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Executive Summary: Business Plan
Executive Summary: Business Plan
EXECUTIVE SUMMARY
We have made a business plan of new business idea of Gaming Zone
business. We identified the opportunity in University of Gujrat as there is
no Gaming Zone and after conducting a survey, we got positive response
towards gaming zone business in University of Gujrat. The two things
which we can provide to students through our gaming zone are the
entertainment and refreshment opportunity. We did opportunity analysis
and after gathering detailed information we came to result of opening
Gaming Zone in University. We decided the name of our gaming zone
which is University Fun Land. We then conducted the industry
analysis, environmental analysis and competitor analysis of our business.
So the industry of gaming zone business is not very much famous in
Pakistan but know people are getting awareness about it. Through
competitor analysis we get to know the strengths, weaknesses, threats
and opportunity of our business and our competitors as well. We made the
marketing plan for the successful promotion and made marketing budget
as well. In operational and production plan we showed the assets, games
and technology we need for our business to generate services and the
number of employees needed as well. We have also showed our expected
suppliers and in financial plan we have showed all the related information
of sources and usage of capital and the capital raised through partners
contribution and loans as well.
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INTRODUCTION
We are studying in university and sometimes after long lectures we want
to fresh up ourselves and there are different ways to refresh ourselves.
According to research conducted by us in University of Gujrat 10%
students are spending their idle time in gossips, 15% are wasting sitting
idle, 5% are spending their idle time in doing study and remaining in other
activities.
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SELECTED ORGANIZATION
UOG INTRODUCTION:
We selected University of Gujrat (UOG) in which we will open a Gaming
Zone. The University of Gujrat is one of the new major public sector
universities in Punjab.
The university was established under Act IX of 2004 by Government of
Punjab, Pakistan on February 23, 2004 to cater for the higher education
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needs of the population of Central Punjab which includes districts of
Gujrat, Sialkot and Gujranwala in addition to city of Wazirabad.
These districts are popularly known as the Export Triangle of Pakistan due
to various manufacturing industries operating in the area. Sir Syed Ahmad
Khan (18171898) founder of Aligarh Muslim University had named the
region around Gujrat as "Khita-e-Younan", or "territory resembling ancient
Greece", in reference to the high number of educational institutes present
in the area in the 19th century.
The University is promoting research and development culture in the area.
A large number of students from Bhimber Azad Kashmir also study in the
university. The creation of the University of Gujrat was the brainchild of
Chaudhry Pervaiz Elahi, who was chief minister of Punjab from 2002 to
2007.[5] Prof. Dr. Muhammad Nizamuddin is the Vice Chancellor of
University of Gujrat.
VISION:
To establish a market that would promote technical activities in the public
and lead that market with our long term strategies
MISSION:
Our mission is to make accessible various games to the customers of
various ages groups, in a sociable environment, even in the smaller cities,
by using latest technology, so as to ensure a stable growth of our
business, that would ensure that the companys philosophy and core
competencies are aligned with our vision and eventually, our firm
projecting a positive image, not only for its own employees, but for the
University as a Whole
LOGO:
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SOLOGAN:
THE LAND OF ENTERTAINMENT
OBJECTIVES
Following are the objectives of our Business.
COMPETITIVE ADVANTAGE
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The competitive advantage for our business is that we are establishing our
firm in that area where no other company providing such type of facilities.
So we are first advantage taker, create monopoly and earn high profit by
providing services to our customers. The whole setup of our business has
the characteristics of uniqueness in that particular area. So in this way we
are facing the no direct competition in our targeted market, but according
to our vision and long term objective, when we would expand our
business, then we might have to face extensive competition throughout
the Region. So our competitive advantages will be as follow:
We are going to provide a completely friendly environment to our
customers
We are going to provide different suitable packages for everyone
The location is very attractive, so as to facilitate each segment of
our target
market
Another advantage is that we are going to target, relatively, smaller
size of market and obtain the consumers suggestions easily and we
can improve the products as they want.
The projected cash flows support our idea of expansion.
