gzone game shop
DESCRIPTION
Business Plan, Gameshop, Business Development Plan, RMITTRANSCRIPT
GZONE BUSINESS PLAN
Table of Contents
ASSIGNMENT COVER PAGEYour assessment will not be accepted unless all fields below are completed
Subject Code: BUSM3300
Subject Name: Entrepreneurial Ventures
Location where you study: RMIT Vietnam – SGS Campus
Title of Assignment: Business Plan
File(s) Submitted Business Plan
Student name: Nguyen Bao Quan – s3210097
Learning Facilitator in charge:
Mr. Brad Wallace
Assignment due date: 10/09/2010
Date of Submission: 10/09/2010
Number of pages including this one:
37
Word Count: 4985
1.0 Executive Summary 1
1.1 Objectives...................................................................................................................................................... 1
1.2 Mission........................................................................................................................................................... 1
1.3 Keys to Success............................................................................................................................................. 1
2.0 Company Summary............................................................................................................................................ 2Page
Table of Contents
2.1 Company Ownership.......................................................................................................................................... 2
2.2 Start-up Summary.............................................................................................................................................. 2
Table: Start-up................................................................................................................................................. 2
3.0 Products and Services........................................................................................................................................ 3
4.0 Market Analysis Summary.................................................................................................................................. 3
4.1 Market Segmentation......................................................................................................................................... 4
Table: Market Analysis..................................................................................................................................... 4
5.0 Strategy and Implementation Summary.............................................................................................................5
5.1 SWOT Analysis.............................................................................................................................................. 5
5.1.1 Strengths................................................................................................................................................. 5
5.1.2 Weaknesses........................................................................................................................................... 6
5.1.3 Opportunities........................................................................................................................................... 6
5.1.4 Threats.................................................................................................................................................... 6
5.2 Competitive Edge........................................................................................................................................... 6
5.4 Sales Strategy................................................................................................................................................ 6
5.4.1 Sales Forecast........................................................................................................................................ 6
Table: Sales Forecast.................................................................................................................................. 6
6.0 Management Summary...................................................................................................................................... 9
6.1 Personnel Plan............................................................................................................................................... 9
Table: Personnel.............................................................................................................................................. 9
7.0 Financial Plan................................................................................................................................................... 10
7.1 Start-up Funding........................................................................................................................................... 10
Table: Start-up Funding................................................................................................................................. 10
7.2 Break-even Analysis..................................................................................................................................... 11
Table: Break-even Analysis........................................................................................................................... 11
7.3 Projected Profit and Loss............................................................................................................................. 12
Table: Profit and Loss.................................................................................................................................... 12
7.4 Projected Cash Flow.................................................................................................................................... 14
Table: Cash Flow........................................................................................................................................... 14
7.5 Projected Balance Sheet.............................................................................................................................. 16
Table: Balance Sheet..................................................................................................................................... 16
7.6 Business Ratios............................................................................................................................................ 17
Table: Ratios.................................................................................................................................................. 17
Page
GZone Game Shop
1.0 Executive SummaryFollowing up with a good idea, GZone a gaming shop is set up in District One, Ho Chi Minh City
with the core business of providing professional gaming experience with variety of gaming products.
GZone would try its’ best to bring the most satisfactory feeling and convenience as well as trust from
domestic clients with professional and nice services. This report will go through the business concept
and the analysis in marketing, finance as well as management summary in order to help identifying our
business.
The market segmentation of our business is divided by 3 types of customers: amateurs, console
gamers and professional gamers. Because of higher living standard of Vietnamese people, now the
clients tend to have more and more modern entertainment systems. As a result, we were born to meet the
satisfaction of the customers. We hope that this business plan can help the customers to have a good
point of view about our business in this industry.
Company Profile
Company Name : GZone gameshop Inc.
Page 1
Sales
Gross Margin
Net Profit
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
2010 2011 2012
Highlights
GZone Game Shop
Establishment day : 01/01/2010
Location : 101 Ho Tung Mau street, District 1. (HCMC)
Page 2
GZone Game Shop
1.1 Objectives
The objectives for GZone Game Shop:
1. Increase the loyal customer by 6%.
2. Net Profit is about $50 million VND per month.
3. Try to reach the break-even in one year.
4. Gaining market share about 12% after 2 years in operation.
5. Conducting the franchise business model after 3 years.
1.2 Mission
GZone's mission is providing the clients a professional gaming environment. With most modern
console systems and equipment, not only the customers can be please with our variety of choice but
they can also be happy with our expertise services. We have all of solutions that you need.
1.3 Keys to Success
Our keys to be successful in the gaming retailer business:
1. Obvious Definition: We have to identify clearly the market as well as segmentation.
2. Adaptation: Because we insist penetrating into a high-tech business - which is upgraded regularly;
we have well-preparation for any significant changes within the industry.
3. Wide Range of Services: we provide not only the gaming equipment, but also the gaming
services for clients. If the gamers have any difficult in those equipment, they can easy to find
solutions from our experts in GZone.
2.0 Company SummaryGZone - as its name, is a professional gaming service provider. We are desire to help our customers
have best satisfaction and consolidate their gaming passion. We also help the gamers updating with
the newest gaming trends all over the world.
2.1 Company Ownership
GZone, Inc. is truly a limited company which is only owned by only one person - Mr. Quan
Nguyen. There is no any partner existed in this company. Mr. Quan Nguyen is an experienced
businessman which used to lead 5 small business firms in Ho Chi Minh City. He also has great
passion toward young gaming industry of Vietnam. Page 3
GZone Game Shop
2.2 Start-up Summary
The total start-up of our company is about 553,900 USD which is mainly from the long-term assets.
