amusement arcade business plan

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.

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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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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan consultant can create your business plan for you.

Other Helpful Business Plan Articles & Templates

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

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.

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

• Sample Business Plans
• Entertainment & Media

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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Arcade Business

Back to All Business Ideas

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 June 5, 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? Plan your arcade games and amenities

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

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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.
• Local SEO  — Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• 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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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm an Arcade Business Name
• Create an Arcade Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run an Arcade Business - Start Making Money!

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How to Start an Arcade 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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Amusement Park Business Plan

Start your own amusement park business plan

Wasatch Family Fun Center

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

I&B Investments is a new limited liability company formed under the laws of the state of Utah.

This document has been prepared to provide the reader with information about our company, including business structure, company goals, projected growth, venture capital requirements, start-up costs, an investment analysis and the industry trends.

I&B Investments has identified the family entertainment industry as its primary interest and to that end the company has focused its efforts on the development of one or more family entertainment centers (FEC) to provide quality family entertainment activities to the communities in the Weber County, Utah area.

Focused on family entertainment in a family-oriented community, I&B Investments is a company primed to take advantage of an expanding and profitable industry.

Entertainment has become a buzzword of the new millennium. David L. Malmuth, senior vice president of the TrizenHahn Development Corp. has observed, “People are not just interested in buying things. They want an experience, adding that the keys to providing successful experiences are authenticity, fun and participation. Americans have money to spend and will spend it on entertaining themselves. In fact, statistics show that people in the United States spend more on entertainment than on health care or clothing.”

Quality family entertainment is the focus of I&B Investments. The construction and commercialization of one initial FEC is factored into the initial development phase detailed within. The company’s proposed FECs will be designed to provide the type of family entertainment and adventure the current market demands.

The first proposed site is a ten-acre parcel in Weber County, with a second site to follow within five years.

In addition to other funding and capitalization efforts detailed herein, the Company anticipates that it will seek funds from the Government Redevelopment Agency which may assist in the purchasing of land for development of the proposed sites.

A recent census conducted by the U.S. Census Bureau found that from 1990 to 1998, personal consumption and expenditures for amusement and recreation increased by $31.5 billion, with an overall industry gross of $56.2 billion. Source: U.S. Census Bureau, Statistical Abstract of the U.S: 2000 – The National Income and Product Accounts of the U.S., 1929-94, Vol.1.

Based on the current entertainment prices and cost of revenue structure in the local amusement and recreation industries, we believe that our anticipated FEC’s will have the potential of several million dollars in gross sales in the first year of operations.

With our strong management team and our aggressive marketing plan, we project a consistent and minimum annual growth of five percent.

1.1 Objectives

The company’s objective is to build quality, full-service FECs that will command the approval of the predominantly LDS community which it serves.

Our goals include:

• A 10% market share in our first year.
• An modest increase in our gross margins within the second year of operation
• An increase in our market share by a minimum of 10% for each of our first five years.

Currently, there ARE no quality FECs in Weber County, or the surrounding areas (for a radius of 50 miles).  The company believes that by entering the marketplace first and by establishing quality facilities, it will become, and remain, a leader in the FEC industry in the Northern Wasatch Front.

Our fundamental objective is to realize how we impact the community that we do business in, knowing that we will stand the test of time if the local residents approve and support our center.

1.2 Mission

I&B Investments sole purpose is to establish a profitable and well managed company while at the same time creating an atmosphere of fun and excitement for the entire family, with activities designed to please the local residents, as well as the substantial tourist base of the Northern Wasatch Front.

1.3 Keys to Success

Based on our research, our primary targeted market is parents and their children (ages 5-15 to 54).  With that in mind, we intend to design our facilities to address this primary market, while keeping in mind the secondary markets such a teens and young adults.

We believe that our main keys to success include:

• Providing popular and wide-ranging entertainment activities
• Ample and secure parking
• Indoor activities for year round entertainment
• The use of state-of-the-art technology
• Easy access
• Target high traffic areas for maximum public exposure
• Design facilities to curb overcrowding
• Seasoned management team

We believe that we can minimize certain risk factors by:

• Initial capitalization of the company to sustain operations through year one
• Low overhead through the use of multi-skilled employees and continual training
• Strong customer base through aggressive marketing
• Strong community ties and involvement
• Eliminate collection costs by establishing cash/credit/debit card only facilities

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

The company anticipates that its first FEC will be located in Weber County, Utah facing the Majestic Wasatch Front Mountains. The company’s FEC will be the most modern in the Northern Wasatch area.

Initially named the Wasatch Family Fun Center, the company anticipates that its facility will have a positive impact on the local environment and economy.

Mr. Bill Rameson, CEO of Palace Entertainment, the largest FEC chain in the world, has observed, “With most family entertainment centers having a 15 to 20 mile reach and in today’s climate, you’ve got to understand what you’re trying to accomplish. You’ve got to understand your market. You’ve got to understand construction. The attractions have to be both interactive and competitive.” 

I&B Investments proposes to choose its locations after thoughtful and detailed research and demographic profiling.

2.1 Company Ownership

• Managing Partner – Mark D. Bergman 

Limited Partners:

• Acting C.F.O.- Val R. Iverson
• Operations Manager & Public Relations – Senator Joseph L. Hull
• Retail Space Leasing Agent Gift Shop Manager.- Laura Strebel
• Director of Sales and Marketing – Roger Smout
• Manager of Treasury and General Accounting – Rod Schaffer
• Manager of Promotions & Customer Service – Darren Strebel

Consultants / Non-Partners (retained):

• General Entertainment Manager / Consultant – Harold Skripsky
• Redevelopment (RDA) Specialist – Randy Sant

2.2 Start-up Summary

For Phase 1 the Start-up table reflects the cost of the center, activities and 8.5 +/- acres.

All Construction cost are included in the gross loan, but not detailed in the “Start-up Cost table” because these costs happen before the projected pro forma begins.

In the Start-Up Funding table there are two forms/types of investors listed:

The Seed Investors/Partners that come under #1-11 , are considered the seed funding group and company management team.  Their investment is not secure and carries a greater risk of loss.  Therefore, the percentage of the company that this group receives for their investment equals a much greater company ownership than the secure partners do for their investment (these partners are also earning sweat equity shares for their involvement/efforts rather than wages during development). 

The Use of Funds table details many of the Start-up Expenses.

2.3 Company Locations and Facilities

The first proposed site / property has two different aspects to it:

• We purchase a 10 acre parcel on the site and construct our center.
• We incorporate a Government Redevelopment Agency (RDA).  Which can provide our company with a government grant (funds) that can help us purchase the entire 44.6 acres.  This involves more risk but offers higher profits because we will need to resell 20 acres +/- once they are developed.

Therefore, within this business plan we will present a primary look at both possibilities, including the basic business structure, the start-up cost, the company’s projected growth, the market, the local demographics, the economic impact, the industry trends, the construction costs, the development of the land, the oversight of operations during the development of the infrastructure and the companies future management and marketing team.

Our proposed site is the 44.6 +/- acres running along the west side of the Interstate, with three planned future (roads) accesses/easements.

The entire property is zoned commercial and the owner has stated that he supports our project and will carry a contract. Phase 1 would place our FEC just north of the other existing commercial establishments. 

The latest traffic figures report an average daily traffic count of 30,685 cars exiting and entering the interstate at this junction and the interstate (north and south bound) carries an average daily traffic count of 56,490 cars. Source: Utah Department of Transportation.

Our FEC’s will provide customers with a wholesome environment that provides amusement, entertainment, excitement, competition, year round activities, souvenirs and great food all while forming lasting memories at affordable prices.

Although there is currently no competition in the immediate area in which we plan to establish our FECs, we believe that because the FEC industry is expanding exponentially, sooner or later competition will encroach.

To that end, the company plans to become profitable and retain a solid leadership position in the marketplace by providing:

• Indoor facilities – Cold weather will close the outdoor competition.
• Year round play with a wide variety of activities – Our season never stops.
• Seasoned, successful management team .
• Contracting top FEC consultants – To counsel on key attraction layout and design.
• Working with USU Extension Program – Determining tourism impact.
• Working with Utah Department of Tourism – National and international exposure.
• Family-oriented – Partnership-operated center gives the company local insight.
• Aggressive marketing .
• Customer Incentive Program – Reward frequent visitors/customers.
• Easy access and exposure .

3.1 Service Description

The ability of I&B Investments to accomplish its goals and lead the local family entertainment industry, depends upon the expertise and social conscience of the management team. Our management team understands these facts and several members of our management team have been recognized in the past for their outstanding community service and involvement. 

Several local surveys have been reviewed and provide valuable information about a vast list of requirements that need to be met for an FEC to attract the local residents. We will strive to meet these desires and we will take future surveys with our customers to make sure that we are ahead of the curve. Source: USU Extension Program.  

The Story of Dave & Busters – Family Entertainment Centers “In 1982, Dave Corriveau and Buster Corley brought an idea to life. Create a place where adults can enjoy great food, terrific drinks and the latest interactive games – all in one place.  They discovered a winning formula. Over the past 18 years, Dave & Buster’s has grown from one location in Dallas, Texas, to a nationwide organization. And with the help of our creative and dedicated employees, we’re able to keep growing and providing our guests with a unique experience.” Source: Dave & Busters.

I&B Investments intends on building an FEC with a 15,000 to 20,000 square-foot main building located in the Northern Utah area and provide such activities and services as: go-carts, miniature golf, climbing walls, batting cages, skycoaster or tower swing, air hockey, foosball, paint ball, laser and phazer tag, skateboard arena, outdoor bumper boats, gaming & redemption center, chess/backgammon playing areas, souvenir/gift shop, ice cream, pizza, pretzels, drinks, private party rooms (birthday & corporate), massage therapy center and a coffee shop.

I&B Investments anticipates entering into an agreement with Harris Miniature Golf Company (HMGC) to construct the course at its facility. The mini-golf course landscaping will depict the Wasatch Mountains area. The environment is casual and the design will capture the romantic era of a visit to the Olde West. The casual ambiance will be enhanced with mellow beat music and the sound of rushing water created by the falls and streams on the golf course. The quality of play and excellent service will ensure a large loyal following of customers.

