M1 Unit 3 Business Plan

Nathan Matthews
627 Hunter Street, Newcastle, NSW 2300
ABN: 88 143 526 089
ACN: 143 526 096
\

DIMENSION
GAMING
Business Plan
Prepared: 24/08/2014

DIMENSION Business Plan 2014

Table of Contents
Business Plan Summary ........................................................................... 3
The
The
The
The

Business ....................................................................................................... 3
Market .............................................................. Error! Bookmark not defined.
Future .............................................................. Error! Bookmark not defined.
Finances ........................................................... Error! Bookmark not defined.

The Business .............................................................................................
4
Business details ................................................................................................... 4
Registration details ............................................................................................... 4
Business premises ................................................................................................ 5
Organisation chart ................................................................................................ 6
Management & ownership ..................................................................................... 6
Key personnel...................................................................................................... 6
Products/services ................................................................................................. 7
Innovation ........................................................................................................ 10
Insurance.......................................................................................................... 11
Risk management .............................................................................................. 11
Legal considerations ........................................................................................... 11
Operations ........................................................................................................ 12
Sustainability plan .............................................................................................. 14

The Market .............................................................................................. 15
Market research ................................................................................................. 15
Market targets ................................................................................................... 16
Environmental/industry analysis ........................................................................... 16
Your customers .................................................................................................. 17
S.W.O.T. analysis ............................................................................................... 18
Your competitors ................................................................................................ 19
Advertising & sales ............................................................................................. 20

The Future .............................................................................................. 21
Vision statement ................................................................................................ 21
Mission statement .............................................................................................. 21
Goals/objectives ................................................................................................ 21
Action plan ........................................................................................................ 22

The Finances ........................................................................................... 22
Key objectives and financial review ...................................................................... 22
Assumptions ...................................................................................................... 22
Start-up costs for [YEAR] .................................................................................... 23
Balance sheet forecast ........................................................................................ 24
Profit and loss forecast........................................................................................ 25
Expected cash flow ............................................................................................. 26
Break-even analysis ........................................................................................... 27

Supporting documentation ................................ Error! Bookmark not defined.

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DIMENSION Business Plan 2014

Business Plan Summary
The Business
Business name: DIMENSION GAMING
Business structure: Partnership
ABN: 88 143 526 089
ACN: 143 526 096
Business location: 627 Hunter Street, Newcastle, NSW 2300
Date established: 1/1/15
Business owner(s): Nathan Matthews, Dylan Olsen-Obrien
Relevant owner experience: Dylan-Olsen-Obrien and Nathan Matthews used to own a small arcade called gamezone for 5 years.
Dylan-Olsen-Obrien is completing a traineeship in retail and has qualifications in training. Nathan Matthews also has relevant qualifications in customer service and stock control and has completed a computer management course.
Products/services:

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DIMENSION Business Plan 2014

The Business
Business details
Products/services: DIMENSION incorporates 3 different zones for customers to enjoy and spend their time in. The 1st zone is a retail section that will sell new and used games and consoles, accessories and gaming related items for PC, XBOX, PLAYSTATION and NINTENDO. This section will also allow customers to ‘try before they buy’ with consoles set up in store with all of the newest games on show. The 2nd zone is a gaming arcade with card operated machines and games, some
of which dispense tickets that can be redeemed at the shop for prizes or the cafe. There are 2 party rooms available for hire aswell. The 3rd zone is opal café that will serve hot & cold food including hot chips, pizza, pastries and deserts aswell as beverages. The anticipated demand for such a business is medium to high as there aren’t really any businesses like this, offering a unique experience.

Registration details
Business name: DIMENSION GAMING
Trading name(s): DIMENSION
Date registered: 22/08/2014
Location(s) registered: NSW-Newcastle 2300
Business structure: Partnership
ABN: 88 143 526 089
ACN: 143 526 096
GST: Yes, 22/08/2014
Domain names: www.DIMENSION.com.au
Licences & permits:
Australian Business Number (ABN) Registration
Background Music Licence
Building Approval Certificate
Building Permit - Uncertified
Certificate of Registration of Limited Partnership
Employer Requirements - Superannuation Guarantee
Fair Work Information Statement
Goods and Services Tax (GST) Registration
Licence to Erect or Maintain a Sign
Licence to Play Featured Recorded Music
Licence to Play Protected Sound Recordings or Music Videos
National Business Name Registration
Occupancy Permit
Pay-roll Tax Registration
Planning Approval
Provide Workers' Compensation
Registration as a PAYG Withholder
Registration for Fringe Benefits Tax (FBT)
Registration of a Trade Mark
Residential Codes Variation Approval
TFN Application/Enquiry - Partnership or Joint Venture
Trade Promotion Lottery Permit
Working with Children Check
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DIMENSION Business Plan 2014

Business premises
Business location:

627 Hunter Street, Newcastle, NSW 2300

DIMENSION will be located in in the heart of Newcastle on
Hunter Street, in a space between Reaction Fitness centre and Leading Edge
Computers. Hunter Street is a major road in the Newcastle central business district and easy to reach from anywhere in the metropolitan area. it is located within the immediate vicinity of other retail stores, restaurants, entertainment venues and public transport hubs with bus stops and train stations in the same street. Also Newcastle foreshore and Civic theatre are within 2 kilometres. Traffic at this location is one of the highest in the Newcastle area with 10’s of thousands of people passing through each day. The current population of Newcastle city is 179,000 with 589,000 people within a 5 kilometre radius of Newcastle, making it an ideal location. Having a car park makes it easier for customers to reach us by car and also there is ample parking surrounding the business.
1275 m2 is available for development on this 2 floor building with parking space for 12 vehicles out the back. Access to the main lobby is from the main entrance at the large shopfront with a separate entrance at the back for staff. Offices and supply rooms are upstairs aswell as store rooms downstairs. There are toilet facilities on both floors with the downstairs toilets being large enough to accommodate patrons. The downstairs are will be for the gamezone and the café and upstairs will be the arcade with 2 party rooms on either side.
After consulting with 3 local firms, the Dan Schwartz Construction Company was selected to remodel the interior. For $63,000, the walls and doors will be built to create the rooms needed. The construction includes preparing the walls and ceilings for their final covering, relaying carpeting throughout, and installing the counters, café kitchen, remodelling the restrooms/disabled toilets, installing lights/ fittings and display shelving.
After building the kitchen for the café, we will lease out that space to Opal café for $225 per week. Buy/lease: The premises was purchased for $645,000 through Raine & Horne Commercial.

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DIMENSION Business Plan 2014

Organisation chart
MR Nathan Matthews
Owner/partner
[Arcade Manager + Marketing manager + stock manager]

Arcade
Employee

MR Dylan-Olsen-Obrien
Owner/Partner
[Gamezone Manager + office manager + crew trainer]

Gamezone employee Arcade
Employee

Gameszone employee MR Ben Hosford
[Café owner]
Arcade
Employee

Gamezone employee Café employee Café employee Management & ownership
Names of owners: Nathan Matthews and Dylan-Olsen-Obrien
Details of management & ownership:
The business owners will be the ones running the business and making core decisions. We will make all of the major judgements on what is the best for the business in all three aspects of the business in association with the recommendations from the staff and customers.
Both of us is primarily in charge of and manages one zone each. Nathan Matthews will be managing the Arcade, marketing and stock whilst Dylan-Olsen-Obrien will be managing the Gameszone, office and crew trainer. We will each own
50% share of the business each. Both of us have required knowledge about the products and services.
We have great management and leadership skills, self-confidence, organisational skills, communication skills, Collaboration skills, Critical thinking skills, strategic thinking skills, Finance skills, initiative and
Project management skills. We have a partnership agreement that dictates that we both have to equally contribute to the business financially and do our share of work and that neither of us can receive more or less than 50% of the business unless agreed upon by both partners.
Experience:
Dylan-Olsen-Obrien and Nathan Matthews used to own a small arcade called gamezone for 5 years.
Dylan-Olsen-Obrien is completing a traineeship in retail and has qualifications in training. Nathan
Matthews also has relevant qualifications in customer service and stock control and has completed a computer management course.

