new business: Internet Cafe??

[dawookie]

Ive got tons of ideas for businesses but don't know what will work and what won't... I think Im too motivated to work for someone else.. I work my butt off only to hit the ceiling and then vegetate without any more room to move up.

Since most of my ideas are computer related I think that an internet cafe would be a perfect place to get started..

I could always try and implement my ideas and see if it takes off, all the while running the internet cafe as well.


And it seems that an internet cafe would have a pretty low overhead.. coffee and the equipment would be pretty cheap, the hardware would be a big spike in the beginning, but after that an internet connection and rent would probably be the biggest expense.

What are your opinions of internet cafe's?? Think its a dying trend or just the beginning of something bigger?

 

[WODIN]

No one wants to look at porn in a cafe.

 

[Chester_Copperpot]

Internet Cafe's seem to be a dying breed, unless you reside in a very sheltered area where the internet is still somewhat fascinating.

You should start a business called "Computers on Scooters" where you ride a scooter around the city all day and ask people if they would like to email someone or check out a favorite web site for a small fee of $10, they would have a 3 minute limit, 20 customers a day would not be so bad.

 

[dawookie]

not unless you're in the back corner computer..

I like the idea of having gaming tournaments to bring in some kids.. maybe buy a bunch of xbox's and have halo and madden tournaments as well..

 

[dawookie]

Internet Cafe's seem to be a dying breed, unless you reside in a very sheltered area where the internet is still somewhat fascinating.

True.. most people have high speed internet.. Id have to try and market certain age groups.. I could see hosting email for some retirement communities so they can email their grandkids from [email protected] or something...

or have game tournaments to bring in kids/teens..

and having this sort of retail store could open up opportunities for computer training, etc..

 

[Red Shadow]

I think that internet cafe's are very cool. Very handy when out and about and you decide that you need the internet for some reason. They are still very popular here in Oz and all over Asia. This is largely due to the popularity of multiplayer games like CS, RTCW, Quake3, etc... In fact, I'd say that the people I see most in the cafe's are the gamers.

This might be because the broadband services suck in this country though and as a result of that many gamers head to the cafe's where they can get good speeds for a relatively reasonable price - and hang out with thier frinds and drink Bubble-Tea (very very very popular drink here)...

Aim it at the youth/gamers I'd say You can almost make it into an arcade really and have lock-ins etc where all games are a bit cheaper for a few hours on certain days if you bring a few friends along. Design it so that it looks really atmospheric and cyberpunk or something.

Good luck anyways

 

[MattTheSkywalker]

Would a TV cafe work? No...everyone has one. Likewise Internet

 

[dawookie]

Would a TV cafe work? No...everyone has one. Likewise Internet

There are plenty of cafe's that work.. starbucks is one..

 

[vixenbabe]

I was in one of the mall's here in Toledo the other day.I saw this phone booth type "Internet Cafe". You could hook up right in the center of the damn mall!

Come to think of it..My gym has Internet access by the treadmills and bikes....Who 'da thunk?! I'm still trying to figure out how you can surf the web or type while sweat is streaming down your face!

 

[MattTheSkywalker]

There are plenty of cafe's that work.. starbucks is one..

Dude

TYou want to spend your money that way...knock yourself out. I am just giving you opinions.

If you think Starbuck's economic engine is as an Internet cafe....I don't think you can be helped.

 

[Pink Space Biscuit]

Internet cafe's work in tourist places... especially cruise ship ports, where it costs $12 a minute to call back home from the ship and I think around $30+ an hour to use their internet...

Other than that I would never use one...

 

[dawookie]

Dude

TYou want to spend your money that way...knock yourself out. I am just giving you opinions.

If you think Starbuck's economic engine is as an Internet cafe....I don't think you can be helped.

Whats your opinion on the arcade-type portion of the idea..
If you go to any arcade it is all garbage games that don't compare to those on pc or console.

Offer that with refreshments (coffee, snacks, smoothies) to keep the people there..

 

[WODIN]

Whats your opinion on the arcade-type portion of the idea..
If you go to any arcade it is all garbage games that don't compare to those on pc or console.

Offer that with refreshments (coffee, snacks, smoothies) to keep the people there..

I like this idea. It might actually work.

 

[MattTheSkywalker]

Whats your opinion on the arcade-type portion of the idea..
If you go to any arcade it is all garbage games that don't compare to those on pc or console.

Offer that with refreshments (coffee, snacks, smoothies) to keep the people there..