“It’s an icon of the American landscape. It gives people a sense of other worldliness. And it’s non-gender and non-age biased,” says Steven W. Rix, executive director of San Antonio, Texas-based Miniature Golf Association of the United States.

“Miniature golf’s relatively low start-up cost – compared with theme parks, for example – have made it one of the most lucrative entertainment businesses around.  Our latest figures show courses can return as much as 38 percent on an investment each year,” states Dave & Paul of the Professional Miniature Golf Association of Salt Lake City, Utah.

3.2 Future Services

In addition I&B Investments is already working on contingency plans for adding more facilities along the Wasatch Front.

To further increase revenues and public attraction, I&B Investments is working to establish several other entertainment (outdoor) activities that will be put in place using revenue-sharing programs, such as the Skycoaster.

Market Analysis Summary how to do a market analysis for your business plan.">

Research has indicated that the prime market for a FEC is in urban areas close to neighborhoods with large concentrations of upper- to middle-income bracket population.  Ease of access is important, but street frontage is not a crucial requirement. 

Mr. Randy White, president of White Hutchinson Leisure & Learning Group, one of the leading FEC project developers in the United States has observed, “Just as entertainment is becoming an essential component of shopping centers, entertainment is the backbone of today’s urban redevelopment. Often referred to as urban or location-based entertainment centers, these projects integrate entertainment with retail, dining and cultural facilities to create a resident and tourist destination.”

A seven to ten mile radius is considered the radial market area of a FEC.  However, depending on competition (or lack thereof) a market area can grow to a fifteen mile radius and with easy highway access to a radius of twenty miles from the FEC.

The U.S. Census Bureau, Census 2000, and the Weber County Economic Development provides us with the following demographic information about our area (15 mile radius).

• Average household size is 3.5 persons
• Average household adjusted gross income is $39,250

4.1 Market Segmentation

I&B Investments’ primary targeted market consists of three main groups. These categories are: 15 to 24 year old, 25 to 34 and 35 to 54 years old. To better understand the size and breakdown of the local population see the following table and chart.

4.2 Target Market Segment Strategy

A full-time public relations coordinator is a vital part of I & B INVESTMENTS’ management team.  The job will require this person to be responsible for assuring customer satisfaction, generating public awareness for the types of entertainment offered at our “FEC,” and attractively promoting the various activities to the public.

Even though, our customers can be considered all age groups, both sexes, all races, all income levels, local residents or tourist to the area.  The most important factor behind our success is simply, THAT A PERSON CAN ENJOY THEMSELVES , while participating in the activity they choose.

4.2.1 Market Needs

Upon reviewing the local demographics of businesses in the Weber & Davis County area, we discovered that our proposed service will be filling a void that has existed for years in the local entertainment market. 

Our primary targeted counties are Weber and Davis. These counties represent two of Utah’s top three counties with the highest personal income levels in Utah (Davis county being #1) which relates to more money available for entertainment.

1999 Average Household Adjusted Gross Income

4.2.2 Market Trends

Historically if a market becomes controlled by a corporate entity, services are cut, prices are raised and core business is driven away as a result of the companies indifference to local customers concerns.  To avoid this happening locally, I&B Investment’s desire is to create their niche in the Utah market before the national chains move in.

The Business Journal of Kansas City -1996.  “During the past five years, large chains like The Blue Eagle Golf Centers Inc., and The Golden Bear Centers, have been buying up various FECs attempting to control the market.”

Parks & Attractions – January 29, 2001, Amusement Business.com (newsletter). “Right now we have 20 locations.  They are all the typical FEC: batting cages, bumper boats, miniature golf, indoor arcades. There have been a lot of things tried and we’ve seen some things fail.  We’ve seen Disney come and go with its Disney Club, their birthday-party type concept, and Discovery Zone has come and gone.” Taken from an interview with Mr. Bill Rameson, a FEC Pioneer and CEO of Palace Entertainment, the largest FEC chain in the world.

Utah’s Amusement and Recreation Industry is projected to employ an increase of 33,080 employees by 2030.  This equals an average of 788 more employees per year being hired by Utah’s growing Amusement Industry.  Source: State of Utah Economic and Demographic Research Database.  

Page 11, of the 2001-2002 industry report complied by the International Association for the Leisure & Entertainment Industry, states that even after years of exponential growth, FECs are still a strong growing segment of the amusement industry.  In 1990, there were only about 250 centers and today the count is around 10,000 to 12,000 with 19% of the establishments earning $1,000,000 to $3,000,000 and 16% making over $3,000,000 annually.

For more great information about the amusement industry and the positive upward tread, there are two main industry magazines that provide current industry statistics.  They are Play Meter Magazine and Vending Times.  The 2001 census of the Industry, by Vending Times is the 54th in a series that dates back to the dawn of the modern era in vending.  It is based on a mailing to 12,000 operating entities that yielded 1,206 usable replies.

Fun Center Sector Remains Robust as Operators Pace Expansion Strategies – Vending Times,  January 2002.  “A complex but promising growth opportunity confronts the fun center market in 2002.  Family entertainment centers, location-based entertainment sites, arcades, and game rooms all stand to create larger customer bases and have a solid chance to cement greater customer loyalty if they invest wisely to create the kinds of experiences that players actually want to have.”

4.2.3 Market Growth

As the population ages the potential market size increases and with the type of entertainment offered at our facilities, we are confident that our customer base will continue to grow and remain stable for the foreseeable years to come.

The market for a modern FEC center in the Weber/Davis County area is superior to most, partly due to the tremendous population growth which has occurred during the past five years. With the overwhelming majority of the population living and working within 15 miles of our first selected site. Additionally, there is not an FEC of this type within 50 +/- miles.

Utah’s Resident Population

4.3 Service Business Analysis

We requested Dr. DeeVon Bailey, of Utah State University, Professor of Economics to study our area and industry, then report and publish his findings.  We requested Dr. DeeVon Bailey to publish his finding because, we wanted his non-bias review and we felt that informing the competition about his findings was a good thing.  Here is an exact copy of that report,

Preliminary Assessment of the Economic Multipliers for

Amusement Companies in Weber County, Utah State University

By DeeVon Bailey, Ph. D. Department of Economics Utah State University February 1, 2002

This document provides you information on the various economic multipliers you can use to assess the impact of your proposed business.  The multipliers I am giving you were generated based on information from Weber County during 1998 (this is the latest information we had). 

We were able to get information on two types of amusement companies – 1) Amusement and Recreation Services (ARS) and Membership Sports and Recreation Clubs (MSRC).  I suspect that the first category, ARS, more closely fits your situation than the second. 

The economic information and the economic multipliers were generated by IMPLAN, an internationally recognized input-output model that is widely used.  Dr. Donald L. Snyder generated the information for us.  The following table presents some of the base economic information for ARS and MSRC in Weber County in 1998:

Let me interpret this table for you.  In 1998, ARS had $17.111 million in total sales in Weber County and employed 830 people.  The employment number is a person count and not full-time equivalents.  You need to divide the employment number by perhaps “4” to get the full-time equivalents (jobs).  Total compensation is employee income plus proprietor income plus rental income plus interest income generated by the business type. 

So, in the case of ARS total compensation was $5.128 million of which $1.820 went to employees (wages and salaries) and $3.552 million went to owners (proprietors) as net profit.  Indirect business taxes are basically sales taxes generated by the business types according to Don Snyder.  So, ARS generated about $866,000 in sales taxes during in Weber County in 1998.  Total value added is basically total sales less what would be equivalent to the cost of goods sold. 

So, in 1998 ARS generated $17.111 million in sales of which $11.366 million could be attributed to the value added by labor, management, etc. by persons in Weber County.  This suggests that ARS made purchases of about $5.745 million (17.111 – 11.366) from sources outside of the county to be able to generate $17.111 million in sales.

Economic Multipliers for Weber County Amusement Industries

The following are some of the key economic multipliers you should use to judge the impact of your proposed business.

Type and Value of Multiplier

The interpretation on these would be as follows:  The output multiplier of 1.50 for ARS would indicate that for each $1 in sales for this industry that an additional $0.50 is generated in sales in the County.  For example, if your business generates $1 million in sales then that $1 and an additional $500,000 would be generated in sales for the County each year for a total of $1.5 million after the multiplier effect.

The indirect business taxes multiplier for ARS is 1.57.  This means that for every $1 in sales taxes generated by your business that an additional $0.57 in sales taxes will be generated in Weber County.  For example,  if your company generates $10,000 in sales taxes an additional $5,700 in sales taxes will be generated by other economic activity in Weber County as a result of the economic multiplier effect (57% * $10,000).

The total value added multiplier for ARS is 1.48.  This indicates that for each $1 in economic value generated by the business above the costs of inputs purchased from outside of the County would generate an additional $0.48 in value added for the County economy.  This roughly means that if gross profit for the company is $1 then gross profit in the entire county will increase by $1.48 million (this figure includes the $1 in gross profit for your business and the $480,000 that would be generated for other businesses in the County)

The employment multiplier for ARS is 1.17.  This suggests that for every person you employ in your business that another 0.17 jobs will be created in the county.  So, if you employ 50 people then, besides your 50 jobs, another 8.5 jobs will be created in the County (0.17 * 50).  Remember that these are jobs and not full-time equivalents since many of these people will be part timers.

4.3.1 Competition and Buying Patterns

The Amusement Industry is unique in that it has little inventory.  Yet, should the need arise there exists a large network of suppliers for everything in the facility.  All of these sources ship overnight which reduces the requirement for a large on-hand inventory.

“Being locally owned, you can design and operate your facility to be connected with the community and fine-tune to meet their needs.  You have to be part of the community to be successful.” – Economy Affects FEC Biz – October 01, 2001 Amusement Business.com.

I&B Investments is a business focusing on family entertainment where there will be sports and activities that all ages can participate in and enjoy as individuals or as a group.  It is where grandparents can take grandchildren of all ages (it makes a great date night or family outing).

The simplicity of the activities enables anyone to experience excitement without having to know how to play like a pro. Miniature golf and other related activities (that require minimum strength and athletic ability) are some of the highest-rated family participation sports in the United States. 

