Mr.H’s Wii World Business Plan
Mr. H's Wii World
Created by Randolph Huynh
Period 5
Address: 6468 Za Zu Pitts Ave.
Las Vegas, Nevada, 89122
Phone : 265-8092
huynhr34@yahoo.com
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I.
Table of Contents
I.
Table of Contents ................................................................................................... 2
II.
Executive Summary ............................................................................................... 3
III.
General Company Description ............................................................................ 4
IV.
Products and Services ........................................................................................... 5
V.
Marketing Plan ...................................................................................................... 7
VI.
Operational Plan ................................................................................................. 20
VII. Management and Organization ........................................................................ 23
VIII. Personal Financial Statement ............................................................................ 24
IX.
Startup Expenses and Capitalization ............................................................... 25
X.
Financial Plan ...................................................................................................... 30
XI.
Appendices ............................................................................................................ 41
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Executive Summary
My business is mainly focused on the Wii. Having accessories to make your interaction with the
wii more fun and having help tips to help gamers complete their quest to complete their games. As a
corporation, we would want to make sure that everyone who always wanted to get the wii to have one.
Our mission statement is to make every customer satisfied like any other retail stores. We would want
to go above and beyond the way any retail stores work by monitoring competitors and arrange the price
of our products to make it satisfying to the market and to the customers. Sticking to our mission
statement, we would have employees be trained to make every customer come back. Our business will
be in a hierarchy from advertisers to sales person and up to assistant manager. To be in a high level job,
you would need to have been graduated from high school and a degree in computers. Based on the
hierarchy the higher the position the more responsibilities they would have. Our market would be in the
entertainment. Our ideal customer would be children. Based on the ages of people who play video
games, they are mostly children. Next to people who play video games, it would be teenagers. The price
of the products will depend on how much my competitors are selling it, and the popularity of the
product. An example would be the rating of the product, the higher the rating is, the more likely that the
price would be raised. If the product have low ratings, then the product’s price will be most likely below
the price the competitors are selling it for. My competition will be the world’s international retail store,
like Walmart. There would be over 20 competitors because they would sell some similar products that
could compete with my product. An example of products that could compete with my products, would
be other electronic entertainment systems. My business will be opened from 9 A.M. to 10 P.M. It will be
opened every day, except for holidays. During Black Friday, the store hours would be changed from 5
A.M. to 5 P.M. My financial plan would be stable. The net profit would be $ 1.55. The plan for my
finance is to sell over five wii consoles, then sell over 15 video games, and over 3 accessories. This
business will survive and not become one of the many business that go bankrupt in month because one,
the product is still fresh (new), and many people like the wii. Second, the wii has many accessories that
most stores would not sell, because they have other products to focus on.
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General Company Description
My business will be in selling the Wii. I will sell Wiis and their accessories. I will also have a
membership for people who wants to have discounts on everything. I like to sell the Wii because it helps
a lot of people. The Wii has many benefits, an example would be: making people happy, exercising, and
having fun. My cousin owns a Wii and when we were playing it together, it made us closer to each other.
My goal is to satisfy customers by having affordable prices on Wiis and other accessories. We go
to other stores that sells Wiis and will try to lower our price to beat their price. Our friendly customer
service will surely make you come back to buy things for the wii.
The important things in my business are: to satisfy customers, have an affordable price but still
have a profit, and making customers come back. Satisfied customers makes them tell other customers to
come to my business. Having an affordable price makes more customers buy things at my store.
I will market my products to people of all ages. The wii is used for many purposes for all ages. It
can be used as a fitness exercise for old people. There are games for children and sport games for every
age group.
My industry would not be a growth industry because I will only sell the Wii and its accessories
and I would not expand the store. The changes in the industry will be a short term if my product is very
profitable and if my product is not profitable then changes will be a long term. My company will take
advantage of the changes by gaining more profit.
The factors that will make my company succeed are: satisfied customers, affordable price, good
customer service, and quality products. My major competitive strength will be making affordable prices.
The core competencies that I can offer to this business are: math and being nice. My math skills would
help me do my business finances. Being nice makes good customer service because if you are mean, you
will drive customers out of your store.
My legal form of ownership is corporation. The positive side of corporation is that if someone
sues, it won’t be me. Sole proprietorship is a bad thing because one person have to take up all the
responsibilities. Partnership is also a bad thing because two people share a business and the profits. The
negative side of Non-profit is that you do not receive any profit.
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Products and Services
The wii has a white thin box with a shiny surface. It is 6 inches wide and 8.5 inches long. On the
front side of the Wii, it has three rectangle buttons. The first button is the power button. The second
button is the restart button. The third button is the open button that allows you to get the video game
CD from the inside of the Wii. On the same side of the Wii, it has a slot to put in the video game CD. On
top of the Wii, there are USB slots to put in the accessories of the Wii. An accessory of the Wii is the Wii
remote. It looks like one of the digital converter remote control except it is thinner. On the front of the
Wii remote there are several buttons and on the bottom of the remote there is a square button.
Another accessory is the nun-chuck. On top of the nun-chuck, there is a joystick for movement. The nunchuck is usually connected to the Wii remote by a white cord. The nun-chuck’s shape looks like a fat
banana. The color of the Wii game system, wii remote, and the nun-chuck is ghost white. The wii wheel
is shaped as a regular car driving wheel. The color is white and in the center of the wii wheel, there is a
wii remote attached to it. Dual Glow Sabers for Nintendo Wii looks like one of those light sabers from
any Star Wars movie. The wii zapper looks like a Sci- Fi gun .The color of the Nyko- Perfect shot is white.
