Essay: Set up of a gaming arena, 'Game Zone'

EXECUTIVE SUMMARY: Finally the dream of the gaming freaks in Kolkata has come true. GAME ZONE is coming up with a complete entertainment centre including a new technology of laser tag, a bowling alley and a gaming arena – all under one roof.
Laser Tag, the world’s best combat sport, has finally arrived in India. Laser tag is basically a team or individual sport where players attempt to score points by engaging targets, typically with a hand-held infrared-emitting targeting device. Infrared-sensitive targets are commonly worn by each player and are integrated within the arena in which the game is played. Since its birth in 1979, with the release of the Star Trek Electronic Phasers toy manufactured by the South Bend Electronics brand of Milton Bradley, laser tag has evolved into both indoor and outdoor styles of play, and includes simulations of combat, role play-style games, or competitive sporting events including tactical configurations and precise game goals.
Bowling is a sport in which players attempt to score points by rolling a bowling ball along a flat surface in order to knock down objects called pins. There are many forms of bowling, with the earliest dating back to ancient India. Origins can also be traced to ancient Finland and Yemen, and much later in 300 A.D. in Germany. In the US the best known form of bowling is probably the North American game of ten-pin bowling. This form, in both amateur and professional versions, is played around the world, making it one of the largest participation activities.
Both Laser Tag and Bowling are easy to play and since one can play with just one partner or with a group, it makes these games an interesting pastime. Being indoor all-seasons sport, these games suits Indian conditions admirably and appeals to the young, gaming freaks and the sporty.
GAME ZONE, a fully equipped state-of-the-art sports-cum-leisure centre, is located at 80ft road, Middleton Row in Kolkata. The main aim of the centre is to cater to the need of the target market. Wide ranges of games are available for the visitors such as laser tag, bowling, air hockey, foosball, pool and snooker and other games. Main attraction is the international standard laser tag and 4 – lane bowling alley. Apart from this, GAME ZONE also offers a variety of delicious dishes such as Indian, Italian, and Chinese dishes from 11:30 to 23:30 hrs. The food court is outsourced from Polynation.
GAME ZONE targets Kolkata first and plans for further expansion will be formulated after sufficient profits are earned. Kolkata is India’s third most populous city, it has the highest number of Anglo Indians in India, and it has the largest and the fastest growing market. With the population of approximately 8 million; constituting of the youth mainly. These facts open prospects for the business to flourish in Kolkata. The Arena being one of its kinds will face no competition in the near future thereby monopolizing the target market, thought there are some substitutes like paintball in the case of laser tag and amoeba in the case of bowling and other games.
Immense marketing strategies will be used to develop the target market for laser tag and penetrate the current simulated shooting market to make the sport popular. The marketing mediums such as OOH media, the traditional hot air balloon, news papers, radio, hoardings in core areas, free food coupons, etc. will be utilized.
The arena’s manpower includes 63 employees. Excess training programmes will be conducted for the technical heads in the case of laser tag. Two technical heads will be sent to the United States for a 15 day training programme to get accustomed to the laser tag system.
The liability of the partners in the firm will be unlimited. This implies that the partners will be liable up to the extent of their personal property with regard to the liabilities of the firm.
The main aim of the firm is to help Indians experience simulation-shooting and targeting sport, and build strong relationships with the customers so that they can create goodwill in the market. The firm tries to cover each and every spectrum of the society which will help the business create a large group of customers posing a threat to the future competitors. Our main strategy is going to be product development strategy.
Thus to summarize, with a new idea in India along with its existing potential market, GAME ZONE is looking forward to make itself a successful brand.
PROFILE OF THE ENTREPRENEURS
Sanskriti Sethi brings her drive, expertise and professionalism to Game zone as its partners. Her commitment to providing long-term cost-savings and productivity improvements for clients is an underlying goal as she manages the company’s day-to-day operations throughout the Bangalore area. She completed her Bachelors in Business Administration from Christ University Bangalore in the year 2015. Having worked in Goldman Sachs for more than three years, Sanskriti gained valuable experience from the ground up. This background fostered Sanskriti’s firm understanding of what makes the ideal match between employee and employer, knowledge she leverages to benefit Gamezone’s clients and employees.
Sanskriti is active in the local community and a recognized member of several chamber of commerce and community organizations. She is co-founder of the Jaipur’s Young Professionals Network. Sanskriti is also a board member for the Active 20’30 Service Club, a service organization helping young men and women in the Jaipur area. Sanskriti is the youngest to be awarded the Exceptional Under 30 award by the Dainik Bhaskar, recognizing business leaders under the age of 30. Being enthusiastic and an avid learner provides her a more keen interest in this business. She wishes to learn more about new technology which she may implement in her business. This could provide Gamezone an advantage over its future competitors. She wishes to bring change in everything that she puts herself into. Her believe in ‘change’ may provide it an edge over any other gaming zone business.
Rishav Bagla was born in Kolkata and had the passion for games since childhood. Even while completing his Bachelors in Business Administration From Christ University he made sure to follow is passion of sports and gaming. His passion didn’t leave him even when he was working with KPMG in Bangalore and he used to make sure that he devotes at least two hours to gaming even if he would have had a long and tiring day. His experience in previous company has taught him to manage clients and to maintain financials and how to get more finance for his start-up. Thus as a partner, his primary responsibility at Game zone is to get more clients and also to secure funds from investors.
Rishav is active in field sports as well. He has played football at national level and has been an avid follower of cricket and hockey. Rishav strongly believes in wholesome development of child. He strongly feels that children today are too much inclined towards studies and sports. Video games bring a different angle to a child’s development and this is what he aims to bring about in a child through Gamezone. His extreme knowledge in the field of Gaming has given the other partners a chance to rely on him in terms of any new invention idea. Creativity and excitement defines Mr. Bagla which is why he would be taking the responsibility of introduction of any new Game in the business.
Raunaq Goyal has been a dear friend of Rishav since they pursued their Bachelors of Business Administration degree together from Christ University in Bangalore. and they have been together in all sorts of things since day one. When Rishav told Raunaq about idea of Gamezone, Raunaq was more than willing to help Rishav in this. After having done his BBA from Christ College, Raunaq joined Goldman Sachs and since then, he was eager to start something on his own. After working for 2 years, he was just thinking to shift when Gamezone came his way.
Raunaq is a quiet but perfection loving person. He has always made sure that things get outwell from his end and that’s what he brings to the table. He is handling the minute details of marketing Gamezone to all the necessary stakeholders. While this is a challenging job he feels, this is what he has been wanting to do and his co-partners have backed him up with this job. Raunaq’s interest in technology and passion for games makes him an important background person for Gamezone. He becomes the partner who would handle the technology and innovation part of the business. He has had a keen interest in any new invention across the globe and makes sure he goes into every detail behind every innovation. ‘
‘
PARTNERSHIP DEED
This DEED OF PARTNERSHIP is made on 22th march 2018 by and between
– Ms. Sanskriti Sethi D/o Mr. Pradeep Sethi
– Mr. Raunaq Goyal S/o Mr. Sunny Goyal
– Mr. Rishav Bagla S/o Mr. Sri Prakash Bagla
Whereas, the above named partners have decided to start the partnership business of gaming arcadien the name and style of M/s GAME ZONE with effect from April 1st 2018 on the terms and conditions hereinafter mentioned and have desired to reduce the terms and conditions into writing.
NOW THIS INDENTURE IS WITNESSED AS FOLLOWS:
‘ Nature of the business: Our business comes under Entertainment Industry. It includes providing of high class entertainment opportunities to common people.
‘ Name of the business: ‘GAME ZONE’
‘ Nature of the Business: Our Business comes under the service industry.
‘ Address of the business: Our business is situated at Kolkata in West Bengal, India
Middleton Row , Kolkata.
‘ Names and addresses of partners: Ms. Sanskriti Sethi, Mr. Rishav Bagla and Mr. Raunaq Goyal
Sanskriti Sethi resides in 7, Park Street M.I. Road, Jaipur in Rajasthan.
Rishav Bagla is a resident of CD- 315 Salt Lake, Sector-1, Kolkata in West Bengal
Raunaq Goyal is a resident of S.I.P. City Lights, 1st floor, 25 Sevoke Road, Siliguri in West Bengal.
‘ Profit or loss sharing ratio: Profits or losses are shared in the ratio of 1:1:2. Wherein Mr. Bagla is entitled to a double share than Mr. Goyal and Ms. Sanskriti
‘ Contribution of capital: Capital is being contributed by all the three partners. Mr. Mr. Rishav Bagla has contributed Rs. 1 crore and the other two partners have contributed Rs. 50 Lakhs each.
‘ Salary and commission to partners: Either salaries or commissions are taken by the partners.
‘ Drawings: There will be 6 percent interest on drawings.
‘ Interest on drawings: Interest on drawings is 6% p.a. for all the partners.
‘ Duties and powers of partners: All the partners Rishav Bagla, Sanskriti Sethi and Raunaq Goyal equal powers and duties.
‘ Duration of the business: 11:30 hrs to 23:30 hrs
‘ Accounting period: Accounting period is from April to March i.e. the company follows financial accounting period.
‘ Operation of bank account: Mr. Rishav Bagla is authorized to operate the bank account i.e. he is the only person authorized to operate the bank account.
‘ Decision making: Ms. Sanskriti Sethi and Raunaq Goyal are authorized to take decisions. In their absence Mr. Rishav Bagla is authorized to take the decision.
‘ Retirement of partner: Any Partner may retire from Partnership after giving a notice to the other Partner (s) of not less than one month in writing and at the expiry of such notice period he shall be deemed to have retired.
