Free Laser Tag Facility Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
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and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
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templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $175,000 for the development of a laser tag facility while showcasing the expected financials and operations over the next three years. Laser Tag, Inc. (“the Company”) is a New York based corporation that will provide usage of its laser tag facility, limited food/beverage services, and event hosting to customers in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
Management intends to develop an extensive retail location that will provide customers with the latest in laser tag technology, which simulates simple combat through the usage of light emitting “guns” that can be used to “shoot” other players in the game. The Company intends to have capacity to host games with up to 30 to 35 people. Additionally, the Company will offer a limited food and beverage service which will include candy, hotdogs, small sandwiches, and fountain drinks. This aspect of the business is very important because it will provide an additional stream of revenue for the business while concurrently allowing parents of children to stay at the facility longer. Finally, the business will generate revenue streams from hosting birthday parties and other events within the facility. The third section of the business plan will further describe the services offered by Laser Tag, Inc.
1.2 The Financing
Mr. Doe is seeking to raise $175,000 as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Laser Tag, Inc.’s mission is to provide customers with an exciting laser tag experience while concurrently providing a safe and enjoyable environment. The business is also committed to providing quality birthday party and event hosting services so that children can have a memorable birthday at the Company’s location.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the retail management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target young individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Laser Tag, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Laser Tag, Inc. requires $175,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Laser Tag, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Laser Tag, Inc. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the laser tag entertainment services offered by the Laser Tag facility.
3.1 Laser Tag Facility Usage
The primary revenue center for the business will be the ongoing usage of laser tag facility among the Company’s patrons. At any given time, 30 to 35 people can be involved with a laser tag round. The expected play cost per round is $2 with the average customer playing five to six rounds of laser tag per visit to the facility. Mr. Doe is currently sourcing the latest in laser tag equipment, which will be installed in the Company’s warehouse like facility that is also currently being sought by the business. Although the term “laser tag” is used, the actual devices emit harmless red light, and not actual laser light. As such, the injury risk assumed while playing laser tag is very minimal.
3.2 Food and Beverage Service
The business will also maintain an area of the retail facility that will provide limited food and beverage service. This revenue center is extremely important for the business because it will provide an additional stream of income for the business will providing parents of children using the facility an incentive to stay longer. This business model is akin to Barnes and Nobles installation of cafes in most of their bookstores.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the entertainment industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. However, Laser Tag facilities usually operate with economic stability as the pricing point for the services offered is very low. Only a severe economic recession would impact the Company’s ability to generate top line income.
4.2 Industry Analysis
The arcade and retail entertainment industry generates approximately $1.5 billion dollars a year among 2,700 companies that operate retail entertainment facilities. These revenue numbers does not include amusement parks, casinos, or resorts that provide retail-type entertainment as a value added benefit to patrons. The industry employs more than 30,000 people and provides aggregate annual payrolls of $350 million dollars. As stated earlier, the industry is mature. The expected continued growth of these businesses is expected to mirror the general population growth plus the rate of inflation. The key to thriving within this industry is to provide patrons with an expansive facility for playing laser tag. This will develop a repeat customer base. One of the other trends in this industry is to also have a limited number of arcade games on the premises of laser tag facilities as a tertiary stream of income.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
Laser Tag, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
5.2 Marketing Strategies
Management intends on using a number of advertising and marketing channels to promote traffic to the Laser Tag facility. The Company primarily intends to use a broad based advertising campaign that will raise the awareness of the retail location among the targeted young child and adolescent demographic. To that end, Management will place a number of advertisements in locally based newspapers and advertisements from the onset of operations which may include discount coupons or coupons for free usage of the Laser Tag facility. This will create an immediate draw to the Company’s location. Management also expects that the business will generate significant word of mouth advertising as the Company hosts events for children’s birthday parties. As more and more children are invited to Laser Tag, Inc. hosted birthday parties, these youngsters may have their parents host their next birthday party at the facility. The Company anticipates that this type of advertising will take three to six months to become effective.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Laser Tag, Inc. will have an annual revenue growth rate of 10% per year.
• The Owner will acquire $175,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
Laser Tag, Inc.’s revenues are somewhat vulnerable to changes in the general economy. The Company is providing a laser tag facility for use among customers, which is not a necessity. However, the pricing point for the Company’s services is extremely low, and the general economy would need a serious recession before a revenue decline. The high margin revenue generated by the business will allow the Company to operate profitably despite negative economic climates.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis