Internet Cafe Executive Summary Template

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In a world where connectivity is everything, internet cafes play a vital role in bridging the digital divide. Whether you're a digital nomad, a student needing a reliable research hub, or a traveler looking to catch up on emails, internet cafes are the go-to solution. And now, with ClickUp's Internet Cafe Executive Summary Template, managing your internet cafe just got a whole lot easier!

With this template, you can:

  • Keep track of customer usage, revenue, and expenses effortlessly
  • Analyze trends and make data-driven decisions to optimize your business
  • Streamline operations by managing inventory, maintenance, and staff schedules all in one place

Maximize the potential of your internet cafe with ClickUp's Executive Summary Template - your one-stop solution for efficiency and growth.

Benefits of Internet Cafe Executive Summary Template

When it comes to running a successful internet cafe, having an executive summary template can make all the difference. Here are some benefits of using the Internet Cafe Executive Summary Template:

  • Provides a clear and concise overview of your internet cafe's mission, goals, and strategies
  • Helps you effectively communicate your business plan to potential investors, partners, and stakeholders
  • Enables you to analyze and track key performance indicators to measure your cafe's success
  • Allows you to easily identify areas for improvement and make informed decisions for future growth
  • Saves you time and effort by providing a structured framework for creating your executive summary.

Main Elements of Internet Cafe Executive Summary Template

ClickUp's Internet Cafe Executive Summary template is the perfect tool for creating a comprehensive overview of your internet cafe business. Here are the main elements of this Doc template:

  • Custom Statuses: Track the progress of your executive summary with custom statuses tailored to your specific needs, such as Draft, In Review, and Finalized.
  • Custom Fields: Keep important information organized by utilizing custom fields such as Financial Performance, Marketing Strategy, and Customer Satisfaction to provide a detailed analysis of your internet cafe.
  • Different Views: View your executive summary in various formats to gain different perspectives and insights. Choose from options like the Document Outline view, Document Flow view, or even the Table view to present your data in a visually appealing manner.

With ClickUp's Internet Cafe Executive Summary template, you can efficiently create a professional and informative document that highlights the key aspects of your business.

How to Use Executive Summary for Internet Cafe

When preparing an executive summary for your internet cafe business plan, follow these six steps to ensure a comprehensive and compelling document:

1. Introduction

Begin your executive summary with a concise and captivating introduction. Provide an overview of your internet cafe, including its location, target market, and unique selling points. Grab the reader's attention by highlighting the benefits and advantages your cafe offers.

Use the Docs feature in ClickUp to create a professional and well-structured introduction for your executive summary.

2. Market Analysis

Conduct a thorough market analysis to demonstrate your understanding of the industry and your target market. Identify key trends, competitors, and customer preferences. Highlight any gaps in the market that your internet cafe aims to fill.

Utilize the Table view in ClickUp to organize and present your market analysis data effectively.

3. Services and Features

Outline the range of services and features your internet cafe will offer. Include details about high-speed internet access, computer rentals, printing services, and any other unique amenities your cafe provides. Emphasize how these services cater to the needs of your target market.

Use the Board view in ClickUp to visually showcase the different services and features of your internet cafe.

4. Marketing and Sales Strategy

Describe your marketing and sales strategy to attract customers to your internet cafe. Discuss your online and offline promotional activities, partnerships with local businesses, and any loyalty programs or discounts you plan to implement. Highlight your competitive pricing and exceptional customer service.

Utilize the Calendar view in ClickUp to plan and schedule your marketing and sales activities effectively.

5. Financial Projections

Present detailed financial projections to demonstrate the potential profitability of your internet cafe. Include projected revenue, expenses, and profit margins for the first few years of operation. Provide a breakdown of your initial investment and expected return on investment.

Use the Gantt chart feature in ClickUp to create a visual representation of your financial projections and milestones.

6. Conclusion and Call to Action

End your executive summary with a strong conclusion that reinforces the viability and potential success of your internet cafe. Summarize the key points discussed throughout the document and reiterate the value your cafe brings to the market. Include a clear call to action, such as inviting investors or potential partners to contact you for further discussion.

Create a milestone in ClickUp to track and follow up on any actions or responses resulting from your executive summary.

By following these six steps and utilizing the features in ClickUp, you can create a comprehensive and persuasive executive summary for your internet cafe business plan.

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Get Started with ClickUp’s Internet Cafe Executive Summary Template

The Internet Cafe Executive Summary Template is designed to help entrepreneurs and business owners create a comprehensive overview of their internet cafe business.

To get started, follow these steps:

Click on "Add Template" to sign up for ClickUp and add the template to your Workspace. Be sure to specify the Space or location where you want the template to be applied.

Invite relevant team members or guests to your Workspace so they can collaborate on the executive summary.

Take advantage of the various features of this template to create a robust executive summary:

Use the "Market Analysis" section to research and analyze the target market for your internet cafe. Identify your ideal customer profile, understand their needs, and evaluate the competition.

The "Business Model" section will help you define your revenue streams, pricing strategy, and cost structure. Consider whether you'll charge customers by the hour, provide subscription plans, or offer additional services like printing or scanning.

Use the "Marketing Strategy" section to outline your promotional activities, including digital marketing, social media campaigns, and partnerships with local businesses or organizations.

The "Operations Plan" section will help you define the day-to-day operations of your internet cafe, including opening hours, staff requirements, equipment needed, and customer service protocols.

The "Financial Projections" section allows you to estimate your revenue and expenses, create cash flow projections, and determine the profitability of your internet cafe.

Customize the template to fit your specific business needs. Add or remove sections, modify the content, and include any additional information that is relevant to your internet cafe.

Review and refine your executive summary to ensure clarity, accuracy, and professionalism. Proofread for any grammatical or spelling errors and make sure the formatting is consistent throughout.

Share the executive summary with key stakeholders, such as potential investors, lenders, or partners. Use ClickUp's sharing features to send the document via email or generate a shareable link.

By following these steps and utilizing the Internet Cafe Executive Summary Template, you can create a compelling and comprehensive overview of your internet cafe business that will help you attract investment, secure financing, and guide your operations.

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Internet Café Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Technology Sector

Are you about starting an internet cafe ? If YES, here is a complete sample internet cafe business plan template & feasibility report you can use for FREE .

Since the advent of the internet, a lot of other big things have happened to information technology. You too can begin to look at ways to tap into the vast opportunity that exists in this industry. One of the hurdles that is readily needed to be scaled when you are looking to start an internet cafe business is research.

To a very large extent, you will need to carry out some extensive research. This is so that you know what is required of you in the venture that you plan to embark on. Yet another thing that you will need to look at is the business plan aspect. Here below is a sample internet café business plan;

A Sample Internet Café Business Plan Template

1. industry overview.

The internet café line of business is one business that irrespective of the change in trends, is still managing to survive especially when the business is well positioned in a location like airports, campus, public facilities or hotels et al. Simply put, an Internet café, which is also known as a cybercafé, is a place which provides Internet access to the public, usually for a fee.

Most internet cafés usually provide snacks and drinks, hence the café in the name. In an internet café, the fee for using a computer that is connected to an internet facility is usually charged as a time-based rate. The internet café or cyber cafe phenomenon in the united states was started in July 1991 by Wayne Gregori in San Francisco when he began SFnet Coffeehouse Network.

Gregori designed, built and installed 25 coin operated computer terminals in coffee houses throughout the San Francisco Bay Area. The café terminals dialed into a 32 line Bulletin Board System that offered an array of electronic services including FIDOnet mail and, in 1992, Internet mail.

But the first public, commercial American Internet café was conceived and launched by Jeff Anderson in August 1994, at Infomart in Dallas, Texas and was named The High Tech Cafe. After then, three other internet cafés subsequently opened in the East Village neighborhood of New York City: Internet Cafe opened by Arthur Perley, the @ Cafe, and the Heroic Sandwich.

So also in 1996, the Internet café Surf City opened in downtown Anchorage, Alaska. The Internet Café / Cyber Cafe industry is indeed a large industry and there is hardly any airport (international) that you won’t find an internet café that you can either connect your gadget through their Wi-Fi or log on to their computer to surf the net while you wait for your flight.

Though for some players in this industry would prefer to build their call centers in places where they can maximize profits; countries like India, China and The Philippines readily comes to mind

One good thing about starting an internet café business is that, aside from the fact that people will come in to browse the internet and carry out their jobs; you can also generate enough income by engaging in the sale of coffee and snacks.

So all you need to do if you want to maximize your internet café business is to strategically position the business and you will be amazed at the rate people troop to your internet café, not only those that want to browse the internet, but also those who may just want to hang out with friends over a cup of coffee and snacks.

2. Executive Summary

Planet One Cyber Café®, LLC is a one stop, standard and licensed internet café and coffee shop that is fully equipped with the latest technology in the cyber café industry. Our cyber café will be located in the heart of Inglewood, Los Angeles – California, U.S and we are positioned in a location with the right demographic compositions of people who are regular users of public cyber café.

Planet One Cyber Café®, LLC will operate as a standard cyber café where clients are expected to surf the internet at the speed of light, make internet phone calls, conduct teleconference, and scan and send documents online. We also engage in the sale of snacks and coffee, operating a full fledge business center and the sale of data bundle and call cards for various telecommunication providers.

Our business goal is to work towards becoming one of the leading cyber café brands in the whole of Los Angeles and in the nearest future compete with the leaders in the industry not only in the United States but also in the global stage.

We are not ignorant of the fact that building a standard and world class internet café from the scratch requires huge capital base especially for the purchase of world – class and up – to date internet equipment (server, and computers) and software applications et al, which is why we have perfect plans for steady flow of cash.

We can confidently say that we have a robust financial standing and we are ready to take on any challenge that we encounter in the industry. We are well – staffed and well – equipped to run a 24 hours a day and 7 days a week cyber café with a well – planned shift system.

We will ensure that all our employees are selected from a pool of qualified and customer centric people in and around Los Angeles – California and also from any part of the United States.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with other players in the United States and throughout the globe.

At Planet One Cyber Café®, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Planet One Cyber Café®, LLC is owned by Garry Boston and his wife Geraldine Boston. Geraldine Boston is a certified cyber café administrator; she has over 15 years of experience in the internet café / cyber cafe industry. Her husband Garry Boston will be the administrative head of the business.

He has an MBA from University of California and he has occupied senior managerial roles before joining his wife to start Planet One Cyber Café®, LLC.

3. Our Products and Services

Planet One Cyber Café®, LLC is going to offer varieties of services within the scope of the internet café / cyber café industry in the United States of America. Our intention of starting our internet café in Inglewood – Los Angele is to make profits from the internet café / cyber café industry and we will do all that is permitted by the law in the US to achieve our aim and business goals.

Our business offering are listed below;

  • Providing fast and secured internet browsing services
  • Providing cheap and secured international internet calls
  • Providing fast and secured teleconference services
  • Providing document scanning and photocopy services
  • Sale of soft drinks, coffee and snacks
  • Sale of call cards, and internet bundles from various telecom service providers
  • Providing related internet café advisory and consultancy services

4. Our Mission and Vision Statement

  • Our vision is to become the number one public cyber cafe in the whole of Los Angeles, California within the first five years of starting the business.
  • Our mission is to build a world class and well equipped public cyber café brand that will become the preferred choice for a wide range of client ranging from individual client to corporate organizations in the Los Angeles – California.

Our Business Structure

The success of any business is to a larger extent dependent on the business structure of the organization and the people who occupy the available role. Planet One Cyber Café®, LLC will build a solid business structure that can support the growth of our internet café business. We will ensure that we hire competent hands to help us build the business of our dream.

The fact that we want to become one of the leading cyber café brand in the industry in the whole of the United States of America makes it highly necessary for our organization to deliberately build a well – structured business from the onset.

We will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time. Below is the business structure that we will build Planet One Cyber Café®, LLC;

  • Chief Executive Officer

Cyber Café Manager / Cyber Café Supervisor

Admin and HR Manager

  • Marketing and Sales Executive
  • Customer Care Officer / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Responsible for managing the daily running of the cyber café, including sourcing equipment, effective resource planning and implementing cyber café strategies and operations;
  • Carries out needs assessments, performance reviews and cost/benefit analyses;
  • Responsible for setting and meeting performance targets for speed, efficiency, sales and quality;
  • Ensures all relevant communications, records and data are updated and recorded;
  • Advises clients on products and services available;
  • Liaises with supervisors, team leaders, operatives and third parties to gather information and resolve issues;
  • Maintains up-to-date knowledge of industry developments and involvement in networks;
  • Coordinates staff recruitment, including writing vacancy advertisements and liaising with HR staff;
  • Reviews the performance of staff, identifying training needs and planning training sessions;
  • Records statistics, user rates and the performance levels of the cyber café and preparing reports;
  • Handles the most complex customer complaints or enquiries;
  • Responsible for organizing staffing, including shift patterns and the number of staff required to meet demand;
  • Responsible for coaching, motivating and retaining staff and coordinating bonus, reward and incentive schemes;
  • Responsible for forecasting and analyzing data against budget figures on a weekly and/or monthly basis.

Information Technologist

  • Manages the organization website and serve room
  • Responsible for continuous update of our online security platform
  • Ensures that our payment platform is secured 24 / 7
  • Responsible for installing and maintenance of “Private Automated Business Exchanges” (PABX), telephones, computer software and hardware for the organization
  • Manages logistics, Web servers and POS (point of sale) systems
  • Responsible for continuous upgrade and maintenance of IT systems
  • Responsible for generating tickets for the cyber café
  • Handles any other technological and IT related duties.
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of studio equipment by completing preventive maintenance requirements; calling for repairs.
  • Defining job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Designs job descriptions with KPI to drive performance management for clients
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Facilitates and coordinates strategic sessions.
  • Works directly with clients in a non-advising capacity, such as answering questions, scheduling appointments and making sure all training concerns are properly taken care off
  • Oversees the smooth running of the daily office activities.

Marketing and Sales Executive (Business Developer)

  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies business opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of music projects.
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients and music artists
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Help to increase sales and growth for the company
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Client Service Executives / Front Desk Officer

  • Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
  • Distributes mails in the organization
  • Handles any other duties as assigned my the line manager

6. SWOT Analysis

We very much know the importance of knowing the areas we are good at and the areas that we struggle with.  That is the reason why Planet One Cyber Café®, LLC employed the services of a core professional in the area of cyber café consulting and business structuring to assist the organization in building a standard cyber café that can favorably compete with other leading cyber café brands in the United States of America and the world at large.

Part of what the business consultant did was to work with the management of the company in conducting a SWOT analysis for Planet One Cyber Café®, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Planet One Cyber Café®, LLC;

Our core strength lies in our service offerings, the power of our team and the state of the art cyber café equipment and software applications that we have – fast, secured and reliable internet. We have a team that can go all the way to give our clients value for their money.

We are well positioned in the heart of Inglewood, Los Angeles and we know we will attract loads of clients from the first day we open our cyber café for business.

As a new cyber café in Los Angeles, it might take some time for our organization to break into the market and attract some well – established corporate clients; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into the promotion of our business the way we would want to.

  • Opportunities:

The opportunities in the cyber café / internet café industry are massive especially in Los Angeles, and we are ready to take advantage of any opportunity that comes our way.

The truth is that with the advancement of technology and cheaper internet data bundles, it is now easier for organizations to conduct their teleconference from their office and for individuals to purchase internet bundle and browse on their mobile gadgets (smart phones, tablets and pads).

So also, just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new cyber café in same location where our target market exist and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

  • Market Trends

It is known fact that cyber cafés are a natural evolution of the traditional café. As a matter of fact, cafés started as places for information exchange, and have always been used as places to read the paper, send postcards home, play traditional or electronic games, chat to friends, find out local information.

As Internet access is in increasing in demand, many pubs, bars and cafés have terminals, so the distinction between the cyber café and the traditional café is eroded. For instance, in some, countries in Europe, the number of pure cyber cafés is decreasing since more and more normal cafés offer the same services.

However, there are European countries where the total number of publicly accessible terminals is also decreasing. Germany is one good example of such countries where publicly accessible terminal is on the decrease. The reason for this trend is a combination of complicated regulation, relatively high Internet penetration rates, the widespread use of notebooks and PDAs and the relatively high number of wireless internet hotspots.

Lastly, while most cyber cafés are privately own businesses, many have been set up to Help Bridge the ‘digital divide’, providing computer access and training to those without home access. For example, the uk government has supported the setting up of 6000 telecentres.

8. Our Target Market

One of the things that make businesses breakeven is the number of clients that command per time. This is one of the reasons why we will leave no stone unturned in seeing that we get the right words out there to people about what we are doing.

The target market for the cyber café / internet industry is all encompassing because of their service offerings. In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know will need our services.

We have conducted our market research and survey and we will ensure that our cyber café attracts the kind of clients we would love to work with. Below is a list of the people and organizations that we have specifically market our services to;

  • Corporate organizations (basically for teleconference and similar web meetings)
  • All adults in the locations where our internet café is located
  • Students who would need internet facility to fill forms online and to make photocopies and scan documents
  • Job applicants who would need to fill online applications and to forward their CVs and documents
  • All coffee lovers in Inglewood – Los Angeles, California
  • All online gamers in Inglewood – Los Angeles, California
  • People with smartphones, tabs and pads who would want to purchase internet bundles and call cards.

Our Competitive Advantage

We are mindful of the fact that there will always be stiff competition in the cyber café / internet café industry in the United States of America; hence we have been able to hire some of the best business developer to handle our sales and marketing.

Planet One Cyber Café®, LLC might be a new entrant into the cyber café / internet café industry in the United States of America, but we are coming into the industry with core professionals and of course a standard world – class cyber café with the latest equipment and software applications  in the industry. We are well – positioned in Inglewood Los Angeles – California.

Our complimentary services – fully functional business center and coffee and snacks bar will enable us attract loads of customers per time in our cyber café.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category ( startups cyber café businesses ) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

It is the duty of anyone going into business to identify how he/she intends to generate startup funds. It is for this reason that  Planet One Cyber Café®, LLC is established with the aim of maximizing profits in the internet café / cyber café industry and we are going to go all the way to ensure that we do all it takes to attract our target market.

Planet One Cyber Café®, LLC will generate income by offering the following services;

10. Sales Forecast

One thing is certain when it comes to cyber café services; it is always cheaper and reliable for small businesses and start – ups to carry out teleconference or web meetings. This goes to show that any cyber café that is well – equipped and well positioned will always attract corporate clients and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Inglewood – Los Angeles, California and beyond and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base beyond Inglewood to the whole of Los Angeles – California.

We have been able to critically examine the cyber café market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Los Angeles – CA.

Below is the sales projection for Planet One Cyber Café®, LLC, it is based on the location of our business and other factors as it relates to cyber café start – ups in the United States;

  • First Fiscal Year-: $75,000
  • Second Fiscal Year-: $150,000
  • Third Fiscal Year-: $350,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same internet café services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

We will work really hard to see that we attract the type of sales and leads that will make us break even at all times. Cyber café business is not a business that you have to go out there to retail products which is why we must do all we can to maximize any opportunity that comes our way to attract people to patronize of cyber café and coffee bar.

Our sales and marketing team will be recruited based on their vast experience in the cyber café / internet café industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.

We will also ensure that our excellent service delivery (fast, reliable and secured internet access) speaks for us in the market place; we want to build a standard and well equipped cyber café that will leverage on word of mouth advertisement from satisfied clients.

Our business goal is to build our cyber café business to become the number one choice in the whole of Los Angeles – California which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the Inglewood, Los Angeles, but throughout California as well.

