(List here all factors that have been identified)
(Think on what impact each of the identified factors has on your business?)
Additionally, you can make a SWOT analysis to identify strengths, weaknesses, opportunities and threats for your business.
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.
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:
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.
We are living in a digital age where access to the internet and social media are no longer a luxury. That is why the internet café business is a lucrative business to start today. An internet café is a shop designed to primarily provide fast, reliable, and safe internet access to customers and other related services like printing. Internet cafes can also be called cyber cafes. The importance of internet cafes is apparent. There are many people who do not have what it takes to set up internet connectivity at their homes. Such people get to participate in the digital economy via the use of internet café services.
Operating an internet cafe business is a lucrative and profitable venture. The internet cafe has become the go-to place for people who wish to do their surfing and administrative work without having to go home. For some corporate types, it is a lunchtime pastime where they can surf without facing the scrutiny of their employers. The internet cafe offers a very good gateway for people with limited capital and an ambition to do business in technology. All the positive things about an internet cafe business do not diminish its demands and specifications. You have to be on point in terms of your customer care. Good understanding of the business is a must, otherwise you will be swallowed up by the competition. This article will outline how to start the internet cafe business, and the internet cafe business plan – PDF, Word & Excel.
Conducting a market research for your internet café business is imperative. You will get to study your intended target market to see if there is need for an internet café. You will have to check to see if there are any already existing internet cafes. If there are, these will be invaluable case studies from which to draw essential insights. Taking time to visit them and use their services will give you a feel of the market. Your market research can also involve looking through current statistics and trends regarding internet access. You have to take this market research seriously because if you do not, you might regret later.
You should select locations that are well within the vicinity of your potential clients. For example, you may locate your internet cafe business in shopping centers & malls, near offices, schools, universities and airports. This is where the clientele is likely to come from so you are in the best position to gain access to them. Test the internet quality because nobody is going to pay for anything less than full-time high speed services. Good internet is both fast and reliable. It is never a good idea to congregate with other internet cafes. That essentially means that you are inviting competitors to take away your potential customers. You need a good power source and a backup generator. In the age of green technology, try to make use of energy savings when operating your internet cafe business. For example, the use of solar power in hot climates is ideal.
The internet cafe space can be leased or bought. The advantage of leasing is that you are not saddled with a mortgage. If you want to move your internet cafe business for any reason, it is merely a case of giving notice at the end of the month. Moreover, not having a mortgage reduces your initial capital requirements. The money that would have been spent on purchasing an office space could be distributed between leasing and other essential business expenses. Meanwhile the companies that let out office space tend to provide a number of important peripheral services. These include a post office box, administrative support, toilets and a cafeteria. That means that you can give your customers a very rich experience and convenience without spending too much money on it. The costs of purchasing or leasing the premises should be included in the internet cafe business plan.
Company registration and relevant licenses.
To be a recognized internet café business you must register it first. This refers to your basic business or company registration. Then you are usually obligated to get an operating license for your internet café shop. Maybe you could be renting it, buying it, or building it; an operating license will be needed. Depending on the nature of your internet café services, there might software licenses you must get. It is common practice for people to use bootlegged software. However, it would be wise to use only properly licensed software in your internet café.
The internet café business is usually characterized by costly infrastructure, furniture, and gadgets. The value of these items necessitates the importance of getting insurance cover. There are many possible incidents that can occur so getting insured is prudent. Your internet café operations must have their own business bank account. This makes financial management easier. Plus you protect yourself from being personally liable if things go south. That separation protects your personal finances and assets.
You need computers and internet routers for your internet cafe business. An internet cafe can have anywhere between two and an large number of computers. The number of computers to buy depend on the size of the premises, your budget, and your target market. You might consider including some peripheral items such as a scanner, printer, photocopier, binder and facsimile. These are services that might be of benefit to the people that come to your internet cafe. In effect you are enriching their experiences at your establishment without requiring them to travel somewhere else. The primary service for an internet cafe is internet surfing & browsing. The other services that you can offer in your internet cafe include printing, photocopying, binding, typing, lamination, selling computer accessories, snacks and beverages. If you are selling drinks & refreshments that means you will require a refrigerator. It’s also wise to offer gaming in your internet cafe as that attracts a lot of young customers. Your internet should be fast and reliable – so take your time when selecting an internet service provider. This is key to the success of an internet cafe business. The cyber cafe business plan should include the costs of purchasing the equipment that you require.
Depending on the level of activity, you may want to have an electronic ticketing and point of sale system. This ensures that there are no long queues for service with people complaining that they have been overlooked. Some cyber cafes even use a bar-code scanner. This way, they can audit every single product that is sold. The normal unit of measurement for internet services is the amount of time that the user spends. You can use other methods such as a token system. Do not forget to install some air-conditioning. The equipment is bound to heat up considerably in such a confined space, with such heavy-duty usage. Inevitably you may have to hire a technician to configure and maintain the different computers. It is likely that there will be issues from time to time which require professional attention.
Charging customers for internet access.
The internet café business model is simple straightforward. Customers come to pay to access the internet. This is often based on charges per 30 minutes or an hour. There can be discounted rates when someone pays for a substantial number of hours. There is also an approach where a client opens up an account which they can load up with credit. That way they can come in several times to access the internet. Once the credit is used up they can load more and so forth. Another different approach is that a client pays for data instead of a time slot. This means they get to purchase a certain amount of data e.g. 15 gigabytes. The data can have an expiration time or date or it can be carried over to the next time they log in. This shows you that there are many ways to use in revenue generation pertaining to internet access.
When running an internet café you can also make lots more money from other products or services. For instance, you can include computer repairs and sale of parts or accessories. You can also venture into mobile device and accessory sales and repairs. You can include a gaming arcade for all sorts of games. You can include vending machines or general sales of refreshments. You could provide on-demand services such as typing, printing, and photocopying, amongst others. Another revenue generator can be providing a co-working space. Depending on the size of your location you can rent work space, work desks, or rooms. These are just some of the many ways to make money running an internet café. It is unwise to solely just focus on providing internet access services.
