

Ask HN: Review my non-IT business idea - peterwnicholls

So this is an idea that I still have not fully figured out in my head. Not sure if there is a market there for it, what do you think? Just going to chuck it out there...<p>I am sure everyone has noticed the rise of cafes and tons of other places offering wifi all over the world and from what I can see there are lots of people sitting in these places mainly for the wifi.<p>Anyways, what I am wondering is do you think the demand for a place where you can sit down in a comfortable environment and use the wifi got to the point where it be almost viable to open airport lounge type places in city centers?<p>I think you would have to start in a premium end of the market and charge an entry fee of $10 or something. Obviously have other revenue streams from food or what not but hopefully you get the idea.<p>Basically think of it like a really spacey cafe / business center / internet cafe type place...
======
mahmud
Have you heard of 3G? I am on one, and I can get online anywhere throughout
Sydney. When WiMax comes around you will be seeding torrents from your mobile
phone.

------
alaskamiller
The most common term for this is coworking space. Major markets have these,
such as Hat Factory, Citizen Space in SF, Blankspaces in LA. There's also
niche ones, such as a place in NYC that caters specifically to just writers.

It's a pretty nifty idea and I thought of getting this going with my business
partner in Silicon Valley but dropped the idea after market research and a
variety of roadblocks/problems popped up.

Things such as:

\- Real estate costs are prohibitive. Despite the surplus of office buildings
costs are still insane and lease terms weren't flexible.

\- Permit requirements for operation and hours. In our area things have to
close at certain times, limiting access to patrons such as the students in off
hours.

\- I believe in Silicon Valley (south bay specifically) the market for
something like this is too small to be operational. On a tangent, there's a
huge workspace with a bevy of expensive tools called TechShop in Menlo Park
that after 3 years of operations have only attracted 400 or so paying monthly
members.

\- Most people don't want to pay the fees. The inconveniences of Starbucks
sitting is worth the free wifi. Again, in a similar vein in Silicon Valley a
few years ago PC cafes where you can play Counter-strike or World of WarCraft
were really popular. I remember 10 shops open in the area one time but they
all eventually one by one folded. The only one that's still open charges $3 an
hour to use their computer and even though they have a decent sized regulars
(about 200 or so every week) they're still struggling.

These things might or might not affect you in your market, or they might not
even bother you. We had intended to scale this but if you can get a decent
sized room for something with a good lease, some good marketing, elbow grease,
you might make it work.

Alternative revenue can be from renting out desks, lockers, selling drinks and
snacks, charging for access per hour, offering long term memberships, rent out
the place for special events, conferences, rent computers or equipment such as
projectors, scanners, printers.

Access to capital or a credit line to last for at least 6 months is definitely
necessary.