OPPORTUNITY ASSESSMENT
We found our university is lacking some place where students can refresh
and entertain themselves. As we know games are a healthy activity for
mind and students also like to play games in their idle time. So we can
take the benefit of that opportunity by opening a Gaming Zone in our
University. This opportunity can give us healthy profits and can prove
beneficial for us as a long run business.
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The real value of opportunity can be measured after the establishment
and running of business.
RISK:
University will not allow us to open Gaming Zone in University.
But after sharing our idea with the HOD of Our Department this
risk has been reduced.
We will have to build a building to open Gaming Zone in
University. But luckily university is building shops for cafeteria
and for other activities. We can take these shops on rental basis
for our gaming zone.
Students will not visit our gaming zone. But after conducting
survey in university we found that more than 70% students are
willing to have a Gaming Zone here.
Someone else takes initiative for opening gaming zone before us
and take advantage of opportunity is also a risk for us.
Another risk we are considering is availability of finance.
In this modern world, the technology is rapidly changing because
of that the risk of existing technology becoming outdated is
constantly there.
Risk of new competitors is always there.
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RETURNS:
We expect to receive return in following ways:
COMPETITVE ENVIRONMENT
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BENEFITS
Followings are the benefits of our business:
We can earn huge profits because of our monopoly.
We can be our own boss.
We can provide employment opportunities through our business
not only to general people but also to our university students.
Earnings of university will increase.
Good addition in the university leading towards increase in the
reputation of university.
Good source of spending idle time for students and refreshing
themselves.
Psychologically its a good way to create good memories in
friends. Where they will be able to spend time and enjoy with
each other.
ENVIRONMENTAL ANALYSIS
The followings environmental factors will affect our business.
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1. ECONOMIC CONDITION:
It means the current economic condition of our country and how our
business will affect the economic conditions of the country. And how our
business will affected by economic condition.
The UFL will play its minor role in the improvement of economic
conditions. This new business will provide the employment opportunities
to the people of Gujrat. In this way the unemployment rate will reduce in
this area. Government will get the taxes as a result of business not only
from our business but also from the other sectors connected with us. Per
captia income of employees will increase and as a result of these the
lifestyle of citys people also increases.
The purchasing power of people is increase and demand also. Through
this UFL will generate income from its own resources that use in many
projects. We need loan for starting business, but the interest rate is very
high due to this our cost will be increase. Inflation rate also increase day
by day due to this our profit margin will be reduces and cost of project
increase.
2. SOCIAL CONDITION:
For last few years Pakistan has rapidly shown a growth in IT sector. Many
new IT domains and startups have evolved and are providing the best
services possible. Many technological trends are being adopted by the
youth like freelance web development, designing, blogging and so on; but
the activity that is most loved by teenagers is gaming.
These days guys and girls both love to play games especially online
multiplayer games. Gone are the days of playing arcade games on
computer now its the online networking games culture. Groups of
friends buckshot each other on MOHAA (Medal of Honor Allied Assault) or
dominate each other on WOW (World of War craft). But to enjoy all these
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games not everyone has broadband connection at home. So, teens turn to
gaming zones, the breeding place of future pro-gamers.
Gaming zone is like a paradise for teens. Dimly lit room filled with neon
lights is what teens love. Trance background music and soothing
environment, a dream place to enjoy free time. People want places where
they can enjoy and release their mind from tensions of daily work load.
Social condition is favorable for our business. Our business will also take
the Ethical Rules into the considerations.
3. LEGAL CONDITIONS:
There are no specific rules and regulations for the gaming zone business
in Pakistan. These are same as for the sole proprietorship and partnership
business.
Although the legal status of the business tends to play an important role
in any setup, the Gaming Zone business is proposed to be operated on a
sole proprietorship basis which may extend to partnership in case of
future expansion.
The Legal Requirements by the University should be full filled and rule and
regulations should be taken into consideration for our business by us.
4. TECHNOLOGICAL CONDITIONS:
Technology is available easily and on high rates now a day. Every day IT
Sector introducing the new technology which is faster and easy to use at
high prices.
