Greenwich University

Entrepreneurship Assignment I

Feasiblity report on gaming zone

I I I I

Shahzaib Khan I

BS55 6402
I
1 PURPOSEOFTHEDOCUMENT
The Iobjective Iof Ithe Ifeasibility Istudy Iis Iprimarily Ito Ifacilitate Ipotential Ientrepreneurs Iin Iproject
Iidentification Ifor Iinvestment. IThe Iproject Ipre-feasibility Imay Iform Ithe Ibasis Iof Ian Iimportant

Iinvestment Idecision Iand Iin Iorder Ito Iserve Ithis Iobjective, Ithe Idocument/study Icovers Ivarious

Iaspects Iof Iproject Iconcept Idevelopment, Istart-up, Iand Iproduction, Ifinance Iand Ibusiness

Imanagement.

2 PROJECT PROFILE I

The Iproject Iis Iabout Istarting Ithe Ibusiness Iof Ia IGaming IZone Iat IQuetta, IBalochistan. IThe Iproposed
Iplan Iis Ito Ioffer Icomplete Ipackage Iof ILAN Igaming Ifacilities Ifor Igamers, Iat Iboth Inational Iand

Iinternational Ilevel.

2.1 Project IBrief

The Iproposed Ifeasibility Ireport Ifocuses Ion Iestablishment Iof Ia I“Gaming IZone”. IA ILAN IGaming
ICenter Iis Ia Ibusiness Iwhere Ione Ican Iuse Ia Icomputer Iconnected Iover Ia ILAN Ito Iother Icomputers,

Iprimarily Ifor Ithe Ipurpose Iof Iplaying Imultiplayer Icomputer Igames. IUse Iof Ithese Icomputers Ior

Igame Iconsoles Icosts Ia Ifee, Iusually Iper Ihour Ior Iminute; Isometimes Ione Ican Ihave Iun-metered

Iaccess Iwith Ia Ipass Ifor Ia Iday Ior Imonth, Ietc. IIt Imay Ior Imay Inot Iserve Ias Ia Iregular Icafé Ias Iwell, Iwith

Ifood Iand Idrinks Ibeing Iserved.

The Iproject Iwould Iserve Ias Ia Iplace Iwhere Igame Ilovers Icould Iplay Iand Ienjoy Ithe ILAN Igaming Iat
Ibest. IInitially Ithe Iproject Iis Iproposed Ito Iattract Iyoungsters Ibut Iafter Iits Imaturity, ILAN Igaming

Itournaments Iat Inational Ilevel Icould Ialso Ibecome Ia Imajor Ipart Iof Iits Icustomer Ibase. I I

The Imain Ifeatures Iof Ithe Iproject Iwould Iinclude Ilavish Itechnology, Iclean Ienvironment, Isuperlative
Isitting Iarrangements, Irefreshments Iand Iother Ibasic Ientertainment Ifacilities.

2.2 Opportunity IRationale

LAN Igaming Iis Ibecoming Ione Iof Ithe Imost Irapidly Iincreasing Iindustry Iin Iall Iover Ithe Iworld. IBy
I2010, Ithe Ionline Igame Imarket Iis Iexpected Ito Ireach I$4.4 Ibillion, Iup Ifrom I$1.1 Ibillion Iin Irevenues

Ilast Iyear. IThat Ifigure Iis Ibased Ion Iinterviews Iand Iestimates Iof Idifferent Isegments Iof Ithe Igame

Iindustry Iincluding Ipublishers, Idistribution Iservices, Icasual IWeb-based Iservices, Iand Ialso

Iderivative Irevenues Ilike Iin-game Iadvertising Iand Icommodity Iexchange. ISupporting Ithese

Irevenues Iare IPC Igamers Iwho Ispend Ian Iaverage Iof I18.5 Ihours Iper Iweek Iplaying Igames, Iand I70

Ipercent Iof IPC Igamers Itake Ipart Iin Imultiplayer Imode Ionline. IIn Icomparison, Iconsole Igamers Iplay

Ian Iaverage I13.6 Ihours Iper Iweek, Iportable Igames Iare Iplayed I8.9 Ihours Ion Iaverage, Iand Imobile

Igames Iabout I4.6 Ihours. I

IT Iindustry Iin IPakistan Iis Icharacterized Iby Ilow Ibarriers Ito Ientry, Ia Ipreponderance Iof Ismall
Icompanies, Ian Iessentially Ideregulated Ienvironment Iand Ia Ihighly Icompetitive Imarket Iplace.

IPakistan Ihas Ia I2.8 Ibillion Idollar IIT Iindustry Iwith Iannual IIT Iexports Iworth IUSD I1.4 Ibillion. IIT

Iindustry Iconsists Iof Idifferent Isectors Ilike IAnimation I– IBusiness Iprocess Ioutsourcing I– Iweb I&

IGaming Ietc. I

In Ithe Ilast Ifew Iyears, Ia Itremendous Igrowth Iin Imultiplayer Igaming Iin IPakistan Iis Iobserved Iwith Ithe
Isupport Iof Igaming Icafes Iestablishing Iacross Ithe Icountry. ITo Ipromote Iinternet Igaming Iin IPakistan,

Ia Ilocal IDSL Iservice Iprovider Iintroduced Ia Ivalue Iadded Iservice Ifor Iall Ibroadband Iusers I'3G

IPavilion' Ia IMultiplayer Igaming Inetwork Ipromoting Ifree Imultiplayer Igaming Iin IPakistan. ILarge
Igamer Icommunities Iin IPakistan Iprefer Iplaying Iat Igaming Icafe's Ilocal ILAN Iparties Irather Ithan
Iplaying Ionline Idue Ito Inon Iaccessibility Iof Ihigh Ispeed Iinternet. I

2.3 Market IEntry ITiming

Since Igaming Iactivities Itake Iplace Iall Iaround Ithe Iyear Iand IGaming IZones Ioperate Iin Ia Iclosed
Ienvironment Iwith Icontrolled Itemperatures, Itherefore, Ithere Iis Ino Ineed Ito Ianalyze Imarket Ientry

Itimings Iin Iany Iaspect. IHowever, Ifor Isuch Ia Ibusiness Ito Itake Ia Iboost-up Istart, Ithe Iinvestor Imay

Ilaunch Ithe Iformal Ioperations Iimmediately Iafter Ithe Istart Iof Ithe Iwinter Ivacations.

2.4 Proposed IBusiness ILegal IStatus

Although Ithe Ilegal Istatus Iof Ithe Ibusiness Itends Ito Iplay Ian Iimportant Irole Iin Iany Isetup, Ithe IGaming
IZone Ibusiness Iis Iproposed Ito Ibe Ioperated Ion Ia Isole Iproprietorship Ibasis Iwhich Imay Iextend Ito

Ipartnership Iin Icase Iof Ifuture Iexpansion. IAlso Iless Icomplications Iand Icosts Iare Iinvolved Iin

Iforming, Iadministering Iand Irunning Isuch Ia Isetup Iand Ithe Itax Irates Iapplicable Ifor Isuch

Iarrangement Iare Ilower Ithan Iprivate Ior Ipublic Ilimited.

2.5 Project ICapacity Iand IRationale

The Iproject Iis Iproposed Ito Ihave Itwenty Ifive I(25) Iseparate Icomputers Istations/game Istations Iat
Istart. IAfter Iproject’s Imaturity Iand Iespecially Iduring Ithe Itournaments, Ithe Igaming Izone Icould

Ientertain Ia Iwider Ibase Ias Irequired.

2.6 Proposed IProduct IMix

The Ibusiness Isetup Iis Iproposed Ito Ihave Ithe Ifollowing Iproducts/services:
1. 25 Icomputers Iwith Ilavish Isitting Iarrangement Ito Iprovide Ia Ipleasurable Iexperience Ito
Icustomers Ifor ILAN Igaming.

