Lets say, if you're making RM500 a day, in a month your revenue is RM15000.
Supposed you have 5 staffs, and you're paying each of your staff RM1000, the total would be RM5000. Licencing for your games, lets say another RM5000. Your utilities bill should be around RM800. The rent for your shop, lets put it RM3000. The grand total would be RM13500.
Your profit before tax is RM1500. According to my calculation, to cover your capital of RM100k, you'll need around 60 months = 5 years.

the major problem now is that cybercafe permit already frozen, how to open a new cybercafe?

Thanks for the thread merging Soulfly, appreciate the 'no bragging'-tag.

Regarding that matter, got the news link about it?

If you need a consultant pls pm me

This is how i would calculate :
wages - $3.50(minimal rate) x 19hrs x 30days = 1995k
game license(for 30 pc) - 3k ? (nt sure hw many license this cafe taking)
utilities bill - 3k (electric, internet, water)
rental - anywher from 1k-5k (lets say 3.5k for a prime area)

so total would be around RM11495, and if profit is 500 per day then monthly gross profit would be rm15000 - rm 11495 = 3505. I havent even include the little problems that could happen and need $$ to fix on monthly basis. Thats why i asked if the boss got pay game license or not, otherwise investing around 120k and getting 3.5k back per month is way way not enough. Reason no1 is, by the 3rd year the pc is definately out dated n need replacement where to find the capital for it? (unless he's a rich man frm other business, well thats another issue)

Pls dont misunderstand me, im not bashing anyone... juz taking this as an example why my earlier post saying anywhere below 40pc is a waste of time & money to open cc.

This post has been edited by [gs]JackMin: Jan 2 2007, 05:35 PM

No no, I don't misunderstand you bro; coming from someone who already owns a CC, many thanks for your input
(I'm reading back the previous pages since soulfly merge this)

Quoting from the back pages, location-wise is as important as understanding the business issues. Speaking of which, for example lets say SS15 - it does seems like a goldmine due to its surrounding colleges, offices and restaurants (despite the new entry of that new big CC).

In that sense, how does a business owner fares to start a new CC there, with capitals as much as the ones already there, trying to compete against the likes of Ftz?

Forgive my blur question on the situation of CCs at SS15 now; I had been away from Malaysia from quite a while now.

Goldmines like ss15 could be like a heaven or hell lol. Heaven to those with big capitals i.e Ftz, autosurf to play & hell to the smaller players. Reason is this ppl have alot of pc, imagine if this ppl throw their price to $1-$1.50 (like what happened earlier to Kaos, Inferno, Warnet) they will still make more money than those with 30-50 pc. Cafes like GamesWorld, Inferno, Warnet has already made back their capital so they dont mind throwing it to rm1 but what bout those who came in late & havent recover capital? Alot of strategies involve with this big timers and it is juz not simple as that. So if u are new & unexperience then better find less competitive area to setup the cafe in. (ie. myself lol)

An example of david vs goliath : (goliath wins though..)

I remember Zion Net was in front of asiacafe which has pretty good business for couple mths, but had to relocate after FTZ came. 60 pc vs 340 pc, its already a mentality to gamers that the more pc the cafe has, the more games they can join (ie dota, cs). Situation in ss15 or ss2 or wangsa maju are a big warzone and if u dun have anywhere between 600k - 1million then u better stay out.

This is how the rich boy fares :

From my calculation ill say FTZ is making close to 6k-8k a day and after minus their expenses, they should stil take home bout 150k p/m. Imagine 150k per month, that means they should get back their ROI in a year or less and then make profit all the way. So better think what they can actually do with all those money after ROI next year...

(300pc x rm2.20 x 10hours avg = $$$$$ ), havent include the can drink profit they made and weekend heavier human traffic.

I don't have any news link because it was since 2004... quite an old story... which I myself also recently found out when I check for the permit with the local district council. In Sarawak, there is no more permit to open a new cybercafe, and I believe most state in Malaysia also implemented it long time already.

If u really want to open a cc in sarawak, there was once I heard the license is being sold up to RM100K. It the old cc owners selling their cc license.


