"BUSINESS PLAN: INTERNET SERVICE PROVIDER"
A Term paper from Dhaka University Tourism and Hospitality department
EXECUTIVE
SUMMARY
We
have selected our plan topic as “Internet Service Provider.” Net-Zone, to be located
in Mohammadpur, Noorzahan Road, will offer the community easy and affordable
access to the Internet, full access to FTP. Net-Zone will appeal to individuals
of all ages and backgrounds. The creation of a unique price of internet
distribution, upscale quality of speed, innovative service that will
differentiate Net-Zone from local internet service provider. The keys to the success for Net-Zone are: The creation of a unique
price of internet service, innovative speed, upscale quality atmosphere that
will differentiate Net-Zone from other local Internet service provider. The
risks involved with starting Net-Zone are: Will there be a demand for the services offered
by Net-Zone? Will individuals be willing to pay for the service Net-Zone
offers? Net-Zone is a partnership business held by 3 owners. Internet service
provider charges higher price. Net-Zone
will provide FTP service. Net-Zone will differentiate itself from the others by
providing its customers free FTP service with Internet. Net-Zone will provide its customers
with full access to the Internet. Only one Internet services are available to Net-Zone
customers are listed below: Customers can sign up for a Net-Zone email account.
This account will be managed by Net-Zone servers and accessible from computer
systems outside the Net-Zone network. Access to Netscape or Internet Explorer
browser. Net-Zone will also provide its
customers with access to introductory Internet and email classes. By providing
these classes, Net-Zone will build a client base familiar with its services. As Net-Zone grows, more communications
systems will be added. Net-Zone's customers can be
divided into two groups. Net-Zone's target market falls anywhere between the
ages of 18 to 50. Net-Zone has 2 main strategies. Power Internet users are
extremely familiar with the Internet and its offerings. This group of customers
serves an important function at Net-Zone. The following subtopics provide an
overview of Net-Zone's 2 key strategies. Net-Zone's second strategy will be
focused on attracting power Internet users. Power Internet users provide an
important function at Net-Zone. Net-Zone plans on attracting this type of
customer by: Net-Zone's first strategy focuses on attracting novice Internet
users. Net-Zone plans on attracting these customers by staffed by knowledgeable
employees focused on serving the customer's needs. Net-Zone will offer
introductory classes on the Internet and email. Net-Zone's strengths will help
it capitalize on emerging opportunities. Threats that Net-Zone should be aware
of include, the rapidly falling cost of Internet access, and emerging local
competitors. Net-Zone is a place for people to experience the technology of the
Internet. Net-Zone needs to keep up with the technology because a lot of the Net-Zone
experience is technology. Net-Zone needs
to balance technology needs with the other needs of the business. As the
population of daily Internet users increases, so will the need for the services
Net-Zone offers. Net-Zone knows what it takes to build an upscale cyber cafe. Net-Zone
will position itself as an Internet service provider. Due to the number of internet
service providers in Mohammadpur, Noorzahan Road, it is important that Net-Zone
sets fair prices for its service. Internet access providers use different
pricing schemes. Second, Net-Zone looked at how cyber-cafes in other markets
went about pricing Internet access. Net-Zone employs people to handle sales
transactions. Computer literacy is a requirement for Net-Zone employees. Net-Zone's
commitment to friendly, helpful service is one of the key factors that
distinguish Net-Zone from other Internet cafes.
CHAPTER
1
INTRODUCTION
1.1.
BACKGROUND OF THE STUDY
Successful
entrepreneur makes it possible for his business to acquire the profits and
makes a business profitable. So business plan acts an important role for an
entrepreneur. We have selected our plan topic as “Internet Service Provider.”
We have made a analysis for required information in the regional area.
1.2.
RATIONAL OF THE STUDY
For
doing a business, we need to concern about how to make a business plan. Going
to prepare a business plan in Bangladesh as entrepreneurship course, we acquire
required knowledge about this type of business’s planning process that help us
to perceive a common picture about business plan preparing process on the basis
of Bangladesh. So, we have the same opinion that this fruitful plan not only
assure reasonable grade mark in our curriculum result but also assure well-done
feedback for near future entrepreneur.
1.3.
OBJECTIVE OF THE STUDY
The
report aims to prepare a person to make a business plan.
1.4.
SCOPE OF THE STUDY
There
is a certain boundary to cover this plan. Our particular plan covers marketing,
selling and other processes. We mainly focus on location and competitor on that.
And we also cover financial process.
1.5.
LIMITATIONS OF THE STUDY
We
tried heart & soul to prepare a well-informed report. But unfortunately we
faced some difficulties when preparing this report. We tried to overcome the
difficulties. In spite of trying our level best, some difficulties that hamper
our schedule report work. Within a short time, we need to prepare some other
courses’ reports for in this session. For this reason, we could not get a
fluent time schedule for the plan.
1.6.
METHODS
For
making any plan most of the data should be taken that reflect actual situation.
For our plan we have collected various types of primary and secondary data. In
a disciplined way we can say that the report input were collected from two
sources
1.6.1.
PRIMARY SOURCES
Face
to face conversation with the various cyber cafes in Mohammadpur region and
share their own experience to start the business.
1.6.2.
SECONDARY SOURCES
Internet
is the most favorable secondary source for students.
1.7.
PLAN PREVIEW
In
the following pages, the plan is prepared for the practical knowledge about this
type of business. First we draw an overall picture of our business.
Then,
we try to point out various analyses. Finally, we accumulate the findings,
analyze them.
CHAPTER
2
BUSINESS
PART
2.1. BUSINESS SUMMARY
Net-Zone, to be located in Mohammadpur, Noorzahan Road, will offer
the community easy and affordable access to the Internet. Net-Zone will provide
full access to FTP. Net-Zone will also provide customers with a unique and
innovative environment for enjoying great services.