Due to the introducing of new technology in games, our business has
consistent threat from changes in technology. It also increases the cost of
our business. For new technology understanding we need skilled and
trained persons who are the expert in IT field. Games companies are
introducing new games with good stories, action, graphics, 3D effects and
lot more every day. IN Pakistan technology is introduced step by step.The
technological conditions are becoming favorable for the business of
gaming zone. So we should hold up to date technology for providing good
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and quality services. Because the university students are well aware from
new technology. The technology which we have for our UFL is computers,
LCSs, video games etc.
5. POLITICAL CONDITION:
For the starting of any business, the investor should analysis the political
condition of specific country. If the policies of Govt. are stable then it is
favorable for business. The tax rate is reasonable, provide rebate in excise
duty, security to wealth, no chances of war, no tight rules and regulation
then a business will efficiently operate in the country. But unfortunately in
Pakistan the political condition is not good so we have threat from the
increase rate of tax and insecurity. And also there is no peace in Pakistan.
INDUSTRY ANALYSIS
CURRENT DOMESSTIC GAMIING ZONE INDUSTRY
STRUCTURE:
In Pakistan, the leading name in gaming zone market is Wired up Gaming
Zone with two major sponsors Wateen and Djuice for establishing of
LAN gaming tournaments at national and international level. A recent
announcement of 'Electronic Sports World Cup (ESWC) Paris' for the year
2007 that the winners of ESWC Pakistan qualifiers 2007 will be sent to
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Paris to participate in the Grand Finals of the ESWC 2007 is a great step
for the up comings of Pakistan electronic sports. Different tournaments of
LAN gaming are held all over the world which includes both national and
international status. Internationally world cyber games (WCG) &
Electronic Sports World Cup (ESWC) acquire the highest names when it
comes to international gaming tournaments.
Counter Strike
Dota
Warcraft
Call of duty 4
FIFA
Need for Speed
SUPPORTERS
The
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Computer Companies (Dell, Intel, LG)
Furniture and Fixture Factories
Spots Material Providers
COMPETITOR ANALYSIS
DIRECT COMPETITORS:
As we are starting UFL in University of Gujrat and there is no such type of
Gaming Zone for the Students in this area. So we dont think we have any
direct competitor in that location where our business exists.
But Outside the university there are few shops of games containing:
Snooker
Hand ball
As our target market is university students. So we can treat then as our
direct competitors because these are attracting the attention of university
students and specially hostel students.
University Gym:
It is in our vision to add up the gym in UFL. So it will become our direct
competitor in near future.
INDIRECT COMPETITORS:
The competitors who influence our business indirectly are considered
indirect competitors. In university and outside the university we have
many indirect competitors.
1. CANTEENS:
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Canteens provide the refreshment opportunity to students. Where they
can spend their idle time and can enjoy. They are not providing the games
for students for entertainment. So we cannot consider canteens as our
direct competitors. These are our indirect competitors.
2. UNIVERSITY GYM:
Students also like to spend their time in gym with friends especially hostel
students. So these are also our indirect competitors.
3. INDIRECT COMPETITORS OUTSIDE UNIVERSITY:
i.
PACE:
The Pace in Gujrat City is our indirect competitor. There is Joy Land where
there are different games for the enjoyment of people. It does not directly
target the UOG students but targeting the general people, UOG students
also comes to its target market. But the timing of university still exists.
Students in the university cant go to pace.
But in university they can go to UFL in
classes.
All other places providing followings games in City Gujrat are our Indirect
Competitors.
ii.
Computer Games
Snooker
Hand Ball
Table Tennis etc
UFC:
University food Corner can also our indirect competitor because it target
market is university students.
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THREAT OF NEW COMPETITORS AND SUBSTITUTE
PRODUCT
There will always be a threat of Direct and Indirect Competitors for us.
But the chances of direct competitors are less as compared to indirect
competitors. Because any individual can open a gaming zone outside the
university and in near areas.
