printer, Scanner & Photocopier. InSoftware, we will installing original Operating System of Ms Office Professional 2007 likes MSWord, Excel, Power point, Access, Desktop Publishing and installing the popular on line gamessuch World of warcraft , CounterStrike, Battle Realms, Dance Audition, Auto Jam, and we willbe installing Norton 360 version 3.0 premium for our anti-virus and antispyware. We offer other service to customers likes printing in black and white, DVD/CD burning, photocopying,scanners, and payphone

List of Hardware Brand name Package PC’s Pentium 4 Php . 19,500.00 3 in 1PSCp HP Officejet 2610 Print/Scan/CopyPhp. 14,500.00 Computer application software Amount OS MS Office 2007 Php. 19,200.00 Game software:Warcraft (dota) Php. 1,450.00 Counterstrikesn Php. 350.00 Battle Realms Php. 720.00 Dance Audition Php. 1,968.00 Autojam Php. 1,968.00 Anti-virus and anti spy ware Php. 10,800.00

Amount

MARKETING ASPECT In marketing aspect, promoting business will use different strategies and techniques toattract probable customers. And offer promo’s to attract customer like

 Computer to rent for cheap  40 for every 3 hours  Membership- (the customers will be given a card to be stamped

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every visit and if theygot 25 stamped there every 2 hours is 20% discounted) Contest for gamers (the winner will be free on their rental charge & to be held everySaturday from 3:00 to 5:00 pm only.)We create some marketing strategies like; we will print a thousands little half or quarter page fliers printed with the total cost of Php 908.00 (500 pcs. on the small fliers that cost of Php. 220.50 while the second fliers is also 500 pcs. with the cost of Php. 687.50), a monthbefore our opening and we will distribute the fliers, mailboxes or gate. If we get a lot of text ande-mail we know we already have a market.We will put tarpaulin on the place itself where our shop is standing, promoting the openingof our Internet café also one month before the opening. To let people know that there will benew Internet Shop on the vicinity. Tarpaulin size is 35” x 70”, the streamers amount is Php340.27, And another tarpaulin for the services with the size of 29” x 39” amounting of P157.08

Services It’s the factor that affect mostly ones business because through services customer willdecide if they are satisfied or not.

Price It is one of the considerations of the customer that enhance them to rent computers. If theprice is lower they will rent.Our services are the following: Amount Internet/ Games hour Printing black and white-

Php. 15.00 / Php. 3.00 (short)Php. 4.00 (long)

Colored (depends on the size of the color)

hp. 10.00 (minimum) ex. Logos

Photocopying

Php. 1.00 (short)Php. 1.25 (longos)

Scanning

Php. 10.00

CD Burnings Other services:Payphones

Php. 35.00 (max. 17 songs) Php. 5.00 / every 3 min

MANPOWER Manpower requirements are very important to any business in order for them to have anintelligent and accurate people who will manipulate inside the firm. Requirements will serve asbasis on personal and general background of an employee enable for the company to knowthe capacity of their skills and ability to do work to the assign for them.Business owner will be in charge in human resource. The personnel to man Internet cafewill be the industrial partner who works by shift, 8 hours a day, the first shift is from 7:00 am to3:00 pm while the second shift is from 2:00 pm to 10:00 pm. A walk in technician will be calledin case of computers malfunctions and he will visit the shop twice a month.Walking Technician P400.00/visit twice a monthESTIMATED ANNUAL COST FOR MANPOWERFor Walking Technician ----- P9, 600.00/year (800*12)Additional budget allocation for computer troubleshooting Php. 500 (500*12)(Just incase our technician is not available.)

MANAGER Mr.Christian V. Capulong Ms.Princess joy Santos ACCOUNTANT Ms. Fatima Cuenco CASHIER/COMPUTER ASSISTANT/I.T Experts Mr.Arvin Lagman Mr.Brayan Perez

OB FUNCTIONS POSITION FUNCTION MANAGER- Establishes store policies and procedure for strict implementation- Execute final decisions on all matters pertaining to the operationand the management functions of the business- Audit individual computers to check for proper system- Visit the shop alternate everyday ACCOUNTANT- Check the book of accounts and financial statement in daily basisHandles license renewals,facilities preparation and payment of annual tax generated by the business.- Visit the shop every other day. COMPUTER ASSISTANT /CASHIER- Accept payment- Maintains inventory of supplies in the shop- To assist customers in their needs- Maintain cleanliness and

orderliness.- Help conserve Utilities consumption- Logging the customers hours consumedI.T.- Incharge in computer maintenance * I.T. Expert- Provide information and/ or technical aspec OPERATION OF A BUSINESS Factors that we consider while putting up our own Internet café

