Coffee@Cafe Shop - Copy

7/31/2019 Coffee@Cafe Shop - Copy

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ENTREPRENEURSHIP PROJECT

REPORT

ONCOFFEE@CAFE SHOP

In partial fulfillment of the requirements for the

degree of

BACHELOR OF TECHNOLOGY

BIJU PATTNAIK UNIVERSITY OF

TECHNOLOGY, ORISSA

DEPARTMENT

OF

MECHANICAL ENGINEERING

BALASORE COLLEGE OF ENGINEERING ANDTECHNOLOGY

BALASORE

Submitted by:PRADEEP KUMAR

8th Semester, B.TECH

Regd.No:0801225283


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Balasore College ofEngineering & Technology

SERGARH, BALASORE-756060, ORISSA

PH.-(06782)236045, 236041, FAX-(06782)236610

[Approved by AICTE, recognized by Govt. of Orissa and affiliated toBPUT]

CERTIFICATE

This is to certify that the ENTREPRENEURSHIP

PROJECT entitled COFFEE@CAFE SHOPpresented by Mr.PRADEEP KUMAR bearing Regd

no.-0801225283, in 8th semester of his, is a bonafide

work of his own, and submitted in partial fulfillment

of the requirement for award of bachelors degree in

Information Technology.


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Submitted to:Mr. S.K. Chatterjee

H.O.D, Mechanical Engineering


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ACKNOWLEDGEMENT

I take this opportunity to expressmy hearty thanks to all those whoindividually as well as collectivelyhelped me in the successfulcompletion of this report.

I am thankful to Mr. S.KCHATTERJEE, H.O.D., of department of MechanicalEngineering, and also thankful toall the faculties of Mechanical

Engineering of Balasore College ofEngineering and Technology forhaving supported me to carry outthis entrepreneurship report andfor their constant advice.

I also acknowledge thecontinuous encouragementrendered by my friends.


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PRADEEP KUMARRegd. No.:0801225283

Sem. : 8th

Branch: Mechanical Engineering

ABSTRACT

An internet caf or cybercaf is a place where one can use a computer

with Internet access, most for a fee, usually per hour or minute;sometimes one can have unmetered access with a pass for a day or

month, etc. It may serve as a regular caf as well, with food and

drinks being served. Internet cafs are located worldwide, and many

people use them when traveling to access webmail and instant

messaging services to keep in touch with family and friends. Apart

from travelers, in many developing countries Internet cafs are the

primary form of Internet access for citizens as a shared-access model

is more affordable than personal ownership of equipment. A variationon the Internet caf business model is the LAN gaming center, used

for multiplayer gaming. These cafs have several computer stations

connected to a LAN. The connected computers are custom-assembled

for game play, supporting popular multiplayer games. This is reducing

the need for video arcades and arcade games, many of which are

being closed down or merged into Internet cafs. The use of Internet

cafs for multiplayer gaming is particularly popular in certain areas of


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Asia like China, Taiwan, South Korea and The Philippines.

There are also Internet kiosks, Internet access points in public placeslike public libraries, airport halls, sometimes just for brief use while

standing. Many hotels, resorts, and cruise ships offer Internet access

for the convenience of their guests; this can take various forms, such

as in-room wireless access, or a web browser that uses the in-room

television set for its display (usually in this case the hotel provides a

wireless keyboard on the assumption that the guest will use it from the

bed), or computer(s) that guests can use, either in the lobby or in a

business center. As with telephone service, in the US most mid-pricehotels offer Internet access from a computer in the lobby to registered

guests without charging an additional fee, while fancier hotels are

more likely to charge for the use of a computer in their "business

center."

TABLE OF CONTENT

ABSTRACT ...................................................................................................................

1. GENERAL INFORMATION ...................................................................................

2. ENTREPRENUER PROFILE ...................................................................................

3. TYPE OF THE PRODUCT / SERVICES ................................................................

3.1 Type of the Project ..............................................................................................

3.2 Product / Services Description ............................................................................

3.3 Major Consumers ................................................................................................

4. MARKET POTENTIAL ...........................................................................................

4.1 Present Demand and Supply of the Product: ......................................................

4.2 Competition .........................................................................................................

