Feasibilty Study DONE !

ICCT COLLEGES FOUNDATION INC.
The Computer Shop (We Speak Geek and English to)
A Feasibility Study Presented to The Faculty of the Engineering ICCT COLLEGES FOUNDATION INC.
In Partial Fulfillment of the Requirements for the Degree BACHELOR OF SCIENCE IN COMPUTER ENGINEERING
Bombalez, Nathaniel Bonifacio, Raven A. Ng, Rl Quibo, Christine Surigao, Lorenz Andreu Tortogo, Henry -
April 2011
BACHELOR OF SCIENCE IN COMPUTER ENGINEERING
ICCT COLLEGES FOUNDATION INC. Table of Contents

Page I. Introduction
What is the name of the firm? 1 Where is the location of head office and plant site? 1 Give a brief description of the project 1 Give the summary of findings and conclusions regarding the ff. Market feasibility 2 Technical feasibility 3 Financial feasibility 3
II. General information
4
Management of the Project 4 How shall the project be managed during the pre-operating period? 4 How shall the project be managed during the operating period? 5 What skills and corresponding numbers of labor are required? 7
III. Economic Aspects
9
Market Study 9 Demand

Supply 10 Competitive Position 11
i IV. Technical Feasibility Services Machinery Plant Location Utilities Waste Disposal V. Financial Feasibility Total Project Cost Initial Capital Requirements Gross Sale Financial Statements Financial Analysis VI. Evaluation and Conclusion VII. 16 17 17 23 24 12 12 13 14 15
12
16
30 32
Recommendation
I. Introduction
What is the name of the firm? The Computer Shop
Where is the location of head office and plant site? We chose the location, at V.V. Soliven Ave., Cainta, Rizal, beside Sta. Lucia East Grand Mall. Its about 40 square meters. It is the ideal place to establish an internet caf because it is accessible to public because its along the highway and our target market is mostly students, near to schools like ICCT Colleges Foundation Inc., Its an urbanized area were accessibility, competency and we study niche/market, as our main objective while choosing this site. In accessibility, the location is just along the highway, and its near to malls such as, Lucia East Grand Mall, Q-Plaza, and Pure gold, and schools such as ICCT Colleges, AMA, and ACLC and people just strolling along the way and or passengers of utility vehicle can easily see the Internet Caf. In competency and study of niche/market, the proposed location is a commercial place, so the prospective customers is almost everybody. Give a brief description of the project.

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 whose relatives or loved ones are at abroad and find it very convenient communicating with them through chat and email. 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 1 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. We agreed that the shop should be well ventilated (air condition) to make our customer comfortable, good music is well provided, the PCs is all well organized and arrange properly according to their rows for the convenience of our customer. Each computer has their own games, internet and surfing to be chosen by our customer, what they want and need is mainly our concerns. Give the summary of findings and conclusions regarding the ff. Market feasibility -In marketing aspect, promoting business will use different strategies and techniques to attract probable customers and offer promos 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 every visit and if they got 25 stamped there every 2 hours is 20% discounted) Contest for gamers (the winner will be free on their rental charge & to be held every Saturday from 3:00 to 5:00 pm only.) - We create some marketing strategies like; we will print a thousand 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 month

before our opening and we will distribute the fliers, mailboxes or gate. If we get a lot of text and e-mail we know we already have a market.
2 Technical feasibility - 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 and other computer application we use in the business. We purchase equipment as packages in order to lessen our expense. Hardware and Software is our much focus aspects. We did researching on how much the Hardware and software will cost us, through net surfing. The internet connection we used is Package plan of DSL Bayantel amounting P9,799.00 with capacity for 20 computers and have a speed of 2 Mbps. - In Hardware our target number of PC is 15 (monitorflatscreen, keyboard, PS2 mouse and processor, 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. In Software, we will installing original Operating System of Ms Office Professional 2007 likes MS Word, Excel, Power point, Access, Desktop Publishing and installing the popular on line games such World of warcraft , CounterStrike, Battle Realms, Dance Audition, Auto Jam, and we will be installing Norton 360 version 3.0 premium for our anti-virus and anti-spyware. We offer other service to customers likes printing in black and white, DVD/CD burning, photocopying, scanners, and payphone.
Financial feasibility

- Financial aspect conform the detailed computation of every financial needs of the business to determine and evaluate the project requirements, possible sources, capital financing and also the limitation of the business such as terms and condition. Capital is the most important asset in the business; it must be available at least cost when it is needed and the most important aspect among others. It admits how the business is made possible and determines the profitability of the business.
3 II. General information

Management of the Project a.) How shall the project be managed during the preoperating period? Location- Picking a good spot and well hit us a gold mine. Competition- Most business-minded people think of competition as a race to charge the lowest prices in order to win customers. While its good for the customers, exceeding the lower boundaries can drive you and your competitors to bankruptcy. One cannot expect to recover a Php500, 000 investments if hourly rentals go down to as low as Php10. It goes without saying that in this industry, there are no customer loyalty; just cheaper rentals. Software Licensing -its 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 our case the well tabulated if financial statement is our major concern.

Caf opens at 7:00 am until 10:00 pm. Ahead of other competitors, this will lead us of being known. Our goal is to give the needs of the students and others in an early manner of time. It will also include the completion all legal requirements before the operation of business. In operational procedure we keep in minds all the legal aspects of establishing a business such as Business permit & the following requirements are: LEGAL REQUIREMENTS Registration with BIR Registration of business name with DTI Barangay Clearance and Business Permit Mayors Permit
4 b.)How shall the project be managed during the operating period? Partnership is an organization where two or more person binds themselves to contribute money, property, or industry into a common fund with the intention of dividing profits among themselves. Unit Management Personnel Manager Accountant Cashier Computer Technician Time to be Devoted to the Project and Duties Once a week 3:00 and 10:00 7am to 3pm 3pm to 10pm in case of computer malfunctions Qualifications Compensation
Owner at-least 12units in accountancy at-least high school graduate computer literate
Owner P1500 a month P15 per hour P400 twice a month
Benefits of partnership type of business we are establishing:

Partnership is relatively easy to establish; however times should be invested in developing the partnership agreement, in our case theres no problem about it because we 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 capital. In addition, funding sources are more likely to entertain financing request because of the broader capital base. The profit from the business flow directly to the business though the partners personal tax return. Higher Quality Employees Partnerships tend to attract better employees because of the possibility of becoming a principal in the firm.
5 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 fast in a sole proprietorship. Limited government interference Like sole proprietorship are normally free of extensive governmental scrutiny. Organizational Chart
6 Manpower - Manpower requirements are very important to any business in order for them to have an intelligent and accurate people who will manipulate inside the firm. Requirements will serve as basis on personal and general background of an employee enable for the company to know the 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 cafe will be the industrial partner who works by shift, 8 hours a day, the first shift is from 7:00 am to 3:00 pm while the second shift is from 2:00 pm to 10:00 pm. A walk in technician will be called in case of computers malfunctions and he will visit the shop twice a month. Labor Skills Required Number of Labor Required Function Qualificatio ns Compensati on

- Establishes store policies and procedure for strict implementation. - Execute final decisions on all matters pertaining to the operation and the management functions of the business - Audit individual computers to check for proper system. - Visit the shop alternate everyday - Check the book of accounts and financial statement in daily basis - Handles license renewals, facilities preparation and payment of annual tax generated by the business. - Visit the shop every other day. - 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
Manager
Owner
Owner
Accounta 1 nt
College Graduate at-lest 12units in accountan cy
P1500 a month
Cashier
High School Graduate
P15 per hour

customers hours consumed - In charge in computer maintenance - Provide information and/ or technical aspect.
Compute 1 r Technicia n
Computer Literate and College Graduate
P400 twice a month
8
III. Economic Aspects Market Study Demand Year Past Annual Domestic

Demand For Computer Shops 22.5 24.0 27 28.05 30.25 32.5 34.5 38.25 40.5 42.5
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -
were our target customers are mainly students and nearby neighborhood especially those people whose relatives or loved ones are at abroad and find it very convenient communicating with them through chat and email.
Year 2013 2014 2015 2016 2017 -
Projected Annual Domestic Demand For Computer Shops 43 45 50 53 55
because of the modern technology, we assume that every year we have a greater and huge competitor .
9 Supply Past Annual Domestic Supply for Pentium 4 PC P25,000 P24,500
Year 2003 2004

2005 2006 2007 2008 2009 2010 2011 2012 P23,000 P22,500 P22,000 P21,500 P21,000 P20,000 P20,500 P19,500
Pentium 4 is a PC which is commonly used in Computer Shop now a days, because of its cheap price, easy to use, and easy to handle
Year 2013 2014 2015 2016 2017 -
Projected Annual Domestic Supply for Pentium 4 PC P19,000 P15,000 P14,000 P13,000 P11,000
If we add a unit(PC) to our shop, we dramatically chose the Pentium 4, because of its cheap price. However, the Pentium 4 had been lower the price for consecutive years because of the modern technology
10 Competitive Position Services Its the factor that affect mostly ones business because through services customer will decide if they are satisfied or not.

