Internet Cafe Business for 100k?
| Posted by Sean John in Business Articles,Business News on 3rd September 2009 |
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So you’re a young entrepreneur and you’re looking at your finances — you see that there’s a little bit of capital lying idle. Not really for a mainstream business push, but for something small – say around Php100k.
Starting up a neighborhood Internet cafe business can put your 100k to good use. The Pinoy public’s need for internet cafes hardly needs explaining – getting on the Internet is as normal today as brushing your teeth. So if you look around your village and there is potential for an Internet shop, let’s help you think this out. Here are some things to consider:
Location of the Internet Cafe
Your 100k will not be able to get you a premier location, but scout your village/subdivision, or even a nearby one. You need to look for locations that will potentially have a lot of people walking by. You also need to scout for competition (existing Internet cafes) – you are planning a business after all. If your village doesn’t have a nearby internet cafe, then your venture may already be a solution for some of your neighbors’ connectivity needs. Having 1 or 2 shops in competition will not harm your profit as much as one would think it would – the modern Pinoy’s need for connectivity, as we said, is almost as encompassing as his need to bathe.
Internet Cafe Budget
As we said, we are planning to put up an Internet computer rental shop for 100k. This will entail some caveats. This amount would ideally be able to give you 5 to 7 seats, maximum. The flexibility of your shop when it comes to software – programs and applications – will also be impacted here, as the computer hardware that you will buy will command what programs you will be able to run.
If you are planning to run the computer shop in your own backyard, the budget for rent will be negated, you only need budget for furniture and small renovations. But there are some downsides to that, so if you want a good location, some of the budget might need to go to rent and overhead. Look for a place with a monthly rent below 10k. Anything above that will probably stretch your operations budget for the crucial first 3 months from opening of your Internet cafe shop.
Also, you will need to hire a technical assistant to watch over the computers, networking, connectivity of your Internet cafe business – we assume that this venture will not be the sole focus of your time. However, if you are planning to run the shop by yourself (and with family members), this eliminates the need for hiring an Internet cafe assistant.
Internet Cafe Hardware
Ok, now the techie part. The meat of your Internet cafe shop would be the desktop computer systems. For a small shop/venture like this, you can consider getting semi-used desktop systems. For 7 to 8k Php per system, you can get Pentium4 or AMD AthlonXP-powered towers, good for surfing and browsing the Internet, word processing and some low level-gaming and MMORPGs. If your location is near a school, this might be an ideal proposition. Ramping up your computer hardware budget to around 10k per unit, you can even get brand new units that could bring better performance and some mid-level gaming. But then again, having only 5 to 7 seats, your best bet would be to provide good browsing, word processing and some low-level gaming.
Also, we recommend that you use semi-used LCD monitors instead of the clunky CRT monitors. You will reap benefits here from your total electricity cost. Semi-used 15-inch LCD displays cost from 3 to 3.5kPhp.
Where do you get these kind of deals on used computer hardware? The computer shops at Gilmore St. is always the default place to look for cheap PC hardware. You might also try to look at the HMR Warehouse over at Pioneer St. If you know your way around the web, Tipidpc website has great deals for those willing to haggle and do transactions online.
Internet Connection for your Internet Cafe
Having a fast and stable Internet connection will always give your customers better experience and will most likely enhance the reputation of your shop – they will always talk about how fast your connection is. So look into cable and DSL internet providers in your area. Check the packages and see where you can get the most from the 2 to 4 Mbps range.
Regarding the LAN network, you may need to hire someone to set it up for you if you don’t have enough geek points to know how to do it by yourself. You will also need an 8-port network router to facilitate this. A 2nd hand network router will cost around 2kPhp. Factor this into your budget, as well as the LAN cables and labor cost.
Internet Cafe Software
This is one factor that actually works in favor of your low system count — it means you will pay less for Internet Cafe software licensing. The operating system for the desktop computers, naturally, needs to be licensed. But there are a few creative ways of going around the other costs. OpenOffice is freeware suite of programs (word processing, spreadsheets, presentations) that give you most of what MS Office offers – it’s a free productivity suite (and it can save in .doc, .xls and .ppt formats)! Most MMORPGs have free game software installers, and again, this works in your favor. There are also a lot of free antivirus software that you can use for you 5-seat shop as default malware protection.
Add-on Services
Most people who will come to your shop for word processing and document management will need printing services at one point or another. You can put to use that printer that you rarely utilize at home and turn in some additional profit.