The threat of substitute product and technology is exist because if rapidly
changing world and continuous advancement in the field of technology.
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Zone. Through this survey we can understand that the demand for gaming
zone exist in the university.
PRODUCTION TECHINIQUE
In our UFL we use different machinery for providing services to our
customers for computer games. The manual games like snooker, hand ball
etc. we use different material.
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DEFINING THE PURPOSE OR OBJECTIVES:
The objectives of our marketing plan with respect to the customers view
point.
1. What type of benefit they want from our services?
2. How many people are willing to buy our products or services?
3. How much amount they are willing to pay for using our product
or services?
4. Where would customers prefer to purchase the products or
services?
5. Where would our customer expect to hear about or learn about
our product or services?
For achieving the objectives of our marketing plans we conduct research
and collect information by using different sources.
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Primary source is most reliable source for gathering information related
any matter for taking decision. But it is more expensive and time
consuming process. There are many ways for data gathering like survey,
questioners, face to face interview, and focus group but we use
questioners for conduct research from UOGs students.
According to students answer, they feel need of gaming zone in UOG for
enjoyment in free hours. There is no facility for students to enjoy their
free hours in games.
It is a healthy and
MARKET SEGMENTATION
Dividing a market into smaller groups of buyers distinct needs,
characteristics, or behavior that might require separate products or
marketing mixes.
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We can decide to select the IT industry for the staring of our new
venture .We start the new UFL in the UOG. We will divide our market into
small groups on the base of our targeted customers characteristics.
GEOGRAPHIC:
Our targeted customers are of different cities of Pakistan, who are
students of UOG. These cities are Gujrat, Gujranwala, Sialkot, Wazirabad,
Kotla and small towns near to University of Gujrat.
DEMOGRAPHIC:
Our target customers are youngsters with the age of 16 to 25. There is no
gender differentiation.
We will also divide our targeted market into small segment on the base of
buying situation. Our customers prefer which product or services
features most and like to buy that product or services. The usage rate of
(how many time product or services customers buy). Which time
people prefer to use product e.g. university students use our service or
product in free hours. There is no more awareness of games in Pakistan so
we should use those promotional tools which create awareness about
games in students. Our target location where we start our business is
University of Gujrat. It is niche sector because no one provides these
facilities to university students. So we apply niche marketing strategy and
create monopoly in these areas.
TARGET MARKET:
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A group of people for whom the marketer designs the marketing
mix is called the target market. Our Gaming Zone is a newly
established company with limited resources so we will use concentrated
marketing& coverage strategy.
Through this strategy we would be able to achieve a strong market
position because of its greater knowledge of consumer needs in the
niches it serves and the special reputation it acquires.
We can market more effectively by fine tuning our products, prices and
programs to the needs of carefully defined segments. In using this
strategy we will adopt the pattern of single segmentation i.e., one product
for one market to check its responses.
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SITUATION ANALYSIS
BACK GROUND OF VENTURE:
We are the student of UOG as such we have no back ground in business
field and no experience in this field but as a student of business
administration we identify the business opportunity in our university for
gaming zone.
All partners of this business are educated and have degree of MBA in
finance.
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and beneficial project for UOG students according to our vice chancellor.
This announcement of vice chancellor motivated us for doing something
new.
In Pakistan, the industry of games is not very popular. There is no direct
competitor in UOG. So we can say that it is a niche market for us. We
have indirect competitor like canteens and guest house inside the
university. The gymnasium of UOG is also our competitor in future.
After the analysis of our competitor we identify that we have abilities and
skills to provide better services to our customers by full filling their needs,
because the demand of our customers is not full filled by our competitors.
Our strength and weaknesses are following.
SWOT ANALYSIS
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We will have following strengths of our business.
Monopoly in university of Gujrat
Big Target market (all university students which are approx 12000 in
numbers)
New Computer Games
Good Location
Interest of students in Games
Easy Promotion
Lower Cost than comparable Competitors
WEAKNESS:
We will have following weakness of our business.