Price It is one of the considerations of the customer that enhance them to rent computers. If the price is lower they will rent. Our services are the following: Internet/ Games Printing black and white4.00 (long) Colored (depends on the size of the color) Php. 10.00 (minimum) ex. Logos Photocopying Php. 1.00 (short) Php. 1.25 (long) Scanning Php. 10.00 CD burnings Php. 35.00 (max. 17 songs) Other services: Payphones Php. 5.00 / every 3 min. Amount Php. 15.00 / hour Php. 3.00 (short) Php.
11 IV. Technical Feasibility

Services Internet/ Games Amount Php. 15.00 / hour

Printing black and white(long) Colored Photocopying (long) Scanning CD burnings Payphones Php. 10.00 Php. 35.00 (max. 17 songs) Php. 5.00 / every 3 min. Php. 10.00 (minimum) ex. Logos Php. 1.00 (short) Php. 1.25 Php. 3.00 (short) Php. 4.00
Machinery List of Hardware Brand name Package PCs Pentium 4 19,500.00 3 in 1 PSC HP Office jet 2610 Print/Scan/Copy 14,500.00 Amount Php. Php.
Computer application software OS MS Office 2007 Game software: Warcraft (dota) Counter Strikes Battle Realms Dance Audition Autojam Anti-virus and anti spy ware
Amount Php. 19,200.00 Php. 1,450.00 Php. 350.00 Php. 720.00 Php. 1,968.00 Php. 1,968.00 Php. 10,800.00
12 Plant Location
13 Utilities

LIST OF SUPPLIES The materials needed for the operation of the business Bond Paper - 150.00 (500pcs./rim) CD w/ Case 13.00/set Ballpen 48.00/box of 12pcs. Stapler - 100.00 Stapler Wire - 30.00 HP 96 Black Ink - 800.00 HP 97 Tri-Color - 850.00 Record Book - 25.00 Fire Extinguisher 10lbs. (Danwell) - 3,950.00 Other Equipment Air-condition (Condura) Furniture & Fixture Quantity Total Price Computer Table Table for Server Monoblock Chair 4,995.00 Tool Chair 445.00 Cabinet Total Additional Expense Quantity Amount Pad Lock 3,600.00 2 Unit Price 1,800.00 14 1 Unit Price 1,300.00 18,200.00 1,500.00 1,500.00 15 249.75 5 1 1,000.00 89.00 1,000.00 26,140.00 14,500.00

14 Waste Disposal The proper disposal of the garbage is very important. Since our business is a computer caf we usually used bond paper, so it is not hard for us to think how it will be disposed. To maintain the cleanliness inside the caf there are trash basket at one corner. Cleaning Materials Broom months) Dust Pan Plastic Trash Basket Feather Dust Mop Powder Soap mos.) Air Freshener months) 175.00 ( replace every 2 45.00 100.00 50.00 (25.00/ pc.) 250.00 20.00 ( 6pcs. Good for 2 60.00 ( replace every 6

