Introduction
Ajman Net internet café seeks to establish itself in the market by offering residents of Ajman access to the internet and other forms of entertainment. The firm seeks to create a positive image in the market to enable it to compete effectively with other firms offering similar services. The firm intends to offer its customers a memorable experience to encourage them to make return visits. High-quality customer service is one of the key elements of the firm’s business strategy.
Mission
The firm intends to provide high-quality internet and entertainment services to Ajman residents. It intends to open the largest chain of integrated cafés offering internet services and billiard games to clients within the next three years.
Budget
The amount of money required to start this business is about 100,000 Dhs, which will be used to finance different areas of operations. This initial capital will be used to acquire computers and other equipment needed to make the business operate. The firm will carry out an assessment of various opportunities in the market to establish its viability.
Marketing Plan
Pricing
The firm will introduce an effective pricing method to ensure it offers customers high value for their money. The pricing format used will correspond to the quality of services offered to ensure customers appreciate them. Internet usage will be charged on –minute basis. The minimum amount of time billed for each internet browsing session in the café will be 30 minutes. Snacks, cold drinks, and hot beverages will be offered at an extra cost. The billiard section will bill each client for every single game he or she plays (Bradley 65).
Distribution
These services will be offered to clients in a single facility separated into three sections. Customers will be able to make orders for snacks and drinks while browsing the internet or playing billiard games. The spatial arrangement within the premises will make it easy for clients and employees to move around. The business will offer customers a relaxed and comfortable atmosphere to make them cherish their experience. The firm will acquire state of the art furniture to encourage customers to spend more time in the establishment.
Promotion
The firm intends to attract clients aged 15 to 40 because they spend a lot of time on the internet. The firm will choose appropriate marketing channels to help it create a positive impression on them. The main promotional approach will be word of mouth, together with fliers, to make potential clients aware of its services. The firm will also advertise its services through social media, to attract target customers. The firm intends to use direct marketing channels for marketing its products to potential clients. This will enable the firm to establish strong relationships with its clients to help it improve the value it offers to them. The firm will establish strong networks with its clients through the internet, to help it monitor different areas of its operations that affect the quality of its services (Bradley 68).
Product Features
The firm will offer an integrated service experience to its clients. Internet browsing services will be billed on a per-minute basis. Other additional services will include printing, scanning, photo editing, and photocopying. The firm will also sell snacks, hot beverages, and cold drinks. The firm intends to start with two billiard tables, where clients will play in pairs, and they will be charged for every game they play.
Controls
The firm will create policies to be followed by all workers in the way they discharge their duties. All employees will have to undergo health tests to ensure that they are suitable for positions assigned to them. The firm will also assess its employees from time to time to establish if they offer clients high-quality services. Customers will be allowed to share their opinions and feedback to help the firm make crucial improvements in its operations. This approach will be used to improve the value proposition of services the firm offers in the market (Kolb 78).
Organization Plan
Form of Ownership
The founder will seek the support of other entities to raise funds needed to run this venture successfully. The founder will look for two partners who will be offered a joint stake of sixty percent in the firm. The founder will own the remaining 40 percent stake. This approach will make it possible for the business to keep operating effectively in the market.
Identification of Partners
The founder will approach several members of the business community with the business plan, to make them aware of his intent to start a profitable venture. The founder will focus on partners that have knowledge in running similar business ventures; to ensure the business generates enough income to sustain itself in the industry. The founder seeks to have partners that will add value to the business to give it a competitive edge in the market.
Authority of Principals
All partners will have an equal stake in the running of the company and will make joint decisions regarding how the firm’s operations run. However, the firm will need two active and one silent partner to run its operations effectively. One partner will be in charge of the internet café while the other partner will be in charge of billiards and the hospitality section. The remaining partner will be required to liaise with external stakeholders to bring the firm more business (Kolb 86).
Management Team Background
The founder is an IT expert, and he will run the internet café more effectively. One of the partners needs to have business management skills to ensure the firm observes prudent financial management. The firm will also need one accountant and two customer service assistants who are professionals in IT, hospitality, and customer service. The firm will operate with seven employees, in the beginning, to reduce high labor costs.
Roles and Responsibilities of Members
The three partners will contribute financial support to the firm to enable it to achieve its objectives in the industry. The partners will formulate effective business strategies that enable the firm to maintain its competitive edge in the market. They will identify trends and opportunities in the market that allow the firm to grow its revenues. All partners will have to comply with important legal requirements to ensure the firm complies with all regulations in the industry (Kolb 90).
Financial Plan
Assumptions
Many young people want an environment where they can socialize and relax. The location will allow customers to play, eat, and have fun. The internet café will be the flagship brand of the business and will be complemented by billiard games and hospitality section. This will enable the firm to increase the value attached to its services by customers to enable it to perform well in the market.
Pro Forma Income Statement
This pro forma statement will be used to forecast sources of revenue and expenses the business will incur in the next two years.
Figure 1: Pro Forma Income Statement for Business Venture.
Cash Flow Projections
This will be used to assess the ability of the firm to run short term operations that require a lot of liquid cash.
Figure 2: Cash flow projections for the business.
Break-Even Analysis
The firm seeks to recoup the invested capital after a period of three years. These projections show that the firm will experience positive growth in revenues in the next three years. The firm will be able to more branches after this period, and this will help strengthen the value of its brand in the market. This business model works well for the firm in the industry.
Sources of Funds
Partners will be expected to provide initial capital to help the firm run its operations. They will also be required to finance other expenses in the future to help the firm carry out its functions without any challenges.
Works Cited
Bradley, Nigel. Marketing Research: Tools and Techniques. Oxford: Oxford University Press, 2007. Print.
Kolb, Bonita. Marketing Research: A Practical Approach. London: Sage Publications, 2008. Print.