How to Start an Entertainment Business?

The location-based entertainment market has been steadily growing throughout the last decade, reaching a massive $5.17 billion despite the effects of the Pandemic. Fortune Business Insights estimates that the industry will grow at a CAGR of 20.9%, expanding to $23.3 billion by 2032. These numbers are quite impressive.

An entertainment center is a solid investment for any aspiring entrepreneur. For starters, the McDonough School of Business at Georgetown University conducted a meta-study of happiness, revealing that most people are happier when spending money on experiences instead of goods.

Recently, a strong shift toward virtual reality (VR) became significantly more pronounced, with the global LBE VR market reaching a massive $3.97 billion in 2024. It is expected to grow at a CAGR of 26.4% and reach a $20 billion valuation by 2032, according to Persistent Market Research.

Opening a solid franchise business can be quite difficult for newcomers who do not have any experience in entrepreneurship. Nonetheless, it is possible to get started with a reliable money-maker like a virtual reality entertainment center if you find trustworthy providers and focus on building lasting partnerships within the sector.

Let’s talk about how to start a business with Anvio VR:

1. Start with a concept. Identify your target audience, viable attractions, and opportunities to open a franchise business.
2. Develop a business plan. Contemplate consistent revenue streams, cost structure (rent, staffing, franchise business payments, etc.), and an appropriate funding strategy.
3. Select a nice place. LBE stands for location-based. This means that your entertainment center should be situated in a place where a virtual reality franchise business can thrive: with high foot traffic, sufficient space, and compliance with regulations.
4. Design the experience. A virtual reality entertainment center must have an identifiable personality and theme to stand out. Think about the experience, proper integration of virtual reality technology, crowd-pleasing attractions, and safety.
5. Acquire the necessary permits and licenses. A reliable virtual reality franchise business partner will give you the necessary guidance and advice. However, it is up to you to figure out what you need to run an entertainment center locally.
6. Procure the equipment and prepare the space. You will need virtual reality gear, safe play zones, and excellent software for your LBE business.

These are the foundational steps, but pre-opening marketing, branding, grand opening, and scaling are also important phases. Now, you know how to start a business, but there are many other questions to figure out.

Identifying the most popular attractions for virtual reality entertainment centers is one of the most important processes for someone interested in starting an LBE franchise business.
Currently, LBE business owners have several options to choose from:

• Quest rooms are solid options that require a lot of preparation, manual labor, and involvement on the part of owners.
• Typical physical attractions like rides and rollercoasters are associated with higher safety-related expenses and larger space requirements.
• The virtual reality franchise business is a highly flexible option that allows you to quickly adapt by switching themes and enhancing your entertainment center with state-of-the-art games.

When it comes to figuring out how to start a business in the LBE sector, the importance of creating something that can stand out on its own and remain relevant for years takes center stage. While quest rooms can be launched on a tight budget, they often fail to attract a recurring audience. Entertainment centers with physical attractions demand a massive upfront investment.
Virtual reality franchise businesses seem to be more advantageous due to multiple reasons:

• Initial investments are significantly lower compared to a physical park with rides and rollercoasters.
• Unlike arcades and theme parks, you can easily switch design, experience, and types of attractions.
• According to Team Lewis' research, over 75% of Gen Z and 53% of millennials use or have used VR.
• Multiple sources of revenue and premium prices higher than movie tickets per session.
• Repeat customer potential is quite significant. Regular updates encourage consistent visitation.

Premium pricing is one of the biggest advantages that virtual reality LBE entertainment centers have. A franchise business in this sector does not face severe competition and can be quite aggressive with prices.

Initial expenses vary by region, but usually fall within the range from $3,500 to $4,500 for equipment per play zone. This particular price is for a 10x10 m virtual reality space that comes with 6 VR helmets, 1 PC, and Wi-Fi. If you want to start a franchise business, this is not a bad price at all!

With an upfront investment of just $20,000, you can start a viable franchise business that generates close to $16 per square foot (average return) and will recoup the costs in just 12 months with full occupancy.

As mentioned previously, your location must have several important perks:

• High foot traffic is important to attract visitors organically.
• The space must be sufficient to situate a play zone (at least a 5x5 m arena).
• The building must be compliant with local safety regulations.

A franchise business must offer the same user experience across all locations. For an entrepreneur, it means that all virtual reality equipment should be powerful enough to run all games smoothly. You can start an entertainment center with the help of Anvio VR specialists. The company sells proper tech without a markup.

Opening a standalone entertainment center can be a viable option for many entrepreneurs. However, an LBE business requires support, proper marketing, and regular updates to stay relevant. All franchisees of Anvio VR receive these services as a bonus.
Here are the benefits:

• Established brand recognition. Anvio has 55 LBE entertainment centers in 42 cities across 15 countries.
• Reduced risks due to using a proven franchise business model, receiving help at the start of your journey, and enjoying preexisting demand.
• Training and operational support are invaluable if you are just learning how to start a business in the LBE virtual reality sector.
• Faster launch, better scalability, networking, and experience sharing. A franchise business owner enjoys all these perks.

Among the downsides, relatively high royalties, limited flexibility (due to franchise business rules and guidelines), and dependence on the reputation of the larger brand can be quite noticeable.

While virtual reality locations do not need any significant advertising due to the novelty and low audience penetration in many regions of the world, it is still important to know how to promote your entertainment center and its attractions as well as possible.

Here are some viable options:

• SEO and content marketing are still reliable tools. You can run a blog describing attractions or focus on SEO-heavy articles.
• Social media advertising for attractions and your LBE entertainment center can be a great way to raise awareness among potential customers.
• Partner with local businesses. A good example is creating educational attractions and partnering with libraries and schools.
• A grand opening with free demos also works well. A franchise business can acquire its first customers by offering samples of experience free of charge.

An LBE entertainment center should be focused on attractions that can capture the minds of repeat customers with memorable experiences. However, they must have it for it to work. Heavily promoting these virtual reality attractions is incredibly important.

The LBE VR sector is expected to grow at a CAGR of 26.4% and reach at least $5 billion by the end of 2025. It is an excellent opportunity to open a franchise business and create memorable attractions to stand out from the crowd and secure repeat clients.

If you are interested in creating a great location, focusing on advanced virtual reality products is a solid plan. Innovations often lay the foundation of a business that persists through decades.

Don't miss the chance to open a successful business with the Anvio VR franchise!