15
V. Financial Feasibility Project Cost As a part of the business, its more concerned is in financing and financial feasibility that perform activities. The total project cost we will able to determine how much money consumed from the start. Total Project Composed of the following: o Legal Requirements o Equipments o Furniture and Fixture o Prepaid Supplies o Prepaid Rent o Computer Application Software & Game Software o Other Expense o Working Capital The cash flow it indicates the total cost before the operation. For the prepaid supplies and prepaid rent it will covered for one year. The improvement is composed of paint and labor, which is the cost for labor is 800.00(400.00 each person).It also include the payment of purchases such as Equipment, software, furniture and fixture and signage. Payment for legal requirements, marketing and other expense which other expense composed of padlock and cleaning materials.
16
PRE OPERATION PROJECTED CASH FLOW AS OF April 2012 Total Investment Cash outflow from operations Payment for Legal Requirement Payment for Equipment Payment for Other Equipment Payment for Furniture and Fixture Payment for Supplies Payment for Prepaid Rent Payment for Computer Application Software Payment for Games Software Payment for Anti-Virus Software Payment for Signage Improvement Expense Marketing Expense Pre-Operation Expense Cash available as of April 2012 700,000.00 11,014.00 328,250.00 2,000.00 26,140.00 89,819.00 120,000.00 19,200.00 6,456.00 10,800.00 4,000.00 1,800.00 12,405.35 5,335.00 62,780.65
PROJECTED GROSS SALES -The table shows the total sales of the business from the year 2012-2016. For every service that offered to the customers has their own specific price. With a service such as Internet/Game, it is multiply the service fee with the total minimum hours of operation in one day, then multiply it to the unit consumption day to get the total sales for the whole year. For the other services like printing, scanning, CD burning and typing job, just multiply the service fee to the total unit of consumption to get total sales for the whole year. To get the total sales for one year, add the total sales for revenue and the sales for other income. We estimated 80% of unit consumption for 1 day out of 15 hours of operation
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GROOS SALES 2012 UNIT YEAR (365 / 317days) 788,400.00 164,250.00
SERVICE INTERNET/GAMES PRINTING B & W PRINTING COLORED Text picture (small) picture (medium) picture (large) SCANNING CD-BURNING OTHER INCOME PHOTO COPYING PAYPHONE TOTAL GROSS SALES
SERVICE HOUR FEE P15.00 P3.00 12 12
TOTAL /DAY 2,160.00 450.00
12 150pcs.
P10.00 P15.00 P20.00 P25.00 P10.00 P35.00 P1.00 5/3mins.
12 12 12 12 12 12 12 12
10 pcs. 5pcs. 5pcs. 2pcs. 5 pcs. 6 pcs. 60pcs. 17times
100.00 75.00 100.00 50.00 50.00 210.00 60.00 85.00
36,500.00 27,375.00 36,500.00 18,250.00 18,250.00 76,650.00 19,020.00 31,025.00 1,216,220.00
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GROSS SALES 2013
SERVICE
SERVICE HOUR FEE P15.00 P3.00 12 12
UNIT
TOTAL
YEAR
INTERNET/GAMES PRINTING B & W PRINTING COLORED Text picture (small) picture (medium) picture (large) SCANNING CD-BURNING OTHER INCOME PHOTO COPYING PAYPHONE TOTAL GROSS SALES
13 155pcs.
2,340.00 465.00
854,100.00 169,725.00
P10.00 P15.00 P20.00 P25.00 P10.00 P35.00 P1.00 5/3mins.
12 12 12 12 12 12 12 12
12pcs. 7pcs. 7pcs. 3pcs. 7pcs. 8 pcs. 65pcs. 17times
120.00 105.00 140.00 75.00 70.00 280.00 65.00 85.00
43,800.00 38,325.00 51,100.00 27,375.00 25,550.00 102,200.00 20,605.00 31,025.00 1,363,805.00
19
GR0SS SALES 2014 UNIT SERVICE INTERNET/GAMES PRINTING B & W PRINTING COLORED Text picture (small) picture (medium) picture (large) SCANNING CD-BURNING OTHER INCOME PHOTO COPYING PAYPHONE TOTAL GROSS SALES SERVICE FEE P15.00 P3.00 P10.00 P10.00 P15.00 P20.00 P25.00 P10.00 P35.00 P1.00 5/3mins. HOUR 12 TOTA 2,520.00 480.00 YEAR
14 160 pcs.
919,800.00 175,200.00
12 12 12 12
15pcs 10pcs. 10pcs. 5pcs 10pcs. 10 pcs. 70pcs. 17times
150.00 150.00 200.00 125.00 100.00 350.00 70.00 85.00
54,750.00 54,750.00 73,000.00 45,625.00 36,500.00 127,750.00 22,190.00 31,025.00 1,540,590.00
12
20
GR0SS SALES 2015 UNIT SERVICE INTERNET/GAMES PRINTING B & W PRINTING COLORED Text picture (small) picture (medium) picture (large) SCANNING CD-BURNING OTHER INCOME PHOTO COPYING PAY PHONE TOTAL GROSS SALES SERVICE FEE P15.00 P3.00 HOUR 12 TOTAL 2,700.00 510.00 YEAR
15 170 pcs.
985,500.00 186,150.00
P10.00 P15.00 P20.00 P25.00 P10.00 P35.00 P1.00 P5.00/ 3MINS.
12 12 12 12 12 12 12 12
20pcs 12pcs. 12pcs. 7pcs. 13 pcs. 13pcs. 75pcs. 17 times
200.00 180.00 240.00 175.00 130.00 455.00 75.00 85.00
73,000.00 65,700.00 87,600.00 63,875.00 47,450.00 166,075.00 23,775.00 31,025.00 1,730,150.00
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GROSS SALES 2016 UNIT SERVICE FEE HOUR INTERNET/GAMES P15.00 12 PRINTING B & W P3.00 12 PRINTING COLORED Text P10.00 12 picture (small) picture (medium) picture (large) SCANNING CD-BURNING OTHER INCOME PHOTO COPYING PAY PHONE TOTAL GROSS SALES P15.00 P20.00 P25.00 P10.00 P35.00 P1.00
P5.00/ 3MINS.
TOTAL
YEAR
SERVICE
17 175 pcs.
3,060.00 1,116,900.00 525.00 191,625.00
25pcs. 15pcs. 15pcs. 9pcs. 15pcs. 15 pcs. 80pcs. 17times
250.00 225.00 300.00 225.00 150.00 525.00 80.00 85.00
12 12 12 12 12 12 12
91,250.00 82,125.0 0 109,500.0 0 82,125.0 0 54,750.00 191,625.00 25,360.00 31,025.0 0 1,976,285.00
22
Supplies Expense 2012 25,112.00 7,608.00 28,470.00 60.00 75.00 144.00 24,300.00 100.00 3,950.00 89,819.00 2013 26,864.00 8,242.00 37,960.00 60.00 75.00 144.00 25,029.00 100.00 3,950.00 2014 29,200.00 8,876.00 47,450.00 90.00 100.00 192.00 25,779.87 100.00 3,950.00 2015 32,266.00 9,510.00 61,685.00 120.00 125.00 240.00 26,553.27 100.00 3,950.00 2016 34,894.00 10,144.00 71,175.00 150.00 150.00 288.00 27,349.87 100.00 3,950.00
Bond Paper (photocopy) CD Case & CD's Staple Wire Record Book Ballpen Ink Stapler Fire Extinguisher Total
102,424.00 115,737.87 134,549.27 148,200.87
Table shows the depreciation of equipment and furnitures and fixture from the original price with the salvage value of 10% except the furniture and fixture. To compute the depreciation of equipment just multiplies in10% salvage value and the result will be subtracted to the original price then divided in 5 years useful life. Same in other equipment, furniture and fixture but dont have salvage value; it is immaterial if they had a salvage value because it has a lower price.
23
DEPRECIATION: Equipment Computer Set(19950/5 years) Cost Per Unit 19,950 Year 2012 2013
Additional Computer
Useful Life 5 Quantity 15 15 1 16 1 17 1 18 2
Salvage Value (10%) 1,995.00 Net Value 299,250.00 245,385.00 19,950.00 207,879.00 19,950.00 166,782.00 19,950.00 122,094.00 39,900.00
Depreciated Cost 3,591.00 Total Depreciation 53,865.00 53,865.00 3,591.00 57,456.00 3,591.00 61,047.00 3,591.00 64,638.00 7,182.00
Book Value Per Unit 16,359.00 BookValue 245,385.00 191,520.00 16,359.00 150,423.00 16,359.00 105,735.00 16,359.00 57,456.00 32,718.00 Book Value Per Unit 11,890.00 BookValue 11,890.00 9,280.00 6,670.00 4,060.00 1,450.00
2014
Additional Computer
2015
Additional Computer
2016
Additional Computer
Aircon (7,000/5 years) Cost Per Unit 14,500.00 Year 2012 2013 2014 2015 2016 Useful Life 5 Quantity 1 1 1 1 1 Salvage Value 1,450.00 Net Value 14,500.00 11,890.00 9,280.00 6,670.00 4,060.00 Depreciated Cost 2,610.00 Depreciated cost 2,610.00 2,610.00 2,610.00 2,610.00 2,610.00
24 3 in 1(Scanner/ Photocopier/ Printer (14,500.00/5years) Cost Per Unit 14,500.00 Year 2012 2013 2014 2015 2016 Furniture & Fixture Monoblock Chair Cost Per Unit 249.75 Year 2012 2013 2014 2015 2016 Tool chair Cost Per Unit 89 Year Useful Life 5 Quantity Salvage Value None Net Value Depreciated Cost 17.80 Depreciated Book Value Per Unit 71.20 BookValue Useful Life 5 Quantity 20 20 20 20 20 Salvage Value None Net Value 4,995.00 3,996.00 2,997.00 1,998.00 999.00 Depreciated Cost 49.95 Depreciated Cost 999.00 999.00 999.00 999.00 999.00 Book Value Per Unit 199.8 BookValue 3,996.00 2,997.00 1,998.00 999.00 0.00 Useful Life 5 Quantity 1 1 1 1 1 Salvage Value(10%) 1,450.00 Net Value 14,500.00 11,890.00 9,280.00 6,670.00 4,060.00 Depreciated Cost 2,610.00 Book Value Per Unit 11,890.00
Depreciation BookValue 2,610.00 11,890.00 2,610.00 9,280.00 2,610.00 6,670.00 2,610.00 4,060.00 2,610.00 1,450.00