Key personnel
Current staff
Job Title

Name

Expected
staff
turnover

Skills or strengths

Partner/Owner Arcade manager, marketing manager and stock manager

Nathan
Matthews

Expected to stay lifetime of the business

5 years experience in the industry, great management and leadership skills, communication skills, Critical thinking skills,
Finance skills and Project management skills, strategic thinker, initiative, award in marketing excellence 2008, cert 3 in computer management

DylanOlsenObrien

Expected to stay lifetime of the business

5 year’s experience in the industry, communication skills, Collaboration skills, Critical thinking skills, Finance skills and Project management skills, motivated, self confidence

Partner/OwnerGamezone manager, office manager and crew trainer

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Required staff-2 staff working in each zone at one time- rotated shifts
Job Title

Quantity

Expected staff turnover

Skills necessary

Date required

Arcade employee [3]

[2 years]

Must be technologically minded and have previous experience with arcade games and equipment-- must have good communication skills-- finance skills— motivation-- organisational skills

Start immediately Gamezone employee [3]

[2-3 years]

At least 18-- previous experience in sales-- must be technologically minded-must be knowledgeable about games and related material-- must have good communication skills-- finance skills— motivation-- organisational skills

Start immediately Recruitment options: For initial required staff, we are going to put advertisements in the local paper, place a ‘hiring now’ sign out the front, advertise online and through recruitment agencies. After that recruitment for our store will only be advertised when we lose one of our staff members, this is because we are a small business and only require a few staff members.
Training programs:

.In the event that we can’t find staff that possess the required skills, we will hold an in-house training program aimed at improving the skills of staff to fill the requirements of the job.

.After the person has been hired, they will be required to do a training shift course with the crew trainer to learn about what we expect them to do and learn the ways we would like our store to run.
They will be taught the ins and outs of products and be required to be quite an involved staff member.

.Every month we will hold an in-house staff development course to further educate staff on new products, procedures and equipment so as to provide better quality service and products to consumers.

.Once every 3 months both partners will attend a business course, from external providers, to further improve managerial skills and learn strategies to better run the business more efficiently.
Skill retention strategies
In order to make sure the requirements of the store are carried out each day there will be an opening and a closing procedure list that will be marked off each day by the staff on duty as the required actions are taken. When the duty has been carried out and finished the staff member will mark it off and move down the list. This will ensure that all necessary duties are completed each day.

Products/services
As the business is divided into 3 zones, there will be different services and products provided in each.

The arcade: This area will offer a large array of about 30 state of the art arcade machines and games to give the customers a complete immersive gaming experience. These machines will cater for the hard core gamer to the leisure gamers, with a diverse selection of games to choose from. This system will work on a pay to play system using swipe cards with designated time periods for purchase or prepaid sessions. Customers can put a certain amount of money on their card or purchase an unlimited session that will go from 30 minutes to a 5 hour session. Throughout the duration, customers will obtain tickets from the machines according to scores achieved. These can be redeemed at the shop which will contain an array of gaming related prizes and lollies. There will be 2 party rooms that can be rented for up to 20 people; these have to be booked in advance. There will be storage, tables and chairs, table decoration, menus from the café, jukebox to allow customers to pick music and display on the TV, and plates/cups etc. Cakes can also be ordered that can be specifically made to what the customer desires.

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DIMENSION Business Plan 2014

Product/Service

Description

Price

unlimited sessions (Per person)

30 minutes of unlimited games with all machines excluding kamikaze virtual reality machine
1 hour of unlimited games with all machines excluding kamikaze virtual reality machine

$9.90

Party room

$14.90

2 hours of unlimited games including kamikaze virtual reality machine

$29.90

3 hours of unlimited games including kamikaze virtual reality machine and lolly bag $44.90

4 hours of unlimited games including kamikaze virtual reality machine, lolly bag and $5 café voucher

$59.90

5 hour session with unlimited games including Kamikaze virtual reality machine, lolly bag and $10 café voucher

$74.90

Hiring the party room (rate per hour up to
20 people)

$15

The Gaming zone: this area will sell all of the latest games produced for PC, XBOX, PLAYSTATION and
NINTENDO consoles. It will also sell pre-owned games that customers will trade in to purchase new games at a discounted price. It will sell new and pre-owned consoles aswell as accessories and gaming paraphernalia. The layout will show easy distinguishable sections for games and items related to each console. The back wall will feature consoles with interchangeable games to allow customers to test new games or consoles before they purchase.
Product/Service

Description

Price

NEW-XBOX ONE Games

Brand new packaged games

$59-$89

NEW-PLAYSTATION 4 Games

Brand new packaged games

$59-$89

NEW-DS Games

Rand new packaged games

$39-$69

NEW-Wii U Games

Brand new packaged games

$49-$79

NEW-XBOX 360 Games

Brand new packaged games

$39-$59

NEW-PLAYSTATION 3 Games

Brand new packaged games

$39-$59

NEW-PC Games

Brand new packaged games

$29-$59

PRE-OWNED-XBOX ONE Games

Used games

$35-$55

PRE-OWNED-PLAYSTATION 4 Games

Used games

$35-$55

PRE-OWNED-XBOX 360 Games

Used games

$9-$29

PRE-OWNED-PLAYSTATION 3 games

Used games

$9-$29

PRE-OWNED-Wii Games

Used games

$9-$25

PRE-OWNED-PC Games

Used games

$10-$25

PRE-OWNED-3DS Games

Used games

$10-$29

PRE-OWNED-PSVITA Games

Used games

$10-$25

PRE-OWNED-Wii U games

Used games

$19-$39

NEW-XBOX ONE Console bundles

Brand new packaged console

$458-$598

50GB

$458

250GB

$508

500GB

$598

Brand new packaged console

$448-$588

NEW-PLAYSTATION 4 Console bundles

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DIMENSION Business Plan 2014

50GB

$448

250GB

$508

500GB

$588

Brand new packaged console

$305-$355

20GB

$305

100GB

$325

250GB

$355

Brand new packaged console

$299-$379

20GB

$299

100GB

$339

250GB

$379

NEW-Wii U Console bundles

Brand new packaged console

$359-$429

NEW-3DS Console bundles

Brand new packaged console

$225-$275

NEW-PSVITA Console bundles

Brand new packaged console

$228-$278

PRE-OWNED-XBOX ONE Console

Used Console

$308-$398

50GB

$308

250GB

$353

500GB

$398

Used Console

$119-$199

20GB

$119

100GB

$159

250GB

$199

Used Console

$300-$395

50GB

$300

250GB

$347

500GB

$395

Used Console

$129-$205

20GB

$129

100GB

$167

250GB

$205

Used Console

$275

Used Console

$178

PRE-OWNED-PSVITA Console

Used Console

$169

NEW-XBOX ONE controller

Brand new packaged controller

$64

NEW-PLAYSTATION 4 controller

Brand new packaged controller

$65

NEW-XBOX 360 controller

Brand new packaged controller

$39

NEW-PLAYSTATION 3 controller

Brand new packaged controller

$41

NEW-XBOX headsets

Brand new packaged headset

$29-$209

NEW-PLAYSTATION headsets

Brand new packaged headset

$29-$199

NEW-PLAYSTATION 4 battery pack

Brand new packaged battery pack

$24

NEW-PLAYSTATION 3 Console bundles

NEW-XBOX 360 Console bundles

PRE-OWNED-XBOX 360 Console

PRE-OWNED-PLAYSTATION 4 Console

PRE-OWNED-PLAYSTATION 3 Console

PRE-OWNED-Wii U Console
PRE-OWNED-3DS Console

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DIMENSION Business Plan 2014

