Internet Cafe Earnings

Posted by derixc in July 14th 2007  

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We started this business late last year, probably October. We spent almost $5000.00 to put it up. The money came from our savings and with the help from other relatives. Here is the breakdown.

Investment:

Computers - 10 units at $240.00/ea

Software - $880.00

Router - $40.00

Hub (16 port)- $80.00

LAN cables - $10.00

Printer - $40.00

Tables - $18.00/ea

Chairs - $4.00/ea

Posters - $5.00

Improvements - $1200.00

TOTAL: $4,875.00

We have a flat rate of $ 0.3/hr on all computer activities such as games, chat, research etc. That brings a $3/hr revenue in 10 computers. Normal operation would be at 8-10 hours, so utilizing only 75% of it gives us at least $21 each day. Other services like printing, scanning, uploading mobile contents such as ringtones, graphics etc. adds at least $40-$50. In a month we are getting $680.00 gross income.

Expenses:

Electricity - $70.00

Rent: $40.00

Miscellaneous: $60.00

Net Profit per month : $510.00

Return of Investment: Approximately 10-12 months

Even if the earnings wasn’t too impressive for some well developed countries, We still manage to have some extra cash passively without much of my presence . Actually that amount here in the Philippines is good enough as a replacement salary. We also like the idea of branching out, hopefully we can double it’s monthly income.

:-D

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19 Comments

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SELaplana Said,
July 20th, 2007 @1:06 pm  

good luck with your business. I was doing it before but just unfortunate I lost my business….

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derek Said,
July 21st, 2007 @10:59 am  

with this business the first thing that we should have learn is security. i lost my first cafe shop 2 years ago because of this “bolt cutter gang”

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Renato Said,
August 7th, 2007 @1:40 pm  

I would like to setup an internet cafe in indonesia. Is it really worth it, they tell me that the income are very low?

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derixc Said,
August 7th, 2007 @3:45 pm  

As far as the income is concern, you can take a look on what I am getting. Like what I said it is almost good as a replacement income. If you will also consider the trends now, you have a vast market surrounding you. Thanks for visiting!

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J Said,
September 19th, 2007 @12:19 am  

Your internet cafe seems to be doing very well. I am sorta an internet applications developer, mainly mashups webservices etc. I have been doing some research on how best to set up an internet cafe, but so many stories of failure. Anyhow, I am on a shoe string budget, so would be very interested in know a bit more about the specs computers, Software (timing software, and other utilities, Router (was thinking of going wireless, Hub (or switch alternative) you have used. Details please if possible.
Thanx
J

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Elizar Said,
October 1st, 2007 @10:06 am  

Hi Derek, nice to hear your shop’s doing good…

If you’re from garay, is your LAN shop here too? :)

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derixc Said,
October 2nd, 2007 @3:02 am  

yup, we’re here in poblacion.

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WENGSKI88 Said,
April 22nd, 2008 @2:27 pm  

I am planning to put up the same business. What else do i need or learn to with regards to computer related issues, stuff like troubleshooting? I am willing to learn and so to avoid too much expenses too.

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derixc Said,
April 22nd, 2008 @9:26 pm  

hi wengskie. you may want to take a look at his http://yuwoncedric.com/tips-on-how-to-setup-an-internet-cafe/

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Ana Said,
May 29th, 2008 @3:38 am  

I am planning to start an internet cafe business in las pinas do you know where i can buy the lowest cost of computers but highest and latest quality parts where I will have less problem in troubleshooting. I was wondering if where I can avail a device that I can buy as a clone to my cpu like a router that you can connect to several monitor without buying many cpu they call it M connect?Is it advisable to use it or it will lessen the speed or performance of the computer? Thank you and hoping for your reply.

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derixc Said,
May 29th, 2008 @6:04 am  

@ Ana, Gilmore, Cubao will be the plaqce to go. For the M connect. It’s only advisable for internet usage and not meant for heavy applications like online games. It is still best to have individual PC’s.

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