Index

1.0 Introduction………………………………….………… 2
1.1 Executive summary…………………………….………..2
1.2 Keys to success……………………………………..……2
1.3 Missions………………………………………………….3
1.4 Risks……………………………………..………………..3
2. Company…………………………………..……………….3
2.1 Company ownership………………………………………3
2.2 Start-Up Summary…………………………….…………..3
2.3 Company locations and facilities……………….…………4
3. Services…………………………………………….………..4
3.1 Competitive Comparison……………………….…………5
3.2 Service description……………………………….………..4
3.3 Fulfillment………………………………………………….5
3.4 Technology…………………………………………………5
3.5 Future Services…………………………………….……….6
4. Market Analysis……………………………………………...6
4.1 Target market segment strategy……………………….…….7
4.2 Market needs…………………………………………..…….7
4.3 Market segmentation…………………………………….…..8
5. Strategy and Implementation summary…………………..……9
5.1 Attracting customers…………………………………..……..10
5.2 SWOT analysis……………………………………………….11
5.3 Sales strategy…………………………………………………12
6. Management summary……………………………………..…..12
6.1Personnel plan…………………………………………..…….12
7. Financial plan…………………………………………………….12
7.1 Start-up funding………………………………………….……..12
7.2 Projected profit and loss………………………………..……….13
7.3 Break-even analysis……………………………………..……….13

1.0 Introduction

This is the business plan of Chileshe Chilangisha created to help starting an internet-café. This business plan is part of my continuous assessment for the course (DEV 9850 Entrepreneurship and Development) at the University of Zambia Great East road Campus, Lusaka. In order to finish this project successfully I have informed my contact person with all the questions I had. In this business plan I have tried to make a plan to realize the internet-café and keep it running while making some profit. Furthermore this business plan will show how the internet-café itself will be built.

The location I am aiming at is at the Great East Road Campus, University of Zambia in Lusaka. My own goals are to make a Business plan for this internet café, in order to help the UNZA (University of Zambia) community easy access to internet facilities, printing, laminating, photocopying and also increase their knowledge with computers. This is in line with the increase in the number of students who are getting enrolled every year and as a result the existing ones become insufficient to help every student in their rush hour.

1.1 Executive Summary

CHILEZ EMPIRE business centre is pleased to present PACRA with this business proposal for the establishment of an internet Café at the University of Zambia Great East road campus in Lusaka. I believe that the internet café business will be a success because there are very few internet cafés (about 3) and this business environment is in its growth stages especially with the advancement in technology for instance some employers are only receiving job application letters through emails hence CHILEZ EMPIRE business centre comes to the rescue to those who might not have those gadgets to get what they want including those who may have other reasons despite having one. CHILEZ EMPIRE Business centre is dedicated to providing quality internet services to its clients. Having duly examined the business environment for such a venture, we are confident that our proposed services will effectively address the needs of our clients. Our goal is to provide: * Access to Internet Explorer browser or other browsers. * Access to external POP3 email accounts. * FTP, Telnet, Gopher, and other popular Internet utilities will be available. * Access to printing. * Access to photocopying * Access to Laminating * Access to Binding * Access to popular software applications like Microsoft Word and other often used applications. * Contribute to governments’ efforts in the provision of social services such as education by servicing those clients who might need to print out their documents, photocopying of documents, laminating among other services. This is especially to target students who are mandated by their school curriculums to have some of their works typed.
This business will start out as a simple small business, owned by its founder. As the operation grows, the owner will consider re-registering as a limited liability company or as a corporation, whichever will better suited the future business needs.
Start-up Summary
The company founder will handle day-to-day operations of the plan to ensure that this business venture is a success. Estimated start-up costs will be K60, 000 (including legal costs, stock, website design, marketing, and related expenses). An additional K20, 000 will be required in the bank account as an operating capital for the first month of operation.
1.2 Mission Statement
The mission of CHILEZ Business Centre is to make the internet available to a greater population. In such a way that the University population will have access to all the sources which can be found on the internet during their academic work and even the outsiders who would want to access such services. In situations where a student’s personal computer develops a problem which will constrain the student’s usage, this internet café will be there for them. Also the internet café should be a place where one can relax and play some games. Thereby the café is supposed to be a place where people of all ages will come to enjoy the unique, upscale, educational, and innovative environment that the internet-café provides.
1.3 Organisational Plan
This business will start out as a simple small business, owned by its founder who will be holding the position of Manager. As the operation grows, the owner will consider re-registering as a limited liability company or as a corporation, whichever will better suited the future business needs. Only two instructors and Supporting officers will be part of the management team.
Ownership structure Manager Instructor 1 Instructor 2 Supporting staff officer 1 Supporting staff officer 2

