Free Video Gaming Center 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!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a specialized gaming center while showcasing the expected financials and operations over the next three years. Gaming Center, Inc. (“the Company”) is a New York based corporation that will provide usage of the latest video game consoles on a per hour basis (as well as small food concessions) 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 arcade game technology. The Company intends to have about 15 video console stations (Nintendo Wii, PlayStation 3, Microsoft XBox 360) for customer use. Usage of the arcade will be charged on a per hour basis. Additionally, the business will offer a limited food and beverage service which will include packaged products, bottled drinks, and sandwiches. 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. The third section of the business plan will further describe the services offered by the Gaming Center.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 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
Gaming center, Inc. is designed to provide customers with an exciting array of video console games while concurrently providing a safe and enjoyable environment.
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 parents with children) within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Gaming Center, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Gaming Center, Inc. requires $100,000 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 Gaming Center, 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 Gaming Center, 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 services offered by the Gaming Center.
3.1 Game Console Usage
The primary revenue center for the business will be the ongoing usage of arcade games among Gaming Center’s patrons. At any given time, Management anticipates that the business will have 15 arcade game stations available for patron use. Unlike other video game arcades, the games offered by the Company will use traditional video game consoles such as Nintendo Wii, Microsoft XBox 360, and PlayStation 3. This will create a strong differentiation among other arcades that offer traditional arcade consoles. For each hour of arcade game use, customers will be charged $9.99. These prices may be broken down into quarter and half hour usage fees.
3.2 Food and Beverage Service
The Company 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 while providing parents of children using the arcade an incentive to stay at the arcade 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 arcade 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-2009, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
The arcade industry generates approximately $1.5 billion dollars a year among 2,700 companies that operate retail arcades. These revenue numbers do not include amusement parks, casinos, or resorts that provide arcade machines 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 arcade industry is mature. The expected continued growth of these businesses is expected to mirror the general population growth plus the rate of inflation.
4.3 Customer Profile
Gaming Center, Inc. intends to operate among two primary market segments: young adults (14 and up) and children (ages 5 to 12). Management expects that the average child customer of Gaming Center will be between the ages of 5 and 12. Management also expects that a majority of these patrons will be male. The Company’s second market segment is adolescents/adults over the age of 14 that have an interest in the latest in video game technology. This demographic will use the facilities during after school and evening hours (especially on the weekend). Management expects that this segment of the market will primarily consist of people between the ages of 14 to 29).
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
Gaming Center, 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.
5.2 Marketing Strategies
Mr. Doe intends to use a number of marketing strategies to effectively market Gaming Center to the general public. The demand for unique arcades is extremely strong among adolescents and young adults throughout this area. As such, it is imperative that Management develop a brand affinity with the customer. To that end, Management will place a number of advertisements in area based newspapers and advertisements from the onset of operations which may include discount coupons or coupons for free usage of the Gaming center arcade. 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 parties and tournament events. As more and more people attend Gaming Center hosted parties, these people (especially children) may have their parents host their next birthday party at the arcade. 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
• Gaming Center, Inc. will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
Gaming Center, Inc.’s revenues are somewhat vulnerable to changes in the general economy. The Company is providing arcade games for us among its customers, which are not a necessity. However, the pricing point for the Company’s game usage 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