Company Profile

Business Overview

Next Dimension Arcade idea was created to allow customers to experience their favorite types of
games by being directly in the game. Next Dimension is to give people an enjoyable time and the
experience to all different types of games and, gaming systems. Our customers can play arcade
games, board games, and virtually reality games all while enjoying a nice meal. This business will
allow people around Durham Region to see and, experiences something new not like anything else.
Creating an arcade, a restaurant, tables to play board games, and specific rooms to experience virtual
reality.

Next Dimension Arcade is planning to establish in 01/06/2018

A Next Dimension is a place where anyone can experience the generation of games from the
past, present and, future. A place to experience something new, to kill time, and to see how the
technology of gaming system adapted over the past few years. This is great for people who
lives far from the city, my business would be convenient for college/university students and,
other towns nearby.

Next Dimension Arcade is a service business. The service my business will provide is the
experience to try a virtual reality game where people can use their actual body to move their
character in the game. (4 rooms/stages allowing 1-2 people to play Virtuix omni either 30, 60,
or 90 min) -As well as, some arcade games and, games from the present gaming consoles like

NEXT DIMENSION ARCADE

the Xbox One, Wii and, PlayStation 4 on a flat screen TV. Another service my business will
contain are the option to purchase food and, beverage (including alcoholic drinks) and, board
games.

usiness Plan
Company History
This business idea was inspired by the popularity and the acceleration of the technology for
the gaming industry. See how real people can indirectly be a part of a game. Letting the
players experience and take control on the game more than through a controller and a TV but,
though VR. Given the Idea and perspective that players can live and act freely in a virtual
world. Players will have the sensation of being in "The Next Dimension|". This business will
give the customer to experience the different generation of games and gaming systems from
the past, to present and the possible future. A place with food, drinks, and entertainment like
games. A place where a group of friends can call a "hang out place". A next dimension is a
Jose place
Hernandez
where, a person can experience games old and new, with food and drinks throughout the
day and late
289-600-3311 at night.
Hernandezjose1917@hotmail.com
Next Dimension Arcade

Management

The owner, Jose Hernandez will dedicate his future to run the business throughout a day-to-
day basis. With the support from relatives. The owner Jose Hernandez will hire relative and in
the future business hire throughout the community to run the business during his absences.
With his sales experience in the field for 8 years and brothers connection with some investor
for Amway, as well as connections with people at staples to get business supplies. For running
some gaming systems and the gaming computer I have technician friends to build and/or
repair the computer to run the games.

Location

Next Dimension Arcade will be store front. Next Dimension Arcade will be located at
Oshawa. I selected this location because of my target market. The population in this area both
males and females between the ages of 18-25 are higher in Oshawa then the rest of Durham
Region. As well as, there is less competition farther away from the city. Another reason
Oshawa is a great location is because for my target market; there is a college and university in
Oshawa with is much of my target.

Legal Structure

Next Dimension Arcade is a haven't decided.

I would like to be a sole proprietorship because this allows me to be more independent a
starting a business would be easier to manage myself. Also, it will allow me to manage the
profit and control by my business. However, a partnership would be another structure to
consider. If I had a strong and trustful partner two people oversee the business, less stress,
shared liabilities and, a high being capital than starting as a sole proprietorship.

Next Dimension Arcade is interested in securing trademarks.

