Internet Cafe Business Plan
You’ve come to the right place to create your Internet Cafe business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Internet Cafe businesses.
Below is a template to help you create each section of your Internet Cafe business plan.
Executive Summary
Business Overview
Internet Coffee Cafe is a startup internet cafe company located in Tulsa, Oklahoma. The company is founded by Kurt Stands, who has experience managing internet cafes. Now, with the expertise of knowledge and business acumen, he has determined he can confidently start and effectively grow a successful internet cafe company. Kurt believes his experience of strategic growth, marketing skills, financial capabilities, and wide and deep knowledge of internet installation and maintenance practices will provide everything needed for long-term growth and profitability.
Internet Coffee Cafe will provide a comprehensive array of products and services for a wide variety of clients. Internet Coffee Cafe will be the one-stop internet shop, providing services and products for each customer, while supporting the strategic goals of the company. Internet Coffee Cafe will be the ultimate choice in Tulsa for customers, as the Internet Coffee Cafe ensures that not only will high-speed internet be on the menu, but a variety of beverages and light meals will be offered, as well.
Product Offering
The following are the products and services that the Internet Coffee Cafe will provide:
- High-speed reliable internet services
- Comfortable environment for customers
- Social video games for groups
- High top pub-style tables and comfortable stools
- Casual and fully-cushioned sofa, chairs and low tables
- Multiple varieties of cabled internet choices.
- Electrical outlets at each work area
- Resource library with current periodicals
- High-speed reliable internet services
- Discounts for return customers
- Online reservation system to secure an internet line
- “Meet & Greet” customer parties
- Computer and iPad accessories, earbuds, cases and internet-related products for sale
Customer Focus
Internet Coffee Cafe will target all individuals in Tulsa, Oklahoma. They will target individuals who need internet service, such as students, apartment renters, and those in outlying areas of Tulsa, such as on ranches and farms. They will target online social game circles of two or more people. They will target schools and new businesses. They will target those who enjoy a cafe atmosphere while working. They will target individuals seeking a light meal or beverage in a midtown location.
Management Team
The Internet Coffee Cafe will be owned and operated by Kurt Stands. He recruited his former associate, Steve Thoresen, to take the role of manager of the internet cafe. He also recruited his former executive assistant, Carla Manson, to be the back-office operations assistant.
Kurt Stands is a graduate of the University of Oklahoma with a bachelor’s degree in marketing. He has 5 years of experience as a staff member in his first internet cafe position and 5 years of experience in a different internet cafe as the cafe manager. He’s earned a reputation among his customers as being reliable, helpful, and always willing to go the extra mile. Because of this, several customers have already committed to follow him to the new Internet Coffee Cafe.
Steve Thoresen will assume the role of manager of the Internet Coffee Cafe, where he will handle customer requests, assist with internet connections and oversee the food and beverage area of service. Providing an outstanding customer experience will be his main task. Steve has over 6 years of experience as an internet cafe manager and customers frequently compliment the service provided. Steve’s friendly personality and commitment to excellence will serve the Internet Coffee Cafe very well.
Carla Manson, a former work associate with Kurt Stands, will take on the position of back-office operations assistant. This will include overseeing the online social game venues for groups of two or more users, inventory of food, beverage ingredients, kitchen tools and equipment, and all supplies related to the cafe. Her role will also include operation of the internet service, computer systems, and related software and hardware.
Success Factors
Internet Coffee Cafe will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team of Internet Coffee Cafe
- Online social games for groups
- High-speed reliable internet services
- Comfortable environment for customers
- Cafe serving light meals, beverages and snacks
- Multiple varieties of cabled internet choices.
- Electrical outlets at each work area
- Discounts for return customers
- Online reservation system
- “Meet & Greet” customer parties
- Internet Coffee Cafe offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Download the Internet Cafe business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Internet Coffee Cafe is seeking $200,000 in debt financing to launch its internet cafe. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for Internet Coffee Cafe.
