Gaming Hub

Business Plan
ACKNOWLEDGEMENT

We would like to express our sincere gratitude to Mr. Suraj Shrestha, who provided
us this wonderful opportunity to carry out this project of preparing a Business plan
on The Gaming Hub Nepal along with financial analysis. Without his proper support
and encouragement, we wouldn’t have been able to carry out this endeavor. This
project has motivated us towards the potentiality of entrepreneurship in future as
our career.
We would like to thank Kathmandu University School of Engineering for providing
us with the opportunity to learn entrepreneurship and ethics.
We are grateful to all those who have supported us from beginning and also many
others who have contributed to our study and observation directly or indirectly.

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 SALIENT FEATURES OF THE BUSINESS

Name of the Business : The Gaming Hub Nepal Pvt.

Ltd.
Nature of the Business :
Address of Office/ Branches :
Major Product/ Services :
Target Customers :
Major Market (Geographic) :
Working Schedule :
Human Resource (Number) :
Number of Shareholders :
Total Investment
Investment in Fixed Assets :
Investment in Operating Assets :
Capital Structure (Debt: Equity)
Debt to Equity Ratio :
Total Equity :
Total Debt :
Profit Margin :
Total Assets Turnover :
Return on Assets :
Return on Equity :
Table of Contents
Executive Summary ....................................................................................................................... 6

Introduction .................................................................................................................................... 7
Vision ........................................................................................................................................... 7
Mission ......................................................................................................................................... 7
Value statement ........................................................................................................................... 8
Goals/Objectives .......................................................................................................................... 8

Company Discription ................................................................................................................... 10

Organization/ Management and Human Resource Plan ........................................................... 11
Organizational Chart .................................................................................................................. 11
Departmentalization and their core functions ............................................................................ 12
Board ......................................................................................................................................... 13
Top Management ....................................................................................................................... 14
Job Description of Key Positions and Employees ..................................................................... 14
Human Resource Management Aspects ................................................................................... 16

Industrial Analysis ....................................................................................................................... 17

SWOT ANALYSIS ..................................................................................................................... 17
Market Segmentation ................................................................................................................. 18

Market Analysis ............................................................................................................................ 19

Industry Structure and Market Characteristics .......................................................................... 19
Environmental Analysis ......................................................................................................... 19
Five Forces of Market and its state in this industry ............................................................... 20
User Behavior ............................................................................................................................ 21

Marketing Plan .............................................................................................................................. 22

Marketing Strategies .................................................................................................................. 22
Consumer Analysis .................................................................................................................... 23
Marketing Mix ............................................................................................................................ 24
Sales Strategies, Management and Techniques ....................................................................... 25
Management and techniques .................................................................................................... 26

Pricing Strategy............................................................................................................................ 27

Financial Plan ............................................................................................................................... 29

Financial Objectives ................................................................................................................... 29
 Estimates of pricing strategy and annual revenue: ................................................................... 30
Revenue Model and profit margin ............................................................................................. 31
REVENUE MODEL AND PROFIT MARGIN ............................................................................. 32
Fixed and variable cost .............................................................................................................. 33
FIXED AND VARIABLE COST .................................................................................................. 33
Start-up cost............................................................................................................................... 33
Break-even chart calculation ..................................................................................................... 34

Location Analysis ........................................................................................................................ 35

Competitive Analysis ................................................................................................................... 36

Business Model ............................................................................................................................ 38

Implementation Schedule ........................................................................................................... 39

Risk and Contingency Plan ......................................................................................................... 41

Key Risks in the Business ......................................................................................................... 41
Risk Management Plan.............................................................................................................. 41

Contingency Plan and Exit Plan ................................................................................................. 42

Contingency plan: ...................................................................................................................... 42
Exit plan: .................................................................................................................................... 42
EXECUTIVE SUMMARY

