Internet/Gaming Cafe Startup

[skybolt_1]

OK, I would like to get the opinions of my fellow Techimo members on my latest mad plan to achieve great personal wealth....

I have been thinking about starting up an Internet/Gaming cafe when I graduate college with my B.S. in IT. I have come up with a bunch of small business ideas, that range from the boring (computer shop) to the slightly psychotic (paintball range) but this one seems to fit nicely in the middle. I love computers, LANS, gaming and game server management, so I think that I could at least be interested in what I would do for work. Plus, the area in which I live (Lowell, MA) is devout of such establishments. I think the closest one is in Cambridge, MA.

What are people's feelings on these cafes? Would you pay, say, $5 to $7 bucks to play for an hour on a high-end gaming machine on a sinfully fast DSL connection or with 40 other people on the local network? Or do you think its a waste of money/time? (I would accomedate for people to bring their own computers if they wanted, say if I were to host a large-scale party.)

Assuming that you think the concept is solid, where would YOU locate such an establishment? I'm torn between: near or in a mall, or near a college.

Common sense tells me that I should avoid a college because theres not a college in the world that doesn't have a LAN built in already, and if it's in place, you can do a LAN party every night - I know this from experience!!!

Common sense also tells me that the best bet would be to hit the age group that is into this kind of thing, yet doesnt have the $$$ to shill out for a high-end gaming system. This would probably be between ages 14-18ish. That's one reason I'd want to put it near a mall or some large shopping area that has tons of kids around...

I would really like to hear peoples opinions and ideas for this - ESPECIALLY if you have ever done anything like this! Thanks a lot!

[Chuckiechan]

Use a bowling alley as a model. They sponsor teams and get people in there 24 hours a day.

You need to offer Food, Beer, entertainment. You need to attract women to keep the guys.

As far as charging goes, Kinko's lets you use a special credit card or your ATM card for charges on their computers. That might work - nice and simple.

I would try to partner up with a bowling alley first. Since they are good at promotion and reaching into the community, especially the schools. They like whatever brings people into their building.

$5 is high. Out here they charge $1 to $2 and throw in a Coke as well. Its a difficult business to sustain and make profit because the overheads are high and unless all seats are full, you lose.

I think very few kids will pay $5-7 given that many kids already have DSL/Cable connections at home.

to the slightly psychotic (paintball range)

Not really psychotic at all... The local ski resort here (one of 'em) has turned the place into paintball in the summer. I think a partnership like that is a great idea! Why limit yourself to one business venture?

[skybolt_1]

Chuckiechan - Good idea about the bowling alley... we do have a few of them around here. I think I'll look into that. One of the things that I was going to do was also serve coffee-soda-snacks, so your right on the money in getting people in with food.

shahani - I hear what you are saying. I based the $5 dollars per hour rate on what I read at another cybercafe's webpage. www.adrenzone.com They seem to be getting away with it because they've just opened another location in NJ.

surreal - hahahah thats awesome, I've heard about resorts doing that. The only reason I put it under the slighty psychotic catagory is that up here paintball is catching on a little slower than us enthusiests would like... many people still think we are all survivalests, nuts, ect... I love the game personally.

Does anyone else have any other ideas for this?

[korgul]

Originally posted by surreal

The local ski resort here (one of 'em) has turned the place into paintball in the summer.

Must be Roundtop. There paint ball field is Ok but expensive because you have to buy their paint witch is over priced. IMO

I thought about the same thing skybolt. I figured some numbers and I would need around 100K just to get it started. That would include the machines, programs, rent/lease, food and drink and other equipment for a network/internt connection.

[CERuppel]

Paintball: Near here they turned an old factory into an indoor paintball arena. Supposed to be awesome.

As for the internet cafe idea, definately deversify. Get into the entertainment of your customers. Offer different sorts of 'nights' (football modays...) to give yourself a change of flavor and draw a bigger total crowd.

As for the bowling alley partnership: Great idea!

[skybolt_1]

Korgul - I also was trying to calculate how much I would need to start with say, 20 machines. I figured that the cost would be prohibative. Then I thought, what if I got a lease from Dell on the same machines for say, a year? That way, even if the whole thing went sour, I wouldnt be in the hole as much as I would be if I had purchased the machines. If I was doing well after a year, I could either purchase the machines from Dell or just get another lease...

CERuppel - In Lowell, we have a TON of old mill buildings... maybe I should start a paintball place instead... I'll look into how much it would cost to rent part of the mill... then when I make some money doing that I could add-on the cybercafe part. Be like an all-in-one stop for your gaming needs! hehehe

[nukes]

Plus if you lease the machines, you don't have to keep buying upgrades, just lease the next model the next year for about the same price.
You may need to invest in your own servers though.

Remember one important thing in this business.

Location.

A bad location will kill you no matter what.