FILIPINO BUSINESS HUB

FILIPINO BUSINESS HUB

Piso Wifi Vendo Business

How to Start a Piso Wifi Vendo Business: A Step-by-Step Guide

Piso Wifi Vendo businesses have quickly become an emerging trend in the Philippines, offering affordable internet access through pay-per-use. Operating such an enterprise requires installing vending machines that dispense wifi service at affordable rates ranging from Php 1-10. The machine is connected to the internet, and customers can purchase a certain amount of data or time by inserting coins or bills.

Piso Wifi Vendo has grown increasingly popular due to its profitability and low start-up costs, offering promising entrepreneurs a chance to provide essential services while making substantial returns on their investments.

If you want to start a Piso Wifi Vendo business, this article is for you. Here we offer a step-by-step guide on how to get started – from conducting market research, setting up the machine and network infrastructure, and marketing your service to potential customers – to ultimately running and growing a successful Piso Wifi Vendo venture. By the time this guide concludes, you should have an in-depth understanding of all it takes to run one.

Table of Contents

Research and planning for piso wifi vendo business.

Before jumping in with both feet to launch a Piso WiFi Vendo business, conducting extensive market research is essential. This step will enable you to assess demand for WiFi access within your target market and establish whether the concept for your venture can work. Here are some critical factors for consideration:

  • Conduct Market Research Gather information on the demand for internet access in your target location, including demographics, competition, customer preferences, and pricing structures. Visit internet cafes, co-working spaces, or public areas offering WiFi to assess pricing and features and talk with potential customers to understand their preferences for wireless internet.
  • Identifying Target Market and Location Determine your target market and location by understanding customer preferences, taking into account high-traffic areas such as schools, public transportation terminals, and business districts as potential locations with few internet service provider options available but high demand for internet access.
  • Developing a Business Plan Constructing a comprehensive Piso WiFi Vendo business plan will be the blueprint for its success. A well-written business plan should contain details about your organization, such as market analysis, revenue streams, marketing strategy, and financial projections – in addition to being helpful when applying for loans from financial institutions or investors.
  • Identifying Startup Costs and Funding Sources Determine all startup costs involved with starting a Piso WiFi Vendo business, including vending machine costs, internet service provider costs, electricity costs, and other expenses associated with setting up the business. Next, identify what amount of funding is necessary and explore all potential funding sources, such as personal savings accounts, loans, or investors, to get your venture underway. Finally, create and stick to a budget to ensure sustainability.

By conducting extensive research and planning, you’ll be able to establish a solid base for your Piso WiFi Vendo business and reduce the risks involved with starting new ventures.

Setting Up the Piso Wifi Vendo Business

Once your research and planning are complete, the next step in setting up your Piso Wifi Vendo business should be simple. Here are the main steps involved:

Piso Wifi Vendo

  • Choosing the Right Piso Wifi Vendo Machine Various Piso Wifi Vendo machines are on the market, from basic models to more complex options with advanced features. When selecting, consider factors such as cost, reliability, durability, and ease of use.
  • Selecting Internet Service Provider and Bandwidth Vendo business relies heavily on Internet connectivity. Make sure that you select an ISP with high-speed connectivity and excellent reviews as a reliable service provider, considering which bandwidth capacity requirements you have based on the number of users participating and the types of activities they will engage in online.
  • Finding a Reliable Supplier for Machine Parts and Accessories You’ll need a trustworthy source for machine parts and accessories to keep your Piso Wifi Vendo machine running efficiently. Look for suppliers with high-quality products at competitive pricing who also provide excellent customer service.
  • Registering the Business and Obtaining Necessary Permits Once registered with the appropriate government agencies – Department of Trade and Industry or Securities and Exchange Commission, for example – and obtained all necessary licenses, such as business permits and barangay clearance certificates, you should start operating your Piso Wifi Vendo business.

By following these steps, you can launch your Piso Wifi Vendo business successfully and legally. Taking the time and care to create a solid business foundation is vital for long-term success.

Installation and Maintenance

Once your Piso Wifi Vendo business is set up, the next step should be completing and maintaining its machine and network infrastructure. Here are the key steps involved:

  • Setting Up the Machine and Network Establish the Machine and Network Position your Piso Wifi Vendo machine in an easily accessible area for customers to access it, then configure its settings so they provide the optimal customer experience, such as login requirements or pricing models.
  • Testing the Machine and Internet Connectivity Before conducting any activity with customers or equipment, always verify their connectivity to the internet and if charges are being correctly applied. If everything appears correct, conduct further tests on both elements to verify their functionality and accuracy of billing.
  • Implementing Security Measures to Protect the Machine and Customer Data Establish security measures to secure the Piso Wifi Vendo machine and customer data, such as passwords, firewalls, and other protection protocols to stop unauthorized access. In addition, educate customers on safe internet practices like avoiding phishing scams and selecting secure websites.
  • Regular Maintenance and Troubleshooting Perform routine maintenance on both the Piso Wifi Vendo machine and network to ensure peak performance, such as cleaning the machine, replacing parts when necessary, or addressing any technical issues. In addition, stay abreast of technology trends and software updates for top competitive edge and security in business operations.

By following these steps, you’ll be able to provide reliable internet access to your customers while ensuring the safety and security of your business. It’s important to prioritize maintenance and troubleshooting to avoid downtime and minimize the risk of technical issues.

Marketing and Promotion

Marketing and promotion are crucial components of successfully running a Piso Wifi Vendo business. Here are the steps involved:

  • Developing a marketing strategy Create a comprehensive marketing plan to promote your Piso Wifi Vendo business to its target market. Be mindful of factors like target audience, messaging, and channels when developing this plan. A mix of online and offline tactics, such as social media ads, email marketing, or print advertisements, may help reach potential customers more efficiently.
  • Creating a brand identity Create a brand identity for your Piso Wifi Vendo business that expresses your values and resonates with its target market. This process could involve creating a logo, developing brand voice guidelines, or designing marketing materials consistent with this identity.
  • Pricing strategy Create a pricing strategy that’s attractive and competitive among your target market, taking into account factors like internet connection costs, maintenance and repair expenses, and profit margins when setting it.
  • Customer service and engagement Deliver impeccable customer service to keep customers returning for more of your Piso Wifi Vendo business. Provide 24/7 customer support, respond quickly to customer inquiries, address any issues as soon as they arise professionally, and engage with your audience on social media channels such as Facebook to build brand loyalty and foster an atmosphere of community spirit.

By following these steps, you can effectively market and promote your Piso Wifi Vendo business, attract customers, and build brand loyalty. Remember to always stay ahead of the competition by continuously adapting and monitoring your promotional strategies in response to changing needs of your target market.

Financial Management

Adequate financial management is crucial to the success and sustainability of your Piso Wifi Vendo business. Here are the critical steps in this process:

  • Tracking Sales and Revenue Monitor Piso Wifi Vendo sales and revenue to assess your business’s financial performance on an ongoing basis. Utilize analytics software tools to collect customer usage and revenue data, then utilize that analyze data to identify trends or potential areas for improvement.
  • Budget Management Adopting an expense and budget management system is crucial to maintaining profitability and the long-term viability of any business. First, keep an eye on expenses such as internet connectivity fees, machine maintenance, and advertising costs, then create a budget based on anticipated revenues and profit margins.
  • Accounting and Record-Keeping Accurate accounting and record keeping are crucial elements of running your Piso Wifi Vendo business’s finances efficiently. Use accounting software to monitor expenses and revenue while keeping detailed records of all transactions.
  • Expanding Your Piso Wifi Vendo Business Once your Piso Wifi Vendo business is up and running and generating steady revenue, consider scaling it further to increase profits and widen your customer base. This could involve adding more machines, expanding to new locations, or offering additional services like phone charging stations or printing.

Maintaining the finances of your Piso Wifi Vendo business properly will enable you to increase its profitability and sustain it long-term. Keep a constant eye on sales and expenses, keep accurate records, and use data-driven decisions as part of a data-driven decision-making process to keep your Piso Wifi Vendo business competitive and profitable.

Starting a Piso Wifi Vendo business can be a profitable and rewarding venture. By conducting thorough research, selecting an ideal machine and internet service provider, implementing security measures, developing a marketing strategy, managing finances effectively, and offering excellent customer service, you can build and sustain your enterprise over the long haul.

As previously outlined, key considerations when starting a Piso Wifi Vendo business include:

  • Understanding your target market.
  • Selecting an ideal machine and Internet service provider.
  • Creating a marketing strategy.
  • Properly managing finances.

With the increasing demand for high-speed internet connections and the rising popularity of convenient vending machines, Piso Wifi Vendo businesses are promising for entrepreneurs who hope to take advantage of this market and build successful enterprises.

If you are considering starting a Piso Wifi Vendo business, don’t be intimidated to leap into entrepreneurship. With careful planning, hard work, and commitment to providing exceptional customer service, you can build a profitable and successful Piso Wifi Vendo operation that meets the needs of its target market while making an impactful statement in your community.

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The Thrifty Pinay

Author & Keynote Speaker of Finance, Women Empowerment & Personal Growth; Empowering Women To Learn, Earn & Be Financially-Independent

How to Start a Piso WiFi Business: Everything You Need To Know

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By Rhea Trillanes

I’m sure you’ve seen those little machines with tiny blinking lights and metal coin slots. A large number has been around the Metro and it has also been gaining demand in the provinces in the past years. While you’re wondering how much they earn to be that popular, you’re next question could be: How do I start my own piso WiFi business?

So in this article, we’ll answer the following:

  • Steps on how to start a Piso WiFi Business in the Philippines

Does Piso Wifi need business permit?

  • Survey Questionnaire about Piso WiFi Business

Best internet plan for Piso WiFi

  • How to Price a Piso WiFi Business

Piso Wifi Business Supplier

  • How much can you earn
  • How to effectively market one

A Piso WiFi Business is a Passive Income Stream

I’m a huge fan of passive income. I mean, who isn’t? 

If you have secured investments or own property rentals, good for you! Those are some solid sources of passive income. While most of us do not have those kinds of investments (yet), we can explore the opportunities of earning some extra cash from a WiFi vending business. 

Why a Piso Wifi Business? For a number of reasons, setting up this kind of business is a perfect venture for individuals who do not have the time but have enough money for a small business. For people who do not have enough capital, there are other ways to fund the venture.

We will get to how to start a piso Wifi business after looking into a few key factors.

Piso Wifi goals and objectives

If you are yet to succeed in navigating the job arena in the Philippines or have a full-time gig but still want side income for future travels, life insurance or emergency funds , this is a read for you.

Does setting up a piso WiFi vending machine benefit people other than you? Of course, it does. 

Did you know that more than three-quarters of the Filipino population use the internet, but only 43% have access to a secured and reliable internet connection? 

In the Philippines, a monthly internet subscription can easily go over thousands of pesos. A lot of households do not have the financial capacity to squeeze it into their budget. Piso WiFi vending machines provide internet access to the masses. Pair your Piso WiFi with the latest router to ensure reliable, high-speed internet access for multiple users. Find all the best routers here: https://www.tp-link.com/ph/home-networking/all-gateways/

The goal is to set up a source of income for entrepreneurs who have an eye for great locations and for those who have limited choices in business ventures because of other commitments. (*Ahem, insert full-time moms here).

Before Starting on How to Start a Piso WiFi Business

Now that we have established the need for the internet and the gap in that need in the Philippines, you should do market research. All vending businesses, in general, are heavily reliant on the machine’s location. 

Before we start on how to start a piso WiFi business in the Philippines, let me expound on one critical ingredient to its success: LOCATION.

Location is the Key for the Piso Wifi Business

Some businesses can attract customers from far and wide due to their specialty products like ramen businesses or shoe warehouses. For a WiFi vending machine, unless you’re in an absolutely remote location with no other competitors in sight, it will never happen.

The best places would be restaurants, laundry shops, apartments, locations near a school, or a generally highly populated community.

Take into account the buying power of the neighborhood. Most middle-class earners have the capacity to subscribe to a monthly internet connection and won’t need a Piso Wifi machine.

One pro tip is to also consider foot traffic . If you have more vehicles going around than people walking in the streets, consider other locations. 

While market research is a big word, it can be as simple as asking around. It would be much help, though, to do surveys so you can validate your research with numbers. 

Sample of Survey Questionnaire about Piso WiFi Business

The scope of the survey just needs to cover your immediate local community. Again, unless there is no competitor in the area, limit the study to your street, block, or purok . 

Here are some same survey questions to include:

  • Do you have an internet subscription?
  • If yes, is it in your home or on a personal device (smartphone)?
  • How old are you?
  • What activities do you usually do on the internet? 
  • How many days do you use the internet in a week?
  • How many hours do you spend on the internet in a day?
  • What time of the day do you usually use internet access?

Now that I’ve laid down my case on the importance of location,  the next question would be how to start a piso WiFi business.

How to Start a Piso WiFi Business in the Philippines

There are two simple steps on how to start a Piso Wifi Business. First, secure all the requirements needed, and second, kick off the business.

