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Starting an internet cafe business can be a challenging task, especially if you lack entrepreneuring experience. However, devising a business plan will greatly facilitate you along the way. First of all, it will help you to gather many important information and facts, come up with a variety of internet cafe business ideas, decide on the format, consider pros and cons of this business, and even think about its future development. When getting down to work, the first questions coming to your mind might be whether it is a profitable business, how much does it cost to open an Internet cafe or what equipment do you need to start an internet cafe? This article probably won't furnish you with a full answer, rather it will give you a general description of internet cafe business, while adding more questions for you to consider.
An Internet cafe (also cybercafe) is by no means new, yet a still relevant idea. The service of providing the public with a PC along with access to the Internet for a charge has been in expanding request since a long time ago. The first online cafe was launched in 1988 in Seoul and had only two 16-bit-computers connected to the online system of networks. Today internet cafes can be found all around the globe, while their purpose has evolved from basic webmail and instant messaging to multiplayer gaming. Since modern games often require modern computers and expensive gadgets more and more gamers prefer shared-access models over personal ownership.
Depending on location, target audience, and social agenda of the proprietors, cybercafés come in a wide range of formats and can be quite a profitable business. Internet cafes also appear as gaming lounges, cybersports arenas, or PC bangs - equipped with VR headsets, gaming consoles like Xbox and Playstation, and broadcasting eSports tournaments on a big screen.
The majority of the entrepreneurs, engaged in this field are men of 22 - 50 years old, who understand computers at the level between the advanced user and system admin. Most of them also enjoy playing online games, keep abreast of new developments in the realm of computers and gaming equipment, be up to date with the latest developments in the cyber industry, follow the news about gaming teams and tournaments. As a rule, these people don’t have a wage job. Their work is focused on Internet cafes, gaming lounge business, bets, and sometimes other related businesses. Usually, these people start with a small budget and gradually increase their income.Those who managed to properly organize their business and make a profit, begin to open a chain of Internet cafes, some sell franchises.
On rare occasions, there are businessmen, possessing entrepreneurial experience from other projects, with a million-turnover, who open Internet cafe out of curiosity and desire to try something new. In this case, they invest a lot of money at once. Often, these business owners are interested in holding tournaments in specially equipped cyber arenas.
There are also those who don't know anything about this kind of business, rather they’ve been told that opening an Internet cafe business is a way to make money easily and fast.
No matter which group you belong to if you are considering launching an Internet (cyber) cafe you will need to devise a business plan. Hereby we introduce an example of an internet cafe business plan, which can be modified according to your geographies and goals.
Before establishing a business it is always useful to make up a list of advantages and disadvantages. We have gathered some of them, which are relevant for an Internet cafe business, yet keep in mind, that it might look different in each case, depending on the particular market and the entrepreneurial experience of yours.
Cons:
Pros:
Think here on your step-by-step plan or proprietary system. List a complex of providers, suppliers, processes, tools, or systems that you own, granting your internet cafe a benefit or competitive advantage. As a basic think of the following:
Here it is relevant to remind that provided you go with the franchise option, the proprietary system as well as the main cyber cafe requirements will be provided by franchisor for you to use. Of course, the terms and conditions might be different depending on the agreement, but the fundamental restrictive unit for the beginning you will get in most of cases.
What are your objectives? (define your goals) Last but not least - schedule your goals. Elaborate some plans regarding sales, revenue and profit you intend to make. Devise a roadmap of future development of your business. Think of your goals in terms of short-and long-time perspectives. Draft them for 1-year, 2-years, 5-years time span or longer. While setting your goals on the paper use the rule of S.M.A.R.T. In other words, keep your goals Specific, Measurable, Achievable, Relevant and Time-bound.
togather 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.