Chapter 1

Project Summary
Introduction
Computer shop business is one of the most in demand businesses here in Basilan.
Nowadays, internet cafes are really in demand because of the fast changing technology that the
people embraced just like here in the Philippines. Some have their own laptops and bring it to
coffee shops so that they could relax and at the same time prepare their assignments and paper
works. The people today are very busy and would want to do their jobs in a beautiful and
innovative environment that could satisfy their needs and lessen their stress due to busy
schedule.
Name of the Firm
The proposed name of the firm is CRIMSON COMPUTER SHOP. The owner will
register the firm with the Department of Trade and Industry (DTI) and Local Government Unit
(LGU) concerned. The firm will be registered as single proprietorship. The business is about
computer shop.
Location
The business will be renting a space along Hi-way near to Government Office, and
schools. The target consumers are students, teachers, office workers, and nearby neighborhood
especially those people whose relatives or loved ones are abroad.
The two hundred (200) meter radius requirements as provided in the existing zoning code and
other applicable rules and regulations wherein computer shops and other similar establishments
and places of amusements should be put up or constructed at least two hundred (200) meters
away from the church, schools, hospitals and other government offices shall be strictly complied
with.
Long Range Objectives of the Project
The Crimson Computer Shop looks forward to be the most competitive shop in Isabela
and nearby towns of Basilan. The proponent dreams of making profit and staying long in the
business.
For operating and establishing Crimson COMPUTER SHOP, I am having some objectives.
1.
2.
3.
4.

To earn profit at less investments.

To satisfy our customers providing best quality service at effective price.
Providing the service at low cost by providing the best quality at affordable price.
To know a fair return on the capital invested by the owner.

Feasibility Criteria
The following are the most important criteria by which almost every subject is being
measured:
1.

Raising Funds or Capital this is the number one need of a business man in
putting up a business. Whether he will produce the money by his own pocket or he
will have a business loan in a bank.
2.
Recognize profit from the business the main reason of a person for going into
business is profit. People tend to enter into this kind of business because of their
expectation to earn money or have an income.
3.
It helps the economic growth of the area this company will give a job
opportunity to the resident of basilan.
4.
Enhance the availability of the company the company will become stable if it
has the ability to compete to his competitor and ability to continue operations yet
there is expected risks in a business.
Market Strategies
To penetrate the target market, different marketing strategies and promotions will be
considered. Leaflets will be distributed and handed out to various business establishments,
offices, schools, , friends, and relatives. Games and services offered will be displayed on the
store window. I will offer promos to attract the consumer like cheaper rate for computer rental,
and membership card. I will put a tarpaulin on the place itself where my shop is standing,
promoting the opening of my computer shop also one month before the opening. To let the
people know that there will be a new Computer Shop on the vicinity.
Lastly, I will keep developing my skills by attending seminars to improve my knowledge
and to be updated in this business.

Chapter 2
Market Study

As the popularity of the Internet continues to grow at an exponential rate, easy and
affordable access is quickly becoming a necessity of life. Crimson Computer Shop provides
communities with the ability to access the Internet and share Internet experiences in a
comfortable environment.
People of all ages and backgrounds will come to enjoy the unique, up to date, and
innovative environment that Crimson Computer Shop provides.
Service Description
Crimson Computer Shop will provide its customers with full access to the Internet and
common computer software and hardware. Some of the Internet and computing services
available to Crimson Computer Shop are listed below:

Surf the web at warp speed!

Chat online using Instant Messenger, Yahoo, IRC or Pal Talk.
Have a video conference with a business associate, family member or friend.
Experience hot Internet games like World of Warcraft, Warcraft III, Counter-Strike, Battle
Realms and Dance Audition and autojam (3Mbps downstream and upstream) with
outrageous ping times.
Hook up your laptop to our Internet connection via Ethernet cable. You can even send a
print job from your laptop to our network color laser printer.
Rent Crimson Computer Shop for your late-night or all-night gaming party.
Send and receive email using your home or business account, or set up a free email
account using Yahoo, Hotmail or any other web-based service.
Create your own greeting cards, flyers, school reports or presentations using Print Shop,
Microsoft PowerPoint or Microsoft Publisher and print them in color.
Download shareware programs in the blink of an eye and copy them to a CD or Zip Disk.
Scan a picture using one of our self-service photo scanners and send via email.
Plan your next vacation or print out driving directions.
Listen to music clips and watch videos from your favorite performers with iTunes, Yahoo
Music or RealVideo/RealAudio.
Type resumes, letters and term papers with Microsoft Word.
Send and receive faxes on Crimson Computer Shops color fax machine.
Find that dream job using CareerBuilder or Monster Jobs.
Check out continuously updated news, sports highlights, weather, and stock quotes.
Enjoy quiet online board games from Yahoo. You can even join a Yahoo league!
Crimson Computer Shop will also accept computer repair.