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Expansion of Business
Adding Conference Room
Events Management in University (Parties)
Adding fast food or mini mart in Gaming zone
UNIVERSITY OF GUJRAT (UOG)
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A new emerging or developing market(niche product, place, less
competition)
New Technology
Increasing the purchasing power of customer.
THREATS:
We will have following threats of our business.
services
Availability of resources
Change in Political and Economic condition
Taxation
Price War
Loss of Business
COMPETITOR ANALYSIS
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STRENGHTS:
Followings are the strengths of our direct and indirect competitors.
Loyalty of customers
Good will
More Resources for expansion
More experience and knowledge
Business location
Quality of products and services
Motivation to cooperate
WEAKNESS:
Followings are the weakness of our direct and indirect competitors.
Direct Competitors are outside university and students dont go to
them while university hours.
Lack of Technology
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Expensive Games and hardware
OPPORTUNITY:
Followings are the opportunities for our direct and indirect competitors.
THREATS:
Followings are the threats for our direct and indirect competitors.
Energy breakdown
Threat of new competitors
Taxation
Economic Condition
Rapidly change in Technology
To
To
To
To
students
To use no distribution channels, directly deal to our customers
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To establish customers service center for improving our services
quality
To use such type of cheap promotional tools which is promote our
products on wide areas
To maintain and increase the brand image
After defining the marketing objectives and goals now we make market
strategies and action programs to achieve these goals. These decision
effects marketing mix of our business.
MARKETING MIX
It is a combination of 4ps. Product, price, place, promotion and other
marketing activities needed to meet marketing objectives. We design
marketing mix plan for the marketing of our business gaming zone.
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Table tennis
Hand ball
Snooker
Computer games
Shooting
Bowling
Gymnasium
Above are the products or services which we offer to our customers. The
strategy which we use for the production of our services is marketing
concept (pull strategy) firstly we identify the need of our targeted
customer, e.g. UOG students feel the need of a place which provide them
mind relaxation after the study in free hour. By identifying their needs and
wants we provide them their desired satisfaction through gaming services
better than competitors do.
PRICE:
Price is a component of an exchange or transaction that takes place
between two parties and refers to what must be given up by one party
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(i.e., buyer) in order to obtain something offered by another party (i.e.,
seller).
We will charge fee according to game.
PRICING STRATEGY
The pricing strategy which we will use according to the research and data
gathered and the situation prevailing in our target market is value based
pricing strategy.
VALUE-BASED PRICING:
Pricing a product based on the perceived value and not on any other
factor. Pricing based on the demand for a specific product would have a
likely change in the market place.
We know that we are the sole authority providing gaming zone facility to
students. So we have our monopoly here. The perceived value of our
services is high. So we can charge according to our will and according to
the demand of our services.
PLACE:
We started our business in University of Gujarat (UOG). It is access able
for all university students easily in free hours. Our all products or services
are available in UOG.
The distribution channel which we select for our gaming zone services is
one level channel distributions involve company and consumers.
COMPANY
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CONSUMER
PROMOTION:
After starting business and providing our product or services in the market
and getting place in the market our next step is to promote our product
through thick or thin. In order to get high market share and loyalty of
customers. We use two types of advertisements in order to promote our
services.
Print Media
Press Media
Electronic media
Other Sources
PROMOTIONAL TOOLS
We will use promotional tools for the marketing of our services. These are
followings:
Pamphlet
Radio of UOG
Email to UOGs students roll number
UOG official page on Facebook
UOG web site
Banners
Press of UOG
Prospectus
Notice Boards
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BUDGETS:
This is our advertising budget. We use two types of media. The allocation
of cost is as follow:
MEDIA
ELECTRONIC
MEDIA
PRINT MEDIA
OTHER
SOURCES
2ND YEAR
AMOUNT
50%
35%
15%
50000
10%
10%
0%
10000
60%
50%
10%
40000
CONTROLS:
We will monitor our action program on quarterly bases. For this we get
information from our customers by conducting their interview, survey, and
ask question from them about
Services Qualities
Advertising Methods
Prices of Services
Placement of services
Company earn reasonable profit
Sales level of services
If we will find any weak point and feel we are not achieving desired
objects. Then it is opportunity for us to redirect or modify the existing plan
to achieve the firms desired objects and goals.