2012 2013 2014 2015 2016 Computer Table Cost Per Unit 1,300.00 Year 2012 2013 2014 2015 2016 Server Table Cost Per Unit 1,500.00 Year 2012 2013 2014 2015 2016 Useful Life 5 Quantity 1 1 1 1 1 Salvage Value None Net Value 1,500.00 1,200.00 900.00 600.00 300.00 Depreciated Cost 300.00 Depreciated Cost 300.00 300.00 300.00 300.00 300.00 Book Value Per Unit BookValue 1,200.00 900.00 600.00 300.00 0.00 Useful Life 5 Quantity 14 14 14 14 14 Salvage Value None Net Value 18,200.00 14,560.00 10,920.00 7,280.00 3,640.00 Depreciated Cost 260.00 Depreciatio n 3,640.00 3,640.00 3,640.00 3,640.00 3,640.00 Book Value Per Unit 1,040.00 BookValue 14,560.00 10,920.00 7,280.00 3,640.00 0.00 5 5 5 5 5 445.00 356.00 267.00 178.00 89.00 Cost 89.00 89.00 89.00 89.00 89.00 356.00 267.00 178.00 89.00 0.00
Other Equipment Cost Per Unit 2,000.00 Year 2012 2013 2014 Useful Life 5 Quantity 2 2 2 Salvage Value None Net Value 2,000.00 1,600.00 1,200.00 Depreciated Cost 400.00 Depreciation 400.00 400.00 400.00 Book Value Per Unit 1,600.00 BookValue 1,600.00 1,200.00 800.00

