Start a Video Arcade: Your Complete Guide

Think back to your childhood. Do you remember the excitement of going to the video arcade? There was something about those flashing lights and roaring games that just drew people in. Maybe it was the thrill of trying to beat your high score, or simply spending time with friends. If you’re longing for those days, it’s time to start your own video arcade! This guide will show you everything you need to know.

Table of Contents

What is a Video Arcade business?

A video arcade is a business that provides entertainment by allowing customers to play interactive video games. The games are typically coin-operated and are often located in high-traffic areas such as shopping malls and restaurants. Video arcades can be standalone businesses or they can be part of a larger entertainment complex. Many video arcades also offer redeemable tickets or prizes, which can be used to purchase merchandise or play additional games. Video arcades typically generate revenue through game fees, redemption center sales, and snack bar sales. Many video arcades also offer party packages, which can include private rooms, catering, and goodie bags. The cost of a party package will vary depending on the size of the group and the duration of the event.

Why would I want to start a Video Arcade business?

If you’re thinking about starting a business, you may have considered a video arcade. But what are the benefits of owning a video arcade? In this section, we’ll break down the top three reasons why starting a video arcade business can be a great decision for entrepreneurs.

You Can Make a Lot of Money

With the right location and the right mix of games, a video arcade can be a very profitable business. According to IBISWorld, the coin-operated amusement devices industry generates about $8 billion in annual revenue. And with a low barrier to entry— you can start your business with just a few thousand dollars—a video arcade can be a great way to get your feet wet in the world of entrepreneurship.

It’s a Recession-Proof Business

When the economy is struggling and people are tight on money, they still want to have fun. That’s where your video arcade comes in. People may not be able to afford to take fancy vacations or go out to eat as often, but they can still drop a few quarters into your machines and enjoy themselves for an afternoon. This makes a video arcade one of the most recession-proof businesses out there.

You Can Get Creative with It

A video arcade doesn’t have to be just a room full of pinball machines. You can get creative with your business and offer other amusements like laser tag, mini golf, or even VR experiences. This will help you stand out from the competition and attract more customers.

Starting a video arcade can be a great decision for entrepreneurs for many reasons. With the right location and mix of games, it can be a very profitable business. It’s also relatively recession-proof because people still want to have fun even when times are tough economically. And last but not least, you can get creative with your business and offer other amusements like laser tag or mini golf to attract more customers. So if you’re thinking about starting your own business, definitely consider starting a video arcade!

How do I start a Video Arcade business?

Do you love playing video games? Do you miss the days when video arcades were all the rage? If so, then why not start your own video arcade business? It’s a great way to have fun and make money at the same time. In this section, we’ll share some tips on how to get started. So read on for information on everything from choosing a location to stocking your arcade with games. Let’s get started!

Define Your Niche

When it comes to starting a video arcade business, one of the most important things you can do is to define your niche. There are all sorts of arcades out there, from family-friendly establishments to more adult-oriented businesses. By figuring out who your target audience is and what they want, you’ll be in a much better position to succeed.

For instance, if you’re targeting families, you’ll need to offer a wide range of games that appeal to different age groups. If you’re aiming for a more adult crowd, you might want to focus on games with higher levels of difficulty or offer a bar area where patrons can drink and socialize.

By taking the time to figure out your niche, you’ll be well on your way to starting a successful video arcade business.

Create a Business Plan

Before you start a video arcade business, it’s important to create a well-thought-out business plan. This will help you secure funding, set realistic goals, and make sound decisions for your business. Here are a few key elements to include in your business plan:

  1. Executive summary: This is a brief overview of your business plan. Be sure to include your arcade’s mission statement and an overview of your products and services.
  2. Company description: Give an overview of your company, including its history, ownership structure, and any relevant industry experience.
  3. Market analysis: Research the video arcade industry and market trends. Include information on your target customers, competitors, and pricing strategy.
  4. Marketing and sales strategy: Outline your plans for marketing and promoting your video arcade. Be sure to include a sales forecast for the first few years of operation.
  5. Financial projections: Create realistic financial projections for your video arcade business. Include income statements, balance sheets, and cash flow statements for the first three years of operation.

By taking the time to create a comprehensive business plan, you’ll be positioning yourself for success as you launch your new video arcade business.

Find Funding for Your Business

When you’re starting a business, one of the most important things to do is to find funding. There are many different sources of funding available, and it’s important to explore all your options. One option is to take out a loan from a bank or other financial institution.

Another option is to seek investors. This can be done by presenting your business plan to potential investors and convincing them to provide funding. You can also look for grants or other forms of government funding. Finally, you can use personal savings or money from friends and family.

Whichever source of funding you choose, be sure to carefully consider all your options before making a decision.

