Start Internet Cafe Business 2

Tourists and locals, students, people of all ages in just about every walk of life love Cybercafes, WiFi Hot Spots and if you're serious about being the owner of one, this guide is for you!

We remember what it was like when we decided to open our own Cybercafe years ago. We were willing to pay anyone to help us learn all we could about this unique industry to make sure that we were successful. Realizing that there was no complete source of information available, and after years of running the store, we learned that this was not any ordinary type of business and decided to create The internet Cafe Guide. Over the years and through actual experience, we have gathered what we consider very critical secrets and useful information that pertains specifically to this industry whether you plan on a Cafe with 2 computers or over 50!

In the early 90's there were less than 100 Cybercafes. Now there are almost 17,000 in 65 countries worldwide.

If you're serious about opening your own Internet Cafe, you need to learn all you can about this unique business opportunity.

These are a few of the topics contained in the guide:

•	Choosing the correct location, decor and design for your Café
•	What type of Food & beverage services you should offer
•	Managing a successful Espresso Bar
•	How to determine what to charge for computer time
•	What type of computer equipment to purchase, and setting up a wireless network that works most efficiently for an Internet Cafe
•	Essential secrets that pertain specifically to this unique business
•	Profit through peripheral equipment: printers, photocopying,
	faxing, scanners, telephone services & more
•	Add to your Cafe income offering computer and internet classes
•	How to properly promote your Cafe
•	How to make money with computer LAN and Internet gaming
•	Video conferencing, digital camera services, Resume services
•	How to configure remote e-mail access for travelers
•	Retail products opportunities
•	Plus many more essential secrets to insure your success in the
	Internet Cafe industry!

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Start Internet Cafe Business

If you want to start Internet cafe business, here are some general guidelines and pointers to different options on software, franchises, and Internet cafe business plans.

A cybercafe is a business just like any other business, but due to the novelty of the whole industry (10 years young, as of September 1st, 2004), the basic business models are still very much in the development phase.

There have been many failures, but many successes in the cybercafe industry as well.

The most important thing is to learn from the existing cybercafes and those that failed before you open your own Internet cafe.

The name of the game is planning ahead. To organize your thoughts on how to approach opening a cybercafe, you should make a business plan.

Start Internet Cafe Business - Business Plans

Business plans serve multiple purposes. Business plans are great for:

• Organizing your thoughts on starting an Internet cafe
• Checking the viability of the business (as business plans normally include projections of profitability)
• Giving investors, prospective investors, and other related parties an idea of how the business will be run and how you are going to make money with it

There are many ways in which you can organize your business plan to start Internet cafe business, and you can use some of the available ready-made plans as the framework for your own business plan.

Generalized, the items in the Internet cafe business plan usually include:

• Stating your business goals
• Strategies you'll use to meet your business goals
• Potential problems that may confront at your Internet cafe and ways to solve them
• The organizational structure of your cafe
• The amount of financial capital required until the business becomes self-financing/profitable

Start Internet Cafe Business - Franchises

Franchises in general are businesses with pre-made business plans. You simply take the business plan along with the brand name, and start your own branch.

The benefits of using someone elses business plans and brand is that the brand may have gained recognition and the business plan may have been proved in real life.

The downside of entering a franchise to start Internet cafe business is that you may have to have significant amount of capital to enter the franchise agreement. Also, you have to follow the franchise rules in order to continue using the franchise brand.

How to Start an Internet Cafe - Business Models

When building your plan for business, one of the most important things to consider is the overall business model.

There are three main business models for Internet cafe businesses, but naturally you can use any variation or innovation within imagination to start Internet cafe business.

In fact, giving a unique selling proposition (distinguishing your cybercafe from the competition) should be one of your objectives.

The first business model, and the oldest, emphasizes giving basic Internet connection. You may even decide to forgo the cafe side of business altogether and start an automated Internet kiosk instead.

This type of business is typically volume based, so you need to get a lot of traffic to your location in order to make money.

The second basic model expands from the first model and includes offering a lot of extra services, such as a full cafeteria and basic office services, which is one way of to start Internet cafe business.

Under this model, your customers may come to the cafe for a variety of reasons, some for the coffee, some for the Internet connection, some for the other services.

Under the second business model, some have even expanded into Internet cafes from other business areas.

For example, some computer repair shops have opened cybercafes, so that customers can get a favorite place for both repairing their computer and surfing the web on a cafeteria.

In fact, under the expanded Internet cafe business model, you can upsell other services, such as home broadband connections, or computer accessories, to your customers.

This may bring additional revenues, but can also make it less clear to customers just what your cafe is all about.

Under the third major business model, Internet cafes offer specialized services to their customers. For example, some cybercafes have specialized in serving PC gamers.