2. Refreshment Iservices Iincluding Ijuices I– Isoft Idrinks I& Ifast Ifood Ietc.
3. Internet Ifacility. I I
To Imake Ithe Iproject’s Ioperations Ismooth Iand Iless Ihectic Ifor Ithe Igamers, Iit Iis Iproposed Ithat Ithe
Ikitchen I(fast Ifood Iand Ibeverages) Ishould Ibe Ihanded Iover Ito Ithe Isecond Iparty Ion ITheka Ibasis

Ithrough Icontractual Iarrangements. IThe Isecond Iparty Icontractee Iwill Ibe Iresponsible Ifor Iarranging

Iexperienced Icooks Iand Iinstalling Irequired Ikitchen Imachinery I& Iequipments. I

2.7 Project IInvestment

The Itotal Iinvestment Irequired Ifor Ithis Iproject Iis I1.7 IM. IThe Iinvestment Imainly Icovers Icapital
Icosts Iof I1.3 IM Iand Iworking Icapital Irequirement Iof I0.38 IM.

2.8 Recommended IProject IParameters

Capacity Human IResource Location
25 IGame IStations I I 6 Quetta, IBalochistan

Financial ISummary

Project ICost IRR NPV Payback IPeriod Cost Iof ICapital

I
 1.7 Imillion 83% 11,436,803 1.6 IYrs 12%
2.9 Proposed ILocation
The Iproposed Ilocation Ifor Ithe Iproject Icould Ibe Iin Iany Iof Ithe Ifollowing Iareas Iin IQuetta Isuch Ias
IMasjid Iroad, IJinnah Iroad, ISamungli Iroad, IKanvari Iroad, Iand IAlamdar Iroad Ietc. IBut Idue Ito Ithe

Iavailability Iof Iinfrastructure Iand Icomparatively Ihigh Itraffic Irate, Iit Iis Ihighly Irecommended Ito

Iestablish Isuch Ia Iproject Inear IMasjid Iroad Ito Iincrease Iits Iviability. IHowever, Isuch Ia Iproject Icould

Ialso Ibe Iestablished Ion ISatellite Itown Iand Iadjacent Iareas Iafter Icareful Ianalysis Iof Imarket Idemand

Iand Iproject Iviability.

3 CURRENT DOMESTIC GAMING ZONE INDUSTRYSTRUCTURE

I I I I

Gaming Imarket Iin IPakistan Iis Ideveloped Iincredibly Iin Ithe Ilast Ifew Iyears. IFor Ione Isegment Iof Ithe
Ipopulation, Iyouth Imarket I(school Iand Icollege Istudents) Igaming Izones Iare Ivirtually Ibecoming Ia

Icommonplace. IThis Iincrease Ihas Ibeen Iobserved Ibecause Iof Ithe Ilatest Iinclusion Iof Itechnology Iat

Ireasonable Iprices Iand Iavailability Iof Ithe Icheap ICD Icopies Iat Ievery Icorner Iof Ithe Icountry.

In IPakistan, Ithe Ileading Iname Iin Igaming Izone Imarket Iis I“Wired Iup IGaming IZone” Iwith Itwo Imajor
Isponsors I“Wateen” Iand I“Djuice” Ifor Iestablishing Iof ILAN Igaming Itournaments Iat Inational Iand

Iinternational Ilevel. IComputer, Ivideo Iand Ionline Igames Iare Iwoven Iinto Ithe Ifabric Iof Ieveryday Ilife

Ifor Iyouth Imarket. IA Irecent Iannouncement Iof I'Electronic ISports IWorld ICup I(ESWC) IParis' Ifor Ithe

Iyear I2007 Ithat Ithe Iwinners Iof IESWC IPakistan Iqualifiers I2007 Iwill Ibe Isent Ito IParis Ito Iparticipate

Iin Ithe IGrand IFinals Iof Ithe IESWC I2007 Iis Ia Igreat Istep Ifor Ithe Iup Icomings Iof IPakistan Ielectronic

Isports.

Different Itournaments Iof ILAN Igaming Iare Iheld Iall Iover Ithe Iworld Iwhich Iincludes Iboth Inational
Iand Iinternational Istatus. IInternationally I“world Icyber Igames I(WCG)” I& I“Electronic ISports

IWorld ICup I(ESWC)” Iacquire Ithe Ihighest Inames Iwhen Iit Icomes Ito Iinternational Igaming

Itournaments. IDifferent Igame Itournaments Iare Iplayed Iincluding IWar Icraft I3, IStar ICraft, ICounter

Istrike I1.6, IFIFA, INeed Ifor Ispeed Iand IAge Iof Iempire Ietc, Iin Iwhich Imembers Ifrom Iall Iover Ithe

