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Internet Cafe Tips for Investors in the Philippines - Part I September 8, 2006

Posted by chazper in Business.
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I assume that you’ve arrived at this site because you are searching information about the internet cafe business in the Philippines for the purpose of determining whether you’ll push through with your plan of putting up one. 

Good for you! ‘Coz you have made the most important process of all to be an effective entrepreneur… Feasibility Study!

This is not an exhaustive study, but I will just point out the major factors why you should or should not put up an internet cafe in this country based on my experience as an X-internet cafe’ owner. I’ll try to break them down into seperate posts.

It is sad to know that a lot of people do not perform feasibility study before they put up a business. It is also sad to know that other people who where taught how to perform F.S. through education does not properly do it. These people are so optimistic that they are blinded by their desire to have a business of their own.

So let’s get it on! Let us start with the topic of COMPETITION

COMPETITION. “Know thy self and know thy Enemy (competitors)” - And don’t forget to ask HOW MANY ENEMIES will you have? This may be the number one factor that you must consider. Even if you have the skill, the capital, best service, positive attitude, good management, good location, passion for the business… even if you have all of these you will not survive if you will decide to ignore the LAW OF SUPPLY AND DEMAND.

We are in a free market and the “Law of Supply and Demand” will certainly apply. I just can’t understand why there are investors who put up their internet cafe in an area wherein there are 10 internet cafe’s already established! There are a lot of internet cafe that goes to bankruptcy when they ignore that law or in my case I failed to FORESEE the increased in number of internet cafe in my area.

When there are too many i-cafe in one area, the most common thing that will happen is that the i-cafe who has few customers will lessen his service price upto the point that they will go below their “break-even” point just to attract customers. Now it is impossible for you to compete with these “suicidal” competitors who are “operating at a lost”. What do I mean? How many internet cafe do you know who have a rate of 15 pesos an hour? FYI, with this rate, those internet cafe are operating at a lost. Why? Just try to compute for their monthly expenses and DON’T forget the DEPRECIATION (of course you need to get back your investment) of your computers, you will see they are operating at a lost.

Question: What is the mentality of this “suicidal” competitors of yours?

Answer: The Crowd Mentality. They think that if they run their business with their computers running 9-10 hours a day having no idle computers… they think they are gaining profit. They want to gain customers by lowering their price. Usually this is done by “new players” or new internet cafe’s. They term this as “promo”. Certainly customers especially teenagers who want to maximize their budget, they will try the new internet cafe’. This is not bad perse, but it is damaging to the whole internet cafe business in that area if that new player runs his/her promo over a long period of time. The problem in here is that you can not do anything about it! Even if half of your regular customers had transfered to that new icafe’! Well… actually you can do something, you could also try to be a “suicidal” i-cafe owner and have your rent at 15 pesos an hour. What will happen in here is that all of you i-cafe owners in your area will be engaging in a “price war”… There are no winners in such a war. It’s a domino effect really.

The proper attitude that each i-cafe must have is that one must “COMPETE WISELY”… see the bigger picture that will affect the internet cafe business in your area. Do not use the computer rental fee as a promotional tool to attract customers. Every i-cafe must realize that it is better to compete with your competitors by improving one’s services, computers, environment etc… rather than lowering your rental fee ‘coz that will only result in a PRICE WAR wherein everybody looses. If there will be only one idea that you will be remembering by reading this post is “COMPETE WISELY”. Wag nyong sirain ang internet cafe business sa inyong lugar sapamamagitan ng pagbaba ng presyo… domino effect lang ang mangyayari.

You should put up an internet cafe if:

1. There are a maximum of 2 internet cafe in your target area. Of course this all depend on the size of the market, but even if the size of the market is large I will not invest in an i-cafe if there are 3 or more competitors in that area… why? Sooner or later there will be other people who will put up an internet cafe in that area (beware of the big players like NETOPIA). That is the “gaya-gaya” mentality of Filipinos especially now, there are companies who will provide you all the things you need to setup an internet cafe (Smart) in an installment basis. The point in here is that you should only put up an internet cafe wherein your ROI will be achieved in just 1 year… at most 2 years. Why? Because the internet cafe business is easy to put up. You must be ready to convert/sell the whole business or the individual units when “Price War” begins in your area.

2. There is an association in the area that has the legal powers to empose/set the minimum service price. I’ve heard of one association that have done this and they were given the power by their local government to regulate their prices. But this is very difficult to achieve. In my case, there existed an association in our area but it has no legal powers… so it’s policies are only followed by members who understand the value of unity in pricing… but there will be always other “dumb” i-cafe owners who still do their own pricing and go below 20 pesos an hour… (some 10 per hour! gosh).

3. You can somehow make an agreement with you local government that only your internet cafe be allowed to be given a business permit. I’m not sure if this is possible with an internet cafe. But I know of some businesses like a cable company in our area in which that company is the only one allowed to operate in our town… and no other cable company are able to setup their business. Dirty Politics might be working in here… but hey “that’s business”! If you can do this, good for you! :)

Given the above condition, the internet cafe business is a lucrative business. Especially if you can dictate a P35 per hour price and continuous flow of customers! :) Hey that is not impossible with the above conditions. 6-7 years ago the rentals is about 35 - 40 pesos an hour… but instead of increasing the price because of increased in operational cost (electricity, building, labor), the computer rentals go down????!!!! Tama ba yun? Lahat nagtataasan ng presyo… ang computer rental bumababa? Hindi naman bumaba ang operational cost? :(

If you have finally decided to push through it… our next topic will be the second most important factor to consider… LOCATION. It would be nice if people reading this would post a comment/question or suggest a topic :)

Part II

How To Rob an Internet Cafe… (Internet cafe owners, don’t read!)

Other Investment Options

——————————————————————————–

Sorry for this ad but I would like to ask the Filipino readers of this blog to check and vote Batas Party List this coming election. Thanks so much.

Comments»

1. KiLLeR KaMaTiS - September 20, 2006

Good Point!!! Thank God i found your article.. i was about to engage in this business.. as a newbie i was also thinking of the “PROMO” -> sheeessh…. talk about business-dumb.

Guess i have a lot of thinking and studying to do first.

thanks and cheers!

2. chazper - September 21, 2006

Having a promo is not bad perse… especially when done during your first week of operation or a special occasion like an anniversary… it only goes bad when it is done over a long period of time (a month or a year!).

If you have an association in your area… you could inform you co-members that you are just implementing the promo for a week. It is good to have an association or even an informal group among internet cafe owners in your area… they are your competitors but you share a common interest (i.e. to maintain the profitability of the internet cafe business in your area). It’s good if the association is SEC registered and given due powers by your local government… though this would mean a lot of work among members especially the chairman.

Cheers!

3. kyle escudero - October 24, 2006

Gud pm Chazper! Actually I am very thankful for your initiative to share those ideas, Actually I am one of the owners of those internet cafe who suffered a lot from price war considering that more computer shops just appeared and operating desperately here in our area in Cavite! I would like to ask for your assistance good sir if you could advise me on where to file my membership if in case you have know someone who runs the Internet cafe Association here in General Trias Cavite! I was really disappointed on the present situation here of Computer Cafe Business, most of the newly open shop where operating without legal documents (Bus. Permit / BIR etc.) Unlic. OS Etc. They started the price war for as low as P15.00/ hr. for all services…. a h h ! They are really killing the industry and so as themselves! Please help us Sir to save the industry and protect the investment!

4. chazper - October 29, 2006

Try contacting ICAP (Internet Cafe Association of the Philippines) officers. I lost contact with them… and their telephone numbers… i’ll try asking some of my x-fellow icafe owners when I go home at our province. But try writing the writer of this article at inquirer and ask for ICAP’s contact nos. http://news.inq7.net/infotech/index.php?index=1&story_id=67983

Actually you could report those icafe that has no permits especially at BIR! If you have a BIR permit you know whom to conact. But it would be much effective if you have a group. If you have no association at cavite, try to initiate forming one. Invite your fellow icafe owners who are legally registered… then try inviting those who are not registered.

In our case, the formation of our association was triggered by the complaints of schools at our local government… so there was a “need” to solve such problem, or else our business will suffer! basically every icafe owners agreed to form an association. You could start an informal group at first then later on after you have setup some budget, you could register it at SEC… One of the factor that our group was a success at first was because there were leaders among us… What I’m trying to say is that there must be someone that must initiate such activity of forming a group and maintain it.

 BTW, if you really want to report software piracy, contact BSA (Business Software Alliance) http://www.bsa.org/usa/report/ but you should think 100 x before doing so. Ofcourse you should consider if you yourself are using softwares legally… like do you have a license to have windows XP be rented? or be used by multiple people? How about your gamez? Are you using cracked games? How about your MSOffice? Or are you using open office instead?

5. Internet Café Tips for Investors in the Philippines – Part II (Location) « Success Story in the Making - January 7, 2007

[...] Part I [...]

6. eathan24 - January 12, 2007

Hi! You had raised good points at your article and i myself can assess that it is really happening and that others be warned about it, though at one point i am experinecing a different scenario. We too had the same negative feeling when we decided to lower our hourly charge. We started at P25 at our hometown and we are forced to transfer to a nearby town (due to a stabbing incident that remains unsolved). When we transfered his at our present location, there were 11 cafes already established ranging from 6-17 units. We had 10 units then plus 2 others for monitoring and other services and another one for my husband’s personal gaming. Last year we decided to purchase licensed OS (15) when we were warned by our competitors about the raid only to find out that they themselves does not own even a single license. We decided to lower our price into P15/hr when our neighboring cmputer parts center opened up a cafe without prior notice for us from our landlady. They then lowered it into P12, since modesty aside, we earned more players than the rest since we maintain personal relations (i know them all and most of the parents know me), we do not allow porno plus a lagless with high-end pcs, dual net connection. We opted to utilize exhaust fans plus stand and ceiling fans than aircon. Presently we are on a P10/hr basis and decided to focus on gaming since my husband is a gamer himself, and our daily income is supported by my paper and cd works. Now, we cater for 15 units for players and anotehr two for us. What seems evident is that we earned better with this P10/hr that resulted into a fully-booked cafe from 7:00 am - 1:am than P15 which is only loaded after school hours.

We too had our pitfalls but we managed to survive by focusing on making additional services that the “loyal” clients are looking from us, and lowering the expenses,We are planning to transfer at a larger place so that we can venture further into selling computer units and parts.

I would be hypochrite though that i do not wish that our charges would be higher, but it seems difficult to hold on at such high rate with no association regulating us. I heard then that they are building one and they actually had meetings yet we did not recieve any invitation to attend (even an informal one would suit us,hehe) but anyways….

Ooh by the way, thanks for the article. Unselfish write-ups such as this will remain helpful for aspiring venturers.

Just keep God above everything and the rest shall follow, Amen!!

