Presented to the College of Accounting Education
Matina, Davao City
In Partial Fulfillment of the Requirements in GE11 – Entrepreneurial Mind
1st Semester – 2nd Term, A.Y. 2023 – 2024
Business Idea
CAE Tech Internet Café
Baliad, AJ Kate L.
Presented to:
Mr. Claudio Bisares
November 2023
Page | i
Table of Contents
I.Executive Summary
1
II.About Company
2
III.Market Analysis
4
IV.SWOT Analysis
5
V.Marketing Plan
7
VI.Operational Plan
10
VII.Financial Projection
14
VIII.Appendices
18
Page | ii
I.
Executive Summary
Our objectives at CAE Tech Internet Café are specific and customer centered.
We want to offer a modern, open, and friendly environment where people from all
walks of life can realize their digital ambitions. These goals direct our daily activities
and help us deliver remarkable client experience while continuing to lead the internet
café sector.
CAE Tech Internet Café is a partnership and service-driven business that serves
as a digital hideaway for people and groups looking for reliable internet connection,
desktop accommodations, and a relaxing environment to carry out multiple activities
on the internet. “CAE” means “College of Accounting Education” derived from
proponents’ previous educational background. Subsequently, “Tech” comes from the
word “technology” that is very essential in the proponents’ business.
CAE Tech Internet Café will be renting space (30 sqm) for ₱15,000 per month at
Guerrero Street, Población District, Davao City, Davao Del Sur and will be open
24/7. The target market is, but not limited to ages from 16 to 64 years old who are
students, gamers, employees, and computer shop users within the area. The
working capital of the business is ₱450,000 which will be equally contributed by the
partners. The business purchased 11 units of quality computer set with a total
amount of ₱318,945, an inverter type air Condition with an amount of ₱24,250, legal
documents amounting to ₱21,270, as well as furniture and fixtures amounted to
₱22,428. It will impose an hourly rate of ₱15 and generates an income amounting to
₱597,688.55 for its first-year operation. After seven and a half months, CAE Tech
Internet Café will fully recover its capital.
The proponents recommend further expansion of business behavior with the aim
of attaining a city-wide scope of operation. The partners also consider the possible
transition from a partnership to a corporate business model if given adequate funds
and investment. With an ROI of 132.82%, it is strongly encouraged to be
implemented.
We stand out as the ideal location for all your digital requirements because of our
dedication to providing outstanding client service, a vast selection of entertaining
alternatives, and a network of shared computer lovers.
Page | 1
I.
About Company
High-speed connectivity to the internet, computer accommodation, and a flexible
online setting are all offered by the growing and customer focused CAE Tech Internet
Cafe. We operate in providing an enjoyable online journey while meeting a variety of
needs, including those related to communication via social media, gaming,
productivity as a whole and surfing the internet. Our primary goals are to provide
modern technology, a relaxing space, and a thriving community center where people
can conduct business, acquire knowledge, collaborate, and loosen up. We are
dedicated to becoming the top choice for people looking for a dependable, quick,
and enjoyable internet cafe experience.
A. Logo
This logo emphasizes the face of a Jaguar where it is famous for its speed
and performance; elegant and trendy styles; as well as their reliability and
durability. Experience the speed of the internet comparable to a Jaguar at our
cafe, in which downloading files, internet surfing, and playing games is as quick
as a luxury sports car. Our internet café offers an aesthetically pleasing and
welcoming area for all your digital demands. Put your faith in our internet café,
where dependability is our assurance, much like a Jaguar car on the road. In
addition, it serves as the letter “C” in the word “CAE” of the business’ name
wherein it was derived from the origin of the owners who studied at University of
Mindanao under the College of Accounting Education. Lastly, “Tech” comes from
Page | 2
the word “technology” that is very essential in the ordinary course of this
business.
B. Owners
CAE Tech Internet Café is a partnership business. It was a product of the idea
of six students from the University of Mindanao. It was then pursued by AJ Kate
Baliad after they graduated, and it was supported by the other members. The
proponents who started to dream bigger and aim higher are from the College of
Accounting Education.