You will need to set out the terms of service which are publicly available. For example, some internet cafes do not allow the consumption of food and drinks. Others place restrictions on the content that can be searched, processed and downloaded. The state will also take an interest in internet activity and you may therefore be asked to maintain records. These rules may temporarily inconvenience some of your customers. However, they are essential in order to ensure that the entire process runs smoothly and that you do not get into trouble with the regulators.
Some cyber cafe business owners take preventative measures by warning their prospective clients about the rules. They also install a monitoring system that will tell them when things are going wrong. Beware that there are some clients that will want to take advantage of a weak system. For example, they may do all their office downloads in the cafe whilst restricting the payments that they make. This means that your bandwidth is facing pressure and yet you are not getting paid for it.
The number of employees required depends on the size of your internet cafe. This is not a labour intensive business. At the minimum you need internet cafe assistants. Their job include:
Other staff positions include manager, IT Technician, finance & accounting staff, sales & marketing staff, though most of those can be done by one person for a small internet cafe business. The cyber cafe business plan should cater for the salaries of all your employees.
An internet café business has two broad set of potential customers. There are people who are unfamiliar with using the internet. Then there are people who are substantially familiar with the internet. Your marketing efforts seek to lure both sets of prospects. Breaking it down further you will be targeting students, business people, entrepreneurs, and random people. Create and spread out your digital footprint by putting up a website and social media accounts. Propagate promotional material in print and other electronic media. Good examples of these are radio, television, podcasts, skits, and newspapers. You can also participate in or contribute to strategic events where your target pools will be there. Put up posters and banners inside and outside the internet café.
The market for internet services is huge world-wide. More and more people are using the internet daily. Potential customers for an internet cafe include students, gamers, job seekers, business people, freelancers and professionals from various fields. It’s essential that you offer fast internet so as to attract more customers. Your employees should be knowledgeable and friendly. A proper marketing strategy should be included in your internet cafe business plan. This is one of the least capital intensive businesses. The internet cafe business is a huge income earner for individual entrepreneurs. It also employs countless numbers of people in the developing world. The internet cafe business is particularly lucrative in the developing world. This is because many people have some knowledge of the internet but are not rich enough to purchase their own personal computer for home use.
Offer discounts for heavy internet users. Provide an account-based internet access for repeat customers. These two elements put together build customer loyalty. This is the kind of loyalty that promotes word of mouth and results in referrals. Ensure your computers or gadgets in general, are up to standard all the time. Ensuring the internet speed is fast and reliable is pertinent. Couple that with fast processing and reliable gadgets as well. That will keep customers coming back to your internet café. Diversify your revenue by offering as many services as you can. This is the most important key in increasing your profits. You internet café must go beyond by offering additional products and services. That is how you get to start a profitable internet café business. It is worth reiterating that market research must be thorough here. This also implies that your choice of location will be paramount. The internet café business can be quite lucrative. You just have to ensure you have a sustainable market for it.
For an in-depth analysis of the internet cafe business, we encourage you to purchase our well-researched and comprehensive internet cafe business plan. We introduced the business plans after discovering that many were venturing into the internet cafe business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global internet cafe business plan will make it easier for you to launch and run your internet cafe business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for an internet cafe business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the internet cafe business.
The cyber cafe business plan can be used for many purposes including:
The business plan for an internet cafe includes, but not limited to:
The internet cafe business plan package consists of 4 files
The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change.
Click below to download the Contents Page of the Internet Cafe Business Plan (PDF)
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Written by Dave Lavinsky
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 >
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.
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.
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.
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.
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:
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:
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:
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.
Don’t you wish there was a faster, easier way to finish your business plan?
With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
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
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:
Think about ways you will outperform your competition and document them in this section of your 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:
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.
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.
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.
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 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.
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:
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.
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.
Starting an Internet Cafe business is easy with these 14 steps:
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.
Don’t you wish there was a faster, easier way to finish your Internet Cafe business plan?
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how Growthink’s business plan services can give you a winning business plan.
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Starting an internet cafe business in South Africa is one of the most profitable ventures. The demand for Internet services has created an opportunity for people to start internet café businesses. Internet cafés charge clients based on the time they spend accessing the internet. It can be per minute or per hour.
Before writing a business plan, it is always best that you research the market. By researching the market, you will get to know the services that are in demand, your target market, the challenges in the market, and how you can address them. Once you have researched the market, it becomes very easy to write a business plan.
To make it in the internet café business in South Africa, you need to plan your business well before getting started. With a good business plan , you get to prepare for the worst scenarios that may come up. Your cybercafe business plan should have the following:
You need to identify a good business location for your internet cafe business. An internet cafe business is best suited for areas with a high population and foot traffic. Locating your business near an institution like a college can also help you get more customers.
Set up your internet café in areas where people need internet services. Among such areas are high-income areas. You can also start a cybercafe in townships and near offices in towns. Make sure your target customers are people who need internet services, like students and people working in offices.
There are many cybercafé services you can offer in South Africa, depending on your target customers and the demand. Researching the market before starting an internet cafe will help you determine what services to offer in your internet cafe. Some of the services you can offer include:
Based on the services you will be offering in your internet cafe business, they will dictate what equipment you require. If you plan to offer internet services, scanning, printing, and photocopying services, you will need the following equipment:.
The cost of starting a cyber cafe business in South Africa depends on a number of factors, like location, number of computers, and services to offer. To start a small internet cafe business with around 5 computers, you will need between R50, 000 and R100, 000. Most of the startup costs will go into buying internet cafe equipment.
For business consultancy, strategic planning, organizational development, market research, financial management & accounting, risk management and business plan writing at an affordable fee, please reach out to us through a phone call +254728 621 138, or WhatsApp , or email: [email protected]
Starting an internet cafe business is a profitable venture in South Africa. With a good business location, proper marketing, and proper planning, you can make a lot of profits from the internet cafe business in South Africa.
Starting an internet cafe business requires good planning. Make sure to get a cheap and reliable internet service provider. Also, make sure to set up your internet café in a suitable business location and target the right market. With that, you can be sure of starting a profitable internet cafe business in South Africa.
