arcade games business plan

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Arcade Business

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How to Start an Arcade Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 7, 2022 Updated on May 8, 2024

Investment range

$65,000 - $130,000

Revenue potential

$156,000 - $312,000 p.a.

Time to build

1 – 3 months

Profit potential

$47,000 - $94,000 p.a.

Industry trend

Remember going to the arcade with your friends when you were a kid? Even though most gamers these days play at home, arcades are alive and well. The industry was booming before the pandemic and is now bouncing back in a big way, up nearly 50% from its 2020 low and expected to grow nearly 17% in 2022 alone. This could be the perfect time to relive your childhood and start your own arcade. You’d be helping people have fun and making good money at the same time.

But first, there’s much you need to know about entrepreneurship. Luckily, this step-by-step guide details all you need to know about launching a business and will put you on a path to running your own successful arcade.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting an arcade has pros and cons to consider before deciding if it’s right for you.

Good Money – Profit margins for arcades are high
Fun – Play your own games whenever you want
Growing Market – Arcades are booming as family entertainment
High Startup Costs – Games are expensive
Crowded Market – Compete with the likes of Dave and Buster’s

Arcade industry trends

Industry size and growth.

Industry size and past growth – The US arcade, food and entertainment complex industry is worth $3.1 billion in 2022 after expanding more than 50% since 2020.(( https://www.ibisworld.com/industry-statistics/market-size/arcade-food-entertainment-complexes-united-states/ ))
Growth forecast – The US arcade, food and entertainment complex industry is projected to grow 16.5% in 2022.
Number of businesses – In 2022, 5,634 arcade, food and entertainment businesses are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/arcade-food-entertainment-complexes-united-states/ ))
Number of people employed – In 2022, the US arcade, food and entertainment complex industry employs 54,594 people.(( https://www.ibisworld.com/united-states/market-research-reports/arcade-food-entertainment-complexes-industry/ ))

Trends and challenges

Trends in the arcade industry include:

Virtual reality games are becoming more and more common in arcades.
In recent years, arcades have become a popular vacation activity.

Challenges in the arcade industry include:

Home gaming poses a threat to the arcade industry, as many gamers prefer to play at home.
The negative publicity that violent games receive make it a challenge for arcades to have those types of games, which are still in demand by gamers.

How much does it cost to start an arcade business?

Startup costs for an arcade range from $65,000 to $130,000. The largest expense is for the games, which can cost between $6,000 to $9,000 each, and the space itself.

How much can you earn from an arcade business?

The average revenue per machine is about $300 per week. Your profit margin after rent, overhead, and labor should be about 30%.

In your first year or two, if you have 10 machines, you’ll be bringing in $156,000 in annual revenue. This would mean $47,000 in profit, assuming that 30% margin. You could add 10 more machines at this point. With annual revenue of $312,000, you’d make a tidy profit of $94,000.

What barriers to entry are there?

There are a few barriers to entry for an arcade. Your biggest challenges will be:

The high cost of the games
Competing with larger arcades and entertainment centers

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Step 2: hone your idea.

Now that you know what’s involved in starting an arcade, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research arcades in your area to examine their products/services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing an arcade with virtual reality games, skeeball, the claw machine or a shooting game.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as fighting games or classic arcade games.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your products or services

You’ll just need to determine what games to purchase. Popular games to choose from might include:

Pinball machine
Air hockey
Mortal Kombat and fighting games
Big Buck Hunter and shooting games
Jurassic Park
Retro arcade games like Pac-Man

You could also offer snacks and alcoholic beverages with the right licensing. You could even make a game and craft beer arcade.

How much should you charge for arcade games?

Individual games generally cost $.25 to $.50 to play. Some arcades offer $10 to $15 cards or unlimited play for a limited period, such as one hour for $10. You should aim for a profit margin of about 30%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will depend on the type of games you purchase. If you buy retro arcade games or family-oriented games, your target market will be more established people who you can find on Facebook.

Where? Choose a location for your arcade business

You’ll need to rent a space for your arcade, preferably one with high foot traffic, such as in a mall. When considering a location, it’s also important to think about your target audience. Look for a location near schools or universities if you plan on targeting younger demographics, or near family-friendly attractions if you plan on targeting families with children.

You could also consider a location near popular nightlife spots if you plan on targeting adults. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

Central location accessible via public transport
Ventilated and spacious, with good natural light
Flexible lease that can be extended as your business grows
Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm an Arcade Business Name

Here are some ideas for brainstorming your business name:

Short, unique, and catchy names tend to stand out
Names that are easy to say and spell tend to do better
Name should be relevant to your product or service offerings
Ask around — family, friends, colleagues, social media — for suggestions
Including keywords, such as “arcade” or “game room”, boosts SEO
Name should allow for expansion, for ex: “Playtime Entertainment” over “Pinball Palace”
A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.

Find a Domain

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create an Arcade Business Plan

Here are the key components of a business plan:

Executive Summary: Present a brief overview of your arcade business, highlighting its commitment to providing a diverse array of gaming experiences, from classic arcade games to modern virtual reality setups.
Business Overview: Describe your business’s focus on operating an arcade that offers a variety of games, including video games, pinball machines, and redemption games.
Product and Services: Detail the range of entertainment options, such as arcade games, party hosting services, and possibly food and beverage offerings.
Market Analysis: Assess the demand for arcade entertainment in your area, considering factors like local demographics, entertainment trends, and family-friendly activities.
Competitive Analysis: Compare your arcade to other local entertainment venues, focusing on your unique offerings like retro game collections, modern VR experiences, or party packages.
Sales and Marketing: Outline your strategy for attracting customers, including advertising campaigns, social media engagement, and promotions for groups or parties.
Management Team: Highlight the experience and skills of your team, particularly in entertainment management, customer service, and business operations.
Operations Plan: Describe the operational aspects, including game maintenance, customer service, and facility management.
Financial Plan: Provide an overview of financial aspects, covering startup costs, pricing strategies, and expected revenue.
Appendix: Include supplementary documents such as equipment lists, market research data, or floor plans to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to arcades.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your arcade will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding an arcade business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Licenses/Permits

Starting an arcade business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your arcade business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
Business Property: Provides coverage for your equipment and supplies.
Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
Worker’s compensation: Provides compensation to employees injured on the job.
Property: Covers your physical space, whether it is a cart, storefront, or office.
Commercial auto: Protection for your company-owned vehicle.
Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software, such as Clubspeed , centeredge , or semnox , to manage party reservations, purchases, and payments.

Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

Theme Nights and Events: Organize themed nights or events like retro gaming nights, tournaments, or cosplay contests to create a buzz and attract diverse crowds.
Loyalty Programs: Implement a loyalty program with rewards such as free game tokens, exclusive access, or discounts for frequent visitors to encourage repeat business.
Social Media Challenges: Leverage social media by creating interactive challenges, like high-score competitions or user-generated content contests, to boost online engagement and attract a wider audience.
Partnerships with Local Businesses: Establish partnerships with nearby restaurants, cinemas, or entertainment venues to cross-promote and offer joint discounts, expanding your customer base.
Themed Decor and Ambiance: Enhance the overall customer experience by investing in themed decor and ambiance that aligns with popular gaming trends, creating a unique and immersive environment.
Student and Group Discounts: Attract students and larger groups by offering special discounts during off-peak hours or designated days, fostering a sense of community and encouraging group visits.
Mobile App Integration: Develop a mobile app for your arcade that allows users to check real-time availability of games, receive special offers, and accumulate points for discounts.
Community Engagement: Actively engage with the local community by sponsoring school events, sports teams, or charity initiatives, establishing a positive reputation and building a supportive customer base.
Referral Programs: Encourage word-of-mouth marketing by implementing referral programs where existing customers receive bonuses or discounts for bringing in new patrons.
Dynamic Pricing: Implement dynamic pricing strategies, such as happy hour discounts or variable pricing based on peak hours, to optimize revenue and attract customers during slower periods.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your arcade meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your arcade business could be:

Family fun for all with classic arcade games
Beat your friends at all the hottest games!
Craft beer and the best retro arcade games

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running an arcade, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in arcades for years and can offer invaluable insight and industry connections.

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in arcades. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for an arcade business include:

Arcade Attendants – take payments, assist customers
General Manager – scheduling, accounting
Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run an Arcade Business – Start Making Money!

Arcades are booming as the industry roars back after the pandemic. With an investment in games and a good location, you could start your own arcade and make good money riding the industry wave. The keys are to buy games that will appeal to a certain target audience, have a great location, and provide a great customer experience.

You came to the right place to learn about the business, and now you’re ready to get your game on and start your successful arcade!

Arcade Business FAQs

Typically, each machine can generate $200 to $400 per week in revenue. You just need to choose the best games to appeal to your target market, such as classic games for families, or action games for a younger crowd.

You should buy games that target a certain market of people. If you want to attract families, you should buy classic arcade games and games that appeal to children. If you want to attract a younger crowd, look at the types of games that are trending, such as action games.

Generally, games that offer a high level of engagement and excitement, such as racing games, shooting games, and interactive experiences, tend to be more profitable. Games that offer the opportunity to win prizes, such as claw machines and redemption games, can also be popular and profitable.

To attract and retain customers in your arcade business, you can focus on providing a high-quality customer experience that is engaging, entertaining, and memorable. This may include offering a wide variety of games and experiences, providing excellent customer service, hosting special events and promotions, and utilizing technology to enhance the customer experience.

To create a unique and engaging atmosphere in your arcade, you can focus on creating a theme or ambiance that appeals to your target audience. This may include using lighting, music, and decor to create a specific atmosphere, such as a retro or futuristic vibe.

To source and purchase arcade games for your business, you can work with manufacturers, distributors, and wholesalers in the industry. You can also attend trade shows and industry events to learn about new games and technologies, and network with other arcade owners to get recommendations and referrals.

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Arcade Business Plan Template

Written by Dave Lavinsky

Arcade Business Plan

You’ve come to the right place to create your Arcade business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Arcades.

Below is a template to help you create each section of your Arcade business plan.

Executive Summary

Business overview.

Hal’s Arcade is a new ultimate arcade gaming experience located in downtown Seattle, Washington. We offer every game you can imagine from classic arcade games to one of a kind VR experiences. We aim to be the #1 arcade in the Seattle area and guarantee that every customer who visits us will find a game they will enjoy.

Hal’s Arcade is founded and run by Hal Jenkins. Hal has loved arcade games his whole life and has dreamed of opening up a local arcade in his local neighborhood. After years of planning and saving money, he finally is ready to lease an arcade space and start his dream business.

Product Offering

Hal’s Arcade is the best place in town for the ultimate arcade experience. We provide hundreds of games and activities so everyone who visits us can find something to enjoy. We expect that our most popular games will be classic arcade games, VR games, multiplayer sports games, and first person shooters. We also serve food and drink and have prizes and merchandise that can either be purchased with tickets won from games, cash/credit cards, or arcade cards. Groups can reserve private rooms for private parties and celebrations.

Customer Focus

Hal’s Arcade will serve the residents of the Seattle, Washington area. The city is full of families, groups, and individuals who love to connect with their inner child through arcade games. We are open to anyone who wants to spend a few hours playing in our arcade.

Management Team

Hal’s Arcade is founded and run by Hal Jenkins. Hal grew up playing arcade games with his father and brothers and has fond memories in arcades and gaming centers. He has dreamed his whole life of running his own arcade that can be the background to similar memories for other residents in the Seattle area. His goal is to build and run the most popular arcade in the Seattle area.

Success Factors

Hal’s Arcade will be able to achieve success by offering the following competitive advantages:

An arcade card that makes the arcade experience more convenient and enjoyable.
Modern and comfortable environment with a family-friendly atmosphere.
Moderate pricing that everyone can afford.
Friendly and helpful staff.

Financial Highlights

Hal’s Arcade is seeking $425,000 in debt financing to launch its arcade. The funding will be dedicated towards securing the arcade space and purchasing equipment, opening inventory, and working capital. The breakout of the funding is below:

Arcade space build-out: $100,000
Opening inventory, supplies, equipment, decorations: $200,000
Three months of overhead expenses (payroll, rent, utilities): $50,000
Marketing costs: $50,000
Working capital: $25,000

The following graph below outlines the pro forma financial projections for Hal’s Arcade.

Company Overview

Who is hal’s arcade.

Customers who visit our arcade have the option to purchase an arcade card. The card can be used to purchase anything in the building, including games, prizes, merchandise, and food. It can also be used to store tickets that are won from our games.

Hal’s Arcade is founded and run by Hal Jenkins. Hal has loved arcade games his whole life and has dreamed of opening up a local arcade in his local neighborhood. He loves seeing the joy that arcade games bring to others and is eager to start a business that will bring that joy to his customers. After considerable planning, Hal is now ready to open up his arcade.

Hal’s Arcade History

Before starting his business, Hal conducted a market analysis and consumer survey to see how popular his arcade would be. Luckily, the results from both show that many local residents would be excited to frequent the new arcade. After Hal finished his analysis and survey, he incorporated his new arcade as an S-Corporation on May 1st, 2023. Since incorporation, Hal’s Arcade has achieved the following milestones:

Developed the arcade’s branding image, social media, and website
Found a location and signed a Letter of Intent to lease it
Finalized food and drink menus
Found supplies who can source prizes and merchandise
Began recruiting key employees

Hal’s Arcade Services

Hal’s Arcade is the best place in town for the ultimate arcade experience. We provide hundreds of games and activities so everyone can find something to enjoy. Some of the types of games we provide include:

Classic arcade games
Multiplayer sports and racing games
First person shooters

Customers can also purchase food and drinks while they play. We offer a full menu of options, including sandwiches, burgers, and pizza. Large groups can reserve private rooms for parties and special events.

Customers have the option to purchase an arcade card when they come to our arcade. Everything in the building can be bought with this card, including food and prizes. Furthermore, tickets won from our games will be stored on the card. This makes the arcade experience more convenient as every transaction can be stored on this card. Customers don’t have to worry about the hassle of finding the right credit card or carrying hundreds of tickets as they walk around the arcade.

