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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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221424 2004-03-12 09:04:00 > Boobies .

Why do you use this vocab . . . on the other hand . . . . its good to have a childs mind when you're a bit mature :p

Anyway, I actually wouldn't encourage you much . You are wanting to start in a field, where is getting a bit old . Like the others say, you must think of something creative in order to get the money .

If you're in my area (AKL), here is some of the things happening . Some bigger cafes have quite a few PCs, usually only 25% in . Many people don't like going into cafe now . Amongst my peers, that image of a internet cafe is not 'so cool' as it used to be a year ago . Some of my mates have gone portables . . . or even bringing whole computers over to each others house . Internet at Jetstart speed is fairly common in our area, mainly because we're the biggest income earners . But, still, people are going "broadband" . The only time they go to cafes are on occasion birthdays for overnight gaming . Guess how much they pay (any more and they don't bother going) Just under $10 . May sound ridiculous, but thats the way it is . *um . . . yes guys, you can actually neogoiate price discounts with the owners . . . :D* This is the only reason why we have seen quite a few cafes go bust within months . The only cafe left here are big'gish' type, i . e . 20-30 PCs, usually 10 on at most given times . ALOT of drinks sold though .

Also, another things to watch for when you employ people . This is true story: there are employees that will take your takings if you let them alone over night . They will say no customers even thought there is a full house . You got to watch them by camera or monitoring programs on PCs, etc . Just make sure customers don't complain though .