Company Overview
Who is Internet Coffee Cafe?
Internet Coffee Cafe is a newly established, full-service internet cafe in Tulsa, Oklahoma. Internet Coffee Cafe will be the most reliable, cost-effective, and enjoyable choice for any individual who requires internet service in the city and the surrounding communities. Internet Coffee Cafe will provide a comprehensive menu of internet access, in addition to a comfortable environment and an online social game venue. In addition, a cafe that serves light meals, snacks and beverages will be on site. Their full-service approach includes a relaxing and enjoyable environment offering internet service.
Kurt Stands will oversee Steve Thoresen and Carla Manson in their managerial capacity roles. In addition, he will hire the wait staff for the cafe and other personnel who will assist within the cafe. The team of professionals are highly qualified and experienced in operating internet cafes and the environments that make the experiences highly pleasurable. Internet Coffee Cafe removes all headaches and issues of finding and using the internet, and the cafe will ensure all customers are taken care of expeditiously while delivering the best customer service.
Internet Coffee Cafe History
Internet Coffee Cafe is owned and operated by Kurt Stands, who has an extensive degree of experience in managing internet cafes. He holds a marketing degree from the University of Oklahoma and he has successfully managed internet cafes with online social games and food service in various locales. Kurt’s tenure as a manager has given him the skills and technological knowledge to venture out on his own, starting his own company. He has gained the trust and commitment of several former customers, who are now eagerly awaiting the opening of the Internet Coffee Cafe.
Since incorporation, Internet Coffee Cafe has achieved the following milestones:
- Registered Internet Coffee Cafe, LLC to transact business in the state of Oklahoma.
- Has a contract in place for a 10,000 square foot office at one of the midtown buildings
- Reached out to numerous contacts to include Internet Coffee Cafe as their “home base”.
- Began recruiting a staff of cafe team members to work at Internet Coffee Cafe
Internet Coffee Cafe Services
The following will be the services Internet Coffee Cafe will provide:
- High-speed reliable internet services
- Comfortable environment for customers
- Social online game parties for two or more
- High top pub-style tables and comfortable stools
- Casual and fully-cushioned sofa, chairs and low tables
- Multiple varieties of cabled internet choices.
- Electrical outlets at each work area
- Resource library with current periodicals
- High-speed reliable internet services
- Discounts for return customers
- Online reservation system to secure an internet line
- “Meet & Greet” customer parties
- Computer and iPad accessories, earbuds, cases and internet-related products for sale
Industry Analysis
The internet cafe industry is expected to grow over the next five years to over $22 billion.
The growth will be driven by online gamers who enjoy the social aspect of gaming together and the competition the games bring. The growth will additionally be driven by the number of consumers who enjoy working out of their own home environment while remote from the office. The growth will also be driven by technology and innovation, as new processes will result and new applications of the internet will be discovered. Growth will be driven by consumers who work in the central portion of the city and will appreciate a midtown cafe that caters to luncheon guests, serving light meals that allow the consumer to briefly take a break and return to the workplace.
Costs will likely be reduced as additional online games and educational uses for high-end computers and high speed internet are innovated using technology and software. With the growing audience and differentiation of the products offered, costs are gradually reduced.
Download the Internet Cafe business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Internet Coffee Cafe will target all individuals in Tulsa, Oklahoma. They will target individuals who need internet service, such as students, apartment renters, and those in outlying areas of Tulsa, such as on ranches and farms. They will target online social game circles of two or more people. They will target schools and new businesses. They will target those who enjoy a cafe atmosphere while working. They will target individuals seeking a light meal or beverage in a midtown location.
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Internet Coffee Cafe will primarily target the following customer profiles:
- Individuals who do not have internet services in their own residence
- Online game players who play within social circles
- Schools and private learning centers
- Individuals seeking a warm cafe environment
- Individuals seeking a light meal in the midtown area
Competitive Analysis
Direct and Indirect Competitors
Internet Coffee Cafe will face competition from other companies with similar business profiles. A description of each competitor company is below.