7. chazper - January 13, 2007

Hi Eathan,

It’s nice to hear that your business is doing well. You have made several good strategies like lowering your expenses (electricity really eats a lot on your profit), rendering quality service to your customers and misc. services (cd burning is very profitable). These are what I am talking about, that each business owner should win customers through those strategies and not just lowering the price.

But as you have said it would be much better to increase the price of your service. Try to be the one to approach your competitors who are forming an association. I guess you have the lowest price among your competitors and you have the most number of customers that is why they may be hesitant to invite you.

You should consider joining them and contribute to the success of the group. If there is no association that will regulate the price, there will also be other icafe that will “imitate” your pricing. What will happen then? Can you afford to lower your price again? Just to maintain your loyal customers?

One benefit of joining such group is INFORMATION. What others know, you will know also. See what happened when you bought licensed OS while they did not purchased any? They might have knowledge (inside tip) that such raids will subside after a while… or only big companies are raided and i-café are not on the hot list. You never know what they really know if they perceive you as the “others”. Deym 15 Windows license! That’s around 100K! MS Office not included huh? What I’m trying to say, it’s better to have allies coz the icafe industry has plenty of enemies :)

By the way, have you considered the depreciation of your computers in computing your profit? You have said that your computers are “high-end” so I presume they cost a lot. So if one computer costs 20k and you have 15 computers and you want to zero out their value in three years time. (((20k x 15) + 100K OSLicense )/36mos)/30days = Php370

Meaning if you had a sale of Php 2,000 you need to less all your expenses (electric consumption/day, salary, dsl fee/day, bldg rent etc.) and less 370 pesos to obtain your profit for that day.

Electric / day (4k/month) = 133
DSL-telephone/day (5k/month) = 166
Bldg rent (5k/month) = 166
Salary (assistant) = 200
Depreciation = 370
Others (repairs, parts replacement, services etc.) = 100
Profit = 2000 – the above = Php 865/day (not bad!)

*Note: above computation is not exhaustive

Not bad! That is, if ALL of your computers are running 13 hours + everyday including Saturdays and Sundays. And if other i-café haven’t lowered down their prices. Please join the group and agree on a regulated price. Regulated: example: With aircon Php25. Without Aircon: Php 20.

Hoping the best for your business!

- Chaz

8. Skip - February 3, 2007

Chaz-
Great info. I am looking into starting a cafe in the near future when I retire to the Philippines. It has been frustrating finding information about the competition though using online methods. Any leads would be appreciated.

Your comments are very valid. I have been in various businesses for over 20 years. Knowing the competition is very important. The promo idea you present is the way it should be done–new opening, 1st anniversary, etc. The association is also valid for all of the reasons mentioned by you and the other commenters. Illegal software is not good for business. Fair competition is. Providing the best service to your customer is. That is how businesses survive and grow.

9. Joe - March 28, 2007

Has anybody done an inet without games? I am wondering how that is.

10. chazper - March 29, 2007

It is possible. But it would not be that wise.

11. eathan24 - April 2, 2007

hi again chazper….your blog has helped us a lot as we continue to struggle in this field…w/ regards 2 joe’s inquiry, i had a neighbor that serves inet w/o games, she still survives after 3 years, she copes up with additional services such as technical repairs, tutorials, cd burns and since invitations… Her strategy –to target the adult user population in our area, (our business is two towns away from our hometown) in which they prefer to stay in a quiet, more sophisticated internet cafe…

its been a while since i spotted this blog and i decided to drop by and send my heartfelt thanks for your wonderful insights…we are still no aircon, added 8 units and planning to add aircon since exhaust fans can no longer support the heat,..we currently operates from 7:00am-7:00am ,,,that is ,WALANG TULUGAN!! kidding aside, palitan kami ng asawa ko…

btw, one big lesson i learned….GUARD YOUR COFFERS…we just had an issue with our past assistant (dispatched only a wee ago) whom we found out to cuddle (as in hindi nya pinapabayad) his boys (not only one but most of the good looking guys in the cafe)….she happens to be a distant relative of mine pero wala rin d rin mapagkatiwalaan….

sir chaz have u had such dilemma before? i mean w/ regards to helpers and assistants…as this is currently troubling me since i plan to put up a kiosk in our hometown (who has added another college school aside from 2 major state univs)…i am greatly inspired by your observation regarding i cafe near schools ….

looking forward for a kind response,,,heheh

TO SHA

12. chazper - April 3, 2007

Hi Eathan,

Thanks for the compliments. But please don’t call me sir :)

I believe that you are a good entrepreneur, as you have made several good business decisions that brought you where you are. It would be great if you could grab the opportunity of having a kiosk in a good location. Regarding the assistants, trust is the factor when selecting one. I had my little brother, a fellow churchmate and a family friend before and I gave specific instructions not to give free time to their friends. It’s bad for the business ‘coz I know an internet cafe that was not properly managed by the owner, yung assistant linilibre kabarda nya… yun di rin sila nagtagal.

Have you tried installing softwares that automatically keep track the computer’s usage? I secretly installed such software and review the computer’s usage vs. the time record listed by my assistant. Manual time tracking ang ginagawa namin. So if I saw some inconsistencies, alam ko na may nangungupit o may nagbibigay ng free time.

But if you want you could also install a software in your server that will manage all of your computers (ex. time tracking, automatic time off, etc.). Just like what Netopia uses. There are other similar software out there in the net. Try checking “Internet Cafe” software, you could give a limited password to your assistant in order for him/her do his job without giving free time to his/her friends. Then at the end of the day you could perform an audit.

Hope this helps.

Regards,
Chaz

13. 2cb3f00f720f7e35a6b787f90d0b4c25 - July 6, 2007

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14. cindygirl - July 23, 2007

Hi CHAZ, and to everyone! im planning to put up internet cafe,but i dont have idea where to get/purchase computers that is less expensive but good enough to use for internet cafe’s. won’t someone help me know where to find good buys? and give me also some idea on it’s specifications if i opt to look in computer shops here in our province. Hope to hear from you all guys! thanks.

15. King - July 30, 2007

Hi Chazper,

Believe it or not I am the one who founded the ICAP (Internet Café Association of the Philippines), that is even before Netopia was born. I too was also an ex-icafe owner (year 2001 to 2005) but unfortunately because of the price war we closed shop. Prior to closing, I was urged to start an association to protect my business. I had so many great plans that will benefit all the icafe owners, not to mention the business itself. I did all the leg works by myself and paid all SEC registrations and website fees from my own pocket. In fact when I first presented my idea to some 50 icafe owners, it was very successful that all of them joined the association. Some of my ideas that time were to standardized the range of the internet charges; Help the owners who doesn’t have technical knowledge of the computers; To have monthly or quarterly meetings for social gathering of owners; I even contacted Microsoft who by the way some are my ex-colleagues, to schedule an open-forum event for the members, so as to create harmony in the licensing issue (actually BSA was also there). I was planning to talk to some politicians as well so that ICAP can help police the “kolorums”.

I don’t intend to charge the members for membership fees, I only want volunteers and full cooperation so that we can all survive the business. But as time goes by, different people (icafe owners also) approached me and said that everything should be well organized. These people proclaimed themselves as officers and started collecting fees from the members. At first it was somehow lucrative as we had finally an office where we hold our meetings. But in the end, they took charge and somehow outcast me. (Obviously that is really their objective)

I gave way and went abroad because they seem united, also for the record I hate arguments specially regarding “popularity issue”. Now I heard that ICAP no longer exist (sayang naman sinimulan ko). Sabi ko pa dati, kung ang mga tricycle at jeep may TODA.. dapat ang internet café may ICAP.

Anyway, after reading all the comments I felt I should clear my name but I thought.. what’s the use?

Keep up the good work!

16. kki - July 31, 2007

Hi Chaz and All!

During the franchise show at MegaTrade last month, there were two internet companies offering their businesses for entrepreneurs.
If you don’t mind, I’ll post the info from one of the companies and also ask for your ‘opinion’ if it’s reasonable or feasible.

6PC investment = Php295,000
10PC = Php475,000
15PC = Php695,000
20PC = Php925,000

Pentium Dual Core or AMD Athlon64 AM2 Computers;LCD monitors; Licensed Windows OS & essential software;Complete networking solutions; Roster of Famous Online Games; Scanner; CD Burner; Printer; Headsets

PLUS Free:
-tables, chairs & lighted signage
-Business management & training seminars
-3 years technical helpdesk
-Delivery within Metro Manila
-Electronic load system
-Advanced Billing, P.O.S., Inventory management system

No Royalty Fees

Do let us know what you think.
Thank you very much!

More power to you and all people like you!

17. chazper - July 31, 2007

KKI,

Who are your target customers? The rich? Who have their own computers? 6 pc for 295K? That is almost 50K a piece.

My advice, estimate
- how much will you charge per hour
- your operating costs
- how many hours your cafe will operate in a day (consider spending behaviour of your target customer)
* consider depreciation cost for 3 or 4 years.

If your cost per hour will not be affordable for your target customers then I suggest look for cheaper PC’s, assemble your own PC’s, or go to PC express.

My guess, they are offering their business because they are going bankrupt… too costly computers for an internet cafe.

18. ernz - September 6, 2007

Good day po,kelan kayo me seminar,orientation on how to manage an internet cafe business,I’m willing to pay as long as me certificate after,please help me,thanks!

19. lon - September 6, 2007

thank you im so made my self interested in the topic.

20. finboy - September 13, 2007

These are actual expenses which our internet cafe are spending

25 days operational and 12 hours per day
Basic Expenses Daily
Electricity 4500/month 180.00
DSL-Telephone 5530/month 221.20
Rental 8k/month 320.00
Salary 4k/month 160.00
Depreciation 12units@23k/2years 460.00
Mayors Permit 14k/year 46.67
BIR 1000/month 40.00
SSS / Phil Health 422 monthly 16.88
a total of: 1,444.75 per day expenses
Software purchased are not included

its up to u to decide if you really want to get into this kind of business.

21. Yan - September 13, 2007

Hi all, it seems like this blog has been going for a long time.

I have read everyones comments and they all seem great. different ideas in there, and really that is the key thing isn’t it.
That every case is different, ofcourse there are the main keyfactors involved such as running costs, hourly rate etc.
I live in a city a couple hours north of Manila and the price ranges from between 15/hr to 25/hr which is not too bad, the 15/hr seems to be more full of the school kids and they are just a basic setup. the college students seem to go for the better computers and the aircon which is normally at 25/hr.
I was so shocked when i went to other areas to see them charging 50/hr!! i think to myself those poor kids, how will they feed their addiction at that price. haha

However the thing i have noticed most is that the computers are old, and slow. generally they are running on minimum specs with no option to experience new games.
There are a lot of new games that are taking off in the Lan scene such as Tiberium Sun, Battlefield just to name 2.

