Team # 12
Adithya Vardhan Reddy Pailla
Nagasubramanyam Pampati
Raghuveer Rachakonda
Rohith Kumar Toom
Contents
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Mission Statement
Project Planning
Location
Mind-Map
Personnel
Budgeting
Gantt Chart
Risk Analysis
Mission Statement
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To provide a real time gaming experience to the
customers with highly equipped and sophisticated
gaming systems and tools.
Our main aim is to provide gamers with a
community to express themselves in a positive
environment.
Project Planning
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Phase 1: Research on Opportunities
Phase 2: Competition Analysis
Phase 3: Business Strategy
Phase 4: Setting Business Requirements
Phase 5: Renovation
Phase 6: Starting the Business
Location
#2012 E Randol Mill Rd , Arlington, TX 76011-8222
Market
Budget
Profit Forecasts
Research
Rent
Accounting
Insurance
Maintenance
General
Expenses
Gaming Consoles
Computers
Cash Registers
T.V
Operational
Equipment
Stop! Let’s Play
Marketing
Advertisements
Website
Renovation
Furniture
Lighting
Interior Design
A.C
Paints
Staffing
Hiring
Training
Personnel
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General Manager
Supervisor
Technical Engineer
Accounting
Sales & Marketing
General Staff
Budgeting
1.Operational Expenses
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General expenses
Equipment Expenses
Marketing
Renovation
Staffing
2.Cost of Goods Sold
1.Operational Expenses
a)General Expenses:
Task
Start-up cost
1
Store rent
2
Insurance
3
Legal permit
4
Trademark
5
Accounting software
(Intuit QB pro)
6
Audits
$ 200.67
7
Payroll services
$ 114.48
8
Maintenance
Total
$ 21,000.00
Monthly cost
$ 3,500.00
$ 1,050.00
$ 175.00
$ 80.00
$ 460.00
$ 1,000.00
$ 3000.00
$ 22,715.00
$ 7,865.15
b) Equipment Expenses
Equipment
Start-up cost
Monthly cost
1
Cash registers
$ 2,976.00
$ 40.00
2
Gaming consoles
$ 10,200.00
$ 300.00
3
T.V
4
Gaming computers
5
Sound system
$ 3,499.95
6
Server
$ 3,500.00
$ 100.00
Total
$ 87,675.95
$ 1,240.00
$ 7,500.00
Task
$ 60,000.00
Start-up cost
$ 800.00
Monthly cost
1
Advertising
$ 9,000.00
$2,000.00
2
Website portal
$ 7,200.00
$ 165.00
$ 16,200.00
$ 2,165.00
Total
d) Renovation
Task
Start-up cost
1
Flooring
$ 13,600.00
2
Paints
$ 20,300.15
3
Furniture
$ 25,050.00
4
Lighting
5
Air conditioning
6
Wending machines
$ 7,200.00
7
Wash station
$ 6,020.00
8
Security systems
$ 7,000.00
Total
$ 7970.00
$ 10,000.00
$ 97,140.15
Monthly cost
e) Staffing
Task
Start-up cost
Monthly cost
1
General manager
$ 1,509.00
$ 5,000.00
2
Supervisor
$ 1,310.80
$ 3,500.00
3
Technical engineer(2)
$ 1,115.32
$6,000.00
4
Sales
$ 198.50
$ 2,600.00
5
Marketing(2)
$ 250.00
$ 4,000.00
6
Staff & part time
emp.(4)
$ 175.00
$ 4,800.00
7
Accounting
$ 700.00
$ 3000.00
8
Security
$ 100.00
$ 700.00
9
Miscellaneous
Total
$ 1,500.00
$ 5,358.62
$ 31,100.00
1.Operational Expenses Summary
Task
Start-up cost
Monthly cost
1
General expenses
$ 22,715.00
$ 7,865.15
2
Operational expenses
$ 87,675.95
$ 1,240.00
3
Marketing
$ 16,200.00
$ 2,165.00
4
Renovation
$ 97,140.15
5
Staffing
Total operational
expenses
$ 5,358.62
$ 31,100.00
$ 229,089.72
$ 42,370.15
2.Cost of Goods Sold
Type
Estimated sales
Cost
Total expenses
1
Gaming systems
Console systems
240
$510.00
$122,400.00
2
Accessories
Controllers
Power Adapters
Head phones
Cables
814
272
1067
591
$ 38.99
$ 22.34
$ 19.99
$ 8.64
$ 31,737.86
$ 6,076.48
$ 21,329.33
$ 5,106.24
179
86
199
417
473
141
315
114
$ 28.39
$ 28.16
$ 49.99
$ 12.90
$ 49.95
$ 57.99
$ 49.95
$ 8.90
$ 5,081.81
$ 2,421.76
$ 9,948.01
$ 5,379.30
$ 23,626.35
$ 8,176.59
$ 15,734.25
$ 1,014.60
672
412
214
179
84
498
247
198
94
$ 18.33
$16.06
$ 8.89
$ 30.09
$ 39.99
$ 39.95
$ 27.99
$ 47.20
$ 3.52
$ 12,317.76
$ 6,616.72
$ 1,902.46
$ 5,439.81
$ 3,359.16
$19,895.10
$ 6,913.53
$ 9,345.60
$ 330.88
3
4
Console CD-ROM’s
a)Adventure/Action
Halo Wars
Call of Duty
b)Strategy
Fable 3
Tomb Raider Legend
c)Sports
FIFA 2011
WWE
d)Racing
NFS
Moto GP
Computer CD-ROM’s
a)Adventure/Action
Counter Strike
Unreal Tournament
Prince of Persia
b)Strategy
Age of Empires
Battlefield 2
c)Sports
FIFA 2011
NBA
d)Racing
NFS
Moto GP
TOTAL
$ 324,153.60
Start up Capital Required:
Capital Type
Monthly Cost
Annual cost
1
Start-up operational
expenses
2
Monthly operational
expenses
3
Cost of goods sold
$ 27,012.80
TOTAL CAPITAL
$ 764,544.32
$ 229,089.72
$ 42,370.15
$ 508,441.80
• The total capital required is $764,544.32 and the complete amount will be
from loan.
