Peter DeckersRhahjni Reid

Grade 1218 & 16

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Mission Statement

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• Opportunity • New Age Gaming provides the opportunity for hesitant

gamers who would like to fully preview games and systems before committing to a sale.

• Mission Statement • Our business will strive to provide our customers with a

chance to be completely satisfied with their purchase with unrestricted access to games and the opportunity to socialize with their peers.

Business Profile• Type of Business • Service• Our business allows customers to preview

a range of systems or games before purchase so that they are fully satisfied with the final product• We believe that our customers will be

pleased knowing they can make informed purchases before actually buying the game

• Legal Structure • Partnership• We selected this because we can split the

start up costs and operating responsibilities

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Qualifications

We both own video game systems

We both have taken a Marketing and Entrepreneurship class

20 years of combined game experience

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Consumer Profile• By Location• Avon, CT and surrounding areas

• By Population• Video Game consumers, ages 15 – 25• Console owners

• By Personality/ Behavior• Gamers, enjoy playing video games• Enjoy playing with friends

• By Income• Gamers with discretionary income

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Competitive Advantage

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New AgeGamingGamefly.com GameStopFactors

GoodQuality of Product//Service

Price

Location

Brand/Reputation

Unique Knowledge

Good Excellent

Good Excellent Excellent

No Late Fees

Buy & Trade Immediate Experience

Online Nationwide Avon, CT

Very Good Very Good Excellent

Marketing Plan

MarketingMix

People• Gamers

ages 15-25

Promotion• Excellent

customer service

• Handing out business cards

Product• Encourag

es socialization

• Informed purchases

•

Place• Avon, CT

and surrounding areas

Price • Affordable

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Marketing Plan

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Purchase Retention

• We will provide excellent service

• Comfortable at home Environment

• Storefront sign/Grand Opening

• Handing out business cards

• Host gaming tournaments

• Social/Gaming Networks

• Provide discounts for long term customers

• Gaming tournaments

• Coupon Rebate

Long Term ( 6 months-1 year)

Current & Short Term (1 month-6 months)

Awareness

Create ads on gaming websites and channels

Give special events and days that are customized for individual type of gamers

Hope to form friendships with customers, and also make it a favorite hangout$300.000 $0.00 $32.00

Monthly cost, by phase:

Awareness Purchase Retention

Cost of Materials/Direct Labor Definition of One Unit 30 Minute Game Experience, Accessory

purchase, Coupon RebateCost of Sales Per Unit

Direct Labor(Labor Cost per Hour)

Time (in hours) to make 1 unit

Direct Labor Cost Per Unit

$12.00 5 minutes or .083hr $1.00$10.00 4240 customers/40

hrs.$0.09

Total Direct Labor Per Unit $1.09Material Description Cost/Total Quantity Cost Per Unit ($)Plastic Bag $500/5000 (25% of the

time)$0.05

Headsets $417/52 (25% of the time)

$2.00

Coupon $10/1000 (25% of the time)

$0.01

Total Material Cost Per Unit $2.06Total Other Variable Costs Per Unit $0.00

Cost of Sales Per Unit $3.15 10

Economics of 1 Unit

Definition of One Unit: 30 Minute Game Experience, Accessory purchase, Coupon RebateSelling Price per Unit (Experience, Headset R60@0.25, Coupon R5@0.25)

$26.25

Direct Labor per Unit $1.09

Materials per Unit $2.06

Total COGS per Unit $3.15

Total Other Variable Costs per Unit $0.00

Total Cost of Sales $3.15

Contribution Margin $23.10

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Average Monthly Fixed Costs

Type of Fixed Cost Monthly Cost

Entrepreneurial Stipend $50.00

Insurance ($1M Liability) $150.00

Salaries of Employees $1,080.00

Advertising (Business cards & website) $20.00

Depreciation (Consoles & Accessories) $20.00

Utilities (Internet & Phone, etc.) $100.00

Rent (2300 sq ft. Utilities included): $2,500.00

Total Monthly Fixed Costs $3,920.00

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Time Management Plan

Business , 40

Free time , 59

Work Hours, 24

School Hours, 45

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Business Schedule for a Typical Week (168 hours)

Monthly Sales Projections

0

100

200

300

400

500

600

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Axis

Title

Units Sold

Units sold

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Total Units

4240

Full Capacity

8640

Break Even Units

92

Projected Yearly Income Statement

Selling Price Per Unit $26.25# of Units Sold 4,240Total Sales $111,300.00

Total COGS $13,356.00Other Variable Costs $0.00

Total Variable Costs $0.00Gross Profit $97,944.00

Yearly Fixed Costs $47,040.00Other Costs/Unforeseen $5,000.00

Total Fixed Costs $52,040.00Profit before Taxes $45,904.00Less Estimated Taxes @25% $11,476.00Net Profit $34,428.00

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Return

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…on Sales

…on Investment 192%Annual Net

ProfitStart-Up Inv.

$34,428.00

$17,900.00= $1.92

31%Annual Net

ProfitTotal Sales

$34,428.00

$111,300.00= $0.31

Item Where I will buy this? Cost of Item

Console Inventory Game Evolution (Ebay.com) $2,540.00

Accessory Inventory Lightinthebox.com $1,800.00 Store Supplies Buystorefixtures.com $800.00Store Furniture Buystorefixtures.com $2,800.00

Televisions Alibaba.com $3900.002 laptops Best Buy Already owned

CASH RESERVE covering 3 months of fixed expenses $4,260.00

Estimated TOTAL START-UP INVESTMENT $16,100.00

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Start-up Investment

Hours Needed150

Total Time Investment$1800

Wage$12x =

Total: $17,900.00

Financing Strategy for Total Start-up Investment

Source Amount Debt Equity Gift

Personal Savings $10,000.00 x

Relatives/Friends $7,900.00 x

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Totals: $17,900.00

Business Responsibility PlanPhilanthropic Strategy Plan

We will donate 5% of our net profits to the Children's Cancer Fund of America foundation

Our consumers will be aware of this by the CCFOA logo which will be included on our business cards

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Business & Educational Goals

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Business

Personal

Shor

t Te

rmLo

ng T

erm

• Pay ourselves a higher wage

• To hire two employees by the end of the first year

• Double sales by the end of the second year

• Being a host for MLG tournaments

• Graduate high school amongst the top of the class

• Attend the college of our choice

• Look to further our education by pursuing a master’s degree

• Pursue a career of our choice

Experience Games!

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Thank you for your consideration of