You'll appreciate surfing and gaming at Crimson Computer Shop. It has super-fast
Internet connection; you'll be visiting all your favorite sites in record time. Multi-player gaming
is quicker and more exciting when you and your friends are able to do battle with no lag and
plenty of bonding for everyone.
My friendly staff is ready to help with your computer needs.
Guidelines of Business

All malicious sites are blocked.

Were not allowing inserting flash drive or any storage device without the consent
of the shop staff.
Eating and drinking in the gaming and typing area is not allowed, they are only
allow to eat and drink in the waiting area.
One person for one unit to maintain orderliness.

Ambiance

Not too dark and bright because we want the shop more encouraging to work and
play.
Our computer tables have a board between users for privacy purposes.
All furniture are fully furnished and labor included.

Price Study
It is one of the considerations of the customer that enhance them to rent computers. If the
price is lower they will rent.
The following services are:
Internet/Games
Printing black& white (short)
(Long)
Colored (logo size)
Photocopying
(short)
(Long)
Scanning
CD burning (max. of 17 songs)
Other services:
Pay phone (for every 3 min.)
Computer Repair (labor)

Amount
Php. 15.00 / hour
4.00
5.00
8.00
0.75
1.00
10.00
35.00
5.00
250.00

Factors Affecting the Market

Factors that I consider while putting up my own Computer Shop:

Location picking a good spot is an advantage for me.

Competition most business minded people think of competition as a race to charge the
lower prices in order to win the customers.
Software Licensing its really important to have an original operating system, because
pirated OS can eventually damage the system.
Expected ROI investing money in a business is a risk in my case the well tabulated if
financial statement is my major concern.

Internet Connection
The major cost of a computer shop is the internet connection. For providing better
service, the proposed project will use a high band width connection for better speed as the
project is going on to provide service of video chat. It is recommended that the internet
connection should be taken from the best internet service provider.

Recommended Connection
If the project is set up in area, where DSL Internet connection is available, it is
recommended to use DSL Internet connection instead of any other Internet connection. This will
improve the speed of internet, which will improve the performance of video chat and will also
reduce the telephone expense.

Marketing Program
Crimson Computer Shop has three main strategies. The first strategy focuses on
attracting novice Internet users, by providing a novice friendly environment, Crimson Computer
Shop hopes to educate and train a loyal customer base.
The second, and most important, strategy focuses on pulling in power Internet users.
Power Internet users are extremely familiar with the Internet and its offerings. This group of
customers serves an important function at Crimson Computer Shop. Power users have
knowledge and web-browsing experience that novice Internet users find attractive and exciting.
The third strategy focuses on building a social environment for Crimson Computer Shop
customers. A social environment, that provides entertainment, will serve to attract customers that
wouldn't normally think about using the Internet. Once on location at Crimson Computer Shop,
these customers that came for the more standard entertainment offerings will realize the potential
entertainment value the Internet can provide.

Attract Power Internet Users

Crimson Computer Shops second strategy will be focused on attracting power Internet
users. Power Internet users provide an important function. Crimson Computer Shop plans on
attracting this type of customer by:

Providing the latest in computing technology.

Providing scanning and printing services.
Providing access to powerful software applications

The large student and nearby neighborhood population will become an important part of
the Crimson Computer Shop customer base. The student population continues to grow with the
success of the educational institutes. Access to the internet, entertainment, and the upscale
ambiance will attract the students. Business community is growing rapidly with the addition of
new companies day by day.
Crimson Computer Shop will provide an opportunity to local and traveling professionals
to check their e-mails communications; this will be an attracting entity for the middle income
group and for the residents of Isabela as they do not have access to the internet at their living
places.
Market Growth
The market for the services Crimson Computer Shop will offer is growing rapidly. The
computer shop hasn't come to this area yet, but similar services are growing rapidly on a global
scale. Large cities that cater to large numbers of traveling business people have been saturated
with businesses offering the services Crimson Computer Shop will offer. Business people use the
Internet services to catch up on email and communications with their family. My area supports a
population that has many of the same needs and interests of this larger group. The student
population continues to grow as the Colleges grows in popularity with high-school graduates
from out of state. These students tend to have money and an interest in up-scale social centers.
Crimson Computer Shop will target these groups with the use of fliers and tarpaulin.

