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FEB.11, 2022

Laser Tag Business Plan Sample

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Laser Tag Business Plan Sample

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Table of Content

    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.

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    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:

    Laser Tag - 3 Years Profit Forecast

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    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.

    Laser Tag - Startup Cost

    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
    Any questions? Get in Touch!

    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.

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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 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:

    Laser Tag - Marketing Segmentation

    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

    Laser Tag - Sales Monthly

    6.4 Sales Yearly

    Laser Tag - Sales Yearly

    6.5 Sales Forecast

    Laser Tag - Unit Sales

    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.

    Any questions? Get in Touch

    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

    Note

    To make your laser tag business successful, you have to manage laser tag equipment prices along with your sales to stay profitable.

    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

    Laser Tag - 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%
    Any questions? Get in Touch

    8.3.1 Profit Monthly

    Laser Tag - Profit Monthly

    8.3.2 Profit Yearly

    Laser Tag - Profit Yearly

    8.3.3 Gross Margin Monthly

    Laser Tag - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Laser Tag - Gross Margin Yearly

    8.4 Projected Cash Flow

    Laser Tag - 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

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