Docstoc

LOL- Mobile Gaming _ Entertainment

Document Sample
LOL- Mobile Gaming _ Entertainment Powered By Docstoc
					 ia cas o e c u i s
                 n
Fn n il fr a hb s e s
 ln l e v i l o y u
      l     a
pa wi b a albefr o r
e iw t h u i s Pa
             n
rve a teB s e s ln
 o eio .
      t
C mp t in

 hn o !
T a ky u




           LOL- Mobile Gaming & Entertainment




               If your parties are lame, then we’ll bring you the games!




                                    Business Plan
                                   December 2009




                                     Charles
                                  Owner & Founder
T ABLE    OF   C ONTENTS
E XECUTIVE S UMMARY .................................................................................. 1  

L EADERSHIP ................................................................................................ 3  

S ERVICE O FFERING ...................................................................................... 3  

M ARKET ..................................................................................................... 4  

C OMPETITION .............................................................................................. 4  

D IFFERENTIATION ........................................................................................ 4  

M ARKETING S TRATEGY ................................................................................. 5  

V ISION   AND   O BJECTIVES ............................................................................... 6  

F INANCIAL S UMMARY ................................................................................... 8  

F INANCING S TRATEGY .................................................................................. 8  

F INANCIAL P ROJECTIONS ............................................................... A TTACHED
E XECUTIVE S UMMARY
 Management:                               Charles                                  Overview: LOL-
                                                                                    Mobile Gaming &
 Company Name:         LOL - Mobile Gaming                                          Entertainment
                            & Entertainment                                         currently services the
 Industry:           Gaming/Entertainment                                           Greater Houston and
                                                                                    surrounding areas.
 Vehicle and/or equipment loan           684                                        We provide the latest
 Start up financing                   13,150                                        in gaming and party
 Total start up costs:              $13,834                                         favorites at
 Plan Purpose:       Business advisors and                                          affordable rates. We
                              equity funding                                        are a family operated
                                                                                    business that shares
                                      our passion for the gaming trend with the community. Our goal is to
                                      make your party the most memorable occasion in your life.

Service Offering: LOL-Mobile Gaming & Entertainment is a mobile gaming and laser tag service that
brings the party to you. We have the Nintendo WII, Xbox 360, and Playstation 3 all custom installed with
flat screen TVs in an air conditioned trailer that can accommodate up to 24 players. We also offer a
portable outdoor laser tag field and can provide Moon Walks set up at your party.

Market: The video game market in Houston alone is growing at a rate of 50% per year. The average
player spends approximately three hours a day playing video games. Mobile game theaters are a $30
million industry in the United States. In Houston the market is estimated to be $1.8 million annually.

Competition: LOL-Mobile Gaming & Entertainment’s direct competition includes Games2U and Game
Truck. There are three Games2U franchises in the Houston Metro area and they are still expanding.
Indirect competition includes Chuck E. Cheese and the Incredible Pizza Factory because they offer some
of the same games in their facilities. Rent-A-Center is also in indirect competitor because they rent out
video game consoles at hourly rates for do it yourselfers.

Differentiation: LOL-Mobile Gaming & Entertainment caters to children ages 6 to 18. We provide special
incentives for children who make the honor roll and/or accomplish a 90% attendance record. Discounts will
also be offered to clients who provide us with customers through referrals.

Marketing Strategy: LOL-Mobile Gaming and Entertainment will initially advertise through fliers and
business cards. We will also be promoting our services through demonstrations at shows, tailgate parties,
and other similar events by allowing potential customers to test the games and laser tag. At the same time
we will hand out brochures with service pricing and information. Finally, we will set up meetings with
companies to provide a sales pitch that convinces them that our services will benefit their family events and
team building seminars.

Revenue Model and Financial Projections:
                               Mobile gaming and laser tag              Additional Hours
 Per Unit Dollars
     Sales price                          $250.00    100%               $150.00    100%
     Other variable costs                  (20.00)                       (25.00)
     Fin. stmt. gross profit               230.00    92%                 125.00    83%
     Owner labor value                     (75.00)                       (40.00)
     Pro forma gross profit               $155.00    62%                 $85.00    57%
 Year 1 total units sold                      178                            56


 Year one summary income statement:                     Pretax income          24,000      46%
 Sales:              $52,600    100%                    Tax expense             6,000      11%
 COGS                  4,900        9%                  Owner
 Gross profit         47,600      90%                   withdrawals            11,000      21%
 Overhead             23,600      45%                   Net income             $7,000      13%
                                                                                                            1
2
L EADERSHIP

As the leader and owner of LOL-Mobile Gaming & Entertainment, Charles will be
responsible for the management and operations of the company. Charles’ many years
of experience in customer service and management will enable him to provide services
that will cater to the customer’s needs and wants.