‘
INDUSTRY PROFILE
The gaming industry is sometimes also referred to as interactive entertainment industry. The industry deals with making, developing, marketing and selling of games. The history tells us about the shift of the industry from the focused markets to the mainstream markets where services are developed to suit the needs of all types of people. Gaming industry focuses on employing those people who have either worked on some traditional business or have worked previously with some gaming company. Some of the positions which are common to this industry include game programmer, games designer, game artist and game tester. The development cost is huge. Not only do we incur costs in developing an idea, formulation and implementation takes to another level. A unique way through which this industry can generate revenue is through royalties. Another highlighting feature about this industry is that it can attract any age group. Not only the youth but also the kids and elderly get attracted to a new innovation. This is because games can be developed to suit and fit the needs and demands of the people. The gaming industry has an added advantage of being able to cater not only to individuals but also a group of people. So an individual as well as a huge group can enjoy together. This is especially in case of outdoor games and games like bowling, laser tag, etc.
MEDIUM SCALE INDUSTRY
Game Zone can be defined as a medium scale industry according to Indian systems. This is because in India, a medium scale enterprise is the one in which investment in fixed assets is minimum 5 crore and maximum 10 crore. And the total investment of the business is minimum 2 crore and maximum 5 crore. Although the scale of a company is also decided by the number of employees working, a company like ours need not necessarily fulfil this criterion. This is because if we see the need of the business, it does not require much of staff but the equipments and infrastructure is such that the investment reaches up to the level of that of a medium size enterprise.
‘
BUSINESS OUTLINE
The arena established, targets Kolkata at first and plans of expansion will be formulated after sufficient profits are earned. Kolkata, a fast developing city, with the population constituting of the youth mainly, opens prospects for the business to flourish in Kolkata. The laser tag arena being one of its kinds will face no competition helping them monopolize in the target market. The arena offers many modes of entertainment through laser tag, bowling, pool, foosball, air hockey and other gaming. The arena also has a franchised food court which will help the customers grab a bite while they enjoy.
The arena is located at the following address in Kolkata,
GAME ZONE,
Midleton Row,
Kolkata.
West Bengal.
VISION
To be the leading entertainment provider in terms of gaming.
MISSION
To enjoy the first mover advantage regarding laser tag and provide various high tech gaming in one roof.
PLAN SUMMARY
GAME ZONE is partnership firm established with capital base of Rs. 5 crores. The three partners, Rishav, Raunaq and Sanskriti are bringing in 1 crore and 50 lakh and 50 lakh of capital respectively. The profit sharing ratio would be 2:1:1. GAME ZONE is located in Kolkata keeping in mind the per-capita income and the standard of living of the people.
The main service which our firm would be providing is entertainment. Main attraction is the international standard laser tag and 4 – lane bowling alley. Laser tag is a completely new concept coming to this country. Laser Mania is a state-of-the-art “laser” tag game played in a darkened 6,000 square foot arena in which the players seek to capture the opponents’ base. Smoke swirls around your feet, lights flash, and music pounds. You fire your “laser” through the din to strike your opponents and capture their base while trying to avoid being shot. Laser Tag is a heart-pounding, adrenalin-pumping game, in which strategy and luck are joined to defeat your opponents.
Along with this we also have many other games that would not only entertain but also will give the customers a fulfilling experience.
FEASIBLITY OF THE PROJECT
Kolkata is India’s third most populous city and fifth-most populous urban agglomeration.
The city is the third largest hub for high net worth individuals and is home to over 10,000 dollar millionaires and about 60,000 super-rich people who have an investable surplus of Rs. 4.5 crores (US$ 1 million) and Rs. 50 lakhs (US$ 103,000) respectively. Kolkata has one of the best educational institutions in India and the standard of education is considered to be very high compared to many other states in the country. It is for this reason that students graduating from the Universities in Kolkata are one of the most sought after by the multinationals, Corporate and big industrial houses.
‘ GAME ZONE is located in one of the commercialized area of the city surrounded by many educational institutions and commercial areas and close to all shopping areas. It is also the first of its kind entertainment center located in Midleton Row. Thus attracting more customers as this will save their travelling time.
‘ Kolkata has the largest number of gamers and the most played game is Counter Strike which is the simulation of first person shooter. Laser tag will provide the real time experience of the same.
‘ Another reason for laser tag to be a success is its price. A person pays just Rs.200 per game which is half of the current combat game (paintball).
‘ As far as laser tag is concerned we don’t find any reason why this will not be a success in Kolkata, keeping in mind that it is very successful in abroad.
‘ Now, as far as our other entertainment service is concerned like bowling, air hockey, foosball, pool there is very little competition particularly in this area. We provide all the entertainment under one roof. If one wants entertainment and is a gaming freak this is the ultimate place for that person to be.
FEASIBILITY OF LASER TAG OVER PAINTBALL
LASER TAG TAGGING PAINTBALL
No pain, no bruises and no mess Painful, messy and greater risk of injury.
Laser tag can be enjoyed by a wider market than paintball, because there is no physical contact or pain.
Anyone from 6-45 will be interested in playing. Girls will enjoy too. Paintball and Air soft have a very loyal following that is mainly Males between the ages of 15-30.
Guns’ range outstrips paintball markers or air soft guns. Guns have an integrated red dot scope. Short range firing. Thus combat area need to be smaller.
Playing field can be stretch from the beach to the forest. No protective netting required. Playing field is usually small as area needs to be surrounded with protective netting.
No protective gear required and thus more comfortable. Protective gear like masks and body protectors mandatory.
No pellets to purchase. Guns can be reloaded as and when required. More expensive as pellets are used and need to pay extra when pellets run out.
Medic Box to extend ‘life’ of gamer. Also can be used as part of the warfare strategy. No such thing as Medic Box.
Ammo Box for gun reload. Also can be used as part of the warfare strategy. No such thing as Ammo Box.
COMPETITORS ANALYSIS
India does not possess many laser tag arenas hence we have not much competition in this area, and hence can take the advantage of this and introduce more gaming experiences under one roof. But a similar game known as ‘Paint Ball’ is getting well known among the masses. Laser Tag is much more advanced and it is much easier when compared to Paint Ball. So the new technology doesn’t have a competitor as it is but it has a substitute.
As far as bowling, pool, air hockey and other games are concerned we have some stiff competition in this field. There exist many small unorganized players in the markets but they lack the overall experience involved with the game which we are to provide the customer with. Moreover the competitors do not have such a huge gaming arcade, where various types of games are available all in one roof.
There is a few threat of competition by Amoeba and Paintball but the services provided by us are of no comparison.
INDUSTRY GROWTH ANALYSIS
Currently the Indian Gaming Industry is worth Rs.270 Cr and by the end of 2017 it is estimated to touch Rs.1400 Cr. This confirms the fact that the Indian gaming industry is poised at the helm of the biggest revolution in recent times. The gaming industry worldwide is a huge market with lots of challenges and compensation involved, and it can be no different in India. Recreation is currently one of the most exciting sectors in India. The industry is still at an early stage of development. But with the increasing entry of some of the more established Indian entrepreneurs and corporate housed, the industry could be worth USD 1.06 billion per annum within the next 2 – 3 years. Leisure consultants are experiencing a boom in demand for their services.
SWOT ANALYSIS
STRENGTHS
‘ Diversified
‘ Convenience
‘ Location CAPITALIZE ON STRENGTHS
‘ Favorable Consumer Response
‘ Management has skills and experience in variety of areas.
‘ Quality for quantity money
‘ A new ambience for people
WEAKNESS
‘ New entrant
‘ No experience ADDRESS WEAKNESS
‘ Committed to expansion
‘ High margins provide flexibility
‘ Having a dedicated and hard working team
OPPORTUNITIES
‘ Value for money
‘ Would be preferred by the local crowd MAXIMIZE OPPORTUNITIES
‘ Build consumer preference
‘ Ease, quality and consistency
‘ Commitment to relentless innovation ensures market benchmarks challenged.
THREATS
‘ Future competition MINIMIZE THREATS
‘ Brand building
‘ Create brand loyalty
WORST CASE SCENARIO AND CONTINGENCIES
Some of the worst possible events are also kept in mind so that there is no emergency to change the plan in the future. The worst cases that we can expect are:
1) People not satisfied with our service.
2) High cost felt by the people
3) Inflation.
4) Non-Repetitive value.
5) Entry of new competitors.
6) Less Foot Fall.
7) Non availability and non cooperation of labor.
8) Theft and fire.
9) Unreliable equipment and labor.
10) Bureaucracy.
LEGAL REQUIREMENTS
To start a gaming arcade, we require Premises License, the Ticket Selling License and the Performance License. The partnership firm should also be registered under the Indian Partnership Act of 1932. With the license, following documents are also needed:
1. A plan (map) showing details of the premises where the gaming arcade will be placed for playing games. The map should also show the number of lanes.
2. Geographical location of the site.
3. Certificate or receipt of fire-fighting equipments installed in the proposed premises.
4 .If the premises are rented, then Non Objection Certificate from the concerned landlord stating that he does not have any objection for starting the above said activities.
5. No Objection Certificate from the Fire Brigade office.
6. No Objection Certificate from the Health Department of Kolkata Municipal Corporation.
7. If there is a telephone, then a certificate from MTNL office.
8. No Objection Certificate from the Electrical Inspector.
9. Number of bowling alleys.
10. Undertaking application/notice for not installing any gambling equipment.
The fee structure is as under:
Premises license fee Rs.100 per 1000 sq. ft (per month)
Ticket selling fee Rs.100 per year
Performance license fees (this will be Divisional Asst. Commissioner of Police) = Rs. 20,000
Registration under shop and establishment act = Rs. 7,000
Registration under the Partnership act of 1932 = Rs. 2,000
‘
MARKETING MIX
‘Marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response in the target market.’
– Philip Kotler.
The Marketing Mix consists of everything the firm can do to influence its demand in the market for its services or product. The many possibilities can be collected into groups of variables known as the ‘Seven P’s’ ‘
PRODUCT:
‘GAME ZONE’, our product is the centre that serves the need of almost every income group who enjoys going to different places. There has been a contract with interior decorators for the interior designing of the centre. ‘GAME ZONE’ is a most amusing place which gives an insight of what the place actually holds and also includes world class games giving each and every customer an extremely pure gaming atmosphere.
