Internet Café Business

It was observed that in the last 3 years Internet cafés have sprouted like mushrooms all over the country. Experts attribute this to the low-cost franchises and to the fact that as low as 10 percent of the population has actually access to the Internet and fewer still own a computer. Lately, demand for internet access got another boost. Online gaming companies like Level Up!, netGames, IPVG and AMDG have attracted gamers to Internet cafes. All these and the fact that it doesn't take an IT expert to set up the business, makes the Internet café one of the most viable small-scale options for investors.

But what does it take to set-up an Internet café? We’ll try to gather the critical points of several articles on this subject and highlight some of the components that we think are important for a successful Internet café.

Hardware

• If you can afford it, purchase top-of-the-line computers. You can still buy second-hand units that cost about PhP 15,000.00 on average, but having new and powerful computers is one way to ensure returning clients. The cost of brand new computers may range from about PhP 20,000.00 to PhP 35,000.00 each.
• Do not be afraid or embarrass asking computer stores for suggestions on specifications for your use. Please take note that computers for typing, surfing and chatting require different specs than computers for gaming. If you want to purchase computers for gaming, make sure that you have a good video card and a fast processor installed.
• If you are not sure whether a particular computer store is over-pricing their products or not, try to compare specs and cost with those from another store. There are some computer stores that are willing to bring down their cost if they knew what their competitors are offering.
• If you have no background in setting-up and wiring computers, do not hesitate in calling an IT expert. The danger in doing the setting-up by yourself is that you might end up spending more because if you made a mistake, everything will have to be redone.

Software

• Nothing beats having licensed software. The savings you will incur by using pirated software will only be offset by the cost of having authorities regularly raiding your shop. Microsoft windows cost about PhP 6,000.00 right now, while Microsoft Office can range between PhP 10,000.00 to PhP13,000.00. For added protection, ant-virus software are available for as low as PhP 2,500.00 per program. Ideally, you should multiply the total software cost by the number of computers you have on your shop to get an estimate of how much you need to invest in software, but we do not think authorities are too picky and will probably allow you to keep single software for everything in your shop. Meaning, one Microsoft windows program for more that one computer.
• If you want to saved on your software cost, you can avail of free downloadable software such as Linux, Opera and Open Office. They may not be popular and will take awhile getting used to, but they still get the job done at no cost. The only downside could probably be the unwillingness of your clients to use those programs.

Location

• One of the most important components of any small-scale business is location. It is suggested that areas with high-foot-traffic should be the first priority. Those that are near schools, business centers, hotels, grocery stores, jeep or FX terminals, bus stations and residential areas are just some of the locations that will probably attract many clients.
• To save on rentals, Internet workstations can be set-up in an existing business such as coffee shops and restaurants. By setting up an Internet service together with another service that complements it is one way to ensure regular clients. What you are doing is just riding on the possibility that the existing clients of the complementary service will also demand for an Internet service.

Amenities

• Facing a tough time with your competitor just around the corner, make your clients more comfortable than before and the environment more cozy. You can start with the chairs. Make the chairs more cushy. Faced with a choice between mono blocs and cushy chairs, I think you know what your clients will choose.
• This will probably increase your cost, but by putting additional service such as desktop publishing, e-loading, long-distance calls, typesetting, laser printing, photocopying, fax and even computer tutorials, you just made your shop more attractive.
• Having air-conditioned Internet cafés is a must. Not only will you be making your clients less stressed and relax, but you also ensured that your computers will last longer and prevent them from overheating.

Administration

• If you are not the one personally managing your Internet cafés everyday operation, then you should diligently monitor the usage, billing and collection of payment. Keeping a record book the tracks hourly transaction or purchasing a software program for about PhP4,000.00 to PhP6,000.00 (off the rack) is strongly suggested to minimize if not prevent errors and cheating.