NEW-PLAYSTATION 3 battery pack

Brand new packaged battery pack

$15

NEW-XBOX ONE battery pack

Brand new packaged battery pack

$25

NEW-XBOX 360 battery pack

Brand new packaged battery pack

$19

NEW-Black widow keyboard

Brand new packaged keyboard

$154

NEW-Razor gaming mouse

Brand new packaged mouse

$90

NEW-Monster HDMI cable

Brand new packaged cable

$49

NEW-XBOX ONE, XBOX 360,PLAYSTATION
4, PLAYSTATION 3 power cable/brick

Brand new packaged cables

$29

Miscellaneous
Items

Accessories and gaming paraphernalia including, cables, mice, keyboards, figurines, limited edition items, hard drives, remote controls, adapters, docks, disc cleaners, memory cards.

$9-$124

Opal Café: Serves hot food and drinks to customers. Food includes hot chips/wedges, pizza, pies, sausage/sausage rolls, finger foods, burgers, chips, deserts and lollies. Drinks include bottles, cans, smoothies, milkshakes, coffee/tea and hot chocolate.
Market position: The products and services we offer fall into the competitive category. as our competitors higher end prices will cause potential customers to shop elsewhere, alternately at
‘DIMENSION’. It is the place with the total immersive gaming experience all in one place.
Unique selling position: We believe that our products will succeed in the market due to the lack of businesses that provide the quality, affordability and experience of our products and services.
Anticipated demand: When the business is first established, we plan to serve at least an average of
65 people per day with about 61 people spending an average of $40 and 4 people spending on average
$355 on larger items like consoles, within the first 6 months with differing on weekends.
As the business becomes more familiar and we reach a developed customer base after about 6 months, we estimate an average of 80 customers daily for the following 6 months with an average of 75 customers spending an average of $42 and 5 people on average spending $355 on larger items.
During the school holidays and Friday/Saturday nights we expect an increase in sales and customers to
90 per day with 83 people on average spending about $42 and about 6 people spending $355 for larger items. Pricing strategy: The pricing strategy for ‘DIMENSION’ has chosen average prices that are affordable and encourage customers to continue shopping for these products and services. We believe that our initial customer base will be satisfied with the quality and price of our products and services and this will help the business to maintain service and encourage word of mouth.
Value to customer: From a recent survey, we have sourced that 8 out of 10 people would consider coming to ‘DIMENSION’ and would return if they were happy with the products and services. While it is a luxury, it is an affordable luxury.
Growth potential: We believe that from the first three months onwards until 12-18 months of
‘DIMENSION’ opening, the growth percentage will increase by 15%-20%. This is due to the small amount of clientele as the store opens which will hopefully grow as the stores pricing and strategies change. The redevelopment of Newcastle will help drive growth aswell as an increasing population, opening of universities and future development. Also, the video game market is a growing market meaning that more people are becoming interested in buying and playing them.

Innovation

Research & development (R&D)/innovation activities
We have to be aware of any changes in gaming technology and implement that into the business.
Monthly meetings will be held as indicated in training programs. We will use customer surveys and suggestion boxes to modify our service based on their feedback.
Intellectual property strategy:
To make sure that every game purchased is legally obtained with appropriate licences. Any new games developed by the employee shall belong to the business and be patented unless explicitly set out in the employment contract.
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DIMENSION Business Plan 2014

Insurance
Workers compensation:
GIO-$1.50 of annual premium for each $100 of payroll
Public liability insurance:
Bishop risks solutions-$855 per annum, $71.25 per month
Professional indemnity:
Not applicable to this business.
Product liability:
Allianz-$997 per annum, $83.08 per month
Business assets:
AAMI-$6005, $500.42 per month
Business revenue:
AAMI-$3998 per annum, $333.17 per month

Risk management
Risk

Likelihood

Impact

Strategy

Business having a negative cash flow/ not breaking even within the first 6 months
Business suffers fire, flood or vandalism likely

high

Highly unlikely high

Change in marketing and pricing strategies, implement strategies when short on cash
Insurance as impact is high, a risk transfer strategy

Multiple employees becoming unavailable due to sickness, injury or a miscellaneous event at the same time

unlikely

minimum

Having set organised work shifts so if an event occurs there is notice and someone is able to cover the shifts

Arcade machines are damaged or broken likely

low

Have out of order signs, have backup machines if necessary

Legal considerations
.employment and workplace regulations-legal obligations; paying correct wages, ensuring a safe work environment
-staff health and safety; Workplace health and safety (WHS)
-taxation and superannuation
-insurance; workers compensation
.Trade practices Act and Fair trading Act standards
.equal opportunity and anti-discrimination legislation
.Tax-must comply with Australian taxation office (ATO) requirements including state business taxes and GST
.Media classification act-ensure appropriate classification of games
.see licenses and permits

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DIMENSION Business Plan 2014

Operations
Production process
For the gamezone, we plan to purchase our products from ‘Gamewhizz’ wholesalers. It is here that we will make orders on games, consoles and miscellaneous items in bulk and by demand. This will then be delivered by the company to the store. At the store, customers can choose from a large and diverse selection of games, consoles and accessories from all the leading brands in the business. They can also trade in older games or consoles to gain store credit, these items will be sold as PRE-OWNED. They can test out the latest consoles and games before they purchase, using in store consoles set up in the centre of the gamezone.
For the arcade, customers will approach the ticket desk and be greeted by our friendly staff. Upon this, the customer will communicate to the staff whether they would like to purchase unlimited session swipe cards or prepaid swipe cards, and tell them how many they wish to buy. After this each customer will be presented with a swipe card that they can use to activate and play the machines. The diverse selection of arcade machines will deliver a complete immersive gaming experience for all customers to enjoy. Depending on the scores or achievements attained by the customer, the machine will dispense tickets which can be redeemed at the shop for prizes corresponding with a number of tickets. The more tickets the customer has, the greater the prize they can receive. These can be redeemed during or after they have finished their session. If the customer has chosen to purchase a prepaid swipe card, the prices for each game will be displayed on the machine. The arcade machines will be grouped together in different genres of games including racing games, action games, adventure games, virtual reality games, shooter games, arcade games, skill testers and so on.
The DIMENSION experience will be ever changing, growing to stay abreast of entertainment trends.
Presented with an up-market fit out, a bright, colourful and cosy ambiance will be created for family entertainment. Customers get to win fabulous prizes from the extensive range of unique products from its prize counter. Equipped with the latest and classic games, DIMENSION will offer its customers a truly fun-filled experience. The arcade will be visually designed to match different gaming themes, items and characters, with modern music being played in the background and displayed on screens throughout the arcade.
If a party room has been booked, the customers will be shown to the room and handed menus from the downstairs cafe to choose and purchase a selection of food and drinks from. They will be shown how to use the room’s jukebox and handed their swipe cards. When the food has been prepared it will be served by café staff to the tables in the party room. If a cake has been ordered, arcade staff will bring it up when desired.
Suppliers
The suppliers for the gamezone are ‘Gamewhizz’ wholesalers who supply all of the products sold in the gamezone. For the arcade, the machines were supplied by ‘ArcadeArena’ and when required an employee from that company will fulfil repairs or general maintenance as required. Also the customers supply Pre-owned games and consoles. Continual business with these suppliers, paying our bills on time and not switching suppliers should allow us to maintain a good relationship with them.
Plant and equipment
Equipment