Net-Zone will appeal to individuals of all ages
and backgrounds. The instructional Internet classes, and the helpful staff that
Net-Zone provides, will appeal to the audience that does not associate
themselves with the computer age. This educational aspect will attract younger
of the community who are rapidly gaining interest in the unique resources that
online communications have to offer.
2.2. OBJECTIVES
Net-Zone's objective for
the first three years of operation includes:
- The creation of a unique price of internet distribution, upscale quality of speed, innovative service that will differentiate Net-Zone from local internet service provider.
- The formation of an environment that will bring people with diverse interests.
- Affordable access to the resources of the Internet and other online services.
2.3. KEYS TO SUCCESS
The keys to the success
for Net-Zone are:
- The creation of a unique price of internet service, innovative speed, upscale quality atmosphere that will differentiate Net-Zone from other local Internet service provider.
- The establishment of Net-Zone as entertainment source by free FTP service.
- Net-Zone will position itself as an educational resource for individuals wishing to learn about the benefits the Internet has to offer.
2.4. MISSION
As the popularity of the Internet continues to grow at an
exponential rate, easy and affordable access is quickly becoming a
necessity of life. Net-Zone provides communities with the ability to access the
Internet, enjoy a FTP service, and share Internet experiences in a comfortable
environment. People of all ages and backgrounds will get to enjoy services that
Net-Zone provides.
2.5. RISKS
The risks involved with
starting Net-Zone are:
- Will there be a demand for the services offered by Net-Zone?
- Will the popularity of the Internet continue to grow?
- Will individuals be willing to pay for the service Net-Zone offers?
2.6. BUSINESS OWNERSHIP
Net-Zone is a partnership
business held by 3 owners. Bishawjit Roy, the founder of Net-Zone, is the
majority owner. Abdullah
al Mamun and Iqram hold some capital positions as investors.
2.7. START-UP SUMMARY
The communications equipment necessary to provide Net-Zone's
customers with a high-speed connection to the Internet and the services it has
to offer make up a large portion of the start-up costs. These costs will
include the computer terminals and all costs associated with set-up.
A single estimated figure will be allocated for this purpose. The
modification cost estimate will include the costs associated with preparing the
site for opening business.
Start-up Expense Details:
START UP COST
|
||
Computers
|
Tk.220,000
|
10 PC Per PC 22000/-
|
HP Server
|
Tk.400,000
|
|
Communication Line
|
Tk.200,000
|
|
Printer
|
Tk.12,500
|
2 Printer, 1B/W, 1C
|
Software
|
Tk.15,000
|
Kaspersky Internet
Security
|
Decoration
|
Tk.70,000
|
|
Stationary
|
Tk.5,000
|
|
Telephone
|
Tk.2,000
|
|
Computer desk
|
Tk.50,000
|
10 desk per 5000
|
Chair
|
Tk.10,000
|
10 chair per 1000
|
Other
|
Tk.50,000
|
|
Total
|
Tk.1,034,500
|
|
START-UP REQUIREMENTS
|
|||
START-UP EXPENSES
|
START-UP ASSET
|
||
Legal
|
Tk.50,000
|
HP Server
|
Tk.400,000
|
Communication Lines
|
Tk.200,000
|
Printer
|
Tk.12,500
|
Stationery etc.
|
Tk.5,000
|
Decoration
|
Tk.70,000
|
Brochures
|
Tk.2,000
|
Telephone
|
Tk.2,000
|
Computer Systems (x10), Software
|
Tk.235,000
|
Computer desk
|
Tk.50,000
|
Other
|
Tk.50,000
|
Chair
|
Tk.10,000
|
Total Expenses
|
Tk.542,000
|
Total Asset
|
Tk.544,500
|
2.8. BUSINESS LOCATIONS AND FACILITIES
A site has been chosen
at Mohammadpur, Noorzahan Road in personal land. This site was chosen for
various reasons, including:
- Internet service provider charges higher price.
- FTP services are not available.
- Monopoly is happened in this area.
- Known by special people.
All of these qualities
are consistent with Net-Zone's goal of providing a communication and
socialization for the Mohammadpur community.
2.9. SERVICES
Net-Zone will provide FTP service.
Printing, and introductory courses to the Internet will also be available to
the customer. Net-Zone will also provide customers with a unique speed and
innovative quality for enjoying great service.
2.10.
COMPETITIVE COMPARISON
Net-Zone will be the second Internet
cafe in Mohammadpur. Net-Zone will differentiate itself from the others by
providing its customers free FTP service with Internet.
2.11.
SERVICE DESCRIPTION
Net-Zone will provide its customers
with full access to the Internet. Only one Internet services are available to Net-Zone
customers are listed below:
- Access to external POP3 email accounts.
- Customers can sign up for a Net-Zone email account. This account will be managed by Net-Zone servers and accessible from computer systems outside the Net-Zone network.
- FTP and other popular Internet utilities will be available.
- Access to Netscape or Internet Explorer browser.
Net-Zone will also provide its
customers with access to introductory Internet and email classes. These classes
will be held in roaster base. By providing these classes, Net-Zone 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 Net-Zone
will provide.
2.12.
TECHNOLOGY
Net-Zone 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. Net-Zone will
continue to upgrade and modify the systems to stay current with communications
technology.
2.13.
FUTURE SERVICES
As Net-Zone grows, more
communications systems will be added. The possibility of additional units has
been accounted for in the current floor plan. As the demand for Internet
connectivity increases, along with the increase in competition, Net-Zone will
continue to add new services to keep its customer base coming back for more.
CHAPTER
3
MARKET
ANALYSIS
3.1. MARKET ANALYSIS SUMMARY
Net-Zone is faced with
the exciting opportunity of being the first-mover in the Mohammadpur cyber-cafe
market. The consistent popularity of free FTP in the Internet has been proven
to be a winning concept in other markets and will produce the same results in Mohammadpur.
