Every business starts with research and planning. The main purpose for writing a business plan is to get aware of those things that you might not have known or thought of yet. Depending on your case, you might be interested in devising a gaming lounge business plan or an eSports arena business plan. As these are very close to the concept of Internet cafe we offer to use this as a template, expanding it with additional points where necessary. Besides, in this article you will find many useful information to assist you on the way.
Executive summary
Starting an internet cafe business can be a challenging task, especially if you lack entrepreneuring experience. However, devising a business plan will greatly facilitate you along the way. First of all, it will help you to gather many important information and facts, come up with a variety of internet cafe business ideas, decide on the format, consider pros and cons of this business, and even think about its future development. When getting down to work, the first questions coming to your mind might be whether it is a profitable business, how much does it cost to open an Internet cafe or what equipment do you need to start an internet cafe? This article probably won’t furnish you with a full answer, rather it will give you a general description of internet cafe business, while adding more questions for you to consider.
Internet cafe business overview
An Internet cafe (also cybercafe) is by no means new, yet a still relevant idea. The service of providing the public with a PC along with access to the Internet for a charge has been in expanding request since a long time ago. The first online cafe was launched in 1988 in Seoul and had only two 16-bit-computers connected to the online system of networks. Today internet cafes can be found all around the globe, while their purpose has evolved from basic webmail and instant messaging to multiplayer gaming. Since modern games often require modern computers and expensive gadgets more and more gamers prefer shared-access models over personal ownership.
Depending on location, target audience, and social agenda of the proprietors, cybercafés come in a wide range of formats and can be quite a profitable business. Internet cafes also appear as gaming lounges, cybersports arenas, or PC bangs – equipped with VR headsets, gaming consoles like Xbox and Playstation, and broadcasting eSports tournaments on a big screen.
The majority of the entrepreneurs, engaged in this field are men of 22 – 50 years old, who understand computers at the level between the advanced user and system admin. Most of them also enjoy playing online games, keep abreast of new developments in the realm of computers and gaming equipment, be up to date with the latest developments in the cyber industry, follow the news about gaming teams and tournaments. As a rule, these people don’t have a wage job. Their work is focused on Internet cafes, gaming lounge business, bets, and sometimes other related businesses. Usually, these people start with a small budget and gradually increase their income.Those who managed to properly organize their business and make a profit, begin to open a chain of Internet cafes, some sell franchises.
On rare occasions, there are businessmen, possessing entrepreneurial experience from other projects, with a million-turnover, who open Internet cafe out of curiosity and desire to try something new. In this case, they invest a lot of money at once. Often, these business owners are interested in holding tournaments in specially equipped cyber arenas.
There are also those who don’t know anything about this kind of business, rather they’ve been told that opening an Internet cafe business is a way to make money easily and fast.
No matter which group you belong to if you are considering launching an Internet (cyber) cafe you will need to devise a business plan. Hereby we introduce an example of an internet cafe business plan, which can be modified according to your geographies and goals.
Pros & Cons of starting an Internet Cafe
Before establishing a business it is always useful to make up a list of advantages and disadvantages. We have gathered some of them, which are relevant for an Internet cafe business, yet keep in mind, that it might look different in each case, depending on the particular market and the entrepreneurial experience of yours.
- Business works 24/7. In practice this means that as an entrepreneur you have to be constantly in touch to solve problems that may arise (e.g., violation of the rules by clients, various unforeseeable situations etc.) At least in the beginning you need to be fully involved in order to understand the specifics of the business, the target audience, identify weak spots etc. It is also necessary to be aware of the latest innovations in the field of gaming and eSports.
- It is difficult to scale the business. Internet cafe business has its limits. Once a company is launched, pays back and starts to bring net profit, there are just a couple of options to scale: either to sell franchises or open a network of Internet cafes. You can establish a business and get a stable income, yet it will always remain at the same level.
- Regular update/replacement of equipment. Each product has its life cycle. Since computers in Internet cafes are used constantly, their wear and tear happens way faster. Besides regular maintenance, cleaning, and minor repairs of the computers, it is necessary to completely replace the equipment every 2-4 years. First of all, because of its wear and secondly, due to outdated parameters. Every year new games are released, increasing the requirements to the computer components – processor, video card, memory etc. Fast and powerful computers are one of the reasons why gamers visit cyber cafes. Thus, if you do not update the equipment, you risk to lose part of the target audience.
- Low budget needed for start. Compared to other businesses, cyber cafes are generally simple to set up. Main costs for launching an Internet cafe comprise computers, monitors and consoles. An average business with 15-20 computers, will require between $30,000 and $50,000. This is a rather small budget for business, which in time will bring you regular income.
- Payback after 12 months (average). Cyber cafe business, you can quickly setup and configure all the processes, provided you thought everything through and made preliminary calculations. The payback of such a business can take from 9 to 14 months. Then you get a net income and can plan to expand. Of course, everything depends on your particular case, and if you add a bar and kitchen in parallel, then it may take more time.
- Little competition. 15 years ago, when Internet cafes were very popular, there was a big competition. There were many cybercafes where one could go, and there were a few or no empty seats. Today, the focus has shifted, as everyone has a computer at home. Cyber cafes are made for the atmosphere, community, and a possibility to play on professional PCs. The second wave of popularity of cybercafes has just begun, yet still few competitors, which makes it possible to quickly attract the target audience to your place. At the same time, more tournaments are being held every year.
- Combination with other types of business. As a rule, the main service of your business will be providing access to the Internet, and/or new games on PCs and consoles. In addition, you can expand your business with related services. If you decided to start a cybercafe business you might face the situations when some of your clients ask for photocopies, printing documents, photos, etc. By simply buying a printer-scanner you can get additional income, while it will also be useful in the daily work of the cybercafe. Also, when players spend more than 3-4 hours in the Internet cafe, they need at least one break to eat and drink. Thus, building a coffee area will bring extra income and allow your clients to spend more time in your cybercafe.
What products and services cybercafe business provides?
When devising a business plan for your Internet cafe it is helpful to distinguish between the primary and additional services.
Primary service – within this section think of the core service that your cyber cafe company provides. Is it good connection to the Internet, gaming facilities, possibility to use expensive software for a small price, or an equipped coworking space? Pick out one thing that will serve as a pillar for your business, think of it as your unique selling proposition (USP).
While choosing a core service mention in your business plan the impact that it will cause. Speculate on how your customers’ life will be affected by the service(s) that you provide? Maybe you make people happy, satisfied, productive, entertained. You help the local community to stay connected with the rest of the world and fulfil their goals by the help of Internet connection / modern computers / gaming facilities etc.
It might be that your core service will be focused on eSports. This field is getting more and more popularity, encouraging e-Sports schools being opened around the world. With this regard, many cybercafes nowadays also provide separate rooms for training eSports teams.
Additional products/services. Now time to brainstorm further. Make up a list of accompanying services that will be offered in your Internet (cyber) cafe and one-by-one write about the impact they are supposed to make for your customers. You can also use the items that were mentioned above, yet were not defined as a primary service. Additionally, you can include the following options to your service list:
- Cafe serving beverages / snacks / healthy meals
- Copy center services
- Private working space (rooms)
- Kicker, darts, etc.
