Business Licenses and Permits for the Sweepstakes Cafe

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Sweepstakes Cafe operators often ask us how to apply for the proper business licenses and permits. The language used to describe the business is key to successfully obtaining a permit. Here are our recommendations for those sweepstakes business owners soliciting donations on behalf of a registered charity:

 ·         The HEST Charity Sweepstakes participates in a state wide network that utilizes an electronic format sweepstakes to conduct fundraisers on behalf of registered charities.

·         The electronic sweepstakes fundraisers, operated at locations in the state, have finite pools of one million entries. When a customer wishes to make a donation to the registered charity, a corresponding number of sweepstakes entries are drawn from the finite pool and assigned to the donor’s account.

·         The outcome of the donor’s participation in the sweepstakes is determined instantly at the time the donation is made. The outcome cannot be changed in any way by the donor, any employee, or the owner of the retail location.

·         The donor has three methods of determining the value of the prizes awarded in the sweepstakes. They may ask the clerk to instantly reveal the value of the prizes at the main desk, they may go to a computer terminal and instantly reveal the value of the prizes, or they may play any of the entertaining game themes to incrementally reveal their prizes. All three methods of revealing the prizes deliver the same result.

·         Everyone entering the HEST Charity Sweepstakes is provided with a free entry into the sweepstakes each time they enter the store. No purchase or donation is required. Additionally, mail in free entry requests are made available to all customers. There is no restriction on the number of free entry requests that may be mailed in, that will be returned, or the manner in which they may be used.

·         The software program operating the HEST Charity Sweepstakes fundraiser has been submitted to an independent third party testing lab and has been certified as being a true sweepstakes.

 Additionally, don’t be afraid to submit state/county court orders along with your business license application. The city or municipality needs to be aware of court orders ruling in favor of HEST and the legality of the video sweepstakes system.

And finally, if your business license and permits are denied, ask for it in writing. Never allow a verbal denial. Only written denials can be contested!

 

Shannon Canard is a Manager at Hest Technologies, a leading provider of sweepstakes software that is reliable and legally compliant for Internet Cafe sweepstakes. For more information about software or sweepstakes machines, please visit www.hesttech.com.

Sweepstakes Cafe Grand Opening!

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  1. Most important: have money to spend on advertising and marketing. If a sweepstakes cafe spends ALL its cash on sweepstakes machines and location up-fitting, leaving no cash for the first nine weeks, it is most likely SUNK before it even begins.
    1. How much money is needed? Starting BIG is better, but requires more cash. A good place to start is a budget of $500-$700 a week for advertising and marketing.
  2. Hire a promoter. A $10 an hour person to hand out postcards with FREE entry and information on your location is well worth the investment. Figure out where your store patrons spend their time and go there to promote your new business.
  3. Plan six months worth of in-store events and marketing. Promote these in the store through signage. If the customers know what events are coming and when, they should schedule their visits to the store to coincide with chances to win additional prizes and to participate in events.
  4. Plan special in-store events for every night of the week. Ladies night, pizza night, guys football and wings night, etc. Advertise these in-store and in any marketing collateral you push on the streets.
    1. When planning in-store events, consider where you can best recruit NEW customers to capitalize on the event dollars invested. Promoting to existing customers does not increase your business in a competitive market, it only shrinks your profit. For example: if you have a “guys night” and plan to serve free hot wings and hold a drawing for $50 bowling packages as part of your cross-marketing, where would you go to advertise this promotion? I would suggest local auto parts stores, local bars, shooting ranges, etc.; anywhere men hang out. (You must, of course, obtain the permission of any existing retail businesses before you promote on their premises).
  5. Use post card mailings for the surrounding zip code to advertise your store and services. Include your store’s calendar of events and other important information.
  6. Begin a customer directory with names, mailing addresses, phone numbers, emails, etc. Keep it updated and use (with customer’s consent) for email blasts and direct mail pieces, as well as text message promoting.
  7. Run some Craigslist ads promoting your store.
  8. Following two months worth of a “soft opening” where the sweepstakes location has been running in-store and outside events/marketing (you’ve been working the kinks out of business during this time, too), the store should have the “Grand Opening.”
  9. Have a grand opening! Include several days of events, drawings, etc. with a final BIG day event and celebration.
  10. Following the finale of the Grand Opening, the sweepstake cafe should reduce its marketing and advertising. At this time, a new budget should be created for ongoing, sustaining business , with periodic scheduled events.

    11.  

    Shannon Canard is a Manager at Hest Technologies, a leading provider of sweepstakes software that is reliable and legally compliant for Internet Cafe sweepstakes. For more information about software or sweepstakes machines, please visit www.hesttech.com.

Launch Day for Your Sweepstakes Route Location

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For Route Locations:

We recommend Launch Day should be on a Thursday since this is the start of the busy weekend (Thurs-Mon).

  • Have some balloons present to announce the launch. Enlist a logo’d vehicle to park outside the location.
  • Create a Launch Event with the Store over a four-day period.
  • Hire an in-store promoter and/or sales person to have present in uniform giving away free no purchase entries and assisting staff with the Point of Sale system or Internet Cafe pc.
  • Many charitable groups provide thank-you gifts to the donors for their donations. Coordinate with your Promotions Coordinator at HEST to see what thank-you items are available during your Launch Event!
  • Invite other potential clients and customers to your Launch Event so they can see firsthand the excitement and success of Video Sweepstakes in a retail location.
  • Collect customer data at the Point of Sale for future mailings and marketing opportunities.
  • Make sure everyone that enters the store receives a free entry!
Tomorrow: Launch Day for the Sweepstakes Cafe

 
Shannon Canard is a Manager at Hest Technologies, a leading provider of sweepstakes software that is reliable and legally compliant for Internet Cafe sweepstakes. For more information about software or sweepstakes machines, please visit www.hesttech.com.