2. 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
3. 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 it
3. 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)
4. 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.
Computer Penetration Rate
14%
6. Filipinos Using the Internet
Filipinos w ho are not using
Frequent user
Profile of Internet Users in the Philippines
7. online purchase
online banking
sms
online new s
shared music
internet radio
blogging
photo sharing
read blogs
social netw orking
games
Search
YM
Email
0 10 20 30 40 50 60 70
Profile of what internet cafe users are doing in the internet
8. 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.
9. 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?
10. 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
11. 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
12. 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.”
13. Pricing policy should reflect the following
1. the capacity of your target market
2. the amenities you are offering
3. it should cover both your fixed and
variable cost
4. It should reflect the kind of place that
you would like it to be perceived by your
customers
14. 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.
15. 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
16. 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 Hardware
2. Cost of acquiring the licenses of the software
3. 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