1. Piso WiFi business requirements: What you need to prepare 

As much as I want to answer this question with a yes or no, the answer is a big “it depends”. It depends on your annual gross income and location.

If we will base it on the income it generates, the rule that applies to a sari-sari store and other marginal income-earner businesses should apply as well. If your annual gross income does not exceed Php 100,000 or Php 8,333.33 per month, you don’t have to register or pay taxes.

While some barangays do not mind letting small businesses operate as is, there are some that might require businesses to register regardless of size. Be sure to ask your locale’s policy on this early on to avoid inconveniences later.

Another thing to consider is also if the machine is placed as an add-on service on an already existing business like a restaurant or laundromat. In this case, there is clearly no need to register it separately.

Stable and Secure Wifi Connection

Since you will be selling access to the internet, it’s crucial that you have a stable and secure internet connection. If you have an existing one, you can use that. 

Some would recommend upgrading to a business line or higher Mbps from the get-go, but I say as long as it meets the required speed, go with the existing plan first. You can test the speed yourself or ask customers if they experience any lags before you get an upgrade. The required speed is at 5mbps but most recommend 15mbps.

It only takes a steady flow of 100kbps for internet surfing, social media use, and seamless play for most online games but heavy usage like video streaming can use up to 3mbps. Do take note of this when choosing a plan. 

There are not a lot of internet providers that have both speed and real unlimited offers in the Philippines. Closely inspect small prints for internet plans that offer unlimited internet connection but indicate daily or monthly data cappings . Steer away from those.

Their plans start at 1,500 for up to 100Mbps internet speed. The installation fee is currently at 2,500 pesos and is subject to a 2-year lock-in period. 

There is no monthly data capping but among the three named alternatives in our list, have the most limited area coverage being only available to manila and nearby cities.

This cable TV provider has lite plans that have monthly capping, so be sure to choose unlimited fiber plans that start at 999 pesos for up to 20 Mbps. 

There will be an initial cash out for 1,799 pesos upon installation and additional fees for their premium plans. In addition to Manila and nearby areas, they are also available in Cebu and Davao. You can get a cable bundle with your internet line.

Among those on our list, PLDT has the highest location coverage although it is in the higher starting price range. Fiber plans start at 1,699 for up to 100mbps with no capping. 

It comes with a landline bundle. Installation charges vary greatly depending on location so it’s best to talk to your local agent. 

Local Internet Provider

If you are in a remote locale, chances are, these three companies are will not be an option for you. Ask around for local internet companies to find one that can cover your area. 

Be informed of their plan inclusions so you can be clear on expectations. One upside on this is that they are easier to reach in case of connection problems.

Power Source

This requirement is as simple as it sounds. Until someone invents an alternative source that can produce a steady flow of power or store it effectively in the Philippines, this will be electricity.

Piso Wifi Vending Machine

There are tons of packages to choose from, but I chose mine with three things in mind: Cost, quality, and after-sales. 

The machine itself can cost anywhere from Php 8,000 to Php 30,000 depending on the model and additional installations. Be sure to ask about the range of the WiFi and user limit, if any. Ask for a warranty and keep the vendor’s contact number.

Enough Space for Customers

Some piso WiFi vending owners can get away by using a narrow sidewalk or a plant box as space for their customers but this is unsafe and inappropriate. It’ll be wise to set up a more suitable place for internet users to stay.

The cost can range from a few hundred for simple wooden stools to a few thousand for a roof and some sturdy benches. The sitting area for Centro WiFi Zone cost me a little over 4,000 pesos for labor and materials. 

Security Precautions

A cage is usually offered in addition to the machine for better security. I had one installed for mine and didn’t expect it to be useful in the first week. Somebody tried to knock my machine off the wall, luckily it was sturdy and the tanods took the person to the barangay promptly. We also installed additional solar lights and planning to add a cctv later on for the customer’s safety as well. 

2. Get Started

Once you have completed all the requirements, it’s mostly just plug, play, and collect from here onwards. You can start your own Marlo Wifi or Inday Piso Wifi straight away.

Operating Expenses

Basic operating expenses will include electricity consumption which would be around Php 200-300 pesos a month plus the monthly internet subscription. In my case, I also pay a minimum wage to the person who collects and counts the sales for me. 

Additional expenses would be incurred in case of machine maintenance and breakdowns which would rarely happen.

A few tips 

  • Set up a regular schedule for collection. It’s important to monitor sales so you can understand trends and adjust if needed.
  • Keep a lot of coins with you for your customers who only have paper bills. You wouldn’t want to have them asking around for loose changes as they can also get snatched away by competitors this way. 
  • Master the art of small talk, just really, really small talks. “Is the internet doing fine?” or “You should move here, the rain will pour soon”. This might be a passive income source but it wouldn’t hurt to build some customer loyalty.
  • Get a reliable technician. In most cases, he is the same as your installer. If not, be sure to have someone knowledgeable in case your machine breaks down. There is usually a month’s worth of warranty that comes with the piso vending machine.

In my case, were lucky to have Kuya Quebin offer free checkups and guide us through simple configurations. He was the one who installed our machine and has been really accommodating since we started.

Piso Wifi Business Plan: How to Price

The default price settings that are programmed in the machines are usually:

  • 6 minutes for 1 peso
  • 1 hour for 5 pesos
  • 3 hours for 10 pesos
  • 5 hours for 15 pesos

These numbers can be adjusted, ask your installer so they teach you how.

You can set prices for vending machines the way you price other services and products. Analyze the costs and know your target market. It is advisable to adjust your rates once you have a better understanding of your customers’ needs. 

There are several factors for price adjustments. If your neighborhood has a high number of internet users for short activities like paying bills, up the minimum rate a little bit. If it’s games and social media, consider offering a whole-day price that is enticing and affordable.

How to market a Piso Wifi business in the Philippines

There are a number of ways to promote your business online . The one most suitable for this kind of business is social media marketing. It is cost-effective and makes targeting a specific area possible. 

You can also do promos like what Jenny Piso Wifi does to attract more customers. Giving free day passes and an extra hour of connection is a surefire way of earning some cookie points.

Advantages and Disadvantages of Piso Wifi Business

The piso WiFi vending business has a very simple business model and has amazing income potential. It requires minimal effort to maintain and gives you more time to fulfill other commitments.

There are not a lot of cons to this type of business but if I have to mention one, it will be the high dependence on location. It’s a hit or miss so it’s in your best interest to study up on your market before deciding where to place it.

Canvas the price of packages online, and then find the best ones that are similar but near you. Reason for this is because machines are mostly manufactured the same, but the maintenance and after-sales services (very important) will be better negotiated if your installer is near.

Piso WiFi Business Income: How much can you earn?

A single piso WiFi machine can earn you anywhere from Php 5,000 to Php 15,000 in a month. Daily sales can go down to 200 pesos or high as 1,000 pesos. The wide gap in potential income is due to it highly relying on the vending machine’s placement. 

The Potential of a Piso Wifi Business

Amidst inflation and stagnant wages, budgeting living costs can be really challenging. One way to improve the situation is to increase your income streams .

How to start a piso WiFi business in the Philippines is relatively easy and is a potentially lucrative business especially nowadays where there are not many low start-up capital ventures that can give you the same flexibility and potential earnings. 

Related Posts:

  • How To Price Your Services in the Philippines (w/ Examples)
  • How to Compute & Price Food Products (w/ example) Philippines
  • How to Prepare an Income Statement Philippines (w/ Example)
  • How to Make a Balance Sheet Philippines (with example)

Rhea Trillanes is a writer of The Thrifty Pinay, an entrepreneur, and a proud mother & wife to a family of three in the Philippines. Her background in business and accounting makes her the perfect pro-bono business consultant for family and friends. She spent 10 years in corporate before discovering the world of freelancing. She writes articles and business proposals in the wee hours of the night. When not absorbed in writing, Rhea enjoys reading mangas and exploring money-making breakthroughs.

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A Guide to Understanding Piso WiFi: 5 Things You Need To Learn About Piso WiFi

Piso WiFi is very popular in the Philippines right now. Piso WiFi is a unique business model that lets you share your extra Internet connection with others who cannot afford a personal connection. It can be very profitable, but it's important to understand how this system works before investing in one. 

For those who still don't know what piso WiFi is or how it works, this guide will help you understand piso WiFi better so that you can decide if it's the right fit for your business too!

What Is Piso WiFi?

The term Piso WiFi is a portmanteau of "Piso," which means one peso in the Philippines, and "WiFi."

The Piso WiFi business model allows customers to pay for internet access with a small amount of money rather than making them subscribe to expensive plans offered by telecommunications companies like Globe Telecom or Smart Communications. Customers can purchase internet access for as little as 20 pesos, granting them unlimited data usage until midnight that day.

Piso WiFi As Your Small Business In The Philippines.

Piso WiFi is a self-service coin-operated Internet system that caters to people trying to stay connected to the internet while on the go. Piso WiFi offers free WiFi access and a fast internet connection, and all you have to do is pay ₱1 per hour or ₱20 for 5 hours!

It's possible to operate a Piso WiFi for just 2,000 pesos a month as capital, and it could already generate up to 40,000 pesos in revenue. As a business owner, you have to have enough capital so you can scale your Piso WiFi business by installing more computers in public locations and charging for WiFi use.

You'll Need To Operate Your Piso WiFi In Accessible Locations

You will need a building or accessible location where you can put some network equipment and computers for your customers to use. They can also use their smartphones when connecting to the internet using your Piso WiFi machine. If you don't have any space available on your property and don't want to build anything from scratch, you can find an existing location elsewhere and rent it out for this purpose.

Having a great location is crucial for any business to survive. Make sure that there is enough foot traffic in the location where you will put your Piso WiFi device. It will do well in markets, jeep or bus stops and even in schools.

With an operational Piso WiFi business on an accessible area that  modem WiFi  can cover, there is unlimited potential for growth. 

Operate Anywhere 

The beauty of Piso WiFi is that it can be used at any location with an electrical outlet. But the more people using your service, the more electricity you need. In addition, many other factors come into play when determining how much money you will make with Piso WiFi. There are some risks, however, like your devices being stolen. Make sure you do your research well before deciding where to put your Piso WiFi machine.

How Does It Work?

Piso WiFi is a business that uses coin-operated computers located in areas where many people have access but aren't able to afford an Internet connection.

It offers internet access to customers of businesses or organizations that install a WiFi hotspot on their premises. This could be preferable for owners of other businesses nearby, as they don't have to sign up for expensive internet plans that usually comes with terms that include a lock-in period of at least two years.

More About Piso WiFi

Piso WiFi is a business model developed in the Philippines and it allows people to share their internet connection with other users around them.

Piso WiFi works by connecting a router to prepaid electricity meters, which allows it to be powered on at all times. The router shares its data connection with nearby users for an hourly fee of PHP 10.

Using software created for the purpose of sharing a timed internet connection, you can set up the timers based on the value of a coin or denomination used by customers.

Expertise In WiFi With TP Link

The Piso WiFi business model is a great way for people to earn income without investing in expensive equipment or technology. It's also very easy for anyone who wants to start up their own business from home or anywhere else where there's access to electricity and space for computers.

When it comes to reliable WiFi,  TP Link  comes to mind. With over 10 years of experience in serving WiFi and technological solutions, TP Link is the world's #1 provider of consumer WiFi networking devices.  Get online with TP-Link now!

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Pisonet Business: Everything You Need to Know!

Pisonet business

Before you even think about starting this kind of business, you should first understand how it works.

Basically, one Pisonet unit uses a normal PC system which consists of:

  • And the vending machine

The way this works is that users will insert a 1 peso coin (or 5 peso coin for others) into the coin hole.

Then, the user can use the computer for a limited amount of time, usually 5 minutes for 1 peso.

When you think about it, it’s just like your normal internet café business except that this is the more stingy version.

Filipinos seem to like buying things in “tingi tingi” or small amounts. Just look at how we love to buy shampoos in sachets in sari sari stores!

This is probably one of the reasons why the Pisonet business is such a huge success.

Pisonet vs. Traditional Internet Cafés

If you’re wondering why you should start a Pisonet business instead of the traditional internet café ones, here are some comparisons.

Pros of Pisonet

  • Easy to maintain because the operation is self-service. You don’t need to manually turn on the computer, once the customer inserts a coin, it automatically logs in.
  • Your cash is more secured because it’s locked in the Pisonet units themselves. Only the keyholder can open the machine to collect the coins.
  • On the part of customers, it’s cheaper because they can pay by the minute. Unlike in internet cafés where if you exceed even just a minute, you’ll need to pay the whole block of time.
  • Your PC is more secured because Pisonet monitors typically are encased in a vending machine with a glass front.
  • Easier to manage as a business owner.

Cons of Pisonet

  • You’ll need to have a lot of coins on hand as your customers may not have coins readily available all the time.
  • Your computer units will easily have more tear and wear because there are many different users in a day.
  • You may encounter fraudulent customers who will say that they already put coins in the slot machine but are just lying.

After seeing the pros and cons of a Pisonet business from a traditional internet café, it’s all about your preference.

