Good Times Enterprise

By Sean Ingerson
Morgen Perrion
Rachael West
Julie Heard

For David Kampmann

April 22, 2010

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Our business plan is to start a LAN gaming center. This locale will attract

people anywhere from 14 to 30 to come socialize with their friends while not having

to spend their own money to pay for a high-end computer. In order to accomplish

this it is necessary that we plan accordingly to achieve success.

Initially we plan on starting out with only 20 PCs, but eventually expand to

include more PCs and other systems such as the Xbox 360. As part of our research

we delved into the costs associated with opening a LAN center, such as the

computer hardware cost as well as software cost. Too, we have looked at the capital

required to provide a sufficient internet connection for our business.

In order to run a successful center, it is necessary to implement certain

software to protect your computers from malicious attacks and keyloggers. Not only

that, but to allow for smooth transitioning between games there is generally more

software. Even then, it is necessary to receive licensing from the game companies to

use their games in such a fashion. As for games that we will be offering: we will be

starting with social titles such as Left 4 Dead 2, Modern Warfare 2, Starcraft 2, and

Borderlands, along with others. Below is some software that so far we have decided

will be useful in the operation of a LAN center:

• Smartlaunch 4.1

• Steam's CyberCafe

• McAfee or similar antivirus

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Most LAN centers typically face large barriers to making a profit. Whether it

is the demographics of the area or poor planning, many of them face a hefty figure in

red at the end of each quarter. We are aware of such difficulties, and have come up

with some ideas that will hopefully help counteract the expensive nature of a LAN

center.

In order to cover the costs of running a LAN center, we also plan to have a

shop up front selling games and accessories for both PC and consoles. It is our hope

that by offering a service other than social gaming we will be able to retain more as

consistent customers. We will sell games, accessories, and clothes branded by major

gaming companies or parts manufacturers.

In addition to this source of revenue, we will be offering snacks to further

counterbalance the expenses. We will offer a wide variety to assure that all

customers have something to choose. from. We hope to make a high margin of profit

on snacks as it will be far more convenient for them to buy them from us.

We plan to offer a service in Sioux Falls with little competition other than

what every LAN center faces in the terms of gaming at home. To determine

competitive pricing we conducted an analysis of various prices of time blocks. Listed

below is pricing and membership information with numerous LAN centers

throughout the country.

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LAN Center Cost Cost per 3 Hours

Name per Hour

Galaxy $4.00 $10.00

Gaming

PC Dynamix $4.00 $10.00

Gaming

LAN Assault $4.00 $10.00

Cold Fusion $4.00 $12.00

Establishing a LAN center will certainly be difficult but after it stabilizes it

will be a great business to run. I will be interacting with people who possess

interests similar to my own. The biggest reward of a LAN center owner is connecting

with your customers. Sitting down to play with them occasionally will do far more

than the insincere words in other businesses about how much they value their

customers. After researching and compiling this report though, I found that while it

would indeed be an enjoyable business and many desire to start up their own; it is

fraught with risk. It is very necessary to get a good balance of customers and

affordable expenses. Some places can't pull the customers to cancel out the

exorbitant rent of the larger cities, and other places there just aren't enough people

of the right demographic to populate the center. I believe Sioux Falls to be a rather

1 It should be noted that most have memberships that allow further deductions from the
listed prices for a monthly fee.
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ideal location in terms of balancing these perfectly. If I were going to start my own

business I would seriously consider starting one up despite the risks.

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WORKS CITED

Cold Fusion LAN Gaming Center. 11 5 2009. 18 4 2010

<http://www.coldfusionlc.com/cflan/>.

Galaxy Gaming Price. 2010. 18 April 2010 <http://thegalaxygaming.ning.com/page/pricing-

1>.

Home is Where the Controller is. 8 September 2008. 18 April 2010

<http://www.flickr.com/photos/18059126@N00/2839090909/>.

LAN Assault. 16 April 2010 <http://www.lanassault.com/rates.html>.

Mission Control LGC. 18 10 2007. 20 April 2010 <http://missioncontrol-

lgc.net/index.php?option=com_content&task=view&id=5&Itemid=6>.

PC Dynamix. 1 April 2009. 17 April 2010

<http://www.pcdynamixgaming.com/games_and_rates.html>.

Whiteside, Eric. LAN Center Financial Overview. 20 May 2007. 20 April 2010
<http://www.dblpro.info/index.php/profit-center/lan-center-finance>.
 Good Times Enterprises
1408 Philips Avenue * Sioux Falls, SD 57104 * goodtime
goodtimesenterprise@hotmail.com
enterprise@hotmail.com

April 21, 2010

Mr. Paul Ramos

SBL Officer
Wells Fargo Financial
483 Main Street
Sioux Falls, SD 57106

Dear Mr. Ramos:

I am writing to apply for a small business loan. Inside is your small business loan
application. I would be happy to meet with you at your earliest convenience to discuss
my eligibility for a loan.

