Centered Gaming Business Plan Use This

BUSINESS PLAN
Centered Gaming
Austin Beschen, Owner
Created on December 12, 2016
Table Of Contents
Contents
Page NumberPage 1/22
Centered Gaming 2
1. EXECUTIVE SUMMARY................................................................................... 4
1.1 Product............................................................................................................ 4
1.2 Customers........................................................................................................ 4
1.3 What Drives Us............................................................................................... 4
2. COMPANY DESCRIPTION................................................................................ 5
2.1 Mission Statement........................................................................................... 5
2.2 Principal Members.......................................................................................... 5
2.3 Legal Structure................................................................................................ 5
2.4 Long Term Development................................................................................. 5
3. MARKET RESEARCH........................................................................................ 6
3.1 Industry........................................................................................................... 6
3.2 Customers........................................................................................................ 6
3.3 Competitors..................................................................................................... 7
3.4 Competitive Advantage................................................................................... 7
3.5 Regulations...................................................................................................... 7
4. PRODUCT/SERVICE LINE................................................................................. 8
4.1 Product or Service........................................................................................... 8
4.2 Pricing Structure.............................................................................................. 8
4.3 Product/Service Life Cycle.............................................................................8
4.4 Intellectual Property Rights............................................................................. 8
4.5 Research & Development................................................................................ 9
5. MARKETING & SALES.................................................................................... 10
5.1 Growth Strategy............................................................................................ 10
5.2 Communication............................................................................................. 10
5.3 Prospects....................................................................................................... 10
6. FINANCIAL PROJECTIONS............................................................................10
6.1 PROFIT & LOSS.......................................................................................... 11
6.3 BALANCE SHEET....................................................................................... 15
Centered Gaming 3
Liabilities & Equity......................................................................................... 16

6.4 BREAK EVEN ANALYSIS.......................................................................... 18
DIRECT COSTS Fixed Costs ($) Variable Costs (%)...................................18
INDIRECT COSTS......................................................................................... 18
BREAKEVEN SALES LEVEL: $133,333.....................................................20
6.5 FINANCIAL ASSUMPTIONS.....................................................................21
6.5.1 Assumptions for Profit and Loss Projections..........................................21
6.5.3 Assumptions for Balance Sheet..............................................................21
7. Appendix............................................................................................................. 22
7.1 SWOT Analysis............................................................................................. 22
7.2 Break Even Analysis..................................................................................... 23
7.3 Works Cited................................................................................................... 24
1. EXECUTIVE SUMMARY
1.1 Product
Centered Gaming will provide a facility where people can go to play games, with
strangers, friends, or even by themselves. They can also take lessons there where
they will be taught about a game, strategy, etc., of their choice. Along with that,
Centered Gaming also provides places for people to buy food or drinks while they
Centered Gaming 4
take breaks. The service will be under a monthly membership cost, and lessons will
be an upgraded membership.
1.2 Customers
Our target customers are mainly teenagers, but anyone can get a membership,
which requires an adult of 18 or over to purchase. This is specifically for teenagers
who want a place where they can go to play with their friends, either just to play in
person, or because they may have boundaries stopping them, such as lack of
internet, games, or technology.
1.3 What Drives Us

Our goals is to become a nationwide center where people can go to play and
hangout. With the amount of gamers on the rise, there will be an increase in
demand, which will make it easier for us to expand. Expansion will allow us to
increase our services, along with our income, and make growth a primary target.
2. COMPANY DESCRIPTION
2.1 Mission Statement
To offer a place where people can go to play games, hangout, communicate with
others and take lessons.
2.2 Principal Members

Austin Beschen - Management
John Doe - Security
Kayla Shmite - Food Department
Centered Gaming 5
Wilson Dee - Technical Help

Yang Pang - Personal Trainer
Hyun Lee - Personal Trainer
Hunter Yellow - Assistant and Marketer
Willow Tey - Financial
2.3 Legal Structure

Sole Proprietorship.
2.4 Long Term Development

What are our goals for later years?
- Our main goals are to proceed in developing our company in size and location,
increasing the amount of stores we have that are offered to people as well, so we
can increase the profit we make and the customers we have.
What are the risks in this?
- Our main risks come in the fact that if we have competitors or if we have too
many people getting the systems or equipment to the point that they dont need our
service, which will hurt sales.
What is our strategy?
- We hope to build a base amount of customers first by advertisement, and then
hope that those customers will help advertise for us as well by telling others, which
once we have accumulated a large enough customer base we will expand to other
areas.
Centered Gaming 6
3. MARKET RESEARCH
3.1 Industry
My industry is currently very small, and we haven't gotten started on the physical
aspect of it yet. We have had no sales or customers as of now, but are looking into
possible target markets. Our major customer groups will most likely be teenagers
(13-19). We plan to increase to be a nationwide industry after 5 or more years.
3.2 Customers
My customers are mainly teenagers (13-19), with some adults and children as well.
The size of our market in teenagers is quite huge, and we plan to advertise
specifically to them due to the large amount of them that would be interested in my
company.
3.3 Competitors
With our current location in Bellevue, Iowa, we do not necessarily have
competitors. Our main competition comes from people who what to play games but
don't have the systems or games, so the only people who wouldn't use it are people
who have their own. In other areas there is competition with gaming cafes, but
those don't provide as much as we do. As well as that, some competition comes
from places that other teens can go, such as places they can hang out at like stores,
restaurants, parks, school, etc.
Centered Gaming 7
3.4 Competitive Advantage

- Provide more choices and possibilities, along with a
plethora of systems and games.
- Allows you to take lessons to increase your
understanding.
- Provides food and drinks as well as a lobby.
3.5 Regulations
We have a Gaming Cafe license as well as an Amusement Arcade license due to the
amount of computers we have. We passed the OSHA regulation and make sure to
keep our workers and customers safe. Along with that we also have a business
license. We have health codes and inspections monthly on our food. Along with
that, we follow a regulation for keeping people posted (mainly signs), about
gambling and gaming addictions.
Centered Gaming 8
4. PRODUCT/SERVICE LINE
4.1 Product or Service
We currently provide a service that people can use to play games. Along with that,
we also have food areas and lounges where people who aren't taking a lesson or
playing a game can go. We provide our services for a membership fee, with one
being regular and one being premium. We currently have no competition in our
area, and the closest thing to competition are gaming cafes.
4.2 Pricing Structure

We will have two separate memberships, one is regular for $15 per month, while
the other is premium for $25 per month. Differences and advantages to the
premium and regular memberships will be laid out in the purchasing area for those
who would like to choose the one best for them.
4.3 Product/Service Life Cycle

Our service is currently beginning its life cycle, and has yet to be revealed to the
public. Only information can be found about it as of now, with no property or
equipment as of now.
4.4 Intellectual Property Rights

We currently have no trademark or patents on our service, and they have yet to be
more than a business plan. If it goes further, we plan to get patents and trademarks
for our service.
Centered Gaming 9
4.5 Research & Development

As of now we are performing one thing of research, and plan to use two others in
the future.
- First, we are currently sending out surveys to numerous people to see if they are
interested
- We plan on allowing feedback and comments from people, whether they used it or
not, to improve our service for them
- Finally, we also plan to use complaints to get rid of as many problems as we can for
customers and make it as enjoyable as possible
5. MARKETING & SALES

5.1 Growth Strategy
We plan to open up in one area and as we sell memberships and merchandise, we
plan to increase to other areas, such as cities in our area like Dubuque, Cedar
Rapids, etc. Along with that we will also use the money for advertisement and
upgrades to increase the amount of customers we get, rocketing the rate of growth.
5.2 Communication
We plan to use multiple forms of communication with our customers. Some of them
include surveys, our personalized website, advertisements and social media, and
customer directed questions.
5.3 Prospects
We will start with one business opened, where we will have people pay for
memberships online or in person, and then we will increase the areas we are opened
Centered Gaming 10
in, along with increasing employees. People will be able to vote on where they
would like our service to be opened next, so that we can utilize the most customer
profit.
6. FINANCIAL PROJECTIONS
$169,500
$187,500
NET PROFIT (before taxes)

