One good thing about setting up a gaming lounge is that you don’t need to a lot of pre-training to get the wheels of the business rolling.
A strategic location and ability to keep up with trends are the two most important qualities required in order to conquer the market. Here is a step-by-step guide (inclusive of capital breakdown) that will help you get started.
*Step One: Pick A Location*
Your choice of location can either make or break your business. Previously, a location in the Nairobi CBD would have been highly recommended but nowadays there are too many outlets there and competition is cut-throat. Consider looking for a cheaper location, preferably near an upcoming college/university.
Think of areas like Chuka (Chuka University), Kabianga in Kericho, Karatina near Karatina University, Chepkoilel near Eldoret, Machakos near Machakos University and so forth. If you are near Nairobi then a location near an upcoming college branch (campus) in the estates is highly recommended.
*Step Two: Carry Out A Small Market Survey*
Market research is nothing really complicated. You can for instance create a short questionnaire form and request a few people in your locality to share their expectations with you. If you get an overwhelming response – say 70% YES – then that means there is widespread interest in the market and therefore higher chances of survival.
On the other hand if you get a 15% acceptance rate, then such a market would probably be difficult to survive in and you might want to keep off.
*Step Three: Rent A Room, Polish It Up*
Look for a 50 square feet room, one that can accommodate several machines, chairs and still leave some space for future expansion. The average rent price for such a room is about Ksh.5,000 to Ksh.15,000 with a deposit amount of a similar amount.
If you don’t have a lot of money to spend, avoid going for rooms where landlords ask for a good-will payment. Lastly, bring in a carpenter and let him do his job (this will typically cost you around Ksh.10,000).
*Step Four: Shop And Buy Equipment*
Basically you will require a minimum of one 21 inch colored TV. You can get a new one for as little as Ksh.20,000 in places like Luthuli Avenue in Nairobi or in top supermarkets countrywide.
Secondly, you will need gaming units like consoles, pads among other accessories which will cost you around Ksh.50,000.
*Step Five: Get Your Licenses*
*Single Business Permit*: Issued by County Governments. Cost may vary from one county to the other.
*Music Copyright License*: You will need this license if you’ll be playing music in your premises.
If you are planning to open the business within the boundaries of Nairobi County, then you should be prepared to set aside at least Ksh.35,000 for licenses.
In Kajiado County (areas like Ongata Rongai, Kitengela, Ngong, Kiserian etc), the charges are cheaper and you can set aside Ksh.15,000 for this cost head.
*Step Six: Market Your Business*
Attracting new customers (and retaining them) is another area that needs to be taken care of. 50% of the battle is won if you find a prominent location with enough footfalls. The other 50% is won by coming up with good marketing strategies e.g. in-house tournaments, pamphlets, opening offers & discounts among others.
Your typical target market will consist of male students, teenagers and working class people aged up to around 30 years.
*How Much To Invest*
The overall cost of starting a small gaming business is Ksh.80,000 (Start small and keep re-investing your profit for 6 months).
*How Much To Expect*
A fully-fledged gaming lounge with 4 TV screens can rake in about Ksh.3,000 per day or roughly Ksh.60,000 net profit per month.
*Final Word*
The main advantage of starting this business is that you can start small and grow big in a short period so long as you are prepared to sacrifice for some time.
You can even expand your business to further accommodate things like: movie shop, DJ classes & lessons, photography, event management, audio and video production and so forth.
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