PRICE:
Most of the people coming to ‘GAME ZONE’ will be charged according to the games they play and the membership license they take. Initially we will come out with lots of promotional offers to promote ‘GAME ZONE’ and attract large number of customers to establish ourselves in market.
PLACE:
‘GAME ZONE’ is situated at Middleton Row ,which is also one of the prime area of south Kolkata. This place has been selected because it is close to many educational institutes and corporations which makes it easier for people to commute. Also the area is such that there are quite a lot of people who would cross by here and may land up seeing GAME ZONE each time they pass by.
PROMOTION:
Initially we are promoting ‘GAME ZONE’ through newspapers like Kolkata Times, supplement of TIMES OF INDIA and other local news papers. We will also be doing hand to hand advertisements by giving out of pamphlets putting advertisement on radio and also putting hoardings. Word of mouth will play a major role in the advertising of ‘GAME ZONE’.
PHYSICAL EVIDENCE:
Physical evidence will include the laser tag arena, bowling, pool parlor, the advertising we do, the bills to customers and the ambience we provide.
PEOPLE:
People in ‘GAME ZONE’ include the manager, assistant manager, accountants, staffs, game staffs and securities. The efforts of the crew are coordinated in a well knit system to ensure minimum time lag and rendering par-excellence customer service for maximum customer satisfaction.
PROCESS:
The process includes playing games in arena, bowling lane and also going through a gaming hell. And also enjoying different cuisines at Polynation. The customer can also become the part of ‘GAME ZONE’ by becoming the member of the gaming arena. The food court will be outsourced to ‘POLYNATION’ on the basis of rent. Overall the process includes reservation in the arena or of a table, paying for it, enjoying the sport and also experiencing something new during the specified process.
STP
SEGMENTATION
Market segmentation is undertaken in order to focus on the subsets of the prospects that are most likely to purchase our offering. This will in turn help us take the best returns from our marketing and entertainment expenditures. Based on the need our service satisfies, the market is segmented into diverse sections. They are:
Demographic segmentation: These include factors like age, social esteem, and income levels which purely relate to purely population related characteristics the masses possess. For ‘GAME ZONE’ the main customers is going to be between 6 to 45 years who are crazy about games and have a high life style.
Psychographic Segmentation: These include lifestyle and personality of individuals. Many of them are influenced by the image the company holds which in our case is ‘true value for money’ concept which is a general thinking of almost every Indian customer. We are looking for civilised Indian customers who wants to visit a new concept and is more attracted towards new customers.
Geographical segmentation: This takes into consideration the region to which the customer belongs to or prospects to visit. The prevalent atmosphere and lifestyle of the location will determine the success of the service to a large extent. We are located in the posh area of Kolkata which makes us different from others.
Behavioural Segmentation: It is based on the benefits sought in the service, usage rate of the service and the social status enjoyed by the population. The benefits that the customer derives from the service as well as the prospect’s preferences determine the acceptance and complete incorporation of the service.
TARGETING
Targeting the right customers is one of the most important criteria that need to be looked at in order to create a potential customer market. The major sectors that we would be targeting are:
Middle, Upper-middle and High income groups: We are targeting this range of income groups as we are launching this service for those who are focussed towards entertainment sector and looking forward towards new concepts in the country.
Age groups: We are targeting this particular segment of age groups from 6 to 45 years who will make the place more innovative and different types of people will be coming.
POSITIONING
We try to position ourselves as a centre which provides the people with the desired expectations and a different type of experience. More over our tagline specifies that if a person need to experiences a complete entertainment package he or she needs to contact us.
UNIQUE SELLING PROPOSITION
The USP of game zone is’ a complete gaming package all under one roof ‘. The USP of game zone is that it provides the game freaks a complete package. This arcade has been specially built for the indoor game lovers who are highly enthusiastic about gaming.
PORTERS FIVE FORCE ANALYSIS
Threat of new entry-
While many opportunities for rapid industry growth and profit exist, the threat of new entrants in the gaming market is somewhat limited because of sizable barriers to entry and learning/experience curves. The profits draw new entrants to the industry, however, they shortly discover that they do not possess ‘sufficient expertise and resources’ to become successful as exemplified by ‘small game developers struggling to absorb the rising costs of developing games in preparation for wide-scale market adoption of the new generation of consoles. These firms also ‘were more capital constrained, had less predictable revenues and cash flow, lacked product diversity, and were forced to spread fixed costs over a smaller revenue base’. Notable barriers to these new entrantsinclude: sizable scales of economies of scale in production and operations, learning curves, strong brand loyalty to established publishers, high capital requirements, and difficulty establishing networks of distributors and retailers. While profit incentives continue to lure new entrants into the market, these extremely formidable barriers simultaneously prevents and deters new entrants from exerting strong competitive pressure.
Competitive Rivalry-
Though there are no direct competitors to our business but the substitutes that people may find are paintball and amoeba. But these places cater to only one particular game whereas our concept is about an entire gaming roof. Rivalry among these firms is weakened because the market is fast-growing, the number of firms is great thus diminishing the effect of strong competitive moves, and the product-lines are highly differentiated and appeal to a variety of diverse segments. So rivalry is classified as low or negligible at least in the near future. This allows our business to earn greater profits.
Threat of Substitution-
There are basically three main factors determine the strength of the competitive force exerted by sellers of substitute products: whether substitutes are readily available and attractively priced, whether buyers view the substitutes as being comparable or better in terms of quality, performance, and other relevant attributes, and whether the costs that buyers incur in switching to the substitutes are high or low. The gaming business is a part of the broader entertainment business that competed for the leisure time and discretionary spending of consumers against such other forms of entertainment as motion pictures, television, and music. While an argument is made that movies, television, and music exert a strong competitive force because they are readily available and attractively priced and cause buyers practically no switching costs, many consumers do no associate these varying media to compare to the same type of performance and interactivity that games offer; therefore they serve completely different functional purposes. For this reason, it is more logical to view the substitute products as exerting a low competitive force on the industry.
Supplier Power-
Suppliers can exert considerable bargaining power under the following conditions: industry members incur high costs to switch purchases to alternate suppliers, needed inputs are in short supply, a supplier has a differentiated input that enhances the quality or performance of a product, there are only a few suppliers of a particular input, and some suppliers threaten to integrate forward into the business of industry members. In our business however, the company has a strong power. This is because it has no direct competitors so it can exploit the customers and however way it wants. The suppliers have for a considerable amount of time employed forward vertical integration to develop and market games for their respective platforms.
Buyer Power-
On a large scale, buyers have moderate bargaining power because they can and often do switch brands willingly without switching costs based on the title and genre of the game they want to play, they often have information from game reviews on the products, prices, and costs, and have the discretion of whether and when to purchase games (used and rental copies are frequent examples of moderate buyer bargaining power); however, on a smaller scale, if a buyer wants a specific title and genre (sometimes specific characters such as Laser Tag), the bargaining power will be reduced.
After evaluating the collective strength of the competitive forces, it becomes clear that the video game software publishing industry is extremely profitable ‘ once a firm gains the requisite learning and experience curves necessary to penetrate the market. Although there are limitations to dealing with suppliers that are vertically integrated forward and demand royalty payments, should a firm gain experience, it will enjoy high levels of profitability because of rapid industry growth, competitive forces preventing new entrants, and weaker forces from substitute products and buyers.
MARKETING STRATEGIES
In order to market our services includes both kinds of products. Firstly marketing strategies have been adopted to promote the new service like laser tag arena which has not been popularized in India till date. Secondly we need to market our other services in order to pursue people to come to us to enjoying the jolly ride of gaming. The marketing strategies have been listed below.
1) Marketing through newspapers.
2) Marketing through radio.
3) Marketing through hoarding.
4) Marketing will be done in PVR cinemas through video advertisement during intervals.
5) Marketing will also be done through social networking communities.
6) Marketing through our own website by creating software.
7) Marketing would also be done through banners and hoarding in our own laser tag arena.
8) Marketing would also be done through membership cards and discount offer.
9) Competitions could be held quarterly in order to promote the service and prize offer could be given.
SOURCES OF RAW MATERIALS AND TECHNOLOGY
1) Software:
Ron Francis
Director
Battlefield Technologies Ltd and Funtrak Ltd
Tel: +44 (0) 870 7740153
Mobile: +44 (0) 7889 444393
Email: or sales@battlefieldtechnologies.com or sales@funtrak.co.uk
2) Bowling Lane:
Frankelin Berdich
United Bowling, Florida
Contact No. 877 861 1433.
3) Pool:
Sharma Billiards
Pitampura, Delhi
Contact No. +91 98912 24267
4) Web Site:
Mr. Dev Prasad,
X Techie, Kolkata.
GESTATION PERIOD
The gestation period is a period in which the concept or the idea is developed into a Plan. The plan is put into effect from April 1st 2018.
More than one year is the gestation period because:
– The building of arena will take time.
– We don’t want to take risk and so we are going to have a complete economic and marketing analysis. This would help the business to have an estimate of demand and sales.
– The partnership deed is signed on 22th march 2018 so there is no troubles while in the gestation period.
– This is a complex plan so we are not in a hurry to start the business instead we are taking time to develop the concept and come up with the estimates.
ORGANISATIONAL STRUCTURE
HUMAN RESOURCE SPECIFICATION
POSTS AGE GENDER JOB QUALIFICATION JOB DESCRIPTION
GENERAL MANAGER 30-35 Male Undergraduate and at least 2 yrs. work experience. He should also have good communication skills. He is the one who will look after the entire gaming arena. He is answerable to all the customers’ queries.