The color of the wii zapper is white. The Nyko- Perfect shot looks like a handgun. The cover of the
handle is blue and the trigger is blue. The whole color of the Nyko- Perfect shot is white. The front side
of the barrel is light orange. The nerf sports pack consist of a mini tennis racket, golf club and a baseball
bat. The handle of each equipment is light blue. The main color of each accessory is white. The neo-fit
looks like a weight machine but the outer lines look like the outer line of a stamp. There is a motion
sensor that is added to the Wii Station. It is a thin shape rectangle that can be attached on top of any
television.
The factors of my competitive advantage is that I have cousins who loves the wii and I can
have them spread the word about my great store around to their friends. My store will only focus on
one product and its accessories. An advantage for my store is that I might be the only store that sell the
Wii. There has been shortages of Wiis in other stores so when my store opens it will bring many
consumers to my store to buy wiis.
A disadvantage factor is that not many people will know about my store because it is new.
Another factor of a disadvantage is there might be no consumers who are willing to buy the Wii because
of the bad economy.
The pricing for the Wii will be the same as the other stores. The price will be $249.99 and some of the
accessories will be between twenty to sixty dollars. The games will be from ten to thirty dollars.
Here are some of my products:
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Marketing Plan
Market research - Why?
A market research can save you from wasting money. If you open a business and you didn't do
your market research it can have an effect on your business because if customers do not like the
product or service you are selling than your business will fail. If you do a market research like a survey,
and you ask people about your service/ product, and if people like it, then you can open your business.
Market research can show which location is best for you. For my research, most people lived in 89142,
so I would start a business in the 89142 area. A positive side of market research can be the age group
that likes your product. If people who has the same age likes the product than that would be your target
audience.
Market research - How?
For my primary research I did a survey. There was eight questions in my survey. The questions
were related to customer service and price. I gave my survey to twenty- five people. I asked people
during class, during lunch, and at home. Most of the people who did my survey were fourteen and
fifteen. The majority of the people who took my survey was male. The zip code 89142 was where most
people lived. Some people said that my questions was a little bit confusing. Overall, people said that if I
do my business it will be okay.
For my secondary research, I research the internet for research market for the wii. There was
one website called Game Pro that said: “Research firm names Wii the next-generation winner through
2008.” They say that the wii will be sold more than the Xbox 360 and the Play Station 3 in 2008.
Economics
The total size of my market is 61,661,470 people. The target size that I
calculated for my market was from the age to five to nineteen years. I used the
U.S. Census Bureau. The national number of people from age five to nine years is
19,709,887. The number for ten to fourteen year old is 20,627,397, and the number
for fifteen to nineteen is 21,324,186. I used the U.S. Census Bureau excel from July
1, 2000, to 2006. I used the information for July 1, 2006 for both sexes. For the
total size market in Nevada would be 504,969. The total age in Nevada that
would buy the wii would be five to twenty-four. The reason why I thought that
the age five to twenty-four would buy the wii because the age group would still
play video games to waste time. I would not choose the age from twenty-six and
up because that age group is worried about getting a job, being married and
financial problems. Age five to twenty-four might still live with their parent’s
house and if their children want something the parents might get it.
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The percentage of the market I will have would be about two percent. The
reason why is that there are major retail stores that sells the wii. The major retail
stores that I could think of would be: Walmart, Target, Sam’s Club, Costco,
Gamestop, and Frys. These retail stores have a big reputation with the consumers
because the consumers shop there to buy things. Walmart, Target, Sam’s Club,
Costco, Gamestop, and Frys have been around a long time that customers would
naturally go to buy their stuff from these stores. An example, would be, if you
needed a present for someone, some people would think, straight away, that
they should go to Walmart.
The current demand for the wii is up. On ebay, the current demand for the
wii is greater than the Xbox 360 and the Playstation3. The internet page is:
http://www.trendrr.com/timeseries/Demand_for_Wii_products_is_major_Numb
er_of_current_auctions_on_E__379423. Another source that says that the demand
is high for the Wii is:
http://seattlepi.nwsource.com/business/322001_wiidemand02.html. It says that
there is over two point eight million wiis sold in the United States.
The barriers for my business would be customer acceptance, brand recognition,
high production costs, high capital costs, change in technology, and high
marketing costs. There are many ways to overcome these barriers. I could add a
bonus on the purchase of the wii, like a video game that is unpopular. I could
jack up the price on the Wii really high for a week, and announce that there is a
sale on the wii, and the sale price would be a couple of dollars down than other
retail price.
The change in technology will greatly affect my business. The
reason why the change in technology will greatly affect my business is
because there will be a newer game station in the future that has features
better than the wii and then the demand for the Wii will go down. When the
demand for the Wii go down, then there will be not enough profit to be made.
The change in government regulations could also affect my business. The
reason why is that the Wii is made in other countries like Japan, and if the
government bans any trade with other countries that makes the Wii for some
reason, like there is lead in the wii or there is some problems of how other
countries test the wii if it is safe, then I will have no supply for demand. The
change in the economy will affect my business because, if the economy is
turning bad, then the consumers will be careful on what to buy. Consumers
will be deciding what to buy that will be a need and not a want, and the Wii
is not a need, it is just a want for most people. The change in industry could
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have an effect on my business. If the industry can’t make enough wiis then,
there it would not meet the demand of the consumers.