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Next Dimension Arcade

Marketing

Industry Profile & Outlook

Next Dimension Arcade operates primarily in the Amusement and recreation industry.
This Amusement and recreation industry is to provide a unique experience and service to
customers. Operating revenue for the amusement parks and arcades industry group increased
6.2% to $522.2 million in 2015, while operating expenses decreased 3.2% to $449.6 million.
This resulted in a 13.9% profit margin. Salaries, wages, commissions, and benefits totaled
$154.9 million, down 2.3% from 2014.
This service industry works by providing an excellent customer service and to give a great
enough experience to come back. The Amusement and recreation industry is also an industry
that will cost a fair amount to start. The cost for the facility, employees, arcade, rooms, and
virtual set.
This Amusement and recreation industry operates revenue for the "other amusement and
recreation industries" group grew by 5.8% to $9.0 billion in 2015. During the same period,
operating expenses increased 6.6% to $8.6 billion, resulting in an operating profit margin of
3.8%. The industry is slowing growing compared to the past. The Gaming industry in Canada
has been growing much fast and bigger these past few years as well. The industry now is
putting $3 billion Canadian GDP. The "all other amusement and recreation industries" include
marinas, bowling alleys, recreational sports teams, observation towers and all other related
activities. These industries generated operating revenue of $2.6 billion in 2015, resulting in a
6.3% profit margin.
Some prediction is that the gaming industry will continue to grow. Nerd stuff will start to be
the mainstream and become popular in the future. Operating revenue for the amusement parks
and arcades industry group increased 6.2% to $522.2 million in 2015, while operating
expenses decreased 3.2% to $449.6 million. This resulted in a 13.9% profit margin. Salaries,
wages, commissions, and benefits totaled $154.9 million, down 2.3% from 2014. The
amusement parks and arcades industry group's operating revenue increased 2.8% to $488.2
million in 2014, while operating expenses increased 3.0% to $461.1 million. Thus, the
industry group generated a 5.6% operating profit margin. Salaries, wages, commissions and
benefits totaled $157.3 million in 2014, up 2.7% from 2013

Local Market
I would like to start in the middle of Durham Region, Oshawa. The competitors in Oshawa
are mainly small business like Leisure Bowling Lanes, Laser Quest, and Ned's Fun World.

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Next Dimension Arcade

The closest Dave and Buster is located in North Toronto. Oshawa has the largest population of
youth per the latest report from Durham Region Department of Health Statistic.

Key Competitors / SWOT Analysis

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Next Dimension Arcade

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Target Market
Next Dimension Arcade is focused on selling to Consumers (B2C).

Next Dimension target market is: -Single or married males or females over the age of 19
(demographics) -Students planning study game development, gaming design or game
development tester. (demographics) -Beer drinkers who are interested in trying new things
and experimenting with new technology (lifestyle) -Enjoys playing any games (Mobile, Video
games, and arcade games) (Lifestyle) -Student income: $30,000 (demographics) -Located in
Durham Region Bowmansville, Courtice, Oshawa, Whitby, Ajax, and Pickering (scope)

Keys to Success
The key to success for this business is to take advantage of this generation of youth
fascination on something new. Using the new system like VR to get the attention of the target
market and, it will be necessary to maintain visibility in the marketplace through involvement

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Next Dimension Arcade

in local gaming communities, gaming tournaments, events, and festivals. They will augment
this with online the use of social media. Building a community with the gaming market.

Next Dimension strives on allowing our market to have the sensation of once you enter you
feel like you are in a different world as well as, supporting the gaming community. Though
listening to the community on types of games from new game developers or new release.
Also, Next Dimension will run tournaments on popular games either monthly or every few
months. Just like L Next Dimension Arcade will steadily improve the facilities space to allow
more room for new and, fun games Building a community with the market.

Sales & Marketing

Pricing Strategy
Dave & Buster's is the most similar business to Next Dimension Arcade. How they charge for
their product/service is by which has a game card payment system called Power Card. A
customer simply changes their Power Card in-store at a Charging Station kiosk or at the front
desk. The Power Card itself cost $2 to keep it and, same cost to replace it then the customer
adds "CHIPS"(basically credits that allow the customer to swipe their card and play games or
to get tokens or to use on anything that has a card swipe machine to activate it) onto the card.
The dollar amount for the chips range from $10 to $100, and the higher the dollar value
purchase, the better value. For instance, $10 gives you 48 chips, $20 gives you 100 chips, $75
gets you 550 chips, and $100 gets you 750 chips. So, for the best values, the $75 and $100
amounts give the most chips for the spent money.

The way I will charge for my service is by producing something like Dave & Buster is by
integrating an electronic card:
-Customer purchases a $2 play card for first comers
-Afterward, purchase play point to play. Play points vary from $12-$100 and, varies for the
amount if points need to play
-VR $5 per person per 1 hour (not including Play Point)

The price is outlined to reflected on an affordable unique experience in Durham Region.

