Internet Cafe as a Business in the Philippines

31 posts in this topic

Posted

Are Internet Cafes a good business to invest in the the Phil?

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Posted

Not any more, my last visit was only a few weeks ago, and most of those internet-shops disappeared during the last years.

In Cebu you have to bring now your own notebook with you, almost all restaurants, coffee-shops, hotels etc. are offering free WLAN but no computer.

Only few places still have an internet shop, usually together with a coffee shop, offering computer+internet like the coffeeshop inside the Robinson next to Fuente Osmena.

Internet connection is another problem, it is very slow.

Electronic items, like notebooks, digital camera, iPhones etc. became really cheap now in Philippines, totally different from the last years.

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Posted

In a few years when everyone is emailing or even video chatting from their phone, who's going to need internet cafes anyway (rhet). Even kiddies in gaming cafes are more likely to game from home on ever cheaper broadband or home gaming consoles/PCs. I see no future for internet cafes.

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Posted

Dead model.

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Posted

I never saw how they could be very profitable.

Relatively high setup cost for an ever diminishing return as competitors became cheaper and cheaper.

You'd also have to be upgrading to the latest pc on a fairly regular basis as well to compete with the new cafe that opens up down the road.

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Posted

Amazing how many Gaming cafes there are in Singapore though Tiz.

Place opposite my Condo must have 5 or 6, and there's a couple on Prinsep St round the corner

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Posted

I'd guess though they charge their customers a lot more than the Internet cafes in Philippines.

The average Singaporean user would be a lot wealthier than the average user in the Philippines.

I know in Thailand it's common to see them advertising around 20 baht per hour.

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Posted

Many of internet cafe here in KL are gambling joints or video games joints. They open till 4am in the morning. Only very few customers walked in to use their internet service. So if you want to make money from internet cafe, maye you can consider to operate like this :rolleyes:

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Posted

I see Thanks all

What would be a good business then?

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Posted (edited)

How about a dating agency? :D

Edited by ryderman3

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Posted

How about opening a bar? :w00t:

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Posted

There is thousands of guys that have opened bars.

Must be a good business. Thousands couldn't be wrong, could they?

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Posted

The problem is there are also 1000s of guys who closed their bars somewhere in the Philippines, no customers...

In Philippines I wonder what a single foreign individual really could do as a business.

Legally seen Philippines is not restrictive, get your resident visa and this includes your working permit, you can try more or less anything you like as a business... but what?

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Posted

Dating Agency seems good

Bar also sounds good

The Bars here do a very good business and I know filipinos love to drink

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Posted (edited)

The only one, who is earning money with such bar-business, dating agency is the landlord when he is coming to collect the rent...

Dating agencies are rather down in Philippines, as many girls are fairly good in English and know how to find overseas contacts by facebook and similar internet media.

My Filipina fosterdaughter in Cebu is dreaming of her own shop (owner, no rent to pay) which is for selling of some new and many used clothings and doing some laundry... just simple shop.

As a fact, many poor Filipino like to buy cheap used clothings from somewhere for little money, some shops selling used items, especially clothings, are doing well and could sell more than they can supply.

It's not so easy to make a business with poor people who really earn very little in Philippines.

Edited by yohan

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Posted

The benefit to operating a business or business branch out of the Philippines, is cheap, qualified labor. It is quite easy to find people that are looking for work in web development, graphic design, SEO, virtual assistants, call centers and the like. If you have enough capital, you can open an office and have locals working directly for you (and a partner, if required). If you're short on capital, you can work solo (out of your home or apartment), and seek out work from western companies...then, turn around and hire a local to do it for half the cost (or less) while profiting the difference.

It's really a no-brainer. You really don't have to have any technical skills, and anything that might be required can be learned from the web. The only difficult part would be doing what needs to be done with regard to running a business as a foreigner, legally, in the Philippines and/or possibly making those first few contacts, should you decide to run it alone. Just about everything can be outsourced. In fact, it is not uncommon to jump on craigslist and find people wanting to spend $1000-$2000+ USD on a website or $300 on a company logo design. You can easily find people on Fiverr offering logo design for $5 a pop. Most Philippine companies (that actually do good work) will do entire websites for $300 a pop.

