Since frequently visited Warnet (Warung Internet) or Internet Rental on my secondary school time, i always wanted to open my own. Recently i had discussion with my friend-he’s a good businessman, with good entrepreneurial instinct- about opening business venture in Indonesia. When i mentioned Warnet, he quickly rebuked my idea saying that he already had a discussion and calculation, which concluded that the particular business idea is having very small ROI with a huge TCO. Unfortunately, that time i couldn’t make my argument since i never actually research the ROI and TCO of that business model.

So hopefully for the next few days i’ll carefully research this topic.

Maybe today i’ll try to write about TCO (Total Cost of Ownership)

Initial costs cover the costs to start the business. These costs are:

  • leasing the building
  • buying new hardwares and softwares
  • revamping the building
  • buying furnitures
  • initial advertising.

Operational costs cover the costs to run day to day business. These costs are:

  • Electricity
  • Maintenance
  • Salary
  • Security

Hmm.. while i was pondering about the idea, i went to Wikipedia, realizing that i have so many things to read about corporate finance

I wish i can just download them into my brain like Neo did 🙂

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