Start a laser tag business by following these 10 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your laser tag business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Check out our How to Start a Business page.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a laser tag business?
A laser tag facility requires a significant amount of square footage and equipment. Therefore, start-up entrepreneurs are urged to set a budget of $115,000 to $252,000, depending upon region and the specifics of the arena course.
Your budget should include the following:
- Lease building - 5,000 to 6,000 square feet is recommended for interactive course in a standalone building.
- Obstacle course build-out - $40,000 to $100,000
- Obstacle course decor - $72,000 to $104,000
- Point of sale/management software and other miscellaneous items - $9,000 to $22,000
- Laser tag equipment - Guns, vests, scoring software, obstacles for play area. Each taser and vest will set you back $2,000.00 to $5,000.00. Indoor facilities should have an inventory of thirty to forty guns and vests.
If you lack industry experience and are looking for support in this business endeavor, consider investing in one of the many franchise opportunities. Franchise owners frequently offer financing options and can provide valuable insight that could help get your business off the ground in less time.
What are the ongoing expenses for a laser tag business?
Laser tag business owners report an annual cost of $230,000 to $265,000 for operating expenses. These ongoing expenses include:
- Facility lease
- Utilities, phone, etc
- Maintenance, repair, and replacement of equipment
- New game software
- Bank and credit card fees
Who is the target market?
While individuals of every age group enjoy laser tag, your core demographic will be aged six to fourteen. Your younger players enjoy the full experience, immersing themselves in this fun-filled, adventurous world.
With proper arena design and a sound marketing strategy, your business does have the potential to attract adults. Your adult customers are there to challenge their co-workers, enjoy an evening out with friends, or compete against others who take the game more seriously.
How does a laser tag business make money?
Laser tag businesses charge a fee per person for each game played.
How much can you charge customers?
Typically, laser tag will be conducted in timed games and consumers will pay per game. Games last an average of five to seven minutes. The standard price for one game is $8-$15, with a discount added for each additional game or packaged options offered.
How much profit can a laser tag business make?
A profit of $40,000 to $100,000 is achievable within the first three years of ownership. This requires a well-designed facility, a strong marketing strategy, and at least sixteen laser guns in play forty-five hours per week.
How can you make your business more profitable?
To realize long-term growth and success, laser tag arenas must keep things fresh and exciting. Consider implementing these strategies to improve overall profits:
- Endorse competitive events. This establishes a recognizable name for your organization and assists in consistently attracting new and repeat customers.
- Start a league
- Host tournaments
- Add a food court
- Make the entire facility available for large group events
- Offer additional entertainment, such as video games, paintball, and mazes
- Offer redemption tickets for your additional entertainment
- Include mobile laser tag as an extension of your business
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Laser Tag Business Name Generator
When registering a business name, we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It's very important to secure your domain name before someone else does.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your laser tag business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a laser tag business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For more information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Release of Liability
To avoid liability and potential lawsuits, laser tag businesses should have their clients sign a release of liability. Here is an example of one such form.
Recommended: Rocket Lawyer makes it easy to create a professional release of liability form for your laser tag business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.
Certificate of Occupancy
A laser tag business is generally run out of a warehouse. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease a location:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a laser tag business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued
- If you plan to purchase or build a location:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your laser tag business will be in compliance and able to obtain a CO.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
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How to promote & market a laser tag business
Established laser tag businesses recommend budgeting for $2,000 to $5,000 per month for your marketing strategy. Because laser tag is enjoyed by so many different types of people, you will need to tailor your marketing efforts towards each demographic.
Your presence in the community will be an integral component to building a loyal following. Consider donating your time and facility to ill and/or disabled children, churches, and other local charities. This goodwill should result in a symbiotic relationship that benefits both for years to come.
Parties and events are a great revenue generator for laser tag facilities. Direct mailers and faxes are effective methods for attracting large groups. Focus your efforts on corporate event coordinators, schools, sports organizations, and churches, emphasizing laser tag as a fun, team-building exercise.
To attract walk-in patrons, partner with a local pizza restaurant. Ask them to attach coupons to the outside of their boxes, either for a fee or in exchange for reciprocal services. Additionally, your business should have an informative website and maintain a consistent social media presence.