If you don’t want a lot of coins as your income, you should consider starting a traditional internet cafe.

But if you’re looking to start an affordable and trendy business, Pisonet is your business!

How Much Does it Cost to Start a Pisonet Business?

Pisonet business cost

Now we’re going to get down on business.

For would be business owners, this part is one of the most important aspects.

So, I will provide you with all the necessary numbers and details you’ll need when starting your own Pisonet business.

First, let’s individually calculate how much the equipments and the other expenses cost.

Pisonet Box

The Pisonet box is the vending machine box that your PC will be encased in.

There are do-it-yourself YouTube videos out there to help you if you don’t want to pay for this.

Check out this YouTube tutorial video for creating your own Pisonet box.

But for those who don’t want the hassle of creating one, they usually sell for around ₱1,000 to ₱5,000 each.

Of course the price may vary by the type of the case but the box usually includes the coin slot and timer.

As for the computer set itself, the cost depends on what you’re tying to accomplish.

If you’re looking to setup a simple Pisonet business, the cheapest brand new pc set can go for as low as P10,000 per unit.

These PC sets can typically run most simple programs such as Microsoft apps, Google Chrome, and other things.

But if you want your customers to be able to play games in your shop, you need to invest a fair amount of money.

The price per unit can start from P15,000 all the way to 6 digits!

Internet Connection

It goes without saying that you can’t start an internet café business without internet connection.

There are a lot of internet providers out there but there are 3 main networks to choose from: PLDT, Globe and Converge.

Depending on you, you can already subscribe to an internet package of P1,600 for 5 mbps speed.

But if you want to attract premium gamers, you may need to subscribe to a higher speed internet package minimum of 25 mbps.

Airconditioner

Most internet cafés nowadays have airconditioners.

Aside from the fact that it keeps your customers cool, it will also help your computer units to have a longer life.

The cost of the aircon will depend on the total area of your shop as well as the prices in your area.

But generally speaking, aircons with 1 horsepower costs ₱10,000 up.

Permit Fees

Of course, you can’t forget to get your business permit.

You’ll also need a barangay permit and/or, municipality/city permit.

As for the cost of these, it varies from place to place.

Most small Pisonet businesses owners usually manage their own shops.

But for some who don’t have the time to do so, you can hire some attendants to manage the shop.

Depending on the size of your Pisonet shop, you may need one or more.

Also, the monthly salary of your shop attendant depends on you and the minimum wage on your area.

But ₱7,000 a month is already generous for a small Pisonet shop.

There are other costs in starting a Pisonet business that were not discussed in here such as the electricity, maintenance and the rent.

But generally spearking, you’re looking at a cost of ₱100,000 upwards in starting this business.

Of course this depends on a lot of factors as we mentioned above but this is a good estimate.

But if you want to save time and money, there are a lot of businesses out there that offers Pisonet business packages for the units only.

They can cost around ₱70,000 for 5 Pisonet units. But there are other packages that costs higher.

How Much Can You Earn from a Pisonet Business?

As for the income, this varies a lot depending on a lot of factors.

But for the sake of this article, let’s assume some things and calculate your expected profit.

Assuming you have 8 Pisonet units and you operate for up to 8 hours per day.

Typically, a user can get 5 minutes for ₱1.

Daily income: ₱1 X 8 hours = ₱96 X 8 units = ₱768

Monthly income: ₱768 X 30 days = ₱23,040

Of course, this is just the gross income.

You’ll still need to deduct your expenses such as your electricity, internet connection, worker salary (if any), and maintenance.

How to Start a Pisonet Business

Just like any business, you also need to consider and do a lot of thing before you start a Pisonet shop.

Here are the steps:

  • Create a business plan – In any business like this one, you need a plan. A business plan outlines all you need to evaluate the profitability of your proposed business. If you don’t know how to do one, you should probably hire someone who knows how to. But in general, a business plan contains the overview of the business, expected profitability, risks, target customers and more.
  • Get necessary permits – Just like in any business, you’ll need to secure business permits to start your Pisonet business. Be ready to have all the necessary documents so you don’t have to go back and forth at the government offices.
  • Buying your equipment – The next step is buying your equipment. Ideally, it’s good to inspect the items you’ll be getting before you buy them. As much as possible, buy your needed equipment in bulk direct from the supplier. Also, don’t forget to ask for discounts!
  • Setting up your Pisonet business – This is where you’ll set everything up from the computer units to the place itself. Be creative and create an environment that represents your business.
  • Start your Pisonet business! – After completing all the steps above, finally you’re ready to open your Pisonet business to the public! It’s always a good idea to have an opening promo and to have flyers and banners. This way, you’ll attract a lot of customers.

How to Get Capital for Your Pisonet Business

Funds for pisonet business

You’re excited to know all about the potential income for a Pisonet business.

The only problem is, where will you get your funds?

Well, here are the ways you can do so:

If you are a responsible person who consistently saved, now is the time to use your savings!

However, you shouldn’t use all your life savings to gamble in your business.

You need to think about this carefully and leave at least some for emergencies.

Ideally, you should combine your savings with some other things below.

Starting a business is usually a good reason to get a loan.

If you have relative and friends that are willing to lend you money, do so.

But if not, you can try to apply for bank loans.

But you need to keep in mind the interest rates as well as the contract terms when you apply for bank loans.

They can get pretty high!

Extra Income

If your savings aren’t enough and you can’t get loans from your relatives or the banks, get an extra income.

You can try working at home as a freelancer. You can do this on your spare time if you have a full-time job.

Read this: How to Work at Home in the Philippines (Even as a Newbie!)

Or you can get a second job if you are willing.

But there are tons of side hustles out there that you can also try so you can raise a bit of cash.

Read these: 21 Ways to Make Money Online in 2020 That You Should Do Now!

How to Earn Money in GCash (Ultimate Guide!)

Partners & Investors

Lastly, you can always ask investors or partners to start the business with you.

When you enter a partnership with people you trust fully, the expenses are divided among you.

Or, you can ask your relatives or other people to be investors in your Pisonet business.

You’ll give them a share of the profit monthly but it’s worth it if you can still net a large sum!

List of Pisonet Suppliers

If you’re looking for ready-made Pisonet packages you can buy, here are the list of suppliers.

Of course, it’s always a good idea to inquire first in your area if there are any suppliers around.

Otherwise, here are the list:

  • Cheapid Computer
  • iCafeBusiness

To add to this list, you can always search in Google or Facebook for other suppliers.

Just be sure to check their reviews first so you won’t get scammed.

Top Tips to Have a Successful Pisonet Business

piso wifi business plan pdf

Starting any business always involves a lot of risks.

You can get completely overwhelmed when starting a Pisonet business especially if this is your first venture.

But don’t worry, here are our top tips to help you:

Be prepared – As with anything in life, you’ll have a higher chance of success if you’re prepared.

Being prepared means having all the necessary funds, creating a business plan, and having the necessary knowledge.

You don’t necessarily need to be an I.T to have a business like this but a basic knowledge will help a lot.

Take care of your computers – You need your computers to always be at top performance to accomodate your customers.

To achieve this, you need to have antivirus software installed.

You also need to learn how to maintain your computers such as shutting them down properly.

By doing so, you are preserving the life of your units so you can cut down your maintenance costs.

Maximize your earnings – Aside from your computers, you should also have other income sources.

Most often, your customers will need to print some documents.

Having printers, can mean extra income on your part.

You can offer to scan, photocopy, print, or laminate the documents of your customers!

Invest in high internet speed – In the Philippines, internet connection is generally slow.

Since your business is on computer usage, you should consider investing on a high-speed internet connection as much as possible.

This will ensure high-quality service so your customers will come back every time.

Trust me when I say that bad internet connection, is enough to turn off a customer!

Location, location, location! – Before you even think of putting up a Pisonet business, you should already have a good location in mind.

Ideally, your shop should be somewhere near universities or places with a lot of people.

Or if you want to establish it in your street, ideally you should be the only one with an internet cafe business on that street.

This way, you get all the customers!

Final Thoughts

As you can see, starting a Pisonet business can be extremely profitable.

But only if you know what you’re doing. By reading this blog, you’re already on the right path!

I hope this article helped you in some ways.

Are you planning on starting a Pisonet business soon? Let me know in the comments!

Read these next:

  • Food Cart Business: Beginner’s Guide (Plus Top 9 Ideas)
  • How to Start A Successful Internet Cafe Business
  • 14 Things You Need to Start a Sari Sari Store Business

Jerico Saquing

Jerico Saquing

Jerico is the founder of Peso Hacks. He's also a freelance writer who specializes in topics related to finance, travel and games. In his spare time, he likes to watch anime, play mobile games and read books.

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piso wifi business plan pdf

Great guide! You should also add a piso wifi machine in your shop para dun sa gustong sa phone lang maglalaro. Maraming nagbebenta dyan online (builder po ako) pero pwede din kayo gumawa ng DIY na machine. Sa gustong mag try, check nyo Ado https://www.adopisoft.com/ para sa guides kung pano mag DIY.

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PISO WIFI VENDING MACHINE.

Start your own business now with piso wifi vending machine..

Start your own business with our wifi vending machine that can give you good potential return because internet now a days is necessity for everyone. Most of us have smart phones but not everyone can avail 3G plan because it is expensive. It is an opportunity for you to put up a business with a little capital that will give you the ROI for less than a year.

Key Specifications

​ No username or password simply tap and your ready to go

Housing Material: ABS plastic WAN Interface: 1X RJ45 Port Antennas: 1 X Wi-Fi(Built-in) LCD: 4-line, 128X64 pixel, backlight supported, shock resistance > 4,000N

What’s in the box?

1 x Buzz Wi-Fi Manual 1 x Power Brick 1 x Buzz Wi-Fi Unit

Features: Brand: NEXT Antennas : 1 Specifications Table : PLACE ON FLAT SURFACE

Temperature 5⁰C to 45⁰C (operation)/ -10⁰C to 60 ⁰C(storage) Humidity: 10% – 85% non-condensing

Model : Next Technologies Philippines-Bzz-A001 Network : 3G Ports : 1 Size (L x W x H cm) : 31 x 24 x 41 Warranty policy (optional) : 3 months manufacturing warranty includes replacement of parts 1 year service warranty

Weight (kg) : 4

Please note that the warranty may not cover normal wear and tear, excessive abuse or misuse or any instructions provided by the manufacturer, supplier, and/or seller that was not followed by the user that may cause the warranty to be voided. Warranty type : Local Manufacturer Warrant

HOW DOES THE PISO WIFI VENDING MACHINE WORKS?

1.  (TAP-CONNECT-INSERT COIN) Customers will only tap their CP to wifi vending machine. Connect the wifi (wifi name). Insert coin as their payment and then they will be automatically have internet connection. It will stop when the time they purchased is done. 2. Payment can be set according to your preference (sample 10 pesos per hour or 1 peso for 5mins etc.) it can accept 1 peso, 5 pesos and 10 pesos even newest coins. Just indicate in the order form. 3. WiFi name can be set as your business name. Just indicate in the order form. 4. No need for employee to manage 5. It can accomodate maximum 100 users at same time 6. Wifi range is 100 meters you can also extend by providing wifi extender. 7. Have passive income everyday from 500 pesos to 3k pesos depending on the place and pricing. 8. You can monitor the sales online through your account via NMS (yearly premium). Through NMS you can also configure the machine (change wifi name and pricing). Laptop can also connect via voucher system. 9. We have technical support to help you out

LOW CAPITAL FASTEST ROI SELF-SERVICE USER FRIENDLY DURABLE & OUTDOOR FRIENDLY PLUG AND PLAY TO ANY FIBR NO FRANCHISE FEE / ROYALTY FEE FREE SHIPPING NATIONWIDE

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PisoWifi

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You just have to place it to a feasible area that people stays for 30 mins (Restaurant, computer shop, laundry shop, dormitory/apartment or community with high population, near schools)

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Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Wi-Fi Kiosks Business Plan

Start your own wi-fi kiosks business plan

Executive Summary executive summary is a brief introduction to your business plan. It describes your business, the problem that it solves, your target market, and financial highlights.">

Stroll Net will provide a unique forum for communication and entertainment through the medium of public Internet access. In the first year, we will set up 16 Internet-enabled pay-kiosks in public spaces throughout Tech City, in locations frequented by business travelers and students, but with no nearby internet cafes or other similar competition. Our flagship location will be next to the downtown bus and train station, where, for less than a dollar, travelers can check email, locate phone numbers, and look up directions on any of the multiple online-mapping sites. They can also simply surf the net, as their time and budget allows. By accepting both real money (coins and dollar bills) and credit cards, we can catch both the casual browser and the traveler with money to burn.

Stroll Net is the answer to an increasing demand. Americans want access to the methods of communication and volumes of information now available on the Internet, at a cost they can afford, and in such a way that they aren’t confined to a bedroom or office desk. Stroll Net’s goal is to provide the community with a convenient and affordable way to access the Internet away from home and the office.