For business consultancy, business plan writing, market research, strategic planning, risk management, financial management & accounting at an affordable fee, please reach out to us through:
These days, pretty much everybody needs access to computer facilities, but not everyone can afford a home computer. Phones are great for texting and surfing, but what about when you need to send a CV to apply for a job, print out important documents to be signed or do some serious research?
Since broadband became available in South Africa, internet cafés have popped up all over the country to meet these needs. Many of these are add-ons to the fax-call-copy shops that are as familiar on African city streets as hair salons and fast-food kiosks.
In addition to offering a valued service to everyday South Africans, internet cafés offer opportunities for budding business owners. Just one example of a start-up success in this industry is the story of Luvuyo Rani, who started the Silulo Ulutho Internet Café in Khayelitsha with his brother back in 2004. Today the award-winning business boasts several branches in the Western and Eastern Cape – with plans to expand even more.
Starting an internet café is not as hard as it may sound. The main things you’ll need are a venue, computers and internet connectivity. Here are some other factors to consider…
1. First up, research the viability of your business idea and draw up a business plan. A number of local organisations can help you do this. Try the Small Enterprise Development Agency (SEDA) or the Department of Trade and Industry (DTI), or download the free Business Plan Book from smetoolkit.org.
2. Research what a typical internet café offers, and decide how you will position yourself in the market. Will you do something unique to stand out from competitors?
3. Brush up on your business skills. Do you know enough about accounting, budgeting and financial planning to run a business? It may help to find a mentor. The National Youth Development Agency runs a volunteer mentorship programme for young entrepreneurs, but there are many other avenues you can try if you no longer qualify as youth. Start here .
4. Decide: Will you be a sole trader, company or partnership? Then register your business so that you follow the statutory requirements and keep on the good side of the tax office. If you register as a company with the Companies and Intellectual Property Registration Office (CIPC), you’ll automatically be registered with SARS. If you decide to go the sole proprietor or partnership route, you need to registers with SARS directly.
5. Consider where to set up your internet café. Do you want to serve a particular community? Will you need retail space? Are you in a position to buy space, or will you need to rent? If so, can you afford the rental as part of your overheads? Don’t forget to check the municipality by-laws in the area you want to start your café to make sure you abide by local regulations.
If buying or building trading space is likely to be too much for your budget, consider alternatives to fixed “brick and mortar”. For example, converted shipping containers are growing in popularity as both office and retail spaces.
At Big Box Containers, we specialise in converting high-quality shipping containers for a range of purposes, including computer centres and internet cafés .
Each container can be fully customised to suit your needs, for example with suitable work surfaces, connection points, lighting and security features.
Added advantages are that shipping containers are fully portable, as well as weather and intruder-resistant. And if your internet café business takes off and you want to scale up to meet demand, you can simply “add on” another container to expand your operations.
6. Make all-important decisions about the hardware, software, internet-service provider (ISP) and network options you’ll use. Computer equipment can be leased, so you don’t necessarily have to invest a large sum upfront. Ideally, you want an ISP that’s reliable and offers both hosting and technical support.
If you don’t have all the necessary technical know-how, speak to IT experts. Those in the know will also be able to offer you guidance on choosing the right ISP. There are also organisations that train aspiring internet café owners on all the ins and outs.
7. Set your price points. Research the rates other internet cafés charge, keep your business plan and bottom line in mind, and consider what customers in your area may be willing to pay. Sure, you want to break even as soon as possible – but you also want to keep customers coming through the door.
8. Now you’re ready to market your business to your target audience. Set up a website (or blog-as-website) and a Facebook page, and consider placing an ad in the local paper. Hopefully, you’ve chosen a location that gets enough foot traffic for your signage to be seen and to attract walk-ins. Try get customers to subscribe to your website so you can e-mail them newsletters of campaigns or specials.
Also try to offer something different. Something every smart internet café owners should consider is adding gaming to your offering. Online gaming is a growing industry, and gamers are known to play for hours. Good news for your business!
Click through to find out how we convert shipping containers to computer centres.
Related articles.
Business plan templates | services.
8.1 Mortgage/Rent Requirements
Premises in CBD leased at rental of R6 000 a month. Two year lease with an option to renew for a further one year. Escalation: none in year two; 7% in year three.
8.2 Regulations & Permits
The following are required:
8.3 Agreements
Agreements are to be entered into with the following to ensure continuity of maintenance and support in the medium term:
8.4 Trademarks & Copyrights
The Big Surf Internet & Lifestyle Café! name, logo and trademark will be registered in South Africa.
9. FINANCIAL PLAN
9.1 Start-up Capital
Analysis of Start-up Costs
Legal & Accounting fees: | R 5 000 |
Furniture & fittings: | R 25 000 |
Equipment: | R 60 000 |
Stationery: | R 1 000 |
Advertising & marketing: | R 9 800 |
Other: | R 10 000 |
9.2 Fixed business costs
Analysis of Monthly Expenses
Rent: | R 6 000 |
Utilities: | R 5 000 |
Wages & salaries: | R 34 600 |
Insurance: | R 800 |
Bank charges: | R 350 |
Bank loans: | — |
Repairs & Maintenance: | R 1 000 |
Vehicle Expenses: | R 3 000 |
Travel: | R 1 000 |
Telephone: | R 600 |
General Supplies: | R 800 |
Website & IT backup: | R 2 500 |
Marketing & Advertising: | R 1 000 |
Miscellaneous: | R 2 000 |
9.3 Break-even Analysis
In year one, a break-even scenario would be adequate. To break even, the business requires a turnover of approximately R60 000 per month, which equates to R2 400 per day (assuming a six-day week and 25 working days per month). This could comprise the following mix of average daily sales:
Internet / Wi-fi: | R1 500.00 |
Coffee shop/snack bar: | R 600.00 |
Gaming (non-internet): | R 200.00 |
Photocopier | R 25.00 |
Other: | R 100.00 |
9.4 Important Assumptions
Current interest rate | 8.5% | 9.0% | 9.5% |
Tax rate | 28% | 28% | 28% |
Electricity tariffs | — | +8% | +5% |
Av. internet / Wi-Fi spend | R50 per customer per visit | Unchanged | +5% |
Av coffee shop spend | R30 per customerper visit | +10% | +10% |
Av. spend on non-internet gaming | R5 000 per month | +10% | +10% |
Av. spend on repair & upgrade services | R2 500 per month | +8% | +12% |
9.5 Projected Profit & Loss (first 12 months of operation)
Annual Gross Revenue: | R821 200.00 |
Less Start-Up Costs & Overheads: | R813 600.00 (R109 800 + R703 800) |
R 7 600.00 |
9.6 Projected cash flow
* See Section 13 (Appendices) for full Projected Cash Flow statement
9.7 Projected balance sheet
* See Section 13 (Appendices) for full Projected Balance Sheet statement
9.8 Business Loan / Start-up Capital
No bank loan is being sought. The owner will fund this from his own savings and via private loans from family.
