3. Location
–Here you have different options to choose from as long as your market is available. Some go for the residential areas, which I believe would best suit businessmen-wannabes with limited funds. You could even start your Internet shop at the expense of your own backyard. Just see to it that there is enough space for your shop, not to mention your own home.
If your area is situated near a school then that would be a big plus. Just observe the law regarding how many meters away, your Internet café should be, from any schools or colleges. Some are not following it but the law is the law.
If your home won’t be able to accommodate your Internet café then you could always rent a place. Commercial zones within residential areas are also advisable.
If your capital is limitless then you could go for the big commercial establishments, like malls. People of all walks of life go to those kinds of establishments one time or another, so you could be confidently sure that the place would be busy with people. The expenses would be high but you could always charge higher rates for your services.
As an outsider looking in on this I can see two distinct paths, depending on the level of effort you want to put into making money. Before I came to live in the Philippines I thought only of renting a storefront to host an Internet Cafe. Now that I’m living here and starting to “learn the ropes” I realize how many people’s desire for an Internet business could be satisfied right in their own home. It’s easy to have a room added on the front or back of most houses and surprisingly cheap. If I were to go into the Cafe’ business I’d definitely be looking into this strongly rather than paying rent or a commercial location month after month, year after year.
There are some big and successful Internet Cafe’ Franchise operations in the Philippines such as NetOpia. Typically the costs will be in the $20,000 to $40,000 USD range for the establishment of a location, a monthly franchise fee of 5 to 8% of revenue and renewals at the end of the first three years. But, for those who have used these franchises it’s comparable to ordering a hamburger at a McDonalds … the quality is there, the brand recognition, quality control and so on. Worth looking into if you want a “real” free-standing business with management training and support.
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Great insight! this really helps alot! thanks!
@David Sison: Thanks for dropping by and for leaving a comment, David. If you are in the business already or are planning to set up a business here in the Philippines, please keep us informed. A lot of folks wnat to know more about this subject.
my family is really interested in Coffee Franchise like Starbucks. we are still saving money for the franchise cost..:’
Have you researched where you’ll establish your franchise? There are many StarBucks and similar shops still doing well in the Philippines, but they don’t seem to be suitable for any place except a few big city CBD’s. Can’t tell you how many times I have been driving in the provionces and would have paid a LOT for a cup of coffee, but outside a few big cites you can hardly find a lace that will sell you a cup of coffee. Best of luck and do your research well.
Hi Philly, I have already established my Internet Cafe. It’s been running since Feb 2009. Though i had setbacks in my first few months i’m reaping some of its benefits already. There’s still a lot of work to be done and there’s still a lot for me to learn. Thank you. I remember reading this article before starting my business.
Hello, David, thanks for dropping by and for your comment. I’m really pleased to hear of an actual success story with an Internet cafe. In some ways the industry may look a bit dead, but obviously it is not dead, at least for those who work at it in the right way. Great.
How about a short article from you giving our readers a little clue of how you planned and established your business, what went well, what pitfalls they should avoid, etc.? Doesn’t have to be anyhting fancy, but I haven’t written anyhting new on this subject in a long while and people are always hungry to know. (you of course can give your shop a plug, a link (you have a website?), pictures, etc.)
(Just send me a note through the “Contacts” page up at the top menu if you’re interested. Or, if you don’t care to write, how about a phone interview or telling me where you are and perhaps I could visit for a chat?)