[FONT=book antiqua]Hey business folks, I have been thinking of starting a cybercafe and that’s why I have decided to talk to experts in this forum. To be brief and to the point, here are my questions: 1. Is a Cybercafe a viable business that can sustain one’s daily bread and even save for future investments?[/FONT] [FONT=book antiqua]2. What are the main challenges in this business?[/FONT]
[COLOR=rgb(44, 130, 201)][FONT=georgia]Your contribution is highly valued. Thanks!!![/FONT]
Kwanza soma the two threads below Setting up a cyber cafe naomba usaidizi - Science & Technology - Kenya Talk Cyber cafe bussines - Business - Kenya Talk
My personal opinion: Yes, a cybercafe is still a sustainable business, despite what the naysayers claim. As with any business, you must take your time to build it. Customers just don’t start frequenting your biz, so you should ideally start it as a side hustle and keep investing in it for 6 months to a year, by which time it will have gained traction. If it’s your only source of income and you’re depending on it for everything (rent, food, matumizi mbalimbali), it’s gonna be a lil tricky.
Look for a place with high traffic, even if it means paying 3 to 5k more in rent. The excess traffic will be worth it. Focus on printing, typesetting, binding, KRA PIN, etc. That’s where the money is. Browsing should be a by the way. You can even start with three client machines, but make sure you have a printer(s), laminator, binding machine. You can add more client machines as demand rises.
Another revenue stream is accessories kama flash disks, data cables, earphones, phone covers etc. Most of those have profit margins of 50% and above, and most customers buy them impulsively. Recurring expenses include rent, electricity, internet, printer ink, salo (if you’ll employ someone). As the machines grow old, you’ll also spend more on repairs and parts (new RAM, hard disks etc). One off expenses ni kama license. Be ready to deal with copyright thugs (ukishikwa na local songs and movies unaeza toboka up to 10k, unless you know a cop somewhere who can bail you out).
Thank you. I’m thinking of starting one too. Quick questions. Generally how much would it take as initial capital. Excluding rent. Roughly what is a realistic figure?
150 to 200k is a realistic figure, but if you want it badly enough, you can even start with one server, one client computer and the printing facilities. Excluding rent, budget inaeza kuwa:
Fittings: 30,000 (hapa pia you can start with a basic setup, it doesn’t have to be a worldclass display)
1 server: 20,000 (ex-UK za Luthuli will do the trick, core i5)
3 client: 12k X 3 = 36,000
Epson/brother CISS printer 18,000 (you can buy a more powerful one once the business becomes viable. Printing photos is also profitable)
Laminator 4,500
Binder: 4500
Accessories: 30,000
Internet connection: 15000
Others: 10,000
Total: 168,000
Hapo ni wewe utaamua what’s more important. You can start with 2 client machines instead of 3, na 20k in accessories instead of 30k, which will bring the cost to under 150k. That’s why it’s important to have another source of income, coz for the next 6 months you can add one client computer per month, within no time ukuwe na 10 client machines. But if it’s a high traffic area the biz will pick fast. Unaeza pia ongezea PS, but hapo you’ll clash with adult cyber users because gaming huleta kelele. Ukiongeza PS4 moja na TV ya 32 inch hesabia 50k extra (PS 32k na TV 12 to 15k)
Hapo siezi kwambia, depends on various factors. Apart from traffic ata your chemistry with customers matters. You can have two cybers in the same location with similar equipment lakini mmoja amek sales za 5k per day na mwingine 8k.
I mean it’s reasonable to ask what the returns are for a place that you’ve invested 200k. If the first few months are slow OK. Sawa Sema hivyo. But it makes sense to ask what the return on investment can be all things considered.
You make your own decision. But personally I think cyber is a dead business. I wouldnt invest in one at this era of 4G amd 5G coming. Consider providing WiFi to homes. Which also has a narrow lifespan. Soon, like South Korea, internet will be free for everyone everywhere…or just extremely cheap.
Over 90% of South Korea has access to superfast, affordable internet. PC cafes are still big business there. It all depends on how you adapt to the changing landscape.
If the video you have shared is to go by. This is a gaming cafe/centre. and what I meant was, cyber (for internet access) will not “sustain daily bread”.
If you are setting up a gaming centre, they that’s a totally different biz. Utilizes internet but is totally different with different dynamics and metrics. Actually it’s more costly.
They’re not specifically set up for gamers, but since that culture is an important part of society there, any internet cafe must logically include games as part of its services. The basic point is that you’re charged for the time spent, you decide what to do on the machine. I gave it as an example of adapting to a situation. Koreans are rich enough to buy their own consoles/video games and play from the comfort of their homes. Why do they need these cafes? Their owners have found a way to add value to a service that everyone can access.
Ahh…sure. You are right. Now I get your point. It’s like having people to come to a “simu ya Jamii” and yet they have mobile phones. very well said, if you can add such a value to a cyber at this age, then you will be a genius and you will have hacked it.
Though you will be in constant competition with dedicated Video games parlours. And you may loose coz the minimum graphics and system requirements for a gaming PC are just way crazy!!