Get the Necessary Permits and Registrations

Before you can open your video arcade business, there are a few legal requirements you’ll need to take care of. First, you’ll need to obtain the necessary permits and licenses from your city or town. Depending on your location, you may need a business license, a sales tax permit, and/or a liquor license. You’ll also need to register your business with the state.

Once you have all of the necessary permits and registrations in place, you can start looking for a suitable location for your business. Keep in mind that you’ll need enough space to accommodate all of your gaming equipment, as well as any seating or other furniture you plan to include. Once you’ve found the perfect spot, you can start setting up your arcade and preparing for opening day!

Find Your Location

Before you even start thinking about opening a video arcade, you need to answer some important questions. First, what is the general age group that you’re targeting? Kids? Teens? Adults?

Once you’ve decided on your target audience, you need to find a location that’s convenient for them. If you’re targeting families with young kids, for example, you might want to consider setting up shop near a playground or park. If you’re aiming for a more mature crowd, on the other hand, you might want to be closer to colleges or office towers.

In either case, the key is to choose a location that’s easy for your target customers to get to. That way, you can be sure that your video arcade will be well-visited and profitable.

Purchase the Arcade Games & Equipment

When you are ready to start your own video arcade business, there are a few key pieces of equipment that you will need to purchase.

First, you will need arcade games. These can be classic games like Pac-Man or more modern titles. You will also need gaming consoles, such as Xboxes or PlayStations, for customers to play on. In addition, you will need a coin-operated timer to keep track of how long each customer plays for.

Finally, you will need chairs and other furniture for customers to use while they are playing. With these essential pieces of equipment, you will be well on your way to starting a successful video arcade business.

Hire and Train Staff

Before you can open your video arcade to the public, you will need to staff it with qualified employees. The first step is to identify the positions that you need to fill. For most video arcades, this will include at least one manager and several customer service representatives.

Next, you will need to write clear and concise job descriptions for each position. Be sure to include a list of essential qualifications and responsibilities. Once you have finished writing the job descriptions, you can begin the process of recruiting and interviewing candidates. Be sure to take your time during this process, as it is important to find employees who are both qualified and a good fit for your business.

After you have hired your staff, be sure to provide them with comprehensive training on how to use the equipment and how to properly interact with customers. By taking the time to hire and train qualified staff members, you can help ensure that your video arcade is successful.

Market Your Business

Before you can start your video arcade business, you need customers! To do this, you need to market your business. You can market your business in a variety of ways, but some of the most effective methods are online marketing, word-of-mouth marketing, and print marketing.

Online marketing includes creating a website for your business and using search engine optimization techniques to ensure that potential customers can find your site. You can also use social media to promote your business and connect with potential customers.

Word-of-mouth marketing is a great way to get started, since it’s free and easy to do – simply tell your friends and family about your new business and ask them to spread the word. Finally, print marketing involves creating flyers and brochures that you can distribute in local businesses or hand out to potential customers. Whatever methods you choose, make sure you’re creative and effective in order to reach the largest number of potential customers!

How much does it cost to start a Video Arcade business?

Have you ever wanted to start your own video arcade? If so, you’re not alone. According to the International Association of Amusement Parks and Attractions, there are over 10,000 commercial amusement facilities in the United States alone. But before you can start your own business, you need to know how much it’s going to cost. In this section, we’ll break down the costs of starting a video arcade business so that you can make an informed decision about whether or not this is the right business for you.

The Cost of Renting or Buying a Commercial Space

One of the first costs you’ll incur when starting a video arcade business is the cost of renting or buying a commercial space. The price you’ll pay will depend on factors like the size and location of the space. For example, a small space in a rural area will cost less per month than a large space in a major city.

The Cost of Leasing Arcade Games

Another significant cost associated with starting a video arcade is the cost of leasing arcade games. Most arcade businesses lease their games from third-party companies. The amount you’ll pay will depend on factors like the type of games you want and how many games you need. For example, popular games like “Pac-Man” and “Donkey Kong” can cost upwards of $500 per month to lease.

The Cost of Hiring Employees

If you want to staff your video arcade with employees, you’ll need to factor in the cost of hiring and training them. The number of employees you’ll need will depend on the size of your business and the hours you plan to be open. For example, a small arcade that’s open during daytime hours may only need one or two employees. But if you’re planning to open a large arcade that’s open 24 hours a day, you may need a staff of 10 or more employees.

Starting a video arcade can be a fun and profitable way to enter the world of entrepreneurship. But before you take the plunge, it’s important to have a clear understanding of all the costs associated with starting and running this type of business. From renting or buying commercial space to leasing games and hiring employees, there are numerous costs to consider. But if you do your homework and budget carefully, there’s no reason why your video arcade business can’t be a success!

How do I find customers for my Video Arcade business?

There’s no question that starting and running a successful Video Arcade business is hard work. But with the right tools and advice, it can be done! In this section, we’ll give you some tips on how to find new customers for your arcade. So read on and get started today!

