Arcade Business Plan and SWOT Analysis

Arcade Business Plan, Marketing Plan, How To Guide, and Funding Directory

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.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

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.