1.4 Financial Plan
Start-up Expense Details: Total | 10 Computers K1,500 Each | K25,000 | 2 Commercial Printers K4,000 Each | K8,000 | 1 Commercial Scanner | K4,000 | 11 chairs 100 each | K1,100 | 11 computer stands K150 each | K1,650 | 1 air-conditioner | K4,500 | 10 Toner Boxes K100 each | K1,000 | 10 Reams of paper K30 each | K300 | Labor for fixing the computers andfurniture | K3,000 | Electricity | K15,000 | Internet + router | K1,500 | Water | K2,500 | Total | K57,550 |

1.5 Risk Assessment and Implementation
The main risks in establishing any business at all is always the demand and power facility. Will there be enough demand for my product during periods when the full- Time students are on their vacations? Will power facilities always be there? These risks are also present in the soon to come internet café, the population may not be interested in spending money to go online due to the increased number of students who have their own personal computers especially with the coming in of laptop schemes which has seen almost every first year student registering for a laptop. Also, will the popularity of the internet sustain, in order for the people to maintain their interests in the internet and the internet café. And foremost, will there be a profit?
Competitors
Name : Lajoy internet café
Location : University of Zambia Great East road Campus
Services offered : secretarial services; printing, photocopying, browsing

Name : Wide net Internet café
Location : University of Zambia Great East road Campus
Services offered : printing, photocopying, browsing, stationery
Name : Satellite main Internet café
Location : University of Zambia Great East road Campus
Services offered : printing and photocopying

Name: Surf dot net
Location: University of Zambia Great East road Campus
Services offered: printing, photocopying, browsing, stationery

1.6 Implementation
Sales strategy
For My internet café, my employees do not require much background training, apart from a basic computer course. If they do not posses this knowledge, there will be an opportunity to learn these. The full time technician will require basic handyman training and more advanced computer knowledge. This however cannot be provided by the internet café itself. Helpful service is one of the key factors that distinguishes our internet café from other Internet cafés.

Attracting customers
To attract the intended customers the internet-café can use different types of advertising to reach each target group. For the adolescents for example some posters could be made. These posters could be placed around places where the adolescents would mainly be present. Places like Mingling Bar, Mature Square, Sports hall Cafeteria, and at the Hostels notice boards including those in various schools. Another way of attracting the customer is to advertise in the local newspaper. By advertising in the local newspaper the households would get notice of the new internet-café. This would result in attracting the parents of the adolescents and other students of the UNZA. These ways of advertising will be stopped after two years. This is because over such a period of time most them will have noticed the internet café and/or heard about it.