Charles brings to LOL-Mobile Gaming & Entertainment more than 25 years experience
to the arcade and entertainment industry. As an avid video game enthusiast, he has
researched and participated in all aspects of the gaming trend.

Previously Charles was a regional quality control coordinator for Rinker Materials and
supervised the construction of reinforced concrete products in the Houston region.
Charles was also an assistant store director for a K-Mart Superstore where he gained
valuable skills in customer service. Charles’ most recent employment was with Baker
Corporation where he was a regional director responsible for managing the filtration
department which installs and extracts carbon monoxide filters for waste management
companies.

Charles has served as an administrative janitor for the last year at the Garza East Unit,
accomplishing all the duties required for the position. He has tutored several students in
their Pre-Algebra course for GED. Charles has strengthened his faith by being an active
member and helper in all chaplaincy services.


S ERVICE O FFERING

LOL-Mobile Gaming & Entertainment is a mobile gaming and laser tag service that
brings the party to you. We have the Nintendo WII, Xbox 360, and Playstation 3 all
custom installed with flat screen TVs in an air conditioned trailer that can accommodate
up to 24 children. We also have a portable outdoor laser tag field. All the equipment is
provided and set up at the residence by our professional staff. Games and teams will
be coordinated to ensure the children experience the games in the best possible way.
We also offer Moon Walks set up at your location. Our service will be sold on a per-hour
basis starting at two hours. We will be available to the greater Houston area by May
2011.

Most families prefer to have their child’s party at expensive venues like Chuck E.
Cheese or Incredible Pizza Factory because it is fun for children and simple for parents.
However, the hassle of transporting children to the venue and watching the kids the
whole time can be stressful. Let’s face it, parents are extremely busy in today’s world
and often don’t have the time to fully organize and plan a memorable and exciting party.
We take care of the hassle by showing up at their place, whether it’s their home or park,
and bringing the fun to them. This way, the parents can be as involved as they want
without all the stress!




                                                                                         3
LOL-Mobile Gaming & Entertainment will start out as a part-time venture but will
eventually expand into full-time. Initially we will only have one unit available, but with the
demand we know we will receive, we plan to have up to four units operating within two
years. As long as there are children who love video games and laser tag and parents
who have busy schedules, we will be there to create hassle-free parties that will be
remembered forever.


M ARKET

The video game trend in Houston alone is growing at a rate of 50% per year. The
average player spends approximately three hours a day playing video games. Mobile
game theaters are a $30 million industry in the United States. In Houston the market is
estimated to be at $1.8 million annually.

The average age for the gaming market is between six and eighteen years old.
However, the video game trend has recently begun to reach more people between the
ages of twenty-five and seventy-five years old. With games becoming more interactive,
gaming has become more appealing to the older crowd.

Video games are also being used by companies to promote teamwork. Many games
require teams to work precisely in unison in order to do well. These companies have
used these concepts to promote employee synergy and work ethic.

Like video games, laser tag is also gaining in popularity. The activity is enjoyed by a
wide range of ages stretching from six to forty-five. Laser tag works well for parties
because everyone can play at once.


C OMPETITION

LOL-Mobile Gaming & Entertainment’s direct competition includes Games2U and Game
Truck. There are three Games2U franchises in the Houston Metro area and they are still
expanding. Game Truck isn’t experiencing the same growth as Games2U and doesn’t
have any facilities in Texas.

Indirect competition includes Chuck E. Cheese and the Incredible Pizza Factory
because they offer some of the same games in their facilities. Rent-A-Center is also in
indirect competitor because they rent out video game consoles at hourly rates.

The main barrier of entry is the cost of customizing a high-tech mobile unit and
accommodating a large group of people at once.


D IFFERENTIATION




                                                                                            4
LOL-Mobile Gaming & Entertainment caters to children. We provide special incentives
for children who make the honor roll and/or accomplish a 90% attendance record.
Discounts will also be offered to clients who provide us with customers through
referrals.

With very little competition offering the game service, LOL-Mobile Gaming &
Entertainment will be able to set hourly rates at moderate prices and profit through high
volume sales. The more hours that the customers purchase the better the package deal
will be.

There will also be onsite technical support at all times. LOL-Mobile Gaming &
Entertainment started as a hobby between father and son, so we’re offering a service
that we enjoy ourselves. Satisfaction is guaranteed.


