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Pisonet Business Plan Overview

This document presents a business plan for "When Boredom Strikes Café", a small business that will use Pisonet computer units to operate an internet café. Pisonet units allow customers to access the internet or play games for 1 peso per 5 minutes. The plan proposes opening the café in Placer, Surigao del Norte near a school to target kids and teenagers. With 5 Pisonet units operating 10 hours per day, the business could earn over PHP70,000 per quarter after expenses. Research on the internet café industry in the Philippines is included to support the viability and strategy of the business.
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0% found this document useful (0 votes)
47 views8 pages

Pisonet Business Plan Overview

This document presents a business plan for "When Boredom Strikes Café", a small business that will use Pisonet computer units to operate an internet café. Pisonet units allow customers to access the internet or play games for 1 peso per 5 minutes. The plan proposes opening the café in Placer, Surigao del Norte near a school to target kids and teenagers. With 5 Pisonet units operating 10 hours per day, the business could earn over PHP70,000 per quarter after expenses. Research on the internet café industry in the Philippines is included to support the viability and strategy of the business.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

When Boredom Strikes Café

(Piso mo, Oras mo)

A Management Principles Research and Business Plan Project


Presented to the Faculty of the School of Computing (IT) or School of Multimedia and Arts (Psych)
Asia Pacific College, Makati City, Philippines
TELUS International University, Quezon City, Philippines

In partial fulfilment of requirements for the completion of


MANAGEMENT PRINCIPLES SUBJECT 3rd TRIMESTER 2018-2019

Christian S. Torrena
May 28, 2019
APPROVAL SHEET

Student Full Name, has successfully presented this Management Principles Research and Business Plan
Project entitled “Lit Parking Spaces” in partial fulfilment of the requirements for the completion of
MANAGEMENT PRINCIPLES SUBJECT 3rd TRIMESTER 2018-2019 upon unanimous approval of the defense
committee with a grade of ______.

Chinerh Guerrero Borda


____________________________
Chairman

____________________________
Member

____________________________
Member

____________________________
Member
Student Information

Name: Christian S. Torrena

Teacher: Chinerh Guererro Borda

Street Address: 191L Tandang Sora Avenue

Town and City: Barangay Culiat, Quezon City

Contact No.: 09179311225

Birth Date: October 13, 1985


Table of contents (1 page or more)
Introduction (1 page or more)

When Boredom Strikes Café is a small business that will use Pisonet, an arcade style computer unit used
as an internet or gaming vending machine. Originally invented in Pangasinan (around 2011) as response
to Dagupan's booming internet café industry, it later spread in Pangasinan and later Metro Manila and
Metro Cebu. Target customers range from kids to teenagers.

Most favorable areas to operate are rural areas that has a Internet infrastructure but not yet
widespread internet access. The place I have in mind is my aunt’s home town at Placer Surigao del
Norte. If I manage to established this café near a school then even better as its operating near a place
where the target customers usually gather. Accepting students will be regulated with respect to school
hours.

If one is familiar with arcade/coin-op machine during mid-80s to early 90s it is a housing which
arcade/coin-op machine resides. In the Philippines, it is modified to house Super Famicom, SuperNes
and eventually PlayStation consoles making it ideal to be operated in leased spaces even in converted
house spaces instead to be strictly operated inside malls.

As mentioned above, Pisonet is using the same arcade style but instead of coin-op machine or console, it
uses coin timed computer unit monitor. Since it’s a computer unit its not limited to games. Customers
can browse, access their social media accounts, watch videos in Youtube, and stream their favorite
movies or shows at their whim. Internet rent at P1.00 peso is really appealing especially for kids and for
those who are in need of short-time use of the internet.

One peso is equivalent to five minutes (four minutes and above is the average length of a music video).
Pisonet can also modified to use five peso which is equivalent to twenty five minutes. Since Filipinos
love the so called “tingi-tingi”, the retail version of internet rent , the pisonet business has become
popular in the Philippines in a short period of time.
Nature of the Industry

Internet Café industry in the Philippines can traced its roots in the video game arcades of the 1980s.
Because we are always lagging behind the other countries, Internet cafes can trace its roots to the LAN
based computer shops in the 1980’s that offered gaming as their primary service. Sadly, This business
model even with the introduction of a fast internet service has not been updated and up to now I would
say a majority of the internet cafes in the country is set up for gaming purposes.

Business Development

If I want a computer unit that can already run most of the online games such as dota2 and the usual
document works and internet surfing then it can cost around P20,000. Around P20k you’ll have
something like:

 120/250 Gb of Hard Drive (already good for the most of the softwares today)
 4GB DDR3 RAM
 1Gb of Video Card Memory
 ~18inch LED Monitor
 2 Speakers

One of the things to consider in any business is the return of the investment. If I’ll be running this
pisonet business for 10 hours, I will have:

10hours = 600 minutes


600 minutes / ( 4 minutes / 1 peso ) = PHP150 per unit
If you have around 5 units, you can earn:
PHP 150 * 5 = PHP 750 per day,
PHP 750 * 30 days = PHP 22,500 per month,
PHP 22,500 * 4 Months = PHP 90,000 pesos

If we will deduct an approximate expenses in 4 months = PHP 20,000 ( Internet and Electricity Bill ), My
net income in just a quarter of a year is around PHP 90,000 – 20,000 = PHP 70,000 with just only 5 units
of pisonet machine. If I have 10 units (which is the common setup ), then I’ll have around PHP 140,000 in
just one quarter.
Case study
Methods
Results
(research + strategic factors of the business and competition)

Conclusion
(Summary and Key recommendation)
References (sources):

[Link]

[Link]

[Link]
in-the-ph

Common questions

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The Pisonet business model caters to the Philippines' unique economic and cultural context by leveraging the widespread practice of 'tingi-tingi,' which involves selling services in small, affordable increments. This model suits the economic limitations of many consumers who seek budget-friendly access to the internet while maintaining a nostalgia for the arcade-like experience. It addresses the cultural inclination towards community-centered activities, offering a public space for social interaction. Moreover, Pisonet aligns with the economic scales of rural and semi-urban areas, bridging digital divides by providing cost-effective internet access in regions with lagging infrastructure development .