By far, the most significant factor to affect the FEC business in the forthcoming decade is the dramatic growth of the 25 to 44 year old segment of the population. This age group represents the prime segment of the population that enjoys playing in tournaments.  Our FEC will be high-tech, totally computerized centers.  Pro play will be offered in the facility year round, increasing the profits for the center.

Competition in the amusement industry in Weber County is considered mild at best and most venues are remotely located.  Our first choice of locations is superior and offers us an edge against future FECs or similar services.  We will create our niche in the market place by being the first FEC in the surrounding area, but to keep our competitive edge we know we have to choose the right location. 

Experts say, “If you require a big grand opening or spend a ton on advertising your center, then you are not in the right location.  The public just needs to be able to see your location, make it look fun and they will know where you are and when to come.”

4.3.2 Main Competitors

Page 7 of the 2001-2002 annual industry report, complied by the International Association for the Leisure & Entertainment Industry, points out that there are NO TRUE FEC’s registered in the Rocky Mountain area and our research confirms this. This provides a prime awaiting customer base and helps assure that our facilities will be in command. We will be entering the market place as the leading company for amusement and entertainment to the area.

The other local, single activity establishments will not have much of an impact on our potential customer base, especially in the winter months when most of the local amusement businesses are closed.

None the less our facility will be competing with other established recreation and amusement activities for the consumer’s dollars. These venues are: movie theaters, bowling centers, roller skating, sports venues, theme parks, golf courses, fitness centers, night clubs, ski resorts and etc. Yet, none of these amusement activities truly compete with our facilities, because at our proposed facility we will offer more entertainment options custom-fit to the community and tourist.

Locally there are only two miniature golf courses (both built in the 1980s) and about ten golf courses. Many items like upgrades, new equipment, new attractions, websites or even having a fax machine, have not been a priority to some of these establishments. In others words, because there isn’t much competition, the existing venues do not see any reason to make customer satisfaction a priority.

I&B Investments will be the first of its kind in the area to address our underserved market, understanding that price is not the public’s only buying criterion. We at I&B Investments believes that customers want to feel a holistic process of having fun and they expect prompt service. Combine that with a clean environment and properly working equipment and we are ensured that our customers will come back again and again.

Strategy and Implementation Summary

Our services will be positioned to provide our customers with a premium amusement and entertainment experience.

Thus our pricing strategy will be to charge a premium price as per industry standards.

The following subtopics will present our sales strategy, marketing strategy, pricing strategy, daily customer projections and promotion strategy. To see comparison FECs and their current pricing refer to financials topics for projections and pro forma comparisons.

I & B INVESTMENTS will also work toward establishing community involvement programs that will demonstrate how the business can contribute to a better quality of community life.  Such as: Community projects using the “FEC’s” facilities to help civic groups obtain their financial goals (by offering fund raising events).  Schools, churches, and other groups will be welcomed for tours of the facilities and will be shown how the facility can be used to help raise funds for their needs.

5.1 Competitive Edge

The high standards set by our company and our location are going to make it very difficult for competitors to enter and survive in the market area.

I&B Investments research shows that the opportunity exists to provide a high-quality service in a family-oriented environment, where we can offer competitive pricing to our customers and still make an outstanding profit in this demanding market.

The keys to our competitive edge There are several critical issues based on the lifestyles of the area for our business to be accepted and survive.

• Produce maximum profits, but still able to offer affordable entertainment
• Provide the best games/family sports
• Little or no educational curve
• Repeat customers/tournaments/enjoyment
• Allow space for other retail tenants (reduce overhead)
• Do not compete with our tenants for the same dollar
• Provide activities for a large range of age groups
• Unique in design with comfortable ambience
• Exciting work environment

5.2 Marketing Strategy

Our customers can come from all age groups, male and female, all races, every income level and can be local residents or tourists to the area.  That is why our marketing plan started at the construction phase; by keeping in mind, if it looks fun people will come.  Thus the main factor to our success is simply that a person can enjoy themselves at our center while participating in an activity they choose.

Our full-time public relations manager is a vital part of our management team, by assuring that customer satisfaction is provided and gathering information from the public about the types of entertainment most desired.  This can provide our company with the means to stay in touch with the community and ready to meet their desires. 

5.2.1 Pricing Strategy

To establish the following detailed chart, we referred to several factory-pricing recommendations and the local competition. 

The following details our pricing and the # of customers per month that we used for our cash flow projections.  These projected numbers are 35% +/- of daily operation capacity and being open for business 26 days a month, closed on Sundays.  It should also be noted, there maybe activities planned that are not included in our projections.

All business expenses are detailed in the financials topics.  All other direct cost were pre-calculated and added into the Sales Forecast table.

5.2.2 Promotion Strategy

I&B Investments’ first objective in promoting our center will be to capitalize on the power of the WORD OF MOUTH.

In every business it is a well-known fact that word-of-mouth advertising is any businesses’ best friend or worst enemy. Yet, this does not preclude the fact that announcements, placing advertisements in the local newspapers and our future planned website are not just as important in reaching new customers and will be employed as follows:

Advertising Getting our positioning message to the public, “family recreation,” where fun and customer service is paramount.

Utah’s State Tourist Dept Keeping them aware of our center and all current promotions.

Go-cart Track Signs Local businesses can buy sign footage and have their signs placed around the track like you would see around any race track.

Freeway & Site Signs Self explanatory.

Sales Brochure Informing the public of all the activities found and offered at the center.

Player Rewards Rewarding customers for spending money through establishing frequent player programs and sponsoring up to $50,000 a year towards prize money awarded through tournament playoff prizes.

Community Involvement The activities of the center will be promoted as a place to bring your group to participate in events and raise funds for “project name here.” These types of fund raising events can request that a portion of each players expenses be donated to their organization (a standard amount will be established).

5.3 Sales Strategy

I&B Investments intends on providing a venue in which the entire family can really enjoy their leisure time by participating in fun and competitive activities that require minimum strength and athletic ability.  Supported with great service and offered at competitive prices we have the winning combination.

At our facilities the value of entertainment experience that our customers receives would be considered high compared to per dollar spent (“Biggest bang for your buck” or “You get your moneys worth”), and by providing the best in the area, our management team expects to reach an even broader market than used for our cash flow projections.

Our sales strategy is set on the very basics of business, please our customers and they will return again and again.

5.3.1 Sales Forecast

Sales as per population (exclude tourist) Using our minimal targeted market population of 418,399 people, we will detail how easily we can reach our projected income goals.

• 10% of 418,399 people = 41,839 customers per year, each spending $81.26 per year, or $8.50 per visit and visiting 9.5 times a year.
• Or, using our projected average per person expenditures = $8.50 x 1,225 customers daily = $10,412 x 313 days a year = $3,259,112 per year.

This means that we can meet or exceed our projected income if approximately one out of three possible customers visits our center once a year and spends a minimum of $8.50 on that visit.

2006 shows increase in sales caused by the opening of Phase 2.

The following chart shows I&B Investments Projected Sales Forecast and the annual projections for the next five years. Monthly figures are detailed in the appendix. To see activities pricing break down & projected numbers used see topic 4.2.

5.4 Milestones

Set forth below are the main milestones in the schedule of proposed development. We have carefully reviewed the timelines for start-up and firmly believe that once we are completely funded we can construct and open our initial FEC within less than one year of breaking ground.

• Purchase of property for FEC site by October 2002
• Preliminary architectural drawings
• Secure construction loan
• Approval of final architectural drawing
• Obtain all required permits
• Site preparation
• Order long lead items (i.e. go-carts, boats, skycoaster, etc.)
• Construction of center (construction phases are three and five-month timelines)
• Develop operations and employee manual
• Hire personnel
• Prepare and finalize marketing campaign
• Train staff
• Order inventory
• Soft open (training period 30 to 45 days)
• Grand Opening/Mothers Day weekend 2003
• Construction on Phase 2 Starts in 2005.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Our company philosophy is based on mutual respect for all contributions made by our participating or limited partners, investors, consultants, and employees without regard to the position held in the company.  Those who work with I&B Investments will learn to enjoy and trust our partnership environment, because we all strive to create an environment that enables us to work smarter-not harder and suggestions are valued, appreciated and rewarded.

I&B Investments will also work toward establishing community involvement programs that will demonstrate how our business can contribute to a better quality of community life.  Projects such as using the FEC facilities to help civic groups obtain their financial goals (by offering fundraising events); working with schools, churches, and other groups on programs for mutual benefit.

6.1 Management Team

Mark D. Bergman, Managing Partner Mr. Bergman is a self starter and natural leader, he has been self employed in several different trades.  He is an accomplished carpenter, strip mining operation director, welder, college-trained auto mechanic, structural architectural consultant, computer operator, human resource officer, safety director, patented inventor, proven business manager and started his training under his Father who was an engineer and a successful entrepreneur. During Mr. Bergman’s career he has received numerous state and community commendations for his involvement in community improvement and youth development programs. He is also bilingual with Spanish as a second language.

Mr. Bergman has had a successful career in the construction industry, is trained in a wide range of executive level positions and has served in a number of capacities including project management, construction site OSHA safety director, manufacturing start-up, and national marketing and promotions. Mr. Bergman’s strongest personality trait is his natural leadership ability.

Responsibilities : Design and manage the construction phase and serve as the operations director.  Develop and implement the operation, safety, maintenance and training programs for the center.

Joseph L. Hull, Manager Operations (GM) & Public Relations Officer Mr. Hull has degrees in chemistry, german and a masters degree in education. He is bilingual with German as a second language. He is also highly skilled in the art of negotiations, public relations, oversight of complex budgets, business management and problem solving.  He was elected and served as a Utah State Representative for six years and as a Utah State Senator for eight years.  He has served on several Federal & State Legislative committees and task-forces.  He has been recognized and received awards from various Universities, School Districts, Highway Patrol Associations, the National Guard, State Parks Department, Utah’s Foreign Language Teacher of the Year, Utah’s Public Safety Department, Utah’s Legislative Award of Excellence, Friend Of Agriculture from Utah’s Farm Bureau and is on Utah’s Educations Honor Roll.

