{"id":1481,"date":"2019-12-17T07:57:36","date_gmt":"2019-12-17T07:57:36","guid":{"rendered":"https:\/\/enterthemission.com\/?p=1481"},"modified":"2024-10-04T05:18:35","modified_gmt":"2024-10-04T05:18:35","slug":"how-to-start-vr-escape-room-business","status":"publish","type":"post","link":"https:\/\/enterthemission.com\/blog\/how-to-start-vr-escape-room-business\/","title":{"rendered":"How To Start A VR Escape Room"},"content":{"rendered":"\n\n\t
A step-by-step guide for how you can create a business plan and implement it to get your VR Escape Room up and running from scratch.<\/em><\/p><\/blockquote>\n\t
\n
- Are you passionate about VR or Escape Games?<\/li>\n
- Does Location Based Entertainment (LBE) business appeal to you?<\/li>\n<\/ul>\n
Passion matters, but by itself\u00a0 it will not equip you to start your very own VR Escape Room from the ground up. We can help.<\/p>\n
We have simplified the process into logical steps to help you start your VR Escape Room business.<\/p>\n
First, you need to understand the projected market…consider what growth potential the VR Escape Room business has over the next few years.<\/p>\n
\n\t\tWhy should you go for a VR Escape Room at all?\n\t<\/h2>\n\t\t\t\t
\n\t
Technavio research<\/a> predicts that the Virtual Reality gaming industry will grow by an additional $1.48 billion by 2023.<\/p>\n
However, this rosy growth projection is not reason enough to invest in a VR Escape Room as these are a niche within the VR gaming market. So, we need to look at the interest people are showing in VR Escape Rooms.<\/p>\n
Google searches for ‘Escape Room VR’ have been growing in the United States as well as globally, which means that awareness and demand is increasing for Virtual Reality Escape Rooms.<\/p>\n\t\t\t\t
\n\t\tescape room vr United States All searches Google Trends\n\t\t\t\t
\n\t\tEscape room vr Worldwide All searches Google Trends\n\t
VR Escape Rooms are an exciting evolution of an existing, lucrative, and expanding business model, traditional Escape Rooms.<\/p>\n
Traditional Escape Rooms grew in number from 22 in 2014 to 2300 in 2019<\/a>; over 100x growth. And that’s just in America. Globally, that number is estimated at around 10,000<\/a>.<\/p>\n
That, coupled with the immense popularity of VR gaming, indicates that Virtual Reality Escape Rooms have the potential for huge growth over the next few years.<\/p>\n
If you are convinced, here is our comprehensive 5-step process to start your own VR Escape Room, divided into 2 parts.<\/p>\n
Part 1: Planning –<\/strong> You will draw up an entire plan of how you’re going to get your entire VR Escape Game business up and running from scratch.<\/p>\n
Part 2: Execution –<\/strong> You will implement your plan in a systematic way.<\/p>\n
\n\t\tPart 1 – Creating a business plan\n\t<\/h2>\n\t\t\t\t
\n\t
Creating a business plan is always the first step in starting any business, including\u00a0 a VR Escape Room.<\/p>\n
So, what goes into a business plan? How should one go about creating a business plan?<\/p>\n
A business plan is meant to be a bird’s eye view of your entire business.<\/p>\n
\n
- When you review your finished business plan, you should be able to spot anything you may have overlooked<\/li>\n
- If you’re thinking of asking investors or a bank for capital, they’ll want to see your business plan to study your business idea and decide whether it is viable.<\/li>\n
- A business plan is indispensable for reviewing your business in case of a setback or if you want to expand<\/li>\n<\/ul>\n\t
A business plan must include<\/p>\n\t
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- The potential market for the<\/strong>\n
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- VR Gaming industry (the general industry); and<\/li>\n
- The VR Escape Games industry (your particular niche) in brief<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
This will help you keep track of market trends and ensure your business plan is comprehensive.<\/p>\n
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- Your overall strategy<\/strong>\n
\n
- Target location<\/strong><\/li>\n
- Target demographics –<\/strong> gamers, people looking for VR experiences, corporate bookings etc.<\/li>\n
- VR Escape Games you want –<\/strong> tethered or free roam; arcades, VR-only or hybrid<\/li>\n
- Brand Image –<\/strong> What kind of impression do you want your premises to project and how you want to design them?<\/li>\n<\/ul>\n<\/li>\n
- A startup budget – <\/strong>the time and money required to build your VR Escape Room<\/li>\n