2015 2016 2 2 800 400 400.00 400.00 400.00 0.00
Cabinet Cost Per Unit 1,000.00 Year 2012 2013 2014 2015 2016 Useful Life 5 Quantity 1 1 1 1 1 Salvage Value None Net Value 1,000.00 800.00 600.00 400.00 200.00 Depreciated Cost 200.00 Depreciation 200.00 200.00 200.00 200.00 200.00 Book Value Per Unit 800.00 BookValue 800.00 600.00 400.00 200.00 0.00
Signage Cost Per Unit 4,000.00 Year 2012 2013 2014 2015 2016 Useful Life 5 Quantity 1 1 1 1 1 Salvage Value Depreciated Cost 800.00 Depreciation 800.00 800.00 800.00 800.00 800.00 Book Value Per Unit 3,200.00 BookValue 3,200.00 2,400.00 1,600.00 800.00 0.00
Net Value 4,000.00 3,200.00 2,400.00 1,600.00 800.00
27 Major Assumption o The Initial capital will be Php 700,000.00. o The projected financial statement will cover up to 5 yrs. o Equipment will be depreciated for 5 yrs. o Other Assets will also depreciated for 5 years o Software will be amortize for 5 years o Salaries will be increase 3% annually. o Light expense will be increase 3% annually. o Telephone bill/DSL increase 3% annually. o Supplies will purchase annually. o Additional equipment will purchase before the business year operate o Division of net income is a bonus method (bonus after tax) to industrial partner will be 40% and 60% to capitalist partner for the following years within 5 years of operation. o 60% of the net income is divided equally to the capitalist partner o Drawings will be 2.5 % every month based on the net income which is 30 % for the whole year. There are some objectives and guidelines to be met: o To make a safe, realistic and complete of operating revenues and costs.

