Thursday, May 15, 2008

Internet Cafe or Transport Business?



My husband wanted me to have a small business of my own, a kind of business that earns daily, something that could augment his income. His advice is to open a small internet cafe or buy one or two passenger-type jeepneys.

A "jeepney" is a vehicle that caters to commuters, duly licensed by the Land Transportation Office. It has a franchise to operate in a certain route, from the city to the suburbs, or from the city to the northern and southern parts of the province. The minimum fare is PhP6.00 for the first five (5) kms. So, the idea here is to rent out your vehicle to drivers who pay the boundary fee of, let's say, PhP700.00 daily, depending on the route and on the kind of vehicle that you rent out. Maintenance cost of repairs and parts are shouldered by the owner. Usually, you have a regular driver and an extra driver for the days when he rests or when he cannot drive. This way, your jeepney can operate daily without a hitch.

While an internet cafe is a place where you rent out computers to users on an hourly basis. Before, when computers were still expensive, the hourly rental is PhP20.00 to PhP25.00, but now that internet cafes are all over the city, the rental goes down to PhP15.00 and some net owners even have promos for PhP10.00/hour. You also have to rent a place, install an airconditioner, perhaps hire a staff to help with the users.The maintenance cost here comprises of the rental, electric bill, water bill (you should have a restroom!), staff's salary, internet access fee, and repairs of computer units.

I'm still undecided on what to choose between these two business ideas. If you were me, which is the better choice - an internet cafe or a transport business?

17 comments:

piebuko said...

We have a jeepney.
It's better I think.
The operation cost is smaller.
You need to make sure, however, that the engine parts are in great condition; otherwise, the repair expense can be staggering.

The_Sphinx's World said...

That's what I think too, Pie. Perhaps, I'll just do that.

Thanks for the advice!

sukku said...

If I were you I would choose the jeepney and my reasons are as follows:
1. You get a fixed montly fee for the rental
2. There is nothing to worry about competition as your route is fixed.
3. maintenance of diesel vehicles are low

Whereas the internet cafe has its drawbacks and they are as follows:
1. Cut throat Competition
2. Controlling bad elements from using the cafe
3. Exposure to theft and vandalism
4. Wear and tear of computers very high due to handling

Hope I have contibuted in some ways, but remember this, we can only show you the door, but you have to walk through it.

sukku

The_Sphinx's World said...

Sukku,

thank you, that's 2 points for the jeepney. I think this is better too. My husband wanted the internet because he said I stay at home all the time, and it would give me a reason to go out and meet people.

earthlingorgeous said...

wow sphinx I am contemplating on a laundry shop or an FX I never liked jeepneys haha... I was advised that if you want to put up a business it has to be something you like too ...

The_Sphinx's World said...

Hi Gorgeous,

Come to think of it, a laundry shop is also good. I think with the crisis that we now experience, it is the right time to look for other means of earning.

I hope we do good in whatever business we get into.

The_Sphinx's World said...
This comment has been removed by the author.
Mommy Ruby said...

i really like internet cafe because that is my dream business but jeepneys are fixed and wouldn't eat much of your time. at piebuko said, just have a well maintained engine and there would be no problem.

David Tamayo said...

Internet Cafe or Transport Business? I think the best advice that I can give would be to choose the one that follows the following criteria:
1. You totally believe in the concept. You know it will be profitable with no room for reservation or doubt.
2. You know the business forwards and backwards or hire somebody that does. (Just learn the business forwards and backwards from that person.)
3. Enjoy some aspect of the business. Positivity is immeasurable in connection with the success or failure of a business.
4. Do it right the first time. Cutting corners always costs you more in the long run.
Considering your talent, I have a difficult time believing that these are your only options. Take care.

The_Sphinx's World said...

hi mommy ruby,

thank you for the comment. My husband really likes the internet cafe but just as sukku said, the cut throat competition is stiff and you will end up offering low rentals too so thereby getting low income also.

I guess I just have to decide on the jeepneys.

The_Sphinx's World said...

Actually, I love cooking and although my first choice would have been a restaurant, it is not possible. Such business requires more capital which I do not have at the moment.

So the next best thing for me would be the transport business. I will be talking to my sons about this because I want them to take interest in this new project too.

SheR. said...

Sorry can't offer your any opinions about business. Am struggling to start one myself.
I think with your cooking skills, you should start a cooking school!
There's lots of that sprouting all over Singapore!!!

I prefer the internet cafe idea cos you are on the net most of the time! It's a job where you get to do your blogging and run a business at the same time!

Good luck!! Keep us posted!

The_Sphinx's World said...

We had a family talk and we all decided to go into the transport business. At least we'll try one first and see how it goes. By next week, I will close the deal on buying the unit that we have chosen.

Thanks everyone for sharing your opinions!

sukku said...

Wow thank God you have made up your decision and I hope all the best for you in your new undertaking.

God Bless and take care.

sukku

Beth said...

I prefer to have a transport business than internet cafe :)

The_Sphinx's World said...

Thanks Sukku, I hope we do well too.

The_Sphinx's World said...

Hi beth, yes, i think i made the right decision. again, thanks for the advice everyone!