Industry Analysis

The Arcade industry in the United States is expected to increase in revenue over the next five years. Consumers are expected to continue spending money on entertainment experiences and for food and drink at restaurants and similar establishments. Growth during most of the period will be supported by increased consumer spending and per capita expenditure on food, drink, and gaming experiences. Growth is also influenced by consumers’ excitement to go out and enjoy themselves after being cooped indoors during the pandemic years.

Though the industry declined during the pandemic years, the arcade industry is expected to recover. According to Data Bridge Market Research, the industry is expecting to grow at a CAGR of 5.10% from now until 2029. This growth should be enough to help the industry recover from the pandemic and sustain new growth and profit. Therefore, this is a great time to open up a new arcade.

Customer Analysis

Demographic profile of target market.

Hal’s Arcade will serve all the residents of the Seattle, Washington area who are craving the experience of a fun, local arcade. Everyone is welcome but we expect our target demographic to be mostly young adults, families, and large groups.

Customer Segmentation

Hal’s Arcade will primarily target the following customer profiles:

Young adults
Large groups/special events

Competitive Analysis

Direct and indirect competitors.

Hal’s Arcade will face competition from other companies with similar business profiles. A description of each competitor company is below.

Terry’s Arcade

Terry’s Arcade has been the go-to family arcade experience for decades. Terry’s prides itself on its selection of retro and vintage arcade games that have been around for several decades. The arcade has hundreds of options to choose from and even provides skee ball, air hockey, and other activities. They also sell snacks, drinks, and merchandise for customers to enjoy while playing in the arcade.

Chuck’s Arcade Palooza

Chuck’s Arcade Palooza is a small arcade center that has gained a lot of popularity. Though they are not a large facility, they still cram their arcade with some of the most popular arcade games of today and yesterday. Chuck’s has received consistent raving reviews for years, and is a hotspot for entertainment for young adults throughout the Seattle area.

Seattle’s Center of Fun

Seattle’s Center of Fun has been a popular spot for local kids and family entertainment for decades. Providing numerous games and activities, Seattle’s Center of Fun is a great place to take your kids for a party, event, or night out. The center is far more than just an arcade. In addition to providing hundreds of arcade games, Seattle’s Center of Fun also offers a full restaurant, a bowling alley, and private rooms for large parties and special events. The center has everything one could want in a fun family night out.

Competitive Advantage

Hal’s Arcade will be able to offer the following advantages over the competition:

Convenient Location : We will be located in downtown Seattle in a convenient location that all residents can easily access.
Management : Our management has considerable experience in the industry and has a passion to provide the best customer service possible.
Affordability : Our pricing will be moderate so all of our customers can afford to enjoy our games and food.

Marketing Plan

Brand & value proposition.

Hal’s Arcade will offer the unique value proposition to its clientele:

High-quality food and drinks
Largest selection of arcade games in town
Premier arcade experience
High-quality merchandise and prizes
Family-friendly atmosphere
Excellent customer service

Promotions Strategy

The promotions strategy for Hal’s Arcade is as follows:

Hal’s Arcade’s location is a promotion strategy in itself. It will be located in a popular and convenient location in downtown Seattle. The area is full of other family-friendly businesses as well as nightclubs and other popular locations.

Social Media Marketing

Hal’s Arcade will use social media to cater to the young adults and the social media obsessed portion of Seattle. Hal will create TikTok, Instagram, Twitter, and Facebook business accounts to post “Coming Soon” announcements as well as images of the arcade and the games we will have.

SEO Website Marketing

The arcade will invest funds into maintaining a strong SEO presence on search engines like Google and Bing. When a person types in “local arcade” or “Seattle arcade”, Hal’s Arcade will appear in the top three choices. The website will include the full menu, location, and list of games customers can play.

Merchandise

We will sell attractive merchandise with our logo and business name on it. When people see our merchandise, they will instantly recognize how fun and exciting our establishment is and want to see the arcade for themselves.

The pricing of Hal’s Arcade will be moderate and on par with competitors so customers feel they receive value when visiting our arcade.

Operations Plan

The following will be the operations plan for Hal’s Arcade. Operation Functions:

Hal Jenkins will be the Owner/Operator of the arcade as well as the Manager. He will oversee the general operations of the arcade as well as interact with guests. To launch the arcade, Hal needs to hire the following staff:
10 wait staff who can wait on guests, serve food and drinks, and help customers throughout the arcade.
5 kitchen staff who will cook customers’ meals.
2 maintenance staff who can keep all the arcade games in working order.
A Marketing Manager to develop the website, social media accounts, photography, and maintain the SEO presence.
An Accountant who will handle the company’s accounting.

Milestones:

Hal’s Arcade will have the following milestones complete in the next six months.

6/1/2023 Finalize lease agreement
7/1/2023 Start design and build out of Hal’s Arcade
8/1/2023 Begin marketing campaign
9/1/2023 Finish design and build out
10/1/2023 Hire key staff
11/1/2023 Open Hal’s Arcade

For the past few years, Hal has managed a local arcade and gained considerable knowledge on the operations and management sides of running such a business. Though Hal does not have any experience running his own company, he will hire several staff who can help him manage the operations, marketing, and accounting aspects of the business.

Financial Plan

Key revenue & costs.

The key revenues for Hal’s Arcade will primarily come from charging customers to play our games. We also expect much of our revenue to come from selling food and drinks as well as prizes and merchandise.

The major cost drivers for the company will include equipment purchasing and maintenance, marketing expenses, salaries, overhead costs, and costs of supplies and food inventory.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

Initial Number of Customers Per Day: 200
Average Meal Order Value: $50
Average Arcade Spending Per Customer: $50
Annual Lease: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, arcade business plan faqs, what is an arcade business plan.

An arcade business plan is a plan to start and/or grow your arcade business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Arcade business plan using our Arcade Business Plan Template here .

What are the Main Types of Arcade Businesses?

There are a number of different kinds of arcade businesses , some examples include: Vintage games and pinball machines, Redemption games, Interactive games, Barcades.

How Do You Get Funding for Your Arcade Business Plan?

Arcade businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start an Arcade Business?

Starting an arcade business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Arcade Business Plan - The first step in starting a business is to create a detailed arcade business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your arcade business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your arcade business is in compliance with local laws.

3. Register Your Arcade Business - Once you have chosen a legal structure, the next step is to register your arcade business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your arcade business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Arcade Equipment & Supplies - In order to start your arcade business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your arcade business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful arcade business:

How to Open an Arcade

How to Write an Arcade Business Plan + Free Sample Plan PDF

Elon Glucklich

7 min. read

Updated April 3, 2024

Free Download: Sample Entertainment Business Plan Templates

Once headed for extinction, the arcade has made a comeback.

There are now nearly 7,000 arcades and entertainment centers across the U.S., and the sheer range of gaming options means there are plenty of opportunities for entrepreneurs looking to carve out a niche in their community.

But to build a successful business around people’s love of gaming, you need to make sure that:

There’s a big enough market for your arcade to be financially viable.
You’re offering something that competitors aren’t.
You have a plan to staff the arcade and keep machines operational.
If you’re operating an arcade bar, you need to ensure minors aren’t getting access to alcohol.

You can account for all of these concerns and improve your chances of starting a profitable arcade by writing a business plan. Plus, if you’re looking for a bank loan or investment to cover major costs like new arcade machines, they’ll need to see your plan before they’ll consider funding you.

Those are just a few of the concerns an arcade business owner might deal with. And it’s why writing a business plan will keep you focused on your market opportunity and run your operation smoothly.

What should you include in an arcade business plan?

Here are a few sections we recommend including in an arcade business plan:

Executive summary

Products & services

Market analysis

Operational plan, financial plan.

There’s a traditional format that you can follow when writing your business plan . But don’t feel like you have to follow that structure if you aren’t looking for funding.

At its heart, a business plan is about creating a growth strategy for your arcade, so focus on the sections most relevant to your situation.

The executive summary introduces the reader to your arcade business. It’s typically written last, because it summarizes your whole plan. But it needs to be engaging.

Start by outlining your arcade’s unique concept and mission. Do you focus on:

Classic arcade games
Cutting-edge gaming systems (i.e. virtual reality)
Competitive play (tournaments)

Next, highlight what sets you apart . Maybe you have a massive game selection, exciting prizes to win, or an appealing food and beverage concept. Tie these features to the desires of your target market and the role your business will play in the community.

Briefly touch on your qualifications, financial outlook and long-term goals as well. Do you have experience in business, entertainment, or the gaming industry? If you’re seeking funding, how much do you need, and how will you use it?

Products and services

The products and services section details the experiences you offer customers, and revenue streams you generate. Start with your core service.

Arcade Games

List the types of games you offer, such as:

Classic cabinets
Pinball machines
Modern gaming consoles
Cutting-edge gaming experience like VR
Interactive games

Some arcades specialize in a type of gaming experience, like retro or sports games. If you’re focusing on a specific genre or era, explain in your business plan why choosing that segment over others gives you an advantage.

Then think beyond the arcade games themselves. Additional revenue streams may include:

Food and drinks
Events and tournaments
Merchandise
Party packages

If you’re already operational, mention any services that have proven successful.

To build a successful arcade with a steady customer base, you must deeply understand your target customers and the arcade industry.

A good place to start in your market analysis is to identify the characteristics of your ideal player:

These include demographic factors, like:

Income level

Are you catering to teens, young adults, or families? Do you expect your customers to be mostly from the area around your arcade, or can you draw people from farther away? Based on average incomes in your area, do you expect cheaper, coin-operated games to be your most popular attraction? Or can you get customers to pay more for premium games, meals, and drinks?

You should also consider the psychographic characteristics of your customers. These are about your customers’ motivations. Are they seeking:

Stress relief
Social outings
Serious competition

The answer to these questions can help determine how to position your arcade to potential customers, as well as the types of arcade games to purchase.

Competitive analysis

Understanding the competitive landscape is an extension of your market research. But due to the complexity of the arcade gaming competition, it’s worth separating into its own section.

Start by listing your rivals:

Direct Competitors: Other arcades, especially those with a similar concept or location.
Indirect Competitors: Family entertainment centers, bowling alleys, home gaming systems – anywhere people spend leisure time and money.

Analyze their strengths and weaknesses. Consider:

Game Selection: Do they offer a similar mix, or specialize in specific genres?
Atmosphere: Is it modern, family-friendly, or geared toward serious gamers?
Pricing & Promotions: How do their prices compare to yours? Do they run specials or loyalty programs?
Customer Experience: Look at online reviews – what do people praise or criticize?

The key to your competitive analysis is determining what will make people choose your arcade over other options. It could be that you have a larger selection of games, or a more approachable atmosphere. Clearly spell out your competitive advantage in your business plan.

Your operational plan maps out the day-to-day work that keeps your arcade running smoothly. Here’s what to cover:

Describe your space

Square footage
Special features (party room, kitchen, etc.)

If you haven’t secured a location, outline your ideal requirements.

Arcade machines
Coin and token machines
Kitchen and bar equipment
Food and drink supplies
Cleaning supplies

Archase games require periodic upkeep, so be sure to outline your plan for regular maintenance and how you’ll handle unexpected breakdowns. Also, detail where you will source games, parts, prices, food and drinks.

The complexity of your operational plan depends on your arcade’s size and staffing needs. A simple arcade might have a shorter section, while a large entertainment complex will need a more detailed plan.

Your arcade financial plan is where you demonstrate that you can turn your vision into a sustainable business that operates for years to come.

Startup Costs : If you’re seeking funding to start an arcade, detail your costs to launching, like buying arcade machines, building renovations, and initial inventory needs. Be sure to demonstrate exactly how those funds will help you succeed.

Sales forecast : Project your revenue from game plays, prizes, food and drinks, events, and any other income sources. Be realistic, especially in the early months.

Expense Budget : Think carefully about all of your costs, then list them out. Typical expenses include:

Rent and utilities
Game purchases/leases
Maintenance & repairs
Supplies (prizes, food, etc.)
Insurance, marketing, licensing, and fees

Profit & Loss (P&L) : This combines your revenue streams and expenses, demonstrating whether your projections show a profit.

Cash flow statement : Regardless of how successful you think your arcade will be over time, you always need to have enough cash on hand to pay bills and avoid running into shortages.

Balance Sheet : An overview of your arcade’s financial health, listing assets (like your games), liabilities (loans), and overall equity.

Important Notes

Assumptions: Be clear about any predictions you’re making (number of customers, growth rate, etc.). If you’re writing your business plan in hopes of getting a bank loan, they’ll want to see that you’ve thought through your projections.

Industry Research: Try to find sample financials from other arcades to make sure you’re not missing any key expenses. At the very least, research typical arcade expenses online.

Download your free entertainment sample business plan

You can download any of our entertainment business plan samples for free right now to get inspiration for your own plan. Or, browse the Bplans library of over 550 free sample business plans to see what plans in other industries look like.

With competition from other arcades, large entertainment centers and home gaming systems, identifying your niche as an arcade destination is crucial for your success.

Writing a business plan keeps you disciplined in your entrepreneurial journey by ensuring you focus on gaming experiences with a high return on investment. And remember, a bank or investor won’t fund you without one.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

Start stronger by writing a quick business plan. Check out LivePlan

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Arcade Business Plan Template

Written by Dave Lavinsky

Arcade Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their arcades.

If you’re unfamiliar with creating an arcade business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an arcade business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Arcade Business Plan?

A business plan provides a snapshot of your arcade business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Arcade

If you’re looking to start an arcade business or grow your existing arcade company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your arcade business to improve your chances of success. Your arcade business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Arcade Businesses

With regards to funding, the main sources of funding for an arcade business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for arcade companies.

Finish Your Business Plan Today!

How to write a business plan for an arcade business.

If you want to start an arcade business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your arcade business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of arcade business you are running and the status. For example, are you a startup, do you have an arcade business that you would like to grow, or are you operating a chain of arcade businesses?

Next, provide an overview of each of the subsequent sections of your plan.

Give a brief overview of the arcade industry.
Discuss the type of arcade business you are operating.
Detail your direct competitors. Give an overview of your target customers.
Provide a snapshot of your marketing strategy. Identify the key members of your team.
Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of arcade business you are operating.

