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FEB.11, 2022

Video Store Business Plan Template 

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Video Store Business Plan Template 

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Table of Content

    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.

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    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:

    Video Store Business Plan-3 years profit forecast

    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.

    Video Store Business Plan-Startup Cost

    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.

    Note

    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:

    Video Store Business Plan-Marketing Segmentation

    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.

    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

    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 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

    Video Store Business Plan-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%
    Any questions? Get in Touch

    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 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

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