4.3 Target Clients .......................................................................................................

4.4 Marketing Strategy ..............................................................................................


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5. PRODUCTION SCHEDULE ...................................................................................

5.1 No. of Working Days per Annum .......................................................................

5.2 No. of Working Shifts (8hrs) per Day .................................................................

5.3 Installed Capacity (annual) ..................................................................................

6. DETAILS OF THE PROPOSED PROJECT ............................................................

6.1 Land and Building ...............................................................................................

6.2 Machineries / Equipments ...................................................................................

6.3 Misc. Fixed Assets ...............................................................................................

6.4 Preliminary and Pre-Operative Expenses ............................................................

6.5 Sales Revenue (Annual) ......................................................................................6.6 Raw Material (Monthly Requirement) ................................................................

6.7 Utilities Annually .............................................................................................

6.8 Man Power (Salaries/Wages)- Monthly ..............................................................

6.9 Repairs and Maintenance- Monthly ....................................................................

6.10 Selling and Distribution Expenses Monthly ..................................................

6.11 Administrative Expenses Monthly .................................................................

6.12 Depreciation .......................................................................................................

7. WORKING CAPITAL ..............................................................................................

8. TOTAL COST OF THE PROJECT ..........................................................................

9. MEANS OF FINANCE .............................................................................................

10. COST OF

PRODUCTION.14

11. PROFITABILITY PROJECTIONS ........................................................................

12. BREAK EVEN POINT ...........................................................................................

13. PROFITABILITY

RATIO.16

14. RATE OF

INVESTMENT..16

15(A) LIST OF SUPPLIERS OF MACHINERIES ......................................................

15(B). LIST OF SUPPLIERS OF RAW

MATERIALS..17

15(C). BANK AND BRANCHES HAVING FINANCIAL OPERATION

17

16.

CONCLUSION..18


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1. GENERAL INFORMATION

NAME OF THE FIRM : COFFEE@CAFE SHOP

PROJECT : COFFEE@CAFE

LOCATION : Bhubaneswar

TYPE OF ORGANISATION : Partnership

ADDRESS : Infocity

Patia,Bhubaneswar

Orissa-760002

NAME OF THE

ENTREPRENEURS : Pradeep Kumar

BIRTH DATE : 02.03.1990


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2. ENTREPRENUER PROFILE

1. Name :Pradeep Kumar

Educational Qualification:Bachelor of Technology

Technical Skills: AUTOCAD , CATIA.

3. TYPE OF THE PRODUCT / SERVICES

3.1 Type of the Project

Internet cafe

3.2 Product / Services Description

The project aims at developing a new dimension in the building up of

internet par lour along with different services like espresso coffee and

snacks which will attract more customers than a mere internet shop.

3.3 Major Consumers

There are no age groups specified. Our major consumers will be

people who after being tired from their hectic work schedule come to

this cozy little place to relax with a cup of coffee along with their

work done in the internet.


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4. MARKET POTENTIAL

4.1 Present Demand and Supply of the Product:

Java Net will provide its customers with full access to the Internet andcommon computer software and hardware. Some of the Internet and

computing services available to Java Net customers are listed below:

Access to external POP3 email accounts.

Customers can sign up for a Java Net email account. This

account will be managed by Java Net servers and accessible

from computer systems outside the Java Net network.

FTP, Telnet, Gopher, and other popular Internet utilities will be

available. Access to Netscape or Internet Explorer browser.

Access to laser and color printing.

Access to popular software applications like Adobe Photo Shop

and Microsoft Word.


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JavaNet will also provide its customers with access to introductory

Internet and email classes. These classes will be held in the afternoonand late in the evening. By providing these classes, JavaNet will build

a client base familiar with its services. The computers, Internet access,

and classes wouldn't mean half as much if taken out of the

environment JavaNet will provide. Good coffee, specialty drinks,

bakery goods, and a comfortable environment will provide JavaNet

customers with a home away from home. A place to enjoy the benefits

of computing in a comfortable and well-kept environment.

4.2 Competition

Currently there are Internet shops with usually provide the common

broadband services but our enterprise serves the customers with the

facility of JAVA NET which gives an environment for internet as well

as computing services

.


