Video store business plan for starting your own business

Video games are becoming more and more popular among youth, teens, as well as adults. Setting up an arena where your customers could play video games, as an individual as well as in groups, can be immensely profitable. To enter this business, making a business plan for a video game store is the first step you have to take. Since each aspect of your business will get affected by your plan, therefore, it is necessary to write a business plan for video game store effectively. If you are looking for an easy yet cost-effective business startup, the 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 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.

Executive Summary

2.1 The Business

The Game Garage video game store will be a video game store located in an emergent community in Los Angeles, California. After conducting a market survey and feasibility studies, we concluded that Baldwin Park, Los Angeles, 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 facilities. 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 Angeles.

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2.2 Management of Video Store Business

The owner of The Game Garage will be Mr. Helery. He has extensive experience working in managerial positions in various video game stores. Being an experienced person, he will soon be able to drive his business towards success. 

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

Our potential and recurring customers are identified as follows:

  • Young Professionals
  • Children
  • 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 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:

Video Store Business Plan-3 years profit forecast
Franchise Business Planning 
Helps the franchisee get business case approval from the franchisor

Company Summary

3.1 Company Owner

Mr. Helery will be the owner of this video store business. 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 a video rental business of his own, and therefore, 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 will be based on giving people, an 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 through thorough planning. To help you plan your business, we are providing this business plan free of cost. You can use this document or a business plan for retail clothing to plan your startup.

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.

Step3: Establish Your Corporate Office

To start the video game store, Mr. Helery decided to rent out a three-room shop and procure the equipment and furniture.

Step4: Establish a Web Presence

Nowadays, most people search for a service online to read reviews and get a basic overview. 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 establishment of a business, the most important thing is its marketing. It is important to tell people that you exist. Marketing promotes aspects that make you different from your competitors. Thus, the store will utilize promotional streams such as social media to make its presence known to a greater community.

Video Store Business Plan-Startup Cost
Start-up Expenses 
Research and Development$10,000
Expensed Equipment$57,800
Start-up Assets$288,400
Cash Required$209,000
Start-up Inventory$39,000
Other Current Assets$278,000
Long-term Assets$287,000
TOTAL ASSETS$1,101,400
Total Requirements$1,369,900
Start-up Expenses to Fund$268,500
Start-up Assets to Fund$1,101,400
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
TOTAL ASSETS$1,691,800
Liabilities and Capital 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$58,700
Other Current Liabilities (interest-free)$0
Planned Investment$1,369,900
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$245,200
Total Funding$1,369,900
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    Services of Video Store Business

    Enlisting 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 decide which services you should offer, it is helpful to read the services provided by your competitors via available business plans. Reading blogs on how to start a video rental business can also help you make this decision.


    For video store business plan sample , it is important to define the services provided by the store.

    Our video store will offer the following services:

    • New games

    The selling of 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 with details of authorized dealers and wholesalers. It has been anticipated by the management of the video store business 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 old games that customers can trade 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. For more on this, you may consult the used video game store business plan.

    • Vintage video games

    There has been an increase in the demand for vintage video games from the industry‘s early days. 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

    Before you start your own video store , it is important to explore the trends that are going on. The market analysis done by you should investigate the relationship between the supply and demand of the products. In this video store business plan we will provide some segments from the marketing analysis of Game Garage. This video game store business plan template will help you understand your target market thoroughly. For a better understanding of how pricing trends and customer expectations are measured, you can also visit 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 are written after carefully analyzing the financial and marketing information, then the video stores can turn into big success stories. 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:

    Video Store Business Plan-Marketing Segmentation

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    5.2.1 Young Professionals

    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. 

    5.2.2 Children

    Children prove to be avid gamers. And considering that trend, we expect to receive regular visits from children as well, especially from those who are between the ages of 10 and 15.

    5.2.3 College students 

    College and high school students also contribute to increasing video gaming stores’ revenue. Their spending power may be less than our first group but they are still expected to make a significant portion of our revenues. It is because they are not tightly bound with their routines and can visit us more frequently than all other customer groups. 

