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Thread ID: 43283 2004-03-09 11:06:00 Starting an Internet Cafe hamstar (4) Press F1
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221394 2004-03-10 08:43:00 Just a word or two of very serious advice hamstar:

Forget any ideas about starting up on the cheap and funding compliance out of revenue. If you haven't got the capital or the financial backing to do it right from the off, it is all downhill from there. There is nothing wrong with starting small and funding growth from net tax paid profits but do it all right from the start.

The so-called entrepreneurs who do cheap business start-ups, rip people off then do a flit and start all over again somewhere else usually have plenty of money behind them. They leave nothing behind but debts and disappointed people.

Cheers

Billy 8-{)
Billy T (70)
221395 2004-03-10 09:02:00 Billy's right on both counts.
Although not all customers want sound.. in fact maybe one a day where we are, so split amongst 7 PC's.... :p

Keen to come check out the "behind-the-scenes" of the Cafe I work at some time?


Chill.
Chilling_Silently (228)
221396 2004-03-10 10:48:00 Okay, well I've made a few decisions. All the computers are going to be gaming machines so I will definitely need headphones. And I think maybe leasing the computers would be a better idea? Any thoughts on that?

I thought that it would because that would take the startup cost wayy down and I don't have that much collateral to put up on a loan. The only thing I'm worried about is that it will add to the ongoing monthly costs. But is that a problem? Also, would anyone know where I could go to lease computers... Techrentals?

And I should really check out that OSH stuff too... with both me and coldfusion @ uni next year, we might need someone to fill in.

>Keen to come check out the "behind-the-scenes" of the Cafe I work at some time?
Maybe if I get stuck.

>Would I even need a server or could I just use a bigass switch?
I am guessing a server would be better, so as not to put to much stress on the host computer.

Could I use OEM versions of Windows for the machines? They would be new computers.
hamstar (4)
221397 2004-03-10 11:04:00 Yeah, you should be able to use OEM versions....

Try looking into Credit Capable, doing finance rather than leasing :-)
Chilling_Silently (228)
221398 2004-03-10 11:04:00 Hamster... there are some things in business ( like life ) you have to learn for yourself.

Yes ask questions in PF1, but don't expect handouts STS.

you might want to see if you can get hardware vendors to "sponsor" you with discounts on their hardware ie ATI,Philips and AMD for example... but then you have to present a well researched and viable business plan.

Coke won't give you a cooler unless you stock their products only ( this includes vending machines ) and you definately can't sell alcohol.

Apart from the cost of actually buying the PCs, are you going to rent? as then the hardware upgrades are more or less their problem - as well as tech support for H/W issues.

If you buy the PCs you'll want bulk discount and need to find someone that can meet supply/demand and look long and hard about warrantys.

On the OS side your problem is licensing. Usually MS reserve the right to "check up" that you're complying - which you do NOT want to be found in breach off - and I wouldn't suggest 98se. Limited support ( runs out in 2006? ) and although most people have used it at some stage in time, I'd suggest XP Pro.

Using a router etc ( like what others have stated ) is excellent and I can only agree, you can't effectivly manage a heap of PCs on a box by box basis, do it from the server.

:)
zminos (5010)
221399 2004-03-10 11:27:00 > Yes ask questions in PF1, but don't expect handouts STS.
Huh? Handouts? STS?

> you might want to see if you can get hardware vendors to "sponsor" you with discounts on their hardware ie ATI,Philips and AMD for example... but then you have to present a well researched and viable business plan.
Yeah, I was hoping to do that. Invite them to LAN parties. Be an authorised AMD dealer (how'd you do that metla?), advertise their stuff in my shop. Thing is, theres a sh*tload of variables with this plan...

> Coke won't give you a cooler unless you stock their products only ( this includes vending machines )
You mean, put only coke in the cooler, or not have a pepsi machine in the shop with the coke machine?

> and you definately can't sell alcohol.
Oh, no. definitely not...

> ... are you going to rent? as then the ...
Yes I am hoping to rent/lease the machines.

> I'd suggest XP Pro,
If I was going to get a gluggy os i could probly save a few $ and get home (?). But seriously XP hates me. If I go near it, it freezes up. Which is why i think xp is like a ferrari in mud. Microsoft chucked the 2000 kernel in a box of molases and called it xp.

> you can't effectivly manage a heap of PCs on a box by box basis, do it from the server.
Okay. I'm confused. Do I need a switch for this or do I just bulk buy some RealTek 8139's and whack 'em in the server.

(Cheers for all the help by the way guys - i'll donate some of the takings to imagef1 or chatf1 ;))
hamstar (4)
221400 2004-03-10 11:41:00 > Be an authorised AMD dealer (how'd you do
> that metla?)


I could tell you but then i would have to kill you.

Wait,heres the skinny.

Get a little Authorised AMD re-seller gif and mount it on the front page of your site.



Seriously,They have a section of the AMD site where dealers in Austrilasia can apply to be a recorgnised re-seller.But that doesnt get you any advantages,just a nice little certificate and constant emails from AMD telling you how great they are.

In return one must visit forums and argue to the death that AMD are the best thing to bless this earth since jesus turned water into wine,making it possible for everybody to get drunk and forgot their problems for a day or so.

Perhaps i should sell you a computer Medic franchise,got a spare 80 grand?
metla (154)
221401 2004-03-10 11:58:00 >Perhaps i should sell you a computer Medic franchise,got a spare 80 grand?
<joke>Yeah sure.</joke>
hamstar (4)
221402 2004-03-10 20:52:00 Just had a thought hamstar: chill might be able to give you some idea of average utilisation rates so you can work out prospective cashflow .

Working on chill's figures of $4 per hour and allowing 50% utilisation over a 12 hour day, that gives you 7 computers x $24 x 7days = $1176 gross which comes back to $1045 per week net of GST . After deducting ISP costs, rent, power, telecom, finance or lease costs and a few bucks for you to live on, there may not be much left .

I know diddly-squat about Internet cafes, but a start-up can't expect to run 24 hours from the off, or enjoy 100% utilisation at any time of the day, so you either need to share premises with another money making organisation, have a sideline that operates from the same premises and brings in cash flow, or have enough capital behind you to tide you over the lean & mean startup period .

On the bright side, Internet cafes seem to be popping up everywhere, there are now five in my local shopping centre (plus 4 computer builders/repairers/parts sellers) and none have closed down so there is a strong demand for their services . There are a lot of international students in my area so perhaps that plus gamers is the reason for their success . They all seem to have a secondary revenue stream though .

When I started my business (from scratch in a brand new field) I invested $80K in equipment and other resources but earned only $12 K in the first year, $20K in the second . If I had had rent, mortgage or leasing costs to meet I would have gone bust inside of 12 months . I had to work outside the business for extra money to keep my family but it all paid off and now the business runs profitably .

Hold onto your dream but plan carefully . You may have to delay startup while you get the facts & figures together but if you start with a sustainable business model, once running you should go from strength to strength . Whatever you do, don't set out to attract business by being the cheapest on the block! Aim to be the best with the most attractive environment, friendliest staff, most reliable service and coolest coke machine .

I wish you well .

Cheers

Billy 8-{)
Old adage: Businesses don't plan to fail,
they fail to plan .
Billy T (70)
221403 2004-03-11 02:19:00 And head off to the libary and borrow some books on starting/running a company in NZ,its a bit of an eye opener.

And visit an accountant.
metla (154)
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