Internet Café Business Plan

Business Plans Handbook, Volume 5 (1998)

EXECUTIVE SUMMARY COMPANY SUMMARY SERVICES MARKET ANALYSIS SUMMARY STRATEGY AND IMPLEMENTATION SUMMARY MANAGEMENT SUMMARY FINANCIAL PLAN The creation of a unique, upscale, innovative environment that will differentiate Wired Bean from local coffee houses. Educating the community on what the Internet has to offer. The formation of an environment that will bring people with diverse interests and backgrounds together in a common forum. Good coffee and bakery items at a reasonable price. Affordable access to the resources of the Internet and other on-line services. The creation of a unique, innovative, upscale atmosphere that will differentiate Wired Bean from other local coffee shops and future Internet cafes. The establishment of Wired Bean as a community hub for socialization and entertainment. The creation of an environment that won't intimidate the novice user. Wired Bean will position itself as an educational resource for individuals wishing to learn about the benefits the Internet has to offer. Great coffee and bakery items. Will there be a demand for the services offered by Wired Bean in Salem? Will the popularity of the Internet continue to grow, or is the Internet a fad? Will individuals be willing to pay for the service Wired Bean offers? Will the cost of accessing the Internet from home drop so significantly that there will not be a market for Internet Cafes such as Wired Bean?

Legal $500 Stationery etc. $500 Brochures $500 4-Group Automatic $10,700 Bean Grinder $795 Consultants $2,000 Insurance $700 Rent $1,445 Computer Systems(x11) print $24,310 Communication Lines Setup $840 Fixtures $20,000 Other $0 Total Start-up Expense $62,290 Start-up Assets Needed   Cash requirements $24,000 Start-up inventory $2,000 Other Short-term Assets $0 Total Short-term Assets $26,000 Long-term Assets   Capital Assets $0 Total Assets $26,000 Total Startup Requirements: $88,290 Left to finance: $0

Oregon Economic Development Council $24,000 Peter Jones $13,000 Investor2 $6,000 Investor3 $6,000 Investor4 $6,000 Other $0 Total investment $55,000 Short-term borrowing   Unpaid expenses $0 Short-term loans $9,290

Interest-free short-term loans $0 Subtotal Short-term Borrowing $9,290 Long-term Borrowing $24,000 Total Borrowing $33,290 Loss at start-up ($62,290) Total Equity ($7,290) Total Debt and Equity $26,000 Checkline $0 Proximity to the downtown business community. Proximity to trendy, upscale restaurants such as Hamilton Bistro. Proximity to LTD's Salem Station. Parking availability. Low cost rent -85c per square foot for 1700 square feet. High visibility.

Potential Customers Customers Growth rate Internet Familiar 25,000 4% Internet Unfamiliar 50,000 3% Other 0 0% Total 75,000 3.50% Thirty five subjects said they would be willing to pay for access to the internet. Five dollars an hour was the most popular hourly internet fee. Twenty four subjects use the internet to communicate with others on a regular basis.

Job title 1996 1997 1998 Owner $24,000 $36,000 $48,000 Part Time 1 $7,920 $8,158 $8,402 Part Time 2 $7,920 $8,158 $8,402 Part Time 3 $7,920 $8,158 $8,402 Part Time 4 $7,920 $8,158 $8,402 Part Time 5 $7,920 $8,158 $8,402 Part Time 6 $7,920 $8,158 $8,402 Technician $15,360 $15,821 $16,295 Other $0 $0 $0 Subtotal $86,880 $100,766 $114,709

Appendix: Personnel Plan Personnel Plan Job title Jan-96 Feb-96 Mar-96 Apr-96 May-96 Jun-96 Owner $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 Part Time 1 $660 $660 $660 $660 $660 $660 Part Time 2 $660 $660 $660 $660 $660 $660 Part Time 3 $660 $660 $660 $660 $660 $660 Part Time 4 $660 $660 $660 $660 $660 $660 Part Time 5 $660 $660 $660 $660 $660 $660 Part Time 6 $660 $660 $660 $660 $660 $660 Technician $1,280 $1,280 $1,280 $1,280 $1,280 $1,280 Other $0 $0 $0 $0 $0 $0 Subtotal $7,240 $7,240 $7,240 $7,240 $7,240 $7,240

Jul-96 Aug-96 Sep-96 Oct-96 Nov-96 Dec-96 1996 1997 1998 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $24,000 $36,000 $48,000 $660 $660 $660 $660 $660 $660 $7,920 $8,158 $8,402 $660 $660 $660 $660 $660 $660 $7,920 $8,158 $8,402 $660 $660 $660 $660 $660 $660 $7,920 $8,158 $8,402 $660 $660 $660 $660 $660 $660 $7,920 $8,158 $8,402 $660 $660 $660 $660 $660 $660 $7,920 $8,158 $8,402 $660 $660 $660 $660 $660 $660 $7,920 $8,158 $8,402 $1,280 $1,280 $1,280 $1,280 $1,280 $1,280 $15,360 $15,821 $16,295 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,240 $7,240 $7,240 $7,240 $7,240 $7,240 $86,880 $100,766 $114,709