Wednesday, 17 June 2015

COST BENEFIT APPROACH TO SETTING UP A SUCCESSFUL INTERNET CAFE

OVERVIEW
There exist numerous business opportunities in the world of information technology. One of such opportunities is an internet café business. Some business men have the financial power to lavish money during the establishment of their café while others are well to do and are only willing to embrace not-too-expensive business models. This article is a detailed explanation on how to set up cost-benefit and successful internet café.

What is an internet cafe?
In many parts of the world, people are usually unable to conclude daily activities without spending some time on the internet. Accesses to internet depend on a number of factors such as availability of smart devices, location, economy, government policy and so on. Sometimes internet geeks are denied access because of certain constraints. For example some individuals don't have internet-enabled smart devices at their disposal due to lack fund, internet connection in some countries tend to be very poor giving only few people have access to fast internet.
Many who find themselves in regions with enabling environment for internet access may be denied of it temporarily due to loss or damage of smart phone, personal computers or irregularities from their Internet Service Providers among other causes.
When at one point or another people are not able to connect to the internet when they need to, they patronize business ventures offering internet access to the public usually for a fee. An establishment with such service is called an INTERNET CAFÉ.


The Café Business

Running a cyber café incurs costs, especially at the beginning. But, it can at least cover some or all of its operating costs if properly managed. The potential of the café to generate revenue depends solely on how it is run. Though to a large extent the amount of money spent on setting up the café also determines income a café will not survive when mismanagement sets in.



STEPS TO FOLLOW

Explained below are detailed steps that must be followed when setting a cost-benefit internet café that will be successful.



Choose A Reasonable Location

When choosing a location, you should consider the following;

  • Nearness to close-by residents
  • Proximity to businesses offering social services – for instance a stylish, upscale restaurant in the same area
  • Visibility – the café should be in a place where it can be easily seen by people in the area.

Acquire Background Knowledge Of Different Price Options Of IT Equipment To Be Used
IT devices needed to set up a cafe such as PCs, printers, switches… are from different vendors. These vendors also ship their products to different marketers at wholesale price. It is therefore not wrong to say that the cost of purchasing the needed equipment depends on them. For instance a HP can decide to sell a computer for $200 while dell sells a PC with the quality and configuration at $180. Likewise different wholesalers buying from HP sell at different prices. It is your job to determine which purchase combinations will benefit you most in terms of quality and cost.

Proper Analysis Of How Available Startup Capital Will Be Spent
Plans on what to buy and services to pay for must be a reflection available fund. This will enable you to spend the right amount of money on the right equipment and services. It will also prevent you from making unnecessary purchases while leaving important issues unattended to. For example if you desire that your cafe should be able to serve 12 people at a time, your analysis will tell if your desire can be granted or not based on your financial power so that you will not end up using the money that should be meant for internet connection to purchase computers.

Use Only Necessary Furniture
Buying only the needed set of furniture will enable you to concentrate on purchasing the quality ones that are pleasing to the eyes of prospective customers. 

Employ Responsible And Friendly Attendants
Patronage greatly depend on the kind of individuals that will be attending to customers the first time visit your internet café. If their first encounter with your attendant is bad one they may never come back to your café especially if there are other cafés close to the area where you run your business.

Add Other Services
Café customers normally prefer to browse the internet at cafes where they can easily access other computer related services like bulk SMS, printing, photocopy, scanning… etc. Some people with very little knowledge of how the internet works or how to surf the internet always tend to pay back with patronage when you organize free basic internet training sessions for them. Your creativity goes a long way in this aspect. You need to envision the needs of the people around your café and make the availability of services that will satisfy these needs an addendum to your list of services.

Be A Good Manager
It is not enough to set up a cafe business and employ attendants, the business man on his part must properly supervise the day to day running of the business. Detailed account of daily sales must be available as well as correctly generated statistics. This will aid in detecting loop holes in the business such as the decrease in patronage from a particular category of customers and devise means of overcoming such loop hole. A manager need monthly and annual report of business activities in order to prepare for future challenges

Tell The World About Your Business
Starting with the people around you, create awareness and let it be known to people that there is a new internet café around. This can be achieved by using advertising strategies like sharing hand bills, giving out business cards and so on.
It is also a reasonable move to use social networks like twitter and facebook to create online awareness. You can also create a blog or website.


Give discounts for selling more login tickets in your Internet café
Prepare special pricing plans for your regular customers. Give discounted prices to your regular members and they will always come back to your Internet Cafe for your services. Attract new members with discounted pre-paid login accounts. Sell more pre-paid time for lower price (Example: sell 3 hours ticket with 10% discount, 5 hour ticket with 25% discount etc.)

CONCLUSION
With the details above, I believe I have been able give you an insight on setting a cost-benefit internet café. You should also consider getting yourself high end system to act as your network server. You can get a very good one here. However this post is subjected to modifications and regular visitors to this blog shall see updated versions as new posts.




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