This business plan is prepared to obtain financing in the amount of $299,671. The supplemental financing is required to begin the purchase of public Internet terminals, the purchase of an office warehouse, office equipment and supplies and company vehicles, and to cover expenses in the first year of operations. Additional financing has already been secured in the form of $10,500 of personal savings from owners Cam Piotr and Bob Green, and a long-term loan of $100,000.

Stroll Net will be incorporated as a Limited Liability Corporation. This will shield the owners, Cam Piotr and Bob Green, from issues of personal liability and double taxation. The investors will be treated as shareholders and therefore will not be liable for more than their individual personal investment of $5,250 each.

The financing, in addition to the capital contributions from the owners, will allow Stroll Net to successfully open and maintain operations through year one. The large initial capital investment will allow Stroll Net to provide its clients and customers with the most innovative public Internet terminal available. A unique and innovative product is required to provide the customers with a service that is insurmountable by any competition. Successful operation in year one will provide Stroll Net a customer base that will allow it to be self-sufficient in year two.

For an investment of $299,671, we project dividends of $100,000 in year two, and $200,000 in year three, depending on cash flows. These projections are based on actual business revenues from similar start-up customers of our internet kiosk supplier in other states. In the first year, with a break-even point of $42,599 per month, we expect revenues of $727,072 and net profit of 18.5%, or $134,305. By year three, revenues will increase to $1,136,067, and the net worth of Stroll Net will increase to $610,320. Dividends thereafter will depend on cash flows; in year five, investors will have the option of being bought out by the company owners.

1.1 Mission

As the popularity of the Internet continues to grow at an exponential rate, easy and affordable access is quickly becoming a necessity of life. Stroll Net will provide internet users and business travelers alike the ability to access the Internet, via our public Internet terminals or a wireless WiFi connection away from home and the office. For a minimal fee, internet users, young and old, will be able to access the internet while they stay in hotels, wait at airports, shop in shopping malls and so on.   

We look to be the leader in introducing an innovative and quality public Internet terminal to our current market. We will add value to our community by maintaining a quality product and providing a valuable service. Our terminals will utilize the most advance technologies and our staff will possess the utmost in customer service experience.   

1.2 Keys to Success

As a start-up company, new to the industry, we must be focused and work hard to create an acceptance for ourselves and our products and services within the marketplace. The keys to our success are:

  • The placement of an innovative product and quality service that is able to both expand existing markets and create new ones.
  • A steady, disciplined pattern of growth.
  • The development of a good relationship with clients and customers.

1.3 Objectives

Stroll Net’s objectives for the first year of operation include:

  • The placement of 100 public Internet terminals operating throughout the North MyState area.

For the following two years our growth objectives includes:

  • A growth in public Internet terminals placed by 20% each year.
  • A growth in revenues by 25% per year.  

The risks involved with starting Stroll Net are:

  • Will the cost of accessing the Internet from home drop so significantly that there will not be a market for public Internet terminals?

Wi-fi kiosks business plan, executive summary chart image

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Stroll Net, soon to be located on the south side of Tech City, MyState, will offer the community convenient and affordable way to access the Internet away from home and the office. Stroll Net’s public Internet terminals will provide full access to email, video email, the Web and other applications, such as a prepaid storefront. Stroll Net will provide clients and customers with a unique and innovative product and service.

Stroll Net’s public Internet terminals will appeal to individuals of all ages and backgrounds. The ease-of-use and instructional menu will appeal to the audience that does not associate themselves with the computer age. Great locations, such as hotel lobbies and coffee shops, will provide business people with a convenient way to access the Internet and office files away from the office.

2.1 Company Ownership

Stroll Net is a privately-held Limited Liability Corporation. Cam Piotr and Bob Green, co-founders of Stroll Net, hold equal stock positions of 26% each as majority owners. Investors will receive one share of Stroll Net stock for every $6,244 of investment, up to 48%.

2.2 Start-up Summary

Stroll Net’s start-up costs will cover the purchase of public Internet terminals (our long-term assets), the purchase of an office warehouse, office equipment and supplies, company vehicles, capital to cover losses in the first year, and capital to cover any and all expenses required to operate business on a daily basis for the first year.

Pro Tip:

In addition, we plan on a large initial marketing/design budget, to cover the kiosk design and grand opening advertising.

Wi-fi kiosks business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Marketing/Advertising $4,000
Design Fee $14,100
Freight $6,250
Utilities $500
Professional Fees $1,500
Insurance $1,500
Supplies $500
Postage $111
Total Start-up Expenses $28,461
Start-up Assets
Cash Required $60,000
Other Current Assets $11,400
Long-term Assets $312,810
Total Assets $384,210
Total Requirements $412,671
Start-up Funding
Start-up Expenses to Fund $28,461
Start-up Assets to Fund $384,210
Total Funding Required $412,671
Assets
Non-cash Assets from Start-up $324,210
Cash Requirements from Start-up $60,000
Additional Cash Raised $0
Cash Balance on Starting Date $60,000
Total Assets $384,210
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $2,500
Other Current Liabilities (interest-free) $0
Total Liabilities $102,500
Capital
Planned Investment
Mr. Cam Piotr $5,250
Mr. Bob Green $5,250
Additional Investment Requirement $299,671
Total Planned Investment $310,171
Loss at Start-up (Start-up Expenses) ($28,461)
Total Capital $281,710
Total Capital and Liabilities $384,210
Total Funding $412,671

Products and Services

Stroll Net’s public Internet terminals will provide customers full access to email, video email, WWW and other applications such as a prepaid storefront. Stroll Net will provide clients and customers with a unique and innovative product and service.

3.1 Product and Service Description

Walk-up Internet Access: Customers pay with either cash or credit card and receive a specific amount of time on the terminal in exchange for their payment. Customers can surf the Internet, check email and send video email.

Wireless Internet Access: Away from the home, WiFi users can access the Internet through our Wireless Hotspots.

Prepaid Storefront: An application that allows customers to purchase products such as Prepaid Calling Cards, Prepaid Wireless Top-up, and Prepaid Mobile Content (games, graphics, ring tones, etc.).

Multimedia Advertising: Local, regional, or national companies can advertise using multimedia on-screen advertisements. Advertisements consist of full motion video “commercials,” picture files, or twelve advertising buttons.

Wi-fi kiosks business plan, products and services chart image

Technical Specifications

  • Wheelchair Accessible
  • Front access for easy service and maintenance
  • 15.1 inch touch screen LCD monitor
  • Industrial spill and vandal proof keyboard
  • Web Camera with integrated microphone
  • Bill Acceptor and Credit Card Reader
  • Stereo Speakers
  • Wireless Router
  • Surfnet Premier

PC Specifications

  • 2.4GHz Celeron Processor
  • 40GB hard Drive
  • 256MB DDR-RAM
  • Floppy Drive
  • Windows XP Professional
  • 3-Year Hotswap

3.2 Competitive Comparison

Stroll Net will be first to place public Internet Terminals in Tech City. Stroll Net will differentiate itself from other ISPs in Tech City by providing its customers with the ability to access the Internet even when they are away from their own computer.

We do not expect to replace standard internet access options (home, school, and work-based computers), but to supplement them; similar ventures, such as Internet cafes, have seen great success.

3.3 Fulfillment

Stroll Net will obtain its public Internet terminals from Supplier One, Inc. located in Vancouver, BC. Supplier One, Inc. will provide the locating service and the hardware required to run Stroll Net. Internet access and networking will be provided through Supplier Two.

3.4 Technology

Stroll Net will invest in terminals with high-speed computers to provide its customers with a fast and efficient connection to the Internet. The computers will be reliable and fun to work with. Stroll Net will continue to upgrade and modify the systems to stay current with communications technology. One of the main attractions associated with public Internet terminals is the state of the art equipment available for use. Not everyone has a Pentium PC in their home or office.

3.5 Future Products and Services

To enhance our initial product line, we will look at a newer model of Supplier One terminal that offers a greater variety of technologies.  

As we increase our presence in the public Internet access business, we will continue to seek out applications that will allow us to offer a greater variety of services. A key component of this will be customer feedback.  

Market Analysis Summary how to do a market analysis for your business plan.">

Stroll Net is faced with the exciting opportunity of being the first-mover in the Tech City public Internet market. The attractiveness of convenience, combined with the growing interest in the Internet, has been proven to be a winning concept in other markets and will produce the same results in Tech City.

The explosion of the Internet has been well documented. The International Data Corporation predicts that by 2004 there will be 210 million Internet users in the U.S. alone. Our increasingly mobile society manes that a large percentage of these users will access the Internet through public Internet terminals. 

Research has confirmed that the demand for public Internet terminals is growing exponentially and that the number of terminals in operation worldwide will reach 434,000 by 2006. By 2007 the number of wireless Hotspots in the U.S. is expected to grow to 41,000 and generate in excess of $3 billion in revenue.

4.1 Market Segmentation

Stroll Net’s clients can be described as individual business owners and medium to large companies that provide a services to tourist and business travelers alike as well as students and everyday Internet users. Such clients include, but are not limited to; airports, hotels, truck stops and coffee shops. 

Our customers can be divided into two groups. The first group is familiar with the Internet and desires a convenient and affordable way to access the Internet away from home and their offices. The second group is not familiar with the Internet, yet, and is just waiting for the right opportunity to enter the online community. Stroll Net’s target market includes people between the ages of 18 and 65. According to the 2000 U.S. Census, Tech County has roughly 490,693 residents between the ages of 18 and 65. Of these, many are already internet-savvy.

Within this group, we will target two groups in particular:

  • Traveling Business People

Wi-fi kiosks business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Students 2% 35,000 35,700 36,414 37,142 37,885 2.00%
Traveling Professionals 3% 24,000 24,720 25,462 26,226 27,013 3.00%
Other 0% 900 900 900 900 900 0.00%
Total 2.38% 59,900 61,320 62,776 64,268 65,798 2.38%

4.2 Service Business Analysis

The explosion of the Internet has been well documented. Our increasingly mobile society means that a large percentage of these users will access the Internet through public Internet terminals. To be proactive and remain competitive it is imperative for business travelers to have reliable high-speed access to e-mail, the Internet and corporate networks. As such, it is becoming a standard for business travelers to stay only at hotels with high-speed Internet access and public Internet terminals.

Internet terminals with integrated Wi-Fi hotspots allow users to jump onto the Internet as easily as they would use an ATM. Our Internet terminals allow the public to experience rich multimedia content, that cannot be viewed on PDAs. Internet kiosks will very quickly become a standard feature of all hotels. The growth of Internet kiosks has very closely paralleled that of ATMs and payphones.

The fact that there are no public Internet terminals operating in Tech City, presents Stroll Net with a chance to seize this window of opportunity and enter into a profitable niche.

4.2.1 Competition and Buying Patterns

The main competitors in the public Internet terminal segment are ATT and BellSouth. However, these businesses have yet to establish a presence in Tech City and the immediate surrounding areas.

4.3 Target Market Segment Strategy

Stroll Net’s public Internet terminals will be a magnet for local and traveling professionals who desire to work or check their email messages away from the office. These professionals will either use Stroll Net’s terminals, or connect their notebooks to our wireless WiFi Internet connection. Stroll Net’s target market covers a wide range of ages: from members of Generation X who grew up surrounded by computers, to Baby Boomers who have come to the realization that people today cannot afford to ignore computers.

Strategy and Implementation Summary

The important strategy focuses on pulling in power Internet users. Power Internet users are extremely familiar with the Internet and its offerings. This group of customers include students and business professionals.

The second strategy focuses on building a large loyal customer base. A large loyal customer base will serve to attract large, medium and small companies as clients for our interactive advertising service.  All of the advertisements can connect the user to the advertiser’s web site. Due to the high traffic locations in which our public Internet terminals will be placed, this advertising space will be in high demand.

5.1 Milestones

The Stroll Net management team has established some basic milestones to keep the business plan priorities in place. Responsibility for implementation falls on the shoulders of Cam Piotr. This Milestones Table below will be updated as the year progresses using the actual tables. New milestones will be added as the first year of operations commences.

Wi-fi kiosks business plan, strategy and implementation summary chart image

Milestones
Milestone Start Date End Date Budget Manager Department
Business Plan 10/1/2004 11/15/2004 $1,000 Cam Piotr Admin
Licensing 11/22/2004 11/27/2004 $1,000 Cam Piotr Admin
Secure Start-up Funding 11/29/2004 1/1/2005 $1,000 Cam Piotr Admin
Site Selection 1/15/2005 2/20/2005 $1,000 Cam Piotr Admin
Architect Designs 3/1/2005 3/30/2005 $1,000 Cam Piotr Admin
Designer Proposal 4/1/2005 4/15/2005 $1,000 Cam Piotr Admin
Technology Design 4/1/2005 4/15/2005 $1,000 Cam Piotr Admin
Year 1 Plan 6/1/2005 6/9/2005 $1,000 Cam Piotr Admin
Personnel Plan 7/1/2005 7/5/2005 $1,000 Cam Piotr Admin
Accounting Plan 7/1/2005 7/5/2005 $1,000 Cam Piotr Admin
Totals $10,000

5.2 Value Proposition

WiFi hotspots offering public Internet access are everywhere you look today, from cafes to hotels, from airports to marinas. Connectivity is what travelers want, and more importantly, are coming to expect. Travelers are making decisions on where to eat, sleep and work based on the availability of wireless service.

