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 establishments
and 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 2
Market 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 autojam (3Mbps downstream and upstream) with
outrageous 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 RealVideo/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 global
scale. Large cities that cater to large numbers of traveling business people have been saturated
with businesses offering the services AC Computer Shop will offer. Business people use the
Internet 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 graduates
from 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 strengths
and 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 areas
and 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:

Table 1.1
Quantity Demand
Year
(in peso)
2004 38,720
Figure 1.1
2005 70,400
2006 82,800
2007 112,250
2008 175,110

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 2012 = 34,098 + 277,404 = Php. 311,502.00
2010 = 34,098 + 209,208 = Php. 243,306.00 2013 = 34,098 + 311,502 = Php. 345,600.00
2011 = 34,098 + 243,360 = Php. 277,404.00

Projected Demand for five years:

Table 1.2 Figure 1.2

Quantity Demand
Year
(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:

Table 2.1 Figure 2.1

Quantity Supply
Year
(in peso)
2004 21,120
2005 35,200
2006 41,400
2007 51,800
2008 107,770

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 2012 = 21,663 + 172,759= Php. 194,422.00
2010 = 21,663 +129,433 = Php. 151,096.00 2013 = 21,663 + 194,422= Php. 216,085.00
2011 = 21,663 + 151,096= Php. 172,759.00
Projected Supply for five years:

Table 2.2 Figure 2.2

Quantity
Year Supplied (in
peso)
2009 129,433
2010 151,096
2011 172,759
2012 194,422
2013 216,085

Demand and Supply Analysis

The table and figure below will shows the projected demand and supply of AC Computer
Shop for the next five years in percentage.

Table 3
Percentage of Percentage of
Year Quantity Quantity
Demand Supplied
2009 15.08 14.98
2010 17.54 17.49
2011 20 20
2012 22.46 22.51
2013 24.92 25.02
100% 100%

Figure 3

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 3
Technical 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 • Down loads

• Typing • Cd – burning
• Searching the net • Computer Repair
• Printing/ Photo
copying/Fax/Scanning

For gaming I will install popular online games like Warcraft, Counter strike, Battle
Realms, Dance Audition, and Autojam. In typing I will install original Operating System of MS
Office 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

This is the AC Computer Shop’s manufacturing process.

The “AC Computer Shop” will provide the product and services to the customers, and
then 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 at
8:00 am ahead to the other competitors. This will lead my shop of being known. My goal is to
give the needs of the students and others in early manner of time.

AC Computer Shop’s Time Schedule

 Closin Operating
Opening
g 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:

List of Hardware: Brand name Description Amount

Package PC’s 10 units of PC w/
Pentium 4 Complete accessories Php. 15,500.00
Printer Samsung 3-in-1; Laser Printer,
SCX-4200 Scanner, Copier 4,999.00
Fax Machine
Panasonic Fax Machine with
KX-FT933 Automatic Paper Cutter 5,790.00
Modem DSL Smart Bro 999.00
Computer Application
Software:
OS MS Office 2007 4,999.00
Anti-virus and Anti spy ware 7,200.00
Game Software:
Warcraft (dota) 1,450.00
Counter Strike 350.00
Battle Realms 720.00
Dance Audition 1,968.00
Autojam 1,968.00
Total Machinery and
Equipment Cost Php. 45,943.00

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 and
Fixtures Cost Php. 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 months
Air Freshener 175.00 – replace every 2 months
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
Zoning 350.00
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. 96,000.00

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 250.00

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