Basically what i am saying is that when looking for a market area sometimes you may want to look at creating a new market area.

I’m talking about getting top of the line computers with the new games. Sure your startup is a lot more, straightaway the computers are costing 40k each but that is all top of the line parts. But ofcourse this needs to be carried through, the plastic garden chairs are no good, get the new chairs that will themselves be an attraction. again expensive yes.

But when it comes to running a cafe you need to break it into sections, look at your startup costs, your running costs and your maintanence costs.
25 awesome computers will need to run at 66% capacity for 18 hrs a day to cover all costs and make a nice 1000 a day profit. and yes that includes depreciation.
ofcourse you have to have the right atmosphere to have it full for that long each and every day.
so look at renting a place with extra space, put some couch’s there so ppl can sit and chat. have it become the local hangout for people. that way when ppl dont have money they will come anyway, and watch their friends play, and that way when they do have money they can play and their friends watch.
etc…

the more computers you have the better, because running costs dont increase too much, the running costs for a 50 computer setup is only 25% more than a 25 computer setup. the setup will be double but thats expected.

so obviously the more computers you have the more money that goes to profit and not running costs.
BUT!!!
ofcourse you need to keep them full, its no use having 50 computers if there will only ever be 20 ppl in the store.
My tip, if you want more people on your computers then encourage more people into the store, free entertainment. or atleast cheaper entertainment.
Karaoke is a great group bringer,
cheap student meals, sell them at cost price, then you wont lose money but you increase the people coming and going in your shop.

Tournaments and prizes.
Make sure you encourage these, else people will stagnate in their play, if there is competition involved then they have motivation to play other than for enjoyment only.
Hold them monthly or fortnightly, so that during the lead up time ppl will be encouraged to practice. hence playing more.

If you have quiet periods then try having happy hour gaming only during the quiet times, dont drop your price during peak periods, thats suicide, but rather try and spread your customer base over time.

Anyways, that is my philosphies and it is what i am currently using to setup a gaming cafe within my area. instead of trying to compete with an existing market, i will try to create a new area within the existing market.

However i have encountered a lot of problems trying to get info on the pricing of Games for use in a gaming cafe as you cant just use games purchased from a retailer, but you need an agreement allowing you to rent the use of it out similar to microsoft. However i dont seem to be able to be able to contact any organisations about it. Microsoft has removed its links for the agreement and similar with some of the games.
I have asked around at a lot of the local cafes and they just use pirated software or think that just buying the game allows them to use it commercially.

If anyone could provide any contact details or insight into this. I would most certainly appreciate it.

Anyway i will let all interested know how it goes once i get the business open, it looks like its still another 2 months away, with renovations and ordering of chairs and pc’s etc.

Good luck to all.

Yan

22. chazper - September 17, 2007

Yan,

You have a lot of good points in there. Especially the tournaments, yes they really motivate gamers to hone their skills on their chosen game (meaning more game time more cash in for your buzness).

But again, deciding what computer specs you will have, your type of chairs, your icafe environment etc. ALL depends on your target customer. We all want a high end PC or a nice metallic cushioned chair in a spacious and cool i-cafe right? But the ultimate question is… will your customer be able to pay your services so that you can afford the rent? the electric bill? the interest (if you took a loan)?

For starters, my advice is to challenge your feasibility study (so obviously you should have one in the first place). The most common mistake of first time investors is that they are TOO optimistic. I am not saying that being optimistic is a bad thing, but too much of it is… You should challenge your ideas. For example, if you think your computers will run 8 hours a day on the average… base your projected financial statement that you will be running for 5 hours a day only. If you expect that you will be having a monthly expense of 25k, use 35k in your computation… etc. etc.

I do not know how you came up with your computation of “running costs for a 50 computer setup is only 25% more than a 25 computer setup”, but having twice the number of computers is directly proportional to the size of space you will be needing which is directly proportional to your rent. Also consider the electric consumption your aircon will need to cool that space. If your feasibility study is incorrect, you will end up with idle computers which are eating money thru depreciation. Remember you bought your computer last year but it cost twice as compared to its market price this year? That’s how fast computers depreciate. REMEMBER: You can not afford to have idle computers! It is just like throwing money!

Yes there are advantages in having “standbys” in your café (we call them miron), but there are downsides as well namely:

1. Your aircon will work harder because of the body heat oozing from those standbys. There is nothing more irritating than to see people who never played (or never will play) in your icafe go inside and go directly in front of your aircon with arms stretched just to cool themselves, they don’t even have friends playing or surfing!
2. Noise pollution. If you don’t separate the gamers and the surfers, the latter will be annoyed with all the noise made by “standby” who are just there to cheer and shout for their friends playing.
3. Dirt, dust, BUBBLE GUM… yes these are the dreaded monsters in an icafe. It’s ok if customers bring them in, but it is not ok for me if standby bring them in.

My advice, feasibility study, a little pessimistic point of view, take it slow, try to feel the market on your first few weeks then decide if you really need to add more computers, and what type of computers you will add.

Best wishes,
Chaz

23. SCHMIRNA - October 12, 2007

Hello,

I really enjoy reading your article and the comments and I learned alot.

Please help me

I’m planning to have a Internet shop near my school, but there are many computer shops there I think it’s 15. and most of them has 10 to 20 units. Rates some has 15/hr, 20/hr and 25/hr. Before one shop offering internet service for only 12/hr, and their gone after 3 months. Most of the internet cafe in that area is 24 hours open, and they all have their loyal customers, I’ve never see their Internet cafe with no customers.

Another is I don’t know if their softwares are legal, some of my friends [loyal customers of one internet cafe] says that they don’t use legal software. They just copy and paste from one unit to another and install. Is that fair? or it’s fair to use pirated software?

I don’t know if I should stick to the plan to have an internet cafe near my school
, or look for another location?.

24. jay mills - October 12, 2007

hi im interested in something like this. how hard is it for a forienger(american) to get into a buisness like this? what about cities that you can set up shop in? whats pretty much the capital i would have to invest in to even start. thanks for any forthcoming answers

25. Pektong Manghuhula - October 24, 2007

kamusta po sa inyo (parang ako lang ata ang nagtatagalog dito kaya pagpasensyahan nyo po ako), balak ko sana pong magtayo ng isang i-cafe sa manila medyo pinagiisipan ko pa rin po kung alin ang mas magandang gawin sa pagtatayo ng i-cafe, kung mag-franchise na lang ako o kaya naman e mag independent na lang… meron naman po akong konting ideya sa mga kompyuters pero kulang po ang alam ko sa pagse-setup ng isang i-cafe… wala rin po akong masyadong ideya sa kung saang lugar ako pwedeng makabili ng sulit at magandang klaseng mga kompyuter para sa negosyo ko…

sana po’y matulungan nyo po ako!!! salamat uli… ang dami kong natutunan sa inyong lahat….

26. san - November 4, 2007

I’m planning to put up an internet cafe come january. I really appreciated all the comments posted here. Though there not so good comments, I still would like to venture into the business to try it and to see it for myself. Can anyone tell me where I can find computers that are cheap (pwede installment) that is good enough para magamit for games and surfing. What broadband connection din ang maganda and cheap as well.

27. ester - November 6, 2007

hello this is rushpy..I’m planning to put up a inet cafe at my garage..but my location is malayo na sa center ng business area were in there were plenty inet cafes…
but in my areas there were plenty of students residinng whom I know is a gamers..and students needs for research works..besides At the back of my house is an annex of high school from 1st yr to 4th yrs..
and elementary schools.
do you think I could earn profit?

28. benjur - November 7, 2007

chapzer,

itatanong ko lang sana sir kng saang website natin makikita yung may mga bagong law ordinaces about internet cafe business.

gusto ko lang kasi malaman kong ano na ang bago na mga provisions at saka mga bills na pinapatupad. Kasi sa ngayon marami ng mga gumagamit ng mga unlicensed na OS. e copy mo lang yung original puede nang gamitin pang cafe yan di ba? at that point malalaman ko rin kung anong mga penalties na matatangap kung gumagamit ng mga unlicensed OS.

hanggang dito na lang sir… maraming salamat po…

benjur

29. edz - November 8, 2007

With regards to proximity of, i will be starting my internet cafe maybe this month, the location is not near the school but is actually near residential areas.. do you think I could pursue>? your talking about mutual funds, Actually we are three in this business all of us shared for the capital.. do you think we can survive?

30. Jan-Jan - November 12, 2007

Hi!,

Been reading this blog and seen many different thoughts which are useless…
My advise, if you want a high specs and super fast cheap computers then assemble it by yourself… Honestly, computer stores in philippines are over pricing their pc package deals… You know here in middle east, if you’ll going to assemble a high specs PC the it’ll probably just cost you on around 1190 SR and it is just equal to around 14k pesos… These specs will cost you about 35k in some pc stores in philippines… I tried to compare their prices and I was really shocked when I found out it EMCOR…

And to some people on this blog, please don’t just ask questions nor share their silly ideas and experiences about investing an internet cafe in philippines…

Before am gonna leave,I ‘d like to share something to all…

Costumers want a:
1.>HIGH SPEED INTERNET CONNECTION
2.>HIGH SPEED AND FAST RESPONSE PC
3.>COMFORT
4.>AMBIENT
5.>PROGRAMS INSTALLED ON YOUR PC’S

31. Notebook - November 18, 2007

HEY SA LAHAT NG MAKABASA SA SULAT KO…

marami ang natutunan ko bout this forum…pero sabi ng tatay ko anak gayahin mo lang ang makakabuti tungkol sa natu2nan mo ang ndi maganda just kick it out hehehehe peace…

ako po ay medyo bizniz minded ng konti…

as a costumer gusto ko sa isang computer cafe ay:
1.naka-smile lage ang cafe operator wahehehe wag maging masongit :)
2.mabilis ang web surfing
3.ayaw ko yong nagha2ng ang computer
4.kailangan meron web cam
5.at kailangan rin meron din headset para meron sound
6.mas maganda ang headset kaysa stand speaker
7.at kailangan ko ay comportable ako sa upuan ko :)
8.ok lang kahit ndi aircon ang internet cafe basta comportable ako

Reminder: lahat ng porno websites e blocked muna para iwas disgrasya sa PC unit mo..meron naman program yan bout blocking websites…

IN GOD WE TRUST!

maraming salamat po….