Define Your Target Market

Before you can start finding customers for your video arcade business, you need to define your target market. What kind of customers are you looking for? What kinds of games do they like to play? How much money are they willing to spend? Once you have a good understanding of your target market, you can start using marketing strategies to reach them. For example, if you’re targeting teenage boys, you might advertise in magazines that they read or sponsor a local youth sports team. By taking the time to define your target market, you’ll be able to find the right customers for your business.

Create a Marketing Plan

Before you open your video arcade, you will need to create a marketing plan to attract customers. The first step is to understand your target market.

Who are the people most likely to visit your arcade? What are their age, gender, and interests? Once you have a good understanding of who your target market is, you will be able to tailor your marketing efforts to reach them more effectively.

There are many ways to reach potential customers, including advertising, public relations, and event marketing. You will need to decide which channels will work best for your business and allocate your budget accordingly. By taking the time to create a well-crafted marketing plan, you will be able to increase the chances of success for your video arcade business.

Build a Web Presence

If you want to build a customer base for your video arcade business, one of the best things you can do is create a strong web presence. A well-designed website will not only help you attract customers, but it will also give you a platform to showcase your business and build credibility.

Additionally, social media can be a powerful tool for marketing your business and connect with potential customers. By creating informative blog posts, sharing photos and videos of your arcade, and engaging with customers online, you can reach a wider audience and build interest in your business.

With a little effort, you can create a strong web presence that will help you find new customers for your video arcade business.

Use Organic and Paid Social Media

These days, it’s important to have a strong online presence if you want to attract customers and get your business noticed. And when it comes to promoting a video arcade, organic and paid social media is a great place to start. First, set up profiles on popular platforms like Facebook, Twitter, and Instagram. Then, start posting engaging content that will appeal to your target audience.

Be sure to use relevant hashtags, and don’t forget to post regular updates. You can also create promotional videos and post them on YouTube or Vimeo. In addition to organic social media, you can also use paid advertising to reach potential customers.

For example, you can run Facebook ads targeting people who live near your video arcade and who are interested in gaming. You can also use Google AdWords to target people who are searching for things like “video arcade near me.” By using both organic and paid social media, you’ll be able to reach the widest possible audience and find customers for your business.

Find an Influencer

If you want to reach new customers for your video arcade business, one of the best ways to do it is to find an influencer. An influencer is somebody with a large social media following who can help to promote your business to their followers.

When choosing an influencer, it’s important to pick somebody who is relevant to your target market. For example, if you’re targeting teenagers, look for an influencer with a large teenage following. Once you’ve found an influencer, reach out and ask if they would be interested in promoting your business.

Many influencers are happy to do this in exchange for a free product or service. If you can find an influencer who is willing to promote your business, you’ll be able to reach a whole new group of potential customers.

As any business owner knows, finding customers is essential for success. However, it can be difficult to reach potential customers, especially if you are starting a new business. One way to find customers is to advertise in local publications. This can help to raise awareness of your business and attract potential customers who might not be aware of your company otherwise.

When placing an ad, be sure to target publications that are likely to be read by your target market. For example, if you are operating a video arcade, you may want to place ads in local newspapers or magazines that focus on entertainment or gaming.

By taking the time to target your advertising, you can increase the chances of finding new customers for your business.

Get Listed in Online Directories

If you’re in the business of running a video arcade, one of the best ways to reach new customers is to get listed in online directories. By making sure your business is easy to find online, you’ll be able to tap into a whole new pool of potential customers.

There are a few different ways to go about getting listed in online directories. One is to submit your business information to directory sites like Google My Business or Yelp. Another is to create a listing on your own website, and then submit that to directory sites. Whichever approach you choose, the important thing is to make sure your listing is complete and accurate. Include all relevant information about your business, such as your hours of operation, contact information, and address. You should also include a brief description of what your video arcade has to offer.

By taking the time to get listed in online directories, you’ll be able to reach a larger audience and draw in more customers for your video arcade business.

Offer Coupons and Discounts

Attracting customers is essential for any business, but it can be especially challenging for new businesses. One way to bring in customers is to offer coupons and discounts.

This can be an effective strategy because it provides an incentive for people to try out your business. For example, you could offer a discount on the first game of the day or a free game for every ten tokens purchased. You could also offer a package deal for a certain number of tokens or games.

Another option is to hold special events, such as a tournament with prizes, which can help to generate excitement and bring in new customers. No matter what strategy you choose, offering coupons and discounts is a great way to find customers for your video arcade business.

About Jeremy Reis

Jeremy Reis is a serial entrepreneur from the Franklin, Tennessee area. Jeremy is the founder of multiple businesses and is the VP of Marketing for CRISTA Ministries. Jeremy has his MBA with a focus in Entrepreneurship from The Ohio State University.