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4.3 Target Clients

Our main target client belongs to the age group of 18-60. However

anybody who has to spend this free time at a place which will sooth

his mind and body.

4.4 Marketing Strategy

The Marketing Strategy will be advertising the product in the media

through the various advertisements telecasted in different channels, inprint media and advertisement on the internet.


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5. PRODUCTION SCHEDULE

5.1 No. of Working Days per Annum

The shop will remain open for all days except on Sunday, national &

local holidays. No. of Working Days per Annum = 360 days

5.2 No. of Working Shifts (8hrs) per Day

Since it is a business shop , so the working shift from 10.00 am to 9

pm . There will be a lunch time of 1hour from 1PM to 2PM.There will

be no night shift.

5.3 Installed Capacity (annual)

For the initial stage we are planning to set up this kind of shop mostly

in those places where software companies, engineering colleges areset up. This would prove to be click because the shop remains

attractive to the younger generation of people. Mostly the college

going student would prefer to spend their free time in a air

conditioned place enjoying with a sip of coffee or snacks just by

paying a mere amount .


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6. DETAILS OF THE PROPOSED PROJECT

JavaNet 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. JavaNet will continue to upgrade

and modify the systems to stay current with communications

technology. One of the main attractions associated with Internet cafes,

is the state of the art equipment available for use.

6.1 Land and Building

Sr. No. Particular Area Required Total

Value(P.A.)

Remarks

1. Land NA NA NA

2. Building (on

rent)

20000sqFt Rs. 1,75,000 Rental charge is

nearly Rs. 15,000

per monthTotal: Rs. 3,60,000

6.2 Machineries / Equipments

Sr. No. Description Nos. Required Rate(Rs.) Total Value(Rs.)

1. Air conditioner 3 15,000 45,000

2. Coffee machine 1 7000 7,000

3. Microwave Oven 1 11,000 11,000

4. Desktops 15 20,000 3,00,000

Total 3,63,000


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6.3 Misc. Fixed Assets

Sr. No. Description Nos. Required Rate(Rs.) Total Value(Rs.)

1. Furniture Table (12)

Chairs (15)

Racks (100)

500

400

1000

6,000

6,000

1,00,000

2. Inverter 1 7,000 7,000

3. Stabilizer 1 15,000 15,000

4. printer 1 3000 3000

5. Broadband

connection

2 3000 6,000

6. Lan connection 20 200 4,000

Total: 1,47,000

Total Fixed Assets: (6.1+6.2+6.3)

3,60,000+3,63,000+1,47,000=Rs. 8,70,000.

6.4 Preliminary and Pre-Operative Expenses

Sr. No. Particulars Amount (Rs.) Remarks

1. Interest during

implementation

14,000

2. Establishment

Expenses

36,000

3. Start-Up

Expenses 1,10,000

Misc. expenses

Total

1,60,000


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6.5 Sales Revenue (Annual)

The sales revenue of the business depends on the number ofcustomers it has dealt with in a day.

Year

(2009)

Items No.of

customers/year

Rates per unit

(Rs)

Sales

realization(Rs)

1. Internet 35,000 40 14,00,000

2. Coffee and snacks 25,000 40 10,00,000

Total 24,00,000

6.6 Raw Material (Monthly Requirement)

Sr. No. Items Quantity(per

month)

Rate(Rs.) Total Value(Rs.)

1. Coffee cups and

plastic plates.

4000 0.50 2,000

2. Decoratives 100 15 1,500

3. Snacks 1500 10 15,000

Total 18,500


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6.7 Utilities Annually

Sr. No. Particulars Annual Expenditure(Rs) Remarks1. Power/Electricity 1,5000

2. Water 10,000

3. Coffee blender machine 20,000

4. Any other item 40,000

Total 2,20,000

6.8 Man Power (Salaries/Wages)- Monthly

Sr.

No

Particulars No. Wages/Salaries per

Month per worker

(Rs.)

Monthly Expenses

(Rs.)

1. Semi Skilled 2 3,000 6,000

2. Accounts 1 NA NA

3. Unskilled 1 1,500 1,500

Total 4 7,500

6.9 Repairs and Maintenance- Monthly

Sr.

No.

