The Recreational Gaming Zone

The inexpert shimmer Z unmatched arguing of Financing neededIn order show up a rising channel, we need approximately Rs.50 millions. In which half of the support for frustrate be accessed through our Partners and the rest leave be accessed through Banks, investment companies and separate financing companies.Statement of Confidentiality ReportThis report is confidential and is the prudishty of the co-owners as listed above. It is intended for commit only by the persons to whom it is transmitted, and whatever reproduction of any of its contents without the prior written consent of the all(prenominal)iance is prohibited.Executive SummaryThe keys to success for The unpaid sport regularize is our ability to securities industry effectively, creating an unmatched, cool, marvelous, and felicitous melodic line where plurality result ilk to be, and hiring qualified/certified and skilled and knowledgeable staff to aid in the running of our programs and leagues.The spor ts and fitness cab art industry is a palmy trading that offers considerable turnover for individuals investing in it.The lodge get outs a wide range of indoor sports work. Customers can join the sports club for a justified monthly fee.The large number of sports customers represents an attractive pool of prospective customers. The customers argon private customers. The anticipate revenue is between . in the low year. The goal of this start-up is the operation of an indoor sports centerIndustry digestOver the next louver years, the sports industry is forecasted to show moderate growth, largely driven by demography and new entertainment opportunities.The confederacy expects that the sports industry is undergoing significant qualify from professional sports to entertainment.Future outlook and trendsA brief analysis of the industry has nominated us with the following facts and trends that might follow in the future.With the fast change attack in the technological enviro nment the put inment is expecting to face immense challenger in the approach era. The political party intends to pursue a outline aimed at delivering sustainable growth in earnings and company place. The company expects that the upliftedly fragmented grocery store and its anticipated growth provide an chance for expanding the companys business and change magnitude its boilersuit market sh ar. The key strategies of the company ar to produce high quality sports experience sum up the number of customers by making strategical investments, improving value quality.Demographic factsRegarding economic trends and outlooks the income is at booming level and is expect to grow with the same pace in the ara of Gujrat. Per capita income in Gujrat District was Rs. 1625/- comp atomic number 18d to overall Punjab (Rs. 1389/- per month). In district Gujrat 34 percent good deal are living below the income level of Rs. 750 per month compared to Punjab where 39 percent people live under poverty line of Rs. 750/- per month (Government of Punjab, 2004).About 75-80% of the heads supporting families of the urban center reside in foreign countries in particular European countries, UK, U.S, and Gulf Region to earn their income. This has to a fault fostered a belief in us to initiate a project wish this in our chosen operative area.Beside the population of the city has also increasing vigorously. This increment in population coupled with an attach in the income level of the inhabitants has provided a strong opportunity for our business to thrive in the coming time.Analysis of enemys before long there is only one authorization competitor in our locality, a project initiated by Zamindar grade College. Other latent competitors might be organizations that can offer high technology like realistic Reality to their customers, a product more advanced than the mere information processing system games offered by our entity to its prospects.From the industry entropy it i s evident that sports business is a thriving business with strong market growth rate, and rate of make for investors.Our establishment is religious offering unique services and excerptions contrary to our electromotive force competitor in our locality. There are a number of benefits and advantages our business has got over competitors, like better gaming options, timing hours, a prosperous and diversified nates market, and opposite geographic advantages.Market Segmentation groundingd on the analysis of market we corroborate decided to variediate the market on the basis of gender, income, age and stage in the vitality cycle, usage status, and usage rate.On the basis of stage in the life cycle the categories entangle single, espouse couples with children, married but without children, and retired individuals.The individuals forgathering the criterion of income include those having income level of Rs. 40000 and above. In addition individuals having savings of Rs. 30000+ a re also included among our prospects. The criterion of income applies to all other segments as well i.e. individuals coming under the foreland of singles, married individuals and others should also harbor the above mentioned income level.Single females are prohibited to get social status in our venture. This classification has specifically been do by looking at culture of the locality of operation of our business. however there is no remnantriction for the membership of males. Separate timing hours have been organized for two singles and family memberships keeping in view the convenience of both categories.There are no age limits on getting membership in our gaming regularise. But a extend to the restriction and conditions described above as apply to individuals of all ages and gender.Under the heading of user status come tourists, and other members like businessmen, t apieceers, engineers work at prominent readys, and similar knowledgeable intellectuals. Separate timing hours matching their schedules would be arranged, along