How To Start A Internet Cafe Business – 1. What is an internet cafe? 2. Are internet cafes still a good business? 3. 5 tips to consider when opening an internet cafe 4. Find a good location 5. Write a simple business plan 6. Get the necessary licenses and permits 7. Choose the right equipment for your internet cafe 8. Start advertising 9.
It’s safe to say that cyber cafes mean different things in different regions. In Africa, cyber and internet cafes provide access to government services, in Turkey, cyber cafes mainly rent out PlayStations and Xboxes for gaming, and in the US, cyber cafes are standard LAN centers open to all kinds of video games.
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How To Start A Internet Cafe Business
The reason for the popularity of internet cafes in 2022 is the lack of internet in different areas, slow internet connection in households or expensive computer equipment.
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Another explanation for the existence of internet cafes is the new sense of community in modern gaming. Seriously, people should be more motivated to use public spaces for games that are available on their home computers. And modern internet cafes offer just that – to gather under one roof to share a common interest and the thrill of competition.
From small to large, serving food, broadcasting esports tournaments, renting streaming booths and organizing their own tournaments – gaming venues are ready to meet the needs of even the most demanding audience. Fortunately, it seems that everyone plays games: children, adults and even the elderly. So don’t worry about the players’ ability to pay – they are more than capable of spending money.
So it seems that internet cafe business is quite a popular business with high demand. But let’s delve into the topic.
By good we mean financially viable. In a nutshell – yes, it is. In fact, in addition to being profitable, Internet cafes have a short payback period. Depending on the location and other factors, a gambling establishment can pay for itself in 9–14 months.
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As soon as you come up with the idea of opening an internet cafe, the next question is, “How much does it cost to open one?” Starting an internet cafe can range from 10,000 to more than 100,000, depending on many factors, ranging from its size and equipment features to the business model you choose (for example, implementing your own business concept or buying a franchise). For an Internet cafe with seating for 20 people, you should plan about 50 thousand US dollars.
So there are many aspects that affect the success of an internet cafe. To get an idea, consider the following points:
The list goes on and it directly affects your internet cafe business plan. However, we have compiled the 5 most important factors that you should consider when developing your online cafe plan.
It’s no surprise that location is the first and foremost thing you should consider before planning a local business. Location can either make or break your internet cafe’s success as a business idea. When selecting multiple geographic locations within a city, consider the following factors:
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Following the logic of the points above, your location should be safe, ideally centrally located, and have convenient commuting options. The surrounding area should look pleasant and be frequented by people, namely your target audience.
It is advantageous to place schools and other educational institutions, entertainment centers or gathering places for young people next to an internet cafe. Best of all, there are no or very few competing companies, such as other internet cafes, copy shops or game centers. You should also mention the premises of your internet cafe here. The building should feel open, memorable and easily accessible.
The better prepared you are, the more likely you are to achieve your goals. At least a business plan will improve your results by 30-50%. If you have experience in developing business plans, no further explanation is needed here. If not, then it’s time to roll up your sleeves and get to work.
If you intend to apply for a loan or receive funds from an institution or investor, a business plan is mandatory. It also works well as a guide to help you research the market, think through complex questions, understand the competitive landscape, identify influencing factors, and evaluate costs and benefits. Typically, your business plan covers legal, organizational, financial and marketing aspects.
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We invite you to read our blog post Internet Cafe Business Plan, where we discuss the most important aspects of this problem.
In order for a company to exist and function properly, all legal documents and permits must be taken care of. Start by checking the legal requirements for opening an internet cafe and familiarize yourself with the internet cafe registration procedure.
At the first stage of setting up your business, you need to obtain a business license from the state (here, a license for an Internet cafe), which allows you to operate legally in the market, hire staff, negotiate with partners and customers. , make payments, receive income and pay taxes.
Since you will have to handle a lot of equipment, devices and wires, be sure to plan the premises according to safety regulations and obtain a permit from the fire department. In this context, it is also recommended to insure the business or property of the company.
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If the internet cafe plans to serve food or offer snacks, it must comply with hygiene regulations and be able to be inspected.
Establishments that intend to sell alcohol or cigarettes must obtain additional licenses and permits and may also restrict access to patrons who are under the legal drinking or smoking age.
Most modern internet cafes are designed for gaming. Therefore, in addition to games, online cafes often offer their customers the opportunity to bet on e-sports or online gaming. In the latter case, Internet cafes can be required to obtain a gaming license and publish information about gaming habits on the premises.
After all the legal issues are resolved, it’s time to figure out the hardware issues. Is equipping your site with modern equipment necessary? No. Unless your business plan includes creating an innovative internet cafe.
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In short, not all internet cafes need to have the latest, most powerful and latest computers. Firstly, they are expensive, and secondly, they wear out quickly. As a result, you have to replace equipment every 1-2 years, which delays the payback.
It is better to choose something in between – good, reliable equipment at a reasonable price. Alternatively, you can hire an expert who will select high-quality used equipment and update it according to your needs. You can also monitor your devices using software such as Health Checker.
Remember that the internet cafe’s equipment needs to be updated every 2-3 years, and peripherals (e.g. headphones, mice, tablets, etc.) break down every month.
Before you open an internet cafe, create a basic advertising plan: distributing flyers, placing posters in places where your target audience gathers, etc. Consider word of mouth as a way to increase awareness of your establishment. Prove this with relevant special offers such as “Refer a friend and get a bonus”. Introduce a reward system, small discounts when buying in bulk, e.g. 3 hours in bulk costs less than 1 hour when bought three times separately.
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Marketing is a combination of economics and psychology, so when making a proposal, you should check its financial viability. Here are a few tricks that may come in handy:
Be aware of the impact of price bundling on consumer evaluations of offers. In general, it is much easier to sell additional services in conjunction with the main purchase, because customers suffer less when the prices are combined and only have to pay once. For example, offer to buy X hours of game time and give them a free snack.
When it comes to profits, take a shared approach. Numerous studies show that customers consider two smaller wins more than one big win. So instead of offering one 25% discount on a day ticket and a premium seat (€40 -> €30), split it into two 25% discounts: one on a day ticket (€30 -> €22.5) and one on a premium seat (10 EUR -> EUR 7.5).
In fact, marketing and pricing techniques can significantly help you increase your average check and ultimately increase your internet cafe’s revenue. Be creative, experiment and try different suggestions. This is the only way to get to know your customers better and find out what works for them and for you as a business owner.
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As you can see, an Internet cafe, like any other business, has its own characteristics and requirements. As a business owner, you need to have a big picture and look at all aspects of your business as a whole. Pay attention to important and strategic issues, especially those that require significant investment and are not easy to change, such as location and expensive equipment. On
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