Planet One Cyber Café®, LLC is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our cyber café by sending introductory letters alongside our brochure to, residence, organizations and key stake holders in Los Angeles and other parts of the U.S.
  • Advertise our business in relevant magazines, newspapers, TV stations, and radio station.
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local internet café relevant expos, seminars, and fairs et al
  • Create different packages for different category of clients in order to work with their budgets and still deliver top notch services (for teleconference and web meetings)
  • Leverage on the internet to promote our business
  • Engage in direct marketing approach
  • Encourage word of mouth marketing from our loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the cyber café / internet café industry by storm which is why we have made provisions for effective publicity and advertisement of our cyber café. Below are the platforms we intend to leverage on to promote and advertise Planet One Cyber Café®, LLC;

  • Place adverts on both print and electronic media platforms
  • Sponsor relevant TV shows and radio programs
  • Maximize our official website to promote our business
  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat,  Badoo, Google+  and other platforms (music online forums) to promote our business.
  • Offer Pro Bono services to Non – profits Organizations as part of our community social responsibility
  • Ensure that our we position our banners and billboards in strategic positions all around Los Angeles – CA
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations, schools, Non – Profits Organizations and start – ups by calling them up and informing them of Planet One Cyber Café®, LLC and the services we offer
  • Advertise our cyber café business in our official website and employ strategies that will help us pull traffic to the site
  • Brand all our official cars / buses and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

We do not want to overprice ours services, and that is why we will go around and sample the price system of other businesses like our internet cafe business.

The nature of internet café services makes it easier for operators in this industry to charge her clients fees based on the number of hours / time spent; usually this fee is charged based on the discretion of the cyber café. At Planet One Cyber Café®, LLC we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance.

In addition, we will also offer special discounted rates to start – ups, nonprofits, cooperatives, and small social enterprises who engage our services to help them organize teleconference or web meetings / webcast et.

  • Payment Options

At Planet One Cyber Café®, LLC, our payment policy will be all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

  • Payment by via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a cyber café business; it might differ in other countries due to the value of their money.

The bulk of the money that is expected to be spent when setting up a cyber café is in the purchase of equipment and of course leasing / renting a standard facility. However, this is what it would cost us to start Cosmos Call Center Agency, LLC in the United of America;

  • The Total Fee for incorporating the Business in Los Angeles, California – $750.
  • The budget for Liability insurance, permits and license – $2,500
  • The Amount needed to acquire a suitable Office facility with enough space for standard cyber café in a business district 6 months (Re – Construction of the facility inclusive) – $120,000.
  • The Cost for equipping the cyber café (telephone boxes, headsets, server room, computers, software applications, “Private Automated Business Exchanges” (PABX),printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $70,000
  • The Cost of Launching our official Website – $600
  • Budget for paying  at least 3 employees for 3 months and utility bills – $80,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
  • Miscellaneous – $1,000

Going by the report from the research and feasibility studies conducted, we will need about $350,000 to set up a medium scale but standard call center in the United States of America.

Generating Funding / Startup Planet One Cyber Café®, LLC

Planet One Cyber Café®, LLC is going to start as a family business that will be solely owned and managed by Garry Boston and his wife Geraldine Boston. Both of them will be the financial of the business, but may likely welcome other partners later, which is why they have decided to restrict the sourcing of his start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Planet One Cyber Café®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to equip our cyber café facility with state of the equipment, technology and software applications.

Planet One Cyber Café®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check:>Completed
  • Business Incorporation: Completed
  • Renting of Office cum Call Facility: Completed
  • Setting Up Of The Cyber Café Facility: In Progress
  • Intellectual Property Protection and Trademark: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Generating part of the start – up capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed call center equipment, software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with key players in the industry: In Progress

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Internet Cafe Business Plan Template

Written by Dave Lavinsky

internet cafe business plan

Internet Cafe Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their internet cafe companies.

If you’re unfamiliar with creating an internet cafe business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an internet cafe business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Internet Cafe Business Plan?

A business plan provides a snapshot of your internet cafe business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Internet Cafe

If you’re looking to start an internet cafe business or grow your existing internet cafe company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your internet cafe business to improve your chances of success. Your internet cafe business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Internet Cafe Businesses

With regards to funding, the main sources of funding for an internet cafe business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for internet cafe companies.

Finish Your Business Plan Today!

How to write a business plan for an internet cafe business.

If you want to start an internet cafe business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your internet cafe business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of internet cafe business you are running and the status. For example, are you a startup, do you have an internet cafe business that you would like to grow, or are you operating a chain of internet cafe businesses?

Next, provide an overview of each of the subsequent sections of your plan.

  • Give a brief overview of the internet cafe industry.
  • Discuss the type of internet cafe business you are operating.
  • Detail your direct competitors. Give an overview of your target customers.
  • Provide a snapshot of your marketing strategy. Identify the key members of your team.
  • Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of internet cafe business you are operating.

For example, you might specialize in one of the following types of internet cafe businesses:

  • Internet kiosks : In this type of internet cafe business, small kiosks are built and positioned to be temporary internet cafes, as customers who visit the kiosks search the internet for directions, locations and other information.
  • Cyber cafe: A cyber cafe is similar to an internet cafe, although the usage of the internet may be mixed with gaming and internet searches.
  • Gaming cafe: Popular with teens, a gaming cafe offers computers and gaming accessories connected to very high bandwidth, which allows for specialized gaming.
  • Commercial cafe: These internet cafes exist to serve commercial establishments with a need for high bandwidth and dedicated spaces.

In addition to explaining the type of internet cafe business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, the number of commercial contracts on file, or reaching X number of return gamers served, etc.
  • Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the internet cafe industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the internet cafe industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your internet cafe business plan:

  • How big is the internet cafe industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential target market for your internet cafe business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your internet cafe business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, gamer groups, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of internet cafe business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Internet Cafe Business Plan in 1 Day!

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other internet cafe businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes private homes with high bandwidth internet services, video game lounges, and gaming casinos. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

  • What types of customers do they serve?
  • What type of internet cafe business are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide options for multiple rounds of gaming play?
  • Will you offer internet services that your competition doesn’t?
  • Will you provide snacks and other amenities?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a internet cafe business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of internet cafe company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide an internet cafe that serves light snacks and meals, along with a gaming lounge area?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your internet cafe company. Document where your company is situated and mention how the site will impact your success. For example, is your internet cafe business located in a busy retail district, a neighborhood strip mall, or a standalone building near a college? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your internet cafe marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

  • Advertise on radio stations and/or gaming magazines
  • Reach out to websites
  • Distribute flyers to card collector and game stores
  • Engage in email marketing
  • Advertise on social media platforms
  • Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your internet cafe business, including setting up game play for groups, planning and providing internet sessions, billing customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth gaming session, or when you hope to reach $X in revenue. It could also be when you expect to expand your internet cafe business to a new city.

Management Team

To demonstrate your internet cafe business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing internet cafe businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an internet cafe business or successfully running a card and game store.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 30 internet customers per day, and/or offer group gaming sessions? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your internet cafe business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a internet cafe business:

  • Cost of equipment and accessories
  • Payroll or salaries paid to staff
  • Business insurance
  • Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, internet bandwidth, office supplies

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your multi-year contract for internet services or your location lease.

Writing a business plan for your internet cafe business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the internet cafe industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful internet cafe business.

Internet Cafe Business Plan FAQs

What is the easiest way to complete my internet cafe business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your internet cafe business plan.

How Do You Start an Internet Cafe Business?

Starting an Internet Cafe business is easy with these 14 steps:

  • Choose the Name for Your Internet Cafe Business
  • Create Your Internet Cafe Business Plan
  • Choose the Legal Structure for Your Internet Cafe Business
  • Secure Startup Funding for Your Internet Cafe Business (If Needed)
  • Secure a Location for Your Business
  • Register Your Internet Cafe Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Internet Cafe Business
  • Buy or Lease the Right Internet Cafe Business Equipment
  • Develop Your Internet Cafe Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Internet Cafe Business
  • Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Internet Cafe business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan services can give you a winning business plan.

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INTERNET CAFE BUSINESS PLAN: Best 2023 Practices With Template (Updated)

  • by Kenechukwu Muoghalu
  • August 13, 2023
  • No comments
  • 9 minute read

internet cafe business plan

Table of Contents Hide

What is an internet cafe business plan, the importance of having an internet cafe business plan, #1. executive summary, #2. company overview, #3. market analysis, #4 competitor analysis, #5. sales and marketing strategy, #6. financial plan, is an internet café profitable, how do i start an internet café, how do i make my internet café successful, what is the target market of internet café, what are the disadvantages of internet cafe, what are the benefits of an internet cafe, let us develop a plan for you, final thoughts, is running a cafe hard, what equipment do i need to start an internet cafe, does the uk have internet cafes.

The one big secret that can ensure the success of every business is the ability to own a working business plan, including that internet cafe business you are about to start. Starting a business in the UK might be an overwhelming task to undertake, but when a business plan is involved, it helps you narrow down the elements needed to strategize a startup business. It helps you stay focused till a huge amount of growth is attained. Without further ado, let’s go into details on why a business plan is important and how you can create an internet cafe business plan using our unique template. 

We have also constructed a pre-made Internet cafe business plan to help you avoid the process of creating one yourself. 

One can define an internet cafe business plan as a living document that harbours the multiple business ideas you have for your enterprise and then tells you how to achieve them. Before starting your internet cafe business, you need to take your time to explain your ideas via a business plan. The essence of this function is to help you understand all the aspects of your ideas before setting up your internet cafe business to run like a well-oiled machine. 

Imagine having a road map that clearly outlines your business ideas for proper assimilation of the actions you need to take and when you need to take them. Don’t you think your business will experience a quick boost and have a long lifespan? Having a great idea for your internet cafe investment is just the first step. Owning a business plan is the most practical initial step.

Aside from the obvious reasons that were mentioned above, a business plan has other vast benefits. Having an internet cafe business plan can help you come up with a lot of important information and facts, including a variety of internet cafe business ideas. When you have this data in hand, you can then come up with a solid plan of action that can guide you in the near future. You can also easily spot all errors and issues that might hamper the growth of your business. 

A business plan can also help you achieve that when seeking grants or any form of financial assistance. It will make your business look credible and thus give them more reasons to offer you the help you seek. A business plan can also help you understand the type of market you wish to operate in, coupled with the types of services that are more profitable in your environment. Knowing this information will surely set you on the right foot. Having explained these benefits, let’s now focus on how you can create your internet cafe business plan using our template below. 

How To Write an Internet Cafe Business Plan

Constructing a business plan requires that you follow a particular pattern to be able to achieve your desired result. A business plan needs to be written in sections or bits, and each section should have a specific function or purpose. To help you get started, we have carefully buttressed each of these sections that are to be contained in a business plan. This internet cafe business plan template is very easy to use and interactive, and will easily help you create a plan. Let’s go into details.

Your executive summary is the first section of your business plan that is mostly concerned with the briefing of other sections contained in your internet cafe business plan. It is more like a summary of the whole contents of the plan, including market analysis, operational plan, sales and marketing plan, etc. Most of the time, your reader might not have the luxury of reading through your business plan. They might decide to come to this section to get a quick overview. While writing this section, it is advised to use a pitching tone coupled with clear and concise language that your reader will find easy to access. You can also complete this part of your plan after constructing other components. 

A company overview section is where you get to talk about your internet cafe company and how it all started. This section should be a brief background history of your business, who the owner is, the products and services you offer, your multiple business ideas that will enhance the growth of the company, your pricing method, and a host of other questions. This will help your reader understand your business concepts and what you aim to achieve. Just as the name implies, this section should really describe your company.

Before you even get to write this section down, you need to run an actual market analysis on your business. When you hear the term “ market analysis ,” then you should understand that it has to do with in-depth research on the internet cafe market. And the reason behind the process is to easily identify who your client base is and how best to offer your services to them. From this same course, you can also decipher what the market trends are, the cost of goods, and the volatility of prices to aid you in making a better decision that suits the market. Although in this case, computers might come off as consumer staples, you can still get to put other discoveries into use.

When you have gathered enough information, then you can carefully explain your points to your readers, as this will prove how credible and vast you are when it comes to the market industry. 

The competitor analysis and the market analysis are likely the same. The only difference is that this section focuses more on your competitors. In this section, you will have to research other top internet cafe owners in your locality and write about them. Find out what their services are and how they offer them to potential customers, among others. From your discovery, you will be able to pick some points that can also be applied to your business. In all, you should be able to tell your readers how your company is unique compared to others.

The sales and marketing strategies should cover all you plan to do to ensure that you run a smooth marketing campaign and promotional plans while attracting customers and creating awareness for your business. You should be able to list out all the marketing tools you will be employing. Remember that these promotional plans can either be carried out through an online presence or using manual methods. You should discuss how you will offer and deliver your services when these customers finally reach out to you.

To develop the financial plan section of your internet cafe business plan using this template, you need to read through the lines and take proper action. A financial plan is most important when seeking funding from a bank or an investor. This means you will take extra care to provide information that will cause your lenders to approve your startup capital. You need to identify how much you will need to start your business, how the funds will be allocated, and in what areas they will be invested. You will also need to state how you will make massive profits in the near future.  

Yes, you can make large profits from running an internet cafe business. Internet cafes normally come with a short payback period. In essence, it means that you do not need to wait for ages before you start making reasonable returns. If you take all sectors of your business seriously, you will surely succeed while running an internet cafe business.

The process of starting an internet cafe is not much of a big deal, but if you choose to start on the right path, then follow these steps accordingly. 

  • Find a conducive location to set up your business
  • Create a working business plan
  • Get important licenses and permits
  • Get your computers and other equipment right
  • Perform some marketing strategies and give out promotional offers
  • Get to business. 

It is one thing to open an internet cafe, and it is another to make it successful in a vast market where you are merged with numerous competitors. But you can still be afloat by keeping strictly to some steps. To make your internet cafe successful, you need to:

  • Manage your computers and keep them ready for your next customer
  • Offer discounts for selling more login tickets in your internet cafe
  • Having vast options for special and additional services that you can extra-charge
  • Get a game license
  • Give options for multiplayer games 

As an internet cafe owner, you should focus your attention on individuals that do not have access to a computer, the internet, or those that cannot access some functions on their computers. It should be purely based on people who are in need of the services you offer. So, during your marketing campaign, you will need to focus on that audience. It could be a student or an in-house parent that is in need of a fast connection or a large screen. 

Aside from the multiple advantages that come with owning an internet cafe, there are also some disadvantages you should not ignore. It could be an issue of privacy. You will find out that most internet cafes are not secured. This is because if you fail to clear the recent operations that were done on the computer, a stranger might have access to your private information. Other disadvantages might be staffing, risk of failing, and countless responsibilities, among others. 

There are numerous benefits to running an internet cafe. These benefits include: no equipment hassle, low startup cost, the luxury of working from different locations, ease of setup; and a host of others. If you have been having doubts about opening an internet cafe business, then don’t. You shouldn’t forget that you can easily set it up and manage it effectively till it starts yielding profits. 

Most people won’t tell you this, but creating a business plan can be fun and daunting at the same time, especially when it’s your first time trying. 

But because time waits for no man, you have to take the easier route out, and for this reason, we have created a ready-made internet cafe business plan for your convenience. 

Over the years, businessyield consult has specialised in creating professional business plans and, so far, has helped millions of businesses stand on their feet, and we are happy to help you too. Get started here .

Creating a business plan is not an impossible task to perform. Especially when you have all the right facts about your business. You can easily create one for yourself or still reach out for our pre-made option here . Remember that after creating your internet cafe business plan using our unique template above, you should always refer back to it and make a few edits from time to time. Doing this will help you stay right on track. Rightly employing these actions in your new startup will always enhance growth. 

Running an internet cafe comes with numerous responsibilities, no doubt, including handling bustling workdays, working long hours, and handling other difficult moments. But this is mainly faced by beginners who are still having a change in the new environment. Once you settle into it, you will find it less difficult, so don’t be discouraged.  

To effectively run your internet cafe and set it up in the right manner, you need to make provisions for some necessary equipment you will be needing. You will need software, a good number of PCs or computers, a router, a central internet server, chairs and workstation tables, a location, legal licensing from local authorities and labour. 

The UK has a widespread internet cafe brand, with branches open across the country. ranging from small to big brands that make tremendous profits from the services they offer. Even in some remote areas, you would be able to trace businesses that offer web surfing services. 

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Kenechukwu Muoghalu

Kenny, an accomplished business writer with a decade of experience, excels in translating intricate industry insights into engaging articles. Her passion revolves around distilling the latest trends, offering actionable advice, and nurturing a comprehensive understanding of the business landscape. With a proven track record of delivering insightful content, Kenny is dedicated to empowering her readers with the knowledge needed to thrive in the dynamic and ever-evolving world of business.

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Internet Cafe Business Plan

Every business starts with research and planning. The main purpose for writing a business plan is to get aware of those things that you might not have known or thought of yet. Depending on your case, you might be interested in devising a gaming lounge business plan or an esports arena business plan. As these are very close to the concept of Internet cafe we offer to use this as a template, expanding it with additional points where necessary. Besides, in this article you will find many useful information to assist you on the way.

Executive summary

Starting an internet cafe business can be a challenging task, especially if you lack entrepreneuring experience. However, devising a business plan will greatly facilitate you along the way. First of all, it will help you to gather many important information and facts, come up with a variety of internet cafe business ideas, decide on the format, consider pros and cons of this business, and even think about its future development. When getting down to work, the first questions coming to your mind might be whether it is a profitable business, how much does it cost to open an Internet cafe or what equipment do you need to start an internet cafe? This article probably won’t furnish you with a full answer, rather it will give you a general description of internet cafe business, while adding more questions for you to consider.

Internet cafe business overview

An Internet cafe (also cybercafe) is by no means new, yet a still relevant idea. The service of providing the public with a PC along with access to the Internet for a charge has been in expanding request since a long time ago. The first online cafe was launched in 1988 in Seoul and had only two 16-bit-computers connected to the online system of networks. Today internet cafes can be found all around the globe, while their purpose has evolved from basic webmail and instant messaging to multiplayer gaming. Since modern games often require modern computers and expensive gadgets more and more gamers prefer shared-access models over personal ownership.

Depending on location, target audience, and social agenda of the proprietors, cybercafés come in a wide range of formats and can be quite a profitable business. Internet cafes also appear as gaming lounges, cybersports arenas, or PC bangs – equipped with VR headsets, gaming consoles like Xbox and Playstation, and broadcasting esports tournaments on a big screen.

The majority of the entrepreneurs, engaged in this field are men of 22 – 50 years old, who understand computers at the level between the advanced user and system admin. Most of them also enjoy playing online games, keep abreast of new developments in the realm of computers and gaming equipment, be up to date with the latest developments in the cyber industry, follow the news about gaming teams and tournaments. As a rule, these people don’t have a wage job. Their work is focused on Internet cafes, gaming lounge business, bets, and sometimes other related businesses. Usually, these people start with a small budget and gradually increase their income.Those who managed to properly organize their business and make a profit, begin to open a chain of Internet cafes, some sell franchises.

On rare occasions, there are businessmen, possessing entrepreneurial experience from other projects, with a million-turnover, who open Internet cafe out of curiosity and desire to try something new. In this case, they invest a lot of money at once. Often, these business owners are interested in holding tournaments in specially equipped cyber arenas.

There are also those who don’t know anything about this kind of business, rather they’ve been told that opening an Internet cafe business is a way to make money easily and fast.

No matter which group you belong to if you are considering launching an Internet (cyber) cafe you will need to devise a business plan. Hereby we introduce an example of an internet cafe business plan, which can be modified according to your geographies and goals.

esports gamer plays games at cyber arena

Pros & Cons of starting an Internet Cafe

Before establishing a business it is always useful to make up a list of advantages and disadvantages. We have gathered some of them, which are relevant for an Internet cafe business, yet keep in mind, that it might look different in each case, depending on the particular market and the entrepreneurial experience of yours.

