Computer Units Electricity

Aircondition Water
Electrical Cleaning Tools
Table and Chairs Personel
Shop furnishing Internet Connection
Printer
Softwares

FIBERNET
Costs in starting Internet Business
I. Estimated Investment Costs
Qty. Descriptions (minimum specifications) Amount

1 Intel CORE i5 Server 30 ,000.00

4G DDR3 RAM, 500 GB SSD
512MB Video Card
100/1000 LAN Card (or built-in)
CD or DVDRW Drive
56K modem or ISDN (internal or external)
19” LCD Monitor
Keyboard and Mouse
Automatic Voltage Regulator (AVR)
10 PC Core i5 Workstations 25,000.00 /pc = 250,000.00
Intel Dual Core, 1GB DDR3 RAM
500 MB Video Memory
LAN Card 100/1000
500Gb Hard disk,
19” LCD Monitor
Keyboard and Mouse
Automatic Voltage Regulator (AVR)
2 Printers Continues Ink, 15,750.00
for document and Picture
All in one
1 Xerox (optional)

Other Peripherals
10 Headset @ 300 .00 /pc. 6,000.00

10 Web Camera @ 950.00 /pc. 9,500.00

optional

1 box LAN Cable /UTP/CAT6 3500.00

50 RJ45 Connectors @ 10.00 /pc. 500.00
 2 Switch Hub // Router Wireless 4,000.00

3 UPS (OPTIONAL) 3,000.00

1 Scanner 4,150.00

Total 337,060.00

Software Requirements
Operating Systems (Windows windwos 10) for
70,000.00
10 units @ 7k per license

2 Any Anti-Virus Software, Anti-Spy software – will

4200
eliminate or minimize treats and system breakdowns

10,000 Any Application Systems for operation – Word

10, 000
Processing, Spreadsheets and Gaming Software

TOTAL 97,500.00
*Estimated investment costs based on 2009 prices
Direct Costs*
Particulars Cost
Supplies and Materials (Papers, CDs,
5,000.00
Diskettes, Printer Cartridges, Pens)
Telephone 1,500.00
Internet Service Provider (ISP)/DSL 4,500.00
Total 11,000.00
* Monthly cost assumption
Indirect Costs
Particulars
Cost

Labor Cost
(P382.00/day min. wage x 30 days x 2 staff) 22,920.00

Water and Electricity (P250.00/day x 30

days) 7,500.00

Contingency Cost (10% of direct costs)

1,100.00

Total
31,520.00

II. Estimated Income for One Month Operation

Services Amount
Internet (Surf, Chat, Email, SMS)
42,000.00
(P15.00 /hr x 12 hrs x 30 days x 10 PC)
 Encoding (P10.00/pg x est. 100 pp /mo.) 1,000.00
Printing (P5.00/pg x est. 600 pp.) 3,000.00
Scanning (P10.00/scan x est. 50 scan) 1,500.00

Gross Income from Operation 47,500.00

Less:
Direct Costs 11,000.00
Indirect Costs 31,520.00 42,520.00
Estimated Net Income from Operation 4,980.00
Other Products and Services:
– Gaming
– Web Designing
– Desktop publications (e.g., calling cards, invitations, etc.)
– Other computer-related services
– Food, coffee, beverages, schools and office supplies, etc.
III. Procedure in starting Internet Business
Online business must have a network connection or connectivity between your computer
and the Internet, a network, or another computer. A network is a group of computer
systems that are connected together. Sometimes a computer is connected to a local area
network (LAN) which connects computer systems that are close together, such as in one
room or on one floor of a building. A server controls most of the networks. With Network
Connections, you can gain access to network resources and functionality, whether you are
physically located at the location of the network or in a remote location.

Small Internet and Computer Services Business should have Personal Computer (PC)
Server and PC Clients.

