Video store business plan for starting your own business
According to a widespread saying, “The first impression is the last impression.” For that reason, the executive summary of your business plan for video game store is your first impression towards your investors. Therefore, it is necessary to write business plan video game store in an effective way. If you are looking for an easy yet cost-effective business startup, this video game store business can be a great choice.
Although this venture is relatively easy, you still need professional business plan experts to make the best business plan. The Game Garage video game store will provide a thrilling and never-before real gaming experience mainly for the youth and adults accustomed to games. You can use the following document for help or refer to a business plan for farmers market or a related business to get the ball rolling.
2.1 The Business
The Game Garage video game store will be a video game store located in an emergent community in Los Angles, California. After conducting a market survey and feasibility studies, we concluded that Baldwin Park, Los Angles, is the right location to launch our video game store business plan. According to our video games store business plan, we will equip our gaming outlet with numerous payment methods. Furthermore, apart from providing video games and related products at affordable prices, we will ensure that our customer care services are second to none in the whole of Los Angles.
2.2 Management of Video Store Business
The owner of The Game Garage will be Mr.Helery. Previously he had experience working at managerial positions in various video game stores. Being an experienced person, he will bring the business’s operations to profitability within its first few years of operations through his proficiency and skill.
In this business plan to start your own video rental store , we’re providing all the details of ecommerce startup business plan to help you devise a plan for your startup.
2.3 Customers of Video Store Business
Based on video gaming products found in our game store, there is a wide variety of available customers. However, our potential and recurring customers are identified as follows:
- Young Professionals
- College Students
- Other Video Game Stores
2.4 Business Target
The target of The Game Garage is to offer a unique and unforgettable gaming experience to our targeted customers. We will deliver our best-expected services to our game players by providing them with the best possible gaming devices, a comfortable environment, and a fair pricing model.
Our financial targets to meet for the first three years of our launch are demonstrated below:
3.1 Company Owner
Mr. Helery will be the owner of this video store business plan. Mr.Helery completed his Master’s degree in Business Administration. Previously he served in managerial positions at various games stores. However, he wished to start video rental business of his own, which is how The Game Garage came into being.
3.2 Why the video store business is being started
Mr.Helery knew well that a video game shop business has an evergreen and blossoming market. Therefore, the video store business plan will be based on giving people who shop at the store the opportunity to choose from a wide range of video games and other related products.
3.3 How the video store business will be started
Step1: Plan Everything
The main objective of any video game shop business plan is to help develop the business. And this is achieved with thorough planning. To help you plan your business, we are providing this business plan. You can use this document or a business plan for retail clothing to plan your startup. The Game Garage depends on its customers for survival, so it will go the extra mile to satisfy its customers.
Step2: Define the Brand
The next step in setting up the video game business is to define its brand. The business plan of this video game store will be aimed at making a brand that people can trust. For this business to be successful, brand name matters a lot.
Step3: Establish Your Corporate Office
To start the video game store, Mr. Helery decided to rent out a three-room shop in the commercial market.
Step4: Establish a Web Presence
Nowadays, most companies prefer hiring employees using online channels; hence an online presence is necessary. Thus, to attract a wider audience, Mr.Helery has decided to make a page on social media platforms and develop a website.
Step5: Promote and Market
Even before the physical appearance of a business, the most important thing is its marketing. It is important to tell people that you exist. Marketing promotes things that make you different from your competitors. Thus, the store will utilize promotional streams such as social media to provide the store with an excellent platform to reach possible customers.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$268,500|
|Other Current Assets||$278,000|
|Start-up Expenses to Fund||$268,500|
|Start-up Assets to Fund||$1,101,400|
|TOTAL FUNDING REQUIRED||$1,369,900|
|Non-cash Assets from Start-up||$1,428,800|
|Cash Requirements from Start-up||$178,000|
|Additional Cash Raised||$50,000|
|Cash Balance on Starting Date||$35,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$58,700|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,369,900|
|Loss at Start-up (Start-up Expenses)||$245,200|
|TOTAL CAPITAL AND LIABILITIES||$1,691,800|
Services of Video Store Business
Discussing the store services is necessary to complete a business plan.
For video store business plan sample , it is important to define the services provided by the store.
To find the answer to how to start video rental business, the following are the services that the video game store must provide:
- New games
The selling of the new video games to the customers is the primary revenue stream for the business. The video games that the general public will demand will be provided to the video game store business by its inventories from authorized dealers and wholesalers. It has been anticipated by the management of the video store business plan that approximately 50% of the company’s revenue will come from selling new video games.
- Used games
Additionally, the video game store will also deal in used games that customers can trade in and purchase. The store will use a comprehensive used game return policy that allows sellers to receive a good value for each of their used games or game consoles. This will be a part of the used video game store business plan.
- Vintage video games
As the world is becoming nostalgic, there has been an increase in the demand for vintage video games from the industry’s early days. Along with older players who experienced the games first-hand, a new generation demands these vintage video games. Our video games store will also sell vintage video games following the trending demand.
- Gaming Lounge
Not only can our customers buy video games from the store, but they will also be able to play video games in our gaming lounge.
