Transcript Slide 1

Peter Deckers
Rhahjni Reid
Grade 12
18 & 16
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Mission Statement
•
Opportunity
•
•
New Age Gaming provides the opportunity for hesitant gamers who
would like to fully preview games and systems before committing to a
sale.
Mission Statement
•
Our business will strive to provide our customers with a chance to be
completely satisfied with their purchase with unrestricted access to
games and the opportunity to socialize with their peers.
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Business Profile
•
Type of Business
• Service
• Our business allows customers to preview a
range of systems or games before purchase so
that they are fully satisfied with the final
product
• We believe that our customers will be pleased
knowing they can make informed purchases
before actually buying the game
• Legal Structure
• Partnership
• We selected this because we can split the
start up costs and operating responsibilities
4
Qualifications



We both own video game systems
We both have taken a Marketing and
Entrepreneurship class
20 years of combined game experience
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Consumer Profile
•
By Location
• Avon, CT and surrounding areas
•
By Population
• Video Game consumers, ages 15 – 25
• Console owners
•
By Personality/ Behavior
• Gamers, enjoy playing video games
• Enjoy playing with friends
•
By Income
• Gamers with discretionary income
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Competitive Advantage
Factors
Gamefly.com
GameStop
New Age
Gaming
Quality of
Product//Service
Good
Good
Excellent
Price
Good
Excellent
Excellent
Location
Online
Nationwide
Avon, CT
Brand/Reputation
Very Good
Very Good
Excellent
Unique Knowledge
No Late Fees
Buy & Trade
Immediate
Experience
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Marketing Plan
People
• Gamers
ages 15-25
Price
• Affordable
Marketing
Mix
Place
• Avon, CT
and
surrounding
areas
Promotion
• Excellent
customer
service
• Handing out
business cards
Product
• Encourages
socialization
• Informed
purchases
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Marketing Plan
Awareness
Purchase
Retention
Current & Short Term (1 month-6 months)
•Storefront sign/Grand
Opening
•Handing out business
cards
•Host gaming tournaments
• Social/Gaming Networks
•We will provide excellent
service
•Provide discounts for
long term customers
•Comfortable at home
Environment
•Gaming tournaments
•Coupon Rebate
Long Term ( 6 months-1 year)
Create ads on gaming
websites and channels
Monthly cost,
by phase:
$300.000
Awareness
Give special events and days that are
customized for individual type of
gamers
$0.00
Purchase
Hope to form friendships
with customers, and also
make it a favorite hangout
$32.00
Retention
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Cost of Materials/Direct Labor
Definition of One Unit
30 Minute Game Experience, Accessory
purchase, Coupon Rebate
Cost of Sales Per Unit
Direct Labor
(Labor Cost per Hour)
Time (in hours) to make 1
unit
Direct Labor Cost Per
Unit
$12.00
5 minutes or .083hr
$1.00
$10.00
4240 customers/40 hrs.
$0.09
Total Direct Labor Per Unit
$1.09
Material Description
Cost/Total Quantity
Cost Per Unit ($)
Plastic Bag
$500/5000 (25% of the time)
$0.05
Headsets
$417/52 (25% of the time)
$2.00
Coupon
$10/1000 (25% of the time)
$0.01
Total Material Cost Per Unit
$2.06
Total Other Variable Costs Per Unit
$0.00
Cost of Sales Per Unit
$3.15
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Economics of 1 Unit
Definition of One Unit:
30 Minute Game Experience, Accessory purchase, Coupon Rebate
Selling Price per Unit (Experience, Headset [email protected], Coupon [email protected])
$26.25
Direct Labor per Unit
$1.09
Materials per Unit
$2.06
Total COGS per Unit
$3.15
Total Other Variable Costs per Unit
$0.00
Total Cost of Sales
$3.15
Contribution Margin
$23.10
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Average Monthly Fixed Costs
Type of Fixed Cost
Entrepreneurial Stipend
Insurance ($1M Liability)
Salaries of Employees
Monthly Cost
$50.00
$150.00
$1,080.00
Advertising (Business cards & website)
$20.00
Depreciation (Consoles & Accessories)
$20.00
Utilities (Internet & Phone, etc.)
$100.00
Rent (2300 sq ft. Utilities included):
$2,500.00
Total Monthly Fixed Costs
$3,920.00
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Time Management Plan
Business Schedule for a Typical Week (168 hours)
School Hours, 45
Business , 40
Work Hours, 24
Free time , 59
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Monthly Sales Projections
Units Sold
600
500
Axis Title
400
300
Units sold
200
100
0
Jan
Feb
Mar
Apr
May
Break Even
Units
92
June
July
Aug
Sept
Oct
Nov
Dec
Total Units
Full Capacity
4240
8640
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Projected Yearly Income Statement
Selling Price Per Unit
# of Units Sold
Total Sales
Total COGS
Other Variable Costs
Total Variable Costs
Gross Profit
Yearly Fixed Costs
Other Costs/Unforeseen
$26.25
4,240
$111,300.00
$13,356.00
$0.00
$0.00
$97,944.00
$47,040.00
$5,000.00
Total Fixed Costs
$52,040.00
Profit before Taxes
$45,904.00
Less Estimated Taxes @25%
$11,476.00
Net Profit
$34,428.00
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Return
…on Investment
Annual Net Profit
$34,428.00
=
Start-Up Inv.
$17,900.00
…on Sales
Annual Net Profit
$1.92
31%
$34,428.00
=
Total Sales
192%
$0.31
$111,300.00
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Start-up Investment
Item
Where I will buy this?
Console Inventory
Game Evolution (Ebay.com)
$2,540.00
Accessory Inventory
Lightinthebox.com
$1,800.00
Store Supplies
Buystorefixtures.com
$800.00
Store Furniture
Buystorefixtures.com
$2,800.00
Televisions
Alibaba.com
$3900.00
2 laptops
Best Buy
Already owned
CASH RESERVE covering 3 months of fixed expenses
$4,260.00
Estimated TOTAL START-UP INVESTMENT
Hours Needed
150
x
Cost of Item
$16,100.00
Wage
$12
Total Time Investment
=
$1800
Total: $17,900.00
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Financing Strategy
for Total Start-up Investment
Source
Amount
Personal Savings
$10,000.00
Relatives/Friends
$7,900.00
Totals:
Debt
Equity
Gift
x
x
$17,900.00
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Business Responsibility Plan
Philanthropic Strategy Plan

We will donate 5% of our net profits to the
Children's Cancer Fund of America foundation

Our consumers will be aware of this by the
CCFOA logo which will be included on our
business cards
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Business & Educational Goals
Personal
Short Term
•
•
Graduate high school amongst
the top of the class
To hire two employees
by the end of the first
year
•
Attend the college of our choice
Long Term
Business
•
Double sales by the end
of the second year
•
Look to further our education by
pursuing a master’s degree
•
Being a host for MLG
tournaments
•
Pursue a career of our choice
Pay ourselves a higher
wage
•
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Experience Games!
Thank you for your consideration of
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