Server – a computer that carries out clients’ requests. It is the main computer or device on
a network that manages network resources and handling network files, printers, database,
and other devices. Servers are often dedicated that they perform no other tasks besides
their server tasks.
Client – an application that runs on a PC or workstation and relies on a server to perform
some operations.
There are different network connection types. The most commonly used by Small Internet
Café Business are Digital Subscriber Line (DSL) connections or broadband provided by
Internet Service Providers (ISP) companies. Some are still using Dial-Up connections with
subscription plans.

IV. Hardware Requirements for Network Connections

Depending on your configuration, you may need some or all of the following hardware:
1. Network adapter with a Network Driver Interface Specification (NDIS) driver for LAN
connectivity;
2. One or more compatible modems and an available COM port. A 56k modem or
Integrated Services Digital Network (ISDN) adapter if you are using an ISDN line;
3. DSL or cable Modem, typically connected to an Ethernet network adapter;
4. Analog telephone line; and
5. A multi-port hub/adapter, which may improve performance for multiple connections.

V. Selecting your Internet Service Provider (ISP)

An Internet Service Provider (ISP) is a company that provides Internet access to other
companies or individuals. An ISP maintains connections to other networks and ISPs,
acting as a router for Internet traffic between a customer’s computer and any other
machine also connected to the Internet anywhere else in the world. ISPs can provide
access to the Internet in many ways. Most ISPs in the country are into subscription plans
and provide good packages for home use and small businesses.

Download a sample of Computer shop feasibility study.

– Sample 1
– Sample 2
VI. Registration Requirements
Business Name Registration
Department of Trade & Industry (DTI) within NCR
a. 12/F Trafalgar Plaza, 105 H.V. Dela Costa St.,
Salcedo Village, Makati City
Tel. No.: 811.8232 loc. 208

b. 2/F Park N’Ride, Lawton, P. Burgos Ave., Dr. Basa St.

Ermita, Manila
Tel. No.: 536.7153

c. G/F Highway 54 Plaza, EDSA

Mandaluyong City (across SM Megamall)
Tel. No.: 706.1767

d. 5/F Araneta Square Mall

Monumento Circle, Caloocan City
Tel. No.: 332-0854 / 332-0829

Provincial Office where the business is located

Website: www.bnrs.dti.gov.ph for online registration
Validity: 5 years

Mayor’s Permit
Residence Certificate and Sanitary Permit from the Municipality or City where the
business is located
Validity: 1 year
Tax Identification Number (TIN)
Bureau of Internal Revenue (BIR)
National Office, Agham Road, Diliman, Quezon City
Email: [email protected]
Trunkline: (632)929.7676 / 927.2511
www.bir.gov.ph
VII. Financing
SSS Special Financing Program
Social Security System (SSS)
Institutional Loans Department (ILD)
SSS Building, East Avenue, Diliman, Quezon City
Tel. Nos.: (632) 920.6401 / 927.8249
Email: [email protected]
www.sss.gov.ph

Small & Medium Enterprise Credit

Phil. Business for Social Progress
18th Flr., Phil. Social Dev’t. Center
Magallanes cor. Real Sts. Intramuros, Manila
Tel. Nos.: (632) 527.7741 to 48 / 527.3751
Fax No.: (632) 527.3751
Email: [email protected] or [email protected]
www.pbsp.org.ph

People’s Credit and Finance Corporation (PCFC)

395 Sen. Gil Puyat Ave., Makati City
Tel. Nos.: (632) 897.8549 / 752.3746
Fax No.: (632) 897.8523 / 897.8528
Email: [email protected]
Website: www.pcfc.gov.ph

VIII. Technical Assistance

Philippine Trade Training Center (PTTC)
PTTC Building, Sen. Gil J. Puyat Avenue cor.
Roxas Blvd., 1300 Pasay City, Philippines
Tel. No.: (632) 468.8969
Fax nos.: (632) 831.9988 / 833.0809
E-mail: [email protected]

