I. Executive Summary
This Section's Contents
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Business Overview
[Company Name] is a new arcade located in downtown [location]. We offer a variety of games and activities to enjoy, including vintage arcade games, skill-based games, and modern gaming experiences. Customers can also enjoy our food and drink offerings as they play as well as purchase select merchandise. The arcade is open seven days a week from 11:00 a.m. to 10:00 p.m. allowing both families and adults the opportunity to frequent our establishment.
Products Served
[Company Name] will provide numerous games to entertain our customers. The games will range from old-school classics to the hottest new releases. Some example games include:
- Pac-Man
- Paperboy
- Street Fighter
- Mario Bros.
- Mario Kart
- Dance Dance Revolution
- Pinball
We will also offer a wide selection of food and drinks for customers to enjoy while they play around the arcade. Customers can also purchase merchandise with our logo and business name to show others their love for our arcade.
Customer Focus
[Company Name] will serve the residents of [location] and the surrounding areas. The demographics of these customers are as follows:
- 120,492 residents
- Average income of $55,000
- 42% married
- 36% with children under 18
- Median age: 35 years
Management Team
[Company Name] is led and run by [Founder’s Name], who has worked in the industry for [X] years. [Founder’s Name] has managed some of the most popular arcades and similar establishments throughout the region. During this time, he has gained an in-depth knowledge of all aspects of an arcade business, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides of the industry.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There are very few arcades in the community, despite there being a huge population that would be interested in such an establishment. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when it launches.
- Our location is in a high-volume traffic area and will thus be highly convenient to a significant number of passersby.
- The management team has a track record of success in the arcade business.
- The arcade business has proven to be a successful business in the United States.
Financial Highlights
[Company Name] is currently seeking $550,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $250,000
- Equipment and machinery: $150,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