For example, you might specialize in one of the following types of arcade businesses:

Vintage games and pinball machines: This type of arcade caters to older gamers looking for nostalgia or customers interested in playing retro video arcade games.
Redemption games: These games give customers incentives to win tickets that can be traded in for prizes.
Interactive games: These types of games are for customers to play together such as air hockey, dancing games, and other multiplayer games. These types of games are great for families.
Barcades: These arcades cater to adults, serve alcohol, and may serve food as well.

In addition to explaining the type of arcade business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

When and why did you start the business?
What milestones have you achieved to date? Milestones could include the number of customers served, the number of locations opened, or reaching $X amount in revenue, etc.
Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the arcade industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the arcade industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your arcade business plan:

How big is the arcade industry (in dollars)?
Is the market declining or increasing?
Who are the key competitors in the market?
Who are the key suppliers in the market?
What trends are affecting the industry?
What is the industry’s growth forecast over the next 5 – 10 years?
What is the relevant market size? That is, how big is the potential target market for your arcade business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your arcade business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of arcade business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other arcade businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of family entertainment centers, recreation centers, and gaming establishments. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

What types of customers do they serve?
What type of arcade business are they?
What is their pricing (premium, low, etc.)?
What are they good at?
What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

Will you make it easier for customers to acquire your product or service?
Will you offer products or services that your competition doesn’t?
Will you provide better customer service?
Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a arcade business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of arcade company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide redemption games, food and beverage options, and kids’ games?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your arcade company. Document where your company is situated and mention how the site will impact your success. For example, is your arcade business located in a busy retail district, a business district, a standalone arcade? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your arcade marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

Advertise in local papers, radio stations and/or magazines
Reach out to websites
Distribute flyers
Engage in email marketing
Advertise on social media platforms
Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your arcade business, including answering calls, serving customers, scheduling cleaning and maintenance for the arcade games, collecting payments from customers, and restocking prizes, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your arcade business to a new city.

Management Team

To demonstrate your arcade business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing arcade businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an arcade or a family entertainment center.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will your arcade games use tokens and will you charge $10 for a pack of 20 tokens? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your arcade business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a arcade business:

Cost of arcade games, equipment, and supplies
Payroll or salaries paid to staff
Business insurance
Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your arcade location lease or a list of games in your inventory.

Writing a business plan for your arcade business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the arcade industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful arcade business.

Arcade Business Plan FAQs

What is the easiest way to complete my arcade business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your arcade business plan.

How Do You Start an Arcade Business?

Starting an arcade business is easy with these 14 steps:

Choose the Name for Your Arcade Business
Create Your Arcade Business Plan
Choose the Legal Structure for Your Arcade Business
Secure Startup Funding for Arcade Business (If Needed)
Secure a Location for Your Business
Register Your Arcade Business with the IRS
Open a Business Bank Account
Get a Business Credit Card
Get the Required Business Licenses and Permits
Get Business Insurance for Your Arcade Business
Buy or Lease the Right Arcade Business Equipment
Develop Your Arcade Business Marketing Materials
Purchase and Setup the Software Needed to Run Your Arcade Business
Open for Business

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Arcade Business Plan

Starting an arcade business has several of its own perks—of course, high-profit potential, diversified revenue streams, and flexible hours are there, but apart from, all that you also get to be the ultimate boss of fun and entertainment.

Sounds fun, isn’t it?

But before you start racking up those high scores, you need a solid arcade business plan in place to succeed.

Need help writing a business plan for your arcade business? You’re at the right place. Our arcade business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

Fill in the blanks – Outline
Financial Tables

How to Write an Arcade Business Plan?

Writing an arcade business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your business:

Start your executive summary by briefly introducing your business to your readers.

This section may include the name of your arcade business, its location, when it was founded, the type of arcade business (E.g., traditional arcades, family entertainment centers, mobile arcades.), etc.

Market opportunity:

Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.

Product and services:

Highlight the services your arcade business will offer your clients. The USPs and differentiators you offer are always a plus.

For instance, you may include arcade games, virtual reality experiences, and eSports tournaments as your services and mention unique experiences and a variety of games as some of your USPs.

Marketing & sales strategies:

Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.

Financial highlights:

Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.

Call to action:

Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your business. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business description:

Describe what kind of arcade business you run and the name of it. Here are some of the common types of arcade or gaming businesses:
Traditional arcade
Family entertainment center
Mobile arcade
eSports arcade
Retro arcades
Describe the legal structure of your arcade business, whether it is a sole proprietorship, LLC, partnership, or others.
Explain where your business is located and why you selected the place.

Mission statement:

Business history:.

Additionally, If you have received any awards or recognition for excellent work, describe them.

Future goal:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

For instance, teenagers, children, and families looking for fun and entertainment activities can be an ideal target market for an arcade business.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive analysis:

Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your gaming services from them. Point out how you have a competitive edge in the market.

Market trends:

Analyse emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

For instance, virtual reality is disrupting the traditional arcade market. Explain how your business will use these technologies for sustainable business growth.

Regulatory environment:

List regulations and licensing requirements that may affect your arcade business, such as business registration, zoning regulations, employment laws, gaming laws, health and safety regulations, etc.

Here are a few tips for writing the market analysis section of your arcade business plan:

Conduct market research, industry reports, and surveys to gather data.
Provide specific and detailed information whenever possible.
Illustrate your points with charts and graphs.
Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the arcade services your business will offer. This list may include services like,

Virtual Reality experience
eSports tournaments
Prize redemption
Arcade games sales or rental
Hosting corporate events

Arcade games:

Describe the types of arcade games your facility will offer to game enthusiasts, including classing games, modern games, and games with advanced tech and graphics.

Quality measures:

This section should explain how you maintain quality standards and consistently provide the highest quality service.

Your quality measures may include regular maintenance of games, maintaining cleanliness, food and beverage quality, game variety, etc.

Additional Services:

Mention if your arcade offers any additional services. You may include services like party and event rentals, game sales and rental, serving food and beverages, and if there are any additional services.

In short, this section of your arcade plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique selling proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

For example, games with advanced graphics, vintage arcade games, unique experiences, and a family-friendly environment could be some of the great USPs for an arcade business.

Pricing strategy:

Describe your pricing strategy—how you plan to price your gaming services and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers to your facility.

Marketing strategies:

Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.

Sales strategies:

Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include cross-business promotions, providing group discounts, hosting local gaming events, and providing referral discounts.

Customer retention:

Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on annual membership, personalized service, etc.

Overall, this section of your arcade or game zone business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your arcade business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & training:

Mention your arcade business’s staffing requirements, including the number of employees, game technicians, or support staff needed. Include their qualifications, the training required, and the duties they will perform.

Operational process:

Include the processes and procedures you will use to run your arcade business. Your operational processes may include game maintenance, cash management, inventory management, cleaning and maintenance, customer service, marketing, and sales.

Include the list of equipment and machinery required for the arcade, such as arcade games, cash registers, ticket dispensers, security cameras, maintenance tools, game tokens or cards, and other equipment.

Explain how these technologies and equipment help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your arcade business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founder/CEO:

Mention the founders and CEO of your arcade business, and describe their roles and responsibilities in successfully running the business.

Key managers:

Introduce your management and key team members, and explain their roles and responsibilities.

It should include key executives, senior management, and other department managers (e.g., Arcade manager, Game Technician manager.) involved in the arcade business operations, including their education, professional background, and any relevant experience in the gaming industry.

Organizational structure:

Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.

Compensation plan:

Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.

Advisors/consultants:

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

So, if you have any advisors or consultants, include them with their names and brief information about roles and years of experience.

This section should describe the key personnel for your arcade services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should summarize your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Describe your projected revenue, operational, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.

Cash flow statement:

This section should estimate and describe the cash flow for the first few years of your operation. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.

Balance sheet:

Create a projected balance sheet documenting your arcade business’s assets, liabilities, and equity.

Break-even point:

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing needs:

Calculate costs associated with starting an arcade business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

Add a table of contents for the appendix section to help readers easily find specific information or sections.
In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
Provide data derived from market research, including stats about the arcade industry, user demographics, and industry trends.
Include any legal documents such as permits, licenses, and contracts.
Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your game zone business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample arcade business plan will provide an idea for writing a successful arcade plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our arcade business plan pdf .

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Frequently asked questions, why do you need an arcade business plan.

A business plan is an essential tool for anyone looking to start or run a successful arcade business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your arcade business.

How to get funding for your arcade business?

There are several ways to get funding for your arcade business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your arcade business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your arcade business plan and outline your vision as you have in your mind.

What is the easiest way to write your arcade business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any arcade business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Start an Arcade

Arcades are still a popular business type, because many customers enjoy an in-person social gaming experience. Even though online gaming is more popular than ever, playing games with others virtually via home-entertainment consoles or smartphones can still feel like an isolating experience. An arcade provides a physical space where fun gaming experiences can be shared with family and friends.

Learn how to start your own Arcade and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start an arcade by following these 10 steps:

Plan your Arcade
Form your Arcade into a Legal Entity
Register your Arcade for Taxes
Open a Business Bank Account & Credit Card
Set up Accounting for your Arcade
Get the Necessary Permits & Licenses for your Arcade
Get Arcade Insurance
Define your Arcade Brand
Create your Arcade Website
Set up your Business Phone System

We have put together this simple guide to starting your arcade. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

What are the startup and ongoing costs?
Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Arcade Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

Your state's business records
Federal and state trademark records
Social media platforms
Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your arcade?

Business name generator, what are the costs involved in opening an arcade.

Your costs will vary considerably, depending on what kind of arcade you start. A traditional arcade might be able to get by in a small space, and you could keep your costs down in the $250,000 range. For a larger entertainment center like Dave and Buster’s, costs could approach $1 million.

The biggest portion of an arcade’s startup cost is usually the games themselves. Costing anywhere from $6,000 to $9,000, even a modest selection of 20 games eats up about half of that low-end $250k budget. You’ll also need to lease a space, and that cost will vary depending on your location and the size of your arcade. A rough estimate would be in the $1,200-$2,800 per month range for a space between 3,000 and 5,000 square feet.

The remainder of your budget will go toward acquiring additional machinery like computers and cash registers, renovating and decorating the space, and licensing fees. Finally, you’ll also need to pay your staff, although arcades require fewer employees than many other business types. Of course, if your arcade will serve food or beverages, you will also have additional costs for purchasing machines and supplies to that end.

Read our arcade purchasing guide to learn about the materials and equipment you'll need to start an arcade, how much to budget, and where to make purchases.

What are the ongoing expenses for an arcade?

The primary ongoing expenses are rent and machine upkeep. Utilities are also a constant factor, and with electronic machines running all day, they may cost more than you expect. For example, a successful barcade chain in Texas pays $15,000 a month for utilities at their smallest location. Beyond that, monthly expenses go to things like paying employees and keeping everything clean.

As your arcade acquires more consoles, there may not be enough room to keep them all at your arcade. Keeping a rotation of machines would require a storage space for unused machines, but this is not typical of small arcades, and would not be an issue in the early stages of your business.

Who is the target market?

Your preferred customer will vary depending on what type of arcade you run. Traditional arcades are frequented by families and children; families can use arcade gaming as a bonding experience, while kids occupy the sweet spot of having disposable income without many entertainment options to spend it on. Meanwhile, “barcades” market to retro-loving hipsters who like to pair craft beer with vintage pinball. Finally, arcade/restaurant combos like Dave and Buster’s appeal to a variety of customers, from families to business people looking to blow off steam after work.

How does an arcade make money?

The standard model is charging customers to play your games, but there are a number of ways to do this. The old-school method of having your customers insert coins or tokens into the machines is still around, but there are some licensing and taxation issues that make this method less profitable than it may seem. Also, many people don’t carry cash at all any more, not to mention quarters. Another popular model involves charging an upfront fee for a certain time period of free play, such as $5 for 30 minutes. The model popularized by Dave and Buster’s has customers purchase gaming “points” on a swipeable card, which allows you to charge more for certain games.

This is largely dependent on the business model you choose, as discussed earlier. If your customers pay with quarters or pre-paid cards — rather than timed free play — many arcades charge more for newer games (between 50 cents and a dollar) and less (around a quarter) for vintage games. You can also incentivize upfront spending by offering bonus points or free plays if they spend a certain amount of money.

How much profit can an arcade make?

This depends greatly on the volume of customers, cost of upkeep, and the amount you invest back into your business. As mentioned earlier, each game can potentially bring in $10,000 per year, which adds up. One successful entrepreneur who owns three small arcades brought in $165,000 in profits in 2014. Keep in mind that your take-home profit will also vary depending on how much you invest in your business to maintain its profitability into the future.

How can you make your business more profitable?

Using a points-based card system instead of taking quarters can increase profits, both because it encourages people to play more, and due to some outdated tax laws concerning the use of quarters. A classic method of boosting arcade profits is to offer games where customers can redeem tickets for prizes, encouraging them to keep returning to the machines to “earn” more tickets. We’ve also already discussed some other options, like adding food and beverage service, or having happy hours.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your arcade is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

Separates your personal assets from your company's assets, which is necessary for personal asset protection.
Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

Separate personal and business expenses by putting your business' expenses all in one place.
Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

In most states, it is necessary to obtain a game of chance license when operating games that require players to give you money (or other items of value) to play. Learn more about licensing requirements in your state by visiting the Small Business Administration’s reference to state licenses and permits .

If you sell food, you will also need licensing from your local health department, which will require your business to pass regular health inspections. These inspections will check for compliance with local health laws, typically related to prevention of food contamination. For more information about local licenses and permits, check with your city or county clerk’s office, or get help from one of the local associations listed in the SBA’s directory of local business resources .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Music Licensing

In order to play music in a business setting, permission must be acquired from the composer or license holder. Typically, you can acquire a blanket license that allows you to play music owned by a large catalog of artists and recording studios. Such licenses can be obtained from performance rights organizations, such as ASCAP or BMI.

Certificate of Occupancy

An arcade is always run out of a physical location, and as such typically requires a Certificate of Occupancy (CO). The CO confirms that all building codes, zoning laws and government regulations have been met.