Purchase date

Purchase price

Running cost (per month) Phones X2

1/7/14

$99

$83

Computers with software X3

13/7/14

$2,248

$24.10

Cash registers X2

5/7/14

$985

$15.25

Modem (internet)

1/7/14

$59

$49

TV/monitors X11

14/7/14

$4,399

$63.25

Printer

13/7/14

$129

$18.20

Fax machine

16/7/14

$85

$4.75

QR/barcode scanners X3

17/7/14

$597

$5.15

Disc cleaner

9/7/14

$395

$18.45

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Receipt printer X2

13/7/14

$476

$16.05

Arcade machines/games X30

19/7/14

$104,025

$227.55

Chairs/stools X55

17/7/14

$855

$0

Ticket prizes

5/7/14

$1,250

$416.60

Tables X4

16/7/14

$196

$0

Jukebox with software X2

16/7/14

$1,395

$59.70

Test consoles X6

15/7/14

$2,238

$34

Vending machines X2

14/7/14

Free

$10.75

Display boxes/racks

12/7/14

$200

$0

Total

$114,571

$1,045.80

NOTE: The business will already be fitted with appropriate alarm and security camera system.
Inventory
Inventory item
Unit price
Quantity in
Total cost stock See attached inventory items on back of business plan
Technology (Software): The store will require several pieces of technology including up to date computers with specialised retailing software called ‘Gamedev’. This software is specially designed for game retailers and is required for the 2 computers in the gamezone. It helps staff keep track of stock easier and has separate operations to incorporate the pre-owned games and console sales/purchase.
This software is available for purchase off the shelf for $249 off of the developers’ website. The arcade computer requires ‘Arcadia’ software to manage the swipe card system. This software is purpose built and cost $349. The Jukebox will require music video software licensed from a legal company, this will allow customers to choose from a wide range of music to play and display on the party room TV. This will cost $296.
We will set up a free website listing all of our gamezone products, arcade prices, party room booking and general information. No online purchases will be available at this time.
Trading hours:
Monday-9am til 9:30pm-- the gamezone 9am til 5:30pm
Tuesday-9am til 9:30pm-- the gamezone 9am til 5:30pm
Wednesday-9am til 9:30pm-- the gamezone 9am til 5:30pm
Thursday-9am til 10:30pm-- the gamezone 9am til 7:30pm
Friday-9am til 10:30pm-- the gamezone 9am til 6:30pm
Saturday-9am til 10:30pm-- the gamezone 9am til 6:30pm
Sunday-10am til 9:30pm-- the gamezone 10am til 5:30pm
School holidays-arcade closes at 11pm everyday
Public holidays-closed
Our general peak trading times would be around lunch time when customers are walking past to go to nearby cafés and restaurants while out shopping. The arcade would again have a peak time from late afternoon until close time with people going out for the night to watch a movie or hang out with friends. Thursday nights would also see a peak in sales with ‘late night shopping’ on most peoples pay day. School holidays and Friday/Saturday nights would be our highest profitable times. With a large amount of people in our customer range being of school age, these times would see a spike in the amount of customers in this age group. People during these times are usually out and about spending more money on leisure and entertainment. Our store accommodates these changes by extending our trading hours during these peak times.

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Communication channels:
Phone: [phone]
Fax: [phone]
Email: [e-mail]
Website: www.DIMENSION.com.au
Facebook page: DIMENSION GAMING Australia
Address: 627 Hunter Street, Newcastle, NSW 2300
Payment types accepted:
Cash, credit, cheque, gift cards and PayPal
Credit policy: We don’t intend on creating a credit policy that allows us to hold products over 24 hours. The most efficient way personally for the business is for customers to pay on the day to receive desired product.
Warranties & refunds: Refunds in our store are accepted within 7 days after purchase if the customer has proof of purchase and the product has not been opened, tampered with or damaged. We also give exchanges within 7 days. No product will be accepted after the 7 days for a refund or exchange. There are standards under the Trade Practices ACT and Fair-trading ACT which entitle customers to refund, repair or replacement if a product is faulty or doesn’t meet certain standards. For games there is a 90 day warranty where if there is a fault, the customer will be given a refund or replacement. For new consoles and accessories, generally there is a 12 month standard warranty where customers will get a replacement or the product repaired depending on parameters set out by the manufacturer. For second hand games and consoles, the store takes responsibility for warranty and will give a replacement or refund within 30 days.
Quality control: Standard procedure posters and reminders are to be put in place to ensure consistent control and order in the workplace. There will be safety inspections and management carried out by managers aswell as equipment and product testing as set out in job description. Managers will constantly set out the expectations from staff and customer surveys and suggestion boxes will be implemented to ensure customer satisfaction. Changes will be made based on this feedback. We make sure that every product we purchase complies with safety standards, if it is found that a product does not, it will be recalled.
Memberships and affiliations: DIMENSION has no memberships and is affiliated with Opal café who has rented out the downstairs café.

Sustainability plan
Environmental/resource impacts
In terms of the products supplied by DIMENSION, there is a minimal impact on the environment.
Although products are ordered in bulk and involves a lot of excess packaging. In terms of the arcade, there is a lot of equipment that uses large amounts of electricity from being run all day.
Community impact and engagement
There is generally nothing that the community could do to minimise the use of excess or electricity use.
Risks/constraints
The electricity consumption will increase the cost of electricity to the business.
Strategies
In order to minimise impact on the environment, DIMENSION will ensure correct recycling of excess packaging. They will track electricity usage, installing energy efficient equipment and lighting; and switch off any unnecessary equipment that doesn’t need to be on.
Action plan
Sustainability milestone

Target

Target date

Reduce the amount of excess cardboard, plastic and paper waste

20% reduction

Reduce power consumption

10% reduction

6 months into operation 6 months into operation Page 14

DIMENSION Business Plan 2014

The Market
Market research: With analysis of the Newcastle area, we have discovered that there aren’t really any stores like DIMENSION, therefore establishing a customer base and keeping the business in high demand. There was also a survey posted to everyone within a 5km radius detailing what the business is and what it would incorporate. It also had questions down the bottom asking potential customers their opinions on certain aspects of the business.
Based on feedback we have implemented changes to the business.

Dear potential customers,
We have some exciting news! There could soon be a brand new entertainment experience coming to your area. We are conducting a survey to see if people would be interested in an all in one gaming store opening in their local area. DIMENSION would incorporate an arcade, a game retail section and a café.
The DIMENSION Arcade experience will be ever changing, growing to stay abreast of entertainment trends. It will be presented with an up-market fit out and a bright, colourful and cosy ambiance will be created for family entertainment. Throughout the duration, customers will obtain tickets from the machines according to scores achieved. Customers can then redeem these tickets to win fabulous prizes from the extensive range of unique products from its prize counter. Equipped with about 30 of the latest and classic games, DIMENSION will offer its customers a truly fun-filled immersive gaming experience. These machines will cater for the hard core gamer to the leisure gamers, with a diverse selection of games to choose from. This system will work on a pay to play system using swipe cards with designated time periods for purchase or prepaid sessions. Customers can put a certain amount of money on their card or purchase an unlimited session that will go from 30 minutes to a 5 hour session. There will be 2 party rooms that can be rented for up to 20 people; these have to be booked in advance. There will be storage, tables and chairs, table decoration, menus from the café, jukebox to allow customers to pick music and display on the TV, and plates/cups etc. Cakes can also be ordered that can be specifically made to what the customer desires.
The gamezone will sell all of the latest games produced for PC, XBOX, PLAYSTATION and NINTENDO consoles. It will also sell pre-owned games that customers will trade in to purchase new games at a discounted price. It will sell new and pre-owned consoles aswell as accessories and gaming paraphernalia. The layout will show easy distinguishable sections for games and items related to each console. The back wall will feature consoles with interchangeable games to allow customers to test new games or consoles before they purchase.
The Opal café will serve hot food and drinks to customers. Food will include hot chips/wedges, pizza, pies, sausage/sausage rolls, finger foods, burgers, chips, deserts and lollies. Drinks will include bottles, cans, smoothies, milkshakes, coffee/tea and hot chocolate. Would you be interested in a business such as DIMENSION opening up in your local area?
If you were satisfied with the products/services at DIMENSION, how many times a month do you think you would visit?

