Having an Internet Cafe is fun and exciting...

OdavOnLine Research Cafe Branch in Sampaloc, Manila
It's Saturday and I have nothing to do now, so I'd to share with you my experience of having an internet cafe business with branches in Manila and in other provinces. 

However, due to other circumstances and my family's decision, I decided to end its operation. However, I believe it's worth sharing with those who are interested in venturing into this business.

Actually, if I ask my colleagues (engineers), friends, and construction and factory workers who are working overseas regarding their preferred business when they’ll have enough capital; most of them see that an Internet Café Business will still boom even though it is widely spread in the towns/cities already or even with the advancement of mobile/wifis due to gaming (or group gaming).  In fact,  some of them were planning to establish this business in their respective provinces.

So, let me begin my share then...

According to Wikipedia, the free encyclopedia, an internet café or cybercafé is a place where one can use a computer with Internet access, most for a fee, usually per hour or minute; sometimes one can have unmetered access with a pass for a day or month, etc. It may serve as a regular café as well, with food and drinks being served. Some definition states that it is a high-tech equivalent of a coffee house.


Here's my simple feasibility (based on my research at that time and experience)

Customers
a.) High school students (Elementary Pupils)~ 30%
b.) College students ~ 55%
c.) Others (Employees, Relatives of OFW, etc.) ~ 15%

Location

A. Near High Schools

Pros:
  •  Except that they’ll have their assignments or projects to research with, most middle schools prefer to play games.

Cons: 
  •  “Gaming” services near schools are prohibited! Consider local ordinances and parents’ complaints if their high/grade schooler has been addicted to it which will trigger parents to seek help from local authorities and hereunder will borne local ordinances if currently do not exists. 
  • Low sales during Saturdays and Sundays and when there will be a bit longer vacation. 

B.  Near Colleges

Pros:
  •  Most college students maximize rentals for both research and gaming.
  • Loose ordinances because college students are more mature to balance or control their urges; they must do their research work.
  • Incorporation of extra services such as printing, research, encoding, webcams, cards, tutorials, etc. (this is of minimal earning for high schoolers)

Cons:
  • Low sales during semestral breaks.


C. Residential/Office Area (Employees/OFW relatives):

Pros:
  • You can set a higher rental fee; however, you need to compete with existing giants on internet café.

Cons:
  • You can only put up within business (commercial) capital cities. However, employees have their own connections in their offices already as well as in their respective houses.

Basic Start-up Requirement: 

a) Location and shop
b) Computer units
c) Computer table
d) Network


Important Tips:
1) Install Time Tracker (Automatic Shutdown) ~ this cybercafé administration software is required to manage and monitor its daily operation including security on cashier’s access &/or account-related issues price setting, etc.
2) Install Antivirus, Spyware, Adware ~ this is to protect your units from customers’ downloads for the unit to be rebooted when the virus has been downloaded.
3) Re-boot PC every use
4) Isolate internet surfing from the gaming area if required necessary to avoid noisy gamers.
5) Turn off PC units when not used.
6) Comply with government formalities such as SSS, Tax, Permits, etc.
7) Think of other items or products that you can generate more income from your shop.
8) Precaution: Need enough funds to pay bills during non-sales or low sales.

Is it profitable even these days?

Based on the figurative data below, Yes! It’s profitable… & can be more profitable depending on other services that you can add such as Printing, Photocopying, Graphics/Web Designing, Snacks, Etc.

More Practical Views on Internet Café Business:
  • An Open Proposal of Internet Café Business which shows the comprehensive coverage and components of the business.
I received this proposal from an internet café business owner, you may learn from here the basic coverage, components, and rough prices of putting up an internet café business in the Philippines. 