Income Taxes
$80,500
16,000
NET PROFIT (after tax)
$64,500
$137,500
$20,00
0
$117,500
TOTAL EXPENSES
Owner Draw/Dividends
$25,000
$40,00
0
$213,00
0
$212,00
0
$5,00
0
$207,00
0
$70,00
0
6.1 PROFIT & LOSS

Year 1
Sales
Costs/Goods Sold
GROSS PROFIT
Year 2
$250,000
Year 3
$325,000
$425,000
$0
$250,000
$0
$325,000
$0
$425,000
Salary (Office & Overhead)
$75,000
$80,000
$85,000
Payroll (taxes, etc.)
$14,000
$17,000
$20,000
Outside Services
$15,000
$15,000
$20,000
Supplies (office & operation)
$25,000
$20,000
$20,000
Repairs & Maintenance
$15,000
$18,000
$22,000
$5,000
$10,000
$12,000
Car, delivery & travel
$0
$0
$0
Accounting & legal
$0
$0
$0
Rent
$0
$0
$0
OPERATING EXPENSES
Advertising
Centered Gaming 11
Telephone
$500
$1,500
$1,500
$10,000
$12,000
$15,000
Insurance
$8,000
$12,000
$15,000
Taxes (real estate, etc.)
$2,000
$2,000
$2,500
Interest
$0
$0
$0
Depreciation
$0
$0
$0
Utilities
Other expenses
ADJUSTED TO RETAINED
$0
$39,500
$0
$77,500
$0
$137,000
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6.2 CASH FLOW (10/31/16 to 11/01/19)

Pre Startup
EST
Cash on hand
Year 1
Year 2
Year 3
Total Item
EST
$250,000
$177,000
$120,500
$123,650
$671,150
Cash Sales
$0
$250,000
$325,000
$425,000
$1,000,000
Collections from CR
Accounts
$0
$0
$0
$0
$0
Loan/Cash Injection
$150,000
$-50,000
$-50,000
$-50,000
$0
TOTAL CASH
RECEIPTS
$150,000
$200,000
$275,000
$375,000
$1,000,000
TOTAL CASH
AVAILABLE
(before cash out)
$400,000
$377,000
$395,500
$498,650
$1,671,150
Purchases
$30,000
$25,000
$25,000
$40,000
$120,000
Gross Wages
$50,000
$75,000
$80,000
$85,000
$290,000
Outside Services
$25,000
$15,000
$15,000
$20,000
$75,000
Supplies
$35,000
$25,000
$30,000
$40,000
$130,000
$0
$10,000
$12,000
$15,000
$37,000
$5,000
$10,000
$15,000
$15,000
$45,000
$10,000
$5,000
$5,000
$7,500
$27,500
Accounting & legal
$0
$0
$0
$0
$0
Rent
$0
$0
$0
$0
$0
$500
$1,500
$1,500
$1,500
$5,000
Utilities
$8,000
$10,000
$12,000
$15,000
$45,000
Insurance
$7,500
$8,000
$12,000
$15,000
$42,500
Taxes (real estate, etc.)
$5,000
$10,000
$10,000
$10,000
$35,000
$0
$4,000
$4,350
$4,750
$13,100
$10,000
$20,000
$15,000
$25,000
$70,000
$186,000
$218,500
$236,850
$293,750
$935,100
$0
$0
$0
$0
$0
Capital purchase
$25,000
$30,000
$30,000
$40,000
$125,000
Other startup costs
$12,000
$8,000
$5,000
$5,000
$30,000
CASH RECEIPTS
CASH PAID OUT

Advertising
Telephone
Interest
Other expenses
SUBTOTAL
Loan
principal
payment
Centered Gaming 13
Reserve and/or Escrow
$0
$0
$0
$0
$0
Others withdrawal
$0
$0
$0
$0
$0
TOTAL CASH PAID

