Preview

Internet Cafe Business Plan

Good Essays
Open Document
Open Document
8083 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Internet Cafe Business Plan
Internet Cafe Business Plan

Executive Summary

JavaNet, unlike a typical cafe, will provide a unique forum for communication and entertainment through the medium of the Internet. JavaNet is the answer to an increasing demand. The public wants: (1) access to the methods of communication and volumes of information now available on the Internet, and (2) access at a cost they can afford and in such a way that they aren't socially, economically, or politically isolated. JavaNet's goal is to provide the community with a social, educational, entertaining, atmosphere for worldwide communication.
This business plan is prepared to obtain financing in the amount of $24,000. The supplemental financing is required to begin work on site preparation and modifications, equipment purchases, and to cover expenses in the first year of operations. Additional financing has already been secured in the form of: (1) $24,000 from the Oregon Economic Development Fund (2) $19,000 of personal savings from owner Cale Bruckner (3) $36,000 from three investors (4) and $9,290 in the form of short-term loans.
JavaNet will be incorporated as an LLC corporation. This will shield the owner Cale Bruckner, and the three outside investors, Luke Walsh, Doug Wilson, and John Underwood, from issues of personal liability and double taxation. The investors will be treated as shareholders and therefore will not be liable for more than their individual personal investment of $12,000 each.
The financing, in addition to the capital contributions from the owner, shareholders and the Oregon Economic Development Fund, will allow JavaNet to successfully open and maintain operations through year one. The large initial capital investment will allow JavaNet to provide its customers with a full featured Internet cafe. A unique, upscale, and innovative environment is required to provide the customers with an atmosphere that will spawn socialization. Successful operation in year one will provide JavaNet with a

You May Also Find These Documents Helpful

  • Good Essays

    PROJECT CHARTER WEEK 2

    • 1804 Words
    • 7 Pages

    To establish and secure a leading Coffee Shop including store made pastries and all varieties of coffee blends from around the Globe. Our company will be based out of NYC and will become a lifestyle to the neighboring streets in downtown. Java Supreme and its employees are determined to become a daily necessity for local coffee drinkers. It will be a place to socialize as you try to escape the daily stresses of activities during the day and just a comfortable place to converse with locals or friends. Java Supreme will capitalize on its locality to the downtown district near the Freedom Tower. Our culture will offer its customers the best prepared coffee in the area that will be complimented with store baked goods. Java Supreme will operate in a small environment of around 1200 square feet and within walking and commuting distance to work and local shops. The owners will be comprised of six graduating based college students that have business degrees. They will try and secure a location through a three -five-year lease with an option for extending and buying. They have also provided $150,000 of the required $200,000 start-up funds. The remaining capital will be obtained through local loans. Java Supreme is expected to grow sales revenue from $300,000 in FY2015 to $400,000 in year three. As our coffee house begins to strive to maintain a high level of service we also will be offering Wi-Fi for our customers at no charge. Java Supreme will make its best effort to create a unique place to socialize and revitalize the local community while enjoying coffees from around the world. We will become a leading business that people will remember that provides customer service, and products of consistently high quality. We at Java Supreme will invest its profits to increase the employee satisfaction while providing stable return to its owners.…

    • 1804 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    All indications show that this project is poised for success. In order to capitalize on this opportunity, the startup capital of $46,000 is needed at this present time. I am confident…

    • 1930 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    JJB is incorporated in the state of Washington. It is equally owned and managed by its two partners.…

    • 1979 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    In the first year alone we plan to spend at least six hindered thousand dollars for the general construction and startup of the business which will include building expenses, Operational expenses, initial inventory acquisition expenses, wages, utilities and state and federal…

    • 1225 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Augustine Medical Case

    • 2856 Words
    • 12 Pages

    • Initial capitalization of $500,000 that will be used to cover fixed costs such as: salaries, leased space, and promotional marketing during its first year of operation.…

    • 2856 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Tax Research Memo

    • 1179 Words
    • 5 Pages

    Paula Green, a U.S citizen and our client, is preparing to expand her business into landscaping field. Before the expansion, Paula already has already been operating the Green Thumb Nursery whose total assets with a $260,000 adjusted basis and a $500,000 FMV. To avoid the risk of paying unlimited debt, Paula plans to change business form from sole proprietorship into corporation. And Mary Brown, a U.S citizen and the other client, would like to invest $250,000 into this corporation.…

    • 1179 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Apex Investment Partners

    • 2487 Words
    • 10 Pages

    Apex Investment Partners was founded in 1987 by James A. Johnson and the First Analysis Corporation. In its eight-year life, the VC had raised three funds. The two first which are already closed had, together, a committed capital of around $70M. There were mainly concentrated in four areas: • • • • Telecommunication, information technology and software. Environmental and industrial productivity-related technologies. Consumer products and specialty retail. Health-care and related technologies.…

    • 2487 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Opening and starting virtually any business requires an individual to risk a substantial amount of capital. Although the first location was a success and gained regional notoriety, the couple would have to risk their own money to fund the venture. This particular investment includes financing the purchases of equipment, initial supplies, and furnishing the location. The…