Here’s the content of the email (unedited version):

Dear Sir,

In reference to your interest in putting up an internet café business in your hometown and request to formalize my offer of business to you, I hereby state the business package I am offering to you:

Server: 1set –   P4, 2.24GHz, 768MB RAM, GF4 w/ TV out, 120GB HDD, Pinnacle AV/DV, DVD Writer, FDD
Client: 11sets - P4, 2.24/1.8GHz, 512-256MB, GF2, 40GB HDD, FDD
            2sets -        Sempron, 2.4GHz, 512MB, 40GB, FDD


Note: Above PCs are complete with 17” Colored Monitor, Optical Mouse, Keyboard and AVR.
Others:


1unit        CD Writer
2units     CD-Rom
14units   17” Monitor
1unit        Un-interrupted Power Supply
1unit        80GB HDD
7pcs         Windows XP license
2units     Printer with card reader
1unit        Scanner
1unit        Sony video camera w/ 6pcs tapes, tripod
1unit        Sony VHS
1unit        Digital camera
7pcs         Web cam
2units     Speaker 2.1channel w/ subwoofer (from Malaysia)
1lot          Multi media speaker
1lot          Headset w/ microphone
1unit        PC microphone
2units     Filter screen
1lot          Keyboard
1lot          Mouse w/ pad
2pcs         Destroyer joystick
1unit        DSL Router w/ 4 port
1unit        16 port hub
2units     Modem 56k
2units     LAN card
1unit        Laminating machine w/ laminating plastic ID
1unit        Paper cutter #12
1unit        CD labeler w/ marker pen
1lot          Special paper and envelopes for wedding, b-day, etc.
1lot          Copy paper
1unit        2.5hp Aircon
1inut        Industrial stand fan
2unit       Wall fan
1unit        Stand fan
13pcs       Bigbox monoblock chairs
6pcs         Cofta stool chairs
1lot          PC table
1unit        Cofta sofa
1unit        Billboard 3x6
1unit        Panaflex 2x3 w/ lights
1unit        Merchandiser coated iron
1unit        Fire extinguisher
1lot          Cables w/ RJ45, crimping tools, refill printer ink
1lot          Door bell, door knob, lock
1lot          New CD, CDRW, DVD, cards (for sale)


Besides, it has fire insurance, mayor’s permit, BIR and receipt. Two months deposit on rent of establishment.

               Above all of these my offer to sell is Php400, 000.00 [USD 8,000] (negotiable). If you have any question please don’t hesitate to email me.

Thank you and God Bless You always.

  • The basic set-up price package offers Internet Café from Private Entities
(This data does not show advertisements or contacts of these private entities, but simply gives you figurative views and comparisons on their respective price offers which will guide your financial allotment system.)


SELLER 1:

PHP 160,000.00 [USD 3,200]
             PC = 11,
              SERVER = included
              ROUTER/HUB = included
              OTHER NOTES: 17” Flat Monitor

SELLER 2:

PHP 70,000.00 [USD 1,400]
             PC = 5units
              ROUTER/HUB = included
              OTHER NOTES:  Orig Win XP

PHP 150,000.00 [USD 3,000]
             PC = 10units
              ROUTER/HUB = included
              OTHER NOTES:  Orig Win XP

SELLER 3:

PHP 98,000.00 [USD 1,960]
             PC = 7units
              Table/Chair = included
              Games = included
              Printer = included
              Set-up = included
              OTHER NOTES:  Pentium 2.4GHz, 512MB, 17"monitor

SELLER 4:

PHP 220,000.00 [USD 4,400]
             PC = 13units
            SERVER = included
              A/C units = included
              OTHER NOTES:  complete set


SELLER 5:

PHP 250,000.00 [USD 5,000]
             PC = 15units
            Table/Chair = included
              A/C units = included
              OTHER NOTES:  Pentium IV

 SELLER 6:

PHP 98,000.00 [USD 1,960]
             PC = 8units
             OTHER NOTES:  P-IV 1.8Ghz dual core, 1.0GB DDR, 80GB, complete set

SELLER 7:

PHP 180,000.00 [USD 3,600]
             PC = 11units
            SERVER = included
             Table/Chair = included
             Webcam /Headset = included
              OTHER NOTES:  none

SELLER 8:

PHP 35,000.00 [USD 700]
             PC = 5units
            Switch/Hub= included
             Lan Cables = included
             Webcam /Headset = included
              OTHER NOTES: Internet-ready with pre-installed open sources software
                                          Network & Technical Support for free




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