INTRODUCTION

Entertainment has gained a lot of attention nowadays, especially going and eating

outside, and travelling. Experiencing new things with friends makes the love in friendship

grow fonder. However not everyone can afford, especially almost of it involves

technology such as online games, and travelling comes with a high cost.

Considering the fact that kids, teens, and even adults have been into different kind of

activities as an entertainment, researchers have conducted a feasibility study and found a

new way to have leisure time with families and friends, even with strangers, without

costing a lot of money.

Escape Room is an extraordinary puzzle game which is known internationally. It is

mysterious and fun at the same time. It is a great escapade for anyone who wants to take

a break from works, school stuffs, and promote camaraderie among the players. The

researchers would like to propose an establishment of this puzzle game at Mindanao State

University – Main Campus, located at Marawi City, Lanao Del Sur.

 I. Executive Summary

A. Name of the Project

The researchers have given the proposed establishment by the name “Break Free”. The

said proposed business’ name is synonymous to the word “escape “which is the whole

concept of the project, escaping the rooms.

B. Location of the Project

As the researchers have found it more convenient to the target customers, MSU-Main

Commercial Center is chosen to be the location of the proposed business. It is the center

of the university and it is mostly the place where students, families, vendors, and even

professionals meet.

C. Brief Description of the Project

Escape room games are live-action adventure experiences in which participants are

locked in a room, and try to escape within the allotted time by discovering clues and

puzzles. There are hints and clues everywhere in the room. It is the player’s awareness,

capability and logical thinking towards their environment, and of course, helping one

another will make them win the game. Game rooms usually have a theme, whether

historic, futuristic, or completely original.

 D. Important highlights

1. Marketing Aspects

The target customers are students of Mindanao State University - Main Campus, the

residents inside the campus: random group of friends and families, and visitors from the

outside of the said university.

2. Technical Aspects

Escape Room works the same way as any other entertainment business. To be one of

the players, you'll have to pay the entrance fee. The game begins when the players are

already inside the room they have chosen, and the moment the game master’s cue.

3. Organization and Management Aspects

The business will only start its operation if the feasibility study has been approved.

After approving the proposed business, potential and willing partners are needed for the

formation of the business, financially and technically. For the business to be legal, it will

need an assessment for any legal documents such as registration of the name of the

business and approval from the government. The initial action after all the necessary

assessment is planning for a few important topics such as initial costs, objectives of the

business and target market. In addition, the acquisition of the needed assets such as plants,

properties & equipment, and capital contribution that the potential partners are willing to

give such as money, property, and industry. The “Break Free: Escape Room Game” will

be needing a General manager, Room Designers, Game Masters,& Utility workers for

maintenance
 The proposed business will be formed as a General Partnership, wherein all partners

are liable to the extent of their separate net assets, and with the intention of the partners to

divide the profits among themselves. For the management, it will be agreed by the

partners under the contract of partnership. The sharing of profits and losses is in accord to

the agreement of the partners.

4. Financial Aspects

The proposed business will approximately cost 700,000 that will come from

contributed capital of each partner’s savings, borrowings from the bank, and any

combination thereof.

5. Socio-Economic Aspect

Break Free can serve a wide variety of customers including students, employees, etc.

With the rising status on mentally unstable students or employees, Break Free offers

effective activities for distressing.

D. Conclusions and Recommendation

The proposed business is based on the forecasted income that will be earned from the

first operating cycle. According to the research and costing analysis provided herein for

the research proponents to conclude the overall feasibility of the project.

 II. ECONOMIC AND MARKET ASPECT

A. Market Description

The target customers are residence and students of Mindanao State University Main

Campus, which is located at Marawi City, the capital of Lanao del Sur, on the shores of

Lake Lanao and is accessible through land, air, and water. It is bounded on the north by

cities of Iligan and Cagayan De Oro, cities of Pagadian and Zamboanga on the east,

province of Cotabato on the southwest and city of Ozamis on the northwest.

B. Demand

People nowadays prefer to do more entertaining activities that the demand in the

Philippines has been recently raising, specifically in Manila. The entertainment from

computer games into 4D games have captured the interest of not just gamers, but almost

all of the members of the society.

Below are some of the popular escape games established in the Philippines:
 1. Indirect Customers

Indirect customers of Break Free: Escape Room are students from institutions other

than Mindanao State University – Main Campus, employees, families, groups of friends

and individuals outside the main location of the business.