ASSISTANT MANAGER 30-35 Male Undergraduate and no work experience required. He is the one who will help the general Manager in looking after each floor. He will have a complete report about each and every thing happening on his floor.
ACCOUNTANTS 30-35 Male Undergraduate and at least 1 Year accounting experience. He is the one who will manage the entire account work.
RECEPTIONIST
20-26 Male/ female Undergraduate and good communication skills. She/he is the one who will handle the entire work on table right from clearing minor customer doubts till looking after the entire arena.
GENERAL STAFF 25-35 Male Intermediate-Pass He will look after the gaming equipments and see if there is any problem in gaming.
SALARY ACCOUNT
1ST YEAR
STAFF NUMBER OF STAFF SALARY PER MONTH PER PERSON (Rs.) SALARY PER YEAR OF ALL STAFFS (Rs.)
General Manager 2 18,000 4,32,000
Assistant Manager 6 10,000 7,20,000
Accountant 1 10,000 1,20,000
Receptionist 2 10,000 2,40,000
Security Staff 8 5,000 4,80,000
Technical Heads 2 16,000 3,84,000
Technical Staff 6 7,000 5,04,000
General Staff 10 5,000 6,00,000
Games Managers 4 7,000 3,36,000
Pool/Air hockey/Foosball Staff 6 5,000 3,60,000
Maintenance Staff 12 3,000 4,32,000
Baggage Keepers 4 3,000 1,44,000
TOTAL 63 47,52,000
2ND YEAR
NUMBER OF STAFF SALARY PER MONTH PER PERSON (Rs.) SALARY PER YEAR OF ALL STAFFS (Rs.)
General Manager 2 19,800 4,75,200
Assistant Manager 6 11,000 7,92,000
Accountant 1 11,000 1,32,000
Receptionist 2 11,000 2,64,000
Security Staff 8 5,500 5,28,000
Technical Heads 2 17,600 4,22,400
Technical Staff 6 7,700 5,54,400
General Staff 10 5,500 6,60,000
Games Managers 4 7,700 3,69,600
Pool/Air hockey/Foosball Staff 6 5,500 3,96,000
Maintenance Staff 12 3,300 4,75,200
Baggage Keepers 4 3,300 1,58,400
TOTAL 63 52,27,200
3RD YEAR
STAFF NUMBER OF STAFF SALARY PER MONTH PER PERSON (Rs.) SALARY PER YEAR OF ALL STAFFS (Rs.)
General Manager 2 21,780 5,22,720
Assistant Manager 6 12,100 8,71,200
Accountant 1 12,100 1,45,200
Receptionist 2 12,100 2,90,400
Security Staff 8 6,050 5,80,800
Technical Heads 2 19,360 4,64,640
Technical Staff 6 8,470 6,09,840
General Staff 10 6,050 7,26,000
Games Managers 4 8,470 4,06,560
Pool/Air hockey/Foosball Staff 6 6,050 4,35,600
Maintenance Staff 12 3,630 5,22,720
Baggage Keepers 4 3,630 1,74,240
TOTAL 63 57,49,920
FRINGE BENEFITS
Fringe benefits are typically insurance policies and other perks provided by an employer to employees as part of a comprehensive compensation package. Our business will provide fringe benefits like:
‘ For employment security- this kind of benefits give the employees benefits like, leave for grievances, leave for maternity, leave travel pay, overtime pay, etc. It may be further classified as
1. Payment for time not worked- this includes all those times when the worker may have been absent from work and be compensated for the same. This includes, sick leave with pay, vacation pay, paid lunch periods, etc.
2. Extra pay for time worked- there maybe times when the employees work above the actual working hours and devote and do more than what they are actually meant to do. They may work on holidays and festivals and may work extra during any special occasion like a party. For this the workers will be given, premium pay, incentive bonus, food cost subsidy, etc.
‘ For health protection- the workers here will be dealing with certain hazardous equipments. Though immense care will be taken but in case of any negligence if harm is caused to the employee, they are given, accident insurance, disability insurance, hospitalization, sick benefits, medical care, etc.
‘ For personal identification, participation and stimulation- this includes benefits like, anniversary and birthday awards, attendance bonus, beauty parlour services, counselling, stress counselling, etc.
‘ Employee security- attention will be given not only to the employee but also to the family of the employee working with the company. Further a continuous salary and pay gives a constant sense of security to the family.
RECRUITMENT SOURCES
Apart from the control which will be exerted by the partners, there will not be any kind of internal support. Since it is a new venture, internal source of recruitment is not possible. So the business decides to focus on external sources to gather and collect interested people. Since it is a business venture which may attract the youngsters more than any age group the major source of recruitment could be from campus placements. Students interested can be picked up from reputed universities. Not only this, advertisements will also be placed. They will be put up at social networking sites and also in the recognized and highly read newspapers and magazines. Recommendations will also be another way that could be chosen for recruitment. This recommendation could be from the partners, their family and friends. Ex-colleagues can also act as recommenders.
SOURCES OF FUND
The capital is been contributed by the partners.
Rishav Bagla – 1,00,00,000
Sanskriti Sethi – 50,00,000
Raunaq Goyal – 50,00,000
Loan from IDBI Bank – 3,00,00,000
The partners bring in different amount of capital. One partner is bringing in 1 crore rupees and the two others are bringing in Rs. 50,00,000. A loan is been taken from IDBI bank of Rs 3,00,00,000 at the rate of 14.5 %. The partners have equal say in the management and the profit and loss of the company.
‘
INITITAL INVESTMENTS (A)
PARTICULARS AMOUNT (in Rs.) DESCRIPTION
Laser Tag Equipment 57,26,712 The Break-up is mentioned below.
Bowling lane 84,00,000 Pinsetter, pin setter parts, lane system, scoring system. Gutter and capping and ball return.
Designing and layout 1,04,86,083 Contract is given to creative works theme. A detail break up is given below.
Central Air Conditioner 14,50,000 35 ton blue star a/c. (Central Air Conditioner)
Furniture and fixtures 5,39,000 Sofas, office desks and chairs, sanitary ware, etc.
Glasses 2,34,000 1200 sq ft costing 195 per sq ft in Rough & Tough-end glass.
Fire Extinguishers 2,02,500 45 fire extinguishers purchased for Rs. 4500 each.
Security 7,45,000 C.C.T.V., entire security system, vaults, computers, fire alarms also billing machines
Sound system 9,00,000 Dolby Digital Surround Sound for laser tag. It covers the entire place.
Three Desktops 1,84,492 3 DELL Desktops – 2GB 800MHz DDR2 SDRAM, 320GB SATA 3.0Gb/s with Native Command Queuing, DellTM IN1910N 18.5″ Widescreen Flat Panel Monitor
Generator and transformer 29,53,000 Swan Corporation 90Kv Generator & Transformer of Season 1 & 2
Pool table 1,20,390 2 SBA tables fully equipped
Snooker Table
2,70,670 2 SBA Tables fully equipped
Air hockey table 52,000 4×8 ft 2 SBA table fully coin operated with sound system. Each costing Rs 26000
Foosball table 1,09,900 4 tables Solid core legs, 3 piece Teflon bearings with play fields. Each costing Rs 27475.
LCD 8,30,000 20 Philips LCD TV 32AFL5203
PLASMA LCD 3,00,000 64 INCHES,SONY,BLUE RAY DISK
Lighting 16,32,500 600 Bajaj retail lights BLDRS 450 PAR of 240 watts, 100 Inalsa Emergency Light Sparkle
TOTAL (A) 3,54,36,247
START-UP EXPENSES (B)
Wi-Fi connection 10,000 2 Airtel 16 mbps connection with 2 routers
Fixed Line 20,000 Airtel Unique directory telephone service
Recruitment and Training expenses 7,20,000 Recruitment and training of staff
Research 3,50,000 For research and development is made.
Marketing Expenses 71,83,500
Legal Charges
52,000 Shop and Establishment Act, CST Registration, VAT Registration, etc.
TOTAL (B) 83,35,500
WORKING CAPITAL (C) 30,00,000
RESERVES AND SURPLUS (D) 32,28,253
GRAND TOTAL
(A+B+C+D) 5,00,00,000
BREAK UP OF INITIAL INVESTMENT
LASER TAG EQUIPMENTS
1. Start-up set with control box:
One control unit handles 10 users = 3900 euros
5 units = 3900X5 = 19500 euros
Exchange rate = 85.39
Therefore the cost of 5 units = Rs. 13,38,031
2. Tagging guns and accessories:
An excellent mid to long-range unit, this player unit has received tremendous reviews and continues to get great field referrals. If you are looking at having at least two types of player units on your field, this unit is a must have. It includes two batteries, charger and mini LCD screen to view scores and ranks.
The cost of one gun = 770 euros
Therefore the cost of 50 guns = Rs. 26,41,754
3. Vests:
Deluxe Tactical Vest with Quick Draw Holster, Pouch and Belt.(Including Sensors)
The Cost of one vest = 60 euro
Therefore the cost of 50 vests = 60 x 68.617 x 50
= Rs. 2,05,851
4. Back-up unit:
The cost of back-up unit = 1500 euros
The cost of back-up unit = 1500 x 68.617
= Rs. 1,02,925
5. Back-up wireless sensor unit:
The cost of back-up wireless sensor unit = 300 euros
The cost of back-up wireless sensor unit = 300 x 68.617
= Rs. 20,585
6. Sniper optical scopes:
The cost of sniper optical scopes = 3000 euros
The cost of sniper optical scopes = 3000 x 68.617
= Rs. 2,05,851
7. Extra charging unit:
The cost of extra charging unit = 1000 euros
The cost of extra charging unit = 1000 x 68.617
= Rs. 68,617
So the total of break-up of equipment stands as:
ITEMS AMOUNT
Control box 13,38,031
Tagging guns and accessories 26,41,754
Vests 2,05,851
Back-up unit 1,02,925
Back-up wireless sensor unit 20,585
Sniper optical scopes 2,05,851
Extra charging unit 68,617
TOTAL 45,83,614
SHIPPING CHARGES
1 cubic metre space costs 45 euros = Rs. 3,090.00
Total Area consumed for the equipments = 20 cubic metre space = Rs. 61,800.00
Shipping Company: Maersk Line
Customs Duty at Kolkata port = 20% of the cost of the equipments
= Rs. 9,16,723.00
Clearance Fee: (invoice value + freight + insurance) x 1.5 / 1,000
(45,83,614 + 61,800 + 1,37,508) x 1.5 / 1,000
= Rs. 7,175
Transportation from Tuticorin to Kolkata by Sunrise Transport Ltd.:
Weight to be transported: 20 cubic metres
1 cubic metre = 7870 kgs (taking the density of iron to be 7.87)
Cost of transportation = Re.1 per kg
Truck size: 15 X 20 Sq. Ft.