Once your list of primary and additional services is ready keep it at hand. The next step would be to define their prices. Easily said, but this task will require thoughtful consideration. Besides checking the prices of your competitors and willingness of customers to pay, you will also need to count your expenses and comply with financial goals you set. You should also observe the habits of your customers, and possibly introduce a dynamic pricing scheme (when prices are flexible and depend on the day time and demand). You should also consider introducing system of discounts, special offers for loyal customers etc.
Comparison to competitors
Check your competitors, define their market share, strong and weak spots. This will then help you to find your position or niche on the market, as well as set more realistic goals on sales and profit.
Why should customers choose you over your competitor? This question is very important for defining your unique selling proposition (USP), discovering the pillars of your internet cafe. Check the list below, pick the points that are relevant for your case and expand if necessary.
- Upscale equipment (laptops, computers, printers, scanners, headsets, consoles (Xbox, Playstation), gaming mice, professional keyboards, additional gadgets- VR glasses, Gaming wheels, controllers etc.)
- Comfortable gaming chairs
- Fast and reliable Internet & Wi-Fi hotspots
- Besides state-of-the-art hardware the computers will also come with professional software (e.g., Adobe Cloud Programs) and gaming platforms (e.g., Steam). Upon customer request, the Internet cafe business can also acquire a license for a particular software.
- Possibility for open space and private working rooms/cabins
- Convenient (central, unique, extraordinary) location
- Fair prices, convenient booking system and payment options, bonuses, client discounts etc.
Internet cafe business plan introduction
Business name. Give your internet cafe a name. Be creative, make sure it fits into the whole picture of your business concept. Double-check that it’s different from those of your competitors and easy to remember for your customers. Here you can also consider buying a franchise. In this case, you will build your institution based on the existing internet cafe business model which proved its success. Basically, you will get a ready-to-use guide on how to open an Internet cafe, which will save you time, resources and efforts. However, keep in mind that along with convenience and support that you get as franchisee, you are limited to a certain level in strategic and managerial decisions. Thus, for experienced and ambitious entrepreneurs, nurturing novel and fresh business ideas in mind, franchising won’t be a suitable option.
Legal business structure. Every business is a legal unit with a specific structure. Think of yours. Will it be a sole proprietorship or a partnership, Limited Liability Company (LLC) or a corporation? Are there any investors involved? While choosing a structure for your business consider such impacting factors as flexibility, complexity, control, permits, licenses, taxes and other regulations.
Brief description of what your business does. Here you should be able to explain in a nutshell your business concept.
Mission. Besides making profit your internet cafe first of all should serve a public good. Think of those social solutions that you bring. Your cybercafé can, for example, fulfill the following missions:
- It provides an easy, reliable, safe and affordable access to the Internet.
- It serves a meeting place for sharing online experiences.
- It accommodates a creative and comfortable environment for people to learn, work, play and relax.
What problem does your Internet cafe solve for your customers? Possible answers here might be the following:
- bad PCs at home that do not allow people to play at maximum settings or in the latest games;
- no privacy at home (parents/ partner or children interfere, etc.)
Think of any other relevant points, depending on your case. Maybe it is also useful to conduct a focus group to identify other customer needs.
What results does your internet café create?
- Customers get things done by means of having a quick, reliable safe and affordable access to the Internet
- Customers enjoy being in a creative environment, using affordable upscale equipment for their studies, work, gaming or entertainment
- Customers are happy to have another place for making friends and connections, while sharing their online experiences.
Think of any other relevant points, depending on your case.
How does your internet cafe create those results? By means of providing necessary equipment (computers, software and access to the Internet) in comfortable premises at a convenient location, offering other services (e.g., food & drinks, open-space and private rooms) to meet customer needs and ensure best-in-class user experience.
Who does your company serve? Again, think of your Personas. Which customer cluster reflects the main target audience? Are these travelers, students, professionals, gamers etc.? What is their average age? What are their core needs? It is important to remember that the choice of business model and related services will change the target audience, and vice versa. As a rule, the majority of players in cyber cafes are pupils and students. At the same time the related services a cybercafe provides will directly influence the target audience. In case the cyber cafe also sells alcohol, hookahs, etc., the clients will then be different. You can also expand the target audience by means of equipping your Internet cafe with gaming consoles, e.g. Xbox or Playstation.
Why do you do what you do? Reasons for you to run an internet cafe might be numerous and diverse. Yet try to figure out what it means to you. Maybe you’re an exper t in the field of cybercafes or you possess suitable resources for this business. Maybe there is a sharp demand for such a place, but none or little supply. Maybe you yourself belong to the target audience and know the needs of the customers as no one else. Or it has always been your dream to own an internet café. Sincere answer to this question will help you to understand your motives and plan more realistically not just in a short term, but in a long-term perspective.
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Internet cafe setup requirements
Think here on your step-by-step plan or proprietary system. List a complex of providers, suppliers, processes, tools, or systems that you own, granting your internet cafe a benefit or competitive advantage. As a basic think of the following:
- Location (rent or buy or build)
- Design and renovation of the premises
- Supply of furniture (tables, chairs, sofas, bean bag chairs) and equipment (coffee machine, vending machines, etc.)
- Provider of the Internet
- Supplier of computers, and other devices
- Software Licenses
- Supply of additional services (drinks, catering)
- Team – number of employees, their roles, responsibilities, shifts
- Internet cafe management software
Here it is relevant to remind that provided you go with the franchise option, the proprietary system as well as the main cyber cafe requirements will be provided by franchisor for you to use. Of course, the terms and conditions might be different depending on the agreement, but the fundamental restrictive unit for the beginning you will get in most of cases.
What are your objectives? (define your goals) Last but not least – schedule your goals. Elaborate some plans regarding sales, revenue and profit you intend to make. Devise a roadmap of future development of your business. Think of your goals in terms of short-and long-time perspectives. Draft them for 1-year, 2-years, 5-years time span or longer. While setting your goals on the paper use the rule of S.M.A.R.T. In other words, keep your goals Specific, Measurable, Achievable, Relevant and Time-bound.
Market analysis
At this stage, make sure to gather as much information about the market, as possible. Invest enough time to research the general state of matters and trends. A useful technique to apply at this stage would be PESTLE analysis. The name stands for the abbreviation of the components of the analysis and is used to scan the following macro-environmental factors – political, economic, social, technological, legal and environmental. When analysing the above mentioned factors, try to identify the elements within each of them, as well as seek to understand what is their business impact. For example, does the current political situation create a solid basis for you to start the internet cafe business? Is the economic condition favourable for introducing your service to the market? Is the society open/ willing to pay for your service etc.? The following table provides the respective questions to assist you in conducting PESTLE analysis.
Additionally, you can make a SWOT analysis to identify strengths, weaknesses, opportunities and threats for your business.
Market trends & needs
To gather information about your target market turn to statistical data, relevant market reports, professional periodicals, marketing research agencies. While doing your research check the related industries and fields – Online Gaming, Video Streaming, Cyber Security, eSports etc. Also look at associated issues in the respective fields: Internet penetration, number of available commercial wi-fi locations and hotspots, number of Internet users, reasons for using Internet etc.
