Internet Cafe Startup Costs

If you've done your research enough to believe and internet cafe will work in your town, the next obvious question is, "so how much money is this going to take?" The answer to that depends on a lot of things, but here's a walkthrough of how to come to your number.

The location is by far the most important and more expensive part of your startup. You have to have a good location, or you'll need some seriously powerful word of mouth startup juju. Trust the location over the juju.



You'll be getting a commercial lease, which tend to require at least six months committment, along with a deposit. Even if you get a cheap, cheap, cheap location for just $1,000 a month, you'll probably need $3,000 just to get the lease signed. And because businesses start slow, and you need AT LEAST three months operating expenses saved while you build up your business even to break even levels, you'll need $6,000 just for the lease to get started.

Budget another $500 for a lawyer -- you'll want advice with business licenses, getting a name, reviewing the lease, employee hiring policies and other advice along the way. $500 will get you barely 5 hours with a good lawyer, so be prepared when you call them with questions or need to meet about something.

Next is advertising and licenses. Business licenses and basic things like a checking account and a bunch of business cards will run you about $300. You'll need a website and a phone directory listing, and you'll need to run an ad 10 times in a row in the best local publication that's relevant to your prospective clientele (ie, what do they read). The website and phone directory listing will be $500 together. The advertising in the print publication will be about $1000, though you might get it for a little less (and if you do, negotiate for a larger space -- ideally you want at least a quarter page). So that's another $1800 for advertising and licenses.

We're currently at $8300.

You will need cafe management software ($700), a phone line ($100 for total setup), a GREAT connection ($100 a month or more). Cost: $1000.

You will also need a lot of outlets. If your space does not have enough plugs for ten people to sit down with their computers plugged in, you'll need to get an electrician in there to make it happen. Added cost: $1000.

Adding a coffee bar could add as much as $20,000 to your startup (and $5000 at a minimum, all in), and it may mean you'll need a health inspection and kitchen renovations. You can, potentially, get away with a few good vending machines, and possibly delivered baked goods and some coffee dispensers brewed off location. You will need the proper licenses to serve food. Add $2000 even for one vending machine and a counter for serve delivered coffee. Add $5000 for a modest setup.

You will need to make the place look nice, or cool, depending on your clientele. That means music (add $500), good lighting (add $500), and some paint (add $300), and then some more money for all the little incendentals ($200). And, of course, $1500 for the tables and chairs and benches people are going to sit on. If you can find a few old couches, people love them. I'm not even going to include cool decorating items -- go to yard sales and/or hand the decorating over to your decorator friend in exchange for a blank canvas and a place to put her business cards. So total decorating costs: $3000.

We're now at $18,300.

Not all internet cafes have computers avaiable for use, but it will help you draw customers. So get at least one mac and one pc. Also get a printer, and a photocopier and a scanner, too. Even the basics will help keep your customers coming back. The two computers will be about $2000. The printer, photocopier and scanner can be kept to $1000 all together.

So the final, median cost for an internet cafe startup: $21,300.