1. Chapter 1
Project Summary
Introduction
Computer shop business is one of the most in demand businesses here in
Bulacan. Nowadays, internet cafes are really in demand because of the fast changing
technology that the people embraced just like here in the Philippines. Some have
their own laptops and bring it to coffee shops so that they could relax and at the same
time prepare their assignments and paper works. The people today are very busy and
would want to do their jobs in a beautiful and innovative environment that could
satisfy their needs and lessen their stress due to busy schedule.
Name of the Firm
The proposed name of the firm is “AC COMPUTER SHOP”. The owner will
register the firm with the Department of Trade and Industry (DTI) and Local
Government Unit (LGU) concerned. The firm will be registered as single proprietorship.
The business is about computer shop.
Location
The business will be renting a space along Hi-way near to Government Office, and
schools. The target consumers are students, teachers, office workers, and nearby
neighborhood especially those people whose relatives or loved ones are abroad.
The two hundred (200) meter radius requirements as provided in the existing zoning
code and other applicable rules and regulations wherein computer shops and other
similar establishments and places of amusements should be put up or constructed at
least two hundred (200) meters away from the church, schools, hospitals and other
government offices shall be strictly complied with.
Long Range Objectives of the Project
The AC Computer Shop looks forward to be the most competitive shop in
Bocaue and nearby towns of Bulacan. The proponent dreams of making profit and
staying long in the business.
For operating and establishing “AC COMPUTER SHOP”, I am having some objectives.
1. To earn profit at less investments.
2. To satisfy our customers providing best quality service at effective price.
3. Providing the service at low cost by providing the best quality at affordable price.
4. To know a fair return on the capital invested by the owner.
2. Feasibility Criteria
The following are the most important criteria by which almost every subject
is being measured:
1. Raising Funds or Capital – this is the number one need of a business man
in putting up a business. Whether he will produce the money by his own
pocket or he will have a business loan in a bank.
2. Recognize profit from the business – the main reason of a person for going
into business is profit. People tend to enter into this kind of business
because of their expectation to earn money or have an income.
3. It helps the economic growth of the area – this company will give a
job opportunity to the resident of bulacan.
4. Enhance the availability of the company – the company will become stable
if it has the ability to compete to his competitor and ability to continue
operations yet there is expected risks in a business.
Market Strategies
To penetrate the target market, different marketing strategies and promotions will be
considered. Leaflets will be distributed and handed out to various business establishments,
offices, schools, bus and jeepney stations, friends, and relatives. Games and services offered
will be displayed on the store window. I will offer promo’s to attract the consumer like cheaper
rate for computer rental, and membership card. I will put a tarpaulin on the place itself where
my shop is standing, promoting the opening of my computer shop also one month before the
opening. To let the people know that there will be a new Computer Shop on the vicinity.
Lastly, I will keep developing my skills by attending seminars to improve my
knowledge and to be updated in this business.
3. Chapter 2
Market Study
As the popularity of the Internet continues to grow at an exponential rate,
easy and affordable access is quickly becoming a necessity of life. “AC Computer
Shop” provides communities with the ability to access the Internet and share
Internet experiences in a comfortable environment.
People of all ages and backgrounds will come to enjoy the unique, up to
date, and innovative environment that “AC Computer Shop” provides.
Service Description
AC Computer Shop will provide its customers with full access to the
Internet and common computer software and hardware. Some of the Internet
and computing services available to AC Computer Shop are listed below:
· Surf the web at warp speed!
· Chat online using Instant Messenger, Yahoo, IRC or Pal Talk.
· Have a video conference with a business associate, family member or friend.
· Experience hot Internet games like World of Warcraft, Warcraft III, Counter-
Strike, Battle Realms and Dance Audition and autojam (3Mbps downstream and
upstream) with outrageous ping times.
· Hook up your laptop to our Internet connection via Ethernet cable. You can
even send a print job from your laptop to our network color laser printer.
· Rent AC Computer Shop for your late-night or all-night gaming party.