3.2. TARGET MARKET SEGMENT STRATEGY
Net-Zone intends to capture to people who want a high speed
connection around the Internet and to serve users by providing various services
such as FTP and also membership services. Furthermore, Net-Zone will be an
important source of best internet for local people who desire to work or check
their email messages and also desire for new movie collection in a friendly
atmosphere. These residents will either use Net-Zones's PCs, or plug their
notebooks into Internet connections. Net-Zone's target market covers a wide
range of ages: from members of young generation who are growing up surrounded
by computers, to professionals who have come to the realization that people
today cannot afford to ignore computers.
3.3. MARKET NEEDS
Factors such as current trends of free FTP service ensure that the
high demand for low cost internet service will remain constant over the next
five years. The rapid growth of the Internet and online services are increasing
day by day. The potential growth of the Internet is vast, to the point where
one day, people cannot think any source of getting information without using
Internet. Being the second cyber-cafe in Mohammadpur, Net-Zone will establish
itself as the first-mover advantages of best service in the regional area.
3.4. MARKET SEGMENTATION
Net-Zone's customers can be divided into two groups. The first group
is familiar with the Internet. The second group is not familiar with the
Internet, yet, and is just waiting for the right opportunity to enter the
online community. Net-Zone's target market falls anywhere between the ages of
18 to 50. In addition to these two broad categories, Net-Zone's target market
can be divided into more specific market segments. The majority of these
individuals are students and business people. See the Market Analysis chart and
table below for more specifics.
3.5. SERVICE BUSINESS ANALYSIS
The popularity of the Internet is growing exponentially. Those who
are familiar with the Internet are well aware of how fun and addictive surfing
the Net can be. Those who have not yet experienced the Internet need a
convenient, relaxed atmosphere where they can feel comfortable learning about
and utilizing the current technologies. Net-Zone seeks to provide its customers
with affordable Internet access in an innovative and supportive environment.
The founder of Net-Zone realizes the need for differentiation and
strongly believes that combining a cafe with complete Internet service is the
key to success. The fact that no cyber-cafes are established in Mohammadpur
with the service of ISP and also memebership, presents Net-Zone with a chance
to enter the window of opportunity and enter into a profitable niche in the
market.
3.6. COMPETITION AND BUYING PATTERNS
The main competitor in the internet service provider is Rupali
Business Centre. These businesses are located in or near the Noorzahan Road,
and target a similar segment to Net-Zone's.
Competition from online service providers comes from
locally-owned. There are approximately eight, local, online service providers
in Mohammadpur. This number is expected to grow with the increasing demand for
Internet access. Due to the nature of the Internet, there are no geographical
boundaries restricting competition.
3.7. STRATEGY AND IMPLEMENTATION SUMMARY
Net-Zone has 2 main strategies. The first strategy focuses on
attracting novice Internet users. By providing a novice friendly environment, Net-Zone
hopes to educate and train a loyal customer base.
The second, and most important, strategy focuses on pulling in
power Internet users. Power Internet users are extremely familiar with the
Internet and its offerings. This group of customers serves an important
function at Net-Zone. Power users have knowledge and web-browsing experience
that novice Internet users find attractive and exciting.
3.8. STRATEGY PYRAMID
The following subtopics
provide an overview of Net-Zone's 2 key strategies. Strategy pyramid graphics
are presented in the appendix of this plan.
3.8.1. ATTRACT POWER INTERNET USERS
Net-Zone's second
strategy will be focused on attracting power Internet users. Power Internet
users provide an important function at Net-Zone. Net-Zone plans on attracting
this type of customer by:
- Providing the latest in computing technology.
- Providing scanning and printing services.
- Providing access to powerful software applications.
3.8.2. ATTRACT NOVICE INTERNET USERS
Net-Zone's first
strategy focuses on attracting novice Internet users. Net-Zone plans on
attracting these customers by:
- Providing a novice friendly environment. Net-Zone will be staffed by knowledgeable employees focused on serving the customer's needs.
- A customer service desk will always be staffed. If a customer has any type of question or concern, a Net-Zone will always be available to assist.
- Net-Zone will offer introductory classes on the Internet and email. These classes will be designed to help novice users familiarize themselves with these key tools and the Net-Zone computer systems.
3.9. SWOT ANALYSIS
The SWOT analysis provides us with an opportunity to examine the
internal strengths and weaknesses Net-Zone must address. It also allows us to
examine the opportunities presented to Net-Zone as well as potential threats.
Net-Zone has a valuable inventory of strengths that will help it
succeed. These strengths include: a knowledgeable and friendly staff,
state-of-the-art computer hardware, and a clear vision of the market need.
Strengths are valuable, but it is also important to realize the weaknesses Net-Zone
must address. These weaknesses include: a dependence on quickly changing
technology, and the cost factor associated with keeping state-of-the art
computer hardware.
Net-Zone's strengths will help it capitalize on emerging
opportunities. These opportunities include, but are not limited to, a growing
population of daily Internet users, and the growing social bonds fostered by
the new Internet communities. Threats that Net-Zone should be aware of include,
the rapidly falling cost of Internet access, and emerging local competitors.
3.9.1. WEAKNESSES
- A dependence on quickly changing technology. Net-Zone is a place for people to experience the technology of the Internet. The technology that is the Internet changes rapidly. Net-Zone needs to keep up with the technology because a lot of the Net-Zone experience is technology.
- Cost factor associated with keeping state-of-the-art hardware. Keeping up with the technology of the Internet is an expensive undertaking. Net-Zone needs to balance technology needs with the other needs of the business.
3.9.2. OPPORTUNITIES
- Growing population of daily Internet users. The importance of the Internet almost equals that of the telephone. As the population of daily Internet users increases, so will the need for the services Net-Zone offers.
- Social bonds fostered by the new Internet communities. The Internet is bringing people from across the world together unlike any other communication medium. Net-Zone will capitalize on this social trend by providing a place for smaller and local Internet communities to meet in person. Net-Zone will grow some of these communities on its own by establishing chat areas and community programs. These programs will be designed to build customer loyalty.
