. Is Starting A Video Game Parlor A Good Business Idea Nowadays?

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Gaming is fast becoming a popular pass-time activity in Kenya; and since most people
cannot afford to buy and maintain private gaming consoles at home then you can capitalize on
this opportunity to launch a small business. 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 rollingA 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 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.25,000 in places like Luthuli Avenue in Nairobi or in top supermarkets
countrywide. Secondly, you will need gaming units like consoles, pads among other accessories.
The cheapest gaming unit on the market currently is Playstation 2 which goes for Ksh.10,000.
Playstation 3 and Xbox 360 cost about Ksh.40,000 each. Note: There are two main
categories of gaming units i.e. chipped and unchipped. Chipped ones have their lenses changed
in order to read a wide variety of DVDs. Unchipped ones only work with original DVDs copies
only. Be sure to ask your vendor for a clarification on consequences of owning chipped vs
unchipped gaming equipment.
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, event
management, audio and video production and so forth.

Author Vincent Tarus

This is a satirical website. Don't take it Seriously. It's a joke.

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