Iworld Iparticipates. I

In IPakistan ILAN Igaming Iis Iincreasing Ivery Irapidly Iand Imajor Icities Ilike IKarachi, IIslamabad I&
ILahore Iconducts Idifferent Itournaments Iat Inational Ilevel Iunder I“Wired Iup IGaming IZone”. IThere

Iare Iapproximately I20 I– I25 Igaming Izones Ionly Iin IQuetta ICity Iand Ithe Imajority Iare Ifound Inear

IMariabad. IThe Ibiggest Inames Ion Ithe Ilist Ithat Isupports ILAN Igaming Iat Iprovisional I& Inational

Ilevel Iare IRaider IGaming IZone Ion IToghi IRoad Iand IMega IGaming IZone Iin ISerena IHotel.

Others IInclude:

 Iqra IGaming Izone Ion Imission Iroad

 Pirana IGaming Izone Ion ISamungli Iroad Inear IShehbaz ITown I Universal
IGaming Izone, IMariabad I& Ietc. I

The Imajor Igames Iplayed Iin IGaming Izones Iin IQuetta Iare:

 Counter IStrike IGlobal Ioffensive

 Dota I2
 
Warcraft I

Call Iof Iduty I4 I

FIFA I

Need Ifor ISpeed
4 MARKETINGSTRATEGY
4.1 Target ICustomers
The Itarget Icustomers Ifor Igaming Izones Imainly Iare Istudents Ifalling Iin Ithe Iage Igroup Iof I12-25.
IHowever, Iolder Iage Iparticipants/players Iare Ialso Iobserved Iin Igaming Izones Iin Idifferent Iparts Iof

Ithe Icountry.

4.2 Promotional IStrategies

The Itrend Iof IGaming Izones Iis Iincreasing Iday Iby Iday Iin Ithe Iupper Iand Imiddle Iclass Iand Inow Ithey
Iare Ispreading Ifrom Ibig Icities Ito Ismaller Iones. IThis Idemand Ican Ibe Iproperly Itapped Iby Iutilizing

Ithe Ifollowing Istrategies.

4.2.1 Promotion Ithrough Imedia

The Imost Iimportant Iissue Iwhen Ihaving Ia ILAN Iparty Iis Igetting Ithe Iword Iout. IUsing Ia Iweb Ipage Iis
Ia Ipopular Iway Iof Idoing Ithis. IPopular Iweb Isites Ilike IBlue’s INews Iand ILAN Iparty.com Ipublish

Iinformation Iabout ILAN Iparties. IIt Iis Igood Ito Iget Ia Iparty Ilisted Ihere Ifor Imore Ivisibility. IOther Iweb

Iresources Iare Isome Iof Ithe Ibanner Iad Iorganizations. ILocal Inewspapers Iand Ithe Inews Imedia Iare

Ialso Iused Ias Ipublicity Idraws. I

4.2.2 Prizes Ifrom Isponsors

Sponsors Iare Inecessary Ifor Ilarge-scale Ievents. IThe Imore Iprizes Ithat Isponsors Igive Ito Ithe Igames,
Ithe Imore Iinterest Iyou Ihave Ifor Ipeople Ito Icome Ito Ithe Ievent. IIt Iis Ia Iwin-win Isituation Ifor Iboth Ithe

Igaming Izone Iowner Iand Ithe Isponsor Ias Ithe Isponsors Iget Ipublicity Iand Ivisibility Iin Ithe Icommunity

Ifor Itheir Ispecific Iproducts/services. I

4.2.3 Location

Finding Ia Ilocation Iis Ian Iextremely Iimportant Istep Iin Igetting Ia ILAN Iparty Iset Iup Iand Irunning. IThe
Ilocation Ishould Ibe Iso Ichosen Iwhich Iis Ieasily Iaccessible Ito Ithe Ipeople.