If you plan to lease a location:

It is generally the landlord’s responsibility to obtain a CO.
Before leasing, confirm that your landlord has a CO that is applicable to an arcade, or can get one before you are scheduled to open.
After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended that you include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

If you plan to purchase or build a location:

You will be responsible for acquiring a valid CO from a local government authority.
Review all building codes and zoning requirements for your business location, to ensure your arcade will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Arcade needs and how much it will cost you by reading our guide Business Insurance for Arcade.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market an arcade

While it is important to market your arcade through traditional channels like print, television and radio, the very nature of the arcade business type invites more creative approaches. Because customers come to arcades for a social gaming opportunity, it’s vital to have a strong presence on social media. This helps you foster good word of mouth by providing a central location (i.e. your Facebook page, Twitter/Instagram accounts, etc.) for customers to share their experiences.

You can also easily target ads to your demographic by advertising in other youthful entertainment venues, like malls or skating rinks. Finally, you may want to offer your regular customers discounts and prizes for repeat visits or bringing friends.

How to keep customers coming back

One strategy that fits arcades well is the “happy hour” concept. Whether you serve food and beverages or not, having a set time each day where customers can play games at a discount can generate business during slow hours, or build up crowds leading into or out of peak periods. You can also throw theme parties like an “80s night” to capitalize on the nostalgic factor of arcade gaming, or cross-promote with “Comic Con” type events. Also, keep in mind that an arcade is by definition a niche attraction, which usually helps develop repeat customers.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Obviously, you should be a big fan of arcade games. This business includes the purchasing, maintenance and advertising of arcade games — and you’ll be surrounded by games all day, every day — so a passion for gaming is vital. You must also be a people person, as the job involves frequent interaction with customers. Also, if you’re handy enough to repair and restore games yourself, this is an environment where these skills can save you money.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at an arcade?

One of the most important daily activities at an arcade is inspection and upkeep of machines. Nothing is more disappointing to your customers than games being out of order, so it’s important to repair malfunctioning units immediately. There’s also quite a bit of cleaning to do, both regarding your games and the arcade itself. You’ll also need to frequently think about buying new machines, whether you get them from the manufacturer, or second-hand through eBay/Craigslist, or from other arcades. Finally, you should spend some time each day considering marketing strategies to help your arcade stand out from the competition.

What are some skills and experiences that will help you build a successful arcade?

As previously mentioned, an ability to tinker with and repair your machines would be a tremendous help with your daily operations. General business knowledge can help with licensing requirements, and also with keeping your arcade profitable. Developing connections within the arcade industry is valuable as well, as this could enable you to get better deals on games. Finally, it’s smart to keep an eye on the gaming industry at large, which helps ensure you’re always offering experiences that your customers can’t find at home.

What is the growth potential for an arcade?

Your growth potential will be determined by your game selection and client base. For example, one study estimates that you can net an average of around $200 per game, per week. However, complex modern games can cost nearly $10,000 each, so it can take almost a full year to recoup your expenses on a new game. Still, considering most machines are investments that will be in your arcade for years to come, each new purchase has the potential to be quite lucrative.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

The arcade is not a business type that lends itself to dramatic expansion. A successful arcade might eventually open additional locations and start a chain, but a single location will only require a small crew to operate. The main catalyst for building a bigger team would be if you added a previously unavailable service to your arcade, such as adding on a restaurant or bar, which requires employees with different skill sets.

Read our arcade hiring guide to learn about the different roles an arcade typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.

Useful Links

Truic resources.

TRUiC's Arcade Hiring Guide
TRUiC's Arcade Purchasing Guide

Industry Opportunities

American Amusement Machine Association
The Video Game & Arcade Preservation Society
Explore more Entertaintment based Business Ideas

Real World Examples

Business profile focusing on multiple businesses
Pinball Pete’s - Michigan-based pinball/arcade center

Additional Sources

Starting an arcade of your own
The Arcade Is Back, Now With Beer
Average Arcade Revenue and Budget
Starting A Commercial Arcade

Entrepreneur Interviews

Read Interview

Have a Question? Leave a Comment!

How to write a business plan for an arcade game room?

Writing a business plan for an arcade game room can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing an arcade game room business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for an arcade game room?

What information is needed to create a business plan for an arcade game room?
What goes in the financial forecast for an arcade game room?
What goes in the written part of an arcade game room business plan?
What tool can I use to write my arcade game room business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having an arcade game room business plan is so crucial.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your arcade game room. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your arcade game room to be in the next three to five years.

Once you have a clear destination for your arcade game room, you'll focus on three key areas:

Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

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To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your arcade game room's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your arcade game room.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your arcade game room and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your arcade game room's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your arcade game room, let's explore what information is required to create a compelling plan.

Information needed to create a business plan for an arcade game room

Drafting an arcade game room business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for an arcade game room

Before you begin writing your business plan for an arcade game room, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your arcade game room.

You might find that your target audience could be interested in competitive gaming experiences, such as tournaments or leaderboards. Additionally, you may discover that there could be a potential for virtual reality gaming to be popular in your arcade game room.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your arcade game room.

Developing the marketing plan for an arcade game room

Before delving into your arcade game room business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and capital expenditure requirements of an arcade game room

Whether you are starting or expanding an arcade game room, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

A possible staffing cost that an arcade game room might incur could be hiring employees to run the arcade. This could include a manager to oversee the day to day operations, as well as game attendants to help guests with any questions they might have. Equipment costs could include the cost of the actual arcade games, as well as other necessary items such as chairs, tables and lighting. The cost of maintaining and repairing the arcade machines would also need to be covered. Additionally, the arcade might need to purchase additional supplies such as tokens or tickets.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.).

Once you have all the necessary information to create a business plan for your arcade game room, it is time to start creating your financial forecast.

What goes into your arcade game room's financial forecast?

The financial forecast of your arcade game room's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a arcade game room are:

The profit and loss (P&L) statement ,
The projected balance sheet ,
The cash flow forecast ,
And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your arcade game room forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

forecasted profit and loss statement in a arcade game room business plan

Ideally, your reader will want to see:

Growth above the inflation level
Expanding profit margins
Positive net profit throughout the plan

Expectations for an established arcade game room will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The projected balance sheet of your arcade game room

Your arcade game room's forecasted balance sheet enables the reader of your plan to assess your financial structure, working capital, and investment policy.

It is composed of three types of elements: assets, liabilities and equity:

Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

example of forecasted balance sheet in a arcade game room business plan

Your arcade game room's balance sheet will usually be analyzed in conjunction with the other financial statements included in your forecast.

Two key points of focus will be:

Your arcade game room's liquidity: does your business have sufficient cash and short-term assets to pay what it owes over the next 12 months?
And its solvency: does your business have the capacity to repay its debt over the medium-term?

The cash flow forecast

A projected cash flow statement for an arcade game room is used to show how much cash the business is generating or consuming.

cash flow forecast in a arcade game room business plan example

The cash flow forecast is usually organized by nature to show three key metrics:

The operating cash flow: do the core business activities generate or consume cash?
The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your arcade game room business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the arcade game room is appropriately funded.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting an arcade game room.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

initial financing plan in a arcade game room business plan

Having this table helps understand what costs are involved in setting up the arcade game room, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of an arcade game room business plan is understood, let's focus on what goes into the written part of the plan.

The written part of an arcade game room business plan

The written part of an arcade game room business plan is composed of 7 main sections:

The executive summary
The presentation of the company
The products and services
The market analysis
The strategy
The operations
The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your arcade game room's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your arcade game room, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

The second section in your arcade game room's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your arcade game room, you might emphasize its proximity to potential customers. Highlight that it could be located in a densely populated area, with plenty of foot traffic, ideal for drawing in customers. You could also point out its potential to be situated in a busy commercial or entertainment district, with access to a wide variety of other activities. Additionally, you could stress its accessibility, as it could be located near public transportation or parking. Finally, its proximity to other businesses could provide the opportunity for collaborations and partnerships, which may be beneficial for your business.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers.

For example, your arcade game room could offer classic arcade games, virtual reality games, and a variety of console games to its customers. Classic arcade games provide customers with a nostalgic experience, virtual reality games offer an immersive experience, and console games let customers enjoy their favorite titles on the big screen. Customers can also enjoy food and beverage services, as well as a comfortable and inviting atmosphere.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When you present your market analysis in your arcade game room business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your arcade game room, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your arcade game room aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include people aged 13-18. This group of customers is likely to enjoy classic arcade games and have free time to visit the arcade. Additionally, this age group is likely to have their own income to spend on arcade games and snacks.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your arcade game room.

5. The strategy section

When you write the strategy section of your arcade game room business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your arcade game room could face several risks. For example, there may be a risk of theft. People may enter the game room and take items such as game consoles or tokens without permission. Additionally, there might be a risk of damage to the games or consoles. People may play the games too aggressively or drop them, leading to costly repairs or replacements.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your arcade game room.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your arcade game room's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You could have a variety of arcade games as key assets in an arcade game room. This could include classic games such as Pac-Man, Space Invaders and Galaga. Additionally, you might have more modern games such as Dance Dance Revolution or Mario Kart. As for Intellectual Property, the arcade game room could have exclusive rights to certain games, such as a rare vintage game or a game that the room has developed in-house. The room could also have a unique brand logo or an original theme that they have created themselves.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into an arcade game room business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my arcade game room's business plan?

In this section, we will be reviewing the two main options for writing an arcade game room business plan efficiently:

Using specialized software,
Outsourcing the drafting to the business plan writer.

Using an online business plan software for your arcade game room's business plan

Using online business planning software is the most efficient and modern way to create an arcade game room business plan.

There are several advantages to using specialized software:

You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
You are guided through the writing process by detailed instructions and examples for each part of the plan
You can access a library of dozens of complete business plan samples and templates for inspiration
You get a professional business plan, formatted and ready to be sent to your bank or investors
You can easily track your actual financial performance against your financial forecast
You can create scenarios to stress test your forecast's main assumptions
You can easily update your forecast as time goes by to maintain visibility on future cash flows
You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your arcade game room's business plan

Outsourcing your arcade game room business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the arcade game room business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your arcade game room's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write an arcade game room business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my arcade game room business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

Word processors don't include instructions and examples for each part of your business plan
Word processors don't update your numbers automatically when they change in your forecast
Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating an arcade game room business plan for some entrepreneurs, it is by far not the best or most efficient solution.

Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for an arcade game room. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

How to write a 5 years business plan
What is a one-page business plan
Market analysis in a business plan: example and tips
How investors and lenders look at business plans
Business plan myths

Know someone who owns or wants to start an arcade game room? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to Start an Arcade Business

Small Business
Types of Businesses to Start
Retail Business
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Industry Analysis for Family Entertainment Centers

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An arcade symbolizes fun and affordable carefree times for all visitors where young and young-minded alike can enjoy a test of skill against a machine. If you thrive on gaming and providing a form of ageless entertainment, then starting an arcade business may be right up your alley. Although the cost for an afternoon or evening of fun is among the least costly forms of entertainment, startup costs for this type of business typically run high. Here are several things to consider when you are considering opening an arcade business.

Background Activities for Running an Arcade Business

If you are starting an arcade business, you should be a person who loves arcade games. Not just playing them but all aspects of them, as the job includes maintenance, ordering and advertising of arcade games. In fact, your daily routine will probably include repairing out-of-order machines, cleaning machines when people spill stuff on them, acquiring new machines and developing new advertising strategies to help your business stand out from the competition.

Prepare a Business and Marketing Plan

A business plan is the road map for your business. It sets out what you will do, how you will do and with what resources. You can download a template arcade plan online; this will give you a good starting point for preparing your own plan. Think about how you will make money.

The traditional method involves having customers insert tokens or coins into the machines, but there are other options available such as paying upfront for a certain period of free play, or spending "points" through a card system. Which system you choose depends on the type of games you're going to invest in and the type of customer you want to attract – are your customers likely to carry coins to operate the machines?

Finding Your Customer Base

The niche you target will depend on the type of arcade you run. In general, you can break it down into the following groups:

Traditional arcades. This type of arcade is typically visited by families and young people looking for a social gaming experience. A great example of this type of arcade is the Funspot in Locania, New Hampshire, which

according to the Guinness Book of World Records

was named the largest arcade in the world in 2008. Barcades. This type of arcade is generally visited by people looking for the retro arcade experience of their youth, but who stay for the wide selection of beer. A famous example is Barcade in Brooklyn, New York, which prides itself on its classic video games and craft beers. Arcade/restaurant combo. This type of arcade is generally visited by both families and co-workers looking to blow off steam and eat in a social environment. A well-known example of this is Dave & Buster's, an American chain that provides a full-service restaurant and arcade entertainment.

Choosing the Games

Your most important decision is to decide what types of games you will have. While this depends somewhat on the particular niche you are targeting – parents don’t want their young kids playing violent games, for example – there is a general rule to follow. Mixing a variety of games has proven to attract the largest number of customers. The types of arcade games include:

Video arcade machines. These are the traditional staple of any arcade. Examples include popular fighting games such as Street Fighter IV and classics such as Pac-Man.
Pinball machines. You can get pinball machines that function mechanically, digitally or using some combination of the two. These games are great for customers who like to immortalize themselves with a high score.
Ticket redemption games. These types of games allow players to play a skill game for a ticket reward. They then redeem the tickets for various types of prizes. A popular example of this type of game is Whac-A-Mole.
Interactive games. The idea behind this type of game is to involve other body parts then just your hands. Popular examples include Dance Dance Revolution, Billiards and air hockey.
Merchandise games. This type of game provides the player the potential of winning a prize immediately upon completing the game. A familiar example of this genre is the crane and claw machine.

Setting Up Your Space

Both location and floor plan are important for your business. Choose a location that is highly visible with a lot of foot traffic such as on a boardwalk or in a mall. Basic guidelines to follow when planning your arcade space include:

Estimate about 50 square feet per arcade game
Leave a minimum of two to four feet in front of your games open so that people can stand in front of the machine.
Bunch games side to side or back to back to save space.
Group your machines based on the type of game such as arcade games, ball-shooting games and redemption games, as well as based on genre such as action, racing and fighting games. This helps your customers find the types of games that they want to play easily.