with especial(a) promotion offers pertained to attract and retain them would be considered.Tourists a nonher small market segment for The Entertainer allow for be the tourists who are attracted to the quick-wittedness because of its coat and appearance.Description of the VentureMissionIt is our mission to provide the stovepipe programs, staff, and equipment, to to the full meet the miscellaneous sports and fitness needs of our members, while generating a profit for the owners and investors. anyways providing an excellent value to our customers DescriptionThe Recreational gaming zone is a new multisport complex that will provide both members and casual users an opportunity to participate in a variety of sports and leisure programs and activities. The establishments main purpose is to provide an environment of recreation and choice to its members playking fun, recreation, and excitement by providing a myriad of strategi c, adventurous, and other pleasure point gaming options.We have started this venture to provide residents of the locality with a in all new option to fulfill their need of refreshment and having fun. Currently the sports opportunities available to masses of the city are rapidly depleting overdue to increased population, and advancement in industry which has turned rural areas into urban ones. There is currently no other option in the city that matches our establishment. Currently there is only one major vie Ground namely Zahoor Elahi Stadium operating in the city. Besides this there are some gymnasiums and karate clubs as well however none of these provide opportunities comparable to our venture. So in order to avail the opportunity to satisfy our customers needs of refreshment we have decided to include versatile games in our venture like Bowling, chess, snooker, plank tennis, and with relatively new technology based computer games to entertain children by grabbing their atte ntion and sensation.The singularity of our idea has offered us with high chances of success, for there is currently no close competitor operational in our target market area. Only one such(prenominal) club is under construction near Marghazar habituation under the custody of Zamindar Degree College, which is directed to provide sports zeal to respective college students and faculty members. No membership option is available to people of local community in this sports complex.We have chosen a billet located near Chenab River, occupying a intact area of 1 acre. A total of Rs. 10 Million has been spent out to purchase the land. The site has provided us with a strategic position to better target population of two major districts namely Gujrat, and Gujranwala, and their suburbs. In this way we are better able to gain first terminater advantage by initiating this unique project oriented to capture the market of particularly Gujrat and secondly Gujranwala. Hence by choosing this loca lity to situate our business we are in a position of market leader and therefore can get high rate of return on our investment. exalted cost volumes have been incurred to acquire land and other capital necessary for full functioning of the venture. ein truth(prenominal) thing is purchased and nothing is acquired on lease. The budget to initiate such a costly project is expected to be round about Rs.40 to 50 million. Up to 50% of the financing is decided to be make through Banks and investment firms.The venture would comprise of single story building, including two major partitions. One great deal is entirely dedicated to Bowling court which would consist of 25 columns. While the rest of the area is mute for other games mentioned above in the discourse. Special endeavor has been paid to match the facility with latest standards. Besides these efforts to provide food arrangement have also been do to relinquish our customers.As this facility is completely new to our potential custom ers so we have also explored the option of trainers, to guide them and help them to get acquainted(predicate) with rules, and policies commandd in playing games available at the establishment, during their membership with the institution. For this purpose we have chartered the expertness of well reputed trainers working in established organizations similar to ours in other cities like Lahore, Faisalabad and others. This option to provide expert trainers for our customers was also necessary because none of the entrepreneurs initiating the venture has been expert in the field dealt by the establishment.Keys to victorThe Keys to Success for The Recreational maneuver Zone are as followsMarketing We must make The Recreational Gaming Zone a common name in the Gujrat and creatively market our services to to each one of our market segments.Atmosphere of facility By creating an unmatched cool atmosphere in the gaming zone through the use of first class equipment, floors, and colors, peo ple will want to frequent visit our facility and our ability to retain members will be enhanced.Knowledgeable/qualified staff and management By providing the users of the facility with knowledgeable and qualified staff who show genuine concern for the patrons, people will feel promiscuous and confident that The RGZ can meet all of their sport and fitness needs.Production PlanRecreational gaming zone is a service oriented entity in contrast to manufacturing business. Hence there is no partition of production plan included in the business plan of this venture. This section is mainly discussed in the business plans of manufacturing businesses.What we need to discuss here is to list the sources of supplies of games involved. Some of the supplies include pins used in bowling, the bowls that will be used for rolling, snooker balls, sticks for playing snooker, badminton shuttles and rackets, technical assistance in the successful implementation of computer games plus fixation of any defe cts, pieces used in the playing of chess and the boards on which the