32. tEnShi - December 10, 2007

hello po…
napadpad po ako d2 sa site nyo kasi naghahanap anko ng mga tip about sa pag manage ng i-cafe, balak ko kasi nxt year magtayo ng i-cafe.
alin po ba masmaganda, balak ko po sana yung sa smart at pldt na promo nila, kaya lang kasi sa mga shop ng kaibigan ko napapansin ko mabagal parin alin man sa dalawa kahit magaganda ang pc’s..
ilang unit po ba ng PC maganda magsimula?…baka po kasi pag kumuha ako ng marami agad eh masayang lang.
at ano po kaya mas ok?sumali ako sa promo ng smart at pldt or bumili nlng ako ng mga pitong unit ng computers? pinag ipunan ko kasi talga tong negosyo na toh.
isa pa di pa ako nakahanap ng magandang location, sabi nyo kasi dapat mga 3 lang na i-cafe sa area.
pg near sa school kasi madalas may raid d2.
ngaun naghahanap parin ako ng magandang pwesto.
dapat po ba ibigay todo ko na sa umpisa plang or hinay hinay muna?
xa nga po pala Puerto Princesa City location q,
tigin nyo po mabubuhay negosyo ko or mgtry nlang ako ng ibang negosyo?

33. popoy2005 - January 14, 2008

Sa mga kababayan ko,
Isa po akong OFW na mahilig sa computer at iba pang mga high-tech gadgets. naisip ko pong mag imvest ng business sa pinas ng isang net cafe, pero ako po ay nangangamba na baka hindi ako kumita sa negosyong ito kaya nag research muna ako at natagpuan ko tong site page na to. parang nabigo ako sa sa aking gagawing negosyo at naliwagan na rin dahil sa inyong naranasan as a i-cafe owner.
Akin lang pong maidadagdag na tulong ay isa pong idea lamang para po sa ikakaunlad ng negosyo ng bawat filipino jan sa pinas. Dito po sa bansang Greece kung saan 18 years na po akong naninirahan d2 ay napansin ko po sa bawat area ay 2 lamang ang allowed na parehong business. Tulad po ng area namin d2 2 lang po ang gasoline station at dalawa po lamang ang allowed na mini market at wala po kahit isang i-cafe. Napag alamn ko po na isa sa isinabatas ng gobyerno d2 sa greece ay ang pag iiwas ng pag lalagay ng pareho parehong business para maiwasan ang competition.
kung sana ay ganyan din ang magagawa ng gobyerno sa atin gumawa ng batas tulad ng nabanggit ko para maiwasan ang competition at kailangan talaga na may business permit.
salamat po

34. tanga - February 1, 2008

ang galing!!! pro may itatanong sana ko.. i know this sounds shit.. pero is it posible na yung connection mo e yung plan 999 ng pldt o yung pang bahay lng with dsl.. tpos gamit nlng ng “router/switch hub”.. hehe pwede ba yun??

35. MARIC - February 5, 2008

good day to u…. ur blog is very important to beginners like me… i hav not yet started my i-cafe.. i learned a lot to this blog.. i wud like to ask if there is ICAP also here in cagayan de oro?

36. florbv - February 11, 2008

hello po!

i need your advice regarding the business we’re planning to put up. in your opinions, ano po kaya ang mas profitable sa tingin nyo, ung internet cafe or computer parts store? sa commercial area po kasi sa labas ng subd namin, 6 na ang existing internet cafes dun at wala na kami marentahang magandang pwesto so we are planning to buy na lang muna a pc of commercial lot along the main road near that main business center and eventually, we will build our business there. palagay nyo po ba kikita ang computer store dun(wala pa po kasing ganung business dito sa area namin)? if so, about how much po kaya ang magiging initial envestment namin?

thanks in advance for your replies. God bless!

37. dreison27 - February 13, 2008

Nice Dude You save our lives hehehe…i was planning a i cafe business and the tips you gave on your article enlightened me…now i will try to be more innovative in an i cafe…we can offer a snack bar together with the i cafe and also coffee bar…maybe school supplies…ink refill station.But first i’ll study the market and the competitors…thanx for the great article…GodBless

38. honeyz - February 26, 2008

Hi !

My cafe is on ongoing construction… my rent is just 2k kasi tito ay ari ng pwesto. around 30K na nagastos ko sa renovation (cement,gravel,lumber,labor and etc.). I just would like to ask how much would be the approx. expense on getting a business permit? I’m planning to put up 10 seaters muna… then pag maganda kita i’ll add 5 more.

39. chazper - March 3, 2008

I’m really sorry for not replying immediately. I forgot I had a blog :(
Although I give advise, it is still up to you guys wether you take it or not because it is you who really know your own unique situation and circumstances.

Schmirna,

I suggest you look for another location. Once you mentioned that there are 15 competitors in one area and Php 12/hour or Php 15/hour rate… you should not be asking me anymore if you need to look for another location.

If you really mean business, you must be willing to go out of your comfort zone (i.e. near your school).

Jay Mills,

I’m not familiar with the laws regarding foreigners owning a business here in the Philippines. Try visiting this site for info http://www.sec.gov.ph/

If you really have the capital but lack business experience, I suggest that you consider a frachise with Netopia. There are a lot of advantage in a frachise business (Advertisement, Knowledge capital, assistance etc.). You could check their site for information.

I would like to suggest Makati City, but there are already several Netopias situated there. :(

Pektong Manghuhula,

Try to assemble your own PC, ask the assistance of a friend who knows how to do it. You could save a lot. Try http://www.tipidPc.com

(I should get paid for advertising these sites… lol)

The most important thing to consider when buying computers is the warranty of the parts and the service offered by the vendor. One or two years warranty is good.

San,

I suggest you take the service of Globe as your ISP. We had several issues/problems with Smart and I don’t want to mention them in details here.

Ester,

Having an internet cafe in your garage and having two market area (School and residential) is a very good combination. How I envy you.

You’ll probably won’t have seasonal problems, I mean low number of customer during semester breaks if your only customers are students. Very nice. The only thing you should consider if there are zoning ordinance applicable in your area. Secure proper permits first.

Benjur,

For anti-piracy information check this link. http://w3.bsa.org/philippines/

I still remember the news of the raids made here in the Philippines… that was a nightmare for me back then, I had to do research about Linux… lol.

Edz,

I can not answer your question, and everyone who are asking if it is good to put up an internet cafe. There are a lot of factors to be considered. I suggest that you visit your nearest bookstor (National Bookstor or Powerbooks) and get a copy of a book that teaches you how to make a feasibility study. I suggest you buy local books that are specifically written for Filipinos.

tEnShi,

Hinay hinay lang. Try nyo Globe. Mas mabuting wag magstart kung walang magandang location.

Honeyz,

Permit: depende kung Partnership or Sole.

If you have a partner then you have to register your business to SEC, DTI, Mayor’s permit, BIR. If Sole, then you don’t need to go to SEC.

I can’t remember exactly how much. What I did is to hire an accountant and she did all of those things for me. Maybe around Six thousand. Just visit http://www.dti.gov.ph/ and http://www.sec.gov.ph for the corresponding fees.

By the way, you could pre-register the name of your business directly on those site and have them reserved.

40. Helen Montefalcon - March 6, 2008

hi chaz,

ive learned so many things in this page. thanks God your there.

41. Helenie - March 6, 2008

hi chazy,

do you have a feasibility study regarding this? i wanted to use it for my research proposal in school… plssss if you have…. thanks a lot in advance.

42. Helenie - March 6, 2008

MOre POwER

43. sheryl - March 7, 2008

kaya mo yan… ganun din ako eh gaya mo….

44. san - March 7, 2008

My cousin told me about a raid made by OMB headed by Edu Manzano 2 weeks ago which was shown sa channel 9 news daw. It’s about internet cafe’s daw sa Paranaque na hindi licensed ang o/s. They confiscated daw the cpu’s and said un o/s is dapat 1 is to 1.Is this true na meron n namang raids ongoing about this. I was not able to see the news sa television. I’m just starting my internet cafe, opening nga siya this Monday and medyo magimbal ako about my cousins news.please enligthen me about this.

45. jAN - March 15, 2008

hi chazy,

ur blog is really very helpful but need more study about this icafe business. Could you send me too this feasibilty study, please.. Actually am starting my icafe already that is why it is more helpful when i have that copy too.

You can send this to email: bea_tyl@yahoo.de

Thank you sooo much!

Jan

46. entengkabisote - March 31, 2008

hi there!

47. dayle143 - April 6, 2008

This site is really helpful… good job bro :)

by the way im planning to have my own internet cafe business, could you send me a copy of feasibility study. :) thanks a lot

48. dayle143 - April 6, 2008

my email add is aenigma143@gmail.com

49. icafenegosyo - April 8, 2008

Ooops, I’m glad that i found this blog maybe i can help.

I have this business wherein we help OFWs and aspiring netrepreneurs to have an internet cafe business. For just P59K, you already have 5 high powered PCs with 1 GIG Memory and 512 video. Also included in the package are network cables, switch and our technical support that will setup your network for FREE.

For those who have limited budget, why not avail our pure Internet Package at P35K. You also get 5 units perfect for internet cafe negosyo.

Just purchase the package, and we will deliver to your place and set it up immediately.

We just made having an internet cafe as easy as purchasing a value meal in your favorite restaurant.

If you want to know more, please do not be shy to visit our website at: http://ariseo.110mb.com

or email us at icafenegosyo@yahoo.com

Thank you and I hope I was able to help you regarding this business.

By the way, If you tell us that you saw this information from this blog, we will give P1,000.00 pesos as a gesture of good will to the owner of this blog!

Take care

50. icafenegosyo - April 8, 2008

I mean, as soon as the sale has been closed =)

Thanks..

51. tange usa - April 17, 2008

Hey Chaz

Thanks for the info and fellow Icafe owners.

My 30 units dormitory, food court & 100 units Icafe parc place w/superhwy connections coming soon hoping not to experience some of the set backs of having an Icafe.

52. yankumi - April 18, 2008

hey guyz

plss post more helpful tips in running an internet cafebusiness.

more power to us interpreneurs……..

53. yankumi - April 18, 2008

HI CHAZ,

PLS. HELP ME HOW TO INSTALL DEEPFREEZE SOFTWARE IN MY I- CAFE.

IS IT REALLY GOOD? I HAVE NO IDEA ABOUT THIS

THANKS………

54. MSL25 - April 22, 2008

This is a good blog to read and of all the stuff i have read online about
settign up a internet cafe. I have a background on computers, you know…
basic software/hardware set-up but not very deep pero ang balak ko talaga
is to setup an internet cafe ala Celine Dion (ugh… that’s ALL BY MYSELF).
Just a little background on myself. Kailangan pa ba? What gives!!!
E ang topic dito ay internet cafe. Well, who cares about my background?
oh well, pasaway siyempre. kailangan para naman makita nila kung
reliable ba ang kwento o hindi… di ba? diba?????
Para naman kahit papano nakikipagkilala ako. kahit email address ko,
ipopost ko pa. hahaha!