Two weeks prior to the grand opening, start advertising on radio stations, during your local news, and through printed mailers. Make sure the local media is present during the event, inviting one of the radio stations to broadcast live. Partner with other small businesses within the community to offer special promotions and gifts for your first seventy-five to one hundred patrons. This inexpensive strategy gets your name out in the community and supports other local organizations.
How to keep customers coming back
It’s important to remember that your target demographic spans a large number of age and interest groups. To encourage positive word-of-mouth, it is recommended that you allocate a portion of your monthly marketing budget for rewarding return customers. A rewards program that offers prizes for each level met has proven effective. You could also award coupons or prizes to players who return with new customers. This relays the message that you value your customers and incentivizes them to share your facility, and their positive experiences, with others.
Strong customer service is critical to the strength and growth of your laser tag arena. To assist in customer retention, employ of team that is friendly, helpful, and dedicated to ensuring a positive customer experience. Keep the game interesting by rearranging the arena and adding new features. It is also recommended that you schedule routine maintenance on all equipment to ensure everything is in working order at all times.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use.
Recommended: Find the best phone system for your business; check out our review of the Best Business Phone Systems 2021.
Start A Laser Tag Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
Those who are intrigued by technology, entertaining, and interacting with many different people are best suited for this business venture. If you enjoy a high energy work environment, a laser tag operation might be perfect. For many, the idea of owning and operating a laser tag business has been a longstanding dream and, with the proper preparation, this dream can become a reality.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a laser tag business?
Upon opening your business, you will likely want to take a more active role in the day-to-day operations of the facility. As the arena starts to generate more revenue, additional members of your team can be added to take over management of your enterprise.
The following tasks will require your attention on a regular basis to ensure your laser tag business’ success:
- Speaking with current and potential clients who are interested in hosting events at the facility.
- Routine maintenance and repair of equipment
- Safety check of laser tag course
- Checking inventory and place order for items you are low on
- Networking and marketing to build a loyal customer base
- Managing staff and vendor interactions
- Administrative and accounting duties
What are some skills and experiences that will help you build a successful laser tag business?
Each day, you will interact with customers, your staff, and those that fit the marketing profile. Therefore, you must possess strong leadership skills, particularly in communication and delegation. An understanding of the target demographic would additionally help solidify your marketing and networking skills, as well as ensure a playful and fun experience for each customer. To ensure long-term growth in this industry, strong strategic business management skills would also prove beneficial.
To get a feel for the business, customers, and how you want to design your facility, entrepreneurs are urged to spend some time working in the industry. The Laser Tag Convention is an annual event that offers business owners insight into industry standards and trends and is a great way to network within the community. Additionally, the Laser Tag Owners Association is a wealth of information for those just starting out in the industry.
What is the growth potential for a laser tag business?
As one of the most profitable businesses in the entertainment industry, laser tag facilities generated over $375 million dollars in the United States last year. This industry offers a profit margin of up to 40%, further demonstrating its earning potential.
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Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a laser tag business?
Industry leaders offer the following advice:
- Never underestimate the importance of your equipment. It should be light enough to be carried by children, yet heavy duty enough to attract competitive laser tag enthusiasts. Hit accuracy range between phasers is critical.
- Before investing in equipment, research the manufacturer. Testimonials offer valuable insight into equipment quality, as well as manufacturer support.
- The look and overall design of your facility, particularly the obstacle course, is equally as important.
- Keep in mind that this is a limited occupancy activity. To ensure adequate space, industry leaders recommend approximately 166 square feet per player.
- Consult with a contractor before committing to a building. Specific safety and construction guidelines must be met.
- Adjust your hours to accommodate your demographic.
- To reduce liability exposure, have each patron sign a waiver before entering the laser tag course.
How and when to build a team
Your team should consist of: a general manager, two to three shift managers, laser tag attendants, and party hosts. Before opening your doors, carefully interview prospective employees. Your team can consist of individuals from all age brackets; just make sure each member of your staff is properly trained on the equipment, safety, and rules and regulations. They are also the face of your business and must contribute to each patron’s positive experience.