C. Scope and Address
Our internet cafe business is committed to giving people a contemporary,
easily accessible area where they can use the internet, participate in internetbased activities, and take advantage of various online amenities. Our Internet
cafe prioritizes providing a cozy and cutting-edge technological environment by
offering dependable and fast internet access, up-to-date hardware and software,
and support for multiple uses such as surfing, playing games, and performance.
We also have human resources on hand to help with technological issues and
offer advice on online resources and uses. We rented a 30 sqm place located at
Guerrero Street, Población District, Davao City, Davao Del Sur. For more
information, contact (082) 123-4537 or visit www.caetechcafe.com.
D. Vision
CAE Tech envisions leading technological advancements and establishing
new benchmarks in society, technology, and service to customers. We work hard
to open the world of technology to everybody who enters inside and to make it
fascinating, motivating, and affordable.
E. Mission
At CAE Tech Internet Café, we will improve the lives of people as well as
communities by offering an up-to-date online center where consumers of all
backgrounds can interact, build, and discover the endless possibilities of the
internet world.
Page | 3
II.
Market Analysis
The age of technology and digitalization has widened the possibilities of business
opportunities. The aftermath of the pandemic has led to major changes in almost all
areas of human lives. Hence, CAE Tech is well-positioned to serve a varied group of
customers, including students, freelancers, travelers, and gamers, given the growing
dependence on digital technology and the necessity for bandwidth. These include
the mode of learning and the increased demand for computer usage.
Target Market, Size, Demographics, and Trends
Población District has a total population of 173,896 with an estimate target
market of 113,867 based on the percentage of the working-age group based on the
2020 census. The major target market of this business is composed of, but not
limited to, young individuals aged 16 – 26 years old who are in high school or college
level of education. The rationale behind this demographic is because most academic
institutions in the country have adopted blended learning systems which require
students to have access to computers and internet connection. In addition, we
recognized several trends that have an impact on our company strategy, such as the
rise in popularity of remote work options, which has increased the requirement for
dependable internet connectivity and cozy spaces other than typical workplaces.
Also, the change favoring e-learning in the field of education has made our services
desirable to learners as well as educators. Additionally, the growing popularity of
playing games online is rising, and we intend to capitalize on this development by
providing gaming equipment and a special area for players.
Competition and Competitive Advantage
Two major competitors in the market that are already well established were
identified. However, modern tools and effective customer support are going to
differentiate us ahead of the competitors. Our price strategy strikes a balance
between budget and outstanding service, enabling us to draw clients from a range of
socioeconomic backgrounds. Thus, our company's business approach is built to be
adaptive to changing consumer needs and trends in the market. This guarantees
that we can remain innovative and react fast to market changes.
Page | 4
III.
SWOT Analysis
A. Strengths
CAE Tech’s main strength as a business lies in the aftermath of Covid-19
pandemic. Though many industries were greatly affected by the global crisis, it
also gave opportunities to open new frontiers in delivering services and products.
The digitalization of almost every aspect of human life has given computerrelated services enough attention to feature its significance in society. The use of
online learning also increased the needs of students to access computer devices
which is the main offer of this business.
B. Weaknesses
The weakness CAE Tech’s operation is the restriction of certain policies.
Included in the business’ target market are minors that have curfews for using
computer services because computers also act as a distraction to high school
students. This weakness shall hinder the business from attaining its maximum
capacity, which in turn decreases the overall service revenue each year.
C. Opportunities
Many industries nowadays have begun digitalization of its operation. Online
shopping as well as streaming services have begun increasing its popularity. With
these trends, an opportunity to co-partner with these industries shall be probable
in the future. CAE Tech provides computer access which is a significant factor in
accessing these online services, so as long as technological advancement
continues, the demand for computer services shall also remain essential in the
market.
D. Threats
As technology continues to improve, many computer devices are also
becoming easily accessible by the masses. Computer devices are now easily
replicated and offered at a very low price. This threatens internet cafes since it
will discourage customers from availing computer services. Also, the sudden
increase in mobile phones’ performance also introduced a new way to do gaming.
Computer games that were previously in high demand in internet cafes are now
Page | 5
starting to get a low player base due to the increase in popularity for mobile
games such as Mobile Legends.
