GAMING BUSINESS

In recent years, the gaming industry in Nigeria has become a lucrative business venture. With an estimated market worth of over $100 million, it's no surprise that more and more entrepreneurs are looking to invest in this sector.

If you're considering starting a gaming business in Nigeria, there are several factors you need to take into account. Here are some tips and costs that you should consider when starting a gaming business in Nigeria:

1. Conduct Market Research: The gaming industry is highly competitive; thus, it's essential to have a clear understanding of your target market, industry trends, and competition. Research is essential in understanding the demand for video games, esports, mobile applications, and online games. You need to know the preferences of your target audience, such as games that are most popular among them and the price they are willing to pay for your service.

2. Create a Business Plan: Once you have conducted thorough market research, you need to create a business plan that outlines the purpose, management, operations, and marketing strategy of your gaming business. Your business plan is a roadmap that helps you determine your financial projections, startup cost, marketing strategies, and target demographics.

3. Choose the Right Location: The location of your gaming business can contribute to its success or failure. You need to consider factors such as accessibility, security, and visibility. A good location for a gaming business is in populated areas with fewer competitors and enough space to accommodate your target audience.

Operational and fixed costs

Regardless of whether you choose to operate a single lounge or several, hire staff, or run the business with family (not recommended), you must realize that you will have to spend a considerable sum of money.

Before starting a gaming business, you must take into account the daily operating expenses. You would need to think about how you want to manage your lounge.

Which energy supply would you rely on?

How will you make game updates to stay current?

Do you intend to offer nearly all game sets, or would you want to continue with outdated sets like FIFA franchises?

The annual rental fees that you will have to pay are another thing to take into account.

4. Equipment and Infrastructure: The equipment and infrastructure you need depend on the type of gaming business you want to start. For instance, if you plan to start an e-sports center, you need better-quality gaming PCs, gaming consoles, controllers, and high-speed internet connectivity. If you're starting a mobile application gaming business, you must invest in software development and mobile application testing.

5. Legal Structure and Business Registration: You need to register your gaming business with the Corporate Affairs Commission (CAC) in Nigeria. In doing so, you'll receive a certificate of incorporation and fulfill all legal requirements for starting a business in Nigeria.

6. Staffing: There is a need to hire staff to manage and run your business effectively. You need to hire skilled technicians, marketing experts, customer service, and security personnel. Having a friendly and knowledgeable staff can create a more welcoming environment for your customers.

7. Marketing: Developing a comprehensive marketing strategy is essential for the success of your gaming business. You can use social media, websites, billboards, and advertisements to reach your target audience. Partnering with top gaming influencers

The Best Games And Game Providers

You must realize that despite the large number of video games you may stack up in your living room, Nigerians have their favorites, fortunately most of which are rather universal.

FIFA, ePES, God of War, GTA, and a few other game sets are among the most popular ones.

You must be aware of the games that the Nigerian market enjoys and make sure you have access to them. You might also list additional well-known franchises like Mortal Kombat, the W2k series, and so forth.

Is Gaming Business Profitable?

Rough Cost Analysis

Yes, it is, and you could create an empire with it with a solid business plan that includes a three-year revenue analysis.

Football matches used to last 10 minutes and cost only 50 back then.

The same period of time now costs between $100 and $200.

You should have $10 for the day if you assume that a video game costs $100 and that a 100-game set is played every day.

You would have 60,000 yen for the week if you had a 6-day workweek firm.

You would have 40,000 to 45,000 if running costs were approximately 15,000 to 20,000 (the greatest potential running cost when there are unforeseen repairs) each week.

40, 000 X 4weeks = 160, 000 monthly

160, 000 X 12 months = 1,920,000 Gross profit

Ideal Operation-Fixed Cost Include:

Rent = 20,000 monthly X 12 months = ₦240,000 annually

Miscellaneous yearly expenses = ₦ 100,000

Net Profit = 1,920,000 – 340,000 = 1,580,000.

At the conclusion of the month, you are still a millionaire.

But keep in mind that this study is predicated on the assumption that at least two game sets are available and that the lounge is open from 8 am to 8 pm.

Additionally, opening additional branches may help you earn more money over time.

Also keep in mind that if a new branch were opened, this would have an impact on the projected earnings for the year.

EQUIPMENT YOU NEED FOR A GAMING BUSINESS

• Game Consoles (PS2 OR PS3, XBOX360, and many more)

• TV Set(s)

• GamePads

• Step-down Adaptors.

• Tables and Chairs.

• UPS

• Generator power Set

THINGS TO AVOID WHEN STARTING A GAMING BUSINESS

Not having a written rule prohibiting school uniformed teenagers from entering the lounge as this can lead to their parents’ harassment.

No written and signed non-refundable policy for games played’

Not having a written statement that emphasizes that you run a legal profit-yielding business, have the right to operate without any restriction, and will not bear responsibilities for customers' game spending.

Not printing a signed document with headings “RULE OF ENGAGEMENT” and ensuring that it is easy for lounge visitors to see them.

Not Prohibiting teenagers and kids between the age of 8 to 18 from accessing your lounge during school hours.

An additional piece of advice, you should be aware that, as is the case with a gaming business in Nigeria, the climate or nation in which you operate a business may have a big impact on it.

Naturally, a gaming business should be just like any other regular legal business, but the public's opinion of gaming lounges gives the impression that it is unlawful, which is completely false.

The two major issues that you would probably have in your business are dealing with the parents of players and unauthorized police raids.

This section focuses on solving these two key issues to help you run a profitable business without suffering needless losses.

The advice will be split into two sections: one general piece and one focused on addressing