  • Business works 24/7. In practice this means that as an entrepreneur you have to be constantly in touch to solve problems that may arise (e.g., violation of the rules by clients, various unforeseeable situations etc.) At least in the beginning you need to be fully involved in order to understand the specifics of the business, the target audience, identify weak spots etc. It is also necessary to be aware of the latest innovations in the field of gaming and esports.
  • It is difficult to scale the business.  Internet cafe business has its limits. Once a company is launched, pays back and starts to bring net profit, there are just a couple of options to scale: either to sell franchises or open a network of Internet cafes. You can establish a business and get a stable income, yet it will always remain at the same level.
  • Regular update/replacement of equipment.  Each product has its life cycle. Since computers in Internet cafes are used constantly, their wear and tear happens way faster. Besides regular maintenance, cleaning, and minor repairs of the computers, it is necessary to completely replace the equipment every 2-4 years. First of all, because of its wear and secondly, due to outdated parameters. Every year new games are released, increasing the requirements to the computer components – processor, video card, memory etc. Fast and powerful computers are one of the reasons why gamers visit cyber cafes. Thus, if you do not update the equipment, you risk to lose part of the target audience.
  • Low budget needed for start.  Compared to other businesses, cyber cafes are generally simple to set up. Main costs for launching an Internet cafe comprise computers, monitors and consoles. An average business with 15-20 computers, will require between $30,000 and $50,000. This is a rather small budget for business, which in time will bring you regular income.
  • Payback after 12 months (average).  Cyber cafe business, you can quickly setup and configure all the processes, provided you thought everything through and made preliminary calculations. The payback of such a business can take from 9 to 14 months. Then you get a net income and can plan to expand. Of course, everything depends on your particular case, and if you add a bar and kitchen in parallel, then it may take more time.
  • Little competition.  15 years ago, when Internet cafes were very popular, there was a big competition. There were many cybercafes where one could go, and there were a few or no empty seats. Today, the focus has shifted, as everyone has a computer at home. Cyber cafes are made for the atmosphere, community, and a possibility to play on professional PCs. The second wave of popularity of cybercafes has just begun, yet still few competitors, which makes it possible to quickly attract the target audience to your place. At the same time, more tournaments are being held every year.
  • Combination with other types of business.  As a rule, the main service of your business will be providing access to the Internet, and/or new games on PCs and consoles. In addition, you can expand your business with related services. If you decided to start a cybercafe business you might face the situations when some of your clients ask for photocopies, printing documents, photos, etc. By simply buying a printer-scanner you can get additional income, while it will also be useful in the daily work of the cybercafe. Also, when players spend more than 3-4 hours in the Internet cafe, they need at least one break to eat and drink. Thus, building a coffee area will bring extra income and allow your clients to spend more time in your cybercafe.

What products and services cybercafe business provides?

When devising a business plan for your Internet cafe it is helpful to distinguish between the primary and additional services.

Primary service  – within this section think of the core service that your cyber cafe company provides. Is it good connection to the Internet, gaming facilities, possibility to use expensive software for a small price, or an equipped coworking space? Pick out one thing that will serve as a pillar for your business, think of it as your unique selling proposition (USP).

While choosing a core service mention in your business plan the impact that it will cause. Speculate on how your customers’ life will be affected by the service(s) that you provide? Maybe you make people happy, satisfied, productive, entertained. You help the local community to stay connected with the rest of the world and fulfil their goals by the help of Internet connection / modern computers / gaming facilities etc.

It might be that your core service will be focused on esports. This field is getting more and more popularity, encouraging e-Sports schools being opened around the world. With this regard, many cybercafes nowadays also provide separate rooms for training esports teams.

Additional products/services.  Now time to brainstorm further. Make up a list of accompanying services that will be offered in your Internet (cyber) cafe and one-by-one write about the impact they are supposed to make for your customers. You can also use the items that were mentioned above, yet were not defined as a primary service. Additionally, you can include the following options to your service list:

  • Cafe serving beverages / snacks / healthy meals
  • Copy center services
  • Private working space (rooms)
  • Kicker, darts, etc.

Once your list of primary and additional services is ready keep it at hand. The next step would be to define their prices. Easily said, but this task will require thoughtful consideration. Besides checking the prices of your competitors and willingness of customers to pay, you will also need to count your expenses and comply with financial goals you set. You should also observe the habits of your customers, and possibly introduce a dynamic pricing scheme (when prices are flexible and depend on the day time and demand). You should also consider introducing system of discounts, special offers for loyal customers etc.

Comparison to competitors

Check your competitors, define their market share, strong and weak spots. This will then help you to find your position or niche on the market, as well as set more realistic goals on sales and profit.

Why should customers choose you over your competitor? This question is very important for defining your unique selling proposition (USP), discovering the pillars of your internet cafe. Check the list below, pick the points that are relevant for your case and expand if necessary.

  • Upscale equipment (laptops, computers, printers, scanners, headsets, consoles (Xbox, Playstation), gaming mice, professional keyboards, additional gadgets- VR glasses, Gaming wheels, controllers etc.)
  • Comfortable gaming chairs
  • Fast and reliable Internet & Wi-Fi hotspots
  • Besides state-of-the-art hardware the computers will also come with professional software (e.g., Adobe Cloud Programs) and gaming platforms (e.g., Steam). Upon customer request, the Internet cafe business can also acquire a license for a particular software.
  • Possibility for open space and private working rooms/cabins
  • Convenient (central, unique, extraordinary) location
  • Fair prices, convenient booking system and payment options, bonuses, client discounts etc.

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Internet cafe business plan introduction

Business name.  Give your internet cafe a name. Be creative, make sure it fits into the whole picture of your business concept. Double-check that it’s different from those of your competitors and easy to remember for your customers. Here you can also consider buying a franchise. In this case, you will build your institution based on the existing internet cafe business model which proved its success. Basically, you will get a ready-to-use guide on how to open an Internet cafe, which will save you time, resources and efforts. However, keep in mind that along with convenience and support that you get as franchisee, you are limited to a certain level in strategic and managerial decisions. Thus, for experienced and ambitious entrepreneurs, nurturing novel and fresh business ideas in mind, franchising won’t be a suitable option.

Legal business structure.  Every business is a legal unit with a specific structure. Think of yours. Will it be a sole proprietorship or a partnership, Limited Liability Company (LLC) or a corporation? Are there any investors involved? While choosing a structure for your business consider such impacting factors as flexibility, complexity, control, permits, licenses, taxes and other regulations.

Brief description of what your business does.  Here you should be able to explain in a nutshell your business concept.

Mission.  Besides making profit your internet cafe first of all should serve a public good. Think of those social solutions that you bring. Your cybercafé can, for example, fulfill the following missions:

  • It provides an easy, reliable, safe and affordable access to the Internet.
  • It serves a meeting place for sharing online experiences.
  • It accommodates a creative and comfortable environment for people to learn, work, play and relax.

What problem does your Internet cafe solve for your customers?  Possible answers here might be the following:

  • bad PCs at home that do not allow people to play at maximum settings or in the latest games;
  • no privacy at home (parents/ partner or children interfere, etc.)

Think of any other relevant points, depending on your case. Maybe it is also useful to conduct a focus group to identify other customer needs.

What results does your internet café create?

  • Customers get things done by means of having a quick, reliable safe and affordable access to the Internet
  • Customers enjoy being in a creative environment, using affordable upscale equipment for their studies, work, gaming or entertainment
  • Customers are happy to have another place for making friends and connections, while sharing their online experiences.

Think of any other relevant points, depending on your case.

How does your internet cafe create those results?  By means of providing necessary equipment (computers, software and access to the Internet) in comfortable premises at a convenient location, offering other services (e.g., food & drinks, open-space and private rooms) to meet customer needs and ensure best-in-class user experience.

Who does your company serve?  Again, think of your Personas. Which customer cluster reflects the main target audience? Are these travelers, students, professionals, gamers etc.? What is their average age? What are their core needs? It is important to remember that the choice of business model and related services will change the target audience, and vice versa. As a rule, the majority of players in cyber cafes are pupils and students. At the same time the related services a cybercafe provides will directly influence the target audience. In case the cyber cafe also sells alcohol, hookahs, etc., the clients will then be different. You can also expand the target audience by means of equipping your Internet cafe with gaming consoles, e.g. Xbox or Playstation.

Why do you do what you do?  Reasons for you to run an internet cafe might be numerous and diverse. Yet try to figure out what it means to you. Maybe you’re an exper t in the field of cybercafes or you possess suitable resources for this business. Maybe there is a sharp demand for such a place, but none or little supply. Maybe you yourself belong to the target audience and know the needs of the customers as no one else. Or it has always been your dream to own an internet café. Sincere answer to this question will help you to understand your motives and plan more realistically not just in a short term, but in a long-term perspective.

PC and console components for an internet cafe

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Internet cafe setup requirements

Think here on your step-by-step plan or proprietary system. List a complex of providers, suppliers, processes, tools, or systems that you own, granting your internet cafe a benefit or competitive advantage. As a basic think of the following:

  • Location (rent or buy or build)
  • Design and renovation of the premises
  • Supply of furniture (tables, chairs, sofas, bean bag chairs) and equipment (coffee machine, vending machines, etc.)
  • Provider of the Internet
  • Supplier of computers, and other devices
  • Software Licenses
  • Supply of additional services (drinks, catering)
  • Team – number of employees, their roles, responsibilities, shifts
  • Internet cafe management software

Here it is relevant to remind that provided you go with the franchise option, the proprietary system as well as the main cyber cafe requirements will be provided by franchisor for you to use. Of course, the terms and conditions might be different depending on the agreement, but the fundamental restrictive unit for the beginning you will get in most of cases.

What are your objectives? (define your goals)  Last but not least – schedule your goals. Elaborate some plans regarding sales, revenue and profit you intend to make. Devise a roadmap of future development of your business. Think of your goals in terms of short-and long-time perspectives. Draft them for 1-year, 2-years, 5-years time span or longer. While setting your goals on the paper use the rule of S.M.A.R.T. In other words, keep your goals Specific, Measurable, Achievable, Relevant and Time-bound.

Market analysis

At this stage, make sure to gather as much information about the market, as possible. Invest enough time to research the general state of matters and trends. A useful technique to apply at this stage would be PESTLE analysis. The name stands for the abbreviation of the components of the analysis and is used to scan the following macro-environmental factors – political, economic, social, technological, legal and environmental. When analysing the above mentioned factors, try to identify the elements within each of them, as well as seek to understand what is their business impact. For example, does the current political situation create a solid basis for you to start the internet cafe business? Is the economic condition favourable for introducing your service to the market? Is the society open/ willing to pay for your service etc.? The following table provides the respective questions to assist you in conducting PESTLE analysis.

Additionally, you can make a SWOT analysis to identify strengths, weaknesses, opportunities and threats for your business.

Market trends & needs

To gather information about your target market turn to statistical data, relevant market reports, professional periodicals, marketing research agencies. While doing your research check the related industries and fields – Online Gaming, Video Streaming, Cyber Security, esports etc. Also look at associated issues in the respective fields: Internet penetration, number of available commercial wi-fi locations and hotspots, number of Internet users, reasons for using Internet etc.

Some introductory data and insights can be found at statista.com. For example, the esports market has been consistently developing in recent years. It is expected to grow further in the next 3-5 years. More and more people nowadays come to watch how their favourite games are being played by world recognized gamers. As indicated by the Newzoo there are determined to be 646 million viewers of esports worldwide by 2023, which is over 30% expansion from the 395 million in 2018.

eSports audience size worldwide 2018-2023 - graphic statistic by statista

The fans are spread over the world, yet the Asia Pacific area is by all accounts a specific hotspot for esports. In the USA, meanwhile, some 9.2 % of web users in 2019 viewed esports, with the figure expected to rise to 15.5 % by 2023.

distribution of eSports viewers worldwide in 2019, by region - graphic statistic by statista

As the statistics show every year more and more tournaments are held, bigger audience is attracted. Thus, while planning a cybercafe business one should keep in mind that the majority of gamers also make bets in the field of gaming and esports.

eSports viewers in United States 2018-2023 - graphic statistic by statista

Internet cafe marketing plan and strategy

Every marketing action – be it a message, flyer, social post or event – is aimed at people. Thus, when devising an internet cafe marketing plan it is crucial to gather as much information about your audience as possible.

Demographics & Psychographics.  Define the demographics of your target audience – what is their age, gender, income, place of living etc. Then collect their psychographic characteristics – such as interests, desires, fears etc. In the process of collecting these data you might come up to the fact that there are several groups / clusters of you TA. Use Personas method to differentiate them. This will help you achieve the goal of your marketing campaigns, improve your lead generation and conversion strategy, as well as offer more suitable products/ services to your clients.

Remember, that a slight detail can make a huge difference. What if a significant part of your customers are vegans, environmental activists living a sustainable life? How can you make their experience in your cafe more comfortable – provide vegan snacks, supplying the place with renewable energy sources, equipping it with eco-friendly furniture etc. The variations are endless here. Your task is to identify the factors that will signify the interest and bonds of the customers to your Internet cafe.

Where can you find your clients?  Where can you find each of them – online or off-line? Think on which online services and social media they use. Do they actively participate in social media groups, do they read expert magazines or do they attend festivals? The clearer picture you will get on this stage the easier it will be for you on the next steps – when drawing marketing strategy (visibility, lead generation and conversion).

Visibility (awareness) strategy.  How people will learn about your Internet cafe – via ads in Google or social media, through paid commercials on TV or in YouTube, by means of influencers, flyers or word-of-mouth? Options and combinations can be numerous. The key factors here are budget and efficacy. You can spend thousands and get zero results, or you can spend almost nothing but hit the target. Look first at the answers from the previous step, identify the channels through which you can reach your audience, compare the prices of the channels. And then build your strategy. Remember, that the advantage(benefit) of digital marketing is that you can test different strategies with relatively low budget, see what works best and then rise the costs. Consider turning to a digital marketing agency if that corresponds to your needs.

Additionally, brainstorm for info drivers and events that can be part of your cybercafe marketing strategy. One of the possible promotion steps for your business can be hosting esports tournaments.

This step requires much thought and effort. The core question here is “How will you establish contact with potential customers?” It is most likely that you will apply digital tools and online marketing. In this case your lead generation will comprise the following elements: content, SEO, promotion, conversion and analytics. Let’s briefly look into each of these.

lead generation strategy graphic that contain: content, seo, promotion, conversion, analytics strategy lists

Content strategy comes first.  This will characterize the story behind your services, the key messages you send to your target audience and, also, the tone of voice in which they will be articulated. The content will be sent through all possible channels you decide for: website, landing pages, emails, social media, blog post as well as Call to Action.

Website strategy.  If your internet cafe can’t be discovered on the web, then it doesn’t exist. In other words to make your cybercafe visible you need to have a website. Besides raising the rating of your Internet cafe, a website is also an excellent informative tool, that helps to attract more clients from organic search. Generally, a website will build trust to your institution from clients and partners. Thus, if one day you decide to grow by selling cyber cafe franchises, a website will be a big plus.

Promotion strategy  as a rule starts nowadays with Social Networks – Facebook, Twitter, Instagram, YouTube, TikTok, Snapchat. Check the most relevant for your type of business. For example, TikTok and Snapchat are the main channels for attracting teenagers, while adults are bound to be found elsewhere. Some question here to help you with the decision are the following:

  • Where can you gather most of your TA (target audience)?
  • Which of those are most efficient with regard to available budget?
  • Which Social Media fits the best to your content strategy and chosen tone of voice?

In case you identify several platforms which are relevant for your internet cafe business it’s then worth trying to try all of them and see which ones work best in your field, region, market. Within your promotion activity you also manage social posts and email communication.

Conversion strategy.  Once you’ve got your leads it’s time to convert them into prospects or customers. The method of communication you decide – be it a phone call, email or personal message in social media. Within this stage you should look at the lead nurturing lifecycle and devise a complex of measures to acquire, keep and grow your customers – e.g. outreach programs, loyalty programs, organisation of events, system of upselling, cross-selling etc.

Analytics strategy.  The essential part of every strategy are the metrics and indicators that help to measure and analyse the results of the steps having been taken. Principal performance indicators are CTR, CPL, (Website) Rate of Conversion, Leads to qualified leads, Leads per channel etc. All the necessary info regarding these and other indicators can be found in the Internet, thus we shall not focus on them within this article.

What you need to keep in mind however, that analytics is an important task, which you better not skip. Once you identify the cost of a lead from each channel, try to reduce it to a minimum without loss in quality. Check the reports and regularly manage your advertising budget. After six months, compare the figures, analyse the amount of money spent on acquired leads to the quality of these leads.

executive summary business plan internet cafe

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Business Plan For Internet Cafe

Congratulations on taking the first step in creating a business plan for internet cafe. This is an essential step towards entrepreneurial success and a well-crafted business plan will provide a solid foundation for your business venture!

Whether you're a budding entrepreneur with a brilliant idea or a seasoned business owner looking to expand, a thoughtfully constructed business plan will help you plan and navigate towards business prosperity.

In this comprehensive guide, we will walk you through the essential elements of creating a business plan for internet cafe that captures your vision as well as attracting investors, partners, and customers alike. From defining your mission and identifying your target market to formulating financial projections and developing a robust marketing strategy, our aim is to empower you with the knowledge and tools needed to turn your aspirations into a reality.

So whether you're just starting out or you're looking to revamp your existing business plan, read on for everything you need to know.

Why is a business plan important?

A business plan will help you think about your internet cafe business like you’ve never done before. This thinking will help you clarify important elements like your long-term goals and objectives. You can then work backwards from your goals to develop strategies and marketing campaigns to help make these objectives a reality.

A business plan will also help you think about your customers in great detail. You will be able to understand their wants and needs, where they hang out, and exactly how you will target them. This clarity will enable you to focus on developing the products or services they want.

Finally, if you are seeking outside capital such as investment or a bank loan, a well-thought-out business plan will show them you are serious about your business and you have developed a clear and thorough plan of action to achieve success.

A Business Plan For Internet Cafe - The Key Parts

The executive summary, your company description, market analysis, products and services.

  • Marketing Strategy
  • Operational Plan
  • Financial Projections

Risk Analysis

  • Funding Request and Use of Funds (if applicable)
  • Additional Information

An executive summary of your business plan for internet cafe is a brief overview of your business plan.

This is the first thing that potential investors or lenders will see, so it is crucial that you make a good impression. Keep this section short and highlight the key points of your plan.

What should an executive summary include?

  • Overview of the Business
  • Mission Statement
  • Key Objectives
  • Summary of Products/Services
  • Financial Highlights and Funding Requirements (if applicable)

Remember potential investors don’t always have huge amounts of time to read your document so make sure that you condense the critical information, enabling the reader to make quick and well-informed judgments. Tips for the Executive Summary

Wait until you’ve written the whole business plan and then come back and complete the executive summary. This way you will know your business plan for internet cafe inside and out so you can highlight the key elements of the document. Remember the Executive Summary will shape the reader's initial perception of the business and whether they continue reading the document.

If you are looking for any tips on how to improve any section of your business plan, check out our Learning Zone , which has several in-depth guides on each section of the business plan.

The Company Description section of your internet cafe business plan is crucial as it offers a comprehensive overview of your business. This section provides essential information about your company's history, mission, vision, legal structure, location, and key milestones. It allows readers to gain a clear understanding of your company's fundamental characteristics and the context in which it operates.

When crafting your company description, make sure to include the following key elements:

  • Business Name and Legal Structure: Clearly state the legal name of the company and its legal structure.
  • Business History: Provide a brief overview of how the business came into existence. Highlight key milestones or events that shaped the company's growth and development.
  • Mission and Vision Statements: Present the company's mission statement, which outlines its purpose and primary goals. Additionally, share the vision statement, which describes the long-term vision and objectives for your business.
  • Products and Services: Briefly explain the products or services your business offers, emphasising their unique selling points and how they address customer needs.
  • Competitive Advantages: Clearly state the competitive advantages that differentiate your business from others in the market. This could include unique features, patents, proprietary technology, or a strong brand presence.
  • Location and Facilities: Provide details about the physical location of your business and any facilities required to operate successfully.

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Tips for writing the company description section:

  • Interweave storytelling into the company's history, tell the reader about your passion for the business and the journey you’ve been on to get to this point.
  • Include strong visuals and infographics.
  • Avoid jargon and keep the writing style clear and concise.
  • Focus on your company's unique selling point (USP) and how that makes you stand out in the marketplace.
  • Back up this information with customer testimonials if possible.

The market analysis section of your internet cafe business plan is essential for understanding the competitive landscape and the overall business environment. It is crucial to execute this section effectively as it demonstrates your in-depth knowledge of the market dynamics. This process will enable you, as an entrepreneur, to identify opportunities, mitigate risks, and develop strategies for success.

To conduct a good market analysis, it is important to have a deep understanding of the industry you are operating in. This information will help you make informed decisions about your product or service offerings, marketing strategies, and pricing.