OUT
$223,000
$256,500
$271,850
$338,750
$1,090,100
CASH POSITION
$177,000
$120,500
$123,650
$159,900
$581,050
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6.3 BALANCE SHEET
Assets
Start Date:11/30/2016
End Date:12/01/2019
$150,000
$159,900
$0
$0
$20,000
$70,000
$0
$0
Deposits
$10,000
$0
Other current Assets
$20,000
$250,000
$200,000
$479,900
Machinery & Equipment
$25,000
$60,000
Furniture & Fixtures
$10,000
$25,000
$0
$0
Land & Buildings
$80,000
$160,000
Other fixed assets
$5,000
$10,000
$120,000
$255,000
Intangibles
$0
$0
Other
$0
$0
TOTAL OTHER ASSETS
$0
$0
CURRENT ASSETS
Cash in bank
Accounts Receivable
Inventory
Prepaid Expenses
TOTAL CURRENT ASSETS

FIXED ASSETS
Leaseholder improvements
TOTAL FIXED ASSETS

(net of depreciation)
OTHER ASSETS
Centered Gaming 15
TOTAL ASSETS
$320,000
$734,900
Accounts Payable
$40,000
$75,000
Interest Payable
$15,000
$0
Taxes Payable
$40,000
$65,000
Notes, short term (due in 12

months)
$0
$0
Current part, long-term debt
$30,000
$60,000
$125,000
$200,000
Bank loans payable
$0
$40,000
Notes payable to stockholders
$0
$0
$50,000
$75,000
$0
$49,900
$50,000
$164,900
$175,000
$364,900
Common Stock
$90,000
$120,000
Retained Earnings
$55,000
$250,000
$145,000
$370,000
Liabilities & Equity
CURRENT LIABILITIES
TOTAL CURRENT
LIABILITIES
LONG TERM DEBT
LESS: short-term portion

Other long-term debt
TOTAL LONG-TERM DEBT
TOTAL LIABILITIES
OWNERS EQUITY
TOTAL OWNERS EQUITY
Centered Gaming 16
TOTAL LIABILITIES &

EQUITY
$320,000
$734,900
Centered Gaming 17
6.4 BREAK EVEN ANALYSIS
DIRECT COSTS
Fixed Costs ($)
Variable Costs (%)
Cost of Goods Sold
$8,000
3%
Inventory
$5,000
5%
Raw Materials
$3,000
3%
$12,000
5%
Salaries
$25,000
0%
Supplies
$6,000
2%
$4,000
4%
Advertising
$3,000
1%
$0
0%
Rent
$0
0%
Telephone
$2,000
1%
Utilities
$3,000
1%
Insurance
$4,000
2%
Taxes
$6,000
0%
$0
0%
Depreciation
$6,000
2%
Other Costs
$5,000
2%
TOTAL DIRECT
COSTS
$28,000
16%
TOTAL INDIRECT
COSTS
$64,000
15%
Direct Labor
INDIRECT COSTS
Interest
Centered Gaming 18
BREAKEVEN SALES LEVEL: $133,333
Centered Gaming 19
Centered Gaming Bellevue, IA
6.5 FINANCIAL ASSUMPTIONS

6.5.1 Assumptions for Profit and Loss Projections
I relied on certain websites and my own estimations/ assumptions to form the
amounts listed here. These helped me form estimations by using the numbers that
they had and formatting them to my business and the size of my business to choose
good numbers.
6.5.2 Assumptions for Cash Flow Analysis

I relied on websites and my personal estimation of costs and profits for these. Using
the websites numbers allowed me to compare mine to theirs and use it to help me
make my estimations based on the size of my business.
6.5.3 Assumptions for Balance Sheet