Arcades require space.

Space costs money, especially if it is space where people actually go. Commerical leases usually requre a large security deposit and a year up front. Or you buy space, but that's not cheap either.

Yopu'll have to customize the space the way you want it. Construction is big bucks.

Any commercial buinses requires insurance. Not super expensive but pricey. Then you'll have monthly bills (what do you think electric is for an arcade?)

You'll also have to pay employees, as wellas do all th tax withholding.

Now you want to serve food. permits? Inspectins?

Most businesses fail because they are undercaptialized (not enough money) not because they are bad ideas.

Whatever you think it will cost, multiply by 3.

 

[Code]

Internet cafes only work in area where there is limited broadband access. And if there is no broadband in that area, you're buying raw bandwidth, which is pricey.

A solid T1 will run you around 1200/month assuming you already own a CSU/DSU and a router. Otherwise jack up the price to 1400 bones.

Add leasing/rental fees and then tack on overhead (utilities, employee wages etc) and then figure out the foot traffic you're gonna need to make a profit.

If you think you can do it, go for it.

The one hitch is that gamers and internet addicts are lazy, if they have a quarter meg pipe at home there is little to no reason to go to your place even if you have a 3 meg pipe.

 

[dawookie]

Arcades require space.

Space costs money, especially if it is space where people actually go. Commerical leases usually requre a large security deposit and a year up front. Or you buy space, but that's not cheap either.

Yopu'll have to customize the space the way you want it. Construction is big bucks.

Any commercial buinses requires insurance. Not super expensive but pricey. Then you'll have monthly bills (what do you think electric is for an arcade?)

You'll also have to pay employees, as wellas do all th tax withholding.

Now you want to serve food. permits? Inspectins?

Most businesses fail because they are undercaptialized (not enough money) not because they are bad ideas.

Whatever you think it will cost, multiply by 3.

As far as the arcade space goes.. these would be pcs so space isnt as much an issue as a standup game arcade. But electricity would obviously be high.

The reason I was thinking along the lines of coffee and snacks is that no oven or cooking is required.. Do gyms have to get licences for serving protein bars and shakes? Snacks could be taken care of with a trip to Costco.

Your other points are already considered. With just about any business you have employees and construction costs.

 

[dawookie]

Internet cafes only work in area where there is limited broadband access. And if there is no broadband in that area, you're buying raw bandwidth, which is pricey.

A solid T1 will run you around 1200/month assuming you already own a CSU/DSU and a router. Otherwise jack up the price to 1400 bones.

Add leasing/rental fees and then tack on overhead (utilities, employee wages etc) and then figure out the foot traffic you're gonna need to make a profit.

If you think you can do it, go for it.

The one hitch is that gamers and internet addicts are lazy, if they have a quarter meg pipe at home there is little to no reason to go to your place even if you have a 3 meg pipe.

Ive had this idea brewing for awhile with different variables changing throughout.. What is peaking my interest now is that there is a new shopping plaza right behind a high school in my area.. I remember as a kid spending a lot of money on video games on the way to/from school.

Internet access could also be used for homework for these kids and even have other services provided (computer training is an example)

If the kids would stop BEFORE they got home to their 1/4 meg pipe it could work..

Another cool idea would be to buy a bunch of arcade boards and then set those games up on a mame/emulator pc that they can play all the old school stuff too.. as long as the real games are owned I dont think there'd be a problem with piracy.

 

[Code]

Ive had this idea brewing for awhile with different variables changing throughout.. What is peaking my interest now is that there is a new shopping plaza right behind a high school in my area.. I remember as a kid spending a lot of money on video games on the way to/from school.

Internet access could also be used for homework for these kids and even have other services provided (computer training is an example)

If the kids would stop BEFORE they got home to their 1/4 meg pipe it could work..

Another cool idea would be to buy a bunch of arcade boards and then set those games up on a mame/emulator pc that they can play all the old school stuff too.. as long as the real games are owned I dont think there'd be a problem with piracy.

I'm not pissing on your idea, just bringing some food for thought.

Kids have internet access at schools, and most schools provide classes in them.

High school kids would NOT wanna spend money to play Burger Time. And if they wanted to play it, they could download it themselves.


The only cash flow you'd see near a school is during lunchtime, kids coming in to get to sites their school filters out.