The business of gaming hub is beneficial in the context of Nepal in a sense that
this is the growing trend in our country and many teenagers and gamers are looking
forward to establishing their career in the e-sport sector. The growing craze of both
mobiles and pc games among every group of people is one of the major catalysts
for mushrooming the gaming hub in Nepal. We carry out our business activities
through dealing with gaming content creators such as Khatri and Mr. Junior
involved in e-sports and also with the gaming community of Nepal for the long run
and sustainability of both our gaming hub and our Nepalese gaming community
also. As this trend is new and our company is one of the founding and trend setting
companies, Gaming pcs, best network speed, high specs pcs and place for content
creation in YouTube and other streaming platforms to all the players and content
creators will be provided as per the contract signed by both the parties. Gaming
hub basically is conceptualized as a gaming center for the e-sport career seekers
in various pc and mobile games. We have developed the hub as an integral training
center and a boot camp (house to live and train with team). A better Wi-Fi
connection and a place for their gaming and streaming as per their wants is our
services. These are our major cost acquiring price other than PCs and LED
screens and gaming consoles. We generate our revenue through entrance fees,
through the tournaments winning prices of our teams, selling of accessories,
professional game trainings etc. and our day-to-day business is concerned
basically in gaming café which serve the facility of gaming cabers and food café
for the customers. Our other source of income is dependent on the ads we play in
each tournament and the sponsor’s that fully or partially support us in hosting and
price pool and LAN management for the gaming tournaments.

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INTRODUCTION

One of the remaining bastions of authentic gaming are gaming cafes. Gaming cafes
offer a richer experience, preserving a historic type of gaming that mixes amusement
with the possibility to interact physically with others. The Gaming Hub will provide
players with the best video gaming experience imaginable as well as a facility that
cannot be duplicated at home. For those who are familiar with games, Gaming Hub
will deliver an exhilarating and never-before- real gaming experience. The users will
be charged for playing games on an hourly or daily basis. Gaming Hub will release a
slew of new and fascinating games that will pique the user's curiosity.
Every day, new video game systems such as the Play Station, Nintendo Wii, XBox,
and other computer games are released. There are so many new games and versions
that a fresh new game purchased becomes outdated even before we get home since
newer versions are available. Users can't afford to buy everything, but there are some
fascinating games that demand a lot of clarity and space and can't be played at home.
Although these games may be played at home, playing them in front of a large crowd
on large screens, in a pleasant environment with friends and new competitors,
provides a unique experience. The Gaming Hub will provide facilities for an enchanting
experience as well as updated games and versions that will make any game lover feel
good.

Vision
 Expand our business in different districts of Nepal
 Bring new gaming technologies like VR gaming sets, 3D projectors etc.
 Build game store with new and upgraded gaming accessories.
 Build streaming platforms and trainings for those gamers who are thinking to
build career in gaming.
 Become leading gaming service provider.

Mission
 To provide highest and latest quality gaming technologies with fastest internet
services.
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  To provide a boot camp facilities where gamers with competitive mindset can
get proper facilities and trainings to develop and enhance their gaming level.
 To target game lovers and provide them a suitable gaming platform with
entertainment environment and also a place where they can hang out with
friends.

Value statement
Gaming hub will offer facilities not only to enjoy but also to develop gaming skills of
those gamers with competitive mindsets. It is committed to provide best technologies
and services so that everybody who visits can get satisfied. It offers games of all
genres (RPG, Action, Adventure etc.) in multiple platforms like PC, Mobile,
PlayStation, X-Box etc.

Goals/Objectives
Our Business Plan objectives are listed into 3 parts:
Short Term Goals:
 To aware people about the new opening of gaming hub and provide idea and
information about its services and facilities.

Medium Term Goals:

 To attract customers and provide best gaming environment and facilities for
developing good relationship.
 To form new teams based on different games for competitive scenario.
 To provide services of café and cue gaming (like pool, snookers, billboards)
where people can hangout and enjoy.

Long Term Goals:

 To build a name in gaming world and expand our business in different cities of
Nepal.

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 To further expand our business by bringing latest and upgraded software and
equipment’s, 3D gaming platforms, facilities for streaming and also by opening
Game Shop.

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COMPANY DISCRIPTION

Gaming Hub is a start-up business mainly focused on providing entertainment to the

people. With having a gaming base, our company along with spreading entertainment
messages, also helps people in developing their career in the gaming business.
The business's idea basically started with the increase in the number of people playing
PUBG and other such games. The unmatched craze for PUBG, Dota, Fortnite and the
international competition going on, Gaming Hub emerged with the idea of supporting
such players who not only want a gaming career but also can represent our country
in the gaming world.
Seeing the potential market with the rise in the number of gamers and people
interested to see others play, our company has come forward in developing a business
providing such people with the platform to enjoy playing and simultaneously earn as
well.
The general objectives of Gaming Hub revolve around supporting the players and
wanna-be-players and the services we provide are:
 Create a comfortable environment for the players and those wanting to enter
the pro scene
 Lag free gaming
 Making players ready for the tournament, providing them training
 Provide the required gaming equipment (headphones, console, even gift cards)
 Better spec's PC along with better network connection which are generally not
provided by the local cyber’s
 Special services for premium membership users
 Will have proper management with token system along with security system
 Other services that include fooding, accommodation, ambient lighting and
proper space for practicing that requires charge

Owned by a member of 5, this business will create a significant impact on the gaming
community reaching as many gamers as possible and being a pushing factor for them.

