You're writing an arcade business plan and need the exact sections and numbers to present to investors, defintely. Include an executive summary, customer profile, ops for 15-20 cabinets, and financials showing first‑year revenue of $3,139,000, EBITDA $914,000, capex lines ($1,200,000 cabinets, $750,000 leasehold, $250,000 app), $25,000 monthly rent and $833,000 minimum cash buffer.
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Step Name
Description
1
Step 1 - Define the Customer and Value Proposition
Track reservations, average check, occupancy, cabinet uptime, technician SLAs, and monthly cash.
Key Takeaways
Price 90-minute reservations $55-$75 per person
Allocate $1.2M cabinets and $750K leasehold capex
Ensure $833,000 minimum cash buffer at opening
Target $3,139,000 revenue and $914,000 EBITDA year-1
What Should A Business Plan For Arcade Actually Include?
A business plan for arcade must state market, product, ops, revenue mix, and financials so investors see value and risk quickly. Focus on affluent urban professionals as the target customer and explain why a reservation-based arcade beats low-quality barcades and home setups. Specify a revenue model with reservation fees and an average check of $110 per person, and operations for 15-20 high-fidelity cabinets with maintenance routines. Include launch capex and show breakeven in year 1, and link operating costs to ongoing assumptions: What Operating Costs Arcade Games Incur?
What Do You Need To Figure Out Before You Start Writing?
You're confirming the hard inputs that make the arcade business plan real - keep reading to avoid wasted spend. Start by locking site economics like $25,000 monthly rent and CAM assumptions, and validate demand with exclusive beta events for local tech and gaming groups. Define the exact cabinet mix for 15-20 high-fidelity cabinets and the $1,200,000 gaming hardware budget, then map staffing and wages plus the app roadmap tied to the $250,000 initial software investment; see How to Start an Arcade Business? for next steps.
Checklist before you write the arcade business plan
Confirm site economics: $25,000 monthly rent
Validate demand via exclusive beta events
Specify 15-20 cabinets; $1,200,000 capex
Set staffing, wages, and $250,000 app roadmap
What'S The Correct Order To Write Arcade Business Plan?
Start with a one-sentence executive summary and a clear snapshot of the reservation-based arcade to set direction, then work through customer, go-to-market, operations, financials, and funding ask - read the practical owner economics here How Much Does an Arcade Business Owner Earn?. Keep the plan ordered so your arcade business plan, arcade startup business plan, and arcade financial model all map to the same assumptions. Follow this sequence to make the capex, operations plan, and risk mitigation flow into the funding ask.
You need five hard projections to make this arcade business plan investable and actionable-keep reading. Include first-year revenue $3,139,000, year‑1 EBITDA $914,000, and a minimum cash buffer of $833,000 (minimum cash month: Mar-26). Itemize the capex schedule (known investments below) and a monthly fixed expense rollup that shows $25,000 rent, utilities, and marketing; also link your model to operating costs via What Operating Costs Arcade Games Incur?. Model sensitivity to occupancy, average check, and rent pressure-these are defintely non-negotiable.
Non-negotiable financials
Revenue: $3,139,000 in year 1
EBITDA: $914,000 in year 1; 5‑year projections required
Minimum cash: $833,000 buffer; min cash month Mar-26
What'S The Most Common Business Plan Mistake Founders Make?
You're likely to build an arcade business plan that looks great on paper but fails in practice-read on to fix the five common errors that sink reservation-based arcades. Key failures are overestimating walk-in volume instead of reservation demand, under-budgeting maintenance for high-fidelity arcade cabinets, treating F&B as a subsidy rather than a margin driver, ignoring retention metrics, and omitting a minimum cash buffer of $833,000. Also review pricing assumptions like 90-minute reservations at $55-$75 per person and average check of $110 to align your arcade revenue projections and breakeven analysis; see projected owner returns How Much Does an Arcade Business Owner Earn?.
Most common plan mistakes - fix these first
Assume walk-ins - model reservation-only demand
Under-budget maintenance - high-fidelity arcade cabinets need it
Treat F&B as subsidy - price for $110 average check
Skip retention metrics - track lifetime performance and engagement
What Are 7 Steps to Write a Business Plan for Arcade?
Step 1 - Define The Customer And Value Proposition
Define the affluent urban professional customer and a reservation-only 90-minute private-pod experience that delivers higher fidelity play and a hospitality-led $110 average check; done when customer profile, session model, and value drivers are written.
