Free Video Game Store 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
purposes only. If you are interested in purchasing the completed editable MS Word
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.
It should be noted that there is no special software required to use these
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 $125,000 for the development of a video game retailing store while showcasing the expected financials and operations over the next three years. The Video Game Store, Inc. (“the Company”) is a New York based corporation that will provide an expansive inventory of video game consoles and sales of new/used video games to customers in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The primary revenue stream for the business will come from the sale of new and used video games. In regards to new video game sales, the Company will work with authorized distributors to obtain its inventories. Used video games will be purchased directly from customers that want to divest old inventories of video games. The Company anticipates that it will be able to purchase used video game inventories at 30% of the value of which it will resell the game. The Company’s secondary revenue stream will come from the sale of video game consoles including PlayStation 3, Xbox 360, and Nintendo’s Wii. The third section of the business plan will further describe the services offered by the Video Game Store.
1.2 The Financing
Mr. Doe is seeking to raise $125,000 from 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
The Video Game Store’s mission is to become the recognized local leader in its targeted market for its expansive inventory of video games and video game consoles.
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 individuals and game enthusiasts within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Video Game Store, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Video Game Store requires $125,000 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 the Video Game Store, 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 the Video Game Store. 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 products offered by the Video Game Store.
3.1 Sales of New Games
This is the primary revenue stream for the business, and as stated in the executive summary, the business will acquire its inventories from authorized dealers and wholesalers that will provide the business with the latest video games demanded by the general public. Management anticipates that approximately 50% of its aggregate revenues will come from the sale of new video games.
3.2 Used Game Sales
Additionally, the Company will deal in used games that customers can trade in and purchase from the Video Game Store. The Company will use an expansive used game acquisition policy that allows sellers to receive a good value for each of their used games or game consoles. Approximately 25% of the Company’s retail revenues from the sale of used games. The Company generates margins in excess of 70% for each used game and game console sold.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the video game retailing 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.
4.2 Industry Analysis
Analysts from Forrester Research show that the video game industry has surpassed the growth rate of the film industry. According to market research firm NPD Group, 2007 sales of video game hardware, software and accessories in the U.S. were $12.5 billion, the industry’s highest-ever returns. Within the United States, there are approximately 19,000 retailers of video games (new and used) and video game consoles. This is a mature industry, and the future expected growth rate is expected to equal that of the general economy.
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
The Video Game Store 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
• Establish relationships with local arcades within the targeted market for referral to the Video Game Store among frequent gaming enthusiasts.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow Video Game Store to easily target gaming enthusiasts within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Video Game Store will also use an internet based strategy. This is very important as many people seeking local retailers, such as video game stores, now the Internet to conduct their preliminary searches. Mr. Doe will register the Video Game Store with online portals so that potential customers can easily reach the business. The Company will also develop its own online website, which will showcase the Company’s location, its hours of operation, and current inventory. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the video games and video game consoles that the Company is selling.
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
• The Video Game Store will have an annual revenue growth rate of 10% per year.
• The Owner will acquire $125,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. Video games and video game consoles are not a necessity, and as such, the demand for these items may wane during deleterious economic conditions. However, the high gross margins generated by the business will ensure that the Company remains profitable and cash flow positive despite moderate declines in revenue.
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