Starting a local games rental/selling shop, Need advice...?

Question

I am looking at setting up a local games rental shop in my local town as there are none yet and alot of people who play games...

All advice would be very much appreciated as it will go forth into my business plan.

Some quick questions i would like to ask...

1. Where would i source the rentable games, would i need a licence to rent them and where could i find the licence?

2. Where would i source the games to sell, also would i need a licence for this, and where could i obtain the licence if so?

3. How much money would i be looking at spending to start it off? I have a fair bit saved up in a savings account but a rough estimate would be excelent.

Any other info relevent on this issue would be great!

Thanks in advance! Matthew

Answer 1

I could not begin to answer your question but i hope that you will not mind if i make a comment

Everyone who has a strong interest in something like games playing, jigsaws, model cars, artist teddy bears, artist cards etc at some time toys with the idea of setting up a shop for those things as there is nothing in the area serving it.  Usually there is a good reason for that - it would not make a living wage.

You say that there are a lot of games players in your town, now that may well be so, but what you REALLY mean is that most of your friends are games players.  To set up a business in this field would involve quite substantial start up costs for stock alone. You then have the rental of the premises, fitting it out, advertising, heating, lighting and water rates, plus local authority business rates, insurance etc  Then of course wages for you and any assistant. Plus the serivices of an accountant.

In the small country town i live in - population around 10,000 - we have had a succession of small 'specialist' shops open. Every single one has failed due to the owners under estimating start up costs and ongoing costs, and overestimating the market for their goods.

Answer 2

Sorry I can't help you for setting up a store from scratch, but have you looked at contacting one of the big DVD / Games rental companies and setting up a franchise with them to start with? That way they will take care of the licenses and early stock, so you can test your market. I know MovieBank does that in the UK (and Cinebank in France - I have a card to our local one there), but I'm sure there are others.

Although, I expect some could be scams, so ask them for their nearest franchise and go have a look / talk to the owner to see what their opinion is.

Good luck

Answer 3

Hi Matthew.

Sounds like a great idea that you have.

Take care, and be cautious, there can be lots of problems with regard to a licence, and also copyright issues.

Not trying to put you off, but you need to get everything in place before you start. Do not rush things, take it one step at a time.

With regard to finance, my motto has always been, never exceed what you can afford to loose.

Take advice from professionals, they will help you, but make sure they are not going to charge you all your savings to get started.

I wish you all the best, and good luck with your new venture, but please take care, think things out,a week of thinking can save years of worrying.