Product
The products that I would sell, are: the Wii console, accessories for the Wii, and knowledge of
the Wii.
Features and Benefits
The important feature about the Wii, is that it is gives you movement in the
game. Another important feature about the Wii is that it gives customers extra
fun features than other entertainment products.
The wii console gives customers entertainment and sometimes it can give
them enough fun to forget the bad things in their life. The accessories makes the
wii more exciting.
Customers
The typical type of customer for my business would be someone who could be a mother,
teenager, and family. A mother would probably have kids and would like to make her children happy.
The age the mother would be is from twenty to forty-two. Most of the time adults don’t usually play the
wii, only children do. The mother would have to have a job to support her family, and she would
probably work five days a week because the games for the wii could cost a lot and she must have a lot of
money to buy wii games for her children. The typical car that she would drive would be a car that could
support weight for everyday items and have luxury. The food that she might eat would be food that is
sometimes homemade but mostly store bought on her work days. If she is divorced, she might not have
time to cook for her children. On her days off, she would spend a little bit of time to play the games with
her kids, and most of the time she would be cooking at home to feed the family. Her favorite television
show might be cooking. She would watch cooking shows to see what kind of foods she could make for
her children that is delicious. The personality would be: nice, friendly, and likes to spoil her children. Her
favorite type of movie would be romance. She might have a bedtime for her children.
A teenager who would buy the wii would probably live with their parents because they would
spend a lot of money on games instead of saving money. The age could be from twelve to sixteen. They
would probably spend time on the internet playing online video games. The type of car that they would
drive would be cheap like a compact car. The food that they would like to eat would probably be
noodles because if they like the wii game station which was made in Japan, then they would probably
like Asian food. The time they would stay up would be very late because they might be finishing video
games or winning an online game. The type of movies they are interested in is horror or anime because
most video games are anime and some are horror. Their type of job that they would work would be a
retail store because it pays good money. The type of clothes they could wear would have pictures of
cartoon or anime. The type of pants that they would wear would be jeans. The two major things that
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they would buy would be computer accessories and game accessories. The type of grade that they
would achieve would be from a D to an A.
A family that buys the wii would spend a lot of time together. The type of car that they would
have would be a van. The parents would probably work every day. They would probably have a family
day every week to play the wii. The type of house that they would have would be a one or two story
house. The type of holidays that the family would celebrate could be: Birthdays, Christmas, New Year’s
Eve, Thanksgiving, and Halloween. The type of food that they would eat most of the time would be
homemade. The type of things that the family would have consist of: clothes, school supplies, food, and
entertainment products. The time that the family would buy the wii’s accessories would be on holidays
and when someone did well on something. The personalities of the family would be nice and friendly.
The type of movie that a family would watch would be: action, comedy, and anime (ex. of anime would
be Shrek). The type of work that the parents must have would be something that pays enough money to
support a family. The type of grade that the children would have would be from a C to an A. Every
summer break the family would travel or to see other relatives. The family would have a bed time for
their children.
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Mother
Have kids
Likes to make her children happy
Her age would be between twenty to forty-two
Have a job that supports her family
Her work time would be five days a week.
The type of car that she would drive would handle every day to day items and luxury.
The type of food would sometimes be store bought when she works if she is divorced.
On her off days, she would play with her children.
Favorite Television show would be cooking, because she might learn how to cook
delicious food for her children.
Her personality would be : nice, friendly, and likes to spoil her children.
Her favorite type of movie would be romance.
Teenager
Lives with their parents
Age would be from twelve to twenty.
Spend most of their time playing video games or online video games.
The type of car would be compact.
Type of job would be working at a retail store.
Type of movies would be horror, or anime.
The type of shirt would have pictures of cartoon or anime.
Type of pants would be jeans.
Two major things that they would buy would be computer accessories, and game
accessories.
Type of grade would be from a D to an A.
Family
Their lifestyle is to spend time together.
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Type of car would be a van.
Parents would work every day.
Have a family day to play the wii.
Type of house would be a one or two story house.
Type of holiday would be: Christmas, New Year’s Eve, Thanksgiving, and Halloween.
Type of food would be homemade.
Things they would buy would be: clothes, school supplies, food, and entertainment
products.
Time when they would buy the wii’s accessories would be holidays and when someone
makes an achievement.
Family’s personality would be nice and friendly.
Type of movie that they would watch together would be: action, comedy, and anime ( ex.
of anime would be Shrek)
Type of work would pay enough money to support the family.
Average grade the children would achieve would be from a C to an A.
Every Summer they would travel to see relatives or travel.
The family would have a bedtime for the children.
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Importance
FACTOR
My
Business
Products
The wii
console,
games, and
accessories.
To
Strength
Weakness
Bestbuy
Walmart
Frys
Customer
X
S
S
S
9
$245-249 for
the wii. The
video games
are from $540. The
accessories
are from $550.
X
S
S
S
9
New
condition
X
S
S
S
9
Selection
Wii console,
Games, and
Accessories X
S
S
S
9
Service
Friendly
Service on
helping
things about
the wii.
