Starting internet cafe

oscarlets

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Hi everyone
I would like to start internet cafe but not sure about various things,do you need a licence to start one? what are the best service providers? I would like to charge my clients R5 for 15mins,R10 For 30 mins R20 For 1hour,which service provider would you recommend?

Apart from good computers what else do I need?

Thank you very much
Regards
Oscar.
 
Voucher based Billing software to manage the time customers spend on the internet, you dont want to go tell a person, your time is up.

Not to try an pop your bubble, Internet cafe's dont make as much money as they used to cus , Internet is so freely available these days.
To make an example an Iphone can serve internet to multiple computers at once. Most phones these day can receive email.

good Luck
 
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Not to sound condescending here but you're trying to determine price points without understanding your input costs, and that is moronic. You might as well use your loaned R100 notes as firelighters if you're going to approach your business like this...
 
Not to sound condescending here but you're trying to determine price points without understanding your input costs, and that is moronic. You might as well use your loaned R100 notes as firelighters if you're going to approach your business like this...

A very good point, a bit of rough math for you - if you have a 25% utilization rate for your computers (that is fairly high as a daily average) and you have 10 PCs and are open 10hrs a day that comes to R500 a day. 5 days a week, R2500 or roughly R10 000 a month. Now you need to buy equipment, have a fast internet connection, pay staff, rent etc. Do your numbers first and make sure it is going to work.

If you are serious perhaps explain what type of internet cafe you intend to operate, do you have a captive market, are you going for gamers, etc. Then you can work out what sort of experience to need to provide and thus what your operating costs will be.
 
I've never been able to fathom how an internet cafe turns a profit these days except as a front for other activities:

A customer that wants to use the internet will pay no more than R10 for an hour, R5 for 30 minutes and R3 for 15 minutes.

“Owners are not honest about what other business they do, because the truth is Internet cafes don’t bring in a lot of money especially when the service charge is so low.

“The café is often used to cover up other dodgy business that won’t make police have too many questions,” he says.

http://www.itwebafrica.com/business/africa/229248-dodgy-dealings-in-joburgs-internet-cafe
 
Since the intro of BIS internet cafe's are no longer required.
Most students use the schools facilities so who exactly are you catering for?
 
LOL okay everyone point taken,but I am serious I want to start one,I am going to open it in rural areas,I will be going back to the bundus for festive season and i want to test the market while there,last time I went there there was one internet cafe with slow internet and sometimes no internet at all so I did my research people will really be glad to have internet cafe with fast internet around,so please help me,which service providers to use?
 
Apart from good computers what else do I need?

People with no internet access that need internet access.

...see the problem?

You are going to have to combine this with other services like scanning, printing, faxing etc. Can't see the provision of internet being your main source of income unless. Best of luck though.

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LOL okay everyone point taken,but I am serious I want to start one,I am going to open it in rural areas,I will be going back to the bundus for festive season and i want to test the market while there,last time I went there there was one internet cafe with slow internet and sometimes no internet at all so I did my research people will really be glad to have internet cafe with fast internet around,so please help me,which service providers to use?

Only saw this now. My bad :D

How many customers do you anticipate per week/month?
 
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Atleast 15-30 an hour,people there really need fast internet cafe,some would also appreciate wifi service,20 people I surveyed informally said that,its bundus but people there are sophisticated,they have money to spend,trust me,I have been there did my research,they want to access facebook,twitter,read blogs,make research,etc and other services I won't allow youtube though,
 
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Right, if you don't need any good video or processing intensive stuff then I would go for Dual Core Atom machines or something that uses very little power as that could be one of your potential issues in deep rural areas. For connectivity you will probably need to look at Satellite unless you have stable 3G available (note stable and reliable is key, I did some work in rural areas and the cell tower was often down for up to a week). If you are very lucky there will be a wireless provider (check the WAPA site) who can provide you a better connection.

You will need some software to manage the internet cafe, you might want to decide if you are going the full Windows environment or Linux first as there are some nice OSS packages out there, both free and paid for. There are a number of internet cafe software options out there, do some research and decide what looks good for you. Note Mikrotik have a package and if you are using a WAPA member they can probably assist you on this as many of them use Mikrotik kit.

Just make sure you lock the machines down properly from the start and you manage the bandwidth carefully to get a good user experience, just blocking Youtube will not do for video bandwidth consumption. Think about things like do you want to offer Skype etc.

I highly suggest looking in to additional revenue streams like printing etc and things like cooldrinks, coffee etc which can actually make you more revenue than the internet cafe side itself.

Good luck.
 
.... I am going to open it in rural areas .... last time I went there there was one internet cafe with slow internet and sometimes no internet at all

I suggest having a chat to MWeb & other ISPs to discover why this is the case, it could well be the norm for those areas.
 
Right, if you don't need any good video or processing intensive stuff then I would go for Dual Core Atom machines or something that uses very little power as that could be one of your potential issues in deep rural areas. For connectivity you will probably need to look at Satellite unless you have stable 3G available (note stable and reliable is key, I did some work in rural areas and the cell tower was often down for up to a week). If you are very lucky there will be a wireless provider (check the WAPA site) who can provide you a better connection.