4.2.4 Proper Iarrangement

The Ikey Ito Ihaving Ia Igood ILAN Iparty Iis Iorganization. IArrangement Iin Ia Irow Iis Imuch Ipreferable. IA
Ipoor Iarrangement Iis Ia Imajor Idownfall Iof Imost Imedium Ito Ilarge ILAN Iparties. I

4.2.5 Games

As Imentioned Iin Ithe Iprior Isection, Imake Isure Ieach Iof Ithe Igames Ithat Irequire Isetup Iis Iready Ito Igo. I
Try Ito Ikeep Iall Ithe Igames Ithat Ihave Imarket Iand Idemand. I I I
4.2.6 Tournaments

Tournaments Iare Ipopular Iways Iof Iattracting Iteenagers Iand Iare Ithe Imain Isource Iof Iearning Ifor Ithe
Iowners. ITournaments Irequire Ia Igreat Ideal Iof Iorganization. I

Registering Ifor ILAN Igaming Itournaments Iis Idescribed Iin Ithe Ifollowing Isteps:
 Check Ithe Itournament Iat Iwebsite Iof I IWired-up Igaming Izone I
 Register Iwith Iwired Iup Iat Irespective Itournament, Ito Ibe Iheld Iin Iyour Icity
 Choose Ithe Idescribed Igaming Izone Iof Iyour Icity
 Pay Ithe Iregistration Ifees Iat Irespective Igaming Izone. IThe Inormal Icharges Ifor Iregistration Ifee
Iare: I I

o IRs. I200/- Ias Iregistration Ifee Io

IRs. I60/- Iper Igame I

 In IQuetta IRaider I& IMega Igaming Izones Iconducts Ithe Itournaments. I

 For Iconducting Itournaments, Irespective Igaming Izone Imust Icontact Iwith IWired-up Igaming
Izone. I I

4.2.7 Fun

Remember Ithat ILAN Iparties Iare Ito Ihave Ifun. IMake Isure Ithat Ieveryone Idoes, Iand Ithey Iwill Ikeep
Icoming Iback Ifor Imore Inext Itime. I

4.2.8 Free IInternet IAccess

Free Iof Icharge Iinternet Iaccess Iwould Icertainly Iincrease Ithe Iinflow Iof Igamers Iwhere Ithey Icould
Iplay Igames Iand Iuse Iinternet Iside Iby Iside Iat Ithe Isame Icost.

4.3 Pricing IStrategy

The Iprice Icharges Ifor Ithe Igaming Izones Iare Ibetween IRs. I15/- Ito IRs. I60. IBut Iincase Iof Inational/city
Ilevel Itournaments Iunder I“wired Iup Igaming Izon” Ithe Icharges Iare I I

o IRs. I200/- Ias Iregistration Ifee Io

IRs. I60/- Iper Igame I

4.3.1 Additional IRevenue

Additional Irevenue Ican Ibe Iearned Ithrough Iproviding Iinternet Iand Irefreshment Iservices. IHowever,
Iin Ithis Iproposal, Iit Iis Irecommended Iearlier Ito Iprovide Iinternet Iservices Ifree Iof Icost Ito Iattract

Icustomers. IIt Iis Iproposed Ito Igive Ithe Irefreshment Iservices Ion ITheka IBasis Ito Iany Isecond Iparty Ion

Icontract. I

5 SYSTEMS ILAYOUT
Basically Ithere Iare Itwo Itypes Iof Inetworking Iwhich Iare:

1 Peer-to-Peer Ibased Inetworking

2 Client-Server Ibased Inetworking
In Igaming Izones Imostly IClient-Server Inetworking Iis Iused. IThe Imajor Icharacteristics Iof
IClientServer Inetworking Iare:

5.1 Minimum IComputer/System IRequirements

• Pentium IIV I2.4 IGHz
• 10 IGB IHard IDrive
• 512 IMB IRAM
• 17” ILCD IMonitors INew I(9000)
• 128 IMB IGraphic ICard
• LAN ICard
• Standard Ihead Iphones/mic
• Keyboard I& Imouse
6 PROJECT IREQUIREMENTS

6.1 Main IProject IRequirements

The Ibasic Irequirements Ifor Ia IGaming Izone Iinclude Iappropriate Ispace, Ihuman Iresource, Igame
Istations, Icomputers, Isupport Iequipments, Iair Iconditioners, Itelephone/fax, Ielectric Igenerator Iand

Ibasic Iutilities. IThese Iequipments Iare Ieasily Iand Ireadily Iavailable Iin Ithe Ilocal Imarkets.

