The business the report will be talking about will be an Internet Caf.
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INTRODUCTION The business the report will be talking about will be an Internet Café. The Internet café will be called my Internet Café Search the World. This shop will provide a service to the public, which involves them using the Internet, and consuming drinks and snacks. Hopefully it will be very popular, to see if it is going to be a success the report will carry out a lot of market research, for example this will tell me what location to put the shop in and how much customers are willing to pay. I will be targeting Lower class to middle class people who are willing to pay £2.00 to £2.50 for an hour session. To find out whether customers are going to pay this I will do postal research for example surveys, questionnaires this will give me a general idea of how much I should be charging and how many will pay at these prices. I will also need research to find out how many Computers I will have to install, but this all depends on demand if demand is low then there is no need for me to install a lot of computers but if demand is high and there is a very high demand for my service then I will have to install as many Computers as is possible. In order for my business to be an overwhelming success I will have to increase advertising this will make the public aware of my product and therefore it is more likely that there will be a demand for my service. The busiest days for my service will probably be the weekend as the market I am targeting will probably not be in work and will want to use their weekend to search for information. As the weekdays are not going to be as busy as the weekends I will be providing many special offers to draw customers in, the special offers will be advertised in the area which I choose to set up my business in.
The results were surprising good as most of the potential customers I asked were not already at a internet café so this is very good news for the business and I have found out that in the area I am setting up there is a gap for my service. I then asked the question how many times are you likely to visit my internet café in a week, the results for this question were very varied. The most common amount was 3 times, which I was also quite pleased with as this means I will be gaining regular customers. The majority of people are at least going to visit once a week, as my people become more aware of my business I should gain a strong customer base. I then asked the question how much are you willing to pay for a hour for the internet most people were willing to pay two to three pounds, which is reassuring as I am charging 2.50 an hour. This was a very important question to ask as I don't want to drive customers away by charging too much, if I am to make my business a success I will have to meet customer demands. TASK 3: PRODUCTION and QUALITY ASSURANCE Plan Adding value to my product is one of the important things I can do to my service, search for the world, and if I can add value to my service then customers will be more satisfied and they are likely to tell their friends what a good service I am providing and therefore I will gain more customers which will in turn increase my profits and this will give me the capital to again further my position as a company in the internet café market. There are many different things I can do to promote my service and add value to it. The first thing I am going to do in order to add value to my product is improve the speed of the internet
I also made it so that it is easier to read for the general public so that they can see exactly what my aims and objectives are and the reasons behind setting the business up, they can also have an insight into the financial side of the business and all other aspects, which I have covered. The reason I created my business plan the way I did was because I wanted to inform my customers, investors and my employees how the business is performing. So I used ratios such as ROCE, debtors collecting day and net profit margin to show these people how my business is performing. The reason why I used ROCE is because it tells them how much profit I am making. Another reason why I used my ROCE was because the figures were high so this was to persuade stakeholders to invest. The reason why I used the debtors day because it will show that we are getting the money back from debtors. The reason why the portfolio has a balance sheet, cash flow, profit and loss account is because I want to show how well my business is performing. The cash flow shows the way I am spending money and how I am receiving it. So this is very important for the investor to see because they can see if I am spending my money constructing or am I am just wasting it. The reason why I have a profit and loss account is very simple it is there to show how much profit I have made. The format I have used is because I want to show them all the things that I want to do and have done. So I have used simple format that is to flow everything along. I did not want to add things every due to the reason it may confuse the reader and may make them think of the wrong thing. The reason why I used a market model was because it would clearly show that I need to do, and it sets everything out.
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