SWOT Analysis
The SWOT analysis provides us with an opportunity to examine the internal strengths
and weaknesses Crimson Computer Shop must address. It also allows us to examine the
opportunities presented to Crimson Computer Shop as well as potential threats. Crimson
Computer Shop has a useful inventory of strengths that will help it succeed. These strengths
include: a knowledgeable and friendly staff, modern computer hardware, and a clear vision of the
market need. Strengths are valuable, but it is also important to realize the weaknesses Crimson
Computer Shop must address. These weaknesses include: a dependence on quickly changing
technology and the cost factor associated with keeping modern computer hardware. Crimson
Computer Shops strengths will help it capitalize on rising opportunities. These opportunities
include, but are not limited to, a growing population of daily Internet users, and the growing
social bonds fostered by the new Internet communities. Threats that Crimson Computer Shop
should be aware of include, the rapidly falling cost of Internet access, and rising local
competitors.
Strengths
1. Knowledgeable and friendly staff Ive gone to great lengths at Crimson
Computer Shop to find people with a passion for teaching and sharing their
Internet experiences. My staff is both knowledgeable and eager to please.
2. Modern equipment Part of the Crimson Computer Shop experience includes
access to modern computer equipment. My customers enjoy beautiful and
convenient units displays, fast machines, and high-quality printers.
3. Up-scale ambiance When you walk into Crimson Computer Shop or even sit at
my waiting area, you'll feel the technology. Great sound background, nice lighting
that sets the mood and the whole area was clean.
4. Clear the vision of the market need Crimson Computer Shop knows what it
takes to build an upscale computer shop. I and my staff know the customers, the
technology, and how to build the service that will bring the two together.
Weaknesses
1. A dependence on quickly changing technology Crimson Computer Shop is a
place for people to experience the technology of the Internet. The technology that
is the Internet changes rapidly. Product lifecycles are measured in weeks, not
months. Crimson Computer Shop needs to keep up with the technology because a
lot of the Crimson Computer Shop experience is technology.
2. Cost factor associated with keeping state-of-the-art hardware Keeping up
with the technology of the Internet is an expensive undertaking. Crimson
Computer Shop needs to balance technology needs with the other needs of the
business. One aspect of the business can't be sacrificed for the other.
Opportunities
1. Growing population of daily Internet users The importance of the Internet
almost equals that of the telephone. As the population of daily Internet users
increases, so will the need for the services Crimson Computer Shop offers.

2. Social bonds fostered by the new Internet communities The Internet is

bringing people from across the world together unlike any other communication
medium. Crimson Computer Shop will capitalize on this social trend by providing
a place for smaller and local Internet communities to meet in person. Crimson
Computer Shop will grow some of these communities on its own by establishing
chat areas and community programs. These programs will be designed to build
customer loyalty
Threats
1. Rapidly falling cost of Internet access The cost of access to the Internet for
home users is dropping rapidly. Internet access may become so cheap and
affordable that nobody will be willing to pay for access to it. Crimson Computer
Shop is aware of this threat and will closely monitor pricing.
2. Rising local competitors Currently, Crimson Computer Shop is enjoying a
first-mover advantage in the local computer shop market. However, additional
competitors are on the horizon, and I need to be prepared for their entry into the
market. Many of my programs will be designed to build customer loyalty, and it is
my hope that my quality service and up-scale ambiance wont be easily
duplicated.
Market Needs
As the popularity of internet continues to grow at an exponential rate, easy and affordable
access is quickly becoming a necessity of life. Public wants access to the methods of
communication and volumes of information now available on the internet, and access at a cost
they can afford and in such a way that they are not socially, economically, and politically
isolated.
Market Trends
More than ninety percent of my customers are youngsters and their only objective to get
to these is to get enjoyment.
Marketing Strategies
I create some advertising strategies like I will print a thousand of fliers printed with the
total cost of Php. 908.00 (500 pieces on small fliers that cost Php. 220.50, while the second fliers
are also 500 pieces with the cost of Php. 687.50), a month before the opening me and my staff
will distribute the fliers. I will also put tarpaulin on the place itself where my shop is standing a
month before the opening. It will promote the services offered and also the opening of my
Computer Shop. To let the people know that there will be a new Computer Shop on the vicinity.
The tarpaulin size is 64 x 100and amounting Php. 497.75.