Rather I'd hope you would rephase the whole topic over again as opening a cyber cafe isn't that easy by simply asking consultation online(and also encouraging spoonfeeding). Different areas, different set of rules played by the authority. Also depending on location, thugs will constantly be a pain in the @$$. And to those who plan to open a cybercafe without other source of business income, you won't stand long Not to pop everybody's bubble but when it comes to reality, you might end up really hurt.

Why would I rephrase the whole topic? I just couldn't see the relevance.

Suggest me a title then.

How much the total cost to set up a small e.g. 10 pc cyber cafe???

Apologies...that was the previous merged thread title that got into me.

Let's make a thread of like cyber cafe corner. Rather all about setting up a cyber cafe.

I'm not sure, my guess would within 100k, but that's just me speaking without a CC of my own.
Hope others with CC-owned experience can give a much detail estimation.

Quite agreeable with hamster9, it's best to have (1) a stable job or (2) another business (another CC branch perhaps?) before setting up a new CC, but I guess this is common knowledge for any new business setup these days.

Let's move on to another issue: capital-wise.

May I ask how does one gather the source? No need to get into detail, I can understand the importance of business success, but hope those with experience can share in general elaborations. It could be from banks, from family/self savings, loan sharks, Bumi-loans, etc, but again, that's just me shooting the blanks.

may b use win 98 to lowest costs on win license ? and win 98 can support those latest game

*correct me if wrong

Legacy windows is vulnerable and new games don't support them now days, for instance doom 3. Also new graphic drivers recommend WinXP for optimum results, some graphical features will not show in older windows e.g. ATI gfx driver. Basically win98 is non future proof

yeah FTZ is crazy. They took over the Restaurant upstairs and downstairs wasn't enclosed previously. I still remember it was selling "chao tau fu". I was gone for 2 months and whoop come FTZ taking 2 floors..and 340 PC is a lot damn it. Heh. Somehow I feel that the whole Asiacafe is owned by one boss, and that includes the place to sell drinks and rent for stalls, FTZ, snooker and pool centers.

Can break down the detail of estimated 100K?

If u plan to open a 10 pc cafe, then dun expect gamers will come everyday to play since most of them wil be lookin for LAN games. Frm what i beleive, if u wanna do a low cost cafe, then do it as low cost as possible and the targeted market would be the casual surfers, location preferably somewhere with alot of foreigners. One of the reason why i would opt for a low cost, the revenue for 10 pc is too little to cover back the investment for high spec pc for games & beside u dont have to pay for those game license.
10pc x 10 hours x 2.50 = rm250 a day consider very good

For this kind of pc spec i think it should be around 1k with win98 license. Try get all those old 2nd hand pc, im sure u can find alot in LYP & lelong or ebay. The only other cost would be juz the rental, utilities & salary. So i think around 20k-40k u can open a 10pc cafe.

yea.. i have a friend who's just started operating a cyber cafe since last year.. it's doing quite great now..
he had about 60pcs all quite high end.. coz don't wanna get outdated that fast.. and upgrade after one year and so... fitted with LCDs, carpet and creates very nice environment.. neon lights and so on..

from that i learnt... invest a little first.. dun be afraid to spend.. coz you wanna attract customers first.. games and all are mostly the same.. you know most ppl come just to play mostly one game only.

don't worry about reaching your break-even point that fast.. your cash will keep flowing in.. you know how addictive is that game.. mostly if players are playing in your CC, they'll be stuck there already..

This post has been edited by paranoid: Jan 2 2007, 09:40 AM

capital wise - best not to borrow since you are testing the market now. It's your initial business, so it's best that you could minimize on loans. Next best thing is family but make sure you'd pay them back on the dot else you'd suffer for the next family gathering like Chinese New Year, or Hari Raya....

You'd need to allocate at least 6 months of expected expenditure for a CC. First few month will be a streeful one since you are new and all of a sudden there's many software failures, pc hang, etc which you are not aware of. After a while when the cc starts its momentum, then you can relax a bit.

I have several businesses apart from my own CC. if cc alone, i dun think can survive if I'd were to withdraw my full salary (let's say RM1.5k) to have ROI in a year.

win 98 will have trouble in plug and play and customers accessing to the thumbdrive

for 10pc no need until 100k. about 50k also enough. Inclusive furniture and fittings and basic renovation

This post has been edited by hamster9: Jan 3 2007, 04:18 PM