Owning Internet Cafes

[gbt71fa]

I am looking to start up a business in Thailand and i will have some money to burn. I was thinking about buying up some internet cafes as they seem to always be busy and only require a few employees. Upkeep would be updating computers and of course gaming. I have some money to burn so it wo't be a wash if it doesn't work out. Any ideas abou this? I was thinking in the Bangkok and Phitsanuloke region. Either this or a bar and my mum would thrash me if she found out about the bar....seriously, I know if is not a lot of income but I think it gernerate nicely after we own 2-3 of them.

[gbt71fa]

I also would try to outdo the other internet cafes. I would have free water as that is rather cheap, one per hour though, and also offer drinks and chips. Maybe get about 12 playstation 2s so they can play EA FIFA soccer (that is what I saw all the young men playing). Possibly even coffee to make the "cafe" part of internet cafe more legitimate. Any other suggestions?

[spongeman]

Lot of competition in that area id say.

Also would you not need PS 3's ?

[Hong Kong Phooey]

^ Agree with the competition comment. My ex-gf owns and runs an internet cafe in Soi Rambutree, near KSR. 2 years ago she was doing very well financially. Now, business is very quiet. Last I heard, she'd shut up shop for a few months and gone back home to visit family. Said she'll return when the tourist trade picks as it doesn't pay her to operate the business with so few people coming in and having to pay out on staff wages.

I suggest you really do your research, especially with location(s). Also, if you're going to offer PS2 or PS3 etc., maybe consider setting up near a school. You'll likely have competition though.

Good luck whatever you choose to do.

[fanta rood]

You need a work permit if you want to work legally in Thailand. I doubt you can get a work permit for starting a internet cafe business

[Ciaphas]

^Agree. Location, location, location. There's one near me permanently filled with boys playing games but 500 meters around the corner another one pretty empty most of the time. The busy one also has PO Boxes down one wall, another idea for revenue stream.

[wasabi]

If you don't actually need to make a profit and just want a way to get a work permit and have something to do I think it is a good idea.

[spongeman]

^Agree. Location, location, location. There's one near me permanently filled with boys playing games but 500 meters around the corner another one pretty empty most of the time. The busy one also has PO Boxes down one wall, another idea for revenue stream.

Yeah PO boxes is a good idea

[OriginalPoster]

I am looking to start up a business in Thailand and i will have some money to burn. I was thinking about buying up some internet cafes as they seem to always be busy and only require a few employees. Upkeep would be updating computers and of course gaming. I have some money to burn so it wo't be a wash if it doesn't work out. Any ideas abou this? I was thinking in the Bangkok and Phitsanuloke region. Either this or a bar and my mum would thrash me if she found out about the bar....seriously, I know if is not a lot of income but I think it gernerate nicely after we own 2-3 of them.

1 Baht per minute seems to be the most that anyone charges except in a select few areas that are controlled by a cartel. With that revenue stream, how much profit could you possibly make?

[fanta rood]

Once again you need a work permit to work legally in Thailand. This is easily overlooked but its crucial. This topic doesnt make any sense if you cannot get a work permit in the first place.

[JimsKnight]

I was staying up-country and was in there internet cafes there. They were rapid-quick, almost as fast as pattaya (which is on a par with the UK web speeds).

They were charging 10 baht an hour!!

Makes me wince when I recall what Thai islands were charging 5 years ago (between 100 and 150 baht per hour!)

Edited April 22, 2009 by JimsKnight

[loong]

I think that you'd be getting into a business that no longer has growth potential. More and more places are offering free Wi-Fi connections and even laptop rentals.

If you want the Thai gamers, be aware that they are so noisy and have no respect for the machines, also income would be limited as somewhere will be offering the same service at 10 or 15 Baht/hour.

Having money to burn is no reason to open a business, so why even consider it? If you're doing it with the idea of a business for your wife, does she have the specialist knowledge to keep everything running smoothly?

Some people are running these shops as their only income, so do you intend to try to put them out of business because you can afford to run at a loss?