Some introductory data and insights can be found at statista.com. For example, the eSports market has been consistently developing in recent years. It is expected to grow further in the next 3-5 years. More and more people nowadays come to watch how their favourite games are being played by world recognized gamers. As indicated by the Newzoo there are determined to be 646 million viewers of eSports worldwide by 2023, which is over 30% expansion from the 395 million in 2018.
The fans are spread over the world, yet the Asia Pacific area is by all accounts a specific hotspot for eSports. In the USA, meanwhile, some 9.2 % of web users in 2019 viewed eSports, with the figure expected to rise to 15.5 % by 2023.
As the statistics show every year more and more tournaments are held, bigger audience is attracted. Thus, while planning a cybercafe business one should keep in mind that the majority of gamers also make bets in the field of gaming and eSports.
Internet cafe marketing plan and strategy
Every marketing action – be it a message, flyer, social post or event – is aimed at people. Thus, when devising an internet cafe marketing plan it is crucial to gather as much information about your audience as possible.
Demographics & Psychographics. Define the demographics of your target audience – what is their age, gender, income, place of living etc. Then collect their psychographic characteristics – such as interests, desires, fears etc. In the process of collecting these data you might come up to the fact that there are several groups / clusters of you TA. Use Personas method to differentiate them. This will help you achieve the goal of your marketing campaigns, improve your lead generation and conversion strategy, as well as offer more suitable products/ services to your clients.
Remember, that a slight detail can make a huge difference. What if a significant part of your customers are vegans, environmental activists living a sustainable life? How can you make their experience in your cafe more comfortable – provide vegan snacks, supplying the place with renewable energy sources, equipping it with eco-friendly furniture etc. The variations are endless here. Your task is to identify the factors that will signify the interest and bonds of the customers to your Internet cafe.
Where can you find your clients? Where can you find each of them – online or off-line? Think on which online services and social media they use. Do they actively participate in social media groups, do they read expert magazines or do they attend festivals? The clearer picture you will get on this stage the easier it will be for you on the next steps – when drawing marketing strategy (visibility, lead generation and conversion).
Visibility (awareness) strategy. How people will learn about your Internet cafe – via ads in Google or social media, through paid commercials on TV or in YouTube, by means of influencers, flyers or word-of-mouth? Options and combinations can be numerous. The key factors here are budget and efficacy. You can spend thousands and get zero results, or you can spend almost nothing but hit the target. Look first at the answers from the previous step, identify the channels through which you can reach your audience, compare the prices of the channels. And then build your strategy. Remember, that the advantage(benefit) of digital marketing is that you can test different strategies with relatively low budget, see what works best and then rise the costs. Consider turning to a digital marketing agency if that corresponds to your needs.
Additionally, brainstorm for info drivers and events that can be part of your cybercafe marketing strategy. One of the possible promotion steps for your business can be hosting eSports tournaments.
This step requires much thought and effort. The core question here is “How will you establish contact with potential customers?” It is most likely that you will apply digital tools and online marketing. In this case your lead generation will comprise the following elements: content, SEO, promotion, conversion and analytics. Let’s briefly look into each of these.
Content strategy comes first. This will characterize the story behind your services, the key messages you send to your target audience and, also, the tone of voice in which they will be articulated. The content will be sent through all possible channels you decide for: website, landing pages, emails, social media, blog post as well as Call to Action.
Website strategy. If your internet cafe can’t be discovered on the web, then it doesn’t exist. In other words to make your cybercafe visible you need to have a website. Besides raising the rating of your Internet cafe, a website is also an excellent informative tool, that helps to attract more clients from organic search. Generally, a website will build trust to your institution from clients and partners. Thus, if one day you decide to grow by selling cyber cafe franchises, a website will be a big plus.
Promotion strategy as a rule starts nowadays with Social Networks – Facebook, Twitter, Instagram, YouTube, TikTok, Snapchat. Check the most relevant for your type of business. For example, TikTok and Snapchat are the main channels for attracting teenagers, while adults are bound to be found elsewhere. Some question here to help you with the decision are the following:
- Where can you gather most of your TA (target audience)?
- Which of those are most efficient with regard to available budget?
- Which Social Media fits the best to your content strategy and chosen tone of voice?
In case you identify several platforms which are relevant for your internet cafe business it’s then worth trying to try all of them and see which ones work best in your field, region, market. Within your promotion activity you also manage social posts and email communication.
Conversion strategy. Once you’ve got your leads it’s time to convert them into prospects or customers. The method of communication you decide – be it a phone call, email or personal message in social media. Within this stage you should look at the lead nurturing lifecycle and devise a complex of measures to acquire, keep and grow your customers – e.g. outreach programs, loyalty programs, organisation of events, system of upselling, cross-selling etc.
Analytics strategy. The essential part of every strategy are the metrics and indicators that help to measure and analyse the results of the steps having been taken. Principal performance indicators are CTR, CPL, (Website) Rate of Conversion, Leads to qualified leads, Leads per channel etc. All the necessary info regarding these and other indicators can be found in the Internet, thus we shall not focus on them within this article.
What you need to keep in mind however, that analytics is an important task, which you better not skip. Once you identify the cost of a lead from each channel, try to reduce it to a minimum without loss in quality. Check the reports and regularly manage your advertising budget. After six months, compare the figures, analyse the amount of money spent on acquired leads to the quality of these leads.
Internet Cafe Business Plan Template
Written by Dave Lavinsky
Internet Cafe Business Plan
Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their internet cafe companies.
If you’re unfamiliar with creating an internet cafe business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.
In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an internet cafe business plan step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your internet cafe business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start an internet cafe business or grow your existing internet cafe company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your internet cafe business to improve your chances of success. Your internet cafe business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Internet Cafe Businesses
With regards to funding, the main sources of funding for an internet cafe business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for internet cafe companies.
How to Write a Business Plan for an Internet Cafe Business
If you want to start an internet cafe business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your internet cafe business plan.
Executive Summary
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your executive summary is to quickly engage the reader. Explain to them the kind of internet cafe business you are running and the status. For example, are you a startup, do you have an internet cafe business that you would like to grow, or are you operating a chain of internet cafe businesses?
Next, provide an overview of each of the subsequent sections of your plan.
- Give a brief overview of the internet cafe industry.
- Discuss the type of internet cafe business you are operating.
- Detail your direct competitors. Give an overview of your target customers.
- Provide a snapshot of your marketing strategy. Identify the key members of your team.
- Offer an overview of your financial plan.
Company Overview
In your company overview, you will detail the type of internet cafe business you are operating.
For example, you might specialize in one of the following types of internet cafe businesses:
- Internet kiosks : In this type of internet cafe business, small kiosks are built and positioned to be temporary internet cafes, as customers who visit the kiosks search the internet for directions, locations and other information.
- Cyber cafe: A cyber cafe is similar to an internet cafe, although the usage of the internet may be mixed with gaming and internet searches.
- Gaming cafe: Popular with teens, a gaming cafe offers computers and gaming accessories connected to very high bandwidth, which allows for specialized gaming.
- Commercial cafe: These internet cafes exist to serve commercial establishments with a need for high bandwidth and dedicated spaces.
In addition to explaining the type of internet cafe business you will operate, the company overview needs to provide background on the business.
Include answers to questions such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of customers served, the number of commercial contracts on file, or reaching X number of return gamers served, etc.
- Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
Industry Analysis
In your industry or market analysis, you need to provide an overview of the internet cafe industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the internet cafe industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.
The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your internet cafe business plan:
- How big is the internet cafe industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential target market for your internet cafe business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
Customer Analysis
The customer analysis section of your internet cafe business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: individuals, gamer groups, and corporations.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of internet cafe business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.
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Competitive Analysis
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other internet cafe businesses.
Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes private homes with high bandwidth internet services, video game lounges, and gaming casinos. You need to mention direct competition, as well.
For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as
- What types of customers do they serve?
- What type of internet cafe business are they?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide options for multiple rounds of gaming play?
- Will you offer internet services that your competition doesn’t?
- Will you provide snacks and other amenities?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Marketing Plan
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a internet cafe business plan, your marketing strategy should include the following:
Product : In the product section, you should reiterate the type of internet cafe company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide an internet cafe that serves light snacks and meals, along with a gaming lounge area?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.
Place : Place refers to the site of your internet cafe company. Document where your company is situated and mention how the site will impact your success. For example, is your internet cafe business located in a busy retail district, a neighborhood strip mall, or a standalone building near a college? Discuss how your site might be the ideal location for your customers.
Promotions : The final part of your internet cafe marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:
- Advertise on radio stations and/or gaming magazines
- Reach out to websites
- Distribute flyers to card collector and game stores
- Engage in email marketing
- Advertise on social media platforms
- Improve the SEO (search engine optimization) on your website for targeted keywords
Operations Plan
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your internet cafe business, including setting up game play for groups, planning and providing internet sessions, billing customers, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth gaming session, or when you hope to reach $X in revenue. It could also be when you expect to expand your internet cafe business to a new city.
Management Team
To demonstrate your internet cafe business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in managing internet cafe businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an internet cafe business or successfully running a card and game store.
Financial Plan
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.
Income Statement
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you see 30 internet customers per day, and/or offer group gaming sessions? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets
Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your internet cafe business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement
Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a internet cafe business:
- Cost of equipment and accessories
- Payroll or salaries paid to staff
- Business insurance
- Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, internet bandwidth, office supplies
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your multi-year contract for internet services or your location lease.
Writing a business plan for your internet cafe business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the internet cafe industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful internet cafe business.
Internet Cafe Business Plan FAQs
What is the easiest way to complete my internet cafe business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily write your internet cafe business plan.
How Do You Start an Internet Cafe Business?
Starting an Internet Cafe business is easy with these 14 steps:
- Choose the Name for Your Internet Cafe Business
- Create Your Internet Cafe Business Plan
- Choose the Legal Structure for Your Internet Cafe Business
- Secure Startup Funding for Your Internet Cafe Business (If Needed)
- Secure a Location for Your Business
- Register Your Internet Cafe Business with the IRS
- Open a Business Bank Account
- Get a Business Credit Card
- Get the Required Business Licenses and Permits
- Get Business Insurance for Your Internet Cafe Business
- Buy or Lease the Right Internet Cafe Business Equipment
- Develop Your Internet Cafe Business Marketing Materials
- Purchase and Setup the Software Needed to Run Your Internet Cafe Business
- Open for Business
Where Can I Download a Free Business Plan Template PDF?
Click here to download the pdf version of our basic business plan template.
Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.
We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.
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How to Start a Cybercafe Business
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- Web Service Businesses
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Cyber cafes are popular worldwide, and for a good reason, as they offer a convenient and affordable way for people to get online, but they aren't as popular in the U.S. as they once were. If you're considering starting an internet cafe, it's essential to do your research first.
While it's fun to develop a business name, design your floorplan and think about hiring your first employees, there are steps to take before you get there. Visit an internet cafe near you – if there is one – to get a feel for what other businesses are doing. If there are no cyber cafes nearby, that may be better, as your cafe would be the first in the area.
The basics of how to start a cyber cafe business plan are similar to other businesses, with some specific considerations. Using a sample business plan as a guide, you'll be starting your cyber cafe in no time.
What Is an Internet Cafe?
An internet cafe, also commonly known as a cyber cafe, is an establishment that provides computer services and beverages. Internet cafes usually offer a range of computer services, from simple web browsing to more complex tasks such as graphic design and video editing. They also offer a variety of drinks, snacks and light meals. Some internet cafes offer gaming services.
Internet cafes first started popping up in the early 1990s. They were a response to the growing need for public internet access. At that time, home internet access was still relatively rare and expensive. So, people went to their local cyber cafes to get online. According to the experts at History , although the first coffee houses did not have internet access, they acted much like the cyber cafes of today.
Nowadays, most people in the U.S. have home internet access. However, internet cafes are still popular in some parts of the world, primarily because they offer a unique service that people are willing to pay for, especially in developing countries without widespread internet access. In the United States, there are still internet cafes in some areas that cater specifically to people who play PC video games. You can still see teens gathering around a PC to watch their friends play their favorite games, which makes an internet cafe a good place to meet new people and make friends.
How to Start an Internet Cafe
There are several things you need to take into consideration before opening an internet cafe. First, you'll have to decide what services you want to offer. Do you want to offer simple web browsing, or do you want to offer more complex services like video editing?
Once you've decided on the services you want to offer, you need to choose a location. Choosing a convenient location with plenty of foot traffic is vital to maximizing your number of customers. Ensure the location you choose has the necessary infrastructure, including reliable, fast internet access and ample electrical outlets. Also, don't forget that with this much technology comes technical issues, so you'll likely need IT staff on hand.
Next, choose a name and design for your cafe. Then, start thinking about how to market your business. How are you going to inform people that your cafe exists? How are you going to attract customers?
Cyber Business Plan Sample
Last but not least, you need to make an internet cafe business plan. This process might seem daunting, but it's not as difficult as it sounds. A business plan is a straightforward document outlining your business goals and how you plan to achieve them. It should include your cafe's name, location, services, marketing strategy and financial projections.
If you're unsure where to begin your cyber business plan project, don't worry! The experts at the New Hampshire Small Business Development Center provide a few tips for this process. Your business plan should start with the purpose of your business and why you're starting it. If you're trying to secure funding, this is where you state how much you need.
From there, you outline your goals and steps to take. This outline is where you get into the details of your business plan, such as the type of business and what you need to do before opening, such as remodeling. Finally, you outline your marketing plan. This plan should include your market research, target demographics and how you plan to reach your potential customers.
- History: How Coffee Fueled Revolutions and Revolutionary Ideas
- New Hampshire Small Business Development Center: Sample Busines Plan: Moose Mountain Cafe
- Intranetjournal
- Create a website to market your cybercafe to tourists, locals and those visiting for business. Hold gaming nights to attract regular customers.
- Maintain computers by running frequent virus scans, deleting the computer history at least once a day and limiting the types of websites customers are allowed to visit to prevent virus attacks.
Danielle Smyth is a writer and content marketer from upstate New York. She has been writing on business-related topics for nearly 10 years. She owns her own content marketing agency, Wordsmyth Creative Content Marketing, and she works with a number of small businesses to develop B2B content for their websites, social media accounts, and marketing materials. In addition to this content, she has written business-related articles for sites like Sweet Frivolity, Alliance Worldwide Investigative Group, Bloom Co and Spent.