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Organization/ Management and Human
Resource Plan
Stakeholder Analysis and their interests
The Gaming Hub Nepal is not entirely a new business in Nepal but is new in its
unlagging cutting edge services in Nepal. It will start as a partnership company with a
simple management structure. The shareholders or the business partners are the key
operators at the beginning of the business. The key stakeholders in our business are
the business partners, public, NGOs, INGOs, Local bodies, and government. NGOs,
INGOs, local bodies, and governments are now seeking new entrepreneurial ideas for
business. Similarly, the trend of gaming is rising exponentially and the number of
people in the gaming community is also growing to a fact that a person can make their
livelihood through playing games only.

Organizational Chart

Our business will be having simple organizational structure. We intend to ensure that
there is open communication between all personnel with minimum hierarchy. Our
company will be headed by a single individual in their respective departments until
and unless there requires any changes.
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Departmentalization and their core functions
Technical Department
This department is responsible to develop company’s strategy for using technological
resources, to ensure technologies are used efficiently, profitably and securely and to
evaluate and implement new system and infrastructure.

Marketing and Advertising Department

This department is responsible to plan, implement and oversee all marketing and
advertising campaigns, to conduct market research and stay abreast of competitor
positioning and to build a network of reliable external agencies and marketing
professionals.

Research and Development Department

This department is responsible in improving existing services or products. It is also
responsible to research and develop the new techniques of acquiring, analysing and
the providing the output of the task that the company takes.

Finance Department
This department is responsible in planning, implementation, managing and running of
all the finance activities of a company, including business planning, budgeting,
forecasting and negotiations.

Operation Department
This department is responsible for smooth and profitable service. This department
ensures the overall quality and the delivery of output in time and keeps the company
run efficiently.

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Board
Board of The Gaming Hub Nepal consists of 5 founders. Apart from taking
responsibility for the strategic planning, these founders are also the key operators at
the beginning stage of founding and running the business.
Board members with their description and key position of are mentioned below:

Name: Prabas Baral Name: Ashim Lamichhane

Address: ,Nepal Address: Ratnanagar-09, Chitwan,

Nepal
Mobile: +977-
Mobile: +977-9845717711
E-mail: @gmail.com
E-mail: lamichhanea21@gmail.com
Position: CEO
Position: CTO

Name: Rajendra Dhami Name: Dibash Kumar Khatri

Address: , Nepal Address:,Suryabinayak-10,Bhaktapur,

Nepal
Mobile: +977-98
Mobile: +977-9861788333
E-mail: @gmail.com
E-mail: Dibbudon18@gmail.com
Position: CFO
Position: CMO

Name: Kokish Bhusal

Address: ,Nepal

Mobile: +977-98

E-mail: @gmail.com

Position: MD

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Top Management
The top management team of our company consists of 5 co-founders. Among 5
founders, 1 will be CEO, 1 will be MD, 1 will be CTO, 1 will be CFO and 1 will be CMO.
In case of any conflict in coming future, it will be decided in an amicable manner by
the board members. Most of the task of the office and the field will also be done by
equal involvement of all five members.

Job Description of Key Positions and Employees

Managing Director/Human Resource Manager
The person in this position will be responsible for:
 Recruit and select the best staffs to perform the task efficiently and effectively.
 Understand and provide effective solutions for issues faced by clients and
employees alike.
 Overlook and manage the company’s operation.
 Recruit and select the best candidate.
 Develop promotional campaign for establishing brand image of the company in
the market.
 Doing budget control, accounting treatment and taxation planning for the
corporation.

Chief Executive Officer (CEO)

The person in this position will be responsible for:
 The CEO has overall responsibility for creating, planning, implementing, and
integrating the strategic direction of an organization. This includes
responsibility for all components and departments of a business.
 Leading the development of the company’s short- and long-term strategy.

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Chief Technical Officer (CTO)
The person in this position will be responsible for:
 Oversee all system design and changes in system architecture.
 Responsible for IT works.
 Maintain and operate technical service.

Chief Financial Officer (CFO)

The person in this position will be responsible for:
 Responsible for keeping accounts.
 Looks after the overall financial and management department.
 Planning, implementation, managing and running of all the finance activities of
a company, including business planning, budgeting, forecasting and
negotiations.

