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Internet Cafe Business Plan
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JavaNet Internet Cafe
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.
The public wants: (1) access to the methods of communication and volumes of information now available on the Internet, and (2) access at a cost they can afford and in such a way that they aren’t socially, economically, or politically isolated.
JavaNet, unlike a typical cafe, will provide a unique forum for communication and entertainment through the medium of the Internet. JavaNet’s goal is to provide the community with a social, educational, entertaining, atmosphere for worldwide communication.
JavaNet intends to cater to people who want a guided tour on their first spin around the Internet and to experienced users eager to indulge their passion for computers in a social setting. Furthermore, JavaNet will be a magnet for local and traveling professionals who desire to work or check their email messages in a friendly atmosphere. These professionals will either use JavaNet’s PCs, or plug their notebooks into Internet connections. JavaNet’s target market covers a wide range of ages: from members of Generation X who grew up surrounded by computers, to Baby Boomers who have come to the realization that people today cannot afford to ignore computers.
The main competitors in the retail coffee segment are Cafe Paradisio, Full City, Coffee Corner and Allann Bros. These businesses are located in or near the downtown area, and target a similar segment to JavaNet’s (i.e. educated, upwardly-mobile students and business people).
JavaNet will follow a differentiation strategy to achieve a competitive advantage in the cafe market. By providing Internet service, JavaNet separates itself from all other cafes in Eugene. In addition, JavaNet provides a comfortable environment with coffee and bakery items, distinguishing itself from other Internet providers in Eugene.
We plan on getting more than 500,000 sales in year 1 and nearly 1,000,000 sales in year 3. We will have earnings year 2 and year 3
Financial Highlights by Year
Our financing has already been secured as follows:
- $24,000 from the Oregon Economic Development Fund
- $19,000 of personal savings from owner Cale Bruckner
- $56,000 from three investors
- and $10,000 in the form of short-term loans
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How to write the business plan for an internet cafe
Are you looking to start an internet cafe? Or maybe you already have one and want to grow, raise financing or improve your profitability. Either way, a well-written business plan is crucial to your business' success!
This in-depth guide will detail why writing a business plan for an internet cafe is important, what information you need, what it should contain and look like, as well as the tools available to help you write your plan.
By the end of this guide, you will be ready to create a comprehensive and professional business plan for your internet cafe. Let’s get started!
On the menu:
Why write a business plan for an internet cafe?
Information needed to create a business plan for an internet cafe, how do i build a financial forecast for an internet cafe, the written part of an internet cafe business plan, what tool should i use to write my internet cafe business plan.
There are several reasons to write an internet cafe business plan. Below, we cover some of the most important ones!
To set objectives and a clear roadmap
Creating a business plan for an internet cafe is a great way to improve your chances of success as an entrepreneur.
Not only will it help you set objectives for the next 3 to 5 years, but it also forces you to take a step back and research all aspects of your proposed business thoroughly.
In essence, it helps startups realise whether or not their business idea is viable and existing internet cafes can evaluate their growth prospects based on the current economic climate, thereby giving a clear roadmap.
To compare financial forecasts and performance
Having a business plan with an up to date financial forecast allows you to regularly compare your actual performance against what was planned to recalibrate your internet cafe's financial forecasts accordingly.
This gives you visibility on your future cash flows and ensures your business remains agile and able to respond quickly when market conditions change or unexpected events arise.
To raise financing from investors and banks
Whether you are a startup or an existing business, writing an internet cafe business plan is a necessary step when looking for financing from a bank. The bank will use the plan to make sure that you can repay your loan.
A well-crafted business plan also helps equity investors and business angels understand what type of return on investment (ROI) they can expect if they invest in your internet cafe.
Having an understanding of why it is important to write a business plan for an internet cafe is the first step in creating one. Now, let's look at what information is needed to create a successful one.
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Writing an internet cafe business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.
In this section, we cover three key pieces of information you should gather before drafting your plan!
Carrying out market research for an internet cafe
Conducting market research is essential for any business venture, and this is especially true when writing a business plan for an internet cafe.
Market research allows you to accurately forecast your potential revenues and gain insights into the needs of target customers.
It also helps to identify key competitors in the area, enabling you to develop strategies that will give your business an edge over existing cafes.
In addition, it provides valuable information about trends in consumer demand and helps businesses understand what products or services they should focus on offering.
Furthermore, market research can help you determine the best location for your cafe and ensure that you are able to reach out to as many potential customers as possible.
Developing the marketing plan for an internet cafe
When developing a marketing plan for an internet cafe, it is important to include a precise budget for marketing activties in your financial forecast.
This budget should be detailed and address both customer service initiatives aimed at retaining existing customers, and promotional activities aimed at acquiring new ones.
The staffing and equipment needs of an internet cafe
It is also important to consider the recruitments and investments required before you start writing your internet cafe business plan, as this will also be needed when creating your financial forecast.
You will need to identify all the investments required such as the computers and software licences, your point of sales system, etc.
Additionally, thinking about recruitment plan will ensure you have the right staff members to run the business and a clear idea of the costs involved (salary, cost of recruitment and training, etc.).
Once you have gathered all the information needed to create a business plan for an internet cafe, it is time to move on to creating a detailed financial forecast. Let's see what this involves.
An internet cafe financial forecast includes four key components:
- The profit and loss statement, which shows how much money you made or lost
- The balance sheet, which shows what you own and owe
- The cash flow statement, which shows money coming in and out of your business
- The sources and uses table, which explains where your money is coming from
Let's have a look at these in more detail.
The projected P&L statement
The projected P&L statement shows the expected profitability of your internet cafe for the next 3 or 5 years.
This also helps investors decide whether it is worth investing in your business or not. They can calculate ratios based on this data.
The projected balance sheet of your internet cafe
An internet cafe balance sheet shows what the cafe has (assets) and what it owes (liabilities) and how much value has been created for the owners and shareholders (equity).
This is important because lenders, investors, and especially business owners such as yourself can use this information to see if the cafe is adequately capitalised.
Your balance sheet will reveal how much short term and long term debt you cafe has and how much cash is available to honour them.
The projected cash flow statement
The cash flow statement for an internet cafe shows how much money is coming in and going out of the business.
It is useful to have one because it helps you know how much money your cafe will make over time and if any changes need to be made to keep the business afloat.
This statement also helps you plan by showing you what outgoings will come up in the future, so you can budget accordingly. This saves you from having to panic and arrange expensive overdrafts or loans at the last minute.
The initial financing plan
The initial financing plan also called the sources and uses table, is an important form of planning when starting an internet cafe.
It helps you figure out how much money you need to start the cafe by listing initial expenses (uses) and where that funding will arise from (sources).
Initial expenses for an internet cafe could include assets such as computers, desks and tables.
Now that we have reviewed the financial forecast for your internet cafe business plan, let's move on to discuss the written part of your plan, which is equally important as it provides the context needed to understand your numbers.
The written part of an internet cafe business plan usually consists of 7 comprehensive sections.
From crafting an executive summary to presenting your financials, let's have a look at each of the key sections that compose a business plan.
1. The executive summary
When writing the executive summary section it is important to provide an overview of the business, the market, and key financials.
Start with a brief introduction of the business, its name and location, how long it has been in operation, and what makes your business unique. Mention any services or products you plan to offer that separate you from the competition (for example you might offer coffee and pastries on top of the basic internet access).
Outline the size of the market for internet cafes in your local area, any current trends, and potential growth opportunities. Analyze how your business can take advantage of those opportunities to increase sales and profits.
You should also include a summary of your key financial figures such as anticipated revenues, projected profits, funding needs, and cash flows. Explain why these financial factors make financing your business a sound decision for banks or investors.
Finally, you should state the amount of funding that your business requires.
2. The presentation of the company
Outline the legal structure used for your internet cafe (limited liability company, sole trader or partnership for example). Also, mention what percentage of the business each partner owns.
Location is another important factor to consider when creating an internet cafe plan. Make sure to include information about potential customers in the area, local accessibility, and how many people will be served by the cafe.
Additionally, it is beneficial to list any potential restrictions or regulations that may impact the operation of the cafe.
Similarly, you should also include information about the management team in your presentation. Provide a brief overview of each member's responsibilities and qualifications, as well as why they are uniquely qualified to lead the company and how they met.
3. The products and services section
The products and services section of an internet cafe business plan is one of the most important components for any potential investor or lender.
This section should provide a detailed overview of the specific types of goods and services that will be offered at your internet cafe.
A clear description can help convince investors that your business has what it takes to succeed in this competitive industry.
In addition, this section should explain how these products and services will meet the needs of customers in your area.
For example, if you are planning to offer a variety of speciality coffee then you should include information about why these drinks are unique compared to other internet cafes or businesses.
If you plan on providing food items such as sandwiches or pastries, then you must detail how they will be prepared and served to give customers an enjoyable experience as this might be difficult to do in front of multiple computer screens.
4. The market analysis
Knowing the size and demographic of the potential customer base, who your competitors are and what advantages you might have over them, what legal considerations must be taken into account, and so on will all be key elements in ensuring that an internet cafe business is a success.
Also, be sure to outline any special features or amenities that may set your cafe apart from others in the area. This could include nearby parking spaces and excellent transport links.
This data should be presented clearly and concisely to give readers the confidence that they need to proceed with any potential investment. Using charts and graphs will improve the quality of this section.
5. The strategy section
When writing the strategy section of your internet cafe business plan, you should explain your competitive edge, pricing strategy, marketing plan, milestones and risks and mitigants.
It is important to provide the reader of the business plan with clear insight into how your cafe will be able to gain an advantage over competitors in terms of service quality or price point.
Additionally, a well-defined pricing structure must be outlined so that potential investors understand where profits will come from as well as any discounts or promotions that may be offered.
For example, you could offer a free coffee to anyone using your internet cafe for two hours or more.
Furthermore, it is essential for success to develop a comprehensive marketing plan which outlines how customers will become aware of the internet cafe (flyers, search engines, email marketing, etc.).
Including specific milestones can help demonstrate the progress made so far and the goals you set for the coming years.
The strategy section should also address any foreseeable risks to the success of the business, as well as strategies for mitigating those risks.
6. The operations section
The operations section of an internet cafe business plan should include detailed information about your staffing team, their roles and responsibilities, and a recruitment plan.
It is important to include the roles that will be fulfilled by each staff member, as well as what qualifications they should possess to be suitable for the role. The recruitment plan should include details of how the staff will be sourced and trained.
The opening hours of the internet cafe should also be included in the business plan. Ensure that there are enough operational hours to cover customer demand, whilst making sure that the cafe remains profitable.
The business plan should also include details about any key assets or intellectual property that the cafe needs to operate. This might include hardware such as computers, printers and routers, software licensing agreements, and any other digital or physical property that the internet cafe needs to function.
Finally, it is important to include details about the suppliers that your business plans to work with. It should cover who they are, what services or products they provide, and the cost of their goods or services.
7. The presentation of the financial plan
This is where you will present the financial forecast that we talked about earlier in this guide.
Now that you have a good understanding of the content required for an internet cafe business plan, let's look at some of the tools available to help create it.
These tools can make the process easier and more efficient, allowing time to focus on other aspects of your business.
You have three main solutions to write an internet cafe business plan:
Create your internet cafe plan using Word or Excel
Hire a consultant to write your internet cafe business plan, use an online business plan software for your internet cafe plan.
Using Excel and Word to create an internet cafe business plan can be a potential solution.
The main benefit of using Excel and Word to create a business plan is that it is cost-effective because both applications are widely available.
However, it can be hard for a business owner to create an accurate financial forecast without making mistakes unless they have extensive accounting and financial modelling experience. This could lead to potential investors not believing the figures of the financial forecast.
Furthermore, it can be a very long and tedious process to create a financial forecast in Excel and hard to keep the forecast up to date. Word also presents its challenges, as the document must be formatted manually once written.
Outsourcing the internet cafe business plan to a consultant or accountant can be an attractive option for entrepreneurs who lack the time and expertise to craft their plans.
Consultants are accustomed to writing business plans and have the experience needed to create financial forecasts without errors.
Furthermore, they may be able to provide advice on how best to structure the business plan to appeal to investors and banks.
On the other hand, outsourcing a business plan is expensive (budget at least £1,500 or $2,000), especially if changes are needed during the process.
Additionally, most consultants aren't experts in internet cafe business planning and this can lead to issues with the actual content of the business plan.
Another alternative is to use online business plan software. There are several advantages to doing so.
- You are guided through the writing process by detailed instructions and examples for each part of the plan
- You can be inspired by already-written business plan templates and examples
- You can easily make your financial forecast by letting the software take care of the financial calculations for you
- You get a professional document, formatted and ready to be sent to your bank or investors
- You can easily compare your forecast against your accounting data to make sure you are on track to deliver your plan, or make adjustments if needed
If you're interested in using this type of solution, you can try our software for free bysigning up here .
We hope that this article has helped you to better understand how to write the business plan for your internet cafe. Do not hesitate to contact us if you still have questions!
Also on The Business Plan Shop
- The key steps to start a cat cafe
- 5 ways to optimize the profitability of a coffee shop
- How to carry out market research for a coffee shop
Know someone in the internet cafe industry? Share this article with them!
Founder & CEO at The Business Plan Shop Ltd
Guillaume Le Brouster is a seasoned entrepreneur and financier.
Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.
Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.
Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.
Published on 20 Jan 2023 , last update on 27 Jun 2023 , as per our editorial standards .
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Every business starts with research and planning. The main purpose for writing a business plan is to get aware of those things that you might not have known or thought of yet. Depending on your case, you might be interested in devising a gaming lounge business plan or an esports arena business plan. As these are very close to the concept of Internet cafe we offer to use this as a template, expanding it with additional points where necessary. Besides, in this article you will find many useful information to assist you on the way.
Starting an internet cafe business can be a challenging task, especially if you lack entrepreneuring experience. However, devising a business plan will greatly facilitate you along the way. First of all, it will help you to gather many important information and facts, come up with a variety of internet cafe business ideas, decide on the format, consider pros and cons of this business, and even think about its future development. When getting down to work, the first questions coming to your mind might be whether it is a profitable business, how much does it cost to open an Internet cafe or what equipment do you need to start an internet cafe? This article probably won’t furnish you with a full answer, rather it will give you a general description of internet cafe business, while adding more questions for you to consider.
Internet cafe business overview
An Internet cafe (also cybercafe) is by no means new, yet a still relevant idea. The service of providing the public with a PC along with access to the Internet for a charge has been in expanding request since a long time ago. The first online cafe was launched in 1988 in Seoul and had only two 16-bit-computers connected to the online system of networks. Today internet cafes can be found all around the globe, while their purpose has evolved from basic webmail and instant messaging to multiplayer gaming. Since modern games often require modern computers and expensive gadgets more and more gamers prefer shared-access models over personal ownership.
Depending on location, target audience, and social agenda of the proprietors, cybercafés come in a wide range of formats and can be quite a profitable business. Internet cafes also appear as gaming lounges, cybersports arenas, or PC bangs – equipped with VR headsets, gaming consoles like Xbox and Playstation, and broadcasting esports tournaments on a big screen.
The majority of the entrepreneurs, engaged in this field are men of 22 – 50 years old, who understand computers at the level between the advanced user and system admin. Most of them also enjoy playing online games, keep abreast of new developments in the realm of computers and gaming equipment, be up to date with the latest developments in the cyber industry, follow the news about gaming teams and tournaments. As a rule, these people don’t have a wage job. Their work is focused on Internet cafes, gaming lounge business, bets, and sometimes other related businesses. Usually, these people start with a small budget and gradually increase their income.Those who managed to properly organize their business and make a profit, begin to open a chain of Internet cafes, some sell franchises.
On rare occasions, there are businessmen, possessing entrepreneurial experience from other projects, with a million-turnover, who open Internet cafe out of curiosity and desire to try something new. In this case, they invest a lot of money at once. Often, these business owners are interested in holding tournaments in specially equipped cyber arenas.
There are also those who don’t know anything about this kind of business, rather they’ve been told that opening an Internet cafe business is a way to make money easily and fast.
No matter which group you belong to if you are considering launching an Internet (cyber) cafe you will need to devise a business plan. Hereby we introduce an example of an internet cafe business plan, which can be modified according to your geographies and goals.
Pros & Cons of starting an Internet Cafe
Before establishing a business it is always useful to make up a list of advantages and disadvantages. We have gathered some of them, which are relevant for an Internet cafe business, yet keep in mind, that it might look different in each case, depending on the particular market and the entrepreneurial experience of yours.
- Business works 24/7. In practice this means that as an entrepreneur you have to be constantly in touch to solve problems that may arise (e.g., violation of the rules by clients, various unforeseeable situations etc.) At least in the beginning you need to be fully involved in order to understand the specifics of the business, the target audience, identify weak spots etc. It is also necessary to be aware of the latest innovations in the field of gaming and esports.
- It is difficult to scale the business. Internet cafe business has its limits. Once a company is launched, pays back and starts to bring net profit, there are just a couple of options to scale: either to sell franchises or open a network of Internet cafes. You can establish a business and get a stable income, yet it will always remain at the same level.
- Regular update/replacement of equipment. Each product has its life cycle. Since computers in Internet cafes are used constantly, their wear and tear happens way faster. Besides regular maintenance, cleaning, and minor repairs of the computers, it is necessary to completely replace the equipment every 2-4 years. First of all, because of its wear and secondly, due to outdated parameters. Every year new games are released, increasing the requirements to the computer components – processor, video card, memory etc. Fast and powerful computers are one of the reasons why gamers visit cyber cafes. Thus, if you do not update the equipment, you risk to lose part of the target audience.
- Low budget needed for start. Compared to other businesses, cyber cafes are generally simple to set up. Main costs for launching an Internet cafe comprise computers, monitors and consoles. An average business with 15-20 computers, will require between $30,000 and $50,000. This is a rather small budget for business, which in time will bring you regular income.
- Payback after 12 months (average). Cyber cafe business, you can quickly setup and configure all the processes, provided you thought everything through and made preliminary calculations. The payback of such a business can take from 9 to 14 months. Then you get a net income and can plan to expand. Of course, everything depends on your particular case, and if you add a bar and kitchen in parallel, then it may take more time.
- Little competition. 15 years ago, when Internet cafes were very popular, there was a big competition. There were many cybercafes where one could go, and there were a few or no empty seats. Today, the focus has shifted, as everyone has a computer at home. Cyber cafes are made for the atmosphere, community, and a possibility to play on professional PCs. The second wave of popularity of cybercafes has just begun, yet still few competitors, which makes it possible to quickly attract the target audience to your place. At the same time, more tournaments are being held every year.
- Combination with other types of business. As a rule, the main service of your business will be providing access to the Internet, and/or new games on PCs and consoles. In addition, you can expand your business with related services. If you decided to start a cybercafe business you might face the situations when some of your clients ask for photocopies, printing documents, photos, etc. By simply buying a printer-scanner you can get additional income, while it will also be useful in the daily work of the cybercafe. Also, when players spend more than 3-4 hours in the Internet cafe, they need at least one break to eat and drink. Thus, building a coffee area will bring extra income and allow your clients to spend more time in your cybercafe.
What products and services cybercafe business provides?
When devising a business plan for your Internet cafe it is helpful to distinguish between the primary and additional services.
Primary service – within this section think of the core service that your cyber cafe company provides. Is it good connection to the Internet, gaming facilities, possibility to use expensive software for a small price, or an equipped coworking space? Pick out one thing that will serve as a pillar for your business, think of it as your unique selling proposition (USP).
While choosing a core service mention in your business plan the impact that it will cause. Speculate on how your customers’ life will be affected by the service(s) that you provide? Maybe you make people happy, satisfied, productive, entertained. You help the local community to stay connected with the rest of the world and fulfil their goals by the help of Internet connection / modern computers / gaming facilities etc.
It might be that your core service will be focused on esports. This field is getting more and more popularity, encouraging e-Sports schools being opened around the world. With this regard, many cybercafes nowadays also provide separate rooms for training esports teams.
Additional products/services. Now time to brainstorm further. Make up a list of accompanying services that will be offered in your Internet (cyber) cafe and one-by-one write about the impact they are supposed to make for your customers. You can also use the items that were mentioned above, yet were not defined as a primary service. Additionally, you can include the following options to your service list:
- Cafe serving beverages / snacks / healthy meals
- Copy center services
- Private working space (rooms)
- Kicker, darts, etc.
Once your list of primary and additional services is ready keep it at hand. The next step would be to define their prices. Easily said, but this task will require thoughtful consideration. Besides checking the prices of your competitors and willingness of customers to pay, you will also need to count your expenses and comply with financial goals you set. You should also observe the habits of your customers, and possibly introduce a dynamic pricing scheme (when prices are flexible and depend on the day time and demand). You should also consider introducing system of discounts, special offers for loyal customers etc.
Comparison to competitors
Check your competitors, define their market share, strong and weak spots. This will then help you to find your position or niche on the market, as well as set more realistic goals on sales and profit.
Why should customers choose you over your competitor? This question is very important for defining your unique selling proposition (USP), discovering the pillars of your internet cafe. Check the list below, pick the points that are relevant for your case and expand if necessary.
- Upscale equipment (laptops, computers, printers, scanners, headsets, consoles (Xbox, Playstation), gaming mice, professional keyboards, additional gadgets- VR glasses, Gaming wheels, controllers etc.)
- Comfortable gaming chairs
- Fast and reliable Internet & Wi-Fi hotspots
- Besides state-of-the-art hardware the computers will also come with professional software (e.g., Adobe Cloud Programs) and gaming platforms (e.g., Steam). Upon customer request, the Internet cafe business can also acquire a license for a particular software.
- Possibility for open space and private working rooms/cabins
- Convenient (central, unique, extraordinary) location
- Fair prices, convenient booking system and payment options, bonuses, client discounts etc.
Internet cafe business plan introduction
Business name. Give your internet cafe a name. Be creative, make sure it fits into the whole picture of your business concept. Double-check that it’s different from those of your competitors and easy to remember for your customers. Here you can also consider buying a franchise. In this case, you will build your institution based on the existing internet cafe business model which proved its success. Basically, you will get a ready-to-use guide on how to open an Internet cafe, which will save you time, resources and efforts. However, keep in mind that along with convenience and support that you get as franchisee, you are limited to a certain level in strategic and managerial decisions. Thus, for experienced and ambitious entrepreneurs, nurturing novel and fresh business ideas in mind, franchising won’t be a suitable option.
Legal business structure. Every business is a legal unit with a specific structure. Think of yours. Will it be a sole proprietorship or a partnership, Limited Liability Company (LLC) or a corporation? Are there any investors involved? While choosing a structure for your business consider such impacting factors as flexibility, complexity, control, permits, licenses, taxes and other regulations.
Brief description of what your business does. Here you should be able to explain in a nutshell your business concept.
Mission. Besides making profit your internet cafe first of all should serve a public good. Think of those social solutions that you bring. Your cybercafé can, for example, fulfill the following missions:
- It provides an easy, reliable, safe and affordable access to the Internet.
- It serves a meeting place for sharing online experiences.
- It accommodates a creative and comfortable environment for people to learn, work, play and relax.
What problem does your Internet cafe solve for your customers? Possible answers here might be the following:
- bad PCs at home that do not allow people to play at maximum settings or in the latest games;
- no privacy at home (parents/ partner or children interfere, etc.)
Think of any other relevant points, depending on your case. Maybe it is also useful to conduct a focus group to identify other customer needs.
What results does your internet café create?
- Customers get things done by means of having a quick, reliable safe and affordable access to the Internet
- Customers enjoy being in a creative environment, using affordable upscale equipment for their studies, work, gaming or entertainment
- Customers are happy to have another place for making friends and connections, while sharing their online experiences.
Think of any other relevant points, depending on your case.
How does your internet cafe create those results? By means of providing necessary equipment (computers, software and access to the Internet) in comfortable premises at a convenient location, offering other services (e.g., food & drinks, open-space and private rooms) to meet customer needs and ensure best-in-class user experience.
Who does your company serve? Again, think of your Personas. Which customer cluster reflects the main target audience? Are these travelers, students, professionals, gamers etc.? What is their average age? What are their core needs? It is important to remember that the choice of business model and related services will change the target audience, and vice versa. As a rule, the majority of players in cyber cafes are pupils and students. At the same time the related services a cybercafe provides will directly influence the target audience. In case the cyber cafe also sells alcohol, hookahs, etc., the clients will then be different. You can also expand the target audience by means of equipping your Internet cafe with gaming consoles, e.g. Xbox or Playstation.
Why do you do what you do? Reasons for you to run an internet cafe might be numerous and diverse. Yet try to figure out what it means to you. Maybe you’re an exper t in the field of cybercafes or you possess suitable resources for this business. Maybe there is a sharp demand for such a place, but none or little supply. Maybe you yourself belong to the target audience and know the needs of the customers as no one else. Or it has always been your dream to own an internet café. Sincere answer to this question will help you to understand your motives and plan more realistically not just in a short term, but in a long-term perspective.
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Internet cafe setup requirements
Think here on your step-by-step plan or proprietary system. List a complex of providers, suppliers, processes, tools, or systems that you own, granting your internet cafe a benefit or competitive advantage. As a basic think of the following:
- Location (rent or buy or build)
- Design and renovation of the premises
- Supply of furniture (tables, chairs, sofas, bean bag chairs) and equipment (coffee machine, vending machines, etc.)
- Provider of the Internet
- Supplier of computers, and other devices
- Software Licenses
- Supply of additional services (drinks, catering)
- Team – number of employees, their roles, responsibilities, shifts
- Internet cafe management software
Here it is relevant to remind that provided you go with the franchise option, the proprietary system as well as the main cyber cafe requirements will be provided by franchisor for you to use. Of course, the terms and conditions might be different depending on the agreement, but the fundamental restrictive unit for the beginning you will get in most of cases.
What are your objectives? (define your goals) Last but not least – schedule your goals. Elaborate some plans regarding sales, revenue and profit you intend to make. Devise a roadmap of future development of your business. Think of your goals in terms of short-and long-time perspectives. Draft them for 1-year, 2-years, 5-years time span or longer. While setting your goals on the paper use the rule of S.M.A.R.T. In other words, keep your goals Specific, Measurable, Achievable, Relevant and Time-bound.
At this stage, make sure to gather as much information about the market, as possible. Invest enough time to research the general state of matters and trends. A useful technique to apply at this stage would be PESTLE analysis. The name stands for the abbreviation of the components of the analysis and is used to scan the following macro-environmental factors – political, economic, social, technological, legal and environmental. When analysing the above mentioned factors, try to identify the elements within each of them, as well as seek to understand what is their business impact. For example, does the current political situation create a solid basis for you to start the internet cafe business? Is the economic condition favourable for introducing your service to the market? Is the society open/ willing to pay for your service etc.? The following table provides the respective questions to assist you in conducting PESTLE analysis.
Additionally, you can make a SWOT analysis to identify strengths, weaknesses, opportunities and threats for your business.
Market trends & needs
To gather information about your target market turn to statistical data, relevant market reports, professional periodicals, marketing research agencies. While doing your research check the related industries and fields – Online Gaming, Video Streaming, Cyber Security, esports etc. Also look at associated issues in the respective fields: Internet penetration, number of available commercial wi-fi locations and hotspots, number of Internet users, reasons for using Internet etc.
Some introductory data and insights can be found at statista.com. For example, the esports market has been consistently developing in recent years. It is expected to grow further in the next 3-5 years. More and more people nowadays come to watch how their favourite games are being played by world recognized gamers. As indicated by the Newzoo there are determined to be 646 million viewers of esports worldwide by 2023, which is over 30% expansion from the 395 million in 2018.
The fans are spread over the world, yet the Asia Pacific area is by all accounts a specific hotspot for esports. In the USA, meanwhile, some 9.2 % of web users in 2019 viewed esports, with the figure expected to rise to 15.5 % by 2023.
As the statistics show every year more and more tournaments are held, bigger audience is attracted. Thus, while planning a cybercafe business one should keep in mind that the majority of gamers also make bets in the field of gaming and esports.
Internet cafe marketing plan and strategy
Every marketing action – be it a message, flyer, social post or event – is aimed at people. Thus, when devising an internet cafe marketing plan it is crucial to gather as much information about your audience as possible.
Demographics & Psychographics. Define the demographics of your target audience – what is their age, gender, income, place of living etc. Then collect their psychographic characteristics – such as interests, desires, fears etc. In the process of collecting these data you might come up to the fact that there are several groups / clusters of you TA. Use Personas method to differentiate them. This will help you achieve the goal of your marketing campaigns, improve your lead generation and conversion strategy, as well as offer more suitable products/ services to your clients.
Remember, that a slight detail can make a huge difference. What if a significant part of your customers are vegans, environmental activists living a sustainable life? How can you make their experience in your cafe more comfortable – provide vegan snacks, supplying the place with renewable energy sources, equipping it with eco-friendly furniture etc. The variations are endless here. Your task is to identify the factors that will signify the interest and bonds of the customers to your Internet cafe.
Where can you find your clients? Where can you find each of them – online or off-line? Think on which online services and social media they use. Do they actively participate in social media groups, do they read expert magazines or do they attend festivals? The clearer picture you will get on this stage the easier it will be for you on the next steps – when drawing marketing strategy (visibility, lead generation and conversion).
Visibility (awareness) strategy. How people will learn about your Internet cafe – via ads in Google or social media, through paid commercials on TV or in YouTube, by means of influencers, flyers or word-of-mouth? Options and combinations can be numerous. The key factors here are budget and efficacy. You can spend thousands and get zero results, or you can spend almost nothing but hit the target. Look first at the answers from the previous step, identify the channels through which you can reach your audience, compare the prices of the channels. And then build your strategy. Remember, that the advantage(benefit) of digital marketing is that you can test different strategies with relatively low budget, see what works best and then rise the costs. Consider turning to a digital marketing agency if that corresponds to your needs.
Additionally, brainstorm for info drivers and events that can be part of your cybercafe marketing strategy. One of the possible promotion steps for your business can be hosting esports tournaments.
This step requires much thought and effort. The core question here is “How will you establish contact with potential customers?” It is most likely that you will apply digital tools and online marketing. In this case your lead generation will comprise the following elements: content, SEO, promotion, conversion and analytics. Let’s briefly look into each of these.
Content strategy comes first. This will characterize the story behind your services, the key messages you send to your target audience and, also, the tone of voice in which they will be articulated. The content will be sent through all possible channels you decide for: website, landing pages, emails, social media, blog post as well as Call to Action.
Website strategy. If your internet cafe can’t be discovered on the web, then it doesn’t exist. In other words to make your cybercafe visible you need to have a website. Besides raising the rating of your Internet cafe, a website is also an excellent informative tool, that helps to attract more clients from organic search. Generally, a website will build trust to your institution from clients and partners. Thus, if one day you decide to grow by selling cyber cafe franchises, a website will be a big plus.
Promotion strategy as a rule starts nowadays with Social Networks – Facebook, Twitter, Instagram, YouTube, TikTok, Snapchat. Check the most relevant for your type of business. For example, TikTok and Snapchat are the main channels for attracting teenagers, while adults are bound to be found elsewhere. Some question here to help you with the decision are the following:
- Where can you gather most of your TA (target audience)?
- Which of those are most efficient with regard to available budget?
- Which Social Media fits the best to your content strategy and chosen tone of voice?
In case you identify several platforms which are relevant for your internet cafe business it’s then worth trying to try all of them and see which ones work best in your field, region, market. Within your promotion activity you also manage social posts and email communication.
Conversion strategy. Once you’ve got your leads it’s time to convert them into prospects or customers. The method of communication you decide – be it a phone call, email or personal message in social media. Within this stage you should look at the lead nurturing lifecycle and devise a complex of measures to acquire, keep and grow your customers – e.g. outreach programs, loyalty programs, organisation of events, system of upselling, cross-selling etc.
Analytics strategy. The essential part of every strategy are the metrics and indicators that help to measure and analyse the results of the steps having been taken. Principal performance indicators are CTR, CPL, (Website) Rate of Conversion, Leads to qualified leads, Leads per channel etc. All the necessary info regarding these and other indicators can be found in the Internet, thus we shall not focus on them within this article.
What you need to keep in mind however, that analytics is an important task, which you better not skip. Once you identify the cost of a lead from each channel, try to reduce it to a minimum without loss in quality. Check the reports and regularly manage your advertising budget. After six months, compare the figures, analyse the amount of money spent on acquired leads to the quality of these leads.
Internet Cafe Business Plan Template
Written by Dave Lavinsky
Internet Cafe Business Plan
Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their internet cafe companies.
If you’re unfamiliar with creating an internet cafe business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.
In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an internet cafe business plan step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your internet cafe business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start an internet cafe business or grow your existing internet cafe company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your internet cafe business to improve your chances of success. Your internet cafe business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Internet Cafe Businesses
With regards to funding, the main sources of funding for an internet cafe business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for internet cafe companies.
Finish Your Business Plan Today!
How to write a business plan for an internet cafe business.
If you want to start an internet cafe business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your internet cafe business plan.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your executive summary is to quickly engage the reader. Explain to them the kind of internet cafe business you are running and the status. For example, are you a startup, do you have an internet cafe business that you would like to grow, or are you operating a chain of internet cafe businesses?
Next, provide an overview of each of the subsequent sections of your plan.
- Give a brief overview of the internet cafe industry.
- Discuss the type of internet cafe business you are operating.
- Detail your direct competitors. Give an overview of your target customers.
- Provide a snapshot of your marketing strategy. Identify the key members of your team.
- Offer an overview of your financial plan.
In your company overview, you will detail the type of internet cafe business you are operating.
For example, you might specialize in one of the following types of internet cafe businesses:
- Internet kiosks : In this type of internet cafe business, small kiosks are built and positioned to be temporary internet cafes, as customers who visit the kiosks search the internet for directions, locations and other information.
- Cyber cafe: A cyber cafe is similar to an internet cafe, although the usage of the internet may be mixed with gaming and internet searches.
- Gaming cafe: Popular with teens, a gaming cafe offers computers and gaming accessories connected to very high bandwidth, which allows for specialized gaming.
- Commercial cafe: These internet cafes exist to serve commercial establishments with a need for high bandwidth and dedicated spaces.
In addition to explaining the type of internet cafe business you will operate, the company overview needs to provide background on the business.
Include answers to questions such as:
- When and why did you start the business?
- What milestones have you achieved to date? Milestones could include the number of customers served, the number of commercial contracts on file, or reaching X number of return gamers served, etc.
- Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry or market analysis, you need to provide an overview of the internet cafe industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the internet cafe industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.
The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your internet cafe business plan:
- How big is the internet cafe industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential target market for your internet cafe business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section of your internet cafe business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: individuals, gamer groups, and corporations.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of internet cafe business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other internet cafe businesses.
Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes private homes with high bandwidth internet services, video game lounges, and gaming casinos. You need to mention direct competition, as well.
For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as
- What types of customers do they serve?
- What type of internet cafe business are they?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide options for multiple rounds of gaming play?
- Will you offer internet services that your competition doesn’t?
- Will you provide snacks and other amenities?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a internet cafe business plan, your marketing strategy should include the following:
Product : In the product section, you should reiterate the type of internet cafe company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide an internet cafe that serves light snacks and meals, along with a gaming lounge area?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.
Place : Place refers to the site of your internet cafe company. Document where your company is situated and mention how the site will impact your success. For example, is your internet cafe business located in a busy retail district, a neighborhood strip mall, or a standalone building near a college? Discuss how your site might be the ideal location for your customers.
Promotions : The final part of your internet cafe marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:
- Advertise on radio stations and/or gaming magazines
- Reach out to websites
- Distribute flyers to card collector and game stores
- Engage in email marketing
- Advertise on social media platforms
- Improve the SEO (search engine optimization) on your website for targeted keywords
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your internet cafe business, including setting up game play for groups, planning and providing internet sessions, billing customers, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth gaming session, or when you hope to reach $X in revenue. It could also be when you expect to expand your internet cafe business to a new city.
To demonstrate your internet cafe business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in managing internet cafe businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an internet cafe business or successfully running a card and game store.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you see 30 internet customers per day, and/or offer group gaming sessions? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your internet cafe business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement
Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a internet cafe business:
- Cost of equipment and accessories
- Payroll or salaries paid to staff
- Business insurance
- Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, internet bandwidth, office supplies
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your multi-year contract for internet services or your location lease.
Writing a business plan for your internet cafe business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the internet cafe industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful internet cafe business.
Internet Cafe Business Plan FAQs
What is the easiest way to complete my internet cafe business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily write your internet cafe business plan.
How Do You Start an Internet Cafe Business?
Starting an Internet Cafe business is easy with these 14 steps:
- Choose the Name for Your Internet Cafe Business
- Create Your Internet Cafe Business Plan
- Choose the Legal Structure for Your Internet Cafe Business
- Secure Startup Funding for Your Internet Cafe Business (If Needed)
- Secure a Location for Your Business
- Register Your Internet Cafe Business with the IRS
- Open a Business Bank Account
- Get a Business Credit Card
- Get the Required Business Licenses and Permits
- Get Business Insurance for Your Internet Cafe Business
- Buy or Lease the Right Internet Cafe Business Equipment
- Develop Your Internet Cafe Business Marketing Materials
- Purchase and Setup the Software Needed to Run Your Internet Cafe Business
- Open for Business
Where Can I Download a Free Business Plan Template PDF?
Click here to download the pdf version of our basic business plan template.
Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.
We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.
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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
OR, Let Us Develop Your Plan For You
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how Growthink’s business plan services can give you a winning business plan.
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Internet Cafe Business Plan – Big Surf
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8.1 Mortgage/Rent Requirements
Premises in CBD leased at rental of R6 000 a month. Two year lease with an option to renew for a further one year. Escalation: none in year two; 7% in year three.
8.2 Regulations & Permits
The following are required:
- Registration as a business
- Business trading licence from Kouga Municipality
- Restaurant trading licence from Kouga Municipality
- Health inspection certificate from Kouga Municipality
- Fire safety certificate from Kouga Municipality
Agreements are to be entered into with the following to ensure continuity of maintenance and support in the medium term:
- Internet Konnect, Port Elizabeth
- EC Computing, Port Elizabeth
- Go Rentals, Port Elizabeth
8.4 Trademarks & Copyrights
The Big Surf Internet & Lifestyle Café! name, logo and trademark will be registered in South Africa.
9. FINANCIAL PLAN
9.1 Start-up Capital
Analysis of Start-up Costs
9.2 Fixed business costs
Analysis of Monthly Expenses
9.3 Break-even Analysis
In year one, a break-even scenario would be adequate. To break even, the business requires a turnover of approximately R60 000 per month, which equates to R2 400 per day (assuming a six-day week and 25 working days per month). This could comprise the following mix of average daily sales:
9.4 Important Assumptions
9.5 Projected Profit & Loss (first 12 months of operation)
9.6 Projected cash flow
* See Section 13 (Appendices) for full Projected Cash Flow statement
9.7 Projected balance sheet
* See Section 13 (Appendices) for full Projected Balance Sheet statement
9.8 Business Loan / Start-up Capital
No bank loan is being sought. The owner will fund this from his own savings and via private loans from family.
10.0 Personal financial statement of owner
* See Section 13 (Appendices) for full Personal Financial Statement of owner
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