One Day Internet Cafe Skills Development Program

Business Module

Myth: Operating an Internet Cafe is simple all you need are computers , an internet connection, a bunch of games and you start earning money

Easy to set up but the secret is in the recipe

The most important thing to bear in mind is that you must be able to do it right at

the beginning

1. You are interested in what you would be engaging in.2. You have the passion for it3. You have sufficient technical and business skills in what you are engaging in.4. You have sufficient amount of capitall at the beginning (there are no shortcuts in the internet cafe business)

Understanding the Philippine ICT Market for Internet Cafes

From the very beginning its the Internet Cafes that has made it possible for the Philippines to be included in the virtual map.

14%Computer Penetration Rate

25%DSL Penetration Rate

Filipinos Using the InternetFilipinos w ho are not usingFrequent user

Profile of Internet Users in the Philippines

Email

YM

Search

games

social netw orking

read blogs

photo sharing

blogging

internet radio

shared music

online new s

sms

online banking

online purchase

0 10 20 30 40 50 60 70

Profile of what internet cafe users are doing in the internet

Computer Hardware Requirements

Minimum number of computer units?

15 units above

Most of the time people would like to play or access the internet together in big groups.

The less computer units that you have means that you would not be able to recover the fixed cost in your

operations.

Would lessen opportunity losses from customers who will be waiting for their turn to use the computers.

Setting Up your Internet Cafe

What are the Things to Consider? 5 P's of the Marketing Mix

1. Product

What are the usual products offered by internet cafes?

Gaming and internet access

Is this really just the thing that they could offer?

Internet cafes offer a product that is so powerful and innovative that it has the ability to change

the lives of people and the community

2. Place

You might have the best possible product to offer but if you are not in the right place you could still end up as a failure.

Choosing the Right Place

Where you place your internet cafe would affect your chances of success;

1)Make sure that your target market is there.2)Make sure that you are located in a high volume

pedestrian traffic area.3)Consider the security of the place.4)If you are going to rent a place make sure that you would only do minimal construction.5)Make sure that it is large enough and well ventilated enough to cater to your needs 6)Cost related to renting or owning the place of business

3. Price

Statement do you agree or disagree

“Since the Philippines is a poor country then we should set our

prices low so that they could afford it.”

Pricing policy should reflect the following

1. the capacity of your target market2. the amenities you are offering3. it should cover both your fixed and variable cost4. It should reflect the kind of place that you would like it to be perceived by your customers

4. Promotions

Creating an awareness regarding your internet cafe – easy to do if you are a new internet cafe since definitely people most especially gamers would try out your new rig.

The problem would be on how to maintain their interest for them to stay in your internet cafe.

5. People

Pertains to two things:

Getting the right people to manned your internet cafe that could develop customer patronage

Getting the right people with sufficient technical knowledge in order to run your internet cafe properly

Financial Planning in Setting Up an Internet Cafe

In the different forums one of the most common things that we see is that would be internet cafe owners are just considering the cost of the computer hardware rather than getting the total picture.

Cost related to the start up

1. Cost of the Computer Hardware2. Cost of acquiring the licenses of the software3. the cost acquiring the rest of the equipments needed in the operations.4. the cost of the place and its renovation.5. the cost of setting up the computer system 6. have at least a 3 month provision to pay for your expenses