This is Part 3 of our 5 part series on Running An Internet Cafe
–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 McDonald’s … 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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