How to Start an Arcade Business
When you think of an arcade, I think back to the 1970s and 1980s, where you would get your group of friends, some nickels, dimes, or whatever it may be, and you would head down to play Donkey Kong for hours. Gone are those days, but it shouldn’t stop you from starting an arcade business.
In fact, you’re going to find that business such as this can be quite lucrative if you place it in the right location, as well as have the right games. Like any business, it’s going to take a lot of planning, as well as capital to start up since arcade games aren’t cheap!
To get you started with the process, I wanted to give you some pointers that I would use, if I were to start up an arcade business. Your area may be different and this is why it’s always important that you start up a business plan to ensure that you’re going to make it financially.
You need foot traffic
The error I see way too often is that business owners become too cheap with their business space. Listen! If you want to get the foot traffic, you’re going to need to spend the money. Why do you think mall rent is so expensive? If I were you, consider the high traffic strip malls / shopping malls.
Do more than just games
When kids and even adults come to your arcade, they are going to want to have more than just games. This is why I would highly encourage that you serve drinks and food to keep them there. Look at places like Chuck E Cheese, as well as others. People are going to get hungry and if you don’t have food, they are going to leave fast.
Think more of an adventure theme
I know of some great arcades in my area and they have more than arcade machines. They have go-kart tracks, batting cages, and more. That, in my eyes spells success. I love the idea of playing more than just video games.
You’re going to want to have rewards
Kids love playing video games, but what happens if you don’t have rewards to give out? Kids are going to slowly lose their focus. So, instead make sure that you offer tickets, so that they can claim their prizes. You will find that you don’t have to pay top dollar for your prizes.
Now, there are going to be the obvious where you have to advertise, set up a location, funding, and more. I understand that. This is what a business plan is for. This is going to be more for what kind of ideas t hat you can use.
How much is it going to start up something like this? It’s all going to depend on what you want to do. If you’re talking mini golf, go karts, and more, you’re looking at $500,000+
What kind of experience will I need? It would be nice to know how to fix your machines, go karts, and more. Even if you don’t, you can always hire help.
How would you market this business? Coupons would be a big hit. Use the newspapers, as well as school newspapers, radio, Internet, Facebook, and more.
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