Arcade Business Licensing Requirements

In most states, you are required to obtain a license specifically for running arcade games. For example, in New York, you are required to get an Amusement Arcade License if you will be running 10 or more arcade machines. If you will be selling food, you need to be licensed by your local health department. If you plan to play music in your arcade, look into getting a blanket music license that allows you to play music from a large catalog of artists.

The Really Useful Information Company: How to Start an Arcade
Mashable: The 20 Coolest Arcades in the World
Medium: How to Start an Arcade Business
Primetime Amusements: Building Your Own Arcade Pt. 1: Types of Arcade Games
NYC: Amusement Arcade License
SBA: Write a Business Plan
If you are concerned about how to conduct your market study, hire a professional to do it. Since a large financial investment is required, it is worth starting with everything in your favor, including a market survey to back up your plan.
Ask your soon-to-be commercial and residential neighbors how they feel about having an arcade in the area. Others who live and work in the area should be convinced the business is an asset and not a curse or business could be affected.

Michael is a writer in various subjects. He is a mechanical engineer and freelance writer, having earned a Bachelor of Science in Mechanical Engineering from Washington University in St. Louis. His articles have appeared mostly online.

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Arcade Business Plan and SWOT Analysis

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The Arcade Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start an Arcade business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

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Despite the fact that many people now own a number of gaming systems, the demand for people wanting to go to arcade has increased substantially. This is primarily due to the fact that people enjoy the large-scale arcade games that are made given that they provide a different form of enjoyment as it relates to playing video games. Additionally, many arcades have geared their operations towards a more adult audience. In fact, most arcade to launch these days are not geared towards kids but rather adults. Many arcades are able to generate substantial income by operating in a capacity similar to that of the sports bar. In most major metropolitan areas, the number of arcades that have been developed has increased substantially with many of these businesses obtaining liquor license so that they can provide alcoholic beverages to the general public. These places often act as a meeting place for friends to hang out while playing a number of both old and new video games. The primary draw to these locations, beyond the sale of small food plates and alcoholic beverages, is a strong sense of nostalgia that comes from playing games that an individual used to play when they were much younger.

The startup cost associated with the new arcade are considering moderately low and these businesses can be started for as little as $50,000 all the way up to about $200,000. If the arcade is going to acquire a liquor license than these fees may increase substantially given that some jurisdictions charge tens of thousands if not hundreds of thousands of dollars for a liquor license. However, outside of this expenditure – the acquisition of both old and new arcade game units is moderately low. Additionally, there are now a number of specialty leasing companies and rental firms that provide arcade games for monthly fee rather than via purchase. As such, one of the ways that the startup cost associated with the new arcade can be ameliorated is through the use of leasing or renting these machines.

Given the extremely high gross margins from arcade game usage, sales of alcoholic beverages, and sales of food – almost all financial institutions are willing to provide a business loan in order to get a new arcade off the ground. Of course, and arcade business plan is going to be required and a three-year profit and loss statement, cash flow analysis, breakeven analysis, balance sheet, and business reaches page is going to be a required that minimum. It should be noted that some financial institutions now require that a full five-year financial model is done instead of the standards three year financial model. In addition to the anticipated profit and loss statements, a full demographic analysis should be developed showcasing the anticipated number of patrons of the arcade will have from the onset of operations. This includes examining the population size, population density, median household income, percentage of people under the age of 40, and percentage of people that have an extensive interest in arcade games and related technology. One of the nice things out in arcade is that it does appeal to a broad range of demographics. The business plan should also have a substantial amount notation as to whether or not the arcade will focus on an adult audience or a kid audience. If the arcade is going to be specific for children than an examination of the percentage of people under the age of the 18 should be included as well. This should also examine the potential revenues that can be generated from event hosting with a specialized focus on children’s parties.

An arcade SWOT analysis should be produced as well in conjunction with the business plan and the marketing plan. As it relates to strengths, the startup costs associated with the new arcade are extremely moderate and gross margins are very high. This is especially true of alcoholic beverages are going to be served on site. In times of economic recession, arcades typically are able to remain profitable and cash flow positive at all times given the fact that high gross margins are generated from arcade game usage. Small food plates as well as drinks can also substantially boost the profits of the business.

For weaknesses, these businesses typically thrive only in major metropolitan areas given that they have the population density to support a arcade. People frequently enjoy playing video games on home-based consoles – and this is the primary competitor that arcades have to deal with these days. Additionally, if alcoholic beverages are being served on site and there always risk regarding underage drinking and other liabilities that stem from this type of operation.

One of the ways that arcades frequently expand their operations is by hosting tournaments and specialized events including those that include the use of traditional consoles. Additionally, many arcades simply expand by establishing secondary and tertiary locations once the initial location has become profitable. One of the other things that can be done in order to boost the revenues of the business is like having ongoing corporate events, birthday events, and other gatherings which can generate a substantial amount of revenue not only from event hosting fees but also from the food and beverages will be served to patrons.

There are no known threats that would impact the way that these companies do business. One of the keys to thriving in this industry, in order to stay ahead of competition, is to continually provide new arcade games and experiences as it relates to owning and operating one of these businesses. Altered reality and virtual reality games are becoming popular, and many arcade entrepreneurs have taken integrating this new technology into their locations.

An arcade marketing plan needs to be developed as well in order to make sure that the business has as much visibility as possible from the onset of operations. Many arcades acquire a large-scale retail facility from which to conduct their operations, and this facility should have a substantial amount of signage that allows the business to be seen from major highways within the target market.

As always, an expansive presence on the Internet is going to be required for new arcade given that many people now find specialized businesses via Internet searches. Most importantly, a massive presence on social media should be developed so that the business can be quickly found. As many people treat gaming as a way of life – the usage of social media will allow many individuals have an interest in video games to discuss the location and make plans to go in check it out. This is going should be the foremost way in which the arcade conducts its marketing operations. A presence on platforms such as FaceBook, Twitter, Instagram for photos, LinkedIn, Reedit, and other major platforms including Google+ should be included as well in order to boost the visibility of the business once the grand opening has been started. In many cases, especially when arcade serve alcoholic beverages, it will allow patrons to use the arcade for free or at a very discounted cost in order to ensure that they are able to familiarize themselves with the location. This is one of the quickest ways in order to ensure repeat business.

Beyond a large-scale presence on social media, a presence via a proprietary website should also be developed. This includes showcasing the arcade location, current games that are available for use, food menus, drink menus, hours of operation, and preliminary pricing information. In some cases, functionality a letter that allows for people to enroll in tournaments or become members of the arcade can be integrated as well. Creating a membership program for a new arcade is also one of the fastest ways to ensure these businesses are able to remain profitable. Usually, a subscription is purchased in order to use the arcade an unlimited amount of time. This frequently allows for the business to remain profitable in any economic climate given that a monthly charge is made to each customer.

Arcades are can continue to be one of the mainstay entertainment industries within the United States. More and more people have an interest in gaming and it is no longer something that is simply relegated to younger people. Adults that grew up in the 80s and 90s typically want to enjoy the nostalgia and the game play is associated with an arcade. As such, these businesses are always going to be able to remain profitable and cash for positive especially if the arcade implements a subscription model into its operations.

Sample Arcade Business Plan

Arcade business plan sample.

If you wish to start an arcade business, you’ll need a plan.

Your business plan will serve as a blueprint towards the actualization of the idea, and too often, people face difficulties drafting one. In other words, coming up with a gaming business plan isn’t as easy as it sounds.

In reality, knowing what needs to be included in the plan and how to develop each of the sections is where a lot of people fail. This arcade Business Plan provides critical guidance to entrepreneurs facing such difficulty.

With this, you’re able to follow and understand how you should develop your business plan.

The Key Sections you can’t do without

Writing a great plan requires understanding what needs to be included.

Also, it must follow a basic pattern or structure. In other words, certain components are critical to the outcomes obtained. These include the executive summary, company description, as well as the products & services.

Other components of a good plan include market analysis, strategy & implementation, organization & management team, as well as financial plan & projections.

With these mentioned, you’ll have to know how each section needs to be developed or what needs to be included. Detailed examples are provided below;

i. Executive Summary

Arguably the most important section of your arcade business plan, the executive summary condenses the entire document into a mini plan.

In other words, it gives a highly summarized version of the plan to allow for easier and faster comprehension of what’s in the main plan.

This is important because investors will require an easily digestible version of the plan that highlights the key sections needed to determine its viability.

Also, you want to keep your audience interested and glued to the plan. Ultimately, you want them to seek further details about the business.

Nothing interests investors like a game business idea that sounds viable.

Although the executive summary briefly discusses all the other sections, additional details are provided such as the business name & location, the products & services, mission & vision statements, as well as the specific purpose of the plTo introduce cing your arcade business to your audience, you’ll have to state its an.

It would be best if you explored all the procedures involved in choosing a great name.

As mentioned above, the location of the business also matters. This helps tell your audience how its location will likely impact on sales.

What services or products does your arcade business provide? Every business is established to provide a service or a product and yours shouldn’t be any different.

Here, provide a rundown of services without getting into too much specifics as there’s a whole section for that in the main body of the plan.

Your executive summary section won’t be complete without the mission and vision statement.

The mission statement captures the essence of your business’s goals as well as stating the purpose it serves. It basically tells the world why the business exists.

The vision statement on the other hand gives a clear and definitive description of your business’s aspirations. This is in addition to the kind of impact it aims to create.

It should be inspiring enough to keep your workforce motivated towards attaining the bigger goal.

What’s the specific purpose of your arcade business plan?

This is one area you’ll need to clarify to your readers. By stating the specific purpose, a clear understanding of why you take the actions you take is had.

ii. Company Description

Company description covers a lot of key details about how the company operates.

Here, several aspects are covered such as a summary of short and long term business goals, as well as its legal structure. Your company description should also clearly state how you intend to make a profit as a business.

Provide a brief history about your operations (for existing or established arcade businesses), in addition to the nature of business as well as the demands or needs you intend to meet.

You’ll also have to include a summary of company growth with financial or market highlights added.

iii. Products & Services

The details you earlier left out about your services and products in the executive summary section need to be provided in more detail here.

Also important is the service or product costs, the expected net revenue from sale of products and services, as well as the benefits derived by customers.

Information on services and products still in the research and development stages will also need to be provided. What’s the market role of your products or services?

Plus what clear advantages do they have over those from your competitors? If there are any relevant trade secrets, patens, or copyright, you should add them here.

iv. Market Analysis

Under the market analysis section, you want to demonstrate your understanding of the industry to your audience.

This requires carrying out a ton of research activities which involves a lot of wYou’llou’ll need to provide a sketch of target customer segments with size and demography to demonstrate such knowledgephics.

Identify your competitors and give a detailed assessment of their weaknesses and strengths. Also, a historical current and projected marketing data for your arcade services and products need to be included.

Give an industry description and outlook with supporting statistics.

v. Strategy & Implementation

The sales and marketing strategies adopted for your arcade business need to be summarized and implemented with the help of an operating plan.

This should contain a clear explanation of how you intend to promote your business to your client and plan to enter the market.

Also, how will your business function? Give information on pricing, costs, and promotions as well. What more? You’ll have to include information on your sources of labor and the number of employees you’ll be hiring.

vi. Organization & Management Your Arcade Business

The organization and management ness are crucial to its success. You’ll need to present an organizational chart with departments and critical emplo to your audiences.

Give a profile of the owner, the management team, and advisors.

vii. Financial Plan & Projections

The financial plan requires the input of a professional in working out key financial statements.

These include historical financial data, realistic prospective financial information, as well as a brief analysis of your financial data.

With all of these points added to your arcade business plan, it should be ready for use and can be presented to investors or used for strategy purposes.

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The financial plan for an arcade game room.

Running a successful arcade game room is about more than just offering the latest games; it's about creating a strategic financial plan that ensures long-term success.

In this post, we'll explore the key components of a financial strategy that can turn your arcade game room into a profitable venture.

We'll cover everything from initial investment costs to the day-to-day financial management, as well as forecasting for future expansions or upgrades. Our goal is to help you navigate the financial aspects of the gaming industry.

So, let's level up your business acumen and set your arcade game room on the course to financial victory!

And if you're looking for a comprehensive 3-year financial analysis for your arcade without the hassle of crunching numbers, please download our specialized financial plan designed for arcade game rooms.

What is a financial plan and how to make one for your arcade game room?

A financial plan for an arcade game room is a comprehensive guide that assists you in navigating the financial aspects of your gaming business.

Think of it as programming a new video game: You need to understand the equipment you possess, the type of games you want to offer, and the cost associated with setting up and maintaining your gaming paradise. This plan is crucial when launching a new arcade as it turns your enthusiasm for gaming into a practical, organized business.

So, why create a financial plan?

Imagine you're planning to open an exciting arcade game room. Your financial plan will help you comprehend the expenses involved - like leasing your arcade space, purchasing arcade machines and gaming equipment, initial setup costs, hiring staff, and marketing expenses. It's comparable to checking your inventory and budget before embarking on a major gaming setup.

But it's more than just adding up costs.

A financial plan can provide insights similar to mastering a high score in a complex game. For example, it might reveal that certain high-end arcade machines are too costly, leading you to opt for more affordable, popular alternatives. Or, you might discover that having a large team of technicians is not necessary at the initial stage of your business.

These insights help you avoid overspending and overstaffing.

Financial plans also serve as a forecasting tool for identifying potential risks. Suppose your plan shows that reaching your break-even point – where your income equals your expenses – is feasible only if you attract a specific number of customers daily. This insight points out a risk: What if customer turnout is lower than expected? It prompts you to think about alternative strategies, like hosting gaming tournaments or offering special membership packages, to boost revenue.

Now, how does this differ for arcade game rooms compared to other businesses? The main difference lies in the nature of the costs and the revenue pattern.

That's why the financial plan our team has developed is specifically designed for the arcade gaming industry . It cannot be applied universally to other types of businesses.

