Key Learnings from the Article
1. Business Idea – Gaming Zone Business
The gaming industry started with the TV games.
- TV Games – Mario and Contra.
- Computer games – Pac-Man, Road Rash, Need for Speed, Shooting games, etc.
- Smartphone games – Candy Crush, Ludo, PubG, etc.
Gaming platforms for hard-core game lovers are Play Station, Xbox, Nintendo Wii, etc. because of their:
- Best performance
- Best graphic
- Better gaming control
The present worth of the ‘World Gaming Industry’ is $150 billion and it may cross $250 billion by 2025.
There are many countries wherein gaming is a full-fledged career option. The potential of the gaming industry is quite large, but in India, it is not properly explored.
2. Steps to Start a Gaming Zone Business
i. Licence: A licence is required to start a gaming zone business. It is acquired from the ‘Registration for Licensing and Controlling Places of Public Amusement’ after submitting the following documents:
- 4 photos
- NOC
- Rent receipt
ii. Infrastructure: It should include:
- A room divided into compartments
- 5 monitors/TV screens
- 5 consoles and controller
- 5-7 popular games
- 10 headphones
- 2 employees
- 5-7 tables
- 10-15 chairs/bean bags
- Canteen
- 2 Air Conditioners
iii. Capital expenditure (CAPEX): The capital expenditure includes the following:
| Capital Expenses (CAPEX) | Value (Rs.) |
| 5 New Gaming Consoles | 125000 |
| Cost of Original Games | 15000 |
| Cost of 5 Screens | 25000 |
| Cost of 10 Headphones | 10000 |
| Cost of 2 air conditioners | 50000 |
| Cost of Furniture | 20000 |
| Total | 245000 |
iv. Operational Expenditure (OPEX): The operational expenses include the following:
| Operational Expenditure (OPEX) | Value (Rs.) |
| 1 helper salary | 12,000 |
| Rent | 15,000 |
| Electricity bills | 20,000 |
| Marketing cost | 5,000 |
| Total | 52,000 |
v. Acquiring customers: The low-cost ideas to attract customers are:
a. Pamphlets: Print the pamphlet and distribute them in your locality, posh areas, and big colonies within your 10 kms radius.
b. Gaming competition: Announce a gaming competition e.g. colony 1 versus colony 2. This will spread the gaming business all over the colony. You can also get gifts sponsored by a big brand for the competition.
c. Online promotion: Do online promotion with Facebook ads when the business starts running well.
d. Host events: You can also host events. In this, customers book the space for the whole day like for birthday party or gaming competition. This increases your revenue.
vi. Costing: You can charge Rs. 50 to Rs. 150 per game. The charges can be fixed on the following basis:
- Rs. 50 per session with an average session of less than 15 minutes
- Rs. 100 per session with an average session of 30 minutes
- Rs. 150 for the average session of above 30 minutes
You will earn Rs. 2500 daily for 50 sessions per day at a rate of Rs. 50 per session.
Based on the above estimates, the monthly revenue will be Rs. 65,000.
The monthly footfall of customers will be 1300 with a daily footfall of 50 customers on 26 working days.
The monthly profit from beverages and snacks can be Rs. 6,000 to 7,000 if half out of the total people visiting you purchase them and you earn a profit of Rs. 10 per order.
vii. Quarterly revenue plan: The tables given below shows the revenue plan for the three months:
| Quarterly Plan | |||
| Month 1 | |||
| Month 1 Expense | (Rs.) | Month 1 Revenue | (Rs.) |
| Setup Cost | 245000 | 50 game sessions per day at Rs. 50 | 65000 |
| Rent | 15000 | Food profit per person @ 10 | 6500 |
| Employee Salary | 12000 | ||
| Marketing cost | 5000 | ||
| Electricity Cost | 12000 | ||
| Total Cost | 289000 | 71500 | |
| Month 2 | |||
| Month 2 Expense | Month 2 Revenue | ||
| Rent | 15000 | 80 game sessions per day at Rs. 50 | 104000 |
| Employee Salary | 12000 | Food profit per person @ 10 | 10400 |
| Marketing cost | 5000 | ||
| Electricity Cost | 15000 | ||
| Total | 47000 | 114400 | |
| Month 3 | |||
| Month 3 Expense | Month 3 Revenue | ||
| Rent | 15000 | 120 game sessions per day at Rs. 50 | 156000 |
| Employee Salary | 15000 | Food profit per person @ 10 | 15600 |
| Marketing cost | 5000 | ||
| Electricity Cost | 20000 | ||
| Total | 55000 | 171600 | |
| Total Expenses for 3 Months | 391000 | Total Revenue for 3 Months | 357500 |
3. Important Factors of Gaming Zone Business
i. Location: Good footfall is required for gaming zone business. The location should be convenient for your target customers. The business will be good in a crowded area like:
- Residential areas
- Near colleges and schools
ii. Games latest collection: You should have a good and latest collection of games that generate interest among people. New games not only help in attracting new customers but also provide additional options to loyal customers.
iii. Affordable costing: The price of the games should be as per the affordability of the customers. High prices may not bring customers to the business.
Massive Action Plan
- Before doing the investment in the business, watch the Bada Business video, ‘Hit or Flop.’
- Evaluate gaming zone business for your area.
Key Outcomes of the article
- Obtain a licence from the ‘Registration for Licensing and Controlling Places of Public Amusement’ to start a gaming zone business
- Do online promotion of your gaming zone business to attract customers
- Charge affordable price from customers to get more customers