How to start Internet business? First thing, an Internet shop, computer shop or cybercafe is a place where one can use a computer with Internet access, usually charged per hour or minute and sometimes one can have unmetered access with a pass for a day or month. It may serve as a regular cafe as well, with food and drinks being served.
Costs in starting Internet Business
I. Estimated Investment Costs
| Qty. | Descriptions (minimum specifications) | Amount |
| 1 | Intel Core 2 Duo Processor 2G DDR2 RAM, 160GB HDD 512MB Video Card 10/100 LAN Card (or built-in) CD or DVDRW Drive 56K modem or ISDN (internal or external) 19” LCD Monitor Keyboard and Mouse Automatic Voltage Regulator (AVR) | 30,000.00 |
| 9 | PC Workstations (not branded) Intel Dual Core, 1GB DDR2 RAM 512 MB Video Memory LAN Card 10/100 160G Hard disk, 1.44 Floppy Drive 17” LCD Monitor Keyboard and Mouse Automatic Voltage Regulator (AVR) | 27,000.00 /pc = 243,000.00 |
| 2 | Printers | 15,750.00 |
| 1 | Laser Printer | 3,950.00 |
| 1 | Ink Jet Printer | |
| Other Peripherals | ||
| 10 | Headset @ 600.00 /pc. | 6,000.00 |
| 10 | Web Camera @ 950.00 /pc. | 9,500.00 |
| 50m | LAN Cable /UTP/CAT5 @ 50.00 /m | 2,500.00 |
| 20 | RJ45 Connectors @ 10.50 /pc. | 210.00 |
| 1 | Switch Hub // Router Wireless | 3,000.00 |
| 10 | UPS 500 VA @ 2,000.00 each | 20,000.00 |
| 1 | Scanner | 3,150.00 |
| Total | 337,060.00 |
Software Requirements
| Operating Systems (Windows XP Professional) for 10 units @ 6,750.00 per license | 67,500.00 |
| Any Anti-Virus Software, Anti-Spy software – will eliminate or minimize treats and system breakdowns | 16,000.00 |
| Any Application Systems for operation – Word Processing, Spreadsheets and Gaming Software | 14,000.0 |
| TOTAL | 97,500.00 |
*Estimated investment costs based on 2009 prices
Direct Costs*
| Particulars | Cost |
| Supplies and Materials (Papers, CDs, Diskettes, Printer Cartridges, Pens) | 5,000.00 |
| Telephone | 1,500.00 |
| Internet Service Provider (ISP)/DSL | 4,500.00 |
| Total | 11,000.00 |
* Monthly cost assumption
Indirect Costs
| Particulars | Cost |
| Labor Cost (P382.00/day min. wage x 30 days x 2 staff) | 22,920.00 |
| Water and Electricity (P250.00/day x 30 days) | 7,500.00 |
| Contingency Cost (10% of direct costs) | 1,100.00 |
| Total | 31,520.00 |
II. Estimated Income for One Month Operation
| Services | Amount | |
| Internet (Surf, Chat, Email, SMS) (P20.00 /hr x 7 hrs x 30 days x 10 PC) | 42,000.00 | |
| Encoding (P10.00/pg x est. 100 pp /mo.) | 1,000.00 | |
| Printing (P5.00/pg x est. 600 pp.) | 3,000.00 | |
| Scanning (P10.00/scan x est. 50 scan) | 1,500.00 | |
| Gross Income from Operation | 47,500.00 | |
| Less: | ||
| Direct Costs | 11,000.00 | |
| Indirect Costs | 31,520.00 | 42,520.00 |
| Estimated Net Income from Operation | 4,980.00 |
Other Products and Services:
– Gaming
– Web Designing
– Desktop publications (e.g., calling cards, invitations, etc.)
– Other computer-related services
– Food, coffee, beverages, schools and office supplies, etc.
III. Procedure in starting Internet Business
Online business must have a network connection or connectivity between your computer and the Internet, a network, or another computer. A network is a group of computer systems that are connected together. Sometimes a computer is connected to a local area network (LAN) which connects computer systems that are close together, such as in one room or on one floor of a building. A server controls most of the networks. With Network Connections, you can gain access to network resources and functionality, whether you are physically located at the location of the network or in a remote location.
Small Internet and Computer Services Business should have Personal Computer (PC) Server and PC Clients.
Server – a computer that carries out clients’ requests. It is the main computer or device on a network that manages network resources and handling network files, printers, database, and other devices. Servers are often dedicated that they perform no other tasks besides their server tasks.
Client – an application that runs on a PC or workstation and relies on a server to perform some operations.
There are different network connection types. The most commonly used by Small Internet Café Business are Digital Subscriber Line (DSL) connections or broadband provided by Internet Service Providers (ISP) companies. Some are still using Dial-Up connections with subscription plans.
IV. Hardware Requirements for Network Connections
Depending on your configuration, you may need some or all of the following hardware:
1. Network adapter with a Network Driver Interface Specification (NDIS) driver for LAN connectivity;
2. One or more compatible modems and an available COM port. A 56k modem or Integrated Services Digital Network (ISDN) adapter if you are using an ISDN line;
3. DSL or cable Modem, typically connected to an Ethernet network adapter;
4. Analog telephone line; and
5. A multi-port hub/adapter, which may improve performance for multiple connections.
V. Selecting your Internet Service Provider (ISP)
An Internet Service Provider (ISP) is a company that provides Internet access to other companies or individuals. An ISP maintains connections to other networks and ISPs, acting as a router for Internet traffic between a customer’s computer and any other machine also connected to the Internet anywhere else in the world. ISPs can provide access to the Internet in many ways. Most ISPs in the country are into subscription plans and provide good packages for home use and small businesses.