o To determined the liquidity, profitability and soundness of its financial position. o To determined the accumulated capital financing from partners. o To determined and ensure the necessary financial management of business will have monetary resources whenever necessary. o To make an accurate estimated total cost. 28 Advertising and Marketing expense it will stated on the cash flow amounting P11,377.58 on the first year because it has an expense before the operation of the business. The computation of the expense are as follows for the membership card (100pcs. X 100.00) P10,000.00 stamp card for points (100pcs. X 10.00) P1,000.00 small tarpaulin 157.08 small fliers 220.50
P11,377.58 x 2 (twice a year) Advertising and Marketing Expense composed of membership card and stamp (11,000.00) tarpaulins,fliers Total Cost 22,755.16 for the following year Cleaning material expense was 1,735.00 which covered one year of operation. Brooms Soap Dust Pan Trash Can Feather Dust Mop Air Freshener 120.00 120.00 45.00 100.00 50.00 250.00 1,050.00
The projected income statement, partners equity, balance sheet and cash flow its indicated what is the standard of the business will be.

The Financial Analysis its indicate on how many percent is the return of the Current Assets and Investment. It also indicate the margin of safety of the business in order to avoid the net loss.
29 EVALUATION SUMMARY AND CONCLUSION Top 5 things to consider when putting up an Internet caf 1. Capital- Planning is very important. The risks are high when going for this kind of business so you should only allot the right amount of money needed. Be sure you wont be touching any of your family savings. Also, spare some money for your future expenses, just to be safe. 2. Study your niche/market- See to it that there is a great demand for an Internet caf in your area. Obviously, the urbanized areas are the ones you would target, or as long as the place is busy with people and they will have a need for the services youre offering. 3. Location- If your area is situated near a school then that would be a big plus. Just observe the law regarding how many meters away, your Internet caf should be, from any schools or colleges. Some are not following it but the law is the law. Commercial zones within residential areas are also advisable.

4. Hardware, software and other utilities Consider first what services youre going to offer. For example:
o
If you would only provide Internet services such as web surfing, chatting, etc., then you could go for the low-end or the average specifications for your computers. The Internet doesnt demand much from your hardware. Just apply for a relatively fast Internet connection (DSL, Broadband, Cable) with a high bandwidth. Then install operating systems and other programs needed. Headsets with microphones are often used when chatting. 30
If you would consider adding gaming then the best specs, as much as possible or whichever the games require, should be your priority. There are the offline and online games which require Internet connection. Your clients, especially the gamers, are very demanding when it comes to the speed and reliability of both your PCs and Internet connection. You would often hear complaints about logging, hanging, or slow Internet connection. So make sure that your clients are satisfied to avoid all of those. Buy the best performance PCs and avail a faster Internet connection. There are other services that you may offer your customers. You could do printing (b&w or colored), typing services, CD/DVD burning, some even have fax machines or photocopiers.
5. Pricing and Promotions- Know how much youll charge for your services. Studying the market will play a great role here. If the price is right then people will avail of your services. Some owners often use pricing as a tool to have an edge over other competitors

*Be sure to apply for the necessary documents needed if you want to start your own Internet caf, such as Barangay Clearance, Mayors Permit, DTI permit, etc. Just so your business would be legalized.
31 Recommendations When starting a new business, there are many important decisions to make and many rules and procedures that must be addressed. The number of task you need to complete and the information you need to track down before you begin a business. The followings are: I. Basic needs to open a new business Where to open your business- Deciding where to open and when to open your new business is often one of the most difficult decisions a business owner faces. These decisions may also be the most important ones because the ultimate success of the business can hinge on where its located and when its opened. To work through these decisions, choose one of the following: 1. Choosing whether to lease space or from home. 2. Choosing the best geographic location for your business.

