On Buying an Internet Cafe Business
Internet Cafes can be a great business find.
Some questions to consider:
- Is this a good business opportunity?
- Is the location good?
- How much is the monthly rental?
- What would be the return on investment?
- Why is the business being sold?
Internet cafe businesses can be challenging. One of the basics I've learned is that one must have at least 10 computers to get a pretty decent income. A source of revenue can be both Internet rentals and gaming.
My initial numbers analysis:
Let's say computer rental rates are P25 (US$0.50) per hour. If we can fill up all the computers at least 4 hours every day, then that would be P1,800 daily. If the shop is open 25 days a month, that's P45,000 per month. Let's estimate the monthly utilities to be around P10,000, personell salary at P4,000 and the rental of the place around P20,000. Then I would bet that this business would net around P11,000 (US$220) monthly. At that monthly rate, you could get a return on your investment in around 3-4 years.
Are my assumptions valid? I can tell from experience that rentals of a place in front of a prominent school are around 20-25,000 pesos. I know of someone who works for a computer shop and gets salary of P4,000 monthly. I know of a 14 unit computer shop who pays monthly utilities of around P8,000. Yeah, I think my estimates are close.
With these figures, you can get some income from the business, but it's not going to be really big. An interview with the current owner, occular inspections and analysis of actual financial numbers would be the next logical step.
This are just my initial impressions. So, would you invest in this?
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May 11th, 2007 - 07:51
How does internet cafe business help the economy of the Philippines?
May 11th, 2007 - 08:50
What is the suggested starting capital for internet Cafe business?
May 11th, 2007 - 10:41
A $2000 – $20,000 (100,000 – 1M pesos)starting capital for an internet Cafe Business would be ok. Smart Philippines has a nice program for those who would like to franchise internet Cafe businesses. It’s called the Smart Click Franchise.
September 28th, 2007 - 22:41
I would like to get information on your smart click franchise.I am a business owner here in california and am looking to break into the internet cafe business in Philippines and posibly other parts of asia. Thank you My other contact information is another web address michalidesr [at] yahoo.com my fax # is 1-951-332-8625 my office address is 3507 W.Stetson Ave.suite 117 Hemet,CA 92545
September 29th, 2007 - 07:20
For those who are asking about Smart Click, here’s their website: http://www.mypad.net/IC+/options.htm
September 29th, 2007 - 07:22
Oh, here’s another one:
http://www.smart.com.ph/Corporate/Brands/SmartClick/Franchise.htm
March 25th, 2008 - 17:19
I saw an ad above about an internet cafe worth 400k for 18 computer units. I believe this is too much, was this ammortized correctly? A 450k can bring you 30+ computers, 3 printers, 1 scanner, office equipments, computer tables and chairs, employee appliances, need I say more? And we thought this was robbery :)
March 26th, 2008 - 16:29
Yeah this was posted July 2006. Computers are much cheaper nowadays.
In fact, why not just go all-laptop Internet cafe eh?
August 9th, 2008 - 15:30
I would like to start a Cyber Cafe here in South Africa, i need advice on new fast, user friendly and latest equipments and design plans/ideas for my Cyber cafe.
Please assist.
September 8th, 2008 - 22:58
Im also interested to have an internet cafe business in our place..i need some (help) advice what system or equipments will i use to have smooth running internet cafe business..hoping for your kind rply..
many thanks..
June 21st, 2009 - 21:50
@mark, you can pretty much consult with the computer retailers on what affordable gaming specs to buy. I went to PCX 3 months ago and gave them a 20K budget for a gaming CPU without a monitor. My system was pretty decent. Just ask the sales consultants – they’re pretty straightforward. I recommend flatscreens btw – a little expensive at first but cheaper in the long run coz they consume less power than CRTs.