Chief Marketing Officer (CMO)

The person in this position will be responsible for:
 Identifying new areas of digital marketing opportunities and create plans to
implement them for us and our clients
 Planning, implementing and overseeing all marketing and advertising
campaigns, to conduct market research and stay abreast of competitor
positioning and to build a network of reliable external agencies and marketing
professionals.

Receptionist:
The person in this position will be responsible for:
 Answer the phone in a timely manner and directs the calls.
 Create and manage both digital and hardcopy filing systems for all partners.
 Make scheduled meetings based on all partners’ itineraries.
 Deal with bookings and orders by phone, e-mail, social media or face-to-face.
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  Prepare bills and take payments.

Human Resource Management Aspects

HR Planning
Quality of work is the key factor for the success of every business. Selection of best
employee is important. We will be hiring best employees for specific tasks from the
respective background.

HR Administration
The Rules and Regulations of HR management are:
 The vacancies for the post to be filled will be published in the newspaper.
 Criteria for the selection of employees will be according to the decision from
board of directors.

HR Development
For the development of Human Resource, employees will be encouraged and
provided trainings. Activities and duties will be divided to the employees according to
their field of expertise considering their strength and weakness. Motivation programs
will be conducted frequently to build up the confidence of employees.

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INDUSTRIAL ANALYSIS

Predicting the craze is a difficult task. There has been a huge craze of gaming careers
in both mobile and pc games (i.e., E-sport career) since the last few years. This
organization has an opportunity to increase, as people have a huge interest in gaming
and e-sport careers.
Many people not only want to watch and enjoy the game but as per growing trend
many players want to play and build careers in the gaming community. Being trained
and well coached about the game and playing strategies. This ultimately leads the
company’s growth. It goes without saying that training center staff will have to be more
knowledgeable and skilled than ever in order to compete in the market.
We thereby analyze our possible functioning through SWOT analysis below:

SWOT ANALYSIS
STRENGTHS WEAKNESSES
 Fast growing market  Cost at initial stage
 Quicker could be more
development  There is no
 New and enforcement legislation
mushrooming craze
of gaming career
 Sponsored
cooperate partners
for organizing
gaming
tournaments

OPPORTUNITIES SWOT THREATS

 Profit from winning  Established
tournaments and competitors from every
training school genre
 Rise in numbers of  Mushrooming foreign
game specific
graduates maintain E-sport company in
healthy flow of talent search of local talent
into industry  Toxic audience
 Partnership with the  New rules and
gaming community guidelines on basis of
and help self and age and members from
community a single organization
 All the major
leagues and
tournaments can be
an opportunity

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Market Segmentation
Market segmentation is basically categorized into two major parts that is majority
target and mini target. Our basic focus for the optimum performance of the company
will be directed to the majority target who are gaming lovers of age group 16-30. It is
our focus to achieve all our advertisements, discounts, programs for the group.

Majority Targets

Basis Criteria

Demographic segmentation  Age 16-30 for players, 20-50

years for trainer and job
seekers.
 Sex: male and female, who
wishes to go to pro scene

Geographic segmentation  Banepa

 Dhulikhel

Minority Targets

Other Targets  Other age group people for

recreation.
 Kids

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MARKET ANALYSIS

Gaming hub concept is not new in countries all over the world having many
technological advancements, but for a developing country like Nepal gaming hub
business is absolutely new. We have only seen foreigners going to arcade, gaming
hub, joining e-sport in their own country, Nepalese unfortunately do not have access
to such places and service easily.

Industry Structure and Market Characteristics

Environmental Analysis

Regarding the environmental analysis, we have conducted PESTLE analysis of our

business plan.

Political:
We won't have to deal with many political difficulties because we're opening a
gaming hub.

Environmental:
Have to be respectful with the environment and not harm species. Our gaming hub
will have no negative impact on the environment.

Social:
Our gaming hub will be beneficial for society since it will provide amusement to
people, as society is evolving and people are here for fun.

Technological:
Technology can take things to new heights in any sector, and our gaming hub is no
exception. It will be wonderful for both guys and girls.

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Legal:
There will be no legal issues; all we need is a license from the local police station
and municipal cooperation to open it.

Economical:
People will play games for entertainment regardless of economic changes, and
gamers will undoubtedly participate.