I am requesting my loan for accruing the capital necessary to start up a LAN gaming
g
center where young men and women may socialize while enjoying the latest videogames.
After much research I have determined that a sum of around $40,000 would be sufficient
for establishment.

If possible I would like to meet with you in the next week or two when possible. You
may reach me at 605-254-22942294 or goodtimesenterprise@hotmail.com in order to set up a
time.

Sincerely,

Sean Ingerson

Enclosure
 Sean Ingerson
1408 Phillips Avenue
Sioux Falls, SD 57104
goodtimesenterprise@hotmail.com

Objective:
Acquire a loan to pursue a gaming center for all ages in the surrounding
community.

Education:
• South Dakota State University
University- Bachelors Degree in Marketing, Bachelors
Degree in Business Administration(2010
Administration(2010-2014)
• Southeast Technical Institute
Institute- Business Administration (2009-2010)
2010)

Job History:

Best Buy (2009-2010)

2010)
Sales Personnel
-Help
Help Customers with computer choices; explain the pros and cons of
different gaming counsels

Galaxy Lan (2010-2011)

2011)
Gaming Technician
Set up the various systems, organize games, and troubleshoot/fix
-Set
problematic systems

Competencies:

• Great knowledge of games and their adjoining systems

• Knowing when the newest games are coming out
• Ability to assist in various games and levels
 Sean Ingerson, Morgen Perrion, Rachael West, Julie Heard

Gaming LAN Center

Sample Financial Overview
5/20/2007
Expenses Monthly Average Annual Average Income Monthly Average Annual Average
Rent/Leases $ 1,500.00 $ 18,000.00 Membership $ 2,800.00 $ 33,600.00
Payroll 3,800 45,600 Hourly Fees 1,500 18,000
Power 450 5,400 Entry Fees 1,850 14,400
Telephone 250 3,000 Internet Advertising 25 300
Concessions 350 4,200 Party Rental 800 9,600
Internet Services 125 1,500 Concessions 650 7,800
Game Software 250 3,000 Total Income $ 7,625.00 $ 83,700.00
Marketing 1,400 16,800
Game Content Provider 250 3,000
Subscriptions 150 1,800
Financed Renovation 750 9,000
Hardware Leases 2,200 26,400
Equipment Repair 250 3,000
Loan Repayment 400 4,800
Lines of Credit 300 3,600
Website Setup 1,500 1,500
Website Hosting 30 360
Taxes 550 6,600
Bank Fees 75 900
Total Expenses $ 14,580.00 $ 158,460.00 Net Income or Loss $ (6,955.00) $ (74,760.00)

Max $ 3,800.00 $ 45,600.00 $ 2,800.00 $ 33,600.00

Min $ 30.00 $ 360.00 $ 25.00 $ 300.00

Information from
http://www.dblpro.info/index.php/profit-center/lan-center-finance
 Sean Ingerson, Morgen Perrion, Rachael West, Julie Heard

Gaming LAN Center

Sample Financial Overview
=DATE(2007,5,20)
Expenses Monthly Average Annual Average Income Monthly Average Annual Average
Rent/Leases 1500 18000 Membership 2800 33600
Payroll 3800 45600 Hourly Fees 1500 18000
Power 450 5400 Entry Fees 1850 14400
Telephone 250 3000 Internet Advertising 25 300
Concessions 350 4200 Party Rental 800 9600
Internet Services 125 1500 Concessions 650 7800
Game Software 250 3000 Total Income =SUM(F5:F10) =SUM(G5:G10)
Marketing 1400 16800
Game Content Provider 250 3000
Subscriptions 150 1800
Financed Renovation 750 9000
Hardware Leases 2200 26400
Equipment Repair 250 3000
Loan Repayment 400 4800
Lines of Credit 300 3600
Website Setup 1500 1500
Website Hosting 30 360
Taxes 550 6600
Bank Fees 75 900
Total Expenses =SUM(B5:B23) =SUM(C5:C23) Net Income or Loss =F11-B24 =G11-C24

Max =MAX(B5:B23) =MAX(C5:C23) =MAX(F5:F10) =MAX(G5:G10)

Min =MIN(B5:B23) =MIN(C5:C23) =MIN(F5:F10) =MIN(G5:G10)

Information from
http://www.dblpro.info/index.php/profit-center/lan-center-finance
 Sean Ingerson Morgen Perrion, Rachael
Annual Expense Report West, Julie Heard

Expenses Annual Average

Website Setup $1,500
Website Hosting $360
Telephone $3,000
Taxes $6,600
Subscriptions $1,800
Rent/Leases $18,000
Power $5,400
Payroll $45,600
Marketing $16,800
Loan Repayment $4,800
Lines of Credit $3,600
Internet Services $1,500
Hardware Leases $26,400
Game Software $3,000
Game Content Provider $3,000
Financed Renovation $9,000
Equipment Repair $3,000
Concessions $4,200
Bank Fees $900

Wednesday, April 21, 2010 Page 1