Question:
I want to start a new business and I’m looking at internet cafe. Is this still a good business opportunity to start? How many months or years is the usual ROI? What do I need to set up this business? How much do I need to set up a few computers (10 -16)? Regarding softwares, I know you have to use orig microsoft OS but how about games and other software (ms office), do I have to use original? [joecas]
Answer:
I could share to you some bits and pieces of my strategy in our provincial setting. I have 2 LAN shops of 14 PCs each. One was an older group of PCs I retired from gaming and marketed for as an internet LAN shop only. The other group is on a separate location and targets gamers only. I think the key here is on lessening unnecessary expenses, having a consistent brand strategy and having a very creative promotions program that changes every time.
On lessening expenses, it is very hard to know at the start what is “unnecessary” for your area but you could observe your possible compet1t1on for this. In my case, separating the internet network and the gaming network really reduces software maintenance problems. For an internet client to run all of what he wants properly, port connections remain very open to usual attacks from the internet. So if the gaming network is mixed, the gaming experience would greatly suffer.
I placed airconditioning in the internet LAN shop and did not place anything of the gaming LAN shop. Why? because I noticed that gamers in our area prefers better computer specifications, new computer models every year for the new games released each year (performance doubles every 10 months) and exciting promotions! The only way I could fund this projects is by limiting expenses and air conditioning is a very huge one.
On our brand strategy, our customers always know that we have and can maintain the status of having the best PCs in the market of PC lan shops each and every year. We buy 6 PCs every year and using all of this strategies ROI is 0 days! Because I ask for a 3 months installment from the supplier (you could demand this when you are a big client already), and the PCs alone could earn the money for that in less than 3 months of our peak season!
I eat up the competition’s market share (we have 7 not more than 500 meters from each other) during off seasons when they have very little cash flow and they haven’t recouped investment yet. I offer 1+1, give the highest paying player for the day freebies (items i get from suppliers like ragnarok poring dolls), give very low off-peak rates, etc. this i could provide because i already recouped on the previous 3 months.
But of course this strategy can’t be used on all areas. Just study the market first and give it what it wants by saving on what it doesn’t appreciate. But most importantly, try to manage it hands on. So you would be happy with a 30k/12 PC net income of the off season especially when you don’t spend your time on it (passive income).
Note : This text was posted by rj juarez at this forum
Recommended PC specificaions for internet and gaming
Processor = AMD Sempron 2500+ s754
Motherboard = ECS761GX-M754 PCI-Express
Memory = 512MB DDR400
VideoCard = GEForce6200 128MB DDR PCI-Express
Harddisk = 80GB Western Digital 7200
Monitor = 15″ Surplus (black)
Black Case/KB/Optical Mouse/Headset/Aux Fan
Floppy Drive = Surplus
AVR = 500W
Price between P17,000 - P18,000
Check for the latest computer price here:
Inquire DSL Connection here:
photo from digitalbattle.com
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August 20th, 2008 at 3:48 pm
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August 9th, 2008 at 9:44 pm
thanks mr yosoko for the info!!
August 9th, 2008 at 3:41 pm
i’m planning to put up a small internet cafe with gaming in our house. i’m planning to start with 6 units. as far as my knowledge is concerned, i listed some of the major things i needed.
dlink router > 4 port - 2,000
dlink switch > 16 port - 2,100
pldt mydsl explorer plan (2 mbps) - 3,000
computer specs:
core 2 duo e7200 - 5,400
intel dg31pr motherboard - 2,500
kingston 1gb ddr2 pc667 - 950
inno3d 8500gt 512mb / 128bit pci-e - 2,300
atx casing - 1,000
keyboard + optical mouse - 480
80 gb 7200 rpm sata - 1900
avr 500w - 400
17″ flat crt monitor (2nd hand) - 2,000
i’ll be using my own core 2 duo unit as a server.
i don’t plan to install an aircondition instead will install 2 industrial fans, 1 each on both ends w/ 2 large exhaust fans, 1 each on both ends also. will also install an air purifier worth 2,000 that can accommodate 60 sq.m.
of course, cost of the renovation, mayor’s permit, barangay clearance, DTI, BIR and other government fees and taxes.
your comments and suggestions are most welcome!
thanks in advance!
August 8th, 2008 at 8:56 pm
gud day! gusto ko sanang mag inquire kung ano ang magang gamitin ngayon pc specs sa comp shop at kung ano ano ang mga kaylangan gawin. magstastart pa lang kami with my friends and nag hahanap ka kaimi kung ano ang maaaring gamitin at mag kaylangan gawin? thanks in advance!!!