Truck capacity = 16000 tones
Cost of transporting 1,57,400 kgs (157.4 tones) = Rs. 1,57,400
TOTAL COST OF TRANSPORT: Rs. (1,57,400 + 9,85,698)
= Rs. 11,43,098
SOFTWARE
The cost of software = 450 euros
The cost of software = Rs. 30,878
Ron Francis
Director
Battlefield Technologies Ltd and Funtrak Ltd
Tel: +44 (0) 870 7740153
Mobile: +44 (0) 7889 444393
Email: or sales@battlefieldtechnologies.com or sales@funtrak.co.uk
Web: www.actiontag.co.uk or www.funtrak.co.uk
DESIGNING AND AREA LAYOUT
The theme of the arena is urban quest
Designing and making cost per sq. ft. 27$
Exchange rate: 1 dollar = Rs. 62.13
Total Cost = 6,000 x 62.13 x 27 = Rs. 79,73,640
Shipping Charges:
1 cubic metre space costs 65 dollars
= Rs. 3,135.00
Total Area consumed for the equipments = 55 cubic metre space
= Rs. 1,72,425.00
Shipping Company: Maersk Line
Customs Duty at Tuticorin port = 20% of the cost of the equipments
= Rs. 15,94,728
Clearance Fee: (invoice value + freight + insurance) x 1.5 / 1,000
(79,73,640 + 1,72,425 + 1,47,555) x 1.5 / 1,000
= Rs. 12,440.00
Transportation from Tuticorin to Kolkata by Sunrise Transport Ltd.:
Weight to be transported: 55 cubic metres
1 cubic metre = 7870 kgs (taking the density of iron to be 7.87)
Cost of transportation = Re.1 per kg
Truck size: 15 X 20 Sq. Ft.
Truck capacity = 16000 tones
Cost of transporting of 4,32,850 kgs (432.85 tones) = Rs. 4,32,850
Executives Travelling Expenses : Rs. 3,00,000.00
TOTAL COST OF TRANSPORT: Rs. (4,32,850 + 17,79,593 + 3,00,000)
= Rs. 25,12,443
Creative Works Theme Factory
4084 Pendleton Way, Suite 284,
Indianapolis, IN 46226 Tel: 317-834-4770
www.thewoweffect.com Fax: 317-834-4771
FURNITURE AND FIXTURES:
Sofas: 10 three seater Caresoft Futon Sofa Bed, #3510, Black by UTM FURNITURE costing Rs.20,000.00 each amounting to Rs. 2,00,000.00
Office Chairs: 30 Staples 3D116 costing Rs. 6,000/- each. 2 Executive leather chair Staples 3A102 costing Rs. 22,000. Total cost amounting to Rs. 2,24,000
Office Desks: 8 office desks of costing Rs.7000/- each. 2 executive teakwood table costing Rs. 22000 each. Total cost amounting to Rs. 1,00,000.
Shelf: 5 Shelf’s costing Rs. 3000 each would be required for the baggage and shoe counters in the building. The total cost of the shelf amounts up to Rs. 15000.
Total cost of Furniture and Fixtures = Rs. 5,39,000
BOWLING LANE
Lane : Rs.21,00,000/- per lane (including a import duty of 55%) pinsetter, pinsetter parts, lane system, ball return system, scoring sytem, gutter and capping, bumper system, furniture’s and other accessories.
We are going to have 4 lanes so = Rs. 21,00,000 x 4
Therefore the cost of bowling lane = Rs. 84,00,000
SNOOKER TABLE
PARTS COST (Rs.)
SBA Table 1,00,000.00
Snooker ball premiere 6,000.00
Rosewood cute sticks 1,600.00
Western rubber cushion, l shaped 1,500.00
Wooden triangle 200.00
6811, 3202 5 metre cloth 16,500.00
Billiard brass snooker railing 600.00
Brass outer pocket (set of 6) 440.00
Brass inner pocket (set of 6) 500.00
Cross head, spider head and long rest 900.00
Brass hooks 420.00
Web style pocket (set of 6) 1200.00
Billiard brush (horse hair) 375.00
Spots (35 mm 10 pcs) 50.00
Dust cover 400.00
Plastic cue setter 200.00
Chalk holder 250.00
Wooden cue stand 350.009
Wooden score board 1,000.00
Chalks 1,200.00
Long rest 1,650.00
TOTAL Rs.1,35,335
POOL TABLE
PARTS COST (Rs.)
SBA Table 40,000.00
Snooker ball premiere 4,000.00
Rosewood cute sticks 1,600.00
Western rubber cushion, l shaped 1,500.00
Wooden triangle 200.00
5 metre cloth 2,500.00
Billiard brass snooker railing 600.00
Brass outer pocket (set of 6) 440.00
Brass inner pocket (set of 6) 500.00
Cross head, spider head and long rest 900.00
Brass hooks 420.00
Brass adjuster 960.00
Web style pocket (set of 6) 1200.00
Billiard brush (horse hair) 375.00
Spots (35 mm 10 pcs) 50.00
Dust cover 300.00
Plastic cue setter 200.00
Chalk holder 250.00
Wooden cue stand 350.00
Wooden score board 1,000.00
Chalks 1,200.00
Long rest 1,650.00
TOTAL Rs,60,195
‘
AIR HOCKEY TABLE
Two strikers, two handles non break able, half horse par motor, coin operator system with music system. It is 4x 8 ft table.
FOOSBALL TABLE
Foosball ball, foosball bearings, coin operator, foosball handle, foosball men, foosball playfields, foosball rods, foosball scoring units, lights, table legs and miscellaneous part.
The snooker and pool equipments are purchased from Sharma Billiards located at Pitampura, Delhi. Contact No. +91 98912 24267
MARKETING EXPENSES BREAK UP
NEWSPAPER FOR 1ST MONTH
NAME SIZE (Inches) COST OF PER ADVERTISEMENT (Rs.) NUMBER OF TIMES IN A MONTH TOTAL COST (Rs.)
Kolkata Times 25’x12′ 6,375 30 1,91,250
DNA 25’x12′ 5,375 30 1,61,250
NEWSPAPER FROM 2ND TO 12TH MONTH
NAME SIZE (Inches) COST OF PER ADVERTISEMENT (Rs.) NUMBER OF TIMES IN A MONTH TOTAL COST IN A YEAR (Rs.)
Kolkata Times 25’x12′ 6,375 4 2,80,500
DNA 25’x12′ 5,375 4 2,36,500
Total cost of advertisement in newspaper in a year: Rs.8,69,500
RADIO ADVERTISEMENT
SOURCE TIMINGS NUMBER OF SLOTS COST PER DAY (Rs.) COST IN THREE MONTHS (Rs.)
Indigo 6 am to 11 pm 30 of every 10 sec 3,000.00 1,08,000
Radio one 6 am to 11 pm 30 of every 10 sec 2,500.00 90,000
TOTAL 1,98,000
The total cost of radio advertisement: Rs.1,98,000
HOARDINGS
SOURCE SIZE (Inches) COST PER MONTH (Rs.) COST IN THREE MONTHS (Rs.)
Park Street 40’x20′ 2,05,000 6,15,000
Russell Street 40’x20′ 1,95,000 5,85,000
Camac Street 40’x20′ 1,50,000 4,50,000
Salt Lake 40’x20′ 1,50,000 4,50,000
New Alipore 40’x20’ 1,65,000 4,95,000
TOTAL 22,95,000
The total cost of hoardings is Rs.22,95,000
PVR ADVERTISEMENT
There will be a package that we will be entering with PVR. The package will be only on three days in a week our ad will be displayed. The cost of entire package is Rs.36,96,000.00. The cost of per day per screen is Rs.7,000.
WEBSITE
We will be creating our own website, DR.DEV PRASAD will be making our site charging Rs.1,25,000. The cost of software is Rs.1,00,000 and web portal including server is Rs.25,000.
SUMMARY OF ENTIRE MARKETING BREAK UP
HEADS AMOUNT (Rs.)
Newspaper 8,69,500
Radio Advertisement 1,98,000
Hoardings 22,95,000
PVR Advertisement 36,96,000
Website 1,25,000
TOTAL 71,83,500
DEPRECIATION ACCOUNT
1ST YEAR
PARTICULARS OPENING VALUE (Rs.) DEPRECIATION VALUE (Rs.) CLOSING
VALUE (Rs.)
