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Do you want to start a Laser Tag business plan?
Do you want to learn how to start a laser tag business? If so, you’re in the right place. Starting a laser tag business can be pretty simple since you don’t need a degree or any kind of expertise. You can start it at a small scale with just a few employees. All you need is a good business plan for laser tag gaming center.
Writing a laser tag business plan can be tricky. A lot of details need to be added in the right way to make an impact on your investors. Therefore, you should take guidance from the laser tag business plan we are providing here. You can also hire business plan makers or read a related document such as business plan for banquet hall to get started. In the following laser tag business plan, we are providing all the details related to Power Tag.
Executive Summary
2.1 The Business
Power Tag will be a laser tag gaming center owned and managed by Tom Hollins. The business will be set in Rhode Island. It will aim to provide entertainment and gaming services to people in and around town as well as tourists.
2.2 Management of Laser Tag Company
For a proper laser tag set up and to start your own laser tag business, you need to make sure that you have everything planned out for your business. You will need to organize all your resources and figure out how to utilize them effectively.
In this laser tag business plan, we will guide you in how to build a laser tag arena. This way, if you want to start your own setup, you will have all the guidelines you need. The best way to organize and plan a startup is to develop a laser tag business plan. You can take help from this document or an artist business plan. This will be necessary as you will need a business plan for bank loan to start your company.
Below, we are providing all the relevant details of the Power Tag laser tag center.
2.3 Customers of Laser Tag Company
Our customers will mostly be children interested in playing these games regularly or as a part of parties. However, the main customer groups of the gaming center will include:
- Teens
- Families
- Children
- Adults
2.4 Business Target
Our target is to become a major source of entertainment around town. We will provide laser tag activities along with other games to attract customers to our establishment.
The financial targets we want to achieve in the first three years of our launch are demonstrated below:
Company Summary
3.1 Company Owner
Tom Hollins will be the owner and manager of Power Tag laser tag business. Tom got his BBA a few years back and worked in a few companies. He slowly got higher up in the rank to a management position in a toy store. However, he also wanted to start his own business. So, he left his job to start Power Tag.
3.2 Why the Laser Tag company is being started
Tom noticed that even though there were a lot of entertainment options around him in Rhode Island, only a few were digitally inclined. And even fewer provided kid and adult-friendly games like Laser Tag. So he decided to bridge the gap and open the first laser tag arena in the area.
3.3 How the Laser Tag company will be started
Step1: Plan Everything
The primary step to a good laser tag business model is good planning. You have to plan out all the major operations and activities of the business in the beginning. To help you create a good laser tag business plan for your business, we are providing the example of laser tag business plan pdf. The building blocks of every laser tag business plan are the same, and they revolve around planning things such as laser tag franchise cost and running costs, etc.
Step2: Define the Brand
The next step is to attract customers to your business. The best way to do that is by defining your goals and highlighting your services. For instance, you can highlight good entertainment value in an amusement park business plan. This will put your business above your competitors in the industry.
Step3: Establish Your Corporate Office
To start his laser tag arena, Tom decided to rent out an old garage building in the main center of town. He will now procure the equipment and employees to start his business.
Step4: Establish a Web Presence
Online presence is as important as physical presence in today’s world. Tom decided to stay up to date with the technology. So, he will develop a website for the company and also highlight his business through social media channels.
Step5: Promote and Market
The final piece of the puzzle is to develop a marketing plan and execute it.
| Start-up Expenses | |
| Legal | $122,600 |
| Consultants | $0 |
| Insurance | $23,000 |
| Rent | $36,500 |
| Research and Development | $10,000 |
| Expensed Equipment | $56,000 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $251,500 |
| Start-up Assets | $288,400 |
| Cash Required | $209,000 |
| Start-up Inventory | $39,000 |
| Other Current Assets | $255,000 |
| Long-term Assets | $285,500 |
| TOTAL ASSETS | $1,076,900 |
| Total Requirements | $1,328,400 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $251,500 |
| Start-up Assets to Fund | $1,076,900 |
| TOTAL FUNDING REQUIRED | $1,328,400 |
| Assets | |
| Non-cash Assets from Start-up | $1,404,300 |
| Cash Requirements from Start-up | $165,500 |
| Additional Cash Raised | $50,000 |
| Cash Balance on Starting Date | $35,000 |
| TOTAL ASSETS | $1,654,800 |
| Liabilities and Capital | |
| Liabilities | $18,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $55,500 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $73,500 |
| Capital | |
| Planned Investment | $1,328,400 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,328,400 |
| Loss at Start-up (Start-up Expenses) | $252,900 |
| TOTAL CAPITAL | $1,581,300 |
| TOTAL CAPITAL AND LIABILITIES | $1,654,800 |
| Total Funding | $1,328,400 |
Services
Opening a laser tag business means you will need to decide the services you want to offer your customers. That way, you can plan your business plans laser tag properly.