 Location-Picking a good spot and we’ll hit us a gold mine.  Competition-Most business-minded people think of competition as a race

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to charge thelowest prices in order to win customers. While it’s good for the customers, exceedingthe lower boundaries can drive you and your competitors to bankruptcy. One cannotexpect to recover a Php500, 000 investments if hourly rentals go down to as low asPhp10. It goes without saying that in this industry, there are no customer loyalty; justcheaper rentals. Software Licensing-it’s really important to have an original operating system, becausepirated OS can eventually damage the system. Expected ROI- investing money in a business is a risk in our case the well tabulated if financial statement is our major concern.Café opens at 7:00 am until 10:00 pm. Ahead of other competitors, this will lead us of beingknown. Our goal is to give the needs of the students and others in an early manner of time. Itwill also include the completion all legal requirements before the operation of business. Inoperational procedure we keep in minds all the legal aspects of establishing a business suchas Business permit & the following requirements are: 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

BARANGAY CLEARANCE The proposal business will secure Barangay permit that is our responsibilities. It wouldmake the immediate community to be aware of the business that would give satisfaction andpromote community involvement.

REGISTRATION OF NAME WITH DTI

The proposed business should be registered with DTI to assure that any organization of individual for their business proposal for future use would not copy the name of our business. Itacquires 15 days period of processing before the name of the business registered certificatecan be issued by the said government agency.BUSINESS/MAYOR’S PERMITBusiness Permit must be applied with the licensing office at the Municipal Hall of thesaid locality. It would be based on the reported business entity to be put up; we securedbarangay clearance as a requirement for an application.Bureau of Internal RevenueThe proposed business should register with BIR and secured TIN (Tax IdentificationNumber) which will be used as simplifying the record control producers relating to taxation andsecuring VAT (Value Added Tax)MAYOR’S PERMITMayor’s permit must acquired before the operation of the businessSteps in processing permitsSTEP 11. Business Name Registration CertificateValidity: 5 yearsRequirements:  Accomplished Business Name Registration Form [Single Proprietorship/Partnership]  Tax Identification Number (TIN)  Registration fee of P 300.00STEP 2Mayor’s / Business PermitLocal Municipality where the business is locatedValidity: 1 year Requirements:  Accomplished Business Permit Application Form  DTI-Business Name Certificate  Sketch of he business location  Barangay Clearance  Lease ContractSTEP 3

 Bureau of Internal Revenue (BIR) National OfficeSTEP 4Securities and Exchange Commission (SEC) CertificateRequirements:  Verification Slip Form (re: proposed name)  Accomplished Registration Data Sheet

LEGAL REQUIREMENTS               

COSTBarangay Clearance ------ 150.00 Mayor’s Permit ------ 9,514.00Business Tax 1,400.00Mayor’s Permit 2,096.00Business Plate 350.00Refuse Fee 2,384.00Sanitary Permit 2,064.00Health Certificate 200.00Occupational Tax 200.00Inspection Fee 200.00Filing 100.00Processing 120.00Zoning 400.00BIR ------ 300.00 DTI ------ 500.00 Total ------ P 10,464.00

 The mayor’s permit computation was computed by Ms. Lorna Torres at

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Business Permits andLicensing Office, City of CaloocanSignage Permit5ftLength2ftWidth* According to Mr. Bong Reyes of Engineer’s Office of Caloocan City Hall signage permit is35.00 per square ft.Computation:10sq.ft. x 35.00 = 350.00AdditionalInspection fee 150.00Filing fee 50.00Total Cost Php550.00The amount of signage is Php.4,000.00The store will be open Monday through Sunday. Ahead from other Internet shop along thearea, the mall opens at 8:30 am; we always believe that the early bird catches the worm. Theplace is good for group, good for kids, attire- casual. Assumptions: Business Year will start at June 2009 Prepaid Rent is Php.10,000.00 monthly, Payment will first month of the business year. Payable must paid before the division of income Division of income will be at the end of business year Salaries for Other technician will be Php.500.00 per visit, estimated once a month air condition maintenance will for Php.450.00 every year Water expense is Php.117.50 minimum bill every month. Bill of telephone was included in DSL Cleaning Expense is Php.1,735.00 for the whole year Anti virus is package purchase that good for 5 computers amounting Php.3,600.00 each 2010 purchase another Norton Anti virus for the additional computer

 Padlock and other cleaning materials considered as expense at the end of the year  Membership card is good for 1 year  All lightings materials are included in lease of contract  Membership card, small tarpaulins & fliers will purchased twice a year