Responsibilities : Participate in the company’s strategic business plan; coordinate training and operation programs; act as opening (mornings to midday) operations director; customer service director and public relations consultant once the center is open.

Darren B. Strebel, Manager of Promotions and Media Mr. Strebel has served on the board of directors on housing associations and has over six years of experience with developing and operating his own businesses, which include performing the services of an investment consultant and financial planner.  His skills also encompass developing programs for company marketing, advertising, distribution and client fulfillment.  Mr. Strebel has over thirteen years experience of working for the IRS and US Postal Service, where he acquired skills that included accounting, auditing, labor negotiations, customer service and office management.

Responsibilities : Implement the direction of the marketing with day-to-day management responsibility towards designing of art and graphics work and promoting of the company’s FECs.

Rod  Schaffer, Treasurer/Comptroller Mr. Schaffer is a certified public accountant (CPA) and has a B.S. degree in accounting as well as a B.S. in Music Education. He has worked as an independent public accountant and taxation consultant for over ten years and has extensive experience with tax filings of all types as well as budgeting and financial matters. Mr. Schaffer has also provided various corporate services including the preparation of corporate bylaws for various structures including LLCs, DBAs and both S and C corporations.

Responsibilities :  Will serve as the company’s comptroller whose duties will include daily journal entries,  corporate bookkeeping duties, revenue review, statements reconciliation, monthly P/L schedules, accounts payable and other related matters; is the point-of-contact for external payroll service contractor and independent CPA services.

Laura Strebel, Retail Space Agent and Gift Shop Manager Ms. Strebel has owned and operated Laura Strebel Engraving & Gifts, a successful business of custom gifts and crafts, for over twenty years.  In addition, she holds a Utah State Real Estate Brokers License and has been an active real estate agent for 12 years. Ms. Strebel has also been a notary public for over two decades and was a founding member and past board member of the influential Ogden Anti-Graffiti Task Force.  She has worked with the local government on several youth outreach programs and she has sat on Utah State Legislative task forces that implemented new state laws.

Responsibilities : Seek, review and qualify tenants for leased spaces.  List and sell any property that becomes available caused by our development, manage and operate the gift and souvenir shop, assist in oversight of company’s daily accounting.

Senior Staff Consultants

Harold D. Skripsky, Entertainment and Activities Consultant Mr. Skripsky was the founding director and past president of International Association for the Leisure and Entertainment Industry (IALEI) and is the chairman of the board of Leisure and Entertainment Trade Show (LETS), a joint venture by three industry associations which own the Fun Expo.

Mr. Skripsky began his career with the McDonald Corporation, where he quickly rose to operations manager, overseeing 110 franchise operations.  He was one of the partners who developed and opened Enchanted Castle in 1982 (a single FEC that grew to earn over $5,000,000 gross income a year).  Originally developed as a 10,000 square foot theme-oriented restaurant and game room, Enchanted Castle was expanded to 40,000 square feet in 1989.  In 1997 he sold Enchanted Castle to Ogden Entertainment, and now serves as a consultant to their entertainment division.

Responsibilities :  Ongoing review of the company’s business plan and advise/consult on all aspects of entertainment activities, assist in building design, floor layout of activities, assist with training and explaining the general functions of our FEC.

Val R. Iverson, Financial Consultant/Advisor Mr. Iverson has degrees in distributive education and sales technology and is a licensed real estate broker.  He is highly skilled in business start-up, management, sales, marketing and fulfillment.  He is the vice president of All American Playground Equipment and a partner of American Trampoline, and thus is very experienced with sports and playground equipment manufacturing and marketing.  He is also highly skilled in subdivision-style construction.

Responsibilities :  Participate and actively consult in all phases of the company’s strategic plans. Coordinate the purchase of properties, oversee business management setup, review and consult over inventory control, review and pursue investment capital and profit oversight.

Roger Smout, Marketing and Sales Consultant Mr. Smout is currently employed as a midwestern district sales manager for I.B.S and was voted salesman of the year for 2001-2002.  He is bilingual with Korean as a second language.  He has a bachelors degree in technical sales and has completed several focus group courses on employee management, product presentation and placement, with direct customer service experience both in-house and out in the field.  Mr. Smout has extensive hands-on experience in advertising production, graphic design layout and multimedia publishing.

Responsibilities : Consult and advise as to the company’s marketing, sales and advertising.

Steven Eames, General Contractor and Construction Consultant Mr. Eames has been actively licensed by the State of Utah’s Contractor Licensing department for over twenty years.

Responsibilities : Be the acting general contractor for building permits, consult on construction schedule and the like.

Randy Sant, Government Redevelopment Consultant/Advisor Mr. Sant has overseen and organized almost every redevelopment agency that has been established in the state of Utah.  To discover more about Mr. Sant and his abilities in RDA funding please type his name into your Web browser and do a search.

Responsibilities : Consult and actively setup any redevelopment agency and contracts between the company and city government.

Other Executive Support Agencies : Legal services; Auditing services; Insurance company; Banking services; Architectural, planning and design services.

6.2 Organizational Structure

The company’s structure is as follows:

This group represents 41% of the company ownership, with the remaining percentage of the company’s ownership under the control of the managing partner, but is considered to be held in the company’s treasury and all taxes that are assessed against this percentage are paid from the general fund. 

All partners are considered to have equal voting rights as per ownership and if a vote is called, each partner is allotted one vote per percentage of ownership.  The managing partner is elected by votes and is to remain as such unless a vote is requested and the majority votes change.

The managing partner is responsible to oversee all operations and is required to inform and report to all other partners of progress.  By no means is the managing partner obligated to perform any requested function unless he is convinced that it is for the betterment of the company or if a majority of the partners request that there be a vote, or that the object in question is voted to be put before arbitration (as explained in the partnership agreement).

6.3 Personnel Plan

Customer service is paramount in our business and our business plan.  The management team will accomplish this goal by targeting employees who are willing to be trained and by providing encouragement and employee incentive programs.  I&B Investments will contract with an employee leasing program to help provide the full-time staff with such things as:

• Health care insurance
• Dental care insurance
• Life insurance
• Vacation time
• Up sell incentive programs
• Discount passes for staff family members
• 401k retirement plans

Our Personnel Plan reflects how we intend to utilize our peoples’ assets. Most of them will be cross trained and the management team of I&B Investments believes that an employee who is happy at work will enjoy working.  It is always easier to please customers with a staff that cares, a facility that is clean and equipment that is kept in proper working order.

Financial Plan investor-ready personnel plan .">

It is anticipated that the multi-million dollar loan that the company will seek to secure will cover the business start-up costs and provide funds for operating expenses for the first year.  Management projects that it will need to obtain additional  investment capital to fund the loan and long-term assets. 

The Highlights chart that accompanies the Executive Summary sets forth the company’s anticipated profitability analysis.  Management believes that even minimal revenues should be sufficient to offer investors an acceptable return on investment.

7.1 Important Assumptions

NOTES FOR PROJECTIONS All sales projections/assumptions are based on operating at 35% +/- of capacity. Refer to the Sales Forecast topic for demographic break down and average cost per person.

• The figure of $890,000 shown in the Start-up Funding table under Current Borrowing, is the start-up investment, amortized with a 19% interest rate and paid off in five years.
• Our long-term commercial loan is amortized at 10% interest over 20 years.
• All pricing has been set by industry standards and the local market.
• Revenues are strictly a projection based on gross possible players per venue and then using 35% +/- of that capacity for our base calculation.
• Contract services include: payroll, pest control, trash removal, cable TV.
• Employees needed and wages have been projected for full time and eight hour shifts.  All payroll will be done through a payroll company, therefore giving a flatter rate and making it easier to project.
• Weber County tax rates are:
• Real Estate tax $10.00 per $1,000 of assessed value.
• Personal Property tax base is .009% of cost of equipment.
• Business License is $50.00 for first 10,000 sq ft & $5.00 per every additional 1,000 sq. ft. of building space.
• The income tax rate is estimated before deductions and overhead assumptions are included.

7.2 Valuation

In the following Investment Analysis Table, one should note that the entire (gross loan + points) amount of our long-term liabilities ($4,542,500) is the figure we used to determine the Net Present Value (NPV) and the Internal Rate of Return (IRR) of our company’s projected values.

7.3 Key Financial Indicators

These benchmark indicators give I&B Investments a sense of relative comparison for five years of projections.

7.4 Break-even Analysis

Important notice concerning Break-even Analysis

The figures represented in this analysis are connected to the costs presented in the Start-up, Start-up Funding, and Use of Funds tables.

The following chart shows what we need to produce from sales per month to break-even (according to the assumptions).  That is less than 1/2 of our planned 2003 sales level and less than 1/3 +/- for the years beyond.  We strongly believe we can succeed and provide handsome returns for our owners/investors.

For the Break-even Analysis, we assume our per month fixed costs include most of management’s payroll, loan payments, investor repayments and an estimation of other basic expenses. 

Margins are harder to assume. Our overall average of $8.50 (goods/services sold to each person) is based on the local market average number of sales and with an average cost of 20% ($8.50 – $1.70 = $6.80 gross profit per each good/services sold). 

We believe that not only will we entertain a much higher number of customers monthly than required by this break-even chart, we believe that we are going to possibly double the amount projected in our cash flow charts in this business plan, because we are going to be the only facilities of its kind within a 50 mile radius. 

7.5 Projected Profit and Loss

Important notes regarding Depreciation & Payroll Burden

• The depreciation of assets was calculated separately from this Profit and Loss statement. Due to the fact of some accounting issues pertaining to our industry and this program. It appeared to be deducting our depreciation as hard cash expenses and not soft money (tax deduction). Therefore the cash tables did not appear to be reflecting a true statement of cash flow as per our industry (see further explanation below).
• Payroll Burden (overhead/taxes) has been excluded from the Profit and Loss table based on the fact that payroll cost and taxes were pre-calculated and included in the personnel plan table. The basic reason for us doing this is, we plan on using a payroll company. Thus all employee payroll fees, taxes, insurances and other payroll burdens are charged as a flat fee (our industry average fee is: wages + 15% +/- .5%).

As per depreciation figures, our preliminary assessment using a standard 200% declining balance on equipment and assets gives us a first year figure of $190,000 +/-. This figure is considered our income tax deductible base and will adjust each year depending on taxable items, gross income, actual values and depreciation of assets.