- Your operational plan –<\/strong> an idea of how you plan on running your Escape Room day to day<\/li>\n
- Your staffing plan<\/strong>\n
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- Game masters –<\/strong> remember, game masters in VR Escape Rooms must be familiar with the use of a computer and running and managing software.<\/li>\n
- Receptionist<\/strong><\/li>\n
- Customer service reps –<\/strong> who will field calls and online inquiries, handle bookings and take care of any non-Escape Room requirement of your players at your venue<\/li>\n
- Marketing team –<\/strong> who will create your marketing plan and handle your day-to-day marketing (email, social media, website etc.)<\/li>\n
- Management team –<\/strong> who will oversee the running of the Escape Room?. At the startup stage, the management team\u00a0 will likely be only you and your co-founders<\/li>\n
- Ancillary staff –<\/strong> like Janitors<\/li>\n<\/ul>\n<\/li>\n
- An operational budget –<\/strong> an estimate of what amount of money will be required for the day-to-day operations of your VR Escape Room.<\/li>\n
- A fundraising plan –<\/strong> common funding sources for a VR Escape Room startup would be\n
\n
- Your own money<\/li>\n
- Loans from family and friends<\/li>\n
- Loan from a bank<\/li>\n
- Funding from angel investors – private individuals looking to invest in profitable ventures<\/li>\n<\/ul>\n<\/li>\n
- Revenue and expenditure –<\/strong> Projections based on expected utilization and ticket price<\/li>\n
- Financial Timelines –<\/strong> An approximate timeline of how soon you think you can\n
\n
- Break even<\/li>\n
- Pay back your loans<\/li>\n
- Return your investors’ money<\/li>\n
- Be able to expand<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Now that we know what to plan for, let us see how one can plan systematically.<\/p>\n
\n\t\tStep 1 – Study your competition\n\t<\/h3>\n\t\t\t\t
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Whether you want to do it their way or your way comes later.<\/p>\n
If your competitors have been around for some time – that could indicate that their business model works. So, study them for clues as to what they’re doing right and look for areas where they are not as successful as they could be.<\/p>\n
Who will ultimately be more successful will depend on your skills as an entrepreneur and on your luck vis-a-vis theirs.<\/p>\n
\n\t\tStep 2 – Selecting the kind of VR Escape Room you want to open\n\t<\/h3>\n\t\t\t\t
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There are 3 major formats.<\/p>\n
\n\t\tVR Arcade\n\t<\/h4>\n\t
The phrase ‘arcade game’ typically refers to games that are publicly available and operate in a ‘pay to play’ format, which means that you pay a certain amount to rent the gaming booth or console for a set period of time during which you can play any game available in your booth.<\/p>\n
An arcade concept does not include any need to pay for any game in particular; the player pays to rent a booth for a set period of time and not a specific game (in most cases).<\/p>\n
In the VR Escape Game context, the setup is that you have multiple VR stations, all of which offer your entire VR game library.<\/p>\n
People pay you to rent a station for themselves and they can play whatever they want. Generally, these kinds of VR games can be licensed either directly from developers like vrCAVE<\/a> or Ubisoft or from distributors like Steam<\/a>, SpringboardVR, or Synthesis VR.<\/p>\n
Your customers will most likely be people who don’t have VR equipment at home but you may also attract some VR aficionados as customers so you will need\u00a0 to get a variety of very popular VR games and unique location-based games for your VR Arcade.<\/p>\n
VR arcades are in some ways following the path of the video game arcades of the 1980s. And, just like the video games arcades of the past, VR Arcades often explore multiple revenue streams by opening other gaming activities like laser tag and\/or adding food and beverage options.<\/p>\n
Many arcades are located in places with high foot traffic, like malls, to get walk-in players.<\/p>\n
Finally, Arcade VR Escape Games franchises<\/a> like Entermission are available, if you’re thinking of starting as a franchisee instead of as an independent business.<\/p>\n\t
Pros<\/p>\n\t\t
\n\t\t\t\t\t
- \n\t\t\t\t\n\t\t
VR Arcades are very economical space-wise. You can set up multiple VR stations within a short distance of each other because people remain at their own stations<\/p>\t\t\t\n\t\t\t<\/li>\n\t\t\t\t\t