Key elements to include in your market analysis section:

  • Industry Overview: Provide a general overview of your industry. Describe the industry's size, growth rate, major players, and key trends. Include relevant statistics and data to support your claims.
  • Target Market and Customer Segmentation: Clearly define your target market and outline the specific customer segments you aim to serve. Identify the needs, preferences, and behaviours of each segment.
  • Competitor Analysis: Identify direct and indirect competitors in the market. Analyse their strengths, weaknesses, market share, and strategies. Highlight areas where your business differentiates itself from competitors.
  • Market Trends and Opportunities: Explore current and future trends in the industry and market. Assess how these trends can impact your business positively and identify potential opportunities for growth.
  • SWOT Analysis (optional): Consider including a SWOT analysis specific to your market. This can help you understand your business's strengths, weaknesses, opportunities, and threats in the context of the market.

How to nail the market analysis section?

  • Differentiation: Focus on highlighting how your business differentiates itself from competitors, really try to drum home this point.
  • Market Surveys or Interviews: Adding surveys or interviews and adding the key findings and quotes in the Market Analysis to support your claims will help reinforce the plans in your document.
  • Competitive Matrix: a competitive matrix visually comparing your business against key competitors based on factors such as price, features, and customer service. This matrix is a great visual method highlighting your competitive advantages.
  • Emerging Technologies or Trends: Identifying potential disruptions and how your company is prepared for them shows a great understanding of market dynamics and trends.

Looking for more inspiration on how to make your market analysis section even better, then check out our in-depth business market analysis guide.

In this section, we will highlight the core products and services that make your internet cafe business unique and valuable. It is essential to showcase what sets you apart from the competition and why your offerings are exceptional. This information is especially important for potential investors, partners, and customers who are keen to understand what sets your business apart in the market.

When describing your products and services ensure you include the following information:

  • Description of Products/Services: Provide a clear and concise description of each product or service your business offers. Explain their primary function and how they address customer needs.
  • Unique Selling Proposition (USP): Highlight the unique features or benefits that make your products or services stand out from competitors. Clearly state why customers should choose your offerings over alternatives.
  • Product/Service Life Cycle: Describe where each product or service stands in its life cycle (e.g., introduction, growth, maturity, decline) and outline plans for updates or new offerings in the future.
  • Intellectual Property (if applicable): If your business has any intellectual property (e.g., patents, trademarks, copyrights) related to your products or services, mention them in this section.

Extra elements to make this section stand out:

  • Customer Use Cases: Present real-life customer use cases or success stories that illustrate how your products or services have solved specific problems for customers. Use compelling narratives to engage readers.
  • Product Roadmap: If applicable, include a product roadmap that outlines future updates, enhancements, or new offerings. This showcases your business's commitment to innovation and continuous improvement.
  • Quality and Testing Standards: Discuss the quality standards your business adheres to and any testing processes you conduct to ensure the reliability and performance of your offerings.
  • Pricing Strategy: Integrate your pricing strategy into this section. Explain how you've determined the pricing of your products or services, considering factors like production costs, competition, and value to customers.
  • Environmental and Social Impact: If your products or services have positive environmental or social implications, highlight them in this section. Increasingly, customers appreciate businesses that contribute positively to society.

The Marketing Strategy Section

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Key Information to Include Within the Marketing Strategy Section:

  • Marketing Goals and Objectives: Clearly state the marketing goals you aim to achieve. Focus on how you will increase brand awareness and drive customer conversions or leads.
  • Target Market Strategy: Describe the specific strategies you will use to reach and engage with your target customers. This could involve digital marketing, traditional advertising, or other channels.
  • Pricing Strategy: Explain how your pricing will attract the target market and how it compares to competitors' pricing.
  • Promotion and Advertising Plan: Outline the promotional activities and advertising campaigns you plan to execute. Include details about social media marketing, content marketing, email campaigns, and other promotional tactics.
  • Sales Strategy: Describe your sales process and how you plan to convert leads into paying customers. Mention any sales team structure and their responsibilities if applicable.
  • Customer Relationship Management (CRM) Approach: Discuss how you intend to build and maintain strong relationships with your customers to encourage repeat business and loyalty.

Getting Creative with the Market Strategy Section

  • Create a visual marketing timeline.
  • Outline influencer or brand ambassador partnerships if applicable.
  • Detail key metrics and KPIs.

By infusing creativity and innovative marketing ideas with sound fundamental marketing, you can really make this section stand out and impress potential investors and partners.

The Operation Plan Section

While marketing activities may seem more exciting, operational planning is essential for the success of your internet cafe business. This section focuses on the day-to-day operations and internal processes that drive your business forward. By providing a comprehensive roadmap of your resources, workflows, and procedures, you can instill confidence in potential investors that your business is well-equipped for growth.

Here are some key items to include in your operational plan:

  • Organisational Structure: Describe the organisational structure of the company, including key roles and responsibilities.
  • Key Personnel and Team: Introduce key team members and their qualifications. Highlight how their expertise contributes to the success of the business.
  • Operational Workflow and Processes: Provide a high-level step-by-step overview of delivering your product or service, from production to delivery or distribution.
  • Resource Requirements: Outline the key resources required to run the business, such as equipment, technology, facilities, and human resources.
  • Quality Control and Assurance: Explain how the company ensures the quality and consistency of its products or services, and how it addresses any potential issues.
  • Supply Chain Management (if applicable): If the business involves sourcing materials or products from suppliers, describe the supply chain management process.
  • Legal and Regulatory Compliance: Discuss any legal or regulatory requirements specific to the industry and how the company ensures compliance.

business-plan-for-internet-cafe-dont-forget-your-operational-plans

How to add value to the Operation Plan section:

  • Use visuals to outline organisation structures and workflows.
  • Outline contingency plans, for example how the company is prepared for supply chain shortages or price shocks.
  • Efficiency, efficiency, efficiency. Describe how you have driven efficiency gains for the business.
  • Have you considered your business's environmental impact? If so, mention within this section.

The operational section of a business plan does have the potential to be dryer than more exciting elements such as marketing, however, by incorporating creative elements and forward-thinking workflows you can help keep reader engagement high.

The Financial Projections

The Financial Projections section can make or break a business plan. Always include well-researched and accurate projections to avoid undermining your business plan and losing out on potential investment. What to include in the financial projections section:

  • Sales Forecast: Provide a detailed projection of the company's sales revenues for each product or service category over the forecast period.
  • Expense Projections: Outline the expected operating expenses, including costs related to production, marketing, salaries, rent, utilities, and any other significant expenses.
  • Profit and Loss (P&L) Statement: Present a comprehensive Profit and Loss statement that summarizes the business's revenue, cost of goods sold (COGS), gross profit, operating expenses, and net profit or loss for each year of the forecast.
  • Cash Flow Projection: Include a cash flow statement that outlines the inflows and outflows of cash over the forecast period. This will help identify potential cash flow gaps.
  • Break-Even Analysis: Perform a break-even analysis to determine the point at which the business's total revenue equals total costs, indicating when it becomes profitable.

business-plan-for-internet-cafe-dont-make-claims-you-cant-backup

How to add value to your financial projections section:

  • Be prepared to defend your assumptions with data. If you are planning for a high-growth % make sure you can justify this assumption. If in doubt the more conservative the better.
  • Include visuals that help readers quickly grasp the trends and patterns in revenue, expenses, and profits.
  • Offer different scenarios based on varying assumptions. For example, present a conservative, moderate, and aggressive growth scenario.
  • Include key financial ratios like gross margin, net profit margin, and return on investment (ROI).

The Funding Request and Use of Funds Section

This section outlines the financial requirements of the company and how the requested funds will be utilised to support its growth and operations.  Providing potential investors or lenders with a clear picture of how their money will be used will improve the business case for the funds and provide further confidence to investors. What to include in this section?

  • Funding Request Amount: State the specific amount of funding you are seeking to obtain from investors, lenders, or other sources.
  • Use of Funds: Provide a detailed breakdown of how the requested funds will be allocated across different aspects of the business. Common categories include product development, marketing, operational expenses, hiring, equipment, and working capital.
  • Timeline of Funds Utilisation: Outline the timeline for utilising the funds. Specify when and how the funds will be disbursed and the expected milestones or deliverables associated with each funding phase.
  • Expected Return on Investment (ROI): If applicable, include information on the expected ROI for investors. Highlight the potential for financial gains or equity appreciation over time.
  • Repayment Plan (if applicable): If seeking a loan, provide a clear repayment plan that outlines the repayment period, interest rate, and the proposed schedule for repayment.

How to maximise this section?

  • Create a visual timeline for key milestones such as the initial investment and key payback periods.
  • Outline risk mitigation plans to instil confidence.
  • Reiterate the company's long-term vision and how the funds can help achieve these goals.

As you near the end of your internet cafe business plan, it is crucial to dedicate a section to outlining potential risks. This section holds immense significance as it can greatly influence the confidence of potential investors. By demonstrating your market awareness and addressing challenges head-on, you can instill trust and credibility.

When conducting a risk analysis for your internet cafe car rental business plan, consider including the following:

  • Identification of Business Risks: Enumerate the key risks and uncertainties that could affect the business. These risks can be internal (e.g., operational, financial) or external (e.g. market changes, regulatory changes, economic downturns).
  • Impact Assessment: Analyse the potential impact of each identified risk on the business's operations, finances, and reputation. Rank the risks based on their severity and likelihood of occurrence.
  • Risk Mitigation Strategies: Present specific strategies and action plans to mitigate each identified risk. Explain how you will proactively address challenges and reduce the negative impact of potential risks.
  • Contingency Plans: Describe contingency plans for worst-case scenarios, outlining how the business will respond and recover from significant risks if they materialise.

How to make your risk analysis stand out?

  • Add context with real-life examples. Are there similar businesses that have dealt with risks successfully in a similar manner to your strategy? This will add credibility to this section.
  • Create adaptive strategies that demonstrate your business’s flexibility and adaptability.
  • Outlining the responsible person for each risk and how they own it, giving further confidence in your risk management strategies.

Some additional information you may want to include in your business plan for internet cafe:

  • Customer Surveys and Feedback
  • Letters of Support or Intent
  • Legal Documents (e.g., licenses, permits)
  • Resumes of Key Team Members

A Business Plan For Internet Cafe Wrapping It All Up

A business plan is one of the most important documents that you will create about your business. It can literally be the difference between securing additional finance or missing out. Developing your business is not an easy task, however, the opportunity to think about your business in such detail will no doubt help you develop new and important insights along with new ideas and strategies. With all sections of your business plan and especially the financial plan, be prepared to defend your position to potential investors or lenders. This means that you should never publish anything that you can’t back up with additional data or rationale. Business Plans are not created overnight so take the time to research and think about each section properly, always try to support your claims and strategies with market insight and data. We hope you’ve enjoyed reading this guide, if you are looking for more tips on creating a business plan check out our learning centre .Good luck with your next business endeavour! Action Planr

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Cyber-Café Business Plan Template

Published Feb.14, 2018

Updated Apr.22, 2024

By: Brandi Marcene

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executive summary business plan internet cafe

Table of Content

Are you planning to open an internet café ?

Internet penetration across the globe has grown exponentially and everyone these days relies on a stable internet access for both work and play. Even though the latest technologies including mobile technology is widely used across the world, there is still a high demand for good quality internet cafes offering superior quality service. People want to walk into a professionally managed facility with fast-speed internet infrastructure.

For a cyber café business to succeed, the first step is to have a well-structured business plan that will guide the entire process of business set-up. Before embarking on a starting a cyber café, you need to have a well-laid out business plan that will effectively take care of all issues that need your attention.

In case you aren’t sure of how to come up with a professional business planning for your cyber café company, here is a detailed sample plan written for an upcoming cyber cafe, YellowNet in Manhattan.

Executive Summary

The Cyber Café Business

2.1 The Business

YellowNet Cyber Café will be located on Street X in downtown Manhattan which is an busy area with a lot of activity. The neighborhood was selected because it is the heart of business, leisure and entertainment activities. With a number of world famous landmarks within the vicinity, it is the perfect place to open internet café business . The café is situated within one of the world’s busiest Central Business Districts. The internet café will be situated in close proximity to world renowned landmarks such as The Metropolitan Museum of Art, Central Park, Empire State Building and One World Observatory among others. The location was selected to serve city dwellers as well as visitors and tourists.

YellowNet will be run by Michael Thicke and his wife. Michael has extensive experience working for various Internet Service Provider companies while his wife has worked with various business management consultancy firms. With experience in the internet service provision and business consultancy, the couple is well versed with intricate details of how to open an internet café and successfully run it. Michael knows too well he has to be innovative and think outside the box to offer a unique and exemplary service that meets the demands of his customers. Michael will be in charge of the day-to-day running of the cyber café business. He has studied other similar business models to craft a winning strategy for starting an internet café .

Cyber cafe business plan - 3 Years Profit Forecast

2.2 Objectives

YellowNet Cyber Café has set up its objectives it intends to achieve the following in the first three years of operation. The objectives have been summarized as follows:

  • Creation of a cozy, unique and quiet environment different from other competitors where customers can comfortably enjoy services.
  • Make the community aware on what services the cyber café offers.
  • Ensure the environment is conducive and can accommodate people with diverse beliefs, cultures and backgrounds.
  • Provide great coffee and sumptuous bakery items at affordable prices.

2.3 Keys to Success

The following risks have been identified with starting YellowNet:

  • Is YellowNet in Manhattan providing services which are in demand?
  • Will internet craze continue to become popular in order to support the café’s growth?
  • Will customers be willing to part with their money for YellowNet’s services?
  • Will the cost of home internet drop so significantly that YellowNet will no longer find customers interested in Internet café services?
  • Will access of internet via mobile platforms become so popular that customers will prefer to instead use their mobile gadgets to access the internet?

2.5 Company Targets and Forecasts

Michael’s target is to become the best internet café in New York and be a trendsetter by providing a unique, highly-customized and professional service. Michael has forecasted a 15% market share and calculated an average gross and net profit margin expected in the next three years. He strongly believes in his business model which will gradually begin with lower net margins, but pick up to bring in a good net profit margin in the second and third year.

Company Summary

3.1 who is the owner.

  • YellowNet is owned and operated by Michael Thicke.
  •  He has vast experience in the internet service provision industry spanning a total of 12 years.
  • Throughout his life, Michael has worked for various internet service providers, and therefore thoroughly understands how the industry works.
  • Michael is a graduated with a degree in Information Technology from Pace University in New York, He also holds an MBA from Columbia Business School.
  • Working in the technology division, Michael was instrumental in the SME technical support division.
  • During the course of his career, he helped several local small businesses successfully set up their internet infrastructure.
  • He rose through the ranks and served as an IT Manager in the various companies that he worked for.

3.2 Why did he start his business?

  • Having been in the industry for long, Mike knew how to start a internet café.
  • Despite increase in domestic internet use, he knew there was still a demand for cyber cafes especially in densely populated areas of the city.
  • He had seen how other cyber cafes operated and seen the loopholes he could exploit to offer a unique and customized service.
  • There was need to offer a great internet facility where residents, visitors and tourists could access high-speed internet services in NYC City.
  • Online gaming inspired Michael to think about starting a gaming café where he could provide a cozy environment for customers looking to have fun online.

3.3 How the business will be started

The total startup cost for YellowNet will be drawn for Mike’s personal savings which he has accumulated during his career life. However, there is a funding shortfall which will be covered by a loan.

The proposed site for the business will be on 3rd avenue Manhattan and will be leased for an initial period of 2 years from June 2018 with an option to extend. Reasons for choosing 3 rd avenue include;

  • Proximity to a large downtown business community
  • Close to major tourist attractions frequented by many tourists
  • Availability of sufficient parking
  • Reasonable rent rates compared to other areas of the city
  • Premises is strategically located and highly visible

Even though Michael has been in the internet service provision industry, he plans to hire five additional staff to help in running the internet café.

Cyber cafe business plan - Startup Cost

Services for Customers

YellowNet will be a professionally managed and equipped with the latest cutting edge technologies to meet the demands of clients. In a bid to stand out as a unique and modern establishment, the business intends to go an extra mile and cultivate strong relationships with its customers. The intention of offering a wide variety of services under one roof is to offer clients the best value for money, and at the same time make profits in accordance to the law,

The quality of service is expected to be exemplary right from accessing the internet to general customer service etiquette. The target is to ensure customers enjoy themselves while at the facility and look forward to coming back again.

Products and services to be offered at YellowNet include:

  • Offer fast and secure internet browsing services
  • Help clients access reliable and affordable international internet calls
  • Avail the required hardware and software to facilitate video teleconference services
  • Provision of document printing and scanning services
  • Offer highly sophisticated infrastructure for computer gaming
  • Sale of call cards and internet bundles from various service providers
  • Offer caffeine, snacks and various types of soft drinks
  • Provide consultancy and advice in internet related services

YellowNet has invested heavily in a wide array of internet applications. As part of internet café business introduction strategy, the establishment intends to harness the latest technologies to ensure the business is fully technology compliant.

With the realization that many people are increasingly becoming keen on online gaming, Michael is keen on branding his business as a computer game café with the best gaming applications you cannot find anywhere else.

In future, YellowNet intends to establish a small internet training center that will offer learners a chance to be trained by experts on how to effectively use the internet.

Marketing Analysis of Cyber Café Business

Comprehensive cyber cafe business plans always offer a detailed analysis of the target market. YellowNet is expected to operate in a highly profitable environment that will allow the business be a trendsetter in the cyber-café industry. With a growing number of people embracing the coffee culture and more people looking for fast internet facilities, the business caters for both groups. This is no doubt an excellent concept that is poised for success. This internet café business model is a combination of two related businesses under one roof.

5.1 Target Market Segment

YellowNet intends to offer people looking for somewhere quiet, comfortable and cozy to browse the internet. The establishment admits both experienced internet users as well as novices willing to gain knowledge on utilizing the internet. YellowNet’s customers can be divided into two broad categories. The business is targeting an age group of between 18 to 60 years and beyond.

Group One consists of customers who are internet savvy and are just looking for a comfortable and inviting facility aside from their homes and offices to browse the internet and enjoy a cup of coffee and snacks. Group Two consists of customers who aren’t yet familiar with the internet but for various reasons, have to visit an internet café to accomplish various tasks.

Basically, anyone who has a passion for computers and internet is a potential customer. Because many people have internet at home or on their mobile gadgets, it is difficult to find a social setting especially in the Central Business District where you can access high-speed internet.

YellowNet intends to target both local and travellers who wish to check their emails, work or play games in a friendly environment. Customers coming into the premises will either use YellowNet’s PCs or plug in their notebooks and tablets into internet ports. The business targets a wide demographic; from youngsters who’re computer savvy to computer novices who’ve realized computer and internet knowledge is a must have.

This well-laid out internet café business plan focuses on these market segments:

5.1.1 University Students

University students are an important target niche in this cyber cafe business plan because they’re always in constant need of internet access and various computer programs. Because they’re always working on projects and assignments, they will find it helpful to work from a cyber cafe where they can have access to unlimited internet. Because they don’t earn an income, students might not be able to afford to pay for home internet packages and therefore, will opt for an internet café which could be cheaper.

In addition, they’re always in need of scanning, printing and document preparation tasks. On many occasions, students remain in the cyber café for extended time are an excellent target for YellowNet. The growing number of students in universities means there is a steady demand for quality yet affordable internet service.

5.1.2 Office Workers

These are professionals who either reside in New York City or travelling professionals who have visited NYC for conferences. Modern career professionals are always on the move and require quick access to fast internet and other cyber-related utilities to effectively perform their work. Often they will need a quiet, well managed and professional internet café to either read work emails, print, scan or work with diverse applications such as Google, Microsoft Office and Adobe Photoshop. YellowNet understands office workers are sensitive and knows too well professionalism must be top-notch.

5.1.3 Teenagers

Teenagers are excited with anything to do with technology landscape. Therefore, they are a major target for YellowNet. If you’re thinking how do internet cafes make money , you cannot afford to ignore teenagers. These tech savvy youngsters want to be online the entire day playing online games, chatting online and posting photos and multimedia content on social networks. For them, life without internet is worthless. YellowNet intends to always have the newest hardware and software to facilitate intensive online gaming sessions.