Page | 6
IV.
Marketing Plan
To cater for most of the target market and streamline the services of the
business, an effective promotion strategy is needed. The business shall focus
primarily on establishing a healthy and integrated relationship with its customers
through providing services that will greatly benefit the target market. The list of
strategies that CAE Tech shall adapt are as follows:
1. Adapt with the trends – students and young individuals love to be updated
with the current trends in pop culture. Taking advantage of these trends
shall encourage customers to avail themselves of services in the business
since it offers a sense of familiarity and connectivity with the modern
audience.
2. Collaborate with academic institutions – since one of the marketing
strategies of CAE Tech is to offer academic-focused services, collaborating
with academic institutions shall provide access to most of the target
market. This shall be done through consultation with program heads
and/or academic staff with the student’s needs and specific guidelines that
need to be adhered to improve the latter’s academic performance.
3. Provide excellent customer service – to encourage customer’s patronage
to the business, all staff and employees of CAE Tech shall be properly
orient to practice respectful relations and maximum tolerance towards
customers and;
4. Offer loyalty programs – frequent and regular customers shall also be
given VIP Pass that features various benefits such as discounted rates
and freebies (if the operation ever exceeds its projected sales).
5. Social Media Presence - an internet café's ability to succeed depends on
its social media presence. It increases exposure, makes targeted
marketing easier, fosters community, and offers an environment for live
customer interaction and service promotion.
Pricing Strategy
Our pricing approach is designed to support our business while considering
the various tastes and budgets of our consumers. The following are the major
components:
Page | 7
1. Hourly and Daily Rates - consumers have the choice between hourly
and daily charges, with the former being more appropriate for shorter
usage times and the latter for longer sessions. This strategy offers
flexibility and affordable prices.
2. Membership Programs - we have created membership programs with
exclusive savings, awards for loyalty, and other benefits. These
initiatives encourage repeat business and client loyalty.
3. Promotional Packages - as part of our goal to draw in and keep clients,
we occasionally run promos and unique deals, including packaged
services that include internet access, meals, or refreshments.
Distribution Channels
To successfully reach our target audience, our means of distribution were
carefully selected. These include the following:
1. Physical Location – our business is ideally situated next to a school,
that makes it highly noticeable.
2. Online Presence - users can conveniently book services, view
information, and get updates online thanks to our easy-to-use website
and vibrant social media presence.
3. Smartphone Application Improvement - we are currently developing an
application for mobile devices that will allow users to schedule
bookings, view availability, and even get special offers and loyalty
incentives on their cellphones soon.
Sales Approach
Our focus in sales is on giving consumers a smooth and pleasant journey.
Important components of our sales strategy include:
1. Engagement with consumers - our knowledgeable staff is dedicated to
interacting with consumers, comprehending their needs, and directing
them to the most appropriate solution or assistance.
2. User Opinions and Adaptation - we actively seek out consumer
feedback and use it to improve our services and business practices.
Page | 8
We can keep aware of market changes and customer preferences
thanks to this strategy.
3. Staff Training - to ensure that each encounter generates an
unforgettable mark, our team receives ongoing training in providing
excellent customer service.
Page | 9
V.
Operational Plan
CAE Tech will provide the product and services to the customers, then the
customers will give income or profit to the business in return. The income or profit
that the customer gave in return will be used to provide additional units for more
production in the business.
Location
CAE Tech will be renting a space (30 sqm) at Guerrero Street, Población
District, Davao City, Davao Del Sur. It is a 2-minute walk from Sta. Ana National High
School. Additionally, it is also situated near four other schools which may give rise to
business’ revenue.
Organizational Structure
The organizational structure is a diagram that depicts the chain of command
within a specific organization. It demonstrates how authority and control are
distributed and exercised at various organizational levels. The CAE Tech Internet
Café will have an organizational structure that is direct or in lines.
Human Resource
Before a business begins operations, choosing its workers is crucial. The
success of the company is greatly influenced by the hiring of responsible and
Page | 10
qualified employees. Hence, as a start-up business, we have hired only 2
employees. The qualifications for the required workforce are shown in the table
below.
