setting up an icafe

Web surfing and on-line gaming are no longer just for people who own a computer or those who simply love to stay home. Thanks to internet cafes, people who either don't have a PC or spend most of their time outside their homes can now surf the net or play on-line games whenever they need to, or feel like to. Internet cafes are establishments that offer computer use and internet access to the public, for a fee of course. Operating internet cafes can be very lucrative for entrepreneurs.

1. How much capital do you need? You'll need between $8,000 to $80,000, depending on how and where you're setting up your internet cafe. Setting up your own system will entail less cost than buying a franchise, but getting a franchise means that you're also getting a proven system. Putting your internet cafe in malls and other commercial places with good-enough people traffic will boost your chances of getting more customers, but it will also require you to shell out a large sum in rental fees. If you find setting up your internet cafe in a mall too expensive, then find an area that is frequented by a lot of people who'd want to sit down for a few hours surfing the net or playing a game on-line.

2. What equipment would you need? To run an internet cafe, you'll need the following equipment: 1) PC stations; 2) a telephone line; 3) internet connection; and 4) air-conditioning. Depending on your set-up, you may also need a server, which is a computer that's more powerful than your PC's. A PC station will include a computer table, a comfortable chair, and the PC itself, including licensed software. You don't need top-of-the-line computers to run your internet cafe, but you need to invest in good-sized monitors (e.g., 17") and a fast and reliable internet connection. Most, if not all, internet cafe operators are connected to at least a digital subscriber line (DSL), which allows higher internet access speeds than dial-up connections.

3. What utilities would you need? Electricity would account for bulk of your utility bills, which is understandable given that you need to run computers and airconditioning while you operate. Your budget should also factor in bills for water consumption, internet connection, and computer repair.

4. How about your staff? If you have a big outlet, you'll need a manager, a cashier, a receptionist, and technicians to support your customers. A small operation can get by with you as the manager and a couple of assistants to help you with the shop.

Running your Internet Cafe

You need to conserve your cash during the start-up phase. Try to get good deals on everything, particularly with regard to your space rental and your computer systems. Do not buy expensive computers, but be sure to buy ones that come from suppliers who have a good reputation for reliability. Make sure that your PC's are also backed up by strong warranties.

Ask your computer suppliers if they can give you payment terms that will allow you to start your operations with a smaller initial outlay. Be cautious though with 'interest-free' offers, since some suppliers who make such offers actually jack up the price of their computers to include the 'free' interest. The best way to know which is the best deal is to really compare one with the other directly.

Don't start big if you have limited funding, but always factor in the possibility that you'll need to add several more computer stations every few months as you get more customers. Since an internet cafe provides service, your customers must feel that they are getting the service that they want, so treat your customers very well at all times.

Internet cafe customers are charged per hour of internet use. Your fees must be comparable to those of other internet cafe operators in your area. If you made the effort and spent more to give your outlet a great and classy ambiance, then you can charge more than your competitors. Just be sure that you're not pricing yourself out of the range of your target customers. Many internet cafe operators recoup their total investment within 15 to 18 months.