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The Play Station business in Kenya often comes as a combination of games and video shops. Its profitability can’t go unnoticed as people flock to these stores in the evening to pick films. Moreover, the PlayStation area is usually filled during holidays and weekends.
To open a Play Station in a good location, you’ll need around Kshs 500,000 and above. The earnings for this business vary depending on your location and client base.
Entertainment is part of us today with children and young adults engaging in gaming activities, you can leverage this to make a good income. All you have to do is be strategic and provide the best services for your customers.
So, how do you start a PlayStation business?
Let’s find out!
How To Open a Play Station Business Step By Step
Are you new to business in Kenya? Here are the steps you should follow to establish a PlayStation.
Step 1. Write a PlayStation Business Plan
A business plan gives your venture a roadmap regarding the main elements, for instance, your business location and funding. To create an excellent PlayStation business plan, you must conduct thorough research within your area and identify how this venture works.
During the research process, you should also identify the market gap and use it to develop effective strategies to give you a competitive advantage.
So, what specifically should your business plan contain? Your document should contain the following:
- The initial capital budget
- The products and services your business offers
- The marketing strategies
- Your business growth strategy
- A competitive analysis
- The business risks and mitigation plans
Once, your business plan is finalized, you can proceed to the next step.
Step 2. Get Funding
It’s typical for Kenyans to find capital first before they plan to start a business venture. However, you might be stuck in having an idea without capital. In other cases, you might have part of the initial capital.
In both scenarios, you need a plan to acquire all the starting capital or the remaining amount. The business plan is essential in this step as it provides substantial documentation of how you’ll use the money.
It also provides vital details that investors or lenders can use to evaluate the viability and profitability of that business. Hence, you can use your PlayStation plan to approach your relatives, investors, or lenders.
They’ll be willing to fund a business that can pay back or help you become financially independent.
Step 3. Choose The Best Play Station Business Location
Play Station is one sensitive business that relies on age and convenience. As a result, you must choose a business location close to residential areas, universities, or youth hangout joints. This will help you attract massive clients to your business.
Additionally, you should consider your Play Station’s accessibility and visibility. This will allow easy drive-ins and walk-ins for repeat and first-time clients.
Don’t forget that your Play Station has expensive equipment that might attract robbery issues now and then. So, choose a rental space with maximum protection!
Step 4. Acquire Legal Documents
Running a business without the government’s approval can land you in serious trouble. That’s why you must apply for all legal documents before you start your Play Station.
Now, what documents do you need to run a Play Station business?
- Single Business Permit. The single business permit is the primary legal requirement for all businesses in Kenya. You need it to prove the authorities have permitted you to operate your business.
- Kenya Film Classification Board or KFCB. This legal requirement is essential for your movie shop.
- Music Copyright Society of Kenya. You’ll be airing music in your Play Station or movie business. Thus, you must pay for the music copyright to avoid getting on the wrong side of the law.
Visit your county offices to confirm any updates to ensure you have all legal documents. This will ensure you enjoy a smooth business operation.
Step 5. Hire The Right Staff
Operating a successful gaming lounge requires highly skilled staff members who can maintain a high level of efficiency. Here are the main professionals you should hire:
- Gaming Attendants: These employees manage the gaming section. They help clients choose games and provide troubleshooting services.
- Movie Rental Registrar: These staff manage DVD rentals, provide customers with films, and manage the related payments.
- Cashier: The cashier handles all the payments for the gaming and movie rental sections.
- IT Technician: Like any other business that relies on the internet and the digital world, you’ll face technical challenges that require a professional technician to fix.
- Cleaners: You can pay your cashier or attendants extra to clean or hire cleaners to ensure your movie lounge is neat.
Capital Breakdown
Now, that you have funding, you’re probably wondering how you’ll budget for the same appropriately. Well, here is a breakdown of someone with an initial capital of around Kshs 600,000
1. Lounge and Business Requirements
| Requirement | Cost |
| Lounge Customization | Kshs 100,000 |
| Rent | Kshs 20,000 |
| Business Registration | Kshs 1,000 |
| License | Kshs 10,000 |
| KFCB fee | Kshs 5,000 |
| MCSK fee | Kshs 3,000 |
| CCTV Installation | Kshs 30,000 |
| Total | Kshs 169,000 |
2. Equipment Budget
| Item | Cost |
| 5 43-inch screens @ 20,000 | Kshs 100,000 |
| 2 PS4 @ 50,000 | Kshs 100,000 |
| 2 PS5 @ 100,000 | Kshs 200,000 |
| 5 Games @ 5,000 | Kshs 25,000 |
| 1 PC | Kshs 30,000 |
| 4 PS controllers and charges @ 3,000 | Kshs 12,000 |
| Water dispenser | Kshs 5,000 |
| 4TB Hard Disk | Kshs 16,000 |
| Total | Kshs 488,000 |
3. Utility Bills
| Utility | Cost |
| Internet | Kshs 5,000 |
| Water | Kshs 1,000 |
| Electricity | Kshs 2,000 |
| Miscellaneous | Kshs 5,000 |
| Total | Kshs 13,000 |
| Grand Total | Kshs 670,000 |
Note that these figures can be adjusted depending on the size of the gaming lounge. You can size down if your budget is lower and purchase fewer items like 2 screens instead of 5.
Alternatively, you can purchase second-hand equipment to cut costs and find a more affordable rental space.
Frequently Asked Questions
1. How Profitable Is Play Station Business In Kenya?
The gross monthly income of a gaming business is usually between Kshs 100,000 to Kshs 150,000.
To get the net profit we have to deduct the monthly expenses including utility bills, rent, and salaries which can add up to Kshs 38,000 to Kshs 58,000.
Hence, the profit margins range between Khs 62,000 and Kshs 92,000. This is quite lucrative considering other businesses offer around 10% profit margins.
2. How Do You Mitigate Play Station Business Operation Challenges?
Although the Play Station business is lucrative, it has its fair share of risks and challenges. Here are some common difficulties you should mitigate;
- Security Risks
Your business has expensive equipment and handles a lot of cash, so you must bump up security on your premises. The best way to handle this is through CCTV installation, keeping minimum cash in the premises through bank deposits, and anti-theft cable installation.
- Power Outages
Power outages can cut short the gaming sessions, ruining your customers’ experiences. Hence, you must get a backup to keep your gaming lounge running throughout the day. You can solve this by purchasing a generator when the power outage is prolonged.
- Equipment Maintenance
Equipment maintenance is essential for efficient functioning. Hence, you should clean them, upgrade all software, and perform anti-virus scans. This will ensure your machines are operating at their optimal level for the best outcome.
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Conclusion
Play Station business in Kenya is one of the most lucrative ventures. You can rake in massive profits once you identify a suitable location with your target group. However, it is capital-intensive and requires effective strategies.
And if budgeting becomes a challenge, you can visit Centwarrior shop for professional financial resources.