    5.2.4 Other Video Game Stores

    The final set of our customers will be the video game stores that want to procure inventory from us. As we will store new games in high demand, we expect to often receive these customers.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Young Professionals27%27,80033,36040,03248,03857,64610.00%
    College Students25%24,36029,23235,07842,09450,51310.00%
    Other Stores20%21,10025,32030,38436,46143,75311.00%

    5.3 Business Target

    We will try to focus our efforts to achieve the following targets:

    • 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 the lowest possible. 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 those that are obtainable from other video game stores.

    Marketing Strategy of video store business

    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 marketing plan. The video game business plan template for Game Garage will help you understand the marketing trends and targeted customers.

    Though this video store sample business plan provides the competitive analysis and sales strategy in detail, it is still advisable to study a few more business plans such as a butcher shop business plan to have even greater insight.

    6.1 Competitive Analysis

    • Our store will aim to hire the most competent and top-ranking professionals with extensive experience in their respective fields. 
    • 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 and provide top-class services.
    • Under our particular training program, we will provide special training 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.
    • We will offer a 20% discount on all our services for the first three months.

    6.3 Sales Monthly

    Video Store Business Plan-Sales Monthly

    6.4 Sales Yearly

    Video Store Business Plan-Sales Yearly

    6.5 Sales Forecast

    Video Store Business Plan-Unit Sales
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    New Games5,0005,3005,618
    Used Games6,0006,3606,742
    Vintage Games6,5006,8907,303
    Gaming Lounge1,5001,5901,685
    TOTAL UNIT SALES19,00020,14021,348
    Unit PricesYear 1Year 2Year 3
    New Games$60.00$69.60$80.74
    Used Games$50.00$58.00$67.28
    Vintage Games$100.00$116.00$134.56
    Gaming Lounge$200.00$232.00$269.12
    New Games$300,000.00 $368,880.00 $453,574.85
    Used Games$300,000.00 $368,880.00 $453,574.85
    Vintage Games$650,000.00 $799,240.00 $982,745.50
    Gaming Lounge$300,000.00 $368,880.00 $453,574.85
    TOTAL SALES$1,550,000.00 $1,905,880.00 $2,343,470.05
    Direct Unit CostsYear 1Year 2Year 3
    New Games$20.00$22.00$23.10
    Used Games$15.00$16.50$17.33
    Vintage Games$35.00$38.50$40.43
    Gaming Lounge$100.00$110.00$115.50
    Direct Cost of Sales   
    New Games$100,000.00 $116,600.00 $129,775.80
    Used Games$90,000.00 $104,940.00 $116,798.22
    Vintage Games$227,500.00 $265,265.00 $295,239.95
    Gaming Lounge$150,000.00 $174,900.00 $194,663.70
    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 a video game store business must be included in your business plan video store. When you search for how to open a movie rental store you should identify the major task and personnel required to perform those tasks. If you want to know how to keep your staff motivated and productive throughout the year, you can see some tips in this bridal store business plan. The list of required employees to start Game Garage is given below.

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    7.1 Company Staff

    • 1 General Manager to help direct the business
    • 1 Sale and Marketing Manager to increase sales of the store
    • 2 Merchandise Managers to manage market visits and vendor relations
    • 2 Store Managers to manage the daily activities of the store
    • 1 Accountant/ Cashier to manage the monetary activities of the store 
    • 1 Receptionist to receive calls for video game purchasing
    • 2 Cleaners

    7.2 Average Salary of Employees

     Personnel Plan   
     Year 1Year 2Year 3
    General Manager$40,000$44,000$48,400
    Sale/ Marketing Manager$35,000$38,500$42,350
    Merchandise Manager$60,000$66,000$72,600
    Store Managers$60,000$66,000$72,600
    Total Salaries$285,000 $313,500 $344,850

    Financial Plan of video store business

    A financial plan should entail cash in-flows and outflows of your business for at least three years. In this sample business plan for video store, we are providing the financial plan of Game Garage. Through this financial plan, you can learn how to turn every cent of your investment into huge revenue. Only by following an accurate financial plan can you ensure that your business doesn’t go into a loss and ends up as a video rental store for sale.

