Profile No.

: 1 NIC Code: 63992

CYBER CAFÉ

1. INTRODUCTION

In today’s world, everything is connected to Internet world. People need to use Internet and
Computer for various activities such as browsing, emails, video conferencing, for use of
various government applications, document/presentation preparation. Cyber café is such
place where with prescribed fee, public can access to internet and computer services. Here,
project profile is prepared for cyber café which provides facility of video calling and printing
services.

2. SERVICE AND ITS APPLICATION

Cyber café where computers are loaded with basic software, web camera and high speed
internet infrastructure can provide services related to Internet on hourly basis to public.

3. DESIRED QUALIFICATION FOR PROMOTER

There is no specific need in qualification for operating Cyber Café.

4. REQUIREMENTS – MATERIAL/EQUIPMENT AND MANPOWER

Resources
1. Computers, with basic software and web camera
2. Colour Printer
3. Furniture
4. Air Conditioner
5. UPS/Inverter
 6. MANPOWER

1. Entrepreneur (Self)
2. Helper/Peon

Project Building
Setup of a computer business centre requires below steps to follow.
1. Location
 Location of cyber café should be in a busy area with good amount of
residents and schools.
2. Fixed Investment
 Computers and its suppliers need to be decided. Internet service provider
with high speed internet need to be decided.
3. Office Furniture and Installation of Computers

7. IMPLEMENTATION SCHEDULE

Finding a location and finalizing office for rent can take around 6-8 weeks. Procuring
computers and Installation with furniture setup can take up to another 6 weeks. The whole
business with well researched can be setup easily in 12-14 weeks.

8. FIXED CAPITAL INVESTMENT

Sr. No. Description Qty Amount Total

1 Computer System with Basic Software and Web 20
Camera ₹ 25,000.00 ₹ 5,00,000.00
2 Colour Printer with Scanner 1 ₹ 15,000.00 ₹ 15,000.00
3 UPS/Inverter 10 ₹ 2,500.00 ₹ 25,000.00
4 Air Conditioner 1 ₹ 25,000.00 ₹ 25,000.00
Sub Total ₹ 5,65,000.00
5 Internet Infrastructure 1 ₹ 5,000.00 ₹ 5,000.00
6 Furniture 1 ₹ 40,000.00 ₹ 40,000.00
7 Electrification 1 ₹ 22,600.00 ₹ 22,600.00
Total ₹ 6,32,600.00

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 9. WORKING CAPITAL (PER MONTH)

Sr. No. Description Total

1 Salary ₹ 18,000.00
1a Entrepreneur ₹ 10,000.00
1b Technical/Office Support ₹ 8,000.00
2 Raw Material ₹ 1,830.00
2a Internet Connection Charges ₹ 700.00
2b Paper Ream (500 Pages) (70 GSM) ₹ 780.00
2c Ink cartridge refilling, Powder for toner refilling etc. ₹ 350.00
3 Utilities - Power ₹ 6,500.00
4 Other Expenses ₹ 3,500.00
4a Advertising/Marketing/Social Media ₹ 150.00
4b Stationery ₹ 350.00
4c Telephone ₹ 500.00
4d Repair and Maintenance ₹ 2,000.00
4e Insurance ₹ 250.00
4f Misc ₹ 250.00
5 Rent ₹ 10,000.00
Total ₹ 39,830.00

10. COST OF PROJECT

Sr. No. Particulars Amount in Rs

1 Land ₹ 0.00
2 Building ₹ 0.00
3 Equipments/ Other fixed investment ₹ 6,32,600.00
4 Working Capital Margin (3 Months) ₹ 1,19,490.00
5 Total Cost of Project ₹ 7,52,090.00

11. MEANS OF FINANCE

Sr. No. Description %age Amount (Rs)