5.1.4 Seniors

Seniors are not so much fascinated about computers and the internet. However, they do need to accomplish tasks that require them to visit an internet café. In most cases, seniors are a unique but very lucrative target niche for any cyber related business. Because of their old age, they need somewhere comfortable and friendly to access the internet. In most cases, they will need to be assisted by employees to accomplish various tasks such as browsing, printing and scanning. Seniors always need good customer service because they’re sensitive and require staff to be patient with them.

Cyber cafe business plan - Market Segmentation

5.2 Pricing of Packages

YellowNet offers competitive pricing after carefully evaluating the pricing structure for competitors. Since the business targets middle income customers, prices have been structured to effectively cater for this economic and social group.

A summary of YellowNet Prices is indicated below:

  • Browsing per Minute $0.05
  • Document Printing Per Page $1
  • Scanning per Page $2
  • Gaming Per Hour $5
  • Special Packages $2 per hour (After browsing for three hours)

Prices are client-conscious in order to allow them see value in services offered by YellowNet. There are also special packages in place for those who wish to browse the internet for extended hours or print large volumes of documents. Prices outlined in this business plan are friendly to both the customer to ensure they get the best value for their money, while at the same time ensure the business makes good profits from services rendered.

5.3 Business Target of the Company

While there are many internet cybers operating , YellowNet plans to follow a business strategy services that will deliver good results for the business. Before setting up shop, the business has analyzed customer demand, trends and behaviors in order to respond better to their needs.

Fortunately, YellowNet is the first cyber café to be set up on 3 rd Street and enjoys a niche-market that extends over one kilometer. The business targets to enjoy great advantages especially in brand recognition and customer loyalty. Initially, the company will command an almost 100 percent market share in the immediate surroundings. However, in the next couple of years, chances are high, other internet cafes may open. The goal is to still retain over 70% of the market share in the wake of competition.

After doing extensive market research, the following was concluded:

  • YellowNet cyber will need to adjust its working hours in order to get more clients. For instance, the cyber will open earlier that competitors and remain open till late after other internet cafes have closed.
  • Charge a slightly lower browsing, printing and scanning rates compared to what others are offering their clients.
  • There will be a large number of clients visiting the premises especially when international conferences, shows and exhibitions are taking place in the surrounding.
  • The cyber will be extremely busy especially during the weekends and weekday evenings as people seek somewhere to browse the internet and socialize as they enjoy a cup of their favorite drink.
  • A lot of customers particularly those reading emails only will visit the premises for a shorter period of time compared to those doing research and projects.
  • Always have admin on duty to assist special customers especially seniors and those who may need someone to quickly respond to general enquiries.
  • Fully implement this gaming café business plan to ensure YellowNet is popular for online gaming as its latest catch especially amongst the youth.

Without a solid strategy, opening an internet café will be a failed mission. In this section, we look at the strategies that YellowNet intends to put in place to ensure it meets its expectations. This cyber has formulated three key strategies which include;

  • Focus on attracting a higher number of novice internet users with a friendly and accommodating environment that doesn’t make novices feel intimidated. YellowNet aims to put in place training opportunities to grow and maintain a loyal customer base.
  • Attract more Power Internet users who’re extremely knowledgeable when it comes to using the internet. This is an important customer segment for YellowNet as they’re always in need of cyber café services. Their web-browsing experience makes them to be admired by novice internet users.
  • Focus on establishing a friendly and comfortable social setting for YellowNet customers. A good social environment incorporates entertainment attracting customers that would ordinarily not need to access the internet from a cyber café. Once in the cyber, these customers should find an entertaining environment that will make them realize how fun it is to access the internet in a cyber café.

6.1 Sales Strategy Pyramid

The following points outline specifics on how YellowNet will implement the three strategies outlined above. Strategy pyramid graphics can be found in the appendix section of this plan.

6.1.1 Attract Power Internet Users

This strategy will place more emphasis on putting in place initiatives that will attract power internet users. These users are critical to the success of YellowNet and the following strategies will be used to attract these customers;

  • Stay abreast and offer the best computing technologies; these users love using the latest technologies.
  • Offer printing and scanning services
  • Allowing clients to access powerful software applications.

6.1.2 Offer a Social Hub

This strategy lays emphasis on building a safe, nice and friendly environment for YellowNet customers. Starting a cyber café goes beyond just offering PCs and internet.

  • The cyber will focus on availing standard entertainment facilities on the premises to entice more customers to come in. Soon clients who come in to enjoy entertainment will realize there is fast internet on site that they can utilize.
  • Invest in beautiful and well-designed sitting areas, tasteful furniture and decorate appropriately with lively themes that promote comfort.

6.1.3 Entice Novice Internet Users

YellowNet’s sales strategy involves reaching out to more novice internet users. This is a lucrative market that many cyber café business plans tend to neglect. Even though these customers don’t have browsing experience, they can be transformed into loyal cyber café customers. YellowNet intends to attract novice customers by:

  • Ensure YellowNet is known for a novice friendly environment. The facility will be staffed by knowledgeable and experienced personnel to ensure novice customers feel welcomed and their needs are promptly attended to.
  • A customer service desk will be manned by YellowNet personnel throughout to offer any help in case a customer has a question or wishes to raise a concern.
  • YellowNet hopes to introduce internet and email classes for beginners. The goal of these classes is to help novice users familiarize themselves with internet browsing and how to use computer systems available at the cyber café.

6.2 SWOT ANALYSIS

The purpose of SWOT analysis is to enable us understand both internal strengths and weaknesses that YellowNet must deal with. It also points out opportunities available for the business as well as the potential threats.

YellowNet has numerous strengths and advantages that will offer the business a competitive advantage and drive success. Before the plan to start an internet café was initiated, adequate market survey was done to identify the strengths, weaknesses, threats and opportunities.

6.2.1 Strengths

  • Well trained, professional and friendly staff. YellowNet has gone an extra mile to hire and train staff who have a passionate to train and help clients.
  • High-tech equipment which includes super-fast PCs, flat screen displays and high quality printers.
  • Fine ambience. Every customer who walks into YellowNet should immediately feel comfortable and welcomed.
  • A well-laid out vision as YellowNet knows what it takes to effectively meet client needs.

6.2.2 Weaknesses

  • Rapid changing technologies means YellowNet has to always keep abreast of the latest technology.
  • Significant expenses associated with keeping sophisticated hardware and software. YellowNet must -find ways to balance technology with other key business needs.

6.2.3 Opportunities

  • Rapid population increase of internet users means more people will need YellowNet services.
  • Social bonds and networks built as a result of the internet gives the business a platform to grow communities by establishing dedicated chat areas and community programs.

6.2.4 Threats

  • Massive reduction of internet access costs. The cost of internet is dropping rapidly and may end becoming cheap that nobody may be willing to visit a cyber café. YellowNet is aware of this reality and will constantly monitor pricing.
  • Emerging local competition: In future, new cyber cafes will be opened but YellowNet is well-prepared to take on this challenges.

6.2.5 Competitors

  • Because of Michael’s experience in the internet service provision industry, YellowNet has a competitive advantage over other cyber cafes.
  • The business has a unique sales and marketing strategy that effectively addresses how do internet cafes work in a highly competitive environment.

6.2.6 Sales Forecast

  • YellowNet Cyber is expected to get a regular influx of customers throughout the day and the sales are expected to vary from day to day and month.
  • YellowNet has based projected internet sales based on number of hours every terminal is active. Coffee and espresso sales are based on a financial data provided by Kobrick Coffee Company.

Cyber cafe business plan - Sales Forecast

6.2.8 Milestones

The Yellow Net Cyber Café has come up with some basic milestones to keep the business priorities in check. Responsibility of implantation will be overseen by Mike Thicke and his wife Tracy Thicke, who is the manager of the business. The milestone table below will be updated with an actual table as the year progresses.

Cyber cafe business plan - Milestones

Personnel Plan

Michael Thicke is the CEO and Owner of YellowNet Cyber. He manages and oversees all daily activities in the internet café. Mike will be helped by his wife Tracy, who is the Manager and will oversee financial books for the business. Both Mike and Tracy are responsible for making key management decisions.

Three staff members are Admin Assistants working part-time earning $7.00 per hour for 30 hours per week. There is one full-time technician working 40 hours per week at $12 per hour. The role of the technician is to offer technical support to clients and fix minor terminal bugs while Admin Assistants perform general administration duties. Intensive interviews and training is done to ensure only qualified personnel work in the establishment.

The simple staff structure ensures efficient distribution of duties and seamless workflow. It also allows better communication among team members to facilitate quick decision making. YellowNet management knows the secret to success is how to start your own internet café business with minimal but efficient personnel.

The following table is a representation of employee salaries for the next three years.

Financial Plan

YellowNet has developed the following financial plan which outlines how this cyber will achieve its financial goals within first three years. A financial way forward of how to start an internet cafe is essential to help the business realize its financial targets. There are plans in the pipeline to launch other establishments in NYC. For this to happen, the company must formulate a workable financial plan that will drive success.

8.1 Important Assumptions

Basic assumptions are indicated in the table below. These assumptions are expected to show variations due to various factors, but the result will not have any significant effect on the company’s financial strategy.

8.2 Brake-Even Analysis

Brake-even data for YellowNet is illustrated in the chart and table below.

Cyber cafe business plan - Brake Even Analysis

8.3 Projected Profit and Loss

Payroll Expense: The founder of YellowNet, Michael Thicke will get a salary of $26,000 in year one, $28,000 in year two, and $30,000 in year three. YellowNet has put in place plans to hire 3 part-time after first year ends for $6 per hour while a full-time technician will earn $12 per hour.

Lease Expenses: The facility intends to lease a 1,500 square foot facility at $1.875. According to the lease agreement signed by YellowNet, rent due every month totals to $800 for a total of 24 months. After five hundred and twenty days, the lease is availed for consideration. Right to renew or cancel the agreement is based on issues at hand.

Utilities Expense: As indicated in the signed lease agreement, the lessor is responsible for utility payments which include; real estate taxes, gas and garbage disposal among others. YellowNet is expected to cater for the internet cafe business phone bill expenses.

Marketing Expenses: YellowNet has allocated $20,000 for promotion related expenses for year one. This money will cater for placing adverts in local dailies to boost customer awareness.

Insurance Expenses: YellowNet Cyber has allocated $7,000 for insurance for the first year, second and third year. In future, the business intends to spend more on insurance coverage.

Taxes: Since YellowNet is an LLC, it is not taxed but there is a 15% payroll obligation.

A Comprehensive profit and Loss data is illustrated in the table below.

Cyber cafe business plan - Profit Monthly

8.4 Projected Cash Flow

YellowNet’s projected cash flow is shown in the table below.

Cyber cafe business plan - Projected Cash Flow

8.5 Projected Balance Sheet

YellowNet’s projected balance sheet is shown in the table below.

8.6 Business Ratios

The SIC (Standard Industrial Classification) code for Internet Service Provider Industry is “Remote data base information retrieval “7375.9903. “information retrieval services” 7375 report was used to generate the industry profile. YellowNet is also a food café so it could have used “Eating Places” ratios based on SIC classification 5812. YellowNet Café belongs to two business segments that makes the ratios a combination of two industries.

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executive summary business plan internet cafe

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Internet Cafe Business Plan

By using this sample business plan you can see what goes into starting an internet cafe..

ExpertHub Staff

Related Topics

E-commerce internet sample business plan, computer repair business plan, integrated communications sample business plan.

Click here to view this full 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 customer base that will allow it to be self sufficient in year two.

1.1 Objectives

JavaNet’s objectives for the first three years of operation include:

  • The creation of a unique, upscale, innovative environment that will differentiate JavaNet from local coffee houses.
  • Educating the community on what the Internet has to offer.
  • The formation of an environment that will bring people with diverse interests and backgrounds together in a common forum.
  • Good coffee and bakery items at a reasonable price.
  • Affordable access to the resources of the Internet and other online services.

1.2 Keys to Success

The keys to the success for JavaNet are:

  • The creation of a unique, innovative, upscale atmosphere that will differentiate JavaNet from other local coffee shops and future Internet cafes.
  • The establishment of JavaNet as a community hub for socialization and entertainment.
  • The creation of an environment that won’t intimidate the novice user. JavaNet will position itself as an educational resource for individuals wishing to learn about the benefits the Internet has to offer.
  • Great coffee and bakery items.

1.3 Mission

As the popularity of the Internet continues to grow at an exponential rate, easy and affordable access is quickly becoming a necessity of life.

JavaNet provides communities with the ability to access the Internet, enjoy a cup of coffee, and share Internet experiences in a comfortable environment. People of all ages and backgrounds will come to enjoy the unique, upscale, educational, and innovative environment that JavaNet provides.

The risks involved with starting JavaNet are:

  • Will there be a demand for the services offered by JavaNet in Eugene?
  • Will the popularity of the Internet continue to grow, or is the Internet a fad?
  • Will individuals be willing to pay for the service JavaNet offers?
  • Will the cost of accessing the Internet from home drop so significantly that there will not be a market for Internet Cafes such as JavaNet?

Company Summary

JavaNet, soon to be located in downtown Eugene on 10th and Oak, will offer the community easy and affordable access to the Internet. JavaNet will provide full access to email, WWW, FTP, Usenet and other Internet applications such as Telnet and Gopher. JavaNet will also provide customers with a unique and innovative environment for enjoying great coffee, specialty beverages, and bakery items.

JavaNet will appeal to individuals of all ages and backgrounds. The instructional Internet classes, and the helpful staff that JavaNet provides, will appeal to the audience that does not associate themselves with the computer age.

This educational aspect will attract younger and elderly members of the community who are rapidly gaining interest in the unique resources that online communications have to offer. The downtown location will provide business people with convenient access to their morning coffee and online needs.

2.1 Company Ownership

JavaNet is a privately held Oregon Limited Liability Corporation. Cale Bruckner, the founder of JavaNet, is the majority owner. Luke Walsh, Doug Wilson, and John Underwood, all hold minority stock positions as private investors.

2.2 Start-up Summary

JavaNet’s start-up costs will cover coffee making equipment, site renovation and modification, capital to cover losses in the first year, and the communications equipment necessary to get its customers online.

The communications equipment necessary to provide JavaNet’s customers with a high-speed connection to the Internet and the services it has to offer make up a large portion of the start-up costs. These costs will include the computer terminals and all costs associated with their set-up.

Costs will also be designated for the purchase of two laser printers and a scanner. In addition, costs will be allocated for the purchase of coffee making equipment. One espresso machine, an automatic coffee grinder, and minor additional equipment will be purchased from Allann Brothers.

The site at 10th and Oak will require funds for renovation and modification. A single estimated figure will be allocated for this purpose. The renovation/modification cost estimate will include the costs associated with preparing the site for opening business.

2.3 Company Locations and Facilities

A site has been chosen at 10th and Oak in downtown Eugene.

This site was chosen for various reasons, including:

  • Proximity to the downtown business community.
  • Proximity to trendy, upscale restaurants such as West Brothers.
  • Proximity to LTD’s Eugene Station. Parking availability.
  • Low cost rent – $.85 per square foot for 1700 square feet.
  • High visibility.

All of these qualities are consistent with JavaNet’s goal of providing a central hub of communication and socialization for the Eugene community.

JavaNet will provide full access to email, WWW, FTP, Usenet and other Internet applications such as Telnet and Gopher. Printing, scanning, and introductory courses to the Internet will also be available to the customer. JavaNet will also provide customers with a unique and innovative environment for enjoying great coffee, specialty beverages, and bakery items.

3.1 Competitive Comparison

JavaNet will be the first Internet cafe in Eugene. JavaNet will differentiate itself from the strictly-coffee cafes in Eugene by providing its customers with Internet and computing services.

3.2 Service Description

JavaNet 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 JavaNet customers are listed below:

  • Access to external POP3 email accounts.
  • Customers can sign up for a JavaNet email account. This account will be managed by JavaNet servers and accessible from computer systems outside the JavaNet network.
  • FTP, Telnet, Gopher, and other popular Internet utilities will be available.
  • Access to Netscape or Internet Explorer browser.
  • Access to laser and color printing.
  • Access to popular software applications like Adobe PhotoShop and Microsoft Word.

JavaNet will also provide its customers with access to introductory Internet and email classes. These classes will be held in the afternoon and late in the evening. By providing these classes, JavaNet will build a client base familiar with its services.

The computers, Internet access, and classes wouldn’t mean half as much if taken out of the environment JavaNet will provide. Good coffee, specialty drinks, bakery goods, and a comfortable environment will provide JavaNet customers with a home away from home.

A place to enjoy the benefits of computing in a comfortable and well-kept environment.

3.3 Fulfillment

JavaNet will obtain computer support and Internet access from Bellevue Computers located in Eugene. Bellevue will provide the Internet connections, network consulting, and the hardware required to run the JavaNetwork.

Allann Brothers will provide JavaNet with coffee equipment, bulk coffee, and paper supplies. At this time, a contract for the bakery items has not been completed. JavaNet is currently negotiating with Humble Bagel and the French Horn to fulfill the requirement.

3.4 Technology

JavaNet will invest in high-speed computers to provide its customers with a fast and efficient connection to the Internet.

The computers will be reliable and fun to work with. JavaNet will continue to upgrade and modify the systems to stay current with communications technology. One of the main attractions associated with Internet cafes, is the state of the art equipment available for use.

Not everyone has a Pentium PC in their home or office.

3.5 Future Services

As JavaNet grows, more communications systems will be added. The possibility of additional units has been accounted for in the current floor plan. As the demand for Internet connectivity increases, along with the increase in competition, JavaNet will continue to add new services to keep its customer base coming back for more.

Market Analysis Summary

JavaNet is faced with the exciting opportunity of being the first-mover in the Eugene cyber-cafe market. The consistent popularity of coffee, combined with the growing interest in the Internet, has been proven to be a winning concept in other markets and will produce the same results in Eugene.

4.1 Target Market Segment Strategy

JavaNet intends to cater to people who want a guided tour on their first spin around the Internet and to experienced users eager to indulge their passion for computers in a social setting. Furthermore, JavaNet will be a magnet for local and traveling professionals who desire to work or check their email messages in a friendly atmosphere.

These professionals will either use JavaNet’s PCs, or plug their notebooks into Internet connections. JavaNet’s target market covers a wide range of ages: from members of Generation X who grew up surrounded by computers, to Baby Boomers who have come to the realization that people today cannot afford to ignore computers.

4.1.1 Market Trends

A market survey was conducted in the Fall of 1996. Key questions were asked of fifty potential customers. Some key findings include:

  • 35 subjects said they would be willing to pay for access to the Internet.
  • Five dollars an hour was the most popular hourly Internet fee.
  • 24 subjects use the Internet to communicate with others on a regular basis.

4.1.2 Market Needs

Factors such as current trends, addiction, and historical sales data ensure that the high demand for coffee will remain constant over the next five years. The rapid growth of the Internet and online services, that has been witnessed worldwide, is only the tip of the iceberg.

The potential growth of the Internet is enormous, to the point where one day, a computer terminal with an online connection will be as common and necessary as a telephone. This may be 10 or 20 years down the road, but for the next five years, the online service provider market is sure to experience tremendous growth.

Being the first cyber-cafe in Eugene, JavaNet will enjoy the first-mover advantages of name recognition and customer loyalty. Initially, JavaNet will hold a 100 percent share of the cyber-cafe market in Eugene. In the next five years, competitors will enter the market. JavaNet has set a goal to maintain greater than a 50 percent market share.

4.2 Market Segmentation

JavaNet’s customers can be divided into two groups. The first group is familiar with the Internet and desires a progressive and inviting atmosphere where they can get out of their offices or bedrooms and enjoy a great cup of coffee.

The second group is not familiar with the Internet, yet, and is just waiting for the right opportunity to enter the online community. JavaNet’s target market falls anywhere between the ages of 18 and 50. This extremely wide range of ages is due to the fact that both coffee and the Internet appeal to a variety of people.

In addition to these two broad categories, JavaNet’s target market can be divided into more specific market segments. The majority of these individuals are students and business people.

4.3 Service Business Analysis

The retail coffee industry in Eugene experienced rapid growth at the beginning of the decade and is now moving into the mature stage of its life cycle. Many factors contribute to the large demand for good coffee in Eugene.

