An Internet Café is a place that has a number of computers connected to the Internet and available for use by customers. Internet services are normally charged at a predetermined rate.

Internet Cafés act as entrance points to the communication highway called the Internet. Customers vary from students who need assistance for their research activities to professionals who travel and need access to the Internet, and anyone else wishing to explore the Internet.

This document walks you through the process of setting up your own Internet Café in 10 steps.
Step # 1: Create a Business Plan

The very first thing you should do when setting up your Internet Café Business, is to create a business plan. A business plan for any business is an essential part of the process. If you want to raise capital, no investor is going to consider you without one. But more importantly, a good business plan can be a useful tool for you to clarify your thinking and alert you to challenges that lay ahead.

If you do not feel comfortable writing your own business plan, you can contact a specialist. Here are some companies that specialize in writing winning business plans for Internet Cafés.
  1. HJ Ventures. For more information go to http://www.hjventures.com
  2. BPlans.com. For more information go to http://www.bplans.com
  3. ASAP Business Plans. For more information go to http://www.plansasap.com
Step # 2: Choose a Location

Finding the right location for your Internet Café Business is crucial. Choosing a good location can lead directly to a successful business, whereas choosing a bad location can lead directly to failure. Here are some helpful tips to keep in mind when choosing your location:

  1. Find locations near high schools or colleges, as students are great customers for Internet Cafés.
  2. Look for heavy traffic locations, streets that have a lot of both automobile and foot traffic.
  3. Find a location that is easily accessible. Locations near bus stops, trains and airports are always good. Pay attention to the amount of available parking any proposed location.
  4. Look for tourist areas, such as hotels and restaurants, as travelers frequently need to access the Internet while on the road.
Step # 3: Create an Environment

Next step in setting up your Internet Café is deciding on what kind of Internet environment you want to create. Do you want to create a hip hangout, a relaxed comfortable setting or a fast-paced environment? Some important things you should consider:

  1. Décor and Design
  2. What type of food and beverages you should offer

Step # 4: Buy Equipment

  1. Internet Services
    1. Internet Access (Should be high-speed!)
    2. E-mail Service (Your internet service provider may offer some email accounts for you and your staff; your customers will be checking their own email via the web)
    3. Chat Service (May need to install chat software)
    4. Online Shopping
    5. Online Gaming
  2. Office Equipment
    1. Printing Service (Good quality, high-speed printers, may want to offer basic black and white printing as well as color)
    2. Scanning Service
    3. Photocopying
    4. Faxing
    5. Telephone services
    6. CD Copying (Optional)
  3. Food & Drinks
    1. Vending Machines
    2. Snacks
    3. Sandwiches
    4. Coffee
    5. Soft drinks
    6. Bottled Water
    7. Unique local offerings?
Step # 5: Set Up a Network

  1. Internet Connection?
  2. Which ISP do I connect to?
Step # 6: Purchase an Internet Management System

After you purchased all your computers, Internet services and set up a network, you can begin looking for an Internet Access Management System. Here are some of the best Internet Access Management Systems on the Market:

  1. Vibersoft. Café Manager. For more information go to http://www.cafemanager.com
  2. Tx Systems, Inc. iCafeCard. For more information go to http://www.txsystems.com
  3. Café Suite. For more information go to http://cafesuite.net
Step # 7: Determining What to Charge

Depending on your fixed costs, i.e. rent and utilities, you can create a price structure. Things you should keep in mind when creating a price structure.

  1. Be reasonable. Internet access is becoming a lot more affordable and more and more people have Internet access at their homes.
  2. Compare your prices to your competitors. You do not have to copy your competitor's pricing structure exactly, just use it as a guide & reference.
  3. Create different price structures for frequent visitors. You should create specials or incentives for people who visit your Internet Café often or stay for long periods of time. This is a great way to generate revenues as well as build good relationships with your customers.
Step # 8: Promote your Internet Café

Before you open your Internet Café to the public, you should come up with a Marketing & Promotional Plan and Strategy for attracting customers. Here are some helpful tips to keep in mind when promoting the opening of your café:

  1. Advertise in local high school and college newspapers.
  2. Hand out flyers at local airports, bus stops and busy streets.
Step # 9: Stay up-to-date with New Technology

When you own and operate an Internet Café, you should always be up-to-date with new technology. Here are some helpful suggestions for staying current with Internet technology:

  1. Browse the Internet. The Internet is a great source for learning and finding information regarding the latest in Internet Technology. For example, Wired News is a free daily news website that provides excellent stories and articles on Internet technology. For more information on Wired News go to http://www.wired.com. Another great Internet news website is Internet.com, for more information go to http://www.internet.com.
  2. Subscribe to technology magazines. There are hundreds of technology magazines to choose from, for example: PC World (http://www.pcworld.com) and PC Magazine (http://www.pcmag.com).
  3. Read the Technology section of your local newspaper, as well as make monthly trips to popular electronic stores, such as Fry's and Best Buy.
Step # 10: Retain Customers

Once you have the Internet Café open for business, you will need to find ways to attract new customers as well as retain your current customers. A few suggestions for retaining customers are: (1) advertise specials and discounts and (2) create a loyalty system. Here are some excellent Loyalty Systems on the Market right now:

  1. Software Engineering International, Inc. Loyalty Systems. For more information go to http://www.seiproducts.com/giftloy.html
  2. Tx Systems, Inc. Loyalty in A Box. For more information go to http://www.txsystems.com
  3. Fargo Electronics, Inc. Loyalty Cards. For more information go to http://www.fargo.com/ID_Solutions/retail.asp


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