Having a DVD/CD burner also gives you the flexibility to burn files and documents when the need arises, and you can actually turn a hefty profit from this service. You can also choose to sell snacks and drinks, and even sell E-Load in your shop. These are all low capital add on services that can add to your bottom line.
Conclusion
One of the last things you will want to think about will be your charge rate – make sure you make your shop viable for your target market. Also think about a good software billing system for your Internet Cafe – there are a lot of free solutions available for managing time consumption among your desktop systems.
Your P100k (give or take) will most likely have an ROI period of around 1 to 2 years. Having add-on services will give you a better chance of padding up your bottom line. If you are a techie person, this probably is a very fun exercise for your 100k. Make sure you enjoy it.
This is an overview on setting up an Internet Cafe business for a capital of Php100,000.00. The more capital an entrepreneur can raise the better as the early months could possibly be lean. We will continue to expand on this idea with follow-up articles.
Please send your comments and suggestions especially if you are an Internet Cafe owner with tips to share. Questions are most welcome especially to those who are very serious about putting up their own Internet Cafe business.
Internet cafe photo courtesy of Jeff Avery
About Sean John: Sean John is a writer by training and passion. He now writes to fulfill his dreams. This is how he might describe himself: wordsmith, tech junkie, gamer for life, coke (zero) drinker, guitar man, loves stuffed bears, lifehouse fan, rocker/jazzer.
45 Responses to “Internet Cafe Business for 100k?”
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Hi John thanks for the numbers in leiu i can view the picture more clearly. Im not really sure but in my area there are 5-6 competitors the demand is quite high. each of the shops are 15 to 20 meters apart and they charge PhP10/hour for the rent.
Area is nearby a tricycle terminal
The streets are crowded every Friday.
Average rent for place here would be PhP4,000
Im planning to get (thin Client) which is an alternative for a CPU if internet browsing is only considered here.
have you got the statistics for
Gamming vs Internet Shop?
and Internet Shop + Gaming?
Hi Franz.
Looks like you got a good picture of your area. 5-6 competitors all in a bunch like that is a bit dense, but you can gauge if the demand is really high enough for you to put up another shop.
I think the low budget may serve as a boon for you here, the secret for you may be DIFFERENTIATION. If you choose to offer only internet browsing, word processing and other work related services, you can be sure to have generally good bandwith available for your patrons (MMORPGs suck the bandwith like vampires).
Also, you may be hitting a different market, if you decide for a NO GAMING policy — no noisy kids around means an atmosphere more conducive to work, so you may be attracting more of the serious types, more of an adult patronage. And that may be good for you, since the people who want to work will know which shop to go to.
Sadly, ROI period remains shorter for those who offer gaming — they attract the kids and the youth. But it might be a good jump off point for you.
Hope that helps.
I got to agree with John that 5-6 Internet shops in one area is quite congested and saturated already. P10/hr rates will mean a slow ROI.
I haven’t seen/read real thorough tests of THIN CLIENT setups. Even if it’s just web browsing and not gaming, web applications nowadays require a lot of CPU power – from Flash videos to AJAX driven sites – lots of interactions between client and server on any given popular page like FB, Friendster and Youtube. I’m not sure thin clients will cut it.
John’s comment on differentiating your shop makes sense, but it will not take long for others to take notice and copy your style. Top of the list is you might want to look for another location.
Dear John and Gerry,
Thanks for your thoughts and guidance.
thank you for the guidelines but please give me the exact location of the warehouse…where is the exact address of gilmore st and pioneer st..thank you
Hi Sean, your idea is great especially for us wanting to venture into business. Since right now, Internet is very much accessible to the common people thru the advent of 3G services, DSL and cable services. So it is really wise to put up additional services as you pointed out. May I add that adding copying/printing, a CISS printer or a multi-functional printer, will be a big boost especially now on the upcoming elections.
thanks for the very good information.
i am not a computer techie, thus the ff questions … these may sound redundant since it may be already in you article though -
I will set up an internet cafe somewhere in Lucena City with 10-12 PCs which I will cater to mostly students (high school and college) -
1. How much roughly is one 1 PC with LCD monitor? Kindly tell me also of the specifications of the unit.
2. What softwares I need? How much are these softwares?
3. What additional hardwares I need? How much are these?
4. Do I need a server? How is much is this?
5. Do I needs UPS? How much is this?
6. Do I need airconditioning?
7. Ways to control access for downloading?
8. Any advise about Virus Protection.
9. How much approximately should I pay for the Technical Assistant monthly?
10. How much should I pay the Sales/Internet Assistant?
11. Which will you recommend as an internet provider, PLDT or DIGITEL?
12. What government license of permits do I need?
Many many thanks.
