MKAMI cyber café BUSINESS PLAN

MKAMI cyber café, unlike a typical cafe, will provide a unique forum for communication and entertainment through the medium of the Internet. MKAMI cyber café 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. MKAMI cyber café 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 $52,340. 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.
MKAMI cyber café will be incorporated under MKAMI CONSULTANTS COMPANY LIMITED.
The financing, in addition to the capital contributions from the owner and donors fund, will allow MKAMI cyber café to successfully open and maintain operations through year one. The large initial capital investment will allow MKAMI cyber café 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 MKAMI cyber café with a customer base that will allow it to be self sufficient in year two.
1.1 Objectives
MKAMI cyber café objectives for the first three years of operation include:
• The creation of a unique, upscale, innovative environment that will differentiate MKAMI cyber café from local cafés.
• 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.
• Affordable access to the resources of the Internet and other online services.


1.2 Keys to Success
The keys to the success for MKAMI cyber café are:
• The creation of a unique, innovative, upscale atmosphere that will differentiate MKAMI cyber café from other local and future Internet cafes.
• The establishment of MKAMI cyber café as a community hub for socialization, education and entertainment.
• The creation of an environment that won't intimidate the novice user. MKAMI cyber café will position itself as an educational resource for individuals wishing to learn about the benefits the Internet has to offer.
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. MKAMI cyber café provides communities with the ability to access the Internet and share Internet experiences in a comfortable environment. People of all ages and backgrounds will come to enjoy the unique, upscale, educational, and innovative environment that MKAMI cyber café provides.
1.4 Risks
The risks involved with starting MKAMI cyber café are:
• Will there be a demand for the services offered by MKAMI cyber café in Mpwapwa?
• Will the popularity of the Internet continue to grow, or is the Internet a fad?
• Will individuals be willing to pay for the service MKAMI cyber café 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 MKAMI cyber café?
Company Summary
MKAMI cyber café, soon to be located in Mpwapwa, will offer the community easy and affordable access to the Internet. MKAMI cyber café will provide full access to email, WWW, FTP (File Transfer Protocol), Usenet and other Internet applications. MKAMI cyber café will also provide customers with a unique and innovative environment for enjoying great coffee, specialty beverages, and bakery items.
MKAMI cyber café will appeal to individuals of all ages and backgrounds. The instructional Internet classes, and the helpful staff that MKAMI cyber café 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 location will provide business people with convenient access to their morning coffee and online needs.
2.1 Company Ownership
MKAMI cyber café is a privately held under MKAMI Consultants Company Limited and Bishop Simon Chiwanga the founder of the MKAMI Consultants Company Limited, is the majority owner.
2.2 Start-up Summary
MKAMI cyber café’s start-up costs will cover 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 MKAMI cyber café'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 plus two air conditioner units. Costs will also be designated for the purchase of a laser printer, a photocopier and a scanner.
The site 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.
The Basic Requirements are:
Hardware needed
1. 15 client PCs
2. 1 PC to control clients a.k.a server
3. 24 port switch/hub
4. 1 Modem with bult-in router (broadband modem)
5. 2 Laser Printers
6. 1 Scanner
7. 1 Photocopy machine
8. 2 Air conditioner units
Client & Server PCs 16 units
-Processor- at least Pentium 4
-Hard Disk Drive- at least 40 GB
-RAM memory- at least 256 MB
-Monitor (flat screen) - at least 15”
-Motherboard- Good brand with integrated sound and VGA cards, separate AGP card is the best
-Keyboard & Mouse- scroll mouse
-Headphones with microphone
-100Mbps Network Card
-CDRW Drive
Software needed
1. Reboot Restoration Utility- Deepfreeze or Norton Goback
2. Internet Café Management Software- CC Auto Soft
3. Anti Virus

Start-up Expense Details:
• 16 computers = $32,000
• two printers = $1,000
• one scanner = $500
• software = $800
• one photocopy machine = $2000
• two split type air conditioner units = $1400
• one information display counter = $500
• one drinking/eating counter = $500
• sixteen stools = $1000
• sixteen computer desks w/chairs = $2,400
• stationery goods = $500
• one telephone = $100
• decoration expense = $1,000





Start-up

Requirements Cost

Start-up Expenses:

Legal $500
Stationery etc. $500
Brochures $200
Consultants $100
Insurance $700
Rent $1800
Computer Systems (x16), Software, Printer, Scanner, Copier $35500
Communication Lines $840
Fixtures/Remodel $5000
Total Start-up Expenses $45140

Start-up Assets:

Cash Required $5,000
Start-up Inventory $800
Other Current Assets $0
Long-term Assets $0
Air conditioner $1400
Total Assets $7200

Total Requirements $52,340

2.3 Company Locations and Facilities
A site has been chosen at Mkapa street in Mpwapwa. This site was chosen for various reasons, including:
• Proximity to the town business community.
• Proximity to trendy, upscale shops and restaurants.
• Low cost rent - $300 per month square for 1700 square feet.
• High visibility.
All of these qualities are consistent with MKAMI cyber café’s goal of providing a central hub of communication and socialization for the Mpwapwa community.
Services
MKAMI cyber café will provide full access to email, WWW, FTP and other Internet applications. Printing, scanning, photocopying and introductory courses to the Internet will also be available to the customer. MKAMI cyber café will also provide customers with a unique and innovative environment for enjoying great tea or coffee, specialty beverages, and bakery items.
3.1 Competitive Comparison
MKAMI cyber café will be the first Internet cafe in Mpwapwa. MKAMI cyber café will differentiate itself from the strictly-coffee cafes in Mpwapwa by providing its customers with Internet and computing services.
3.2 Service Description
MKAMI cyber café will provide its customers with full access to the Internet and common computer software and hardware. Some of the Internet and computing services available to MKAMI cyber café customers are listed below:
• Access to external POP3 email accounts.
• Customers can sign up for a MKAMI cyber café email account. This account will be managed by MKAMI cyber café servers and accessible from computer systems outside the MKAMI cyber café network.
• Popular Internet utilities will be available such as FTP.
• Access to Netscape or Internet Explorer browser.
• Access to typing services, photocopying, laser and color printing.
• Access to popular software applications like Adobe PhotoShop and Microsoft Word, Microsoft Excel, Power Point etc.
MKAMI cyber café 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, MKAMI cyber café 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 MKAMI cyber café will provide. Good coffee, specialty drinks, bakery goods, and a comfortable environment will provide MKAMI cyber café 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
MKAMI cyber café will obtain computer support and Internet access from University Computer Center (UCC) owned by the University of Dar es Saalam located in Dodoma (100 kilometers from Mpwapwa). UCC will provide the Internet connections, network consulting, and the hardware required to run the MKAMI cyber café. At this time, a plan and contract for the coffee shop and bakery items has not been completed but will soon be completed and fulfilled by the owner.
3.4 Technology
MKAMI cyber café 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. MKAMI cyber café 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 4 PC in their home or office.
3.5 Future Services
As MKAMI cyber café 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, MKAMI cyber café will continue to add new services to keep its customer base coming back for more.

Market Analysis Summary
MKAMI cyber café is faced with the exciting opportunity of being the first-mover in the Mpwapwa 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 Mpwapwa.
4.1 Target Market Segment Strategy
MKAMI cyber café intends to cater for 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, MKAMI cyber café 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 MKAMI cyber café PCs, or plug their notebooks into Internet connections. MKAMI cyber café's target market covers a wide range of ages: from members of Generation X who grew up surrounded by computers, students from the three colleges located at Mpwapwa, secondary and primary school students 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 June 2009. 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.
• One dollar 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 Mpwapwa, MKAMI cyber café will enjoy the first-mover advantages of name recognition and customer loyalty. Initially, MKAMI cyber café will hold a 100 percent share of the cyber-cafe market in MKAMI cyber café. In the next five years, competitors will enter the market. MKAMI cyber café has set a goal to maintain greater than a 50 percent market share.
4.2 Market Segmentation
MKAMI cyber café'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. MKAMI cyber café's target market falls anywhere between the ages of 15 and 65. This extremely wide range of ages is due to the fact that both coffee/tea and the Internet appeal to a variety of people. In addition to these two broad categories, MKAMI cyber café '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 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. MKAMI cyber café 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 MKAMI cyber café 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 Mpwapwa, presents MKAMI cyber café 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 Hafuns restaurant and Silver restaurant. These businesses are located in or near the town area, and target a similar segment to MKAMI cyber café's (i.e. educated, upwardly-mobile students and business people).
Competition from online service providers is less since there is no local Internet café in Mpwapwa, the only competition comes from national firms such as colleges and government offices which are not supposed to provide the service commercially. The number is expected to grow with the increasing demand for Internet access. Due to the nature of the Internet, there are no geographical boundaries restricting competition.
4.3.2 Business Participants
There are number of online service providers available in Mpwapwa. 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. 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.