2. Direct Customers

Direct customers are students of Mindanao State University – Main Campus,

employees or workers or vendors, and residence of the campus.

Below is our projected demand based on the number of interested customers:

Table 1: Projected Net Demand

Year Projected Net Demand

2019 11,786

2020 13,318

2021 15,050

2022 17,006

2023 19,217
 3. Historical Demand

Escape room games have been popular in foreign countries such as China, United

States of America, Ethiopia, Japan, South Korea, etc.

There are more than 2,300 escape room facilities in the United States.

Below are the following cities with the most escape games:
 C. Competitive Position

1. Direct Competitors

Escape Game is very popular in foreign countries, but not as much as in the

Philippines. As the researchers seek information from respondents of this study, this kind

of business involving recreational activity such as Escape Game is known to the public,

but has not yet existed in Marawi City.

2. Indirect Competitors

Places where Escape Room game has been productive are the following:

Table 2

Name of The Business Location

The Escape Hunt Experience Manila Makati, Metro Manila

Breakout Philippines Alabang Town Muntinlupa, Metro Manila

center

Lost Promenade San Juan, Metro Manila

Breakout Paragon Plaza Mandaluyong, Metro Manila

Mystery Manila – Jupiter Makati Makati, Metro Manila

Left Behind The Great Escape Ayala Mall, Vertis North, North Avenue

Lost SM North Towers Quezon City, Metro Manila

 Breakout Serendra Taguig, Metro Manila

Left Behind Marquee Mall Angeles, Pampanga

Mystery Manila Makati, Metro Manila

Breakout Greenbelt Makati, Metro Manila

Breakout North Edsa: The Block Quezon City, Metro Manila

Breakout Katipunan Quezon City, Metro Manila

3. Marketing Strategy

For this proposed business, advertisements like posters are to be given to staff to

promote the business well, in radio station, and create a website for the Break Free:

Escape Room to reach out people inside and outside of the main location of the business

4. Projected Revenue

Table 3: Projected Revenue

Year Projected Net Demand Projected Revenue

2019 11,786 2,357,200

2020 13,318 2,663,600

2021 15,050 3,010,000

2022 17,006 3,401,200

 2023 19,217 3,843,400

III. TECHNICAL ASPECT

A. Service

The proposed Break Free: Escape Room intends to be a fun and safe game place for

all of its customers such as group of friends, families, and individuals. It provides

entertainment with a mystery twist that will help the players to improve their detective

skills, teamwork, and communication skills.

There will be a reward for every winner of one team that will be able to complete the

mission before the time limit.

B. Service Process

1. The entrance fee is P200 per head per hour.

2. The team or players will be assembled in a themed room and have one hour to

complete the mission and escape the room.

3. Before the players can start to play, they will have the option to choose from one

of the missions from the available rooms. Each escape room has its own unique theme.

The players get to choose their own adventure by selecting the mission they want to

challenge themselves to complete.

4. Once the players step into the escape room, their game guide, who is a Break Free

staff member that will help the players throughout the game, will make sure the players

understand clearly the rules and answers on what an escape room is and any initial

questions they have.

 5. Then a video will be provided to the players that explains the mission in full.

Once the video ends, the one hour timer starts counting down.

6. From then on, the players will be directly interacting with the objects and props in

the room to uncover all the clues to get out of the escape room.

7. For those who win the mission before the time limit will be given a reward
 SERVICE PROCESS FLOW CHART

Collection of the entrance fee of P200 per head

Players choose one of the missions from available

rooms

The team or players will be assembled in their

chosen themed room.

Instructions, rules and regulation from the game

guide will be given

A video starts which explains about the mission,

and after the video the timer starts counting down
and game will begin

Winner will be given a reward after completing the

mission before the time limit

C. Service Schedule

The Break Free will be opened every day except Friday for 9 until 11:30 in the

morning and will resume at 1:30 until 5:00 in the afternoon.

D. Floor Lay-Out

BREAK FREE FLOOR PLAN

 E. Location

The place of the business will be located at Diora’s building with 124 square meters at

upper commercial center of Mindanao State University Main Campus, Marawi City. The

one storey house and lot is valued at P368, 920 by one of the partners as her contributed

capital.