6.2 Equipment IDetails

The Idetails Iof Ithe Idifferent Imachinery Iand Iequipment Irequired Ifor Ithe Iproject Iare Igiven Ias Ibelow:
Table I6.2.1 Equipment I& IMachinery IDetails
Description Units Price/Unit Total IPrice
I(PKR)

* IServer I– IP4 1 20,000 20,000

* IComputers Iincluding I128MB IAPP-ASUS I

25 7,700 192,500
9550, IKeyboard I& IMouse I I
New ILCD IMonitors I(17”) 26 9,600 249,600
Headphones I& Imic 25 300 7,500
Webcam I 25 500 12,500
AMP Ibox 1 3,100 3,100
Generator 1 350,000 350,000
Total m 835,200
*These Iprices Iare Iof Ibranded Isecond Ihandputer Isyste s
Icom

Table I6.2.2 Office IEquipment IDetails

Description Qty Price/Unit Total ICost I(PKR)

Air-conditioners 2 30,000 60,000

 Telephone/intercom Isets 1 1,000 1,000
Total 61,000

Table I6.2.3 Furniture I& IFixture IDetails

Description Qty Price/Unit Total ICost
I(PKR)

Computer Iworkstations/Game Istations 25 10,000 250,000

Office Ifurniture I 30,000
Renovation Icost 100,000
Total 380,000
6.3 Furniture Iand IEquipment IMaintenance
The Ifurniture Iand Iequipment Imaintenance Iprocess Iwill Ibe Iconducted Ion Iyearly Ibasis.

6.4 Human IResource IRequirement

The Imanpower Irequired Ifor Ioperating Ithe Iproject Iis Ias Ifollows:

Table I5.4-1 Human IResource IRequirement IDetails

Monthly Total IMonthly
Description Qty ISalary/Person ISalary I(PKR)

Manager/Accounts Iand IAdmin IOfficer 1 30,000 30,000

Network Iadministrator 1 15,000 15,000
Office Ipeon 2 4,500 9,000
Sweepers 1 3,500 3,500
Guard 1 4,000 4,000
Total 61,500
Note: IThe Istaff Isalaries Iare Iestimated Iaccording Ito Ithe Imarket Itrends; Ihowever, Ithe Iinvestor Imay Iset
Idifferent Ipay Iscales.

6.5 Space IRequired

It Iis Irecommended Ithat Ithe Iproposed Iproject Ishould Ibe Iestablished Iin Ia Irental Ipremises Ion Iany Iof
Ithe Iabove Ispecified Ilocations. IHowever, Ithe Iinvestor Imay Iestablish Isuch Ia Isetup Ion Ia

Ipurchased/constructed Ibuilding. IAccording Ito Ithe Irecommended Imode, Ifollowing Iis Ithe Iestimated

Ispace Irequired Ialong Iwith Ithe Imonthly Irental Iexpenses Ifor Ithe Iproject:

Table I6 -1
I Space IRequirement Iand IEstimated IMonthly IRental IDetails

Description Area IRequired Estimated IMonthly IRental ICharges I(PKR)

 Gaming IZone ISpace 1,000 ISq.Ft. 20,000
Total 20,000
6.6 Utilities Iand IInfrastructure IRequirement
Basic Iutilities Ilike Ielectricity, Igas Iand Iwater Iare Irequired Ifor Ioperating Ithe Iproject.
7 STARTINGASUCCESSFULGAMING IZONE IBUSINESS
From Ithe Ilast Ifew Iyears, Iinformation Itechnology Ihas Ispread Iin Ithe Icountry Iwith Ifast Ipace Iand
Imore Iand Imore IIT Irelated Iventures Iand Ibusinesses Iare Ipopping Iup Iin Idifferent Icities Iof Ithe

Icountry. IComputer Igaming Ihas Ireceived Ipopularity Iamongst Ithe Igame Ilovers Iin Ithe Irecent Itimes

Iand Itherefore, Imany Igaming Izones Iare Iestablished Iin Imajor Icities Iof Ithe Icountry Ito Itake Ithe

Iadvantage Iof Ithe Isupply Igape. ISince Igaming Izones Iare Ibecoming Ia Icommon Ibusiness Iventure Iand

Iwith Iless Icapital Iinduction Iand Ihigher Ireturns, Ipeople Imust Ialso Ienjoy Irunning Ithem. IHowever, Iall

Iof Ithose Iadvantages Icome Iat Ia Iprice I– Ibuilding/establishing Iand Ioperating Isuch Ia Istructure Ifrom

Iscratch Iand Ithat Itoo Ifor Ithe Ifirst Itime Iis Inot Ian Ieasy Itask. IIt Iis Ia Ihard Iprocess Iand Ithe Ireality Iis Ithat

Imany Igaming Izones Ifail Iin Itheir Ifirst Iyear Iof Ibusiness Idue Ito Iimproper Iplanning Iand Iforecasting.