- \n\t\t\t\t\n\t\t
VR Arcades are very economical space-wise. You can set up multiple VR stations within a short distance of each other because people remain at their own stations<\/p>\t\t\t\n\t\t\t<\/li>\n\t\t\t\t\t
- \n\t\t\t\t\n\t\t
VR Arcades are very economical space-wise. You can set up multiple VR stations within a short distance of each other because people remain at their own stations<\/p>\t\t\t\n\t\t\t<\/li>\n\t\t\t\t<\/ul>\n\t
Cons<\/p>\n\t\t
\n\t\t\t\t\t
- \n\t\t\t\t\n\t\t
VR Arcades are very economical space-wise. You can set up multiple VR stations within a short distance of each other because people remain at their own stations<\/p>\t\t\t\n\t\t\t<\/li>\n\t\t\t\t\t
- \n\t\t\t\t\n\t\t
VR Arcades are very economical space-wise. You can set up multiple VR stations within a short distance of each other because people remain at their own stations<\/p>\t\t\t\n\t\t\t<\/li>\n\t\t\t\t<\/ul>\n
\n\t\tVR-only Escape Rooms\n\t<\/h4>\n\t\t\t\t
\n\t
VR Escape Rooms like that of Bane Escape and Ubisoft are more like a traditional Escape Rooms.Teams pay to rent out an entire room.<\/p>\n
Each room may have a single VR Escape Game or a menu of games but in this case teams don’t rent one VR station in a large area; they rent an entire room.<\/p>\n
Typically, these kinds of Escape Games are designed to accommodate a maximum number of players at a time, just like a traditional Escape Room.<\/p>\n
However, this is where the similarities with a traditional Escape Room end.<\/p>\n
Whereas a traditional Escape Room would contain a real-life game space with real physical objects and puzzles, a VR-only Escape Room has only chairs for the players to sit on, VR headsets, controllers and headphones and the escape elements exist only in the virtual worlds.<\/p>\n\t
Pros<\/p>\n\t\t
\n\t\t\t\t\t
- \n\t\t\t\t\n\t\t
Physical haptics, environmental effects like wind, heat, and smell make this format more immersive than VR Arcade Escape Games (Not all VR Escape Rooms are able to offer this)<\/p>\n\t\t\t<\/li>\n\t\t\t\t\t
- \n\t\t\t\t\n\t\t
It may allow for more complex interactive games that require real time communication between players. <\/p>\n\t\t\t<\/li>\n\t\t\t\t\t
- \n\t\t\t\t\n\t\tBecause teams have the entire room to themselves and they are in shared experiences, team communication and team bonding is enhanced in VR-only Escape Rooms
\n\n\t\t\t<\/li>\n\t\t\t\t\t- \n\t\t\t\t\n\t\t
It will appeal to both people looking to play in immersive VR experiences as well as more experienced Escape Room players<\/p>\n\t\t\t<\/li>\n\t\t\t\t\t
- \n\t\t\t\t\n\t\t
VR Escape Rooms by nature require smaller space to setup games, however Entermission VR Escape Rooms can be setup in 1\/4th the space that is required by normal VR Escape Rooms. <\/p>\n\t\t\t<\/li>\n\t\t\t\t<\/ul>\n\t
Cons<\/p>\n\t\t
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- \n\t\t\t\t\n\t\t
As with all things technology, there can be functionality issues from time to time, which may require you to keep a technician on standby<\/p>\n\t\t\t<\/li>\n\t\t\t\t<\/ul>\n
\n\t\tHybrid VR Escape Games\n\t<\/h4>\n\t\t\t\t
\n\t
These are still VR Escape Games, but enhanced. These Hybrid VR Escape Rooms take immersion a step further by adding real world aspects into the gameplay.<\/p>\n
For example, if the game has players experiencing an explosion, their gaming chairs can rumble with the inclusion of physical haptic devices and they can feel the wind and heat on their faces. They can even smell realistic scents in the air, such as gunpowder or smoke.<\/p>\n
The players are still in the virtual world, wearing their headsets but the real-world input boosts immersion immensely because it activates their senses.<\/p>\n
Typically, these Escape Games (like Bane Escape), would embrace the ‘free roam’ concept – the equipment is completely wireless and the players can roam the room freely, further boosting the immersion.<\/p>\n
This kind of VR Escape Game can be described ‘multi-sensory’ since it tries to engage multiple senses of the player; they are also called ‘hyper reality’ by The VOID.<\/p>\n\t
Pros<\/p>\n\t\t
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- \n\t\t\t\t\n\t\t
The immersion is of the highest level<\/p>\n\t\t\t<\/li>\n\t\t\t\t\t
- \n\t\t\t\t\n\t\tThe possibilities for game design are the widest, players can fly, solve interactive puzzles, explore amazing worlds
\n\n\t\t\t<\/li>\n\t\t\t\t\t- \n\t\t\t\t\n\t\tEven with cheaper equipment, the chance of this being replicated in a home setting is remote – because of the extensive space you need.