F. Utilities and Other Compliance Needs

The essential needs of this kind of business are the electricity and the water. An escape

game room needs a lot of lighting design since it is part of the game. In case of

unavailability of electricity, we will need a generator as a backup.

IV. ORGANIZATION AND MANAGEMENT ASPECTS

A. Pre-operating Activities

The table below shows the timetable of the project’s pre-operating activities using the

Gantt chart.

Table 4:

Pre-operating Activities Month

1st 2nd 3rd 4th 5th 6th
Preparation of feasibility study

Invitation of possible partners to

develop and implement the business.

Determination of contributed capital

Preparation of legal documents

 Registration of business and

acquisition of necessary

licenses/permits

Acquisition of necessary assets

Acquisition of human resources

Advertising/promotion

Operation of the business

Pre-Operating expense

Feasibility Study ₱15,000.00

Registration with BIR 500.00
Acquisition of Business Permits 10,000.00
Hiring and Training of Employees 10,000.00
Installation of Lights 2,000.00
Installation of Water 2,000.00
Total ₱39,500.00

B. Management during Operating Period

1. Type of Business

The proposed business will be a General Partnership where all partners are liable to

the extent of their separate properties. The purpose of this business, other than giving a

recreational activity and entertainment, is to derive a profit and divide them to the
partners. The profit and loss will be shared according to the partners’ contributed capital

under the contract of partnership.

2. Human Resources Requirements

To carry out the business in its functioning state, the managing partners must have

planned out the different roles that are needed to be fulfilled, and how much to budget the

employee’s salaries. An escape game room’s staffing requirements will be according to

how involved the operation is. Some escape rooms use mental puzzles, and static props to

attract and entertain customers.

The following are the needed staffs:

1. General Manager

The general manager runs the escape room’s day to day operations. This role may be

filled by any of the partners.

Initial Salary: PHP 15 000

Duties:

 Managing daily operations

 Manage staff, inventory, marketing

What to look for:

 Management experience

 Knowledge of escape room business

2. Escape room designer

An escape room designer creates the actual escape rooms, designing the props,

puzzles and mechanisms inside. Depending on how frequently the theme changes, this

position could either full, or part time

Initial salary: PHP 10 000

Duties:

 Creatively design and themed escape rooms

 Incorporate a variety of puzzles that are linked together towards the goal of

escaping the room

What to look for:

 Experience in the game design

 Creative thinker

 Experience creating systems incorporating elements of electronics, mechanics,

and design

3. Game Master

Initial salary: PHP 100/hr

Duties:

 May remain in the room with players for the duration of the game

 Ensure the players are safe and having fun throughout the game

 Energizing and motivating players

  Resets the escape room between games

What to look for:

 Positive attitude

 Excellent customer service skills

 Theatre/acting experience is a plus

4. Game Guide

He is the one who will be staying with the players inside the room.

Initial Salary: PHP 25/hr

Duties:

 Guide the players

 Instruct the players with the rules and regulations

5. Security guard

His duty is to keep the safety of everyone and for any trouble that might cause in

unexpected circumstances.

Initial Salary: PHP 7, 000

Duties:

 Safeguard the staff and the customers

 What to look for:

 Trained

6. Maintenance technicians

As guests try to solve the puzzles, they’ll use props in unexpected ways. A full or part

time maintenance technician is a way to make sure props are repaired; paint touched

up, and always prepared.

Initial salary: PHP 4 000

Duties:

 managing the business’s facilities

 Light repair work on paint, and props

What to look for:

 Experience in facilities maintenance

 General mechanical repair ability

THE ORGANIZATIONAL STRUCTURE

Managing Partners

General Manager

Escape Room Maintenance/ Escape Room Security Guard

Game Master Technician Designer
 ASSETS NEEDED

The table shows the required assets of the proposed business:

Table 5

Particulars Quantity Unit Cost Total Cost

Computers 3 ₱ 5,990.00 ₱ 17,970.00

CCTV Camera Package (w/ Monitor 1 12,999.00 12,999.00

Network Gear 5 1,549.00 7,745.00

Aircon 3 6,800.00 20,400.00

Extinguisher 6 1,250.00 7,500.00

Two-way Radios 3 12,404.00 37,212.00

Video Effects 5 2,592.00 12,960.00

Controllers (secret codes) 5 13,338.00 66,690.00

Telephone and Communication 6 1,986.00 11,916.00

Speaker (with microphone) 6 5,398.00 32,388.00

Ventilation 3 999.00 2,997.00

4-lite Panel 5 4,981.00 24,905.00

Start/Stop Buttons 5 1,868.40 9,342.00

Round Gauge 5 1,557.00 7,785.00

Door Locks 5 1,815.99 9,079.95

5 Number Color Coded Locks 10 777.99 7,779.90

Door Opener (Kit) 5 12,207.00 61,035.00

Color Piano Lights 10 2,594.50 25,945.00

Fluorescent Lights 7 2,593.50 18,154.50

UV Lights 5 25,944.95 129,724.75

Black light Pens 5 380.00 1,900.00

Puzzle Kit 5 19,449.50 97,247.50

Props 5 10,369.10 51,845.50

Trigger 5 3,632.50 18,162.50

Chairs 10 300.00 3,000.00

Tables 5 500.00 2,500.00

Closet 6 134.00 804.00

Ladder 2 2,400.00 4,800.00

White Board 3 2,000.00 6,000.00

LCD Projector 3 15,000.00 45,000.00

Stool Chair 3 700.00 2,100.00

Office Chair 8 2,500.00 20,000.00

Office Table 1 5,000.00 5,000.00

Generator 1 30,000.00 30,000.00

Materials 5,000.00 5,000.00

Toilet Bowl Set (w/ sink) 2 3,699.75 7,399.50

Flat Screen Television 1 5,000.00 5,000.00

Total ₱ 830,287.10

V. FINANCIAL ASPECT

A. Total Projected Cost

Total Projected Cost

Asset Needed ₱1,199,207.10

Pre-Operating Expense 65,280.00

Working Capital Requirement 1,111,154.00

TOTAL PROJECTED COST 2,375,641.10

 B. Sources of Fund

The main source of fund of the business is from the contributed capital of the partners:

Almairah Macadato Php 150 000

Nur-hanisah Barambangan 300 000

Zahara Bonal 200 000

Mahida Pumbaya 368 920

Total Php 1, 018, 920

C. Basic Assumptions

 Method used for annual depreciation is Straight Line Method

 Depreciation starts at the end of the first year of the operation

 All expenses incurred are paid at the time they are incurred or when they are

due

 Salaries of the employees increases as the net income of the business increases

by 5% annually
 VI. SOCIO-ECONOMIC ASPECT

A good business considers both its quantity and qualitative impact mutually to entity

itself and to its target customers/market. It must not only think of the profit it may earn

but the benefit it can enter to the society in which it will be operating as well.

Over the last year, there’s been worldwide growth in educational escape rooms, it

involves both physical and digital learning environment. It is an innovative way to bring

technology and critical thinking into the society, and the benefits are twofold: Games

have a history of promoting engagement in a learning environment, and the collaborative

elements help individuals develop social skills

Break Free: Escape Room is designed to provide recreational activities not just to

students but also to the society not below the age of 15 years old. In addition to, it is a

great and innovative way to bond with your friends and family members other than

staying in the house and keeping themselves busy with social media using their phones

and computers. In one way or another, it improves physical and mental capabilities of the

players.
 CONCLUSION

The researchers have concluded based on the survey conducted that the

implementation of the proposed business “Break Free: Escape Room” is a good

recreational activity. In addition, there is no existing the same recreational activity in the

chosen location of the business.

Furthermore, the main reason of establishing the proposed business is the feasibility

which is obtained through the projected financial statements. The proposed business

generated income in its first year of operation and increases in the next four years due to

the increasing growth of the demand, and the income project for the five years operation

is largely enough to cover all the expenses that the business might incur. Therefore the

research proponents concluded the overall feasibility of the proposed business according

to the research and costing analysis provided herein.

RECOMMENDATION

The research proponents recommend the establishment of the proposed business. It

has to be noted that the said business is a service-related entity, and the safety and

maintenance of the quality of the service is highly recommended.

APPENDICES
 SUMMARY SURVEY RESULTS

These are respondents who are familiar and not familiar with Escape room.
Reponse No. of Respondents Percentage
Yes 54 51.92%
No 50 48.08%
Total 104 100%

Therefore, there are more people who are familiar with an escape room rather than those
who doesn’t know about it.