Marketing Analysis of Video Store Business
It is important to analyze the market to start your own video store . This market analysis will investigate the relationship between the supply and demand of the products. The video store business plan. also covers this aspect. Thus, this video game store business plan template will help you understand your target market thoroughly. You can also take this help from a gift shop business plan.
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5.1 Market Trends
Due to the increasing trend of video games, the industry has a market share of around $86 Billion. If the video rental store business plans successfully flow with the trend and keep up with consumer and technology trends, they will prove successful in the coming years. Therefore, it is good to invest in an industry with more than 2.7 Million users worldwide.
5.2 Marketing Segmentation
As per the industry business plan, the potential customers of The Game Garage Video store are divided into the following groups:
Business Plan for Investors
5.2.1 Young Professionals
These customers are our primary target. Young professional players spend their maximum time playing games to get rid of the stress of their working routines. These young professional gamers have a great interest in up-to-date video games, so they are expected to have a considerable presence in our store.
Children prove to be avid gamers. And considering that trend, we expect to receive regular business from children as well. This is especially true for kids between the ages of 10 and 15.
5.2.3 College students
The college and high school students also contribute to increasing video gaming stores’ revenue. These are people just starting to enjoy social activities that were not available to them as youngsters. Their spending power may be less than our first group but makes up a significant portion of revenues since they can visit The Game Garage earlier than members of our first group due to their working hours.
5.2.4 Other Video Game Stores
The final set of our customers will belong to other video games who want ot procure inventory from us. As we will store most new and high-demand games, we expect to receive these customers occasionally as well.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
5.3 Business Target
We will try to focus our all efforts on the segments of the business mentioned above and will aim to achieve the following targets:
- From the very start will try to gain and sustain a CSAT score of more than 95%.
- To generate enough revenue from the company to earn a profit of more than $40.4k a month on average by the end of the third year.
- To extend our services to at least three states within the first three years.
5.4 Product Pricing
To capture the market at the start, we will keep our charges lowest-in-the-market rate. In addition, our video game store will ensure that the prices of all the video games and accessories available in our store are competitive with what is obtainable amongst video game retail stores within our level and in our location.
Marketing Strategy of video store business
If you don’t know the components of detailed marketing analysis, you can take help from this video store sample business plan or a butcher shop business plan.
Now that you are familiar with how to build a video game store business, the next step is to develop practical marketing strategies for your store. This is one of the essential parts of a video store business plan marketing. The video game business plan template for The Game Garage will be quite helpful to help you understand our marketing trends and targeted customers.
6.1 Competitive Analysis
- Our store will aim to hire the most competent and top-ranking professionals with extensive experience in their required field to provide services best in class.
- Our video store believes in a combined effort. Our experts will have in-depth conversations with the customers/clients to provide their desired video game products to provide top-class services.
- Under our particular training program, we will provide special training in the market to our executives and employees.
6.2 Sales Strategy
- We will use online channels like Facebook ads, YouTube, and Google to boost our sales.
- We will create a strong presence on all online channels of social media.
- We will offer discounts on all our services at the start to help earn clients.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|TOTAL UNIT SALES||19,000||20,140||21,348|
|Unit Prices||Year 1||Year 2||Year 3|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Direct Cost of Sales|
|Subtotal Direct Cost of Sales||$567,500.00||$661,705.00||$736,477.67|
Personnel plan of video game store
The list of people needed to start this video game store business will complete the business plan video store. how to open a movie rental store depends on the personnel and finances of the business plan. There will be a permanent allocation of most of the workforce, just like in a bridal store business plan. The list of required employees to start the business is detailed below.
7.1 Company Staff
- 1 General Mange/ Chief Operating Officer to help direct the business
- 1 Sale and Marketing Manager to increase sales of the store and also marketing for the store
- 2 Merchandise Manager to manage market visits and vendor relations
- 2 Store Managers to manage the daily activities of the store
- 1 Accountant/Cashiers to manage the monetary activities of the store
- 1 Receptionist to receive calls for video gaming purchasing
- 2 Cleaners
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
|Sale/ Marketing Manager||$35,000||$38,500||$42,350|
Financial Plan of video store business
After following those mentioned above sample business plan for video store, the last part is the financial plan. A financial plan will help you balance your finances so that your expenditures are not greater than your profits. This will ensure that your business doesn’t go into a loss and ends up as a video rental store for sale.
Every good business plan includes a solid financial plan. Even a business plan for jewelry business contains financial information to keep the company profitable. Here, we are providing the financial plan details of The Game Garage.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|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|
|Direct Cost of Sales||$567,500||$661,705||$736,478|
|TOTAL COST OF SALES||$567,500||$661,705||$736,478|
|Gross Margin %||63.39%||65.28%||68.57%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$464,200||$496,950||$538,750|
|Profit Before Interest and Taxes||$518,300||$747,225||$1,068,242|
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 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|
|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|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|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.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
1. How to start a video store business?
Starting a video rental store involves developing a video store business plan to define the brand, establish your store, establish a web presence, and promote and market your brand.
2. How to open a video rental store?
Opening a movie rental store depends on the following factors: determine your niche, assess your competitors and finances, build marketing plans and strategies, set up your business goals, and invest in your company’s people.
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.