Carry out survey on cybercafé

Starting a business is exciting and will probably be one of the biggest decisions of your life.

However, it can be a daunting task particularly if you have not done it before. Therefore, before embarking on the road to being a successful trader, you should check how deep the waters are before you lower your anchor.

The first thing you need to do is to plan and carry out research on the cybercafé business in your target area. Formulate an idea of how you would like to run your cybercafé and write it down, the different amenities and services you intend to offer and your target market.

Research the feasibility of the business idea. Investigate the demand for the services as well as your potential competitors in the area and estimate how much money you will require to launch the outfit.

SEED CAPITAL

Put down every detail, from computers that you need to purchase to the type of environment you intend to create, and all the operating costs involved.  Once you have done research and planning, write your business plan.

This is important because, you could use your business plan to source for funds by pitching your idea to potential investors and lenders.

It is always advisable to minimise the amount of debt you incur until your business’ cash flow and customer base is well established. Take note, that if you default in repaying the loan, you may lose the collateral you had pledged for the credit.

You could consider if the business is registered as a limited company, and sell shares in the outfit to like-minded individuals with a view raise long-term capital.

Alternatively, you could borrow money from friends and family; however, bear in mind that whenever you take money through a relationship that involves either friendship or blood ties, it may get very complicated in case you default.

You could also borrow from your Sacco, if you are a member of one, or join an investment group or chama where you pool resources together with like-minded peers.

Many investment groups or chamas allow members to borrow from their accumulated contributions and investments and pay back at an agreed rate of interest.

Also, many Saccos are likely to give you a loan, say three times the amount of savings you have accumulated with them.

To stay afloat when one arm is not doing so well, you need to apply some unique features that differentiate your business from others.

SUITABLE LOCATION

For instance, you may offer related services such as selling and servicing computers, design websites, offer search engine optimisation services, networking, computer and software installation, selling of security systems, colour printing and photo copying, hosting computer game competitions or other services such as selling snacks and drinks.

You need to find a suitable location for your venture. Hire and train your employees who are technology-savvy, friendly and easy to work with.

Also try to promote your cybercafé in the neighbourhood using fliers, posters, word of mouth, and other channels.

Finally, you need to listen and incorporate feedback from your customers and take the necessary action.

Internet café business is indeed very interesting and equally challenging. The business plan should be prepared with an eye for detail. When in operation as a means of differentiating yourself, remember to always go the extra mile for your customers. The customer should be your first priority and be sure that they are satisfied.

Finally, continue to evaluate your performance as a business and keep track of what works and what does not.