Hello,
I just want to ask if how much did you spend for your legalities(all kinds of permits)? Could you please list them down(all kind of permit)?
What are the compatible sidelines with an Internet cafe? PC repair? PC accessories sales?
please write me with info
Can i run the business eventhough i don’t have deep technical knowlege about computers?
Hi John,
Im a businessman who lives in the UK. I have just come from the philippines on some other business venchers and i can tell you that the country is great.
The reason of writting to you is that, i came across an internet cafe owner who was selling his business and looking at his books he is doing fine. The reason for selling it is he plans to migrate to canada. I spent some time in the cafe and the client flow is big. He takes an average of 3k to 4k a day, the reason being he is near a school, collage and a university.
His asking price is 450k all set up with 20 comps.
Well i have a few question to ask you if you dont mind.
1. Is the asking price too much?
2. do you think their is a catch to it?
3. As a foriegner can i run such a business?
4. Can you advice me on the legal side of it.
Thank you
Tony
@Mark Siotong
Yep. I’m glad we agree on that one.
@Ahmed
I really do not want to sound rude, I can help you with some of these questions you have, but it would really boost your knowledge and experience if you try to get info about this on your own, through definite research.
Most of your questions are actually very easy to answer. As for the things you need, I did mention that your target goal and clientele will dictate that. Get a good tech person to advise you on these matters.
@Aquahealth
There are a lot of “sidelines” you can incorporate into your computer shop business. Again this is dictated by the needs of your clients, so you better do a bit of research. Sometimes, just offering snacks and drinks, or printing services can add a lot to your business.
@Shelly
You may be able to FUND this business without tech knowledge, but you will still need a techie person for maintenance and repairs and setup. If you have a friend who can advise you on this, it will be wiser to seek help than to dive in without good counsel.
@Tony
Let me try to help you out as much as I can.
1. Provided that you have someone with tech knowledge check out the specs of the computers and the place, you can actually make a decision if the asking price is ok.
2. Again, the best defense against that is to have a trusted tech guy check out the shop.
as for questions 3-4: you may need legal advise here, better to check with a lawyer to be sure.
kaylangan ko sana ng mga unit, kaya ask ko kung nagbibigay kayo ng installment, at kung mayrun pano na man ang pagbabayad, sana ang mag-reply kayo, salamat po…
Adderall….
Snorting adderall. Buy adderall. Adderall side effects. Buy adderall no prescription….
PERMITS:
brgy. clearance/permit
BIR- COR-registration/monthly/quarterly/annually payment
Mayor’s permit
Sanitary permit given by health center
Fire clearance – BFP
DTI
you need to comply by the municipal regulations too…
No students allowed on school days mon-fri..during class hours
what is included in 100k?
i am interested sa internet cafe business…..please send additional info like what is included in 100k…etc..
hi john, I’m a ofw here in saudi, im interested with that internet cafe bizniz nad i am planning to put up there at my hometown tagum city. I reli dont know how to start pls give me some advice..
hi john, gusto ko rin po mag tayo ng internet cafe here in davao city pero ala po akong alam masyado sa computer ok lang kaya na magtayo ako ng ganitong business? cguro mga 6 to 8 unit po. please pakisagot sa tanung ko salamat in advance and GOD BLESS ALWAYS…IM waiting for your answer pls. pls. pls…
Hi Dean
hayan mo advicesan kita dapat hanap kalang na tao magpagkakatiwalaan mo sa negosyo mo …. maganda sana kung tutok ka sa negosyo kasi kahit marunong ka sa computer gaya ko wala ka naman dun dimo sila mamominitor ang pinaka mahalag mag hanap ka na nang tao mo pwd magpagkakatiwalaan pwd ka bumayad na tecknician …. para magbantay bumili nang pc … at lahat nang gamit pero kung nasa pinas ka pwd kitang ako mag advice sau sa operation
ung mga location , customer demand and expense analyzation common na un na dapat mo i considerd …
pero eto some tips
lcd monitor dapat para tipid
excus fun para mailabas ang init ng shop
buksan lang ang computer kung kelan gagamitin
bili ka nang iwata ung nilalagyan na water na electic fun
dagadag ka na extra service
like printing ,scanning , photo print and other…
basta ung muna una mo hanapin ung tao mapagkakatiwalaan ung mga negosyo kaya mo iprovide ung kapag meron kana i advice kita sa expect tsaka sa bibili nang pc gilmore yan dyan
ba
hello po im here in qatar and im willing to make my own business and eto nga po computer shop ilang units ang 100k and ako din po ba ang maghahanap ng place para maitayo ang computershop ko??
po please reply ill be home this april gusto ko kasi madaliin yung pagpapatayo kasi babalik po ako please i need reply po
I’m going home this year and planning to put up an internet business. sa 100K po ilang units ng computer po yan? ano ang OS niya? can you send me more tips about it?
i am sorry i didn’t read your info before i post , thanks its a great information.
