GuitarMan wrote:
> Well, I just got news that I will be getting laid-off from my current job
> sometime in Feb. or March and I was contemplating going into business for
> myself and wanted to get the general publics thoughts. Here's my idea so
> far:
>
> A Cyber Wi-Fi Cafe, 1 room with a coffee bar (about 8 to 10 stools) and
> tables on the main floor with access to wireless internet either the
> customer must buy something (coffee, sandwiches) or they can have an hour of
> access for $5. In another separate room, I would like to setup a LAN gaming
> room with either 16 or 32 seats setup on octagon designed tables with
> partitions so no one can see each others monitors which would also be $5 per
> hour for LAN play. I was thinking 3 servers with the top 3 LAN games and the
> user can choose which LAN game they would like to get in on. Currently we
> have nothing like this in our area at all and I thought it would be a great
> idea. It's in a good business location and nearby schools and other
> businesses are in the area where people travel to.
> Any thoughts on this? Ideas? Suggestions?
> Thanks...
>
>
You don't say what your current/past jobs are/were. If it was managing
a restauarant business, you might have a shot 'cause you know how.
If not, you might be very surprised when you spend more time/money
keeping the health department happy than you do on WI-FI.
The first thing you need is experience. If you don't have it, you're
toast. Get a part time job at that Starbucks 20 miles away and learn
the ropes.
While you're learning the ropes, get a book on restaurant management and
another on writing a business plan. Go visit the SBA to see what help
they can give you.
Write your business plan and take it to a bank and ask for a loan.
You WON'T get the loan. Ask them why. Revise your plan and try again.
A few times thru this loop and you'll figure out that they won't give
you a loan because they think you're gonna fail. There's nothing that
you could write in your plan that would make them take the risk. Take
that input VERY seriously. Your first thought will be, "screw them,
I'll borrow on my pension and cash in the kid's college fund and my
parents can help and..."
BAD IDEA!!
Do not stick your finger in the air and say, "I can do this."
DO THE MATH.
Discount cash flow analysis is your friend and a real eye-opener.
The business plan will show you how many hours of Wi-Fi time
you're gonna have to sell to pay off the restaruant construction/equipment
and net you a cash flow equivalent to your current salary.
Hint:
How many employees are you gonna have to hire to keep the coffee flowing
and the dishes washed and the books kept and the bathroom clean and, and
oh, yes there's also the computer stuff? The first time you have to
pee, you'll appreciate the value of employees. Doesn't take very long
for a bunch of kids to make off with your hardware.
If your business plan is good, you'll get a loan. If not, you don't
want to be in that business.
Hint2:
If you're even moderately successful, how long do you think it will be
before there _IS_ a Starbucks down the street? How long will you last
when that happens?
Assuming you know all about Wi-Fi, and that's a big assumption, think
about a smaller start. Like find local business/cafes/arcades/food
court in the local mall that could benefit from
having Wi-Fi access and set it up for them for a cut of the profit.
That will limit your financial exposure and give you lots more locations
and that all important experience. You'll have much greater opportunity
to expand your business without hiring ANY employees or buying any real
estate.
Stay the hell out of the restaurant business unless you REALLY want to
be IN the restaurant business.
mike
--
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