How to Setting up a computer center in Minimum Cost

1. SETTING UP A COMPUTER
BUSINESS CENTRE

2. INPUTS TO A BUSINESS
The important inputs to a business are :-
Will Power: A person who wants to set up a business either in trade or industry is called an
entrepreneur. An entrepreneur makes best use of the available machinery, manpower and
money for producing goods or service. A unit set up by an entrepreneur is called an
enterprise.
Place: Place for a CBC unit involves generally a room of the minimum size of 20 sq.
metre. The space should be sufficient for installing computer and accessories, office space
and space for visitors.
Capital: Once you decide on the place of your business, you require money. Money
invested in the business is called Capital. Capital are required: Capital is fixed when it
involves procuring land, building, equipment, machinery, vehicles, furniture and fixtures, etc.
Working capital is required for meeting day to day expenses of an enterprise. These
include purchase of raw material, stationery, payment of bills like water, electricity,
telephone, wages of staff/labourer and traveling/conveyance charges.
Finance: Fixed capital generally remains constant over a longer period and is required
only in the beginning stage. On the other hand, working capital is required frequently. It is
implied that after sometime money starts coming out of the business and thus working
capital is met out of the turnover.

3. INTRODUCTION
Today, the computer and IT have changed the complete global scenario. Computers are widely
used in every sphere of life and have wide ranging commercial use coupled with internet such as
e-mail, browsing, web browsing, e-commerce, e-governance etc. An internet cafe or cyber cafe is
a place which provides internet access to the public, usually for a fee. This project profile is
proposed for information technology related services such as Internet & Desk Top Publishing
(DTP), Scanning Work, Printing work, etc.
MARKET POTENTIAL
The IT services sector, being the fastest growing has tremendous potential for growth. India is
one of the leading nations in e-commerce and other IT enabled services. The younger generation
is very much inclined towards computer and IT. These factors have created a need for Cyber
cafes servicing center with IT enabled services. The Plant and machinery for the project is
available in local market.

4. IMPLEMENTATION SCHEDULE
The major activities in the implementation of the project have been listed and the average time
for implementation of the project is estimated at 6 months:
i. Preparation of Project Report : 1 Month
ii. Registration & Other Formalities : 1 Month
iii. Sanction of Loan by Financial Institutions : 2 Months
iv. Recruitment of Technical Personnel etc. : 2 Months
TECHNICAL ASPECTS
Service Capacity
Internet Browsing Rs. 10,00,00
Desk Top Publishing (DTP), Rs. 2,50,00
Scanning Work, Printing Work etc.
Total Rs. 12,50,000
Motive Power :- 5 kVA

5. FINANCIAL ASPECT
Fixed Capital
Land & Building:
Land & Building on Rent--------------------------------Rs. 8,000/- per month
Covered area ------------------------------------------------500 Sq
Machinery and Equipments

6. Other Fixed Assets
Total Fixed Capital Rs. 5,82,600 /-
Working Capital (per month)
Personnel

7. Raw Materials including Packaging Materials
Utilities
Power Rs. 5,000
Other Contingent Expenses
S. No. Description Value (Rs.)
1 Rent ------------------------------------------------------------------------------------8,000
2 Postage & Stationery -----------------------------------------------------------------500
3 Telephone/Telex/Fax charges ----------------------------------------------------1,000
4 Repair & Maintenance -------------------------------------------------------------2,500
5 Transport and conveyance Charges ---------------------------------------------1,000
6 Advertisement/Publicity -------------------------------------------------------------500
7 Insurance and taxes -----------------------------------------------------------------1,000
8 Miscellaneous Expenses -----------------------------------------------------------1,000
Total -----------------------------------------------------------15,500

8. Total Recurring Expenditure (per month) --------- Rs. 68,850/-
Total Capital Investment
Fixed Capital Rs. 5,82,600
Working Capital (for 1 month) Rs. 68,850
Total Rs. 6,51,450/-
FINANCIAL ANALYSIS
Cost of Operation (per annum)
S.No. Description Amount (Rs.)
1 Total Recurring Cost per year ------------------------------------------- 8,26,200
2 Depreciation on Machinery & Equipment @ 10% ---------------------- 46,600
3 Depreciation on Office Equipment & Furniture @ 20% ----------------- 10,000
4 Depreciation on tools, jigs, fixtures etc. @ 25 % ------------------------ 2,500
5 Interest on Total Investment @ 13% 84,689
Total 9,69,989

9. Turnover (per annum)