10.0 Personal financial statement of owner
* See Section 13 (Appendices) for full Personal Financial Statement of owner
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Written by Dave Lavinsky
You’ve come to the right place to create your Internet Cafe business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Internet Cafe businesses.
Below is a template to help you create each section of your Internet Cafe business plan.
Business overview.
Internet Coffee Cafe is a startup internet cafe company located in Tulsa, Oklahoma. The company is founded by Kurt Stands, who has experience managing internet cafes. Now, with the expertise of knowledge and business acumen, he has determined he can confidently start and effectively grow a successful internet cafe company. Kurt believes his experience of strategic growth, marketing skills, financial capabilities, and wide and deep knowledge of internet installation and maintenance practices will provide everything needed for long-term growth and profitability.
Internet Coffee Cafe will provide a comprehensive array of products and services for a wide variety of clients. Internet Coffee Cafe will be the one-stop internet shop, providing services and products for each customer, while supporting the strategic goals of the company. Internet Coffee Cafe will be the ultimate choice in Tulsa for customers, as the Internet Coffee Cafe ensures that not only will high-speed internet be on the menu, but a variety of beverages and light meals will be offered, as well.
The following are the products and services that the Internet Coffee Cafe will provide:
Internet Coffee Cafe will target all individuals in Tulsa, Oklahoma. They will target individuals who need internet service, such as students, apartment renters, and those in outlying areas of Tulsa, such as on ranches and farms. They will target online social game circles of two or more people. They will target schools and new businesses. They will target those who enjoy a cafe atmosphere while working. They will target individuals seeking a light meal or beverage in a midtown location.
The Internet Coffee Cafe will be owned and operated by Kurt Stands. He recruited his former associate, Steve Thoresen, to take the role of manager of the internet cafe. He also recruited his former executive assistant, Carla Manson, to be the back-office operations assistant.
Kurt Stands is a graduate of the University of Oklahoma with a bachelor’s degree in marketing. He has 5 years of experience as a staff member in his first internet cafe position and 5 years of experience in a different internet cafe as the cafe manager. He’s earned a reputation among his customers as being reliable, helpful, and always willing to go the extra mile. Because of this, several customers have already committed to follow him to the new Internet Coffee Cafe.
Steve Thoresen will assume the role of manager of the Internet Coffee Cafe, where he will handle customer requests, assist with internet connections and oversee the food and beverage area of service. Providing an outstanding customer experience will be his main task. Steve has over 6 years of experience as an internet cafe manager and customers frequently compliment the service provided. Steve’s friendly personality and commitment to excellence will serve the Internet Coffee Cafe very well.
Carla Manson, a former work associate with Kurt Stands, will take on the position of back-office operations assistant. This will include overseeing the online social game venues for groups of two or more users, inventory of food, beverage ingredients, kitchen tools and equipment, and all supplies related to the cafe. Her role will also include operation of the internet service, computer systems, and related software and hardware.
Internet Coffee Cafe will be able to achieve success by offering the following competitive advantages:
Internet Coffee Cafe is seeking $200,000 in debt financing to launch its internet cafe. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
The following graph outlines the financial projections for Internet Coffee Cafe.
Who is internet coffee cafe.
Internet Coffee Cafe is a newly established, full-service internet cafe in Tulsa, Oklahoma. Internet Coffee Cafe will be the most reliable, cost-effective, and enjoyable choice for any individual who requires internet service in the city and the surrounding communities. Internet Coffee Cafe will provide a comprehensive menu of internet access, in addition to a comfortable environment and an online social game venue. In addition, a cafe that serves light meals, snacks and beverages will be on site. Their full-service approach includes a relaxing and enjoyable environment offering internet service.
Kurt Stands will oversee Steve Thoresen and Carla Manson in their managerial capacity roles. In addition, he will hire the wait staff for the cafe and other personnel who will assist within the cafe. The team of professionals are highly qualified and experienced in operating internet cafes and the environments that make the experiences highly pleasurable. Internet Coffee Cafe removes all headaches and issues of finding and using the internet, and the cafe will ensure all customers are taken care of expeditiously while delivering the best customer service.
Internet Coffee Cafe is owned and operated by Kurt Stands, who has an extensive degree of experience in managing internet cafes. He holds a marketing degree from the University of Oklahoma and he has successfully managed internet cafes with online social games and food service in various locales. Kurt’s tenure as a manager has given him the skills and technological knowledge to venture out on his own, starting his own company. He has gained the trust and commitment of several former customers, who are now eagerly awaiting the opening of the Internet Coffee Cafe.
Since incorporation, Internet Coffee Cafe has achieved the following milestones:
The following will be the services Internet Coffee Cafe will provide:
The internet cafe industry is expected to grow over the next five years to over $22 billion. The growth will be driven by online gamers who enjoy the social aspect of gaming together and the competition the games bring. The growth will additionally be driven by the number of consumers who enjoy working out of their own home environment while remote from the office. The growth will also be driven by technology and innovation, as new processes will result and new applications of the internet will be discovered. Growth will be driven by consumers who work in the central portion of the city and will appreciate a midtown cafe that caters to luncheon guests, serving light meals that allow the consumer to briefly take a break and return to the workplace.
Costs will likely be reduced as additional online games and educational uses for high-end computers and high speed internet are innovated using technology and software. With the growing audience and differentiation of the products offered, costs are gradually reduced.
