Paintball experience in Army translates to business profits

During a 20-year career in the U.S. Army, Lawrence Kagawa helped the Army transition its training simulations from laser-tag weaponry to paintball-based weaponry.

His business sense since his retirement from the Army has proven to be on target, too, as the indoor paintball business he opened in Panther Valley has been profitable since the day it opened.

Kagawa opened Reno Indoor Paintball, a 12,000-square-foot facility at 1005 Standard Way, in February by hosting an 18-team tournament.

Kagawa says he's been in the black ever since and he's already looking toward the day he can expand his operation, whose nearest competition is in Fernley.

"For a lack of traditional advertising, we have been beyond what I expected," says the 40-year-old entrepreneur. "We expected to be in negative cash flow for six to nine months, but we have been positive cash flow since we started."

The business, which has one office employee and a team of 10 volunteer referees, turns a profit by outfitting paintballers and by renting out the facility to corporate groups, birthday parties, and bachelor and bachelorette parties. Patrons who don't own their gear can rent packages, which include a paintball gun, protective clothing and 400 rounds. Rental packages can be upgraded with higher-end paintball guns.

Kagawa only allows patrons to shoot in-house paintballs and shoot they do: Reno Indoor Paintball goes through approximately 120 cases of paintballs every week to 10 days. Each case holds 2,000 paintballs that's about a quarter-million paintballs per week, or a million a month.

Kagawa started the business using personal funding, but he applied for a loan from the Nevada Microenterprise Initiative that helped pay for capital investments such as AstroTurf to cover the concrete floor, 41 inflatable bunkers and netting to protect patrons outside the playing area.

Kagawa also purchased a fleet of rental paintball guns, which are called markers, as well as protective clothing.

Edward Vento of the Nevada Microenterprise Initiative says he was unsure if Kagawa's idea for a paintball facility was viable, but he soon was convinced of its merits as was the NMI loan committee review board.

"When Lawrence walked in with his business plan and everything else, I said, 'With the tough economy I don't know if people are going to spend money on this repeatedly,'" Vento says. "But he seemed like a bright guy, and we prepared to go before board and he knocked it out of the ballpark. It was a great presentation."

While in the Army, Kagawa worked in advertising and public affairs and also was a top recruiter, experiences that not only helped him secure his loan but also to negotiate with suppliers.

"You can deal with manufacturers directly and not be afraid to get in there, take the gloves off and start negotiating a deal," he says.

Kagawa found the location for Reno Indoor Paintball on Craigslist. Brad Lancaster of Miller Industrial Properties brokered the lease. Eventually Kagawa would like to double the size of his facility.

Although the facility, like all paintball battlefields, allows only patrons ages 10 and up, Reno Indoor Paintball can accommodate youths by modifying paintball guns with laser units.

"We want to take care of everybody," Kagawa says.

In addition to hosting paintballers, Kagawa has rented the space out to Vitality Productions to throw an all-night rave party. Kagawa has three additional raves booked at the site.

He also picked up a bus off Craigslist, and pending a commercial license Reno Indoor Paintball will begin picking up groups to spend the day at the facility. Kagawa also plans to offer firearms training with low-caliber paintball handguns.

"Now a person can step in here and practice in close-combat quarters and shoot a simulated gun at somebody," he says.