Succeeding In I-Café Business
This is my fourth article on the subject of why most i-café start-ups fail and I am supposed to discuss about why does i-café business seem like such a competitive and impossible to succeed industry. Instead of talking about the negative factors that cause i-café start-ups to fail, I decided to have a positive title for this blog and enumerate the business variables to consider when entering the i-café industry.
Success in any undertaking, much more in business, is hard to come by. For anyone to be successful on what he wants to achieve, careful planning and proper execution of plans are needed. It should also be mentioned that success is notoriously hard to predict. In the absence of any surefire formula for success, investors are advised to consider the following before finally putting their hard-earned money into the “easy to set-up but high-risk i-café business“:
- Location – You don’t decide to start the business just because the i-cafés in in your area look well-patronized. Know the prevailing rates, situation during peak hours, lean periods and whether there is unmet demand that you can serve. If none, go somewhere else. Familiarity with a place is not a guaranty for success in the i-café business.
- Operating Capital – This is the money you need to operate your i-café in its early stages until you attain the “operating on profit” status. This is aside from the money you will spend to buy the computers, furniture and fixtures, rent deposits, space improvements, permits, licenses and others. All new businesses require adequate capital to commence trading. promote, survive, pay expenses, allow drawings by the owner, etc. It is suggested that you must have enough fund to cover your operating expenses for six (6) months.
- Business Regulations – You must be prepared to comply with all the rules and regulations being imposed by the local government units (barangay, town or city) where you will locate your i-café business. Ordinances regulating the registration and operation of i-cafés vary from one barangay, town or city to another. There is also the national law on the intellectual property rights of software developers that you need to comply. Peace of mind in any business operation can only be attained if you are fully compliant to all the legal requirements.
- Business Models – It is not enough that you copy the products and services of your competitors. You must come out with unique business ideas that could result to your customers’ satisfaction and loyalty. Operating on a single strategy could spell disaster on your business. Stay dynamic, unpredictable and always ahead in the competition.
Yes, “it’s just an i-café” but it takes more than passion and being a copycat to succeed in it. Many i-café start-ups fail over idiotic little things like not having operating capital that could last for six months, a broken printer and no money to buy a new one, or flimsy plans that change every week, leaving employees and customers wondering and confused.
I-café is such an easy business to set-up and operate but it needs a lot to have customers come in and stay. Most new start ups are woefully under-capitalized, fail to plan and if they do plan are terribly over-optimistic. Don’t fall for the business craze called i-cafe, it takes more than you think to succeed in it.