The University is a main source of demand for coffee retailers. The climate in Eugene is extremely conducive to coffee consumption. Current trends in the Northwest reflect the popularity of fresh, strong, quality coffee and specialty drinks. Eugene is a haven for coffee lovers.

The popularity of the Internet is growing exponentially. Those who are familiar with the Internet are well aware of how fun and addictive surfing the Net can be.

Those who have not yet experienced the Internet, need a convenient, relaxed atmosphere where they can feel comfortable learning about and utilizing the current technologies. JavaNet seeks to provide its customers with affordable Internet access in an innovative and supportive environment.

Due to intense competition, cafe owners must look for ways to differentiate their place of business from others in order to achieve and maintain a competitive advantage.

The founder of JavaNet realizes the need for differentiation and strongly believes that combining a cafe with complete Internet service is the key to success. The fact that no cyber-cafes are established in Eugene, presents JavaNet with a chance to enter the window of opportunity and enter into a profitable niche in the market.

4.3.1 Competition and Buying Patterns

The main competitors in the retail coffee segment are Cafe Paradisio, Full City, Coffee Corner and Allann Bros. These businesses are located in or near the downtown area, and target a similar segment to JavaNet’s (i.e. educated, upwardly-mobile students and business people).

Competition from online service providers comes from locally-owned businesses as well as national firms. There are approximately eight, local, online service providers in Eugene. This number is expected to grow with the increasing demand for Internet access. Larger, online service providers, such as AOL and CompuServe are also a competitive threat to JavaNet. Due to the nature of the Internet, there are no geographical boundaries restricting competition.

4.3.2 Business Participants

There are approximately 16 coffee wholesalers in Lane County. These wholesalers distribute coffee and espresso beans to over 20 retailers in the Eugene area. Competition in both channels creates an even amount of bargaining power between buyers and suppliers resulting in extremely competitive pricing. Some of these major players in the industry (i.e. Allann Brothers Coffee Co., Inc. and Coffee Corner Ltd.) distribute and retail coffee products.

The number of online service providers in Eugene is approximately eight and counting. These small, regional service providers use a number of different pricing strategies. Some charge a monthly fee, while others charge hourly and/or phone fees. Regardless of the pricing method used, obtaining Internet access through one of these firms can be expensive.

Larger Internet servers such as America Online (AOL), Prodigy, and CompuServe, are also fighting for market share in this rapidly growing industry. These service providers are also rather costly for the average consumer. Consumers who are not convinced they would frequently and consistently travel the Internet, will not be willing to pay these prices.

4.3.3 Distributing a Service

The dual product/service nature of JavaNet’s business faces competition on two levels. JavaNet competes not only with coffee retailers, but also with Internet service providers.

The good news is that JavaNet does not currently face any direct competition from other cyber-cafes in the Eugene market. There are a total of three cyber-cafes in the state of Oregon: one located in Portland and two in Ashland.

Heavy competition between coffee retailers in Eugene creates an industry where all firms face the same costs. There is a positive relationship between price and quality of coffee. Some coffees retail at $8/pound while other, more exotic beans may sell for as high as $16/pound.

Wholesalers sell beans to retailers at an average of a 50 percent discount. For example, a pound of Sumatran beans wholesales for $6.95 and retails for $13.95. And as in most industries, price decreases as volume increases.

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Writing a Cafe Executive Summary (Free Samples)

Table of Contents

An executive summary is a vital part of every business plan. It introduces and summarizes essential aspects of your business plan to the reader. An effective executive summary grabs the reader’s attention, keeps them interested, and gets them to look at the rest of the business plan. The  cafe executive summary sample  in this guide should get you on the right track.

A coffee shop is an important business with a lot of competition, so it can only be approached with a business plan. An executive summary is typically written after the entire business plan has been drafted. This enables for proper capturing of all key information. This guide will teach you how to write the most captivating executive summary.

What Is an Executive Summary?

An executive summary is a brief overview of a business plan . It typically includes information about the business concept, target market, target location, competitive advantage, financial projections, and management team. The executive summary prepares the mind of readers and hints at what is to come. 

Typically, investors don’t have the time to read the entire business plan. Therefore, catching their attention with an exciting summary will compel them to read the rest of the plan. 

What Should a Cafe Executive Summary Contain?

interior of a coffee shop

A cafe executive summary is a brief overview of a business plan that highlights key points and objectives . It should be direct and convincing and provide readers with a clear understanding of the cafe’s modus operandum. It should also give readers a sense of the business success and profitability.

The following are important details the executive summary should contain:

  • The cafe’s name and location.
  • Your target market, including the demographic and geographic area the cafe will serve.
  • Your cafe’s uniqueness or what sets it apart from competitors.
  • A description of your cafe’s menu and any unique or special serving.
  • Your cafe’s operational plan, including your opening and closing time, hours of operation, staffing, and equipment.
  • The financial plan, including projected sales, costs, and profits.
  • Goals and objectives of your cafe, such as increasing customer traffic or expanding to multiple locations.
  • The management structure of your cafe, including the names of your partners or investors.

Cafe Executive Summary Sample

Example 1: cup of joe cafe.

Cup of Joe is a new coffee shop located in the heart of downtown. We offer high-quality coffee, espresso drinks, a selection of fresh pastries, and light breakfast and lunch items. Our target market is young professionals and students in the area. And individuals looking for a convenient and comfortable place to meet, work and socialize.

At Cup of Joe, we are committed to providing exceptional customer service and a welcoming atmosphere. Our unique selling proposition is that our coffee beans are sustainably sourced and roasted locally, ensuring the highest quality and taste. Our menu features a variety of classic and specialty drinks and a selection of sandwiches, salads, and pastries.

We will operate seven days a week, from 7 am to 7 pm. And will have a staff of six trained baristas to ensure timely and efficient service. Our cafe will be equipped with a state-of-the-art espresso machine. And a variety of seating options, including comfortable chairs and tables and a cozy lounge area with sofas and a fireplace.

Our financial plan projects annual sales of $500,000, with a net profit of $150,000 sum. We seek an investment of $100,000 to cover start-up costs, including equipment, renovations, and working capital. The ownership of Cup of Joe will be split equally between its three founders. These individuals have 15 years of experience in the coffee and hospitality industry.

We aim to establish Cup of Joe as a popular and thriving coffee shop downtown. Our passion for coffee, commitment to quality, and focus on customer service will set us apart from competitors.

Example 2: Joe’s Coffee

Joe’s coffee is a new coffee shop in the heart of New Orleans. We serve specialty coffees, pastries, and light breakfast and lunch items. The cafe is open from Monday through Friday from 8 am to 4 pm.

Location:  Joe’s Coffee is on Carondelet Street in New Orleans’ Central Business District at 823 Carondelet Street, Suite 101. 

Menu.  The menu includes espresso drinks like lattes and cappuccinos, cold brew coffee, tea selections, and pastries like croissants and scones. Plus, breakfast sandwiches and soups for lunchtime diners.

Executive Members:

Owner/Operator: Joe Benson 

Manager – James Hilary

Head of operations: Anita Baker

Chefs: Monroe Peter, Jasper Rock, Leslie Jones

Financial report.  In its first month of operation, Joe’s Coffee had net sales of $2,000 and incurred expenses totaling $1,600 sum. This leaves the business with an operating profit of $400 in its first month. 

Final Words

First impressions are long-lasting; they impact the readers and help them build an interest in your business plan. Your cafe executive summary is the first impression on your readers, so it’s essential to give it your best shot.

Be as original as possible and communicate everything your cafe entails. You can generate a compelling executive summary in a few seconds using Hey INK . Just like the  cafe executive summary sample  in this guide.

Writing a Cafe Executive Summary (Free Samples)

Abir Ghenaiet

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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Coffee Shop Business Plan

Start your own coffee shop business plan

Java Culture

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

People near the University of Oregon need not just coffee and tea, or pastries and snacks, but also a place to meet comfortably, have a group discussion, or just sit quietly, work, and read. That is available now near the University of Oregon campus, but too crowded too often, and not the right combination of factors for everybody.

Java Culture coffee bar is determined to become a daily necessity for local coffee addicts, a place to dream of as you try to escape the daily stresses of life and just a comfortable place to meet your friends or to read a book, all in one.

Java Culture will focus its marketing activities on reaching the University students and faculty, people working in offices located close to the coffee bar and on sophisticated teenagers. Our market research shows that these are the customer groups that are most likely to buy gourmet coffee products. Since gourmet coffee consumption is universal across different income categories and mostly depends on the level of higher education, proximity to the University of Oregon campus will provide access to the targeted customer audience.

Competition

Java Culture’s direct competitors will be other coffee bars located near the University of Oregon campus. These include Starbucks, Cafe Roma, The UO Bookstore, and other Food service establishments that offer coffee.

Great coffee, pastries, additional options for tea etc, very welcoming atmosphere, good wireless, desk space, comfortable chairs and tables, good pastries, a location close to the university campus.

Expectations

We plan to grow as shown in the chart below, taken from our sales forecast. We aim to maintain an industry-standard 60% gross profit margin and reasonable operating expenses, and to produce reasonable profits in the second and third year.

Financial Highlights by Year

Financing needed.

The owners will invest $140,000 and take out a bank loan for $30,000  to cover the start-up expenses and assets needed plus deficient spending in the early months.

The start-up expenses of $27,000 include:

  • Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,300.
  • Marketing promotion expenses for the grand opening of Java Culture in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • Consultants fees of $3,000 paid to ABC Espresso Services <name changed> for the help with setting up the coffee bar.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium of $2,400.
  • Pre-paid rent expenses for one month at $1.76 per square feet in the total amount of $4,400.
  • Premises remodeling in the amount of $10,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).

These expenses will be incurred before launch, so they take their place in our financial projections as negative retained earnings of $27,680 at the end of the month before we begin. That number shows up in the balance sheet.

The required start-up assets of $143,000 include:

  • Cash in the bank in the total amount of $67,000, which includes enough to cover employees and owner’s salaries of $23,900 for the first two months and cash reserves for the first three months of operation (approximately $14,400 per month).
  • Coffee beans (12 regular brands and five decaffeinated brands) – $6,000
  • Coffee filters, baked goods, salads, sandwiches, tea, beverages, etc. – $7,900
  • Retail supplies (napkins, coffee bags, cleaning, etc.) – $1,840
  • Office supplies – $287
  • Espresso machine – $6,000
  • Coffee maker – $900
  • Coffee grinder – $200
  • Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.) – $18,000
  • Storage hardware (bins, utensil rack, shelves, food case) – $3,720
  • Counter area equipment (counter top, sink, ice machine, etc.) – $9,500
  • Serving area equipment (plates, glasses, flatware) – $3,000
  • Store equipment (cash register, security, ventilation, signage) – $13,750
  • Office equipment (PC, fax/printer, phone, furniture, file cabinets) – $3,600
  • Other miscellaneous expenses – $500

Funding for the company comes from two major sources–owners’ investments and bank loans. Two major owners, Arthur Garfield and James Polk, have contributed $70,000 and $30,00 respectively. All other investors have contributed $40,000, which brings the total investments to $140,000. The remaining $30,000 needed to cover the start-up expenses and assets came from the two bank loans–a one-year loan in the amount of $10,000 and a long-term (five years) loan of $20,000. Both loans were secured through the Bank of America. Thus, total start-up loss is assumed in the amount of $27,000.

The amounts show up in the balance sheet in the month prior to opening. The $140,000 investment shows up as Paid-in Capital. The $27,000 expenses show up as negative retained earnings. Assets and liabilities are there. This is all according to financial standards.

Problem & Solution

Problem worth solving.

People near the University of Oregon need not just coffee and tea, or pastries and snacks, but also a place to meet comfortably, have a group discussion, or just sit quietly, work, and read. That is available now near the University of Oregon campus, but too crowded too often, and not the right combination of factors for everybody. 

Our Solution

Java Culture will make its best effort to create a unique place where customers can socialize with each other in a comfortable and relaxing environment while enjoying the best brewed coffee or espresso and pastries in town. We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. Java Culture will invest its profits to increase the employee satisfaction while providing stable return to its shareholders.

Target Market

Market size & segments.

Coffee consumption has shown a steady 2.5% growth rate in the United States over the last decade. The retail coffee industry is flourishing in the U.S. Pacific Northwest. The local climate, with a long rainy season, is very conducive for the consumption of hot non-alcoholic beverages. At the same time, hot dry summers drive people into cafes to order iced drinks. Furthermore, coffee has really become a part of the lifestyle in the Pacific Northwest. Its discerning coffee drinkers are in favor of well-prepared, strong coffee-based beverages, which they can consume in a relaxing environment.

More specifically, the University of Oregon as close to 25K students and another 5-10K faculty and staff. And it is embedded in the Eugene, OR community of 200K people. Our main market will be students, faculty, staff, and nearby residents. But the campus area is a hub for the community and will attract other customers. 

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Our Advantages

Java Culture will cater to people who want to get their daily cup of great-tasting coffee in a relaxing atmosphere. Such customers vary in age, although our location close to the University campus means that most of our clientele will be college students and faculty. Our market research shows that these are discerning customers that gravitate towards better tasting coffee. Furthermore, a lot of college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with peers without the necessity to pay cover charges. For us, this will provide a unique possibility for building a loyal client base.

Keys To Success

The keys to success will be:

  • Store design that will be both visually attractive to customers, and designed for fast and efficient operations.
  • Employee training to insure the best coffee preparation techniques.
  • Marketing strategies aimed to build a solid base of loyal customers, as well as maximizing the sales of high margin products, such as espresso drinks.

Marketing & Sales

Marketing plan.

Java Culture will position itself as unique coffee bar where its patrons can not only enjoy a cup of perfectly brewed coffee but also spend their time in an ambient environment. Comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers to relax from the daily stresses and will differentiate Java Culture from incumbent competitors.

In order to build up its client base, Java Culture will use some strategic banners and fliers during the launch period, utilize customer referrals and cross-promotions with other businesses in the community from time to time, and loyalty programs that work with android and IOS and other mobile phones, which is the preference of our market.

Our main thrust will be getting people to know, like, and trust us with content and engagement in Facebook, Instagram, Snapchat, and Twitter.  We intend to maintain social media presences that are light on self-serving promotional quasi-advertising content, heavy on community participation, content, and engagement. 

Java Culture baristas will handle the sales transactions. To speed up the customer service, at least two employees will be servicing clients–while one employee will be preparing the customer’s order, the other one will be taking care of the sales transaction. All sales data logged on the computerized point-of-sale terminal will be later analyzed for marketing purposes.

Locations & Facilities

Java Culture coffee bar will be located on the ground floor of the commercial building at the corner of West 13th Avenue and Patterson Street in Eugene, OR. The company has secured a one-year lease of the vacant 2,500 square feet premises previously occupied by a hair salon. The lease contract has an option of renewal for three years at a fixed rate that Java Culture will execute depending on the financial strength of its business.

The floor plan will include a 200 square feet back office and a 2,300 square feet coffee bar, which will include a seating area with 15 tables, a kitchen, storage area and two bathrooms. The space in the coffee bar will be approximately distributed the following way–1,260 square feet (i.e., 55% of the total) for the seating area, 600 square feet (26%) for the production area, and the remaining 440 square feet (19%) for the customer service area.

This property is located in a commercial area within a walking distance from the University of Oregon campus on the corner of a major thoroughfare connecting affluent South Eugene neighborhood with the busy downtown commercial area. The commercially zoned premises have the necessary water and electricity hookups and will require only minor remodeling to accommodate the espresso bar, kitchen and storage area. The coffee bar’s open and clean interior design with modern wooden decor will convey the quality of the served beverages and snacks, and will be in-line with the establishment’s positioning as an eclectic place where people can relax and enjoy their cup of coffee. The clear window displays, through which passerby will be able to see customers enjoying their beverages, and outside electric signs will be aimed to grab the attention of the customer traffic.

Milestones & Metrics

Milestones table, key metrics.

We have our forecasts for sales, direct costs, and operating expenses. As we get into the business we’ll develop standards based on experience for Facebook likes, Twitter follows, and other social media engagement. We expect to watch these very carefully. 

Ownership & Structure

Java Culture is majority-owned by Arthur Garfield and James Polk. Mr. Garfield holds a Bachelor’s Degree in Business Administration from the University of ZYX. He’s worked for several years as an independent business consultant. Previously, he owned the ABC Travel Agency, which he profitably sold four years ago. Mr. Garfield has extensive business contacts in Oregon that he will leverage to help his new venture succeed. Mr. Polk has a Bachelor’s Degree in Psychology from the XYZ State University. For the last five years he has worked as a manager of DEF Ristorante, a successful Italian restaurant in Portland, OR. Under Mr. Polk’s management, the restaurant has consistently increased sales while maintaining a lower than average level of operating expenses.

Investors will not be involved into the daily management decisions at Java Culture. They will hire a professional manager who will oversee all the coffee bar operations. Three full-time baristas will be in charge of coffee preparation. They will hire two more part-time employees to fulfill the staffing needs. In the second and third year of operation will add additional employees if and when needed. 

Management Team

A full-time manager will be hired to oversee the daily operations at Java Culture. The candidate (who’s name is withheld due to his current employment commitment) has had three years of managerial experience in the definitely industry in Oregon. This person’s responsibilities will include managing the staff, ordering inventory, dealing with suppliers, developing a marketing strategy and perform other daily managerial duties. We believe that our candidate has the right experience for this role. A profit-sharing arrangement for the manager may be considered based on the first year operational results.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

  • We assume a steadily growing potential market in line with growth at the university, trends. 
  • We assume industry standard gross margins
  • We assume relative status quo regarding technology and trends in the coffee industry

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

The start-up expenses include an estimated $17,000 consisting of several items:

  • Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium of $1,500.
  • Other start-up expenses including website ($4,000) and phone and utility deposits ($2,500).

The required start-up assets of $71,000 include:

  • Plates, glasses, etc. worth approximately $2,000
  • Espresso machine
  • Coffee maker
  • Coffee grinder 
  • Food service equipment (microwave, toasters, dishwasher, refrigerator, blender, etc.)
  • Storage hardware (bins, utensil rack, shelves, food case) 
  • Counter area equipment (counter top, sink, ice machine, etc.)
  • Serving area equipment (plates, glasses, flatware)
  • Store equipment (cash register, security, ventilation, signage) 
  • Office equipment (PC, fax/printer, phone, furniture, file cabinets) 
  • Other miscellaneous expenses

Sources of Funds

Projected profit & loss, projected balance sheet, projected cash flow statement.

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Coffee Shop Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

  • Coffee Shop Business Plan Home
  • 1. Executive Summary
  • 2. Company Overview
  • 3. Industry Analysis
  • 4. Customer Analysis
  • 5. Competitive Analysis
  • 6. Marketing Plan
  • 7. Operations Plan
  • 8. Management Team
  • 9. Financial Plan

Coffee Shop Executive Summary

Business Overview

Java Bros Coffee Shop will be a locally established coffee shop located in Austin, Texas. The brainchild of two talented brothers with an entrepreneurial spirit, Joey and Max Smith are ready to emerge into opening their own coffee shop. Java Bros will pride itself on only offering coffee roasted by Texas coffee roasters and growers and only serve bakery items made fresh by local Austin bakeries.

While the menu will be small and simple, the time and attention given to everything they will serve makes Java Bros truly unique when looking for quality coffee. Their exceptional customer service will allow for customers coming back and allowing them to develop a strong reputation with its clients.

Products Served

The following are the products to be offered by Java Bros Coffee Shop:

  •   Local coffee (dark roast, light roast, medium roast, breakfast blend)
  • Seasonal/holiday lattes
  • Cappuccinos
  • Bakery items baked fresh from local bakeries and delivered daily
  • Italian sodas

Customer Focus

The two proposed locations will be in the emerging neighborhoods where tech companies, business professionals, and college students live and work. These neighborhoods have the highest salaries of anywhere in Texas and the business and retail segments are dense with professionals of all ages.

Management Team

Joey and Max Smith are the founders and senior management of Java Bros. They both are Austin natives and have business degrees from the University of Texas at Austin. They have worked at other coffee shops while perfecting their craft of over ten years and have made a positive local reputation with coffee enthusiasts around Austin and East Texas.

