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  WINDY CITY TIMES

Digital Cafe: Reality Bytes
GLBT Technology & Business Series
by Andrew Davis
2003-07-16

This article shared 2161 times since Wed Jul 16, 2003
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When you walk into Wicker Park's Digital Cafe, you're immediately struck by how different it is from the traditional Internet coffeehouse. Among the things you'll find are funky carpeting, a caged parrot (that may be gone by the time you read this article), large abstract paintings, big couches, and dance music playing in the background.

Meeting owner Nick Comppen is as almost as surreal an experience as strolling into the café. He's a friendly, openly gay Republican who seems like adrenaline in human form. To say Comppen is outspoken is like stating that Las Vegas is moderately warm.

We held court in Comppen's self-described 'ghetto fabulous' office in the café and dished about hard work and bureaucracy in Chicago.

Windy City Times: How did Digital Café get started?

Nick Comppen: Last fall, my then-boyfriend and I moved out of Boystown because we thought [moving] would be more productive for our relationship. We moved to [Wicker Park] and I walked past this area several times and always really liked it. I knew it needed tons of work—which it still does—but I decided to open a business here. I had some money saved, so I got started.

I called the phone company and it took three and half months to get DSL. So I went to Kinko's in the meantime and it cost $16.50 an hour. Also, I noticed that there were a lot of gay and lesbian people in the neighborhood that like Kinko's, but the people [there] make you feel like crap. So I decided to start an Internet café and figured out what to do just to break even. If I were really in it for the money, I'd be in the Loop or in a better location. I like helping people search for jobs and make travel arrangements. So if we break even doing this, I'll be happy.

WCT: Well, the goal of a business is to at least break even, isn't it?

NC: And we will. [Starting the café] has also given me the opportunity to hire two kids who otherwise wouldn't have jobs. It's really hard to find a job these days—unless you want to work at the Lucky Horseshoe. (Laughs)

We started with me and my spouse at the time. Now it's me and the two people I've hired, so we're doing OK.

WCT: Give me an idea of how hard it is to start a small business.

NC: Well, it cost me my relationship of two and a half years, to be quite honest. This is the primary reason that my relationship ended. You have to sacrifice money, people, or time. We work what I call Tokyo bar hours. We're actually open until the last customer leaves. We officially close at nine, but if you're here 'til one in the morning then I'm here 'til one in the morning.

No matter what you pay someone, no one cares about your business as much as you do. You have to put a lot of yourself into it. I don't have a day off even though I have two employees.

A lot of unexpected things can happen. Securing funding is impossible. I had another business plan that would've made a ton of money, but I can't secure funding from the SBA—and it's been two years. I'm not a minority—and being gay's even worse.

WCT: So being gay doesn't qualify you?

NC: If ENDA had passed, I would qualify. You have to be prepared to do what it takes to survive. I started with $60,000 in cash with another $20,000 in credit cards. Yet I still have a lot of stuff to do. I thought it would cost $40,000 and I'd have a $20,000 buffer. The first thing I learned about dealing with the city of Chicago: I would absolutely encourage everyone to not open a business in the city of Chicago. Dealing with the permits and the runaround ... I waited in line for four to five hours a day—four days in a row—just to get my occupational license.

[Here's] another example: I paid $50 a month for a dairy permit. We don't sell anything dairy[-related]. Our coffee creamer that we give away is not refrigerated and will outlive you and me. I'd have four inspections just for those—each of which cost me a few hundred bucks.

Here's another surprise: Because I'm on [the east] side of Ashland Avenue, I'm inside what's called the Navy Pier Exposition Authority Zone. Now I've never heard of such a thing and I got a letter saying that my tax bill for the first month is $2,640. I called them and they explained that the bill [represents] two percent of my gross revenue for everything I sell, including food and drinks. It's to help the vendors at Navy Pier offset their rent because, somehow, I'm taking business away from them. Being 3.8 miles away, that's just asinine.

Dealing with the state and federal government were great; things handled themselves. Dealing with the city was completely different. You never have enough paperwork.

I learned a lot about liability insurance. The parrot has to go because it's a liability. You have to pay for insurance, in advance, for a year from the date you're licensed.