ORGANIZATIONAL PLAN
LEGAL FORM OF BUSINESS
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Our business is partnership of four partners. The partnership is Limited
Liability Partnership (LLP), It is controlled by Partnership Act 1932 0f
Pakistan. According to this act LLC has following features
One or more partners are with limited liability
The firm must be registered
The capital of limited partner is not returned to him till he
remains a partner in the firm
There is at least one partner with unlimited liability
The limited partner can inspect the book of firm any time
A new partner can be admitted to the partnership firm without
the consent of limited partners.
All above are the features of our business.
OWNERSHIP
Our business is partnership business. We are four partners
Aaqiba Javed
Arslan Ali Butt
MuneebaNazir
Irtaza Ansar
Our partnership is limited liability partnership. We are all the owners of the
business.
LIABILITY OF OWNER
Our partnership is limited liability partnership (LLP). According to limited
liability partnership our partners are liable only that part which they
contribute in business. Their personal property is not liable.
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Agreement with supplier
CONTINUITY OF BUSINESS
Continuity of business means business has any effect
Death of owner
Withdrawal of capital of owner from business
There is no effect of above two factors on our business. In LLP firm death
or withdrawal of partner has no effect on the continuity of business.
According to the partnership agreement the limited partner also is
replaced.
TRANSFERABILITY OF INTEREST
This firm is limited liability partnership so all partner are not allowed to
transfer your interest to others. According to Limited Partnership Act
1932 if he transfers his interest to associate or junior partner then the
other partner not earn equal share in profit percentage as full partners.
CAPITAL REQUIRMENT
MANAGEMENT CONTROL
We are four partners of our firm so we are all take part in management of
our business. The environment change day by day so we will not mention
who take active part in decision making so we will not mention sensitive
matters on agreement .It all depend on the condition.
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ATTRACTIVENESS FOR RAISING CAPITAL
Mostly in partnership the attracting more capital is very difficult due to
unlimited liability. But in our business the partners are labial for only
contribution of capital. So we can attract more capital by increasing more
number of partners.
TAX ISSUE
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HIERARCHY
General
Manager
(1)
Manager
Operations
(Computer
Games)
Manager
Marketing
and Accounts
Manager
Operations
(Manual
Games)
IT Specialist
Sweepers
(1)
Gaurds
(1)
OPERATIONAL PLAN
The operational plan includes all processes, activities and operations that
are necessary to run a business. The operational plan of our Gaming Zone
Business includes the following activates.
PURCHASING:
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We first of all have to purchase the following assets for the operations of
our business from different suppliers and brings it into functional position
and afterwards maintaining it.
Equipment
Quantity
LCDs
PlayStations
Snooker Table
Hand Ball Game
2
2
Table Tannis
Carom
Chees
Shooting
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There will always be a IT specialist for handling any faults in games
at the spot.
We will get proper feedback by our customers with the help of
comment cards and verbally about our products and services
regarding the games operation and about our staff for regularly
improving our performance.
One
One
One
One
of us will be on Reception.
in the computer games area.
on Table Tennis Side
will see the snooker, hand ball and shooting game.
NOTE: The duties will be change. Girls will guide girls and boys will guide
girls. If anyone is on leave then other present partners from us will
manage and perform his/ her duty.
Our staff which will be required for operations of business includes:
One Permanent IT Specialist
One person working as a sweeper and other extra works
One security guard
PRODUCTION PLAN
SERVICE CREATION:
This means that how we can produce services and how we will deliver the
services to our customers in business.
SNOOKER:
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Our Gaming Zone will provides a splendid environment of snooker area, as
it will includes 2(12x6) size tables prepared with superb material.