[balo]

Once again you need a work permit to work legally in Thailand. This is easily overlooked but its crucial. This topic doesnt make any sense if you cannot get a work permit in the first place.

What you need is a Thai partner and then you can run the business with him /her. Just need to be someone you can trust.

[fanta rood]

Once again you need a work permit to work legally in Thailand. This is easily overlooked but its crucial. This topic doesnt make any sense if you cannot get a work permit in the first place.

What you need is a Thai partner and then you can run the business with him /her. Just need to be someone you can trust.

No you dont. You still need a working permit no matter what the situation is. You NEED a working permit to work here legally. No matter what

But I am guessing you are talking about illegal work. Thats stupid.

[Heng]

Make sure you stay legal software wise. For games shops, that's easy... you simply make sure your games are all legal and no one is allowed (this has to be monitored or the kids will bring them in) their own illegal games. Otherwise you can expect to be taxed by the BIB (not an absolute, but I've seen it happen).

For net shops, it's a little more involved, but doable. I have a few tenants with net shops and what they do is set up their computers and networks so that nothing can be installed on the computers by the client. You can keep people from downloading but that will limit your client base a bit. One popular set up is having a daily delete download folder... customers can only download to one specific folder and can't change that and can copy data from that folder onto flashdrives if needed. You probably want to setup a master delete though in case you feel you are being set up by the BIB (that is, your network monitor notices that there are strangers in the shop all downloading MP3s, for example).

[katasyd]

Be careful.

There are gangs that go into internet cafe's in Thailand with a USB drive and download child porn onto the computer without the shop knowing.

Then they get the BiB's around to make the "discovery" and you can only guess what comes next.

I know a farang that runs a Internet cafe in Phuket and he refuses to allow Thai's to use his shops computers, he tells them the internet is down.

Tourists only policy.

[Asianrider]

I don't think anyone will get rich by Western standards opening an internet shop, they seem to do it for work permits, or give an illusion of legitimacy to obtain travel visa's for thai gf's !

[davejonesbkk]

Once again you need a work permit to work legally in Thailand. This is easily overlooked but its crucial. This topic doesnt make any sense if you cannot get a work permit in the first place.

What you need is a Thai partner and then you can run the business with him /her. Just need to be someone you can trust.

:D

[kiakaha]

look for a point of difference...super cheap internet shops are a dime a dozen.

I would offer free internet services and then make money from other goods and services that you could push on your captive audience.

[wildoates]

There is a very intense law on Internet cafe's and how to maintain a log on users, and maintain data for BIB to see if need be. It is very poorly written, and not enforced unless they want to. I seen a shop in pattaya get their machine taken and it cost them 10000 baht fine for each, cause of unlicense software. I now see shops in BKK state they can not load unlicense software on computer you purchase. Here in Surin, I brought one, ask then not to install anything, I had my own. Had a problem with it, took it in for repair and the guy put all kinds of software on it, told me for free, I told him to remove it, I did not want it. So TIT, law not enforce everywhere the same. The Wife has applied to open a Internet Cafe in her Village, it is still pending, they say law is changing and they don't know yet what it means. So be very careful.

[gbt71fa]

A lot of pros an cons here, more cons but that is business. Well, I want to start up something and my first thought was a bar to cater to farang clientel in BKK, Pattaya, Chang Mai or Chang Rai. But only seem to see horror stories on that. I had a buddy who wanted to do a go-go bar but I can see "danger, danger" on that one. What kind of business actually can succeed for an American here? I know due to the treaty of Animity? am I saying that right, that AMericans have a better time of it at owning a business in thailand, supposedly. If not internet cafes then what can work? Would a bar still do well, are go-go bars just to danerous to touch?

[misspalin]

I don't think anyone will get rich by Western standards opening an internet shop, they seem to do it for work permits, or give an illusion of legitimacy to obtain travel visa's for thai gf's !

he said profits r not a high priority....lol

[gbt71fa]

Lot of competition in that area id say.