1 Promoter's Contribution 25% ₹ 1,88,022.50
2 Term Loan/Bank Finance 75% ₹ 5,64,067.50
Total ₹ 7,52,090.00

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Cost of Operation

Sr. No. Particulars Amount in Rs

Variable Cost
1 Raw Material and Other direct inputs ₹ 5,330.00
2 Salary (60%) ₹ 10,800.00
3 Power (70%) ₹ 4,550.00
Variable Cost 1 Month ₹ 20,680.00
Total Annual Variable Cost ₹ 2,48,160.00
Fixed Cost
1 Overheads ₹ 10,000.00
2 Salary (40%) ₹ 7,200.00
3 Power (30%) ₹ 1,950.00
Sub Total ₹ 19,150.00
Total for 12 Months ₹ 2,29,800.00
4 Interest ₹ 67,688.10
5 Depreciation on Equipments @ 10% ₹ 51,500.00
6 Depreciation on Furniture @ 20 % ₹ 8,000.00
Total Fixed Cost ₹ 3,56,988.10
Total Cost of Production ₹ 6,05,148.10

Turnover

Unit Qty per Revenue Monthly Amount

Sr. No. Description Unit
Price Day per Day (25 Working Days)
Internet Browsing ₹ 80,000.00
1 ₹ 20 Hour 140 ₹ 2,800.00
(20 PCs x 8 hours)
Printing Documents ₹ 5,000.00
2 ₹ 10 Pages 10 ₹ 100.00
Colour
3 Printing Documents B/W ₹5 Pages 50 ₹ 250.00 ₹ 9,375.00
4 Scan ₹5 Pages 10 ₹ 50.00 ₹ 2,500.00
Monthly Gross Income ₹ 96,875.00
Total Yearly Gross Income ₹ 11,62,500.00

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 12. PROFITABILITY CALCULATION

Net Profit (Turnover - Cost of

₹ 5,57,351.90
Operation)
Net Profit Ratio (Net profit *
47.94%
100/Turnover)
Rate of Return (Net Profit * 100
74.11%
/ Total Cost of Project)

Profitability Projection

At Full
Sr. No. Particulars UOM Year Wise estimates
Capacity
Year 1 Year 2 Year 3 Year 4 Year 5
Capacity
1 % 30 40 50 60 70 100
Utilization
Rs
2 Sales ₹ 3.49 ₹ 4.65 ₹ 5.81 ₹ 6.98 ₹ 8.14 ₹ 11.63
Lakhs
Raw
Materials & Rs
3 ₹ 0.74 ₹ 0.99 ₹ 1.24 ₹ 1.49 ₹ 1.74 ₹ 2.48
Other Direct Lakhs
Inputs
Gross Rs
4 ₹ 2.74 ₹ 3.66 ₹ 4.57 ₹ 5.49 ₹ 6.40 ₹ 9.14
Margin Lakhs
Overheads
Rs
5 Except ₹ 2.30 ₹ 2.30 ₹ 2.30 ₹ 2.30 ₹ 2.30 ₹ 2.30
Lakhs
Interest
Rs
6 Interest ₹ 0.68 ₹ 0.68 ₹ 0.68 ₹ 0.68 ₹ 0.68 ₹ 0.68
Lakhs
Rs
7 Depreciation ₹ 0.60 ₹ 0.60 ₹ 0.60 ₹ 0.60 ₹ 0.60 ₹ 0.60
Lakhs
Net Profit Rs
8 -₹ 0.83 ₹ 0.09 ₹ 1.00 ₹ 1.92 ₹ 2.83 ₹ 5.57
Before Tax Lakhs
-23.71% 1.88% 17.24% 27.47% 34.78% 47.94%

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13. BREAKEVEN ANALYSIS

Sr. No. Particulars UOM Value

1 Sales at Full Capacity Rs Lakhs 11.63
2 Variable Costs Rs Lakhs 2.48
3 Fixed Cost incl. Interest Rs Lakhs 3.57
4 Break Even Capacity % of Installed 39.04
BEP = FC/( Sales -Variable Cost) Capacity
*100