Virtual Reality (VR) is becoming the next big technological step for the next decade. Companies are implementing VR as part of their training and marketing efforts, along with video game companies that are improving their VR experiences each day. For this reasons, people everywhere are willing to experience VR, therefore, opening a VRcade business is a great idea for entrepreneurs these days. The business plan presents all the financial information and marketing research for the industry, as well as the necessary details to start a successful VRcade business.
VRcade Business Plan
VRcade Articles
Business Model
A VRcade business consists of an entertainment center for people to experience virtual reality through different video games. The high current costs of owning a VR home system makes it almost impossible for regular people to access such technology. Moreover, there is a shortage of open places where people can experience it. So, the business will aim to fulfill this need by renting a facility that offers VR platforms where people can have access to the technology by paying a charge for its usage. The business plan will guide you to make the space engaging and comfortable by using different platforms to provide your customers a variety of VR experiences. A VRcade is perfect for birthday parties, company’s team-building activities, date nights and more.
Business Summary
Market Positioning
The VRcade business plan describes the way your VRcade business will position itself in the market. Right now there are not many places out there for consumers to experience VR, so there are many chances that you will be the first one to open one in your town. You can position yourself as an interesting and attractive entertainment option by offering subscription plans and discounts during the first months.
Operations Plan
Opening a VRcade entertainment center is a lot of work. Fortunately, this business plan can ease you into the process. In this section you will find a model to help you operate your own VRcade business. This involves purchasing VR equipment, software and games, establishing scheduled maintenance for the machines, hiring staff, setting prices and in some cases, developing side-line services such as a diner.
Marketing Plan
When visiting a VRcade, consumers want to be amazed and you want your clients to keep coming back because of the amazing experience they had. It is also usually a social activity that friends and families do together. In this section, the business plan will describe several strategies to choose team-based games, for example, as an excellent way to get your audience attention and interest. Your aim is to deliver the right content right audience.
Market Segmentation
As Virtual Reality is a new technology that not everybody has experienced, an engaging VRcade should have something for everyone. The business plan offers information to make sure you are covering all your potential clients, from games and booths designed for mature gamers, to those appropriate for family and friends who just want to have some fun.
Promotional Strategies
In this section we will outline many different strategies to attract new customers. For instance, social media presence is a must, as your VRcade business is a visual one. Posting live Instagram histories with people playing and enjoying or a snapchat or periscope post with a team duel will allow you to create awareness and attraction towards your service.
Financial Projections
A VRcade is an expensive business to start. Nevertheless, forecasting its finances will not be a difficult task and the business plan will help you do this. By identifying the main revenue sources and expenses you can make sure the business is a profitable and sustainable one. To give you an idea, the first IMAX VR opened in LA produces around $15,000 in weekly revenue.
Revenue Assumptions
The main source of revenues for a VRcade entertainment center comes from fees charged to customers who want to live the experience of VR in your facility. But in this section there will be other sources of income explained, like leasing the place for tournaments and companies who want to promote their products, leasing space for a diner or even subscription fees for recurring clients that allows them to access certain VIP features.
Projecting Expenses
This section offers a complete description of all the major expenses for this kind of business such as maintenance, the purchase of new games and equipment, staff benefits, rent and electricity, among others. It also includes a guide on how to keep these expenses in line in order to maintain the profitability of the business.
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