Download a sample of Computer shop feasibility study.
– Sample 1
– Sample 2
VI. Registration Requirements
Business Name Registration
Department of Trade & Industry (DTI) within NCR
a. 12/F Trafalgar Plaza, 105 H.V. Dela Costa St.,
Salcedo Village, Makati City
Tel. No.: 811.8232 loc. 208
b. 2/F Park N’Ride, Lawton, P. Burgos Ave., Dr. Basa St.
Ermita, Manila
Tel. No.: 536.7153
c. G/F Highway 54 Plaza, EDSA
Mandaluyong City (across SM Megamall)
Tel. No.: 706.1767
d. 5/F Araneta Square Mall
Monumento Circle, Caloocan City
Tel. No.: 332-0854 / 332-0829
Provincial Office where the business is located
Website: www.bnrs.dti.gov.ph for online registration
Validity: 5 years
Mayor’s Permit
Residence Certificate and Sanitary Permit from the Municipality or City where the business is located
Validity: 1 year
Tax Identification Number (TIN)
Bureau of Internal Revenue (BIR)
National Office, Agham Road, Diliman, Quezon City
Email: contact_us@cctr.bir.gov.ph
Trunkline: (632)929.7676 / 927.2511
www.bir.gov.ph
VII. Financing
SSS Special Financing Program
Social Security System (SSS)
Institutional Loans Department (ILD)
SSS Building, East Avenue, Diliman, Quezon City
Tel. Nos.: (632) 920.6401 / 927.8249
Email: member_relations@sss.gov.ph
www.sss.gov.ph
Small & Medium Enterprise Credit
Phil. Business for Social Progress
18th Flr., Phil. Social Dev’t. Center
Magallanes cor. Real Sts. Intramuros, Manila
Tel. Nos.: (632) 527.7741 to 48 / 527.3751
Fax No.: (632) 527.3751
Email: pbsp@pbsp.org.ph or smec@pbsp.org.ph
www.pbsp.org.ph
People’s Credit and Finance Corporation (PCFC)
395 Sen. Gil Puyat Ave., Makati City
Tel. Nos.: (632) 897.8549 / 752.3746
Fax No.: (632) 897.8523 / 897.8528
Email: info@pcfc.ph
Website: www.pcfc.gov.ph
VIII. Technical Assistance
Philippine Trade Training Center (PTTC)
PTTC Building, Sen. Gil J. Puyat Avenue cor.
Roxas Blvd., 1300 Pasay City, Philippines
Tel. No.: (632) 468.8969
Fax nos.: (632) 831.9988 / 833.0809
E-mail: info@pttc.gov.ph
Source: dti.gov.ph, Photo: digitalbattle.com
how much is your start up capital for this business
Good Day Po! Tanong ko lang kung ok lang ba na malapit ung computer shop sa Brgy.Hall? Quezon Province po kami….nasa community lang ng isang subdivision ung Computer Shop.. thank you?
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Kano start up kapital ngayun para makapag tayu ka nang isang computer shop. Tnx
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hi good day I just wanna I if there is somebody to help me how to give an idea in pricing for Mp4 movie download. I am a new in starting up a Business of Computer cafe. Thanks.
Meron na po bang updated computation for 2016? Thanks.
this a great article..could you possibly upload the feasi into a more friendly website like blogspot or dropbox because i wanted to take a further look at it?..
Employment rate! whew
Hardware specifications are out of date and overpriced. This is the ideal specs, for the time being, which can run modern games like DOTA 2, LoL, BF3, and the likes:
AMD A6 6400k/7400K
A68 FM2+
4GB DDR3 1866Mhz
1TB 7200rpm SATA
18.5″ LED
1 complete set including peripherals (keyboard, mouse, cables, avr) costs more or less than 15k.
Printers are cheap, you can get 1 with CIS for 5k.
Webcam is really optional, 500 each if needed.
You don’t need to have 1 UPS for each PC, 1 for server is enough.
LAN Cables CAT5e/6 costs more or less 10/m, RJ45 is 5/piece
AIO Printers already have scanners so no need to get another one.
You don’t need to pay for anti-virus software, AVG gives it for free and it’s pretty good.
Hi, may alam po ba kayo na supplier saan pwedeng mkabili ng computer parts? Like yung nagbbgay po ng dealer price for 20 or more pc sets. Thank you.
so it means kung magrerent pa ako ng mga 15k per month wala a akong kinita lugi pa ako?
wala akong naintindihan bam
LOL! so OP! IMBA!
haahahaha
I was talking this over with a friend. Should the monthly rent and monthly employee wage be considered in the initial investment?
.-= Every Peso Counts´s last blog ..Becoming Rich by Finding a Mentor =-.
Usually you need to pay for a deposit and a few months advance payment to your landlord before you sign a contract… so yes you need to consider this type of “rent” in your startup capital or initial investment… but the monthly rent is considered as an operational expense. For monthly employee wage it is an operational expense not a startup expense unless you want to curve one month salary for your employees in advance… so no matter what your first month’s income you still have cash reserves for salary.
For an internet cafe financial calculator, you can download the tool here Internet Cafe Financial Calculator