03 Mar Wi-Fi Kiosks Business Plan
Stroll Net provides a unique venue for communication, entertainment, and information through public Internet access. We will install 16 Internet-enabled, pay-kiosks within Tech City in the first year. They will be located in places that are frequented by students and business travellers, but there is no competition. Our flagship location is located near the downtown bus station and train station. It will allow travelers to check email, find phone numbers, and get directions from any of the numerous online-mapping websites for less than $1. They can also surf on the internet as much as their budget and time permit. We can both capture the casual web-surfer and the tourist with a lot of money by accepting real money (coins, dollar bills) as well as credit cards.
Stroll Net can meet this increasing demand. Americans want the Internet and the communication options available to them, but at a reasonable price and without being restricted to their desks. Stroll Net's goal is to provide the community with a convenient and affordable way to access the Internet away from home and the office.
This business plan will be approved for funding in the amount of $299671. Additional financing is required for the purchase and operation of public Internet terminals and the purchase office equipment, supplies, and vehicles. Cam Piotr & Bob Green have contributed $10,500 in personal savings and a $100,000 loan.
Stroll Net will become a Limited Liability Corporation. This will shield the owners, Cam Piotr and Bob Green, from issues of personal liability and double taxation. The investors will be treated in the same way as shareholders. They will not be responsible for more than their $5,250 personal investment.
Stroll Net, with the capital contributions by the owners and the financing, will be able open and keep operations open through year 1. Stroll Net will be able to offer its customers and clients the best public Internet terminal possible thanks to its large capital investment. Stroll Net needs a unique, innovative product to offer its customers a service unrivalled by anyone else. Stroll Net's first year of operation will give it a strong customer base, which will enable it to become self-sufficient in the second year.
Based on cash flows, we expect dividends to be $100,000 in year two and $200,000 the following year for an investment of 299,671. These projections are made based on real business revenues from similar start customers of our internet kiosk supply in other states. With a break-even point at $42,599 per monthly, we anticipate revenues of $727.072 and net profits of 18.5% or $134.305 for the first year. By year three, revenues will increase to $1,136,067, and the net worth of Stroll Net will increase to $610,320. The company owners will decide how dividends are paid. Dividends in the future will depend on cash flow. In the fifth year, investors can opt to be bought by them.
Accessing the Internet is becoming an increasingly important part of our daily lives. Stroll Net offers internet access to both business travelers and users. For a minimal fee, internet users, young and old, will be able to access the internet while they stay in hotels, wait at airports, shop in shopping malls and so on.
We want to be the first to bring an innovative, high quality public Internet terminal to the current market. We will contribute to the community by offering a valuable service and maintaining a high quality product. Our terminals will utilize the most advance technologies and our staff will possess the utmost in customer service experience.
Success: 1.2 Keys
We must focus and work hard as a startup company that is new to the market to gain acceptance for our products and services. These are the keys to our success:
- Placement of an innovative product or quality service that is capable of expanding existing markets and creating new ones.
- A steady, controlled pattern of growth.
- It is important to establish good relationships with customers and clients.
#8217's goals for the first year are:
- This innovative product offers Internet users a convenient and affordable way to access the Internet outside of their homes.
- A unique environment for business travelers that gives them access to their files and programs.
- Placement of 100 public Internet terminals in the North MyState region
In the two years to come, our growth objectives include:
- Each year, there is a 20% increase in the number and use of public Internet terminals.
- A 25% increase in revenues per annum
There are some risks associated with using Stroll Net:
- What will the demand be for Stroll Net's services?
- Is the Internet becoming more popular or a fad?
- Will Stroll Net offer a service that is affordable to individuals?
- What happens if the cost of accessing Internet from home drops so drastically that there is no market for public Internet terminals available?