What sort of arcade machines and games would you like to see?

Would you consider booking a party at DIMENSION?
In the arcade, how much would you be willing to pay for a:
30 minute unlimited session?

1 hour unlimited session?

2 hour unlimited session?

3 hour unlimited session?

4 hour unlimited session?

5 hour unlimited session?

Page 15

DIMENSION Business Plan 2014

Market targets
When the business is first established, we plan to serve at least an average of 65 people per day with about 61 people spending an average of $40 and 4 people spending on average $355 on larger items like consoles, within the first 6 months with differing on weekends.
As the business becomes more familiar and we reach a developed customer base after about 6 months, we estimate an average of 80 customers daily for the following 6 months with an average of 75 customers spending an average of $42 and 5 people on average spending $355 on larger items.
During the school holidays and Friday/Saturday nights we expect an increase in sales and customers to
90 per day with 83 people on average spending about $42 and about 6 people spending $355 for larger items. This is to be comprised of about 60% of sales coming from the gamezone with 15 in 16 people on average purchasing 1-2 games and about 1 in 16 people purchasing a new or used console. The other
40% is coming from the arcade with most people on average purchasing either 1 hour or 2 hour sessions or hiring the party room at least once every 2 days.
Our target is that from the first three months onwards until 6 months of ‘DIMENSION’ opening, the growth percentage will increase by 15%-20% and we will have monthly earnings targets to keep track of this.

Environmental/industry analysis
The redevelopment of Newcastle will help drive growth aswell as an increasing population, opening of universities and future development. With increasing housing estate and small to medium business increase in the local area, we are confident that Newcastle is building economic stability. This ensures potential growth, population and opportunity for employers and business owners.
With 59% of Australians playing video games, the games and arcade industry has a remarkable upward trajectory. Arcade and video games are a form of entertainment enjoyed by a diverse, worldwide consumer base that demonstrates immense energy and enthusiasm for games. With an exciting new generation of hardware, outstanding software, and unmatched creativity, technology, and content, our industry will continue to thrive in the years ahead.
No other sector has experienced the same explosive growth as the interactive entertainment and video game industry. Creative publishers and talented workforces continue to accelerate advancement and pioneer new products that push boundaries and unlock entertainment experiences. These innovations in turn drive enhanced player connectivity, fuel demand for products, and encourage the progression of an expanding and diversified consumer base.
After we enter the market, the demand for such a business will increase and lead to growth in the industry. .The average Australian household owns at least one dedicated console or PC being an average of 2 gamers in each of these households.
.51% of Australian households own a dedicated game console, and those that do own an average of 2.

Page 16

DIMENSION Business Plan 2014

Your customers
Customer demographics
Our target customers range from children to the elderly. Generally younger people will be consuming our products and services and occasionally parents/grandparents will be purchasing it for them. Men will generally be targeted more but as more females start purchasing and playing games, specifically designed promotions will be aimed at women.

under 25
25-50
50-75
75+

Average age of customer groups Key customers
We have 2 key customer groups. 1st is children to young adults (8-25), being the largest consumer of our products and services. 2nd is parents/grandparents who will be purchasing these products and services for their children/grandchildren. Advertising and promotions will be targeted at these key customers through mediums that are used by them. E.g. online and social media advertisements will be used to target children to young adults and newspaper promotions and yellow pages ads will be utilised for parents and grandparents.
Customer management
We have a member’s card available, so for whoever signs up to become a member, they will receive their member’s card in the mail. This will allow customers to set up their own profile and be notified when certain games are being released, read related news and information and keep track of their purchase/trade history. They will receive promotions via email and each time they purchase something from our store, their member’s card will be scanned and they will be given a 5% discount on purchases over $50. It will also let customers ‘jump the queue’ in game and limited edition releases. There will also be a suggestion box that customers can use to give feedback on their experience.

Page 17

DIMENSION Business Plan 2014

S.W.O.T. analysis
Strengths

Weaknesses

-Well set out business plan
-Keen/enthusiastic owners
-Experienced owners for an arcade
-Limited competition in the Newcastle area
-well established business name
-excellent customer service
-quality service provided to customers
-All in one experience found nowhere else
-great location, close, central
-affiliated with Opal café
-staff, professional, trained

-unexperienced in game retailing
-not a big business, only one outlet creating limited customers and profits. -doesn’t have a lot of staff employed so if sickness, injury or external factors stop staff from being able to work, we only have a few staff to replace them.
-large start-up cost-will require loan

Opportunities

Threats

-new markets
-growing demand
-Market expansion through network, 3D and new technologies
-continued expansion for online sales
-ability to develop additional stores
-gaining more members
-more customers
-increased market share

-Other businesses setting up nearby in competition
-unexpected problems
-price changes
-economy
-increase in labour costs
-tax changes
-changes in regulations can affect the business
-insurance costs are continually increasing
-high loan rates

Page 18

DIMENSION Business Plan 2014

Your competitors
Because there really aren’t any businesses in surrounding areas that offer what our business does, there is no direct competition. So the nearest competition will be stand-alone Game retail stores and arcades. The way we plan to improve what we offer is to expand our store and have more variety on brands to sell of each product. Also, installing more arcade machines and occasionally swapping out machines to offer a different experience. When the business is first established we won’t really have much market share but as the business becomes more familiar and we develop a customer base, we aim to offer a better experience than our competitors, allowing us to gain more market share. Competitor details
Competitor

Establishe d date

Size

Market share (%)

Value to customers Strengths

Weaknesses

Timezone
Charlestown

7/9/1978

9 staff

15%

Location, price, atmosphere .Well established business name
.skilled staff
.great range of arcade machines

.not a big selection of prizes

Intencity Glendale

8/9/1995

6 staff

12%

variety of product, price .customer service
.skilled staff
.great prizes

EB Games
Merewether

JB-HI-FI
Newcastle

Pinball & pizza
Newcastle

27/2/1977

21/2/1974

17/6/2006

12 staff

19 staff

5 staff

36%

32%

5%

Convenience,
Location, service, products, ‘Try before you buy’

.quality products

Service, quality products, price

.skilled staff

.customer service

.great customer service

.not a lot of advertising exposure .no pre-owned games section .some items can be expensive .very small shop

.unique arcade machines
.customer service
.quality experience

Page 19

.not a large selection of arcade games

.diverse range of games

.large array of game related items price, product, unique experience

.not a large store

.small area for parking
.limited exposure

DIMENSION Business Plan 2014

Advertising & sales
Advertising and promotional strategy
When the business is first established, there will be a high priority on promoting the business and getting the name out into the community.
Lots of advertisements will be organised within the first 6 months including targeting key customers through mediums that they often use.
Planned promotion
/advertising type

Expected business improvement

Cost ($)

Target date

Social media

A social media presence allows us to interact directly with a large range of customers across a wide range of platforms and devices. In turn, our brand can be exposed to the public anywhere and anytime. Having a social media presence will also help us to connect with one of our key customer groups, children to young adults.
It uses paid ads to put our business in front of potential customers who are actively searching for a business just like ours on Google or Bing. This will hopefully encourage customers to visit us over our competitors. It will give us a large exposure to everyone and more specifically towards parents who are looking for our products/services for their children.