Upon reviewing the next table (Profit & Loss), one should note that the company is making a profit in the first month of operation. The yearly analysis is indicated in the table below. The monthly analyses can be found in the appendix.

7.6 Projected Cash Flow

The company’s estimated cash flow analysis is outlined in the following table, including the cost and increase in sales and profits made from Phase 2. I&B Investments low overhead will ensure positive cash balance.

7.7 Projected Balance Sheet

Estimated balance sheets for the years 2003-2008 including Phase 2 in the year 2006 are provided below.

7.8 Business Ratios

The company’s projected business ratios are provided in the table below.  The final column, Industry Profile, shows significant ratios for the Amusement and Entertainment Industry, as determined by the Standard Industry Classification (SIC) Index code 7999.

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• Family Entertainment Centre

5 Proven Sources of Funding for an Arcade Game Room Business

A family entertainment center or family fun center comes in different shapes and forms. Your dream of starting your own business comes with a lot of work, studies, analyses, and of course – costs. Let’s zero in on an arcade game business idea.

Opening an arcade is indeed profitable - in fact, the International Association of Amusement Parks and Attractions (IAAPA)’s 2020 Benchmark Series found that arcades and video games are the most common main activities offered by FECs. In the same study, it is also found that arcade games account for more than 40% of the floorplan and are commonly managed in-house by FEC owners and operators.

This being said, there is stiff competition out there. How do you make prospect investors notice you and your business idea in a sea of direct and indirect competitors?

What do you need to get your idea funded?

You’ll need…

• a comprehensive feasibility study
• a concrete FEC business plan

After accomplishing these two heavy-lifting tasks, you are well on your way to presenting your case to prospect investors – but the real work is in getting them to say YES.

1. Traditional funders

Banks loan money to qualified investment opportunities that will drive them profitable returns. However, most banks will want to see a level of financial commitment from you or your partners before showing any interest in offering you a loan. This is to ensure that you have your skin in the game from around 20% to 40% of the total funds stated in your business plan.

2. Venture capital firms and angel investors

These investors are usually looking for potential tangible value and for those that can be patented in the future, like a chain retail venture.

3. Personal network

For simpler business ideas like a single, family-owned location, you can try pitching your plan to your circle of influence. Budding entrepreneurs like you can start by asking family and friends to invest in the opportunity, which you will then use to leverage as seed funding to acquire the balance of your total funding from a bank or other sources.

4. Lease options

There are several companies that provide lease options for capital expenses to start your business. They usually offer a maximum of $25,000 to $40,000 depending on existing personal or existing business financial records, credit checks, and other payment histories.

5. Small Business Administration

The SBA provides a guarantor for approved lending institutions. An SBA-backed loan can be used as seed funding to get the interest of a traditional funder to help with the remaining balance in your total funding.

Good luck in finding funding for your business of fun!

>> Click on the link to check out our Guide " How to Start a Family Entertainment Center Business ":

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Related posts, what are good interview questions to ask when hiring a general manager.

If you are looking for how to hire a general manager for family entertainment center business, you must prepare a set of interview questions for your prospective candidates to assess if they are the right person for the job. This will also enable you to check if an applicant is a good fit for your company culture, your team, and your business. To help you ask the right questions that generate the answers and outcomes that you hope for, we talked to Embed's very own Kash Ahmad, Chief Management Consultant in Operations at NASA. Ahmad has over 25 years of extensive experience in the amusement and hospitality industry, including recruiting general managers for top family entertainment centers in the business. Choosing the right general manager for your FEC is crucial to ensure that your company culture has a steady footing: "A good leader can make all the difference. Different employees work differently depending on the manager. Taking the time to make the right selection for the manager you’re going to bring on board is essential. If you bring in the wrong person who doesn’t believe in your culture or plan, does not care about your employees, or doesn’t care about the business that much, it can really move your culture backward," emphasizes Ahmad.

• Jul 22, 2022 9:00:00 AM

Where Do We Hire a Good General Manager?

Talent can come from everywhere. However, finding a culturally good fit for your family entertainment center's general manager can be quite a challenge. Company culture and values carry great weight in choosing leaders such as GMs for your team. Settling for just anybody can discourage good employees, run guests out the door, and cripple the energy to go to work. This is one of the reasons why you have to take into consideration where you scout for this role. Before you can start, you have to be prepared with some of the key aspects of the job hunt, such as the general manager's role, responsibilities, and the required skills and characteristics. To help you search for the right place for your FEC's next leader, we talked to recruitment and hospitality veterans David Curtis, Senior Director of Talent at Dave & Buster’s, and Beth Standlee, CEO & Founder at TrainerTainment. Here's where you can pool prospects for your FEC's general manager:

What are the Important Skills & Qualities of a General Manager?

Looking for how to hire a general manager for your family entertainment center? There are specific skills, qualities, and characteristics that you need to be on the lookout for. Whether you have a mom-and-pop FEC or are already scaling into a chain, hiring a general manager is necessary and beneficial to keep your daily operations in check, your staff in their best professional shape for your guests, and your business in its most innovative and successful form yet. To help you on your talent acquisition journey for this vital role, we talked to David Curtis, Senior Director of Talent at Dave & Buster’s, Beth Standlee, CEO & Founder at TrainerTainment, and Embed's very own Kash Ahmad, Management Consultant in Operations at NASA. According to our industry experts, the following are the non-negotiables when it comes to hiring a general manager:

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How to start up an amusement arcade

Amusement arcades may be for all the family or adults-only and are quite heavily regulated to control problem gambling. Get the essentials for starting up and running your amusement arcade in our practical guide. 

Research your target market

Establish your customer profile, decide what services to offer, your machines, estimating machine takings, buy an existing business, estimating demand.

If you're planning to set up your arcade from scratch - rather than buying an established arcade that already has a good level of income from its existing customers - it's very important to find out whether there is enough demand in your area. People only have a certain amount of money to spend on leisure activities such as playing machines so it's essential to think about why people will come to your arcade. It might be that you think there is a demand that is currently not being met. For example, a newly developed tourist facility might be attracting lots of holidaymakers but there are as yet few other leisure businesses operating in the area.

It's important to give some thought to who your customers are likely to be. In a seaside type of location, there will likely be lots of families so you may choose to offer a range of low-prize gaming machines, redemption machines, kiddie rides and video games that can be enjoyed by all age groups. On the other hand, if you were planning to set up an adult gaming centre you would need to install high prize-paying machines that would appeal to adults who are regular machine players. If your arcade will offer gaming machines mostly or exclusively, it's also very important to check out the overall level of demand for arcade machine gambling. In recent years the higher stake, higher prize machines that betting shops and other gambling premises can offer (but not arcades) have become very popular, as has online gambling.

Have a good look at any existing arcades in your area to establish:

• their opening hours
• how busy they are at different times of the day
• the types of customers they are targeting
• the range and number of machines they have
• the appearance of the premises - is it modern and bright?
• any other services and attractions they offer

Check out future developments

The location of the arcade is very important and ideally there will be lots of passing trade (unless you're planning to add an arcade to an existing business such as a caravan site, in which case the majority of your customers will be on-site already). If you are planning to locate in a seaside area, try to find out the local council's plans for the future - sadly many British seaside resorts have become less popular than they were previously and the viability of your business will be affected by how successful your council is in attracting holidaymakers. Think about the local wet weather attractions that might bring visitors to your area even during poor weather conditions. Your council or local tourist information office may be able to give you visitor statistics for your area and there are regional tourist statistics for the whole of Great Britain available to download from the Visit Britain website.

Planning permission

One of the first things to do is to approach your local authority planning department to find out as much as possible about successfully obtaining consent to open and operate your arcade. The British Amusement Catering Trade Association (BACTA) may be able to give you advice on setting up a family entertainment centre or an adult gaming centre.

Research current trends, plus legal and tax issues

• Sector trends for amusement arcades
• Legal issues for amusement arcades
• VAT rules for amusement arcades

Your market

Your typical customer will depend to a considerable extent on the type of arcade you propose to operate and where it will be located.

If you are planning to open a family entertainment centre, depending on its location many of your customers will be holidaymakers and a large proportion of these will be families with children, as well as coach parties of day visitors to the area. You may find that your business is so seasonal that it is not even worthwhile remaining open during the winter months, especially on weekdays. On the other hand, you may have lots of regulars as well as holidaymakers so your business won't be as affected by seasonal factors. Family entertainment centres often provide a meeting place for young people and your arcade might prove popular with local teenagers, students and so on.

An adult gaming centre caters for adults only and offers a wide range of Category C and Category D machines as well as a limited number of Category B3/4 gaming machines and, generally, some video machines, although these have become much less popular because of the widespread availability of computer games.

Inland arcades may have different types of customers - for example, during the daytime many players are likely to be female while in the evenings players may consist mainly of young males. Many customers are regulars and demand is generally consistent all year round.

Give some thought to how you will keep your customers coming back, particularly in an adult gaming centre. Regular players soon become familiar with a machine and want something new so you may have to replace games frequently. You will probably find that machines will typically take most money in the first 8 to 12 weeks after they have been introduced. After that, takings start to dwindle. Some games never become very popular, while others remain popular for three or four years. Many arcades plan their machine buying around the government's review of stakes and prizes that takes place every three years. If the majority of your customers are tourists who will visit your arcade only once or twice during their holiday, you may need to replace your machines less frequently.

You must identify what your customers like and then monitor individual machines closely so that you replace them with something new when interest begins to fall off. In many cases, machines are replaced after three or six months.   Coinslot journal features a machine chart which shows the top ten machines in order of popularity.

Be aware that very many machine players try to obtain free plays, or to gain access to the machine's cash box, by various illicit means. Think carefully about how you will supervise players - when the arcade is crowded it may be difficult for you or your staff to see what players are up to.

Gaming machines

The type and range of machines you install will depend on who your customers will be and any restrictions attached to your licence or permit - for example, an adult gaming centre may focus on Category C and a limited number of Category B3/4 machines while a family entertainment centre might offer a wide range of traditional low prize Category D machines together with amusement-only machines. You may also decide to offer some skill with prizes (SWP) machines like quiz machines.