M ARKETING S TRATEGY

Price
LOL-Mobile Gaming and Entertainment are moderately priced to meet everybody’s
needs. Our rates start at $250 for the first two hours. Additional hours are available at
$150 per hour. We also provide special incentives for students who make the honor roll
and/or accomplish at least a 90% attendance record in school. We accept several forms
of payment including business and personal checks, all major credit cards, cashier
checks, and cash.

Place
We are located in Houston, the third largest city in the United States and the largest in
Texas. Houston has a major traffic problem that can make putting on an event or party
very stressful for the average family. My services eliminate the majority of the hassle.
There are no Homeowner’s Association rules that prevent us from operating in
residential areas at this time. Therefore we are able to bring our mobile gaming truck to
your residence without any problems.

Promotion
LOL-Mobile Gaming and Entertainment will initially be advertising through fliers and
business cards. We will also be promoting our services through demonstrations at
shows, tailgate parties, and other similar events by allowing potential customers to test
the games and laser tag. At the same time we will hand out brochures with service
pricing and information. Finally, we will set up meetings with companies to provide a
sales pitch that convinces them that our services will benefit their family events and
team building seminars.




                                                                                            5
V ISION   AND   O BJECTIVES



Two Months Before Starting
• Finalize Business Plan
• Research current market and demographics
• Create logo and graphics for truck
• Incorporate or form LLC
• File DBA
• Get Texas sales tax ID
• Obtain business account (checking and /or savings)
• Obtain necessary license, permits, insurance
• Obtain phone, tools, uniform
• Obtain Financing
• Obtain vehicle and video game equipment


First Two Months After Starting
• Obtain first customer
• Advertise at car shows, tailgate parties, etc
• Asses do’s and don’ts of business


First Year
• Acquire warehouse space
• Averaging five units a week
• Diversify marketing strategy (web site)

Second Year
• Expand to another truck
• Hire first employee part time
• Establish retirement goals
• Averaging eight units a week

Fifth Year
• Have four trucks running
• Hire two full time employee and 4 part time

Tenth Year
• Expand into an amusement facility
• Multiple employees on payroll with benefits

Philanthropy
Along with donating to PEP and other charities, LOL mobile Gaming and Entertainment
will be an advocate for helping children stay focused and do well in school. Various




                                                                                   6
incentives will be offered be us to motivate children in school. Charity funds that help
children in all aspects will receive donations in more ways than just money.

Community Impact
We will impact the community by promoting events that will help children stay off the
streets. We will offer rewards to those who do well in school hope to keep children
focused and motivated in their classes. We will also hire children who are legally able to
work for part time help. Our company will be offering our services during family events.




                                                                                           7
F INANCIAL S UMMARY

LOL-Mobile Gaming & Entertainment’s revenue model1 is based on selling the following
two services:

•   Mobile gaming and laser tag at an average price of $250. This service has a material
    cost of $20 and owner’s labor charge of $75 producing a gross profit of $155 for
    each service sold. Materials include fuel expenses. We project selling 178 of these
    gaming and laser tag services in the first year for revenues of $45,000.
•   Additional hours at an average price of $150. This service has a material cost of $25
    and owner’s labor charge of $40 producing a gross profit of $85 for each hour sold.
    Materials include fuel costs. We project selling 56 of these additional hours in the
    first year for revenues of $8,000.

This will generate more than $53,000 in first year revenues with a net profit of more than
$7,000. This is a 13% net margin after deducting $17,000 in total owner compensation
($11,000 cash withdrawals and $6,000 income taxes).


F INANCING S TRATEGY

LOL-Mobile Gaming &Entertainment will start in 2011. Total start-up funding is $13,834.
This amount will cover all laser tag equipment, video game consoles and controls, a
moonwalk, a company vehicle, marketing expenses, office equipment and supplies,
permits, and other start-up costs.

The company will have $684 in debt financing that will be repaid in 24 months at 18%.
The company will also seek an equity investment of $13,150 in exchange for 25-40%
ownership of LOL-Mobile Gaming &Entertainment. Charles plans to buy the investor out
at four times the original investment in three years beginning in the seventh month of
operations.




1
 The revenue model in the Executive Summary includes money paid for non-owner labor plus the
economic value of the owner’s labor (not necessarily cash paid). Initially, the business will be
unincorporated and, as such, receives no tax deduction for money paid to the owner. A deduction for
owner’s labor is included in the Executive Summary so the reader can assess the pro forma gross profit
of the products and/or services. Estimating this pro forma gross profit requires the PEP participant to
value his time in calculating a realistic sales price for his company’s services. The attached financial
projections differ in that non-owner labor is included in cost of goods sold, and money withdrawn by the
owner is shown as owner withdrawals after calculating the business’s tax expense but before net income.


                                                                                                       8

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:55
posted:7/16/2010
language:
pages:10