    • 1809 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Since the 1950’s the café has been using very, very old equipment. That equipment includes: old cash registers, espresso makers, coffee makers, and so on. But the most important old method that was being used is the manual entry of time and attendance. Now since I have started upgrading the café, I feel that it is now time for a new time system. This particular time system will allow employees to key in a special employee number that will automatically stamp the time displayed on the clock. The same method will be used for clocking out for lunch and clocking out for good.…

    • 411 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Panera Bread Essay

    • 407 Words
    • 2 Pages

    Panera Bread would like to announce a new cyber-café available at all locations. This product has been upgraded to assist the growing desire for a full service Internet accessibility location. A plan consisting of four-phases has been developed to market the new product. Currently most locations provide free wireless Internet access to their customer base. Panera has the biggest free wireless network in the USA. During the peak hours of business the customers’ will have a limit amount of time to use the Internet; the time limit is 30-60 minutes (Absolute Astronomy, 2011). However with the upgrade the locations will not have to limit the number of computers or a time limit.…

    • 407 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Carribean Internet Cafe

    • 1249 Words
    • 5 Pages

    1. There are many issues that Mr. Grant should consider before proceeding with the CIC. There are several things that Mr. Grant should examine before even looking at the projections given to him. Total capital is $2,250,000, $1,000,000 in investments and $1,250,000 in the form of a long-term loan. $1,573,000 is immediately spent leaving $677,000. If he has no customers, he can afford to remain open for 3 months. As well, they are not attractive to individuals who seek to use the Internet for longer periods of time and the customer base that they are attempting to attract is the more affluent and educated of the population. They are also the most likely to either already own a computer or will be purchasing a computer in the near future. Mr. Grant must have a business plan that is either for the short-term or able to readily adapt to future circumstances as he expects private usage to increase in 3 years. Mr. Grant should also examine factors external to his business. These issues include his mention of the relatively low demand for coffee in Jamaica as well as changes in levels of private Internet usage. His management plan should include contingencies to replace coffee if it is not making a profit as well as plans for the computer area when future demands for Internet café’s start to decrease. A final issue that Mr. Grant should also examine is the terms of agreement for the long-term loan. If CIC is very profitable they may want to pay off the loan as quickly as possible instead of incurring unnecessary interest.…

    • 1249 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Securenet Inc

    • 1118 Words
    • 5 Pages

    SecureNet INC, a software enterprise that focuses on the e-commerce security, is trying to raise a first round of funding in October 2000. The company has been unsuccessful in attracting funding from venture capitalists, and raised a small round seeds from local investors in Virginia. In the following two month, SecureNet financed a $250,000 bridge loan from an Angel investor called Trio LLC. Trio has proposed to offer a $ 1.4 million a Series A funding of convertible preferred stock. Right now, Richard Goodson, the CEO of SecureNet must decide whether to accept the offer from Trio LLC, or come back to find other VC investors.…

    • 1118 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    On 9 August 1995, Netscape Communications Corporation went public with an IPO of 5 million…

    • 543 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    1. Why has Netscape been so successful to date? What appears to be its strategy? What must be accomplished if it is to be a highly successful going concern in the long run? How risky is its current competitive position? 2. Does Netscape need to go public to satisfy its capital needs? What would you estimate might be the magnitude of its capital needs over the next 3 to 5 years? What sources other than the public equity market could be tapped to satisfy those needs? 3. Why in general do companies go public? What are the advantages and disadvantages of public ownership? 4. The case points out that the IPO market is sometimes characterized as a “hot issue”’ market and that many IPOs are viewed in retrospect as having been “underpriced”. What might explain these phenomena? Should the Netscape board be concerned about underpricing? Why or why not? 5. Can the recommended offering price of $28 per share for Netscape’s stock be justified? In valuing Netscape you could use the following assumptions: (a) Total cost of revenues remains at 10.4% of total revenues; (b) R & D stays at 36.8% of total revenues; (c) Other operating expenses decline on a straight-line basis from 80.9% of revenues in 1995 to 20.9% of revenues in 2001 (this would give Netscape a ratio of operating income to revenues close to Microsoft’s, which is about 34%); (d) Capital expenditures decline from 45.8% of revenues in 1995 to 10.8% of revenues by 2001 (again close to Microsoft’s experience); (e) Depreciation is held constant at 5.5% of revenues; (f) Changes in Net Working Capital are essentially zero; (g) Long-term steady state growth of 4% annually after 2005 (which gives you the terminal value); (h) Assume that Netscape’s free-cash flows can be discounted at 12% (i) A long-term riskless interest rate of 6.71% (j) In the first few years after 1995, Netscape is projected to have a negative income (losses). These loses can be carried forward to reduce future…

    • 559 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Netscape IPO Case Study

    • 1349 Words
    • 5 Pages

    Netscape was founded in 1994 and it provided internet applications for communications and commerce. In 1995, Netscape decided to raise capital by initial public offering. Although initial price for shares was at first $14, underwriters suggested increase the price to $28 one day prior to the initial public offering. The board of Netscape was not sure of the high price and fell in dilemma because the firm didn’t have a long track record and IT industry was not easy to predict.…

    • 1349 Words
    • 5 Pages
    Good Essays

Related Topics