Aside from the two brothers overseeing the upper management duties, Java Bros will employ 10-11 baristas, 3-4 shift managers, and 1 social media and website manager.

Success Factors

Java Bros is primed for success at its two locations.

  •   Local businesses in the new neighborhoods are excited and eager to partner with Java Bros due to their commitment of serving quality coffee and delivering exceptional customer service.
  •   Java Bros has positioned itself to operate efficiently, allowing for a greater net profit while keeping overhead costs minimal.
  • The technology factor of the coffee shop will position itself to be a favorite amongst young, tech-hungry professionals and university students.

Financial Highlights

Java Bros is seeking $300,000 in debt financing to open its two locations. The funding will be dedicated for leasehold improvements, design, working capital, and opening inventory. The breakout of the funding is below:

Location #1

–         Store design/build: $100,000

–         Working capital: $25,000

–         Opening inventory: $25,000

Location #2

The following graph outlines the pro forma financial projections for Java Bros Coffee Shop.

PlanBuildr.com Coffee Shop Financial Projections

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Writing a business plan for your mobile app idea

executive summary business plan internet cafe

Before your mobile app idea can come to life, you should create a detailed business plan that describes its vision, breaks down development costs, and lays out a marketing strategy. 

Building an app is a long and complex process that involves careful planning and execution. Trying to create one based only on an idea, without any additional planning, can easily lead to disaster. 

A lack of pre-defined project structure, coupled with delays due to slower development times, is enough to get any app idea scrapped or put off. 

Even if it does get built, you’ll have no idea how to market your app or attract any potential investors without a business plan in place. That’s why it’s essential to plan before committing resources to bring your idea to fruition. 

In this article, we’ll explain in detail how to write a complete business plan for your app.

Table of Contents

Why should you write a business plan for your app?

One of the main reasons you should write a business plan is to minimize the risk involved while allowing you to attract potential investors at the same time. 

App development can be costly and carries inherent risks. A business plan is a way to minimize those risks. 

Apps whose creation was mapped out well grow at a more exponential rate and secure more investment capital. The reason for that is simple. 

executive summary business plan internet cafe

Get unreal data to fix real issues in your app or web.

Having a complete overview of what you aim to achieve lets you track progress and act towards future goals more effectively. This is also a great way to attract investors, as a business plan will help make a good impression and convey your app’s mission .  

Let’s say you’re looking to build an app like WhatsApp . 

You’re going to have to perform an in-depth analysis of the cost, team size, and man-days spent to see what the development requirements are. That’s what writing a business plan is all about – planning for what’s ahead. 

Writing a business plan for your mobile app

Now that we’ve covered the reasoning behind why creating a business plan is a good idea, it’s time to focus on how to write a business plan for your app. 

Executive summary 

As an introduction to your business plan, you should write a summary of what your company does and what your app should do. This will act as a quick overview of what’s being presented further down the line.  Therefore, make sure it’s on-point and easy to understand. 

A good summary should focus on explaining how your project works without going into too much detail. You’ll have plenty of time to talk about the specifics later, as the main goal here is to introduce and communicate your app’s unique value proposition to the reader. 

You’ll be able to do exactly that by answering the following questions: 

  • What am I trying to accomplish with my app?
  • What is the general purpose of my app? 
  • What does my app do better than the competition? 
  • Who is my app’s target audience?

Once you’ve answered all of these questions, a reader will have a pretty good idea of what makes your app unique, and what your goals are. These are pretty important, especially if you’re looking to attract potential investors. 

Well-defined goals don’t just serve as a personal roadmap—they show transparency and help investors easily determine if the product meets their needs. 

“…what makes our service unique is our sticky vendor network and user base.” Unique value proposition, PubHub business plan  

Companies like YCombinator have built an entire business focused on funding startups at an early stage of development. For a chance to get funded, you’ll need a great summary that explains what the app is all about and your vision for its future development.

General information

After the executive summary, it’s time to talk about your business, company, and team.

Business overview

In this section of your business plan, you’ll introduce your business values, its goals, and pitch your app idea.

Anybody reading your business plan (e.g., investors) will first want to find out more about the values that drive your business and how you make a profit. 

Try and keep this part relevant and stick to the key characteristics of your business, such as: 

  • Core values 
  • Business objective & goal
  • Key success factors

After that, it’s time to pitch your app idea to the reader. 

The best way to do that is to present a problem you’ve identified and then explain how your app aims to solve it. This should reflect your app’s unique value proposition . Here’s an example: 

Be sure to make your value proposition as concise as possible. Implicitly show how your app solves the problem(s) and how it’s different from others. 

To help you do that, you can try using the what-how-why method when you write. 

Company overview

After an introduction to your business, it’s time to provide the reader with some more general information about your company. 

Here’s a list of things you’ll want to include in the overview: 

  • Company structure 
  • Location 
  • Type of entity 
  • Number of employees
  • Current targeted market 
  • Mission and vision statement

This will give anyone interested in your company the gist of what you’re about.

Last but not least, you should introduce your team and their skills. This helps humanize your business plan, showing the real people behind your company, their skills, and experience. 

To introduce your team properly, start by adding a picture of each team member. 

After that, share a bit of information about each person, like their name, position and work experience. If you want to make these descriptions more interesting, you can add a personal touch by mentioning their hobbies or interests, as well. 

Let’s look at two different approaches to writing team member descriptions:  

The second description is more personal and helps create a sense of human connection with the reader, which can be quite useful when pitching your business plan. Choosing which one to use will depend on the type of investor you’re looking for.

Market analysis

If you want to successfully market your app, you’ll need an understanding of how the industry you’re about to enter works and what the competitive landscape is like. 

That’s why the next step in writing your business plan is to conduct a market forecast and a SWOT analysis. The goal here is to show your app idea’s short and long-term viability and analyze its strengths and weaknesses. 

Market forecast 

To prove your app idea is viable, you’re going to need a market forecast. 

Market forecasts are used to assess if there is a real market for your app and can be used to predict its success rate over time. They’re based on market research .

Considering they’re usually done by outsourced companies , they carry additional credibility and are the foundation of any marketing strategy. Adding a market forecast to your business plan is used to reinforce your unique value proposition and prove its market viability.

Marketing forecast example

Market forecasts can be done using any of the three different methods : qualitative techniques, time series analysis and projection, and causal models. Make sure you choose the method that provides you with the data set you need to reinforce your claims.

SWOT analysis

Your market analysis should also include a strategic analysis of your app’s strengths, weaknesses, opportunities, and threats.

Much like any other type, SWOT analysis is based on data. You’ve added a market forecast to your plan in the previous section, and you can use its data to help write your analysis.

Your goal here is to present insights you’ve gained so far according to the SWOT framework. Here are a few questions to help guide you:

The biggest benefit of a SWOT analysis is that it highlights the challenges your app will have to face and outlines the weaknesses in your app that require more work. 

Take Botanical Bounty as an example. 

Their weakness is a lack of established reputation in the market, which means they’ll be focusing on building one in the future. Identifying it enables them to dedicate resources towards solving the problem as part of their marketing strategy.

Marketing strategy

Once you’ve laid out your analysis of the market, it’s time to reveal more about your marketing strategy. Using the information you’ve gathered so far, you’ll need to decide how you’re going to reach users, introduce them to your app, and eventually turn them into customers. 

To create a marketing strategy you should start small and base your decisions on data you’ve collected. 

From there, you’ll be able to scale up and cover a bigger time frame. The initial goal of a marketing strategy is to test out ideas against the market and see which one works best. 

Look at your competitors to see how they acquire customers and draw inspiration from them. The more insight you gain, the easier it will be to create a bulletproof strategy.

As part of your app market strategy, you’ll want to try out different marketing channels:

  • Content marketing
  • Advertising
  • Organic marketing 
  • Social media 
  • App store marketing

Each one serves a unique purpose, and offers short-term or long-term benefits. For example, advertising is a short-term strategy that offers immediate results but has no long-term effect. Once your budget runs out, your exposure is gone with it. 

On the other hand, organic and content marketing might not show any immediate results, but they will help your app get discovered more easily in the future. 

The channels you choose will become part of your marketing mix, which incorporates all of the insights and data you’ve gathered so far into an actionable strategy. 

Creating a marketing strategy isn’t a one-off task. As the market evolves, so will the trends. 

Even the best market research can’t prepare you for certain changes, which is why you should consider adopting an agile approach to marketing.

After completing your marketing strategy it’s time to define finances, both present, and future. 

They’re crucial if you want to make your app idea work, as one of the biggest reasons that startups fail is the lack of money . 

The goal here is to present a projection of your finances moving forward, by laying out your funding projection, requirements, and defining an exit strategy. 

This will serve as a reference point for any investor that might come along. 

Funding projection 

The funding projection estimates the total cost of developing and marketing your app in the upcoming year(s). 

The ideal format for writing a funding projection is a table. You’ll want to divide all your financial tasks into categories, allocating part of your budget for each one. 

After that’s done, you’re ready to spread the allocated funds throughout the desired time period. 

Here’s what a funding projection table looks like: 

Annual cash flow example

While writing your projection, watch out for varying costs and try to leave a little room for other expenses. As mentioned earlier, the market can be unpredictable and it’s always good to have a bit of extra money stored away just in case. 

Funding requirements

When you complete your funding projection, let potential investors know how much funding it will take to make your app a reality. 

Writing funding requirements is a straightforward process. Specify the amount you’re seeking, and what you’re willing to offer in return, e.g., a percentage stake in the company. 

Then, add an overview of how the proposed investment will be spent, and at what pace. The best way to show potential investors what you intend to do with their money is to use milestones.

Here’s an example of PubHub milestones: 

Key milestones example

Each milestone in your funding requirements projection is binding, which means that any serious investor will hold you accountable. 

Make sure they’re based on measurable data, as setting unrealistic milestones may easily get you in trouble.

By specifying your funding requirements, you give investors an easy overview of what you offer and what they can expect if they decide to fund your app idea. 

Exit strategy

As the name suggests, an exit strategy for your app tells potential investors under which circumstances you’d be prepared to sell your business or a part of it. 

Even though you might not be planning to sell your business anytime soon, it’s still a good idea to define your terms for doing so. You never know when an offer you can’t refuse might come along. 

There are several different types of exit strategies , depending on what your goal might be:

  • Lifestyle company exit
  • Mergers and acquisitions
  • Management and employee buyouts
  • Selling your stake to a partner or investor
  • Initial public offering (IPO)

An exit strategy will allow investors to gain insight into the ways in which your personal and business goals overlap , adding additional value to your business plan. 

Monetization strategy

A monetization strategy is an essential part of your business plan, which predicts your app’s return on investment (ROI) based on the business model you’ve chosen. It also includes details on how your app is going to generate revenue and which methods will be used. 

To create a great app monetization strategy, you’ll need insight into current and future mobile app industry trends . Such insights will help you avoid mobile market pitfalls and outdated practices.

Here’s a list of the most popular app monetization strategies : 

  • Subscription model 
  • Freemium model 
  • In-app purchases
  • In-app advertising 

The strategy you choose will depend on the app you’re planning to build and for whom. The subscription model is great if your potential customers have a high willingness to pay , and your app centers on providing content rather than features. 

According to statistics, the majority of apps today are based on a free model , combined with either in-app purchases or advertising. The reason is that they offer a lot more flexibility and scalability than paid or freemium ones.  

Your monetization strategy shouldn’t be fixed. As mobile app trends change, it needs to be flexible enough to evolve alongside your app and its goals.

Writing a business plan is the best way to minimize the common risks (e.g., running out of money) involved in app development and attract potential investors.

It doesn’t only serve as a way to plan for the future; it’s also a proof of concept of what you’re trying to achieve and how you aim to do it. Without it, you’ll have a hard time building your app.

Keep in mind that every business plan is unique to what you’re trying to achieve. There are no shortcuts and there is no point in copying someone else’s plan. It should be exclusively based on your goals and the data you’ve gathered while researching.

executive summary business plan internet cafe

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  • Business Plans Handbook
  • Business Plans - Volume 03
  • Indoor Playground Business Plan

Indoor Playground

Indoor Playground 304

BUSINESS PLAN

KID'S WORLD

5568 Inkster Rd. Livonia, MI 48150

This plan is for a franchised indoor children's playground. The plan provides a good description of possible competitors and the methods that will be used to achieve a competitive advantage in this industry.

EXECUTIVE SUMMARY

Mission and strategy, competitive analysis, pricing, profitability, and break even, management and staffing, contingency planning, financial projections.

A market opportunity exists in the Western Detroit area to service children aged 13 and under with a supervised indoor exercise and recreation facility. Market research shows that children often do not get the required amount of exercise to maintain a healthy lifestyle. Indoor playgrounds provide an outlet for active children during inclement weather or when the temperature is too hot or cold for outdoor play. Furthermore, parents want an environment for their children to play without harsh language and an arcade atmosphere.

Proposed Business

Kid's World will provide a safe, clean, and stimulating environment for physically active children aged 13 and under to play in and explore. Kid's World's supervised, visually open play area will ensure children's safety, while challenging them to reach, think, interact, explore, and have fun. The store will require approximately 14,000 square feet, consisting of a giant 5,000 square foot play structure for children over the age of 4, a smaller play area for toddlers under the age of 4, an area with several interactive skill games, a snack bar with seating to accommodate 100 to 125 persons at a time, and a merchandise and souvenir stand. Both play areas have soft indoor playpark equipment with extensive padding and no sharp edges. Furthermore, the game area will not offer video games, pinball-type games or games with a violent theme. For family celebrations, such as birthdays and special occasions, Kid's World will offer private party rooms hosted by trained staff to provide a child everything he/she would want in a birthday - several hours of supervised fun on the play structures, cake and ice cream, prizes, food and beverage, and game tokens. Kid's World desires playtime to be as rewarding for the parents as it is for the children, as they spend time together.

Kid's World will be located in a strip shopping center on the west side of Livonia. Within a twenty-five mile drive from this location, there are at least 49,000 children at or under the age of 14, living in a household with average annual income exceeding $45,000. Furthermore, the Census Bureau expects the communities of Canton, Plymouth and South Lyon to be the fastest growing regions of Wayne and Washtenaw Counties over the next decade.

The business will be operated on a full-time basis by a manager, Alice Cushaw, who has had over 3 years of restaurant management experience. In addition, all member-managers will actively assist in the management of the business on a part-time basis.

Loan Request

The owners are requesting a loan to fund a portion of the start-up costs and inventory. They are also requesting a line of credit in the amount of $500,000. The owners are contributing $35,000 to the business venture and various investors are contributing another $40,000. The money will be needed in equal monthly installments commencing three months prior to opening and will be repaid in a steady manner from available operating cash flows. The loan will be entirely repaid within five years after opening with payments beginning three months after opening.

Kid's World is a diversified destination family entertainment center combining recreation, entertainment, and restaurant facilities that creates substantial drawing power. Kid's World's basic focus is children's play and fitness for 1 to 13 year old children. At Kid's World, these activities have been packaged into a safe, clean, climate-controlled, supervised environment for children aged 13 and under to exercise and have fun while stimulating their imagination and challenging them physically. The indoor playpark is based on the premise that if you set a large number of children inside a safe, yet challenging, imaginative soft playground area, they are going to have fun. They are also going to develop basic motor skills, social skills, muscle tone, and self-confidence. Furthermore, the parents can enjoy hours of close interaction with their children in a safe, secure, and stimulating environment.

Currently, there are no other indoor children playgrounds in the Western Detroit area. In addition, there are relatively few alternatives for children's birthday parties. Kid's World will be able to immediately fill this void in the market by providing extensive recreation, entertainment, and restaurant facilities for children to play in and explore. Within 1 year, Kid's World will be known as the primary recreation facility for children aged 1 to 13 and the destination of choice for children to enjoy birthday parties with friends. Kid's World's safe, secure, and clean environment will assure parents while providing opportunities for their children to have fun in a stimulating environment.

Kid's World will base its appeal on providing a stimulating indoor environment for children to play in, while adhering to the strictest quality control standards emphasizing excellence in service, safety, security, food quality and value, sanitation, cleanliness, and creativity. Furthermore, Kid's World is dedicated to the continual development of creative themes and interactive designs that have entertainment and educational value that will ensure Kid's World's competitiveness and success in the family entertainment market years into the future.

Indoor playgrounds serve an increasing need in our society. Studies show that American children are less active and less fit than they were even five years ago, probably due to increasing time in front of television sets and high calorie-high fat diets. Studies have also shown that less active children are more likely to be overweight, and overweight children have a greater propensity to become overweight adults. As people have become more aware of the healthy aspects of their lifestyles, enrollment in adult health clubs, aerobic exercise, recreational activities, and attention to nutrition has increased dramatically. This trend will continue as parents attempt to provide a healthier lifestyle for their children. Another area of parental concern is their children's safety. Nationally, as well as locally, concern for the physical well-being of children has created a further need for a safe play environment. This concern shows no sign of diminishing.

While it is difficult to determine the size of the indoor playground industry, there are currently about 49 million children 12 years old or younger in the United States and this figure is expected to rise to 51 million by the year 2000, according to the Bureau of Census. There are approximately 26 million households with children younger than 18 years of age, who spend about $1,800 per year on family entertainment or $46 billion annually. Per-capita expenditures on children's activities are likely to rise as families with children spend a larger percentage of their income on recreation. Children aged 4-12 spent, from their own income, $6 billion in 1989, up 41% from 1984. This increase in discretionary income is coming from several factors. First, the increase in dual income families has provided for more discretionary income to be spent on children. Second, women are having children later as evidenced by the rising birth rate among women in their thirties. Third, per-capita family income is increasing and families are choosing to take wealth increases in the form of leisure. Last, grandparents are living longer and spending more on their grandchildren. Based on these demographics, industry analysts believe that there is room for about 600 store locations in primary markets throughout the United States and an additional 200-300 in secondary markets.

The Customer Need and the Target Customer

With the recent concerns over child safety on outdoor playground equipment, many schools have elected to remove their playground equipment entirely. Parents are more aware than ever before over the safety and security of their children's play areas. Consequently, a safe, supervised indoor play area will enable parents to relax while their children enjoy playing in and exploring the soft indoor playpark.

Kid's World will target children aged 13 and under within a 25 minute drive of Western Livonia, comprising about 250,000 people of which at least 49,000 are under the age of 13. Within a five-mile radius of Livonia, census information indicates there are approximately 23,000 children aged 13 and under, living in a household with an average annual income exceeding $55,000. These customers will form Kid's World's primary market base. Kid's World will also target children in the outlying regions of Oakland County.

Product Description

Kid's World is geared for children 13 years old or younger who desire an imaginative, challenging, and fun environment in which to exercise, play, and explore. For safety, children must be accompanied by an adult in order to be admitted and adults are not permitted to enter without a child. Furthermore, each person admitted to the playpark will receive a color-coded wristband identifying him/her with rest of the party. To further promote security, each person's wristband will only be removed when the entire party is present together at the exit desk. Trained staff will supervise the play areas at all times to ensure adherence to the playpark rules while assisting the children to maximize their enjoyment of the facilities.

There will be several play areas within Kid's World; the largest, a 5,000 square foot structure targeting children aged 4 and over, will be comprised of a series of colorful tubes, slides, ball baths, climbing structures, air and water trampolines, obstacle courses, ramps, and stairs. A smaller play area will cater to toddlers and consist of cushions, ramps, a small ball bin, and toys. To encourage active participation by parents, all play areas will have a visually open design with comfortable rest areas in full view of the play structures.

Kid's World will also be equipped with a smaller area of interactive games designed to promote eye and hand coordination. This area will include the "Magic Keyboard", a unique piece of musical play equipment specifically designed for Kid's World. Parents and children can also play several games of skill to win tickets redeemable for prizes. There will also be a snack bar with seating for 100 to 125 customers at a time. It will serve food and beverages that appeal to children and parents such as pizza, hot dogs, salads, sandwiches, popcorn, pop, fruit juice, cappuccino, cake, and ice cream. In addition, Kid's World will have a merchandise counter with small souvenirs emblazoned with the Kid's World logo such as T-shirts, sweaters, and hats.