Other attractions

As well as gaming machines and machines such as pool tables, air hockey, kiddie rides and so on you might plan to offer your customers a range of refreshments. These might be simple snacks, ice cream, drinks and so on or full meals. Many family arcades offer special packages for children's birthday parties which include refreshments and a gift the price.

The right image

Your arcade must project the right image. Some centres have become rather run-down and shabby and as a result, do not attract as many customers as they might. A bright modern facade will help to bring people through your doors. You might consider providing your staff with uniforms so that they can easily be identified. This can also enhance the image of your business.

Current machine categories

Under current gambling laws in Great Britain, gaming machines fall into one of four categories, A, B, C and D and arcades can install machines as follows:

• adult gaming centres - an unspecified number of Category B3/B4 machines but which must not exceed 20% of the total number of gaming machines on the premises and as many Category C and D machines as they want. (Arcades that were in existence before 13 July 2011 can choose to offer a maximum of four Category B3/B4 machines - the previous limit - or 20% of the total gaming machines, whichever is the higher. They are entitled to this choice indefinitely. Arcades that gained their licence on or after 13 July 2011 but before 1 April 2014 could also make this choice, although since 1 April 2014, they're only entitled to 20% of the total number of gaming machines)
• licensed family entertainment centres - as many category C and D machines as they want, but the category C machines must be in an over-18 area
• unlicensed family entertainment centres - as many category D machines as they want

The maximum stakes and prizes for category B3, B4, C and D machines are:

• B3 - £2 stake, £500 prize
• B4 - £1 stake, £250 prize
• C - £1 stake, £100 prize
• D non-money prize (other than crane grab) - 30 pence stake, £8 prize
• D non-money prize (crane grab) - £1 stake, £50 prize
• D mixed prize of money and non-money (other than coin pusher) - 10 pence stake, £8 prize of which a maximum of £5 can be in cash
• D mixed prize of money and non-money (coin pusher/penny falls) - 20 pence stake, £20 prize of which a maximum of £10 can be in cash

The most recent regular review of stakes and prizes, published in 2018, recommended reducing the stake for Category B2 machines (casinos and betting shops only) from £100 to £2. This change took effect in April 2019. All other stakes and prizes remained the same after the review.

Old machine categories

Until 1 September 2007 when the Gambling Act 2005 came fully into effect, gaming machines were covered by the Gaming Act 1968. Three types of machines were allowed:

• jackpot machines - only allowed in casinos, bingo halls and clubs
• all-cash Amusement-with-Prizes (AWP) machines - allowed in adult environments like arcades and pubs. Children and young people under 18 not allowed to play these machines
• coin or token AWPs - allowed in family arcades, played by any age group

Arcades didn't necessarily have to replace these old legacy machines when the new legislation came into force. If a legacy machine meets certain technical standards then it can remain in operation.

Gaming machines in Northern Ireland

In Northern Ireland, the machine gaming regulatory regime is significantly different to the rest of the UK. Arcades can offer amusement with prizes (AWP) machines with a maximum stake of 30 pence and a maximum prize value of £8, or with a maximum stake of 30 pence and a maximum prize of £25. There are two types of amusement permits available - one that allows an arcade to offer both types of machines and one that allows an arcade to offer only the machines with the lower payout value. There is no restriction on the number of machines. Under-18s must be prevented from using higher-value prize machines.

Amusement machines

Amusement-only machines like pinball machines are not regulated by the Act. Skill with prizes (SWP) machines that have no gaming element and redemption machines where the prize given out is about the skill of the player are also not covered by the Act.

Other machines

You will probably also want to install a variety of other machines, particularly if you hope to attract families and children. These might include machines like jukeboxes, air hockey or kiddie rides. These are not covered by gaming legislation although some - like kiddie rides - will need to be inspected annually under a health and safety scheme like the ADIPS (Amusement Device Inspection Procedures Scheme).

BACTA requires members to abide by a Code of Practice - this gives clear guidance on where the different types of machines should be sited, who can access them and how the area should be supervised. They can also give you advice on the ADIPS which they administer. There's further guidance about the scheme on the BACTA website

You will already have given some thought to how many machines you will install in your arcade. Arcades are restricted to three types of gaming machines - Category D, Category C and Category B3/4. Unlicensed family entertainment centres are allowed unlimited numbers of Category D machines, licensed family entertainment centres are allowed unlimited numbers of Category D and Category C machines and licensed adult gaming centres are allowed unlimited numbers of Category D and Category C machines and a limited number of Category B3/4 machines. (A set maximum of four, or 20% of the total number of machines on the premises, depending on when the licence was granted.) Although the licensing authorities do not limit the number of machines you can operate (apart from Category B3/4 machines), you may find that the terms of your planning permission specify the number of machines you can have in your arcade. Of course, you will also be restricted by the size of your premises.

To work out your annual sales figure, the first step is to make an estimate of how much money each of your machines will take. This will be affected by:

• how busy you are, not only at different times of the year but also at different times of the day
• how popular the machine is. A newly introduced machine will attract many players, but takings will fall after 10 weeks once the initial appeal has worn off. Some of your machines may only appeal to a certain proportion of your customers
• the value of the stake
• the rate of play. A game that is over quickly allows more games to be played during any given period
• the rate of return is set. A typical amount of money (or the payout) returned to players over time is 70% although the rate may be set higher (for example 90%) to attract more players. (Remember that if you operate any legacy machines, their minimum payout must be 70%)
• the number of machines which are out of action at any one time. Machines can be handled very roughly by players and it would not be unusual for 10% of your machines to be out of action

It can be difficult to estimate how many players you will have and how much they will spend per session. It may be worthwhile visiting one or two existing arcades to get a feel for how busy they are throughout the day and how long individual customers spend playing machines.

If you are buying an existing arcade the annual accounts will give you an indication of each machine's level of takings. New machine suppliers may also be able to give you some guidance and may be able to advise you on the most profitable machines for your particular business type.

You might consider spending some time in arcades which you consider are similar to the business you propose to run. Note when are the busy times, how long players remain at each machine and whether some machines are much more popular than others.

It may be that to reduce your initial capital investment, you are intending to get some or all of your machines on a share basis. A 50% / 50% split of the net takings is usual, in which case you'll need to halve your estimates of machine takings. (Your net takings are the amount charged to play minus the amount paid out in winnings). Although the shared basis is more common in businesses like pubs that have just one or two gaming machines on their premises, you may find that it could work for your arcade business - at least in the early days.

Don't forget that you'll have to pay Machine Games Duty (MGD) on your net machine takings. Two rates of MGD apply to machines that can be sited in arcades, the standard rate of 20% and the lower rate of 5%. The lower rate applies to all Category D machines only and the standard rate applies to all other machines. (The higher rate of 25% from March 2015 only applies to Category B2 machines which arcades are not able to offer.)

You might decide to buy an existing amusement arcade rather than start your venture from scratch. Buying a going concern can mean that the products, customers, regular sales, staff, premises and equipment are already in place.

You might decide to buy an existing business rather than start your amusement arcade from scratch. Buying a going concern can mean that:

• you shouldn't have to apply for planning permission for the arcade and it may make it easier to obtain the necessary premises licence or permit
• mandatory gambling risk assessments have already been carried out

Other matters to consider include:

• will you have to spend money refurbishing or replacing assets? Bear in mind that if the arcade has regular customers they are likely to want to see new machines periodically so try to check how long the existing machines have been in place - many arcades plan their machine buying around the review of stakes and prizes that takes place every three years
• transferring/obtaining the necessary licences and permits (as required by gaming legislation)

But  buying a business  can be a hazardous, expensive process unless you have the right skills and experience on your team, including legal and financial know-how. Establish a genuine trading and financial position, so that the price you pay for the business is not too high.

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Amusement Park Business Plan Sample

Published Feb.26, 2021

Updated Apr.19, 2024

By: Jakub Babkins

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Table of Content

Amusement Park Business Plan for Starting Your Own Theme Park

Do you want to build an amusement park? Well, amusement park is a large facility that contain gardens, play areas, amusement rides, games and other entertainments. The amusement park business can be extremely profitable and enjoyable to run. If you possess the ability to manage the park activities and maintain the technical structure, you must not delay planning about opening it.

Like all other businesses, the first step would be to create a detailed business plan. Before launching your business, you’ll have to develop accurate amusement park marketing plan, personnel plan and financial plan.

In this guide on how to start a theme park business we’re providing business plan of Holiday Ventures. Through this, you can know the important details that must be included while making business plan for your startup.

Amusement Park Business Plan Summary

2.1 the business.

Holiday Ventures will be a registered and licensed family amusement park based in Charlotte. The business will provide amusement rides, slides, magic shows, themed events, games, picnic areas, and entertainment for people of all ages.

Under the supervision of experienced managers and with the collaboration of responsible employees, the business will provide people with unforgettable joyful experience.

2.2 Management of Amusement Park

Managing an amusement park requires is not so easy. You will need highly responsible personnel who have the required technical skills, and efficient supervisors who would adhere to your business values. To ensure a structured and organized management, you must first make a theme park business model.

To manage your finances, you should also analyze how much does it cost to run an amusement park in your business model. If you don’t have a clear idea of startup costs, you should explore some amusement park business plan examples like this one to get an analogous idea of your finances.

2.3 Customers of Theme Park

The customers of a theme park can be categorized in the following groups:

• Youngsters & Adults
• Senior Citizens

2.4 Business Target

The business target of Holiday Ventures is to establish a name in amusement park business domain. The startup aims to include more activities and entertainment opportunities by the end of first five years. Financially, the company’s profitability targets can be seen from the following graph.

Company Summary

3.1 company owner.

Holiday Ventures will be owned by Adam Redford. Adam completed his MBA from Harvard University and proceeded to work in notable institutes as senior manager. After serving as an operation manager in Herschend Family Entertainment for seven years, Adam has decided to launch his own business.

3.2 Why the amusement park business is being started

Adam always wanted to start his own business. Due to his inclination towards recreation and entertainment industry, he decided to build a theme park. He had several ideas to bring innovation in amusement parks. As without innovation it would be very difficult to earn fame in a field so saturated.

