Free Internet Cafe Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of an internet café while showcasing the expected financials and operations over the next three years. The Internet Café, Inc. (“the Company”) is a New York based corporation that will provide a diverse line of beverages and small food items in addition to computers with internet access to customers in its targeted market. The Company was founded in by John Doe.
1.1 Products and Services
Much like many other coffee houses, the Company will serve an expansive line of coffees, espresso, cappuccino, hot teas, and small food items and desserts. Currently, Mr. Doe is working with an architect that will produce a floor plan that will provide a maximum amount of retail space for customers. The Company’s tertiary stream of revenue will come from the sale of time for customers that want to use computers with high speed internet access. Management anticipates that customers will pay $10 per hour of internet usage (billed in 15 minute increments). The business will also offer customers the ability to connect to the business’ wireless internet connections (for $5). The third section of the business plan will further describe the services offered by the Internet Café.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Mr. Doe’s mission is to make the Internet Café into a comfortable place where people can meet and enjoy an expansive line of hot/cold beverages and small food items while having easy access to high speed internet via the Company’s computers and wi-fi ports.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the food service industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Internet Cafe, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Internet Cafe requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Internet Cafe, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Internet Cafe. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the products offered by the Internet Cafe.
3.1 Hot and Cold Beverages
The Internet Café will have a large menu of coffees (both traditional brewed coffee and specialty beverages such as espressos, cappuccinos, etc), teas, deserts, a wide assortment of traditional and vegetarian sandwiches, and freshly baked breads. The Company intends to source its deserts and breads from local bakeries as part of Management’s commitment to support the community and community businesses. The Internet Café will also feature a number of seasonal beverages and specialty coffees as they become available for purchase from the business’s wholesale supplies.
3.2 Usage of Internet
The Company will also have five or six desktop style computers that customers can use to access the internet. As stated in the executive summary, the business will generate income from the ongoing usage of these computers ($2.50 for 15 minutes of access). Customers that bring in their own computers can use the Company’s wireless internet services for a flat fee of $5. A special code will be given to customers that bring in their own computers so that they can access the wireless router. This code will be changed on a daily basis.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the cafe industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. However, internet cafes operate with great economic stability as people will continue to purchase coffee due to the low pricing point for these products in addition to using the Company’s internet access services.
4.2 Industry Analysis
The coffee and non-alcoholic retail shop industry has experienced a healthy level of growth over the past decade. The U.S. Economic Census estimates that there are over 190,000 individual cafes and specialty health food restaurants in the United States. This number is expected to increase at a rate of 5% per annum. While the growth rate of the number of establishments has increased 5% per year, the revenues generated per establishment have increased at a rate of 10% per year. The additional increase in revenues can also be attributed to the fact that more people are using cafes as an alternative place to work and conduct business. Cafes and specialty health food restaurants are beginning to act as meeting places for small business meetings. Another factor that increased the average revenues of these establishments is that most of these businesses have begun to provide their customers with electrical outlets and wireless Internet connections as to entice customers to stay at their cafés for long periods of time. As stated earlier, the Company intends to make its internet usage one of its primary revenue centers.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Internet Cafe intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Internet Cafe.
5.1 Marketing Objectives
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Establish relationships with local businesses within the targeted market.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Internet Cafe to easily target men and women within the target market. Below is a description of how the business intends to market its services to the general public. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the coffee products and internet access services that the Company is selling. At the onset of operations, the Internet Café will distribute an expansive number of coupons for low priced beverages and desserts in order to drive traffic to the café. Mr. Doe may also offer free internet usage for the first one to two months of operation. Additionally, the signage of the facility will heavily focus on the fact that customers can gain access to the internet via the computers provided by the Company or by using their own computers via the Company’s wireless router. As people often require fast access to the internet, it is imperative that Mr. Doe develop the retail facility’s signage to highlight this attribute of the business.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Internet Cafe will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. However, coffee, small food products, and internet usage services are demand individuals due to the simple fact that the pricing point for these products are very low As such, only a severe economic downturn would result in a decline in revenues.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis