Costs in starting Internet BusinessI. Estimated Investment Costs

Qty.Descriptions (minimum specifications)Amount1Intel Core 2 Duo Processor2G DDR2 RAM, 160GB HDD512MB Video Card10/100 LAN Card (or built-in)CD or DVDRW Drive56K modem or ISDN (internal or external)19 LCD MonitorKeyboard and MouseAutomatic Voltage Regulator (AVR)30,000.00

9PC Workstations (not branded)Intel Dual Core, 1GB DDR2 RAM512 MB Video MemoryLAN Card 10/100160G Hard disk, 1.44 Floppy Drive17 LCD MonitorKeyboard and MouseAutomatic Voltage Regulator (AVR)27,000.00 /pc = 243,000.00

2Printers15,750.001Laser Printer3,950.001Ink Jet PrinterOther Peripherals10Headset @ 600.00 /pc.6,000.0010Web Camera @ 950.00 /pc.9,500.0050mLAN Cable /UTP/CAT5 @ 50.00 /m2,500.0020RJ45 Connectors @ 10.50 /pc.210.001Switch Hub // Router Wireless3,000.0010UPS 500 VA @ 2,000.00 each20,000.001Scanner3,150.00Total337,060.00Software RequirementsOperating Systems (Windows XP Professional) for10 units @ 6,750.00 per license67,500.00

Any Anti-Virus Software, Anti-Spy software willeliminate or minimize treats and system breakdowns16,000.00

Any Application Systems for operation WordProcessing, Spreadsheets and Gaming Software14,000.0

TOTAL97,500.00

Direct Costs*ParticularsCost

Supplies and Materials (Papers, CDs,Diskettes, Printer Cartridges, Pens)5,000.00

Telephone1,500.00

Internet Service Provider (ISP)/DSL4,500.00

Total11,000.00

* Monthly cost assumption

Indirect CostsParticulars

Cost

Labor Cost(P382.00/day min. wage x 30 days x 2 staff)

22,920.00

Water and Electricity (P250.00/day x 30 days)

7,500.00

Contingency Cost (10% of direct costs)

1,100.00

Total

31,520.00

II. Estimated Income for One Month OperationServicesAmount

Internet (Surf, Chat, Email, SMS)(P20.00 /hr x 7 hrs x 30 days x 10 PC)42,000.00

Encoding (P10.00/pg x est. 100 pp /mo.)1,000.00

Printing (P5.00/pg x est. 600 pp.)3,000.00

Scanning (P10.00/scan x est. 50 scan)1,500.00

Gross Income from Operation47,500.00

Less:

Direct Costs11,000.00

Indirect Costs31,520.0042,520.00

Estimated Net Income from Operation4,980.00

Other Products and Services: Gaming Web Designing Desktop publications (e.g., calling cards, invitations, etc.) Other computer-related services Food, coffee, beverages, schools and office supplies, etc.III. Procedure in starting Internet BusinessOnline business must have a network connection or connectivity between your computer and the Internet, a network, or another computer. A network is a group of computer systems that are connected together. Sometimes a computer is connected to a local area network (LAN) which connects computer systems that are close together, such as in one room or on one floor of a building. A server controls most of the networks. With Network Connections, you can gain access to network resources and functionality, whether you are physically located at the location of the network or in a remote location.Small Internet and Computer Services Business should have Personal Computer (PC) Server and PC Clients.Server a computer that carries out clients requests. It is the main computer or device on a network that manages network resources and handling network files, printers, database, and other devices. Servers are often dedicated that they perform no other tasks besides their server tasks.Client an application that runs on a PC or workstation and relies on a server to perform some operations.There are different network connection types. The most commonly used by Small Internet Caf Business are Digital Subscriber Line (DSL) connections or broadband provided by Internet Service Providers (ISP) companies. Some are still using Dial-Up connections with subscription plans.IV. Hardware Requirements for Network ConnectionsDepending on your configuration, you may need some or all of the following hardware:1. Network adapter with a Network Driver Interface Specification (NDIS) driver for LAN connectivity;2. One or more compatible modems and an available COM port. A 56k modem or Integrated Services Digital Network (ISDN) adapter if you are using an ISDN line;3. DSL or cable Modem, typically connected to an Ethernet network adapter;4. Analog telephone line; and5. A multi-port hub/adapter, which may improve performance for multiple connections.V. Selecting your Internet Service Provider (ISP)An Internet Service Provider (ISP) is a company that provides Internet access to other companies or individuals. An ISP maintains connections to other networks and ISPs, acting as a router for Internet traffic between a customers computer and any other machine also connected to the Internet anywhere else in the world. ISPs can provide access to the Internet in many ways. Most ISPs in the country are into subscription plans and provide good packages for home use and small businesses.VI. Registration RequirementsBusiness Name RegistrationDepartment of Trade & Industry (DTI) within NCRa. 12/F Trafalgar Plaza, 105 H.V. Dela Costa St.,Salcedo Village, Makati CityTel. No.: 811.8232 loc. 208b. 2/F Park NRide, Lawton, P. Burgos Ave., Dr. Basa St.Ermita, ManilaTel. No.: 536.7153c. G/F Highway 54 Plaza, EDSAMandaluyong City (across SM Megamall)Tel. No.: 706.1767d. 5/F Araneta Square MallMonumento Circle, Caloocan CityTel. No.: 332-0854 / 332-0829Provincial Office where the business is locatedWebsite: www.bnrs.dti.gov.ph for online registrationValidity: 5 yearsMayors PermitResidence Certificate and Sanitary Permit from the Municipality or City where the business is locatedValidity: 1 yearTax Identification Number (TIN)Bureau of Internal Revenue (BIR)National Office, Agham Road, Diliman, Quezon CityEmail:contact_us@cctr.bir.gov.phTrunkline: (632)929.7676 / 927.2511www.bir.gov.phVII. FinancingSSS Special Financing ProgramSocial Security System (SSS)Institutional Loans Department (ILD)SSS Building, East Avenue, Diliman, Quezon CityTel. Nos.: (632) 920.6401 / 927.8249Email:member_relations@sss.gov.phwww.sss.gov.phSmall & Medium Enterprise CreditPhil. Business for Social Progress18th Flr., Phil. Social Devt. CenterMagallanes cor. Real Sts. Intramuros, ManilaTel. Nos.: (632) 527.7741 to 48 / 527.3751Fax No.: (632) 527.3751Email:pbsp@pbsp.org.ph orsmec@pbsp.org.phwww.pbsp.org.phPeoples Credit and Finance Corporation (PCFC)395 Sen. Gil Puyat Ave., Makati CityTel. Nos.: (632) 897.8549 / 752.3746Fax No.: (632) 897.8523 / 897.8528Email:info@pcfc.phWebsite: www.pcfc.gov.phVIII. Technical AssistancePhilippine Trade Training Center (PTTC)PTTC Building, Sen. Gil J. Puyat Avenue cor.Roxas Blvd., 1300 Pasay City, PhilippinesTel. No.: (632) 468.8969Fax nos.: (632) 831.9988 / 833.0809E-mail:info@pttc.gov.ph