Thursday, January 17, 2013

Franchise VS Self Managed Cybercafe which one can give you more income? Part 3 - Comparison

The following calculation are estimates, as different location has different market response.
Also, it is based on the following conditions and assumptions:
  • Big sized cybercafe are harder to fill up to 100 % occupancy a.k.a full house, and the cumulative hours of full house is shorter.
  • Medium sized cybercafe are easier to reach full house, and the cumulative hours of full house is longer.
  • Small sized cybercafe doesn't need a supervisor, whereas a big one need a supervisor to make sure every computer, game, internet works.
  • Franchise will send a professional or experienced technical to assist, as they pool all the technicians from different area, and share their experience, that way all technician will have cumulative knowledge and experience.
  • Franchise has strategic business partners, assuming game publisher is one of them.
  • Franchise fees are the same regardless more or less.
  • No diskless, no game server, all using hard disk.
  • A budget for hardware repair and upgrade is prepared to refresh the old PCs or for expansion, business is all about moving forward.
  • The business area has no other competitor, only you.
The number highlighted in red indicates least favorable value.

  • After the ROI, the business owner has extra net income every month.
  • Self managed cybercafe's net income after ROI is relatively lower than franchise. 
  • To invest or expand further,the budget for hardware repair can be used for expansion.
In the end, setting up a cybercafe together with a group of cybercafe is better as they can provide additional technical support and share the latest technology to improve their service. As a cybercafe operator, everyone will go through hard times, it's part of business life cycle. The self managed cybercafe are actually the initial stage of cybercafe business, once the business is ready to expand, it takes on the franchise modal, or forms a group of cybercafe.

On the next post, how Michaelsoft DDS can make everyone achieve lower ROI.

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