X
S
S
S
9
Price
Quality
7-day money
back
X
S
S
S
9
Stability
Not stable
X
S
S
S
5
Expertise
Full
knowledge
of the Wii
and how to
fix problems
with the wii. X
S
S
S
5
S
S
S
5
S
S
W
5
S
S
S
5
Reliability
Company
Reputation
Location
Appearance
New store
Near Circuit
City at
Maryland
PKWY.
X
As a new
store that
has full of
accessories
of the Wii.
X
(Games, and
X
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Importance
FACTOR
My
Business
To
Strength
Weakness
Bestbuy
Walmart
Frys
Customer
consoles)
We would
boost the
price up,
then lower it
down to the
original
price minus
ten dollars. X
S
S
S
9
Accept any
kind of
Credit Policies Credit cards X
S
S
S
9
Advertising
Radio ads at
94.1FM in
Las Vegas
X
S
S
S
5
Image
A store with
wide
varieties of
the Wii.
X
S
S
S
5
Sales Method
The products that could compete with me would be, PlayStation 1,2,3, PSP, computers,
Xbox, Nintendo DS, and Xbox 360. The companies that would compete against me, would be: Target,
GameStop, Walmart, Fys, Sam’s Club, Direct Buy, Kmart, Circuit City, Bestbuy, and Toy R US.
The major competitors are: Target, Bestbuy, Walmart, and Gamestop. These competitors
would only compete with me with certain products, and in certain locations. I think that my important
indirect competitors would be against arcade stores.
The product can be compared to competition by having the best price, or quality than the
other business’s products.
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Niche
My niche would be families, because children would want to buy video games and their
parents would buy it. The age group of the children could be from ages eight to fifteen, and they would
most likely be guys, because not everybody who buys the wii would be girls because they would be busy
buying clothes, makeup, teen magazines, and etc. Then they would buy the wii console around
celebrations or rewards because people would buy video games for celebrations, like Christmas, or if the
person that they are getting the video game did something good.
Strategy
The first thing that I would do is to find a location for my business that will attract people to
come into my store. Then when I open my business, I would put an ad in the newspaper with the prices
of my products or put it on advertisement on the internet or popular websites like Yahoo. This will allow
people to knw that there is a store that sells Wii consoles, other accessories, and what the price is. In my
business there will be a Wii for people to try out the wii. If people are coming and buying Wii games, I
would make up a membership program that would help people get discounts, and knowledge on cheat
codes, and when new games would come out. The membership program would require the consumers
to pay a monthly fee. If the business goes well, then I would require people to have a membership card
before entering my store. When the business is not going well, because people refuse to go to my store
to get a membership card, then I would change the store to say that everyone is welcome. On holidays,
like Black Friday or Christmas, I would boost the price up a week before the holiday, and on the holiday,
I would bump the price down to the original price minus ten dollars. After the holidays I would bump the
price to the original price. If there are some accessories for the wii, and video games that aren’t being
bought, then I would make a sale on certain items to make customers buy it. Before I produce a video
game or an accessory, I would check online the prices of my competitors are selling it for. After that, I
would put the video game or the accessory out and sell it the same price that my competitors are selling
it for. If the membership program does not go on really well, then I would put in another incentive to
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bring in more people to apply for the membership program. An incentive could be a chat online system
for people who are in the membership program to talk to each other or free demo games every month.
Promotion
To promote my business I would put ads on the internet, billboards, and taxi’s, events, and concerts.
The kind of media would be when I have good prices on a product, and when the products
are popular. I would use the media every Black Friday, because then my store would have great prices
compared to my competitors on Black Friday. I would use this mix because this is likely the most
effective method. A low-cost method for my promotional budget would be doing a free interview with
the news on Black Friday.
Other methods rather than paid advertising would be telling friends about my business and
spreading influence other than people watching ads about the business on television.
The image that I would want is that I have the best price for the Wii console, accessories,
and its games. I want the customers to see me as the first store that they can go to look at the prices of
the Wii and its accessories.
For my graphic image, I would have a business card since it would be much cheaper and smaller to fit
into a customer’s wallet.
Mr. H’s
Wii World
To make sure that I know if I have a repeated customer, I would have a system that would contact them.
I would want to make sure that my business care about them and show that I want them back.
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Promotional Budget
I would spend about 5% of my budget for my promotional budget. I would spend 2.5% of my
promotional budget for the grand opening. After that, I would only spend the other 2.5% for major
holidays.
Pricing
My prices with the competitors is a little bit lower, because I want to attract customers and steal other
business’s customers. If I had my price higher than the competitors than it would not attract many
customers, so I would rather have my price lower than the competitor’s price.
Price is very important and customers make their purchase decisions on price. An example
would be gas. When the gas was at three dollars, many people chose not to drive their cars and instead,
they would ride their bikes to work or they would car pool.
The credit policy is that if their product has a problem then they would have a 7-day money
back. The customer service would be friendly and have full knowledge of what the wii is.
Proposed Location
Location of my business, would be very important to the customer. The reason is that
almost every business is selling the Wii for at least $249. The location matters because all the stores are
selling the Wii at the same price, so if the Wii store is closer to their home then they would go there
because they do not care to drive to a distant Wii store that is selling for a dollar less.