$594 (per month) 3/8/14

Online

$250 (per month) 4/8/14

Newspaper

This will promote our business name through local newspapers, hopefully leading to new customers. It will also target grandparents reading the newspaper to purchase these products/services for their grandchildren.

$40 (per month) 4/8/14

Yellow pages

Will include a 4x4 advertisement clearly stating contact, location and website details. This will further expose our business through the wider community.

$200

6/9/14

Members emails

It will include our new promotions or deals which will encourage members to come purchase our products/services and hopefully tell others about our business and sales.

$0

5/8/14

Window advertising

We will have our products and services aswell as sales advertised in our windows on big signs to encourage customers to come inside.

$25

5/8/14

Sales and marketing objectives
Nathan Matthews is the marketing manager working in collaboration with Dylan-Olsen-Obrien as owners of the business. We will decide our sales and marketing objectives using the planned promotions and advertising above, utilising different mediums to reach our customers. We hope that this high priority promoting within the first 6 months will be worth the expenditure, bringing in a vast array of potential customers.

Page 20

DIMENSION Business Plan 2014

Unique selling position
At DIMENSION, we have an advantage over our competitors because we offer a unique experience that cannot be found anywhere else in the local area, offering a total gaming experience with an arcade, games retailing store and café. The atmosphere at DIMENSION will really set us apart from the rest with an up-market fit out, a bright, colourful and cosy ambiance and a gaming related theme throughout. It will feature a mix of innovative and unique arcade machines and also classic arcade games, something of which our competitors do not. We will also succeed over other businesses because of their inability to revitalise the experience they offer, with new arcade machines and a redesign of their overall theme. Our products and services will succeed in the market where our competitors fail because of these reasons and because we offer a lot more promotions and sales in comparison.
Sales and distribution channels
Channel
Products/service
Percentage of sales (%) type s
Shopfront

We will sell all of our products within the store

100% come from within the store

Advantages

Disadvantages

Customers can collect products directly and experience the atmosphere of the arcade and café in store.

Due to there only being a single store, it reduces the number of potential customers and therefore profits. If the business proves to be successful, we will contemplate opening other outlets or expanding to offer our game products online.

The Future
Vision statement

“Together, we hold a passion for gaming, a commitment to our industry and a guarantee to supply a quality experience and affordable products and services. We will uphold a disciplined business perspective to continuously drive value with customers, vendors and employees.”

Mission statement

Everything that we offer our customers, from our expansive range of gaming related products, our value added pre-owned products and our complete immersive entertainment experience in the arcade, is geared to deliver customer satisfaction. We endeavour to operate a premier entertainment destination and provide the most exciting and unique experience to our customers and offer competitive prices, great customer service and quality products. We will advertise our products and services regularly, offering sales and lowest price guarantee.

Goals/objectives

Our short term goals for the business are to become a well-recognised store within the community in the first few months of establishment and to build on our member’s base by achieving customer satisfaction.
Our long term goals, if the business proves to be successful include:
.running a profitable operation by increasing revenue and limiting expenses. This will allow us to grow and expand our store, giving more variety of products and entertainment solutions, contributing to a better experience.
.expand our website to sell gamezone products online and ship them directly to customers, attracting customers by offering a $1000 giveaway.
.design an app to show the latest news, game arrivals, deals and online shopping. It will also show the gamers arcade history, high scores and achievements in their profile.
.Later down the track we would look at opening other stores to increase the amount of customers and therefore profits.
We intend to meet these goals by sufficiently advertising our quality products and services to obtain more sales profits.

Page 21

DIMENSION Business Plan 2014

Action plan
Please note: This table does not include sustainability milestones as they are listed in the sustainability section above.
Milestone
Date of expected
Person responsible completion Developing a customer base

3 months

Running a profitable operation

6 months

Remaining operational after 6 months

6 months

Obtaining 10,000 members

7 months

Expanding to online sales

8 months

Opening a second store

5 years

The owners Nathan Matthews and Dylan-Olsen-Obrien and staff. The owners Nathan Matthews and Dylan-Olsen-Obrien and staff. The owners Nathan Matthews and Dylan-Olsen-Obrien and staff The owners Nathan Matthews and Dylan-Olsen-Obrien and staff. The owners Nathan Matthews and Dylan-Olsen-Obrien
The owners Nathan Matthews and Dylan-Olsen-Obrien

The Finances
Key objectives and financial review
Finance required
The start-up cost calculates to $1,617,702 over the year but as we intend to establish the business over 6 months, the estimation will be $596,600.50.To start the business we intend to borrow $50,000 and put in $275,000 each. OE=$550,000 + Loan=50,000 =$600,000

Financial objectives
In the first year of operation, DIMENSION intends to earn a net profit of $60,473 in the first year.
Attain a 40% net profit increase following the 1st year.

Assumptions

The financial tables on the subsequent pages are based on the assumptions listed below:



That there will be a constant supply of customers as product will be adapted to meet the current demand, season etc.
Loan rates

Page 22

DIMENSION Business Plan 2014

Start-up costs for 2015
Start-UP COSTS
Registrations
Business name
Licences
Permits
Domain names
Trade marks/designs/patents
Vehicle registration
More…
Membership fees
Accountant fees
Solicitor fees
Rental lease cost (Rent advance/deposit)
Utility connections & bonds (Electricity, gas, water)
Phone connection
Internet connection
Computer software
Training
Wages
Stock/raw materials
Insurance
Building & contents
Vehicle
Public liability
Professional indemnity
Product liability
Workers compensation
Business assets
Business revenue
Printing
Stationary & office supplies
Marketing & advertising
More…
Total start-up costs

Cost ($)
$133
$0
$0
$125
$195
$0
$500
$3,995
$0
$0
$7,076
$996
$588
$894
$500
$472,560
$333,508
$1,195
$0
$855
$0
$997
$7,088
$6,005
$3,998
$250
$780
$10,833

Equipment/Capital costs
Business purchase price
Franchise fees
Start-up capital
Plant & equipment
Phones X2
Computers with software X3
Cash registers X2
Modem (internet)
TV/monitors X11
Printer
Fax machine
QR/barcode scanners X3
Disc cleaner
Receipt printer X2
Arcade machines/games X30
Chairs/stools X55
Ticket prizes
Tables X4
Jukebox with software X2
Test consoles X6
Vending machines X2
Display boxes/racks

$853,071 Total equipment/capital costs

Page 23

Costs ($)
$645,000
$0

$99
$2,248
$985
$59
$4,399
$129
$85
$597
$395
$476
$104,025
$855
$1,250
$196
$1,395
$2,238
$0
$200

$764,631

DIMENSION Business Plan 2014

Balance sheet forecast

BALANCE SHEET FORECAST

Current assets
Cash
Petty cash
Inventory
Pre-paid expenses
Fixed assets
Leasehold
Property & land
Renovations/improvements
Furniture & fitout
Vehicles
Arcade machines x30
Computer equipment
More…
Total assets
Current/short-term liabilities
Credit cards payable
Accounts payable
Interest payable
Accrued wages
Income tax
More…
Long-term liabilities
Loans
More…
Total liabilities
NET ASSETS