A business plan for laser tag how it works will be different than a business plan for music industry. This means that details add meaning to laser tag business plans.
Since Tom decided to offer a variety of services through his laser tag arena, you can use this laser tag business plan as a guide to writing one for your business. The services that will be provided by Power Tag will be:
- Competitive Events
Power Tag will offer its customers a chance to participate in competitive events held by the arena itself. Players will be able to take part as either individuals or a team in team events. It will offer a great socializing and bonding chance to the customers.
- Tournaments
Power Tag will also hold regular local tournaments that players can take part in. This can be a great recreational activity, especially for young adults looking to blow off some steam. In addition, there will also be tournaments related to other games that individual players can play in. This will allow our customers a wide variety of options to choose from.
- Video Games
While laser tag is the primary jewel of Power Tag, it will also offer other entertainment options to its players. There will be many other digital games in the arena so that players have a choice of what they want to play. This will greatly benefit the social standing and profits of Power Tag.
- Food Courts
Our last service will be food because what is an establishment without some tasty treats? Our food courts will offer fast food as well as quick healthy options to our customers. There will be small sitting areas spread out so people can enjoy a bite to eat in a break. It will also allow our customers to book an area for kids’ birthday parties.
Marketing Analysis of Laser Tag Company
Before you start laser tag business, you should have an in-depth knowledge of your business market. This knowledge should also be reflected in your laser tag gaming centre business plan. The best way to know the details of your target market is to do a marketing analysis when you are preparing your laser tag business model.
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Your marketing analysis should contain information related to current, previous, and future trends and shifts in your target market. This information will greatly benefit your business plan and ensure that your company doesn’t end up as a laser tag business for sale. A good marketing plan will assess your professional laser tag equipment cost with the market trends to figure out what the price of your services should be.
If you don’t know how to do a marketing analysis, you can use this laser tag business plan as a guide. You can also use any other relevant business plan like water park business plan to make sure that you are on the right path.
5.1 Market Trends
According to IBISWorld, laser tag arenas have a market size of $379 Million in the United States, and the market is growing at a steady rate of 16% every year. In general, the market is increasing as long as the services stay true to the developing technology. Therefore, starting a company in this domain is a lucrative prospect.
5.2 Marketing Segmentation
The potential customers of Power Tag are divided into the following target groups:
Business Plan for Investors
5.2.1 Teens
Our primary target market will be that of teens looking to de-stress after a hard school day or just looking to have fun. We expect them to use our services regularly for tournaments, individual events, and birthday parties. They are also expected to utilize our gaming arena.
5.2.2 Families
Our second target customers will be families located in the area or on vacation. They are expected to form about 20% of our customers, and they will avail services like food courts, tournaments, gaming arenas, etc.
5.2.3 Children
This will be our third target group of customers. They are expected to avail themselves of the simpler of our services such as individual games and family tournaments as well as food courts for birthday parties.
5.2.4 Adults
Lastly, our final group of customers will be adults, particularly young adults looking to relax and blow off some steam after a hard day of work.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Teens | 30% | 25,900 | 31,080 | 37,296 | 44,755 | 53,706 | 10.00% |
| Families | 26% | 21,110 | 25,332 | 30,398 | 36,478 | 43,774 | 10.00% |
| Children | 25% | 19,700 | 23,640 | 28,368 | 34,042 | 40,850 | 10.00% |
| Adults | 19% | 17,300 | 20,760 | 24,912 | 29,894 | 35,873 | 11.00% |
| Total | 100% | 84,010 | 100,812 | 120,974 | 145,169 | 174,203 | 10% |
5.3 Business Target
- To become the number one gaming service throughout Rhode Island
- To scale up the business and open branches in other areas
- To earn a net profit margin of $30k per month by the end of the second year
- To achieve and maintain a customer satisfaction score above 95%
5.4 Product Pricing
Our prices for laser tag and its different competitions will be a little higher than the prices of games in the surrounding. However, our simpler offerings like gaming arena games will have prices similar to that of our competitors.
