How to Start a Cybercafe Business l How to Start an Internet Cafe Business

Monday, April 8, 2013

How to Start a Cybercafe Business l How to Start an Internet Cafe Business

Cyber, or Internet, cafes are a gathering place for those who want to check email, chat online, play online and offline games or for those who just want to meet friends in a casual atmosphere. Cybercafes typically offer food and drinks to increase profits and to create a meeting place that customers want to return to. Providing a safe place for people to use the computer may lead to a profitable business.

Step 1

Create a business plan for your cybercafe. In the first section, outline the types of computer services and food and drink items to offer customers. Next, linventory equipment and startup costs, business insurance and permits needed. In the third section, record ways to market your cybercafe and catalog all managerial and employee duties in the fourth section.

Step 2

Register the business with your secretary of state's office. You may need to register the business with the county clerk's office in your county. Apply for a business license through the county clerk's office or by contacting your local small business administration office. Apply for an employeridentification number (EIN) provided by the IRS. Include this number on all state and federal tax return forms. Apply for a sales tax license from your state's department of revenue to accept sale tax from services and food and drink provided at your cybercafe.

Step 3

Purchase business insurance. Business insurance may include property, product and general liability to help cover the costs of damage to property, computer equipment or costs associated with a lawsuit or settlement. If you intend to hire employees, purchase worker's compensation insurance.

Step 4

Lease commercial real space large enough to accommodate computer stations, lounge areas, inventory storage and counter space for cash registers. Local commercial real estate agents can help you find available locations.

Step 5

Determine how many computer stations to create. Purchase equipment such as computers, keyboards, mouse and mouse pads, computer tables and chairs and comfy furniture for lounge areas. Purchase additional computer equipment, such as routers, a main computer to use as a server, computer virus software, computer product licenses (if offering online games to customers), electrical wires and computer cables. Sign up for web-hosting services from a reputable web host provider.

Step 6

Determine what to charge customers for computer use. You may charge by the minute, by the hour or by gaming session. Factor in web hosting and equipment maintenance costs when deciding how much to charge.

Step 7

Create a food and drink menu. Display menu items and prices in an area visible to customers. Determine how much to charge for food and drinks based on ingredients used and preparation time.

Things Needed

Computers and equipment

Internet access

Food and drink

Tip

Create a website to market your cybercafe to tourists, locals and those visiting for business. Hold gaming nights to attract regular customers.

Warning

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.

References (2)

Resources (1)

Intranetjournal

About the Author

Based in the Washington metro area, Jessica Jones has been a freelance writer since 2006, specializing in business topics. Her fiction has also been featured in publications such as "The Jamaican Observer Sunday Literary Supplement" and at websites including HackWriters. Jones earned a Master of Fine Arts in fiction writing from Lesley University.

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Monday, April 8, 2013