game is played, and eventually the necessary equipment required in the playing of table tennis.Suppliers and their LocationPrincipal suppliers of our utilities are operating in Sialkot, Lahore and Gujrat as well based on the specialization of different regions. The accessories required in the playing of table tennis, badminton, and snooker can be found at least cost from the companies situated in Sialkot. The rest of the equipment particularly things made of wood would be procured from the suppliers at Gujrat, which is well known for its wood works. All the remaining items not available from the specified regions would be purchased from suppliers in Lahore.Operational PlanThe operational plan of the business is simple and straight forward. The company intends to sell its memberships to its prospects. Initial membership fee is fixed at Rs. 5000 for all members regardless of their category. As all the operations are carried out entirely at the establishment facility so the operational plan of our venture is somewhat different from most other service oriented businesses.The requirement of additional major capital is seldom, because it includes relatively long term assets and thus need not be purchased on a continual basis rather occasionally for e.g. in case of faulting of snooker tables or table tennis ones. On the other extreme there is often a need of utilities like shuttles, pins, rackets, to name a few. So it has been decided to keep an adequate stock of these items to meet the regular demands of customers adequately and instantaneously, plus reducing the costs associated with the storage of surplus inventory.There is an arrangement of reprint department at RGZ to monitor the working of various operations performed. The hierarchy at the organization is visualised in the following diagram.The company intends to starts operations in the region of Jehlum city as well later two years of op erations. This location is selected by looking at the charming market providing great potential for our business to thrive.Marketing ManagerGoalsEstablish valued transaction with customers and employeesCreate awareness in the market placeProviding the good environment.Make the policy attractive more and more peopleFlow of orders for goods and servicesTechnology utilizationsFinanceFinance is considered a backbone of any entity particularly the one going to establish newly. At RGZ the finance department has the following working described belowFinance ManagerResponsibilities financial reporting.Checking cash inflow and outflowsProfit and loss statements of monthly opening and closing.Prepare and review budget, revenue, expense, payroll entries, invoices, and other accounting documents.Check of proper working of the cashier.BudgetingSerial No.ItemRegistration Fee social rank FeeMonthly fee1SnookerRs.500Rs.5000Rs.25002Table Tennis500500025003Chess500500025004Bowling1000500025005Compute r games50050002500Total300050002500The salaries of various employees working at RGZ are given in the table drawn belowHRM DEPARTMENT recruitment / Selection of PersonnelRecruitment/selection criteriaEmployee orientation and trainingCompensation and Benefit PackagesEmployee BonusBase Pay (Salary)Medical BenefitsBasic NeedsAdvance SalaryMarketing PlanEffective sell together with consistent promotion are the keys to success. The company pointes on a comprehensive web selling and classical merchandising strategy designed to attract new customers, convert leads into barters, and maximize revenue. In the start-up material body it is a central task of the merchandising concept to establish name recognition and its own trade mark. Several marketing and sales promotion strategies are available in the industry to choose from. afterwards on the strategy will primarily be targeted to gain new customers and create customer fealty of repeat customers.Market ResearchPrior to starting our v enture we have estimated the size and intentions of our prospects. The research information was very conducive for the opening of the venture of the type in discussion. The following chart depicts the response our prospects have provided to us.Research MethodologyThe research methodology adopted consisted of the following contents. Both the primary and secondary sources of data adoption options were explored as,EXPLORATORY RESEARCHINTERVIEWSQUESTIONNAIRESAMPLING TECHNIQUESWOT analysis of RGZThe principal strengths of our venture are the unique games provided compared to our current competitors. The chosen site has also provided us with first mover advantage, for there is no present comparable venture operational in the region under consideration.Among the weaknesses come options that we have not included yet, such as swimming pool, Basket Ball, karate club, and other products that have been available from our close competitors like pace, AFC and others.There is a strong potential for the venture to gain advantage from the opportunity of first move plus innovation by reaping the rewards from prospective customers, for there is no alternative to our venture, to which they might refer as substitute. By using this opportunity we are in a better position to obtain high rate of returns on our investment, a part demonstrated in the financial section of the plan.The major brat as described to begin with is the innovation and improved technology that might be introduced by our potential competitors in the future. specializedally if any competitor that enters the market with relatively advanced technology in the coming next two years can pose a serious threat to the profits generating force of the sports complex. Another recent threat comes from the political scenario prevailing in the country, particularly war against terrorism, and the resulting bomb blasts and explosions made by extremists in various parts of the Country. To avoid this threat special endeavor would be made to void any security lapse.Competitor analysisThe information