1.7 Industry Analysis
Conducting the following research has allowed us to validate our business idea and approach. The Zambian internet services market is a high value growth industry. Communication is typically a daily thing as it goes beyond mobile communication as most people are now communicating via e-mail, Social networking among other medium of communication. In addition printing, typing and photocopying is very high among students. We have selected a prime location, with sufficient footfall and nearby residents and businesses to support the internet café business.
We have carefully priced our services, taking care to ensure we remain competitive but also turn a good profit. Internet café centres have been researched, both generally and locally.
We have conducted research into the number of students who researches using the internet as well as conducting a short questionnaire over a period of 7 days.
We have used this information to assist in pricing, to get a better idea of where people pay for the internet services they receive and also other services such as typing, printing, photocopying, laminating and binding of their documents. We have also used our research on the footfall of the high street in conjunction with checking how many customers our competitors serve to help create our sales forecast. Zambia is a developing country that can benefit greatly from international contacts and access to the World Wide Web. To achieve this however, certain requirements have to be met, what is the average price, how can a profit be achieved, and what does the market want?

SWOT analysis
This section will focus on the SWOT analysis. The SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. SWOT is an abbreviation for: Strength, Weakness, Opportunity and Threats.
Strength
The strength that the internet-café will have is it being among the few internet providers in campus. The access to internet is very limited however there are some internet-cafés which surely will make competing favourably. This condition should have a positive effect on the success of this internet-café.
Secondly, the internet-café should have strength in staying up-to-date with the latest computer software. By keeping the hardware updated with the needed software the customers will enjoy working with the computers present. Staying updated with the newest software is also a cheap 'investment' which again would benefit to the success of the internet-café

Weaknesses
Besides the strengths each company/business has its weaknesses. Weakness can lead to a decrease of a company's success and development.
The weakness of an internet-café in general and also this internet-café is keeping up with the latest hard-ware technology. Staying updated with the latest hardware is not only an expensive investment it is an investment which does not sincerely pays off its prices immediately.
Over a period of years such an investment should be needed however it remains expensive.
Opportunities
As any other organisation an internet-café has its opportunities. Having certain opportunities offers an organisation a possibility to expand their turnover. An opportunity of an internet-café is that the global population which is requiring access to the World Wide Web is slowly increasing. This increase of internet users should offer the internet-café a chance to expand the business.
Another opportunity from which the internet-café might benefit is the possibility of a rising demand in the market. This raise would be the outcome of the growing popularity under the inhabitants. Once one is familiar with the World Wide Web one may introduce his or her social environment to the internet. Thereby the popularity of the internet will keep on growing and finally this will reflect in an increasing number of customers for the internet-café.

Threats
The internet-café will be one of a few located in the University of Zambia Great east road Campus. However the internet-café will face certain threats which can cause a slight decrease in its popularity in the market.
One of the threats the café will face is the continuous reducing price of the availability of internet itself. Because of the lowering price the internet will become available to a greater population. When this situation occurs more and more people will have an internet connection at their own designated areas especially with the provision of internet access by the University itself due to the annual internet facility every student is obliged to pay. This will make the existence of an internet-café redundant. Another threat which may threaten the internet-café is the increase of internet-cafés at a local scale. When the consumers get the opportunity to choose from a variety of offers the amount of customers will probably decrease.
Business Location
The location of this internet café will be within the University of Zambia Great East Road Campus. The business will be renting a building within the campus which is already present and what’s only remaining is someone to occupy it. The internet-café will not be the first internet-café to settle in the University. There are few other cafes within the campus.

Production Plan
The internet-café will obtain its computer hardware from Lusaka Town centre. The installation of the internet will also be provided by the local resources. Electricity shall be installed by one of the major providers of electricity.

Technology
The internet-café will be providing its customers with computers which will be up to date with today’s system requirements. The computers will be able to provide the customers with a variety of application to serve their needs. These applications will mainly be the mainly used ones which everyone will be familiar with such as Microsoft Office.

Future services
In the future the internet-café will be able to expand or improve its services. When expanding the needed amount of hardware should be purchased however what should be kept in mind is how far the internet café will be able to expand. The location may not be big enough to provide an excessive expansion of hardware. The improvement of service however could be made possible by providing the customer with additional services. A drink- and/or snack machine could be purchased for satisfying the customer, which would attract more customers and which could make the current customers stay longer.