3.9.3. THREATS
- Emerging local competitors. Currently, Net-Zone is enjoying a first-mover advantage in the local cyber-cafe market. Many of our programs will be designed to build customer loyalty, and it is our hope that our quality service.
3.9.4. STRENGTHS
- Knowledgeable and friendly staff.
- State-of-the art equipment. Part of the Net-Zone experience includes access to state-of-the-art computer equipment.
- Clear vision of the market need. Net-Zone knows what it takes to build an upscale cyber cafe. We know the customers, we know the technology, and we know how to build the service that will bring the two together.
3.10. MARKETING STRATEGY
Net-Zone will position itself as an Internet service provider. It
will serve high-quality speed of internet service at a competitive price. Due
to the number of internet service providers in Mohammadpur, Noorzahan Road, it
is important that Net-Zone sets fair prices for its service. Net-Zone will use
advertising as its main source of promotion. Ads placed in the wall of Noorzahan
Road and it will help build more customers.
3.11. PRICING STRATEGY
Determining a fair market, hourly price, for online use is more
difficult because there is no direct competition from another cyber-cafe in Mohammadpur.
Therefore, Net-Zone considered three sources to determine the hourly charge
rate. First, we considered the cost to use other Internet servers, whether it
is a local networking firm or a provider. Internet access providers use
different pricing schemes. Charges are in monthly fee. In addition, some
providers use this strategy for pricing schemes. Thus, it can quickly become a
high monthly cost for the individual. Second, Net-Zone looked at how
cyber-cafes in other markets went about pricing Internet access.
3.12. SALES STRATEGY
Net-Zone employs people to handle sales transactions. Computer
literacy is a requirement for Net-Zone employees. If an employee does not
possess basic computer skills when they are hired, they are trained by our
full-time technician. Our full-time technician is also available for customers
in need of assistance. Net-Zone's commitment to friendly, helpful service is
one of the key factors that distinguish Net-Zone from other Internet cafes.
CHAPTER
4
MANAGEMENT
4.1.
MANAGEMENT SUMMARY
Net-Zone is owned and operated by
Bishawjit Roy. The business, being small in nature, requires a simple
organizational structure. Implementation of this organizational form calls for
the owner, Bishawjit Roy, to make all of the major management decisions in
addition to monitoring all other business activities.
4.2.
PERSONNEL PLAN
The
staff will consist of two part-time employees working thirty hours a week at
6000 per month. The three personal investors will be included in management
decisions. One of them will do operation of this business. This simple
structure provides a great deal of flexibility and allows communication to
disperse quickly and directly. Because of these characteristics, there are few
coordination problems seen at Net-Zone that are common within larger
organizational chains.
CHAPTER
5
Conclusion
Net-Zone will provide full access to FTP. The establishment of Net-Zone
as entertainment source by free FTP service. The risks involved with starting Net-Zone
are: Net-Zone is a partnership business held by 3 owners. Internet service
provider charges higher price. Net-Zone will provide FTP service. Net-Zone
will be the second Internet cafe in Mohammadpur. Net-Zone will provide its
customers with full access to the Internet. Only one Internet services are available
to Net-Zone customers are listed below: Customers
can sign up for a Net-Zone email account. Net-Zone will also provide its
customers with access to introductory Internet and email classes. Net-Zone's customers can be divided into two groups. Net-Zone
has 2 main strategies. Net-Zone's second strategy will be focused on attracting
power Internet users. Power Internet users provide an important function at Net-Zone.
Net-Zone plans on attracting this type of customer by: Net-Zone's first
strategy focuses on attracting novice Internet users. Net-Zone plans on
attracting these customers by: Net-Zone will offer introductory classes on the
Internet and email. Net-Zone is a place for people to experience the technology
of the Internet. Net-Zone will position
itself as an Internet service provider. Second, Net-Zone looked at how
cyber-cafes in other markets went about pricing Internet access. Net-Zone
employs people to handle sales transactions. Computer literacy is a requirement
for Net-Zone employees. Net-Zone's commitment to friendly, helpful service is one
of the key factors that distinguish Net-Zone from other Internet cafes.
Slide show:
BUSINESS PLAN INTERNET SERVICE PROVIDER
Submitted to
Md. Shariful Alam Khandakar
Assistance Professor
Dept. of Tourism & Hospitality Management
Faculty of Business Studies
University of Dhaka
Submitted by
1. Shaikh Syeed Hossain Batch ‐ 16th ‐ ID : 71516113
2. Kumar Bishawjit Roy Batch ‐ 12th ‐ ID : 71312072
3. Md. Jahangir Hossain Batch ‐ 14th ‐ ID : 71414003
4. Md. Md. Shahinur Alam Batch ‐ 16th ‐ ID : 71516054
5. H.M. Shahriar Tarique Batch ‐ 14th ‐ ID : 71414005
Submission Date : 28 August 2015 ii
TABLE OF CONTENTS
EXECUTIVE SUMMARY iv
CHAPTER 1: INTRODUCTION
1.1. BACKGROUND OF THE STUDY 2
1.2. RATIONAL OF THE STUDY 2
1.3. OBJECTIVE OF THE STUDY 2
1.4. SCOPE OF THE STUDY 2
1.5. LIMITATIONS OF THE STUDY 2
1.6. METHODS 3
1.6.1. PRIMARY SOURCES 3
1.6.2. SECONDARY SOURCES 3
1.7. PLAN PREVIEW 3
CHAPTER 2: BUSINESS PART
2.1. BUSINESS SUMMARY 5
2.2. OBJECTIVES 5
2.3. KEYS TO SUCCESS 5
2.4. MISSION 6
2.5. RISKS 6
2.6. BUSINESS OWNERSHIP 6
2.7. START-UP SUMMARY 6
2.8. BUSINESS LOCATIONS AND FACILITIES 8
2.9. SERVICES 8
2.10. COMPETITIVE COMPARISON 8
2.11. SERVICE DESCRIPTION 8
