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With the growth of the online gaming industry and the influence of the internet in our daily lives, a lot of people are in need to be “connected”. Unfortunately, not everyone here in the Philippines has access to good hardware and a decent connection. But all of that is changing now, especially with the frenetic rise of Internet Cafes in our country.
For the local MMORPG industry, roughly 80% of our business comes from the cafes. So it’s important to have a good relationship with our “partners”.
Meanwhile, I’m certain that a lot of individuals or friends (mostly thru gaming) are considering opening up their own shop. Mind you, it’s no joke. A business is always serious.
I thought I’d share with you some practical tips on how to start (and maintain) your own Internet Cafe.
One more click, faps…
HOW TO START YOUR OWN INTERNET CAFE BUSINESS
- Budget – An internet cafe with around 20 seats will push you back P700 to P1M in capital. Of course, the more seats, the more money you will need. If you don’t have the cash, you can find partners to pool in money. I believe that the optimum number of partners for this project will be 4. Expect an ROI (Return of Investment) of 1 to 2 years. Also, I would suggest against forming a business with your close friends. The chances of ruining your friendship is high. Just note that.
- Location – Aside from the moolah, location is one of the KEY FACTORS FOR SUCCESS. Keywords to look for when scouting; near a school, heavy foot traffic, not too many competitors in the area. You should try to look for a place that’s easy to spot (from the customers perspective, ok?). A good monthly rental is P15,000 to P25,000 a month, more than that and you’ll have to work double time for the return.
- Hardware – Try to budget P25,000 to P35,000 per PC. Remember, I always tell potential entrepreneurs to “invest for the future”. Do not scrimp out on memory, processing power or video cards. The logic here is that a) okay, so you save a few bucks but your computers will be trash in less than a year and b) you should have a faster PC than your competitors – it’s your “edge”. And hey, if you can get LCD monitors for all computers, do so! The cost savings on electricity will more than pay for itself.
- Connection – again, a faster and decent connection in your cafe will be a key selling point. Don’t worry too much about marketing, if you have the best computers and the fastest connection in your area, sheer WORD-OF-MOUTH will drive customers through YOUR door. It’s a fact. So try to get the best kbps package that you can afford. Also, if you have the money, you can always get another as back-up in case your primary connection goes down.
- Set-Up – if you’re a techie, you can probably do the wiring and the setup of the routers and switches yourself. But if you can’t, there are professionals who can do it for you. If you can’t find one in your province or city, grab a copy of Buy&Sell or discreetly ask the tech guy at the PC shop where you bought your hardware if he can do a little moonlighting for your new shop.
- Software – if you plan to start small, you don’t have to pay to install MMORPGs. The installers are free. Just tell me if you need it delivered to your new shop and I’ll get the Sales boys on it right away. For office applications, openoffice is free and mimics Micro$oft. For a good, free billing solution, try handycafe
- Other services – Food is always a good extra source of income. Check out my post on Gamer Food 101 and you’ll see what gamers need and want. Printing, Fax and Xerox (photocopying) are other good sources of supplementary revenue.
- Staff – If you’ve formed a partnership, take turns with your partners manning the shop. Just make a schedule. If you’re going to hire someone, hire someone you can trust. You have to set “check and balance” systems (such as an advance billing system) to avoid fraud and theft. It may be tempting to hire an avid gamer to staff your shop but if he has friends and he let’s them play for free… you know what that will bring you. Speaking of free play, tell your all your friends that you can’t allow them to play for free. It IS a business after all. But tell them you can give them a discount. If they really are your friends, they’ll understand.
So there you have it…
Best of luck in your business. Questions? Type ‘em below.
