Video Store Business Plan Template 

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.

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 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
• 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 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:

Franchise Business Plan

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 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.

Start-up Expenses
Legal	$137,700
Consultants	$0
Insurance	$23,000
Rent	$36,600
Research and Development	$10,000
Expensed Equipment	$57,800
Signs	$3,400
TOTAL START-UP EXPENSES	$268,500
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 FUNDING
Start-up Expenses to Fund	$268,500
Start-up Assets to Fund	$1,101,400
TOTAL FUNDING REQUIRED	$1,369,900
Assets
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
Liabilities	$18,000
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$58,700
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$76,700
Capital
Planned Investment	$1,369,900
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,369,900
Loss at Start-up (Start-up Expenses)	$245,200
TOTAL CAPITAL	$1,615,100
TOTAL CAPITAL AND LIABILITIES	$1,691,800
Total Funding	$1,369,900

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Services of Video Store Business

Discussing the store services is necessary to complete a business plan.

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.

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:

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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.

5.2.2 Children

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.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Young Professionals	27%	27,800	33,360	40,032	48,038	57,646	10.00%
Children	28%	22,700	27,240	32,688	39,226	47,071	10.00%
College Students	25%	24,360	29,232	35,078	42,094	50,513	10.00%
Other Stores	20%	21,100	25,320	30,384	36,461	43,753	11.00%
Total	100%	95,960	115,152	138,182	165,819	198,983	10%

 

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

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
New Games	5,000	5,300	5,618
Used Games	6,000	6,360	6,742
Vintage Games	6,500	6,890	7,303
Gaming Lounge	1,500	1,590	1,685
TOTAL UNIT SALES	19,000	20,140	21,348
Unit Prices	Year 1	Year 2	Year 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
Sales
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 Costs	Year 1	Year 2	Year 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 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.

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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

Personnel Plan
	Year 1	Year 2	Year 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
Accountant	$25,000	$27,500	$30,250
Receptionist	$25,000	$27,500	$30,250
Cleaners	$40,000	$44,000	$48,400
Total Salaries	$285,000	$313,500	$344,850

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

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	$1,550,000	$1,905,880	$2,343,470
Direct Cost of Sales	$567,500	$661,705	$736,478
Other	$0	$0	$0
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%
Expenses
Payroll	$285,000	$313,500	$344,850
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	$464,200	$496,950	$538,750
Profit Before Interest and Taxes	$518,300	$747,225	$1,068,242
EBITDA	$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/Sales	26.75%	31.37%	36.47%

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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’S

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.

Download Video Store Business Plan Template in pdf