Starting my first business

[m1k3]

I've been working on ideas, and some details for opening a business where I live, but I am looking to find if anyone has some suggestions or comments as to things that I could be doing, but am not. Here is a quick overview of my ideas / what I have been working on so far:
My idea is to open an internet cafe / gaming facility. The cafe would be the main use of the building during the morning and afternoons, and the gaming side would be used during the night. This way the building and computers could be getting use at all times of the day instead of just at night.

Some things I have been working on are a business plan, ways to reduce start up costs, and finding a location.

I have quite a lot of experience with computers so, I plan on building them all myself, with some help from friends who build computers, the same goes for networking. I am putting in an application to some coffee shops to get a job and learn how to make all the drinks, observe how employees steal from the company, ect. I have made a list of companies which produce computer hardware, and if possible trying to create deals with them where my store would advertise in store for them, in return for discounted parts.

Basically my main needs are:
Learning laws (employment, etc)
Ways to contact companies about making deals with them
Ways to start finding funding
And any other advice

Any suggestions or comments would be greatly appreciated. ~ Mike

[StoneRoseDesignCom]

>>My idea is to open an internet cafe / gaming facility.

Ok, why?

Do you have any examples of a successful internet cafe? I've not a single one. Don't you think if it were a good choice that someone would have found (like Dell or Gateway) a way to franchise it or provide it through starbucks or borders or barnes & noble? (they don't even bother to try and provide it themselves...)

Why start a business that has such a crazy high startup cost and very little need....folks who need to get online have access already in their home, office, and even car.

Start a service business....skip the costs of inventory and maintenance and such.

If you think you're smart enough to make that business work then you're smart enough to find a better one...one with crazy low startup costs, under $1000 for certain.

[m1k3]

i know of many successful internet cafe, and they are growing much more popular. www.cyberjocks.com is just 1 example. if anybody has positive suggestions or comments and would like to post that would be appreciated.
~ Mike

[GriZzly]

I agree with stonerose on the internet cafe aspect, anyone who knows how to use a computer most liley has one. But the gaming centre part is completely different. This is actually an extremely successful industry. If you can get a decent loan and cheap premises you can make yourself a very successful business. I am friends with a guy that started a small gaming centre (30 terminals) and now has opened two more within 12 months.

You will need around £20,000+ (about $40k) for startup. You can hire-purchase the computers. Within 12 months you will hopefully have made enough revenue to own the computers outright (by then ofcourse you will need to update them anyway) It is however a high-risk venture and if your cashflow aint too good you can end up with debts, a 2 year lease you can't get out of, and no fixed assets to show for urself. But if you succeed...the potential profits are huge!

[m1k3]

The main goal of the store, is to mainly be 2 entities, a cafe and a gaming center. But computers will be available to the cafe, b/c it can get additional use out of them. Funding isnt an issue right now, right now im trying to find out if anyone has some suggestions for resources where i can speed up my education of tax laws, and other legal knowledge needed for starting a business.
Thank you, Mike Halagan

[joshw]

Read "Pour Your Heart Into It" by Howard Schultz. It is the Starbucks story from the ground up. It has some great insights into any business...especially the cafe type.

[m1k3]

thank you, ill definately go look for it tomorrow. if anybody else has more suggestions they would be appreciated, as i can never be too prepared.
thanks again, Mike Halagan

[gaetanfortier]

it is definalty a risky business like everyone says, but hey if you can succeed i'l be glad for you, you've accomplished doing something you hold a passion for.

As goes for leagal fee's, laws, taxes, needing to keep employment records etc...
I'm no expert at this but try your city hall, or city web site they usualy have an economic developement link or something of the sort. keep in mind the city wants you to thrive they want you to take ppl off unemployement etc... they usualy hold all the information you need to help start your business.

Hope I was of help,

Gates

[m1k3]

Ill definately look into contacting them. Thanks for the help.
~ Mike

[Khalidwa]

Its risky, there are sooooo many coffee places around and internet cafe's.

Look at Stelios from Easy.com - his internet cafe's lost out on soooooo much!

If its in your heart to make a profitable internet cafe, look at the following things for extra income...

1. LAN Gaming birthday parties
2. In house advertising - get local companies to advertise on e.g the computer screensaver
3. Deals - gaming access for an hour and a coffee for $???
4. Website design, computer maintenance & repair - do anything you can whilst you are quiet for extra income
4. PC Software/Hardware sales - sell things for people at home, make it a pc sales shop too!
5. Membership - those that are addicted, get them to sign up for membership to you have a constant income.
6. Monthly gaming competition - put a $100 prize or something and charge everyone for entering.

I hope my ideas help, these are just off the top of my head!

[tshesse]

don't forget the elder society.

Hold free lessons ... how to use email, how to use internet, how to use chat etc ... go to elder care facilities once you have done all this and offer to setup a "computer lab/area" (for a fee of course) or offer to get on their weekly bus route trips where they come in for an hour and check email from their family (you charge of course)

just some suggestions

[m1k3]

Lately I have been thinking about dropping the cafe side atleast initially, and just have a gaming center. This would lower start up costs greatly and make it more realistic for me to start sooner, even though not having a cafe would reduce potential sales and profits greatly. Khalidwa, i have had many similar ideas, and its good to see that others see the same way. Right now my biggest concern is how to reduce start up costs, i am trying to contact major companies which produce pc hardware, such as AMD, Nvidia, Crucial, etc. Also i have a few ideas as far as advertising for those companies within my store, and possibly getting reduced prices for when i buy all the pc hardware. If anyone has any suggestions as to what the best way to approach these companies some propositions, it would be appreciated.
~ Mike

[Monchd]

I have to say, a cafe together with the computer aspect-cyber cafe is a good idea. But maybe starting up first with a computer section and bringing in the cafe maybe a year later cld be one way to go about it. write up a proposal and call up those sales reps from major computer companies and have a chat with them. Enquire how much it costs, try negotiating with them, find out whom u should speak to in the company regarding propsing the idea to. And finally ask to arrange a meeting time where u can present your proposal to them. Another way would be to email them and tell them that you will be following up soon. The first is probably a more direct and quicker approach. Good luck at all!


Monchd/Monday's Child
Founder and Managing Director
www.monchd.com

[m1k3]

I've contacted a community advisor, and we are going to meet sometime this week, and I plan on mapping out some different business plans to see what is the most practical plan for starting up. Thank you monchd, with finals ending next tuesday for me, and winter break about to start, i plan on emailing the companies I hope to propose ideas to, and then follow up sometime over my break.
Thanks,
M1k3

[desimv1]

Hi Mike,

I'm not sure if you've been to the Small Business Administration site, but they have links to a lot of the resources is sounds like you need. www.sba.gov

Also www.eventuring.org is the new site to replace entreworld. It is mostly geared towards growth strategies, but it still contains some of the basics.

Best of luck,
D

P.S. I like the cafe and gaming idea. I think that you are just going to have to be extremely careful about location and pricing. And you are really going to have evaluate your target market. Most gamers prefer to be in a social setting that is virtual not physical. Getting over that barrier will be key.