· Send and receive email using your home or business account, or set up a
free email account using Yahoo, Hotmail or any other web-based service.
· Create your own greeting cards, flyers, school reports or presentations using
Print Shop, Microsoft PowerPoint or Microsoft Publisher and print them in color.
· Download shareware programs in the blink of an eye and copy them to a CD or Zip Disk.
· Scan a picture using one of our self-service photo scanners and send via email.
· Plan your next vacation or print out driving directions.
· Listen to music clips and watch videos from your favorite performers with iTunes,
Yahoo Music or RealVideo/RealAudio.
· Type resumes, letters and term papers with Microsoft Word.
· Send and receive faxes on AC Computer Shop’s color fax machine.
· Find that dream job using CareerBuilder or Monster Jobs.
· Check out continuously updated news, sports highlights, weather, and stock quotes.
· Enjoy quiet online board games from Yahoo. You can even join a Yahoo league!
· AC Computer Shop will also accept computer repair.
You'll appreciate surfing and gaming at AC Computer Shop. It has super-fast Internet
connection; you'll be visiting all your favorite sites in record time. Multi-player gaming is
4. quicker and more exciting when you and your friends are able to do battle with no lag
and plenty of bonding for everyone.
My friendly staff is ready to help with your computer needs.
Guidelines of Business
· All malicious sites are blocked.
· We’re not allowing inserting flash drive or any storage device without the
consent of the shop staff.
· Eating and drinking in the gaming and typing area is not allowed, they
are only allow to eat and drink in the waiting area.
· One person for one unit to maintain orderliness.
Ambiance
· Not too dark and bright because we want the shop more encouraging to
work and play.
· Our computer tables have a board between users for privacy purposes.
· All furniture are fully furnished and labor included.
Price Study
It is one of the considerations of the customer that enhance them to rent
computers. If the price is lower they will rent.
The following services are:
Amount
Internet/Games
Php. 15.00 /
hour
Printing black& white(short) 4.00
(Long) 5.00
Colored (logo size) 8.00
Photocopying (short) 0.75
(Long) 1.00
Scanning 10.00
CD burning (max. of 17 songs) 35.00
Other services:
Pay phone (for every 3 min.) 5.00
Computer Repair (labor) 250.00
5. Factors Affecting the Market
Factors that I consider while putting up my own Computer Shop:
· Location – picking a good spot is an advantage for me.
· Competition – most business – minded people think of competition as a race
to charge the lower prices in order to win the customers.
· Software Licensing – it’s really important to have an original operating system,
because pirated OS can eventually damage the system.
· Expected ROI – investing money in a business is a risk in my case the well
tabulated if financial statement is my major concern.
Internet Connection
The major cost of a computer shop is the internet connection. For providing
better service, the proposed project will use a high band width connection for better
speed as the project is going on to provide service of video chat. It is recommended
that the internet connection should be taken from the best internet service provider.
Recommended Connection
If the project is set up in area, where DSL Internet connection is available, it is
recommended to use DSL Internet connection instead of any other Internet connection.
This will improve the speed of internet, which will improve the performance of video
chat and will also reduce the telephone expense.
Marketing Program
AC Computer Shop has three main strategies. The first strategy focuses
on attracting novice Internet users, by providing a novice friendly environment, AC
Computer Shop hopes to educate and train a loyal customer base.
The second, and most important, strategy focuses on pulling in power Internet users.
Power Internet users are extremely familiar with the Internet and its offerings. This group of
customers serves an important function at AC Computer Shop. Power users have knowledge
and web-browsing experience that novice Internet users find attractive and exciting.
The third strategy focuses on building a social environment for AC Computer
Shop customers. A social environment, that provides entertainment, will serve to attract
customers that wouldn't normally think about using the Internet. Once on location at AC
Computer Shop, these customers that came for the more standard entertainment
offerings will realize the potential entertainment value the Internet can provide.
