Business Plan on Setting up a Gaming Zone

Prepared for:
Hasan Shirazi
Faculty, School of Business
North South University

Prepared by:
Ashfeque Us Salaheen 102 0172 030
Shuridul Karim 102 0215 030
Ashikur Rahman Ashik 102 0202 030
Md. Sirajum Munir 091 0138 030
School of Business
North South University

North South University

May 2, 2014
 Letter of Transmittal

May 2, 2014

Hasan Shirazi
Faculty, School of Business
North South University

Subject: Submission of Business plan on setting up a gaming zone.

Dear Sir,

We have completed the business plan that you had asked us to prepare on a detailed
analysis of setting up a entrepreneurial business.

We have had a great learning experience working on this term paper and we have gained
insights and knowledge which we can take forward to our future career business paths.

We want to thank you for giving us this opportunity to put our hard work on paper and
learned a lot.

Thanking you,

Ashfeque Us Saleheen

Shuridul Karim

Ashikur Rahman Ashik

Md. Sirajum Munir

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Executive Summary

Our proposed business plan is to set up a gaming zone in Dhaka city. In the last few

years, a tremendous growth in multiplayer gaming in Bangladesh is observed with the

support of gaming cafes establishing across the country. To promote internet gaming in

Bangladesh and to present an improved flavor of gaming to the game-mad young

people of Dhaka city we are planning to introduce Zone Zero at Nikunjo 2. Our unique

selling proposition is the introduction of PS3 and Xbox 360 games with a totally gaming

environment like never before seen in Bangladesh. As per our feasibility analysis and

primary research we found that there is a huge market for this sector and we would like to

tap this area of business. For the first two years of business operation there would be a

limited loss but after that profits will be generated.

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Table of Contents
1.0. Purpose of the business .....................................................................................................1
2.0. Project Profile...................................................................................................................1
3.0. Project Brief .....................................................................................................................1
4.0. Feasibility Analysis ..........................................................................................................2
4.1. Product Feasibility ........................................................................................................2
4.2. Target Market Feasibility ..............................................................................................2
4.3. Organizational Feasibility .............................................................................................3
4.4. Financial Feasibility Analysis .......................................................................................4
5.0. Gaming Zone ....................................................................................................................7
6.0. Market Entry Timing ........................................................................................................7
7.0. Proposed Business Legal Status ........................................................................................8
8.0. Founders Agreement .......................................................................................................8
9.0. Project Capacity and Rationale .........................................................................................8
10.0. Starting a Successful Gaming Zone Business ................................................................9
11.0. Getting the Appropriate Funding ................................................................................. 10
12.0. Hiring employees ........................................................................................................ 10
13.0. Advertise & Market .................................................................................................... 10
14.0. Brand Elements of the Business .................................................................................. 11
14.1. Name ....................................................................................................................... 11
14.2. Logo ........................................................................................................................ 11
14.3. Tagline .................................................................................................................... 11
15.0. Conclusion .................................................................................................................. 11
Appendix ....................................................................................................................................1

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1.0. Purpose of the business
The objective of Zone Zero is primarily to facilitate young generation to provide them
entertainment in the form of experiencing live multiplayer gaming with different
opponents. The project pre-feasibility may form the basis of an important investment
decision and in order to serve this objective, the document/study covers various aspects
of project concept development, start-up, and production, finance and business
management.

2.0. Project Profile

The project is about starting the business of a Gaming Zone at Nikunjo 2, Dhaka. The
proposed plan is to offer complete package of LAN gaming facilities for gamers.
3.0. Project Brief

The proposed business report focuses on establishment of a Gaming Zone. A console

Gaming Center is a business where one can use a console connected over a LAN to other
console, primarily for the purpose of playing multiplayer console games. Use of these
game consoles costs a fee, usually per hour or minute; sometimes one can have un-
metered access with a pass for a day or month, etc. It may or may not serve as a regular
caf as well, with food and drinks being served. Because there is a restaurant in the
ground floor of our proposed business site named Trust Shwarma House. The project
would serve as a place where game lovers could play and enjoy the LAN gaming at best.
Initially the project is proposed to attract youngsters but after its maturity, LAN gaming
tournaments at national level could also become a major part of its customer base. The
main features of the project would include lavish technology, clean environment,
superlative sitting arrangements, refreshments and other basic entertainment facilities.