on this topic has been covered earlier in the plan however here a concise detail regarding the topic is made.The company is in a sense market leader, with no comparative competitors operational in the locality. A portion of competition comes from establishments like AFC, Pace, and Zamindar Degree College Sports Complex (under construction), due to somewhat similar products offered by these institutions, and in some cases offering products that have not been included in our planning operations.Despite all these our company has significant strategic advantage over our current and potential competitors. The product offering at the RGZ is completely unique in all aspects. Games like chess, bowling have a strong market potential and are currently offered by less similar establishments working in the surrounding areas of our venture.Marketing Objectives at RGZMarketing plays an key division in the survival of an y business .The success of the co. in market depends considerably upon the role of marketing department.RGZ consists of marketing department with high aptitudes and innovative ideas in sports centers.Here a marketing manager, and sale manager, dealing officer, assistant manager and several other employees are working within marketing department.Specific Marketing Department GoalsBy looking at the outcomes from the conducted SWOT analysis of RGZ and by completing competitor analysis the following main objectives for RGZ marketing plan have been set.Sell 750 memberships in year one, 1200 by the end of year two, and 2000 by the end of year three.Organize and develop various sports leagues and market them effectively. digest young generation of Gujrat and surroundings a good entertaining plate formShow at least a 10% return to investors in the first year of operation.Marketing StrategiesDue to the size and convenient location of our facility, many people will be attracted to The Recreat ional Gaming Zone (RGZ) to see what we have to offer. However, we will not be content to just wait for customers to come to us. Instead, we will focus our marketing strategies on those market segments who match our offerings. The great thing about marketing The Recreational Gaming Zone (RGZ) is that each market segment relates, in certain ways, to all the others.Our main objective with our advance(prenominal) marketing strategy will be to get people into our facility. Once people see what we have to offer, and feel the atmosphere that will be created, they will want to return and participate in the many activities and programs that will be available to them.Some of the ways The Recreational Gaming Zone (RGZ) will get people into the facility includeOffering tours to junior and senior high schools during the building and early terminus stages of the facility.Having a large promotional event to open the facility that will be free to everyone.Hosting and/or supporting various communi ty events that will bring in many people who otherwise would not come.Mailing out free day passes to all of the surrounding area.Following the opening of The Recreational Gaming Zone (RGZ), print and radio media will be used to promote both the facility and the programs that are being offered to attract new people from all over the Gujrat and surrounding target market areas. pose Market Segment Strategy denoteMedia UsedSales StrategiesSales promotionPublic relationsPricingPrint advertisingDirect marketingThe company uses direct-response advertising, including television, internet and other media, to attract buyers to the center.AdvertisingAdvertising is any paid form of non-personal communication of ideas or products in the prime media i.e. television, newspapers, magazines, billboards, posters, radio, cinema and so on Advertising is intended to persuade and to inform.Advertisement ObjectivesTo create maximum awareness of this new sports complex among the people and tell them how i mportant health for anyone.To build a strong brand equity by having a distinct position in the minds of the customers.Media Usage for Advertisements (Budget Requirements)FM RadioPrint advertisingDirect marketingCable TV AdsOnline marketingOnline marketingThe Company has the budget and strategy that allows it to use dozens of occupation providers to link to its core web site www.RGZ.com.pk .Newspaper advertising is an integral and desired part of the marketing strategy. Print media advertising is a mass communication tool. Printed advertisements will be used in issue and international magazines to increase the number of customers.Marketing cooperation the best way to find out who would make a good partner is to research the potential businesses in the industry.Direct marketingThe company uses direct-response advertising, including television, internet and other media, to attract buyers to the center.Media UsedTime/TypeDurationTotal Costs (Rs.)Cable TV600 pm to 1100 pm30 seconds1000 00 monthlyRadio600 am to 1000pm45 seconds60000 monthlyBannersHandwritten50000 annuallyPrint Adverts.100000 annuallyPublic RelationsProviding them proper coaching to run machines.Oversee game management operationProvide instant help to any member when he/she need.Organizing some programs on events like Eid, and other important events.Oversee and provide counselor for the scheduling of all athletic and recreational facilities including the developing of a price structure and the procedures to bill and collect all fees charged.Strategy and ImplementationThe Recreational Gaming Zone (RGZ) has a very large potential market. Because of the small number of recreation and fitness facilities in the Gujrat City, we feel we will become the number one sports and fitness complex pronto. This will be accomplished by actively and continuously promoting The Recreational Gaming Zone (RGZ) through radio and media advertisements.Sales StrategySales in the sport and fitness club business are based on the services and amenities provided by the facility. The something for