Arcade Business Plan Template for Investors
- Arcade Business Plan Template for Investors
- Executive Summary
- Why an Arcade Business Now?
- Business Overview
- How to Start an Arcade Game Business: Key Steps
- Market Analysis
- Target Customers and Pricing Strategy
- Products & Services
- Operations Plan
- Equipment Strategy: Buy vs Lease
- Equipment Cost & Startup Budget Ranges
- Revenue Streams
- Projected Financials & Key Metrics
- Marketing & Customer Acquisition
- Venue Selection Checklist
- Staffing & Training
- Risk Assessment & Mitigation
- Exit Strategy for Investors
- Supplier & Partnership Strategy
- Performance Benchmarks
- Appendix: Sample Investor Deck Items
- Buy vs Lease Comparison
- About Guangzhou Dinibao Animation Technology Co., Ltd.
- Checklist for Investor Pitch
- FAQ
- Q: How much capital do I need to start an arcade?
- Q: What are the fastest-selling machine categories?
- Q: Is it better to buy machines from domestic or international suppliers?
- Q: How long before I can expect a return on investment?
- Q: What KPIs should investors track?
Arcade Business Plan Template for Investors
Executive Summary
This investor-focused arcade business plan template outlines how to start an arcade game business with clear objectives, market rationale, and realistic financial expectations. It highlights value propositions, target customers, competitive advantages, and the capital required. Use this as a framework to create a concise 1–2 page executive summary for investor meetings.
Why an Arcade Business Now?
Arcade and family entertainment centers remain popular in mixed-use developments, malls, tourist areas, and as standalone destinations. With growing demand for social, out-of-home entertainment and multi-generational play experiences, investors can capture steady foot traffic and diversified revenue streams—especially when combining redemption games, VR, FEC attractions, and food & beverage.
Business Overview
Provide a short description of your concept (retro arcade, family entertainment center, game bar, or boutique VR arcade), legal structure, location plan, hours, and the customer experience. If applicable, mention Guangzhou Dinibao Animation Technology Co., Ltd. as a trusted equipment supplier: Dinibao has 18 years of manufacturing and exporting experience, serves 10,000+ game centers in 180+ countries, and offers one-stop solutions from market research to operation support.
How to Start an Arcade Game Business: Key Steps
Step-by-step actions investors expect: select concept and location, finalize floor plan, procure machines (buy vs lease), set service & staffing, implement POS and cashless systems, create marketing launch plan, and establish KPI reporting (footfall, ARPU, ticket per visit). This section sets the operational milestones and timeline (typically 3–6 months from lease signing to grand opening).
Market Analysis
Analyze local demand, competitive landscape, foot traffic sources (malls, cinemas, schools, tourism), and demographic targets (families with kids, teens, young adults). Include direct competitors (other arcades, FECs) and indirect ones (IMAX, bowling, escape rooms). Real-world market validation—mystery shop results, local retail leasing rates, and mall tenant mix—helps quantify revenue assumptions.
Target Customers and Pricing Strategy
Define primary audiences (families, birthday parties, tourists, gamers) and price points: pay-per-play, time-based entry, party packages, and membership/subscription options. Many arcades use layered pricing: free entry + pay-to-play, plus High Quality experiences (VR, motion rides) that command higher price-per-play.
Products & Services
List the machines, attractions, and ancillary services you’ll offer. Typical mix for a successful mid-size arcade: redemption games (30–40%), ticket-prize center (10–20%), skill-based games (20–30%), VR/simulators (5–15%), and F&B (café/snack bar) to increase dwell time and ARPU. Partnering with an experienced manufacturer like Guangzhou Dinibao ensures cost-effective machines and after-sales service.
Operations Plan
Outline staffing (managers, technicians, attendants), hours of operation, maintenance schedule, parts inventory, and security. Include daily cash handling, ticket reconciliation, shift rosters, and an incident reporting system. A reliable maintenance contract reduces downtime—critical for investor confidence.
Equipment Strategy: Buy vs Lease
Decide whether to purchase machines outright or lease. Purchasing yields higher margins long-term but requires larger upfront capital. Leasing preserves cash and allows faster upgrades. Work with established suppliers who provide setup, training, and warranties.
Equipment Cost & Startup Budget Ranges
Provide transparent budget ranges to set investor expectations. Below is a typical startup cost breakdown for different scales. Numbers are industry-typical ranges to guide planning; adjust to local costs.
| Item | Small Arcade (50–100 sqm) | Mid-size Arcade (150–400 sqm) | Large FEC (500+ sqm) |
|---|---|---|---|
| Leasehold Improvement & Fit-out | $10,000–$40,000 | $40,000–$150,000 | $150,000–$600,000+ |
| Equipment & Machines | $20,000–$60,000 | $60,000–$250,000 | $250,000–$1,000,000+ |
| POS, Cashless System & IT | $3,000–$10,000 | $10,000–$30,000 | $30,000–$100,000 |
| Working Capital (3–6 months) | $10,000–$30,000 | $30,000–$100,000 | $100,000–$400,000 |
| Marketing & Launch | $2,000–$10,000 | $10,000–$30,000 | $30,000–$150,000 |
| Estimated Total | $45,000–$150,000 | $150,000–$560,000 | $560,000–$2,250,000+ |
Revenue Streams
Common revenue sources: pay-per-play, time-based entries, party bookings, prize sales, F&B, merchandise, corporate events, and location-based advertising. Diversifying reduces seasonality risk and stabilizes cash flow.