 

[white boy]

the failure rate in this type of business is probaly close to that of restaraunts, if you want to work for yourself, buy a franchise or learn a construction trade like roofing, plumbing or siding and go into it for yourself
I don't know the stats but I read somewhere that this is the way of most self made millionaires

 

[the nature boy]

lol @ Burger Time.

 

[the nature boy]

P.S. open a starbucks.

 

[SV2]

I sort of agree with Matt. IMO, you cannot charge enough for access time to cover the T1 costs + rent at an internet cafe... Rent would be high because you'd absolutely need to be in a high rent district that had tons of foot traffic. You could try to sell other consumables like food etc, but the margins on food are higher than you'd expect if you are not selling a lot of it. You'd be better off starting some kind of high end multiplayer gaming network cafe (something that provided more value than just an on ramp to the internet). I never understood the cafe thing because Internet surfing is more a private thing, it's not publicly social.

You'd never get any college kids because they can surf for free in any of their computer labs at school.. And most travelers have their own laptops with modems.. shit, and now, I mean with the growth of 802.11 and other wireless networking protocols, I think you'd have to be a fool to sink a hard earned dime in a I-Cafe.

 

[manny78]

There are plenty of cafe's that work.. starbucks is one..

It's dying. We used to have at least 20 of them here, now only 4 remain open.

Internet access is now cheap, even welfare people have it. The idea used to be cool, 5-6 years ago, when few had high speed internet access, or were just traveling and needed to check their e-mails. Now most hotels have such access in the rooms, so all you need is a laptop and a modem. SOme even have computers in the lobby.

 

[Pink Space Biscuit]

It's dying. We used to have at least 20 of them here, now only 4 remain open.

Not here. They are literally every few blocks.. I've seen busy ones right across the street from each other.

 

[Machiavellian Muscle]

Have a coffee shop in which all the people serving are wearing bikinis. Like a hooters but with coffee etc. Might not get a lot of women, but a lot of businessmen would come to get their coffee I bet.

 

[manny78]

Not here. They are literally every few blocks.. I've seen busy ones right across the street from each other.

is internet really that expensive there ?

 

[hellboy]

Open the internet cafe in south america. I was in Quito, Equador last year and went to one. It was FULL of hotties. I was amazed at how many cute girls were there logging onto the net. It was like I was in some strange foreign country or something.

 

[dawookie]

There are other internet gaming cafes locally in sfl that are be doing well although high speed access is relatively cheap.

SV2- my idea is actually more towards the high-end gaming internet cafe.. Playing in a close quarters lan environment is more exciting than sitting alone and playing online at home. there is interaction..

I also see this sort of operation as a way to implement other ideas. Ive been working on a christmas card DVD that uses digital pictures imported to a shockwave animation to create a personalized DVD for christmas cards, birthday cards, whatever..

The problem I saw with marketing this is where to do so.. a Mall kiosk is possible but the idea may not take off..

Having an internet/technology cafe sort of place will allow me to test this market without blowing the whole wad on this idea..

I still like the idea... will it ever get past the drawing board? I don't know, that depends on how well my career goes in the meantime.. I get paid well enough to stick with the IT industry for now..

 

[SV2]

SV2- my idea is actually more towards the high-end gaming internet cafe.. Playing in a close quarters lan environment is more exciting than sitting alone and playing online at home. there is interaction..

Those were my exact sentiments, did you read my whole response?

I think the idea may have merit, its definately worth doing some market research. Location (like always) will really be the key to a business like thats success..

 

[XBiker]

The newest Inet based idea I have seen the "Internet Kiosk"

Much like a payphone, but with the capability to hook a network adapter to the "phone" and have instant Inet access via laptop.

Also, they have touch screens and pseudo keyboards if you want to check your e-mail and do the online activities while mobile.

With DSL so affordable and providing decent bandwidth, this new type of "phone" (which also allows the user to place traditional phone calls) should start to pop up in most metro areas.

The main downside is that the "phone" is rather pricey and must be located in an area where it isn't easily damaged or vandalized.

 

[dawookie]

Those were my exact sentiments, did you read my whole response?

I think the idea may have merit, its definately worth doing some market research. Location (like always) will really be the key to a business like thats success..

I read your response... I thought I had that covered in earlier posts..

 

[kronk]

I have been thinking about opening up one of these out of the USA and running another tourist business as well. I thikn they are great ideas, just not in the USA.

 

[pitbullstl]

Arcades require space.

Space costs money, especially if it is space where people actually go. Commerical leases usually requre a large security deposit and a year up front. Or you buy space, but that's not cheap either. \




Yopu'll have to customize the space the way you want it. Construction is big bucks.