***WARNING:
This post is filled with humor in nature. Kahit toilet humor. Ay sus.
The thing is medyo serious na medyo kolokoy. dont worry di
pa naman ako dinadala sa mental hospital… baka nga lang malapit
na. OKAY???? Ika nga ni Bitoy…
YARI KA!!! It will also contain
adult* (ugh ahem) male oriented pananaws so if you are
17 (and girl pa) below pls dont bother reading this post.

Im a resident of Baguio City. Eto po ay nasa north of Luzon. Nasa loob ng
probinsiya ng Benguet (as if hindi mo naman alam???) From Manila to
Baguio it will take about 7 to 7:30hours via VictoryLiner or DagupanBus.
Ang pagse-setup-pan ko ng internet ay sa isang barangay na kung saan ako
lumaki. I have made an occular investigation at 1 pwesto pa lang ang
magiging kompetensiya ko. That’s 250 meters away pa! Im not gona setup
in the city proper because of high rent. (P18-30K per pwesto, hmmnnn
makakaincome kaya ako ng P40K pambawi sa gastosin?? Malabo.) By
the way, the popular road is session road (may music band pa ngang gumamit neto) ay
isang napakaliit na kalsada. pwede mong isalpak ang boung SM megamall
buildings at yun at ocupado na. maliit at masikip po na siyudad ang
Baguio. irregular po ang populasyon dito. most of the population
consists of students so pag mga all saints day, christmas
break or sem break maganda mag
lakad lakad sa labas dahil konti tao. Pero pag balik eskwela? Naku po… asar!!!
Dami pipol a. Irregular at hindi permanent ang populasyon count dito hindi gaya ng ibang city.

im 30 years old na po, 5′6″. single na walang magawa (walang anak e. baog ata!),
may balak mag-asawa ng maganda, patawa, young woman, sexy-coca cola sheyppp-nice
this and that…wahh!! alam mo nahh!!! , mabait- kahit batogan ang asawa, marunong maglambing,
hindi MATAPOBRE, maputi (well kahit black.. basta ba black beauty),
malaki ang sinasahod buwan buwan pero since ala naman talagang papatol
sa akin or sa iyo na gaya ko na mapangarap (at talagang hanggang pangarap
na lang tayo… ;) well, nagkagf rin naman ng malaki sinasahod ($1200+/month)
pero yun lang ang ipinasa aking mga category kaya pumalya) e wala
na…. inaccept ng tatandang binata. hu hu hu hu! Pwede kayang ligawan ang
mga customers ko soon? Malay mo may magandang dilag na pabalik balik
kung anu pinapagawa baka pati research work and assignments….Asar!!!
Hehehe. Mapangarap! Ingat sa karma. Mamalasin daw ata. Kasi naalala ko
nong akoy isa pang mag-aaral imbes na sa school ako tumatambay, sa
internet cafe ako tumatambay dahil dun ko nakikita majority ng mga
chicababes man dong! Ay naku imagination na naman. Tsalap tsalap!
I weigh 142 lbs (I used to be 130 lbs) Dahil siguro 1 year na walang trabaho.
As in. maniwala ka. Lomobo. Sakit nga ako ulo sa bahay, hahaha. Naging
“domestic helper” na lang ako at “cook” sa bahay. Puro pa simangot parents
ko sa luto kung palpak! Hey honestly im a late bloomer. I just started
cooking, as in, when i was 29. I even went to TESDA and had a
60hours cooking training. Also muntik na akong maging 30years old virgin.
Hey, did you watch the movie 40Years Old virgin? Que Horror muntik
na akong maganun. Buti na lang i met a girl at before i turned 30 and she baptized me.
before she got preggy (not my baby though) oh my my.

Asar.Heavy man.Heavy.

My mom runs a sarisari store. And my stepdad a taxi driver. E puro reject ako sa
inaaplayang trabaho mapa-manila man, abroad, or baguio application kaya
gustong makipagsugal sa negosyo ng internet cafe. Isusugal ko na lahat ng
ari-arian ko. This will be my very first venture on business kaya malaki ang
chance ng pumalpak…. pero tingnan natin.. malaki rin chance na magsucceed,
beginner’s luck ika nga.

So lahat lahat from the feasibility study, application of permits, location,
physical set-up of the cafe (oo kahit hindi ako karpentero at walang kaalam alam
sa basic carpentry), etc., hanggang sa matapos na lahat lahat.
kahit yung hitsura pa ng finish pwesto, ipopost ko pa sa friendster.com.

ginawa ko eto nung pumunta ako nag ofw sa taiwan. inilagay ko sa isang
forum boung experience ko at ang daming nakipagkwentuhan, comment. sarap
nga! eh, ang bilis ng panahon nandito na ako sa pinas. napapangiti ako
pag binabasa ko yun paulit ulit.. pero lately wala na yung post ko don.
binura ata ng administrator dun sa site. asar!!! (well baka masyado na luma,
tumakbo yung post ko from 2005-2006 baka due janitorial maintenance.
janitorial…. asar! bakit basura na ba yung post ko ha?????

Hmmmnnn…. although most internet cafe dont really offer
coffee (wala pa nga akong nakikitang internetcafe na nag-offer ng cape)
coz it will surely destroy their keyboards pag nabasa… ahehek! (why was call it a
internet cafe anyway? should they just call it internet shop or internet place
or “internetan”… hahaha.

*opps ayon pala sa wikipedia, ang internet cafe is a place where one can
use a computer with internet access blah blah blah ….
It may serve as a regular café as well, with food and drinks being served.

ahh ganun pala so it means sa pinas lang pala naiba ang meaning ng internet cafe.
at kahit sa taiwan. yung mga napuntahan kong internetan don ay walang cape.
ssssrrrrrrllloolpppp….

anyway, im up of setting up an internet cafe myself. this blog is siyempre
very helpful. eto nga ang most exhaustive discussion na nakita ko sa internet.
i search mo google or yahoo “feasibility study on internet cafe” at tingnan
mo halos walang kwenta yung hits. pero meron nga etong blog. na naiiba so
lets take a chance naman to thank yung pasimuno netong blog na
walang iba kundi si

…..chazper

*klap klap klap*

i appreciate this blog na ginawa mo. very helpful.
naalala ko lang noon college ako may niligawan akong parehas ng
pananampalataya sa iyo. lagi siyang nakapalda. as in. sa akin kasi ang lakas ng
dating ng isang binibini na sexy pero “ala maria clara” manamit. Take for
example identical twins ng dalaga isa conservative manamit at isa liberated
manamit. unang tingin matutuwa ka sa liberal twin. you will surely drool
over her pero yung heart, mind and body will eventually settle for the other girl.
pareho lahat lahat ng katangian e pipiliiin ko yung conservative.
kaya nainlove ako sa kanya. kung ang mga ibang kababaibang classmates
ay nakikita na ang mga kilikili, 20%ng kanilang boobs, panty, posud, etc.
ey iba siya dahil always feminine ang dating nya. maayos manamit. tapos yon tinanong ko
religion nya at sinabi nya. I would say maganda ang pagdidisiplina ninyo
sa inyong mga kababaihan. Para mapalapit, pinag-aralan ko pang magPampanga.
kaso binasted nya ako eh… hehehe.. anyway change topic (aguy!!) balik na tayo
sa main story which is the Internet Cafe Tips for Investors in the Philippines - Part I
(may part II po eto paki read na rin) at sa mga ibang nagcomment well,
please mahirap pong icompare ang ganitong country or that country dito sa ating
sariling pambansa.

siyempre lagi namang talo tayo dahil siyempre
Pilipinas nga po eh. For example may nagcomment na mas
mura daw computer sa ganitong country which is true. kahit nung
ako ay nasa taiwan talagang mas mura dun ang computers (and electronic
appliances, gadgets) kahit iconvert mo pa sa peso. Pound for pound (parang sa boksing)
mas mahal dito. Ang mura at marami dito sa pinas ay mga taong nakangiti
kahit gutom. Panalo rin tayo vs. other countries sa mga taong masaya kahit ang tindi
ng problema. Or populasyon, talagang gold medal tayo niyan. kahit siguro
percentage ng employed vs. unemployed panalo tayo. pero ang tanong eh
di naman tayo bibili ng computers doon sa taiwan or other country kundi
dito tayo sa pinas bibili. pero kung maipapabalikbayan box (or EEC sa taiwan hehe) nyo yung
mga units eh di mas masaya dun na tayo bibili para makamura. bahala na kahit ala
ng warranty total etong binili kong ACER computer dun sa taiwan ay 1 year mahigit
na at dipa naman pumapalya.

maraming nagshashare ng “silly ideas and experiences” about investing a cafe
pero ok lang, sege lang. masaya nga eh. total nasa atin naman ang final
decision. kasi yung blogger na si JAN2 mukhang galit. Masyadong serious ba!
Pinapagalitan tayo. Hiblood ang dating eh. Baka nag-away ata sila at (matindi niyan)
break sila nung gf nya. Pero actually ayos naman ang comment nya.

yung mga nag-aask ng feasibility study, meron na bang nagawa?
kasi wala pa akong nakikita, meron dito sa website http://www.smeda.org.pk
kaso? gawa naman yung sa pakistan! kaya halos walang kwenta.
pero para magkakaroon kayo ng idea kung papano gumawa ng formal
ng feasibility study about an internet cafe. check nyo na lang. Or basahin mo kaya
etong boung blog ni chazper magkakaroon na ng idea.
if you have access to libraries, i bet marami ng mga estudyante ang
gumawa ng feasibility studies on internet cafes kaya maganda i-check nyo
ginawa nila para magkaroon ka na naman ng ideya.

about the blog #34, “mr. tanga” that is actually true. so it does not
sound sh*t actually. pwedeng pwede gawin you. kung gusto mong
pa hibloodin ang customers mo sa gapagong ng internet shop mo ay e di yung
pang bahay na dsl ikabit mo. iba po ang internet connection na pangbahay at
yung pang internet cafe. kaya nga may internetan na sobrang bagal. tiyak yung
mga pangbahay ang ginagamit ng mga iyon. i mean, i type mo
http://www.friendster.com or http://www.foxsports.com
tapos you have to wait 5 seconds bago nya maipakita yung webpage.
log-in ka, it will take another 10 seconds na naman. tapos nag
download ako ng 5mb na document ang speed ba naman ay 98 bytes/sec.
hellowwwww???? wahh! ano to? dial-up? meron pa ba nyon??
naalala mo pa ba nung panahon na
ang mga internet shop ay maiingay? yung sound ba ng dial-up?
teeetetetetwenk twenkk twenk twenk twenk twenkkkk ganun yun noon.
hahaha. umalis na ako. dito sa baguio ang mga mabibilis na internet cafe
ay pumapalo ng (average) 80 to 120 kilobytes per sec download speed. minsan
pumalo yun ng 200+ kilobytes per sec wow galing. so it would
actually take me 3 hours or so to download a full length movie.
pero naalalako, May2007 election nun walang mga tao sa internet. So gagastos na ako
ng P60pesos nun. tapos meron namang benta si muslim sa kalye
na P80 DVD, (pwede mong tawaran ng P70-75, ibigay mo na pera, ibibigay sayo, oo!) na piratang
DVD na P80, 12 movies or more pa laman nya…heheh anu pipiliin mo?
yung piratang P75 with 12movies+ or P60 na iisang movie (na pinirata mo rin via Limewire download hahaha!)