Demographic profile of target market.
Total | Percent | |
---|---|---|
Total population | 1,680,988 | 100% |
Male | 838,675 | 49.9% |
Female | 842,313 | 50.1% |
20 to 24 years | 114,872 | 6.8% |
25 to 34 years | 273,588 | 16.3% |
35 to 44 years | 235,946 | 14.0% |
45 to 54 years | 210,256 | 12.5% |
55 to 59 years | 105,057 | 6.2% |
60 to 64 years | 87,484 | 5.2% |
65 to 74 years | 116,878 | 7.0% |
75 to 84 years | 52,524 | 3.1% |
Internet Coffee Cafe will primarily target the following customer profiles:
Direct and indirect competitors.
Internet Coffee Cafe will face competition from other companies with similar business profiles. A description of each competitor company is below.
Goofy’s Gamer Cafe hosts online social games for interactive play. The company is owned and operated by Chad Edwards, a former manager of an internet cafe for seven years. He offered premium customer experience while learning to handle operations, back-office inventory, customer relationships and other strategic aspects of the industry. The company is housed in Tulsa, Oklahoma and caters to those who enjoy competitive online ranching and cowboy video games.
Goofy’s Gamer Cafe caters to a young demographic, ages 15 to 30, and offers beverages and snacks as an additional avenue to gain revenue. The staff consists of a manager, Chad Edwards, three staff hostesses and three beverage and snack servers. The company logo is, “Satisfaction Equals Sales,” which indicates that by keeping their customers satisfied, the customers will purchase additional game play and products.
The Tulsa Internet Business Cafe, located within a few blocks of the Tulsa courthouse and judicial system departments, caters to professionals and business users, such as attorneys and lawmakers. The Tulsa Internet Business Cafe has developed a very high-speed internet service that outshines any government-provided internet connection; therefore, the Tulsa Internet Business Cafe is often packed with professionals who are stretched for time. The Tulsa Internet Business Cafe is owned by Jack Adams who is the previous owner of an internet cafe in a suburb of Tulsa. He sold that internet cafe and brought his concept to the inner core of business areas in Tulsa, where he has provided customers with excellent internet connections and service for over five years. In addition, his business offers document printing, scanning, and small conference rooms.
The Mid-City Internet Cafe was started by Tracy Harrington in 2019 to meet the needs of small businesses. She innovated the combination of a traditional internet cafe with co-working spaces, which allows patrons to work together as needed, or individually, if preferred. Offering comfortable furnishings and a quiet and serene environment, the Mid-City Internet Cafe includes high-speed internet and other professional amenities in one distinctive workspace. Included are printers, coffee makers, food vending machines in a kitchenette, and desk items such as pens, pencils, and staplers.
The Mid-City Internet Cafe is most popular with freelance professionals who are in downtown Tulsa and need a workspace for a morning or afternoon. Entrepreneurs and remote workers often visit the Mid-City Internet Cafe, as well, due to the quiet and serene atmosphere.
Internet Coffee Cafe will be able to offer the following advantages over their competition:
Brand & value proposition.
Internet Coffee Cafe will offer the unique value proposition to its clientele:
The promotions strategy for Internet Coffee Cafe is as follows:
Word of Mouth/Referrals
The staff of the Internet Coffee Cafe has built up an extensive list of contacts over the years by providing exceptional service and expertise to their clients. The contacts and clients will follow them to the new company and help spread the word of Internet Coffee Cafe.
Professional Associations and Networking
Kurt Stands and Steve Thoreson will join the professional associations within Tulsa that will help drive business to the company. In addition, they will offer to take on official roles within those associations to further the name of the Internet Coffee Cafe. They will both network within the national trade groups and during trade shows.
Print Advertising
Print advertising will be focused on individuals who may not currently have high-speed internet in their homes or workplaces. Direct mail pieces will announce the opening of the company and offer discounts to “try out” the Internet Coffee Cafe.
Website/SEO Marketing
The Internet Coffee Cafe will fully utilize their website. The website will be well organized, informative, and list all the services that are offered. In addition, online reservations can be made for a single workspace or an online game group of two or more individuals. The website will also list their contact information and meals and snacks for sale. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Internet cafe” or “Online gamers near me,” Internet Coffee Cafe will be listed at the top of the search results.
The pricing of Internet Coffee Cafe will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
The following will be the operations plan for Internet Coffee Cafe. Operation Functions:
Internet Coffee Cafe will have the following milestones completed in the next six months.
Carla Manson, a former work associate with Kurt Stands, will take on the position of back office operations assistant. This will include overseeing the online social game venues for groups of two or more users, inventory of food, beverage ingredients, kitchen tools and equipment, and all supplies related to the cafe. Her role will also include operation of the internet service, computer systems, and related software and hardware.
Key revenue & costs.
The revenue drivers for Internet Coffee Cafe are the fees they will charge to customers for their services. .
The cost drivers will be the overhead costs required in order to staff Internet Coffee Cafe. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Internet Coffee Cafe is seeking $200,000 in debt financing to launch its internet cafe. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
Income statement.
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
Expenses & Costs | ||||||
Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
ASSETS | ||||||
Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
LIABILITIES & EQUITY | ||||||
Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
CASH FLOW FROM OPERATIONS | ||||||
Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
CASH FLOW FROM INVESTMENTS | ||||||
Investment | ($180,950) | $0 | $0 | $0 | $0 | |
Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
CASH FLOW FROM FINANCING | ||||||
Cash from equity | $0 | $0 | $0 | $0 | $0 | |
Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
What is an internet cafe business plan.
An internet cafe business plan is a plan to start and/or grow your internet cafe business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your Internet Cafe business plan using our Internet Cafe Business Plan Template here .
There are a number of different kinds of internet cafe businesses, some examples include: Internet kiosks, Cyber cafe, Gaming cafe, and Commercial cafe.
Internet Cafe businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
Starting an internet cafe business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster. 1. Develop An Internet Cafe Business Plan - The first step in starting a business is to create a detailed internet cafe business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your internet cafe business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your internet cafe business is in compliance with local laws. 3. Register Your Internet Cafe Business - Once you have chosen a legal structure, the next step is to register your internet cafe business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 4. Identify Financing Options - It’s likely that you’ll need some capital to start your internet cafe business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 7. Acquire Necessary Internet Cafe Equipment & Supplies - In order to start your internet cafe business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your internet cafe business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
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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.