6. Attract Power Internet Users
AC Computer Shop’s second strategy will be focused on attracting power
Internet users. Power Internet users provide an important function. AC Computer Shop
plans on attracting this type of customer by:
· Providing the latest in computing technology.
· Providing scanning and printing services.
· Providing access to powerful software applications
The large student and nearby neighborhood population will become an
important part of the AC Computer Shop customer base. The student population
continues to grow with the success of the educational institutes. Access to the internet,
entertainment, and the upscale ambiance will attract the students. Business
community is growing rapidly with the addition of new companies day by day.
AC Computer Shop will provide an opportunity to local and traveling professionals to
check their e-mails communications; this will be an attracting entity for the middle income group
and for the residents of Bocaue as they do not have access to the internet at their living places.
Market Growth
The market for the services AC Computer Shop will offer is growing rapidly. The
computer shop hasn't come to this area yet, but similar services are growing rapidly on a global
scale. Large cities that cater to large numbers of traveling business people have been
saturated with businesses offering the services AC Computer Shop will offer. Business people
use the Internet services to catch up on email and communications with their family. My area
supports a population that has many of the same needs and interests of this larger group. The
student population continues to grow as the University grows in popularity with high-school
graduates from out of state. These students tend to have money and an interest in up-scale
social centers. AC Computer Shop will target these groups with the use of fliers and tarpaulin.
7. SWOT Analysis
The SWOT analysis provides us with an opportunity to examine the internal strengths and
weaknesses AC Computer Shop must address. It also allows us to examine the opportunities
presented to AC Computer Shop as well as potential threats. AC Computer Shop has a useful
inventory of strengths that will help it succeed. These strengths include: a knowledgeable and
friendly staff, modern computer hardware, and a clear vision of the market need. Strengths are
valuable, but it is also important to realize the weaknesses AC Computer Shop must address.
These weaknesses include: a dependence on quickly changing technology and the cost factor
associated with keeping modern computer hardware. AC Computer Shop’s strengths will help it
capitalize on rising opportunities. These opportunities include, but are not limited to, a growing
population of daily Internet users, and the growing social bonds fostered by the new Internet
communities. Threats that AC Computer Shop should be aware of include, the rapidly falling cost of
Internet access, and rising local competitors.
Strengths
1. Knowledgeable and friendly staff – I’ve gone to great lengths at AC
Computer Shop to find people with a passion for teaching and sharing their
Internet experiences. My staff is both knowledgeable and eager to please.
2. Modern equipment – Part of the AC Computer Shop experience includes
access to modern computer equipment. My customers enjoy beautiful and
convenient units’ displays, fast machines, and high-quality printers.
3. Up-scale ambiance – When you walk into AC Computer Shop or even sit
at my waiting area, you'll feel the technology. Great sound background, nice
lighting that sets the mood and the whole area was clean.
4. Clear the vision of the market need – AC Computer Shop knows what it
takes to build an upscale computer shop. I and my staff know the customers,
the technology, and how to build the service that will bring the two together.
Weaknesses
1. A dependence on quickly changing technology – AC Computer Shop is a place
for people to experience the technology of the Internet. The technology that is the
Internet changes rapidly. Product lifecycles are measured in weeks, not months.
AC Computer Shop needs to keep up with the technology because a lot
of the AC Computer Shop experience is technology.
2. Cost factor associated with keeping state-of-the-art hardware – Keeping
up with the technology of the Internet is an expensive undertaking. AC
Computer Shop needs to balance technology needs with the other needs of
the business. One aspect of the business can't be sacrificed for the other.
Opportunities
1. Growing population of daily Internet users – The importance of the Internet
almost equals that of the telephone. As the population of daily Internet users
increases, so will the need for the services AC Computer Shop offers.