2.12. TECHNOLOGY 9
2.13. FUTURE SERVICES 9
CHAPTER 3: MARKET ANALYSIS
3.1. MARKET ANALYSIS SUMMARY 11
3.2. TARGET MARKET SEGMENT STRATEGY 11
3.3. MARKET NEEDS 11 iii
3.4. MARKET SEGMENTATION 12
3.5. SERVICE BUSINESS ANALYSIS 12
3.6. COMPETITION AND BUYING PATTERNS 13
3.7. STRATEGY AND IMPLEMENTATION SUMMARY 13
3.8. STRATEGY PYRAMID 13
3.8.1. ATTRACT POWER INTERNET USERS 14
3.8.2. ATTRACT NOVICE INTERNET USERS 14
3.9. SWOT ANALYSIS 14
3.9.1. WEAKNESSES 15
3.9.2. OPPORTUNITIES 15
3.9.3. THREATS 16
3.9.4. STRENGTHS 16
3.10. MARKETING STRATEGY 16
3.11. PRICING STRATEGY 16
3.12. SALES STRATEGY 17
CHAPTER 4: MANAGEMENT
4.1. MANAGEMENT SUMMARY 19
4.2. PERSONNEL PLAN 19
CHAPTER 5: CONCLUSION
5.1. CONCLUSION 21 iv
EXECUTIVE SUMMARY
We have selected our plan topic as “Internet Service Provider.” Net-Zone, to be located in
Mohammadpur, Noorzahan Road, will offer the community easy and affordable access to the
Internet, full access to FTP. Net-Zone will appeal to individuals of all ages and backgrounds. The
creation of a unique price of internet distribution, upscale quality of speed, innovative service
that will differentiate Net-Zone from local internet service provider. The keys to the success for
Net-Zone are: The creation of a unique price of internet service, innovative speed, upscale
quality atmosphere that will differentiate Net-Zone from other local Internet service provider.
The risks involved with starting Net-Zone are: Will there be a demand for the services offered by
Net-Zone? Will individuals be willing to pay for the service Net-Zone offers? Net-Zone is a
partnership business held by 3 owners. Internet service provider charges higher price. Net-Zone
will provide FTP service. Net-Zone will differentiate itself from the others by providing its
customers free FTP service with Internet. Net-Zone will provide its customers with full access to
the Internet. Only one Internet services are available to Net-Zone customers are listed below:
Customers can sign up for a Net-Zone email account. This account will be managed by Net-Zone
servers and accessible from computer systems outside the Net-Zone network. Access to Netscape
or Internet Explorer browser. Net-Zone will also provide its customers with access to
introductory Internet and email classes. By providing these classes, Net-Zone will build a client
base familiar with its services. As Net-Zone grows, more communications systems will be
added. Net-Zone's customers can be divided into two groups. Net-Zone's target market falls
anywhere between the ages of 18 to 50. Net-Zone has 2 main strategies. Power Internet users are
extremely familiar with the Internet and its offerings. This group of customers serves an
important function at Net-Zone. The following subtopics provide an overview of Net-Zone's 2 v
key strategies. Net-Zone's second strategy will be focused on attracting power Internet users.
Power Internet users provide an important function at Net-Zone. Net-Zone plans on attracting
this type of customer by: Net-Zone's first strategy focuses on attracting novice Internet users.
Net-Zone plans on attracting these customers by staffed by knowledgeable employees focused on
serving the customer's needs. Net-Zone will offer introductory classes on the Internet and email.
Net-Zone's strengths will help it capitalize on emerging opportunities. Threats that Net-Zone
should be aware of include, the rapidly falling cost of Internet access, and emerging local
competitors. Net-Zone is a place for people to experience the technology of the Internet. Net-
Zone needs to keep up with the technology because a lot of the Net-Zone experience is
technology. Net-Zone needs to balance technology needs with the other needs of the business.
As the population of daily Internet users increases, so will the need for the services Net-Zone
offers. Net-Zone knows what it takes to build an upscale cyber cafe. Net-Zone will position itself
as an Internet service provider. Due to the number of internet service providers in
Mohammadpur, Noorzahan Road, it is important that Net-Zone sets fair prices for its service.
Internet access providers use different pricing schemes. Second, Net-Zone looked at how cyber-
cafes in other markets went about pricing Internet access. Net-Zone employs people to handle
sales transactions. Computer literacy is a requirement for Net-Zone employees. Net-Zone's
commitment to friendly, helpful service is one of the key factors that distinguish Net-Zone from
other Internet cafes. BUSINESS PLAN: INTERNET SERVICE PROVIDER
1 | Page
CHAPTER 1
INTRODUCTION
BUSINESS PLAN: INTERNET SERVICE PROVIDER
2 | Page
1.1. BACKGROUND OF THE STUDY
Successful entrepreneur makes it possible for his business to acquire the profits and makes a
business profitable. So business plan acts an important role for an entrepreneur. We have
selected our plan topic as “Internet Service Provider.” We have made a analysis for required
information in the regional area.
1.2. RATIONAL OF THE STUDY
For doing a business, we need to concern about how to make a business plan. Going to prepare a
business plan in Bangladesh as entrepreneurship course, we acquire required knowledge about
this type of business’s planning process that help us to perceive a common picture about business
plan preparing process on the basis of Bangladesh. So, we have the same opinion that this fruitful
plan not only assure reasonable grade mark in our curriculum result but also assure well-done
feedback for near future entrepreneur.
1.3. OBJECTIVE OF THE STUDY
The report aims to prepare a person to make a business plan.
1.4. SCOPE OF THE STUDY
There is a certain boundary to cover this plan. Our particular plan covers marketing, selling and
other processes. We mainly focus on location and competitor on that. And we also cover
financial process.