o Selecting a location- An important factor in selecting a location is that you keep a long term perspective. Site selection can be a big investment. Choosing the right site now can avoid the cost of relocation in the future. Here are some factors that you should consider in making your site decision: 1. Location of competitors. 2. Target market. o Leasing space- A lease agreement is a contract between you and the owner of the property. Since its a legal document, you should review it before you sign it.
32 o Marketing your product or services- How you will market your product depends on your budget. Here are some suggestions: 1. Distribute fliers announcing your business. 2. Put a business sign. 3. Create several promotional gimmicks. o Getting licenses and permits- Before your business start to operate all the necessary legal requirements must be complied, to avoid problem in the near future. o Hiring employees- This is very important, hire people, who is trustworthy and have knowledge at your business, consider relatives and those recommended by friends.
33 II. Starting a new business Ownership Responsibilities- Probably the two most common reasons that a business doesnt succeed are that 1) the business is poorly managed because the owner lacks the necessary skills and 2) the owner underestimates how much money it will take to start the business. To begin the process of preparing yourself, lets take a look at: 1. Pros and Cons of owning a business: PROS: A. You have the chances to make a lot of money than you can make working for someone else. B. Youll be your own boss and make the decisions that are crucial to your business success or failure. C. You may be the boss of other people. D. Youll have job securityno one can fire you.

E. You have the chance to put your ideas into practices. F. You may participate in every aspect of running a business. G. Youll learn more about every aspect of a business and gain experience in a variety of disciplines. H. Youll the chance to work directly with your customers. CONS: A. You may have to take a large financial risk. B. You will probably have to work long hours and may have fewer opportunities to take vacation. C. You may end up spending a lot of your time attending to the details of running a business and less time in those things you really enjoy. Goals Setting- For many people, it helps to translate their expectations and desires into concrete terms by setting goals and these is a Personal goals- unlike money, many of these factors cant be quantified but are important nevertheless. For many people, the chance to build something of their own, according to their own vision, drives them to start a business. Typical reasons that people choose to start a business include: 1. Freedom- owning your own business is a way to achieve personal freedom on many levels. 2. Career change- Most people change jobs or even careers several times during the course of their lives. Sometimes, its by choice; other times, existing jobs simply disappear. 3. Professional growth- Some people believe their ideas are being ignored or not being used properly in a corporate setting, and they want the chance to do it the right way.

III. How to get Exposure for my business Exposure through Advertising and Promotions- Advertising and promotions is bringing a service to the attention of potential and current customers. The goals of the plan should depend very much on the overall goals and strategies of the organizations. The plan usually includes what target markets you want to reach, how much money is budgeted for this effort.
35 IV. Minimizing risk for my business o Hiring family members- A family member will more willing to step into your shoes when needed. For example, if you get tied up doing something, a family member usually makes a reliable fill-in. o Franchising- A good way to reduce your risk of failure is to purchase a franchise because franchises typically have a higher success rate than other types of small business. o Know when to cut your losses- If you dont decide the financial commitment to your new business in advance, you may regret it in the future. o Financing assessment- Finding the money to start a new business is almost always one of the most difficult hurdles

new owners face. At this point in the process of analyzing your business idea. You should have examined both the results that you know how much it should cost and how much you should be able to earn. o Legal assessment- In making a legal assessment of your business idea, you need to determine to what extent the operation of your business might expose you to legal liability.
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ICCT COLLEGES FOUNDATION INC.

The Computer Shop (We Speak Geek and English to)

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC. Table of Contents

II. General information

III. Economic Aspects

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

3 II. General information

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

Owner P1500 a month P15 per hour P400 twice a month

Benefits of partnership type of business we are establishing:

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

College Graduate at-lest 12units in accountan cy

High School Graduate

P15 per hour

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

Computer Literate and College Graduate

P400 twice a month

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

Year 2013 2014 2015 2016 2017 -

Projected Annual Domestic Demand For Computer Shops 43 45 50 53 55

9 Supply Past Annual Domestic Supply for Pentium 4 PC P25,000 P24,500

Year 2003 2004

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

Year 2013 2014 2015 2016 2017 -

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

11 IV. Technical Feasibility

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

BACHELOR OF SCIENCE IN COMPUTER ENGINEERING

ICCT COLLEGES FOUNDATION INC.

GROOS SALES 2012 UNIT YEAR (365 / 317days) 788,400.00 164,250.00

SERVICE HOUR FEE P15.00 P3.00 12 12

TOTAL /DAY 2,160.00 450.00