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 Cyber Cafe business, serious talk, no spamming or bragging

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Jordy
post Dec 28 2006, 05:01 AM

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First of all, as a previous owner of a cybercafe, I have a few advice for you.
Cybercafe was a good business, and I thought about that too. Noticed I used 'was' right? That's right. If your cybercafe is opened 2-5 years ago, you'll be making big bucks. So, you'll need to prepare for loses in these 2 years at least, meaning no profit for 2 years.
People tend to go established cybercafes at the moment. Although you can compete in price and service, you know you won't stay long.
If you haven't noticed, some big cybercafes are reducing their branches. Competition kills even the big guns, if of course you have the capital.
Location wise, it is that important that you have to make sure you pick the 'perfect' spot. Where are you from anyways?
Jordy
post Dec 28 2006, 02:01 PM

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Centralised hdd server might be good to lower the overhead, but you need a powerful one to reduce the lag too.
Overhead is high, and maintenance is also high. Just think of how fast the IT world is changing. For a cc to survive the market place, it's said that you'll need to upgrade once every 6 months.
Consider these points before you get into it.
Jordy
post Dec 29 2006, 06:24 AM

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QUOTE(ZeroxXx @ Dec 29 2006, 04:55 AM)
does anybody know the procedure to open cc?i meant procedure to get the licence
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Different municipals will have different rules.
But the basic is, you'll need to go to ROC and register your name.
After that, bring that to your municipal for them to check the area. Remember to feed them money, the higher council you go, the better.
Then, you'll need to get the police letter. Feed them money as well.
Get approval from Bomba, again feed money.
Then go back to municipal and feed the balance. sweat.gif
That's roughly the procedure for licence.
Jordy
post Dec 29 2006, 12:57 PM

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QUOTE(firedauz @ Dec 29 2006, 09:49 AM)
I knew it! Tsk tsk.
Bah, as much as I would love to bash on the issue, I guess that is just how it goes all these while.

Moving along, something interest me from one of the posts:

Why does making RM$400-$500 a day is mentioned as 'not enough' to cover back the initial capital invested, which lets say within RM$100k-RM$200k?

I won't start by asking whether the expenses are too costly, I'm sure every business have that, but I sure would like to hear examples within say, monthly expenses vs profit gain.
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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.
Jordy
post Sep 20 2007, 01:44 AM

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QUOTE(jason07 @ Sep 20 2007, 01:32 AM)
want to ask somethgs here.

cybercafe nowadays mostly operates 24hours rite?? goverment issue any banning cybercafe not to operate 24hours be4? or does it any license to operate 24hours??
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The government had a pilot program that restricts cc from opening after 1am..
The ban was originally started at subang's cc, and they're planning to implement it state by state..
So, I think next year they should implement the ban on other states already..
Jordy
post Mar 14 2010, 07:32 PM

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QUOTE(lowexpress @ Mar 13 2010, 03:42 AM)
hmm... i'm running bubble tea + CC... nowaday can make money in my state is bubble tea.. cost $0.65 ~ $0.95 (depend on the cup size) sell from $2.50 ~ 3.80/"3min to get ready" but for CC $2.00/hr  sweat.gif . and my next vision is looking partnership invest 6k ~ 10k only (no franchise fee). bcoz here still got many potential location. anyone interest to swap your credit card for business ^^!?

RM 10k pay 5%(minimum) = RM500 (2yr settle) <--- but 28days sales earn more than that to cover ^^!

that my 10cent...tq
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lowexpress,

You are not looking for an investor. You are looking for a loan. Which investor is stupid enough to provide you 100% of the capital and getting back only 5%? I can simply invest RM8,000 into the business and get 100%. If you still insist on such a deal, then your best bet is to get a personal loan from a bank, with WAY lower interest rate.
Jordy
post Mar 31 2010, 08:05 PM

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QUOTE(cloudstrife07 @ Mar 31 2010, 02:19 PM)
hi guys, me and my friend are interested to open a cyber cafe in Lenggong, Perak which is at my friend's hometown.

seeing all those shabby CCs there, we thought "hey, why not make a better one out of those?".  hmm.gif  and i can guarantee, there are always customers (heck, even those pentium 4 PC cybercafes has loads of them, why not us then?)

we have about 20~25k to be invested for the CC project if it's worth it.

what to do for starters?
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cloudstrife07,

First off, how do you plan to start a cyber cafe with RM25,000? A normal "shabby" cyber cafe would cost you more than RM150,000 for 30 computers. How much would you allocate to start a "better-than-shabby" one?
Jordy
post Apr 1 2010, 08:40 PM

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QUOTE(wodenus @ Apr 1 2010, 01:40 AM)
how do you figure?
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wodenus,

I was a previous cyber cafe owner. I do not need to figure it out because I already KNOW the answer.
Jordy
post Nov 6 2010, 07:40 PM

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QUOTE(Jay1985 @ Nov 6 2010, 01:46 PM)
i want to know too...

do i need a cyber cafe license if i open a INTERNET ONLY CYBER CAFE. without games.

thanks guys
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Jay1985,

There is no cybercafe license. The only license available is "Pusat Komputer Berinternet". So with or without games, you will still need the license.

QUOTE(saigetsu @ Nov 6 2010, 03:40 PM)
u better find those area with students as majority residence. campus or college where they have to go to cc to use internet.
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saigetsu,

Who needs to go cybercafe to use internet these days? We have broadband-on-the-go and it's becoming a hit with students. Cybercafe business is dead.
Jordy
post Nov 7 2010, 07:59 PM

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QUOTE(edyek @ Nov 7 2010, 08:08 AM)
Yeah, right. Esp nowadays most students have their own laptop, and mostly do register DIGI/MAXIS/CELCOM broadband. Not expensive though. They go to CC mostly for the sake of gaming only.
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edyek,

Going to cybercafe for gaming is a thing of the past already. These days with technology, students can even play DOTA online or LAN with their friends in the comfort of their own rooms. When I was living in my hostel, my friends will be networking all their laptops and computers together. There was a central server hosted by one person, and everybody just connect to it. My gosh, that hostel was a HUGE spiderweb if you enter tongue.gif
Jordy
post Nov 8 2010, 11:31 PM

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QUOTE(Biscuit @ Nov 8 2010, 03:33 PM)
Hi Jordy, Edyek,

Though this may be true, but we're only looking at people who stays in Hostel or Small Density Apartment/Condo whereby doing an Internal LAN network for gaming/sharing is possible. The market is still open as there are many more people in normal residences area, all the terrace houses and so on who needs to rely solely on the ISP's connection in order to go gaming with their friends online. It is undeniable that Internet Connectivity in our country still remains a big challenge even for smooth gaming for everyone and that's why people still go to CyberCafes.

It will always be the case with if you have Friend A with smooth connection, probably Friend B is having a crap connection in his area. Normal weekdays, spending the time gaming at home with slight obstacle is alright but during the weekend, there will still be a lot of people willing to come out and get together with their friends in Cybercafe for a good laugh/challenge and enjoy the moment.

A friend of mine's BF opens a Cybercafe in Klang and at this moment, he's still getting a good 30k net profit. It could just be that he just boasted it but I'll never know. tongue.gif.
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Biscuit,

I know most of the cybercafes in Klang. Please name me his cybercafe and I will check.

Also, please do not underestimate our internet connection. We might be slow compared to other countries, but most of the time we do get stable connection. 80% of the time my friends play DOTA online, they have no complaints. That was why they stopped going to cybercafe, unless of course it's exam time when they have some time to burn.

QUOTE(Awakened_Angel @ Nov 8 2010, 09:09 PM)
Jordy,

makes me wonder sometimes why we connect to the internet anyway? Like me, though I am connected to the internet via Laptop 8 hours a day but my hectic work left me just connected. The most web I surf is my company mail web. And recently, I signed witm maxis package plan and gave the iPhone 4 to my wife while i utilise the data plan on my HTC HD2 which I am able to surf, read news, check mails, stocks, etc with my PDA while I am waiting for my kopi early in the morning or minutes before going to sleep.... biggrin.gif

maybe LYN soon  laugh.gif

Again, like you said, we are venturing to the age akin to surrogate.... trap within the room and engage in virtual society
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Awakened_Angel,

True, but my condition is not as bad as you because I have not signed up for any of those packages biggrin.gif

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