PlayStations business is one of the most profitable businesses in Kenya at the moment.To start the business, you need to have at least Ksh 200,000.The ideal capital being Ksh 500,000.Below we have outlined steps to follow when starting this business in Kenya.
- Have a business Plan
A business plan is vital for any business to survive. It helps in;
- Enabling the people who will fund the business like banks, to see that you are structured. When you get a loan from a bank, they need to see that you are well prepared.
- Family and Friends will not doubt you because you have a plan which is structured.
- You will know your goals and find ways to achieve them
- It also creates a marketing road map
- It provides you with clarity in the business you want to establish
It is not compulsory to have a business plan but it is necessary. It shows how serious you are with your business.
- Capital
One should have a source of capital or at least know where they will get the funding. A play station business requires Kshs 600, 000 to start. You can later decide if you will add a movie shop to the business or not.
- Location
Your location will determine if you will have clients or not. The place you pick is very important. It should be known and easy to locate in case someone wants to visit the lounge. You can choose to set it up near residential areas, campuses, high schools or even a general place in town.
Nairobi,Nakuru ,Kisumu,Mombasa and Eldoret are among the best places to start the business.
- Licences
One needs a license in order to operate a business in this country. A work permit is important. You will need:
- A single business permit
- Kenya Films Classification Board (KFCB) for the movie shop
- Music Copyright Society of Kenya – ensures that you can play music in your business lounge.
All these licenses require Ksh 30,000 to Ksh 70,000 depending on location.
- Security
With this economy, some people will want to break in and steal your equipment. Having good security would go a long way. CCTV cameras can also be put in place in case you want to monitor from your phone every now and then. Installing a security alarm can also help. Immediately it goes off, the thief can be caught. It will also keep thieves away.
- Marketing
You should have a unique style of marketing your gaming lounge. You should include banners, posters, social media posts and even holding free tournaments. These will pull clients to your gaming lounge. The word will spread fast and soon you will have people streaming in.
- Success factors for a play station business
In order to get more customers, the lounge must be appealing and up to date with the latest games and equipment.
- Have a variety of games the gamers can choose from.
- Ensure the services are regular and consistent. Secure the area.
- Have a good rapport with customers
- Know your target market and how to attract them
- Choose between offering hourly or per game services.
- Returns on Investment
The income you get depends largely on the consistency of your clients and how many new people are attracted to the place. Most gaming places open around 10. 00a.m and close at around 9.00 pm. The business operates for approximately 11 hours. In case the place is idle, then the business might run for 6 to 7 hours.
- Per- game service returns
The average gaming time (this is 6 minutes) together with an average customer changing time of 4 minutes will give you 6 games played per hour. The average cost per game session is KES30.00.
If the gaming lounge has 4 screens, that will make up to Ksh 720. When the whole amount is summed up per day, you would have made up to Kshs5, 040. This is if it operates for 7 hours.
The total amount per month will be Kshs 120, 960, with 24 operational days.
- Per- hour gaming service returns
If you choose to charge per hour, then the cost would be about Kshs200. If we follow the same procedure that is above, the returns will be:
Price per hour: Kshs 150
Active hours: 7Hrs
Total per day: Kshs4, 200
Per month: Kshs 100, 800
How much profit can one get from a gaming lounge?
After paying all the monthly expenses, that is the Wi-Fi, rent, electricity, water, employees which would approximate to Kshs58, 200
The gross income would be Kshs 130, 000. Subtracting total expenses will give you a monthly income of 72, 000. One can easily get back their capital investment after six to ten months.
Below is the summary of the amount to use in each item:
1. Rent and deposit- 30k
2. 3 ps 5 consoles- 240k
3. CCTV + wifi- 27k
4. 3 55 inch tvs- 150k
5. Business Permit- 10k
6. KFCB License- 2k
7. 3 “sofa seats”- 12k
8. 3 metallic wall mount frames- 9k
9. Wiring/ extensions- 5k
10. 4 plastic seats- 2k
11. Woofer- 5k
12. Padlocks, mop, bucket etc- 3k
13. Miscellaneous- 5k