Clients offering public internet access will be able to tap into new revenue streams and new customers, and create loyalty.

Stroll Net’s public Internet terminals make it easy to provide convenient and easy access to wireless high-speed Internet connectivity. With Stroll Net’s public Internet terminals customers will be able to connect to their corporate networks and the Internet via a high-speed wireless connection in common areas.

5.3 Competitive Edge

Stroll Net will differentiate itself by providing the community with an innovative product that offers a convenient and affordable way to access the Internet away from home and the office. Stroll Net will enjoy the traditional benefits of being first to the market. As a small company looking to establish itself, we will be attentive and flexible in meeting our customers’ demands. 

5.4 Marketing Strategy

Stroll Net will position itself as an aggressive, innovative company that supplies the market with an affordable way to access the Internet away from home and the office. Stroll Net will use advertising as its main source of promotion. We will acquire the services of Empire Communications Group and CyberMark International, Inc. to launch a diverse advertising campaign placed on television, radio, the Internet and in the local newspaper. 

Stroll Net’s brochures, letterhead and business correspondence will further reinforce these concepts. We also recognize that it costs six times more to attract a customer than to retain one. With this in mind, we will operate under the principle that our best marketing is an exceedingly satisfied customer.    

5.4.1 Pricing Strategy

Stroll Net bases its prices for Internet and wireless WiFi usage on the “retail profit analysis” provided by our supplier, Supplier One, Inc. They have been in the kiosk industry for 5 years and has developed a solid pricing strategy.

Determining a fair-market, per-transaction fee for Internet and wireless WiFi usage is more difficult because there is no direct competition from another public internet terminal business in Tech City. Therefore, Stroll Net considered two sources to determine the hourly charge rate. First, we considered the cost to use other Internet servers, whether it is a local networking firm or a provider such as America Online. Internet access providers use different pricing schemes. Some charge a monthly fee, while others charge an hourly fee. In addition, some providers use a strategy with a combination of both pricing schemes. Thus, it can quickly become a high monthly cost for the individual. Second, Stroll Net looked at how public Internet terminals in other markets, such as Miami and New York, went about pricing Internet access.  Evaluating these two factors resulted in the following:

Walk-up Internet Access – Customers utilizing the terminals for internet access will be charged a .25 per minute transaction fee.

Wireless Internet Access – Customers utilizing the wireless WiFi connection will incur a fee of $3.95 per hour with a one hour minimum.

5.4.2 Promotion Strategy

Stroll Net will implement a pull strategy in order to build consumer awareness and demand. Initially, Stroll Net has budgeted $5,000 for promotional efforts which will include advertising with coupons for fifteen minutes of free Internet time.

Stroll Net realizes that in the future, when competition enters the market, additional revenues must be allocated for promotion in order to maintain market share.

5.5 Sales Strategy

Stroll Net employs route operators to collect all sales transactions and to perform routine maintenance on its terminals. Each route operator is responsible for keeping the terminals on his route stocked, clean and operational. Computer literacy is a requirement for Stroll Net employees. If an employee does not possess basic computer skills when they are hired, they are trained by our full-time technician. Our full-time technician is also available for terminals in need of minor repairs. Stroll Net’s commitment to prompt, dependable service is one of the key factors that distinguishes Stroll Net from all other competitors.

5.5.1 Sales Forecast

Our Sales Forecast is based upon real revenue reports from other customers of Supplier One, operating in similar urban settings in nearby states. Prepaid products and advertising will yield the greatest revenue per unit, but we expect the greatest number of transactions will be in walk-up internet access and Wifi access.

Wi-fi kiosks business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
Walk-Up Internet Access 48,787 60,984 76,230
Wireless WiFi Access 23,092 28,865 36,081
Prepaid Products 19,677 24,596 30,745
Multimedia Advertising 5,854 7,318 9,147
Total Unit Sales 97,411 121,763 152,203
Unit Prices Year 1 Year 2 Year 3
Walk-Up Internet Access $3.00 $3.00 $3.00
Wireless WiFi Access $3.95 $3.95 $3.95
Prepaid Products $10.00 $10.00 $10.00
Multimedia Advertising $50.00 $50.00 $50.00
Sales
Walk-Up Internet Access $146,361 $182,951 $228,689
Wireless WiFi Access $91,215 $114,017 $142,521
Prepaid Products $196,774 $245,963 $307,453
Multimedia Advertising $292,721 $365,875 $457,344
Total Sales $727,071 $908,806 $1,136,007
Direct Unit Costs Year 1 Year 2 Year 3
Walk-Up Internet Access $0.60 $0.60 $0.60
Wireless WiFi Access $0.40 $0.40 $0.40
Prepaid Products $1.00 $1.00 $1.00
Multimedia Advertising $5.00 $5.00 $5.00
Direct Cost of Sales
Walk-Up Internet Access $29,272 $36,590 $45,738
Wireless WiFi Access $9,122 $11,402 $14,252
Prepaid Products $19,677 $24,596 $30,745
Multimedia Advertising $29,272 $36,588 $45,734
Subtotal Direct Cost of Sales $87,343 $109,176 $136,470

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Stroll Net is owned and operated by Cam Piotr and Bob Green. The company, being small in nature, requires a simple organizational structure. Implementation of this organizational form calls for the owners to make all of the major management decisions in addition to monitoring all other business activities.

6.1 Personnel Plan

The staff will consist of 8 full-time route operators working forty hours a week at $10.00 per hour. In addition, one full-time technician (who is more technologically oriented to handle minor terminal repairs/inquiries) will be employed to work forty hours a week at $12.00 per hour. This simple structure provides a great deal of flexibility and allows communication to disperse quickly and directly. Because of these characteristics, there are few coordination problems seen at Stroll Net that are common within larger organizational chains. This strategy will enable Stroll Net to react quickly to changes in the market.

Personnel Plan
Year 1 Year 2 Year 3
Lorenzo Mitchell $42,889 $49,680 $59,616
Herman Albany $42,889 $49,680 $59,616
Technician $25,920 $27,040 $29,120
Route Drivers $172,800 $183,040 $199,680
Future Staff $0 $0 $49,920
Total People 11 11 13
Total Payroll $284,498 $309,440 $397,952

Financial Plan investor-ready personnel plan .">

Sales: Stroll Net is basing their projected Internet usage sales on the financial snapshot information provided to them by Supplier One, Inc. Internet usage was estimated by calculating the average number of minutes each customer will spend accessing the Internet and then generating a conservative estimate as to how many transactions will be made per day.

Cost of Goods Sold: The cost of goods sold was determined by the “retail profit analysis” we obtained from Supplier One, Inc. The cost of prepaid calling cards is 20% of the selling price. The cost of Internet access is $50 per month, paid to Supplier Two for networking fees. The cost of terminal placement is 20% of total internet access sales.

Salaries Expense: The founders of Stroll Net, Cam Piotr and Bob Green, will receive a salary of $24,000 in year one, $26,400 in year two, and $29,040 in year three.

Payroll Expense: Stroll Net intends to hire eight full-time employees at $10.00/hour and a full-time technician at $12.00/hour. The total cost of employing nine people at these rates for the first year is $14,720/month.

Rent Expense: Stroll Net is looking to purchase a 2200 square foot facility at $104.74/sq. foot.

Utilities Expense:  Stroll Net is responsible for the payment of utilities including electric, water and garbage disposal. The basic monthly service charge for utilities expense will be $168.04. The phone bill will generated by five phone lines; one will be dedicated to a modem and four for business purposes. The basic monthly service charge for each line provided by Bellsouth is $59.95/month. Therefore, the total cost associated with the five phone lines is estimated at $299.75/month.

Marketing Expense: Stroll Net will allocate $50,000 for promotional expenses at the time of start-up. These dollars will be used for advertising on television, radio, the Internet and the local newspapers in order to build consumer awareness. For additional information, please refer to section 5.0 of the business plan.

Insurance Expense: Stroll Net has allocated $1,500 for insurance for the first year. As revenue increases in the second and third year of business, Stroll Net intends to invest more money for additional insurance coverage.

Legal and Consulting Fees: The cost of obtaining legal consultation in order to draw up the paper work necessary for client contracts is $1,500.

Depreciation: In depreciating our capital equipment, we used the Modified Accelerated Cost Recovery Method. We depreciated our terminals over a three-year time period.

Taxes: Stroll Net is an LLC and, as an entity, it is not taxed. However, there is a 10% payroll burden.

7.1 Important Assumptions

Basic assumptions are presented in the table below.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 11.50% 10.00% 10.00%
Tax Rate 25.00% 25.00% 25.42%
Other 0 0 0

7.2 Break-even Analysis

Break-even data is presented in the chart and table below. With estimated monthly operating expenses at approximately $37,400, including everything from payroll to rent and insurance to maintenance of the kiosks, and average direct costs at roughly 90¢ for every $7.46 of sales, we reach break-even at approximately 5,700 sales per month. We project reaching the break-even point in the seventh month.

Wi-fi kiosks business plan, financial plan chart image

Break-even Analysis
Monthly Units Break-even 5,166
Monthly Revenue Break-even $38,557
Assumptions:
Average Per-Unit Revenue $7.46
Average Per-Unit Variable Cost $0.90
Estimated Monthly Fixed Cost $33,925

7.3 Projected Profit and Loss

The following table contains our projections for profit and loss data. We anticipate a net profit of approximately $134,300 in the first year, as the Stroll Net idea catches on and sales increase. With a net profit margin of 18%, these projections are well within a reasonable range.

Wi-fi kiosks business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $727,071 $908,806 $1,136,007
Direct Cost of Sales $87,343 $109,176 $136,470
Other $0 $0 $0
Total Cost of Sales $87,343 $109,176 $136,470
Gross Margin $639,728 $799,630 $999,537
Gross Margin % 87.99% 87.99% 87.99%
Expenses
Payroll $284,498 $309,440 $397,952
Sales and Marketing and Other Expenses $53,598 $59,174 $68,279
Depreciation $44,676 $45,000 $45,000
Utilities $5,613 $6,174 $6,792
Insurance $1,500 $6,000 $7,500
Maintenence/Repairs $3,500 $4,200 $5,800
Travel $13,717 $24,652 $29,961
Payroll Taxes $0 $0 $0
Total Operating Expenses $407,102 $454,640 $561,284
Profit Before Interest and Taxes $232,626 $344,990 $438,253
EBITDA $277,302 $389,990 $483,253
Interest Expense $10,877 $8,500 $7,500
Taxes Incurred $55,437 $84,122 $109,483
Net Profit $166,311 $252,367 $321,270
Net Profit/Sales 22.87% 27.77% 28.28%

7.4 Projected Cash Flow

Cash flow data for the first three years is presented in the chart and table below. The table shows anticipated repayment of the long-term loan, as well as projected dividends which will be paid to investors in years two and three. In year three, we will purchase two more paykiosks terminals for new locations. The more detailed monthly cash flow data can be found in the appendix.