TABLE TENNIS:
We will also provide another opportunity for students in the shape of this
game so that they energies their self in a proper way and with positive
game. They spend their leisure time in a way where they learn world class
game and enjoy their gathering.
We provide 1 table tennis tables with choice of single and double players.
We will charge hourly basis for this game and provide a great time to each
individual for playing this game on superb equipment.
COUNTER STRIKE
FIFA 2010
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GOD OF WAR
These games are attracting and liked by not only kids but also by adult
people. Because due to the technology of LAN we can also conduct
competitions among students. We can also attract them by offering
rewards for the winners of conducted completion. We will take entry fee
from all parties involved in competition. We will charge per hour for these
games. The price will be set according to the demand. We will provide 5
computers and 5 PlayStations for games.
NOTE: we will expand our gaming zone and games in it day by day after
earning profits.
GUN SHOOTING:
We will also include the area where we will provide the students artificial
gun where they can shoot the targets. To make this game more attractive
we will give the prize (Chocolate or other stuffs) to the individual who will
shoot the target according to our set criteria of game.
HAND BALL:
Hand Ball game is one of the very popular games. We will provide 2 hand
ball games in our gaming zone.
NOTE:
All the above games are our Assets which will produce the
services through which we will generate Sales.
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SUPPLIER OF GAMING ZONE
Sialkot is very famous for the supports goods. So there is a huge market
from
All this technology is available everywhere but we will buy these from
Lahore from the shop of our relative name Talha Computers. He will
provide us all the above technology at minimum cost.
FINANCIAL PLAN
SOURCES AND USES OF FUNDS
The ratio of the partners is as follow:
Partners Contribution Ratio
25%
Our total capital will be Rs. 3000,000 out of this capital the partners will
contribute round about 15,00,000 and the remains will be raised from
financial institutes like : smeda, banks and university student loan etc
Capital to be Brought in by Partners =
Borrowed Amount (Loan)
=
Total Initial Investment
KEY ASSUMPTIONS
Revenue is Increased @ 20% per Year
Cost of Services is Increased @ 15% per Year
Salaries are Increased @ 5% each Year
43
BUSINESS PLAN
Repair and Maintenance Expenses are Increased @ 20% each Year
Fuel and Utilities Expenses are Increased @ 10% per year
Retained Earnings are 75% of the Net Income
Interest Rate on Loan is 14%
Rental value of tender increased annually by 10%.
Other assumptions are further mention in the notes to these projected
financial statements.
REF.
NET REVENUE
01
5,896,800
Salaries
Stationary Expense
Rent Expense
Marketing and
Promotion
Repairs and
Maintenance
Electricity Expense
Phone and Internet
Misc Utilities
Depreciation Expense
02
1452,000
1,000
1200,000
16,000
03
04
250,000
05
Total Expenses
OPERATING PROFIT
EBIT
Interest on Loan
Expense
Profit before Tax
Tax (5%) of N.I
NET INCOME
Retained Earnings 75%
OF N.I
44
RS.
500,000
96,000
50,000
195100
3760100
2136700
2136700
210000
1926700
96335
1830365
1372774
BUSINESS PLAN
ASSETS
RS
FIXED ASSETS
Snooker
Carom
Computers
Play Stations
LCDs
Sound System
Furniture & Fixture
Projectors
Office Equipment
Security Cameras
A.C.s
Generator
Lights fans And Dcor
Table Tennis
Shooting Gun
160,000
2000
600,000
125,000
250,000
50,000
300,000
75,000
10,000
15,000
100,000
200,000
50,000
25,000
25,000
19,87,000
CURRENT ASSET
Cash in Hand
Cash at Bank
3,00,000
5,10,000
8,10,000
TOTAL
27,970,00
0
45
BUSINESS PLAN
RS.
15,00,000
200000
LIABILITIES
Loan
Profit Payable to Partners
TOTAL LIABILITIES
EQUITY
1700000
Retained Earnings
Capital
1372774
275774
TOTAL
2797000
NOTES:
NOTE # 1
TOTAL ANNUAL REVENUE
Total Annual Revenue from Games
Year 1 (Rs)
5,896,800
TOTAL REVENUE
5,896,800
It is assumed that:
There are 360 working days in a Year.