Given the business, a way to compete against another competition and, make a profit.

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Next Dimension Arcade

Marketing Strategy
The effective way to reach the target market by using: -Social Media (Facebook, Twitter,
LinkedIn, etc.) Creating a presence online to gain awareness. Posting events, pictures of the
games, and connecting with the community -Sponsoring events or teams. Supporting the local
community will gain awareness and, advertisement. Supporting either local teams (Sports
team or Gamer teams) or gaming competition, events/convention as well as,
charities/fundraisers. -Direct Mailing The last method is to send out postcards in throughout
Durham Region. To attract the market the postcard will contain an offer for the grand opening
of Next Dimension Arcade.

Three Marketing Strategy

Social Media:
- The marketing strategy is to create a social media games on the popular platforms on
Facebook, Twitter, LinkedIn. Connecting us directly to communities on the web that are
potential customers. Creating the social media pages would be made by the owner, and there
is no cost on creating the pages. To advertise on Facebook and Twitter varies base on the bids
place to put it on the top of customer news feed.
Sponsoring:
-The price of sponsoring varies based on the deal you make with local teams either in the
sports, charity, and event. List of all the sports team, charity, or club can be found out online
or through the city. Connect with the selected few will be directly in person to discuss a
sponsorship.
Direct Mail:
- Contacting Canada Post to unaddressed mail postcard or flyer to the target market (Durham
Region). Cost will approximately $500 to delivery all over Durham to my targeted market.

Goal for Next Dimension

One goal Next Dimension Arcade is looking to achieve is to gain a stronger presence on
social media. Creating a Facebook, Twitter, Instagram, snap chat and, LinkedIn. Getting 300
likes and, 200 shares on Facebook, 250 followers on Twitter, Instagram 100 likes, 100
followers on snap chat, and 15 networking connection on LinkedIn all within the first month
of operation. Gain approximately 1000 new customer a that knows my business and, gaining a
conversion rate 50-75% of those customers.
The second goal for Next Dimension Arcade is to gain attention within the community.
Gaining a minimum of 250 new customers every month within the year of operation. Using
marketing strategies to connect to the community through social media, community events,
hosting tournaments, and direct mailing.

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Next Dimension Arcade

The third goal is to start adverting to the target market in March 2018 4 months lead up to
gain awareness for the opening in June 2018.

Operations

Location
The business will be opening a storefront located downtown Oshawa near the university
UOIT and the General Motor Center. As well as, renting out storefront near the area. Hours of
operation will run to 11am-12am (midnight) Sunday-Thursday, 10am-2am Friday, and
Saturday, any person under 19-year-old can't stay after 9pm so older customers can drink
liquor.

Legal Issues
Next Dimension Arcade will anticipate the following legal issues:
- business licenses
- location & zoning by-laws
- health inspection
- intellectual property (i.e. patents, trademarks and copyright)
- operating licenses (i.e. child care centres, gas stations, etc.
- registering employees
The business will hire a lawyer to provide direction on licensing and insurance requirements
and to review all contracts with suppliers and employees.

Insurance Issues
Next Dimension Arcade requires insurance for owners, partners and key employees, insurance
for business property and earnings, liability insurance.

Human Resources
Next Dimension Arcade is planning to hire 1-10 full time and part time employees to run the
business. During the weekday and weekend during busy time in the day and the business
busiest seasons.

Staff:

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Next Dimension Arcade

- Customer Service and Operation: Operate front desk receiving payments from
customers. Providing customer service, answering questions, and answering the phone
or customers wanting to make any reservations.
- Cook: Creating small pub foods Technician- Ensuring gaming computers and, arcades
are operating correctly and, fix any problems.
- VR Supervisor: Watching people using the VR equipment aren't going to hurt or
damage anything or anyone around them.
- Security: Ensuring the safety of the other staff, equipment and, customer. Kicking out
any tipsy customers that are causing a disruption. As well, ensuring everyone after
9pm are a legal age to drink
- Bartender: Providing drinks to customer legal to drink alcohol.