Five Forces of Market and its state in this industry

Threat of New Entrants:

 More competition
 Different services
 Patent right of the owner
 Unequal access to distribution channels

Threat of Substitutes:
 Competitors providing data and services at a lower cost using traditional
methods/instruments

Bargaining power of buyers:

 Low bargaining by customers because of good services with better quality at
reasonable prices
 Customers may choose only certain facilities while neglecting other

Bargaining power of suppliers:

Bargaining power is high because of:
 Good quality of service at fixed price
 Limited suppliers

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Rivalry within Industry:
 Slow industrial growth
 Services at lower prices
 Similar products and little switching costs

User Behavior
If there are many gaming cafés on the particular places all the purchases of consumer
and uses of the station will be shared among the others. There will be the various
methods of selling so that consumers will get according to their want. From time-to-
time special offer for the user is given. There will be an efficient price along with
membership facilities will be provided.

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MARKETING PLAN

Marketing Strategies

Awareness
People should be aware of the opening of new gaming hub and what it is providing to
the gamers. It should be talk of the gamers so that more and more people will be
aware and check it out. For this we follow online as well as offline methods
 Online Method includes creating pages and groups in media platforms like
facebook, uploading videos in platforms like youtube, uploading photos in
platforms like twitter, instagram etc.
 Offline Method includes Printing Flyers, decorating the hub so that people who
sees it gets attracted.

Consideration
Awareness brings interest in some gamers. We provide a suitable environment for
those interested gamers and give them reason to visit. For this we will be using
strategy such as:

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  Playing a game for more than 3 hours giving him a extra free gaming hour
 Free gaming 1 hour for new players
 Free gaming gifts for lucky draw winner that will be held once in a week

Loyality
To those gamers who gets loyal and feels associated with the hub will be provided
with loyality programs like:
 Discounts in the price of gaming hour
 Buying subscription gives free merchandise.

Purchase
Gamers coming to purchase can be offered different packages and gifts. The hub will
have provide services that gamer’s feels like value oriented.

Consumer Analysis
Target Consumers:
The target market is for those who need the services for enjoying as well as developing
their gaming level.

Marketing and Growth Strategy

People want quick service under a same roof and they are willing to pay for it since
we are providing a complete package system of every services we give.

Competitive Advantage:
There are some similar type of companies in the market providing same kind of
services like ours. But, still the level of competitiveness will be healthy as learning from
their marketing strategies and market influence also helps to tackle and the customer
segment.

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Growth Strategy:
Below the line marketing (BTL): We will be focusing on target marketing strategies
i.e., based on the class of customers.
Digital Marketing: Growth of people engagement towards social networking sites like
Facebook, YouTube, and Instagram etc. will be our platform for advertising.
Word to Mouth Marketing: In word to mouth marketing technique, we will orally
advertise our company services through our initial customers and our stakeholders,
friends & families.
Also, we will be establishing our own websites, Pamphlets, etc. as a source of
marketing.

Marketing Mix
Being a service-oriented company, we are generally concerned with the 7P’s of
marketing mix. Through these the marketing objectives could be achieved.
Product:
We will be focusing on providing solutions because people buy solutions but not
products.
Our company will be focusing on providing the complete solution rather than providing
the raw data to save the valuable time of the client with the desired quality.

Price:
Market penetration is done with cheaper price to penetrate in the current market.
Client will be charged with reasonable price.

Place:
Our head office will be at.Banepa
Our working area is not bounded, but the area will be defined according to the client
requirement.

Promotion:
Advertisement in various local Medias like newspapers, radio and local television.
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Promotion through website and Social Medias like Facebook, LinkedIn, Twitter, etc.
Create the promotional videos and publishing.

Process:
Those people who need our service can contact us through our website, cellphone,
directly visiting us.

Physical Evidence:
We will have the logo of our company.
We will have the office building with the board with company’s info in front.

People:
Public, NGOs, INGOs, Local bodies, and government will be directly or indirectly
involved in the delivery of our service.

Sales Strategies, Management and Techniques

Sales Strategies
A sales strategy is a company's plan to build its brand to generate sales and increase
revenues.

Understanding the target market

Service strategy of our company is based on research. We will be focusing the client
who are willing and interested to take the service with special care.

Appropriate Budgeting
Appropriate budgeting for the product is a key factor for sales strategy. Budgeting of
the service will be done according to risk, time period, location, complexity area and
details to be covered.

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The Consumer Experience
Sales strategy must also include who are our ideal customers. User friendly
environment for providing service is to be maintained for a good sales strategy that
make a good impact in our economic value.