Arcade game rooms have unique expenses such as the upkeep of gaming equipment, technology updates, and specific entertainment licenses. Their revenue may also vary more significantly - consider how special events or school holidays might increase foot traffic, while other periods might be slower. This contrasts with, say, a grocery store, where inventory turnover is more consistent and predictable.

Obviously, our financial plan takes all these specific factors into account. With this approach, you can easily create tailored financial projections for your new arcade game room project.

What financial tables and metrics include in the financial plan for an arcade game room?

Creating a financial plan for a new arcade game room is a critical step in ensuring the success and viability of your entertainment business.

It's important to recognize that your future arcade's financial plan is more than just numbers on a paper; it's a strategic guide that directs you through the initial phases and aids in sustaining the business over time.

Let's begin with the most essential element: the startup costs. This encompasses everything you need to launch your arcade game room.

Consider the expense of leasing or purchasing a space, arcade machines, initial inventory of gaming supplies, furniture, décor, and even the signage outside your arcade. These costs provide a clear view of the initial investment required. We have detailed these costs in our financial plan , so you don’t have to search for them elsewhere.

Next, take into account your operating expenses. These are ongoing costs that you will incur regularly, such as salaries for your staff, utility bills, maintenance of gaming equipment, and other day-to-day expenses. Estimating these expenses accurately is essential to understand how much your arcade needs to earn to be profitable.

In our financial plan, we've pre-filled all the values, giving you a good idea of what these might amount to for an arcade game room. Naturally, you can modify them in the 'assumptions' tab of our financial plan as needed.

One of the key tables in your financial plan is the cash flow statement (included in our financial plan). This shows the expected flow of cash in and out of your business.

It’s a monthly (and annual) summary that includes your projected revenue (how much money you expect to make from gaming services) and your projected expenses (the costs of running the arcade). This statement is crucial for anticipating periods when you might need extra cash reserves or when you can plan for upgrades or expansion.

Another vital table is the profit and loss statement, also known as the income statement, which is part of our financial plan.

This important financial table gives you an overview of your arcade's profitability over a specific period. It lists your revenues and deducts expenses, showing whether you're making a profit or a loss. This statement is especially significant for understanding the financial health of your arcade over time.

Lastly, the break-even analysis (also included) is indispensable. This calculation tells you how much revenue your arcade needs to generate to cover all its costs, both initial and ongoing. Knowing your break-even point is crucial because it provides a clear sales target to aim for.

We've also incorporated additional financial tables and metrics in our financial plan (provisional balance sheet, financing plan, working capital requirement, ratios, charts, etc.), offering you a comprehensive and detailed financial analysis of your future arcade game room.

Can you make a financial plan for your arcade game room by yourself?

Yes, you actually can!

As mentioned above, we have developed a user-friendly financial plan specifically tailored for arcade game room business models .

This plan includes financial projections for the first three years of operation.

Within the plan, you'll find an 'Assumptions' tab that contains pre-filled data, covering revenue assumptions, a detailed list of potential expenses relevant to arcade game rooms, and a hiring plan. These figures can be easily customized to align with your specific project requirements.

Our comprehensive financial plan encompasses all essential financial tables and ratios, including the income statement, cash flow statement, break-even analysis, and a provisional balance sheet. It's fully compatible with loan applications and caters to entrepreneurs of all levels, including beginners, requiring no prior financial expertise.

The process is automated to eliminate the need for manual calculations or complex Excel manipulations. Simply input your data into designated fields and select from the provided options. We have streamlined the process to make it user-friendly, even for those unfamiliar with financial planning tools.

Should you encounter any issues, please don't hesitate to reach out to our team. We guarantee a response within 24 hours to troubleshoot any problems. Additionally, we offer a complimentary review and correction service for your financial plan once you have filled all your assumptions.

What are the most important financial metrics for an arcade game room?

Succeeding in the arcade game room business requires a deep understanding of both the entertainment industry and the science of financial management.

For an arcade game room, certain financial metrics are particularly important. These include your revenue, cost of goods sold (COGS), gross profit margin, and net profit margin.

Your revenue encompasses all the income from game services and sales, providing a clear picture of the market's response to your entertainment offerings. COGS, which might include the cost of arcade machines and direct labor, aids in understanding the direct costs associated with your service.

The gross profit margin, calculated as (Revenue - COGS) / Revenue, indicates the efficiency of your operational process, while the net profit margin, which is the percentage of revenue remaining after all expenses, reflects your overall financial health.

Projecting sales, costs, and profits for the first year involves a detailed analysis of several factors. Begin by researching your local market and target audience. Estimate your sales based on factors such as location, local competition, and pricing strategy.

Costs can be categorized into fixed costs (like rent and utilities) and variable costs (like machine maintenance and hourly labor). Be conservative in your estimates and account for variations in sales and costs over different periods.

Creating a realistic budget for a new arcade game room is essential.

This budget should cover all expected expenses, including rent, utilities, equipment purchase or leasing, initial inventory of spare parts, labor, marketing, and an emergency fund. It's also important to set aside funds for unforeseen expenses. Keep your budget flexible and regularly review and adjust it based on actual performance.

In financial planning for an arcade game room, key metrics include your break-even point, cash flow, and asset turnover.

The break-even point helps you understand how much you need to earn to cover your costs. Positive cash flow is vital for daily operations, while a good asset turnover rate indicates efficient management of your arcade machines and inventory.

Financial planning can vary greatly between different types of arcade game rooms.

For example, a family-oriented arcade might prioritize a diverse range of games and customer experience, while an arcade focusing on VR experiences might have higher equipment costs and focus on immersive gaming experiences.

Recognizing signs that your financial plan might be off-track is crucial. We have listed these indicators in the “Checks” tab of our financial model. This will give you guidelines to swiftly correct and adjust your financial plan to achieve relevant metrics.

Red flags include consistently missing revenue targets, quickly depleting cash reserves, or assets that are underutilized. If your actual numbers regularly deviate significantly from your projections, it's a clear sign that your financial plan needs revising.

Lastly, the key indicators of financial health in an arcade game room's financial plan include a stable or growing profit margin, a healthy cash flow that comfortably covers all expenses, and consistently meeting or exceeding revenue targets.

No worries, all these indicators are “checked” in our financial plan , and you will be able to adjust them accordingly.

You can also read our articles about: - the business plan for an arcade game room - the profitability of a an arcade game room

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How to Start an Arcade Business

STarting an arcade business is designing for profit

If you are looking to start an arcade business , the new amusement entrepreneur must first understand the local market opportunity, the demography of that local market, and just as important, his or her own arcade business goals. There are many options to consider when looking to start your arcade business, including the arcade games you will need for your target customers, and the type of game play your arcade business will offer. This includes different arcade machines, redemption games (ticket games) and the play value of each of these game types.

Start an Arcade Business

Step 1: it all starts with a business plan.

Probably not what you wanted to hear first, but the unfortunate truth to starting a successful arcade business starts with a good, accurate business plan including an analysis of your market potential. From your plan, everything else will come together. What machines, how many, your best location, startup costs, attendance and an expected return on investment.

Step 2: Use your plan to source the best arcade machines and redemption games

With your plan complete, it's finally time for the fun stuff. Sourcing the best, coolest games and machines for your location and demographic profile, along with the design, layout and build-out of your ideal location.

Step 3: Your Ideal Location

We've all heard it before... location, location, location. In terms of an arcade game room business, finding the "ideal" location may not mean the best location, but the right location. Within easy reach of your target market, at the right lease rate, terms and available space to accomodate your guests.

When starting an arcade business , there are several things to keep in mind. Your arcade game room is a player in the overall family fun center attraction mix. Depending on your fun center business goals and your target market demographics it might be a key player, or it might just be a necessary component to the long term success of your business. Make no mistake, arcade game machines are still in fashion and profitable in the right location, with the right mix and game room design.

The point of this conversation is to open the eyes of the new arcade startup to the bigger picture. Old style, stand-alone video arcade game room just doesn't have the pull, or the community attraction they once had. However, a successful arcade business has become an integral component of your overall attraction mix and the fun center or indoor party center business itself.

Family fun center businesses are smart to include an arcade game room, if it makes sense for their target aged customer and local demographic. For a younger indoor party center demographic (typically 10 years and under), video arcade games are not as popular as redemption games . Secondly, mothers are the primary buyer for this younger demographic and justified or not, often see the content of these video arcade games as violent and destructive. If on the other hand, your market includes tweens, teenagers and young adults, a video arcade game room is expected and will do well with the right arcade game mix and game room design.

Arcade Business - Design for Profit

the arcade business requires an assortment of games and arcade machines

For example, you need quick play games, novelty games, merchandise and redemption games, shooting games, driving games and traditional pinball games. If you are going to be catering to a younger demographic you may also want to include kiddie games.

How to Start an Arcade - Space Planning

Here are some base rules of thumb when looking at designing a successful arcade game room:

Use an estimated 50 sqft of floor space per game (100 games = 5,000 sqft). 
You can bunch games up side by side, or back to back to save space. 
Video arcade games need approximately 4 feet clearance in the front of the game. 
Basketball or SureShoot type games require 6 feet of clearance in the front of the game. 
Redemption games can vary dramatically however, a minimum of 2-3 feet in front and 1-2 feet on each side. 
If you are using multiples of the same type of games or titles, you can push these games side-by-side to reduce the amount of space required.
For larger, multiplayer arcade coin games or redemption games that can be played by 4 to 6 players at a time, this type of cabinet game should be used as an eye-catcher and placed in a visible spot with a minimum of 4-6 feet around the entire game.

Your family fun center, indoor party center and other amusement attractions are a fun place for families, tweens, teenagers and groups of friends to go play and spend some time (and money) together.  There are a wide assortment of video games, arcade machines and coin operated games that can help make this experience diverse, entertaining and time well spent for your guests.

To develop a successful arcade game room you need to offer your guests a good variety of game-play and play-ability, from a diverse set of arcade machines and redemption games.   When designing your game room, the game mix and game room layout are the key areas of planning for long term success in your attraction business. As with space planning for your amusement fun center in general, providing your guests with a visually pleasing and traffic friendly layout is the corner stone of arcade game room success. At a glance, your fun center guests should be able to quickly feel enticed to enter the room and select an arcade game to start playing.

Arcade Game Room - Final Thoughts

Once your guests find games to play, how they play those games are just as important as which arcade machines and games they play. Some games are multi-person games and require a lot more space than a single pinball machine would need. Popular games tend to draw a crowd, and having a visible location for such games, with enough surrounding space to accommodate those crowds is also important.

When looking to purchase arcade machines for your business here are a few key things to keep in mind;

Your target demographic - who are your customers, and what ages are they? This will help you to determine the ultimate make-up of your game selection, arcade games vs. redemption games.
The amount of floor space you can devote to a your game room. As mentioned above, arcade machines and interactive games vary in size and can require a lot of square footage if you intend to offer 60-70 games.
Consider good crowd control and space management when placing games. Focus on visibility and popularity - bringing the hot games to the front of your game room will encourage play and guest participation as friends watch friends play.
Use lighting to enhance the room and direct guests focus to specific arcade machines that are proven revenue earners.

Spend the time to plan and design a good game room with the right game selection and space planning now, and it will help draw strong repeat visits and revenue opportunities for your arcade business startup today and over time.

As a point in our general experience, for many entrepreneurs we speak with, the idea of an arcade takes shape as a multi-attraction 'fun center'... or party center - if your goal is to start an arcade, you may very well be looking at starting a fun center business with an arcade game room. The reasons for this are many, check out the article Video Arcade Game - A Business in Decline to see how and why the arcade business is changing. If you have further interest and would like a no-obligation, free chat about the business and getting started, feel free to book some time with us: Fun Center Academy - Free Advice

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How To Create a VR Game Arcade Business Plan: Checklist

By alex ryzhkov, resources on virtual reality game arcade.

Financial Model
Business Plan
Value Proposition
One-Page Business Plan
SWOT Analysis
Business Model
Marketing Plan

Welcome to our blog post on how to write a business plan for a Virtual Reality Game Arcade! In today's rapidly evolving world of technology and entertainment, virtual reality (VR) has emerged as a game-changer. According to Statista , the global virtual reality gaming market is projected to reach a staggering $45.09 billion by 2027, with a compound annual growth rate of 30.2% . So, if you're looking to tap into this lucrative industry by establishing your very own VR game arcade, you've come to the right place!

Before diving into the steps, it's crucial to understand the essence of your business idea. Your VR game arcade will offer an immersive and interactive gaming experience using cutting-edge VR technology. With a wide range of games and simulations, you'll cater to both casual gamers and enthusiasts, providing a social platform for people to experience virtual reality. By offering multiplayer experiences, virtual reality escape rooms, and hosting events and tournaments, your aim is to attract a diverse customer base and engage the gaming community.

Now that you have a clear vision for your VR game arcade, let's discuss the essential steps to crafting a solid business plan. It's crucial to identify your target market and conduct thorough market research to understand their interests, preferences, and demographics. As the VR market is dynamic and highly competitive, analyzing your competition and staying updated with the latest gaming trends and technologies will be key to your success.

Once you have a solid understanding of your market and competition, it's time to determine the right location and space requirements for your arcade. Additionally, calculating the startup costs, developing a pricing and revenue strategy, and creating an effective marketing and promotional plan will help attract customers and generate revenue. Remember to also build a proficient team with clear roles and responsibilities, and develop a financial forecast and projection to ensure the profitability and sustainability of your VR game arcade.

Now that you have an overview of the steps involved in writing a business plan for a Virtual Reality Game Arcade, it's time to delve deeper into each one. Stay tuned as we provide detailed insights and expert tips on navigating each step to turn your vision into reality. Get ready to embark on an exciting journey into the world of VR gaming!

Identify Target Market and Demographics

Identifying the target market and understanding its demographics is a crucial step in developing a successful business plan for a virtual reality game arcade. By identifying the target market, you can tailor your offerings and marketing strategies to effectively reach and engage potential customers.

When identifying the target market, consider the age range, interests, and gaming preferences of your target audience. Virtual reality gaming appeals to a wide range of demographics, including teenagers, young adults, and even older individuals who are interested in experiencing the latest gaming technology.