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.
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
Financing needed.
Our financing has already been secured as follows:
Problem worth solving, our solution.
JavaNet will provide full access to email, WWW, FTP, Usenet and other Internet applications such as Telnet and Gopher. JavaNet will also provide customers with a unique and innovative environment for enjoying great coffee, specialty beverages, and bakery items.
JavaNet will appeal to individuals of all ages and backgrounds. The instructional Internet classes, and the helpful staff that JavaNet provides, will appeal to the audience that does not associate themselves with the computer age. This educational aspect will attract younger and elderly members of the community who are rapidly gaining interest in the unique resources that online communications have to offer. The downtown location will provide business people with convenient access to their morning coffee and online needs.
Market size & segments.
Target Market Segment Strategy
Market Segmentation
JavaNet’s customers can be divided into two groups. The first group is familiar with the Internet and desires a progressive and inviting atmosphere where they can get out of their offices or bedrooms and enjoy a great cup of coffee. The second group is not familiar with the Internet, yet, and is just waiting for the right opportunity to enter the online community. JavaNet’s target market falls anywhere between the ages of 18 and 50. This extremely wide range of ages is due to the fact that both coffee and the Internet appeal to a variety of people. In addition to these two broad categories, JavaNet’s target market can be divided into more specific market segments. The majority of these individuals are students and business people. See the Market Analysis chart and table below for more specifics.
Competition from online service providers comes from locally-owned businesses as well as national firms. There are approximately eight, local, online service providers in Eugene. This number is expected to grow with the increasing demand for Internet access. Larger, online service providers, such as AOL and CompuServe are also a competitive threat to JavaNet. Due to the nature of the Internet, there are no geographical boundaries restricting competition.
Our advantages are best explained as our strengths:
Knowledgeable and friendly staff. We’ve gone to great lengths at JavaNet to find people with a passion for teaching and sharing their Internet experiences. Our staff is both knowledgeable and eager to please.
State-of-the art equipment. Part of the JavaNet experience includes access to state-of-the-art computer equipment. Our customers enjoy beautiful flat-screen displays, fast machines, and high-quality printers.
Upscale ambiance. When you walk into JavaNet, you’ll feel the technology. High backed mahogany booths with flat-screen monitors inset into the walls provide a cozy hideaway for meetings and small friendly gatherings. Large round tables with displays viewable from above provide a forum for larger gatherings and friendly "how-to" classes on the Internet. Aluminum track lighting and art from local artists sets the mood. Last, but not least, quality cappuccino machines and a glass pastry display case provide enticing refreshments.
Clear vision of the market need. JavaNet knows what it takes to build an upscale cyber cafe. We know the customers, we know the technology, and we know how to build the service that will bring the two together.
The keys to the success for JavaNet are:
Marketing plan.
As a retail establishment, JavaNet employs people to handle sales transactions. Computer literacy is a requirement for JavaNet employees. If an employee does not possess basic computer skills when they are hired, they are trained by our full-time technician. Our full-time technician is also available for customers in need of assistance. JavaNet’s commitment to friendly, helpful service is one of the key factors that distinguishes JavaNet from other Internet cafes.
A site has been chosen at 10th and Oak in downtown Eugene. This site was chosen for various reasons, including:
All of these qualities are consistent with JavaNet’s goal of providing a central hub of communication and socialization for the Eugene community.
JavaNet will invest in high-speed computers to provide its customers with a fast and efficient connection to the Internet. The computers will be reliable and fun to work with. JavaNet will continue to upgrade and modify the systems to stay current with communications technology. One of the main attractions associated with Internet cafes, is the state of the art equipment available for use. Not everyone has a Pentium PC in their home or office.
Milestones table.
Milestone | Due Date | |
---|---|---|
Mar 07, 2020 | ||
Apr 04, 2020 | ||
May 09, 2020 | ||
June 06, 2020 | ||
July 18, 2020 | ||
Aug 08, 2020 | ||
Sept 05, 2020 | ||
Oct 10, 2020 | ||
Nov 07, 2020 | ||
Dec 12, 2020 |
Our Key Metrics are:
JavaNet is a privately held Oregon Limited Liability Corporation. Cale Bruckner, the founder of JavaNet, is the majority owner. Luke Walsh, Doug Wilson, and John Underwood, all hold minority stock positions as private investors.
JavaNet is owned and operated by Mr. Cale Bruckner. The company, being small in nature, requires a simple organizational structure. Implementation of this organizational form calls for the owner, Mr. Bruckner, to make all of the major management decisions in addition to monitoring all other business activities.
2020 | 2021 | 2022 | |
---|---|---|---|
Owner | $57,600 | $58,752 | $59,927 |
Manager (0.78) | $14,400 | $48,000 | $50,400 |
Technician | $33,600 | $34,272 | $34,957 |
Part Time (6) | $129,600 | $132,192 | $134,838 |
Totals | $235,200 | $273,216 | $280,122 |
Key assumptions.
Our Key assumptions:
1 – Certain members s of the community are intimidated by the internet. They want to use email and the internet but find it intimidating. They will use the internet if there is a place that comes with someone to explain it.
2 – Students need a place to have study groups and use the internet. There are many students at the u of o, there are a shortage of resources.
3 – Certain members of the community cannot afford to own their own computer or wifi. We are happy to let them use our place for a small fee they can afford.
Expenses by month, net profit (or loss) by year, use of funds.
Our list of startup expenses are $56,000 dollars, as follows:
This business plan is prepared to obtain financing in the amount of $24,000. The supplemental financing is required to begin work on site preparation and modifications, equipment purchases, and to cover expenses in the first year of operations.