Management and techniques

The steps for management techniques are:

Set appropriate goals

Setting a main goal for the company is an important technique of management.
SMART (specific, measurable, action oriented, realistically high and time and resource
bound) goals are good for managing the business. As the goal of our company is to
provide all kinds of complete drone solution services to national.

Develop a plan to achieve the goals

Only setting up the goals is not enough it must be put together for implementation. For
achieving a goal, the employees of our organization are trained and motivation is
given. Meeting at one day of every week is done for achieving a goal of our company.

Assess performance and make adjustment

Once the above steps are completed, you will need to assess performance and make
any necessary changes. Being little friendly with the each other and employees is a
management strategy for achieving a goal of our company.

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PRICING STRATEGY

Price has a direct impact on your cafe's profitability, so setting the right prices is critical
to success. Cafe pricing strategies must consider not only your costs, but also the
style of your cafe and its target market. Table service can be more expensive than
counter service, as can premium or specialized items. You should also think about the
location. You can charge more if you're in a high-end neighborhood.
In general, there are two types of pricing strategies. The first is variable pricing, which
refers to a pricing strategy in which we have different infrastructure PCs, one of which
is superior, and we separate them by pricing them at different game time rates.
Another pricing strategy is flat pricing, which refers to the pricing strategy in which the
cafe charges the same price for all PCs regardless of their configuration.
While variable pricing allows us to cater to the needs of different segments and
maximize earnings by charging more for better services, flat pricing can help to
increase the cafe's occupancy rate and revenue from other sources such as food and
beverages because price sensitive customers will happily spend more time on high
end systems.
As a result, we will try to use flat pricing as much as possible without compromising
the value of the service and gradually transition to variable pricing as the number of
loyal customers grows.
Other pricing strategies that we believe will profit our company are listed and explained
below:

Price Combination
Bundling several items together is a popular pricing strategy in cafes. For example, if
you normally charge Nrs. 50 for a Coke and Nrs. 125 cents for a Momo, you can sell
them together for Nrs. 150. Customers will see this as a good deal, which will help you
increase sales. You must also consider how much your customers are willing to pay.

Complementary Pricing
Complementary pricing is a pricing strategy in which you offer a low price for a
common item compared to your competitors while raising the price on other things.
You may, for example, establish a low price for your Coke. Then, to compensate, raise

27
the price of your Momo just a little higher than your competitors. Customers will be
drawn in by the low-cost item, and once inside your café, they will be more inclined to
purchase the somewhat more expensive item.

Discounts for loyal customers

This method encourages customers to return by giving them something for free or at
a reduced price. Loyalty discounts, also known as patronage discounts, are discounts
given to returning clients in order to encourage them to utilize your services more
frequently. Customers that are loyal to a firm are given price breaks, extra benefits, or
discounted rates as a reward for their loyalty.
You may also increase client loyalty by providing membership discount cards or punch
cards that say "play for 5 hours and receive a free hour."

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FINANCIAL PLAN

The Economics of the business

Business economics is a field of applied economics that studies the financial,
organizational, market related, and environmental issues faced by the organization.
Finance is the science and art of managing large amounts of money. Investment
decision working capital decision and profit management decision are few important
features of finance. Good financial management greatly helps to increase the profit
and also helps us to decide whether the investment is good for the company or not.

Financial Objectives
Short Term:
 Collect 50% of the initial investment, 10% from each share holder
 To charge low to attract more customers
 To make flow of capital easy
 To ensure sufficient funds to run business smoothly

Medium Term:
 To make reasonable profit
 To arrange a necessary amount of capital for business expansion
 To share dividend with the shareholders every year of the startup

Long Term:
 To invest own capital by paying long term debt
 To reduce cash outflows and unnecessary funds

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Assumptions made for financial estimations

Office Rent 10% increase in each year

Office Supplies 5% increase in each year

Advertisement Expenses 10% increase in each year

Other Expenses 10% increase in each year

Depreciation
Preliminary Expenses (Straight line method)
Furniture and Fixtures (DB Method at 20%)
Office equipment’s (DB Method at 20%)
Machines and Equipment’s (DB Method at 15%)
Loan interest (12% for 10 years)

Estimates of pricing strategy and annual

revenue:
Estimated income from:
Sales of miscellaneous item:
1. Gaming console: 150pcs x Rs1500 = Rs 225000
2. Gaming mouse: 250pcs x Rs1000 = Rs 250000
3. Game cards = Rs 25000
4. Gaming keyboard: 100pcs x Rs 3500 = Rs 350000

From PlayStation
No. of PlayStation = 6
Price per hour = Rs 150
Estimated play time = 6.5 hrs.