2. Social bonds fostered by the new Internet communities – The Internet is
bringing people from across the world together unlike any other communication
medium. AC Computer Shop will capitalize on this social trend by providing a
8. place for smaller and local Internet communities to meet in person. AC
Computer Shop will grow some of these communities on its own by
establishing chat areas and community programs. These programs will
be designed to build customer loyalty
Threats
1. Rapidly falling cost of Internet access – The cost of access to the
Internet for home users is dropping rapidly. Internet access may become so
cheap and affordable that nobody will be willing to pay for access to it. AC
Computer Shop is aware of this threat and will closely monitor pricing.
2. Rising local competitors – Currently, AC Computer Shop is enjoying a
first-mover advantage in the local computer shop market. However,
additional competitors are on the horizon, and I need to be prepared for
their entry into the market. Many of my programs will be designed to build
customer loyalty, and it is my hope that my quality service and up-scale
ambiance won’t be easily duplicated.
Market Needs
As the popularity of internet continues to grow at an exponential rate, easy and
affordable access is quickly becoming a necessity of life. Public wants access to the
methods of communication and volumes of information now available on the internet,
and access at a cost they can afford and in such a way that they are not socially,
economically, and politically isolated.
Market Trends
More than ninety percent of my customers are youngsters and their only
objective to get to these is to get enjoyment.
Marketing Strategies
I create some advertising strategies like I will print a thousand of fliers printed with
the total cost of Php. 908.00 (500 pieces on small fliers that cost Php. 220.50, while the
second fliers are also 500 pieces with the cost of Php. 687.50), a month before the opening
me and my staff will distribute the fliers. I will also put tarpaulin on the place itself where my
shop is standing a month before the opening. It will promote the services offered and also
the opening of my Computer Shop. To let the people know that there will be a new
Computer Shop on the vicinity. The tarpaulin size is 64” x 100”and amounting Php. 497.75.
Management Strategies
Maintain a focus on quality products with bottom-line growth through cost
reduction and optimal performance. I also focus on technology and innovation to make
sure our employees skills are up to standard with today’s mode of production.
9. Demand
Demand in Internet Services for the last five years:
Table 1.1
Year
Quantity Demand
(in peso)
Figure 1.1
2004 38,720
2005 70,400
2006 82,800
2007 112,250
2008 175,110
As
you can
see there
is 8.08
percent of
demand in
internet
service in
year 2004 and increase of 6.6 percent on the next year. In 2006 there is 17.28 percent
of demand in internet service and increase of 6.14 percent in year 2007 and in the year
2008 there’s a demand of 36.54 percent in internet services.
I will use the “Arithmetic Straight Line” method in projecting the demand for the next
five years.
Yc = a + Yi - 1 Yc = initial value
Yn = final value
Yi – 1 = value for past years
where: a = Yn – Yc
N-1
Computation:
a = 175,110 – 38,720 = 34,098
5 – 1
2009 = 34,098 + 175,110 = Php. 209,208.00 2012 = 34,098 + 277,404 = Php. 311,502.00
2010 = 34,098 + 209,208 = Php. 243,306.00 2013 = 34,098 + 311,502 = Php. 345,600.00
2011 = 34,098 + 243,360 = Php. 277,404.00
10. Projected Demand for five years:
Table 1.2 Figure
1.2
Year Quantity Demand
(in peso)
2009 209,208
2010 243,306
2011 277,404
2012 311,502
2013 345,600
Supply
Supply in the Internet Services for the last five years:
Table 2.1
Figure
2.1
Year
Quantity Supply
(in peso)
2004 21,120
2005 35,200
2006 41,400
2007 51,800
2008 107,770
As you can see there is 8.21 percent of supply in internet service in year 2004
and increase of 5.47 percent on the next year. In 2006 there is 16.09 percent of supply
in internet service and increase of 5.05 percent in year 2007 and in the year 2008
there’s a supply of 41.87 percent in internet services.
I will use the “Arithmetic Straight Line” method in projecting the supply for the next five
years.
