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Setting Up A Cafe -advise Needed - Business - Nairaland

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Setting Up A Cafe -advise Needed by AyodejiCharles(m): 3:40pm On Aug 02, 2013
Thinking of going into the business. How profitable is it? I am actually considering using a solar power to operate it as against a generator. Advise needed please.
Re: Setting Up A Cafe -advise Needed by nupera: 5:21pm On Aug 02, 2013
Do people still patronize cafes?

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Re: Setting Up A Cafe -advise Needed by Lanjonath(m): 5:32pm On Aug 02, 2013
Going solar will be effective, efficient and stress free. But first I need to know the load that will be powered. Kindly mail me: Idowuj@ijaqtech.com
Re: Setting Up A Cafe -advise Needed by Nobody: 12:05am On Aug 03, 2013
bro, don't even try it or u will regret it, but if u stubbornly insist, i have thin clients, routers, monitors at giveaway prices
i have been in cafe biz for 5 years, for 3yrs, we make 15k daily. 3 months ago, before making up my mind about shutting it down, we were making 800 naira daily and burning 1500naira fuel daily also paying salaries. and internet subscriptions.

all thanks to having multiple streams.
Re: Setting Up A Cafe -advise Needed by feflo: 9:13pm On Aug 03, 2013
@Ayodejicharles, i believe cybercafe is still one of the best small business in Nigeria today, i have been into cafe business since 2005, i have setup same for people and they are all still very profitable. The only problem is that Nigerians lack innovation and the will to succeed. What the last poster said are challenges that have solution and from his post i could identify two major challenges:
1. He employed the use of THINCLIENTS: This device is a cafe killer anyday anytime, people that goes to cafe wants to download and sometimes upload files or pictures from their flash drives, these are almost impossible with thinclients, I have used it before and still have three that i can give to anyone that wants it free. I used it for five of my systems about a year ago and noticed that after sometime, my customers avoid those systems like plague.

2. The other challenge he had was power supply and having to spend a whooping N1500 daily on fuel. That could kill any small business in three months. It also has solution. Presently i use a 2kva made in Nigeria inverter and it works like hell. I hardly buy fuel when PHCN is a little stable. Sometimes i spend only N600 on fuel per week. I buy fuel at times not because i need it but because i felt i should just buy and keep. I have plans of installing solar panel in order to do away with PHCN completely.
Cybercafe is a business that incoporates so many other small businesses like:
1. Business Center - Typesetting, photocopy, binding, Lamination et all - This alone is a complete business on its own
2. Digital Passport - Go to Oshodi and Alaba - People rent shop just because of this and they still survive
3. Plastic ID card printing.
4. Color printing
5. Research work, project research and Assignments.

I started a new cafe - where i am presently, in April 2013 and as at today, we are on average of N4,000 daily and i hope to make an average of between N8k and N10k before the end of this year. I have just five functional systems and space for laptop. I will also be setting up cafe for a close friend around mafoluku in about 2wks.

On a final note, if we have a business that is not working or dying, i think the best thing is to look inwards as to the cause and possible solution to the problem. It's not always the best when we discourage others.

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Re: Setting Up A Cafe -advise Needed by AyodejiCharles(m): 11:12pm On Aug 03, 2013
..thanks @ feflo I actually think that the issue of power is what drove many out of the business!
Another factor is the ease of access to the internet by network providers.
I think we should be innovative in trying to provide value added services to people who want to have access to the internet just as you said.
Talking about Solar, I actually have the intention of adopting solar power As my source of power and ignoring the issue of generator.
Also, I am interested in adopting a wireless hotspot for the internet cafe thereby doing away with purchasing computer systems , those annoyingly cumbersome networked wires and UPS .I am also thinking of investing in publicity to create massive awareness as I know that most businesses shy away from spending on their marketing efforts.
Anyways if I may ask, how much do you think it will cost me to set up the solar power equipment for a large scale wireless hotspot internet cafe that will not require the use of desktop computers that consumes a lot of power !
Re: Setting Up A Cafe -advise Needed by AyodejiCharles(m): 11:53pm On Aug 03, 2013
He employed the use of THINCLIENTS:

Please what is the function of the thinclients and how does it affect business?
Re: Setting Up A Cafe -advise Needed by Milikiman: 9:56am On Aug 04, 2013
i was in it 2010 daily makin of 5-6k.wen was da last time u went to cafe?fones laptop av taken ova.if u start w
t 5-10 system &u re makin money b4u know it sombody somwia wil invest heavily in it.meanin u share ya customer.anoda tin subsciption.but if u insist i can gv u px of my design cuz its available for sale
Re: Setting Up A Cafe -advise Needed by feflo: 3:05pm On Aug 04, 2013
@ayodejicharles, solar is not what anybody can guess until a thorough assessment of your load is carried and the number of hours those equipments will be used per day. The first thing for you to do is to get all your equipments ready, then a thorough assessment is done before anyone can tell you exactly what it will cost you to go solar. Bear this in mind, no matter the amount you spend going solar, you will discover ultimately that its worth it.
Re: Setting Up A Cafe -advise Needed by DEBOLABI: 10:36pm On Aug 04, 2013
the wireless hotspot.. i can help you out with it in a simple and cheap way. in case you need me 08099380621
Re: Setting Up A Cafe -advise Needed by Nobody: 3:59pm On Aug 05, 2013
the truth is most people can access mails on their mobile devices and thats what killed the biz.
4k daily is chicken change and it's actually exaggerated by the poster above.
Mine was situated along a busy major road with 1000s of aware customers

4 X 30 days =120k (thats the highest you make right? note that you arent making close to that on weekends.)

Monthly expenditure i can think of
rents= 10k
Salary=15k for 1 staff
MD expenses=20k (recharge cards, vehicle fueling or transport,etc)
internet subscription =25k (approx.)
Nepa=4k (prepaid monthly)
Gen=500naira/day X 30 days =15k Minimum assumption since you are looking at solar
Thats 90K already, other un-calculated misc include waste, gen servicing, LGA due, unreported cash by staff,




I have close to 7 friends i introduced to cafe biz when it was still doing great.
I am the 6th to close mine, the last guy still running sells art works and make greeting cards alongside
Cafe business is dead beat.


about use of thin client, I invested in thin client only recently and actually not the cause for the decline.
OP, the best approach is to meet with running cyber cafes in your area and ask questions.
do your research pls.