Laser Tag Equipments (20%) 57,26,712 11,45,342 45,81,370
Bowling Lane (20%) 84,00,000 16,80,000 67,20,000
Designing (15%) 1,04,86,083 1572912 89,13,171
A.C. (10%) 14,50,000 145000 13,05,000
Furniture & Fixtures (10%) 5,39,000 53900 4,85,100
Glasses (10%) 2,34,000 23400 2,10,600
Fire Extinguisher (15%) 90,000 13,500 76,500
Sound System (20%) 2,02,500 40,500 1,62,000
Desktop (60%) 1,84,492 1,10,695 73,797
Generator and Transformer (20%) 29,53,000 5,90,600 23,62,400
Pool Table (10%) 1,20,390 12,039 1,08,351
Snooker Table (10%) 2,70,670 27,067 2,43,603
Foosball Table (10%) 1,09,900 10,990 98,910
Air Hockey (10%) 52,000 5,200 46,800
LCD (20%) 8,30,000 83,000 7,47,000
Plasma LCD (20%) 3,00,000 60,000 2,40,000
Lightning (20%) 16,32,500 3,26,500 13,06,000
TOTAL 3,35,81,247 59,00,645 2,76,80,602
2ND YEAR
PARTICULARS OPENING VALUE (Rs.) DEPRECIATION VALUE (Rs.) CLOSING
VALUE (Rs.)
Laser Tag Equipments (20%) 45,81,370 9,16,274 36,65,096
Bowling Lane (20%) 67,20,000 13,44,000 53,76,000
Designing (15%) 89,13,171 13,36,976 75,76,195
A.C. (10%) 13,05,000 1,30,500 11,74,500
Furniture & Fixtures (10%) 4,85,100 48,510 4,36,590
Glasses (10%) 2,10,600 21,060 1,89,540
Fire Extinguisher (15%) 76,500 11,475 65,025
Sound System (20%) 1,62,000 32,400 1,29,600
Desktop (60%) 1,47,594 29,519 1,18,075
Generator and Transformer (20%) 23,62,400 4,72,480 18,89,920
Pool Table (10%) 1,08,351 10,835 97,516
Snooker Table (10%) 2,43,603 27,067 2,16,536
Foosball Table (10%) 98,910 9,891 89,019
Air Hockey (10%) 46,800 4,680 42,120
LCD (20%) 7,47,000 83,000 6,64,000
Plasma LCD (20%) 2,40,000 48,000 1,92,000
Lightning (20%) 13,06,000 2,61,200 10,44,800
TOTAL 2,77,54,399 47,87,867 2,29,66,532
3RD YEAR
PARTICULARS OPENING VALUE (Rs.) DEPRECIATION VALUE (Rs.) CLOSING
VALUE (Rs.)
Laser Tag Equipments (20%) 36,65,096 7,33,019 29,32,077
Bowling Lane (20%) 53,76,000 10,75,200 43,00,800
Designing (15%) 75,76,195 11,36,430 64,39,765
A.C. (10%) 11,74,500 1,17,450 10,57,050
Furniture & Fixtures (10%) 4,36,590 43,659 3,92,931
Glasses (10%) 1,89,540 18,954 1,70,586
Fire Extinguisher (15%) 65,025 9,754 55,271
Sound System (20%) 1,29,600 25,920 1,03,680
Desktop (60%) 1,18,075 23,615 94,460
Generator and Transformer (20%) 18,89,920 3,77,984 15,11,936
Pool Table (10%) 97,516 9,751.60 87,764
Snooker Table (10%) 2,16,536 27,067 1,89,469
Foosball Table (10%) 89,019 8,901.9 80,117
Air Hockey (10%) 42,120 4,212 37,908
LCD (20%) 6,64,000 83,000 5,81,000
Plasma LCD (20%) 1,92,000 38,400 1,53,600
Lightning (20%) 10,44,800 2,08,960 8,35,840
TOTAL 2,29,66,532 39,42,277 1,90,24,254
REVENUE MODEL
1ST YEAR
REVENUE MODEL FOR LASER TAG ON A WEEKDAY (EXCEPT PUBLIC HOLIDAY)
Time Interval Price Per Game (Rs.) No. Of Persons Total (Rs.)
11:30 A.M. ‘ 3:30 P.M. 200 40 8,000
3:30 P.M. ‘ 8:30 P.M. 200 60 12,000
8:30 P.M. ‘ 11:30 P.M. 200 40 8,000
Total Per Day 140 28,000
Assuming 245 weekdays in a year except public holidays
Revenue = 245 x 28,000 = Rs. 68,60,000
REVENUE MODEL FOR LASER TAG ON A WEEKEND AND PUBLIC HOLIDAY
Time Interval Price Per Game (Rs.) No. Of Persons Total (Rs.)
11:30 A.M. ‘ 3:30 P.M. 230 40 9,200
3:30 P.M. ‘ 8:30 P.M. 230 80 18,400
8:30 P.M. ‘ 11:30 P.M. 230 60 13,800
Total Per Day 180 41,400
Assuming 120 days of weekends and public holidays
Revenue = 120 x 41,400 = Rs. 49,68,000
TOTAL REVENUE from Laser Tag Arena = 68,60,000 + 49,68,000
= Rs. 1,18,28,000
REVENUE MODEL FOR BOWLING ALLEY ON A WEEKDAY (EXCEPT PUBLIC HOLIDAY)
Time Interval Price Per Game (Rs.) No. Of Persons Total (Rs.)
11:30 A.M. ‘ 3:30 P.M. 70 10 700
3:30 P.M. ‘ 8:30 P.M. 100 40 4,000
8:30 P.M. ‘ 11:30 P.M. 100 50 5,000
Total Per Day 100 9,700
Assuming 245 weekdays in a year except public holidays
Revenue = 245 x 9,700 = Rs. 23,76,500
REVENUE MODEL FOR BOWLING ALLEY ON A WEEKEND
Time Interval Price Per Game (Rs.) No. Of Persons Total (Rs.)
11:30 A.M. ‘ 3:30 P.M. 130 30 3,900
3:30 P.M. ‘ 8:30 P.M. 130 60 7,800
8:30 P.M. ‘ 11:30 P.M. 130 60 7,800
Total Per Day 150 19,500
Assuming 120 days of weekends and public holidays
Revenue = 120 x 19,500 = Rs. 23,40,000
TOTAL REVENUE from Bowling Alley = 23,76,500 + 23,40,000
= Rs. 47,16,500
REVENUE MODEL FOR SNOOKER
Hours of play Type of play Price (Rs.) Total (Rs.)
3:00 Complete hours 125 per hour 375
3:00 6 half hours 70 per half hour 420
Total per table per day 795
Total for 2 tables per day = 2 x 795= Rs. 1,590
TOTAL REVENUE from Pool = 365 x Rs.1,590
= Rs. 5,80,350
REVENUE MODEL FOR POOL
Hours of play Type of play Price (Rs.) Total (Rs.)
4:00 Complete hours 100 per hour 400
4:00 8 half hours 60 per half hour 480
Total per table per day 880
Total for 2 tables per day = 2 x Rs.880
= Rs. 1,760
TOTAL REVENUE from Pool = 365 x Rs.1,760
= Rs. 6,42,400
REVENUE MODEL FOR AIR HOCKEY
No of Games Price (Rs.) No of days Total (Rs.)
Weekdays(except public holidays) 36 50 per game 245 4,41,000
Weekends and public holidays 50 50 per game 120 3,00,000
Total per year 365 7,41,000
TOTAL REVENUE from Air hockey = Rs. 7,41,000
REVENUE MODEL FOR FOOSBALL
No of games Price (Rs.) No of days Total (Rs.)
Weekdays (except public holidays) 30 100 per game 245 7,35,000
Weekends and public holidays 45 100 per game 120 5,40,000
Total per year 365 12,75,000
TOTAL REVENUE from Foosball = Rs. 12,75,000
REVENUE FROM POLYNATION
The food court would be outsourced from Polynation. They would be provided with 3000 sq feet of area and we would be charging them Rs 100 per square feet. So monthly the total rent that would be collected is Rs. 3,00,000. So the yearly income from polynation is Rs 36,00,000.
OTHER REVENUES
No. Price per unit (Rs.) Total (Rs.)
Membership cards 3,000 100 3,00,000
Corporate Events 1,500 persons 650 9,75,000
Ooh Media 20 3,60,000 72,00,000
Laser guns and Vest stickers 50 10,000 5,00,000
Lane surface ad 4 3,00,000 12,00,000
Bowling ball stickers 64 10,000 6,40,000
Laser Arena Ad 10 3,00,000 30,00,000
TOTAL 1,38,15,000
Membership Plan: We will have a loyalty plan where-in a customer can buy the loyalty card at a onetime cost of Rs-50 or customers playing more than 2 hours at a time get the card for free. The first minimum recharge in the card is a compulsory Rs.500 after which it is at the customer’s discretion. The card will function as a debit card which can be exclusively used everywhere in the arena. Once a customer recharges his card for a certain amount he can swipe the card to play at for the number of hours equivalent to the balance. And for every recharge made the card holder gets 15% of the value as loyalty points each point is equivalent to a Rupee and the card holder can then exchange the points for play hours. The card holder will also be informed of the latest developments at Laser Xtreme, offers, competitions, new attractions etc.
Corporate parties:
The pricing for corporate parties would be Rs. 650 per head and would include food expenses along with the expenses for playing the sport for two rounds.
Pricing Break-up:
Price for the sport: Rs. 400 (for two rounds)
Food Expenses: Rs. 150 per head on an average
Event management commission: Rs. 50 per head.
Additional profit: Rs. 50
Total = Rs 650
THE TOTAL REVENUE STANDS FOR 1ST YEAR
PARTICULARS AMOUNT
Revenue from laser tag(weekdays) Rs. 68,60,000
Revenue from laser tag(weekend) Rs. 49,68,000
Revenue from bowling(weekdays) Rs. 23,78,500
Revenue from bowling(weekends) Rs. 23,40,000
Revenue from snooker Rs. 5,80,350
Revenue for pool Rs. 6,42,400
Revenue from air hockey Rs. 7,41,000
Revenue from foosball Rs. 12,75,000
Revenue from Polynation Rs. 36,00,000
Other Revenues Rs. 1,38,15,000
Total Rs. 3,72,00,250
2ND YEAR
REVENUE MODEL FOR LASER TAG ON A WEEKDAY (EXCEPT PUBLIC HOLIDAY)
Time interval Price per game (Rs.) No. Of persons Total (Rs.)
