Stroll Net will provide a unique forum for communication and entertainment through the medium of public Internet access. In the first year, we will set up 16 Internet-enabled pay-kiosks in public spaces throughout Tech City, in locations frequented by business travelers and students, but with no nearby internet cafes or other similar competition. Our flagship location will be next to the downtown bus and train station, where, for less than a dollar, travelers can check email, locate phone numbers, and look up directions on any of the multiple online-mapping sites. They can also simply surf the net, as their time and budget allows. By accepting both real money (coins and dollar bills) and credit cards, we can catch both the casual browser and the traveler with money to burn.
Stroll Net is the answer to an increasing demand. Americans want access to the methods of communication and volumes of information now available on the Internet, at a cost they can afford, and in such a way that they aren't confined to a bedroom or office desk. 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 is prepared to obtain financing in the amount of £299,671. The supplemental financing is required to begin the purchase of public Internet terminals, the purchase of an office warehouse, office equipment and supplies and company vehicles, and to cover expenses in the first year of operations. Additional financing has already been secured in the form of £10,500 of personal savings from owners Cam Piotr and Bob Green, and a long-term loan of £100,000.
Stroll Net will be incorporated as 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 as shareholders and therefore will not be liable for more than their individual personal investment of £5,250 each.
The financing, in addition to the capital contributions from the owners, will allow Stroll Net to successfully open and maintain operations through year one. The large initial capital investment will allow Stroll Net to provide its clients and customers with the most innovative public Internet terminal available. A unique and innovative product is required to provide the customers with a service that is insurmountable by any competition. Successful operation in year one will provide Stroll Net a customer base that will allow it to be self-sufficient in year two.
For an investment of £299,671, we project dividends of £100,000 in year two, and £200,000 in year three, depending on cash flows. These projections are based on actual business revenues from similar start-up customers of our internet kiosk supplier in other states. In the first year, with a break-even point of £42,599 per month, we expect revenues of £727,072 and net profit of 18.5%, or £134,305. By year three, revenues will increase to £1,136,067, and the net worth of Stroll Net will increase to £610,320. Dividends thereafter will depend on cash flows; in year five, investors will have the option of being bought out by the company owners.
As the popularity of the Internet continues to grow at an exponential rate, easy and affordable access is quickly becoming a necessity of life. Stroll Net will provide internet users and business travelers alike the ability to access the Internet, via our public Internet terminals or a wireless WiFi connection away from home and the office. 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 look to be the leader in introducing an innovative and quality public Internet terminal to our current market. We will add value to our community by maintaining a quality product and providing a valuable service. Our terminals will utilize the most advance technologies and our staff will possess the utmost in customer service experience.
1.2 Keys to Success
As a start-up company, new to the industry, we must be focused and work hard to create an acceptance for ourselves and our products and services within the marketplace. The keys to our success are:
The placement of an innovative product and quality service that is able to both expand existing markets and create new ones.
A steady, disciplined pattern of growth.
The development of a good relationship with clients and customers.
Stroll Net's objectives for the first year of operation include:
The introduction of an innovative product that offers an affordable and convenient way for Internet users to access the Internet away from home.
The creation of a unique environment that allows traveling business people access to their own files and programs.
The placement of 100 public Internet terminals operating throughout the North MyState area.
For the following two years our growth objectives includes:
A growth in public Internet terminals placed by 20% each year.
A growth in revenues by 25% per year.
The risks involved with starting Stroll Net are:
Will there be a demand for the services offered by Stroll Net in Tech City?
Will the popularity of the Internet continue to grow, or is the Internet a fad?
Will individuals be willing to pay for the service Stroll Net offers?
Will the cost of accessing the Internet from home drop so significantly that there will not be a market for public Internet terminals?