GIZMO CAF

In Vishakhapatnam

GIZMO CAFE, unlike a typical cafe, will provide:

* Affordable access to the resources of the Internet and other

online services. * Good coffee and bakery items at a reasonable price * Printing, Scanning facilities

* Technical Services
* Unique forum for communication and entertainment * Basic computer skills training * Internet Online Gaming facilities, DVD gaming .

SOCIAL CAUSE

 Popularity of the Internet continues to grow at an exponential rate Easy and affordable access is quickly becoming a necessity of life. GIZMO CAFE provides communities with the ability to access the followings

* Internet facility * Enjoy a cup of coffee, pastry etc

* Feel the adrenaline rush of playing online games

* Share Internet experiences in a comfortable environment.

The risks involved with starting GIZMO CAFE are: Will there be a demand for the services offered by GIZMO CAFE in Vizag?

Will the popularity of the Internet continue to grow, or is the Internet a fad?
Will individuals be willing to pay for the service GIZMO CAFE offers? Will the cost of accessing the Internet from home drop so significantly that

there will not be a market for Internet Cafes such as GIZMO CAFE?

Start- up Financing Equity Capital From Bank Loans ( 40% DEBT ) Start-up Expense Details: 11 computers = Rs 3,30,000 2 Multi purpose printers = Rs 16,000 A Play-Station (PS 3) = Rs 20,000 Soft wares and games (combo) = Rs 7,000 One espresso machine = Rs 10,500 Other fixtures and modelling: one coffee/food preparation counters = Rs 20,000 one information display counter = Rs 5,000 computer desks /chairs = Rs 24,200 Ac Installation : Rs 90,000 Centralized audio system : Rs 25,000 Two telephones = Rs 3,500 Technical expense (Wi-Fi, Routers etc) = Rs 30,000 Decoration expense = Rs 12,000 Security charge = 10% of annual rent Refrigerator = Rs 25,000 Microwave oven = Rs. 10 ,000 (2X 5000) Internet charges = 100000

A site has been chosen at Vishakhapatnam (Siripuram) . This site was chosen for various reasons, including:

Proximity to the downtown business community. Parking availability. Rent - Rs 15,000 per month for 1700 square feet. High visibility.

 GIZMO CAFE will provide its customers with full access to the Internet, software and

hardware. Some of the Internet and computing services available to GIZMO CAFE customers are listed below: Access to external POP3 email accounts.

Customers can sign up for personnel email account.

Access to Netscape or Internet Explorer browser Personal GIZMO CAFE account FTP, Telnet, Gopher, and other popular Internet utilities will be available. Access to laser and colour printing. Access to popular software applications like Adobe Photoshop and Microsoft Word.

 Good coffee Specialty drinks Bakery goods

Fruit Juice, Ice cream etc

Comfortable and cosy environment Special Gift voucher on being a regular customer Home Delivery and Parceling

GIZMO CAFE will invest in high-speed computers to provide its customers with a fast and efficient connection to the Internet.

The computers will be reliable and fun to work with.

High Graphics card will be inserted in each PC

Gaming pad, joystick, large led screen etc PC gaming Competition Tools

GIZMO CAFE is faced with the exciting opportunity of being the first-mover in the Vishakhapatnams cyber-cafe market.

The consistent popularity of coffee, combined with the growing interest in the Internet, has been proven to be a winning concept in other markets and will produce the same results in Vishakhapatnam.

 GIZMO CAFES customers can be divided into two groups. * The first group is familiar with the Internet * The second group is not familiar with the Internet GIZMO CAFES target market falls anywhere between the ages of 6 to 50 years In addition to these two broad categories, GIZMO CAFES target market can be divided into more specific market segments. * University Students * Office workers * Seniors * Teenagers * Others

STRENGTH * A knowledgeable and friendly staff * Niche market * Improved hardware, soft wares

WEAKNESS

* A dependence on quickly changing

technology * Keeping up with the technology of the Internet is an expensive undertaking

* Fast Internet service

* A clear vision of the market need

OPPORTUNITIES

GIZMO CAFE

THREATS

* A growing population of daily Internet use * Growing need for a Socializing environment * Growing youth population * Growing fantasy for computer games/online games

* The rapidly falling cost of Internet access

* Emerging local competitors * Video game parlor * 13 square, corn club, vizag gaming (competitors)

GIZMO CAFE will use advertising as its main source of promotion.

Ads placed in Local Newspapers like The Hindu, Indian Express etc Accompanying the ad will be a coupon for a free hour of Internet travel.

Net surfing Advertisements / Pamphlets

10 % extra hours out of total hours consumed in a month * GIZMO CAFE will give away three free hours of Internet use to beginners

* Subject to a minimum 15 hours

Payroll Expense:
GIZMO CAFE intends to hire 6 part-time employees and 1 full time employees 6 Par time - Rs 24,000 1 Fulltime Rs 9,000 2 Cleaning Staff Rs 2000 1 Cashier Rs 4000 Rent Expense: GIZMO CAFE is lease rent 1700 square foot facility at Rs 15000 per month Marketing Expense: GIZMO CAFE will allocate Rs 1,85,000 for promotional expenses over the first year. Insurance Expense: GIZMO CAFE has allocated Rs for insurance for the first year. GIZMO CAFE intends to invest more money for additional insurance coverage.

Depreciation: Depreciation : Rs 21,275 Taxes:

Commercial taxes (35%)

Utilities Expense: Electricity and Tariff bill (Rs 150000) yearly Phone bill (Rs 200 per month) = Rs 2400 yearly

Maintenance charges
Working capital Coffee and bakery items Stationeries

Milk

Pool Center Bowling Alley Party Plaza

THANK YOU ALL