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Starting a Family Entertainment Center / FEC | Fun Center | Commercial Arcade Game Room
General Step-By-Step Guidelines For Opening New Arcades, FEC's, Fun and LBE Centers :
1) Selecting the location for your Arcade Game Room, FEC or LBE, if not already decided
The basis for a new Arcade or FEC success is very dependent on repeat customer visits, so it should e located near high-density / high foot traffic areas near malls, schools, commercial and retail zones, and residential neighborhoods. The correct size and location for your facility will depend on variety of factors such as local population size, number of
other competitors and the market demographics within your area, along with the size and budget of your project.
2) Determine if you will build or lease this facility, if you do not own or rent a existing location
3) Obtaining zoning approval for this location, from your city, county and/or state government
Before you continue your path towards opening a new Arcade or FEC facility, you must insure that this type of business can be granted zoning approval if required, which is usually from your local area's "zoning board", before proceeding further. Some areas in the past discouraged arcades FEC's from opening in their area, so it is mandatory you check with your local authorities first.
4) Creating a business plan / budget with operational expenses, determining target audience,
and conducting a Feasibility Study to project profitability (facilities larger than 8000 Sq Ft)
If you new facility will cost more than $1,000,000 USD, a initial Feasibility Study is the only safe way to determine that your project will be profitable and suitable for your desired location. Feasibility Studies can run anywhere from $5,000 to $35,000 USD, depending on the location and size of the project. BMI Worldwide uses the industry's top experts to conduct these studies on your behalf to determine if your project is both financially and technically feasible, and that the revenue, expense and development costs are realistic and achievable. Rather than delivering a "stock" development formula, as many "consultants" do (and which in many cases may be obsolete), our feasibility studies are bespoke, custom-tailored reports generated to find opportunities, advantages or weaknesses in your local area marketplace, created by lack of competition, and unique characteristics of your market population and demographics.
Click here to learn more about BMI Worldwide's Arcade / FEC / LBE Feasibility & Planning Services
5) Securing private investor, bank, family or other financing for your facility's construction
This is one of the few steps you are solely responsible for, but for large projects over $1MM USD, with your feasibility study and business plan documents in hand, these will be the keys that will greatly assist you find and secure either private investor, bank or government financing approval.
6) Creation of the facility's theme, design, floor plan and construction blueprint, as needed
Planning, designing, theming and building a successful family entertainment center (FEC) , fun center, arcade, theme park, amusement park or location-based entertainment facility (LBE) should always include expert advise and review. Our global team of amusement industry experts and consultants are ready to share our extensive knowledge on arcade design, planning, theming and construction, along with arcade industry "best practices".
Click here to learn more about BMI Worldwide's Arcade / FEC / LBE Design + Theming Services
7) Construction and/or renovation of selected facility, based on design and floor plans created
8) Purchase of equipment and furnishings for facility about 3 to 5 months prior to launch date
After completing the above tasks, the final decision is what type of arcade games and other types of amusement equipment to purchase for your facility, which will be determined usually by the size and type of facility you are opening. This can range from video arcade games, redemption arcade games, motion simulators and large attraction rides and machines, to token machines or newer swipe card systems that eliminate the hassle and security issues with token use, while providing real-time data on the profitability of your games, and the ability to re-program game prices remotely, so you can offer special game prices for "happy hour" or set all games on "free-play" for parties or other types of game promotions, which is time consuming for token-operated games.
9) Creating marketing and advertising plans to announce the opening of your new facility
There are many types of effective marketing venues, tools and methods to choose from, and among these choices, some of the most effective can be direct advertising, like display ads in local entertainment guides, newspapers, radio, television or cable channels, and by offering discount coupons through local and social media channels, and creating a high-quality website that showcases your facility and services. Partnering with your local schools, churches, charities, youth centers and non-profits organizations to offer group discounts can also be very effective. And finally, creating high-quality print and online brochures that details everything your facility has to offer clients,
from birthday parties to corporate gatherings, is a must for the facility's future success.
Category: Business ideas