11:30 A.M. ‘ 3:30 P.M. 220 40 8,800
3:30 P.M. ‘ 8:30 P.M. 220 60 13,200
8:30 P.M. ‘ 11:30 P.M. 220 40 8,800
Total per day 140 30,800
Assuming 245 weekdays in a year except public holidays
Revenue = 245 x Rs.30,800 = Rs. 75,46,000
REVENUE MODEL FOR LASER TAG ON A WEEKEND AND PUBLIC HOLIDAY
Time interval Price per game (Rs.) No. Of persons Total (Rs.)
11:30 A.M. ‘ 3:30 P.M. 253 40 10,120
3:30 P.M. ‘ 8:30 P.M. 253 80 20,240
8:30 P.M. ‘ 11:30 P.M. 253 60 15,180
Total per day 180 Rs 45,540
Assuming 120 days of weekends and public holidays
Revenue = 120 x Rs.45,540 = Rs. 54,64,800
TOTAL REVENUE from Laser Tag Arena = 75,46,000 + 54,64,800
= Rs. 1,30,10,800
REVENUE MODEL FOR BOWLING ALLEY ON A WEEKDAY (EXCEPT PUBLIC HOLIDAY)
Time interval Price per game (Rs.) No. Of persons Total (Rs.)
11:30 A.M. ‘ 3:30 P.M. 77 10 770
3:30 P.M. ‘ 8:30 P.M. 110 40 4,400
8:30 P.M. ‘ 11:30 P.M. 110 50 5,500
Total per day 100 10,670
Assuming 245 weekdays in a year except public holidays
Revenue = 245 x Rs.10,670 = Rs. 26,14,150
REVENUE MODEL FOR BOWLING ALLEY ON A WEEKEND
Time interval Price per game (Rs.) No. Of persons Total (Rs.)
11:30 A.M. ‘ 3:30 P.M. 143 30 4,290
3:30 P.M. ‘ 8:30 P.M. 143 60 8,580
8:30 P.M. ‘ 11:30 P.M. 143 60 8,580
Total per day 150 21,450
Assuming 120 days of weekends and public holidays
Revenue = 120 x Rs.21,450 = Rs. 25,74,000
TOTAL REVENUE from Bowling Alley = Rs. 26, 14,150.00 + Rs. 25, 74,000.00
= Rs. 51, 88,150
REVENUE MODEL FOR SNOOKER
Hours of play Type of play Price (Rs.) Total (Rs.)
4:00 Complete hours 125 per hour 500
4:00 8 half hours 70 per half hour 560
Total per table per day 1060
Total for 2 tables per day = 2 x Rs.1060
= Rs. 2,120
TOTAL REVENUE from Pool = 365 x Rs. 2,120
= Rs. 7,73,800
REVENUE MODEL FOR POOL
Hours of play Type of play Price (Rs.) Total (Rs.)
4:00 Complete hours 110 per hour 440
4:00 8 half hours 66 per half hour 528
Total per table per day 968
Total for 2 tables per day = 2 x Rs. 968
= Rs. 1,936
TOTAL REVENUE from Pool = 365 x Rs. 1,936
= Rs. 7,06,640
REVENUE MODEL FOR AIR HOCKEY
No of games Price (Rs.) No of days Total (Rs.)
Weekdays (except public holidays) 36 55 per game 245 4,85,100
Weekends and public holidays 50 55 per game 120 3,30,000
Total per year 365 8,15,100
TOTAL REVENUE from Air hockey = Rs. 8,15,100
REVENUE MODEL FOR FOOSBALL
No of games Price (Rs.) No of days Total (Rs.)
Weekdays (except public holidays) 30 110 per game 245 8,08,500
Weekends and public holidays 45 110 per game 120 5,94,000
Total per year 365 14,02,500
TOTAL REVENUE from Foosball = Rs. 14,02,500
REVENUE FROM POLYNATION
The food court would be outsourced from Polynation. They would be provided with 3000 sq feet of area and we would be charging them Rs 110 per square feet. So monthly the total rent that would be collected is Rs 330000. So the yearly income from polynation is Rs 39,60,000.
REVENUE MODEL FOR ADVERTISEMENTS AND MEMBERSHIP AND CORPORATE EVENTS
No. Price per unit (Rs.) Total (Rs.)
Membership cards 3,000 100 3,00,000
Corporate Events 1,500 persons 700 10,50,000
Ooh Media 20 3,60,000 72,00,000
Laser guns and Vest stickers 50 10,000 5,00,000
Lane surface ad 4 3,00,000 12,00,000
Bowling ball stickers 64 10,000 6,40,000
Laser Arena Ad 10 3,00,000 30,00,000
TOTAL Rs. 1,38,90,000
THE TOTAL REVENUE STANDS FOR 2ND YEAR
PARTICULARS AMOUNT (Rs.)
Revenue from laser tag(weekdays) Rs. 75,46,000
Revenue from laser tag(weekend) Rs. 54,64,800
Revenue from bowling(weekdays) Rs. 26,14,150
Revenue from bowling(weekends) Rs. 25,74,000
Revenue from snooker Rs. 7,73,800
Revenue from pool Rs. 7,06,640
Revenue from air hockey Rs. 8,15,100
Revenue from foosball Rs. 14,02,500
Revenue from polynation Rs 39,60,000
Revenue from membership,corporate events and advertisement Rs. 1,38,90,000
Total Rs. 3,97,46,990
3RD YEAR
REVENUE MODEL FOR LASER TAG ON A WEEKDAY (EXCEPT PUBLIC HOLIDAY)
Time interval Price per game (Rs.) No. of persons Total (Rs.)
11:30 A.M. ‘ 3:30 P.M. 242 40 9,680
3:30 P.M. ‘ 8:30 P.M. 242 60 14,520
8:30 P.M. ‘ 11:30 P.M. 242 40 9,680
Total per day 140 33,880
Assuming 245 weekdays in a year except public holidays
Revenue = 245 x Rs.33,880 = Rs. 83,00,600
REVENUE MODEL FOR LASER TAG ON A WEEKEND AND PUBLIC HOLIDAY
Time interval Price per game (Rs.) No. Of persons Total (Rs.)
11:30 A.M. ‘ 3:30 P.M. 278 40 11,120
3:30 P.M. ‘ 8:30 P.M. 278 80 22,240
8:30 P.M. ‘ 11:30 P.M. 278 60 16,680
Total per day 180 Rs 50,040
Assuming 120 days of weekends and public holidays
Revenue = 120 x Rs.50,040 = Rs. 60,04,800
TOTAL REVENUE from Laser Tag Arena = Rs.83,00,600 + Rs.60,04,800
= Rs. 1,43,05,400
REVENUE MODEL FOR BOWLING ALLEY ON A WEEKDAY (EXCEPT PUBLIC HOLIDAY)
Time interval Price per game (Rs.) No. Of persons Total (Rs.)
11:30 A.M. ‘ 3:30 P.M. 86 10 860
3:30 P.M. ‘ 8:30 P.M. 121 40 4,840
8:30 P.M. ‘ 11:30 P.M. 121 50 6,050
Total per day 100 11,750
Assuming 245 weekdays in a year except public holidays
Revenue = 245 x Rs.11,750 = Rs. 28,78,750
REVENUE MODEL FOR BOWLING ALLEY ON A WEEKEND
Time interval Price per game (Rs.) No. Of persons Total (Rs.)
11:30 A.M. ‘ 3:30 P.M. 159 30 4,770
3:30 P.M. ‘ 8:30 P.M. 159 60 9,540
8:30 P.M. ‘ 11:30 P.M. 159 60 9,540
Total per day 150 23,850
Assuming 120 days of weekends and public holidays
Revenue = 120 x 23,850 = Rs. 28,62,000
TOTAL REVENUE from Bowling Alley = 28,78,750 + 28,62,000
= Rs. 57,40,750
REVENUE MODEL FOR SNOOKER
Hours of play Type of play Price (Rs.) Total (Rs.)
5:00 Complete hours 125 per hour 625
5:00 8 half hours 70 per half hour 700
Total per table per day 1325
Total for 2 tables per day = 2 x Rs.1325
= Rs. 2,650
TOTAL REVENUE from Pool = 365 x Rs.2,650
= Rs. 9,67,250
REVENUE MODEL FOR POOL
Hours of play Type of play Price (Rs.) Total (Rs.)
4:00 Complete hours 121 per hour 484
4:00 8 half hours 73 per half hour 584
Total per table per day 1068
Total for 2 tables per day = 2 x Rs.1068
= Rs. 2,136
TOTAL REVENUE from Pool = 365 x Rs.2,136
= Rs. 7,79,640
REVENUE MODEL FOR AIR HOCKEY
No of games Price (Rs.) No of days Total (Rs.)
Weekdays (except public holidays) 36 61 per game 245 5,38,020
Weekends and public holidays 50 61 per game 120 3,66,000
Total per year 365 9,04,020
TOTAL REVENUE from Air hockey = Rs. 9,04,020
REVENUE MODEL FOR FOOSBALL
No of games Price (Rs.) No of days Total (Rs.)
Weekdays (except public holidays) 30 121 per game 245 8,89,350
Weekends and public holidays 45 121 per game 120 6,53,400
Total per year 365 15,42,750
TOTAL REVENUE from Foosball = Rs. 15,42,750
REVENUE FROM POLYNATION
The food court would be outsourced from Polynation. They would be provided with 3000 sq feet of area and we would be charging them Rs 121 per square feet. So monthly the total rent that would be collected is Rs 3,63,000. So the yearly income from polynation is Rs 43,56,000.
REVENUE MODEL FOR ADVERTISEMENTS AND MEMBERSHIP AND CORPORATE EVENTS
No. Price per unit (Rs.) Total (Rs.)