Wi-fi kiosks business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $727,071 $908,806 $1,136,007
Subtotal Cash from Operations $727,071 $908,806 $1,136,007
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $727,071 $908,806 $1,136,007
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $284,498 $309,440 $397,952
Bill Payments $184,060 $327,202 $366,049
Subtotal Spent on Operations $468,558 $636,642 $764,001
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $10,000 $10,000 $10,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $40,000
Dividends $0 $100,000 $200,000
Subtotal Cash Spent $478,558 $746,642 $1,014,001
Net Cash Flow $248,513 $162,163 $122,006
Cash Balance $308,513 $470,676 $592,682

7.5 Projected Balance Sheet

Our projected balance sheet is presented in the table below. As sales increase, and we repay our long-term loan, the net worth of the company will increase from $281,710 at start-up to over $610,000 by year three.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $308,513 $470,676 $592,682
Other Current Assets $11,400 $11,400 $11,400
Total Current Assets $319,913 $482,076 $604,082
Long-term Assets
Long-term Assets $312,810 $312,810 $352,810
Accumulated Depreciation $44,676 $89,676 $134,676
Total Long-term Assets $268,134 $223,134 $218,134
Total Assets $588,047 $705,210 $822,216
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $50,026 $24,822 $30,558
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $50,026 $24,822 $30,558
Long-term Liabilities $90,000 $80,000 $70,000
Total Liabilities $140,026 $104,822 $100,558
Paid-in Capital $310,171 $310,171 $310,171
Retained Earnings ($28,461) $37,850 $90,217
Earnings $166,311 $252,367 $321,270
Total Capital $448,021 $600,388 $721,658
Total Liabilities and Capital $588,047 $705,210 $822,216
Net Worth $448,021 $600,388 $721,658

7.6 Business Ratios

The following table outlines some of the more important ratios from the Data communications services industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 4899.9901.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 25.00% 25.00% 1.63%
Percent of Total Assets
Other Current Assets 1.94% 1.62% 1.39% 53.65%
Total Current Assets 54.40% 68.36% 73.47% 74.50%
Long-term Assets 45.60% 31.64% 26.53% 25.50%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 8.51% 3.52% 3.72% 24.78%
Long-term Liabilities 15.30% 11.34% 8.51% 18.28%
Total Liabilities 23.81% 14.86% 12.23% 43.06%
Net Worth 76.19% 85.14% 87.77% 56.94%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 87.99% 87.99% 87.99% 52.82%
Selling, General & Administrative Expenses 73.78% 60.22% 59.71% 30.92%
Advertising Expenses 6.14% 4.95% 3.96% 0.82%
Profit Before Interest and Taxes 31.99% 37.96% 38.58% 6.18%
Main Ratios
Current 6.39 19.42 19.77 1.84
Quick 6.39 19.42 19.77 1.60
Total Debt to Total Assets 23.81% 14.86% 12.23% 54.39%
Pre-tax Return on Net Worth 49.50% 56.05% 59.69% 8.03%
Pre-tax Return on Assets 37.71% 47.71% 52.39% 17.61%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 22.87% 27.77% 28.28% n.a
Return on Equity 37.12% 42.03% 44.52% n.a
Activity Ratios
Accounts Payable Turnover 4.63 12.17 12.17 n.a
Payment Days 27 45 27 n.a
Total Asset Turnover 1.24 1.29 1.38 n.a
Debt Ratios
Debt to Net Worth 0.31 0.17 0.14 n.a
Current Liab. to Liab. 0.36 0.24 0.30 n.a
Liquidity Ratios
Net Working Capital $269,887 $457,254 $573,524 n.a
Interest Coverage 21.39 40.59 58.43 n.a
Additional Ratios
Assets to Sales 0.81 0.78 0.72 n.a
Current Debt/Total Assets 9% 4% 4% n.a
Acid Test 6.39 19.42 19.77 n.a
Sales/Net Worth 1.62 1.51 1.57 n.a
Dividend Payout 0.00 0.40 0.62 n.a
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Unit Sales
Walk-Up Internet Access 45% 900 1,125 1,406 1,758 2,197 2,747 3,433 4,292 5,364 6,706 8,382 10,477
Wireless WiFi Access 25% 426 533 666 832 1,040 1,300 1,625 2,031 2,539 3,174 3,967 4,959
Prepaid Products 18% 363 454 567 709 886 1,108 1,385 1,731 2,164 2,705 3,381 4,226
Multimedia Advertising 12% 108 135 169 211 264 330 412 515 644 805 1,006 1,257
Total Unit Sales 1,797 2,246 2,808 3,510 4,387 5,484 6,855 8,569 10,711 13,389 16,736 20,920
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Walk-Up Internet Access $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00
Wireless WiFi Access $3.95 $3.95 $3.95 $3.95 $3.95 $3.95 $3.95 $3.95 $3.95 $3.95 $3.95 $3.95
Prepaid Products $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
Multimedia Advertising $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00
Sales
Walk-Up Internet Access $2,700 $3,375 $4,219 $5,273 $6,592 $8,240 $10,300 $12,875 $16,093 $20,117 $25,146 $31,432
Wireless WiFi Access $1,683 $2,103 $2,629 $3,287 $4,108 $5,135 $6,419 $8,024 $10,030 $12,537 $15,671 $19,589
Prepaid Products $3,630 $4,538 $5,672 $7,090 $8,862 $11,078 $13,847 $17,309 $21,636 $27,046 $33,807 $42,259
Multimedia Advertising $5,400 $6,750 $8,438 $10,547 $13,184 $16,479 $20,599 $25,749 $32,187 $40,233 $50,291 $62,864
Total Sales $13,413 $16,766 $20,957 $26,197 $32,746 $40,932 $51,165 $63,957 $79,946 $99,932 $124,916 $156,144
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Walk-Up Internet Access 20.00% $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60
Wireless WiFi Access 10.00% $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40
Prepaid Products 10.00% $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Multimedia Advertising 10.00% $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00
Direct Cost of Sales
Walk-Up Internet Access $540 $675 $844 $1,055 $1,318 $1,648 $2,060 $2,575 $3,219 $4,023 $5,029 $6,286
Wireless WiFi Access $168 $210 $263 $329 $411 $514 $642 $802 $1,003 $1,254 $1,567 $1,959
Prepaid Products $363 $454 $567 $709 $886 $1,108 $1,385 $1,731 $2,164 $2,705 $3,381 $4,226
Multimedia Advertising $540 $675 $844 $1,055 $1,318 $1,648 $2,060 $2,575 $3,219 $4,023 $5,029 $6,286
Subtotal Direct Cost of Sales $1,611 $2,014 $2,518 $3,147 $3,934 $4,917 $6,147 $7,683 $9,604 $12,005 $15,006 $18,758
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Lorenzo Mitchell 0% $3,289 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600
Herman Albany 0% $3,289 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600
Technician 0% $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160
Route Drivers 0% $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400
Future Staff 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 11 11 11 11 11 11 11 11 11 11 11 11
Total Payroll $23,138 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50% 11.50%
Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $13,413 $16,766 $20,957 $26,197 $32,746 $40,932 $51,165 $63,957 $79,946 $99,932 $124,916 $156,144
Direct Cost of Sales $1,611 $2,014 $2,518 $3,147 $3,934 $4,917 $6,147 $7,683 $9,604 $12,005 $15,006 $18,758
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $1,611 $2,014 $2,518 $3,147 $3,934 $4,917 $6,147 $7,683 $9,604 $12,005 $15,006 $18,758
Gross Margin $11,801 $14,752 $18,440 $23,050 $28,812 $36,015 $45,019 $56,274 $70,342 $87,928 $109,909 $137,387
Gross Margin % 87.99% 87.99% 87.99% 87.99% 87.99% 87.99% 87.99% 87.99% 87.99% 87.99% 87.99% 87.99%
Expenses
Payroll $23,138 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760
Sales and Marketing and Other Expenses $4,467 $4,467 $4,467 $4,467 $4,467 $4,467 $4,467 $4,467 $4,467 $4,467 $4,467 $4,467
Depreciation $3,723 $3,723 $3,723 $3,723 $3,723 $3,723 $3,723 $3,723 $3,723 $3,723 $3,723 $3,723
Utilities $468 $468 $468 $468 $468 $468 $468 $468 $468 $468 $468 $468
Insurance $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Maintenence/Repairs $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292
Travel 15% $1,143 $1,143 $1,143 $1,143 $1,143 $1,143 $1,143 $1,143 $1,143 $1,143 $1,143 $1,143
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $33,355 $33,977 $33,977 $33,977 $33,977 $33,977 $33,977 $33,977 $33,977 $33,977 $33,977 $33,977
Profit Before Interest and Taxes ($21,554) ($19,225) ($15,537) ($10,927) ($5,165) $2,038 $11,042 $22,297 $36,365 $53,951 $75,932 $103,410
EBITDA ($17,831) ($15,502) ($11,814) ($7,204) ($1,442) $5,761 $14,765 $26,020 $40,088 $57,674 $79,655 $107,133
Interest Expense $950 $942 $934 $926 $918 $910 $902 $894 $886 $879 $871 $863
Taxes Incurred ($5,626) ($5,042) ($4,118) ($2,963) ($1,521) $282 $2,535 $5,351 $8,870 $13,268 $18,765 $25,637
Net Profit ($16,878) ($15,126) ($12,354) ($8,890) ($4,563) $846 $7,605 $16,052 $26,609 $39,804 $56,296 $76,910
Net Profit/Sales -125.84% -90.22% -58.95% -33.94% -13.93% 2.07% 14.86% 25.10% 33.28% 39.83% 45.07% 49.26%
Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $13,413 $16,766 $20,957 $26,197 $32,746 $40,932 $51,165 $63,957 $79,946 $99,932 $124,916 $156,144
Subtotal Cash from Operations $13,413 $16,766 $20,957 $26,197 $32,746 $40,932 $51,165 $63,957 $79,946 $99,932 $124,916 $156,144
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $13,413 $16,766 $20,957 $26,197 $32,746 $40,932 $51,165 $63,957 $79,946 $99,932 $124,916 $156,144
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $23,138 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760 $23,760
Bill Payments $2,614 $3,462 $4,456 $5,887 $7,678 $9,918 $12,719 $16,223 $20,603 $26,080 $32,928 $41,490
Subtotal Spent on Operations $25,752 $27,222 $28,216 $29,647 $31,438 $33,678 $36,479 $39,983 $44,363 $49,840 $56,688 $65,250
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $837
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $26,585 $28,055 $29,049 $30,480 $32,271 $34,511 $37,312 $40,816 $45,196 $50,673 $57,521 $66,087
Net Cash Flow ($13,173) ($11,290) ($8,092) ($4,284) $475 $6,421 $13,853 $23,141 $34,750 $49,259 $67,394 $90,057
Cash Balance $46,827 $35,538 $27,446 $23,163 $23,637 $30,059 $43,912 $67,053 $101,803 $151,062 $218,456 $308,513
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $60,000 $46,827 $35,538 $27,446 $23,163 $23,637 $30,059 $43,912 $67,053 $101,803 $151,062 $218,456 $308,513
Other Current Assets $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400 $11,400
Total Current Assets $71,400 $58,227 $46,938 $38,846 $34,563 $35,037 $41,459 $55,312 $78,453 $113,203 $162,462 $229,856 $319,913
Long-term Assets
Long-term Assets $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810 $312,810
Accumulated Depreciation $0 $3,723 $7,446 $11,169 $14,892 $18,615 $22,338 $26,061 $29,784 $33,507 $37,230 $40,953 $44,676
Total Long-term Assets $312,810 $309,087 $305,364 $301,641 $297,918 $294,195 $290,472 $286,749 $283,026 $279,303 $275,580 $271,857 $268,134
Total Assets $384,210 $367,314 $352,302 $340,487 $332,481 $329,232 $331,931 $342,061 $361,479 $392,506 $438,042 $501,713 $588,047
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $2,500 $3,316 $4,262 $5,634 $7,351 $9,498 $12,183 $15,542 $19,741 $24,992 $31,557 $39,765 $50,026
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $2,500 $3,316 $4,262 $5,634 $7,351 $9,498 $12,183 $15,542 $19,741 $24,992 $31,557 $39,765 $50,026
Long-term Liabilities $100,000 $99,167 $98,334 $97,501 $96,668 $95,835 $95,002 $94,169 $93,336 $92,503 $91,670 $90,837 $90,000
Total Liabilities $102,500 $102,483 $102,596 $103,135 $104,019 $105,333 $107,185 $109,711 $113,077 $117,495 $123,227 $130,602 $140,026
Paid-in Capital $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171 $310,171
Retained Earnings ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461) ($28,461)
Earnings $0 ($16,878) ($32,004) ($44,358) ($53,248) ($57,810) ($56,965) ($49,360) ($33,308) ($6,700) $33,104 $89,401 $166,311
Total Capital $281,710 $264,832 $249,706 $237,352 $228,462 $223,900 $224,745 $232,350 $248,402 $275,010 $314,814 $371,111 $448,021
Total Liabilities and Capital $384,210 $367,314 $352,302 $340,487 $332,481 $329,232 $331,931 $342,061 $361,479 $392,506 $438,042 $501,713 $588,047
Net Worth $281,710 $264,832 $249,706 $237,352 $228,462 $223,900 $224,745 $232,350 $248,402 $275,010 $314,814 $371,111 $448,021

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ProfitableVenture

WiFi Hotspot Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Technology Sector

Are you about starting a Wi-fi hotspot business? If YES, here is a complete sample Wi-fi hotspot business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a Wi-fi hotspot business. We also took it further by analyzing and drafting a sample Wi-fi hotspot business marketing plan template backed up by actionable guerrilla marketing ideas for Wi-fi hotspot businesses. So let’s proceed to the business planning section .

As an aspiring entrepreneur who wants to start a business, one of the businesses you can look to is the Wi-Fi hotspot business. It should be noted that starting a Wi-Fi hotspot business needs significant investment capital, solid planning, and concentration to detail in order to keep your business profitable.

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In recent time, the demand for services provided by Wi-Fi hotspot maybe on the decrease because of loads of options that internet service providers offer their subscribers, but on the other hand, if you know how to position your business, and you have fast internet that is affordable, you will sure make profits from this line of business.

So, if you have decided to start your own Wi-Fi hotspot business, then you should ensure that you carry out thorough feasibility studies and market survey. Business plan is yet another very important business document that you should not take for granted when launching your Wi-Fi hotspot business.

Below is a sample Wi-Fi hotspot business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Wi-Fi Hotspot Business Plan Template

1. industry overview.

A hotspot is a physical location where people may obtain internet access for free or at a fee, typically using Wi-Fi technology, via a wireless local area network (WLAN) using a router connected to an internet service provider. Public hotspots may be created by a business for use by customers, such as coffee shops or hotels.