August 5th, 2008 at 3:27 pm
ok yung mga tao d2 ah! marami akong nabasa na forums… kita nila, para upgrade ang sinasabi,,, nagsasara pa, lam nyo pag marunong k talga sa computer industry ikaw ang magpapagana sa computer hindi ikaw ang papaikutin ng computers… pang net cafe yung computer maski mababa ang specs, like CPU and mobo basta mataas yung vid card and memory ok yun! and be creative para sa biz mo icp k ng PALABOK mo na kakaiba… maniniwala ka ba na gastos ko ngayun 150k lang for 10 computers??? plus 5 for net surfing lang at yun ang 1 cpu to 5 monitors… wireless pa ako, icp k ng kakaiba para umasenso ka…
July 28th, 2008 at 12:55 pm
@gosyante, marami sa computer shops — gilmore or viramall sa greenhills. marami din mura sa sulit.com.ph at tipidpc.com
July 27th, 2008 at 4:51 pm
Anybody here knows the price of 15″ or 17″ LCD monitor and where to buy it?
please help…
Thnx!
April 3rd, 2008 at 11:37 am
THE “I-CAFÉ BIZ PLUS (ICBP)” FRANCHISE PACKAGE
Rationale:
A turn-key solution to your business acumen bundled in one. It aims to create not just an ordinary Internet Café shop but as a business center catering to all walks of life in the local community.
There is a very big difference in setting up your own and our ICBP franchise package as follows:
On your own Internet café:
ICafe Biz Plus Franchise
1. Procure the following implements of an Internet café from different suppliers which is very tiring and time consuming.
a. Hardware components such as CPU, monitor, router, cables, switch hub, headsets and mouse
b. Software components such as billing system, timer, gaming software and loading system.
c. Microsoft Operating System License
d. Customized computer tables and chairs
e. Lighted Signage
2. Hire your own technician in case of hardware and software problems
3. No marketing materials support
4. No free training on technical and operations of the Internet Café Business/Billing System
5. No Value-Added Services for additional revenue streams or sourcing.
EOL Icafe Biz Plus Franchise Package
1. Bundled in one franchise package
2. Two (2) years warranty on hardware components
3. Provide with marketing materials such as posters, flyers etc.
4. One (1) day free training on the operation of the ICafe Biz plus franchise package for the owner and the person managing the ICafe business
5. Technical support within the two (2) years contract period
6. Value-Added Services wherein additional revenues will be derived such as:
a. Western Union (transaction fees on every remittance)
b. Bills Payment (fixed fee for utility payments)
c. Good Access Card (commission for every card sold)
d. E-learning/E-review (commission for every card sold)
e. International Calling via Internet (VOIP) –(commission on every card sold)
f. E-loading (commission for every electronic pins sold)-200 products
g. UBIX – discounts on riso/Xerox machines purchased/sold
h. Job Search – commission on every card sold
i. Bizguard Security System – commission for every units sold
j. Lineage II – commission for every game card sold
Actual Investment:
Option 1: 6PC setup (start up)
PC set-up cost 240, 000.00
Business System 12, 000.00
Integration Fee
VAT 30, 240.00
Value Added Services
a. VOIP 13, 500.00
b. GA Card 7, 000.00
c. E-review 4, 000.00
d. E-loading 5, 000.00
Initial Cash Out 311, 740.00
Optional:
Insurance 6, 720.00
Security Set-up 12, 999.00
Total ICO 331, 459.00
Option 2: 10 PC setup (Enterprise)
PC setup cost 420, 000.00
Business System 12, 000.00
Integration Fee
VAT 51, 840.00
Value Added Services
a. VOIP 13, 500.00
b. GA Card 7, 000.00
c. E-review 4, 000.00
d. E-loading 5, 000.00
Initial cash Out 515, 940.00
Optional:
Insurance 11, 200.00
Security Set-up 12, 999.00
Total ICO 540, 139.00
Option 3: 15 PC setup ( Enterprise)
PC set-up cost 630, 000.00
Business System 12, 000.00
Integration Fee
12% VAT 77, 040.00
Value-added Services
a. VOIP 13, 500.00
b. GA Card 8, 400.00
c. E-review 5, 200.00
d. E-loading 5, 000.00
Initial Cash Out - P751, 140.00
Optional:
a. Insurance 16, 200.00
b. Security Set-up 12, 999.00
Total ICO P 780, 939.00
Option 4: 20 PC set-up (corporate)
PC set-up cost 880, 000.00
Business System 12, 000.00
Integration Fee
VAT 107, 040.00
Value-Added Services
a. VOIP 13, 500.00
b. GA Card 10, 500.00
c. E-review 6, 000.00
d. E-loading 5, 000.00
e. Job Search Posting 8, 888.00
Initial Cash Out P 1, 042, 928.00
Optional:
Insurance 22, 400.00
Security Set-up 12, 999.00
Total P 1, 078, 327.00
COMPLETE SPECIFICATIONS OF THE FRANCHISE PACKAGE
1) COMPUTER SPECIFICATIONS:
AMD ATHLON X2 4000
E-MAXX Socket 690 AM2 Motherboard
2Gigabyte Memory DDR2 667
160Gigabyte Seagate Or Fujitsu SATA Hard disk
256MB 7300GT PCI-E Video Card
17” AOC or View Sonic LCD Monitor
ATX Casing W/Power Supply
Optical Mouse
Keyboard
500W AVR
A4tech Headset
1 UNIT DVD-CDWRITER ( FOR SERVER ONLY )
1 UNIT 1.44 FLOPPY DRIVE ( FOR SERVER ONLY)
2) INCLUDED ON THE PACKAGE:
1 UNIT D-LINK OR LINKSYS WIRED ROUTER
1 UNIT 24-PORT DLINK SWITCH HUB
UTP CABLE CAT 5.E
RJ45 CONNECTOR
EOL ICAFE BIZPLUS TABLE AND CHAIRS
1 LIGHTED INDOOR SIGNAGE
3) OPERATING SYSTEM AND BILLING SYSTEM:
CHOICES OF WINDOWS XP HOME OR WINDOWS VISTA HOME
LICENSED OPERATING SYSTEM
CAFÉ-MANILA CYBER CAFÉ MANAGEMENT BILLING SYSTEM
ASSORTED ONLINE GAMES
LOADING SYSTEM
4) INSTALLATION OF COMPUTER:
EVERYTHING ONLINE TECHNICAL PERSONNEL WILL BE INSTALLING THE COMPUTER PACKAGE
INCLUDING NETWORK CABLING, NETWORK CONFIGURATION, ONSITE TRAINING ON HOW TO OPERATE INTERNET CAFÉ.