Goofy’s Gamer Cafe
Goofy’s Gamer Cafe hosts online social games for interactive play. The company is owned and operated by Chad Edwards, a former manager of an internet cafe for seven years. He offered premium customer experience while learning to handle operations, back-office inventory, customer relationships and other strategic aspects of the industry. The company is housed in Tulsa, Oklahoma and caters to those who enjoy competitive online ranching and cowboy video games.
Goofy’s Gamer Cafe caters to a young demographic, ages 15 to 30, and offers beverages and snacks as an additional avenue to gain revenue. The staff consists of a manager, Chad Edwards, three staff hostesses and three beverage and snack servers. The company logo is, “Satisfaction Equals Sales,” which indicates that by keeping their customers satisfied, the customers will purchase additional game play and products.
Tulsa Internet Business Cafe
The Tulsa Internet Business Cafe, located within a few blocks of the Tulsa courthouse and judicial system departments, caters to professionals and business users, such as attorneys and lawmakers. The Tulsa Internet Business Cafe has developed a very high-speed internet service that outshines any government-provided internet connection; therefore, the Tulsa Internet Business Cafe is often packed with professionals who are stretched for time. The Tulsa Internet Business Cafe is owned by Jack Adams who is the previous owner of an internet cafe in a suburb of Tulsa. He sold that internet cafe and brought his concept to the inner core of business areas in Tulsa, where he has provided customers with excellent internet connections and service for over five years. In addition, his business offers document printing, scanning, and small conference rooms.
Mid-City Internet Cafe
The Mid-City Internet Cafe was started by Tracy Harrington in 2019 to meet the needs of small businesses. She innovated the combination of a traditional internet cafe with co-working spaces, which allows patrons to work together as needed, or individually, if preferred. Offering comfortable furnishings and a quiet and serene environment, the Mid-City Internet Cafe includes high-speed internet and other professional amenities in one distinctive workspace. Included are printers, coffee makers, food vending machines in a kitchenette, and desk items such as pens, pencils, and staplers.
The Mid-City Internet Cafe is most popular with freelance professionals who are in downtown Tulsa and need a workspace for a morning or afternoon. Entrepreneurs and remote workers often visit the Mid-City Internet Cafe, as well, due to the quiet and serene atmosphere.
Download the Internet Cafe business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Internet Coffee Cafe will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly-qualified team at the Internet Coffee Cafe
- Online social games for groups
- High-speed reliable internet services
- Comfortable environment for customers
- Cafe serving light meals, beverages and snacks
- Multiple varieties of cabled internet choices.
- Electrical outlets at each work area
- Discounts for return customers
- Online reservation system
- “Meet & Greet” customer parties
- Internet Coffee Cafe offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Marketing Plan
Brand & Value Proposition
Internet Coffee Cafe will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees that is able to provide a comprehensive set of services and products designed to fit with the internet usage needs of each customer.
- Online social games for groups
- High-speed reliable internet services
- Comfortable environment for customers
- Cafe serving light meals, beverages and snacks
- “Meet & Greet” customer parties
- Unbeatable pricing to its clients; they will offer the lowest pricing in the city.
Promotions Strategy
The promotions strategy for Internet Coffee Cafe is as follows:
Word of Mouth/Referrals
The staff of the Internet Coffee Cafe has built up an extensive list of contacts over the years by providing exceptional service and expertise to their clients. The contacts and clients will follow them to the new company and help spread the word of Internet Coffee Cafe.
Professional Associations and Networking
Kurt Stands and Steve Thoreson will join the professional associations within Tulsa that will help drive business to the company. In addition, they will offer to take on official roles within those associations to further the name of the Internet Coffee Cafe. They will both network within the national trade groups and during trade shows.
Print Advertising
Print advertising will be focused on individuals who may not currently have high-speed internet in their homes or workplaces. Direct mail pieces will announce the opening of the company and offer discounts to “try out” the Internet Coffee Cafe.