Risk Assessment
Social media is one of the marketing strategies to help build awareness on the internet. A
potential risk is not presenting a strong enough awareness online. Increasing funds and
pushing more post online might be able to gain more awareness, using trending topic to be
noticed. As well, maybe allowing the customer to create an account gain their email in store
or, creating an account using their social media account. Next Dimension marketing plan is to
use sponsorship for the local sports team, charities, and events. To gain awareness within the
market. However, if this strategy fails due to letting interest, or now being able to gain a
sponsee. A way to counter this is to do primary research and see among those three areas
(sports/gaming team, charities/fundraisers and, events/conventions) show some success on
gain awareness and, build around that specific area.

Next Dimension Arcade strives on providing a fun and affordable experience. As well as,
communicating to the public that this business will bring a unique experience with the staff
and, games. If so some reason, Next Dimension fails to give the people that sensation, Next
Dimension will train and educate current and new staff members to better communicate to the
public. As well, if Next Dimension Arcade fails to provide a 'unique experience' the owner
Jose Hernandez will connect with staff and, customer on must improve the experience and,
keep it up with trends. Helping improving on the experience given to the customer and, s

If Next Dimension is unable to make a profit in year 3, or if after year 3 Next Dimension
Arcade sales are less than $20,000 and not showing profitability. Next Dimension Arcade
would declare bankruptcy and close. The hired lawyer would handle this as would the
negotiation and selling off assets to repay any remaining small business loans.

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Next Dimension Arcade

Financials

Start-Up Costs & Break Even

Next Dimension Arcade s start up cost table can be found in the attached financial
spreadsheet that has been included as a separate document in the Appendix.

Sales Forecast
First month: Start of operation will begin in June 2017. Most the target market will be active.
The business expects a mid-range on sale though out the summer. Since the business is
opening at that time the forest can expect a slow begin in sales but, will steadily increase are
the summer progress. The main goal within the first month is forcing on gain awareness and
customers. Average Sale for Arcade: $22 per person/average sale (50 people per day x $=
1,100) Expect an increase in sale during weekends. Average person time: 2-3 hour of staying
the slow month is September-December (Fall, Winter) Pick up again in the Spring to the
summer. 50 people a day x average sale of $22 = $1,100/day x 7 days= $7,700 per week

Average Sale Year1. - $22

Year One Sales Forecast Including Assumptions

Month 1 - $33000.00 - The first month will be slow and focus on networking and advertising
to promote the business. However, it will also the end for most schools all around the areas

Month 2 - $39600.00 - With the right marketing, the sales will grow steadily over time.
Expect a 20% increase in July 2018

Month 3 - $47520.00 - The business plans to have another 20% increase 360 more customers
this month before the summer ends in August 2018.

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Next Dimension Arcade

Month 4 - $23760.00 - Month 4 (assuming its representing September) will decrease slightly
with students returning to school and work.

Month 5 - $5500.00 - Plan to get an event or tournament to get more attention. However, the
winter will be my dead seasons. Events for Halloween to still gain the customer.

Month 6 - $5500.00 - Month 6 (assuming its representing November) All students are in
school. Dead season more promotion and ads on social media to gain attention.

Month 7 - $11000.00 - Christmas slight increase with the Christmas break for the students.

Month 8 - $5500.00 - Classes resume. Majority of the market will be returning to school

Month 9 - $11000.00 - Classes are nearly done and, the weather improving.

Month 10 - $13200.00 - sales will be slow on weekdays but, somewhat high during the
weekends. As well as, March Break to increase sales.

Month 11 - $66000.00 - Sales will be a slow increase on weekdays but, somewhat high during
the weekends mid-April 2018. At the end of April, there will be a spike of the customer in the
target market because classes for college and university students will be over.

Month 12 - $55000.00 - Summer has begun a large amount of customer will become to Next
Dimension. This month will focus on events, and marketing

Average Sale Year 2: $30

Cashflow
Next Dimension Arcade s detailed cashflow for year 1 and year 2 can be found in the
attached financial spreadsheet that has been included as a separate document in the Appendix.

Income Statement
Next Dimension Arcade s income statement can be found in the attached financial
spreadsheet that has been included as a separate document in the Appendix.

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