One important aspect to consider is the level of familiarity and interest in virtual reality among your target market. While virtual reality gaming is gaining popularity, there are still segments of the population who may be less familiar with the technology. Understanding this will help you develop marketing strategies to educate and attract these individuals to your arcade.

Conduct surveys or focus groups to gather insights on the target market's preferences and expectations for a virtual reality game arcade.
Engage with existing virtual reality gaming communities online to gain insights into their preferences and interests.
Consider partnering with local businesses or schools to host events or workshops targeting specific demographics.

Conduct Market Research

Conducting comprehensive market research is a crucial step in developing a successful business plan for a Virtual Reality Game Arcade. It provides valuable insights into the current market trends, customer preferences, and competitors' offerings. By understanding the market dynamics, you can tailor your arcade's offerings and marketing strategies to meet the demands and expectations of your target audience.

When conducting market research, consider the following:

Identify your target market: Determine the specific demographic and psychographic characteristics of your potential customers. Understand their age groups, interests, preferences, and disposable income to create targeted marketing campaigns.
Analyze market trends: Stay up-to-date with the latest trends and advancements in virtual reality gaming. Research industry reports, attend gaming conferences, and follow influential gaming communities to identify emerging technologies, popular game genres, and evolving customer expectations.
Study competitors: Analyze existing virtual reality arcades in your target market. Evaluate their offerings, pricing strategies, customer reviews, and unique selling propositions. Identify their strengths and weaknesses to differentiate your arcade and create a competitive advantage.
Assess demand and feasibility: Gauge the demand for virtual reality gaming in your target location. Consider conducting surveys, interviews, or focus groups to understand potential customers' willingness to pay for VR gaming experiences and explore if your arcade concept is financially viable.

Tips for market research:

Utilize online surveys: Develop online surveys to collect feedback from your target audience, allowing you to gather valuable insights about their preferences and expectations.
Engage with local gaming communities: Connect with local gaming forums, social media groups, and influencers to build relationships and gain insights into the gaming culture and preferences in your target market.
Visit competitor locations: Experience firsthand the offerings and atmosphere of your potential competitors. Analyze their customer experience and assess the gaps and opportunities that your arcade can provide.
Stay updated with technology: Keep track of the latest virtual reality gaming technologies, hardware, and software. This knowledge will enable you to make informed decisions regarding the equipment and games you offer at your arcade.

By conducting thorough market research, you will acquire the necessary knowledge to make informed decisions about your Virtual Reality Game Arcade. It will assist you in defining your target market, differentiating your offerings, and developing effective marketing strategies to stand out in the competitive virtual reality gaming industry.

Analyze Competition

When starting a business, it is crucial to conduct a thorough analysis of your competition. This step will help you gain valuable insights into the market landscape and understand how other businesses in the virtual reality game arcade industry are operating.

Begin by identifying direct competitors in your target market. These are businesses that offer similar virtual reality gaming experiences or are located in the same geographic area. Visit their websites, social media pages, and physical locations to gather information about their offerings, pricing, and customer experience.

Make note of their strengths and weaknesses, their unique selling points, and any gaps in the market that they may be missing. This information will help you identify opportunities to differentiate your arcade and provide a unique value proposition to customers.

Focus on both local competitors and national or international chains.
Pay attention to customer reviews and feedback to understand what customers appreciate or dislike about the competition.
Assess the level of customer engagement and interaction offered by competitors to determine areas where you can improve.

Additionally, analyze the broader gaming and entertainment industry to stay informed about emerging trends and potential future competitors. Stay updated on the latest virtual reality technologies, gaming conventions, and industry news to ensure your arcade remains competitive and relevant.

Remember, the goal of analyzing the competition is not to copy them, but rather to gain insights that will help you differentiate your arcade and attract your target audience. By understanding the strengths and weaknesses of your competitors, you can develop a business strategy that positions your virtual reality game arcade as a unique and enticing option in the market.

Determine Location And Space Requirements

When establishing a Virtual Reality Game Arcade, it is crucial to carefully determine the location and space requirements for your business. The right location can significantly impact the success and profitability of your arcade, so thorough research and consideration are essential.

1. Consider the target market: Identify the demographics and preferences of your target market. Are they young gamers looking for a casual gaming experience, or more serious enthusiasts seeking advanced VR simulations? Understanding your target market will help you choose a location that aligns with their preferences.

2. Evaluate foot traffic and accessibility: Look for areas with high foot traffic and convenient accessibility. Shopping malls, entertainment districts, and popular tourist destinations are often excellent choices. Ensure that your arcade is easily visible and accessible to attract potential customers.

3. Assess space requirements: Determine how much space you need for your arcade. Consider factors like the number of VR gaming booths, support areas, customer waiting areas, and additional amenities such as snack bars or merchandise sections. A well-designed layout will enhance the overall gaming experience for your customers.

4. Research local zoning requirements: Check local zoning laws and regulations to ensure that operating a VR game arcade is permitted in your desired location. It is essential to comply with all legal requirements and obtain necessary permits or licenses.

5. Evaluate lease terms and costs: Review lease agreements carefully and consider factors like rental costs, lease terms, and any additional fees or expenses. Opting for a flexible lease agreement can be beneficial, allowing you to adapt to changing market conditions and expand your business if needed.

Consider the proximity to your target market's demographic. For example, if you are targeting college students, consider locating near university campuses.
Look for spaces with high ceilings and adequate ventilation to accommodate VR equipment and provide a comfortable gaming environment.
Consider the availability of parking and public transportation options for easy accessibility.
Research the reputation and demographics of nearby businesses to ensure a compatible customer base.

Establish Startup Costs

One of the crucial steps in starting a Virtual Reality Game Arcade is to establish the startup costs involved in setting up and running the business. This includes identifying all the expenses required to launch and operate the arcade successfully. Here are some key considerations:

Equipment and Technology: Begin by determining the cost of purchasing or leasing Virtual Reality (VR) gaming systems, VR headsets, controllers, and other necessary equipment. Research the market to find reputable suppliers and compare prices to ensure you get the best value for your investment.
Space Renovation and Fit-out: Assess the condition and layout of the chosen location for the arcade. Calculate the costs associated with any necessary renovations, such as electrical work, flooring, soundproofing, and décor. Additionally, consider the cost of setting up VR stations, seating areas, and any other required infrastructure.
Licenses and Permits: Research the local regulations and obtain any necessary licenses and permits for operating a gaming establishment. These may include general business licenses, health and safety permits, liquor licenses (if applicable), and any specific VR-related permits that may be required.
Insurance: Consult with an insurance professional to determine the types and coverage limits needed for your VR arcade. This may include general liability insurance, property insurance, and workers' compensation insurance.
Marketing and Advertising: Allocate a budget for promoting your VR arcade through various marketing channels, such as social media advertising, online platforms, print media, and event sponsorships. Consider hiring a marketing agency or freelancer to assist in creating effective marketing campaigns.
Staffing and Training: Estimate the costs associated with hiring and training employees who will operate and manage the arcade. This may include salaries, benefits, training programs, and uniforms.
Operational Expenses: Include ongoing operational costs such as utilities, internet connection, maintenance, cleaning supplies, software licenses, and other miscellaneous expenses.
Contingency Fund: Set aside a portion of your startup budget as a contingency fund to cover unforeseen expenses or unexpected challenges that may arise during the initial phases of the business.
Do thorough research to ensure you have accurately estimated the costs involved in each category.
Consider seeking quotes from multiple suppliers and contractors to compare prices and negotiate better deals.
Create a financial buffer by adding an additional percentage to your estimated costs to account for any unexpected expenses.
Monitor and adjust your startup costs as necessary throughout the planning process to ensure your business remains financially viable.

Develop Pricing And Revenue Strategy

Developing a pricing and revenue strategy is a crucial step in ensuring the success and profitability of your virtual reality game arcade. It involves determining the cost of your services, setting competitive prices, and implementing revenue-generating initiatives. Here are some important considerations:

Understand Your Costs: Begin by analyzing your operating costs, including rent, utilities, VR equipment, staffing, and maintenance. This will help you determine the minimum price you need to charge to cover expenses and generate a profit.
Research the Market: Conduct market research to gain insights into the pricing strategies of your competitors. This will help you determine a price range that is fair and attractive to your target market.
Segment Your Pricing: Consider offering different pricing tiers or packages to cater to different customer segments. For example, you could offer discounted rates for students or group discounts for parties or events. This will help attract a diverse customer base and maximize revenue.
Add Value with Additional Services: Explore opportunities to generate additional revenue through offering supplementary services such as VR equipment rentals, snacks, merchandise, or hosting private events. These add-ons can enhance the overall customer experience and increase your revenue streams.
Consider offering membership or loyalty programs to incentivize customer loyalty and generate recurring revenue.
Regularly review and adjust your pricing strategy based on market trends, customer feedback, and financial performance.
Monitor your competitors' pricing strategies and promotions to ensure you stay competitive in the market.
Offer special promotions or discounts during off-peak hours or slower seasons to attract more customers.

Developing a well-thought-out pricing and revenue strategy will help you optimize your profitability while attracting and retaining customers in the competitive virtual reality gaming industry. It is important to periodically reassess and fine-tune your strategy to adapt to evolving market conditions and customer preferences.

Create A Marketing And Promotional Plan

Once you have identified your target market and analyzed your competition, it is essential to create a comprehensive marketing and promotional plan to attract customers to your virtual reality game arcade. This plan will outline the strategies and tactics you will use to raise awareness, generate interest, and ultimately drive traffic to your establishment.

Your marketing and promotional plan should begin with a strong brand identity that aligns with the unique experience your arcade offers. This includes designing a memorable logo, developing a cohesive color palette, and establishing a consistent brand voice across all communication channels.

To reach your target market effectively, it's important to utilize a mix of both traditional and digital marketing techniques. Traditional methods may include print advertisements in local publications, billboards, and hosting events or sponsoring local gaming tournaments. These strategies can help you reach a broader audience who may not be actively engaged in online platforms.

Additionally, digital marketing plays a crucial role in promoting your virtual reality game arcade, given the tech-savvy nature of your target market. Utilize social media platforms, such as Facebook, Instagram, and Twitter, to share engaging content, sneak peeks of upcoming games, and behind-the-scenes footage of the arcade. Encourage customers to share their experiences on social media by creating unique hashtags and offering incentives for user-generated content.

Remember, a successful marketing and promotional plan requires consistent monitoring and evaluation. Regularly assess the effectiveness of your strategies, track customer feedback, and adapt your plan accordingly to ensure maximum engagement and continued growth for your virtual reality game arcade.

Build A Team And Outline Roles And Responsibilities

Building a strong and cohesive team is crucial for the success of a Virtual Reality (VR) Game Arcade. Each member of the team should have specific roles and responsibilities that contribute to the overall operation and growth of the business. Here are some key steps to follow:

Identify the key positions: Determine the key positions required for the smooth functioning of the VR Game Arcade. This may include a manager, VR technicians, game advisors, customer service representatives, marketing specialists, and administrative staff.
Outline roles and responsibilities: Clearly define the roles and responsibilities of each team member, ensuring that they align with the objectives and needs of the VR Game Arcade. This will help create clarity and avoid any overlap or confusion in the team's operations.
Recruit and train: Develop a recruiting strategy to attract qualified individuals who possess the skills and experience necessary for their respective roles. Conduct thorough interviews and evaluations to ensure the right fit for your team.
Promote teamwork and communication: Foster a positive and collaborative work environment by encouraging open communication and teamwork among team members. Establish regular team meetings to address any challenges, share ideas, and celebrate achievements.
Regular performance evaluations: Conduct regular performance evaluations to assess the progress and effectiveness of each team member. Provide constructive feedback and identify areas for improvement or additional training.

By building a competent and motivated team with clearly defined roles and responsibilities, your VR Game Arcade will be well-equipped to provide exceptional customer service and create an immersive and enjoyable gaming experience for your customers.

Develop A Financial Forecast And Projection

In order to ensure the financial success of your virtual reality game arcade, it is crucial to develop a financial forecast and projection. This will help you understand the potential profitability of your business and make informed decisions about its future. Here are some key steps to consider when creating your financial forecast:

1. Estimate your revenue: Start by estimating the revenue you expect to generate from your arcade. This can include income from hourly gaming sessions, VR equipment rentals, as well as sales of snacks and merchandise. Consider conducting market research to understand the demand for such services in your target market.

2. Calculate your expenses: Determine all the costs associated with running your arcade, including rent, utilities, salaries, maintenance, marketing, and any other overhead expenses. Be sure to account for both fixed and variable costs to get an accurate estimate.

3. Evaluate pricing strategy: Set your pricing strategy based on a combination of your estimated revenue and expenses. Consider the prices charged by your competitors and the perceived value of the gaming experience you offer. It may be helpful to conduct price sensitivity analysis to determine the optimal pricing point.

4. Create financial projections: Use the estimated revenue and expenses to create a projected income statement, cash flow statement, and balance sheet for the first few years of your arcade's operation. Make sure to include growth projections and take into account any seasonal variations in business.

Be conservative with your revenue estimates to account for uncertainties and unexpected challenges.
Consider different scenarios, such as best-case and worst-case, to assess the resilience of your business model.
Regularly review and update your financial forecast as your business progresses and market conditions change.

5. Seek professional advice: If you are not familiar with financial forecasting and projections, it is advisable to consult with a financial advisor or accountant who can guide you through the process. They can help you analyze your financial data, identify potential risks, and offer valuable insights to improve your projections.

By developing a comprehensive financial forecast and projection, you will have a better understanding of your virtual reality game arcade's financial health and potential for growth. This will enable you to make informed decisions, attract investors if needed, and set realistic goals for your business.

In conclusion, starting a virtual reality game arcade requires a well thought out business plan. By following the nine steps outlined in this checklist, entrepreneurs can ensure that they have thoroughly researched their target market, analyzed the competition, and developed a strategic plan for success.