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4.0. Feasibility Analysis

Our proposed business plan is setting up a gaming zone in Dhaka city. According to the
diagram we have conduct feasibility analysis.

4.1. Product Feasibility

We have undertaken a research based on the desirability and demand of our proposed
business project among our target group. Most interestingly they are interested to have a
controller based gaming zone in Dhaka city. It will be a great opportunity for us to taps
this business sector.

4.2. Target Market Feasibility

Our target group is the people ages are 13-25. So as per the research we found out that
this market is attractive among our target group. Console gaming is becoming one of the
most rapidly increasing industry in all over the world. By 2010, the online game market
is expected to reach $4.4 billion, up from $1.1 billion in revenues last year around the
world. That figure is based on interviews and estimates of different segments of the game
industry including publishers, distribution services, casual Web-based services, and also
derivative revenues like in-game advertising and commodity exchange. Supporting these
revenues are gamers who spend an average of 18.5 hours per week playing games, and 70
percent of gamers take part in multiplayer mode online. In comparison, console gamers
play an average 13.6 hours per week, portable games are played 8.9 hours on average,
and mobile games about 4.6 hours.
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 4.3. Organizational Feasibility
Key Success Factors/Practical Tips for Success
Location plays the most important role for such a project to attract maximum
gamers, which is at Nikunjo 2. Because students of several universities like NSU,
AIUB, EWU, BRAC etc are living there and have access to this area.
One of our partners is trained computer administrator, he will supervise the overall
project regarding technical sector.
Awareness amongst the general people would attract more customers therefore;
use of proper marketing techniques is important.
Quality of refreshment services and cleanliness of the vicinity would attract more
gamers.
Arrangements of regular tournaments.
Variety of games for every age group.
Use of up-to-date game stations with latest equipments.

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 4.4. Financial Feasibility Analysis

Pro-Forma Income Statement

Zone Zero
For 2014 through 2017

2014 2015 2016 2017

BDT BDT BDT BDT
Gross sales 1,000,000.00 1,300,000.00 1,800,000.00 2,000,000.00
Less sales returns and BDT BDT BDT BDT
allowances 200,000.00 230,000.00 280,000.00 320,000.00
BDT BDT BDT BDT
Net Sales 800,000.00 1,070,000.00 1,520,000.00 1,680,000.00

COST OF SALES
BDT BDT BDT BDT
Goods purchased 120,000.00 165,000.00 185,000.00 190,000.00
BDT BDT BDT BDT
Total Cost of Goods Sold 120,000.00 165,000.00 185,000.00 190,000.00

BDT BDT BDT BDT

Gross Profit (Loss) 680,000.00 905,000.00 1,335,000.00 1,490,000.00

OPERATING EXPENSES
Selling
BDT BDT BDT BDT
Advertising 50,000.00 50,000.00 50,000.00 50,000.00

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 BDT BDT BDT BDT
Depreciation 100,000.00 100,000.00 100,000.00 100,000.00
BDT BDT BDT BDT
Other 25,000.00 25,000.00 25,000.00 25,000.00
BDT BDT BDT BDT
Total Selling Expenses 175,000.00 175,000.00 175,000.00 175,000.00
General/Administrative
BDT BDT BDT BDT
Salaries and wages 84,000.00 84,000.00 96,000.00 96,000.00
BDT BDT BDT BDT
Rent 400,000.00 300,000.00 360,000.00 360,000.00
BDT BDT BDT BDT
Utilities 600,000.00 600,000.00 600,000.00 600,000.00
BDT BDT BDT BDT
Office supplies 12,000.00 12,000.00 12,000.00 12,000.00
Total General/Administrative BDT BDT BDT BDT
Expenses 1,096,000.00 996,000.00 1,068,000.00 1,068,000.00
BDT BDT BDT BDT
Total Operating Expenses 1,271,000.00 1,171,000.00 1,243,000.00 1,243,000.00
(BDT (BDT BDT BDT
NET INCOME (LOSS)
591,000.00) 266,000.00) 92,000.00 247,000.00

