Virtual reality equipment rentals
Virtual reality equipment rental business plan
Dec 29, 2024
Arena Systems Inc.
Opportunity overview�Opportunity cost�Minimal viable product�Minimal viable marketing plan
Tracking & KPIs
Bonus resources
01
02�03�04�05�06
Opportunity overview
01
Opportunity overview�Setting the stage
What we do
Provide cutting-edge VR headsets to bring immersive experiences to business events.
How we do it
By purchasing equipment at below market value, packaging VR experiences and offering it to commercial event planners.
Why we’re doing it
Enterprises have a massive appetite for bringing virtual reality to their next event. We've identified a notable opportunity when it comes to offering easily bookable virtual reality experiences.
Virtual reality equipment rental business plan
What
Why
How
Bringing virtual reality to a business event is an easy way to "wow” attendees & employees. That said, for most businesses, renting VR equipment on an as-needed basis for events is always a more logical decision than purchasing outright.
Without the right tools or experience, it can be next to impossible for a businesses to host it’s own VR experience. Paying a small premium to hire professional junk haulers is worth any possible cost savings that could come from doing it yourself. Especially for affluent customers.
Opportunity overview
Running a virtual reality equipment rental business
VR selling opportunities
Some of the potential services available for cross-selling.
Opportunity cost
02
Opportunity cost: The value of one alternative relative to the value of the next best alternative.
This cost is not always financial. It makes consideration of market competition, penetrability, startup costs, time to validate the idea, and more.
At Arena, we don’t explore high opportunity cost ventures; virtual reality equipment rentals aren’t one of them.
Opportunity cost
Opportunity cost�Arena opportunity Venn
Virtual reality
rental company
Low startup cost
Negligible operating costs
Unconventional
Virtual reality equipment rental business plan
The virtual reality equipment rental business is unconventional and it’s high ticket customer base make it an opportunity worth considering. Renting VR equipment to clients involves negligible labor & operating costs, since the equipment costs are fixed, and labor costs are negligible relative to the average expected transaction size.
VR equipment is sometimes costly, but it’s high profitability justifies the required acquisition costs. VR equipment repair expertise is not required, since maintenance can be outsourced to a third party.
Despite it’s “boring” B2B nature, our mouths water at the thought of exploring this idea.
Minimal viable product plan
03
Minimal viable product plan
Plan
Do
Act
Check
Virtual reality equipment rental business plan
Resource: Learn more about the DPCA framework.
Disclaimer: None of these blueprints are complete. Rather, they are intended to reduce friction as you start your business. Meaningful refinement can only happen through continuous effort & ideation.
Plan, Do, Check, Act: Also known as the PDCA cycle, this project management framework helps businesses drive continuous improvement across their products & services.
We strongly recommend that you pair our product plan with the PDCA framework in your workstreams to help identify efficiencies in the opportunity as they arise.
Deckover trailer
Meta Quest or Virtuix
Minimal viable product plan: Equipment
Curated selection of VR games
Curated selection of VR games
Meta Quest or Virtuix
Minimal viable product plan: Equipment
Good artist copy,�great artists steal.��Don’t reinvent the wheel.��Copy your competition’s homework (see bonus section) by listing the exact VR equipment & activities they have available on their website.
Sell before you build.���Low on capital? Pre-sell.��List VR rental services first; only purchasing equipment once you see what services & experiences would rent most frequently.
Sourcing equipment
Keep it simple. Use Facebook Marketplace & Craigslist to source headsets that you’ll need. To start your business, you don’t need brand new equipment.
The cheaper you can acquire VR headsets, the better return you can yield during it’s rental history (more on this later).
Startup costs: $1,100
It’s in our estimation that startup costs are in the $1,100 range.
This includes both your initial VR headset purchases, VR game & experience purchases, and marketing costs slated to be discussed shortly.
Instructions are self-explanatory for VR equipment rentals.��01. Source quality headsets at bargain prices.�02. Find potential customers.�03. Rent at the highest reasonable price.���You can measure “reasonable” by looking at your booking rates. Healthy booking rates = reasonable pricing.
Occupancy rate
Industry standard occupancy rate targets are usually in the ~70% range. Since you will be starting from nothing, it’s okay to aim below this target.
Given our low operating & labor costs, it's appropriate to aim for 50% or above.
Dollar utilization rate
Target a 60-70% dollar utilization rate for your fleet of headsets. Meaning that after a year, each headset should earn you 60-70% of it's total acquisition cost. You should price VR games into the cost of your headsets.
Dollar utilization rate = annual rental revenue divided by the original cost of the rental purchase.
Minimal viable marketing plan
04
Minimal viable marketing plan
In the spirit of retaining modularity, we’ll host most in-depth marketing plans outside of this deck. This plan only contains the essentials to get started.
More marketing resources available @ arena.xyz
Phases�Going from 0 to 1
Minimal viable marketing plan
Follow this blueprint to build the marketing & sales plan you’ll need to acquire your first customer.