Position
No. of
Qualifications
Person
Cashier
2

A high school degree or its equivalent.

Prior
cashiering
or
customer
service
expertise is advantageous.

Strong interpersonal and communication
abilities.

Fundamental understanding of technical
troubleshooting and computer systems.

Expertise with Point of Sale (POS) systems
and cash registers.

The
capacity to
manage
money and
transactions honestly and accurately.
Position Summary:
The Internet Cafe Cashier plays a crucial role in the team as they oversee
giving our customers outstanding service, making sure the internet cafe runs
smoothly, and making sure they have a great experience.
Key Responsibilities:
1. Customer Service
 Welcome guests with a smile and help them with any questions or
concerns about the cafe's amenities and services.
 To make your customers feel at home, keep your manners professional
and kind.
 Effectively handle consumer grievances and issues, elevating them to
management as needed.
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2. Cash Handling
 Process payments from customers accurately for services such as
gaming sessions, internet access, and other cafe offerings.
 Compute and hand over change as needed.
 Make sure that cash and other payment methods are handled and
stored securely.
3. Point of Sale (POS) System
 Handle the point-of-sale system and cash register with skill.
 Log and handle service transactions and internet usage precisely.
 As needed, maintain the POS system, and fix small technical
problems.
4. Customer Assistance
 Help users make use of the game consoles, PCs, and internet
connection in the café.
 Provide instructions on fundamental troubleshooting for frequent
technological problems.
 Give details about the cafe's policy, promotions, and prices.
5. Safety and Security
 Make sure everyone who visits the café is safe and secure.
 Keep an eye on the actions of customers and alert management to any
odd or unusual conduct.
 Observe existing protection guidelines and practices.
6. Cashier Duties
 For services rendered, send out invoices and receipts.
 Keep thorough records of all transactions, and at the beginning and
conclusion of every shift, balance cash and sales.
 Respect security protocols and cash handling procedures.
7. Compliance
 Respect all applicable municipal, state, and federal laws, particularly
those pertaining to taxes and data protection.
 Observe the rules and processes of the café regarding cybersecurity
and consumer data privacy.
Page | 12
Compensation and Work Schedule
CAE Tech Internet Café will be open for 24 hours. Since it is a starting
business, we hoped to hire only two employees as of now and they will do shifting.
The table below will show the working schedule:
DESCRIPTION
WORK SCHEDULE (24 HOURS)
Employee 1
6:00 AM
-
2:00 PM
Employee 2
2:00 PM
-
10:00 PM
Employee 1
10:00 PM
-
6:00 AM
This will continue alternately.
As compensation, we give employees a 10%-night differential rate to make up
for the inconvenience and possible health risks (such disturbed sleep patterns) of
working at night. The table below will show the corresponding compensation:
DESCRIPTION
NIGHT
PER DAY RATE DIFFERENTIAL
(PER DAY)
NIGHT
DIFFERENTIAL PER MONTH
(PER MONTH)
ANNUAL
SALARY
Employee 1
₱ 443.00
10% ₱
44.30 ₱
664.50 ₱ 13,954.50
₱ 167,454.00
Employee 2
₱ 443.00
10% ₱
44.30 ₱
664.50 ₱ 13,954.50
₱ 167,454.00
₱ 27,909.00
₱ 334,908.00
TOTAL
Page | 13
VI.
Financial Projection
The Partnership source of financing will be internal. It will be contributed by the
six partners amounted to ₱75,000 each for a total of ₱450,000. Additional capital
contributions will be made in the future if needed for any expansion projects. The
capital necessary to establish CAE Tech Internet Cafe is shown in the table below.
The amount is enough to provide quality services and equipment for the business.
TOTAL
AMOUNT
CAPITAL EXPENDITURE
% OF TOTAL
INVESTMENT
Machinery and Equipment
₱ 343,195.00
Rental
₱
15,000.00
3.33%
Furniture and Fixtures
₱
22,428.00
4.98%
Supplies and Waste Disposal
₱
932.00
0.21%
Legal Requirements
₱
21,270.00
4.73%
TOTAL
₱ 402,825.00
89.52%
76.27%
A. Machinery and Equipment
The project is based on Ryzen 5, with an AMD CPU, which is aimed at the
server, desktop, workstation, media center PC and all-in-one markets. AMD`s
Ryzen is a base model featuring eight cores and 16-thread processing at 3.4Ghz
with 20 MB cache, neutral net-based prediction hardware and smart prefetch.