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Internet Cafe Business Plan
Start your own internet cafe business plan
JavaNet Internet Cafe
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.
The public wants: (1) access to the methods of communication and volumes of information now available on the Internet, and (2) access at a cost they can afford and in such a way that they aren’t socially, economically, or politically isolated.
JavaNet, unlike a typical cafe, will provide a unique forum for communication and entertainment through the medium of the Internet. JavaNet’s goal is to provide the community with a social, educational, entertaining, atmosphere for worldwide communication.
JavaNet intends to cater to people who want a guided tour on their first spin around the Internet and to experienced users eager to indulge their passion for computers in a social setting. Furthermore, JavaNet will be a magnet for local and traveling professionals who desire to work or check their email messages in a friendly atmosphere. These professionals will either use JavaNet’s PCs, or plug their notebooks into Internet connections. JavaNet’s target market covers a wide range of ages: from members of Generation X who grew up surrounded by computers, to Baby Boomers who have come to the realization that people today cannot afford to ignore computers.
Competition
The main competitors in the retail coffee segment are Cafe Paradisio, Full City, Coffee Corner and Allann Bros. These businesses are located in or near the downtown area, and target a similar segment to JavaNet’s (i.e. educated, upwardly-mobile students and business people).
JavaNet will follow a differentiation strategy to achieve a competitive advantage in the cafe market. By providing Internet service, JavaNet separates itself from all other cafes in Eugene. In addition, JavaNet provides a comfortable environment with coffee and bakery items, distinguishing itself from other Internet providers in Eugene.
Expectations
We plan on getting more than 500,000 sales in year 1 and nearly 1,000,000 sales in year 3. We will have earnings year 2 and year 3
Financial Highlights by Year
Financing needed.
Our financing has already been secured as follows:
- $24,000 from the Oregon Economic Development Fund
- $19,000 of personal savings from owner Cale Bruckner
- $56,000 from three investors
- and $10,000 in the form of short-term loans
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Cyber-Café Business Plan Template
FEB.14, 2018
Are you planning to open an internet café ?
Internet penetration across the globe has grown exponentially and everyone these days relies on a stable internet access for both work and play. Even though the latest technologies including mobile technology is widely used across the world, there is still a high demand for good quality internet cafes offering superior quality service. People want to walk into a professionally managed facility with fast-speed internet infrastructure.
For a cyber café business to succeed, the first step is to have a well-structured business plan that will guide the entire process of business set-up. Before embarking on a starting a cyber café, you need to have a well-laid out business plan that will effectively take care of all issues that need your attention.
In case you aren’t sure of how to come up with a professional business planning for your cyber café company, here is a detailed sample plan written for an upcoming cyber cafe, YellowNet in Manhattan.
Executive Summary
The Cyber Café Business
2.1 The Business
YellowNet Cyber Café will be located on Street X in downtown Manhattan which is an busy area with a lot of activity. The neighborhood was selected because it is the heart of business, leisure and entertainment activities. With a number of world famous landmarks within the vicinity, it is the perfect place to open internet café business . The café is situated within one of the world’s busiest Central Business Districts. The internet café will be situated in close proximity to world renowned landmarks such as The Metropolitan Museum of Art, Central Park, Empire State Building and One World Observatory among others. The location was selected to serve city dwellers as well as visitors and tourists.
YellowNet will be run by Michael Thicke and his wife. Michael has extensive experience working for various Internet Service Provider companies while his wife has worked with various business management consultancy firms. With experience in the internet service provision and business consultancy, the couple is well versed with intricate details of how to open an internet café and successfully run it. Michael knows too well he has to be innovative and think outside the box to offer a unique and exemplary service that meets the demands of his customers. Michael will be in charge of the day-to-day running of the cyber café business. He has studied other similar business models to craft a winning strategy for starting an internet café .
2.2 Objectives
YellowNet Cyber Café has set up its objectives it intends to achieve the following in the first three years of operation. The objectives have been summarized as follows:
- Creation of a cozy, unique and quiet environment different from other competitors where customers can comfortably enjoy services.
- Make the community aware on what services the cyber café offers.
- Ensure the environment is conducive and can accommodate people with diverse beliefs, cultures and backgrounds.
- Provide great coffee and sumptuous bakery items at affordable prices.
2.3 Keys to Success
The following risks have been identified with starting YellowNet:
- Is YellowNet in Manhattan providing services which are in demand?
- Will internet craze continue to become popular in order to support the café’s growth?
- Will customers be willing to part with their money for YellowNet’s services?
- Will the cost of home internet drop so significantly that YellowNet will no longer find customers interested in Internet café services?
- Will access of internet via mobile platforms become so popular that customers will prefer to instead use their mobile gadgets to access the internet?
2.5 Company Targets and Forecasts
Michael’s target is to become the best internet café in New York and be a trendsetter by providing a unique, highly-customized and professional service. Michael has forecasted a 15% market share and calculated an average gross and net profit margin expected in the next three years. He strongly believes in his business model which will gradually begin with lower net margins, but pick up to bring in a good net profit margin in the second and third year.
Company Summary
3.1 who is the owner.
- YellowNet is owned and operated by Michael Thicke.
- He has vast experience in the internet service provision industry spanning a total of 12 years.
- Throughout his life, Michael has worked for various internet service providers, and therefore thoroughly understands how the industry works.
- Michael is a graduated with a degree in Information Technology from Pace University in New York, He also holds an MBA from Columbia Business School.
- Working in the technology division, Michael was instrumental in the SME technical support division.
- During the course of his career, he helped several local small businesses successfully set up their internet infrastructure.
- He rose through the ranks and served as an IT Manager in the various companies that he worked for.
3.2 Why did he start his business?
- Having been in the industry for long, Mike knew how to start a internet café.
- Despite increase in domestic internet use, he knew there was still a demand for cyber cafes especially in densely populated areas of the city.
- He had seen how other cyber cafes operated and seen the loopholes he could exploit to offer a unique and customized service.
- There was need to offer a great internet facility where residents, visitors and tourists could access high-speed internet services in NYC City.
- Online gaming inspired Michael to think about starting a gaming café where he could provide a cozy environment for customers looking to have fun online.
3.3 How the business will be started
The total startup cost for YellowNet will be drawn for Mike’s personal savings which he has accumulated during his career life. However, there is a funding shortfall which will be covered by a loan.
The proposed site for the business will be on 3rd avenue Manhattan and will be leased for an initial period of 2 years from June 2018 with an option to extend. Reasons for choosing 3 rd avenue include;
- Proximity to a large downtown business community
- Close to major tourist attractions frequented by many tourists
- Availability of sufficient parking
- Reasonable rent rates compared to other areas of the city
- Premises is strategically located and highly visible
Even though Michael has been in the internet service provision industry, he plans to hire five additional staff to help in running the internet café.
Services for Customers
YellowNet will be a professionally managed and equipped with the latest cutting edge technologies to meet the demands of clients. In a bid to stand out as a unique and modern establishment, the business intends to go an extra mile and cultivate strong relationships with its customers. The intention of offering a wide variety of services under one roof is to offer clients the best value for money, and at the same time make profits in accordance to the law,
The quality of service is expected to be exemplary right from accessing the internet to general customer service etiquette. The target is to ensure customers enjoy themselves while at the facility and look forward to coming back again.