IBut Irest Iassured Ithere Iare Iways Ito Ireduce Ithe Irisk Iof Ibecoming Ianother Istatistic. IFollowing Iare

Isome Iof Ithe Ihandy Itips Ithat Ican Ihelp Irun Ia Isuccessful Igaming Izone Iestablishment Iin IQuetta ICity.

7.1 Work Iin Ia ISimilar Ior IRelated IBusiness IVenture

One Iof Ithe Ibest Iways Ito Ireduce Ithe Irisk Iof Iowning Ia Ifailed Igaming Izone Iis Ito Ihave Isome
Iexperience Iof Ia Isimilar Ibusiness Iactivity Ibefore Iyou Istart Iyour Iown. IMany Isuccessful Ibusiness

Iowners Ihave Isaid Ithat Ithe Ibest Iway Ito Iprepare Ifor Iowning Ia Isimilar Isetup Iis Iby Iworking Iin Ione.

IWorking Iin Ithe IIT Iindustry Iand Ilearning Ithe Ibasics Iis Ian Iimportant Ifirst Istep Ito Ibecoming Ia

Isuccessful Iowner.

7.2 Know IYour ITarget IMarket

Who Idoes Ithe Iinvestor Isee Ias Iclient/game Iplayer Iin Ihis/her Isetup? IIs Ihe Itargeting Iyoungsters,
Iseniors, Ior Icorporate Ipeople? IKnowing Ithe Itarget Imarket Ibefore Istarting Iplanning Iwill Inot Ionly

Ihelp Ithe Iinvestor Isolidify Ihis/her Ioverall Iservices Ibut Iit Iwill Ialso Ihelp Idetermine Ithe Ilocation,

Idecor Iand Ithe Ioverall Iatmosphere Iof Ithe Igaming Izone.

7.3 Develop Ia IBusiness IPlan

Like Iany Iother Itype Iof Icompany/venture/business, Ia Igaming Izone Iwill Ineed Ia Iconcise Ibusiness
Iplan. IThis Iplan Ishould Iinclude Ibut Iis Inot Ilimited Ito: Ithe Ioverall Iconcept Iand Igoal Iof Ithe Ibusiness,

Ispecific Ifinancial Iinformation Iand Iprojections, Ia Idescription Iof Ithe Itarget Imarket, Ithe Iservices,

Iand Ipricing, Iequipment Iand Iemployee Idetails, Iadvertising Iand Imarketing Iplan, Iand Ia Ipotential Iexit

Istrategy.

7.4 Choose Ia ILocation I& ILayout

It Iis Iimportant Ito Ifind Ia Ilocation Ithat Ihas Ia Icontinuous Istream Iof Itraffic, Iconvenient Iparking, Iand Iis
Iin Iproximity Ito Iother Ibusinesses. IThe Iinvestor Ishould Ialso Ikeep Iin Iview Iits Ieasy Iproximity Ifor Ithe

Iother Ivisitors Isuch Ias Istudents Ietc Ifrom Ithe Imain Itown/city. IIn Iaddition, Iif Ithe Iinvestor Iacquires

Ithe Ipremises Ion Irental Ibasis, Ihe/she Ishould Imake Isure Ithat Ithe Imonthly Irent Iis Iin-line Iwith Ithe

Ibusiness Iplan's Iprojections. IOnce Ithe Ilocation Iis Iselected, Ithe Ilayout Iand Idesign Iof Ithe Iinterior

Ishould Ibe Itaken Iinto Iaccount. IInvestor Ishould Ialready Ihave Ia Iconcept Iof Ia Itypical Igaming Izone Iin
Ithe Ibusiness Iplan Iand Ibring Ithe Iconcept Iinto Ithe Idesign Iof Ithe Ioverall Istructure Iwith Iadditional
Imodifications Ias Iper Ihis/her Iown Irequirements. I