There would be parking in my business because the Wii is still a popular product and I would
want the customers to park where my business is. If there is no parking lot for my business, then people
would park at another store that might have the same product. That could lead them to shop at that
store. So, I would have the parking lot to make sure the customers would go buy my products instead of
my competitors. There would be interior space because I would have to showcase my products to have
the customers look at it and decide to buy it. My location would be convenient to families, like near
Target, sicne there are a lot of businesses that sells the Wii. If my location would be convenient to
families, then they would go to my business because they would not want to go to other business even
if other business have the same price as my product so they would not have to go to a far away business
even if they have the same price as mine. There would be another way because if drivers see that my
business have lots of customers, then they would think that my business would be popular so they
would come to my store.
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The location that I have come up with for my store will be next to a retail store like Target. It would
make a lot of people see the store because Target is a big corporation and it would save them gas if they
want to go to a store that sells things for the wii. They could go to my store instead of going several
miles to a games store.
I would think that the customers would not expect that they would see a Wii store near Target. The
reason why would be that a Wii store would usually be in a mall, like GameStop. Customers would
probably want to have all the stores have products that they need in the same store. The customers
would think that it would be a good idea for a store that sells the Wii next to a store that sells everyday
things. (an example would be a Wii store next to Target)
The location of my competition would be located near family homes because most of their
products that they sell are for families. It would be better for my business to be near my competitors so
that I can save money on advertising. If my business is next to my competitor, this leads to selling a lot
of stuff and that would include the Wii. They would see my business and would want to see my business
first if they are shopping for the Wii since my business is focus on only one product.
Distribution Channels
The distribution channels would be online and in store. My web address would by,
www.wiirulesbyh.com and my mail order would by 6468 Za Zu Pitts Ave. NV, 89122. On the website
there would be prices on products and they could buy it. The delivery would by a week from your
purchase. There would be news about the wii ( an example could be a next generation of the wii). The
type of store that I have is a wholesale store, since I buy things from the manufacturers.
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Sales Forecast
Mr.H's Wii World
Break-Even Scenarios ( Numbers in red are interactive )
Revenue Potential:
Revenue Streams
Wii Console
Games
Accessories
Wii club
Totals:
Price
$
249.95
$
35.00
$
20.00
$
9.95
Units
Revenue
7
$1,749.65
6
$210.00
5
$100.00
0
$0.00
$2,059.65
Monthly Estimations:
Lease/Rent
Utilities
Monthly Labor (from
grid)
COGS
Salaries (Partners)
Office Supplies
Advertising
Insurance
Maintenance
Customer Claims
Uniforms
$38,849.50
$308.95
$0.00
$500.00
$4,500.00
$2,000.00
$1,000.00
$2,000.00
$600.00
Totals:
$52,758.45
$1,000.00
$2,000.00
Tax Rate (Estimated)
35.00%
Daily Labor Requirements:
Classification:
General Manager
Asst. Manager/s (3)
#
1
2
Pay
Rate
$235.00
$165.00
Extension
$33.68
$47.30
P a g e | 19
Salesperson
5
$16.75
Cashiers
Total:
Revenues:
Products
4
$17.00
$670.00
Daily
$2,059.65
$544.00
$1,294.98
Weekly
Monthly
$14,417.55
$61,789.50
Annually
$751,772.25
$2,059.65
$14,417.55
$61,789.50
$751,772.25
Expenses:
Lease/Rent
Utilities
Labor
COGS
Salaries
Office Supplies
Advertising
Insurance
Maintenance
Customer Claims
Uniforms
Daily
$33.33
$66.67
$1,294.98
$308.95
$0.00
$16.67
$150.00
$66.67
$33.33
$66.67
$20.00
Weekly
$232.56
$465.12
$9,034.77
$2,162.63
$0.00
$116.28
$1,046.51
$465.12
$232.56
$465.12
$139.53
Monthly
$1,000.00
$2,000.00
$38,849.50
$9,268.43
$0.00
$500.00
$4,500.00
$2,000.00
$1,000.00
$2,000.00
$600.00
Annually
$12,000.00
$24,000.00
$466,194.00
$112,765.84
$0.00
$6,000.00
$54,000.00
$24,000.00
$12,000.00
$24,000.00
$7,200.00
Totals:
$2,057.26
$14,360.19
$61,717.93
$742,159.84
Profit Before
Taxes:
Taxes
$2.39
$0.84
$57.36
$20.08
$71.57
$25.05
$9,612.41
$3,364.34
Net Profit
$1.55
$37.28
$46.52
$6,248.07
P a g e | 20
Operational Plan
Production
My products will be produced at the store that manufactures the Wii console, and other
accessories. If any of my products are delayed before it arrives to my store, this would mean there could
be only ten or less of the same product which would then mean I would have to raise the price until I
can get more.
Location
The location must have a good view for cars to see the store and must have
trees. It must also be a one story building. The location must have a low crime
rate. The amount of space would be 1,000 feet sq. There is only one way to go to
the store and one way out and they are located at the front of the store. My
location of Mr. H's Wii World store must be convenient for transportation
because not a lot of people will go buy the wii so there would be no need to be
near the supplier. For disabled people I would have an easy walk-in access so
that it would allow people who lives near my business to go buy stuff from my
business.
The parking rules would be that it would be a two-hour parking and is only for customers. The proximity
requirements of my business for transportation would be far away. My business hours would be from
9:00 AM to 10:00 PM.
Here is a basic layout, of my store.
Exit
Aisles for products
Customer Service Center
Entrance
P a g e | 21
Legal Environment
For my business I would need an insurance coverage, licensing requirements,
and building code. I need permits to have a license to sell electronics. I also need
an insurance coverage for any robberies or fires. I will also make sure the
building code is up to code.