These are respondents who are interested and not in visiting an escape room.
Reponse No. of Respondents Percentage
Yes 100 96.15%
No 4 3.85%
Total 104 100%

This table represents that there more people who are interested in visiting an escape room
game.
These are respondents who are willing and not to go extra travel just to experience
an escape room challenge.
Reponse No. of Respondents Percentage
Yes 70 67.31%
No 34 3.27%
Total 104 100%

These also represents that 67.31% of respondents are willing to go an extra travel just to
experience an escape room challenge.
These are the results of the what is most appealing regarding room logistics.
Reponse No. of Respondents Percentage
Pay to have the entire room 40 38.46%
Pay per person and let other 64 61.54%
people join the game with
you
Total 104 100%
These represents that the most appealing room logistics for those respondents are to pay
per person and let other people join the game with you.
These are the price level on which the respondents feel that is fair for an escape
room.
Reponse No. of Respondents Percentage
100-250 74 71.15%
250-350 12 11.54%
350-500 2 1.92%
500-850 16 15.38%
Total 104 100%

Therefore, more people are willing to pay P100 to P250 to play an escape room game.
These are the time when respondents feel to visit an escape room.
Reponse No. of Respondents Percentage
Daily 10 9.62%
Weekly 42 40.38%
Monthly 52 50%
Total 104 100%

This table represents that there are 40.38% people who feels to visit an escape room
weekly.
These are the minutes that the respondents who prefer to play for an escape room.
Reponse No. of Respondents Percentage
30 min 46 44.23%
45 min 18 17.31%
60 min 24 23.08%
90 min 16 15.38%
Total 104 100%

Therefore, 44.23% out of the total respondents prefers to play the escape room game for
30 minutes only.
These are the ideal team size that the respondents want.
Reponse No. of Respondents Percentage
1-3 22 21.15%
3-7 54 51.92%
7-12 14 13.46%
12-15 16 15.38%
Total 104 100%
 A total of 51.92% of respondents want to have a three to seven members in each team.
These are results of the people that the respondents want to play with.
Reponse No. of Respondents Percentage
Friends 86 41.35%
Family 42 20.19%
Co-workers 32 15.38%
Stranger 48 23.08%
Total 208 100%

Therefore, the people prefer to play with their friends and to experience playing with
strangers which will improve one’s social life.
These are the ways that the respondents want to be updated in a new theme, puzzle
challenge. Etc. of an escape room.
Reponse No. of Respondents Percentage
Break Free blogs, FB, 60 57.69%
instagram, twitter etc.
Personal message (text, 22 21.15%
messenger, email, etc.)
Break free Flyers posters 22 21.15%
and card
Total 104 100%

Therefore, more people want to be updated using Break Free blogs, FB, instagram,
twitter and etc.
Results of how important are the following in an ideal game of an escape room.
A. Not at all important
B. Slightly important
C. Important
D. Fairly important
E. Very important

A B C D E %
1. Unique Theme 16 6 14 18 50 46.30
2. Location 10 8 20 18 48 46.15
3. Level of immersion 6 8 30 22 38 36.54
4. Quality of Puzzle 8 6 14 20 56 53.85
5. Room Size 4 4 16 24 56 53.85
6. Game master and Customer service 8 4 14 16 62 59.62
7. Use of Technology 8 2 20 26 48 46.15
8. Scenery, Props and Decor 6 8 12 14 64 61.54
 According to the results above, the respondents gave a greater importance for scenery,
props and décor. Also, they gave importance for the game master and customer service
which will be essential to manage in an escape room game.
Results of how likely or unlikely would the following theme interest the respondents
as a concept to an escape room.
A. Highly likely
B. Likely
C. Unlikely
D. Highly unlikely

A B C D %
1. Themeless 14 32 28 30 30.77
2. Library/School 30 42 26 6 40.38
3. Bomb Defusion 30 44 22 8 42.31
4. Detective/Police/Crime 54 26 16 8 51.92
5. Historical 44 30 24 6 42.31
6. Horror 46 34 20 4 44.23
7. Medical/Asylum 48 32 22 2 46.15
8. Military 38 30 28 8 36.54
9. Music 46 18 30 10 44.23
10. Office 20 36 28 20 34.62
11. Prison 32 38 20 14 36.54
12. Science 36 36 22 10 34.62
13. Space 30 40 32 2 38.46
14. Unclear 12 28 42 22 40.38

These table displays that most people prefers to play a detective or police or a crime
theme in an escape room game.
BREAK FREE
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