7.5 Getting Ithe IAppropriate IFunding

The Ibusiness Iplan Iwill Ihelp Ithe Iinvestor Irecognize Ihow Imuch Imoney Ihe/she Iwill Ineed Ito Istart Ia
Igaming Izone. IIf Iunsure Iabout Ihow Imuch Imoney Iwill Ibe Ineeded Iupfront, Italking Ito Iother Isimilar

Ibusiness Iowners Ican Ihelp Iproject Ithe Iexpected Istart-up Icosts.

7.6 Hiring IEmployees

One Iof Ithe Ibiggest Ichallenges Iany Ibusiness Iventure Ifaces Iis Ithe Ilack Iof Iquality Iand Iqualified
Ihuman Iresource. IIn Iorder Ito Iget Iand Iretain Igood Iemployees, Ithe Iinvestor Ishould Imake Isure Ithat

Ithe Ipay Iscales Irelate Iclearly Ito Ithe Ijob's Iduties Iand Iresponsibilities. IIn Iaddition, Ifinding Iout Iwhat

Iother Isimilar Isetups Iare Ipaying Itheir Iemployees Iwould Ihelp Ithe Iinvestor Ito Istay Icompetitive Iin Ithe

Ijob Imarket, Iwithout Ispending Itoo Imuch Ion Ipayroll. IHowever Ithe Iinvestor Ishould Itry Ilinking Ithe

Ipayroll Iwith Ithe Ibottom Iline Iand Isee Ihow Imuch Imoney Ican Ibe Isqueezed Iout Ifor Ithe Iemployees.

ISimilarly, Igiving Ipriority Iof Ihiring Ithe Ilocal Ipeople Iin Ithe Istaff Igives Ianother Iadvantage Ias Ithey

Imight Ibe Imore Iaware Iof Ithe Ilocal Icustoms/traditions Iand Iwould Ihelp Idevelop Isuch Iatmosphere Ito

Iattract/satisfy Icustomers. IIn Icase Iof Idifficulty Iin Ifinding Itrained/educated Istaff, Iinvestor Imay Iwant

Ito Itrain Ithe Istaff Iafter Ihiring Ithem Iaccording Ito Ithe Ibusiness Ineeds Iand Irequirements. I I

7.7 Advertise I& IMarket

Every Ibusiness Ineeds Ia Icomprehensive Imarketing Iplan Iand Isuch Ia Isetup Ithat Inever Ihas Ibeen Iwell
Ipromoted Ibefore Icertainly Iwould Ineed Ia Ilot Iof Iconcentration Ifor Iits Iproper Iintroduction Iin Ithe

Imarket. IAfter Idetermining Imarketing Ibudget, Iprice Iout Ibillboard Iadvertising, Iflyers Iin

Inewspapers, Iand Ilocal Icable ITV Iadvertising. IAsk Ithe Icustomers Ihow Ithey Ifound Iout Iabout Iyour

Isetup Iand Iservice, Iso Ithat Iyou Ican Irecord Iwhere Ithe Iadvertising Iand Imarketing Imoney Icould Ibe

Ibest Ispent.

8 PROJECT IECONOMICS

8.1 Project ICost

Description Amount Iin I(Rs.)
Land -
Building I& Iinfrastructure -
Machinery I& Iequipment 835,200
Furniture I& Ifixtures 380,000
Office Iequipment 61,000
Pre-operating Icosts 47,306
Total ICapital Icost 1,323,506
Working Icapital
Upfront IBuilding Irent 240,000
Upfront IInsurance IPayment 41,760
Cash 100,000
Total IWorking Icapital 381,760

Total Project cost

I I 1,705,266
8.2 Project IReturns
Description Equity Project
IRR 109% 83%
MIRR 39% 33%
Pay IBack IPeriod I(Yrs) 1.23 1.59
Net IPresent IValue I(NPV) 9,342,129 11,436,803
8.3 Project IFinancing
Amount Iin IRs
Description Percentage 1,022,999
Equity IFinancing 60% 682,267
Debt IFinancing 40% 1,705,266
Total