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Total working days = 330days
Annual income from use of PlayStation = 6 x 150 x 6.5 x 330 = Rs.1930500

From Xbox
No. of Xbox = 4
Price per hour = Rs 135
Estimated play time = 7.25 hrs.
Total working days = 330 days
Annual income from use of Xbox = 4 x 135 x 7.25 x 330
=Rs.1291950

From PC gaming
No. of PC = 10
Price per hour = Rs 60
Estimated play time = 8 hrs.
Total working days = 330
Annual income from PC gaming = 10 x 60 x 8 x 330 = Rs.1584000

Boot camp Rent = Rs.300000

Total revenue= Rs.5956450

Revenue Model and profit margin

Gaming time
Gaming Time refers to the time given to the gamers in exchange of the amount they
pay for playing games. It is the primary source of our gaming hub and its revenue
increases with the increase in time played by the gamer.

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Sales of accessories
Selling of different gaming accessories like gaming consoles, mouse, keyboard,
headphones also generate revenue for our gaming house

Tournament
Hosting different tournaments can increase not only revenue but also attract new
customers. The income gained from entry fee with large numbers of gamers
participating can be a source to generate revenue.

Professional Gaming trainings

Providing proper trainings and giving ideas can also be a key factor in generating
income. People will pay to hire some experts to get knowledge and enhance their level
in gaming which will serve gaming hub as well as gamers in positive way.

Indoor and Cue gaming

People who wants entertainment a part from video gaming can enjoy indoor games
like snookers, pools and billboards which will generate proper revenue.

Ad-revenue and Sponsors

Gaming hub will sell advertising space for different brands who are seeking to
advertise prime gamers they have eye on. Many brands sponsor tournament to
advertise themselves that will generate revenue

REVENUE MODEL AND PROFIT MARGIN

Gaming Hub
Particulars Amount (NRS)
Renting boot camps (12*30,000)
3,60,000
per team
Sale of accessories 12,00,000
Gaming Time 12,00,000
Ad revenue 5,00,000
Tournaments 5,00,000

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 Content created in YouTube 6,00,000
Regular gamers 12,00,000

Total 55,60,000

Fixed and variable cost

FIXED AND VARIABLE COST

Gaming Hub
Particulars Amount (NRS)

Salaries 24,00,000

Maintenances 1,00,000
Rent 12,00,000
Internet 1,70,000
Miscellaneous 1,00,000
Taxes 40,000
Electricity 35,000
Telephone 10,000

Total 40,55,000

Start-up cost
Start-up costs means the investment required initially for business set up. In case of
our business plan the initial investment are mostly on electronic devices which are
used for gaming purpose. The list of devices and its estimated cost are written below:

START-UP COSTS
Gaming Hub January 1, 2018
COST ITEMS MONTHS COST/ MONTH ONE-TIME COST TOTAL COST
Advertising/Marketing 3 Rs 5,000 Rs 20,000 Rs 25,000
Postage/Shipping 1 Rs 2000 Rs 2,000 Rs 4,000
Gaming PCs (15 × 125000) Rs 0 Rs 1875000 Rs 18,75,000
Insurance Rs 0 Rs 300000 Rs 3,00,000
Generator Rs 0 Rs 100000 Rs 1,00,000
Gaming Consoles Rs 0 Rs 300000 Rs 3,00,000
Led Televisions Rs 0 Rs 210000 Rs 2,10,000
Furniture & Fixtures Rs 0 Rs 350000 Rs 3,50,000

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 Business Licenses/Permits/Fees Rs 0 Rs 50000 Rs 50,000
Accessories Rs 0 Rs 1000000 Rs 10,00,000
Miscellaneous Rs 0 Rs 100000 Rs 1,00,000
ESTIMATED START-UP
RS 43,14,000
BUDGET

Break-even chart calculation

As the total estimated fixed and variable cost is Rs 40, 55,000 the breakeven point is
when we cover all the expenses. Any number lower than that amount, the business
will face loss. Similarly, if we manage to obtain higher number the business will be
profitable. According to the revenue chart, the gross earnings of the business is Rs
55, 60,000. After we deduct estimated fixed and variable cost the business still
manages to earn the net profit of Rs 15,05,000.

