How to Open an Arcade Business

by LaoA; Updated September 26, 2017
Arcade games at carnival

Opening an arcade business can be a fun and exciting way to earn profits while appealing to the interests of pre-teens and young adults alike. Since you will need to come up with the money to finance the video machines, coin dispensers, and the actual location to house your arcade, you will need to have access to cash to make your arcade business possible. However, once your arcade business is open to the public, you can create a place where people can come to have fun on the weekends, before a movie, after a date, or any time that they desire to have a time of entertainment.

Step 1

Find a place for your arcade where people who enjoy playing video games regularly go. Picking a mall where teens frequently shop is a good choice, or you can open an arcade business close to a movie theater so your customers can come to your arcade prior to and after the movie. If either of these choices is not available, make sure to choose a place that sees a good amount of people on a daily basis.

Step 2

Choose games that are in demand by going to other arcades in the area or conducting a study of local high school students. Buy the arcade games via the Internet from an online game supplier such as www.vintagearcade.net. If you attend a local house of worship, ask the pastor if you can speak to the high school students at the church you attend to ask what games are popular. Otherwise you can ask your own kids, children of family members, or the children of your friends.

Step 3

Obtain financing for your arcade business. You need to purchase arcade games, a structure big enough to hold the games you buy, and machines to make change for your customers. According to Startupinformant.com, costs to open an arcade business can reach as high as $50,000, depending upon how many games are purchased. Consider getting a home equity line of credit, using money from a credit card, asking a family member for a loan, or using funds you have saved for the purpose of opening an arcade business.

Step 4

Market your arcade business. Focus on getting teenagers to your arcade. Post flyers near schools, in stores close to your location, and at places that teenagers frequent such as music stores. Keep in mind that most young adults travel in groups, so you should prepare to handle large groups by having your arcade staffed adequately.

Warnings

  • Be sure to contact your state department of business in order to ensure that you do not need any type of license or permits to own and operate an arcade in your particular state. Consult with a qualified attorney and CPA to find out what type of insurance coverage would be required before you open your arcade for business.

Photo Credits

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