11. Yc = a + Yi - 1 Yc = initial value
Yn = final value
where: a = Yn – Yc
Yi – 1 = value for past
years
N-1
Computation:
a = 107,770 – 21,120 = 21,663
5 – 1
2009 = 21,663 + 107,770= Php. 129,433.00 2012 = 21,663 + 172,759= Php. 194,422.00
2010 = 21,663 +129,433 = Php. 151,096.00 2013 = 21,663 + 194,422= Php. 216,085.00
2011 = 21,663 + 151,096= Php. 172,759.00
12. Projected Supply for five years:
Table 2.2
Figure
2.2
Year
Quantity
(inSupplied
peso)
2009 129,433
2010 151,096
2011 172,759
2012 194,422
2013 216,085
Demand
and
Supply
Analysis
The table and figure below will shows the projected demand and supply of AC
Computer Shop for the next five years in percentage.
Table 3
Year
Percentage of Percentage of
Quantity Quantity
Demand Supplied
2009 15.08 14.98
2010 17.54 17.49
2011 20 20
2012 22.46 22.51
2013 24.92 25.02
100% 100%
Figure 3
13. The figure 3 shows the projected demand and supply of AC Computer Shop for
the next five years.
In year 2009 there is a 15.08% of demand on internet services, that’s why AC Computer
Shop needs a 14.98% to supply the demand. In 2010 there is 17.54% in demand and 17.49% in
supply, while in 2011 it has a 20% both in demand and in supply. And in 2012 there is 22.46% in
14. demand and 22.51% in supply. For the fifth year 2013 it has a 24.92% in demand and
25.02% of supply.
In totality, every year AC Computer Shop will increase of 2.46% in demand and
2.51% in supply.
Chapter 3
Technical Feasibility
In this chapter, I will discuss the product, the manufacturing process of my business
including the plant size and production schedule. I will also discuss the machinery and
equipment and also the other computer application that I will use in the business.
15. In order for me to lessen my expenses, I purchase equipment in packages. I
focus much in the hardware and software. I research on how much the hardware and
software will cost me, through net surfing.
The Services
The following services of AC Computer Shop are listed below:
• Gaming • Down loads
• Typing • Cd – burning
• Searching the net •
Computer
Repair
· Printing/ Photo
copying/Fax/Scanning
For gaming I will install popular online games like Warcraft, Counter strike, Battle
Realms, Dance Audition, and Autojam. In typing I will install original Operating System of
MS Office Professional 2007 like MS Word, Excel, Power point, Access, Desktop
Publishing. I will have printer, Scanner, Photocopier, and Fax Machine for the Printing,
Photo copying, and faxing. AC Computer Shop will also offer other services like DVD/CD
burning, Pay phone, and Computer Repair.
Manufacturing Process
This is the AC Computer Shop’s manufacturing process.
The “AC Computer Shop” will provide the product and services to the customers, and
then the customer will give income or profit to AC Computer Shop in return. The income or
profit that the customer gave in return will used to provide the product and services.
Plant Size and Production Schedule
The “AC Computer Shop” will operate seven days a week. AC Computer Shop
opens at 8:00 am ahead to the other competitors. This will lead my shop of being known.
My goal is to give the needs of the students and others in early manner of time.
AC Computer Shop’s Time Schedule
Opening Closin Operatin
g
16. g hours
Monday 8:00 AM 11:00 PM 15
Tuesday 8:00 AM 11:00 PM 15
Wednesday 8:00 AM 11:00 PM 15
Thursday 8:00 AM 11:00 PM 15
Friday 8:00 AM 11:00 PM 15
Saturday 8:00 AM 11:00 PM 15
Sunday 8:00 AM 11:00 PM 15
Total Operating Hours per week 105
Machinery and Equipment
The proposed project is going to be of 10 units of computer systems and the
details of the equipment required for the project is given below:
List of Hardware:
Brand
name Description Amount
Package PC’s 10 units of PC w/
Printer
Pentium 4 Complete accessories Php. 15,500.00
Samsung 3-in-1; Laser Printer,
Fax Machine
SCX-4200 Scanner, Copier 4,999.00
Panasonic Fax Machine with
KX-FT933
Automatic Paper
Cutter 5,790.00
Modem DSL Smart Bro 999.00
Computer Application
Software:
OS MS Office 2007 4,999.00
Anti-virus and Anti spy ware 7,200.00
Game Software:
Warcraft (dota) 1,450.00
Counter Strike 350.00
Battle Realms 720.00
Dance Audition 1,968.00
Autojam 1,968.00
Total Machinery and
Equipment Cost Php. 45,943.00
Furniture and Fixtures
The project is based on Pentium-4 computer systems. Second hand systems
are also available in the market at much lower prices. The reason for using the latest
system is the new software coming in the market that requires more powerful systems
which will provide better service to the customer. The price of computer systems
17. varies with the introduction of new technology in the market.