\n\n\t\t\t<\/li>\n\t\t\t\t<\/ul>\n\tCons<\/p>\n\t\t
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- \n\t\t\t\t\n\t\t
It is still a developing concept. Most people have not experienced good VR, so they may not realize the immersion potential of Hybrid VR Escape Games. <\/p>\n\t\t\t<\/li>\n\t\t\t\t\t
- \n\t\t\t\t\n\t\t
Typically, the rooms required are larger (Bane Escape, Ubisoft, Escape Virtuality etc) to enable players to take full advantage of the ‘free roam’. In other words, you need to give players more room to walk around in. This isn’t the case with VR Escape Rooms like Entermission that require as little as 170 sq ft, to setup a 6 player game. <\/p>\n\t\t\t<\/li>\n\t\t\t\t<\/ul>\n
\n\t\tStep 3 – Selecting a location\n\t<\/h3>\n\t\t\t\t
\n\t
One of the first considerations is determining where you’re going to locate your VR Escape Room.<\/p>\n\t
What factors should you consider when selecting a location:<\/p>\n
\n\t\tWhat kind of foot traffic does it have?\n\t<\/h4>\n\t
In an area with existing, high foot traffic, you can expect a high percentage of walk-ins. This is particularly important for VR Arcades.<\/p>\n
A high foot traffic area could also lead to more brand awareness.<\/p>\n
It’s also more likely that there are a lot of public transportation options that players can use to reach you.<\/p>\n
\n\t\tWhat kind of facilities does it have?\n\t<\/h4>\n\t
Common public facilities are great assets to help any business attract customers.<\/p>\n
The facilities you should consider are<\/p>\n
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- Ample car parking options<\/li>\n
- An elevator, if you’re not on the ground floor (as unlike physical escape rooms, VR Escape Room options like Entermission which offer a sit-and-play option can cater to people with disabilities)<\/li>\n
- Accessible to local area, proximity to main roads<\/li>\n
- Wheelchair-friendly access<\/li>\n<\/ul>\n
\n\t\tIs it an area with a lot of offices and corporations?\n\t<\/h4>\n\t
Having a lot of offices and corporations near you could work be good to bad.<\/p>\n
\n
- On the plus side, the people working in those offices may be candidates for booking\u00a0 a company event or a team building event<\/li>\n
- On the negative side, rents are likely to be higher in such an area<\/li>\n<\/ul>\n\t\t
PRO TIP<\/p>\n\t\t\t
When you are looking at rents, make sure that you compare it with your expected profit per sqm\/sq ft. More on this later.<\/p>\t\t\n
\n\t\tIs it near a university that teaches, programming and\/or marketing?\n\t<\/h4>\n\t
If you set up shop near such a university, look into whether you could offer internships to students<\/p>\n
\n
- The students get a paying gig and real-world work experience<\/li>\n<\/ul>\n
Who knows, some of them might end up becoming great future employees.<\/p>\n
\n\t\tIs it an area with other entertainment centers?\n\t<\/h4>\n\t
Once again, this can work both ways.<\/p>\n
\n
- On the plus side, you may be able to network with the owners of the other entertainment centers, developing an arrangement to refer customers to each other or cross promote your businesses<\/li>\n
- On the negative side, you would be competing with these entertainment centers to attract the same customers.<\/li>\n<\/ul>\n
\n\t\tCan the site house your VR Escape Room equipment?\n\t<\/h4>\n\t
For a VR Escape Room you will need to account for having adequate dedicated space to house a bunch of electronic equipment (like VR headsets and backpacks) and high end computers\/servers.<\/p>\n
This hardware will need\u00a0 to run smoothly and you need to protect it from getting overheated. So, you need to consider ventilation when selecting your location. Or you may need to run a cooling system constantly.<\/p>\n
\n\t\tWill you be able to expand?\n\t<\/h4>\n\t
Sooner or later you may want to expand your VR Escape Room. You may want to add more games; or increase capacity; or add other facilities, depending on consumer response and feedback.<\/p>\n
This is something you should plan for in advance, right when you are selecting your location so that you don’t find yourself quickly outgrowing your premises.<\/p>\n
\n\t\tFinally, look for these features to cut costs\n\t<\/h4>\n\t
There are some features that a VR Escape Room does not need and a location without them could cost less.<\/p>\n