Kid's World will have six private party rooms and will offer packages for birthdays and other special occasions hosted by staff members, significantly reducing the hassle and mess for parents. The design of the rooms will allow for groups as large as 30 children at a time. For family celebrations, Kid's World will offer three birthday packages for parties of 8 of more, consisting of a two hour limited time of play, birthday cake and ice cream, free game tokens, and, depending on the type of package, pizza or hot dogs, party favors for the guests, and a special gift for the birthday child.

Strategy and Approach to the Market

Kid's World will strive to appeal to value-oriented customers who desire hours of entertainment for their children at reasonable prices. Kid's World will be competitively priced at $4.95 for unlimited play which is comparable to other forms of entertainment. However, the distinguishing feature of Kid's World will be its clean, safe, secure environment for children to play in while parents can either relax or participate in their child's activities.

Advertising

Kid's World will reach its target customers through such advertising media as local newspapers, local television, and direct mail campaigns. Local television advertising has been found to be very effective in reaching the target market segment of children 13 and under, so we will focus our efforts here. The advertising and promotion campaign will be funded through operating cash flows and will build upon the close proximity of the store to the corporate location. In addition, the franchisor will assist its franchisees through regional advertising programs to obtain synergy among all franchisees within the region. Kid's World will initially promote its concept through a Grand Opening advertisement campaign employing an invitation-only free evening for local business and government leaders and their children as well as local radio coverage. The franchisor will assist in the preparation of initial advertising and scheduling of promotions.

Location Characteristics

The nature and location of Kid World's business will support both destination and walk-in shopping. Since the majority of birthday parties are pre-planned events, the exact location of Kid's World with respect to major shopping centers is not as critical as it is in other retail businesses. However, parents shopping with their children may desire an outlet for their children in the form of indoor exercise and recreation. Once customers are aware of Kid's World's location, they will return again and again. Figures from the corporate store indicate an average return rate of seven times per child per year. Our financial forecasts conservatively project 1/3 less. The awareness of our location will develop over several months due to advertising, word of mouth, and simple observation by shoppers in the area.

Kid's World will locate in Livonia on Inkster Road in the Heights Shopping Center. This shopping center consists of two separate buildings totaling 73,480 square feet of rental space and contains both destination and walk-by businesses. The center is primarily focused on providing family related services to the local community. Within three miles of this location, census data indicates there are 9,854 children under the age of 14. Within five miles of this location, census data indicates there are 23,061 children under the age of 14. In addition, there are several elementary schools located in the proximity, a day care center directly behind the shopping center, and many other child-related businesses within a few blocks along Inkster Rd. in either direction.

To better ensure Kid's World's success, the franchisor, Kid's World, Inc., must approve the final location and subject it to their proprietary location requirements.

Unique Market Characteristics

Weekly usage patterns.

With 60 to 65% of the costs fixed and only 35 to 40% variable, even small increases in capacity utilization can have a major impact on profitability. With a projected 60% of revenue coming from Friday through Sunday, it will be important to effectively utilize capacity on weekdays. Kid's World will provide the following services to increase customer usage during this period: group discounts to day care centers, churches, community groups, schools, etc., a frequent user card to encourage repeat customer visits, nutritious food to attract health-conscious families, and promoting birthday parties during the week.

Seasonality

The winter months are usually the strongest, and the beginning of spring and the beginning of the school year are usually the weakest periods. On a quarterly basis, Kid's World's best quarter should be the first, followed by the third, second, and fourth quarters. To manage this seasonal variation in customer demand, management will actively monitor weekly sales volume and maintain a flexible staffing arrangement.

Threat of a Fad Product

There is a risk that children may tire of the concept of indoor padded playgrounds. To keep the concept fresh, Kid's World will strive to introduce new play equipment, skill games, and/or new marketing concepts annually. In addition, the franchisor is committed to ongoing research and development in the area of child interaction and stimulation through consultation with staff child psychologists.

Safety/Liability Concerns

To reduce the potential for injuries and lawsuits, Kid's World will employ every means possible to protect children from hurting themselves on the play equipment. Kid's World will only utilize the softest and most extensively-padded equipment in the industry. Furthermore, Kid's World will employ trained staff to continuously monitor each play area and enforce the rules of the playpark. The playpark will be designed to provide parental viewing on all sides and at all times. Parents will also be encouraged to play in the equipment with their children (knee pads will be available for a nominal charge.) In addition, security wristbands will be issued to each person upon entering to ensure the child's safety and prohibit stranger abduction of children. Strict security measures will be observed at all times. Kid's World will carry a $1 million per occurrence liability insurance policy in the event of lawsuit.

Nature of Competition

Competition in the children's recreation and entertainment industry consists of a highly diverse group of children's activities, including television, libraries, YMCA's, health clubs, parks and other recreation centers, movies, the zoo, and related activities. All of these activities provide for enjoyment by both the parents and the children. However, an indoor playground offers a safe, clean indoor environment for physical activity that is specifically designed for children. It provides children with the security and the skill development opportunities that parents desire.

The indoor playground industry is relatively new. Among the existing players in the indoor playground industry, competition is fragmented. The only company with a strong national presence is Surprise Land, possessing over 250 store locations across the United States, Canada, Mexico, and Europe. A significant threat also exists from Connell Corporation, which has started an indoor playground concept of its own, Jungle Play. Although Jungle Play is still in a testing phase, Connell's has the resources and experience to expand its concept rapidly. In addition, there are numerous regional players with fewer than 10 stores across the nation, although relatively few of them are actively seeking franchisees.

Presently, there are no indoor children's playgrounds operating in the Livonia area. Within a 25 minute drive from Livonia are the following primary competitors to Kid's World:

Indoor Playground: Kid's World

Competitive Advantage

After reviewing the characteristics and environment of each of the above competitors, we believe that Kid's World offers several advantages over the existing competitors. First, Kid's World offers the lowest admission price, charging $4.95 per child, of any establishment dedicated to providing an extensive indoor playground. Second, Kid's World encourages parents to participate in their children's recreational activities through a careful layout of the playpark which ensures high visibility of the play areas and close proximity for the parents. Third, Kid's World is the only indoor playground operator that provides such unique play equipment as the Magic Keyboard, an air mattress, and games of skill that are specifically designed to promote child development. Fourth, Kid's World goes to extra lengths to ensure the safety and security of the environment by providing such extras as CPR certification for all employees of a certain level, video monitors of the entire playpark, and strictly controlling the entrances and exits to Kid's World. Last, with the corporate Kid's World location being so close to Michigan, name recognition should be high, as many of the potential customers have already been to the existing Kid's World location.

Analysis of Competitors

The following section briefly discusses each competitor's market position, strategy, and unique operating characteristics.

Captain Sam's

Captain Sam's primary focus is on an extensive array of video games, mini-rides, interactive skill games, a puppet show, and food. Although it has a small playpark area for toddlers, Captain Sam's is primarily dedicated to food service and games. Consequently, it serves as a destination business for pre-planned visits, centered around its food service for family outings and birthday parties. It is an open layout with more windows than other children's entertainment centers and has the atmosphere of a large noisy cafeteria. It charges no entry fee, but maintains high prices for its pizza, ice cream, and beverages. Catering more to parents, the Ypsilanti location allows smoking and serves alcoholic beverages along with pizza, hot dogs, and nachos. It does not instill a sense of security for the parents, nor does it provide the challenging and stimulating environment that children desire.

Surprise Land

With over 250 fun centers in operation as of April 1994, Surprise Land is the largest operator of indoor playgrounds for children. The company was founded in 1990 and began its early growth through franchising. In 1993, Reeves Entertainment acquired 20.1% of Surprise Land's shares with an option to purchase additional shares up to a 51% interest in the company. In order to sustain market leadership and pre-empt competitive threats, Surprise Land has adopted an aggressive expansion campaign with the goal of securing what they feel are the best locations across the country. Specifically, Surprise Land plans on opening 90-100 domestic fun centers a year and franchisees are expected to open another 100 in 1994, the majority of which will be opened by Reeves Entertainment. At this rate, they will have an estimated 360-400 stores by the end of this year and 600 by 1996. This rapid expansion is evidence of the acceptance of this concept by both children and adults. To complete this aggressive plan, Surprise Land has adopted a regional organizational structure and invested in systems to operate and maintain a chain with hundreds of stores in many markets.

In October, 1993, Surprise Land entered the Detroit market by opening its first store location in Warren (east side of Detroit), followed by additional locations in Taylor (downriver area), Plymouth (western suburb), Farmington Hills (northern suburb). Surprise Land has future plans for an additional locations in the metro-Detroit area, including Troy, Novi, and Ann Arbor. In addition, Surprise Land is planning to locate in such outstate areas as Flint, Lansing, Traverse City and Saginaw.

Surprise Land is similar in concept to Kid's World in that it provides a controlled environment for children to play in and explore with their parents. It consists of the Menster-Zone, a 3,000 to 4,000 square foot play area for children aged 4 to 12, the Tiny-Zone, a smaller play area for toddlers, an area of interactive skill games, five or six party rooms, and a snack bar serving foods such as pizza, hot dogs, popcorn, and ice cream. In addition, Surprise Land provides a quiet room for parents who wish to let their children enjoy the play areas unattended.

The primary difference between Surprise Land and Kid's World is the emphasis on a safe, clean, secure atmosphere as well as the level of encouraged interaction between child and parent. While Surprise Land promotes the safety and security aspects of its play areas, it's easier for children to leave the premises unnoticed and it allows adults to tour the facilities unescorted. Furthermore, the snack bar seating is usually located in the center of the play space, leading to sticky floors, congested walkways, and visible food wrappers next to trash dispensers in every interior corner of the playpark. The play structure at Surprise Land is contained in a smaller area than Kid's World and is typically placed in a corner of the facility. This can lead to heavy congestion in the play area during peak hours, a restriction of airflow throughout the playpark, and a general lack of incentive for parents to interact with their children. Kid's World's play structure is located in the center of the room with benches provided on the walls surrounding the structure, promoting visibility at all times by the parents and staff monitors and encouraging parent/child interaction.

Jungle Play

A subsidiary of Connell Corporation, Jungle Play started in 1991 and has since grown to approximately 40 locations nationwide. Connell's plans for Jungle Play include a steady but cautious introduction of new stores located primarily in major market areas. In the Detroit area, Jungle Play outlets are located in Southfield, Dearborn Heights, and Redford Township. Connell's usually builds free-standing structures on land located adjacent to major shopping malls. Therefore, it is likely that Jungle Play may be looking at the available real estate on the exterior of Novi Mall for future expansion. If Jungle Play were to locate in Novi they could represent formidable competition for Kid's World. However, the strong demographics of this area suggest that it could support 3 or more children's indoor play facilities.

Jungle Play is similar in concept to Kid's World and Surprise Land in that it provides a safe, secure, clean, and stimulating environment for children to play in. Jungle Play is somewhat larger in size than Kid's World. Unlike Surprise Land, Jungle Play's play structure is designed to promote parent/child interaction. Jungle Play is particularly adept at providing birthday services by including such extras as a name board to alert all customers of the day's birthday children, a cart for transporting birthday gifts, and extremely friendly and courteous staff. Jungle Play obtains additional business by giving discounts during non-peak hours, allowing groups to rent the facility after-hours, and promoting such activities as overnight lock-ins, fund raisers, and school fieldtrips.

Kidville opened its first and only location this past March in Garden City and has since expressed interest in franchising its concept. Similar in size and appearance to Surprise Land, Kidville offers a multi-level play-park complete with treeforts and slides for children over 4 and a separate play area for children under the age of 4. It is similar in concept to Surprise Land, Jungle Play, and Kid's World, but it does not represent a formidable threat since it has not yet decided to expand via franchising or additional corporate locations.

Kid's World will derive its sales revenues from admissions, games of skill, restaurant/snack bar operations, birthday party packages, and gift shop and souvenir sales. A detailed description of each component of revenue is provided below.

Admissions/Games

Admission fees will be $4.95 per child (ages 1-17) which includes unlimited play in all of the play areas. Adults will be admitted free of charge and encouraged to play in the play areas with their children. This price compares favorably to other forms of family entertainment such as movies where both adults and children must pay admission. The goal of Kid's World is for a visit to the playpark to become a regular family event. Reflecting this goal, a frequent user card will enable a customer to receive discounts off future admissions to Kid's World after a specified number of paid admissions to the playpark. Statistics from the corporate location show the average child returning seven times per year. In addition, Kid's World will offer group discounts for groups of 12 or more at $3.95 per person to encourage day care centers, youth group activities, and summer camps to visit the playpark. For larger groups of 30 or more children, Kid's World offers a special package at $5.00 per child that includes unlimited play in the playpark, two game tokens per child, a slice of pizza or a hot dog, and a beverage.

The 125 person capacity snack bar will offer food products that appeal to both children and parents alike. It will offer traditional children's favorites such as pizza, hot dogs, and popcorn as shown below on a sample menu:

Indoor Playground: Kid's World

Birthday Party Packages

For family celebrations Kid Kingdom will offer three birthday packages for parties of 8 of more, consisting of a two hour limited time of play, birthday cake and ice cream, free game tokens, and, depending on the type of package, pizza or hot dogs and a special gift for the birthday child. The three birthday packages offered include the following:

έ Regal Celebration $7.95 per child Three game tokens per child Invitations/Balloons Nine-inch double layer cake Pop/punch Ice cream

έ Supreme Celebration $8.95 per child Three game tokens per child Invitations/Balloons Half-sheet cake Pop/punch Ice cream Pizza or hot dogs Special Kid Kingdom gift for the birthday child

"Supreme "Theme" Celebration $10.95-$12.95 per child Includes all items in Supreme Celebration, plus: Special theme gifts for all children in the party Custom decorated half-sheet cake

Gift Shop/Souvenirs

The gift shop will contain various souvenir merchandise available for sale such as T-shirts, hats, sweaters, and wristbands with the Kid Kingdom logo. The gift shop will also provide various prizes and gifts for children to redeem with tickets received from completing the games of skill.

Indoor Playground: Kid's World

Break-Even Analysis

Projected fixed costs for an average month include the following:

Indoor Playground: Kid's World

Hence, at a projected gross margin of 78% (contribution margin of 83% less franchise fees of 5% of sales) monthly break-even volume is:

$50,919/.78 = $65,281 or 4,340 visits per month

Per the attached financial projections, break-even is projected to be achieved at a monthly revenue level of $65,281. Given our revenue forecasts of $82,213 per month, it appears that we will be able to exceed break-even revenue levels at significantly less volume. Competitive assessment suggests that indoor playgrounds of comparable size and scope typically exceed the break-even monthly sales level within the first month after opening.

Hours of Operation

Initially, store operating hours will be from 10 AM to 9 PM Monday through Thursday, 10 AM to 10 PM Friday and Saturday, and 12 PM to 6 PM on Sunday.

Sources of Inputs

Indoor Playground: Kid's World

Description of Cost Items

We have identified a prospective rental location of 14,000 square feet and have negotiated a ten-year lease with one ten-year optional extension. The rental payment schedule is as follows:

Indoor Playground: Kid's World

The terms of this lease call for a one month's rent security deposit. Per agreement with the prospective landlord, our first ninety days of occupancy will be free of rent. We anticipate the first thirty days of that period will be devoted to equipment set-up and staff training, hence we estimate approximately sixty days after opening as the date the first rental payment will be due. The lease does not contain a percentage rent clause based on achievement of certain sales levels.

Leasehold Improvements

The majority of leasehold improvements will be completed by the landlord prior to our occupancy. These include painted outer walls, carpeted and/or tiled flooring, acoustical tile drop ceiling with recessed flourescent lighting, two restrooms, and a manager's office. Items we have budgeted for include: party room construction (estimated by landlord at $10,000), signage - an exterior facade sign, an interior neon sign, and an exterior sign for the shopping center's pylon sign [estimated at $15,000), front entry desk and counter-tops (estimated by franchisor at $9,000), and wall decorations, decorative lighting, party room decoration, storage room shelving and lockers, workshop/game repair room, and miscellaneous items (total budget of $11,000).

Fixtures and Equipment

In addition to the leasehold improvements, we have budgeted $50,000 for restaurant fixtures and furnishings. These include pizza ovens, refrigeration units, beverage dispensers, sinks, countertops, tables and bench seats, and storage shelving. The two most significant equipment expenditures are the main playpark structure (including the toddler play structure) and the various games of skill. The total cost of the playpark structure has been budgeted at $220,000 and depends on many factors, including its overall size, configuration, and complexity. The franchisor has developed several playpark layouts to accomodate the unique characteristics of our rental space. Preliminary estimates from two indoor playground manufacturers have been in the range of $175,000 - $200,000 for the entire playpark structure. Typically, 50% of the total purchase price is due upon ordering the equipment and the remaining 50% is due upon shipment. Lead-time for playpark equipment has been estimated at 7-8 weeks. The total cost of the games of skill has been budgeted at $75,000. The franchisor has developed an extensive list of pre-approved games of skill to select from, most individual games priced between $2,000 and $5,000 each. Most game equipment companies also require 50% down when ordering and the remaining 50% upon shipment with an estimated lead-time of 4-6 weeks. We have also budgeted $15,000 for computer hardware, $5,000 for the franchisor's software programs, and $5,000 for miscellaneous office equipment, such as a copy machine, fax machine, public address system, and telephones.

Depreciable Total and Method

The depreciable costs listed above are summarized as follows:

Indoor Playground: Kid's World

These capital expenditures will be depreciated using the Modified Accelerated Costs Recovery System (MACRS) over various lengths depending on the useful lifes of the assets as mentioned above.

Utilities include electricity, gas, and water/sewer. Our estimates of electricity, gas, and water/sewer costs (based on franchisor estimates and contact with Detroit Edison, MichCon, and the City water department), suggest annual utilities will cost approximately $25,000.

Kids World will carry extensive insurance policies protecting it in the event of lawsuit. The insurance policies carried include: $1,000,000 per incident premises liability insurance covering bodily injury, property damage, and non-owned autos; $1,000,000 product liability insurance coverage; 100% replacement coverage on building contents and leasehold improvements; three month business interruption insurance, and worker's compensation insurance as required by law. These insurance policies have been estimated at $15,000 on an annual basis.

Inventory will consist of redemption items, game tokens, tickets, identification bracelets, paper products, food ingredients, restaurant supplies, and gift shop sale items. The budgeted initial investment in inventory is $7,500 based on franchisor estimates.

Working Capital

Based on franchisor estimates, Kid's World will require $50,000 of available cash, line of credit, or other liquid reserves to cover operating expenses for wages, utilities, rent, and similar expenses.

Business Organization

The business will be organized as a partnership under the name of Kid's World. Thomas Jones and Alice Cushaw will serve as Registered Agents.

Staffing Plan

Indoor Playground: Kid's World

In the event Kid's World's acceptance is slower than anticipated, expenses can be reduced as follows:

Certain games and planned playpark additions can be leased, reducing up-front cash expenditures by $20,000 - $50,000.

The Secretary position can be eliminated and its job responsibilities performed by the two Assistant Managers. This can reduce salary expenditures by $20,000 annually.

Since the majority of Kid's World's employees are part-time and only scheduled to work up to two weeks in advance, the employment level can quickly and easily be adjusted to operating conditions.

Management fees can be reduced or eliminated entirely, as the member-managers do not depend on the business as their main source of income. This can reduce expenditures by up to 5.0% of sales, or up to $50,000.

These savings can significantly reduce operating expenses in the event of unforseen circumstances, lowering the break-even volume of the store.

Projected Revenue Buildup

Indoor Playground: Kid's World

Projected Revenues by Source

Indoor Playground: Kid's World

Projected Start-up Costs

Indoor Playground: Kid's World

Projected Salary and Wage Expense

Indoor Playground: Kid's World

Management Fee Schedule

Indoor Playground: Kid's World

Projected Capital Contributions by Source

Indoor Playground: Kid's World

Proforma Income Statement - Year 1

Indoor Playground: Kid's World

Proforma Balance Sheet - Year 1

Indoor Playground: Kid's World

Proforma Statement of Cash Flows - Year 1

Indoor Playground: Kid's World

Proforma Income Statement - Year 2

Indoor Playground: Kid's World

Proforma Balance Sheet - Year 2

Indoor Playground: Kid's World

Proforma Statement of Cash Flows - Year 2

Indoor Playground: Kid's World

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