    For a greater and in-depth knowledge of financial statements, you should also study a few more business plans like a business plan for jewelry business. If you lack the knowledge and expertise in the field, then it is advisable to hire a financial analyst to do the job for you.

    8.1 Important Assumptions

     General Assumptions   
     Year 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.12%8.20%8.26%
    Long-term Interest Rate8.40%8.44%8.47%
    Tax Rate24.03%24.21%24.60%

    8.2 Break-even Analysis

    Video Store Business Plan-Break-even Analysis
     Break-Even Analysis 
    Monthly Units Break-even5340
    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 1Year 2Year 3
    Sales$1,550,000 $1,905,880 $2,343,470
    Direct Cost of Sales$567,500 $661,705 $736,478
    TOTAL COST OF SALES$567,500 $661,705 $736,478
    Gross Margin$982,500 $1,244,175 $1,606,992
    Gross Margin %63.39%65.28%68.57%
    Sales and Marketing and Other Expenses$145,000$148,000$156,000
    Leased Equipment$0$0$0
    Payroll Taxes$24,000$25,000$27,000
    Total Operating Expenses$464,200 $496,950 $538,750
    Profit Before Interest and Taxes$518,300$747,225$1,068,242
    Interest Expense$0$0$0
    Taxes Incurred$103,660$149,445$213,648
    Net Profit$414,640$597,780$854,594
    Net Profit/Sales26.75%31.37%36.47%
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    8.3.1 Profit Monthly

    Video Store Business Plan-Profit Monthly

    8.3.2 Profit Yearly

    Video Store Business Plan-Profit Yearly

    8.3.3 Gross Margin Monthly

    Video Store Business Plan-Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Video Store Business Plan-Gross Margin Yearly

    8.4 Projected Cash Flow

    Video Store Business Plan-Projected Cash Flow
     Pro Forma Cash Flow   
    Cash ReceivedYear 1Year 2Year 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
    ExpendituresYear 1Year 2Year 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
    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  
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$24,000$26,880$30,213
    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 CapitalYear 4Year 5Year 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
    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 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth7.25%8.03%8.90%3.00%
    Percent of Total Assets    
    Accounts Receivable9.21%10.20%11.31%9.80%
    Other Current Assets2.11%2.34%2.59%2.40%
    Total Current Assets149.80%151.00%152.00%158.00%
    Long-term Assets11.55%11.60%11.64%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.90%4.94%4.98%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.59%7.65%7.72%7.38%
    NET WORTH100.45%101.25%102.19%110.00%
    Percent of Sales    
    Gross Margin94.60%97.15%99.87%99.00%
    Selling, General & Administrative Expenses93.56%96.09%98.78%97.80%
    Advertising Expenses1.52%1.56%1.60%1.40%
    Profit Before Interest and Taxes41.50%42.62%43.81%33.90%
    Main Ratios    
    Total Debt to Total Assets0.18%0.18%0.17%0.40%
    Pre-tax Return on Net Worth74.08%74.89%75.00%75.00%
    Pre-tax Return on Assets96.30%101.12%106.17%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin33.56%34.60%35.67%N.A.
    Return on Equity55.80%57.53%59.31%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.87.8N.A.
    Collection Days100100100N.A.
    Inventory Turnover32.434.0235N.A.
    Accounts Payable Turnover15.61616.3N.A.
    Payment Days272727N.A.
    Total Asset Turnover2.52.52.6N.A.
    Debt Ratios    
    Debt to Net Worth-0.04-0.03-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$244,000$257,664$272,093N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.850.870.89N.A.
    Current Debt/Total Assets1%0%0%N.A.
    Acid Test2929.1229.16N.A.
    Sales/Net Worth2.12.22.2N.A.
    Dividend Payout000N.A.


    • How to start a video store business?

    Starting a video rental store involves developing a business plan to define the brand, establish your store, establish a web presence, and promote and market your brand.

    • How to open a video rental store?

    Opening a movie rental store involves the following steps: determine your niche, assess your competitors and finances, build marketing plans and strategies, set up your business goals, and invest in your company. 

    Download Video Store Business Plan Template in pdf