Personnel
There would be about thirteen employees. The type of jobs in my store would
be: assistant manager, salesperson, and cashiers.
To find the right employees I will be asking questions about their experience in
business and may ask about their history. The place where I would be talking to
them could be at a restaurant.
Assistant manager gets about $165.
A salesperson gets $16.75.
Cashiers receives about seventeen dollars.
To get the assistant manager job, he/she must have a couple years of managing
and have good leadership. A salesperson, must be able to “know the customer”
and have good manners. A cashier must know basic math.
Here is what each person with that job, must do. An assistant manager must make
sure that everything is in good order and must be able to deal with customer
complaints. The salesperson will be helping customers on knowing the product. The
cashiers will be dealing with the pricing of the product and know how to deal with
money. There would be schedules of the work days and how much each employee
would do.
Inventory
The type of inventory would be finished goods. The average value of my stock
would be around $2300.
P a g e | 22
Suppliers
The place that I will buy the products would be from Winkeen Technology
Company. They are located in the mainland of China. Their history says that they
have been open around 1995. They have markets in several countries. If my supplier
was bankrupt or has stopped production of the Wii, I would have already have a
backup supplier. During my business I would expect some delivery problems since
my supplier is in China. The cost of the products will fluctuate and to deal with this
problem, I would raise the price of my products, to keep it from going out of stock.
Credit Policies
My business will have a credit policies since most people would not carry alot of cash to pay for
the products. The limit of my credit policy would be $260. To find out if my customers can apply for my
credit policy, I would check their credit history. In my credit policy, they must pay the price of the
product in three days. Even though they have a credit policy with my business, they would not have a
discount on products.
Managing Your Accounts Receivable
This is a chart, if my customers are going to pay monthly. My policy on slow customers if they don't pay
up the price would be making three phone calls every month, if they still don't pay then I will send them
a letter. If they don't pay after the week, I sent the letter, I would get my attorneys to make threats to
them.
Total
Accounts
Receivable Aging
Current
30 Days
260
265
60 Days
275
90 Days
Over 90 Days
290
Managing Your Accounts Payable
To manage my accounts payable, I would pay them every time, they send me a letter, if
there is any chance, I would ask my suppliers, if I could get a discount.
310
P a g e | 23
Management and Organization
The general manager and my assistant manager, would manage the business on a day-to-day
basis. The person must have experience on how to manage the business for a couple of years. There
would be a plan if the person was lost or incapacitated.
General Manager
Asst. Manager
Salesperson
Cashier
Salesperson
Cashier
Asst. Manager
Salesperson
Salesperson
Cashier
Salesperson
Cashier
Professional and Advisory Support
For my professional and advisory support, I would have an attorney, an accountant, Mr. Arfuso,
my dad, and an insurance agent. For my accountant, I would choose Nicky as my accountant. For my
attorney, it would be someone who fits in my budget price. My insurance agent will be from Jade
Insurance.
P a g e | 24
Personal Financial Statement
Assets
Cash - checking accounts
Cash - savings accounts
Certificates of deposit
Securities - stocks / bonds /
mutual funds
Notes & contracts receivable
Life insurance (cash surrender
value)
Personal property (autos,
jewelry, etc.)
Retirement Funds (eg. IRAs,
401k)
Real estate (market value)
Cash on Hand
Other assets (specify)
Total Assets
Liabilities
Current Debt (Credit cards,
Accounts)
Notes payable (describe
below)
Taxes payable
Real estate mortgages
(describe)
Other liabilities (specify)
Other liabilities (specify)
Total Liabilities
Net Worth
Amount in
Dollars
$
198
$2,800
200
$
7
3,205
Amount in
Dollars
$
-
$
-
$
3,205
P a g e | 25
Startup Expenses and Capitalization
Owners' Investment (name and percent ownership)
Randolph
Huynh 75%
Your name and percent ownership
Other investor
-
Other investor
-
Other investor
$
-
Total Investment
Bank Loans
Bank 1
$
10,000
Bank 2
-
Bank 3
-
Bank 4
$
10,000
Total Bank Loans
Other Loans
Source 1
Source 2
Total Other Loans
$
$
-
P a g e | 26
Startup Expenses
Buildings/Real Estate
Purchase
$
1,500
Construction
-
Remodeling
109
Other
100
$
1,709
Total Buildings/Real Estate
Leasehold Improvements
Item 1
$
200
Item 2
Item 3
-
Item 4
$
200
Total Leasehold Improvements
Capital Equipment List
Furniture
$
158
Equipment
59
Fixtures
200
Machinery
719
Other
1,449
P a g e | 27
$
2,585
Total Capital Equipment
Location and Admin Expenses
Rental
$
300
Utility deposits
1,300
Legal and accounting fees
500
Prepaid insurance
1,200
Pre-opening salaries
30
Other
$
3,330
Total Location and Admin Expenses
Opening Inventory
Category 1
$
750
Category 2
200
Category 3
150
Category 4
50
Category 5
$
1,150
Total Inventory
Advertising and Promotional Expenses
Advertising
$
200
Signage
50
Printing
Travel/entertainment
100
P a g e | 28
Other/additional categories
-
Total Advertising/Promotional Expenses
$
350
Other Expenses
Other expense 1
Other expense 2
$
-
Total Other Expenses
$
-
Reserve for Contingencies
$
2,000
Working Capital
$
-
Summary Statement
Sources of Capital
Owners' and other investments
$
-
Bank loans
10,000
Other loans
$
10,000
Total Source of Funds
Startup Expenses
Buildings/real estate
$
P a g e | 29
1,709
Leasehold improvements
200
Capital equipment
2,585
Location/administration expenses
3,330
Opening inventory
-
Advertising/promotional expenses
350
Other expenses
-
Contingency fund
2,000
Working capital
$
10,174
Total Startup Expenses
The information is an approximate guess based on prices
of how I would remodel my business and other things.
