Stroll Net will offer a unique platform for entertainment and communication through public Internet access. We will install 16 Internet-enabled, pay-kiosks within Tech City in the first year. They will be located in places that are frequented by students and business travellers, but there is no 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 surf on the internet as much as their budget and time permit. 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 to have access to the Internet’s communication tools and information at a price they can afford. They also want to be able to use the Internet in a place other than their home or office. Stroll Net’s goal to make the Internet accessible from anywhere in the world, at a reasonable price, is to help the community.
This business plan is prepared to obtain financing in the amount of $299,671. Additional financing is required for the purchase and operation of public Internet terminals and the purchase office equipment, supplies, and vehicles. Cam Piotr (owner) and Bob Green (long-term loan $100,000) have provided additional financing.
Stroll Net will become a Limited Liability Corporation. This will protect Bob Green (Cam Piotr) and their personal liability from double taxation. The shareholders will be treated as shareholders, and they will not be liable beyond their $5,250 individual investment.
Stroll Net, with the capital contributions by the owners and the financing, will be able open and keep operations open through year 1. The large initial capital investment will allow Stroll Net to provide its clients and customers with the most innovative public Internet terminal available. It is essential to offer customers a service unlike any other. Stroll Net will have a solid customer base by year one, which will make it self-sufficient in year 2.
We project dividends of $100,000 and $200,000 for an investment of $299671, depending on cash flows. These projections were based on actual revenues from similar businesses to our internet kiosk provider in other states. We anticipate revenues of $727.072 and net profit at 18.5% ($134,305) in the first fiscal year. This is based on a break-even of $42,599 each month. Stroll Net’s revenue will grow to $1136,067 in year three and its net worth will rise from $610,320 to $610,000. After that, dividends will be dependent on cash flows. In year five investors will have the possibility of being purchased by the company owners.
Access to the internet is becoming more and more common as it grows in popularity at an alarming rate. Stroll Net offers internet access to both business travelers and users. Young and old internet users can connect to the internet at a minimal cost. They can also use it while they are in hotels, waiting at airports, or shopping in malls.
We strive to be the innovators and leaders in the introduction of a high-quality, public Internet terminal for our current market. We will bring value to the community by providing valuable services and a high-quality product. The most up-to-date technologies will be used by our terminals and the staff will offer exceptional customer service.
1.2 Keys to Success
As a start-up, we have to be focused and work hard in order to make our products and offerings accepted by the market. Our success is based on these key factors:
- The placement of an innovative product and quality service that is able to both expand existing markets and create new ones.
- A steady, controlled pattern of growth.
- Good relationships with clients and customers.
#8217’s goals for the first year are:
- The introduction of an innovative product that offers an affordable and convenient way for Internet users to access the Internet away from home.
- A unique environment for business travelers that gives them access to their files and programs.
- 100 Internet terminals are placed in the North MyState.
Our growth targets for the next two years include:
- There has been a 20% increase each year in the number placed on public Internet terminals
- A 25% increase in revenues per annum
Start Stroll Net is not without risk
- Will there be a demand for the services offered by Stroll Net in Tech City?
- Will the Internet be a popular trend or just a passing fad?
- Will people be willing to pay the Stroll Net service?
- Is it possible that the price of Internet access from home will drop so much that there won’t be a market in the future for public Internet terminals.