The reason for using the latest system is the new software coming on the market
that requires more powerful systems which will provide better service for the
customer. The proposed project is going to be of 10 units for computer systems,
and an additional 1 for the main server of the said business. The details of the
equipment
LIST OF
HARDWARE
required
BRAND NAME
for
the
UNIT PRICE
project
is
given
below:
DESCRIPTION
AMOUNT
Package PC
AMD Ryzen 5 5600G
₱ 28,995.00 11 units with complete accessories
₱ 318,945.00
Aircondition
Haier
₱ 24,250.00 1.5 hp carrier inverter
₱
TOTAL
24,250.00
₱ 343,195.00
Page | 14
B. Furniture and Fixtures
DESCRIPTION
TOTAL
PRICE
QUANTITY UNIT PRICE
Computer Table (partition among
computers)
10
₱ 1,200.00
₱ 12,000.00
Mono Block Chairs
10
₱
250.00
₱
2,500.00
Office Chair for Server
1
₱
799.00
₱
799.00
Counter Table
1
₱ 7,000.00
₱
7,000.00
Pad Lock
1
₱
₱
129.00
129.00
₱ 22,428.00
TOTAL
C. Supplies and Waste Disposal
CAE Tech Computer Shop not only aims to provide quality services for the
customer, but also to provide a clean and comfortable space for them to gradually
do what they intended to do.
SUPPLIES:
UNIT
UNIT
PRICE
AMOUNT
Clear Book
2
₱
50.00
₱ 100.00
Ballpen (per box)
1
₱
60.00
₱
60.00
Stapler
1
₱
95.00
₱
95.00
₱ 255.00
TOTAL SUPPLIES
WASTE DISPOSAL:
Broom and Dustpan
(replace every 5 months)
1
₱
Trash Can
1
₱ 145.00
₱ 145.00
Feather Duster (good for
3 months)
2
₱
₱
Mop (replace every 6
months)
1
₱ 188.00
₱ 188.00
Air Freshener (replace
every 2 months)
1
₱ 199.00
₱ 199.00
85.00
30.00
₱
85.00
60.00
TOTAL WASTE
DISPOSAL
₱ 677.00
TOTAL
₱ 932.00
Page | 15
D. Operating Expenses
The costs that are directly incurred by the business through its normal
operation is shown in the table below:
OPERATING EXPENSES
MONTHLY
ANNUALY
Rent Expense
₱ 15,000.00
₱
180,000.00
Utilities Expense
₱ 11,274.35
₱
135,292.20
-
₱
10,200.00
Salaries and Wages
₱ 27,909.00
₱
334,908.00
Depreciation Expense
₱
₱
36,583.25
-
₱
1,328.00
₱ 57,231.95
₱
698,311.45
Repairs and Maintenance
Waste Disposal
TOTAL
3,048.60
Projected Sales
UNITS
10
OPERATING
HOURS
24
RATE PER HOUR ₱
15.00
Service Revenue
DAILY
MONTHLY
ANNUALY
₱ 3,600.00
₱ 108,000.00
₱ 1,296,000.00
Less: OPEX
NET INCOME
Rent Expense
-
₱
15,000.00
₱
180,000.00
Utilities Expense
-
₱
11,274.35
₱
135,292.20
Repairs and Maintenance
-
₱
10,200.00
Salaries and Wages
-
₱
27,909.00
