Opening a net shop is a “hot” trend in the past 5-6 years. There are people who open a net shop and have to close the shop, but there are also people who open a net shop and earn huge profits? So is the net shop business profitable?
Last time, Sapo shared the experience of opening a net shop for beginners. Anyone who has been in business knows that any profession has risks. To minimize risk, you need to understand the nature of the trade first.
All problems related to computers, hardware, software, management … you must understand, if you are not good at it, you must also know to be able to improvise before each situation encountered.
Those who are just starting a business often wonder: Is opening a net shop profitable?
1. What does it take to open an Internet shop?
The hardest part of the internet shop business is that you have to keep track of and capture the rapid changes in the game world as well as computer configuration. According to an experienced net shop owner, in 2010, opening a start-up net shop only needed 6 computers, no Hub.
The games back then were just RoadRash, BH2002, chess, Mario, line 98, tile. The screen is second hand 14, the best is there is only 1 machine with a super flat Prolink 15 screen for 5k / 1 hour. Then came the throne of Halflife, Counter Strike 1.3, Red Alert 2 (Red Alert)… Standard computer must have 128Mb Ram, Celeron 1.2 or 1.7Ghz. In those days, the net shop did not need to freeze DF or SV and BootRom like today.
The technology race when opening a net shop creates a lot of pressure on investment capital for those who are just starting to enter this field. In addition, opening an Internet shop you need to pay attention to the following issues:
Investment capital to open a net shop
Depending on the ability of each person, the investment capital is different. However, to operate, ensure profit, you need at least 20 machines. On average, a newly invested machine takes 9-15 million VND. The investment money for the machine system you need is 180-300 million dong.
Necessary legal procedures to open a net shop
About the business license: some places issue it, some places don’t, so you have to buy it again. The price depends on each business area (usually from 10-40 million) and it takes about 1 month to complete this stage.
Floor plan – electricity and water for the net shop
If there is space available that would be great. No need to pay rent, save a lot of costs. But if not, outsourcing prices also range from 3 to 10 million / month. Prices vary by location and region.
The manager for the net shop
The net shop manager can be you – the shop owner. Whether you or you hire outside employees, you must have a business orientation and method. It’s not just about managing guests entering and leaving. Managers must be knowledgeable about PCs and take measures to attract customers and increase profits for the shop every month.
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2. Is the net shop business profitable?
From the cost estimate to the actual opening of the net shop is a very long distance. Due to the extra costs incurred during the rental process, and the estimated net shop revenue, it is often inaccurate. According to an experienced net shop owner, on average, the shop runs for a maximum of 10 hours a day, 3,000 VND per hour.
- Turnover in 1 day (20 machines) = 20 machines x 10 hours x 3,000 VND = 600,000 VND
- Turnover in 1 month (20 machines) = 600,000 VND x 30 days = 18,000,000 VND
That is the revenue in the condition that the machine room is full at all opening hours. In fact, many net rooms are only able to reach such capacity on the first day. But on the day there were no customers, the net shop was also miserable. So temporarily calculating 1 month’s actual revenue of only 15,000,000 VND is great. Earning that much, what to spend:
- 1 month’s expense (20 machines) = Electricity (2,000,000 VND) + House rent (4,500,000 VND) + Machine cost (500,000 VND) + Network fee (1,000,000 VND) + New mouse, desk keys, head phone (500,000 VND) + Rent of a bartender (1,500,000 VND x 2) = 11,500,000 VND
In the end, you only have 3.5 million VND for 1 month. With an investment of 200-300 million dong and earning 3.5 million in 1 month, it’s hard work, isn’t it? Opening a net shop is definitely profitable? But how to increase profits?
3. The risks of doing business in internet shops
- Fierce competition from technological improvement with other net shops. There is no industry where the competitive pressure is terrible such as: net game industry, neighboring shops sprouting like mushrooms, terrible configuration racing… But the main thing is that everyone is completely spontaneous and has no idea. any agreement with each other, strong whoever takes it, whoever dies around will die.
- Smartphone trend – smartphones bloom, everyone has a mobile phone in their hand, accessing wifi, 3G, 4G networks anytime, anywhere.
- The cost of using Vietnamese internet service tends to decrease.
- Opening a net shop in 2017 the net market almost fell into saturation point.
4. How to open a profitable net shop?
- Focus on marketing and promotion strategy
- Customers who open an account and deposit from 30,000 VND or more will receive many incentives such as increased playing time, free drinks of choice. In addition, the shop also has many promotional packages for loyal customers or customers who recharge game cards with large amounts of money.
- Develop associated services.
- In addition to the fee-based sitting service, you need to sell all items such as: phone cards, simple snacks (shrimp noodles, bread, juices, smoothies), online game recharge cards for casual gamers. often sitting at the bar.
- Good asset management, machine room.
- Alliance with other net shops.
Is it profitable to open a net shop? The story shared from the experienced net shop owner has helped you answer the question, right? The word when opening a net shop is certainly there, but the challenge to gain efficiency from the net shop business is not small. Sapo wishes you “steadfast rowing” when starting a business.