OKAY DOKAY, LETS GET IT ON.

Unang una ung internet shop ko ay maghohold ng 7 units. Medyo “top-of-the-line” kasi nga
gaming talaga ang target for them play games like NBALive 08, Command & Conquer 3, etc. medyo dapat
astig hardware mo eh. talking about a fast processor (Athlon), 1GiG RAM, 512MB Video Ram, etc. Eto ngang
ACER original PC ko- Intel Core2 Dou with 1GIG RAM, 256Video Ram ang bagal bagal pang
laruin NBAlive08, as in kahit 640×480graphics and other specs minimum pa. Super bagal na panis pa!
Akala ko pa naman ayos. Okay yung Warcraft 3, masarap laruin kahit maximum graphics e di naglalag… 1280×1024 game resolution
astig a. But this game was made 2003 pa noh? Hellow???? 2008 na po tayo. This is an old game.
By the way when i was in taiwan, the most game those chinese men (marami ang men na players not kids unlike
here pinas, mas marami kids vs men) play is WoW. World of Warcraft. Pero pagdating ko dito? Ni isa sa mga
16 year old na kilala kung gamers eh di alam yun. Ang alam eh DOTA. eh Warcraft 3 game din un noh. So ganun,
pumunta ako sa mga pirata ng games sa mall, at un nga… Walang pinirata na game na WoW. E no.1 game
yun sa mga ibang bansa noh???? Europe, U.S. other Asian countries. Mataas ba hardware requirements nong
game na yun??? Gusto ko pa namang i-share ang experience ng WoW sa mga bata at matanda dito sa pinas.
O ayaw siguro dito sa Pinas.

So gaming ang concern ko pero may internet services siyempre. kaya nga “internet cafe” kuno.
Maalala ko nung bata ako. Super adik ako nun sa video games, do you remember super contra?
mario brothers? battle city at kung anu anu pa? (if you are born in the 90s…. tsk tsk tsk you probably
dont know what im talking about my dear child) Magastos ako nun…. video game ADDICT!!!
trabaho ko nun, comboy(tagabuhat ng karga), tagapunas ng taxi, tagatawag ng taxi (wow escort service!!!) kasi may
bus company noon sa barangay namin galing sa lowlands kami ang mga “alalay kids”. Nakaka P40 ako nun
on the average per day. P1-P10 pagcocomboy, P5punas ng taxi plus P1/day na baon ko kay Lolo Rudy (R.I.P)
eh don napupunta pera sa video games… E ngayon… gulong ng palad… hahaha AKO NA RIN ang nasa
kabilang dako. hehehe.

So eto na yung feasibility study ko. As of now, April 2008 at stores ng mga computers sa baguio ang mga
naquote ko dito okay??? Siyempre hindi po exacto ang presyo pero para magkaroon kayo ng idea kung anu ba ang
magagastos nyo. The best is to encode this document via MS Excel spreadsheet para madali
magpalit ng parameter values then maiiba yung amount ng total investment, income, etc.

COMPUTER SHOP - A FEASIBILITY STUDY
EQUIPMENTS
Unit cost #of Units Total
computer system (Pentium 4) 20,000 7 140,000
8 Port Hub 800 1 800
Router 1,500 1 1,500
UPS 2,000 1 2,000
Table drawer (for cash storage) 1,700 1 1,700
Computer Table 1,500 7 10,500
Computer Chairs 370 7 2,590
UTP Cables(P10/feet) *given 10 0 0
RJ45 Connectors 30 16 480
Crimping Tool (LAN connectors) 450 1 450
Headsets 350 7 2,450
Printer *given 0 1 0
Scanner *given 0 1 0
Webcam 400 2 800
TOTAL COST 163,270

PROJECTED *monthly* INCOME FROM RENTALS
10 estimated operating hours
6 number of units running
450 rate (P15/hour) for 30 days 27,000
*conservatism used here, 6 instead of 7 units and 10 instead
of 12 hours computation

PROJECTED *monthly* EXPENSES
Electricity 4,000
DSL connection fee 4,500
Rental 5,000
Salary of assistant 2,500
Depreciation expense 4,534
Monthly BIR (1000 per month) 1,000
Business Permit and Licensing
(7000 per year / 12 months) 583
Maintenance expenses (repairs, fixes, etc) 350
TOTAL COST 22,467

PROJECTED *monthly* NET INCOME 4,533

DEPRECIATION COMPTUTATION (3years computation)
cost of the investment (assets) 163,270
salvage value (after 3 years) 4,000
life of computers 3
annual straight line depreciation 54,407
monthly straight line depreciation 4,534
daily straightline depciation 151

gross daily income = monthly income / 30 900
gross daily expense = monthly expense / 30 749
net daily income 151

*conclusion:
you must earn more than Php–> 749
to break even

Bakit “given” ang mga printer/scanner at LAN cables at P0 pesos ang amount? kasi meron na ako nun
dito sa bahay. may printer at PC ako dito. yung una kung computer 11 years na. Pentium1 (166Mhz,32MB RAM) yun. haha. never
nasira. (well nasira yung floppy drive and CDROM but other than that it’s ok) naobsolete lang.. ngayon wala ng silbi. nandon sa
bodega. wala namang bibili kahit P2000 (that was P30000 before). Anyway yung bago kung computer, Pentium 4 1.8Ghz Pentium Core
Dou 2 e imbes na maobsolete na di naman gaano nagamit idadagdag ko na sa investment. The investment was priced P0, pero kung
gusto kong presyohan eh di no problem, just add the estimate amount at magkakaroon ng
ng bagong amount ng total investment. just put if you like. no problem! So total investment
is more or less P165,000. Actually the exact amount of the computers are P19800 each pero i senakto 20K ko na lang.
We will be buying 17″ inch LCD flat monitors para astig and technically speaking, paobsolete na mga CRT monitors (yung mga malalaki)
at di hamak na mas malamig yung mga LCD monitors vs. CRT monitors pag matagalang naka-on yung mga monitors.
Para hindi naman super init ang computer shop mo.

So ayon sa aking feasibility study, estimated daily gross income is P900, gross expenses is P749, so daily net
income is 151. OMG anu yan??? P150/day sweldo??? Di pa kasama meals ko diyan! At yung tubig! naku po! Palugi. Parang ala talagang income.
Well, actually yung shop ko naman is with a sarisari store. Doon mangagaling ang supplemental income
for my survival. Actually right now, sari sari store yun at may daily income rin yun. E-expand
ko lang at computer shop nga ang expansion plan. The rent will be the same kasi yung boung pwesto ay
P5,000/month actually. And of course im not really setting up this business to gain purely on income. If i want
to gain income then why not invest in jueteng, sabong or pasugalan di ba? Joke! Well, passion ko
rin naman computers and kids (hahaha i’ll get their money from this bisyo on computer gaming like i was before)
and malaki ang matutunan about investment sa undertaking na to. This is my last money actually
so let’s play dangerously. Actually right now? I really dont know what to do in my life. I can apply
to Taiwan ay use the remaining savings i’ve got. P100K din un and since it would take me a year
or so to get back that investment in taiwan, might as well do it here in the comfort of my inang bayan.
Di rin lang naman kalyo, pagod, homesick ang mararanas mo sa ibang bansa, pati INSULTO mararanasan
mo rin yun sa mga banyaga. Marami sa kanila tingin sa mga pinoy, 2nd class citizen lang. And Taiwan
lang naman kasi pupuntahan ko at hindi Europe or USA. Yung mga application ko sa Middle East, reject
naman. Sayang lang yung mga nagastos ko dun kapupunta Baguio to Manila to Baguio. Kakaapply.
Kahit siyudad ng Malate nga namaster ko na ata nilalakad ko yung, agency to agency. Malaking frustration nga rin to nangyari sa akin. Kaya after that
nadepress nga ako ng todo at isang buwan lang ako sa bahay di lumabas. So after playing Mount & Blade
pasado 3am parang bumbilyang TINGGGGG!!!!! Why not set up a computer shop para may kasama akong
nagpupuyat kalalaro but this time may konting income pa ako???? Hmnnnn…. No brainer.

OKAY, since i want to go legal, then of course I have to secure permits di ba???
Yes, I am willing to do the grinding and binding requirements of the city of Baguio to secure a permit.
I am willing pay all the needed permits and licenses. Law abiding citizen nga eh.
At etong ang pinakamahirap na proseso. I am just a plain ordinary citizen applying for a permit. I dont
have any connection to any goverment officials/employee in there. I wont be hiring an assistant or “agent” to do the licensing.
Para makita ang totoong picture. So sege pumunta ako sa cityhall ng baguio. Huhuhu. First stop, secure sedula.
Pila balde siyempre. Maraming chicababes (sex workers ata). busog ang mga mata. Pero ang
puso umiiyak. Pagdating ko sa cedulahan,
sabi ko i was unemployed for a year na. But then he ask me what was my previous earnings for the year
2007. I told him I was employed Jan-March 2007 with a monthly pay of P15K per year. Okay, so i paid
P54 pesos. Not bad, i actually paid my previous cedula for P279. That was a no brainer for me. I told
him i was earning 20K per month. Dont get me wrong I would never have told that if i only knew. Because
back then i thought all income derived from other countries are tax free kasi tinatax ka na dun. No double
taxation d b? (eto naman itinuro sa college a. may exam pa nga tayo sa taxation about this income) e
matigas ulo ng empleyado sa city hall na pang BIR lang daw ung exemption so ayon wala akong
kalaban laban na bumayad ng P279 sa cedula lang. siyeeet. E kagagaling ko rin naman sa abroad nun
so masagana pa ako ng pera kaso mali yun. So if you are a let’s say a nurse or engineer at kauuwi mo lang from Europe/USA
lang this time at balak mong magsetup ng business? E patay kang bata ka kung akala mo akala ko na hindi itatax yang foreign derived
income mo, better shut up. Say you’re just a small time businessman. Eh 20K/month na sahod = P279 Cedula e
alam naman nating P100-200K per month sumahod ang mga nurse/engr na iyan eh magkano na cedula mo???
hehehe P1395-2790 cedula lang!!! pero sege kung bigtime ka na at galit sa pera, sege sabihin mo sa
cityhall empleyado na sumasahod ka 100-200K per month at baka iilaw mata nong employee sa bilib. hehehe
So ayon natapos na sedula ko. Kumuha ako ng permit to engage in business form at nangangailangan
ng notary public yung documento. Pumunta ako sa PAO (public attorneys office) para makamura.
sabi ni atty. P10,000 lang and below daw ang pwede nilang inotarize. inirecommend nya ako
sa isang atty sa labas ng cityhall. friend ata. a private lawyer. I went there and P200 daw notary fee. After
he was done, I just gave him P100 with a smile and umalis na ok. Di na nakapalag! Sori na lang
siya kung binarat ko sya. Sorry talaga. Promise pag nanalo ako sa lotto, bibigyan ko siya ng P10K
balato. You’ll be my witness.