The Pisonet business concept evolved from the traditional gaming arcades of the 1980s in the Philippines. With the advent of LAN-based computer shops that primarily offered gaming services, the industry adapted and modified the arcade style into internet services. This evolution was also influenced by the Filipino preference for 'tingi-tingi,' or a retail version of internet rent, which made Pisonet appealing due to its affordability and flexibility. Originally, Pisonet mimicked the coin-op machine design but replaced it with a coin-timed computer unit that offered a wide range of services beyond gaming, reflecting the shift from purely gaming to multi-functional internet usage .

The popularization of the Pisonet business in the Philippines can be attributed to several cultural and economic influences. Chief among them is the deeply embedded culture of thrift, with 'tingi-tingi' allowing users to purchase a minimal, affordable quantity of service, making it accessible to a wide range of consumers. Furthermore, Pisonet's flexible usage for not just gaming but also internet browsing, social media access, and streaming appeals to different age groups, particularly in areas with burgeoning internet infrastructure yet lacking widespread access. This adaptability, combined with the convenience and nostalgia of arcade-style use, meets both recreational and functional needs .

Introducing a Pisonet café near educational institutions in rural areas could have several social and cultural implications. Culturally, it aligns with the Filipino predilection for 'tingi-tingi' or micro-service transactions, tapping into a familiar and preferred market strategy. Socially, it offers access to digital resources, potentially enhancing educational opportunities. However, the café must carefully regulate access during school hours to prevent disruption to studies. It may foster a communal space that encourages social interaction among youths, aiding in digital literacy. Conversely, there is a risk of over-reliance on internet connectivity for leisure rather than educational purposes if not monitored appropriately .

Technological advancement plays a critical role in shaping the future of Pisonet businesses by determining the types and efficiency of services they can offer. As software and games require more robust hardware, Pisonet operators must regularly update their computer systems to meet user expectations. Advances in internet infrastructure can either bolster the Pisonet model by enhancing service quality or pose competition, particularly from mobile data services. Additionally, technological trends can open opportunities for diversification in services offered, such as including educational modules or secure payment platforms, influencing the market dynamics and competitive strategies of Pisonet businesses .

Investors must consider several economic factors when expanding through additional Pisonet units, including the initial outlay for purchasing each unit, averaging around PHP 20,000. Assessing local market demand and potential revenue generation is crucial, as is calculating fixed and variable costs such as electricity, internet, and maintenance. Evaluating the break-even point to ensure timely returns on investment, potentially accelerating by volume sales, is essential. Also noteworthy are any regional economic trends, competitive presence, and potential regulatory changes that might impact market conditions. These factors contribute significantly to strategic decisions regarding scaling the business .

The financial viability of a Pisonet business model is promising based on the provided investment and revenue projections. With an initial investment of approximately P20,000 per computer unit and a setup of 5 units, the business can gross about PHP 22,500 per month, leading to a quarterly gross of PHP 90,000. When deducting operational costs such as PHP 20,000 for internet and electricity, the net income per quarter stands at PHP 70,000. This illustrates a strong potential for return on investment, especially if expanded to 10 units, which could double the income. Such figures highlight a lucrative opportunity, provided demand and operational conditions remain stable .

A Pisonet café can integrate social responsibility into its business model in several ways to enhance community relations. It can offer special rates or free access time during designated hours for educational purposes, supporting local students' study needs. Partnering with local educational institutions or providing digital literacy workshops can enhance the community's skill set and understanding of technology. Additionally, implementing responsible usage policies that align with cultural norms and community values can build trust. Environmentally friendly practices, such as energy-efficient equipment, can align the business with broader social values concerning sustainability .

When establishing a Pisonet business in rural areas, strategic factors include selecting a location with existing but limited internet infrastructure, such as proximity to schools where the target customers gather. It is important to regulate student access according to school hours to maximize ethical business practices. Strategic financial planning is key, involving low operational costs and calculated return on investment based on the affordability and appeal of the service, i.e., offering internet time at low costs via 'tingi-tingi.' Lastly, ensure technological adequacy, such as computers capable of running popular online games and performing general internet tasks efficiently .

A Pisonet business might face several operational challenges, including intense competition from other internet cafés and mobile data services that offer similar flexibility. Managing overhead costs, such as regular maintenance of computer units and consistent internet speeds to ensure quality service, can be demanding. Additionally, aligning operational hours to accommodate the target demographic without impacting students negatively requires strategic planning. There is potential for revenue fluctuation due to demand variability, necessitating a robust financial strategy to mitigate risks. Furthermore, technological upgrades may be necessary over time to keep pace with advancing software requirements for gaming and internet usage .

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