Target market segment strategy
Our main intentions are to connect people to the internet, increase their knowledge by having access to sources from all over the world, and to increase their social setting, by a new way of communicating. People will come to this internet café to check their email, socialize with their friends, and gather information not found elsewhere.

Market Analysis
Market segmentation
Since my internet café is situated in a capital city of Zambia, I expect the population to increase more and decrease less. Therefore I can state and use the population pyramids to predict the amount of customers that would be suitable for My market, by looking at the average growth and applying this to the market, we can predict how many customers we will get.

Year | Population | 2009 | 16,5932 | 2010 | 18,592 | 2011 | 19,540 | 2012 | 22,3657 | 2013 | 26,9674 | 2014 | 27,7685 |

As can be seen, mainly the age groups between 18 and 25 have the largest enrollment rates. This is my main target market; therefore I can make an estimated growth of about 1.6% customers per year. I make an assumption of around 5000 customers a year, mainly being young students, aged around 18~30, looking for an opportunity to go online and explore the World Wide Web.

PotentialCustomers | EstimatedGrowthper year | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Kids(15-18) | 2% | 2500 | 2550 | 2601 | 2653 | 2706 | Adolescents(18-25) | 1,50% | 1500 | 1523 | 1546 | 1569 | 1593 | Adults(25-35) | 89% | 750 | 762 | 774 | 787 | 799 | Other | 12% | 250 | 253 | 257 | 260 | 263 | Total | 1,60% | 5000 | 5088 | 5178 | 5269 | 5361 |

Service description
The internet-café 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 the future internet-café customers are listed below: * Access to external POP3 email accounts. * FTP, Telnet, Gopher, and other popular Internet utilities will be available. * Access to Internet Explorer browser or other browsers. * Access to printing. * Access to photocopying * Access to Laminating * Access to Binding * Access to popular software applications like Microsoft Word and other often used applications.

Market Needs
The University of Zambia community foremost needs an internet café since there is a small amount of internet café's present in the area and the area is comprised of a large population. So there is a high demand for an internet café where people can come to, check their email and search the web for information. Also, this café is designed to be an additional source of income for a local school, which is a need for the school itself. The customers at the internet café will also enjoy the freedom of accessing different programs like Microsoft Word and other applications.

Operational Plan
Management summary
An internet-café itself does not require a lot of employees. Therefore the organizational structure isn't too complicated. In this section the intended future organizational structure is further explained.

Personnel plan Position | Monthly salary | Instructor 1 | K500 | Instructor 2 | K500 | Supporting staff member 1 | K450 | Supporting Staff member 2 | K450 | Total | K1,900 |

Break-even analysis
According to our calculations the expected break-even date will after 235 days of the second year. | | Daily Profit | K11,802.33 / 365 = K32.36 | Total Loss 1st year | K7,599.67 | Loss divided by daily profit | K7,599.67 / K32.36 = 235 days | Conclusion | After 235 days in the second yearbreak-even will be accomplished. |

CHILEZ EMPIRE product offerings will be positioned as cost-effective, reliable, operational solutions to the current and future needs of the hectic pace of the retail beverage industry. La Barista and its successors will be the pinnacle in current soluble coffee technology, able to rival the most established roast and ground machines through their superior tasting coffee and superior convenience, speed, consistent output, ease of use and reliability, supported by a committed training and maintenance force. This will enable food chains previously cautious of introducing espresso and cappuccino into their product lines to do so at reduced risk. * Photocopying per page will be priced competitively at n0.20 * This pricing strategy will be very competitive enough to convince customers that they are purchasing an effective high-quality product. Primary research indicates that the target market is not price sensitive. The sales price will return an estimated 39% gross margin on sales. * Laminating will cost K2.50n. * Binding will cost
Benefits of our proposed plan
When comparing our capabilities with that of our competitors, the benefits of choosing CHILES EMPIRE business centre * It comes with improved business model, short time to completion, fast customer delivery, service reliability and above all lower implementation cost.