Products and services to be offered at YellowNet include:
- Offer fast and secure internet browsing services
- Help clients access reliable and affordable international internet calls
- Avail the required hardware and software to facilitate video teleconference services
- Provision of document printing and scanning services
- Offer highly sophisticated infrastructure for computer gaming
- Sale of call cards and internet bundles from various service providers
- Offer caffeine, snacks and various types of soft drinks
- Provide consultancy and advice in internet related services
YellowNet has invested heavily in a wide array of internet applications. As part of internet café business introduction strategy, the establishment intends to harness the latest technologies to ensure the business is fully technology compliant.
With the realization that many people are increasingly becoming keen on online gaming, Michael is keen on branding his business as a computer game café with the best gaming applications you cannot find anywhere else.
In future, YellowNet intends to establish a small internet training center that will offer learners a chance to be trained by experts on how to effectively use the internet.
Marketing Analysis of Cyber Café Business
Comprehensive cyber cafe business plans always offer a detailed analysis of the target market. YellowNet is expected to operate in a highly profitable environment that will allow the business be a trendsetter in the cyber-café industry. With a growing number of people embracing the coffee culture and more people looking for fast internet facilities, the business caters for both groups. This is no doubt an excellent concept that is poised for success. This internet café business model is a combination of two related businesses under one roof.
5.1 Target Market Segment
YellowNet intends to offer people looking for somewhere quiet, comfortable and cozy to browse the internet. The establishment admits both experienced internet users as well as novices willing to gain knowledge on utilizing the internet. YellowNet’s customers can be divided into two broad categories. The business is targeting an age group of between 18 to 60 years and beyond.
Group One consists of customers who are internet savvy and are just looking for a comfortable and inviting facility aside from their homes and offices to browse the internet and enjoy a cup of coffee and snacks. Group Two consists of customers who aren’t yet familiar with the internet but for various reasons, have to visit an internet café to accomplish various tasks.
Basically, anyone who has a passion for computers and internet is a potential customer. Because many people have internet at home or on their mobile gadgets, it is difficult to find a social setting especially in the Central Business District where you can access high-speed internet.
YellowNet intends to target both local and travellers who wish to check their emails, work or play games in a friendly environment. Customers coming into the premises will either use YellowNet’s PCs or plug in their notebooks and tablets into internet ports. The business targets a wide demographic; from youngsters who’re computer savvy to computer novices who’ve realized computer and internet knowledge is a must have.
This well-laid out internet café business plan focuses on these market segments:
5.1.1 University Students
University students are an important target niche in this cyber cafe business plan because they’re always in constant need of internet access and various computer programs. Because they’re always working on projects and assignments, they will find it helpful to work from a cyber cafe where they can have access to unlimited internet. Because they don’t earn an income, students might not be able to afford to pay for home internet packages and therefore, will opt for an internet café which could be cheaper.
In addition, they’re always in need of scanning, printing and document preparation tasks. On many occasions, students remain in the cyber café for extended time are an excellent target for YellowNet. The growing number of students in universities means there is a steady demand for quality yet affordable internet service.
5.1.2 Office Workers
These are professionals who either reside in New York City or travelling professionals who have visited NYC for conferences. Modern career professionals are always on the move and require quick access to fast internet and other cyber-related utilities to effectively perform their work. Often they will need a quiet, well managed and professional internet café to either read work emails, print, scan or work with diverse applications such as Google, Microsoft Office and Adobe Photoshop. YellowNet understands office workers are sensitive and knows too well professionalism must be top-notch.
5.1.3 Teenagers
Teenagers are excited with anything to do with technology landscape. Therefore, they are a major target for YellowNet. If you’re thinking how do internet cafes make money , you cannot afford to ignore teenagers. These tech savvy youngsters want to be online the entire day playing online games, chatting online and posting photos and multimedia content on social networks. For them, life without internet is worthless. YellowNet intends to always have the newest hardware and software to facilitate intensive online gaming sessions.
5.1.4 Seniors
Seniors are not so much fascinated about computers and the internet. However, they do need to accomplish tasks that require them to visit an internet café. In most cases, seniors are a unique but very lucrative target niche for any cyber related business. Because of their old age, they need somewhere comfortable and friendly to access the internet. In most cases, they will need to be assisted by employees to accomplish various tasks such as browsing, printing and scanning. Seniors always need good customer service because they’re sensitive and require staff to be patient with them.
5.2 Pricing of Packages
YellowNet offers competitive pricing after carefully evaluating the pricing structure for competitors. Since the business targets middle income customers, prices have been structured to effectively cater for this economic and social group.
A summary of YellowNet Prices is indicated below:
- Browsing per Minute $0.05
- Document Printing Per Page $1
- Scanning per Page $2
- Gaming Per Hour $5
- Special Packages $2 per hour (After browsing for three hours)
Prices are client-conscious in order to allow them see value in services offered by YellowNet. There are also special packages in place for those who wish to browse the internet for extended hours or print large volumes of documents. Prices outlined in this business plan are friendly to both the customer to ensure they get the best value for their money, while at the same time ensure the business makes good profits from services rendered.
5.3 Business Target of the Company
While there are many internet cybers operating , YellowNet plans to follow a business strategy services that will deliver good results for the business. Before setting up shop, the business has analyzed customer demand, trends and behaviors in order to respond better to their needs.
Fortunately, YellowNet is the first cyber café to be set up on 3 rd Street and enjoys a niche-market that extends over one kilometer. The business targets to enjoy great advantages especially in brand recognition and customer loyalty. Initially, the company will command an almost 100 percent market share in the immediate surroundings. However, in the next couple of years, chances are high, other internet cafes may open. The goal is to still retain over 70% of the market share in the wake of competition.
After doing extensive market research, the following was concluded:
- YellowNet cyber will need to adjust its working hours in order to get more clients. For instance, the cyber will open earlier that competitors and remain open till late after other internet cafes have closed.
- Charge a slightly lower browsing, printing and scanning rates compared to what others are offering their clients.
- There will be a large number of clients visiting the premises especially when international conferences, shows and exhibitions are taking place in the surrounding.
- The cyber will be extremely busy especially during the weekends and weekday evenings as people seek somewhere to browse the internet and socialize as they enjoy a cup of their favorite drink.
- A lot of customers particularly those reading emails only will visit the premises for a shorter period of time compared to those doing research and projects.
- Always have admin on duty to assist special customers especially seniors and those who may need someone to quickly respond to general enquiries.
- Fully implement this gaming café business plan to ensure YellowNet is popular for online gaming as its latest catch especially amongst the youth.
Without a solid strategy, opening an internet café will be a failed mission. In this section, we look at the strategies that YellowNet intends to put in place to ensure it meets its expectations. This cyber has formulated three key strategies which include;
- Focus on attracting a higher number of novice internet users with a friendly and accommodating environment that doesn’t make novices feel intimidated. YellowNet aims to put in place training opportunities to grow and maintain a loyal customer base.
- Attract more Power Internet users who’re extremely knowledgeable when it comes to using the internet. This is an important customer segment for YellowNet as they’re always in need of cyber café services. Their web-browsing experience makes them to be admired by novice internet users.