Management Strategies
Maintain a focus on quality products with bottom-line growth through cost reduction and
optimal performance. I also focus on technology and innovation to make sure our employees
skills are up to standard with todays mode of production.
Demand
Demand in Internet Services for the last five years:

2011

Quantity Demand
(in peso)
38,720

2012

70,400

2013

82,800

2014

112,250

2015

175,110

Year

I will use the Arithmetic

projecting the demand for the next
Yc = a + Yi - 1

Straight Line method in

five years.

Yc = initial value
Yn = final value
Yi 1 = value for past years

where: a = Yn Yc
N-1
Computation:
a = 175,110 38,720 = 34,098
51
2011 = 34,098 + 175,110 = Php. 209,208.00
2012 = 34,098 + 209,208 = Php. 243,306.00
2013 = 34,098 + 243,360 = Php. 277,404.00

Projected Demand for five years:

Year

Quantity Demand
(in peso)

2011
2012
2013

209,208
243,306
277,404

2014 = 34,098 + 277,404 = Php. 311,502.00

2015 = 34,098 + 311,502 = Php. 345,600.00

2014
2015

311,502
345,600

Supply
Supply in the Internet Services for the last five years:

2011

Quantity Supply
(in peso)
21,120

2012

35,200

2013

41,400

2014

51,800

2015

107,770

Year

I will use the Arithmetic Straight Line method in projecting the supply for the next five
years.
Yc = a + Yi - 1

Yc = initial value
Yn = final value
Yi 1 = value for past years

where: a = Yn Yc
N-1

Computation:
a = 107,770 21,120 = 21,663
51
2011 = 21,663 + 107,770= Php. 129,433.00
2012 = 21,663 +129,433 = Php. 151,096.00
2013 = 21,663 + 151,096= Php. 172,759.00

Projected Supply for five years:

Year
2011
2012
2013

Quantity
Supplied
(in
peso)
129,433
151,096
172,759

2014 = 21,663 + 172,759= Php. 194,422.00

2015 = 21,663 + 194,422= Php. 216,085.00

2014
2015

194,422
216,085

Demand and Supply Analysis

The table and figure below will shows the projected demand and supply of Crimson
Computer Shop for the next five years in percentage.
Year
2011
2012
2013
2014
2015

Percentage of
Quantity
Demand
15.08
17.54
20
22.46
24.92
100%

Percentage of
Quantity
Supplied
14.98
17.49
20
22.51
25.02
100%

The Services
The following services of Crimson Computer Shop are listed below:

Gaming
Typing

Searching the net

Printing/ Photo
copying/Fax/Scanning
Down loads

Cd burning
Computer Repair

For gaming I will install popular online games like Warcraft, Counter strike, Battle
Realms, Dance Audition, and Autojam. In typing I will install original Operating System of MS
Office Professional 2007 like MS Word, Excel, Power point, Access, Desktop Publishing. I will
have printer, Scanner, Photocopier, and Fax Machine for the Printing, Photo copying, and faxing.
AC Computer Shop will also offer other services like DVD/CD burning, Pay phone, and
Computer Repair.
Manufacturing Process
This is the AC Computer Shops manufacturing process.

The Crimson Computer Shop will provide the product and services to the customers,
and then the customer will give income or profit to Crimson Computer Shop in return. The
income or profit that the customer gave in return will used to provide the product and services.
Plant Size and Production Schedule
The Crimson Computer Shop will operate seven days a week. Crimson Computer Shop
opens at 8:00 am ahead to the other competitors. This will lead my shop of being known. My
goal is to give the needs of the students and others in early manner of time.

Crimson Computer Shops Time Schedule

Opening
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday

8:00 AM
8:00 AM
8:00 AM
8:00 AM
8:00 AM
8:00 AM
8:00 AM
Total Operating Hours per week

Closin
g

Operating
hours

11:00 PM
11:00 PM
11:00 PM
11:00 PM
11:00 PM
11:00 PM
11:00 PM

15
15
15
15
15
15
15
105

Machinery and Equipment

The proposed project is going to be of 10 units of computer systems and the details of the
equipment required for the project is given below:
List of Hardware:

Brand name

Package PCs
Printer
Fax Machine
Modem DSL
Computer Application
Software:
OS MS Office 2007
Anti-virus and Anti spy ware
Game Software:
Warcraft (dota)
Counter Strike
Battle Realms
Dance Audition
Autojam
Total Machinery and
Equipment Cost