WCT: OK, OK. So what's the upside to all of this?

NC: I like the challenge of dealing with the city. On principle alone, I say that they will win but I won't lose. I'm a gay Republican and I believe in paying my taxes. What I have a problem with is when they try to victimize you.

Even since I started advertising with Windy City Times, I get new inspectors. The health inspectors stop by even though we don't sell any prepared food. The guys at Stevie B's get crap all the time, [possibly] because they're Black.

I've learned about making alliances with other businesses. When I first moved in, I went up and down Ashland and introduced myself to every employee and business owner. I gave them free coffee and Internet access, but it's benefitted me in many ways.

For example, there's security. We also look out for each other when the city comes around. The fire department's the worst. They will come in with a surprise inspection and charge you a fine.

WCT: I know you like challenges, but [all of this] would kill most people.

NC: The other side is that you're your own boss. I have an MBA and a Bachelor's in computer science. I could make $80,000 a year—and I did, working for the government. Actually, I could make more money right now working at McDonald's and have less stress. But, at the end of the day, it's mine. I'm accountable only to myself. I set the prices, policies, and rules. There's a sense of responsibility in that. I like knowing the people [sitting at the computers] and being able to trust them.

WCT: So where would you like to see this business go?

NC: At the end of the fall, I'm planning on opening a second location on Halsted and Broadway. There are other Internet cafes there, but they're in it for a different reason. They're in it more for greed than to help people. Plus, they have more of an industrial setting. We can offer really, really low rates.

I'd like to finish this place. We're doubling our space. There's another area downstairs. We'll bring in a couple more couches and some video game units.

With a lot of Internet cafes, you can just surf the Net. Here, you can use Microsoft Office, PageMaker, DreamWeaver, or Photoshop and actually work from here. vWCT: There's a place called Mega Cybercafe in Schaumburg that's supposed to open later this year. It will have 150 Pentium PCs and even billiard tables. What's your take on that—is it too much?

NC: There's one in Manhattan that has 700 workstations and charges a dollar an hour. It's open 24 hours a day. It's like going to IKEA, which is kind of cool—but kind of not. We're more the neighborhood café for people who want to hang out. I don't have a problem with [a place like Mega Cybercafe]. A guy told me he's going to open a place on Milwaukee Avenue and put me out of business. I encouraged him to do so. I budgeted $9,000 for licenses and permits—and it cost me $31,000. So, he's welcome to go ahead.

WCT: What tips do you have for a person who wants to start a small business?

NC: 1. Secure funding. 2. Do the research and do it again. 3. Shop for the ideal location. 4. Be prepared to go out of business; have an exit strategy. 5. Set boundaries and get feedback when it comes to personal relationships; know who's going to be there to help you. At the end of the day, though, be prepared to just count on yourself. 6. Be prepared to play hardball with the legislature. 7. Be prepared to get your hands dirty [literally]; get involved with your business. 8. Most importantly, you've got to take the risk. Even if you fall on your face a dozen times, you've got to take the risks.

*****

Digital Café is located at 1331 N. Ashland Avenue in Chicago and the phone number is (773) 384-4881. It features brand-new workstations, including PCs with Windows XP Professional software. You can scan, e-mail, fax, print, copy and even utilize teleconferencing software. Moreover, the hourly rate is only $6. Feel free to e-mail Nick at nick@digitalcafechicago.com and please check out the cafe's Web site at www.digitalcafechicago.com . I'm at westelm406@yahoo.com .

----------------------------------------

GLBT Technology & Business Series

IBM and Windy City Media Group present a year-long series of profiles of leaders in the GLBT business and non-profit world. At the end of 2003, IBM and WCMG will present awards to key business leaders.

Please nominate businesses or individuals to be profiled by sending a short description, contact info, and your info to: editor@windycitytimes.com .

Take advantage of IBM's expertise in helping to uncover new revenue opportunities and reveal competitive advantages for your business; contact Sarah Siegel, Program Director of GLBT Sales, at ssiegel@us.ibm.com . IBM: The Technology Leader for the GLBT community, is proud to sponsor the GLBT Technology Leadership Campaign.


This article shared 2161 times since Wed Jul 16, 2003
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