What to Write
Draft a one-page customer persona for affluent urban professionals
Write the reservation mechanics for 90-minute private pods and pricing tiers
Outline the fidelity and performance-tracking features of the proprietary app
Define how F&B integrates to reach an $110 average check
Draft a scarcity plan using beta events for initial demand
Proof / Evidence to Include
Customer interviews or RSVP list from beta events targeting local tech groups
Competitor feature comparison showing higher cabinet fidelity and private pods
Price anchoring examples from premium hospitality venues for a $110 average check
What You Should Have (Deliverables)
Finished customer persona page
Reservation & pricing mechanics section
App feature list tied to performance tracking
Common Pitfall
Assume walk-ins equal demand → leads to wrong pricing and empty slots
Under-describe app tracking → investor doubt on retention and premium pricing
Quick Win
Create a 1-page persona sheet from 5 beta RSVPs to validate willingness-to-pay
Build a 1-page pricing table for 90-minute pods showing reservation tiers and F&B add-ons to validate the $110 average check
Step 2 - Map The Product And Experience Offer
Design the reservation-only guest experience so opening day offers 15-20 high-fidelity cabinets, private pods, and an app-driven booking and performance system - done when the product list, menu, and uptime SLA are documented.
What to Write
Draft a list of 15-20 cabinet types with model and uptime SLA
Write the reservation mechanics for 90‑minute sessions and pricing ($55-$75 per person)
Outline app features: booking, payments, performance tracking, league rankings
Define F&B menu and pricing to hit a $110 average check per person
Build maintenance and license fee schedule tied to the $1,200,000 hardware line item
Proof / Evidence to Include
Supplier quotes for cabinet purchase and service contracts (hardware unit prices)
Beta event booking data from local tech/gaming groups showing reservation conversion
Menu cost sheet showing F&B COGS at 24% and per-check math
App vendor proposal for initial dev cost of $250,000 and monthly maintenance
What You Should Have (Deliverables)
Finished product list and cabinet uptime SLA table
F&B menu with pricing and cost assumptions to reach $110 avg check
App feature spec and booking flow document tied to reservation economics
Common Pitfall
Overlooked maintenance costs → frequent downtime and lost reservations
Pricing by walk-ins not reservations → missed revenue and wrong demand math
Quick Win
Create a 1-page cabinet roster (type, vendor, SLA) to validate the $1,200,000 hardware budget
Build a 1-page assumptions sheet (reservation price, 90‑min session, avg check $110) to speed revenue tests
Step 3 - Build The Operational Plan And Team
You're hiring and building ops for arcade; done looks like staffed shifts, documented maintenance SOPs for 15-20 high-fidelity cabinets, and app support live by opening.
What to Write
Draft core org chart listing General Manager and Head Technician
Write shift schedule for hospitality staff and technician coverage
Outline maintenance SOPs for cabinet uptime and rapid fixes
Define app support process and contract starting Mar-26
List vendor contacts for kitchen equipment and security service
Proof / Evidence to Include
Beta event attendee feedback from local tech and gaming groups
Vendor quotes for cabinet maintenance and SLA terms
Finished operational plan section with roles and salaries
4-week shift schedule and technician rota
Maintenance SOPs and vendor contact list
Common Pitfall
Under-budgeting technician hours → cabinet downtime and lost reservations
Omitting app support SLA → payment or booking failures that damage retention
Quick Win
Create 1-page candidate scorecard for General Manager and Head Technician to speed hiring
Draft a 4-week shift schedule (spreadsheet) to validate wage costs vs. occupancy
Step 4 - Prepare Financial Model And Sensitivities
Build the arcade financial model so investors see scalable revenue lines, clear margins, and a minimum cash buffer that proves the concept is fundable and operable.
What to Write
Draft a revenue schedule by stream: reservations, F&B, private events, merchandise, memberships
Write a COGS table including F&B at 24%, game license fees at 1%, and consumables at 15%
Outline variable fees: payment processing at 25% and commission/third‑party costs
Detailed financial model with monthly cash flow and P&L for 5 years
Sensitivity workbook toggling occupancy, avg check $110, and rent
Capex schedule listing $1,200,000 cabinets and $250,000 app spend
Common Pitfall
Assuming walk-ins drive revenue → investor rejection due to weak demand assumptions
Under-estimating variable fees (payment/consumables) → model shows false EBITDA and short cash runway
Quick Win
Create a 1-page assumptions sheet listing occupancy, reservation price band ($55-$75), and avg check $110 to validate with advisors
Build a simple 3-scenario cash flow tab (base, downside, upside) to verify minimum cash buffer of $833,000 and identify Mar-26 as critical month
Step 5 - Plan Go-To-Market And Growth Phases
Launch an exclusive, reservation-first go-to-market that drives paid bookings and measurable retention; done when beta events convert to a repeatable reservations funnel and first paid private events sell out.