Particulars Amount(Rs)

1. Computer and Electronic goods 5,000

2. Hardware Maintenance 8,000

3. Office maintenances 1,000

Total 14,000


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6.10 Selling and Distribution Expenses Monthly

Sr.No

Particulars Amount(Rs) Remarks

1. Publicity Expenses 8,000

2. Traveling 7,000

3. Middle men Commission 5,000

Total 20,000

6.11 Administrative Expenses Monthly

Sr.

No

Particulars Amount(Rs) Remarks

1. Stationery & Printing 1,000

2. Post/Telephone/Telegrams 6,000

3. Advertising Expenses 5,000

Total 12,000

6.12 Depreciation

Sr. no. Type of Asset Costof Asset Depreciation(WDV) Amount

1. Machinery

Equipments

3,63,000 10% 36,300

2. Buildings 1,80,000 5% 9,000

3. Miscellaneous fixed

assets

1,47,000 20% 29,400

Total 74,700


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7. WORKING CAPITAL

Working Capital (one month) / One Cycle

Sr. No. ITEM Amount(Rs.)

1. Raw-Material 18,500

2. Salary/Labor 7,500

3. Administrative expenses 12,000

4. Repairs and Maintenance exp 14,000

5. Selling and distribution expenses 20,000

6. Utilities 18,333

Total 90,333


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8. TOTAL COST OF THE PROJECT

Sr. No. Particulars Total Value(Rs.)

1. Fixed Capital

(Total of item No.6.1,6.2,6.3)

8,70,000

2. Working Capital margin pm x 3

(Total of item No. 7.1)

2,70,999

3. Preliminary & Pre-operative

Expenses

(Total of item No. 6.4)

1,60,000

Total 13,00,999


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9. MEANS OF FINANCE

Sr. No. Particulars Amount

(Rs.)

Remarks

1. Own Investment 5,40,015

2. Working Capital Loan 7,60,984

Total 13,00,999

10. COST OF PRODUCTION

1. Working capital (pm) x 12 10,83,996

2. Depreciation 74,700

3. Interest per annum on total investment (15%) 1,95,150

Total 13,53,846


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11. PROFITABILITY PROJECTIONS

Gross Profit = Turnover Cost of production

= Rs (24,00,000 13,53,846)

= Rs 10,46,154

Income Tax = 30% of Gross Profit

= 0.30 x 10,46,154

= Rs 3,13,846

Net Profit = Gross Profit Income Tax

= Rs(10,46,154 3,13,846)

= Rs 7,32,308

Total Fixed Cost = Total Depreciation +Total Interest+40% of salary

and other

contingent expenses and utilities.

=74,700+1,95,150+0.40x(2,20,000+1,68,000+2,40,

000+1,44,000+90,000)=Rs 6,14,650

12. BREAK EVEN POINT

Break Even Point = Fixed Cost x 100


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Fixed Cost + Net Profit

= 614650 X 100

614650 + 732308

= 45.63

13. PROFITABILITY RATIO

Profitability = Net Profit x 100

Turnover

= 732308 x 100

2400000

= 30.5%

14. RATE OF RETURN ON INVESTMENT

R = Net Profit x 100

Total Investment

= 732308 x 100

1300999

= 56.3%


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15(A). LIST OF SUPPLIERS OF MACHINERIES

Sai infotech , Bhubaneswar.

Nigam computers , cuttack.

BSNL Headoffice , Bhubaneswar.

15(B). LIST OF SUPPLIERS OF RAWMATERIALS

Capital grocery shop , Bhubaneswar.

Big bazaar , Bhubaneswar.

Reliance fresh , Bhubaneswar.

15(c). BANK AND BRANCHES HAVINGFINANCIAL

OPERATIONS

State Bank Of India , Patia Branch , Bhubaneswar.

Union Bank Of India , Patia Branch,Bhubaneswar.


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Date: Signature of the

entrepreneur

23/04/2012 PRADEEP KUMAR


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16. CONCLUSION

By using this universal charger we need not to wait at one place. More

over one charger is sufficient for number of electronic gadgets. So the

clumsy wire is not required. The charger will charge the device at

range of 50 meters.

It is a cost effective component and a user effective device. It has nonegative effects on health and environment.

Documents

Coffee@Cafe Shop - Copy