1.5. LIMITATIONS OF THE STUDY
We tried heart & soul to prepare a well-informed report. But unfortunately we faced some
difficulties when preparing this report. We tried to overcome the difficulties. In spite of trying
our level best, some difficulties that hamper our schedule report work. Within a short time, we BUSINESS PLAN: INTERNET SERVICE PROVIDER
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need to prepare some other courses’ reports for in this session. For this reason, we could not get a
fluent time schedule for the plan.
1.6. METHODS
For making any plan most of the data should be taken that reflect actual situation. For our plan
we have collected various types of primary and secondary data. In a disciplined way we can say
that the report input were collected from two sources
1.6.1. PRIMARY SOURCES
Face to face conversation with the various cyber cafes in Mohammadpur region and share their
own experience to start the business.
1.6.2. SECONDARY SOURCES
Internet is the most favorable secondary source for students.
1.7. PLAN PREVIEW
In the following pages, the plan is prepared for the practical knowledge about this type of
business. First we draw an overall picture of our business.
Then, we try to point out various analyses. Finally, we accumulate the findings, analyze them.
BUSINESS PLAN: INTERNET SERVICE PROVIDER
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CHAPTER 2
BUSINESS PART BUSINESS PLAN: INTERNET SERVICE PROVIDER
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2.1. BUSINESS SUMMARY
Net-Zone, to be located in Mohammadpur, Noorzahan Road, will offer the community easy and
affordable access to the Internet. Net-Zone will provide full access to FTP. Net-Zone will also
provide customers with a unique and innovative environment for enjoying great services.
Net-Zone will appeal to individuals of all ages and backgrounds. The instructional Internet
classes, and the helpful staff that Net-Zone provides, will appeal to the audience that does not
associate themselves with the computer age. This educational aspect will attract younger of the
community who are rapidly gaining interest in the unique resources that online communications
have to offer.
2.2. OBJECTIVES
Net-Zone's objective for the first three years of operation includes:
• The creation of a unique price of internet distribution, upscale quality of speed,
innovative service that will differentiate Net-Zone from local internet service provider.
• The formation of an environment that will bring people with diverse interests.
• Affordable access to the resources of the Internet and other online services.
2.3. KEYS TO SUCCESS
The keys to the success for Net-Zone are:
• The creation of a unique price of internet service, innovative speed, upscale quality
atmosphere that will differentiate Net-Zone from other local Internet service provider.
• The establishment of Net-Zone as entertainment source by free FTP service.
• Net-Zone will position itself as an educational resource for individuals wishing to learn
about the benefits the Internet has to offer.
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2.4. MISSION
As the popularity of the Internet continues to grow at an exponential rate, easy and affordable
access is quickly becoming a necessity of life. Net-Zone provides communities with the ability to
access the Internet, enjoy a FTP service, and share Internet experiences in a comfortable
environment. People of all ages and backgrounds will get to enjoy services that Net-Zone
provides.
2.5. RISKS
The risks involved with starting Net-Zone are:
• Will there be a demand for the services offered by Net-Zone?
• Will the popularity of the Internet continue to grow?
• Will individuals be willing to pay for the service Net-Zone offers?
2.6. BUSINESS OWNERSHIP
Net-Zone is a partnership business held by 3 owners. Bishawjit Roy, the founder of Net-Zone, is
the majority owner. Abdullah al Mamun and Iqram hold some capital positions as investors.
2.7. START-UP SUMMARY
The communications equipment necessary to provide Net-Zone's customers with a high-speed
connection to the Internet and the services it has to offer make up a large portion of the start-up
costs. These costs will include the computer terminals and all costs associated with set-up.
A single estimated figure will be allocated for this purpose. The modification cost estimate will
include the costs associated with preparing the site for opening business.
BUSINESS PLAN: INTERNET SERVICE PROVIDER
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Start-up Expense Details:
START UP COST
Computers Tk.220,000 10 PC Per PC 22000/-
HP Server Tk.400,000
Communication Line Tk.200,000
Printer Tk.12,500 2 Printer, 1B/W, 1C
Software Tk.15,000
Kaspersky Internet
Security
Decoration Tk.70,000
Stationary Tk.5,000
Telephone Tk.2,000
Computer desk Tk.50,000 10 desk per 5000
Chair Tk.10,000 10 chair per 1000
Other Tk.50,000
Total Tk.1,034,500
START-UP REQUIREMENTS
START-UP EXPENSES START-UP ASSET
Legal Tk.50,000 HP Server Tk.400,000
Communication Lines Tk.200,000 Printer Tk.12,500
Stationery etc. Tk.5,000 Decoration Tk.70,000
Brochures Tk.2,000 Telephone Tk.2,000
Computer Systems (x10), Software Tk.235,000 Computer desk Tk.50,000
Other Tk.50,000 Chair Tk.10,000
Total Expenses Tk.542,000 Total Asset Tk.544,500
BUSINESS PLAN: INTERNET SERVICE PROVIDER
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2.8. BUSINESS LOCATIONS AND FACILITIES
A site has been chosen at Mohammadpur, Noorzahan Road in personal land. This site was
chosen for various reasons, including:
• Internet service provider charges higher price.
• FTP services are not available.
• Monopoly is happened in this area.3
• Known by special people.
All of these qualities are consistent with Net-Zone's goal of providing a communication and
socialization for the Mohammadpur community.
2.9. SERVICES
Net-Zone will provide FTP service. Printing, and introductory courses to the Internet will also be
available to the customer. Net-Zone will also provide customers with a unique speed and
innovative quality for enjoying great service.
2.10. COMPETITIVE COMPARISON
Net-Zone will be the second Internet cafe in Mohammadpur. Net-Zone will differentiate itself
from the others by providing its customers free FTP service with Internet.
2.11. SERVICE DESCRIPTION
Net-Zone will provide its customers with full access to the Internet. Only one Internet services
are available to Net-Zone customers are listed below:
• Access to external POP3 email accounts.