01 Create front door
Look like someone worth doing business with. Take a day to build a website (with basic pages) and a logo, fast. Done beats perfect.
02 Craft your offer
Use our available marketing & sales resources to craft an offer that your leads can’t refuse.
03 Source your leads
Use our marketing resources to create a list of places you can use to source high-propensity leads
04 Close your leads
Use your offer to close prospects that your lead generation provides. Repeat the process. While looking for ways to drive efficiencies in the business.
24
01 Create front door��This step is self explanatory. Register your domain, create your website, get custom email, etc.
02 Craft your offer��Copy your competition’s homework by calling or emailing as a cost-conscious prospect interested in becoming a customer.���Take any meaningful learnings, and use them to your benefit within your sales process.
03 Source leads
To begin prospecting, simply search for event planners in your local area. Look for their contact information, and send a personalized email socializing your unique VR experience offering.
Understand their needs, present your portfolio, and communicate your flexibility & adaptability to win an opportunity to be on their vendor list.
When doing outreach, be sure to communicate yourself as a trustworthy and reliable vendor. For event planners, reputation is paramount.
03 Source leads
Use Facebook Groups, Craigslist, and localized marketplace sites (i.e. Bark.com) to promote your services.
For post inspiration, look at the content that competitors & similar businesses are posting.
04 Closing leads��As previously stated; Good artists copy, great artists steal. F*ck political correctness, don’t reinvent the wheel. ��Copy your competition’s homework (see bonus section) by calling as a prospect and repurposing their sales pitch.
Use their sales pitches as your own personal money printer until you have resources to experiment.
No process is perfect on day 1. Remember to refine your workflows each week.��Improve your offer�Improve your prospect sourcing�Improve your close rates
For a step-by-step marketing plan, follow this four week calendar. →
Marketing plan
First four weeks
Use this four week marketing plan to kickstart your business & get your first ticket customer. Apply the PDCA framework along the way to drive efficiencies along the way.
Week 1
Note: Recommended website builders, themes, business names & domains available in bonus resources.
Week 4
Week 2
Minimal viable business plan
Week 3
NOTE: Additional resources @ arena.xyz
Disclaimer
Plan
Do
Act
Check
VR equipment rental business plan
Resource: Learn more about the DPCA framework.
Remember: As previously stated. None of these blueprints are a one-size-fits-all solution, and neither are they complete. Meaningful refinement can only happen through continuous effort & ideation.
As you develop your business, remember to apply the PDCA framework:
TDLR: Continuously look for leaks in the business, and fix them.
Tracking & KPIs
05
You’ll struggle to identify opportunities & track growth if you don’t measure what matters.
Use Arena’s free dashboard to:
Tracking & KPIs
Setting KPIs
The following set of instructions require our dashboard, available @ arena.xyz
You can complete this process using other business dashboards following similar steps.
Identify KPIs
Identify the KPIs that are most suitable for the opportunity (provided on the following slide).
Set Targets
Set recurring growth targets that you would like to achieve based on your personal level of commitment.
Set Actuals
As you progress, make sure you update your “actuals” table to reflect your performance.
Trailer rental KPIs
Revenue per rental
Average rental duration
Maintenance costs
Dollar utilization
Operating costs
For more KPIs: https://arena.xyz/the-dashboard
Monetary?
Y
Y
Y
N
Y
Description
Income generated from each transaction, helping you identify the most profitable equipment.
How long your rental equipment is rented for, on average.
How much it costs you to maintain the equipment.
The annual rental revenue relative to the total acquisition cost of the equipment you’re renting.
Expenses that you incur to run day-to-day operations.
KPIs
Measure your performance
Use the Dashboard, Tracker, and Summary tabs to track your performance over time.
Bonus resources
05
Bonus resources
Recommended digital tools
Tools & resources
Domain names
Website builder
Website themes
Stock photos
Email newsletter software
Meetings
Business phone number
Email accounts
We’ve extensively researched the best digital marketing resources & tools. These are our recommended resources.
For the ultimate toolkit: https://arena.xyz/the-toolkit
Bonus resources
Business names & available domain names
Available business & domain names
Ready Player Rentals
Unwrap Reality
Mind Blown VR
Altered State VR
Reality for Rent
Let me VR
Seeing VR
VRenture
Immersive Republic
readyplayerrentals.com ✅
unwrapreality.com ✅
mindblownvr.com ✅
alteredstatevr.com ✅
realityforrent.com ✅
letmevr.com ✅
seeingvr.com ✅
vrenture.com ✅
immersiverepublic.com ✅
Note: These domain names are available at a first come, first serve basis.
Nationwide
Nationwide
Nationwide
Los Angeles, CA
Current VR equipment rental companies
Competitive research
Questions?
Contact
hello@arena.xyz
arena.xyz