Another popular specialization area is to offer business center-like services, where you offer an "office away from office" to your (business) customers.

Specialized Internet cafes typically need to charge a bit more in fees from their clients, due to the fact that the potential number of customers is simply fewer than with more generic business models.

However, the upselling opportunities may be as good or better in the third business model than in the second (Internet game cafes can sell computer games, business center cafes can sell other business services, for example).

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Internet cafe history

Internet cafe history started with the opening of the first cybercafe, Cafe Cyberia, in London (UK) on September 1st, 1994.

The founder of the first Internet cafe, Eva Pascoe, was working on her PhD at the time.

She got the idea to mixing sipping coffee to surfing the web while sitting at one of coffee shops near the City University of London.

Cafe Cyberia started with half a dozen HP computers, connected to the Internet through dial-up modems that were able to transfer data at 9.6 kilobits per second.

As the first Internet cafe, Cafe Cyberia got tremendous publicity, and additional investments into the business from likes of Mick Jagger and Maurice Saatchi.

With the success of Cafe Cyberia, the Internet Cafe business got into a flying start, and there were over 60 similar cafes over the world by the Summer of 1995.

Ms Pascoe sold her stake in Cafe Cyberia (to three Korean investors) in 1998 and moved to shape another field of online business, online fashion commerce.

If you feel nostalgic, you can still find the original Cafe Cyberia from London's West End, at Whitfield St., behind Goodge St. station. However, the cafe was renamed "Be the Reds" by the new Korean owners ("Be the Reds" is a supporting cheer for the South Korean national soccer team).

Internet Cafe History - U.S.

Although the first Internet cafe was launched in Europe, there had been similar activity already in the U.S. even before the launch of Cafe Cyberia.

SFnet, which was launched in San Francisco in 1991 (originally as a bulletin board), was not an Internet Cafe, but rather a network of 20 coin-operated computers providing a dial-up connection to the Internet with a 2400 baud modem.

The first actual U.S. Internet cafe (according to a 1995 Wall Street Journal article) was a Chicago cyber cafe called Suba Internet Center, launched in April 1995 by Todd Bodenstein and Alex Strasheim.

Suba was located at 2945 N. Broadway in Chicago, and was sold to to Bean.Net in 2000 by the founders.

Internet Cafe History 1995 - 1999

From the tens of cybercafes by mid-1995, the industry expanded into thousands by 1997.

Internet cafes not only became a natural way for travelers to send and check email, but also a way in which local residents got access to the latest software applications.

With the continuing success of ecommerce and related fields, high-profile entrepreneur Stelios Haji-Ioannou and his company easyGroup entered Internet cafe business in 1999 with the easyInternetCafe franchise.

By 2005, easyInternetCafe had become the best known and most successful Internet cafe franchise in the world.

Internet Cafe History 2000 - Today

In the U.S., the burst of the Internet bubble by late 2000 also changed the Internet Cafe industry overnight as the sources for new venture capital money virtually disappeared.

Also, the increasing success of portable computers and WiFi Internet access, combined with the fact that more and more people were having Internet access at home, resulted in fewer customers for the Internet cafes.

However, as a dynamic industry, many new cybercafes and many of the old ones started to offer a bit more targeted services than just coffee and computers, to bring in new customers.

For example, some cybercafes started to offer services primarily for gamers (and still do).

Typically, these cafes offer the latest computer games with state of the art computers.

The success of broadband network gaming brought the concept of LAN parties to these Internet cafes, as they organise gaming tournaments over broadband LAN connections.

By late 2002, the Internet gaming cybercafes had become a huge success around the world.

For example, according to some estimates, there were over 4,000 cybercafes in Taiwan by 2002, most of them focused on providing gaming.

In South Korea, the PC Bang (the South Korean name for internet gaming cafes) industry first came into existence in the mid 1990s.

Recently, it was estimated that there were over 22,000 PC Bangs (the name of Internet gaming cafes in South Korea) in South Korea at the beginning of 2006.

In addition, during January 2006, Intel, the global PC chip manufacturer, made another milestone into the Internet cafe history by opening a 120 computer PC Bang operation at Nowon-gu, in northern Seoul, South Korea.

However, as many Internet cafes in some countries have evolved into advanced gaming or business centers, the original cybercafe idea (of providing basic Internet access) is still a major growth story in many parts of the world.

India, for example, has over 50,000 Internet cafes with over 500,000 customers each month, according to some estimates. One Indian company alone, Sify Limited, which operates the iWay Internet cafe franchises, has over 3,100 cybercafes in 149 Indian cities.

One significant historic milestone in Internet cafe history has been the introduction of the Yahoo! Mail Internet Cafe Awards, awarded in September 2004, to celebrate the 10th birthday of cybercafe industry.



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