Marketing Strategy
To make your name in a saturated market of laser tag franchises, you need to highlight your advantages to the customers to attract attention. For this, you will need to develop a marketing strategy to market your professional laser tag equipment.
In this laser tag business plan, we are providing sales and marketing strategies of Power Tag that highlights their professional laser tag set and other equipment.
6.1 Competitive Analysis
- We will have new and exciting games and tournaments for our customers to participate in.
- We will be available to our customers for contact through our website and social media.
- We will implement safe playing practices in the arena to attract families.
- We have an open concept design of the gaming arena to increase interaction among common-minded gamers.
6.2 Sales Strategy
- We will offer discounts on our services in the first month to attract sales.
- We will advertise our games and entertainment systems through local ads, social media, and word of mouth.
- We will offer attractive prizes for tournament and competition winners.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Competitive Events | 1,450 | 1,537 | 1,629 |
| Tournaments | 950 | 1,007 | 1,067 |
| Video Games | 1,300 | 1,378 | 1,461 |
| Food Courts | 1,600 | 1,696 | 1,798 |
| TOTAL UNIT SALES | 5,300 | 5,618 | 5,955 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Competitive Events | $350.00 | $406.00 | $470.96 |
| Tournaments | $500.00 | $580.00 | $672.80 |
| Video Games | $225.00 | $261.00 | $302.76 |
| Food Courts | $100.00 | $116.00 | $134.56 |
| Sales | |||
| Competitive Events | $507,500.00 | $624,022.00 | $767,297.45 |
| Tournaments | $475,000.00 | $584,060.00 | $718,160.18 |
| Video Games | $292,500.00 | $359,658.00 | $442,235.48 |
| Food Courts | $160,000.00 | $196,736.00 | $241,906.59 |
| TOTAL SALES | $1,435,000.00 | $1,764,476.00 | $2,169,599.69 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Competitive Events | $120.00 | $132.00 | $138.60 |
| Tournaments | $100.00 | $110.00 | $115.50 |
| Video Games | $120.00 | $132.00 | $138.60 |
| Food Courts | $45.00 | $49.50 | $51.98 |
| Direct Cost of Sales | |||
| Competitive Events | $174,000.00 | $202,884.00 | $225,809.89 |
| Tournaments | $95,000.00 | $110,770.00 | $123,287.01 |
| Video Games | $156,000.00 | $181,896.00 | $202,450.25 |
| Food Courts | $72,000.00 | $83,952.00 | $93,438.58 |
| Subtotal Direct Cost of Sales | $497,000.00 | $579,502.00 | $644,985.73 |
Personnel plan
Starting a laser tag business involves planning out many things, including the categories of employees that will be needed to run the business. The success of a gaming business like Power Tag depends a lot on customer service and satisfaction. To ensure this, Tom included a specific criterion for employee performance in the laser tag business plan.
7.1 Company Staff
The staff of Power Tag will include:
- 1 Co-Manager to oversee the day-to-day operations
- 4 Cleaners
- 4 Operators in Food Court
- 2 Chefs/Cooks
- 1 Technician to upkeep the machinery
- 1 Salesperson to manage inventory
- 1 Web Developer to manage website
- 1 Sales Executive to organize and promote sales
- 1 Receptionist
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Co Manager | $30,000 | $33,000 | $36,300 |
| Cleaners | $99,000 | $108,900 | $119,790 |
| Operators | $82,000 | $90,200 | $99,220 |
| Chefs Cooks | $48,600 | $53,460 | $58,806 |
| Technician | $22,200 | $24,420 | $26,862 |
| Salesperson | $23,440 | $25,784 | $28,362 |
| Web Developer | $20,450 | $22,495 | $24,745 |
| Sales Executive | $21,460 | $23,606 | $25,967 |
| Receptionist | $22,450 | $24,695 | $27,165 |
| Total Salaries | $369,600 | $406,560 | $447,216 |
Financial Plan
To make your laser tag business successful, you have to manage things like laser tag equipment prices along with your sales to stay profitable. To earn any kind of profit, you need to assess your market and your own financial goals for the company to set service costs.