• Customers can sign up for a Net-Zone email account. This account will be managed by
Net-Zone servers and accessible from computer systems outside the Net-Zone network.
• FTP and other popular Internet utilities will be available. BUSINESS PLAN: INTERNET SERVICE PROVIDER
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• Access to Netscape or Internet Explorer browser.
Net-Zone will also provide its customers with access to introductory Internet and email classes.
These classes will be held in roaster base. By providing these classes, Net-Zone 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 Net-Zone will provide.
2.12. TECHNOLOGY
Net-Zone 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. Net-Zone will
continue to upgrade and modify the systems to stay current with communications technology.
2.13. FUTURE SERVICES
As Net-Zone grows, more communications systems will be added. The possibility of additional
units has been accounted for in the current floor plan. As the demand for Internet connectivity
increases, along with the increase in competition, Net-Zone will continue to add new services to
keep its customer base coming back for more.
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CHAPTER 3
MARKET ANALYSIS
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3.1. MARKET ANALYSIS SUMMARY
Net-Zone is faced with the exciting opportunity of being the first-mover in the Mohammadpur
cyber-cafe market. The consistent popularity of free FTP in the Internet has been proven to be a
winning concept in other markets and will produce the same results in Mohammadpur.
3.2. TARGET MARKET SEGMENT STRATEGY
Net-Zone intends to capture to people who want a high speed connection around the Internet and
to serve users by providing various services such as FTP and also membership services.
Furthermore, Net-Zone will be an important source of best internet for local people who desire to
work or check their email messages and also desire for new movie collection in a friendly
atmosphere. These residents will either use Net-Zones's PCs, or plug their notebooks into
Internet connections. Net-Zone's target market covers a wide range of ages: from members of
young generation who are growing up surrounded by computers, to professionals who have come
to the realization that people today cannot afford to ignore computers.
3.3. MARKET NEEDS
Factors such as current trends of free FTP service ensure that the high demand for low cost
internet service will remain constant over the next five years. The rapid growth of the Internet
and online services are increasing day by day. The potential growth of the Internet is vast, to the
point where one day, people cannot think any source of getting information without using
Internet. Being the second cyber-cafe in Mohammadpur, Net-Zone will establish itself as the
first-mover advantages of best service in the regional area.
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3.4. MARKET SEGMENTATION
Net-Zone's customers can be divided into two groups. The first group is familiar with the
Internet. The second group is not familiar with the Internet, yet, and is just waiting for the right
opportunity to enter the online community. Net-Zone's target market falls anywhere between the
ages of 18 to 50. In addition to these two broad categories, Net-Zone's target market can be
divided into more specific market segments. The majority of these individuals are students and
business people. See the Market Analysis chart and table below for more specifics.
3.5. SERVICE BUSINESS ANALYSIS
The popularity of the Internet is growing exponentially. Those who are familiar with the Internet
are well aware of how fun and addictive surfing the Net can be. Those who have not yet
experienced the Internet need a convenient, relaxed atmosphere where they can feel comfortable
learning about and utilizing the current technologies. Net-Zone seeks to provide its customers
with affordable Internet access in an innovative and supportive environment. BUSINESS PLAN: INTERNET SERVICE PROVIDER
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The founder of Net-Zone realizes the need for differentiation and strongly believes that
combining a cafe with complete Internet service is the key to success. The fact that no cyber-
cafes are established in Mohammadpur with the service of ISP and also memebership, presents
Net-Zone with a chance to enter the window of opportunity and enter into a profitable niche in
the market.
3.6. COMPETITION AND BUYING PATTERNS
The main competitor in the internet service provider is Rupali Business Centre. These businesses
are located in or near the Noorzahan Road, and target a similar segment to Net-Zone's.
Competition from online service providers comes from locally-owned. There are approximately
eight, local, online service providers in Mohammadpur. This number is expected to grow with
the increasing demand for Internet access. Due to the nature of the Internet, there are no
geographical boundaries restricting competition.
3.7. STRATEGY AND IMPLEMENTATION SUMMARY
Net-Zone has 2 main strategies. The first strategy focuses on attracting novice Internet users. By
providing a novice friendly environment, Net-Zone hopes to educate and train a loyal customer
base.
The second, and most important, strategy focuses on pulling in power Internet users. Power
Internet users are extremely familiar with the Internet and its offerings. This group of customers
serves an important function at Net-Zone. Power users have knowledge and web-browsing
experience that novice Internet users find attractive and exciting.
3.8. STRATEGY PYRAMID
The following subtopics provide an overview of Net-Zone's 2 key strategies. Strategy pyramid
graphics are presented in the appendix of this plan. BUSINESS PLAN: INTERNET SERVICE PROVIDER
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3.8.1. ATTRACT POWER INTERNET USERS
Net-Zone's second strategy will be focused on attracting power Internet users. Power Internet
users provide an important function at Net-Zone. Net-Zone plans on attracting this type of
customer by:
• Providing the latest in computing technology.
• Providing scanning and printing services.
• Providing access to powerful software applications.
3.8.2. ATTRACT NOVICE INTERNET USERS
Net-Zone's first strategy focuses on attracting novice Internet users. Net-Zone plans on attracting
these customers by:
• Providing a novice friendly environment. Net-Zone will be staffed by knowledgeable
employees focused on serving the customer's needs.
• A customer service desk will always be staffed. If a customer has any type of question or
concern, a Net-Zone will always be available to assist.
• Net-Zone will offer introductory classes on the Internet and email. These classes will be
designed to help novice users familiarize themselves with these key tools and the Net-
Zone computer systems.
3.9. SWOT ANALYSIS
The SWOT analysis provides us with an opportunity to examine the internal strengths and
weaknesses Net-Zone must address. It also allows us to examine the opportunities presented to
Net-Zone as well as potential threats.