NO INSTALLATION FEE FOR THE WHOLE PACKAGE ONLY.
FREIGHT CHARGES AND TRANSPORTATION ALLOWANCE , BOARD AND LODGING WILL BE HANDLED BY THE FRANCHISEE
YOU MUST PROVIDE THE ELECTRICAL WIRING AND ELECTRICAL OUTLET FOR ALL COMPUTERS.
PRICE MATRIX
(for email) Prices are subject to increase without prior notice.
RETURN ON INVESTMENT (ROI)
There are no hard and fast rules on how long will the franchisee recover the full investment made. This will depend on the foot traffic (population wise) in the locality, it will also depend on the service that the franchisee will offer to its customers. However, to give a better view of the cost and expense to be incurred before arriving at the bottom line (net profit or loss) will depend likewise on several factors such as:
ONE-TIME EXPENSES:
1. Cost of renovation / design of the Internet Café
2. Cost of Mayor’s permit, barangay clearance, DTI, certificate and other government fees and taxes.
MONTHLY EXPENSES
1. Rent
2. Power, light and water
3. Telephone Bill
4. Internet Connection
5. Salary
All of these will be taken into consideration before deriving into the results of its year-round operation
Example: A conservative ROI for a 6PC set-up
Given:
Icafe opens from 9:00AM to 9:00PM (12 hours) average usage of per PC: 8 hrs x 6 computers = 48 hrs.
Pegging per hour charge: P 20/hr x 48 hrs = 960.00/day
Gross monthly sales = P 960.00 x 30 days = P 28, 800.00
Less Expenses: Rent = (5, 000.00)
Internet Connection = (4, 000.00)
Telephone Bill = (1, 500.00)
Salary = (4, 000.00)
Electricity/water = (3, 000.00)
Total expenses = (P 17, 500.00)
Net income from PC usage/month =P 11, 300.00 x 12 mos. = P 135, 600.00
Add: Other revenues from:
a. Value Added Services
b. Coffee shop or food and drinks services
c. Scanning /printing/Xerox
d. other revenues streams
These other revenue streams will help you attain your maximum ROI, at least from usage alone, you had recovered part of your investment which is not so bad since you still have the equipments in possession. The Value added services will play a very big portion in attaining your ROI at the soonest time possible.
FRANCHISING PERIOD
The franchise is for two (2) year under a Local Franchise Agreement. It commences from the signing date unless otherwise rescinded prior to the full term.
HIDDEN CHARGES
There are no hidden charges. No royalty fees to be collected.
BANDWITH FEE
Internet connectivity is payable directly to your preferred internet provider.
To summarize all the information given. The Icafe Biz Plus franchise package is a one-stop shop internet café business center. All you have to provide is the site/location and payment. EOL takes care of everything from start-up to full operation of the business.
For further clarification and queries, please visit our office at Unit 204 Centerpoint bldg. Julia Vargas Ave. cor Garnet rd. Ortigas Center, Pasig City or call 633-0677 / 632-0709 local 108 or 9144007-09.
Thank you!
Jayson L. Canete
Senior Franchise Specialist
Everything Online, Inc.
09174636364 / 09295521383
jasoncanete2008@aol.com
jason@everythingonline.ph
jcanete_eol@yahoo.com
March 8th, 2008 at 2:40 pm
…..I AM THANKFUL THAT I FOUND THIS SITE..I KNOW YOU CAN HELP ME IN MY BUSINESS PROPOSAL TITLED “INTERNET CAFE/SHOP AND ONLINE GAMING BUSINESS” PLS HELP ME TO HAVE A FINISH AND COMPLETE PROPOSAL…