Business Number One :: The LAN Shop

Growing and Diversifying: The Journey of a LAN Shop Entrepreneur

Starting a LAN shop business may have been the easiest part of the plan for this determined entrepreneur, who has successfully operated one for nearly two decades. Now, the focus is on ensuring stability and profitability while exploring opportunities for growth and diversification.

One of the first steps in expanding the business involves adding snacks or pastries to the shop's offerings. With plans for minor renovations underway, the timing seems perfect to introduce these additional treats. To source the necessary equipment, the entrepreneur intends to reach out to the purchasing department of their company for quotations on items such as a juice dispenser, a refrigerator, and a glass shelf.

Situated outside a subdivision and along a busy highway, the LAN shop caters not only to residents in the nearby area but also to passersby. Despite having an average of 30 to 50 customers per day, the business manages to cover expenses and allocate funds for maintenance and future upgrades.

Differentiating themselves from a newly opened shop nearby, the entrepreneur has priced their services at P20 per hour, which is P5 higher. However, this decision hasn't impacted their customer base negatively. They have managed to retain loyal patrons, and those who switched to the competitor were typically less frequent spenders. This strategy is a reminder that customer volume alone does not equate to profits, as it can be undermined by unsustainable pricing.

For instance, while some LAN shop owners focus on maximizing the number of transactions, they fail to consider the impact of low pricing on their profitability. Comparatively, this savvy entrepreneur values pricing as a key factor. By charging slightly more, they achieve the same P300 in just 15 hours of operation, while their competitors need 20 hours. These five idle hours contribute to lower depreciation of their computers and ultimately a more sustainable business model.

Looking ahead, the entrepreneur aims to position the LAN shop as an integral part of their plans for four additional businesses. To test the viability of incorporating snack bars into these future ventures, the LAN shop will serve as a prototype. Success in generating sales and customer satisfaction will not only benefit the LAN shop but also provide additional capital for future endeavors.

Furthermore, recognizing the potential demand for desktop services in the planned businesses, the entrepreneur has wisely invested in equipment such as scanners and printers. This ensures they are prepared to offer these services should the need arise.

In the journey of this LAN shop entrepreneur, strategic planning, differentiation through pricing, and diversification of services are key pillars for success. With a focus on sustainable growth and calculated risk-taking, their business ventures are poised for a bright and prosperous future.

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