The Big Shift

With the numbers of competitors in internet shop business and the decrease of hourly rental rates here comes the decision and make a Big Shift. In short I closed my internet shop business and venture into online selling, with the help of my wife and her passion to fashion we open a online business using only our facebook accounts. We are selling baby clothes, family ternos and other affordable apparel.

At first we are very skeptical of the outcome because we know that competition is very large, that’s why our online store has a unique theme and price is very affordable with the consideration of the shipping fee which is usually handled by the buyer.

Currently we are almost established having a good number of reseller and buyer. I can say that no mistake in doing the big shift, our income is far way better than our internet shop before. And my wife can still take care of our kids while I am also doing a regular employee job. 

Internet Cafe Price War

Computer Shop / Internet Cafe, one of the in demand business in the Philippines right now you can find it near schools, church, malls or even in a subdivision or in a village. Most of them offers Online and Offline gaming this is very influential that even the oldies are playing it. Filipinos are also hooked into facebook their famous games farmville, texas holdem poker etc. That's why in every corner of the street there is an internet cafe even with only 5 or 7 units of computer they are operating .

My Internet Cafe was opened a year and half ago and its 12 units, I owned the place so its advantage that I don't need to pay the monthly rental of the place. My shop offers Internet, Printing, Online and Offline gaming even computer repairs and upgrade. The hourly rate before was 20/hr standard rate so my monthly sales and monthly income is quite above expectation. It so happen that last year started the price war and the usual 20 pesos per hour rate pulled down to 15 pesos per hour the tendency is most customer assume this and expect most shop to follow. At first of course I did not join them, I stick with my services and 20/hour. My daily sales fell and felt the existence of the internet cafe who offers 15/hr rate.

With the advantage of not paying the monthly rental I was force to follow and reduce my hourly rate to 15 pesos. In return I also reduce the usage of my air-condition to offset the expenses. I accept the defeat and follow the reduced hourly rate but it gains me more customer also my loyal patrons are glad so it is still a win-win situation for me and in the end I know this is how the business really are.

God bless my business.

How to start your own Internet Cafe Business

Check the following:

Location: Your target market
Ideal locations are near the church, school, market place or inside the community in which you'll have greater chance of having your regular customers.

Internet Connection: This is important
You must check the specific area for the possible broadband connection, there must be an available resources for your business. Apply for a business line (ex. PLDT MyDSL Biz) a 4mbps plan is good for 10-15 computers.

Computers: Should be brand new
Do canvass for the price of the computer package dont forget the warranty period the longer the better. You can go to Gilmore Avenue, Quezon City for a variety of computer store. Make sure the computer package is well equipped, most of the customers are gamers and prefers faster computer. Dont forget to buy a printer, scanner etc.

Tables, Chair, & Air-condition: For the comfort of your customer
Your table must be customized with divider and spacious, your chair can be monoblocks or the restaurant type chair. Air-condition is also needed due to the heat of computer and customers comfort 2hp Aircon is good for 10-12 computers.

Pertinent Documents: DTI > Brgy Permit > Mayors Permit > BIR, etc:
First document needed is the business name go to DTI, secondly is the barangay permit as it is needed in applying for Mayors permit. BIR, Sanitary, Fire is also needed.

Then you're done!
Start with a promo, send flyers, brochure within the vicinity.

My Internet Cafe Business

"Every journey starts with a single step"
- this is my thinking on how to escape from personal financial crisis.

~~~
It starts with my friend telling "pare bakit hindi ka na lang magtayo ng internet cafe sa bahay nyo, tutal may pwesto ka naman at investment din ito?" he knows that my residence can put up a small business and it was a beauty parlor before. It always play in my mind why not I can do it I'm a computer science graduate but how can I start? do i have the financial capacity to raise a computer shop business? The capital is big and no one can support me.

This is my chance to redeem myself, I start checking my credit cards, my allowable credit, and searching for a bank for a loan just to start my business. And says to myself "baon na ako sa utang, uutang na naman ako" this is the big challenge.

Fortunately, Im on my way of starting it I availed my credit card 3x the credit limit (you know what bank is it) and purchased 3 units as starting. As my luck continues I've got one approved loan and bought another 2 units, and another 1 coming from PLDT MyDSL Biz a free pc bundled when I applied for a internet connection. A total of six units in one month operation and still need to expand. Here I go again, back to the bank asks for an increase in my credit limit and hooray two of my credit cards got approved and buy another 4 units. Ten units in operation works fine and the saving as well plus my monthly payment to the banks. My place can accomodate upto twelve units of computer plus the printer.

And now I have 12 units in operations, plus a printer and a aircondition. My savings is not that much but I can pay my monthly electric bill, PLDT, credit cards and banks. Mid-next year my monthly amortization will end and this is the day I am waiting for.

Thanks to this site tipidpc it helps me with other ideas in starting lanshop business.