P a g e | 30
Financial Plan
12-Month Profit and Loss Projection
The information I have on the twelve month profit and loss projection is based on approximate
guess on how much I would sell.
First Month(January)
Rent
Expenses
Wii Console
Accessories
Video Games
Wii Club
Bank Loan
Debt or Profit from last
month
Total Money
Debt or Profit
Product
Wii Console
Accessories
Video Games
Wii Club
Second Month (February)
Rent
Expenses
Wii Console
Accessories
Video Games
Wii Club
Bank Loan
Debt or profit from last
month
Total Money
$1,000.00
$61,717.93
$2,999.40
$600.00
$1,925.00
$29.85
$1,977.69
$0.00
-$59,141.37
debt
Price
Units
$249.95
$20.00
$35.00
$9.95
$1,000.00
$61,717.93
$1,749.65
$220.00
$210.00
$11.95
$1,799.69
-$59,141.37
-$3,184.65
12
30
55
3
Total
$2,999.40
$600.00
$1,925.00
$29.85
P a g e | 31
Debt or profit
debt
Product
Wii Console
Accessories
Video Games
Wii Club
Price
Units
$249.95
$20.00
$35.00
$9.95
Total
7
11
6
2
$1,749.65
$220.00
$210.00
$11.95
Third Month ( March)
Rent
$1,000.00
Expenses
$61,717.9
3
Wii Console
$1,999.60
Accessories
$300.00
Video Games
$700.00
Wii Club
Bank Loan
Debt or profit from last month
Total Money
$49.75
$1,977.69
-$3,184.65
$58,461.6
3
Debt or profit
debt
Product
Price
Units
Total
$249.95
$1,999.
8
60
Accessories
$20.00
15
$300.0
0
Video Games
$35.00
20
$700.0
0
Wii Console
P a g e | 32
Wii Club
$9.95
5
$49.75
Units
Total
Fourth Month (April)
Rent
Expenses
1,000.00
$61,717.93
Wii Console
1,999.60
Accessories
360.00
Video Games
910.00
Wii Club
Bank Loan
59.70
$1,977.69
Debt or profit from last month
-58,461.63
Total Money
-$2,904.70
Debt or profit
debt
Product
Price
Wii Console
Accessories
Video Games
Wii Club
8
$1,999.
60
18
$360.0
0
35.00
26
$910.0
0
9.95
6
$59.70
249.95
20.00
Fifth Month ( May)
Rent
$1,000.00
Expenses
$61,717.9
3
Wii Console
$2,499.50
Accessories
$500.00
P a g e | 33
Video Games
$1,050.00
Wii Club
$199.00
Bank Loan
$1,977.69
Debt or profit from last month
-2,904.70
Total Money
$57,542.4
3
Debt or profit
debt
Product
Price
Units
Total
Wii Console
$249.95
10
$2,499.50
Accessories
$20.00
25
$500.00
Video Games
$35.00
30
$1,050.00
$9.95
20
$199.00
Wii Club
Sixth Month (June)
Rent
$1,000.0
0
Expenses
$61,717.
93
Wii Console
$4,999.0
0
Accessories
$700.00
Video Games
$1,400.0
0
Wii Club
$248.75
Bank Loan
$1,977.6
9
P a g e | 34
Debt or profit from
last month
$57,542.
43
Total Money
$194.55
Debt or profit
profit
Product
Price
Wii Console
Accessories
Video Games
Wii Club
Units
$249.95
$20.00
$35.00
$9.95
Total
20
$4,99
9.00
35
$700.
00
40
$1,40
0.00
25
$248.