I3
Samsung
SCX-4200
Panasonic
KX-FT933
Smart Bro

Description
10 units of PC w/
Complete accessories
3-in-1; Laser Printer,
Scanner, Copier
Fax Machine with
Automatic Paper Cutter

Amount
Php. 15,500.00
4,999.00
5,790.00
999.00
4,999.00
7,200.00
1,450.00
350.00
720.00
1,968.00
1,968.00
Php. 45,943.00

Furniture and Fixtures

The project is based on I3 computer systems. Second hand systems are also available in
the market at much lower prices. The reason for using the latest system is the new software
coming in the market that requires more powerful systems which will provide better service to
the customer. The price of computer systems varies with the introduction of new technology in
the market.

Description
Computer Cabinet
Table for waiting area
Air Conditioner
Mono block chair
office chair for server
Cabinet for the supplies
Pad Lock
Total Furniture and Fixtures
Cost

Quantity
10
1
1
10
1
1
2

Unit Price
250
400
6,500
230.5
745.75
950
750

Total Price
Php. 2,500.00
400.00
6,500.00
2,305.00
745.75
950.00
1,500.00
Php. 14,900.75

Plant Location
The Plan Location will be located at barangay Riverside

Plant Layout
Crimson Computer Shop

Building and Facilities

Description
Rent ( 2,500*12)
Construction of the Shop
Total Building and facility Cost

Amount
Php. 30,000.00
3,000.00
Php. 33,000.00

Raw Materials and Supplies

The material needed for the operation of the business:
Description

Price

Bond Paper

Php 150.00 (500pcs./rim)

CD w/ Case

13.00 /set

Ball pen

48.00 /box (12pcs)

Stapler

100.00

Staple wire

30.00

HP 96 Black Ink

800.00

HP 97 Tri-Color

850.00

Record Book

25.00

Fire Extinguisher 10 lbs.

Total Raw Materials and Supplies Cost

3,950.00
Php 5,966.00

Utilities
Description
Electricity
Water
Total Utility Cost

Monthly Cost

Total Amount (year)

Php. 5,000.00
117.50

Php. 60,000.00
1,410.00
Php. 61,410.00

Waste Disposal
Crimson Computer Shop can manage the waste disposal properly, because every Monday,
Wednesday, Friday and Sunday is the schedule in collecting all the garbage in barangay.
Cleaning Materials

Price

Broom & Dust Pan

Trash Can
Feather Dust
Mop
Powder Soap
Air Freshener

Php. 105.00
100.00
60.00
250.00
60.00
175.00

Total Waste Disposal Cost

Php. 750.00

replace every 5 months

2pcs. Good for 3 months

replace every 5 months
6pcs. Good for 2 months
replace every 2 months

Legal Requirements

Registration with BIR ( Bureau of Internal Revenue)

Registration of Business Name with DTI (Department of Trade and Industry)
Barangay Clearance and Business Permit
Mayors Permit

Legal Requirements Cost

Barangay Clearance

Php

Mayors Permit

150.00
4,000.00

Business Tax

950.00

Business Plate

100.00

Sanitary Permit
Occupational Tax
Inspection Fee
Filing

Processing
Zoning
Electrical Inspection
Fire Inspection
BIR
DTI
Total Legal Requirement Cost

250.00
400.00.
500.00
100.00
120.00
350.00
250.00
350.00
300.00
5,750.00
Php 13,570.00

Production Cost
The details of production cost for the project are given below:
Labor Requirements
Estimated Annual Cost for Salaries and Wages
Description
Manager

Employee

Monthly Salary

Php. 8,000.00
4,500.00

Total Salaries and Wages Cost

Annual Salary

Php. 96,000.00
54,000.00
Php. 150,000.00

* Additional fee to my employee for computer repair (labor)

Requirement on Hiring an Applicant

Applicant must be 20 years old, residence of Isabela

Resume
Two valid I.D.
Birth Certificate (NSO)
N.B.I Clearance
SSS number
Vocational Graduate (computer technician)

Php 250.00

Hardworking

Contribution to the Philippine Economy

The project should be construct because the proponents wants to help peoples
demands, the number of workers that the business to be employed is 3, with 5 months
contract, and renewable by the recommendation of the Manager. All workers will utilize
the whole day from Monday to Sunday meaning there are no schedule shifting will
happen. The days per year that the project will operate are 365 days.