Identifying the target market and demographics is crucial for understanding customer preferences and tailoring the arcade's offerings.
Conducting market research helps gauge the demand for virtual reality gaming and identify potential opportunities.
Analyzing the competition allows for differentiation and the development of unique selling points for the arcade.
Determining the location and space requirements ensures that the arcade is easily accessible and has enough room to accommodate a wide range of games and experiences.
Establishing startup costs helps with budgeting and securing necessary funding.
Developing pricing and revenue strategies ensures profitability while remaining attractive to customers.
Creating a marketing and promotional plan helps build awareness and attract a diverse customer base.
Building a team with clearly outlined roles and responsibilities ensures effective operation of the arcade.
Developing a financial forecast and projection helps track the financial health of the business.

By following these steps, entrepreneurs can set themselves up for success in the virtual reality gaming industry and create a unique and immersive gaming experience for their customers.

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May 06, 2024

Dave & Buster's plan to allow gambling on arcade games raises questions about its legality

Right now, officials in pennsylvania and new jersey are not saying much until the restaurant chain reveals more details.

Dave & Buster's will soon introduce a betting platform for people 18 and older to place real money wagers on games at its family-friendly arcades. This is a file photo taken inside a Dave & Buster's in Ohio in January 2024.

Arcade and restaurant chain Dave & Buster's has revealed a plan to allow customers to bet on some of its games. Instead of playing its arcade games for tickets that can be redeemed for prizes, people potentially could raise the stakes of a round of Skee-Ball or a game of billiards by putting real money on the line.

The Dallas-based company, which has about 160 U.S. locations, is partnering with software company Lucra to create a digital wagering platform that would be available through the app used by Dave & Buster's loyalty club members, according to an announcement by the tech company last week. Lucra creates what it calls real-money, "gamification" software that allows peer-to-peer betting. The company's investors include former Philadelphia Eagle Zach Ertz and his wife, former U.S. Women's soccer player Julie Ertz.

Dave & Busters hasn't said how and where the restaurant plans to roll out gambling or on what games customers could place bets. A Lucra executive told the New York Times that the company's technology would be connected to "skill-based" games where the outcomes are determined by the participants' "knowledge, ability, strength, speed, endurance (and) intelligence." Betting also would be restricted to customers 18 and older.

Some on social media reacted to the news with skepticism.

I'm not sure there is a better sign that America is headed toward a gambling problem than Dave & Buster's offering its customers the ability to bet real money on pop-a-shot and skee-ball games. https://t.co/OwhL0oXILO — Joe Pompliano (@JoePompliano) April 30, 2024

Dave & Buster's has two locations in Philadelphia — on Columbus Boulevard and at Philadelphia Mills Mall — and another in Plymouth Meeting. The chain also has its restaurants and arcades in Blackwood, Camden County, and Atlantic City. The general manager at the location on Columbus Boulevard referred questions to the company's corporate office, which did not respond to a request for comment.

A spokesperson for the Pennsylvania Gaming Control Board, which regulates the state's casino and online gambling operations, said the agency is aware of Dave & Buster's announcement and it is awaiting more information about the plan.

"It's certainly something we're going to look into, just to learn more about it," the gaming control board's Richard McGarvey said Friday. "We're always watching for new things that are coming around — lots of fantasy sports and those kinds of things. From this angle — this is new."

The New Jersey Division of Gaming Enforcement, part of the state's attorney general's office, declined to comment Friday on Dave & Buster's plan.

The gambling industry in Pennsylvania has exploded in popularity since online gambling and sports betting were legalized in 2017, though sports wagering didn't become operational until after the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act in May 2018. Last year, online gambling generated more than $2.1 billion in revenue for the state, according to Penn State University's Criminal Justice Center , which has studied how people are impacted by online betting.

Among 1,800 people surveyed by Penn State who said they placed bets online, half reported they had problems with gambling, such as betting with increasing frequency, higher spending and the urge to release stress by placing bets.

"Gambling is ever-changing. It's not this static thing," said Gillian Russell, an assistant research professor at Penn State Abington who worked on the study. "It's not like alcohol, which doesn't change a ton and has the same basic features."

Some of Russell's research focuses on the merging worlds of gambling and interactive gaming. She said it's not surprising that Pennsylvania Gaming Control Board doesn't have clarity on how Dave & Buster's wagering would fit into the state's regulations.

"We don't have the legislation that accounts for newly emerging forms of gambling," she said.

CNBC reported Dave & Buster's hopes to roll out its betting platform within the next few months. Michael Madding, Lucra's chief operating officer, told the cable network that the company believes the restaurant chain's skill-based games are not subject to the same regulations as casino games of chance, like roulette and blackjack.

It's expected there will be a limit to the size of the bets allowed on games, but those details have not been released. On apps where Lucra's software is already in use, the company said the average bet is around $10.

Dave & Buster's restaurants and arcades are open all ages with some restrictions. The Columbus Boulevard location requires minors to be accompanied by someone at least 25 years old. Some Dave & Buster's have policies that prohibit customers under 21 after 11 p.m. on weekends.

Russell said the legal questions around allowing gambling in spaces with children can be murky and contentious.

"The lottery is in view of children. We've got these games of skill that are so hotly contested, and those are very much in public view of children. If you walk into a convenience store, there's no age limit," Russell said. "The popularity of online gambling is everywhere. (Children are) not allowed on casino floors, but they are still able to go to a lot of places where gambling is."

In Illinois, one lawmaker reacted to Dave & Buster's announcement by quickly proposing a bill that would prohibit wagering at "family amusement" establishments.

Russell questioned how Dave & Buster's aims to market its betting platform.

"It's really interesting because the premise is, 'You can bet with your peers,'" she said. " ... (W)hy would anybody use a third party just for betting against their friends? If you're with your friends, you're just going to do it in cash with each other."

The professor speculated the platform might end up being geared toward forming communities that specifically gather to bet on arcade games. Even if children and teens cannot use Dave & Buster's app to place bets, she said, that this exists entices them to try gambling.

"One thing that's very clear in the data and all the research is that the younger you are, the less interested you are in traditional forms of gambling," Russell said. "If I'm talking to Gen Z, they are not your casino gamblers. They are not doing the things my parents do when it comes to gambling. Bringing gambling elements into video gaming — that's what kind of catches their eye."

Russell hopes lawmakers will adapt how they define gambling to create more flexibility to respond to innovation and the risks it may carry. "Maybe our policy needs to start shaping and fitting an ever-changing market," she said.

Michael Tanenbaum PhillyVoice Staff

[email protected]

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How to Start an Arcade Business in 2024
Step 4: Create an Arcade Business Plan. Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:
Arcade Business Plan Template (2024)
An arcade business plan is a plan to start and/or grow your arcade business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your Arcade business plan using our Arcade Business Plan Template here.
How to Write an Arcade Business Plan + Free Sample Plan PDF
Free Download: Sample Entertainment Business Plan Templates. Once headed for extinction, the arcade has made a comeback. There are now nearly 7,000 arcades and entertainment centers across the U.S., and the sheer range of gaming options means there are plenty of opportunities for entrepreneurs looking to carve out a niche in their community.
Arcade Business Plan Template [Updated 2024]
Marketing Plan. Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a arcade business plan, your marketing strategy should include the following: Product: In the product section, you should reiterate the type of arcade company that you documented in your company overview.
Arcade Business Plan Template (2024)
Here are a few tips for writing the market analysis section of your arcade business plan: Conduct market research, industry reports, and surveys to gather data. Provide specific and detailed information whenever possible. Illustrate your points with charts and graphs. Write your business plan keeping your target audience in mind.
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A carefully crafted business plan includes all the necessary information, numbers, and financial details. There should be a clear structure, so it does not look messy. When we designed our business plan for an arcade game room, we took care to arrange it appropriately. There are 5 parts within the business plan. 1.
Arcade Game Room Business Plan Sample (Free)
Your business plan should articulate your vision clearly. Define your target audience (such as families, teenagers, young adults, or gaming enthusiasts) and establish the distinctive appeal of your arcade game room (retro games, cutting-edge technology, virtual reality experiences, etc.). Market analysis is the next critical component.
How to Start an Arcade
Start an arcade by following these 10 steps: Plan your Arcade. Form your Arcade into a Legal Entity. Register your Arcade for Taxes. Open a Business Bank Account & Credit Card. Set up Accounting for your Arcade. Get the Necessary Permits & Licenses for your Arcade. Get Arcade Insurance. Define your Arcade Brand.
Building the Dream: A Strategic Guide to Your Arcade Business Plan
This plan serves as a roadmap for your venture, outlining your goals, strategies, and financial projections. Here are the essential components of an arcade business plan: Executive Summary: The executive summary provides an overview of your entire arcade business plan. It introduces your business, summarizes market opportunities, highlights ...
How to write a business plan for an arcade game room?
When you write the strategy section of your arcade game room business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants. In the competitive edge subsection, elaborate on what makes your company stand out from competitors.
Game On: A Comprehensive Guide on Starting Your Own Arcade Business
By prioritizing the creation of a solid business plan and successfully navigating the permit process, you'll establish a strong foundation for your arcade business. These initial steps will help you define your vision, understand the legal requirements, and position yourself for success in the competitive arcade industry.
How to Write Arcade Business Plan? Guide & Template
Strategic Direction: A well-crafted business plan helps you define the direction of your arcade. It outlines your mission, vision, and core values, providing a clear roadmap for success. 2 ...
How To Create a Winning Retro Arcade Game Center Business Plan
Stay tuned for detailed instructions on how to execute each step effectively. Time to level up your business plan game! Conduct Market Research. Before diving into the planning and implementation of your Retro Arcade Game Center, it is crucial to conduct thorough market research to gather essential insights about the industry and your target ...
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Start your Own Arcade Business
Developing a comprehensive arcade business plan is the first critical step to ensure the success of launching an arcade business. This detailed document should systematically outline all aspects of your arcade center, including the business concept, target market, and competitive positioning. Moreover, a robust analysis of marketing strategies ...
How to Start an Arcade for Entrepreneurs
Step 1: Create a Business Plan. If you're serious about opening an arcade, you must develop a business plan to help you get started. A business plan is essential in setting your goals and ideas to ensure success. You'll need to figure out your business finances and see the best ways to get funding for your project.
How to Start an Arcade Business
Basic guidelines to follow when planning your arcade space include: Estimate about 50 square feet per arcade game. Leave a minimum of two to four feet in front of your games open so that people ...
How To Create a VR Arcade Games Business Plan: Checklist
Welcome to our blog post on how to write a business plan for virtual reality arcade games! If you're looking to break into the immersive and interactive entertainment industry, you've come to the right place. With the increasing demand for virtual reality experiences, now is the perfect time to establish a cutting-edge VR Arcade Games center.
Arcade Business Plan and SWOT Analysis
The Arcade Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start an Arcade business. ... Given the extremely high gross margins from arcade game usage, sales of ...
Sample Arcade Business Plan
This arcade Business Plan provides critical guidance to entrepreneurs facing such difficulty. With this, you're able to follow and understand how you should develop your business plan. Contents. ARCADE BUSINESS PLAN SAMPLE. The Key Sections you can't do without. i. Executive Summary. ii. Company Description.
A 3-Year Financial Plan For An Arcade Game Room
A financial plan for an arcade game room is a comprehensive guide that assists you in navigating the financial aspects of your gaming business. Think of it as programming a new video game: You need to understand the equipment you possess, the type of games you want to offer, and the cost associated with setting up and maintaining your gaming ...
How to Start an Arcade Business
Step 2: Use your plan to source the best arcade machines and redemption games. With your plan complete, it's finally time for the fun stuff. Sourcing the best, coolest games and machines for your location and demographic profile, along with the design, layout and build-out of your ideal location.
How To Create a VR Game Arcade Business Plan: Checklist
Identifying the target market and understanding its demographics is a crucial step in developing a successful business plan for a virtual reality game arcade. By identifying the target market, you can tailor your offerings and marketing strategies to effectively reach and engage potential customers. When identifying the target market, consider ...
Dave & Buster's plan to allow gambling on arcade games raises questions
Arcade and restaurant chain Dave & Buster's has revealed a plan to allow customers to bet on some of its games. Instead of playing its arcade games for tickets that can be redeemed for prizes ...
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How to Start an Arcade Business

Step 1: Decide if the Business Is Right for You

Arcade industry trends

Trends and challenges

How much does it cost to start an arcade business?

How much can you earn from an arcade business?

What barriers to entry are there?

Related Business Ideas

How to Start an Escape Room Business

How to Start a Paintball Field

How to Start a Bowling Alley

Why? Identify an opportunity

What? Determine your products or services

How much should you charge for arcade games?

Who? Identify your target market

Where? Choose a location for your arcade business

Step 3: Brainstorm an Arcade Business Name

Step 4: Create an Arcade Business Plan

Step 5: Register Your Business

Choose where to register your company

Choose your business structure

Form Your LLC

Step 6: Register for Taxes

Step 7: Fund your Business

Step 8: Apply for Licenses/Permits

Step 9: Open a Business Bank Account

Step 10: Get Business Insurance

Step 11: Prepare to Launch

Essential software and tools

Develop your website

Focus on USPs

Step 12: Build Your Team

Step 13: Run an Arcade Business – Start Making Money!

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Arcade Business Plan Template

Arcade Business Plan

Executive Summary

Product Offering

Customer Focus

Management Team

Success Factors

Financial Highlights

Company Overview

Hal’s Arcade History

Hal’s Arcade Services

Industry Analysis

Customer Analysis

Customer Segmentation

Competitive Analysis

Terry’s Arcade

Chuck’s Arcade Palooza

Seattle’s Center of Fun

Competitive Advantage

Marketing Plan

Promotions Strategy

Operations Plan

Milestones:

Financial Plan

Funding Requirements and Use of Funds

Financial Projections

What are the Main Types of Arcade Businesses?

How Do You Get Funding for Your Arcade Business Plan?

What are the Steps To Start an Arcade Business?

How to Write an Arcade Business Plan + Free Sample Plan PDF

Executive summary

Market analysis

Products and services

Arcade Games

Competitive analysis

Describe your space

Important Notes

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The quickest way to turn a business idea into a business plan

Arcade Business Plan Template

Arcade Business Plan