Video games are one the most popular ways of driving fun by young people in Nigeria. As per that, starting the business is very profitable in any part of the country.
While a lot of youths love video games, many (over 90%) can’t afford a game console, not to mention a TV. This makes the only option a gaming center if they want to have fun playing games.
The game business in Nigeria is one of the fastest-moving and highly lucrative daily income business ideas. Once you open your shop in the morning, chances are you’ll start getting customers right off the bat.
From students to non-students who just want to have fun, you’ll get unlimited customers if you set up your game business the right way in Nigeria. And in this post, you’ll learn exactly how to do that to make the most money.
Here, from the cost of starting to the profitability, and steps to take to succeed, you’ll learn everything about the video game business in Nigeria. That’s not all, but we will also show you how to massively increase your profits.
So, without further ado, let’s get started!
Starting a Game Business in Nigeria
A video game business involves setting up a shop where people will come to have fun playing different kinds of video games including GTA, PES, Bike Race, Car Race, and so on for a fee.
This business is very profitable in Nigeria, and it moves fast, as the demand for the service is usually high among youths. The business is very easy to start and highly scalable. There is no limit to the amount you can make starting a video game business in Nigeria.
Related: How to Start a Football Viewing Center Business in Nigeria
How Profitable is a Video Game Business in Nigeria?
One common question asked by people looking to venture into the business is – is video game business profitable in Nigeria?
Of course, it is! Though the profitability is affected by many factors including location, and the cost of operation. The required equipment to start a game business in Nigeria are usually expensive, so you may need more capital to get them.
On the part of the location, the cost of playing games at gaming centers varies based on location. This cost usually ranges from N30 to N50 per game as of the time of curating this post. And with this business the more people play, the more money you’ll make.
After subtracting the cost of daily operations, on average you could make up to 5,000 profits per day from just one gaming center in Nigeria.
How Much Do You Need to Set Up a Gaming Center in Nigeria?
One thing that gets people stuck while looking to start a video game business in Nigeria is the capital required. Realistically, you need a reasonable amount of money to set up a gaming center.
There’s a lot of upfront investment to be made in a game business in Nigeria. So, while looking to start, you’ll need anything from 150,000 to 350,000 naira as capital.
Keep in mind that this varies based on location. For example, the cost of acquiring a shop in Lagos may differ from how much it costs in Asaba. Also, you’ll encounter some expenses along the way that may cost some money.
How to Start a Video Game Business in Nigeria
1. Do Your Research
Firstly, you want to start with market research, so as to get to understand the business. Since a video game business is just like every other business, you need to know what it takes to start.
Here, you’ll need to find out about the requirements to start in your area, the best location for the business, the best types of TV to buy, the best game console and version to buy, how to get them, and so on. You’ll also need to find out about the current fee charged per game in your area.
To get the best result out of this, it would be ideal if you meet someone already in the business, build a business rapport, and do your findings.
2. Arrange for Capital
During your research, you should find out about the more accurate startup capital needed to start and operate a video game business. Knowing that the next thing now is to source the fund.
If you already have a source of funding, you can tap into it to get started. However, if you don’t have up to the required amount, you can seek assistance through partnerships and loans from friends and family to get started.
3. Get a Shop
After getting your capital ready, the first thing you want to invest in is a shop. You can start with a small or spacious shop depending on how big you want to start.
Depending on your area and the amount of money you are able to raise, you can either find a space and build a shop or mount your kiosk or rent a shop. Also depending on your capital, if you want to build a shop, you can use less expensive materials like planks, and fairly new roofing sheets. Perhaps, you can arrange for a container kiosk to use as a shop.
Either renting or building a shop, make sure that the location is ideal for the business. Usually, you want to sit your shop in a busy area such as a student area. Also, make sure that the location has low crime records especially if your equipment like the television will be in the shop permanently (which usually is the case).
4. Get All Necessary Equipment
With your shop now ready, you need to get the required equipment to run the business. Here, you’ll need to budget a reasonable amount of money, as much of the equipment are costly.
Equipment Needed to Set Up a Video Gaming Center
Here are some of the equipment needed to start and operate a gaming center business in Nigeria.
- Game consoles
- Cable Wires
- Power Generator
- TV Shelves
- Extension Sockets.
- And so on.
5. Complete the Set Up
After acquiring all the needed types of equipment, the next thing is to set up your shop to look perfectly like a gaming center.
Here, you’ll need to set up the power supply, connect the TVs and game consoles, arrange the benches in order, place the fans in the appropriate spots, and so on. You can visit a game center to get inspiration on how to set up a gaming shop to look perfect.
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6. Get Started and Get Working
With everything now in place, you can now get started operating the business. Although a gaming center doesn’t need much advertisement to start getting customers, you need to come up with and implement a good marketing strategy for the business.
Some of the strategies you can use include:
Word of Mouth
The easiest and most effective way of marketing a video gaming center is through word of mouth. This involves letting people (usually kids and sports lovers) know that there’s a new gaming shop in town.
To make this strategy work, you’ll need to offer discounts, or charge cheaper fees at the start to entice a lot of people. Also, tell them to encourage their friends to come play with them.
Here you can let two people play, but charge the fee for one person. Perhaps, you can also let them play two or three games and get one free. This works like magic.
Promoting on Signboard
This is very much self-explanatory. You just need to find a board and write about your business. For example, “PES and GTA Available Here”, or “NairaRush Gaming Center”.
Expanding as You Grow
If you have reasonable capital, you can encompass other businesses such as phone charging, POS business, and recharge card business with the video gaming center business. This will help maximize your profits massively, and also make you more money in the shortest time with the business.
Related: How to Start a Phone Accessories Business in Nigeria
The game station business in Nigeria is one of the easy-to-start and highly profitable businesses. It can be started by anyone, and it is a good source of daily income. I believe this post on how to start a video gaming business will serve as a good beginner guide to help you get started and succeed.