I'm looking to startup a gaming center in Raleigh, NC and need some advice.  I'm a little skeptical as the last gaming went under just after 2 years of being opened (The Tek).  But GameFrog, which is in Raleigh, NC is doing farily well.  First of all, should I try to compete with GameFrog or are they to big for a new gaming center startup?  Secondly, besides the gaming PCs, what software would you recommend for account/time management?  I'm thinking about SmartLaunch, but are there any others out there that are better, etc?  Thirdly, does anyone know any good places on how to write a good business plan?  I'll be needing a loan to get this started and thus need a business plan.

 

Any other advice/tips you can give me would help me out a lot.

 

Thanks.

Hi There,

 

I am quite new myself and am in the process of getting my own gaming center off the ground here in Nebraska.  I will tell you though that many of the veterans here will tell you this:

You can find answers to most of your questions by getting an honorary membership to iGames.  Most of the center owners here are more than willing to help, but not in the public forums.

 Are you wondering if the cost of the membership and monthly dues are worth it?  I can answer that with a resounding YES!!  The question you have to ask yourself is how serious are you about doing this?  If the initial cost of an honorary membership is putting you off of the idea, you may have the best answer yet in that if that cost is too much for you...this may not be a good business for you to get into.

 Now enough of the doom and gloom.  As to business plan software, you can google it and come up with probably 10 or 20 or more options for software to help you out.  

I hope that has been at least a little helpful.  I am by no means an expert, but I can tell you the iGames membership has paid for itself in information maybe 10 fold in the month or so I have been a member.

 Good luck to you in your venture!!  

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Coming To Nebraska in 2009

I am planning on buying a membership next week sometime when I get paid.  I do hope it's worth it =)

I'll tell you what...you sign up for a membership and we will stay in touch so we can help eachother out okay?

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Coming To Nebraska in 2009

In the 6.5 years I have run my center I have never heard anyone say that the cost of membership in iGames was not worth it for a new center.  Even if you decide this is not the business for you, this is the cheapest way for you to make that decision based on information.

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LanLizards: Mishawaka, IN
Give your opinion on
RootJack: Pirate Energy Drink

I'm sure you know the new people who all think it's not worth it.  I WILL be getting the membership though and reading through everything.

People are generally pretty vocal when they don't like something.

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LanLizards: Mishawaka, IN
Give your opinion on
RootJack: Pirate Energy Drink

How do I upgrade my account to Honorary?

This is the same person, is there anyway to merge these accounts?

Everytime I login now I get taken to FatalGaming's profile and I can't access the other forums no more.  Help me please.  My name FGCafe is the one I paid for since my email was already used for FatalGaming.

I only joined yesterday and I have already received 12 months worth of information - and I am not just saying that.  In the past 24 hours, I have joined iGames, read hundreds of posts (all of which filled with amazing information, posted my gaming center, advertised a tournament, joined into two programs, volunteered to join/help committees and setting up a few teams to join the HALO3 2v2 Game Night...

I am a console only center - so I wont be of much help with advice regarding other software but I did test Smart Launch and I did think it offer alot of value.  Maybe if that larger center is full of PC gamers, maybe offer a console only center - to capture a totally different crowd.  I have my center open only 6 months, so I am in no way an expert - but I can say that the PC LAN center about 10 miles away from me just went out of business and we are doing very well and growing more and more everyday.

As for a Business Plan - here is where I can offer you ALOT of help.  I live in PA, and joined the Small Business Development Center at Lehigh University.  If you dont know anything about PA or Lehigh University, the college is ranked only a few points lower than Yale and Harvard (its not Ivy League but real close).  Anyway, I submitted my business plan to them - it was about 20 pages.  I got a call from the President of the SBDC and he explained to me that he has been doing this job, reviewing business plans for over 27 years and continued to say that my business plan was one of the best he had ever read...which really made me feel great.  A business plan can not be just "good" - it HAS to be great.  I have revised my business plan 7 times since I opened in March and will continue to do so as I become more educated over the coming years.