75
Seventh Month (July)
Rent
$1,000.00
Expenses
$61,717.93
Wii Console
$3,749.25
Accessories
$640.00
Video Games
$1,715.00
Wii Club
$298.50
Bank Loan
$1,977.69
Debt or profit from last
month
$194.55
Total Money
Debt or profit
-$58,292.87
debt
P a g e | 35
Product
Price
Units
Total
Wii Console
$249.95
15
$3,749.25
Accessories
$20.00
32
$640.00
Video Games
$35.00
49
$1,715.00
$9.95
30
$298.50
Wii Club
Eight Month (August)
Rent
$1,000.00
Expenses
$61,717.93
Wii Console
$3,749.25
Accessories
$600.00
Video Games
$1,750.00
Wii Club
$348.25
Bank Loan
$1,977.69
Debt or profit from last month
-$58,292.87
Total Money
$44.75
Debt or profit
profit
Product
Price
Units
Total
Wii Console
$249.95
15
$3,749.25
Accessories
$20.00
30
$600.00
Video Games
$35.00
50
$1,750.00
$9.95
35
$348.25
Wii Club
Ninth Month (September)
Rent
$1,000.00
P a g e | 36
Expenses
$61,717.93
Wii Console
$3,499.30
Accessories
$400.00
Video Games
$1,575.00
Wii Club
Bank Loan
$238.80
$1,977.69
Debt or profit from last
month
Total Money
$44.75
-$58,982.52
Debt or profit
debt
Product
Price
Units
Total
Wii Console
$249.95
14
$3,499.30
Accessories
$20.00
20
$400.00
Video Games
$35.00
45
$1,575.00
$9.95
24
$238.80
Wii Club
Tenth Month (October)
Rent
Expenses
$1,000.00
$61,717.93
Wii Console
$3,999.20
Accessories
$700.00
Video Games
Wii Club
Bank Loan
Debt or profit from last
$1,925.00
$139.30
$1,977.69
-$58,982.52
P a g e | 37
month
Total Money
$1,050.40
Debt or profit
profit
Product
Price
Units
Total
Wii Console
$249.95
16
$3,999.20
Accessories
$20.00
35
$700.00
Video Games
$35.00
55
$1,925.00
$9.95
14
$139.30
Wii Club
Eleventh Month (November)
Rent
$1,000.00
Expenses
$61,717.93
Wii Console
$3,499.30
Accessories
$420.00
Video Games
$1,050.00
Wii Club
$139.30
Bank Loan
$1,977.69
Debt or profit from last month
$1,050.40
Total Money
-$59,587.02
Debt or profit
debt
Product
Price
Units
Total
Wii Console
$249.95
14
$3,499.30
Accessories
$20.00
21
$420.00
Video Games
$35.00
30
$1,050.00
P a g e | 38
Wii Club
$9.95
Twelth Month (December)
Rent
Expenses
$1,000.00
$61,717.93
Wii Console
$6,248.75
Accessories
$300.00
Video Games
$1,225.00
Wii Club
Bank Loan
Debt or profit from last
month
Total Money
$59.70
$1,977.69
-$59,587.02
$2,724.85
Debt or profit
profit
Product
Price
Units
Total
Wii Console
$249.95
Accessories
$20.00
15
Video Games
$35.00
35 $1,225.00
Wii Club
$9.95
25 $6,248.75
6
$300.00
$59.70
14
$139.30
P a g e | 39
Opening Day Balance Sheet
Using my twelve month projection spreadsheet, it has shown that there may be a problem, so I
would have to expand my range of products like in the Sony products (ex: Playstation 3).
Break-Even Analysis
Mr.H's Wii World
Break-Even Scenarios ( Numbers in red are interactive )
Revenue Potential:
Revenue Streams
Wii Console
Games
Accessories
Wii club
Totals:
Price
$
249.95
$
35.00
$
20.00
$
9.95
Units
Revenue
7
$1,749.65
6
$210.00
5
$100.00
0
$0.00
$2,059.65
Monthly Estimations:
Lease/Rent
Utilities
Monthly Labor (from
grid)
COGS
Salaries (Partners)
Office Supplies
Advertising
Insurance
Maintenance
Customer Claims
Uniforms
$38,849.50
$308.95
$0.00
$500.00
$4,500.00
$2,000.00
$1,000.00
$2,000.00
$600.00
Totals:
$52,758.45
$1,000.00
$2,000.00
P a g e | 40
Tax Rate (Estimated)
35.00%
Daily Labor Requirements:
Classification:
General Manager
Asst. Manager/s (3)
Salesperson
#
1
2
5
Pay
Rate
$235.00
$165.00
$16.75
Cashiers
Total:
Revenues:
Products
4
$17.00
Extension
$33.68
$47.30
$670.00
Daily
$2,059.65
$544.00
$1,294.98
Weekly
Monthly
$14,417.55
$61,789.50
Annually
$751,772.25
$2,059.65
$14,417.55
$61,789.50
$751,772.25
Expenses:
Lease/Rent
Utilities
Labor
COGS
Salaries
Office Supplies
Advertising
Insurance
Maintenance
Customer Claims
Uniforms
Daily
$33.33
$66.67
$1,294.98
$308.95
$0.00
$16.67
$150.00
$66.67
$33.33
$66.67
$20.00
Weekly
$232.56
$465.12
$9,034.77
$2,162.63
$0.00
$116.28
$1,046.51
$465.12
$232.56
$465.12
$139.53
Monthly
$1,000.00
$2,000.00
$38,849.50
$9,268.43
$0.00
$500.00
$4,500.00
$2,000.00
$1,000.00
$2,000.00
$600.00
Annually
$12,000.00
$24,000.00
$466,194.00
$112,765.84
$0.00
$6,000.00
$54,000.00
$24,000.00
$12,000.00
$24,000.00
$7,200.00
Totals:
$2,057.26
$14,360.19
$61,717.93
$742,159.84
Profit Before
Taxes:
Taxes
$2.39
$0.84
$57.36
$20.08
$71.57
$25.05
$9,612.41
$3,364.34
Net Profit
$1.55
$37.28
$46.52
$6,248.07
P a g e | 41
Appendices
Include details and studies used in your business plan; for example:

Brochures and advertising materials

Industry studies

Blueprints and plans

Maps and photos of location

Magazine or other articles

Detailed lists of equipment owned or to be purchased

Copies of leases and contracts

Letters of support from future customers

Any other materials needed to support the assumptions in this plan

Market research studies

List of assets available as collateral for a loan