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For the operation of Zone Zero the required cost of the project are stated in tabular form

Units Details Price (in Taka)

Rent with Three Months Advance 100,000
TV
10 40 inches 400,000
10 32 Inches 300,000
60 Controller 210,000
60 Chairs 120,000
20 Table 20,000
1 Laptop 50,000
20 Console 400,000
4 A/C 300,000
6 Fans 24,000
1 IPS 150,000
Decorations & Miscellaneous Expenses 200,000
Cash in Hand 126,000
Total 2,400,000

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Minimum System Requirement

Walton LED TV
PlayStation3 System 500GB
DUALSHOCK3 wireless controller
Xbox 360 Console 500 GB
Xbox 360 Controller
AC power cord
AV cable
USB cable
Headphones
Speakers

5.0. Gaming Zone

In the last few years, a tremendous growth in multiplayer gaming in Bangladesh is
observed with the support of gaming cafes establishing across the country. To
promote internet gaming in Bangladesh and to present an improved flavor of
gaming to the game-mad young people of Dhaka city we are planning to
introduce Zone Zero at Nikunjo 2. Our unique selling proposition is the
introduction of PS3 and Xbox 360 games with a totally gaming environment like
never before seen in Bangladesh.
6.0. Market Entry Timing

Since gaming activities take place all around the year and Gaming Zones operate in a
closed environment with controlled temperatures, therefore, there is no need to analyze
market entry timings in any aspect. However, for such a business to take a boost-up start,
the investor may launch the formal operations immediately after the start of the winter
vacations.

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7.0. Proposed Business Legal Status
Although the legal status of the business tends to play an important role in any setup, the
Gaming Zone business is proposed to be operated on a partnership. Also less
complications and costs are involved informing, administering and running such a setup
and the tax rates applicable for such arrangement are lower than private or public
limited.

8.0. Founders Agreement

As per the founders agreement all the partners have agreed to the following clauses:

Job roles of the Partners.

Ashfeque Us Salaheen: Technical Sector
Ashikur Rahman: Marketing Sector
Shuridul Karim: Finance and Economic Sector.
Md. Sirajum Munir: Management Sector
Profits and losses will be shared equally.
In case of liquidation all will be liable to their proportion of investment.
Conflict will be resolve through peaceful dialogues.

9.0. Project Capacity and Rationale

The project is proposed to have twenty (20) separate consoles stations/game stations at
start. After projects maturity and especially during the tournaments, the gaming zone
could entertain a wider base as required.

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10.0. Starting a Successful Gaming Zone Business

From the last few years, information technology has spread in the country with fast pace
and more and more IT related ventures and businesses are popping up in different cities
of the country. Computer gaming has received popularity amongst the game lovers in the
recent times and therefore, gaming zones are established in major cities mainly in the
capital of the country to take the advantage of the supply gape. Since gaming zones are
becoming a common business venture and with less capital induction and higher returns,
people must also enjoy running them. However, all of those advantages come at a price
building/establishing and operating such a structure from scratch and that too for the first
time is not an easy task. It is a hard process and the reality is that many gaming zones fail
in their first year of business due to improper planning and forecasting. But rest assured
there are ways to reduce the risk of becoming another statistic. Following are some of the
handy tips that can help run a successful gaming zone establishment in Dhaka city:

Many successful business owners have said that the best way to prepare for
owning a similar setup is by working in one. Working in the IT industry and
learning the basics is an important first step to becoming a successful owner.
Knowing the target market before starting planning will not only help the investor
solidify his/her overall services but it will also help determine the location, decor
and the overall atmosphere of the gaming zone.
Like any other type of business, a gaming zone will need a concise business plan.
This plan should include but is not limited to: the overall concept and goal of the
business, specific financial information and projections, a description of the target
market, the services, and pricing, equipment and employee details, advertising and
marketing plan, and a potential exit strategy.

