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20944696 ac-computer-shop-feasibility-studies


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20944696 ac-computer-shop-feasibility-studies

  1. 1. Chapter 1 Project SummaryIntroduction 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 thepeople embraced just like here in the Philippines. Some have their own laptops and bring it tocoffee shops so that they could relax and at the same time prepare their assignments and paperworks. The people today are very busy and would want to do their jobs in a beautiful andinnovative environment that could satisfy their needs and lessen their stress due to busyschedule.Name of the Firm The proposed name of the firm is “AC COMPUTER SHOP”. The owner will register thefirm 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 computershop.Location The business will be renting a space along Hi-way near to Government Office, andschools. The target consumers are students, teachers, office workers, and nearby neighborhoodespecially those people whose relatives or loved ones are abroad.The two hundred (200) meter radius requirements as provided in the existing zoning code andother applicable rules and regulations wherein computer shops and other similar establishmentsand places of amusements should be put up or constructed at least two hundred (200) metersaway from the church, schools, hospitals and other government offices shall be strictly compliedwith.Long Range Objectives of the Project The AC Computer Shop looks forward to be the most competitive shop in Bocaue andnearby towns of Bulacan. The proponent dreams of making profit and staying long in thebusiness.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. 2. Feasibility Criteria The following are the most important criteria by which almost every subject is beingmeasured: 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 beconsidered. Leaflets will be distributed and handed out to various business establishments,offices, schools, bus and jeepney stations, friends, and relatives. Games and services offered willbe displayed on the store window. I will offer promo’s to attract the consumer like cheaper ratefor computer rental, and membership card. I will put a tarpaulin on the place itself where myshop is standing, promoting the opening of my computer shop also one month before theopening. 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 knowledgeand to be updated in this business.
  3. 3. Chapter 2 Market Study As the popularity of the Internet continues to grow at an exponential rate, easy andaffordable access is quickly becoming a necessity of life. “AC Computer Shop” providescommunities with the ability to access the Internet and share Internet experiences in acomfortable environment. People of all ages and backgrounds will come to enjoy the unique, up to date, andinnovative environment that “AC Computer Shop” provides.Service Description AC Computer Shop will provide its customers with full access to the Internet andcommon computer software and hardware. Some of the Internet and computing servicesavailable 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. Youll appreciate surfing and gaming at AC Computer Shop. It has super-fast Internetconnection; youll be visiting all your favorite sites in record time. Multi-player gaming is
  4. 4. quicker and more exciting when you and your friends are able to do battle with no lag and plentyof 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 theprice 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. 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 betterservice, the proposed project will use a high band width connection for better speed as theproject is going on to provide service of video chat. It is recommended that the internetconnection 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 isrecommended to use DSL Internet connection instead of any other Internet connection. This willimprove the speed of internet, which will improve the performance of video chat and will alsoreduce the telephone expense.Marketing Program AC Computer Shop has three main strategies. The first strategy focuses onattracting novice Internet users, by providing a novice friendly environment, AC Computer Shophopes 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 ofcustomers serves an important function at AC Computer Shop. Power users have knowledge andweb-browsing experience that novice Internet users find attractive and exciting. The third strategy focuses on building a social environment for AC Computer Shopcustomers. A social environment, that provides entertainment, will serve to attract customers thatwouldnt normally think about using the Internet. Once on location at AC Computer Shop, thesecustomers that came for the more standard entertainment offerings will realize the potentialentertainment value the Internet can provide.