3.3 How the amusement park business will be started

Step1: Create amusement park business plan template

The first step is to explore how to create an amusement park. After detailed research, you would have to prepare an accurate business plan for your startup. Ideally, the business plan must contain accurate resources, expenses, management system, and financial projections of your business.

Step2: Risk Analysis

Before launching your startup, you must carry out a detailed marketing and risk analysis. Your critical risks problems and assumptions business plan amusement park must study

• Positive and negative risks involved in starting this business.
• Proper strategies to avoid, deflect, or resolve risks.

The risks may range from unexpected injuries, mechanical hazards, technical issues, financial ups and downs, and more.

Step3: Define the Brand/ Establish Physical Presence

After planning all the aspects of your business you should start establishing a physical presence. It is the time when you acquire licenses and registrations – while also hiring staff for running your business. Procuring the inventory and installation of rides, games, and other entertainment staff must also be started side-by side.

Step4: Web & Social Media Presence

Through using online tools, you can run cost-effective campaigns to let your target customers know about you. Moreover, establishing online presence can help you in managing large scale operations such as ticketing systems etc. in a much efficient way.

Step5: Promote and market

Lastly, you have to start executing your advertisement and sales strategy to gain more and more customers.

Services of Amusement Park

Amusement parks may contain many types of entertainment and services. Since it takes a lot of planning and management in organizing each activity, you must decide your offerings as early as possible. Before you make an amusement park business plan, you should decide the services you want to provide.

In this amusement park project report sample we’re listing the services of Holiday Ventures. So that you can get an idea of what type of entertainment is in demand these days.

Amusement Rides & Fun Game Challenges

At us our customers will find a huge variety of amusement rides and games. Our major offerings in amusement rides and family fun activities will include:

• Roller Coaster Ride
• Train Rides
• Pendulum Ride
• Frisbee Ride
• Pirate Ship Ride
• Drop Tower Ride
• Amusement Slides

Our fun game challenges will include:

• Skipping Stones
• Ball Cupping
• Bridge Ball
• Bridge the gap
• High Rollers
• Mud Skipping
• Ride the Wave
• Slippery Wall Climbing

Gardens & Picnic Services

For families who would want to arrange reunion and picnics, we’ll offer immersive and natural garden areas. We’ll also facilitate them by arranging peaceful and recreational outdoor space for them.

Themed Events, Shows & Nights

We’ll also organize themed shows, magic shows and musical nights. Through our website and social media accounts, we’ll keep our customers’ updated about the incoming activities.

High Quality Food

To provide our visitors with one-in-all recreation, we’ll offer high quality local food and some international cuisines.

Marketing Analysis of Amusement Parks Business

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

After having an in-depth knowledge of how to start amusement park you must start doing marketing analysis. Marketing analysis studies the current and forecasted market stats to analyze whether a business can succeed in a marketplace or not.

Moreover, this analysis explores the interest and expectations of potential customers. Knowing your customers will help you in predicting their buying trends and estimating monthly and yearly sales. Through a rough idea of expected, optimistic and pessimistic sales, you can define amusement park feasibility study pdf. Overall, the information will help you in setting pricing policies that can enable to earn profit while also drawing more and more people to your site.

In this business plan small amusement park we’re providing the marketing analysis done for Holiday Ventures. It is recommended to do marketing analysis according to your specific location, if you are starting this business. The stats will also be different in case you’re looking for indoor amusement park business plan.

5.1 Market Trends

Hundreds of amusement park businesses are running in the United States. However, only a few of them are well-known and profitable. According to IBISWorld, amusement parks all over the U.S. collectively holds a market size of $13 billion. The business is expected to grow and earn more annual revenue in the coming years. This growth and profitability is forecasted on the basis of newer trends that business owners are incorporating in their amusement parks.

5.2 Marketing Segmentation

Our potential customers are divided into the following groups:

5.2.1 Youngsters & Adults

Youngsters and adults living in our city will be our primary customers. Young people are enthusiastic to take thrill rides and participate in physical activities. Thus, they are expected to avail all of our services.

5.2.2 Teenagers

Secondly thrill-seeking teens will also be our target customers. As people of this age group are usually careless, we will ensure strict supervision by our guides and instructors. This will be done to ensure their safety and protection.

5.2.3 Senior Citizens

Senior citizens are not likely to take part in our amusement activities. However, we believe that they will avail our space for reunions and picnics. They are also expected to roam around in the facility to explore our beautiful gardens.

5.2.4 Tourists

Tourists who will be looking for thrilling and joyful break will also be our potential customers.

5.2.5 Children

Though we are not providing any entertainment specifically for kids. Still, we believe them to enjoy our simple rides and slides.

5.3 Business Target

• To earn a net profit margin of $32k per month by the end of the third year.
• To expand our offerings and also include water sports by the end of the first five years.
• To achieve an average rating above 4.75 within 6 months of our launch.
• To achieve a Net Promoter Score above 75% within a year of our launch.
• To maintain a Customer Satisfaction Score above 90% throughout our service years.

5.4 Product Pricing

Our prices are almost in the same range as that of our competitors. However, the prices of food items are a little higher due to the supreme quality we’re providing.

Marketing Strategy of Amusement Park Business

After you know everything about how to build an amusement park, you should start exploring ways to promote it. In this sales strategy, you can see the competitive aspects and advertisement plan of Holiday Ventures.

6.1 Competitive Analysis

Our first competitive advantage is that we are providing an all-in-one recreation. At a single place, our customers will be able to enjoy thrilling rides, arrange friends’ and family reunions, and enjoy high quality food and drinks.

Secondly, we’ll develop an overall schedule business plan for amusement park to update our customers about the upcoming themed events.

Lastly, we’ll make the best possible use of technology. Through our website, our customers will be able to book area and time for their reunions. And issue any guidelines or requirements regarding their picnic/ event.

6.2 Sales Strategy

• We’ll advertise us through Google Local ads Services, social media, and local newspapers.
• We’ll offer a 60% discount on our amusement rides and fun outdoor games for the first two months of the launch.
• We’ll keep track of our repeat customers through online transactions, to offer them exclusive benefits.
• After every $140 transaction, we’ll gift $30 to our customers. The gifted amount will be valid for one month.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

Since there are a lot of risks involved in running an amusement park, you’ll need highly responsible and efficient staff to help you manage it. In this free sample amusement park business plan, we’re listing the staff recruited by Holiday Ventures along with their expected salaries.

Business plan for investors

7.1 company staff.

• 1 Operation Manager
• 1 Sales Manager
• 5 Lifeguards and Instructors
• 8 Recreation Workers
• 1 Amusement Ride Engineer to assure technical assistance
• 2 Technicians to help maintain mechanical infrastructure
• 3 General Amusement Park Attendants
• 1 Web Developer to develop and maintain company’s sites
• 1 Sales Executive to execute the marketing business strategy
• 2 Parking Attendants
• 4 Cooks & Waiters

7.2 Average Salary of Employees

Financial plan.

Starting an amusement park requires a lot of investment. First, you’ll need to purchase or rent a large space for amusement rides and games. Second, the cost of amusement rides, their installation and maintenance are also high. Therefore, it is essential to make a detailed financial plan to realize accurate amusement park construction costs.

Your financial plan should state major strategies to balance your investment with the earned profits. Moreover, by analyzing break-even, profit and loss projections, balance sheets, and gross margins, your plan should figure out a financial trajectory to prevent you from running into loss.

To give you an idea of how to develop an accurate financial plan, we’re providing the financial plan of Holiday Ventures here.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

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The swot of an arcade game room (with examples).

Get a watermark-free, fully customizable SWOT analysis in our business plan for an arcade game room

We've drafted tons of business plans for arcade game rooms and, far too often, business owners neglect to dedicate time and thought to crafting a strategic vision for their new project.

It's mainly because they lack the right tools and frameworks. The SWOT analysis is one of them.

What is it? Should you make a SWOT for your arcade game room?

A SWOT analysis is a powerful tool for strategic planning, and it's incredibly useful for arcade game rooms. It stands for Strengths, Weaknesses, Opportunities, and Threats.

Originally developed for businesses to gain a comprehensive understanding of their position in the market, the SWOT analysis is particularly beneficial in the fast-paced and ever-changing entertainment industry.

If you're operating an arcade game room or planning to start one , a SWOT analysis can be invaluable. It helps you pinpoint what your arcade excels at (strengths), areas that need improvement (weaknesses), potential avenues for growth (opportunities), and external factors that could impact your business (threats).

For example, your arcade's strengths might be a great selection of games or a central location, while weaknesses could be outdated equipment or insufficient marketing. Opportunities could emerge from trends like virtual reality gaming, and threats might include new entertainment venues or technological advancements.

Conducting a SWOT analysis is common when starting a new arcade game room, implementing major changes, or addressing existing challenges. It offers a moment to step back and assess the entire landscape of your business.

By understanding these four key aspects, you can make strategic decisions, prioritize where to focus your efforts, and craft plans that leverage your strengths and tackle your weaknesses.

Embarking on a new arcade game room project? A SWOT analysis is not just helpful, it's crucial. It guides you in identifying what makes your arcade unique, areas where you might need more investment, and external factors to be aware of.

While this analysis doesn't ensure success, it greatly enhances your chances by offering clear insights and a strategic direction.

How do you write a SWOT analysis for your arcade game room?

Filling out a SWOT analysis for your arcade game room can be a useful exercise, especially when you're trying to forecast its strengths, weaknesses, opportunities, and threats in a dynamic market.

To gain insights, you might want to dive into market research and industry analyses. These can provide valuable information about gaming trends, customer preferences, and what competitors are doing.

Engaging with other arcade owners or gaming industry experts can also be enlightening. They can share experiences and insights that you won't find in any report.

Remember, a SWOT analysis isn't about predicting the future accurately, but about equipping yourself with a strategic mindset to tackle upcoming challenges and leverage opportunities.

Think about the unique aspects your arcade game room offers. Perhaps you have a diverse range of popular and classic games, or your location is central and easily accessible. You might also have a team with a strong background in gaming and entertainment, or you've created an immersive gaming environment that stands out from others.