Membership cards 3,000 100 3,00,000
Corporate Events 2,000 persons 750 15,00,000
Ooh Media 20 4,20,000 84,00,000
Laser guns and Vest stickers 50 10,000 5,00,000
Lane surface ad 4 3,00,000 12,00,000
Bowling ball stickers 64 15,000 9,60,000
Laser Arena Ad 10 3,50,000 35,00,000
TOTAL Rs.1,63,60,000
THE TOTAL REVENUE STANDS FOR 3RD YEAR
PARTICULARS AMOUNT (Rs.)
Revenue from laser tag(weekdays) Rs. 83,00,600
Revenue from laser tag(weekend) Rs. 60,04,800
Revenue from bowling(weekdays) Rs. 28,78,750
Revenue from bowling(weekends) Rs. 28,62,000
Revenue from snooker Rs. 9,67,250
Revenue for pool Rs. 7,79,640
Revenue from air hockey Rs. 9,04,020
Revenue from foosball Rs. 15,42,750
Revenue from polynation Rs. 43,56,000
Revenue from membership,corporate events and advertisement Rs. 1,63,60,000
Total Rs. 4,49,55,810
INCOME AND EXPENDITURE ACCOUNT
PARTICULARS YEAR 1 YEAR 2 YEAR 3
REVENUE (A) 3,72,00,250 3,97,46,990 4,49,55,810
LESS: EXPENSES
Administrative Expenses
Salaries 47,52,000 52,27,200 57,49,920
Office Stationary & Printing 50,000 52,500 57,750
Depreciation 59,00,645 47,87,867 39,42,277
Electricity Bill 16,50,000 18,15,000 19,96,500
Interest on Loan 43,50,000 43,50,000 43,50,000
Water 76,000 76,000 76,000
Miscellaneous Expenses 5,00,000 5,00,000 5,00,000
Insurance 6,25,020 6,25,020 6,25,020
Start-up Expenses 27,78,500 27,78,500 27,78,500
TOTAL EXPENSES (B) 2,06,82,165 2,02,12,087
2,00,75,967
Total Operating Profit/Loss(A-B) 1,65,18,085 1,95,34,903 2,48,79,843
Net Profit/Loss 1,65,18,085 1,95,34,903 2,48,79,843
LESS: Tax (30.00%) 49,55,425 58,60,470 74,63,952
Net Profit/ Loss of this year 1,15,62,660 1,36,74,433 1,74,15,891
BREAK UP OF INCOME AND EXPENDITURE
Salary
The increment in salary for all the three years is at 10 percent. The break up of the salary is given in the human resource part.
Stationary and printing
The stationary and the printing charges would be at 5 percent increment for the three years.
Electricity bill
Approximately the consumption would be around 2, 53,846 units. The per unit charge for commercial use in Kolkata is Rs 6.5. So the total electricity expense comes to Rs.16, 50,000.
Depreciation
The depreciation has been calculated on the written down value method. All the rates of depreciation has been in accordance with the income tax act .
Insurance
The insurance is 3 percent of the arena cost and the equipment. So basically 3 percent has been calculated on the arena and the equipment. Yearly three percent will have to be paid on them.
CASH FLOW STATEMENT
PARTICULARS YEAR 1 YEAR 2 YEAR 3
Cash Received
Cash from Operations:
Cash Sales/ cash received against other services 3,72,00,250 3,97,46,990 4,49,55,810
Cash from Receivables 0 0 0
Subtotal Cash from Operations 3,72,00,250 3,97,46,990 4,49,55,810
Additional Cash Received:
Capital contribution by venture capitalist
Amount given by bank
Capital Contribution from the partners 5,00,00,000
Capital contribution from the entrepreneur
Subtotal Cash Received 8,72,00,250 3,97,46,990 4,49,55,810
Expenditures
Expenditures from Operations:
Cash Spending 2,28,59,090
2,32,94,057
2,47,61,419
Start-up expenses 27,78,500 27,78,500 27,78,500
Purchase Long-term Assets 3,54,36,247
Portion to venture capitalist
Subtotal Cash Spent
Payment of taxes
Net Cash Flow 2,61,26,413 1,36,74,433 1,74,15,891
Previous year’s Cash b/d 2,61,26,413 3,98,00,846
Cash Balance 2,61,26,413 3,98,00,846 5,72,16,737
BALANCE SHEET
PARTICULARS YEAR 1 YEAR 2 YEAR 3
ASSETS
Current Assets
Cash 2,61,26,413 3,98,00,846 5,72,16,737
Other Current Asset
Total Current Assets 2,61,26,413 3,98,00,846 5,72,16,737
Long-term Assets
Long-term Assets 4,62,92,317 3,45,21,924 2,16,05,383
Less: Depreciation 59,00,645 47,87,867 39,42,277
Total Long-term Assets 4,03,91,672 2,97,34,057 1,76,63,106
Total Assets 6,65,18,085 6,95,34,903 7,48,79,843
LIABILITIES
Current Liabilities
Interest Charges
Accumulated Liability
Total Current Liabilities
Long-term Liabilities
Capital
Paid-in Capital 5,00,00,000 5,00,00,000 5,00,00,000
Reserves and surplus
Add: Net profit
1,25,77,660 1,36,74,433 1,74,15,891
PROVISION TAXATION 53,90,425 58,60,470 74,63,952
Total Liabilities 6,65,18,085 6,95,34,903 7,48,79,843
BREAKEVEN ANALYSIS
Sales = Rs. 3, 72, 00,250
Variable Cost = Rs. 1, 54, 63,846
Fixed Cost = Rs. 86, 79,145
Contribution = Sales ‘ Variable cost
= Rs. 3, 72, 00,250 ‘ Rs. 1, 54, 63,846
= Rs. 2, 17, 36,404
P.V Ratio = Contribution / Sales * 100
= Rs. 2, 17, 36,404/ Rs. 3, 72, 00,250 * 100
= 58.430%
Break ‘ Even Point (in sales)= Fixed Cost / P.V Ratio
= Rs. 86, 79,145 / .58430
= Rs. 1, 48, 53,919
Therefore when total sales are Rs. 1, 48, 53,919 we are going to attain the Break-Even point.
So the break-even point is in8th month approx.
‘
RETURN ON INVESTMENT
ROI = (PROFIT / CAPITAL) * (PROFIT / SALES)
PROFIT = Rs. 1, 15, 62,660
CAPITAL = Rs. 5, 00, 00,000
SALES = Rs. 3, 72, 00,250
ROI = (1,15,62,660/5,00,00,000) * (1,15,62,660/3,72,00,250)
= 0.2312532*0.3108221
= 0.071
= 7 % approx.
PAYBACK PERIOD/IRR
Payback period in capital budgeting refers to the period of time required to recoup the funds expended in an investment, or to reach the break-even point. Payback period intuitively measures how long something takes to “pay for itself.” All else being equal, shorter payback periods are preferable to longer payback periods. Since there are no cumulative in the first year, we start to take the profits from the second year of the functioning business.
Year Cash Inflow Cumulative Cash Inflow
2 1,36,74,433 1,36,74,433
3 1,74,15,891 3,10,90,324
4 2,11,57,349 (Estimated) 5,22,47,673
Payback Period = Recovered Amount/ Annual Cash Inflow.
= Rs. 1, 89, 09,676/2, 11, 57,349
=0.89
=3.89 years.
RISK ANALYSIS
Business Risk
The business risk i.e. the risk that an entity would not have adequate cash flows to meet its operating expenses is a risk to which our business is very much susceptible. This is because the financing has been done by the entrepreneur keeping various factors in mind and the chances of such a risk arising is immense as one will notice if one goes through the financial statements, which have been made keeping in mind a very limited resources. This is totally a new concept not only for the city of Kolkata but also for India and this may not be acceptable people due to various reasons which would be very much subjective in nature. So there are several business risks, which we are associated with. To name a few are as follows-
a) Firstly we may not be able to generate enough revenue due to people not accepting our service. This may be due to the degradation of the quality of service provided by us. This would effect on our potential to pay back the loans of the bank and returns to venture capitalist.
b) Another risk we are subjected is to the technological risk. As we know that technology changes every day. People can come out with even more better technologies at any point of time and this could affect our business adversely.
So there are a few business risk that a business is prone to and we no different. The point is how different an entrepreneur is and how he handle such risk. Execution is the most essential part.
IMPLEMENTATION STRATEGIES
All procedures and formalities to bring GAME ZONE into existence on paper are done with, but there is a huge difference between theoretical planning of a business and actual implementation. Quick implementation is necessary because what is in demand today might not be tomorrow. Hence for smart and successful implementation of the business we have formulated the following strategies.
‘ To abide by all safety and quality standards.
‘ Fulfil all legal and lawful formalities to avoid any future hassles.
‘ Strict supervision in the site during the build-up and renovation process.
‘ To use marketing strategies creates awareness amongst people from build-up stage.
‘ To recruit the work force well in advance so as to get the best in the business.
‘ To handle the finance in an effective and wise way.
The plan is implemented in full force from April 1st 2018.
The accounting year is from April to March.
CONCLUSION
All the financial and technical studies conducted shows that this plan is feasible. The plan holds well in every aspect. The plan has very good return provided risk factors. It has a Pay-Back Period of just 3 years and 8 months. This is an extremely good return in this dynamically competitive scenario. Not only this, but the plan also gives a quality service to the people who are entertainment freaks.
This plan is formulated as such that it has very good growth aspects in future. This is essential for further expansion on the business. After getting a good response from the public expansions plans will be laid and more arenas will be established all over the country. The plan has some main points which will help for its success. They are:
– Locational Advantage
– First Movers Advantage
– New Technology
– Growth of the Industry
– Returns from the Business
Thus the plan is a new revolution in the gaming industry and gives a great experience to both the customers and the investors. If the plan works on the exact terms as mentioned in the report it will surely give a positive result and the goals can be achieved in no time at all.
TEASER
PRINT AD’S