Using an open public network is the easiest way to create a free hotspot. All that is needed is a Wi-Fi router. Similarly, when users of private wireless routers turn off their authentication requirements, opening their connection, intentionally or not, they permit piggybacking (sharing) by anyone in range.

Closed public networks use a Wi-Fi Hotspot Management System to control access to hotspots. This software runs on the router itself or an external computer allowing operators to authorize only specific users to access the Internet.

Providers of such hotspots often associate the free access with a menu, membership, or purchase limit. Operators may also limit each user’s available bandwidth (upload and download speed) to ensure that everyone gets good quality service. Often this is done through service-level agreements.

Many services provide payment services to hotspot providers for a monthly fee or commission from the end-user income.

For example, Amazingports can be used to set up hotspots that intend to offer both fee-based and free internet access, and ZoneCD is a Linux distribution that provides payment services for hotspot providers who wish to deploy their own service.

Major airports and hotels are more likely to charge for this service, but small airports and airline lounges do offer free service. Retail shops, public venues and offices usually provide a free Wi-Fi SSID for their guests and visitors.

Roaming services are expanding among major hotspot service providers. With roaming service, the users of a commercial provider can have access to other providers’ hotspots, either free of charge or for extra fees, which users will usually be charged on an access-per-minute basis.

The Wi-Fi Hotspot industry is indeed a large industry and there is hardly any airport that you won’t find an internet café that you can either connect your gadget through their Wi-Fi or log on to their computer to surf the net while you wait for your flight.

Though some players in this industry would prefer to build their call centers in places where they can maximize profits; countries like India, China and The Philippines readily comes to mind.

One good thing about starting a Wi-Fi business is that aside from the fact that people will come in to browse the internet and carry out their jobs; you can also generate enough income by engaging in the sale of coffee and snacks.

So all you need to do if you want to maximize your Wi-Fi business is to strategically position the business and you will be amazed at the rate people troop to your Wi-Fi location; not only those that want to browse the internet, but also those who may just want to hang out with friends over a cup of coffee and snacks.

2. Executive Summary

Light Speed® Wi-Fi Hotspot, LLC is a licensed Wi-Fi hotspot and coffee shop that is fully equipped with the latest technology in Wi-Fi Hotspot. Our Wi-Fi Hotspot will be located in the busiest airport in the united states – Hartsfield–Jackson Atlanta International Airport.

Light Speed® Wi-Fi Hotspot, LLC will operate as a standard Wi-Fi Hotspot where clients are expected to surf the internet at the speed of light, make internet phone calls, conduct teleconferences, and scan and send documents online. We also engage in the sale of snacks and coffee, operating a full-fledged business center and the sale of data bundle and call cards for various telecommunication providers.

Our business goal is to work towards becoming one of the leading Wu-Fi hotspot brand in the whole of Hartsfield – Jackson, Atlanta and in the nearest future compete with leaders in the industry not only in the United States but also in the global stage.

We are not ignorant of the fact that building a world class Wi-Fi hotspot from the scratch requires huge capital especially for the purchase of up-to-date internet equipment (server, and computers) and software applications et al, which is why we have perfected plans for steady flow of cash.

We can confidently say that we have a robust financial standing and we are ready to take on any challenge that we encounter in the industry. We are well – staffed and well – equipped to run a 24 hours-a-day and 7 days-a-week Wi-Fi business with a well – planned shift system.

We will ensure that all our employees are selected from a pool of qualified and customer centric people in and around Hartsfield – Jackson, Atlanta and also from any part of the United States.

We will make sure that we take all the members of our workforce through the required training that will position them to meet the expectation of the company and to compete with other players in the United States and throughout the globe.

At Light Speed® Wi-Fi Hotspot, LLC, our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Light Speed® Wi-Fi Hotspot, LLC is owned by Lewis Hankins and his immediate family members. Lewis Hankins has a Degree: B.S. in Electrical Engineering from the Illinois Institute of Technology; M.S. degree in Computer Science at the University of Wisconsin-Milwaukee; MBA from the University of Chicago Booth School of Business.

3. Our Products and Services

Light Speed® Wi-Fi Hotspot, LLC is going to offer varieties of services within the scope of the Internet cafes’ industry in the United States of America. Our intention of starting our Wi-Fi hotspot in Hartsfield – Jackson, Atlanta is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and business goals.

Our business offerings are listed below;

  • Providing fast and secured internet browsing services
  • Providing cheap and secured internet calls
  • Providing fast and secured teleconference services
  • Providing document scanning and photocopying services
  • Sale of soft drinks, coffee and snacks
  • Sale of call cards, and internet bundles from various telecom service providers
  • Providing related internet café advisory and consultancy services

4. Our Mission and Vision Statement

  • Our vision is to become the number one public Wi-Fi hotspot provider in the whole of Hartsfield – Jackson, Atlanta within the first five years of starting the business.
  • Our mission is to build a well-equipped public Wi-Fi hotspot brand that will become the preferred choice for a wide range of clients in and around Hartsfield – Jackson, Atlanta.

Our Business Structure

The success of any business is to a large extent dependent on the structure of the organization and the people who occupy the available roles. Light Speed® Wi-Fi Hotspot, LLC will build a solid business structure that can support the growth of our Wi-Fi hotspot business.

We will ensure that we hire competent hands to help us build the business of our dream. The fact that we want to become one of the leading public Wi-Fi hotspot brands in the whole of the United States of America makes it highly necessary for our organization to deliberately build a well – structured business from the onset.

Below is the business structure that we will build at Light Speed® Wi-Fi Hotspot, LLC;

  • Chief Executive Officer

Manager/Supervisor

Admin and HR Manager

  • Marketing and Sales Executive
  • Customer Care Officer/Help Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Accountable for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • In charge of signing checks and documents on behalf of the company
  • Assesses the success of the organization
  • Responsible for managing the daily running of the Wi-Fi hotspot facility, including sourcing equipment, effectively planning and implementing Wi-Fi hotspot strategies and operations.
  • Carries out needs assessments, performance reviews and cost/benefit analyses.
  • Responsible for setting and meeting performance targets for speed, efficiency, sales and quality.
  • Ensures all relevant communications, records and data are updated and recorded.
  • Advising clients on products and services available.
  • Liaises with supervisors, team leaders, operatives and third parties to gather information and resolve issues.
  • Maintains up-to-date knowledge of industry developments and involvement in networks.
  • Records statistics, user rates and the performance levels of the Wi-Fi hotspot and preparing reports.
  • Handles the most complex customer complaints or enquiries.
  • In control of organizing staffing, including shift patterns and the number of staff required to meet demand.

Information Technologist

  • Manages the organization website and server room
  • Responsible for continuous update of our online security platform
  • Ensures that our payment platform is secured 24/7
  • Responsible for installing and maintenance of “Private Automated Business Exchanges” (PABX), telephones, computer software and hardware for the organization
  • Manage logistics, Web servers and POS (point of sale) systems
  • In charge of continuous upgrade and maintenance of IT systems
  • Responsible for generating tickets for the Wi-Fi hotspot
  • Handles any other technological and IT related duties.
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Designs job descriptions with KPI to drive performance management for clients
  • Facilitates and coordinates strategic sessions.
  • Works directly with clients in a non-advising capacity, such as answering questions, scheduling appointments and making sure all training concerns are properly taken care off
  • Oversees the smooth running of the daily office activities.

Marketing and Sales Executive (Business Developer)

  • Identifies, prioritizes, and reaches out to new partners, and business opportunities
  • Recognizes business opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of music projects.
  • Accountable for supervising, implementation, advocating for the customer’s needs, and communicating with clients
  • Develops, executes and evaluates new plans for expanding sales
  • Documents all customer contact and information
  • Helps to increase sales and growth for the company
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Client Service Executives/Help Desk Officer

  • Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
  • Distributes mails in the organization
  • Handles any other duties as assigned by the manager

6. SWOT Analysis

Light Speed® Wi-Fi Hotspot, LLC engaged the services of a core professional in the area of startup business consulting and structuring to assist the organization in building a standard and profitable Wi-Fi hotspot business that can favorably compete with other leading public Wi-Fi hotspot brands in the United States of America and the world at large.

Part of what the business consultant did was to work with the management of the company in conducting a SWOT analysis for Light Speed® Wi-Fi Hotspot, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Light Speed® Wi-Fi Hotspot, LLC.

Our core strength lies in our service offerings, the power of our team and the state-of-the-art Wi-Fi hotspot equipment and software applications that we have.

We have a team that can go all the way to give our clients value for their money. We are well positioned in the heart of Hartsfield – Jackson, Atlanta – Georgia and we know we will attract loads of clients from the first day we open our Wi-Fi hotspot for business.

As a new Wi-Fi hotspot business in Hartsfield – Jackson, Atlanta – Georgia, it might take some time for our organization to break into the market and attract some well – established corporate clients; that is perhaps our major weakness.

Another weakness is that we may not have the required cash to pump into the promotion of our business the way we would want to.

  • Opportunities:

The opportunities in the Wi-Fi/internet café industry are massive especially in Hartsfield – Jackson, Atlanta, and we are ready to take advantage of any opportunity that comes our way.

The truth is that with the advancement of technology and cheaper internet data bundles, it is now easier for organizations to conduct their teleconferences from their office and for individuals to purchase internet bundles and browse on their mobile gadgets.

So also, just like any other business, one of the major threats that we are likely going to face is economic downturn. Another threat that may likely confront us is the arrival of a new and perhaps free public Wi-Fi hotspot in same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

  • Market Trends

It is known fact that public Wi-Fi hotspot are a natural evolution of the cyber café. As a matter of fact, cafés started as places for information exchange, and have always been used as places to read the paper, send postcards home, play traditional or electronic games, chat with friends, find out local information.

As internet access is in increasing in demand, many pubs, bars and cafés have terminals, so the distinction between the Wi-Fi hotspot and the cyber café is eroded.

For instance, in some countries in Europe, the number of pure cyber cafés is decreasing since more and more public Wi-Fi hotspot offer the same services. However, there are European countries where the total number of publicly accessible terminals is also decreasing.

Germany is one good example of such countries where publicly accessible terminal is on the decrease. The reason for this trend is a combination of complicated regulation, relatively high Internet penetration rates, the widespread use of notebooks and PDAs and the relatively high number of wireless internet hotspots.

Lastly, while most Wi-Fi hotspots are privately owned businesses, many have been set up to help bridge the ‘digital divide’, providing internet access and training to those without home access. For example, the uk government supported the setting up of 6000 telecentres.

8. Our Target Market

The target market for the Wi-Fi hotspot business is all encompassing because of their service offerings. In view of that, we have created strategies that will enable us reach out to various corporate organizations and individual who we know will need our services.

We have conducted our market research and survey and we will ensure that our Wi-Fi hotspot attracts the kind of clients we would love to work with. Below is a list of the people and organizations that we have specifically market our services to;

  • Corporate organizations (basically for teleconference and similar web meetings)
  • All adults in the locations where our internet café is located
  • Students who would need internet facility to fill forms online and to make photocopies and scan documents
  • Job applicants who would need to fill online applications and to forward their CVs and documents
  • Coffee lovers in Hartsfield – Jackson, Atlanta – Georgia
  • Online gamers in Hartsfield – Jackson, Atlanta – Georgia
  • People with smart phones, tabs and pads who would want to purchase internet bundles and call cards.

Our Competitive Advantage

We are mindful of the fact that there are stiff competitions in the Wi-Fi hotspot industry in the United States of America, hence we have been able to hire some of the best business developers to handle our sales and marketing.

Light Speed® Wi-Fi Hotspot, LLC might be a new entrant into the internet café industry, but we are coming into the industry with core professionals and of course a world-class Wi-Fi hotspot with the latest equipment and software applications in the industry.

Our complimentary services – fully functional business center, coffee and snacks bar will enable us attract loads of customers per time in our facility.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Light Speed® Wi-Fi Hotspot, LLC is established with the aim of maximizing profits in the internet café industry and we are going to go all the way to ensure that we do all it takes to attract our target market. Light Speed® Wi-Fi Hotspot, LLC will generate income by offering the following services;

  • Providing cheap and secured international internet calls
  • Providing document scanning and photocopy services
  • Providing related Wi-Fi hotspot advisory and consultancy services

10. Sales Forecast

One thing is certain when it comes to Wi-Fi hotspot services; it is always cheaper and reliable for small businesses and startups to carry out teleconferencing or web meetings. This goes to show that any Wi-Fi hotspot facility that is well – equipped and well positioned will always attract corporate clients.

We are well positioned to take on the available market in Hartsfield – Jackson, Atlanta – Georgia and beyond and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base beyond Atlanta – Georgia.

We have been able to critically examine the Wi-Fi hotspot services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Hartsfield – Jackson, Atlanta – Georgia.

Below are the sales projection for Light Speed® Wi-Fi Hotspot, LLC, it is based on the location of our business and other factors as it relates to Wi-Fi hotspot startups in the United States;

  • First Fiscal Year: $140,000
  • Second Fiscal Year: $350,000
  • Third Fiscal Year: $750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do in same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Wi-Fi hotspot business is not a business that you have to go out there to retail products which is why we must do all we can to maximize any opportunity that comes our way to attract people to patronize and subscribe to our public Wi-Fi hotspot services.