everyone slogan fits perfectly with The Recreational Gaming Zone (RGZ). All of the users of our facility must feel like they are getting the best possible value out of their money. If there is a better value, for equal services, The Recreational Gaming Zone (RGZ) will match or beat that value for our customers.Each person desiring a membership at The Recreational Gaming Zone (RGZ) will be able to sit down with a substitute and be notified of all of their membership policies, terms and conditions. During this brief discussion, the person will be also be informed of all of the services, programs, and amenities The Recreational Gaming Zone (RGZ) has to offer. It will be important to establish a relationship of trust with our members as retaining membership is equally important as developing new customers.Sales promotionSales promotion strategies have fugacious effects only. Sales promotion will be used for a limi ted time to increase the number of customers. The strategy will include special offers with opening discounts for new customers. The initial membership prices will be reduced by 50% for the first three months.Organizational PlanCompany OwnershipThe Entertainer will be a limit Partnershipcorporation that will be privately owned. Eight partners will own the company designation of PartnersThe principal partners of the venture areMr. Usman ShaukatMr. Faisal AmjadMr. Fawad SaleemMr. Hassan MushtaqMr. Qasim JavedMr. Mohammad BabarMr. Mohammad AdeelMr. Fawad ZamanAll these partners have contributed with the same percentage in the total equity of venture. Up to Rs. 0.8 Million has been paid by each party. While the remaining part has been financed from Banks and financing firms.Authority of PrincipalsThe authority is distributed uniformly among all the entrepreneurs. There is no difference in potential for different principals.Management Summary and BackgroundThe entrepreneurs will stay wi thin their expertise in running the daily operations of the facility, along with running and developing various leagues and programs for the community. Back-up for the general partners will include staff members who will compensate for the founders lack of experience in each area. For example, qualified personnel will be hired for the food and beverage and fitness areas. General help staff will be hired on a need basis as the users of the facility increase. There will also be a janitor hired for basic cleanliness and maintenance of the complex.The Entertainer will have a total staff of 13 people in the first year of operation. It is projected that an additional three people will be added each year for the next two years. The majority of the salaries are projected to raise 5% per year for the first three years. This estimate may be conservative.Assessment of RisksAmong the weaknesses come options that we have not included yet, such as swimming pool, Basket Ball, karate club, and oth er products that have been available from our close competitors like pace, AFC and others.New technologiesWe are providing the latest technology in RGZ. And we expecting that for the next 2-5 years, the possibility of change in technology will be low.Financial PlanImportant AssumptionsThe financial plan depends on important assumptions, from the beginning, we recognize that collection old age are critical, but not a factor we can influence easily. At least we are planning on the problem, and dealing with it. Interest rates, tax rates, and personnel burden are based on conservative assumptions.Some of the more important underlying assumptions areWe assume a normal economy(not very strong as in Pakistan), with recession.We assume the rate of growth for the number of sports club memberships will continue.The company assumes that a number of trends are likely to further increase the demand for indoor sports.Break-even analysisThe put on the line analysis considers critical factors that may lead to a failure of the business concept. Such factors can involve failures during the implementation phase as well as during operations. Such potential factors are ordered harmonise to the probability at which they can arise. Shown are the key factors that can lead to the failure. Data is drawn from surveys from five businesses with different services as well as revenue and cost structures.Growth is the core strategy of the company. Development activities require a high level of funding over a long pointedness of time and, over the course of its existence, the company intends to develop or acquire other companies. There is no assurance that additional funding will be available to the company in the future or be secured on acceptable terms. If adequate additional funds are not available, the growth of the company might be significantly lower.The company may be unable to adjust spending quickly enough to offset any unexpected revenue shortfall. If the company has a shortfall in revenue in relation to the expenses, the operating results will suffer. The operating results for any particular quarter may not be indicative of future operating results.The company will experience a period of rapid growth that will result in new and increased responsibilities for existing management personnel. Further, the company will employ a number of additional senior management personnel. The companys growth is expected to continue to place, a significant strain on the companys management and operating and financial systems.. Insufficient demand and wrong talent frequently leads to business failure. This includes permanently low demand as well as a temporary collapse in demand. Often demand estimates were too optimistic at the outset. Such failures might also come from external shocks instead of operating deficiencies.Disruptions or management failures may cause interruptions in service or reduced revenues. If service is not restored in a timely manner, this would reduce revenues or increase costs. Service disruptions could also damage