The video game arcade business plan works on a very simple premise: purchase or lease video game uprights and consoles to fill a recreational space, and if enough kids come and play them, the profit on quarters in the machines is yours. The business model dates back decades now, but the technology has changed. Now your business plan needs to identify the sort of games you will stock (by title), preferably with images of some of the stations, and it should offer a list of the target customers you can get into the arcade. How many children 8-17 live within 5 miles, or 10 miles, of the facility's location? What is their average household expenditure on entertainment and recreation? The answers to questions like these are important, and if you have advanced tools for working with Census data, you can get your hands on them. Other issues for the plan:
• What competing arcades or recreational centers are there nearby?
• How will you outperform them?
• How many employees will your arcade require?
• What about funding?
• When do you expect break-even to be within range?
Many of these questions can be answered as you build working estimates into a financial pro forma model in Excel for business plan software. If you don't have software or aren't comfortable using it, outsourcing your business plan to trained consultants is an excellent idea. MasterPlans has been working with start-up and existing businesses alike since our founding in 2002, and we have a full team in-house ready to assist you with your vision. The gaming arcade you have in your head can be coming to life sooner than you know it. Call 877-453-2011 today to speak with a consultant – consultations and quotes are always free.