Our sales and marketing team will be recruited based on their vast experience in the internet café industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent service delivery speaks for us in the marketplace; we want to build a standard Wi-Fi hotspot that will leverage on word of mouth advertisement from satisfied clients.

Our business goal is to build our Wi-Fi hotspot business to become the number one choice in the whole of Hartsfield – Jackson, which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with not only in the Hartsfield – Jackson, Atlanta but throughout Georgia as well.

Light Speed® Wi-Fi Hotspot, LLC is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our Wi-Fi hotspot by sending introductory letters alongside our brochure to, residents, organizations and key stakeholders in Hartsfield – Jackson, Atlanta – Georgia and other parts of the U.S.
  • Advertise our business in relevant magazines, newspapers, TV and radio stations.
  • List our business on yellow pages ads (local directories).
  • Attend relevant international and local internet café relevant expos, seminars, and fairs et al.
  • Create different packages for different category of clients in order to work with their budgets and still deliver top notch services (for teleconference and web meetings)
  • Leverage on the internet to promote our business
  • Engage in direct marketing approach
  • Encourage word of mouth marketing from our loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with a brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the internet café industry by storm which is why we have made provisions for effective publicity and advertisement of our Wi-Fi.

Below are the platforms we intend to leverage on to promote and advertise Light Speed® Wi-Fi Hotspot, LLC;

  • Place adverts on both print and electronic media platforms
  • Sponsor relevant TV shows and radio programs
  • Maximize our official website to promote our business
  • Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business
  • Offer Pro Bono services to non – profits Organizations as part of our community social responsibility
  • Ensure that our we position our banners and billboards in strategic positions all around Hartsfield – Jackson, Atlanta – Georgia
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations, schools, and startups by calling them up and informing them of Light Speed® Wi-Fi Hotspot, LLC and the services we offer
  • Advertise our public Wi-Fi hotspot business in our official website and employ strategies that will help us pull traffic to the site
  • Brand all our official cars and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

The nature of internet café services makes it easier for operators in this industry to charge her clients fees based on the number of hours spent or monthly subscription for members; usually this fee is charged based on the discretion of the Wi-Fi hotspot.

At Light Speed® Wi-Fi Hotspot, LLC we will keep our fees below the average market rate by keeping our overhead low. In addition, we will also offer special discounted rates to startups, nonprofits, cooperatives, and small social enterprises who engage our services to help them organize teleconferences or web meetings/webcast etc.

  • Payment Options

The payment policy adopted by Light Speed® Wi-Fi Hotspot, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Light Speed® Wi-Fi Hotspot, LLC will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to pay for services rendered/subscription fee.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the startup can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a Wi-Fi business; it might differ in other countries due to the value of their money.

The bulk of the money that is expected to be spent when setting up a public Wi-Fi hotspot business is in the purchase of equipment and of course leasing/renting a standard facility. This is what it would cost us to start Light Speed® Wi-Fi Hotspot, LLC in the United of America;

  • The total fee for incorporating the business in Atlanta – Georgia – $750.
  • The budget for Liability insurance, permits and license – $2,500
  • The Amount needed to acquire a suitable Office facility with enough space for standard public Wi-Fi hotspot facility in a business district 6 months (Re – Construction of the facility inclusive) – $120,000.
  • The cost for equipping the public Wi-Fi hotspot (Wi-Fi hotspot, telephone boxes, headsets, server room, computers, software applications, “Private Automated Business Exchanges” (PABX), printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $170,000
  • The cost of Launching our official website – $600
  • Budget for paying at least 3 employees for 3 months and utility bills – $80,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
  • Miscellaneous – $1,000

Going by the report from the research and feasibility studies conducted, we will need about $350,000 to set up a medium scale but standard Wi-Fi hotspot facility in the United States of America.

Generating Startup Capital Light Speed® Wi-Fi Hotspot, LLC

Light Speed® Wi-Fi Hotspot, LLC is going to start as a family business that will be solely owned and managed by Lewis Hankins and his immediate family members. Both of them will be the financier of the business, but may likely welcome other partners later which is why they have decided to restrict the sourcing of his startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the Bank

N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Light Speed® Wi-Fi Hotspot, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to equip our Wi-Fi hotspot facility with state of the equipment, technology and software applications.

Light Speed® Wi-Fi Hotspot, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Renting of Call Facility: Completed
  • Setting up of our Wi-Fi hotspot Facility: In Progress
  • Intellectual Property Protection and Trademark: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Generating part of the startup capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the needed Wi-Fi hotspot equipment, software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business: In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with key players in the industry: In Progress

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Starlink for Piso WiFi Business: What You Need to Know

Starlink for Piso WiFi Business: What You Need to Know

Can I use Starlink (Residential Plan) for my Piso WiFi business?

  • Legal answer - No. Acceptable Use Policy (AUP)/Fair Use Policy (FUP) specifically specifies that you cannot resell the service. This is a residential service.
  • Pinoy answer - Yes, you may, but at your own risk. Other telcos (PLDT/Globe/Converge/etc.) have the same policy for residential plans, but they usually ignore this. Starlink may enforce the policy, so do not abuse the service. We want to earn and have the community access that telcos can't provide to us Filipinos, especially in rural and underserved areas.

Detailed Answers

Can i use starlink for my piso wifi business.

No Resale. You may not resell access to the Services to others as a stand-alone, integrated or value-added service under this Agreement.

What happens to a Starlink residential account providing internet via a Piso WiFi service if caught by SpaceX? And what about if it's not caught doing so and no action is taken for several months or years?

Related topics:.

piso wifi business plan pdf

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IMAGES

  1. PISO WiFi Datasheet

    piso wifi business plan pdf

  2. How to Start a Piso WiFi Business: A Step-by-Step Guide

    piso wifi business plan pdf

  3. Piso Wifi Business in the Philippines

    piso wifi business plan pdf

  4. Piso wifi business start up basic guides. By: Benedict Cardenas

    piso wifi business plan pdf

  5. A Guide to Understanding Piso WiFi: 5 Things You Need To Learn About

    piso wifi business plan pdf

  6. Piso Wifi Build for Beginners Guide with VLAN Setup

    piso wifi business plan pdf

VIDEO

  1. Piso wifi business 👌💪 #pisowifi #viral #viralshorts

  2. BEST LOCATION FOR PISO WIFI BUSINESS

  3. PISO WIFI Business: PISO HARVEST TIME

  4. TIPS BAGO MAGSIMULA NG PISO WIFI BUSINESS/PARA LUMAKI ANG INCOME

  5. PISO WIFI PACKAGE COMPLETE SET FOR DEAD SPOT AREA

  6. Piso wifi business income for 1month

COMMENTS

  1. How to Start a Piso Wifi Vendo Business: A Step-by-Step Guide

    Here are the steps involved: Developing a marketing strategy. Create a comprehensive marketing plan to promote your Piso Wifi Vendo business to its target market. Be mindful of factors like target audience, messaging, and channels when developing this plan.

  2. How to Start a Piso WiFi Business: Everything You Need To Know

    How to Start a Piso WiFi Business in the Philippines. There are two simple steps on how to start a Piso Wifi Business. First, secure all the requirements needed, and second, kick off the business. 1. Piso WiFi business requirements: What you need to prepare.

  3. Business plan of J.A.M.P PISO-NET RESEARCH

    `J.A.M.P piso net is a machine intended for wifi source. It is operated by putting a coin in the machine in order to connect to the internet. business research ... Our piso-net business is just a simple business that contributes a lot to make the lives of the people around our location become easier, and at the same time faster and affordable ...

  4. Vending Machine

    The document summarizes a testimonial from a customer of Piso Wifi Vending Machine PH who started his own wifi vending business. Some key details: - The customer is an OFW from UAE who used the machine to start a business providing wifi access in a rural area with limited internet connectivity. - In the first month he earned PHP350-500 per day, now earning PHP800 per day or PHP24,000 per month ...

  5. Piso WiFi Business: How to Start, Costs and Profits

    For those who want to start their small business this is a perfect idea since it only needs an estimated capital worth of Php 30,000. Sales of a single Piso Wifi machine were at Php200/day to Php500/day or P6,000/month-Php 15,000/month, but it can reach up to P44,000 in a month. The sales may vary depending on the number of users you have and ...

  6. A Guide to Understanding Piso WiFi: 5 Things You Need To ...

    The term Piso WiFi is a portmanteau of "Piso," which means one peso in the Philippines, and "WiFi." The Piso WiFi business model allows customers to pay for internet access with a small amount of money rather than making them subscribe to expensive plans offered by telecommunications companies like Globe Telecom or Smart Communications.

  7. Pisonet Business: Everything You Need to Know!

    Create a business plan - In any business like this one, you need a plan. A business plan outlines all you need to evaluate the profitability of your proposed business. ... You should also add a piso wifi machine in your shop para dun sa gustong sa phone lang maglalaro. Maraming nagbebenta dyan online (builder po ako) pero pwede din kayo ...

  8. Business Model

    BUSINESS MODEL.docx - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. This document provides an overview of a business model for an internet connectivity product called Piso Wifi. The business model illustrates that Piso Wifi offers internet access through an online software package. It targets family homes and stores that have an existing ...

  9. Business Proposal Piso Wifi

    business proposal piso wifi - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. The document summarizes the goals of "SA KUSOG NGA KONEKSYON, PADAYUNG LIG-ON ANG RELASYON" which are to connect youth through technology, help learners in remote areas learn skills for the 21st century using technology, and become a support for everyone to connect ...

  10. PISO WIFI VENDING MACHINE.

    No need for employee to manage. 5. It can accomodate maximum 100 users at same time. 6. Wifi range is 100 meters you can also extend by providing wifi extender. 7. Have passive income everyday from 500 pesos to 3k pesos depending on the place and pricing. 8.

  11. Wi-Fi Kiosks Business Plan Example

    This business plan is prepared to obtain financing in the amount of $299,671. The supplemental financing is required to begin the purchase of public Internet terminals, the purchase of an office warehouse, office equipment and supplies and company vehicles, and to cover expenses in the first year of operations.

  12. Piso Net Shop Business Plan by reignajean tuto on Prezi

    Piso Net also known as Hulog-hulog internet is basically a merge of PC rental and Arcade rental services wherein customers can pay the services by inserting coins to the machine. The rate is typically 4mins/peso which also amounts to the typical Internet Cafe rate of Php15/hr. This rate can be tweaked higher or lower either to be more ...

  13. WiFi Hotspot Business Plan [Sample Template]

    Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) - $2,500. Miscellaneous - $1,000. Going by the report from the research and feasibility studies conducted, we will need about $350,000 to set up a medium scale but standard Wi-Fi hotspot facility in the United States of America.

  14. I'm thinking of getting a Piso-Wifi Vendo machine what plan should I

    IIRC, business plans has faster response rate compared to home plans in case you had a problem. Reliability-wise, I have no idea since only availed the home plan. Anyways, you can post this in r/phinvest for better replies. You should go for 200mbps since you will use it for Piso-wifi, where possible customers 24/7.

  15. Piso Wifi

    PISO WIFI - Free download as PDF File (.pdf), Text File (.txt) or read online for free. 1) The study aims to identify the effects of establishing a Piso Wi-Fi vending machine on increasing sales of entrepreneurs in Barangay Binahian A, Lopez, Quezon. 2) Interviews were conducted with 3 owners of Piso Wi-Fi vending machines in the area. 3) The findings showed that the Piso Wi-Fi helped increase ...

  16. Intro Business Plan

    Intro Business Plan - Free download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online for free. This document provides a business plan for a proposed "pisonet" business, which would provide affordable internet access via coin-operated computers located in a residential area of Zamboanga del Sur, Philippines. The business aims to serve customers who lack home internet access ...

  17. Starlink for Piso WiFi Business: What You Need to Know

    In the Philippines, the pay-per-use public WiFi service is usually called "Piso WiFi" or "Piso Net." This business entails placing a WiFi hotspot (vendo machine) in a public place like a coffee shop or waiting room and charging customers a cheap price, usually one Philippine peso (thus "Piso WiFi"), for a specified period of internet access time (for example, 1 peso for 10 minutes, 5 pesos for ...

  18. 1.piso Wifi Manual

    1.PISO-WIFI-MANUAL - Free download as PDF File (.pdf), Text File (.txt) or read online for free. This document provides instructions for setting up a Piso WiFi connection and creating voucher codes using the Mikrotik Hotspot Manager app. It outlines steps such as plugging in the power adapter and LAN cables, downloading and running the app, logging into the app, adding the router details, and ...

  19. PISO WiFi Datasheet

    PISO WiFi Datasheet_FAQs.pdf - Free download as PDF File (.pdf), Text File (.txt) or read online for free. This document describes an IP Plug and Play self-service Wi-Fi vending machine that allows users to purchase internet access. It prints tickets with unique usernames and passwords that allow 30 simultaneous users to access the internet over Wi-Fi for a limited time.