Laser tag business cost can skyrocket if everything is not timely managed. In your financial plan, you should find ways to cover all your costs while retaining some profits. This will allow you to expand and grow your business.
Note
A financial plan is important to every business and is made a part of the laser tag business plan.
For instance, movie theater business plan involves financial information of the movie theater. Similarly, the financial details for Power Tag are demonstrated below.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.20% | 8.26% |
| Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
| Tax Rate | 24.03% | 24.21% | 24.60% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5340 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $231.00 |
| Average Per-Unit Variable Cost | $0.62 |
| Estimated Monthly Fixed Cost | $163,800 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $1,435,000 | $1,764,476 | $2,169,600 |
| Direct Cost of Sales | $497,000 | $579,502 | $644,986 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $497,000 | $579,502 | $644,986 |
| Gross Margin | $938,000 | $1,184,974 | $1,524,614 |
| Gross Margin % | 65.37% | 67.16% | 70.27% |
| Expenses | |||
| Payroll | $369,600 | $406,560 | $447,216 |
| Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
| Depreciation | $2,300 | $2,350 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $2,900 | $3,000 | $3,200 |
| Payroll Taxes | $24,000 | $25,000 | $27,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $548,800 | $590,010 | $641,116 |
| Profit Before Interest and Taxes | $389,200 | $594,964 | $883,498 |
| EBITDA | $389,200 | $594,964 | $883,498 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $77,840 | $118,993 | $176,700 |
| Net Profit | $311,360 | $475,971 | $706,798 |
| Net Profit/Sales | 21.70% | 26.98% | 32.58% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $51,000 | $55,080 | $59,486 |
| Cash from Receivables | $22,000 | $23,760 | $25,661 |
| SUBTOTAL CASH FROM OPERATIONS | $73,000 | $79,570 | $85,936 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $74,000 | $79,000 | $85,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $42,000 | $42,000 | $45,000 |
| Bill Payments | $27,000 | $28,000 | $31,000 |
| SUBTOTAL SPENT ON OPERATIONS | $69,000 | $70,000 | $76,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $69,000 | $74,520 | $80,482 |
| Net Cash Flow | $21,000 | $23,000 | $25,000 |
| Cash Balance | $27,000 | $30,000 | $33,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $24,000 | $26,880 | $30,213 |
| Inventory | $4,300 | $4,816 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $282,000 | $315,840 | $355,004 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
| TOTAL LONG-TERM ASSETS | $24,400 | $27,328 | $30,744 |
| TOTAL ASSETS | $294,000 | $329,280 | $370,440 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,700 | $20,944 | $23,541 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,000 | $21,280 | $23,919 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,000 | $16,800 | $18,883 |
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $53,000 | $57,770 | $63,547 |
| Earnings | $193,400 | $210,806 | $231,887 |
| TOTAL CAPITAL | $285,000 | $310,650 | $341,715 |
| TOTAL LIABILITIES AND CAPITAL | $300,000 | $329,280 | $370,440 |
| Net Worth | $293,400 | $319,806 | $351,787 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
| Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
| Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
| Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
| NET WORTH | 100.45% | 101.25% | 102.19% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
| Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.8 | 34.645 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.08% | 74.89% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 96.30% | 101.12% | 106.17% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.56% | 34.60% | 35.67% | N.A. |
| Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
| Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQ
1. Is laser tag a profitable business?
Laser Tag business can be made profitable like any other business if you manage everything through a laser tag business plan like the one developed here.
2. How much does laser tag equipment cost?
Laser tag business equipment has different costs depending on the company and type. However, the highest prices for laser tag equipment can go up to $3000 or more.
3. How do I start a mobile laser tag business?
You can start a laser tag business by strengthening your idea with a laser tag business plan like the one mentioned here.
4. How much did laser tag cost?
If you want to know “how much do laser tag cost?”, you will need to do a financial analysis. You can take help from the financial analysis done in this laser tag business plan.
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