• Considering the loan period as 5 years & interest rate as 7% per annum,
the total interest per annum will be $53,518.10 and the principle amount per
month is $12,742.40. The total principle and the interest amount per year is
$206,426.96.
Revenue & Profit Projections:
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The revenue and the profit projections of the gaming
center will include the income from console and
computer gaming, income from the goods sold.
Console Gaming
Hours occupied per day: 5.5hrs/console
Cost: $5/hr
Total Income:
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$198,000/year
LAN/Computer Gaming
Hours occupied per day: 5hrs/computer
Cost: $4/hr
Total Income: $446,400/year
•
Income from goods sold: $421,399.68 (at 20% margin)
Revenue for Year 1
Revenue Type
Sales
1
Console gaming
$198,000.00
2
Computer gaming
$446,400.00
3
Goods sold
$421,399.68
TOTAL revenue for year 1
$1,065,799.68
Revenue Projections
Year 1
Total
revenue
$1,065,799
Year 2
Year 3
Year 4
Year 5
Year6
$1,225,669
$1,409,520
$1,620,948
$1,864,090
$2,143,703
Operationa
l expenses
($508,442)
($533,864)
($560,557)
($588,585)
($618,014)
($648,915)
Cost of
goods sold
($324,153)
($372,775)
($428,692)
($492,996)
($566,945)
($651,987)
Interest &
Principle
($206,427)
($206,427)
($206,427)
($206,427)
($206,427)
$0
Income
before
Taxes
$26,777
$112,603
$213,844
$332,940
$472,704
$842,801
Taxes
($8,033)
($33,780)
($64,153)
($99,882)
($189,081)
($337,120)
Net
Income
$18,744
$78,823
$149,691
$233,058
$283,623
$505,681
Gantt Chart
project\5Gantt chart.mpp
Risk Analysis
1. Risk Factors during Implementation phase
2. Operational Risks
1.Risk Factors during Implementation phase
Risk
Likelihood
Severity
Preventive Action
Financial
a)Loan Rejection
b)Shortage of Funds
Low
Moderate
High
Moderate
Alternate funding source in advance.
Checking expenses regularly.
Property Risks
a)Property loss
b)Theft & fraud
Moderate
Moderate
High
High
Ensure property checked thoroughly.
Investigation made before moving in.
Personnel risks
a)Contractor
b)Owner Issues
High
Low
High
High
Investigate the contractor
hiring.
Have an alternate plan.
Government policies
a)Permit Rejection
b)Change of Policies
c)Penalties
Low
Moderate
Low
High
Moderate
Moderate
Make sure to meet govt. standards.
Regular updates with officials.
Avoid crossing govt. regulations.
before
2.Operational Risks
Risk Type
Severity
Likelihood
Preventive action
Business Strategies and policies
High
High
Deep insight of risks &
opportunities is needed
Organizational structure
High
moderate
Interview the employees
before hiring.
Good planning is needed
Competitors
High
High
Initial research work required &
necessary business strategy is
to be adopted
Customer Expectations
Moderate
Moderate
Quality service to be provided
Computer Failures
High
Moderate
Regular servicing required
Leadership skills
High
Low
Owner to posses leadership
skills
His absence may require
highly qualified manager
Vendors
Moderate
Moderate
A good business relationship
might reduce the risk
Other Risks
a)Natural disasters
b)Theft & robbery
High
Moderate
Low
Moderate
Obtain insurance
Adopt security systems
Crystal Ball Analysis
NPV.xlsx
Thank You!