Any commercial buinses requires insurance. Not super expensive but pricey. Then you'll have monthly bills (what do you think electric is for an arcade?)

You'll also have to pay employees, as wellas do all th tax withholding.

Now you want to serve food. permits? Inspectins?

Most businesses fail because they are undercaptialized (not enough money) not because they are bad ideas.

Whatever you think it will cost, multiply by 3.

This could be the most accurate statement ever on Elite....capital is key....I would actually go as high as 4 times what you think you would need.....I opened a supplement kiosk in High School, failed miserably, not because of the idea, but the lack of capital.....I partnered with someone 10 years later, and the same idea with 5 times the capital needed (retail store's not kiosk) and have endured a down economy, with great success.....whatever you do....plan accordingly, and then plan some more, and then ask somone with tremendous business acumen to help you plan, and then keep planning, by then you should wrestle up enough capital......good luck

 

[white boy]

This could be the most accurate statement ever on Elite....capital is key....I would actually go as high as 4 times what you think you would need.....I opened a supplement kiosk in High School, failed miserably, not because of the idea, but the lack of capital.....I partnered with someone 10 years later, and the same idea with 5 times the capital needed (retail store's not kiosk) and have endured a down economy, with great success.....whatever you do....plan accordingly, and then plan some more, and then ask somone with tremendous business acumen to help you plan, and then keep planning, by then you should wrestle up enough capital......good luck

This is debateable as alot of business fail that are overly capitalized, if a business is short on capital they tend to fix any revenue problems quickly on the other hand a business with plenty of capital, but a poor business plan can stay in business longer before eventualy failing

 

[Code]

quote:
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Most businesses fail because they are undercaptialized (not enough money) not because they are bad ideas.

--------------------------------------------------------------------------------

Not entirely accurate at all. I've seen many well funded companies die out quickly, because they throw money at solutions instead of use creative [read cheaper] solutions.

Well funded start-ups tend to not only throw money at solutions but they also over-market and market improperly. Not to mention they also tend to be top-heavy, you know too many chiefs- not enough indians....

Running a lean shop is easy and leaner shops pull a wider profit margin.

My brother's company is very lean, they pulled 34% profit last year. Compare that to say Oracle who pulls roughly 1-3% profit after the dirty books are cleaned up.

 

[pitbullstl]

quote:
--------------------------------------------------------------------------------

Most businesses fail because they are undercaptialized (not enough money) not because they are bad ideas.

--------------------------------------------------------------------------------

Not entirely accurate at all. I've seen many well funded companies die out quickly, because they throw money at solutions instead of use creative [read cheaper] solutions.

Well funded start-ups tend to not only throw money at solutions but they also over-market and market improperly. Not to mention they also tend to be top-heavy, you know too many chiefs- not enough indians....

Running a lean shop is easy and leaner shops pull a wider profit margin.

My brother's company is very lean, they pulled 34% profit last year. Compare that to say Oracle who pulls roughly 1-3% profit after the dirty books are cleaned up.

Were not talking big business here....that is why my response is what it was

 

[Code]

Were not talking big business here....that is why my response is what it was

I'm talking about start-ups.

Just referencing Oracle to demonstrate how much better it is to run a lean shop.

 

[dawookie]

Maybe Ill scrap all this and open a restaurant called "Punky's"
and decorate it just like the restaurant that Henry opened for Punky Brewster.. Or I could open the "Peach Pit" and have all the rich kids hang out there after school.

Ive grown up watching my dad open several businesses.. some have done very well and others have not.. I understand that it takes a lot of planning and $$ to really get it off the ground.

There have been some excellent posts regarding this topic..

I don't think it is a bad idea.. none of the details are set in stone.. with a roomful of computers and a nice location one could try many of the things mentioned in this thread. maybe smoothies or coffee gets them in the door, and then keep them interested with cutting edge technology..

Its even possible to do the kiosk thing that Xbiker mentioned.. South Fla is full of people with connections to south america.. setting up a cheaper way for these people to call their families could be another feature to set up.

This isnt an alternative to using the internet at home.. this is a place to go for atmosphere and technology..

 

[Code]

This isnt an alternative to using the internet at home.. this is a place to go for atmosphere and technology.. [/B]

Unless you found the proverbial "technology tree" having a place that will attract nerds (your target demographic) based on technology ain't gonna be cheap nor easy.

Plus the nerds will be the windows variety.