Laser Tag Business Plan Sample

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 a laser tag gaming center. 

Writing a 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 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 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 based 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

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 to launch your laser tag set up successfully.

In this business plan, we will guide you on how to build a laser tag arena. So that if you want to start your setup, you can have all the guidelines you need. The best way to organize and plan a startup is to develop a business plan. You can take help from this document or an artist business plan to learn the basics. If you plan to raise a loan, you should also consider reading a business plan for a bank loan before starting 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. 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:

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

Company Summary

3.1 Company Owner

Tom Hollins will be the owner and manager of this laser tag business. Tom got his BBA a few years back and worked in a few companies. He rose 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. 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 starting 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 business plan for your business, we are providing the example of laser tag business plan pdf. The building blocks of every 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 is to define your goals and highlight your services. For instance, you can highlight your entertainment value in an amusement park business plan. It 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 then procured the equipment and hired 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 developed a website for the company and highlighted 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

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Services

Opening a laser tag business means you will need to decide the services you want to offer to your customers. In this way, you can plan your business plans laser tag properly.

A business plan for laser tag and how it works will be different than a business plan for music industry.

Since Tom decided to offer a variety of services through his laser tag arena, you can use this business plan as a guide to writing one for your business. The services that will be provided by Power Tag are:

• 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. It will offer a great socializing and bonding opportunity 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.

• 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 can have multiple choices.

• Food Courts

Our last service will be offering some tasty treats. Our food courts will offer fast food as well as healthy subs to our customers. There will be a sitting area so people could spend time there if they are waiting for something or someone. It will also allow our customers to book an area for kids’ birthday parties.

Marketing Analysis of Laser Tag Company

Before you start a 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 center 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.

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 along 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 business plan as a guide. You can also use any other relevant business plan like water park business plan to make sure that you possess enough knowledge of the related domains.

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. Therefore, starting a company in this domain is lucrative so far.

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 the 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 26% 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 participate in individual games and family tournaments. They are also expected to utilize our 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 at least $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 our surroundings. However, our simpler offerings like games will be rated in a similar price range as 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. For this, you will need to develop a marketing strategy to market your professional laser tag equipment.

In this business plan, we are providing a sales strategy for Power Tag that highlights their competitive advantages in professional laser tag set and 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 advertisement services and social media.
• 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 also involves planning about the company’s staff. It is because 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.

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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

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. Moreover, you should also include a detailed risk assessment profile to cope with any unforeseen circumstances in the best way.

A financial plan is important to every business since the ultimate goal of startups remains to generate profits. The financial details for Power Tag are demonstrated below. It is, however, recommended to also go through some relevant business plans like movie theater business plan to have a greater understanding of financial terms.

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%

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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 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 business plan like the one mentioned here.

4. How much did laser tag cost?

If you want to know “how much does laser tag cost?”, you will need to do a financial analysis. You can take help from the financial analysis done in this business plan.

Download Laser Tag Business Plan Sample in pdf