How to Start a Laser Tag Business

Part 1 - How to start a Laser Tag business - Background

The business of entertainment can offer quite the lucrative career. When considering activities for children, families, and adventurous adults, a laser tag business can be a great fit for all types of clients. Be it birthday party celebrations, team building exercises for various groups, or indoor activities for children on inclement weather days, a laser tag facility can offer excitement and challenges.

Our guide is in 3 parts:

• Part 1 - How to start a Laser Tag business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a laser tag business?

A laser tag facility requires a significant amount of square footage and equipment. Therefore, start-up entrepreneurs are urged to set a budget of $115,000 to $252,000, depending upon region and the specifics of the arena course.

Your budget should include the following:

• Lease building – 5,000 to 6,000 square feet is recommended for interactive course in a standalone building.

• Obstacle course build-out – $40,000 to $100,000

• Obstacle course decor – $72,000 to $104,000

• Point of sale/management software and other miscellaneous items – $9,000 to $22,000

• Laser tag equipment – Guns, vests, scoring software, obstacles for play area. Each taser and vest will set you back $2,000.00 to $5,000.00. Indoor facilities should have an inventory of thirty to forty guns and vests.

If you lack industry experience and are looking for support in this business endeavor, consider investing in one of the many franchise opportunities. Franchise owners frequently offer financing options and can provide valuable insight that could help get your business off the ground in less time.

What are the ongoing expenses for a laser tag business?

Laser tag business owners report an annual cost of $230,000 to $265,000 for operating expenses. These ongoing expenses include:

• Payroll

• Marketing

• Facility lease

• Utilities, phone, etc

• Insurance

• Maintenance, repair, and replacement of equipment

• Supplies

• New game software

• Bank and credit card fees

Who is the target market?

While individuals of every age group enjoy laser tag, your core demographic will be aged six to fourteen. Your younger players enjoy the full experience, immersing themselves in this fun-filled, adventurous world.

With proper arena design and a sound marketing strategy, your business does have the potential to attract adults. Your adult customers are there to challenge their co-workers, enjoy an evening out with friends, or compete against others who take the game more seriously.

How does a laser tag business make money?

Laser tag businesses charge a fee per person for each game played.

How much can you charge customers?

Typically, laser tag will be conducted in timed games and consumers will pay per game. Games last an average of five to seven minutes. The standard price for one game is $8-$15, with a discount added for each additional game or packaged options offered.

How much profit can a laser tag business make?

A profit of $40,000 to $100,000 is achievable within the first three years of ownership. This requires a well-designed facility, a strong marketing strategy, and at least sixteen laser guns in play forty-five hours per week.

How can you make your business more profitable?

To realize long-term growth and success, laser tag arenas must keep things fresh and exciting. Consider implementing these strategies to improve overall profits:

• Endorse competitive events. This establishes a recognizable name for your organization and assists in consistently attracting new and repeat customers.

• Start a league

• Host tournaments

• Add a food court

• Make the entire facility available for large group events

• Offer additional entertainment, such as video games, paintball, and mazes

• Offer redemption tickets for your additional entertainment

• Include mobile laser tag as an extension of your business

Day-to-Day and Growth

What happens during a typical day at a laser tag business?

Upon opening your business, you will likely want to take a more active role in the day-to-day operations of the facility. As the arena starts to generate more revenue, additional members of your team can be added to take over the management of your enterprise.

The following tasks will require your attention on a regular basis to ensure your laser tag business’ success:

• Speaking with current and potential clients who are interested in hosting events at the facility.

• Routine maintenance and repair of equipment

• Safety check of laser tag course

• Checking inventory and place order for items you are low on

• Networking and marketing to build a loyal customer base

• Managing staff and vendor interactions

• Administrative and accounting duties

What are some skills and experiences that will help you build a successful laser tag business?

Each day, you will interact with customers, your staff, and those who fit the marketing profile. Therefore, you must possess strong leadership skills, particularly in communication and delegation. An understanding of the target demographic would additionally help solidify your marketing and networking skills, as well as ensure a playful and fun experience for each customer. To ensure long-term growth in this industry, strong strategic business management skills would also prove beneficial.

To get a feel for the business, customers, and how you want to design your facility, entrepreneurs are urged to spend some time working in the industry. Amusement Expo International is an annual event that offers business owners insight into industry standards and trends and is a great way to network within the community. Additionally, the Laser Tag Owners Association is a wealth of information for those just starting out in the industry.

What is the growth potential for a laser tag business?

As one of the most profitable businesses in the entertainment industry, laser tag facilities generated over $375 million dollars in the United States last year. This industry offers a profit margin of up to 40%, further demonstrating its earning potential.

What are some insider tips for jump starting a laser tag business?

Industry leaders offer the following advice:

• Never underestimate the importance of your equipment. It should be light enough to be carried by children, yet heavy-duty enough to attract competitive laser tag enthusiasts. The hit accuracy range between phasers is critical.

• Before investing in equipment, research the manufacturer. Testimonials offer valuable insight into equipment quality, as well as manufacturer support.

• The look and overall design of your facility, particularly the obstacle course, is equally as important.

• Keep in mind that this is a limited occupancy activity. To ensure adequate space, industry leaders recommend approximately 166 square feet per player.

• Consult with a contractor before committing to a building. Specific safety and construction guidelines must be met.

• Adjust your hours to accommodate your demographic.

• To reduce liability exposure, have each patron sign a waiver before entering the laser tag course.

How and when to build a team

Your team should consist of: a general manager, two to three shift managers, laser tag attendants, and party hosts. Before opening your doors, carefully interview prospective employees. Your team can consist of individuals from all age brackets; just make sure each member of your staff is properly trained on the equipment, safety, and rules and regulations. They are also the face of your business and must contribute to each patron’s positive experience.

Part 2 - Is a Laser Tag business the right fit for you?

Part 3 - Action plan to launch your Laser Tag business in 90 days