Projected Financials & Key Metrics
Investors will expect a 3–5 year pro forma with revenue, COGS, operating expenses, EBITDA, and break-even analysis. Key KPIs: monthly visitors, ARPU (average revenue per user), tickets redeemed per visit, maintenance cost per machine, and occupancy for party bookings. A reasonable payback range for arcades is often 2–5 years depending on location and scale.
Marketing & Customer Acquisition
Include a multi-channel marketing plan: local SEO, Google Business Profile, social media ads, influencer partnerships, mall promotions, school outreach, birthday packages, and loyalty programs. Track customer acquisition cost (CAC) and lifetime value (LTV) to optimize spend. Grand opening events and partnerships with nearby tenants drive early footfall.
Venue Selection Checklist
Choose locations with strong foot traffic, visibility, appropriate ceiling height for larger attractions, electrical capacity, and affordable rent per square meter. Analyze co-tenants, parking availability, and local regulations related to arcade machines and prize redemption.
Staffing & Training
Investors value trained staff and low turnover. Include training programs for customer service, machine troubleshooting, safety, and cashless system operations. Consider cross-training employees for F&B and party hosting to improve labor efficiency.
Risk Assessment & Mitigation
Identify major risks: poor location selection, equipment downtime, regulatory changes, competition, and seasonal demand. Mitigation strategies: trial pop-ups, diversified revenue, maintenance contracts, flexible lease terms, and building a cash reserve.
Exit Strategy for Investors
Provide realistic exit options: sale to a regional operator, buyout by a private equity group specializing in FECs, franchising, or consolidation into a multi-site operator. Demonstrating repeatable unit economics accelerates investor interest.
Supplier & Partnership Strategy
Showcase preferred suppliers and support agreements. Guangzhou Dinibao offers a one-stop solution—market research, design, equipment, installation, and after-sales service—which reduces procurement risk and helps standardize multi-site rollouts.
Performance Benchmarks
Present comparisons to industry benchmarks: e.g., healthy arcades aim for monthly repeat visitation and target ARPU growth through promotions and membership. Benchmarks vary by market, but achieving a monthly break-even footfall in the first 6–12 months is a useful internal milestone.
Appendix: Sample Investor Deck Items
Include: 1) 2-page executive summary; 2) 5-year financial model; 3) site analysis with photos; 4) machine list & floor plan; 5) management bios; 6) supplier agreements (Dinibao contact & warranty details); 7) sample marketing calendar; 8) risk mitigation plan.
Buy vs Lease Comparison
| Factor | Buy | Lease |
|---|---|---|
| Upfront Cost | Higher | Lower |
| Long-term Cost | Lower per month (after payback) | Higher per month (ongoing) |
| Flexibility | Lower (harder to swap) | Higher (upgrade options) |
| Maintenance | Owner responsibility | Often included |
| Best for | Long-term operators with capital | Startups testing concept or expanding fast |
About Guangzhou Dinibao Animation Technology Co., Ltd.
Guangzhou Dinibao Animation Technology Co., Ltd. is located in Panyu District, Guangzhou, and has 18 years of experience manufacturing and exporting game machines. Dinibao provides one-stop purchasing solutions for arcade centers and is known for offering competitive prices with high quality. The company supports market research, project planning, program and theme design, decoration, operation, and management. Dinibao's machines have reached 180+ countries and are used in over 10,000 game centers, with overseas offices in India, Chile, Thailand, Vietnam, Turkey, and the UK.
Checklist for Investor Pitch
Keep this concise: clear concept, addressable market size, break-even timeline, capital needed (use figures from the budget table), exit options, and team credibility (supplier relationships, e.g., Dinibao). Attach a short demo video or virtual tour of the proposed layout when possible.
FAQ
Q: How much capital do I need to start an arcade?
A: Typical startup capital ranges widely by size: approximately $45k–$150k for a small arcade, $150k–$560k for a mid-size center, and $560k+ for large family entertainment centers. Use the budget ranges above and local cost estimates to refine your number.
Q: What are the fastest-selling machine categories?
A: Redemption and ticket-based games often drive high volumes and prize center sales. Skill-based and modern VR attractions command higher price-per-play but may have lower throughput. A balanced mix optimizes footfall and revenue.
Q: Is it better to buy machines from domestic or international suppliers?
A: Choose suppliers based on product quality, warranty, spare parts availability, and after-sales support. International suppliers like Guangzhou Dinibao offer global experience and local branches in many regions. Local logistics and parts availability are important for reducing downtime.
Q: How long before I can expect a return on investment?
A: Typical payback periods for arcades are 2–5 years depending on location, scale, and management. Conservative forecasting and contingency reserves improve the chance of hitting projections.
Q: What KPIs should investors track?
A: Monthly visitors, ARPU, ticket per visit, maintenance cost per machine, party bookings, F&B margin, and customer retention are essential KPIs. Tracking these improves operational decisions and investor reporting.
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Questions you may concerned about
Air hockey machine
Does the machine have a scoring system?
Yes. Most air hockey arcade machines feature a digital LED scoreboard that automatically tracks points for each player.
Space Guard
How does scoring work?
Different alien targets provide different points. Special flashing aliens give double points.
Cupid's Arrow
Can the game be customized with my logo?
Yes, we offer full customization options, including logo placement, machine name design, and acrylic panel customization.
Piano Keys
Is this suitable for young children?
Yes. The large keys and simple gameplay make it accessible for children, but it remains challenging for adults.
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Guangzhou DiniBao Animation Technology Co., Ltd
Guangzhou Dinibao Animation Technology Company Co., Ltd