You will need some software to manage the internet cafe, you might want to decide if you are going the full Windows environment or Linux first as there are some nice OSS packages out there, both free and paid for. There are a number of internet cafe software options out there, do some research and decide what looks good for you. Note Mikrotik have a package and if you are using a WAPA member they can probably assist you on this as many of them use Mikrotik kit.

Just make sure you lock the machines down properly from the start and you manage the bandwidth carefully to get a good user experience, just blocking Youtube will not do for video bandwidth consumption. Think about things like do you want to offer Skype etc.

I highly suggest looking in to additional revenue streams like printing etc and things like cooldrinks, coffee etc which can actually make you more revenue than the internet cafe side itself.

Good luck.
I agree with all the above. I set up an internet cafe, that I had to close down after a year as it was not worthwhile.

Try refurbished pc's and monitors to keep costs down. I bought my pc's through Rentworks. At the time time the pricing was good, and I fetched them from Sylvara, who you can also contact directly. Make sure the license sticker is on the PC's you buy.

Most important is to find decent Internet Cafe software as this is one of my biggest mistakes, trusting an employee to be honest.

Also very important is Location, location, location. You want to set up very close to public transport i.e. taxi rank and be easily accessible (not hidden away up staircases in a building, maximum is 1st floor) and have big clear signs to advertise. I had an office in the building complex housing Home Affairs in Wynberg JHB, but it was on 2nd floor, just did not have the feet passing as it was in a different building next to Home Affairs.

Get a proper Black and White copier/fax/printer - copies and faxing are big requirements, beware of premium rate fax numbers (0866 if I remember correctly - make sure you are clear on charges for these number ranges).
You need office software on each machine, lots of people wanting to write/eMail CV's. I found people preferred Microsoft Office as this was what they had been exposed to. I kept watching junkmail for people selling office packages as I wanted to stay legal in case of a visit by Microsoft or cronies (this never happened btw.)
Maybe have 2 machines with MS Office and the rest with openoffice.

Offer a free 30 minute "course" on email, sign people up for free email services, so they come back to check email.
Also make sure to charge for additional services like assisting someone to write a CV.

Also sell Airtime - very low margins but brings the people in - Blue label are the people to contact. You can purchase online and print them yourself. Again just be careful of cost.

Put in a firewall - use an older pc and install endian firewall or clearOS. This allows you to set it up to restrict sites, offer DHCP to pc's, run Antivirus filtering on incoming mail etc. also have a good antivirus on each pc. Use Microsoft Security Essentials (won't install on dodgy windows installations). Make sure the users have only user not administrator logins. Lock down the machines as mentioned earlier.
 
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Hi everyone
I would like to start internet cafe but not sure about various things,do you need a licence to start one? what are the best service providers? I would like to charge my clients R5 for 15mins,R10 For 30 mins R20 For 1hour,which service provider would you recommend?

What about the satellite based systems. They will offer better reliability in the sticks.
 
Hi there,
Well lots of people believe that it is going to be a challenging business.
Assuming that you have done your market research and the demand is there then you need to keep the startup costs as low as possible.
If it is in a more remote location then you may need to consider wireless connectivity if there is not a good enough cable connection.

The Wapa site would be a good place to go and see who has coverage.
Other technology has been highlighted so you will need softwae to control the access and make sure the less savoury sites are restricted.
Others above have highlighted that the Internet Cafe needs to offer a number of services. My local copy shop offers an internet service and it is seldom in use so additional services would be a good idea. You could look at being a Lotto outlet as well. Margins are slim but it may get the feet through the door. If you do make sure that you have good cash control.

Regards and good luck

Tim
 
Come to a place like Cape Town, I can take you to at least five very large internet cafes that people actually queue to use, they are mainly tourists so for them spending that R15 or R20 is nothing compared to the data rates cellphone providers charge.

I think you miss the point, an internet cafe is a pretty difficult thing to reliably make money on for purely internet access. Have you noticed how quiet those internet cafes are in winter ito tourists? I don't mean to say you can't make money, but you have to look at the economics and be VERY sure before you step in as you are committing to rent, equipment, salaries etc.

Maybe a few of the most important things are:
Make sure you have ALL your costs included
Make realistic (rather be surprised by higher than expected numbers than tearing your hair out if they are lower) forecasts
Do proper market research (don't just ask a few people if they would use it, what they say and what they do are not the same thing)
Do a careful breakeven and cashflow analysis - remember cash is king, make sure you have enough reserves!!!
If you can try do a bit of market testing (say a few cheap laptops and a 3G router) to be sure you will get the numbers before you fully commit.

Note the two biggest mistakes new Micro enterprises make are not paying attention to numbers and cashflow and the other is making unrealistic projections based on wishful thinking (which then leads to issues on the former).

Try do some scenario planning - what if you are sick for example?
 
When I ran my business incubation business I saw a few business plans for rural internet cafe companies and the bottom-line in all cases was that fixed line was not the answer and in most other cases it became cost prohibitive. Various NDAs prevent me from going in to much more detail but you can figure out why, I'm sure...
 
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