I am really interested in putting up an internet cafe business, please email me asap the full details regarding this matter. thanks and God bless…
hi,i just want to know about this matter gusto kopo,mag patayo ng internet shop,d2 po ako sa dubai but i have friends n pwede n mag ayos dyan kahit po 150k bigay ko ng dawn payment plzz email,,at emelito_devera@yahoo.com
hi…I just want to ask about business permit for comp shop business. When we inquire how much we should pay, its 1 thou per comp…meaning if we have 7 computers it costs 7 thousand…Is that the real policy?
hi sean, tnx for the article. i would like to ask if 20 comps will be ok. magkano kaya ang pwd kong ipuhunan para dito? at gaano kabilis ang ROI kpag ganyan karami ang comps?
hi sir, my plan po kami mag-open ng internet cafe.. mga minimum po is 10 computers.. kaya lang po medyo tight sa budget.. meron po ba kayo alam na pwedeng installment?
hi po…juz wanna ask some helpp po..gstoo ko sana mgtay ng intrnet cafe pro dnt kn how to get started nid ur advice pls..san ba k mg start..
i just want to asked magkano po ang estimated earning everyday ng internet cafe na may walong unit?
@ geena vie burgos
assess niyo po muna ung capital niyo kung magkanu, then ung site po ng plan business, and study the area para po malaman kung mag boom ang business.
Hi Sir, Ok lang po ba gumamit nang 2nd hand pero mga branded naman na computer. I have a friend na importer ng mga surplus products from australia.
gusto ko magstayo ng internet cafe in iloilo but then id don`t how to start would you please help me
Nice topic! I like this Blog
Thanks for the great idea. I think it is much better if you can give the full detail of requirements for fixed manpower manning, estimates re fixed cost for building and grounds, electricity cost per unit, and the possible percentages of return of investmented capital and the at least monthly rough estimates of income. More power to you!
sir, ano po b tama lang na specs para sa online gaming?? dpat po b dual core pero having that kind of processor is already over-kill meaning you can use processors lower than that and still experience the same reliability and gameplay, similar peformance using an expensive processor?? ok n po b 100k puhunan? san po b may used lcd n mura? thank you sir..
Hello,
I am a foreigner and have been to Manila for holidays once.Its a nice place and I am interested in small business like bar, club or fast food.I require somebody honest from Manila to help me set up and we can start operating.Please interested person should contact me on my email address.
100K start-up capital is good enough for starters…I agree with you on finding location although its best if you put your shop outside your subdivision/village ‘coz sometimes your market is limited inside. I have a friend who were able to recoup his capital in 3 mos time, opening internet shop outside subdivision near Jeepney & Tricycle terminal. Foot traffic is really very important.
@Tony & Sergius- you can do this business even your a foreigner just email me at stesharene@gmail.com…
Sean, two thumbs up for you for great articles you have…check out also my blog i will be writing more about credit management and exportation for SME’s there..im just a starter though…cheers!!
If you want technical service in set-up internet shop. These include; timer, pc set-up format, install games and everything. Just text 09163287586. I have 3 branches of computer shop, I’m also the technician….
You can also reach me in this number 0918339179. Internet cafe service.
We can provide Desktop Pc with competitive price. See
Sample 1pc. Cost 14,500.
Processor: Sempron AMD 2.7hrz
Hardisk: 250gig
Memory: 1gig
Video : built-in
With casse, PS, keyboard,mouse,head-set
Monitor: 16″ LCD monitor
Hello! I think it is much better if you can give full details of the manpower requirements manning, pollutants, and estimates the cost of rebuilding and reform of the reason, the cost of electricity per unit, and percentages of the possible return of investment capital and rough estimates at least a month of income. More power to you!
pls. send me a price quotation of this cafe.
i want to invest this and im looking for cheapest invesment.
Thankyou!
Godbless!
I would like to ask more details about the set up of an internet cafe.
And to Tony, I think we can be partners in the business..what do you think? email me then markpolytrauma@yahoo.com