What to Write
Draft a beta launch plan targeting local tech and competitive gaming groups
Write a reservation funnel page with conversion metrics and booking flow
Outline a content calendar for high-quality visual assets and FOMO drops
Define timing for new revenue streams: private events Jul-2026 and merchandise Jan-2027
Build a scaled marketing spend plan tied to reservations CPA and conversion
Proof / Evidence to Include
Attendee list and RSVP conversion from exclusive beta events
Reservation conversion benchmark (local leisure venues or booking platforms)
Creative assets and engagement metrics from pre-launch social tests
Supplier quote for merchandising and fulfillment (optional)
What You Should Have (Deliverables)
Go-to-market section draft with KPI targets and calendar
Reservation funnel dashboard and CPA sensitivity table
Relying on walk-in traffic → weak early revenue and unusable reservation model
Scaling spend before validating CPA → burns cash and shortens runway
Quick Win
Create a 1-page beta event plan (artifact: RSVP sheet) to validate demand and reservation conversion
Build a 1-week paid social test (artifact: creative + CPA tracker) to measure booking cost and speed up optimization
Step 6 - Prepare Funding Ask And Use Of Funds
Goal: Define the arcade funding ask so investors see exactly $1,200,000 for cabinets, $750,000 for leasehold, $250,000 for the app, and a working capital buffer of $833,000-done means a tranche-linked use-of-funds schedule tied to opening milestones for arcade.
What to Write
Draft a line-item capex schedule showing $1,200,000 cabinets and $750,000 leasehold
Write a use-of-funds table including $250,000 app and $180,000 kitchen equipment
Outline working-capital needs with the minimum cash buffer of $833,000
Define tranche milestones tied to ribbon-opening, beta launch, and first 90 days of marketing
Proof / Evidence to Include
Supplier quotes for high-fidelity cabinets showing total $1,200,000
Lease term sheet confirming monthly rent and estimated leasehold costs
Development contract or budget for proprietary app at $250,000
What You Should Have (Deliverables)
Finished capex and use-of-funds schedule (spreadsheet)
Funding tranche timeline linked to openings and marketing (one-pager)
Assumptions sheet showing $833,000 cash buffer and timing
Common Pitfall
Listing capex totals without supplier quotes → weak credibility with investors
Skipping a minimum cash buffer → model fails under moderate demand shortfall
Quick Win
Create a 1-page use-of-funds sheet (spreadsheet) to speed up investor diligence
Get 2 supplier quotes for cabinets and kitchen equipment (PDFs) to validate capex and prevent guesswork
Step 7 - Risk Management And Kpi Dashboard
Make a compact risk register and KPI dashboard so Arcade is monitoring reservation revenue, average check, occupancy, EBITDA margin, cabinet uptime, and minimum cash each month - done = live dashboard and escalation plan tied to Mar-26 as the critical month.
What to Write
Draft a KPI dashboard page listing reservation revenue, average check $110, occupancy, and EBITDA margin
Write a monthly cash-tracking table showing the minimum cash $833,000 and the month flagged as Mar-26
Outline an incident SLA and maintenance process for 15-20 high-fidelity cabinets
Define app engagement metrics (bookings, retention, league rankings) and alert thresholds
Build a contingency plan with triggers and actions for slower adoption affecting Year 1 cash flows
Proof / Evidence to Include
Customer feedback from exclusive beta events with local tech and gaming groups
Maintenance vendor SLA and quoted response times for cabinets
Cashflow extract showing the minimum cash buffer $833,000
App analytics baseline (bookings, DAU/MAU) from pilot or prototype
What You Should Have (Deliverables)
Finished KPI dashboard (spreadsheet or BI view)
Risk register with triggers and action owners
Monthly cash-tracking table highlighting Mar-26
Common Pitfall
Omitting monthly minimum cash tracking → missed runway risk and late emergency funding
Ignoring cabinet uptime SLAs → reputation loss and lower repeat bookings
Quick Win
Create a 1-page assumptions sheet (artifact) to validate occupancy and average check - to prevent optimistic revenue forecasts
Build a 1-month cash snapshot (artifact) showing the minimum cash $833,000 and burn - to speed investor Q&A and identify shortfalls
Yes, Arcade requires substantial upfront capital primarily for capex and fit-out Key known figures include $1,200,000 for gaming cabinets, $750,000 for leasehold improvements, and $250,000 for the proprietary software platform Plan to cover initial inventory and a minimum cash buffer of $833,000 to reach opening and support early operations
Arcade reaches breakeven in year 1 based on the provided model The plan forecasts first-year revenue of $3,139,000 and EBITDA of $914,000, supporting early profitability Maintain strict control of fixed monthly costs like $25,000 rent to preserve margins and cash runway
Yes, the proprietary app is central to the reservation and performance tracking experience The assumptions allocate $250,000 for initial development and a $5,000 monthly app maintenance contract starting Mar-26 Prioritize core booking, payment, and lifetime performance metrics at launch to drive member engagement
Largest ongoing expenses are rent and wages along with regular maintenance Fixed monthly rent is $25,000 and key salaries include General Manager at $90,000 and multiple hospitality staff at $45,000 each Also plan for recurring app maintenance fees of $5,000 monthly to ensure platform reliability
Price 90-minute reservations between $55 and $75 per person and target total average check of $110 This pricing supports the revenue mix that yields first-year revenue of $3,139,000 and F&B sales of $1,236,000 while preserving a 40% target margin on F&B