Source: dti.gov.ph, Photo: digitalbattle.com

Introduction To The Internet Cafe Business Philippines

1. 1. One Day Internet Cafe Skills Development Program ICT Module
2. 2. What is an Internet Cafe? The high-tech equivalent of the coffee house. However, instead of playing
chess or having heated political discussions, you browse the Internet and discuss the latest technology.
CDs, DVDs, games and other "cyber stuff" are also generally available.
3. 3. History of Internet Cafes in the Philippines <ul><li>Internet Cafes Started out in the late 1990's as LAN
Shops – a center in which computers are networked in order to play LAN Games.
4. 4. Internet connection then was dial up and relatively expensive therefor only a few shops offered internet
service.
5. 5. The bulk of their service back then was gaming and typing services for students. </li></ul>
6. 6. The introduction of a fast internet service
7. 7. Kinds of Internet Cafes
8. 10. Internet Kiosk New Variation In the Philippines it is called as Hulog Piso Internet Cafe
9. 11. Internet Cafe of the Future
10. 12. Equipments Used in Internet Cafes
11. 14. Parts of a Computer System Computer Hardware Computer Software Peopleware
12. 15. Parts of a Computer Hardware System
13. 17. Motherboard
14. 18. Processor RAm
15. 19. Video Card Hard Drive
16. 20. Power Supply Sata Connectors Ribbon Connectors
17. 21. Question Is it advisable to buy second hand computers to be used in an internet cafe?
18. 22. Answer: Definitely a NONO Moore's Law “ The Number of Transistors in every Chip will Double every 24
months”
19. 23. Meaning: It would be far more expensive for you to maintain an old computer system than a new one.
You might be saving money in acquisition cost but in the long run it you would suffer in terms of your
maintanance cost. New Computers are much more powerful and much more cheaper to maintain than old
computer units.
20. 24. What is best system for an internet cafe?
21. 25. Answer: It Depends on three things: 1. The Target Market that you want to reach 2. Your Business
Model 3. The kind of Internet Cafe that you are going to establish
22. 26. If you are planning to cater to an internet only market it does not require a very complicate computer
system. Nettop ng Bayan 2.0 will have the following: * Intel Atom Processor * 80GB Hardisk * 1GB Memory *
Keyboard and Mouse * LCD Monitor
23. 27. If you are going to cater to a gaming market then you would need the following: 1. A fast processor – min
Dual Core Processors or Core 2 Duo Extreeme Intel I Series. 2. At least 2 G of RAM 3. At least 1 G Video
Card 4. A large hard disk space to store your online and lan games. 5. A steady supply of keyboards and
mouse
24. 28. Or
25. 30. Computer network Server C L I E N T S
26. 31. Additional Equipments
27. 32. Yahoo Nielsen Internet Usage Philippines Services Offered in Internet Cafes
28. 33. Regulations in Internet Cafe Operations The Internet Cafe Industry despite being the primary access
point of the community to the internet is still considered to be a backyard industry thus: Who is in Charge of
the internet cafe industry?
29. 34. Since the primary notion of people is that an internet cafe is a gaming center and most of its
stakeholders are actually engaged in the gaming model thus The LGUs classifies the internet cafes as an
entertainment and recreation center along with the billard halls, karaoke bars and other center for vices This
classification provides some problems:
30. 35. Distance Requirements
31. 36. Student Restrictions Students are not allowed to enter internet cafes during school hours unless there is
a written permission from the teacher that their presensce is related to their school work
32. 37. Restrictions on access to pornography and other violent materials online Internet Cafes are often
accused as the primary access points of pornography and places were pedophiles converge
33. 38. Internet cafes are required to use licensed software in their operations
34. 39. Documentation and Business Registration Register your business name Get your Barangay Clearance
Get your Business Permit Register at the BIR
35. 40. Requirements DTI Registration o Make sure that your business is on Metro Manila (i.e. Manila, Pasay