Strategy and Implementation Summary
MKAMI cyber café has three main strategies. The first strategy focuses on attracting novice Internet users. By providing a novice friendly environment, MKAMI cyber café hopes to educate and train a loyal customer base.
The second, and most important, strategy focuses on pulling in power Internet users. Power Internet users are extremely familiar with the Internet and its offerings. This group of customers serves an important function at MKAMI cyber café. Power users have knowledge and web-browsing experience that novice Internet users find attractive and exciting.
The third strategy focuses on building a social environment for MKAMI cyber café customers. A social environment, that provides entertainment, will serve to attract customers that wouldn't normally think about using the Internet. Once on location at MKAMI cyber café, these customers that came for the more standard entertainment offerings, will realize the potential entertainment value the Internet can provide.
5.1 Strategy Pyramid
The following subtopics provide an overview of MKAMI cyber café's three key strategies. Strategy pyramid graphics are presented in the appendix of this plan.
5.1.1 Attract Power Internet Users
MKAMI cyber café 's second strategy will be focused on attracting power Internet users. Power Internet users provide an important function at MKAMI cyber café. MKAMI cyber café plans on attracting this type of customer by:
• Providing the latest in computing technology.
• Providing scanning and printing services.
• Providing access to powerful software applications.
5.1.2 Social Hub
The third strategy focuses on building a social environment for MKAMI cyber café customers. A social environment, that provides entertainment, will serve to attract customers that wouldn't normally think about using the Internet. Once on location at MKAMI cyber café, these customers that came for the more standard entertainment offerings, will realize the potential entertainment value the Internet can provide.
5.1.3 Attract Novice Internet Users
MKAMI cyber café 's first strategy focuses on attracting novice Internet users. MCC plans on attracting these customers by:
• Providing a novice friendly environment. MKAMI cyber café will be staffed by knowledgeable employees focused on serving the customer's needs.
• A customer service desk will always be staffed. If a customer has any type of question or concern, a MKAMI cyber café employee will always be available to assist.
• MKAMI cyber café will offer introductory classes on the Internet and email. These classes will be designed to help novice users familiarize themselves with these key tools and the MKAMI cyber café computer systems.


5.2 SWOT Analysis
The SWOT analysis provides us with an opportunity to examine the internal strengths and weaknesses MKAMI cyber café must address. It also allows us to examine the opportunities presented to MKAMI cyber café as well as potential threats.
MKAMI cyber café has a valuable inventory of strengths that will help it succeed. These strengths include: a knowledgeable and friendly staff, state-of-the-art computer hardware, and a clear vision of the market need. Strengths are valuable, but it is also important to realize the weaknesses MKAMI cyber café must address. These weaknesses include: a dependence on quickly changing technology, and the cost factor associated with keeping state-of-the art computer hardware.
MKAMI cyber café's strengths will help it capitalize on emerging opportunities. These opportunities include, but are not limited to, a growing population of daily Internet users, and the growing social bonds fostered by the new Internet communities. Threats that MKAMI cyber café should be aware of include, the rapidly falling cost of Internet access, and emerging local competitors.
5.2.1 Weaknesses
1. A dependence on quickly changing technology. MKAMI cyber café is a place for people to experience the technology of the Internet. The technology that is the Internet changes rapidly. Product lifecycles are measured in weeks, not months. MKAMI cyber café needs to keep up with the technology because a lot of the MKAMI cyber café experience is technology.

2. Cost factor associated with keeping state-of-the-art hardware. Keeping up with the technology of the Internet is an expensive undertaking. MKAMI cyber café needs to balance technology needs with the other needs of the business. One aspect of the business can't be sacrificed for the other.
5.2.2 Opportunities
1. Growing population of daily Internet users. The importance of the Internet almost equals that of the telephone. As the population of daily Internet users increases, so will the need for the services MKAMI cyber café offers.

2. Social bonds fostered by the new Internet communities. The Internet is bringing people from across the world together unlike any other communication medium. MKAMI cyber café will capitalize on this social trend by providing a place for smaller and local Internet communities to meet in person. MKAMI cyber café will grow some of these communities on its own by establishing chat areas and community programs. These programs will be designed to build customer loyalty.
5.2.3 Threats
1. Rapidly falling cost of Internet access. The cost of access to the Internet for home users is dropping rapidly. Internet access may become so cheap and affordable that nobody will be willing to pay for access to it. MKAMI cyber café is aware of this threat and will closely monitor pricing.