These are internal factors that can give your arcade a competitive advantage.

Recognizing weaknesses requires honest introspection. Maybe you're dealing with budget constraints affecting your ability to purchase new games or maintain existing ones. Perhaps you have limited knowledge of the gaming industry, or there's fierce competition in your area. Another weakness could be relying too heavily on seasonal customers, leading to fluctuating revenues.

These are areas where you may need to develop strategic plans or seek additional expertise.

Opportunities

Opportunities are external factors that can work in your favor. For instance, if there's an increasing interest in retro gaming in your region, that's an opportunity for you. Collaborating with local businesses for events, or tapping into the growing esports phenomenon can open new avenues. If there's a lack of engaging entertainment options in your area, your arcade game room could fill that gap.

Threats are external factors that could pose challenges. This might include technological advancements that make home gaming more appealing, or changes in social trends where people prefer other forms of entertainment. Economic downturns can impact discretionary spending, affecting your revenue. Increased competition from new and innovative entertainment venues can also be a threat, as well as any potential regulatory changes affecting arcade operations.

Examples of Strengths, Weaknesses, Opportunities and Threats for the SWOT of an arcade game room

These strengths and opportunities can be leveraged to improve the profitability of your arcade game room .

More SWOT analysis examples for an arcade game room

If you're creating your own SWOT analysis, these examples should be useful. For more in-depth information, you can access and download our business plan for an arcade game room .

A SWOT Analysis for a Family-Friendly Arcade Game Room

A family-friendly arcade game room offers a unique entertainment experience that appeals to both children and adults. Its strengths include a wide variety of games, from classic arcade machines to the latest interactive games, providing fun for all age groups. The arcade's vibrant and colorful atmosphere creates a welcoming environment. Additionally, being situated in a family-oriented shopping center or near other family attractions increases its foot traffic.

One of the weaknesses might be the high maintenance and repair costs of gaming equipment. Furthermore, the arcade's appeal might be limited during school hours or on weekdays, leading to inconsistent patronage. Another potential weakness is the reliance on physical attendance, making it vulnerable to external factors like weather conditions or health concerns.

Hosting birthday parties and family events can provide a steady income stream. Collaborating with local schools for educational or recreational trips can increase weekday attendance. There's also an opportunity to expand into virtual reality gaming experiences, appealing to a tech-savvy younger demographic. Offering loyalty programs or discounts can encourage repeat visits.

The rise of home gaming consoles and online gaming platforms is a significant threat, as they offer similar experiences in the comfort of one's home. Economic downturns might lead to reduced spending on leisure activities. Moreover, negative reviews or incidents (like machine malfunctions) can impact the arcade's reputation.

A SWOT Analysis for a Retro-Themed Arcade Game Room

A retro-themed arcade game room taps into nostalgia, attracting both older gamers reminiscing about their childhood and younger generations curious about classic gaming. Its unique retro ambiance, complete with neon lights and vintage decor, sets it apart from modern entertainment venues. It often becomes a popular spot for social gatherings and themed parties.

The primary weakness might be the niche appeal, potentially limiting its audience to only those interested in retro gaming. Maintaining and sourcing vintage arcade machines can be costly and challenging. Additionally, the lack of modern amenities might not appeal to those accustomed to contemporary gaming experiences.

There's an opportunity to host retro gaming tournaments and events, attracting enthusiasts and increasing visibility. Collaborating with local businesses and communities for themed events or promotions can broaden its appeal. Expanding the game room's offerings to include modern games or VR experiences might attract a wider audience.

Technological advancements in gaming pose a threat, as newer games and platforms may overshadow the appeal of retro gaming. Economic fluctuations can impact discretionary spending on entertainment. Additionally, the reliance on vintage equipment poses a risk, as breakdowns can lead to temporary unavailability of popular games.

A SWOT Analysis for a High-Tech, Competitive Gaming Arcade

This type of arcade game room specializes in offering an immersive gaming experience with high-end equipment, including VR setups and advanced gaming consoles. It's a hub for competitive gamers and attracts a dedicated following. The venue often includes live-streaming capabilities, making it a popular spot for hosting gaming tournaments and events.

The high cost of state-of-the-art gaming technology can be a significant financial burden. Its appeal might be limited to a more niche, hardcore gaming audience, potentially excluding casual gamers or families. The complex nature of advanced games might also be intimidating for beginners.

Partnering with gaming companies for exclusive releases or beta testing can draw in enthusiasts. There's also potential in offering gaming workshops or tutorials, making the space more accessible to beginners. Diversifying by including a café or lounge area can enhance the overall experience and attract a broader audience.

Competition from online gaming platforms and home gaming setups is a major threat. Changes in gaming trends and technology can quickly render current equipment outdated. Economic downturns can reduce spending on luxury entertainment options like high-end gaming experiences.

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Malevich Park / Basis architectural bureau

• Curated by Paula Pintos
• Architects: Basis architectural bureau
• Year Completion year of this architecture project Year:  2021
• Project Team:  Ivan Okhapkin. Maria Repkina, Anna Anisimova, Anna Geraimovich, Konstantin Pastukhov, Tatyana Kozlova, Angelina Vasnetsova, Valeria Shevtsova
Monica Galstyan, Zakhar Smirnov, Nikita Tchikin, Alexandra Terentyeva
• City:  Odintsovo
• Country:  Russia

Text description provided by the architects. Aim: To develop a concept of a contemporary landscape park next to the Barvikha and Nemchinovka areas taking into account improvement standards for protected natural areas.

Solution: We started working on the park concept by studying the context and searching for the area's identity. We found out that this territory is closely related to the name of the famous Russian avant-garde artist Kazimir Malevich who after 1917 often visited the neighbouring village of Nemchinovka and was inspired by the local landscapes. There is even a legend about a “Malevich oak tree”, well-known to the researchers of his creative work. We offered to preserve the memory of this place, hence the idea to call the park after Malevich. This predetermined the image of the area referring to the tradition of Russian suprematism. 

The concept of the Basis bureau is based on recreating the close link between nature and art. It provides for using basic shapes, close to the main geometrical figures: a square, a circle, and a triangular as well as a reflecting surface of the objects (stainless steel accompanied by black colour). The composed austerity of the architecture favorably highlights the vitality and natural beauty of the area. 

The functional zones of the park were designed following the requests from the local population. For instance, there is a quite strong community of volleyball players in the area playing almost in any weather. We have saved their playing fields making them even more comfortable and update. The park will also have a new sports cluster with its football fields, tennis and badminton courts, pavilions, and stands. The park pavilions inspired by suprematism compositions will be equipped with cafes and art spaces. 

The park zones are arranged so as to preserve the maximum amount of woodland and the already existing landscape.

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Project location

Address: odintsovo, moscow oblast, russia.

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Out of the Centre

Savvino-storozhevsky monastery and museum.

Zvenigorod's most famous sight is the Savvino-Storozhevsky Monastery, which was founded in 1398 by the monk Savva from the Troitse-Sergieva Lavra, at the invitation and with the support of Prince Yury Dmitrievich of Zvenigorod. Savva was later canonised as St Sabbas (Savva) of Storozhev. The monastery late flourished under the reign of Tsar Alexis, who chose the monastery as his family church and often went on pilgrimage there and made lots of donations to it. Most of the monastery’s buildings date from this time. The monastery is heavily fortified with thick walls and six towers, the most impressive of which is the Krasny Tower which also serves as the eastern entrance. The monastery was closed in 1918 and only reopened in 1995. In 1998 Patriarch Alexius II took part in a service to return the relics of St Sabbas to the monastery. Today the monastery has the status of a stauropegic monastery, which is second in status to a lavra. In addition to being a working monastery, it also holds the Zvenigorod Historical, Architectural and Art Museum.

Belfry and Neighbouring Churches

Located near the main entrance is the monastery's belfry which is perhaps the calling card of the monastery due to its uniqueness. It was built in the 1650s and the St Sergius of Radonezh’s Church was opened on the middle tier in the mid-17th century, although it was originally dedicated to the Trinity. The belfry's 35-tonne Great Bladgovestny Bell fell in 1941 and was only restored and returned in 2003. Attached to the belfry is a large refectory and the Transfiguration Church, both of which were built on the orders of Tsar Alexis in the 1650s.  

To the left of the belfry is another, smaller, refectory which is attached to the Trinity Gate-Church, which was also constructed in the 1650s on the orders of Tsar Alexis who made it his own family church. The church is elaborately decorated with colourful trims and underneath the archway is a beautiful 19th century fresco.

Nativity of Virgin Mary Cathedral

The Nativity of Virgin Mary Cathedral is the oldest building in the monastery and among the oldest buildings in the Moscow Region. It was built between 1404 and 1405 during the lifetime of St Sabbas and using the funds of Prince Yury of Zvenigorod. The white-stone cathedral is a standard four-pillar design with a single golden dome. After the death of St Sabbas he was interred in the cathedral and a new altar dedicated to him was added.

Under the reign of Tsar Alexis the cathedral was decorated with frescoes by Stepan Ryazanets, some of which remain today. Tsar Alexis also presented the cathedral with a five-tier iconostasis, the top row of icons have been preserved.

Tsaritsa's Chambers

The Nativity of Virgin Mary Cathedral is located between the Tsaritsa's Chambers of the left and the Palace of Tsar Alexis on the right. The Tsaritsa's Chambers were built in the mid-17th century for the wife of Tsar Alexey - Tsaritsa Maria Ilinichna Miloskavskaya. The design of the building is influenced by the ancient Russian architectural style. Is prettier than the Tsar's chambers opposite, being red in colour with elaborately decorated window frames and entrance.

At present the Tsaritsa's Chambers houses the Zvenigorod Historical, Architectural and Art Museum. Among its displays is an accurate recreation of the interior of a noble lady's chambers including furniture, decorations and a decorated tiled oven, and an exhibition on the history of Zvenigorod and the monastery.

Palace of Tsar Alexis

The Palace of Tsar Alexis was built in the 1650s and is now one of the best surviving examples of non-religious architecture of that era. It was built especially for Tsar Alexis who often visited the monastery on religious pilgrimages. Its most striking feature is its pretty row of nine chimney spouts which resemble towers.

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