Starting A Cyber Café Business with N1m ($7000) Only

                                                                                                                                                                                                                                                                                                                      You will agree with me that many people have the money (small or large capital) and do not know were to invest it so as to produce a recurring income. In this article I will be raising a business plan which you can engage in even with your limited resources.                       

 Starting a Cyber Café Business

Starting a cyber café business requires technical and expert support, a service I will be providing to you free of charge in my blog. However there are certain things you need to know about starting your own business which may include:

1. Initial capital: you can start a standard cyber café with just N1m that is about $7000 or even less considering your taste. It is advisable to come up with a business plan for potential investors and to raise loan for this investment if you do not already have the money.


2. Location: the business should be located in a place such services is highly demanded. No matter how highly equipped or beautiful your cyber café could look, you will never make sales if you are in the wrong location. Proximity to school etc. is advisable.

3. Choose your internet service provider (ISP): most likely you will need to get a business grade internet connection to provide enough bandwidth for your café. Talk to an ISP engineer about the possibilities and ask what special deals are offered for business.


4. Value added services: consider some other services customers may likely seek, such as printing, photocopying, disk and software sales and loading, photo sending, fax, internet calls, and other value-adding services that will give you a big boost among your competitors and drive customers to your cyber café


5. Promote and advertise your cyber café: advertise your services and promote the cyber café by giving a cool painting and decoration to the interior, play some entertainment background music. Use your creativity to make your cyber café the most fun place to visit.


Financial Plan for a Cyber Café
The financial plan I will be discussing here includes the initial start-up budget and the projected cash flow for the first 12 months of operation.

1. Initial start-up budget:

                                                        =N=

Rent (1 year)                                   100,000

Set-up cost (painting, furniture)        100,000

Router                                             10,000

10 computers  (used)                       300,000

UPS (uninterrupted power supply)    80,000

Virus protection                               48,000

Anti-surge                                        12,000

HP server                                        40,000

Client timer software                        50,000

Line giving by ISP for 2months         32,000

Deep freeze                                        -

Microsoft office                                   -

Scanner/printer                                 40,000

Photocopier                                      30,000

Fax machine                                      5000

Generator                                          50,000

Split unit                                            30,000

Networking /cabling                           50,000

Others                                                100,000

Total                                                 N1,089,500

2. Projected cash flow

The monthly estimated cash inflow for this business is =N=160,000

while the monthly expected expenditure including operational 50,000, salaries30,000, 

quarterlyISP subscription20,000, Total expenditure =N= 80,000

You will be riping =N=80,000 monthly as net income and with a 10% growth rate after every 6months you have a 1 year payback period

PROFESSIONAL ADVICE
From the financial plan show it will be realized that you can recoup your initial capital and little interest. The future cash inflow is expected to increase by 10% every six months. More income could be realized by the value added services such as internet calls, printing, photocopying and other business operations.


Given this information I will guarantee that this business is viable and lucrative.