If you are hell bent on giving it a short, please consider a good banner and please pay the LASAA fee,
i ran for first year without a standard banner, just makeovers, flyers and was recording 5-6k monthly.
The very day i paid LASAA and erected a banner, it climbed to 10-15k, and it stayed there for 2 years+.

Here is a quote from http://nationalmirroronline.net/new/is-cybercafe-still-profitable/

For instance, when Business Courage requested from some people about when last they visited a cybercafé, one of the respondents, Paul Essien, a graphic artist said he does most of his internet browsing anywhere he goes on his phone.

In the same vein, Clement Agugoesi, a computer engineer recalled that unlike in 2000 and 2001 when he used to go to cyber cafe, pay money to check his yahoo email, with high enthusiasm, now, he admits that, like many others, he browse the internet on mobile phones. “I also use laptop. I have not gone to a cyber cafe for over a year now,” he admitted.

Lamenting his loss in recent time, Igohama Ebosetale,[b] a cafe operator said that cyber cafe owners like him are very disappointed at the way things are turning out. “I am also running a cyber cafe. Five years ago, in my cafe, everywhere is always fi lled up but now, as you can see, it is always empty. [/b]In fact, the way I am looking at things, I am going to close my cafe as it is no longer lucrative. It is not only me; many other cafe owners are also doing the same,” he told the magazine last week.

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Re: Setting Up A Cafe -advise Needed by feflo: 8:59pm On Aug 05, 2013
@webdezzi, i hate exchanging posts in form of argument but i will do this for the last time. Ask yourself why you think i will exaggerate figures when i'm not even selling anything or advertising anything, i even offered to give my thin clients free of charge to anyone interested. The cafe has a physical address and whatever claims i make here could be verified.
Its 8:37PM here and i have made a sale of N4, 500. I have been trying to attach two pictures taken now as i type of customers using all my systems but could not.
What i am saying is not to malign anyone but to encourage us that we can succeed where others are failing if we put our mind to it and with God on our side, nothing shall be impossible for us.
Re: Setting Up A Cafe -advise Needed by Nobody: 11:39am On Aug 07, 2013
well, I believe you bro, Location may be another factor.
contact me if you are interested in my Cafe "AS IS", 08029037890
it's along a very stategic busy road.
Re: Setting Up A Cafe -advise Needed by 2rutalk1: 12:12pm On Aug 07, 2013
@OP, Please look for another business and invest your money. You can consider something like Car Wash business. Cyber cafe business comes with frustration. Infact don't go there bro. I spent all my life savings trying to make sure I did not close shop, but at last my entire savings went down alongside the business. In terms of innovation, I did everything possible including diversification. Power and poor internet services will be your undoing. Pls, once again, don't go there. It was a good business before and not now. I am giving you a good advice drawn from years of practical experience. You may think your workers are eating your money but that's not true. Expenses in cafe business far exceed the income.
Re: Setting Up A Cafe -advise Needed by Nobody: 5:01pm On Aug 07, 2013
i used to fire my staffs until i took time to sit there 24/7 and loo, see as customer dey come in 1s and 0s like binary
grin
the most hilarious thing is, 3 hours with zero customer, a guy strolls in asking you to help him setup yahoo mail on his phone.

I will recommend bulk messaging, though over saturated, I record better sales and i regret not channeling my energy into it early enough. If OP is interested, i can guide him.

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Re: Setting Up A Cafe -advise Needed by kunlesehan(m): 9:45pm On Aug 07, 2013
@feflo, thanks for the info bro. how do I get the 2kva locally made inverter and how much is it?
Re: Setting Up A Cafe -advise Needed by Milikiman: 1:11am On Aug 08, 2013
to da posters who thinks thin employee is da issue.i employed a computer engr.it was one time a gud biz.questionare could b of help how often do pips around u goes to cafe?ya strategy are gud but fones laptops tablets don takeova.ma cafe is bside mr biggs at abule egba.pls do oda bz.take advantage of wat pips nid in ya atea
Re: Setting Up A Cafe -advise Needed by AyodejiCharles(m): 9:23am On Aug 08, 2013
Milikiman: to da posters who thinks thin employee is da issue.i employed a computer engr.it was one time a gud biz.questionare could b of help how often do pips around u goes to cafe?ya strategy are gud but fones laptops tablets don takeova.ma cafe is bside mr biggs at abule egba.pls do oda bz.take advantage of wat pips nid in ya atea

Thanks, I like the idea of a Questionaire research method. I think I will try it out since I stay around a school environment.
Re: Setting Up A Cafe -advise Needed by Terry1(m): 10:32am On Aug 08, 2013
Earn N200,000 monthly through an online legitimate business by following just three steps!
Go to http://clickfinancialfreedom..com/
See you at the top

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