As usual, do alot of research . . .
~~~~~ s y ~~~~~ (2054)
221425 2004-03-12 09:05:00 Heh, and some of us can go work there? How much will you pay us? mejobloggs (264)
221426 2004-03-12 09:21:00 Just some quick advice:
>
> 1. how are you going to get people to go to your
> internet cafIts got to be special or different.

> 2. where is your street frontage
Important for any retailer but costs

> 3. what is foot traffic like
Important unless you have a hook to attract people.

> 4. Who are you going to employ
Paye, ACC, employment disputes, unreliability, sick pay, dishonesty. Thats the risks.

> 5. How are you going to finance this (banks want to
> see business plans)
OK

> 6. what business structure are you going to have
Sole trader, partnership, company, or even a trust.

> 7. what are the costs of the business structure you
> put in place
Allof the above have different setup and compliance costs.

> 8. What will be forecasted cashflow
Part of the business plan.

> 9. Will you be ready to make tax payments when they
> arise.
GST initially.

> 10. Will you be personally liable if it falls over
Highly likely and you'll probably need your parents guarantee.

> 11. What long term contracts will be in place
> (premises, leasing etc) these don't end just because
> your business fell over (goes back to that personally
> liable point)
Difficult to avoid.
Winston001 (3612)
221427 2004-03-12 09:27:00 > > Boobies.
>
> Why do you use this vocab... on the other hand....
> its good to have a childs mind when you're a bit
> mature :p
>


Because if i said "set if tits" i would get into trouble.
metla (154)
221428 2004-03-12 09:47:00 vending machines and random thoughts.
for vending machines see wwwdotsnackmatedotcom they are a customer of ours, they have a distribution arm called vending direct ask for hamish.
from speaking to them you can do a number of options, buy a vending machine and fill it yourself, and keep all the profit, rent the machine fill the machine yourself and keep most of the profit or get another company in to run and fill the machines and keep a small % of the profit this way is best for a start up because you can see how it works for them. you could probably sign a deal for three months and if it the vending machine is not utillised enough then the person supplying the machine will say no not profitable enough to run a machine here see you later and they have the option to pull out eraly you don't. and you know that you are wasting your time with a vending machine without wasting your money. don't tell them that you are looking at setting up your own vending machines.

finance we supply PC's and finance, but i don't organise any of that but the one thing I know is that you pay the entire GST content up front + the first months rent in advance and for a start up company most would not deliver without the initial stuff payed upfront.

renting locations.
Most landlords sign for a fixed lease and you are responsible for the entire lease period.
So you sign a really good deal for three years then you have to continue to pay for the lease for the three years weather you are there or not make sure you have the ability to sublease in the contract as some don't meaning you do not have the ability to transfer the lease if something goes wrong, if you go for a month by month contract you can pay up to 60% more for the space and be given 1 weeks notice to vacate if the landlord has found a longterm tennant. Just because you are in the shop now does not mean that the landlord stops looking.

This sounds really pompus but the lower socio-economic areas with good schools are better targets for your market, look at the ERO reports for the schools rating, because in this market you have a better educated market with a little bit of money to spend on little toys rather than spending larger to buy their own PC. you could also be social-minded and give some of the better regulars parttime jobs and help with their training. (youth rate is now $7.20 per hour for 16-18 yrs) this would be helpfull through school holidays when you are expected to get busy. even the thought of imitation prefects who get special access or privilage without money changing hands would be good to keep an eye on things while you have your back turned.

a program like ghost would be invaluble for resetting your computers each night. or if there is a problem during the day. (some where around $100 i have not bought recently)

A good antivirus is a must
Wayne H (1736)
221429 2004-03-12 09:56:00 Ok i have some reservations about this due to the fact i am in business and is not all a bed of rose's .

things you hadnt counted on, some lease's of buildings require you to pay the buildings rates . . . . . .

you may need to pay insurance on the comps etc any gear you use, chairs, tables etc .

will you be supplying eftpos facilities???? monthly charge on this, and charges on what sort of cards you accept as well .

advertising, paper, business cards?

if you supply food and drink, health / food may be checked on . . . . . kitchen or fridges?

if you supply food / drink be prepared to supply clean rest rooms which must be cleaned daily at the least . ( supply of toiltet rolls, soaps, towels or paper towels for hands, cleaning products for toilets, and floors - mop?)

GST is a two monthly thing, you can either do this yourself, or an accountant . . . . . . lack of payment on time incurs penaltys .

personal tax if you over such an amount . . . . . . . have no idea what the amount as we havent got there yet . . . . . . . .

hours of being open? who is working what hours, how will you do banking if only one on at a time, bill paying (pay for net usage etc)

power, phone or other incidentals . . . . . food / drink . etc

puter costs, desk costs, chair costs, printers? paper, scanner or copier?

there may be more of these things but these are what springs to mind .
being in business has good points and bad points, you meet some wonderful people then you also meet some really %$#@#$ awful people . . . . who have no respect for anything, including you .


there are an amazing amount of hidden costs that eat at you constantly, or the ones that are unexpected and large bills . . . . . crippling .

best of luck what ever you decide . . . . . . .

beetle
beetle (243)
221430 2004-03-12 23:37:00 Beetle raised some very good points.

For instance, it would be best to take a cash count at the end of the day when you close, lock this in a safe, and drop it off to the bank first thing next morning. If you cannot do this, consider getting a company such as Armourguard to do it for you.

In doing so, you are keeping good business practices.

Also, though it might sound silly in terms of the type of business you want to run, I would reccommend giving receipts to your customers. I have yet to see a cybercafe that does this, but there are people who would prefer to have a receipt for everything (one of them being me - it should be regulation, so even McDonalds have to give you a receipt).
agent (30)
221431 2004-03-13 01:21:00 i know of a cheep way to get computers to own

compaq thin client pcs. they seriously cost about $400 each and come with windows xp (embedded). dad's law office just got one, and he says they are excellent
Megaman (344)
221432 2004-03-13 03:49:00 > compaq thin client pcs . they seriously cost about
> $400 each and come with windows xp (embedded) .

But I thought the rationale here was for gaming as well?

Dont try it on one of these . . .
godfather (25)
221433 2004-03-13 07:42:00 agp slot?

I dont think so, these will also be used for gaming.

Integrated Graphics *chris shudders*
ilikelinux (1418)
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