![How to plan and track the budget of your e-sports arena [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-1_a014c0af-d549-4b69-82cd-54b3fe33214f.png?v=1715856501&width=1100)
If you don’t plan and track your e-sports arena budget properly, you're setting yourself up for failure.
When we developed our strategy pack for e-sports arena owners, we saw a lot of arena owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your e-sports arena's finances around and set you on the path to success!
Get the budget tracker tailored for e-sports arenas
Most e-sports arena owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for e-sports arenas
Here is an example of a (very) detailed budget for an e-sports arena, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for arena space | $8,000 | $96,000 |
| Electricity | Power consumption for gaming PCs, lighting, and HVAC | $1,200 | $14,400 |
| Internet & Phone | High-speed internet service and business phone | $500 | $6,000 |
| Water | Water usage | $150 | $1,800 |
| Insurance | Property and liability insurance | $600 | $7,200 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Pest Control | Monthly pest control services | $50 | $600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| General Manager | 1 | $5,000 | $5,000 | $60,000 |
| Event Coordinator | 1 | $3,500 | $3,500 | $42,000 |
| Technicians | 3 | $3,000 | $9,000 | $108,000 |
| Customer Service Reps | 4 | $2,500 | $10,000 | $120,000 |
| Security Staff | 2 | $2,500 | $5,000 | $60,000 |
3. Equipment & Maintenance
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Gaming PCs | High-performance gaming computers | $2,000 | $24,000 |
| Consoles | PlayStation, Xbox, and other consoles | $1,000 | $12,000 |
| Peripherals | Keyboards, mice, headsets, etc. | $500 | $6,000 |
| Furniture | Gaming chairs, tables, etc. | $300 | $3,600 |
| Software Licenses | Game licenses and software | $1,000 | $12,000 |
| Maintenance | Regular maintenance of equipment | $500 | $6,000 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $500 | $6,000 |
| Social Media Management | Managing social media accounts | $600 | $7,200 |
| Print Advertising | Flyers, posters, newspaper ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $150 | $1,800 |
| Email Marketing | Email campaigns and newsletters | $200 | $2,400 |
| Promotional Events | Special events and promotions | $300 | $3,600 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Licenses & Permits | Business licenses, gaming permits, etc. | $100 | $1,200 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $300 | $3,600 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
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What are the biggest expenses for an e-sports arena?
Watch out for these pitfalls. Here are five major costs every e-sports arena owner needs to consider, along with some tips on how to manage them effectively.
- Gaming equipment and technologyThese can take a significant portion of your budget. You're dealing with high-end gaming PCs, consoles, and peripherals, and prices can vary based on the latest technology and demand. To keep these costs in check, focus on bulk purchasing, negotiate better deals with suppliers, and regularly maintain your equipment. It's easy to overspend by buying the latest gadgets that don’t add enough value to the gaming experience.
- Your staff at the arenaYour team is crucial, but paying for their wages, benefits, and training can be costly. This expense is always high because you need a skilled team to provide excellent service and keep the arena running smoothly. Optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor service.
- Rent and utilities of your arenaPrime locations come with high rent, but they can attract more gamers. Utilities like electricity, internet, and cooling systems are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient and high-performance equipment. Overspending often happens when you choose a location that's too large or too extravagant for your needs.
- MarketingYou need to promote your e-sports arena, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we provide in our pack. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Facility maintenance and upgradesThis includes everything from gaming chairs to network infrastructure. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, high-quality equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your e-sports arena?
Here are practical tips to help you, as an e-sports arena owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Gaming Equipment | Partner with gaming hardware companies for sponsorships and bulk purchase discounts. |
| Staff Costs | Use scheduling software to optimize staff hours and reduce overtime, ensuring peak times are well-covered. |
| Utilities | Install energy-efficient lighting and cooling systems to manage electricity costs effectively. |
| Marketing | Run social media contests for your e-sports arena and collaborate with popular streamers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste and maintain a clean environment. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of gaming PCs and consoles. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location with good foot traffic. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Concessions | Offer cost-effective, eco-friendly packaging and provide discounts for customers bringing their own containers. |
| Furniture | Purchase high-quality, durable furniture that can withstand frequent use and gaming activities. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep staff updated on the latest trends. |
| Waste Management | Implement a waste tracking system to minimize waste and recycle electronic components responsibly. |
| Technology | Invest in multi-functional gaming setups and utilize management software for reservations and event planning. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals, especially for gaming licenses. |
| Transportation | Plan delivery routes for equipment and supplies to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order and reservation systems. |
| Inventory Management | Use inventory management software to track stock levels of gaming peripherals and reduce spoilage. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music and host local gaming events during off-peak times. |
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Expenses that are just useless for an e-sports arena
Yes, some expenses for your e-sports arena are just unnecessary. They don't contribute to increasing revenue or enhancing the gamer experience.
| E-Sports Arena Expense | Reason It's Useless |
|---|---|
| Over-the-Top Decorations | Extravagant decorations don't necessarily attract more gamers and can be a drain on the budget. |
| Premium Gaming Chairs | Unless you are targeting high-end clientele, most gamers are satisfied with mid-range options. |
| Excessive Game Titles | Having too many game titles increases licensing costs and can lead to underutilized resources. |
| High-End Gaming PCs | Top-of-the-line gaming PCs are not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your e-sports arena. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the gamer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by gamers. |
| Exclusive Game Licenses | Using rare game licenses can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by gamers and can be a significant expense. |
| Custom Printed Merchandise | Personalized merchandise is a minor detail that most gamers overlook, and it can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Snack Brands | Most gamers are content with standard snack options, making expensive brands unnecessary. |
| Extra Gaming Consoles | Maintaining more consoles than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Centerpieces | Elaborate centerpieces are often ignored by gamers and add to the cost. |
| High-End Tableware | Luxury tableware is prone to damage and expensive to replace, often going unnoticed by gamers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Menu Designs | Frequently redesigning snack menus is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Catering Equipment | Specialized catering equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your e-sports arena!
Managing a budget for an e-sports arena when funds are tight can feel like a nightmare. It's like being in a high-stakes game where any unexpected expense can knock you out of the competition.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together resources and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to invest in your arena.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of e-sports arenas just like yours. Get them now!
Make your e-sports arena more profitable
We have studied the strategies of the best e-sports arenas in the world. All their tactics are explained in our pack!