If you're comfortable with it, you might even be able to work more technical contracts, such as programming or IT. Imagine running an office that provides IT work (for example) for western companies. Imagine having 10 clients/companies that each pay your company a recurring $1500+ USD/month, for 'your' services. Even after overhead, you're making a pretty nice, recurring income for doing pretty much nothing. I don't know what the going rates for IT contracts are these days, but that is only one of many possibilities.

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Posted

I don't really think it would be safe for a foreigner to open a business alone in the phillipines without the help of a local partner, as for internet cafe well like everyone said bad idea. Maybe a restaurant ? But again that would cost you too much as a foreigner since there might be a lot of legal things to pay for.

Why exactly do you want to start a business in the Phillipines ?

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Posted

Kicking around the idea of living there

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Posted

Then either have enough money before you go or have income streams from outside of PI to support you while you're there.

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Posted

Have you ever been there? :o

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Posted

Not yet just met some nice people there and was thinking

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Posted

...thinking dreaming.

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Posted

...thinking dreaming.

+1

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Posted

Not yet just met some nice people there and was thinking

"Met" on the Internet or "Met" in real life???

If you don't mind me asking, How old are you (Roughly... 20s, 30s, 40s, 50s???) & what's your profession?

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Posted (edited)

I don't really think it would be safe for a foreigner to open a business alone in the phillipines

Legally seen there are no problems at all, visa/working permit are given out easily to foreigners in Philippines to operate own businesses - but the problem is otherwise, either you are within secure shopping malls and guarded housing compounds and pay high rent, or if you want to pay less and prefer outside of such areas expect less wealthy customers showing up able to buy and to pay, if successful you become easily the target of criminals who might show up for protection money, further expect frequent brownout-blackout, bad water supply, slow internet, theft, burglary, robbery even kidnapping.

Yes, labor is cheap, but rent is not. In Philippines you will face other not really expected expenses, and be prepared for surprises. I saw very few foreigners this year in Cebu, also not a good business year for small restaurants and hotels I guess.

About business, barbed wire is always selling well, coffins might be a business too as too many people have a gun and fire live bullets everywhere. - Also selling the Bible and other various religious items might be lucrative.

Edited by yohan

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Posted

I have a sure fire way of going there and ending up with a small fortune.

I'll share the details later.

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Posted

Maybe opening a pizza place. Here in Bangkok the pizza is typically pretty bad, and they just opened Domino's here and they can charge a fortune for a pizza and get away with it (so far, anyway).

There isn't that much to pizza, and all but one of the ingredients is not expensive (cheese; there wouldn't be a lot of mozeralla coming out of the Phillipines).

Backpackers everywhere seem to live on pizza, and if you could make a decent one you might even get locals to eat it.

Just intern at a family pizza shop where you live (get a job) and off you go.

About the internet cafe idea, I had a friend here in Bangkok that started and then ran one. I was surprised it worked as a business because the per hour rates are so low, as commented here.

It didn't work that well or he wouldn't have sold it.

The only way to make the margin was to have owners put in long hours, and if you tried to work around that by hiring inexpensive labor he said they'd steal from you to add to their income.

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Posted

Pizzas in PI go for pennies & places like Shakys/Yellow Cab/Pizza Hut actually do decent ones, so I wouldn't go down route or any food outlet venture.

I do know of a Banana plantation & Rice paddy for sale if you have a Fillipino/a you can go into business with.

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Posted

coolio how much is that plantation man

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Posted (edited)

coolio how much is that plantation man

Repeat after me:

1- I will not make any more stupid one liner answers like this one.

2- Every post I make has to be useful and intelligent.

3- I will have a good sense of humor and obey the forum rules.

Not yet just met some nice people there and was thinking

Take this as a lesson in life, not everyone who acts "nice" actually cares about you or wants your best interest and just because you met a few people doesn't mean that everyone will treat you the same. You should be old enough to make better decissions and if you're genuienly thinking about opening a bussines in a country you don't know just because you feel like it, then you really are a moron.

Another lesson, not everyone who insults you actually means to hurt you the truth is bitter but admiting it helps you grow.

Edited by Giberish

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