I Want to Start a Small Business
How to Start a Video Arcade
Starting a video arcades and internet gaming center can get you on the path to a secure financial future if you do it right. Here is a friendly, comprehensive guide that may be key to your ultimate success.
Thinking about opening a video arcades and internet gaming center? We tell you what you need to know to get started.
Owning and operating an arcade can be a blast. Here's how to get started.
Target Markets for Arcade Businesses
As you probably know, the rise of Nintendo, Sega, Wii and other computer gaming has not been good news for arcade businesses. But despite the prevalence of home gaming, arcades continue to eke out a profitable livelihood based on their ability to know their target market and cater their business to their needs.
From the outset of your startup, you'll need to target a specific market segment. Some arcades focus on teens while others appeal to younger kids and families. You can try to create an arcade that appeals to both demographics, but it's likely that the result will be a mish-mash of gamers, none of whom will be completely satisfied with the machines your arcade offers.
Game & Machine Inventory
To a large degree, your target market will determine the kinds of games and machines featured in your arcade. Kids and families respond to simple, traditional games like skee ball and machines that allow tiny gamers to experience the thrill of gaming. Teens, on the other hand, are into video games that let them fully participate in the experience through sights, sounds and movements.
Whatever market you choose, keep in mind that the goal is to offer experiences gamers can't have in their living rooms. Rather than filling your space with basic arcade games, focus on machines that enhance the player's experience with cockpits or other features.
Most arcade centers reward players with tickets that can be redeemed for prizes at a "store" located within the arcade. Ticket redemption centers strengthen your value-added component and encourage players to play more games to acquire their desired number of tickets.
Arcade Business Location
Game centers come in a range of sizes, from small 2,000 sq. ft. establishments to 10,000+ sq. ft. mega-arcades. You're going to want to fill up your space, so the trick is to find a location that is sized to fit your equipment budget.
But more importantly than size, you need to find a high-traffic location for your arcade business. Malls, tourist venues and other locations that attract large volumes of young, pedestrian traffic are ideal spots for arcades.
Tips for Writing a Video Arcades & Internet Gaming Center Business Plan
As a startup entrepreneur, you're learning that small business ownership can be a lonely career path. That's especially true when it comes to writing a business plan � the seminal document that will shape the direction of your new video arcades and internet gaming center.
Fortunately, you don't have to tackle your video arcades and internet gaming center's business plan by yourself. These days, there are tons of great resources and solutions available to support the business plan writing process.
Our Business Plan Help section discusses some of the business plan resources other entrepreneurs have found useful.
Can Local Business Sustain You?
If you are similar to most video arcades, much of your customer base will be local community members. In making your business projections, don't assume that your business will immediately be popular with the local community. To survive, you need to be able to do well enough, even if business ramps much more slowly than expected.
Check Out Competitors
Before you open a video arcades and internet gaming center within your community, it's a smart move to find out what the competition looks like. Use the link below to find competitors in your area. Complete the form by entering your city, state and zip code to get a list of video arcades that are close by.
Gain a knowledge of how existing firms have positioned themselves in the marketplace, and then design your business in a way that sets you apart from the others.
Getting Advice from Experienced Entrepreneurs
If you are seriously contemplating launching a video arcades and internet gaming center, it's a wise move to talk to somebody who is already in the business. It's very unlikely that the local competition will talk to you. The last thing they want to do is help you to be a better competitor.
But, a person who owns a video arcades and internet gaming center in a different city may be willing to share their entrepreneurial wisdom with you, provided that you won't be directly competing with them. Indeed, many experienced entrepreneurs enjoy offering advice to startup entrepreneurs. Our estimate is that you may have to contact many business owners to find one who is willing to share his wisdom with you.
So, what can you do to find a video arcades and internet gaming center entrepreneur who is willing to talk to you but doesn't live nearby?
Here's one way to do it. Just use our link below, find somebody and call them.
Pros & Cons of Buying a Video Arcades & Internet Gaming Center
An acquisition can be a great way to enter video arcades and internet gaming center ownership. But it's important to evaluate the benefits and drawbacks of buying a business before you decide on either an acquisition or startup approach.
BENEFITS: Acquired video arcades should be profitable right out of the gate; they should also be capable of demonstrating a loyal customer base, brand identity and operational efficiencies.
DRAWBACKS: Acquired video arcades sometimes have entrenched processes and systems that run counter to your business objectives. If an acquisition target appears unmalleable, move on to another prospect.
Consider Franchising
Your chances of achieving the entrepreneurial goal of doing well with your venture increase if you decide to franchise and leverage their successful brand and track record.
If your goal is to start a video arcades and internet gaming center, you ought to determine whether franchising might help you avoid common entrepreneurial mistakes.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
Entrepreneur Interviews
These interviews should be of interest to you.
- Interview with Juliette Brindak, Co-Founder of Miss O & Friends
- Interview with CEO Peter Karroll of International Arts Management Corporation
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