Snooker
Carom
Table Tennis
Shooting
Gun
Chess
Card-Board
Computer
Games
46
Descriptio
n
Rates
in Rs.
Minimu
m
Players
Equipme
nt
Available
6x12
Table
100
50
100
2
2
2
1
30
100
75
50
2
2
2
3
2
2
3
3
5
1,800
900
1,000
100
P.hour
3,500
Single
Player
Monopoly
Word
Puzzle
Usage
8
5
5
Daily
Reven
ue
3,200
1,000
1,000
480
BUSINESS PLAN
Play Stations
Single
Player
100
P.hour
Total
Revenue
3,500
16,38
0
NOTE # 2
SALARY
DESIGNATION
SALARY/MONT
H (RS.)
General Manager
Manager
Operations
(Computer Games )
Manager
Marketing
&
Promotions
Manager
Operations
(Manual Games)
IT Specialist
Sweeper
Security Guard
Year 1
RS
25,000 300,000
25,000 300,000
25,000 300,000
25,000 300,000
15,000 180,000
3,000
36,000
3,000
36,000
Total
121,000
1452,0
00
Note # 3
TENDER RENT MONTHLY
The building is acquired on Rent and as per agreement the monthly rent
for the building is Rs. 60,000 for the first 5 years. The Rent for the First
year is to be paid in advance
Monthly Rent = Rs. 100,000
Annual Rent = Rs. 100,000 x 12 = Rs. 1200,000
NOTE # 4
MARKETING AND PROMOTIONS
Unit
s
Cost/u
nit
Rs
Total
8,000
8,000
8,000
2,00
6,000
6,000
Rs
Annual
Cost
Rs
BUSINESS PLAN
0
2
Standee
1,000
2,000
Total
2,000
16,000
NOTE # 5
DEPRECIATION
ASSETS
COST
Snooker
160,00
0
2000
600,00
0
125,00
0
250,00
0
50,000
Carom
Compute
rs
Play
Stations
LCDs
Sound
System
Furniture
& Fixture
Projector
s
Office
Equipme
nt
Security
Cameras
A.C.s
Generato
r
Lights
fans And
Dcor
Table
Tennis
Shooting
Gun
Total
48
RESIDUAL
VALUE
20,000
BOOK VALUE
140000
DEPRECIATIO
N RATE
10
ANNUA
L DEP
14000
500
75000
1500
525000
10
10
150
52500
15000
105000
10
10500
30000
220000
10
22,000
5000
45000
10
4500
300,00
0
75,000
50000
250000
15
37,500
10000
65000
10
6500
10,000
500
9500
10
950
15,000
2000
13000
10
1300
100,00
0
200,00
0
50,000
20000
80000
15
12000
40000
160000
15
24000
2000
48000
10
4800
25,000
3000
22000
10
2200
25,000
3000
22000
10
2200
20870
00
195100
BUSINESS PLAN
APENDIX
We the students of MBA 3rd semester at UOG are going to conduct a research on
the making a Gaming Zone in UOG, and we have to collect some data about
the opinions of students of UOG. All data will be kept confidentially.
Name______________
Gender_____________
AGE :( 18 - 25)
Department__________
/ (26-35)
Tick the suitable answer.
1- Games are healthy activity for students.
(A) Strongly Agreed
(B) Agreed
(D) Disagreed
(C) Neutral
(C) Gossips
BUSINESS PLAN
Hand Ball
Bowling
Others
5- Time which I spend in playing games.
(A) Half Hour
(B) One Hour
6- I feel that university must provide the facility of playing games on daily
basis.
(A) Yes
(B) No
7- University has the gaming zone facility for students.
(A) Yes
(B) No
8- I want to have gaming zone in university to enjoy various games with
my friends.
(A) Strongly Agreed
(D) Disagreed
(B) Agreed
(C) Neutral
(C) Neutral
.
.
50