Description
Quantit
y
Unit
Price Total Price
Computer Cabinet 10 250 Php. 2,500.00
Table for waiting area 1 400 400.00
Air Conditioner 1 6,500 6,500.00
Mono block chair 10 230.5 2,305.00
office chair for server 1 745.75 745.75
Cabinet for the supplies 1 950 950.00
Pad Lock 2 750 1,500.00
Total Furniture and
Fixtures Cost Php. 14,900.75
Plant Location
Plant Layout
“AC Computer Shop”
Building and Facilities
Description Amount
Rent ( 2,500*12) Php. 30000.00
Construction of the Shop 3,000.00
Total Building and facility Cost Php. 33,000.00
19. The material needed for the operation of the business:
Description Price
Bond Paper Php 150.00
CD w/ Case
Ball pen
Stapler 100.00
Staple wire
HP
96 Black Ink 800.00
HP
97 Tri-Color 850.00
Record Book
Fire Extinguisher 10 lbs. 3,950.00
(500pcs./ri
m)
/set
/box
(12pcs)
Total Raw Materials and Supplies Cost
Php
5,966.00
Utilities
Description Monthly Cost Total Amount (year)
Electricity Php. 5,000.00 Php. 60,000.00
Water 117.50 1,410.00
Total Utility Cost Php. 61,410.00
Waste Disposal
AC Computer Shop can manage the waste
disposal properly, because every Monday, Wednesday,
Friday and Sunday is the schedule in collecting all the
garbage in barangay Poblacion, Bocaue.
Cleaning Materials Price
Broom & Dust Pan Php. 105.00
– replace every 5
months
Trash Can 100.00
Feather Dust 60.00
– 2pcs. Good for 3
months
Mop 250.00
– replace every 5
months
Powder Soap 60.00
– 6pcs. Good for 2
months
Air Freshener 175.00
– replace every 2
months
Total Waste Disposal Cost Php. 750.00
Legal Requirements
20. Registration with BIR ( Bureau of Internal
Revenue)
Registration of Business Name with DTI
(Department of Trade and Industry)
Barangay Clearance and Business Permit
Mayors Permit
Legal Requirements Cost
Barangay Clearance Php 150.00
Mayor’s Permit 4,000.00
Business Tax 950.00
Business Plate 100.00
Sanitary Permit 250.00
Occupational Tax 400.00.
Inspection Fee 500.00
Filing 100.00
Processing 120.00
Zoning 350.00
Electrical Inspection 250.00
Fire Inspection 350.00
BIR 300.00
DTI 5,750.00
Total Legal Requirement Cost Php 13,570.00
Production Cost
The details of production cost for the project are
given below:
Labor Requirements
Estimated Annual Cost for Salaries and Wages
Description Monthly Salary Annual
Salary
Manager Php. 8,000.00
Php.
96,000.00
Employee 4,500.00 54,000.00
21. Total Salaries and Wages
Cost Php. 150,000.00
* Additional fee to my employee for computer repair (labor)
Php 250.00
Requirement on Hiring an Applicant
Applicant must be 20 years old, residence of
Bocaue …
· Resume
· Two valid I.D.
· Birth Certificate (NSO)
· N.B.I Clearance
