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How to choose a location for your LBE VR business
To open your own LBE VR business, you first need to understand the set up factors involved. Important things like what business processes need to be established, what equipment needs to be installed, and how to effectively invest funds to achieve the best possible outcome. Let’s take a closer look at each of the main points in establishing a VR business.
Location
When choosing a location you need to decide what format of space you are looking for. Do you need a spot in a shopping center, the space required for a VR club, or maybe for an entire amusement park? You must assess the cost of equipment and licenses for the format you have chosen, as well as the amount of money you are willing to spend on rent and for carrying out any repairs needed for the location.
Main requirements for the location
The ability to connect attractions to the internet and a reliable power supply are essential requirements. When choosing a location, special attention should be given to the power sources available and all electrical connections on site.
You can use an existing low-voltage network if you have conducted a comprehensive check of its operation. It is quite possible that you will need to replace it entirely or restore some of its elements.
You can use an existing low-voltage network if you have conducted a comprehensive check of its operation. It is quite possible that you will need to replace it entirely or restore some of its elements.
A little trick
When choosing a space, you can request available options from owners or property management companies of shopping centers.
Large shopping centers do not make space available for rent publicly. They benefit from working with experienced managers who meet high standards of organizing construction, installation work and providing services. This is why opening your own space in a shopping center can be a difficult process, especially for newcomers to this business.
Large shopping centers do not make space available for rent publicly. They benefit from working with experienced managers who meet high standards of organizing construction, installation work and providing services. This is why opening your own space in a shopping center can be a difficult process, especially for newcomers to this business.
Methods of finding the location:
- You can search through real estate websites on your own;
- Contact a real estate agency that can help you choose the best option.
- Require major repairs — it is better to immediately reject such options. As you’re just starting the business, you could be liable to incur significant costs to bring the premises up to the required standard;
- White Box — premises without finishing and utilities. Not the best option, as it may also require significant costs to complete;
- Premises with finished decoration — the best way forward. When considering it, you should pay attention to the presence of utilities and the need for redevelopment.
It is important to pay attention to the presence of good ventilation, for both air supply and extraction. Air conditioning systems can be quite expensive and complex to install. If they’re already in place on the premises then that’s a significant advantage.
Costs for each category of premises can vary significantly. If your expectations match reality, then proceed confidently to the assessment of construction and installation works.
Commercial Aspects
How are you going to attract customers? This is the question that should be the starting point for discussing the future traffic at the location. We know that there are Walk In, Digital, and combined methods for attracting the target customer. Let’s take a closer look at each of these options in more detail.
Walk In
This is one of the most familiar types of traffic, including those in shopping centers, business centers, park areas, public transport stops, and other public places that are visited by thousands of people daily.
Advertising here will be noticed by many people, but not all Walk In traffic will be useful for promoting the location. For example, a metro station where thousands of people enter and exit daily. Obviously, the motivation of this type of traffic does not coincide with our goals. It is important to assess the type and motivation of the people comprising the Walk In traffic and then to choose the location of the venue accordingly.
The second important indicator for our forecast is the amount of time people are willing to spend on entertainment;
Third: the amount of money people are willing to spend — purchasing power;
Fourth: the frequency of repeat visits to the location.
If we combine all the factors, we get the following target profile:
Your Walk In traffic consists of people who come to relax and have fun, and are willing to spend greater time in this location than simply that of the time length of the longest attraction. The cost of the attraction is lower than the average check in this location and people visit the location once or twice a month.
By assessing the Walk In traffic, we get an answer to the crucial question — will our service be in demand in this location?
Pay attention to the quantitative indicators of Walk In traffic. Do not evaluate the amount of traffic directly. You see, obtaining the average monthly attendance from a shopping center for LBE VR would be a gross mistake.
Assessing Walk In traffic consists of the following stages:
Remember that during prime time, you can serve no more than 100% of your capacity. It is important to adequately evaluate the capabilities of the location from the very beginning, taking into account the load and capacity indicators when developing a business model.
Locations with good logistical and transport accessibility are also very important factors for a successful business. By placing your venue in a hard-to-reach place, you reduce the number of your potential customers.
Another big plus is having other attractive places for customers nearby, such as restaurants, walking areas, shops, selfie spots, and so on.
Advertising here will be noticed by many people, but not all Walk In traffic will be useful for promoting the location. For example, a metro station where thousands of people enter and exit daily. Obviously, the motivation of this type of traffic does not coincide with our goals. It is important to assess the type and motivation of the people comprising the Walk In traffic and then to choose the location of the venue accordingly.
The second important indicator for our forecast is the amount of time people are willing to spend on entertainment;
Third: the amount of money people are willing to spend — purchasing power;
Fourth: the frequency of repeat visits to the location.
If we combine all the factors, we get the following target profile:
Your Walk In traffic consists of people who come to relax and have fun, and are willing to spend greater time in this location than simply that of the time length of the longest attraction. The cost of the attraction is lower than the average check in this location and people visit the location once or twice a month.
By assessing the Walk In traffic, we get an answer to the crucial question — will our service be in demand in this location?
Pay attention to the quantitative indicators of Walk In traffic. Do not evaluate the amount of traffic directly. You see, obtaining the average monthly attendance from a shopping center for LBE VR would be a gross mistake.
Assessing Walk In traffic consists of the following stages:
- Breaking down the entire day into time intervals;
- Measuring traffic for each interval on days before the weekend, on weekends, and on weekdays.
Remember that during prime time, you can serve no more than 100% of your capacity. It is important to adequately evaluate the capabilities of the location from the very beginning, taking into account the load and capacity indicators when developing a business model.
Locations with good logistical and transport accessibility are also very important factors for a successful business. By placing your venue in a hard-to-reach place, you reduce the number of your potential customers.
Another big plus is having other attractive places for customers nearby, such as restaurants, walking areas, shops, selfie spots, and so on.
Digital Traffic
As the name suggests, it refers to the customers you attract through online advertising. This method is easier in terms of choosing location geography but requires additional attention and tools in operational activities.
The determining parameters when working with digital traffic are the amount of traffic, the number of leads, conversion, cost per lead, and the average check size — components of the sales funnel that affect the final profitability of the business.
When you combine all the listed factors, we get an ideal location for your business — in the city center, with parking available and close to the metro. There are several cafes or restaurants around the location.
The determining parameters when working with digital traffic are the amount of traffic, the number of leads, conversion, cost per lead, and the average check size — components of the sales funnel that affect the final profitability of the business.
When you combine all the listed factors, we get an ideal location for your business — in the city center, with parking available and close to the metro. There are several cafes or restaurants around the location.
Conclusion
What are the elements of modern LBE VR? The question has been answered in this article. We have examined the key factors in choosing a location for a VR business, as well as analyzed several sources of potential traffic. In subsequent articles, we will explore the process of filling your location with attractions and auxiliary elements that can make your club a leader in the local entertainment market.