Here are the main sections every business plan should have:

• Executive Summary
• Give a high level explanation about your business (but providing clear, concise details)
• Explain Ownership & Management details, how you will form the company (LLC, S-Corp, etc)
• Describe Marketing Opportunities, Industry studies, Analyst's projections (about the industry - not about your business)
• Describe YOUR Marketing Strategy about the business (not the industry)
• List a summary of annual and monthly expenses (try to aim higher rather than "look good" here)  Incorrect estimates here - hurt your bottom line later
•  General Company Description
• What are you?  Who are you?  What do you do?  Why are you special?  What is the need or demand for you?
• Mission Statement - what you believe you will be and/or become to your customers, to the community and/or to the industry
• Business Philosophy - WHY you do what you do and WHY you do it well
• Services Provided - list a detailed list of everything you will provide to your customers
• Games You Offer - detailed list of a large sample of the games you will offer (adding the games rating never hurts)
• Store Layout - What you will look and "feel" like - why you look and "feel" different than other gaming centers
• Products and Services - not a list but rather a written explanation of HOW you will offer the list provided above
•  Marketing Plan
• Market Research (focus groups, interviews, polls, demographics, etc etc)  Proove why your business will succeed in your area?  (VERY IMPORTANT!!!)
• Economics - how strong is the gaming industry - why should you be entering the industry (offer facts - do the research)
• Customers - explain who you think your customers will be (age ranges, household income, blue or white collar, males and/or females, etc)
• Competition - who REALLY is your competition (other centers, WalMart?, local arcades?, other kid focused entertainment centers, etc)
• Niche - are you a niche business?  If so, explain why and how you "stand out in a crowd".
• Pricing - provide as much detail as possible - especially if your giving this plan to a bank - show them that your center will earn a mint
• Proposed Location - what type of space do you want / need?  How big?  Special needs?  Have you estimated for improvements?
• Sales Forecast - you can go either way 1) Inflate the numbers to impress the bank or 2) Go low to keep your budget on track...(its up to you)
•  Operational Plan
• Production - how will you order product, replacement parts, games, chairs, tables??  How will you bring on new distributors (if needed)
• Legal - Explain what laws you have in your area, business licenses or permits needed from the state or town or both
• Staffing - Is it just you, or are you hiring?  If just you, for how long...if hiring, when and how many?
• Hours of Operation - open when?  close when?  special events that alter these hours.
• Startup Expenses and Capitalization
• Go down the line and list EVERY single cost you expect to incur.
• Big ones to list - PC's and/or consoles, TVs, games, site build out (if necessary), POS system, furniture, Grand Opening Advertising
• Ones you may not think of - Switches, router, cables, phone(s), microwave, ongoing advertisement, signage (inside and outside), electrical outlets
• Risks
• Be humble - how could you fail?  what obstacles do you have?  Is retail space readily available?  Are your demographics an obstacle?

Well there you have it.  You now have a pretty solid template for creating a very professional, believable Business Plan.  If you have any questions, please dont hesitate to ask.

Thanks, 

 

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Mark
Cyber Dome
Easton, PA
www.cyberdome.net

Thanks for that base outline.  The business plan was the thing I was fearing most, but now that I've seen that, it seems like I can reach it.

BTW, What is a POS system?

POS=Point of Sale. It's your system (cash register, software on computer, whatever) for selling snacks, drinks, etc., as well as the place where you take money for time.

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"if it ain't fun, why do it?"

Reggie
LANslide Computer Center
Clinton, MD. www.LANslide.net

Cyberdome, if I may ask, how did you acquire funding?

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Get in the Zone!

I was in the IT industry for over 12 years as a Director - making a very nice salary, which enabled me to save alot to pay for the "core" expenses.  Also, my parents were very generous with helping me "make ends meet".

If I may offer a few suggestions:

1. Use equity in your home to fund whatever you can.  Its a tax right off and can build your credit if paid ontime.
2. Look for locations in towns that are "rebuilding".  There are so many towns receiving government funding to have new sidewalks, new trees, new facing on buildings, etc.  Among these dollars are grant money for starting new businesses.  The town I am opening my next Cyber Dome / Dance club is paying me $20,000 AND offering me $100,000 loan for 3% over 10 years...how can you turn that money down??  These towns are BEGGING for new businesses - especially if they focus on children.
3. Obtaining a bank loan for a "new" business is nearly impossible.  They want everything INCLUDING your first born, offer horrible rates, and terms that do not benefit you.

I hope this helps.

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Mark
Cyber Dome
Easton, PA
www.cyberdome.net