On this episode of livinglifeph, we have another lucrative business that the filipino masses, OFW, Expats, foreigners could own and operate easily.
With the advancement of technology, creating an ideal business in the philippines is one of the toughest choicest some would actually take. Nonetheless, it is worth it, though knowing the pros and cons would contribute to its ideal system. That’ why you also need my Ebook “Living Successfully in the Philippines” – it will be your most useful guide to a successful business, I assure you.
Remember, if you want to live a rich life with financial freedom in the Philippines, you must read this article I made “How to afford living in the Philippines” so that you may learn how to budget and live within your means here in the Philippines.
How to start a Computer Shop or Internet Cafe Business.
Why Computer Shops or Internet Cafe?
Computer shops are businesses that is massively in tune with the filipino culture. From business connection, networking, to dating foreigners or locals alike, to playing games such as LOL or DOTA; computer shops and internet cafes offered their service to provide connections that many people benefited from.
Back in 2002 where internet Cafe was rich in my town here in the Philippines, it became the central spot of communication to OFWs with their families. Hence, creating income from either long hours of chat in YM (yahoo messenger was popular back then) or via social sites where they could provide PASALUBONGS (souvenirs) and coordinate then and there.
Then come by 2005 where online games and online video chat became a hype after the adoption of DSL broadband connections. Those upgrades created lucrative businesses in the Philippines, and in my ebook, I even have a fellow expat that manages to make a living by creating an internet shop business.
You will then see a boom of computer shops that even on this day, still reflects ( or somewhat ) of its success on the glory days of internet cafes and computer shops.
The thing is… is it still profitable at the present?
Profitability in Computer Shops or Internet Cafes are now dependent on LOCATION and DEMOGRAPHICS:
Sad to say but, the glory days of the computer shops and their profitable returns like before in the early 20’s are all slim as of now. I am not saying they are not lucrative business (I would not have it here in the articles if it is.), but what I am saying is that these business has to be created on a profitable location and demographical statistics (based on age and social status ratio) to ensure proper return of investment.
I still remember the days that comshops (computer shops) can be established instantly and pretty much ANYWHERE where there is an internet connection. When DSL became popular on those days, students or even adults travel from a distant town to the nearest comshop whenever their duties or works are done within the day.
I know and I did it too! That’s why I thought before that I would wish to create my own computer shop business.
However, at this present time, that is not the case anymore and here is why.
Because with the advance of technology, people here in the philippines can now manage to own their own computers or laptops. Matter of fact, it is almost required now to a modern college student to have his/her own computer with internet access in order to complete their studies. The same with workers or your average person. Plus, the masses can now own a cheaper or affordable device that could do what a computer does, though, may not be a laptop- cellphones are by now, is the hype.
So how to profit in computer shops based on Location or Demographics:
Well, to each its own experience. But as for my experience, this business is best established at nearby schools.
Malls, offices, or other commercial places are not suitable anymore for this business due to the fact that your potential customers can bring THEIR OWN devices with internet or gaming capability.
On note about remote provinces, or locations where technology might be a bit low, then this business might shine through as long as you have a reliable internet connection (which is kind of ironic knowing the place is remote.) and a working computer.
For demographic data basis, I have researched that middle class families or even families who live in a lower financial standard would actually opt for the computer shop service rather than owning their own device or internet.
That may be due to their frugal nature but I assure you that 70% of the local demographic would still want computer shops or internet cafe rather than spending money on such device with hefty price for the internet.
Age plays a major part for this too, as children or teenagers would likely go out and go to a computer shop rather than stay in the house in the Philippines (Teenagers here have a a pattern with their rebellious age: go out play, go home, eat. They don’t do it all the time, but most do.)
Initial Requirements for a Computer Shop Business or Internet Cafe Business:
Starting this type of business would require a good amount of capital depending for the number of computers to be put up. For a 15 computer setup, I think around 250,000-300,000 thousand php will work.
As for certificates and permits, you usually could just get by with a baranggay permit or a local permit but if you would establish this in a commercial space (which I told you not to anymore), then proper business permits are required so pick your choice. But for me, this article is about how you create you computer shop or internet cafe business with the most minimal financial burden or process.
Some of the expenses to take note:
Computer Units Electricity
Electrical Cleaning Tools
Table and Chairs Personel
Shop furnishing Internet Connection
Yes, computer shop business and internet cafe business could still make you a profit. OFWs often fancy this business and most expats or foreigners could also exploit this business depending on their locations. But a word of advice is to make a prudent choice for LOCATION as I have said here and in my ebook- LOCATION IS THE BASIS OF IDENTITY- hence, PROFIT.
Use your head, your eyes, and interview people out so that you may know if this business is feasible in your town or city. Good luck and if you need a guideline regarding this business, then go ahead and get my ebook for your successful computer shop business launch! (or any type of business you may want to achieve.)