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- Few to no windows – you don’t want your game rooms to have windows<\/li>\n
- Basement – there is nothing wrong with having a basement Escape Room; in fact, if you have a horror or thriller theme, you can make your basement location a part of your appeal<\/li>\n
- In need of refurbishment – you’re going to decorate it anyway to fit your theme so you may as well look for a barebones location to drive costs down<\/li>\n<\/ul>\n
\n\t\tStep 4 – Selecting your VR Escape Room games\n\t<\/h3>\n\t\t\t\t
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\n\t\tWhich VR experiences are best for a VR Escape Game business?\n\t<\/h4>\n\t
The answer depends on what kind of customer you are expecting:<\/p>\n
\n
- One demographic will be players who have had little to no VR experience. They would likely be happy with any VR content you provide.<\/li>\n
- The other kind would be the Escape Room aficionados who would be very picky about the kind of game they play<\/li>\n<\/ul>\n
As VR headsets and other equipment becomes affordable over time,you may need to continue to innovate to provide something better or different from what people can do with their home VR setup.<\/p>\n
Escape Room enthusiasts may find a typical zombie <\/i>VR game bland is it doesn’t include\u00a0 puzzle-solving and creative collaboration among team members.<\/p>\n
\n\t\tDo you want to consider licensing or franchising?\n\t<\/h4>\n\t
The fundamental difference is that you can acquire individual games and develop a unique theme for your own VR Escape Room on license; if you go for a franchise, however, you need to follow the often strict guidelines required by the franchisor.<\/p>\n
There are a lot of legal differences between the two and that can vary according to jurisdiction.<\/p>\n
Typically, a franchisor may assist you in a number of areas, including technical help, training for your employees, site selection and rent negotiation, marketing and so on.<\/p>\n
A licensee on the other hand will mostly concentrate on technical assistance.<\/p>\n
<\/p>\n
The primary question you need to ask yourself is this: how much assistance would you want or need in setting up your Escape Room?<\/p>\n
If you have business experience; or if you’re very independent and want to launch something that’s completely yours, you should go for licensing.<\/p>\n
On the other hand, if you want extensive guidance through the process of setting up your very first Multiplayer VR Escape Room, you should explore franchising.<\/p>\n\t\t
PRO TIP<\/p>\n\t\t\t
Just like with any other entertainment center, you need to offer games that absolutely enthrall players and make a very compelling case for them to return to and refer your VR Escape Room to their friends.<\/p>\t\t\n
\n\t\tDemographic factors and adding new games\n\t<\/h4>\n\t
You also need to appeal to various demographics from newbies to veterans, from group of college kids to corporate groups, as well as attracting a range of ages if you can.<\/p>\n
Finally, try to connect up with a VR game developer who keeps releasing new games on a\u00a0 regular basis.<\/p>\n
One of the biggest advantages of having a Virtual Reality escape room is that you can introduce a new game simply by installing the game on your VR equipment. You will not need to get new hardware every time you introduce a new game.<\/p>\n
If your game developer keeps releasing new games periodically, you can choose which ones to include at your VR Escape Room.<\/p>\n
The barrier to entry in the VR gaming industry getting lower, so unless you can offer fresh content periodically your VR Escape Room will not maintain the competitive edge it needs to defend against your competitors.<\/p>\n\t
Game developers are going to great lengths to create compelling content<\/i><\/p>\n\t
A game called Keep talking and nobody explodes<\/i><\/a> has a scenario in which players need to defuse a time bomb The catch? Only the player handling the bomb can see it. However, players with the manual on how to defuse the bomb can’t see what the bomb guy is doing.<\/p>\n
Now, you might think most people would get frustrated a few minutes into the game because they can’t see what the guy defusing the bomb is doing. Or you might think that this is just a gimmick with no content value.<\/p>\n