₱
334,908.00
Depreciation Expense
-
₱
3,048.60
₱
36,583.25
Waste Disposal
-
₱
1,328.00
Total Expense
-
₱
57,231.95
₱
698,311.45
₱ 3,600.00
₱
50,768.05
₱
597,688.55
-
-
Page | 16
𝑹𝑶𝑰 =
=
𝑵𝒆𝒕 𝑰𝒏𝒄𝒐𝒎𝒆
∗ 𝟏𝟎𝟎
𝑵𝒆𝒕 𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕
𝟓𝟗𝟕, 𝟔𝟖𝟖. 𝟓𝟓
∗ 𝟏𝟎𝟎
𝟒𝟓𝟎, 𝟎𝟎𝟎
𝑹𝑶𝑰 = 𝟏𝟑𝟐. 𝟖𝟐%
Cash Flow
Operating
Net Income
₱ 597,688.55
Depreciation Expense
₱
36,583.25
Less: Supplies
₱
932.00
₱ 633,339.80
Total
Less: Investing
Machinery
₱ 343,195.00
Furniture and Fixtures
₱
22,428.00
Total
₱ 365,623.00
Capital Investment
₱ 450,000.00
Financing
₱ 717,716.80
Cash, end
𝑷𝒂𝒚𝒃𝒂𝒄𝒌 𝑷𝒆𝒓𝒊𝒐𝒅 =
=
𝐈𝐧𝐢𝐭𝐢𝐚𝐥 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭
𝐀𝐧𝐧𝐮𝐚𝐥 𝐂𝐚𝐬𝐡 𝐈𝐧𝐟𝐥𝐨𝐰
𝟒𝟓𝟎, 𝟎𝟎𝟎
𝟕𝟏𝟕, 𝟕𝟏𝟔. 𝟖𝟎
𝑷𝒂𝒚𝒃𝒂𝒄𝒌 𝑷𝒆𝒓𝒊𝒐𝒅 = . 𝟔𝟐𝟕 𝒐𝒓 𝟕 𝒂𝒏𝒅 𝒂 𝒉𝒂𝒍𝒇 𝒎𝒐𝒏𝒕𝒉𝒔
After seven and a half months, CAE Tech Internet Café will fully recover its
capital. Thus, the business is producing a decent return on investment and has
outperformed the original investment in terms of profit.
Page | 17
VII.
Appendices
Population Data
Minimum Wage Rates
Page | 18
Night Differential
Night-shift differential pay is defined as a payment of no less than 10% of an
employee’s basic salary per hour during this period. (P. D. 442 Labor Code of the
Philippines, Book III, Art. 86)
𝐍𝐢𝐠𝐡𝐭 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭𝐢𝐚𝐥 𝐏𝐚𝐲 = 𝐃𝐚𝐢𝐥𝐲 𝐖𝐚𝐠𝐞 ∗ 𝟏𝟎%
Resume
Employee 1
Page | 19
Employee 2
Page | 20
Schedule 1: Depreciation Expense
TOTAL
AMOUNT
NO. OF
YEARS
USED
Package PC
₱ 318,925.00
10
₱
31,892.50
Computer Table
₱
12,000.00
7
₱
1,714.29
Aircondition
₱
24,250.00
15
₱
1,616.67
Counter Table
₱
7,000.00
10
₱
700.00
Mono Block Chairs
₱
2,500.00
5
₱
500.00
Office Chair for Server
₱
799.00
5
₱
159.80
TOTAL
₱ 365,474.00
₱
36,583.25
DEPRECIATION
EXPENSE
Schedule 2: Utilities Expense
AMOUNT
FREQUENCY
ACQUIRED
UTILITIES
EXPENSE
Internet Fee
₱
2,999.00
12
₱
35,988.00
Electricity
₱
8,150.35
12
₱
97,804.20
Water
₱
125.00
12
₱
1,500.00
TOTAL
₱ 11,274.35
₱ 135,292.20
Schedule 3: Repairs and Maintenance
Computer Maintenance, 10 units
₱
4,500.00
2 ₱
9,000.00
Aircondition Maintenance
₱
600.00
2 ₱
1,200.00
TOTAL
₱
5,100.00
₱
10,200.00
Page | 21
Schedule 4: Waste Disposal
AMOUNT
FREQUENCY
ACQUIRED
WASTE
DISPOSAL
Broom and Dustpan
₱
85.00
1
₱
85.00
Feather Duster
₱
30.00
2
₱
60.00
Mop
₱ 188.00
1
₱
188.00
Air Freshener
₱ 199.00
5
₱
995.00
TOTAL
₱ 502.00
₱ 1,328.00
Page | 22