Additional financing has already been secured as follows:
2020 | 2021 | 2022 | |
---|---|---|---|
Revenue | $691,211 | $824,000 | $960,500 |
Direct Costs | $235,321 | $277,400 | $324,050 |
Gross Margin | $455,890 | $546,600 | $636,450 |
Gross Margin % | 66% | 66% | 66% |
Operating Expenses | |||
Salaries & Wages | $235,200 | $273,216 | $280,122 |
Employee Related Expenses | $47,040 | $54,643 | $56,025 |
Rent | $24,000 | $24,000 | $24,000 |
Utilities | $9,120 | $9,120 | $9,120 |
Marketing / Promotion | $48,000 | $48,000 | $48,000 |
Insurance | $7,200 | $7,200 | $7,200 |
Startup Expenses – Listed in Use of Funds | $56,000 | ||
Total Operating Expenses | $426,560 | $416,179 | $424,467 |
Operating Income | $29,330 | $130,420 | $211,984 |
Interest Incurred | $699 | $482 | $303 |
Depreciation and Amortization | |||
Gain or Loss from Sale of Assets | |||
Income Taxes | $2,004 | $9,096 | $14,817 |
Total Expenses | $664,584 | $703,157 | $763,637 |
Net Profit | $26,626 | $120,843 | $196,864 |
Net Profit/Sales | 4% | 15% | 20% |
2020 | 2021 | 2022 | |
---|---|---|---|
Cash | $103,840 | $215,760 | $407,985 |
Accounts Receivable | $0 | $0 | $0 |
Inventory | $23,115 | $27,002 | $27,002 |
Other Current Assets | |||
Total Current Assets | $126,955 | $242,762 | $434,987 |
Long-Term Assets | |||
Accumulated Depreciation | |||
Total Long-Term Assets | |||
Total Assets | $126,955 | $242,762 | $434,987 |
Accounts Payable | $4,571 | $5,154 | $5,154 |
Income Taxes Payable | $2,004 | $2,275 | $3,705 |
Sales Taxes Payable | $0 | $0 | $0 |
Short-Term Debt | $5,890 | $6,069 | $6,254 |
Prepaid Revenue | |||
Total Current Liabilities | $12,465 | $13,498 | $15,113 |
Long-Term Debt | $12,864 | $6,795 | $541 |
Long-Term Liabilities | $12,864 | $6,795 | $541 |
Total Liabilities | $25,329 | $20,293 | $15,654 |
Paid-In Capital | $75,000 | $75,000 | $75,000 |
Retained Earnings | $26,626 | $147,469 | |
Earnings | $26,626 | $120,843 | $196,864 |
Total Owner’s Equity | $101,626 | $222,469 | $419,333 |
Total Liabilities & Equity | $126,955 | $242,762 | $434,987 |
2020 | 2021 | 2022 | |
---|---|---|---|
Net Cash Flow from Operations | |||
Net Profit | $26,626 | $120,843 | $196,864 |
Depreciation & Amortization | |||
Change in Accounts Receivable | $0 | $0 | $0 |
Change in Inventory | ($23,115) | ($3,887) | $0 |
Change in Accounts Payable | $4,571 | $583 | $0 |
Change in Income Tax Payable | $2,004 | $271 | $1,430 |
Change in Sales Tax Payable | $0 | $0 | $0 |
Change in Prepaid Revenue | |||
Net Cash Flow from Operations | $10,087 | $117,810 | $198,294 |
Investing & Financing | |||
Assets Purchased or Sold | |||
Net Cash from Investing | |||
Investments Received | $75,000 | ||
Dividends & Distributions | |||
Change in Short-Term Debt | $5,890 | $179 | $185 |
Change in Long-Term Debt | $12,864 | ($6,069) | ($6,254) |
Net Cash from Financing | $93,754 | ($5,890) | ($6,069) |
Cash at Beginning of Period | $0 | $103,840 | $215,760 |
Net Change in Cash | $103,840 | $111,920 | $192,225 |
Cash at End of Period | $103,840 | $215,760 | $407,985 |
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We have attached an example internet cafe business plan, that will help you not to overlook any important information when writing a business plan. While it’s not essential to have a business plan, it will make it easier to get funding. in general a business plan will help your Potential business partners to know how their investment will be used.
Good luck ! Please not this is just an example, to help you draft your own business plan.
Starting an Internet cafe business
Pricing for internet use in an internet cafe
cybercafé or gaming café : what you also need to know
Types of business insurance in south africa
From the day an entrepreneur starts a business, he exposes himself to certain risks. Even before the first employee is hired, a business is at risk, making it important to have the right insurance in place.
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chris mbogo
Information Technology for Development
Alvaro Urrutia
International Journal of Technology …
Ian McLoughlin
Organizational Information Systems in the Context of Globalization
Brice Berinyuy
Tyrone Brackens
Simon Batchelor
The overall objective of the study was to assess the use of ICTs in facilitating domestic and international trade in Africa with special emphasis on SMMEs. More specifically, the study was aimed at addressing the following objectives: • To assess the ICT and trade policy environment (including intra-African trade); To demonstrate the potential for economic benefits of ICT utilization in the enhancement of trade in Africa; • To assess the awareness and usage of ICTs by SMMEs in Africa; and • To propose policy recommendations to governments. 1.3 The genesis of this study was the Forum on ICTs, Trade and Economic Growth, which was organized under the auspices of the Africa Node of the Global ePolicy Resource Network (ePol-NET) in partnership with the Canadian ePolicy Resource Centre (CePRC) from 14-16 March 2006 at the United Nations Conference Centre (UNCC) in Addis Ababa, Ethiopia. The focus of the Forum was to assess the economic significance of ICTs and telecommunications and determine the nature of expected economic effects on African countries. The Forum aimed to combine learning, expertise sharing (South-South and North-South), interactive dialogue, networking and business matching as the launching pad for the African ICTs, Trade and Economic Growth Initiative. One of the follow up activities agreed upon was to undertake country level research on ICTs, Trade and Economic Growth in Africa. Egypt, Ethiopia, Ghana, Kenya, Senegal and South Africa were identified to be part of the country level studies. This project was designed to contribute to the work of the AISI and build on the groundwork of the Pan-African Initiative on e-Commerce (2001) which is also supported by the findings of African Development Forum (ADF)’ 19993 and the World Summit for the Information Society – (WSIS) (2003, 2005).