- Focus on establishing a friendly and comfortable social setting for YellowNet customers. A good social environment incorporates entertainment attracting customers that would ordinarily not need to access the internet from a cyber café. Once in the cyber, these customers should find an entertaining environment that will make them realize how fun it is to access the internet in a cyber café.
6.1 Sales Strategy Pyramid
The following points outline specifics on how YellowNet will implement the three strategies outlined above. Strategy pyramid graphics can be found in the appendix section of this plan.
6.1.1 Attract Power Internet Users
This strategy will place more emphasis on putting in place initiatives that will attract power internet users. These users are critical to the success of YellowNet and the following strategies will be used to attract these customers;
- Stay abreast and offer the best computing technologies; these users love using the latest technologies.
- Offer printing and scanning services
- Allowing clients to access powerful software applications.
6.1.2 Offer a Social Hub
This strategy lays emphasis on building a safe, nice and friendly environment for YellowNet customers. Starting a cyber café goes beyond just offering PCs and internet.
- The cyber will focus on availing standard entertainment facilities on the premises to entice more customers to come in. Soon clients who come in to enjoy entertainment will realize there is fast internet on site that they can utilize.
- Invest in beautiful and well-designed sitting areas, tasteful furniture and decorate appropriately with lively themes that promote comfort.
6.1.3 Entice Novice Internet Users
YellowNet’s sales strategy involves reaching out to more novice internet users. This is a lucrative market that many cyber café business plans tend to neglect. Even though these customers don’t have browsing experience, they can be transformed into loyal cyber café customers. YellowNet intends to attract novice customers by:
- Ensure YellowNet is known for a novice friendly environment. The facility will be staffed by knowledgeable and experienced personnel to ensure novice customers feel welcomed and their needs are promptly attended to.
- A customer service desk will be manned by YellowNet personnel throughout to offer any help in case a customer has a question or wishes to raise a concern.
- YellowNet hopes to introduce internet and email classes for beginners. The goal of these classes is to help novice users familiarize themselves with internet browsing and how to use computer systems available at the cyber café.
6.2 SWOT ANALYSIS
The purpose of SWOT analysis is to enable us understand both internal strengths and weaknesses that YellowNet must deal with. It also points out opportunities available for the business as well as the potential threats.
YellowNet has numerous strengths and advantages that will offer the business a competitive advantage and drive success. Before the plan to start an internet café was initiated, adequate market survey was done to identify the strengths, weaknesses, threats and opportunities.
6.2.1 Strengths
- Well trained, professional and friendly staff. YellowNet has gone an extra mile to hire and train staff who have a passionate to train and help clients.
- High-tech equipment which includes super-fast PCs, flat screen displays and high quality printers.
- Fine ambience. Every customer who walks into YellowNet should immediately feel comfortable and welcomed.
- A well-laid out vision as YellowNet knows what it takes to effectively meet client needs.
6.2.2 Weaknesses
- Rapid changing technologies means YellowNet has to always keep abreast of the latest technology.
- Significant expenses associated with keeping sophisticated hardware and software. YellowNet must -find ways to balance technology with other key business needs.
6.2.3 Opportunities
- Rapid population increase of internet users means more people will need YellowNet services.
- Social bonds and networks built as a result of the internet gives the business a platform to grow communities by establishing dedicated chat areas and community programs.
6.2.4 Threats
- Massive reduction of internet access costs. The cost of internet is dropping rapidly and may end becoming cheap that nobody may be willing to visit a cyber café. YellowNet is aware of this reality and will constantly monitor pricing.
- Emerging local competition: In future, new cyber cafes will be opened but YellowNet is well-prepared to take on this challenges.
6.2.5 Competitors
- Because of Michael’s experience in the internet service provision industry, YellowNet has a competitive advantage over other cyber cafes.
- The business has a unique sales and marketing strategy that effectively addresses how do internet cafes work in a highly competitive environment.
6.2.6 Sales Forecast
- YellowNet Cyber is expected to get a regular influx of customers throughout the day and the sales are expected to vary from day to day and month.
- YellowNet has based projected internet sales based on number of hours every terminal is active. Coffee and espresso sales are based on a financial data provided by Kobrick Coffee Company.
6.2.8 Milestones
The Yellow Net Cyber Café has come up with some basic milestones to keep the business priorities in check. Responsibility of implantation will be overseen by Mike Thicke and his wife Tracy Thicke, who is the manager of the business. The milestone table below will be updated with an actual table as the year progresses.
Personnel Plan
Michael Thicke is the CEO and Owner of YellowNet Cyber. He manages and oversees all daily activities in the internet café. Mike will be helped by his wife Tracy, who is the Manager and will oversee financial books for the business. Both Mike and Tracy are responsible for making key management decisions.
Three staff members are Admin Assistants working part-time earning $7.00 per hour for 30 hours per week. There is one full-time technician working 40 hours per week at $12 per hour. The role of the technician is to offer technical support to clients and fix minor terminal bugs while Admin Assistants perform general administration duties. Intensive interviews and training is done to ensure only qualified personnel work in the establishment.
The simple staff structure ensures efficient distribution of duties and seamless workflow. It also allows better communication among team members to facilitate quick decision making. YellowNet management knows the secret to success is how to start your own internet café business with minimal but efficient personnel.
The following table is a representation of employee salaries for the next three years.
Financial Plan
YellowNet has developed the following financial plan which outlines how this cyber will achieve its financial goals within first three years. A financial way forward of how to start an internet cafe is essential to help the business realize its financial targets. There are plans in the pipeline to launch other establishments in NYC. For this to happen, the company must formulate a workable financial plan that will drive success.
8.1 Important Assumptions
Basic assumptions are indicated in the table below. These assumptions are expected to show variations due to various factors, but the result will not have any significant effect on the company’s financial strategy.
8.2 Brake-Even Analysis
Brake-even data for YellowNet is illustrated in the chart and table below.
8.3 Projected Profit and Loss
Payroll Expense: The founder of YellowNet, Michael Thicke will get a salary of $26,000 in year one, $28,000 in year two, and $30,000 in year three. YellowNet has put in place plans to hire 3 part-time after first year ends for $6 per hour while a full-time technician will earn $12 per hour.
Lease Expenses: The facility intends to lease a 1,500 square foot facility at $1.875. According to the lease agreement signed by YellowNet, rent due every month totals to $800 for a total of 24 months. After five hundred and twenty days, the lease is availed for consideration. Right to renew or cancel the agreement is based on issues at hand.
Utilities Expense: As indicated in the signed lease agreement, the lessor is responsible for utility payments which include; real estate taxes, gas and garbage disposal among others. YellowNet is expected to cater for the internet cafe business phone bill expenses.
Marketing Expenses: YellowNet has allocated $20,000 for promotion related expenses for year one. This money will cater for placing adverts in local dailies to boost customer awareness.
Insurance Expenses: YellowNet Cyber has allocated $7,000 for insurance for the first year, second and third year. In future, the business intends to spend more on insurance coverage.
Taxes: Since YellowNet is an LLC, it is not taxed but there is a 15% payroll obligation.
A Comprehensive profit and Loss data is illustrated in the table below.
8.4 Projected Cash Flow
YellowNet’s projected cash flow is shown in the table below.
8.5 Projected Balance Sheet
YellowNet’s projected balance sheet is shown in the table below.
8.6 Business Ratios
The SIC (Standard Industrial Classification) code for Internet Service Provider Industry is “Remote data base information retrieval “7375.9903. “information retrieval services” 7375 report was used to generate the industry profile. YellowNet is also a food café so it could have used “Eating Places” ratios based on SIC classification 5812. YellowNet Café belongs to two business segments that makes the ratios a combination of two industries.
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How To Start a Internet Cafe Business 10 Easy Steps
Do you want to start a cybercafe or internet cafe business? Find here a detailed internet cafe business plan sample checklist for your ready reference.
Nowadays, the internet is one of the most needed things globally. Even a person living in a remote village who doesn’t have a laptop, have got the need of using the internet daily basis. Hence, the demand for internet cafes is huge.
These days, commonly, people use smartphones for accessing the internet easily. However, a smartphone is not an effective alternative for using the internet for work purposes. Therefore, the demand for high-speed internet cafes is always there.
Generally, students, teenagers, youngsters, and tourists are the major consumers of this service. Additionally, a cyber cafe is a great place for gaming. And the demand for this type of cafe is increasing very fast.
10 Steps to Start an Internet Cafe/ Cyber Cafe Business
Here are the steps to follow to start a profitable internet cafe business:
1. Do Market Research
Like any other business, it is extremely important to understand the demand and trends related to internet cafe services locally. Conduct market research and find out the gaps that exist in the market, and then prepare a business plan accordingly to explore the opportunity.
2. Select a Location for an Internet Cafe
Location plays an important role in this business. If you already have a retail space is good. Otherwise, you can consider having a space to rent. However, the area requirement fully depends on the business model and the services you are going to offer.
You can start the business at any location. Metropolitan cities, small towns, and rural areas are also great areas for starting this business. However, the location must have a high population density.
Additionally, you must check the local demand for an internet cafe. However, the location nearby schools, colleges, educational institutions, and hotels are best for starting this business.
3. Select an Internet Cafe Business Model
In opening a cyber cafe, you must create the right business model to fetch the maximum profit from the retail space. Therefore, you must provide other value-added services to your customers. Apart from providing the internet, you can provide gaming options too.
Additionally, you can provide a page printing facility. Also, you can offer project work to the school students. Even, if you have space, you can provide Xerox and lamination services also.
4. Write an Internet Cafe Business Plan
Regardless of the size of your business, you must have a business plan. A business plan consists of so many aspects. Additionally, a well-crafted business plan helps to initiate and operate the business properly. Even, if you need startup capital from the banks or investors, the business plan is an essential tool to convince them.
Plan for how customers will allow sitting. How many computers and devices you will provide. What are the additional services you want to offer? And finally, whether you will offer some food and beverages or not. Determining these aspects clearly will definitely help you in writing an internet cafe business plan properly.
It is advisable that you prepare a feasibility report of your own. You need to study the local market and need to identify the exact demand for an internet cafe in your area. Finally, you can prepare the plan for yourself or you can take the help of the business plan writing software . And finally, you have to take action according to your plan.
5. Name Your Internet/ Cyber Cafe
It is extremely important to select a catchy and relatable business name for your internet or cyber cafe. A properly chosen business name will not only enhance the overall brand growth but also helps in fetching extra new customers for your cyber cafe. Also do not forget to check availability and book a website domain name as it becomes difficult to create a website with a domain address similar to the name of the business.
Read: How to Name Your Business? Step-By-Step Guidelines
6. Register your Internet Cafe Business
First of all, selecting the right form of organization is an essential initial step. You must select the business form according to the investment pattern and size of the business. If you are starting a business of your own with a shoestring budget, it is better to start as a proprietorship company or form an LLC if you are from the United States.
7. Procure Required Licenses
Generally, starting an internet cafe business demands licensing and permissions from the Govt. authority. However, it hugely varies on the location. Hence, you must check the local laws and regulations. Additionally, talk to the local tax consultants to have a clear idea of upcoming tax liabilities.
8. Buy Equipment Needed to Start Internet Cafe Business
Generally, the requirement of equipment hugely depends on the business model. You must obtain the specific items according to your specific requirements. However, you will need to have some of the basic equipment for starting this business. The list includes computers, high-speed internet connection, and other necessary hardware components.
Apart from these basic items, you may have the requirements of a printer, lamination machine, xerox machine, etc. Additionally, you can put a vending machine or instant coffee machine for providing food and beverages to your customers. Also, ice cream is a great choice you can keep in an internet cafe.
It is advisable not to compromise the quality of the products. Additionally, never compromise with the internet speed also. Basically, people prefer internet cafes for high-speed internet facilities. However, procuring the equipment as per your financial budget.
9. Setup The Cafe
The interior of the cafe plays an important role in customer retention and thus the long-term success of the business. You must provide a cool, quiet, and comfortable ambiance to your clients. Additionally, plan for the sitting arrangement carefully so that you can use every inch of the space effectively.
Moreover, you must provide furniture that is comfortable for long periods of time but also easy to clean and maintain. It is advisable to talk with an interior designer for preparing a floor plan prior.
Apart from the sitting areas, your cafe must have a billing counter and waiting area. Provide high-speed internet and sufficient light inside the room. If it is a load-shedding-prone area, then you must have generator support for providing uninterrupted service.
Fix broad signage on the outside of the store. Additionally, prepare the billing system properly. You must provide the bills to your customers. In addition to that, fix the rate chart of your various services.
10. Promote Your Cyber Cafe Business
you must promote your internet cafe business both online and offline. Nowadays, GoogleMyBusiness plays an important role in hyperlocal promotion. Additionally, list your business with the local online classifieds. Having a website for your internet cafe will not only fetch you more customers but also enhance your internet cafe brand.
For long-term, sustainable success, you must pull the new customers and repeat customers both. Hence, you must consider the offline promotion too. Additionally, some sales promotion strategies work wonderfully in this business too.
If you want to start an internet-related small retail business, then the internet cafe is the best business to start. Even, it is a great self-employment opportunity for the youths also.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.
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Before your cyber cafe opening, devise a plan of a basic promotion: giving out flyers, placing posters at the gathering spots of your target audience etc.
Business name. Give your internet cafe a name. Be creative, make sure it fits into the whole picture of your business concept. Double-check that
Give a brief overview of the internet cafe industry. Discuss the type of internet cafe business you are operating. Detail your direct competitors. Give an
Choosing a convenient location with plenty of foot traffic is vital to maximizing your number of customers. Ensure the location you choose has the necessary
JavaNet, unlike a typical cafe, will provide a unique forum for communication and entertainment through the medium of the Internet. JavaNet's goal is to provide
Here's a gift for you, a business plan template, in MS Word Format that you can download.
Get a FREE High Quality Business Plan Template. Here: https://www.bizmove.com/business-gifts.htm.
You are welcome to use this plan as a starting point to create your own, but you do not ... JavaNet from other local coffee shops and future Internet cafes.
For a cyber café business to succeed, the first step is to have a well-structured business plan that will guide the entire process of business
1. Do Market Research · 2. Select a Location for an Internet Cafe · 3. Select an Internet Cafe Business Model · 4. Write an Internet Cafe Business Plan · 5. Name