So i went back to the city hall and there I have to ask approval for 6 divisions before being given a permit:
1. City Planning,
2. Sanitary,
3. Building Site,
4. Zonification (City Market),
5. Fire Protection and
6. City Treasurer.

Step 1. City Planning, went on like these: I went to the department in the city hall and
first problem encountered. What’s up with this 40something lady who is saying all this and
that about not being able to sign this permit because the computer shop is not allowed
at residential places. But I dont see her opening her drawer! (the sign of suhol daw. you know
the story of drawers who keeps opening and closing without doing nothing?
Well? Why is that I see so many computer shop in barangays like sprouting
mongo then? So this is it? Step No.1 e palpak na pala ako. The point is, what now?
So no need to acquire a permit? Just go ahead with my plans operate a businesss without a permint
and bahala na kung mahuli ng City Officials/BIR later? Anyway she says, I have to talk to this
councilor daw muna. Whaattt??? This permits doesn’t require a “certain” councilor….. Eto na
ba ang simula ng Suhulan 101 sa cityhall? I am doomed.

By the way, kumuha na ako ng barangay
business clearance (a requirement for sanitary permit) and not a big deal actually,
I paid P50 and the next day, meron na papel. I applied
11am. And pinababalik ako 3pm dahil ala daw si kapitan (sa rasong ewan di sinabi), pag balik ko
330pm e bukas na lang daw 9am dahil never sumipot kapitan. I went there 10:30am next day
at yun nakaprepare na.

So after sitting like 30 minutes in the cityhall common sofa with other pipol minding their
own business. Ok, let me just do it. So i went to the office of this councilor. The good this is
that when i enter the office of the councilor, there are 3 staff to go before the boss (meaning councilor)
and this man has this smile to me. An aura of being welcome and I really dont know
if i knew this guy. Was he a former college friend? Hischool maybe? Man, I don’t know. But as if
he knew me. He looked at my papers and directed me to the councilor. Well, i greeted the boss and
he just asked if gambling is still in my barangay. I told him i dont know because there
is a new barangay captain. And then told me not allow games on my shop because of
the kids. I said yes of course but of course, how can an icafe survive without offering
games? I mean what do kids (which is probably 80% of my clientele base) will do in my shop?
internet (maybe, probably friendster and youtube) and do wordprocessing for two hours (probably absolutely not)
and just like that, he signed his initials near the top page and give it to me. I was done!
This councilor only took 10 seconds and im finished! I didnot even vote this guy as
a councilor because i thought he is too old. Like a trapo you know. But look at what he did great.
He is an good old councilor. I feel bad. So i went back to that 40something woman and after looking at that initials, she
asked me what the councilor told me and i told her. Then she signed my papers. Heck
she is not even the person supposed to sign my paper. She must be the assistant because
the paper listed the approving officer as a man. What a day.

Step 2. Sanitary. Because I am applying for a sarisaristore + computer shop. They require
me (when i asked them) to go undertake a medical certificate for the sarisari store. What??? I did this 8 months ago when I
applied as a waiter in a chinese restaurant — but i wasnt hired and this application for a medical certificate is a damn old CRAP!
The officer said she will only issue me a sanitary permit after i finished the medical certificate. You know
why i hate this stuff? It’s the paghuhubad (butt naked) and scraping some sh*t in your anus men! A
homosexual nurse (hopefully not a student) did that to me and f*ck that experience men! EWWWWWW!!!!
okay okay, i had medicals back then and okay lang yung process but that was for ABROAD men? ABROAD.
Of course the medical has to be complete but I am only applying for a sari sari store /computer shop and
i got to be buttnaked,scraped again. Where is the justice!!! So anyway i went for the usual mumbo jumbo
application of that medical. I already have a medical certificate but it expired January 2008. So when I went
to get that long white form, no one was there. I went outside and went to canvass computer tables.after
two hours i went back. The guy told me the picture must be 1×1 and i have like 1.5×1.5 i told him
i can cut it right and still my picture would hold. E ayaw nya dapat 1×1 lang daw. As in. Sure! (!@%@#%%@# naman to. gastos
na naman for developing) So i went out and had a recopy in a studio. but i have to wait for the 1 hour developing agen
so i went instead to

Step 3. Building site. babalikan ko na lang bukas tong sanitary. This step is actually more problematic. Kung mga medtech, nurses, xray technicians
at doctors makakahalobilo sa sanitary, mga engineers at architect mga tao dito. Big time. Anyway, I went there 12:20. Open office pero
nakapatay mga ilaw. Lunch break, I know. I know.
Anyway I sat at there sofa and waited. In fairness maganda office layout nila. At about 12:50 a woman asked what I want
and i told her i am applying for a business permit for my sarisari store and computer shop. She took my papers
and stamped: “For taxation purposes” in the location where i need the signature of their boss. Hintayin ko daw
cashier may babayaran ako. 1:05 the cashier arrived. I gave her my papers and asked me P100 pesos. I dont
know what is this for. But I paid her. Turns out that was for certification of No building or occupancy permit. Hahaha.
The first inconsistency i encountered here is that, the govt. receipts attached reads P100 paid but the
paper typed in the certification is just P50. Should i ask her about this? I just let it go. Baka mahighblood pa eto.
Actually this is the primary problem of my application permit the lack of BUILDING PERMIT. Even my landlord knows
about this. They dont have a building permit. And she doesn’t care! If I want to have a business permit, I’ll have to pay it all myself daw.
This is really a problem because when my sister and my aunt built a house here in the city, the building permit alone costs P20,000! That
was way back year 1999 then. What the F*ck. I can’t be able to do this. I dont have the money. This is actually the obstacle I am
facing. Right before i even think of putting up a business venture. Tama theory ko, hindi madali makakuha ng business
permit dahil walang business permit ang bahay na re-rentahan ko. This house was illegally built back then.
But this house is concrete mind you. So the “clerk” told me to have my paper signed by that woman in the
next cubicle. And I went there. She asked if i have a bldg permit, i told her “no” and she said she
can’t sign it so she referred me to go to this architect kolokoy. So i went to the cubicle of this kolokoy. But this architect kolokoy told me instead
to wait for a certain engineer because he is the one will issue a certificate. Why I referred him to be a kolokoy
will be told later. But because the engr is not around i waited in their monoblock chairs. Which there
are some guys also waiting. This is bad. All the guys looked like in their early 60s. Hitsurang mga contractors, foremen. etc.
anyway, that was forever waiting and i chat with this man until he cant wait anymore. balik na lang
daw siya bukas. So waiting about 2 hours in the sofa. My stereo so nakikinig na lang kami at malamig pa naman
dito sa baguio. Pero honestly… i dont really like this treatment. I am a law-abiding taxpaying citizen!!! Poor pinoy pipol.
Anyway, after that, a man who looks like an employee in the office comes in. One of the “contractors” went after him. Had
a 3 minute talk and finished. Im not sure if that’s the guy i am supposed to talk. When I went to see kolokoy architect to ask
what is the name of the engr am i to talk to, he[kolokoy] is nowhere to be found, just a while back he is in cubicle playing solitaire.
maybe he got bored and smoked outside. but i went to the engr anyway because i did not sit but butt for
two hours for nothing. I told him what i want and then after some Q and A, then engr left me alone. after about 30 seconds he called my name loud
“Mosessssssss……………umay kad toy” (translation:Moses halika dito)… i say back.. “Sirrrrrrrr” as i scramble to where the voice is coming from
and what the f*ck the engr is at the cubicle of the architect kolokoy. Architect kolokoy is still not around. Damn that architect kolokoy he is just too lazy to make my certificate!
so the engr opened a word document and opened Google Earth to check my business site. Well, Im a little impressed after all this boys
are into technology. I can see where the house of my landlord is. If you watch movie “enemy of the state” parang ganun. with
satellite pictures. After i pointed my location at the screen. He computed the distance from my shop to the highschool. F*ck it. its only 100 meters
apart. So he typed a document certifying that my business location is WITHIN the prohibited location under Presidential decree blah blah blah.
And he signed the document and directed me to their super boss. The super boss is the one whose name is actually listed in my application. And
I went inside, greeted him and gave my papers. He asked me if i have a building permit (that building permit again!), and I told him i dont have.
He said that maybe the older owner or original owner might have had a permit before. But I told him i really dont know. So he signed not above his
name but beside his name and listed: “NO BLDG PERMIT”
and he warned me that my business permit might not get signed. I dont know what he is implying. Is he saying that the City of Baguio might not issue me
a permit? He doesn’t look like he is asking under-the-table you know. What will I give him, P100 (is only that i’ve got) for him to sign my papers?. hehehe.
He doesn’t look cheap you know. I got my paper and left. So here I am now. I just hit a brick. Maybe he is right. I dont know if there is a
remedy on this problem but tomorrow I’ll get my papers to the City Firemarshall. Let’s see what the head of the baguio city bombero has to ask for me.
Will he ask if i have a fire extinguisher in my establishment? A Fire exit? Of course
I dont have a fire extinguisher. A friend told me it costs
P10K each! Man, I’ll just tell him there’s a lot of drums in my shop filled with water. Fire Exit? There is only one exit: the gate. hehehe. Anyway, check it tomorrow.

(Next day….) So I went to the Baguio Fire Station and I met a fireman in the name of Sgt.Domingo. He said [translated to wikang pambansa from ilocano] “O ano
punta na tayo?” Hehehe I thought they will just prepare my fire certificate clearance (needed for my business permit) without going there at my poor place. So there
is a physical inspection pala. It’s raining and its already 3:50om.Anyway I called a taxi. So we arrived. He brought out an inspection checklist while he walks around
my pwesto by the way, the sari sari store is already set-up but my shop is not yet because may umuupa pa don. after aalis sila saka ako papalit. Their rent is P2500 and
lilipat sila sa isang kwarto na P2000 rent o di tipid. Well, mr. fireman (hehehe, now I remember mr. Pido Harencio, the “fireman” of Ginebra) just
basically asked basic questions (redundant ba?) How many floors is the house, conrete? where is the kitchen, etc. And made some suggestions that I
will do daw like, there must be ventilation, etc. And he is done! What I lack according to him is a fire extinguisher. A 10lbs fire extinguisher and since
I dont have one, i must buy one so he can prepare my fire clearance. He said the price of one unit is P2,500-P2,200. Ngek! My reason of I have
many drums filled with water is not good enough because electricity daw ang magiging sunog sa computer shop ko, e di magkokoryentehan na lang.
So i asked him where to buy such device. Then get this: He told me specifically to buy a fire extinguisher from a certain supplier and tell them his name so i can have a discount.
Hehehe, now I know. Ok ok, I would assume he will get certain percentage from the sale of such extinguishers di ba? Parang yung relasyon
ng isang medical rep eto sa isang doctor di ba? A doctor will prescribe a drug but you must buy this drug from this store di ba??? Di ba???
anyway, what the heck.

