Internet Cafe Business Plan

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JavaNet Internet Cafe

Financial Plan

Forecast

Key Assumptions

Our Key assumptions: 

1 – Certain members s of the community are intimidated by the internet. They want to use email and the internet but find it intimidating. They will use the internet if there is a place that comes with someone to explain it. 

2 – Students need a place to have study groups and use the internet. There are many students at the u of o, there are a shortage of resources. 

3 – Certain members of the community cannot afford to own their own computer or wifi. We are happy to let them use our place for a small fee they can afford. 

Revenue by Month

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for Net Profit (or Loss) by Year

Financing

Use of Funds

Our list of startup expenses are $56,000 dollars, as follows: 

  • 11 computers = $22,000
  • two printers = $1,000
  • one scanner = $500
  • software = $810
  • one espresso machine = $10,700
  • one automatic espresso grinder = $795
  • other fixtures and remodeling:
    • two coffee/food preparation counters = $1,000
    • one information display counter = $1,000
    • one drinking/eating counter = $500
    • sixteen stools = $1,600
    • six computer desks w/chairs = $2,400
    • stationery goods = $500
    • two telephones = $200
    • decoration expense = $13,000

Sources of Funds

This business plan is prepared to obtain financing in the amount of $24,000. 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.

Additional financing has already been secured as follows:

  1. $24,000 from the Oregon Economic Development Fund
  2. $19,000 of personal savings from owner Cale Bruckner
  3. $66,000 from three investors
  4. and $10,000 in the form of short-term loans

Statements

Projected Profit & Loss

2020 2021 2022
Gross Margin $455,890 $546,600 $636,450
Operating Expenses
Salaries & Wages $235,200 $273,216 $280,122
Employee Related Expenses $47,040 $54,643 $56,025
Rent $24,000 $24,000 $24,000
Utilities $9,120 $9,120 $9,120
Marketing / Promotion $48,000 $48,000 $48,000
Insurance $7,200 $7,200 $7,200
Startup Expenses – Listed in Use of Funds $56,000
Interest Incurred $699 $482 $303
Depreciation and Amortization
Gain or Loss from Sale of Assets
Income Taxes $2,004 $9,096 $14,817
Total Expenses $664,584 $703,157 $763,637
Net Profit $26,626 $120,843 $196,864

Projected Balance Sheet

2020 2021 2022
Cash $103,840 $215,760 $407,985
Accounts Receivable $0 $0 $0
Inventory $23,115 $27,002 $27,002
Other Current Assets
Total Current Assets $126,955 $242,762 $434,987
Long-Term Assets
Accumulated Depreciation
Total Long-Term Assets
Accounts Payable $4,571 $5,154 $5,154
Income Taxes Payable $2,004 $2,275 $3,705
Sales Taxes Payable $0 $0 $0
Short-Term Debt $5,890 $6,069 $6,254
Prepaid Revenue
Total Current Liabilities $12,465 $13,498 $15,113
Long-Term Debt $12,864 $6,795 $541
Long-Term Liabilities $12,864 $6,795 $541
Paid-In Capital $75,000 $75,000 $75,000
Retained Earnings $26,626 $147,469
Earnings $26,626 $120,843 $196,864

Projected Cash Flow Statement

2020 2021 2022
Net Cash Flow from Operations
Net Profit $26,626 $120,843 $196,864
Depreciation & Amortization
Change in Accounts Receivable $0 $0 $0
Change in Inventory ($23,115) ($3,887) $0
Change in Accounts Payable $4,571 $583 $0
Change in Income Tax Payable $2,004 $271 $1,430
Change in Sales Tax Payable $0 $0 $0
Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold
Investments Received $75,000
Dividends & Distributions
Change in Short-Term Debt $5,890 $179 $185
Change in Long-Term Debt $12,864 ($6,069) ($6,254)
Cash at Beginning of Period $0 $103,840 $215,760
Net Change in Cash $103,840 $111,920 $192,225
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