The Advantages and Disadvantages of Starting an Internet Cafe

Many people hate working for a boss and aspire to have their own business. They value not only the potential for monetary success but also independence. But one problem that arises is that the number of options is overwhelming. There are so many types of businesses to start that aspiring entrepreneurs don’t know where to start. One popular idea is an internet cafe. As with any business, there are advantages and disadvantages to starting one. Here are some things to think about before taking the first step.

The advantages of an internet cafe are numerous. Probably the biggest is the low initial cost. The biggest limiting factor for aspiring entrepreneurs is a lack of capital. Internet cafes are relatively inexpensive to start with. Computers are cheap. The work does not need to be graded. Furniture doesn’t have to be expensive. This is in stark contrast to a restaurant, which generally requires special equipment, extensive renovation, and a larger area and number of employees. A franchised restaurant would also be required to pay the franchise fee.

Second, there are many ancillary income opportunities. The most obvious is selling internet time. But you can also target gamers by buying some high-end computers and charging more. You can also sell food and drinks (coffee is a popular option) and computer repair services. These multiple sources of income will help stabilize your income base.

There are several downsides to starting an internet cafe. Since the initial costs are so low, the market is extremely competitive. Many people consider an internet cafe a basic service and will opt for a new store if it is cheaper or if the connection is faster.