Lagay mentality.

The fire extinguisher costs P2500 at the most. Can I just give this man P1000 and he will just prepare my inspection certificate
without me really buying a fire extinguisher. Its a win-win situation. I get P1500 less expenses and him, P1000 richer. Ikaw ba naman ang sasahod ng P1000 per
day? O haaa??? This had played in my mind for a while pero naisip, sasanayin lang nating sa mag lagay etong mga opisyal natin eh. Tsaka
this is my first time to apply such stuff. Siyempre immaculate pa rin ako. Kakahiya. Next year ko na lang itry maglagay kung magagawa after I been
there. Done that. Virgin pa po ako eh. So I opted to just buy that damn 10 lbs Raven Dry Type ABC fire extinguisher. Men, medyo mabigat.
Mahihirapan mga ladies na gumamit nito. And after I got the receipt, I went to the fire station. He was there and gave him a smile. i showed him
the receipt and he started preparing a certificate, signed it, went to his boss,have his boss sign it and gave it to me. Im done. It took about
five minutes. Next day, I went to the Baguio Health Center with my stool for analysis. Of course, my chest xray is negative and also my
stool analysis. The good thing is I no longer went to that dreaded “SWAB on the ASS” sh*t. Actually, when I went for the final check it was
3pm and i was caught on their 3pm break so it’s like 3:30pm when those health center pipol started to work agen. After the doctor is done examining
me I went to the certificate issuance. I paid P25 for the certificate and that’s it. Kinda “easy” to get a sanitary permit. After lining up, the guy asked
if i knew this man who happens to share my family name. I told him he is my uncle and the guy asked if he is still training dogs [said uncle trained his dog 3 years ago]
and i told him he is separated with his wife and he is now just at home depressed. Im kinda depressed too I said myself, that’s why instead of staying home i decided to put up
a sarisari store that’s why im here in front of him so at least not 2 but 1 pipol is depressed at our residence. Hehe we both laughed. And then he told me to sit for a while. After
10 minutes my name was called and my sanitary permit is done. During that waiting, a georgeous woman was actually sitting beside me. She
is applying for a city permit. Because I like her figure and medyo pretty face, I have to talk to her. For practice. “Communicating with women” You see, Im a late bloomer.
Losing my virginity at age 29. Wahh, what a loser. So I teased her on why she entered the doctors room without being called. Because we
were lined up, and one by one our names were called for physical examination. She just went straight ahead. (Dont worry they wont strip you. They’ll just check your nails and
mouth) She said, she already went, thrown outside and now had her nails cut. She told me, the Baguio Police needed such permit. What is she?
A club dancer? I mean the body is Beyonce-like. I actually joked her that too bad her pretty nails had to be cut. I tried “accidentally moving”
just for my elbow to “semi” contact her hips… hehehe… But then she started calling me “po”/”kuya”/”etc”
(a.ka.a matanda ka na) so i backed off. When girls starts calling you “uncle/sir”…. back off — they dont want you. Enough of being busted again.
Most important, im done with my permit. Tomorrow Im back on the city hall.

April 15. So i went to the cityhall again, i asked the lady guard this office [criminal and investigation division] is located because according
to the flowchart, this is my next step. So i went in and showed my paper and she told me to have a CEPMO (for the sewerage) certificate and contract
of lease with the landlord since i will be renting. So I went to to CEPMO office for the certificate, there was no pipol inside. I asked the pipol
around where are the CEPMO pipol and i literally said
its still 11:00am not yet lunch break. She was somewhat surprised to what i said and that it is APRIL 15 daw kasi SWELDO daw!!!! aba ganun ha. kaya maaga
lumabas. And she told me that baka they’re on field. On field my ass. Anyway, I decided wala ng mangyayari sa akin dito sa city hall so i decided to go
to make that contract of lease. So I went home and made a draft for that contract of lease and went to find my landlord
for her to sign the contract of lease. She said she’ll read it daw and give it to me next day. So I went home. End of the day.

MY APOLOGIES. MY SINCERE APOLOGIES. THIS INTERNET CAFE PLAN OF MINE IS A FUCK UP OPERATION.
DAMN. I’M SO DEPRESSED RIGHT NOW. I FEEL SO BAD. IM COUNTING ON THIS PLAN. ONLY TO END IN THIS
BLAZE OF DAMN FUCKED UP B.S. (B.S. = BULLSHIT). MY EYES IS CRYING RIGHT NOW. IM HURT. Here’s what happened.

So the next morning i went early to my landlord, Mrs. “E” to get the contract. Went inside the house and
she met me with this statement, “my problema.” tsk tsk tsk my heart just felt bad. you know the experience
when you were courting a girl for sometime and one time she will look you seriously in the eye…. and you know
what’s gonna happen. Yeah, you just know what you’re going to bite the dust. You can feel the aura of her rejection…..
and she’ll said “di pwede” or “may mahal na akong iba”
or “kaibigan lang…” and other than that kind of crap… that exactly what i felt when she said those words. what the fuck
is wrong??? I can feel something is wrong. And she said… she can’t sign the contract because her elder sister does not want me set up a computer shop below
their house. They have a two storey house. All the rooms below are for rent and the second floor where the owner rests. and
she cant do anything about it. She’s the super boss? Again, that infamous elder sister of Mrs. “E”, the bruha of my life and is there to make my day.
remember we talked all about this and its a go for me. that’s why I even went to all this bruhaha and
research and made a decision to invest. because its bad for the kids blah blah blah that her kid [bruha's kid] weren’t able to go to school because of computer and
what other crap she is talking about. So its now my fault why her kid dropped from school? Sheezzz.
Fuck I was a computer gaming addict myself 10 years ago (even now) but still i finished college. so what the fuck.
I mean… WHATCHAFUCHS.SONOFAVITCH.

So all my hardships of going to this and that government office, the paying that damn fire extinguisher..
[anyone who wants to buy this fire extinguisher? I dont need it anymore]. And so this blog of mine is going
to a premature ejaculation end. Hay…. anu ba yan. Dami ko pang plano at gagawing trabaho plus sharing to this
blog only to end because of the decision of the LANDLORDS. Honestly this is the best location for me ok.
There are no other feasible location in that area. The other locations are too crowded with inetcafes…
Really sorry about it. But this has to end.

55. mr inetcafe - April 29, 2008

mr msl25
(54. MSL25 - April 22, 200 8)

hahaha! funny but true! hilarious actually!
email me to discuss about a job for you. would you be interested in managing 3 inetcafes? 20k per month.

sirhc11@yahoo.com

56. Thunder - May 13, 2008

thank GOD I’ve found this info. it helped me a lot in my FS.

57. Thunder - May 13, 2008

hope u’ll post an actual FS on Internet Cafe…. pls……………………………..

58. chazper - May 14, 2008

MSL25,

At first I thought you were a spammer :P

I was about to delete your novel but decided that it is worthy to be in a separate post.

Cheers!

59. mcoy - May 19, 2008

glad to find this blog as i am also one of those who plan to put up an icafe….

my target customer are the gamers… so what computer specs should I buy?

thanks for the help and more power to you

mcoy

60. Lorena Oclidina - May 20, 2008

Pwede mo ba kaming tulungan sa trabaho pambahay dalawa kami magkasama ako at aking nanay para katulong.

61. Lorena Oclidina - May 20, 2008

ano stay please replay ngayon din.kasi lisod po kuya eh………..

62. Lorena Oclidina - May 20, 2008

this time now early please help us I’m crying.

63. dahgreat - May 20, 2008

chazper,,, i applaud you for this great site…it really helped a lot with my FS, ive gathered much more information than what ive needed. I do hear a lot of stories concerning this i-cafe’ bizness of today having much difficulty during this tougher times,,i.e rising energy cost,rental,maintenance and etc..and much worse trying to outdo each other in the Biz..and it’s this crab mentality that has taken hold of the filipinos that hurts the most and i dont want to sound disrespectful coz am too am a filipino and im proud to be a filipino but that’s the truth. It’s really an achilles tendon in our society. Though sad to know but,that’s what will happen eventually in any playing field may it be in this i-cafe business or anywhere else. Competition is healthy if it were to be played on common grounds but that’s not the case that mostly will happen. Inspite of this imperfections raging from side to side still im so determined to push my bid to be an entrepreneur, still im so fired up but had to check my engines, dont want to be left by the roadside and ridiculed. And to anybody wishing to start an internet cafe’ bizness like myself, the odds are visible thru this blogsite,its healthy to take risks if the risks are worth taking for..to you Chazper, my utmost thanks..keep up the good work coz ur helping a lot of people in many ways possible..God blezz…

64. cromae - May 25, 2008

hello,,, sa inyu,,, may itatanong lang po ako,, miron po kc akong internet shop,,lahat po ito puro bago units, at matatas ang specs, sa kasalukuyan nga pong nag ooperate na sa ngaun,,, ang tanong ko po,, ano nga po ba ang naging daHILAn kung bakit nag la log ang mga pc clients ko tuwing may naglalaro,,,ang ginagawa ko nga po ay, tuwing may maglalaro, ay ne re restart ko po muna ,bago ko ipapagamit sa customer ko,, para po hindi sya mag la log,,, ano nga po pla ang nagiging dahilan kung bakit ganun,, at ano po bang pedi kung gawin/ sana po matulungan nyo ako,, thanks…

65. sherwin R. Javier - June 18, 2008

Hi guys,

Thanks for sharing all ur concerned and ideas, same here i was planning to put up my own i-net or to franchise..i’am still getting more ideas to make sure that my plan will be successful, as a starter im planning with 15 units with some extra machine like xerox,lamination etc, unfortunately i don’t have any idea as of now regarding the documents needed to set up this business, i am base here in dubai U.A.E for the last 18yrs and never work back home,if someone can help me to find the way to solve my problem kindly email me and it will be as great thanks to you. please note down sherwynjavier@yahoo.com or sherwin@osi.ae int’l number is +97150-7021194, by the way im planning to set it up anywhere in Paranaque city by this coming, i’ll be coming home by Jan 09 to start my plan. thanks and more power to all.

Best Regards