  6. 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 thistype 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 ofthe AC Computer Shop customer base. The student population continues to grow with thesuccess of the educational institutes. Access to the internet, entertainment, and the upscaleambiance will attract the students. Business community is growing rapidly with the addition ofnew companies day by day. AC Computer Shop will provide an opportunity to local and traveling professionals tocheck their e-mails communications; this will be an attracting entity for the middle income groupand 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. Thecomputer shop hasnt come to this area yet, but similar services are growing rapidly on a globalscale. Large cities that cater to large numbers of traveling business people have been saturatedwith businesses offering the services AC Computer Shop will offer. Business people use theInternet services to catch up on email and communications with their family. My area supports apopulation that has many of the same needs and interests of this larger group. The studentpopulation continues to grow as the University grows in popularity with high-school graduatesfrom 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. 7. SWOT Analysis The SWOT analysis provides us with an opportunity to examine the internal strengthsand weaknesses AC Computer Shop must address. It also allows us to examine the opportunitiespresented to AC Computer Shop as well as potential threats. AC Computer Shop has a usefulinventory of strengths that will help it succeed. These strengths include: a knowledgeable andfriendly staff, modern computer hardware, and a clear vision of the market need. Strengths arevaluable, 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 factorassociated with keeping modern computer hardware. AC Computer Shop’s strengths will help itcapitalize on rising opportunities. These opportunities include, but are not limited to, a growingpopulation of daily Internet users, and the growing social bonds fostered by the new Internetcommunities. Threats that AC Computer Shop should be aware of include, the rapidly fallingcost 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, youll 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 cant 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. 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 loyaltyThreats 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 affordableaccess is quickly becoming a necessity of life. Public wants access to the methods ofcommunication and volumes of information now available on the internet, and access at a costthey can afford and in such a way that they are not socially, economically, and politicallyisolated.Market Trends More than ninety percent of my customers are youngsters and their only objective to getto these is to get enjoyment.Marketing Strategies I create some advertising strategies like I will print a thousand of fliers printed with thetotal cost of Php. 908.00 (500 pieces on small fliers that cost Php. 220.50, while the second fliersare also 500 pieces with the cost of Php. 687.50), a month before the opening me and my staffwill distribute the fliers. I will also put tarpaulin on the place itself where my shop is standing amonth before the opening. It will promote the services offered and also the opening of myComputer 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 andoptimal performance. I also focus on technology and innovation to make sure our employeesskills are up to standard with today’s mode of production.
  9. 9. Demand Demand in Internet Services for the last five years: Table 1.1 Quantity Demand Year (in peso) 2004 38,720 Figure 1.1 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 andincrease of 6.6 percent on the next year. In 2006 there is 17.28 percent of demand in internetservice and increase of 6.14 percent in year 2007 and in the year 2008 there’s a demand of 36.54percent in internet services. I will use the “Arithmetic Straight Line” method in projecting the demand for the nextfive years. Yc = a + Yi - 1 Yc = initial value Yn = final value Yi – 1 = value for past yearswhere: a = Yn – Yc N-1Computation: a = 175,110 – 38,720 = 34,098 5–12009 = 34,098 + 175,110 = Php. 209,208.00 2012 = 34,098 + 277,404 = Php. 311,502.002010 = 34,098 + 209,208 = Php. 243,306.00 2013 = 34,098 + 311,502 = Php. 345,600.002011 = 34,098 + 243,360 = Php. 277,404.00 Projected Demand for five years: Table 1.2 Figure 1.2 Quantity Demand Year (in peso) 2009 209,208 2010 243,306 2011 277,404
  10. 10. 2012 311,502 2013 345,600Supply Supply in the Internet Services for the last five years: Table 2.1 Figure 2.1 Quantity Supply Year (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 andincrease of 5.47 percent on the next year. In 2006 there is 16.09 percent of supply in internetservice and increase of 5.05 percent in year 2007 and in the year 2008 there’s a supply of 41.87percent in internet services. I will use the “Arithmetic Straight Line” method in projecting the supply for the next fiveyears. Yc = a + Yi - 1 Yc = initial value Yn = final value Yi – 1 = value for past yearswhere: a = Yn – Yc N-1Computation: a = 107,770 – 21,120 = 21,663 5–12009 = 21,663 + 107,770= Php. 129,433.00 2012 = 21,663 + 172,759= Php. 194,422.002010 = 21,663 +129,433 = Php. 151,096.00 2013 = 21,663 + 194,422= Php. 216,085.002011 = 21,663 + 151,096= Php. 172,759.00
  11. 11. Projected Supply for five years: Table 2.2 Figure 2.2 Quantity Year Supplied (in peso) 2009 129,433 2010 151,096 2011 172,759 2012 194,422 2013 216,085Demand and Supply Analysis The table and figure below will shows the projected demand and supply of AC ComputerShop for the next five years in percentage. Table 3 Percentage of Percentage of Year 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 The figure 3 shows the projected demand and supply of AC Computer Shop for the nextfive years. In year 2009 there is a 15.08% of demand on internet services, that’s why AC ComputerShop needs a 14.98% to supply the demand. In 2010 there is 17.54% in demand and 17.49% insupply, while in 2011 it has a 20% both in demand and in supply. And in 2012 there is 22.46% in
  12. 12. demand and 22.51% in supply. For the fifth year 2013 it has a 24.92% in demand and 25.02% ofsupply. 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 businessincluding the plant size and production schedule. I will also discuss the machinery andequipment and also the other computer application that I will use in the business.