2015/16

2016/17

2017/18

$4,000
$750
$333,508
$0

$750
$337,908
$0

$750
$342,107
$0

$0
$645,000
$63,000
$1,055
$0
$104,025
$2,248
$12,303

$0
$645,000
$63,000
$1,055
$0
$104,025
$2,248
$12,303

$0
$645,000
$63,000
$1,055
$0
$104,025
$2,248
$12,303

$1,165,889

$1,166,289

$1,170,488

$0
$0
$0
$472,560
$32,569

$0

$0

$75,000

$50,000

$25,000

$580,129

$50,000

$25,000

$585,760

$1,116,289

$1,145,488

Page 24

DIMENSION Business Plan 2014

Profit and loss forecast
Sales
less cost of goods sold café rent

$1,607,420
$941,270
$10,800

$1,622,960
$941,270
$10,800

$1,628,768
$941,270
$10,800

Gross profit/net sales

$676,950

$692,490

$698,298

Expenses
Accountant fees
Advertising & marketing
Bank fees & charges
Bank interest
Credit card fees
Utilities (electricity, gas, water)
Telephone
Lease/loan payments
Rent & rates
Motor vehicle expenses
Repairs & maintenance
Stationery & printing
Insurance
Superannuation
Income tax
Wages (including PAYG)
More…

$3,995
$10,833
$995
$0
$0
$7,076
$996
$25,000
$0
$0
$1,978
$1,030
$20,138
$19,200
$32,569
$472,560
$9,307

$3,995
$10,833
$1,005
$0
$0
$7,076
$996
$25,000
$0
$0
$1,978
$1,030
$20,138
$19,200
$32,569
$472,560
$9,307

$3,995
$10,833
$1,015
$0
$0
$7,076
$996
$25,000
$0
$0
$1,978
$1,030
$20,138
$19,200
$32,569
$472,560
$9,307

Total expenses

$605,677

$605,677

$605,677

$71,273

$86,813

$92,621

NET PROFIT

Page 25

DIMENSION Business Plan 2014

Expected cash flow
OPENING BALANCE
Cash incoming
Sales
Asset sales
Debtor receipts
Other income
Total incoming
Cash outgoing
Purchases (Stock etc)
Accountant fees
Solicitor fees
Advertising & marketing
Bank fees & charges
Interest paid
Credit card fees

$4,000

-$20,105

-$39,210

-$53,315

-$62,420

-$66,525

-$60,630

-$44,735

-$23,840

-$12,945

$2,950

$38,845

$103,951
$0
$0
$900

$108,951
$0
$0
$900

$113,951
$0
$0
$900

$118,951
$0
$0
$900

$123,951
$0
$0
$900

$133,951
$0
$0
$900

$143,951
$0
$0
$900

$148,951
$0
$0
$900

$138,951
$0
$0
$900

$143,951
$0
$0
$900

$163,951
$0
$0
$900

$160,484
$0
$0
$900

$104,851

$109,851

$114,851

$119,851

$124,851

$134,851

$144,851

$149,851

$139,851

$144,851

$164,851

$161,384

$78,440
$333
$0
$903
$83
$0
$0

$78,440
$333
$0

$0

$78,440
$333
$0
$903
$83
$0
$0

$78,440
$333
$0
$903
$83
$0
$0

$78,440
$333
$0
$903
$83
$0
$0

$78,440
$333
$0
$903
$83
$0
$0

$78,440
$333
$0
$903
$83
$0
$0

$78,440
$333
$0
$903
$83
$0
$0

$78,440
$333
$0
$903
$83
$0
$0

$78,440
$333
$0
$903
$83
$0
$0

$78,440
$333
$0
$903
$83
$0
$0

$78,440
$333
$0
$903
$83
$0
$0

$903
$83
$0

Utilities (electricity, gas, water)
Telephone
Lease/loan payments
Rent & rates
Motor vehicle expenses
Repairs & maintenance
Stationery & printing
Membership & affiliation fees
Licensing
Insurance
Superannuation
Income tax
Wages (including PAYG)
More…
Total outgoing

$590
$83
$2,083
$0
$0
$165
$86
$42
$0
$1,678
$1,600
$2,714
$39,380
$776

$590
$83
$2,083
$0
$0
$165
$86
$42
$0
$1,678
$1,600
$2,714
$39,380
$776

$590
$83
$2,083
$0
$0
$165
$86
$42
$0
$1,678
$1,600
$2,714
$39,380
$776

$590
$83
$2,083
$0
$0
$165
$86
$42
$0
$1,678
$1,600
$2,714
$39,380
$776

$590
$83
$2,083
$0
$0
$165
$86
$42
$0
$1,678
$1,600
$2,714
$39,380
$776

$590
$83
$2,083
$0
$0
$165
$86
$42
$0
$1,678
$1,600
$2,714
$39,380
$776

$590
$83
$2,083
$0
$0
$165
$86
$42
$0
$1,678
$1,600
$2,714
$39,380
$776

$590
$83
$2,083
$0
$0
$165
$86
$42
$0
$1,678
$1,600
$2,714
$39,380
$776

$590
$83
$2,083
$0
$0
$165
$86
$42
$0
$1,678
$1,600
$2,714
$39,380
$776

$590
$83
$2,083
$0
$0
$165
$86
$42
$0
$1,678
$1,600
$2,714
$39,380
$776

$590
$83
$2,083
$0
$0
$165
$86
$42
$0
$1,678
$1,600
$2,714
$39,380
$776

$590
$83
$2,083
$0
$0
$165
$86
$42
$0
$1,678
$1,600
$2,714
$39,380
$776

$128,956

$128,956

$128,956

$128,956

$128,956

$128,956

$128,956

$128,956

$128,956

$128,956

$128,956

$128,956

Monthly cash balance
CLOSING BALANCE

-$24,105
-$20,105

-$19,105
-$39,210

-$14,105
-$53,315

-$9,105
-$62,420

-$4,105
-$66,525

$5,895
-$60,630

$15,895
-$44,735

$20,895
-$23,840

$10,895
-$12,945

$15,895
$2,950

$35,895
$38,845

$32,428
$71,273

Page 26

DIMENSION Business Plan 2014

Break-even analysis
BREAK-EVEN CALCULATOR

Timeframe (e.g. monthly/yearly)
Average price of each product/service sold
Average cost of each product/service to make/deliver
Fixed costs for the month/year
Percentage of price that is profit
Total sales needed to break-even
Number of units sold needed to break-even

#DIV/0!
#DIV/0!
#DIV/0!

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DIMENSION Business Plan 2014

Critical IssuesCorrect use of critical issues in a business plan can determine whether a business is successful or will fail.

Importance of a business plan

Businesses both large and small have a high chance of failure because their owners and managers have not planned a correct or sufficient business plan. A detailed plan creates a positive chance that the business will succeed. As owners of ‘DIMENSION’, we believe that our in depth planning including all aspects of the business will increase our chance of survival in the market.

Management

With correct management, both owners and employees of a business can thrive. Recent surveys have shown the reason with the highest percentage (60%) for business failure is lack of management experience, skill and ability. With both of the owners acquired knowledge, skill and understanding we believe this is what will ensure our success as a business.

Identifying and sustaining competitive advantage

Identifying and sustaining a competitive advantage in any business will contribute to that business success rate. In terms of ‘DIMENSION’ we believe that our competitive advantage is our quality and unique experience when challenging competitive stores. We hope this continues to make us a rival and competitor in the market into the future.