City, Taguig, Pateros, Muntilupa City, Paranaque City, Las Pinas City, Pasig City, Quezon City, Marikina
City, Mandaluyong City, San Juan, Caloocan City, Malabon, Navotas, Valenzuea City), otherwise, proceed
to the DTI Provincial Office where your business is located. o Applicant must be a Filipino Citizen of majority
age (18 years old and over). o Accomplish the application form in duplicate. Type or print completely and
clearly, all information required in the form. o Only the owner of the business is authorized to sign all forms.
A representative may sign for and in behalf of the owner provided a Special Power of Attorney authorizing
the representative is submitted. o Submit the following together with the application form to the proper DTI
Office where the business is located. ¸Photocopy of proof of citizenship such as: - Birth certificate, PRC ID,
voter’s ID, passport for NATURAL BORN Filipinos whose names are suggestive of an alien nationality (e.g.
Chua, Taylor, etc.). Present original copy for comparison.
36. 41. FEES: ¸ Basic Application fee (New/Renewal) - Php 300.00 ¸ Documentary Stamps - Php 15.00 ¸
Surcharge (For renewal of BN beyond 90 days after expiration) - Php 100.00 ¸ Bulk Sales - P55.00
37. 42. After securing your DTI registration which usually takes around a week or 2 if your business name does
not have any conflict in their records go to your barangay hall to get your barangay permit. Fees for the
barangay permit would depend on your respective barangays. After securing your barangay permit then
proceed to your city or municipal hall to get your business license. Requirements for the Business License 1.
 DTI Registration 2. Barangay Clearance 3. In most cases you are asked to undertake a “Deed of
Undertaking”
38. 43. After securing your business permit go to BIR to get your business TIN there are 3 things that you need
to do: 1. Register your business establishment and all its branch offices, if any. You do this at the BIR
Revenue District Office (RDO) in the place where your business is located. Once you obtain your Certificate
of Registration, you must display it in a conspicuous place within your business establishment. 2. Register
your books of accounts. You accomplish this at the same RDO. 3. Request for permit to print and issue
receipts and invoices. You must thereafter post a notice in your business premises stating that your
establishment issues receipts, and that if no receipt is issued by the cashier, then the customer must ask for
one.
39. 44. Documents to bring: - 2x2 colored picture with white background - Mayor’s or Business Permit - DTI
Business Name Registration Certificate - Tax Identification Number (TIN) Card - Sketch of Business
Location - Owner’s Birth Certificate - Owner’s Marriage Certificate - Birth Certificate of owner’s dependents
(21 yrs & below) Forms: - BIR Form 1901 (Application for Registration) BIR Form 1925 – for the TIN Card. If
owner has TIN, no need to apply for another
40. 45. BIR Payments: Montly = 3% of your monthly gross sales Quarterly = 3% of your quarterly gross sales
less the previous months payment
41. 46. Software Licensing Software: A set of instructions for a computer.
42. 47. There are two kinds of software: system software application software.
43. 48. Two Kinds of Software License Proprietary software Copy Right Software Free and Open Source
Software Copy Left Software
44. 49. What are the different software used in internet cafes that needs licences? 1. Microsoft OS 2. Anti –
Virus 3. Application software like Office, Photoshop and LAN GAMES 4. Any software that requires a
product key
45. 50. Software Licensing for Microsoft OS Original Equipment Manufacturer - OEM
46. 51. Full Product Package
47. 52. Software Licensing Process Microsoft 1. When buying a new computer system already include the cost
of buying a OEM software since it is the cheapest way of obtaining a microsoft software license 2. Keep your
reciepts and your COA in a safe place. Never put your COA in your computer units 3. Accomplish the
Internet Cafe Rental Rights Agreement and send it to Microsoft Philippines
48. 53. Do you have what it takes to be an internet cafe owner? Business Knowledge IT Knowledge Risk Taker
Innovative Willing to Work Long Hours Attention to Details Don't Fall Apart