Internet Sweepstakes Cafes are literally sweeping across the nation, and while they may not be to everyone’s tastes, the fact is that for budding entrepreneurs looking to start a business, there are currently few better opportunities.
Here are 12 benefits of owning an internet sweepstakes café:
1/ Potentially very profitable
There are no guarantees in life and so it is not guaranteed that you will make money in any business, including owning an internet sweepstakes café. But the fact is that this is currently a very hot opportunity. The reason for this is that they are highly profitable.
2/ Lack of competition
In some states, like Ohio and Florida, these cafes have proliferated at a dramatic rate. But the reality is that there is nothing stopping you from opening up a café in any of the other states, and in many cases having little or no competition.
3/ Early pioneers will make the most money
This is a little like the early days of the gold rush. It takes a little time for people to realize that there really is an opportunity, but once they do everyone jumps on it.
Yet it is those early pioneers who make the most money because they are able to find the best spots to dig for gold.
4/ Minimal Cash Outlay
It is widely reported that the minimum amount of money you need to set up a McDonalds Franchise is in the region of $1 million. Pizza Hut starts at around $300,000 (and rapidly goes up), and Dunkin’ Donuts is somewhere between the two at around $375,000, according to Entrepreneur Magazine. And yet these figures are on the low end of what you can expect to finally pay out. To get a franchise in a really great area will cost a great deal just for the premises, and that is before you have even factored in kitting it out or hiring staff and management to run it.
By comparison running an internet sweepstakes café is a breeze! Typically you do have to pay out about 25% of your profit to the company supplying the terminals. But start-up costs can be as low as $8,000 for 20 terminals with all the equipment and training you need.
5/ Less Onerous Premise Requirements
Unlike many fast food uses, you don’t need premises that have sophisticated air conditioning or food safety setups. So potentially you have a wider choice of premises available to you to choose.
6/ Premises May Be Cheaper to Rent or Buy
Because of this fact you may be able to rent out or purchase premises more cheaply. This means that the initial start-up costs to get going will be cheaper, and so you can potentially make profits more quickly.
7/ More Hand Holding Than a “Normal” Business
If you are new to business, then this could be the perfect way to start one. Because the companies who provide the terminal still have a stake in the profits, there is a far greater desire on their part to help you to succeed.
8/ You Are Providing a Public Service
Internet Sweepstake Cafes get a lot of bad press, but really they are simply an additional source of entertainment for the community. So really you are helping to provide much-needed entertainment.
9/ No stock to take care of
You don’t have to worry about stock levels or other product requirements because there isn’t any!
10/ Less Staff Requirements than a “Normal” Business
Because of this there are far fewer staff needed to run the operation then for example running a restaurant would require.
11/ Available in Most States
At the moment, the only state that has active legislation that actively forbids setting up internet sweepstakes cafes is Utah. And yet even here it is widely expected that the legislation will be overturned fairly shortly.
12/ Predictable Cash Flows
With each terminal estimated to bring in anywhere from $1000 to $5000 a month in revenue, it is not difficult to see why running a café with even only 20 terminals can represent a potentially very lucrative business opportunity.