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11.0. Getting the Appropriate Funding

The business plan will help the investor recognize how much money he/she will
need to start a gaming zone. If unsure about how much money will be needed
upfront, talking to other similar business owners can help project the expected
start-up costs.
Here we will raise 2.4 million (20 Lakh) Taka for funding the business, each of the
four members will contribute 6 lakh initially for setting up the business process.

12.0. Hiring employees

Initially we will hire two security guards and a computer specialist for Zone Zero.
Each of us will also supervise and monitor the work of these employees and if
required will recruit more depending on the business.

13.0. Advertise & Market

Every business needs a comprehensive marketing plan and such a setup that never
has been well promoted before certainly would need a lot of concentration for its
proper introduction in the market. After determining marketing budget, billboard
advertising, flyers in newspapers, and local cable TV advertising will be
undertaken. We will create a Facebook page to get feedback from our potential
customers and review advises and takes corrective actions.

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14.0. Brand Elements of the Business
14.1. Name
Zone Zero
Reason of naming is:
It is short
Easy to recall
Easy to create awareness
Attractive
Relative

14.2. Logo

14.3. Tagline
Where Everyones Equal

The theme of this tagline is to inspire every player to learn that not a single person is
strong enough but is equal to give a fight back.

14.4. Pricing
We will charge 50 taka per person for 1 hour. A group of at least 4 people are allowed to
play in a single console.

15.0. Conclusion
We will try to execute this business plan. For any reason if the business plans fail then we
will conduct market research and take essential steps according to the market research.

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Appendix
Topic: Business Plan on Setting up a Gaming Zone

Target group: Young Generation

Dear Respondent,

We are students of North South University doing a survey on Business Plan on Setting up a
Gaming Zone for the partial fulfillment of MGT 368: Entrepreneurship. It will take a few
minutes of your time. Your response will be a great help in accomplishing the study. However
this is only for academic purpose and will not be disclosed elsewhere. Thank you.

Instruction: Please tick () the answer of your choice.

Age:

1. What do you prefer for your entertainment?

a. Playing PC/ console games
b. Playing out door games with friends
c. Going out with friends
d. Watching movie and TV
e. Reading story books
f. Others..

2. How much time you want to spend for your entertainment?

a. 1 hour
b. 2 hours
c. 4 hours
d. 5 hours
e. As long as I will
f. Specify your choice..

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3. Are you familiar with console gaming(x-box, play station)?
a. Yes
b. No

4. Do like playing console games?

a. Yes
b. No

5. Would you like to spend some of your time for entertainment if a full fledged gaming
service is established at your convenience?
a. Yes, defiantly
b. Not interested
c. Occasionally

6. How much time you want to spend for this service?

A. At least an hour
B. All of my leisure time
C. No time
D. Specify your choice..

7. How much money you prefer to spend for this gaming service?
a. 150-200 tk
b. 200-300 tk
c. 300-400 tk
d. 400-500 tk
e. 500- more
f. Specify your price preference.

8. Would you want a gaming platform like this in your area?

a. Yes, that would be great
b. No, totally unnecessary
c. Better to have one for time pass
d. Indifferent

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 9. How often you want to visit here?
a. Every time I get time
b. Very frequently
c. Once a week
d. Specify your preference..

What do you prefer for your entertainment?

f. Others..

e. Reading story books

d. Watching movie and TV

c. Going out with friends

b. Playing out door games with friends

a. Playing PC/ console games

0% 5% 10% 15% 20% 25% 30% 35%

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How much time you want to spend for your entertainment?

35%

30%

25%

20%

15%

10%

5%

0%
a. 1 hour b. 2 hours c. 4 hours d. 5 hours e. As long as I f. Specify your
will choice..

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How much money you prefer to spend for this gaming service?

40%

35%

30%

25%

20%

15%

10%

5%

0%
a. 150-200 tk b. 200-300 tk c. 300-400 tk d. 400-500 tk e. 500- more f. Specify your
price
preference.

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Would you want a gaming platform like this in your area?

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
a. Yes, that b. No, totally c. Better to d. Indifferent
would be great unnecessary have one for
time pass

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