What do you think?

[csitenet]

I am making a pretty big decision in the next few days...

I have been offered a partnership deal with a friend to buy an Internet Cafe Business + Location + computers , equpment etc. for £145,000 Each (ie £280,000 togather)

After looking at it properly it seems the business CAN grow to acheive Big profits per year. It seems like a bargin as the business already has about £50,000 per year income. The property is in the perfect location, Poor/Middle Class, place where most people wont have an internet connection or pc

I was wondering anyone here have a internet cafe biz before? or worked in one? Is it stressful? i am seriously thinking of selling all my online buisnesses and going into the internet cafe biz.

It may not be the case for all, but when i made my online biz, it was working about 9-12 hours PER DAY on it. I personally think this business would be much less stressful.

Any advice on the internet cafe market would be helpful (this biz is in the UK , Edinburgh)

Thanks.

 

[Edwin]

Why would you risk buying a business that could rapidly become obsolete at close to 6x annual income? Computers are getting cheaper every year, as are internet connections. Do you still see a niche for internet cafes in 6-10+ years time? At similar hourly rates? Because that's how long it's going to take to start to see your investment turn cash-positive overall, based on what you've posted...

 

[domaintalk]

Well if its the perfect location might the value increase of the property , might the value decreases. Try pming varchar (my partner) he is running on the same thing.
He is getting a pretty good loss with his cafe and deciding to sell but couldnt make his mind, maybe both of you can take an good decision.

My advice to him and same to you , Do not sell it.
Let the value increase.

 

[csitenet]

Well i have already went ahead to buy the property, we had a survey on it and it was said to be worth £130,000 right now. My Brother is an architect, i am sure when he is done with the place the value should increase, the bottom floor is not in a good state right now...

The computers are no problem, i will be contacting Dell to make an buisness contract with them to purchase pc's WITH full software license. TBH thats the biggest problem, the software license cost which is pretty much solved by dell's cheap pc's .

Will probably be selling my hosting business soon

BTW, i will be changing the name as soon as the contract is fully complete and we own it, though all members would be welcome (its located in 107 Dalry Rd Edinburgh, EH11 2DR)

Thanks to all comments via post AND pm

 

[urbanvilla]

First thing partnerships rarely work especially more so if you know them,another think is it making 50k net profit or turnover ? why is the owner selling if its that good ? Look at the future is it really such a good deal ?

I know you will try to prove me wrong but i have a bricks and mortor business and its hard work and you should not pay more than 2.5 times more than the profits,personally from experience i would say forget it but then again i could well be wrongbut which way you go GOOD LUCK !!

 

[csitenet]

lol i wish it was 50k profit. No it maked 50k per year in total. This is a very close friend of mine who thinks pretty much the same way as i do, known him over 15 years and was sharing a flat with him during the student years for about 5 years.

Only time will tell if this was a good deal or not. Hopefully if i put enough effort in the first year it will pay off.

 

[Mr. DeletedMr. Deleted is verified member.]

Good luck, and hope to still see you around here even if you move on from the domaining biz.