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LOCATION ANALYSIS

Banepa and Dhulikhel are the cities where craze for games are raising among the
youth and the kids. The number of gamers are increasing but the cities lack proper
gaming facilities and gaming environment. It lacks enough gaming cyber’s and gaming
house. Youth are encouraged to build a career in gaming but it lack training and
guidance. So, our gaming hub is to be introduced to provide all the facilities, services
and training to the gamers that they are searching for. This was the reason behind
choosing Banepa as our initial location.
Our gaming hub will be near Chardobato, Banepa as it is the midpoint of the road
connecting not only Kathmandu and Dhulikhel but also Panauti.

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COMPETITIVE ANALYSIS

In our location there are gaming house like Banepa game house, Sanjay game house,
the game planet which can give us top competition. These gaming house are well
recognized for PC gaming as well as PlayStation gaming but our hub will have its own
unique solution. We will provide not only PC and PlayStation gaming but also services
for mobile gaming, X-Box etc. Our hub will not only be focused in video games but
also be focused on cue gaming like Snookers and Billboard so that not only gamers
but other people of various age group can hangout and enjoy. By analyzing these 3
gaming house, they can house from 15-20 people maximum at a time but our hub will
be built to house more gamers and peoples and provide services for each of them
equally.
SW Analysis Gaming Hub Sanjay Game House The Game Planet

STRENGTH -A complete - 2-3 years of experience. -Provides good

Gaming Parlor console gaming
providing high - Hosts Gaming fair experience.
FPS non lagging annually
Gaming
Experience.
-Cheaper
Gaming Rates.

WEAKNESS - New service in -Reluctant punctuality in -The gaming

this place providing services. Platforms are of low
- little large initial specs.
investment

Consumer and Demand Analysis

Targeting and Positioning Strategy
Targeting
-Services in Banepa area.
-People from Kavre district wanting best gaming experience.

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Since it is located at Banepa, our hub will provide out services to the all the gamers
near and mainly KU students wanting best gaming experience will be our target
costumer. We would like to prosper in this gaming field by expanding our services.
Our gaming hub would like to prosper and expand providing best virtual gaming and
even developing gaming setup for our customers.

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BUSINESS MODEL

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IMPLEMENTATION SCHEDULE

Plan
Our company will begin operations on January 25, 2022. From January until mid-
March, we will combine all of the materials essential for the creation of the services in
collaboration with our key partners. In addition to gathering resources, we begin the
documentation and registration of our company. Our company's executive review will
take place on June 20, 2022, and the executive decision will be made on July 1, 2022.
From mid-March to mid-May, we need to select employers for our company. Following
the hiring of the employers, a meeting with all of the employees will be held on August
9, September 19, and December July to address progress, implementation, and other
issues.

Test
We will utilize penetration pricing strategies to test our services. To begin, we will
establish a low initial price in order to swiftly and deeply penetrate the market in order
to attract a big number of buyers and obtain market share.
Then we'll conduct a survey to see what types of gaming services consumers are most
interested in.
Then we'll ask them for input on the types of gaming services that are available and
how we might improve them.

Develop
Along with the testing of our business for the sale of our services, we must first
comprehend the customer's interest and viewpoint. Between January and February,
we install all of the necessary gaming equipment. The development project will be
completed by the end of April.

Launch
Throughout the course of our company's existence, we will host a variety of events.
Initially, we will create social media platforms such as Facebook, Twitter, and

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Instagram, where we will be ready to listen to and connect with clients. The
introduction of social media is set for June 5, 2022.
The date for our press release is August 10, 2022, when we will make an official
announcement about our services in the news media and comment on our company's
mission, vision, goals, and objectives. For additional promotion and connection with
clients, we will launch our own public website and mobile application on October 15,
2022.
We intend to implement our business in this manner in the coming year.

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RISK AND CONTINGENCY PLAN

Key Risks in the Business

 New venture so it can be overtaken by another similar consultancy
 Trust issues with the market and vendors.
 Bargaining power of customers is high
 Risk regarding market segregated
 Potential for personality and authority conflicts
 Customers themselves can contact workforce after certain services which
might reduce our market

Risk Management Plan

 Market penetration strategy can be applied
 Service publicity can be given in extensive way in the initial phase
 Maintenance of the quality of services so as to avoid/minimize the market
segregation

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CONTINGENCY PLAN AND EXIT PLAN

Contingency plan:
 Cash for three months must be in our hands in order to hold all the necessary
expenses of our startup

Exit plan:
Common types of exit strategies include initial public offering (IPO) strategic
acquisitions and management buyouts (MBO)
 Sale of Company
 Sale of gaming accessories

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