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Executive
Summary
This report summarizes the
results of the feasibility study of a multiple services
project. It describes the concept and viability of the
services to be offered by this project. The internet
kiosks are the wave of the future due to their cost
effectiveness, connectivity and public acceptance.
Interactive kiosks are being recognized as a legitimate
strategy to improve customer services, expand customer
base, reduce labor costs, and provide easy access and
information. Internet Kiosks can deliver a stunning
variety of goods and services, from ticket sales to
information and mass customized products. We can see many
internet kiosk projects with routine services or single
purpose internet kiosk. But with diversity of functions,
the customers now want multiple choices of functions in a
kiosk for their day-to-day needs.
There appear to be no
current classes of competition, as this will be brand new
idea of providing services at one place making the kiosk
“one point shop”. Summarizing the industry’s overview and
market potential, the report is written as a guide for
starting and managing the business and the same will also
serve as the basis for future business and marketing plans
necessary for success. The business will be formed as a
sole proprietorship owned and operated by one individual.
The private financing (investment) in the project would be
sought through individual companies/individual investors
or a group of venture capitalist, which believe that this
can be a successful investment. The revenue distribution
between the owner and individual investors (financers)
would be 60:40. The owner of the business would keep the
major share i.e. 60% being the executor of the project.
Technology is obviously a
critical component of this business. It will be important
to stay up to date on both equipment and knowledge to
remain competitive in the future. Today’s computers are
built with great power, speed and storage capabilities.
This along with one of the excellent remote, monitoring
tools will keep technical support costs to a minimum and
should allow for upgrades to be completed rapidly and
efficiently, with little or no hardware changes. Detailed
descriptions on kiosk components and applications are
given in the report.
The mission of the project would be to provide fast,
reliable, Internet access, and a variety of services to
promote the businesses. The important services among them
include services of e-banking, e-brokerage, HR self
services, Services for retailers/supermarkets, services
for tourists/business travelers etc.
Start-up expenses
The project would be started
as inexpensively as possible. Summarized startup costs on
the project will be as under:
|
A. Owner’s
investment: |
(Amount in US
$) |
|
i. Cash in hand |
40,000 |
Cost on kiosk units |
240,000 |
|
Cost on kiosk Units |
150,000 |
|
B. Financed
Units (outside investment) |
|
i. Cost on kiosk Units |
350,000 |
|
Total (A+B) |
780,000 |
The Total start-up cost
comes to approximately US $780,000, out of which the owner
of the business will finance $430,000 and the balance cost
on kiosk units ($350,000) will be borne by the individual
companies/individual investors.
How to finance 45% of your
Internet Kiosk business with 100 units
|
Financial
summary |
(Amount in US
$) |
| |
Year -1 |
Year -2 |
Year -3 |
| Kiosk units |
100 |
170 |
250 |
| Gross Annual
Income/Returns |
3,240,000 |
5,916,000 |
10,200,000 |
| Total cost
(investment) |
1,248,800 |
1,563,920 |
2,284,000 |
|
Net Profit |
1,991,200 |
4,352,080 |
7,916,000 |
The financial projections
show that the success of the business will be contingent
upon the increase in demand for fast, reliable, Internet
access and the ability of the project to successfully
offer excellent multiple services to the users. In
conclusion, this plan projects rapid growth and high
return over investment in the future.
| |
Year –1 |
Year –2 |
Year –3 |
| Return Over
Investment |
259% |
378% |
447% |
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