Also would you not need PS 3's ?

are PS3s pretty common now? I thought all the kids were still playing the PS2...

[gbt71fa]

I think that you'd be getting into a business that no longer has growth potential. More and more places are offering free Wi-Fi connections and even laptop rentals.

If you want the Thai gamers, be aware that they are so noisy and have no respect for the machines, also income would be limited as somewhere will be offering the same service at 10 or 15 Baht/hour.

Having money to burn is no reason to open a business, so why even consider it? If you're doing it with the idea of a business for your wife, does she have the specialist knowledge to keep everything running smoothly?

Some people are running these shops as their only income, so do you intend to try to put them out of business because you can afford to run at a loss?

I'm a Capitalist.....

[gbt71fa]

Once again you need a work permit to work legally in Thailand. This is easily overlooked but its crucial. This topic doesnt make any sense if you cannot get a work permit in the first place.

What you need is a Thai partner and then you can run the business with him /her. Just need to be someone you can trust.

Hey, my wife is Thai....

[gbt71fa]

Make sure you stay legal software wise. For games shops, that's easy... you simply make sure your games are all legal and no one is allowed (this has to be monitored or the kids will bring them in) their own illegal games. Otherwise you can expect to be taxed by the BIB (not an absolute, but I've seen it happen).

For net shops, it's a little more involved, but doable. I have a few tenants with net shops and what they do is set up their computers and networks so that nothing can be installed on the computers by the client. You can keep people from downloading but that will limit your client base a bit. One popular set up is having a daily delete download folder... customers can only download to one specific folder and can't change that and can copy data from that folder onto flashdrives if needed. You probably want to setup a master delete though in case you feel you are being set up by the BIB (that is, your network monitor notices that there are strangers in the shop all downloading MP3s, for example).

Ooh, good points there...did not think about that and always have to be "considerate" of the BIB.

[gbt71fa]

[ OP I can almost guarantee you that your wife will quickly lose interest in any business venture unless she has a sincere enthusiasm for the field that she will be operating in. If you open a bar, then you'd better hope that she DOESN'T have any enthusiasm at all.

If you're not worried about too much profit, why not open a small self service 7-11 style store with a few tables outside. Your wife would only have to worry about reordering when stock is low and you'll maybe get a few farangs sit at the tables and drink your beer, so somebody for you to talk to when you are there. You'd have to check the licensing requirements, I don't know what makes the difference between a store and a bar. maybe as long as you don't supply glasses, it wont need to be licensed as a bar.

how hard is it too buy a 7-11 store? That is why I want to stay away from the whole bar scene for awhile. Maybe I should just lean more towards investing in an already established establishment.....established establishment, is that right?

[Zpete]

I thinx ppl wanting to do stuff, work, own businesses in LoS are plain masochists.

The hassles are not worth it.

Great if you like a challenge.

As aregualar visiter, 2 - 3 times a year, I really enjoy the ppl, sit back and relax.

Love LoS, but no hassles thanks we're happy as is, and love Chang.

[loong]

[ OP I can almost guarantee you that your wife will quickly lose interest in any business venture unless she has a sincere enthusiasm for the field that she will be operating in. If you open a bar, then you'd better hope that she DOESN'T have any enthusiasm at all.

If you're not worried about too much profit, why not open a small self service 7-11 style store with a few tables outside. Your wife would only have to worry about reordering when stock is low and you'll maybe get a few farangs sit at the tables and drink your beer, so somebody for you to talk to when you are there. You'd have to check the licensing requirements, I don't know what makes the difference between a store and a bar. maybe as long as you don't supply glasses, it wont need to be licensed as a bar.

how hard is it too buy a 7-11 store? ...

.................

If you find the right location without too many similar stores nearby, 7-11 will kit it out, set it up and make all necessary alterations at no cost to you. When the store is up and running, you will pay a commission on your turmover. Probably. if good location it may be better if you do yourself

[JimmyConway]

I am sure the authorities will "reward" him for his efforts.

Yes rewarded with permanently disappearing which wouldn't be a bad thing.