  13. 13. In order for me to lessen my expenses, I purchase equipment in packages. I focus much inthe 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, BattleRealms, Dance Audition, and Autojam. In typing I will install original Operating System of MSOffice Professional 2007 like MS Word, Excel, Power point, Access, Desktop Publishing. I willhave 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, andComputer 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, andthen the customer will give income or profit to AC Computer Shop in return. The income orprofit 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 at8:00 am ahead to the other competitors. This will lead my shop of being known. My goal is togive the needs of the students and others in early manner of time. AC Computer Shop’s Time Schedule
  14. 14. Closin Operating Opening 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 105Machinery and Equipment The proposed project is going to be of 10 units of computer systems and the details of theequipment required for the project is given below: List of Hardware: Brand name Description Amount Package PC’s 10 units of PC w/ Pentium 4 Complete accessories Php. 15,500.00 Printer Samsung 3-in-1; Laser Printer, SCX-4200 Scanner, Copier 4,999.00 Fax Machine 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. 45,943.00Furniture and Fixtures The project is based on Pentium-4 computer systems. Second hand systems are alsoavailable in the market at much lower prices. The reason for using the latest system is the newsoftware coming in the market that requires more powerful systems which will provide betterservice to the customer. The price of computer systems varies with the introduction of newtechnology in the market.
  15. 15. Description Quantity Unit Price Total PriceComputer Cabinet 10 250 Php. 2,500.00Table for waiting area 1 400 400.00Air Conditioner 1 6,500 6,500.00Mono block chair 10 230.5 2,305.00office chair for server 1 745.75 745.75Cabinet for the supplies 1 950 950.00Pad Lock 2 750 1,500.00Total Furniture andFixtures Cost Php. 14,900.75Plant LocationPlant Layout “AC Computer Shop”Building and Facilities Description AmountRent ( 2,500*12) Php. 30000.00Construction of the Shop 3,000.00Total Building and facility Cost Php. 33,000.00Raw Materials and Supplies
  16. 16. The material needed for the operation of the business:Description PriceBond Paper Php 150.00 (500pcs./rim)CD w/ Case 13.00 /setBall pen 48.00 /box (12pcs)Stapler 100.00Staple wire 30.00HP 96 Black Ink 800.00HP 97 Tri-Color 850.00Record Book 25.00Fire Extinguisher 10 lbs. 3,950.00Total Raw Materials and Supplies Cost Php 5,966.00Utilities 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. 61,410.00Waste 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 barangayPoblacion, 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  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
  17. 17. 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 13,570.00Production Cost The details of production cost for the project are given below:Labor Requirements Estimated Annual Cost for Salaries and WagesDescription Monthly Salary Annual SalaryManager Php. 8,000.00 Php. 96,000.00Employee 4,500.00 54,000.00Total Salaries and Wages Cost Php. 150,000.00* Additional fee to my employee for computer repair (labor) Php 250.00Requirement 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
  18. 18. • SSS number• Vocational Graduate (computer technician)• Hardworking