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Monday, April 14, 2008

How to set up an Internet Cafe

This is one of the most common business nowadays. Entrepreneurs see the potential of this business because of various reasons. First, not everyone can buy their own desktop. Second, gamers playing LAN games are everywhere. Third, students may have their own desktops and internet connection at home but they still go to internet shops to finish some school papers.

What are the things to consider before deciding to put up an internet shop/cafe?

Location
- proximity to your target market is very important. If you plan to target the students to be your market, your location must at least meters away from a school, library or places where students most likely hang out.
Competition
- Maybe you already find a location near a secondary school. If you saw more than 5 competitors, maybe you should consider looking in some other place. However, if you think the market is not yet saturated with internet cafe/shops and there are remaining potential market to be catered, then you may go for it.
Equipment
- Here's a list of equipment that you will need:

    • Desktop - There are some internet cafe/shops started with 5-7 desktops then later on expanded to more PCs. If you are on a limited budget, maybe you can do the same.
      • NOTE: According to some research, hi-tech looking cafes are most preferred by the customers. You can get this look with flat screen monitors instead of the old style monitors. Instead of speakers, install headsets to each station. Add web cams too!
    • Printer - Manufacturers have already released 3-in-1 printers where you can scan, photocopy and print documents in one machine. This is expensive, but it will save you a lot of money. It's really worth it.
    • Air Conditioner - Cafes are usually air conditioned. This makes your customers comfortable. However, you should not leave it running all day. It should be controlled always.
    • Gadgets for data transferring - this maybe bluetooth, card readers, Infrared etc.
    • Routers, hubs and cables - these are used for connecting the PCs to each other and to the server. Make sure you install them correctly or it won't work. Seek help from IT
Internet connection - Choose a connection provider that has a good service and support. Since you are operating your business with it, you cannot afford to have a failing connection. If you would experience constant disconnection from the internet, you will lose your customers.
Furniture and fixtures - Aside from tables and chairs for your desktops and customers, you will also need a counter for your server. This counter must be arranged carefully. Make sure that you maximize the use of your space. Equipment on the server station (counter) must allow you to move freely and efficiently to lessen the waiting time for the customers. This will make them feel satisfied with your services.
Softwares - Usual programs you can find on internet cafe/shop are web browsers, office programs, pdf reader, .zip/.rar extractor, LAN and online games, picture viewers. You should also have an internet cafe software on your server and clients for easier management of payments and time.
Signs and Symbols - It's important to make your customers aware of the services you offer. You can do so by putting signs that can be easily seen.
Rules and policies - This is where you set up limitations to your customers. You want to make your cafe/shop as friendly as possible. You should set some rules like "no adult sites", "no shouting" etc. This should show your customers that they are safe in your cafe. However, you should not overdo it. If you're restraining your customers too much, you will lose them.
Protection - make sure your PCs are protected and most importantly, your server. Make sure customers will not be able to change any of the settings of the desktops. See to it that antivirus and other protection are installed so that you can minimize possible damages to your PCs. Since flash drives are widely used, you may want to scan it first before allowing it to be used to your PCs. (Some pointers here!)
Pricing - Customers are highly price sensitive. You should set a price that can draw customers to your cafe without jeopardizing your income. You can look at other cafes' prices as your reference.
Ambiance - you should establish the ambiance of your cafe. You can make it look more comfortable with the use of wallpapers, some not-so-loud music and proper lighting.

There you have it. You may want to start reading some more about these factors. Below, you can find a normal pricing of internet cafe in Manila. (in Peso Php)

Computer Renting (gaming and surfing the internet) 15.00 - 25.00
Printing 3.00 - 5.00 (black)
10.00 - 30.00 (colored)
Scan 10.00 - 15.00
CD Burning (data) 20.00 - 40.00
CD Burning (Audio) 50.00
Data Transfer 20.00 - 40.00