The Advantages and Disadvantages of Starting an Internet Cafe
Many people hate working for a boss and aspire to own their own business. They value not only the potential for monetary success but the independence. But one issue that comes up is that the amount of choices are overwhelming. There are so many types of businesses to start that wannabe entrepreneurs don’t know where to start. One popular idea is an internet cafe. As with any business, there are advantages and disadvantages to starting one. Here are some things to think about before making the first move.
The advantages of an internet cafe are numerous. Probably the biggest one is the low startup cost. The biggest limiting factor for aspiring entrepreneurs is the lack of capital. Internet cafes are relatively inexpensive to start. Computers are cheap. The labor does not need to be skilled. Furnishings do not have to be expensive. This is in great contrast to a restaurant, which usually requires special equipment, extensive refurbishing and a larger area and amount of employees. A franchised restaurant would also require paying the franchise fee.
Second, there are many ancillary revenue opportunities. The most obvious one is selling internet time. But you can also target gamers, by buying some high-end computers and charging more. You can also sell food and drinks (coffee is a popular option) and computer repair services. These multiple streams of income will help stabilize your revenue base.
There are several disadvantages to starting an internet cafe. Since the startup costs are so low, the market is extremely competitive. Many people consider an internet cafe to be a commodity service and will go with a new store if it is cheaper or if the connection is faster.