2. Emerging local competitors. Currently, MKAMI cyber café is enjoying a first-mover advantage in the local cyber-cafe market. However, additional competitors are on the horizon, and we need to be prepared for their entry into the market. Many of our programs will be designed to build customer loyalty, and it is our hope that our quality service and up-scale ambiance won't be easily duplicated.
5.2.4 Strengths
1. Knowledgeable and friendly staff. We've gone to great lengths at MKAMI cyber café to find people with a passion for teaching and sharing their Internet experiences. Our staff is both knowledgeable and eager to please.

2. State-of-the art equipment. Part of the MKAMI cyber café experience includes access to state-of-the-art computer equipment. Our customers enjoy beautiful flat-screen displays, fast machines, and high-quality printers.

3. Upscale ambiance. When you walk into MKAMI cyber café, you'll feel the technology. High backed mahogany booths with flat-screen monitors inset into the walls provide a cozy hideaway for meetings and small friendly gatherings. Large round tables with displays viewable from above provide a forum for larger gatherings and friendly "how-to" classes on the Internet. Aluminum track lighting and art from local artists sets the mood. Last, but not least, quality cappuccino machines and a glass pastry display case provide enticing refreshments.

4. Clear vision of the market need. MKAMI cyber café knows what it takes to build an upscale cyber cafe. We know the customers, we know the technology, and we know how to build the service that will bring the two together.
5.3 Competitive Edge
MKAMI cyber café will follow a differentiation strategy to achieve a competitive advantage in the cafe market. By providing Internet service, MKAMI cyber café separates itself from all other cafes in Mpwpwa. In addition, MKAMI cyber café provides a comfortable environment with coffee and bakery items, distinguishing itself from other Internet providers in Mpwapwa and other places as well.
5.4 Marketing Strategy
MKAMI cyber café will position itself as an upscale coffee house and Internet service provider. It will serve high-quality coffee and espresso specialty drinks at a competitive price. Due to the number of cafes inMpwapwa, it is important that MKAMI cyber café sets fair prices for its coffee. MKAMI cyber café will use advertising as its main source of promotion. Furthermore, MKAMI cyber café will give away three free hours of Internet use to beginners who sign up for an introduction to the Internet workshop provided by MKAMI cyber café.
5.4.1 Pricing Strategy
Determining a fair market, hourly price, for online use is more difficult because there is no direct competition from another cyber-cafe in Mpwapwa. Therefore, MKAMI cyber café considered three sources to determine the hourly charge rate. First, we considered the cost to use other Internet servers, whether it is a local networking firm or a provider. Internet access providers use different pricing schemes. Some charge a monthly fee, while others charge an hourly fee. In addition, some providers use a strategy with a combination of both pricing schemes. Thus, it can quickly become a high monthly cost for the individual. Second, MKAMI cyber café looked at how cyber-cafes in other markets such as Dodoma and Dar es Salaam went about pricing Internet access. Third, MKAMI cyber café used the market survey conducted in June 2009. Evaluating these three factors resulted in MKAMI cyber café's hourly price of one dollar.
5.4.2 Promotion Strategy
MKAMI cyber café will implement a pull strategy in order to build consumer awareness and demand. Initially, MKAMI cyber café has budgeted $500 for promotional efforts which will include advertising with coupons for a free hour of Internet time in local publications and in-house promotions such as offering customers free Internet time if they pay for an introduction to the Internet workshop taught by MKAMI cyber café's computer technician.
MKAMI cyber café realizes that in the future, when competition enters the market, additional revenues must be allocated for promotion in order to maintain market share.

5.5 Sales Strategy
As a retail establishment, MKAMI cyber café employs people to handle sales transactions. Computer literacy is a requirement for MKAMI cyber café employees. If an employee does not possess basic computer skills when they are hired, they are trained by our full-time technician. Our full-time technician is also available for customers in need of assistance. MKAMI cyber café’s commitment to friendly, helpful service is one of the key factors that distinguish MKAMI cyber café from other Internet cafes.
5.6 Milestones
The MKAMI cyber café management team has established some basic milestones to keep the business plan priorities in place. Responsibility for implementation falls on the shoulders of MKAMI Consultants Company Limited.
Management Summary
MKAMI cyber café is owned and operated by Bishop Simon Chiwanga. The company, being small in nature, requires a simple organizational structure. Implementation of this organizational form calls for the owner, Mr. Njamasi Chiwanga, to make all of the major management decisions in addition to monitoring all other business activities.
6.1 Personnel Plan
The staff will consist of three part-time employees working seventy hours a week at $1 per hour. In addition, one full-time technician (who is more technologically oriented to handle minor terminal repairs/inquiries) will be employed to work fifty hours a week at $2 per hour.