Net-Zone has a valuable inventory of strengths that will help it succeed. These strengths include:
a knowledgeable and friendly staff, state-of-the-art computer hardware, and a clear vision of the BUSINESS PLAN: INTERNET SERVICE PROVIDER
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market need. Strengths are valuable, but it is also important to realize the weaknesses Net-Zone
must address. These weaknesses include: a dependence on quickly changing technology, and the
cost factor associated with keeping state-of-the art computer hardware.
Net-Zone's strengths will help it capitalize on emerging opportunities. These opportunities
include, but are not limited to, a growing population of daily Internet users, and the growing
social bonds fostered by the new Internet communities. Threats that Net-Zone should be aware
of include, the rapidly falling cost of Internet access, and emerging local competitors.
3.9.1. WEAKNESSES
1. A dependence on quickly changing technology. Net-Zone is a place for people to
experience the technology of the Internet. The technology that is the Internet changes
rapidly. Net-Zone needs to keep up with the technology because a lot of the Net-Zone
experience is technology.
2. Cost factor associated with keeping state-of-the-art hardware. Keeping up with the
technology of the Internet is an expensive undertaking. Net-Zone needs to balance
technology needs with the other needs of the business.
3.9.2. OPPORTUNITIES
1. Growing population of daily Internet users. The importance of the Internet almost equals
that of the telephone. As the population of daily Internet users increases, so will the need
for the services Net-Zone offers.
2. Social bonds fostered by the new Internet communities. The Internet is bringing people
from across the world together unlike any other communication medium. Net-Zone will
capitalize on this social trend by providing a place for smaller and local Internet
communities to meet in person. Net-Zone will grow some of these communities on its BUSINESS PLAN: INTERNET SERVICE PROVIDER
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own by establishing chat areas and community programs. These programs will be
designed to build customer loyalty.
3.9.3. THREATS
1. Emerging local competitors. Currently, Net-Zone is enjoying a first-mover advantage in
the local cyber-cafe market. Many of our programs will be designed to build customer
loyalty, and it is our hope that our quality service.
3.9.4. STRENGTHS
1. Knowledgeable and friendly staff.
2. State-of-the art equipment. Part of the Net-Zone experience includes access to state-of-
the-art computer equipment.
3. Clear vision of the market need. Net-Zone knows what it takes to build an upscale cyber
cafe. We know the customers, we know the technology, and we know how to build the
service that will bring the two together.
3.10. MARKETING STRATEGY
Net-Zone will position itself as an Internet service provider. It will serve high-quality speed of
internet service at a competitive price. Due to the number of internet service providers in
Mohammadpur, Noorzahan Road, it is important that Net-Zone sets fair prices for its service.
Net-Zone will use advertising as its main source of promotion. Ads placed in the wall of
Noorzahan Road and it will help build more customers.
3.11. PRICING STRATEGY
Determining a fair market, hourly price, for online use is more difficult because there is no direct
competition from another cyber-cafe in Mohammadpur. Therefore, Net-Zone considered three
sources to determine the hourly charge rate. First, we considered the cost to use other Internet BUSINESS PLAN: INTERNET SERVICE PROVIDER
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servers, whether it is a local networking firm or a provider. Internet access providers use
different pricing schemes. Charges are in monthly fee. In addition, some providers use this
strategy for pricing schemes. Thus, it can quickly become a high monthly cost for the individual.
Second, Net-Zone looked at how cyber-cafes in other markets went about pricing Internet access.
3.12. SALES STRATEGY
Net-Zone employs people to handle sales transactions. Computer literacy is a requirement for
Net-Zone employees. If an employee does not possess basic computer skills when they are hired,
they are trained by our full-time technician. Our full-time technician is also available for
customers in need of assistance. Net-Zone's commitment to friendly, helpful service is one of the
key factors that distinguish Net-Zone from other Internet cafes.
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CHAPTER 4
MANAGEMENT
BUSINESS PLAN: INTERNET SERVICE PROVIDER
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4.1. MANAGEMENT SUMMARY
Net-Zone is owned and operated by Bishawjit Roy. The business, being small in nature, requires
a simple organizational structure. Implementation of this organizational form calls for the owner,
Bishawjit Roy, to make all of the major management decisions in addition to monitoring all other
business activities.
4.2. PERSONNEL PLAN
The staff will consist of two part-time employees working thirty hours a week at 6000 per
month. The three personal investors will be included in management decisions. One of them will
do operation of this business. This simple structure provides a great deal of flexibility and allows
communication to disperse quickly and directly. Because of these characteristics, there are few
coordination problems seen at Net-Zone that are common within larger organizational chains.
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CHAPTER 5
Conclusion
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5.1. CONCLUSION
Net-Zone will provide full access to FTP. The establishment of Net-Zone as entertainment
source by free FTP service. The risks involved with starting Net-Zone are: Net-Zone is a
partnership business held by 3 owners. Internet service provider charges higher price. Net-Zone
will provide FTP service. Net-Zone will be the second Internet cafe in Mohammadpur. Net-Zone
will provide its customers with full access to the Internet. Only one Internet services are
available to Net-Zone customers are listed below: Customers can sign up for a Net-Zone email
account. Net-Zone will also provide its customers with access to introductory Internet and email
classes. Net-Zone's customers can be divided into two groups. Net-Zone has 2 main strategies.
Net-Zone's second strategy will be focused on attracting power Internet users. Power Internet
users provide an important function at Net-Zone. Net-Zone plans on attracting this type of
customer by: Net-Zone's first strategy focuses on attracting novice Internet users. Net-Zone plans
on attracting these customers by: Net-Zone will offer introductory classes on the Internet and
email. Net-Zone is a place for people to experience the technology of the Internet. Net-Zone will
position itself as an Internet service provider. Second, Net-Zone looked at how cyber-cafes in
other markets went about pricing Internet access. Net-Zone employs people to handle sales
transactions. Computer literacy is a requirement for Net-Zone employees. Net-Zone's
commitment to friendly, helpful service is one of the key factors that distinguish Net-Zone from
other Internet cafes.
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