Documents used from websites in the assistance of creating this along with
estimations and information from other areas of the business plan. I compared them
together to make sure that it was an accurate representation.
Centered Gaming 20
7. Appendix
7.1 SWOT Analysis
SWOT Analysis
Austin Beschen
SWOT Analysis
Centered Gaming
Strengths
Easy Location: Located in a place that provides easy access for people who need it.
Service Guarantee: Our service is set up in a way that allows the consumer to control how they
use it, providing more options for satisfaction.
New to the Area: Our service is new to the area, and there has been nothing like it here before,
leaving an unanswered need that is being fulfilled by our service.
High Convenience: We are very convenient for people who are not able to access the internet or
play the games that they want, and easily allow a place for people to meet up.
Weaknesses
Low Marketing Expertise: Little marketing expertise for our business, which makes it tougher for
our business to get off the ground.
Little Reputation: We have little reputation as we have not had any time to build up a reputation
with the area that we are setting up in. This will make it tough for us to build up the customers.
No Capital: All of the money is coming straight out of our pockets or loans are being taken to
help with paying for the start up of the business.
Opportunities
Extremely High Demand: There is an extremely high demand for video games and systems, or
use of the internet. We provide an easy way for people who need access to these to get them.
Possibility of Chain: Due to the high demand, it is possible that if we get of the ground and build
the reputation that we could expand our business to other locations.
Threats
Competitors: The possibility of other competitors popping up if the business goes well, could
cause trouble.
Households: People who own the equipment they need to host themselves or other people
make it so that they have no need of our business, and with increase demand in the need, it
could make more people get systems or computers, etc.
Centered Gaming 21
7.2 Break Even Analysis
Break Even Analysis
Centered Gaming 22
7.3 Works Cited

Sources that helped me reach these assumptions and numbers.
http://www.bplans.com/internet_cafe_business_plan/financial_plan_fc.php
https://www.reddit.com/r/IAmA/comments/kn9c2/i_own_and_operate_an_inte
rnetgaming_cafe_ama_as/
https://www.techinasia.com/6-mistakes-to-avoid-before-opening-your-owngaming-cafe
https://www.sba.gov/tools/business-plan/6

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BUSINESS PLAN

Austin Beschen, Owner

Created on December 12, 2016

Page NumberPage 2/22

Liabilities & Equity......................................................................................... 16

1.3 What Drives Us

2.2 Principal Members

Page NumberPage 4/22

Wilson Dee - Technical Help

2.3 Legal Structure

2.4 Long Term Development

Page NumberPage 6/22

3.4 Competitive Advantage

4.2 Pricing Structure

4.3 Product/Service Life Cycle

4.4 Intellectual Property Rights

Page NumberPage 8/22

4.5 Research & Development

5. MARKETING & SALES

NET PROFIT (before taxes)

NET PROFIT (after tax)

6.1 PROFIT & LOSS

Salary (Office & Overhead)

Payroll (taxes, etc.)

Supplies (office & operation)

Repairs & Maintenance

Car, delivery & travel

Accounting & legal

Page NumberPage 10/22

Taxes (real estate, etc.)

6.2 CASH FLOW (10/31/16 to 11/01/19)

Accounting & legal

Taxes (real estate, etc.)

Other startup costs

CASH PAID OUT

Repairs & Maintenance

Reserve and/or Escrow

TOTAL CASH PAID

6.3 BALANCE SHEET

Other current Assets

Machinery & Equipment

Furniture & Fixtures

Land & Buildings

Other fixed assets

TOTAL OTHER ASSETS

TOTAL CURRENT ASSETS

TOTAL FIXED ASSETS

Notes, short term (due in 12

Current part, long-term debt

Bank loans payable

Notes payable to stockholders

Liabilities & Equity

LESS: short-term portion

TOTAL OWNERS EQUITY

TOTAL LIABILITIES &

6.4 BREAK EVEN ANALYSIS

Fixed Costs ($)

Variable Costs (%)

Cost of Goods Sold

Repairs & Maintenance

Car, delivery & travel

BREAKEVEN SALES LEVEL: $133,333

Centered Gaming Bellevue, IA