Strength and Honor,
GM T
MY OTHER ARTICLES ON INTERNET CAFE BUSINESS
- Buying old PCS vs new ones (if you’re starting out)
- How Much Capital Do I Need? And Computing Break Even
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hi im a IT student need po namin na aausin na shop for thesis project base kc kaylanagn namin kung need nyo ng tech para ausin ung sho nya plz contact me im asca_gel@yahoo.com add nyo ko or text me 09159810218 ausin nanim network and costom program para sa shop nyo tnx
hi i am planning to put up this kind of business and actually may area na ako para dito ready na lahat pati wiring and unit nalang ang kulang…eto po yong specs na plano kong kukunin..:
athlon X3
ddr3
19″ LCD
d ko pa kabisado baguhan lang kasi ako pag dating sa computer…
any advice po sa mga experts?
ang qoutation po nila per unit is 24,000
Sir, do you have pre-made business plan for this kind of business?
I would really appreciate it if you could provide me one. I am planning to start this business soon and I need to have a business plan to present to my would-be partner. Thank you very much.
ser, may plano po akong maglagay ng comp shop sa bahay namin,,5 units lang po..kelangan ba ng premit? paano ang OS? kelangan ba original? ang games? kelangan den original copy? thanks
Hi! Im planning to open up an internet shop but my budget was too tight..10 units lang muna plan ko ano ba ma i re recommend mo na pwede start up na pc for internet and gaming..lowest price lang po : )
and server ano po ba ang maganda ko bilhin gusto ko sana sa server package na..Thanks
This is a real great and so human advice !!! I am proud to have friends in Phils and i will create some Cafe there. So I thank you so much for the so good advice you share !!!! thanks again
Also, if anybody want to make a joint venture for create a new “french style cafe with snack food” : i am ready to join if it is serious and well prepared
Thanks for all
jean-ludovic
Good am mga sir..
im planning to start a small internet shop..
ok nb tong specs na toh for a computer shop ?
Athlon 64 X2 5200 (2.7 GHz) Dual Core Processor
Elite GF6100PM Motherboard AM3
Transcend 2GB DDR2 PC800 RAM
Seagate 250 GB 7200 RPM SATA (Hard Disk)
ATI Radeon HD4650 1GB
…..
chaka any suggestion para sa name ng shop.. nahihirapan akoh mgicip maganda name eh ??
tnx..
hi, iam planning to put up a cafe, other than the things mentioned above panu naman po ung paper requirements. ung process and fees po para sa permit and all. thanks po
hope to hear from you soon. God Bless
hi how are u sir, sir meron po ba kaung alam na mga pc shop na nagbibigay ng big discounts?
hi im an IT students and im asking, that if you can give sum ideas on how to communicate with a customer on how to establish a chain of coffee /internet shop..
hello gud eve po, planning po na mag set up another internet shop dito baguio, may shop ako 10 units lang ok nman kita kasi mismo sa bhay namin and just started last year. di ko pa kasi naranasan magrent. may nakita na akong location 3,500 ung rent ok nman location pero ok kaya makukuha kaya yung 3500 and other payments like electricity and manpower, OK kaya business pag ganun na rent. sir sa experience nyo po anng advice po makukuha ko to have a succesful journey sa ganitong business. thanks po and God bless.
10 units din po yung set up ko.
gud eve, i forgot. can u please sir if you have any pictures of intenet cafe tables, ung pang gaming and ung maliit lang kasi maliit space na nakuha ko tlagang kailangan maximize ko space. LCD po gagamitin ko. please po kasi search nako wla ako mahanapan na mganda. kahit po yungdesign ng ganit ko. thanks po.
Your page is very helpful
Sir, puede u ba i share yung business plan ng internet shop for guidance lang po. thanks
Sir, im planning to build a internet cafe also, can u please share a business plan for me to have a guide. thank you! your a great help. god bless
there are many factors to consider in having an internet cafe,
1.location
2.competition
dito na papasok yung quality ng line(isp)
trends ng game
yong price/hour
in my case kasi naging problema ko eh yong competition,
pababaan ng rental dito sa pasig at pagandahan ng units(pc).paramihan ng nakainstall na games.i started 10 pc’s first 2 months break even lang pero later on ok na sa 10 pcs 50% ang net profit but later on kailangan na magdagdag ng units dahil dumarami na costumers dito
test ka muna ng ilang units pero mas maganda kung you own the place para bawas expenses sa rental. yong iba rito sa mga garahe lang nila but doing well. if you want for more details from zero to finish. try mo itong nagsetup ng icafe ko. hanggang business name at iba pang permit inaayos nila sila narin nagmemaintain ng pc mga units ko.
Great feedback Henry, thanks
Good day po me balak din po naming magkakapatid na magtayo ng internet cafe business. Me idea po ba kayo kung anong maayos na dsl service na dapat naming gamitin dito sa Imus, Cavite?
Me nabanggit po si Mr. Henry na nag-set up ng icafe nya, puede po bang makuha ang contact number nila, with your permission?
Maraming salamat po and more power!
Mar, dapat survey ka dyan sa mga tabi-tabi ng place ng paglalagyan mo ng icafe mo kung anong mga gamit nilang ISP kuha ka ng feedback kung alin yong maganda connection dyan sa area. thanks GM
Sir, do you have pre-made business plan for this kind of business?
I would really appreciate it if you could provide me one. I am planning to start this business soon and I need to have a business plan to present to my would-be partner. Thank you very much.here are my yahoo.id kingsmankingsman@yahoo.com thanks
ako mga sir I have a internet cafe 7 units 50k lng nagastos ko
emaxx athlon,
i use crt for the mean time
1 server
ok nmn business kumikita ngiipon pa dagdag unit…
I am planning to open a small business for food take out. I would appreciate some feed back. The location is by the hospital, so vegetarian meal would be a good start, healthy for both the attendant and the admitted love ones. Pls, bare in mind that I’m not from PI, so plain English will help me understand. Thanks.
Alice
Resp Sir,
I hv to ask that to start the net cafe business any permission to allow from any branch.
Confusing, your question is. Can you rephrase that?
Nowadays, you must be super creative to have a good business idea that works.-~;
electricity are much more expensive nowadays, can anyone advice on basic tips on how to save electricity. does anyone use power saver for saving as much as 20% from billing? is it effective?
Thanx and more power to all i-cafe owners.
it is easy to get Business ideas, just look for a product or service that has demand and fill it`~~
Assessing the money flow is another important element in the company strategy format, so as to sustain a normal cash flow to meet the essential capital requirements. Probability of monetary crisis and also the methods of crisis management should be pointed out in the structure. The business technique should consist of the marketing plans and technique leading towards the expansion in the organization.
now i have a internet cafe because of u. thank u.
I’m from Jaffna, Sri lanka
i followed your advices about the things i need to build my internet cafe, but what about the operating system? where do i buy since i bought custom made computers my it’s still not installed in the computers…
your advices are promising sir! im planning to put up an icafe myself im targeting to buy 10 very cheap units. im worrying on, how much will it cost me all in all to start the biz. the computers will cost me 70k for 10 units including the router and their cables. the problem is i have less than a 100k. how much will it cost me if I’m to buy tables and chairs and the papers necessary for operating.
Sir, do you have pre-made business plan for cyber cafe business?
I would really appreciate it if you could provide me one. I am planning to start this business soon and I need to have a business plan to present to my would-be partner. Thank you very much.
Sir pde din po ba maka hngi ng kahit draft lang ng business plan for this kind of business? i would like to open one this oct. ty po email ko po: amew17@yahoo.com
hello….i’m buying an existing netcafe …. what are the documents to prepare…tnks…
If buying, ask for the deed of sale and the business permits
ok….thanks…..but if I’ll change the business name do I need to apply for new business permit?
hi sir,..we’re planning to open a computer cafe,…what are the things we need to do before entering to this kind of business?!what are the things that we will give highest priority???
Have you read the article? Read it first. Most of your questions will be answered there