Caroline B Ncube
Ebenezer Malcalm. Ph.D.
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China Information
The 18 th Annual …
Anil Bilgihan
Proceedings of the Second Biennial Conference on …
Sujata Gamage
Tansel Tercan
tewode tsegaye
Worku Tekolla
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INTERNET CAFE BUSINESS MODEL. An Internet café, also known as a "cybercafé," provides the use of computers with high bandwidth Internet access for a set price. The use of these computers is generally charged by the minute or part of an hour. The internet cafe business model is a simple one that you can implement.
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).
This is a complete business plan for an internet cafe business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the internet cafe business. Uses of the Internet Cafe Business Plan (PDF, Word And Excel) The cyber cafe business plan can be used for many purposes including:
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.
How To Start Internet Café Company In South Africa. 1. Find the right location. You know the popular real estate saying: location, location, location. That certainly applies when considering where to open your internet café. 2. Develop a business plan. Your internet café business plan should have your complete go-to-market strategy—main ...
Download comprehensive business plans for South Africa - PDF, Word and Excel. The business proposals include automated financial statements. ... Internet Cafe Business Plan - PDF, Word & Excel. R 500.00. Add to Cart. Laundry Business Plan - PDF, Word & Excel. ... Business Plan - PDF file (Comprehensive - Between 70-105 pages) Business ...
Big Surf! Business Plan for Big Surf Internet & Lifestyle Café! Prepared by: Jayden Olivier. 28 Oak River Rd, Oak View, Alberton. Tel: 088 829 6285. e-mail: [email protected]. Dream of owning an internet café? Business Owl's got just what you need to get started - a free internet café business plan template.
The written part of an internet cafe business plan. The written part of an internet cafe business plan usually consists of 7 comprehensive sections. From crafting an executive summary to presenting your financials, let's have a look at each of the key sections that compose a business plan. 1. The executive summary.
Download this free internet cafe business plan template, with pre-filled examples, to create your own plan. Download Now Or plan with professional support in LivePlan. Save 50% today ... Download as PDF Finish your business plan with confidence. Step-by-step guidance and world-class support from the #1 business planning software. Get 50% off ...
The cost of starting a cyber cafe business in South Africa depends on a number of factors, like location, number of computers, and services to offer. To start a small internet cafe business with around 5 computers, you will need between R50, 000 and R100, 000. Most of the startup costs will go into buying internet cafe equipment.
Some important steps for starting out. 1. First up, research the viability of your business idea and draw up a business plan. A number of local organisations can help you do this. Try the Small Enterprise Development Agency (SEDA) or the Department of Trade and Industry (DTI), or download the free Business Plan Book from smetoolkit.org. 2 ...
Internet Cafe Business Plan - Big Surf. Tweet. 8. LEGAL. ... The Big Surf Internet & Lifestyle Café! name, logo and trademark will be registered in South Africa. 9. FINANCIAL PLAN. 9.1 Start-up Capital. Analysis of Start-up Costs. Legal & Accounting fees: R 5 000: Furniture & fittings: R 25 000: Equipment: R 60 000:
5/1/202X - Finalize contract to lease office space. 5/15/202X - Finalize personnel and staff employment contracts for the Internet Coffee Cafe. 6/1/202X - Finalize contracts for Internet Coffee Cafe vendors. 6/15/202X - Begin networking at industry events. 6/22/202X - Begin moving into Internet Coffee Cafe.
Cash at End of Period. $103,840. $215,760. $407,985. Download This Plan. Explore a real-world internet cafe business plan example and download a free template with this information to start writing your own business plan.
EXAMPLE INTERNET BUSINESS PLAN ( THIS IS JUST AN EXAMPLE ) A GUIDE TO DRAFT YOUR OWN INTERNET CAFÉ BUSINESS PLAN. BUSINESS DESCRIPTION. Owners: The Business. Name of the business: ... One of the main attractions associated with Internet cafes, is the state of the art equipment available for use. Not everyone has a Pentium PC in their home or ...
JavaNet Internet Cafe — Sample Plan This sample business plan was created using Business Plan Pro®—business planning software published by Palo Alto Software. This plan may be edited using Business Plan Pro and is one of 500+ sample plans available from within the software. To learn more about Business Plan Pro and other planning
Example Business Plan Internet Cafe - Free download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online for free. This document provides an example business plan for an internet café and stationery business. The business will be located in an area with many potential customers like business people, students, and workers. It will provide internet access, printing, photocopying ...
Pricing for internet use in an internet cafe. cybercafé or gaming café : what you also need to know. Types of business insurance in south africa. From the day an entrepreneur starts a business, he exposes himself to certain risks. Even before the first employee is hired, a business is at risk, making it important to have the right insurance ...
Internet Cafe Business Plan Javanet Internet Café (START-UP BUSINESS) *****SAMPLE***** Executive Summary JavaNet, unlike a typical cafe, will provide a unique forum for communication and entertainment through the medium of the Internet. JavaNet is the answer to an increasing demand.
internet-café. In this business plan we have tried to make a plan to realize the internet-café and keep it running while making some profit. Furthermore this business plan will show how the internet-café itself will be built and realized. And what the expected costs and upkeep costs will be. 1.0 Zambia & Kasama Zambia Zambia is a country ...
Business document from University of South Africa, 15 pages, lOMoARcPSD|29539933 Business-PLAN- Nkoshis Internet-cafe Business Management IA (University of South Africa) Studocu is not sponsored or endorsed by any college or university Downloaded by WANDILE MODISE ATTORNEYS ([email protected]) lOMoARcPSD|29539
INTERNET CAFÉ BUSINESS PLAN BUSINESS DESCRIPTION. Owner: Jane mmakosha Ramaphoko. The Business Name of the business: Nkoshi's Internet Cafe. Location of the Business: The business will be located in Rikhotso village , Tzaneen. The reason for selecting this area for such business is due to;
INTERNET CAFÉ BUSINESS PROPOSAL - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. Cyber Angelo is an internet café business being proposed in Ibung, Villaverde, Nueva Vizcaya, Philippines. The café will provide a comfortable environment for customers to access the internet, complete assignments, and socialize.