Avoiding over extension of finance and other resources

Obviously, finance is one main factor that contributes to the initial development of the business. One can understand that over extending finance and other resources is a huge contributor to the failure of a business. As the owners we have decided to use minimal finances as often as possible in order to save money for more important purposes.

Using technology

Technology changes frequently and influences the business strongly, it can help a business grow and develop. Therefore ignorance of changing technology can lead to severe unpopularity with customers. At ‘DIMENSION’, technology is at the forefront of everyday business and is very important. We intend to keep up with changing technology by extending the business to an online store, designing our own App and implementing these new technologies in our products and services. I.e. new arcade machines, games, consoles and accessories.

Trend analysis

The business has a budget in which they use to monitor cash flow. As a business we intend to observe and take corrective action to the trends displaying relating to sales and profit.

Economic conditions

A trade cycle is also called an economic cycle. It can be used to try and diversify the subject or minimalize costs or fluctuations in the trade cycle. The business has little control over these external factors.
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DIMENSION Business Plan 2014
Inventory Items: orders are placed Weekly

ITEM
NEW-XBOX ONE Games

PURCHASE
PRICE

IN STOCK

TOTAL COST

SALE
PRICE

$47.20

20 of each game

$944

$59

$55.20

20 of each game

$1104

$69

$63.20

20 of each game

$1264

$79

$47.20

20 of each game

$944

$59

$55.20

20 of each game

$1104

$69

$63.20

20 of each game

$1264

$79

$31.12

20 of each game

$622.40

$39

$39.20

20 of each game

$784

$49

$47.20

20 of each game

$944

$59

$39.20

20 of each game

$784

$49

$47.20

20 of each game

$944

$59

$55.20

20 of each game

$1104

$69

$31.12

20 of each game

$622.40

$39

$39.20

20 of each game

$784

$49

$47.20

20 of each game

$944

$59

$31.12

20 of each game

$622.40

$39

$39.20

20 of each game

$784

$49

$47.20

20 of each game

$944

$59

$23.20

15 of each game

$348

$29

$31.12

15 of each game

$466.80

$39

$39.20

15 of each game

$588

$49

$22.75

However many customers trade in

-

$35

$29.25

However many customers trade in

-

$45

$35.75

However many customers trade in

-

$55

$22.75

However many customers trade in

-

$35

$29.25

However many customers trade in

-

$45

$35.75

However many customers trade in

-

$55

PRE-OWNED-XBOX 360
Games

65% of resale price However many customers trade in

-

$9-$29

PRE-OWNED-PLAYSTATION
3 games

65% of resale price However many customers trade in

-

$9-$29

NEW-PLAYSTATION 4
Games

NEW-DS Games

NEW-Wii U Games

NEW-XBOX 360 Games

NEW-PLAYSTATION 3
Games

NEW-PC Games

PRE-OWNED-XBOX ONE
Games

PRE-OWNED-PLAYSTATION
4 Games

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DIMENSION Business Plan 2014

PRE-OWNED-Wii Games

65% of resale price However many customers trade in

-

$9-$25

PRE-OWNED-PC Games

65% or resale price However many customers trade in

-

$10-$25

PRE-OWNED-3DS Games

65% of resale price However many customers trade in

-

$10-$29

PRE-OWNED-PSVITA Games

65% of resale price However many customers trade in

-

$10-$25

PRE-OWNED-Wii U games

65% of resale price However many customers trade in

-

$19-$39

NEW-XBOX ONE Console bundles $458$598

50GB

$389.30

8

$3114.40

$458

250GB

$431.80

8

$3454.40

$508

500GB

$508.30

8

$4066.40

$598

NEW-PLAYSTATION 4
Console bundles

$448$588

50GB

$380.80

8

$3046.40

$448

250GB

$431.80

8

$3454.40

$508

500GB

$499.80

8

$3998.40

$588

NEW-PLAYSTATION 3
Console bundles

$305$355

20GB

$269.25

8

$2154

$305

100GB

$276.25

8

$2210

$325

250GB

$301.75

8

$2414

$355

NEW-XBOX 360 Console bundles $299$379

20GB

$254.15

8

$2033.20

$299

100GB

$288.15

8

$2305.20

$339

250GB

$322.15

8

$2577.20

$379

NEW-Wii U Console bundles

$359$429

Console and 2 games

$305.15

5

$1525.75

$359

Console, 3 games and accessory pack

$364.65

5

$1828.25

$429

NEW-3DS Console bundles

$225$275

Console and 2 games

$191.25

5

$956.25

$225

Consoles, 2 games and accessory pack

$233.75

5

$1168.75

$275

NEW-PSVITA Console bundles $228$278

Console and 1 game

$193.80

5

$969.00

$228

Console and 2 games

$236.30

5

$1181.50

$278

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DIMENSION Business Plan 2014

PRE-OWNED-XBOX ONE
Console

$308$398

50GB

$215.60

However many customers trade in

-

$308

250GB

$247.10

However many customers trade in

-

$353

500GB

$278.6

However many customers trade in

-

$398

PRE-OWNED-XBOX 360
Console

$119$199

20GB

$83.30

However many customers trade in

-

$119

100GB

$111.30

However many customers trade in

-

$159

250GB

$139.30

However many customers trade in

-

$199

PRE-OWNED-PLAYSTATION
4 Console

$300$395

50GB

$210.00

However many customers trade in

-

$300

250GB

$242.90

However many customers trade in

-

$347

500GB

$276.50

However many customers trade in

-

$395

PRE-OWNED-PLAYSTATION
3 Console

$129$205

20GB

$90.30

However many customers trade in

-

$129

100GB

$116.90

However many customers trade in

-

$167

250GB

$143.50

However many customers trade in

-

$205

PRE-OWNED-Wii U Console

$192.50

However many customers trade in

-

$275

PRE-OWNED-3DS Console

$124.60

However many customers trade in

-

$178

PRE-OWNED-PSVITA
Console

$118.30

However many customers trade in

-

$169

NEW-XBOX ONE controller

$54.40

15

$816

$64

NEW-PLAYSTATION 4 controller $55.25

15

$828.75

$65

NEW-XBOX 360 controller

$33.15

15

$497.25

$39

NEW-PLAYSTATION 3 controller $34.85

15

$522.75

$41

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DIMENSION Business Plan 2014

NEW-XBOX headsets

$29$209

Microsoft headset

$24.65

10

$246.50

$29

Pyrotech headset

$50.15

10

$501.50

$59

Monster headset

$84

8

$672

$105

Razor headset

$177.65

5

$888.25

$209

NEW-PLAYSTATION headsets $29$199

Sony headset

$24.65

10

$246.50

$29

Pyrotech headset

$50.15

10

$501.50

$59

Sound Nation headset

$79.20

8

$633.60

$99

Razor headset

$159.20

5

$796.00

$199

NEW-PLAYSTATION 4 battery pack

$20.40

15

$306.00

$24

NEW-PLAYSTATION 3 battery pack

$12.75

15

$191.25

$15

NEW-XBOX ONE battery pack $21.25

15

$318.75

$25

NEW-XBOX 360 battery pack $16.15

15

$242.25

$19

NEW-Black widow keyboard

$130.79

10

$1307.90

$154

NEW-Razor gaming mouse

$76.50

10

$765.00

$90

NEW-Monster HDMI cable

$41.65

15

$624.75

$49

NEW-XBOX ONE, XBOX
360,PLAYSTATION 4,
PLAYSTATION 3 power cable/brick $24.65

20

$493.00

$29

Miscellaneous items

85% of resale price 10 of each item

-$11000.00

$9-$124

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