Website/SEO Marketing
The Internet Coffee Cafe will fully utilize their website. The website will be well organized, informative, and list all the services that are offered. In addition, online reservations can be made for a single workspace or an online game group of two or more individuals. The website will also list their contact information and meals and snacks for sale. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Internet cafe” or “Online gamers near me,” Internet Coffee Cafe will be listed at the top of the search results.
Pricing
The pricing of Internet Coffee Cafe will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
Operations Plan
The following will be the operations plan for Internet Coffee Cafe.
Operation Functions:
- Kurt Stands will be the owner and president of the company. He will oversee all staff and manage client relations. Kurt has spent the past year recruiting the following staff:
- Steve Thoreson will become the business manager who will conduct the office administration, client files, and accounts payable.
- Carla Manson will assume the role of back office operations assistant and oversee inventory, product control, internet connectivity and other areas of note.
Download the Internet Cafe business plan template (including a customizable financial model) to your computer here <–
Milestones:
Internet Coffee Cafe will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease office space
- 5/15/202X – Finalize personnel and staff employment contracts for the Internet Coffee Cafe
- 6/1/202X – Finalize contracts for Internet Coffee Cafe vendors
- 6/15/202X – Begin networking at industry events
- 6/22/202X – Begin moving into Internet Coffee Cafe
- 7/1/202X – Internet Coffee Cafe opens its doors for business
Management Team
Kurt Stands is a graduate of the University of Oklahoma with a bachelor’s degree in marketing. He has 5 years of experience as a staff member in his first internet cafe position and 5 years of experience in a different internet cafe as the cafe manager. He’s earned a reputation among his customers as being reliable, helpful, and always willing to go the extra mile. Because of this, several customers have already committed to follow him to the new Internet Coffee Cafe.
Steve Thoresen will assume the role of manager of the Internet Coffee Cafe, where he will handle customer requests, assist with internet connections and oversee the food and beverage area of service. Providing an outstanding customer experience will be his main task. Steve has over 6 years of experience as an internet cafe manager and customers frequently compliment the service provided. Steve’s friendly personality and commitment to excellence will serve the Internet Coffee Cafe very well.
Carla Manson, a former work associate with Kurt Stands, will take on the position of back office operations assistant. This will include overseeing the online social game venues for groups of two or more users, inventory of food, beverage ingredients, kitchen tools and equipment, and all supplies related to the cafe. Her role will also include operation of the internet service, computer systems, and related software and hardware.
Financial Plan
Key Revenue & Costs
The revenue drivers for Internet Coffee Cafe are the fees they will charge to customers for their services. .
The cost drivers will be the overhead costs required in order to staff Internet Coffee Cafe. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
Internet Coffee Cafe is seeking $200,000 in debt financing to launch its internet cafe. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Internet Cafe business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Customers Per Month: 350
- Average Revenue per Month: $16,500
- Office Lease per Year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Internet Cafe Business Plan FAQs
What Is an Internet Cafe Business Plan?
An internet cafe business plan is a plan to start and/or grow your internet cafe business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Internet Cafe business plan using our Internet Cafe Business Plan Template here.
What are the Main Types of Internet Cafe Businesses?
There are a number of different kinds of internet cafe businesses, some examples include: Internet kiosks, Cyber cafe, Gaming cafe, and Commercial cafe.
How Do You Get Funding for Your Internet Cafe Business Plan?
Internet Cafe businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start an Internet Cafe Business?
Starting an internet cafe business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop An Internet Cafe Business Plan - The first step in starting a business is to create a detailed internet cafe business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your internet cafe business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your internet cafe business is in compliance with local laws.
3. Register Your Internet Cafe Business - Once you have chosen a legal structure, the next step is to register your internet cafe business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your internet cafe business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Internet Cafe Equipment & Supplies - In order to start your internet cafe business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your internet cafe business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.