The costs are totally financed by the owner - Mr. Quan Nguyen. He can borrow a part of this money
from his family. Start-up assumptions are shown clearly in the table and chart below.
TABLE: START-UP
Start-up
Requirements
Start-up Expenses
Legal $300 Stationery etc. $200 Insurance $2,300 Computer $1,600 Furnitures $2,900 Other $600 Total Start-up Expenses $7,900
Start-up Assets
Cash Required $31,000 Start-up Inventory $45,000 Other Current Assets $10,000 Long-term Assets $460,000 Total Assets $546,000
Total Requirements $553,900
Page 4
GZone Game Shop
3.0 Products and ServicesGZone has a wide range of products and services for gamers. You can see the summarized tables
below to have more details:
PRODUCT NAME PRODUCT CATEGORY
Xbox 360 Console Gaming System
Playstation 3 Console Gaming System
Wii Console Gaming System
NDS (Nintendo) Handheld Gaming System
PSP (Playstation Portable) Handheld Gaming System
GAMES Game discs
GZone Services Gaming Solutions Center
Page 5
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Expenses Assets Investment Loans
Start-up
GZone Game Shop
4.0 Market Analysis SummaryThe primary market of GZone is Vietnam customers who enjoy playing games with the average age
from 12 to 35 years old. In particular, Ho Chi Minh is the most developed city in Vietnam with
higher living standard in comparison with other regions. People in this Ho Chi Minh also has tend to
use more Internet and gaming systems than the other territories. According to World Bank (2010),
Vietnam was ranked in the top 20 Internet usage countries - about 24.3 million Internet clients but
among of them are 13 millions gamers. These numbers show us an overview about the hasty
expansion of electronic entertainment in Vietnam. Moreover, there are approximately 6000 Internet
cafe in Vietnam which are mainly served for gaming experience (ICT Vietnam, 2006).
4.1 Market Segmentation
Description
We divided the gamers into three types: Amateurs, Console Gamers and
Professional PC Gamers. In particular, we try to focus to the parents of teenagers
from 12 to 15 years old since these youngsters do not have enough condition to buy
for themselves gaming products. According to PV (2009), Vietnam has
approximately of 8.7 millions Amateurs - who just play game for relax, 3.1 millions
Console Gamers - who like playing game through console systems such as
Playstation, Xbox, and about 1.2 millions Professional (or Hardcore) PC Gamers -
who're addicting and earning money from games.
Psychographic
Segmentation
Most of the gamers who can afford to buy our products must be from middle to
high class income people in Vietnam. They can be easy going and sociable persons
who do not care much about the gaming shop. They just only notice about the
brandname of the products (such as Xbox 360 of Microsoft or Playstation 3 of
Sony, etc.). In particular:
- Amateurs: they do not care much about the brandname of the other accessories
such as mouse or keyboard. They just need fun game discs to play and they don't
addict to any gaming series.
- Console Gamers: they take care in necessary equipment such as joysticks or
gaming controllers. They like playing famous or unique games in each gaming
system. They can be a fan of some gaming characters.
Page 6
GZone Game Shop
- Professional PC Gamers: they always take care everything in their gaming set,
including the gamepad as well as supported softwares. They like searching for
detailed information about the game they play. Moreover, they like mastering a
gaming title (like some Korean guys go-pro in Starcraft, a strategy game) before
playing another.
Behavioural
Segmentation
All of three gamer types are like being curious about new hot products from famous
producers.
TABLE: MARKET ANALYSIS
Market Analysis
2010 2011 2012 2013 2014
Potential Customers Growth CAGR
Amateurs 8% 8,700,000 9,396,000 10,147,680 10,959,494 11,836,254 8.00%
Console Gamers 2% 3,100,000 3,146,500 3,193,698 3,241,603 3,290,227 1.50%
Professional PC Gamers 1% 1,200,000 1,212,000 1,224,120 1,236,361 1,248,725 1.00%
Total 5.94% 13,000,000 13,754,500 14,565,498 15,437,458 16,375,206 5.94%
5.0 SWOT Analysis5.1.1 Strengths
Page 7
Amateurs (including students, pupils, officers, etc.)
Console Gamers
Professional PC Gamers
Market Analysis (Pie)
GZone Game Shop
We provide updated gaming equipment as well as systems for domestic customers. When clients
come to our shop, they can be satisfactory with a lot of strange and premium gaming accessories which
do not appear on the market yet. The experts of gaming engineer in our shop also help them to have
quick solutions for any problem. And last but not least, we provide original game discs for hardcore
gamers – the ones who do not want to violate to piracy policy.
5.1.2 WeaknessesWe are just only a new and fresh start-up company and we do not have any reputation toward the
market yet. And because the gaming machine are manufactured by the most famous producers such as
Microsoft and Sony; hence, we cannot have any creativity or innovation in order to impress the clients.
5.1.3 OpportunitiesWe can buy the cheaper of hardware for our products because of decrease price overtime of
hardware. Moreover, Vietnamese people now have trend to use the original game disc with copyright.
The parents like buying for their children the gaming equipment for them to play at home instead of let
them hang out. Lastly, more and more best quality games designed for gamers by famous gaming
producers.
5.1.4 ThreatsBecause of the overtime decrease in hardware price, our company has to calculate the inventory
carefully if we do not want to have a big loss for overvalue price. Moreover, the appearance of smart
phones such as BlackBerry or iPhone gives a big threats to gaming systems.
Page 8
GZone Game Shop
5.2 Competitive Edge
Competitors’ Profile AnalysisCompetitive factor Hiepluc
Gameshop
Halo
Gameshop
Xgame
Gameshop
GZone
Gameshop
(our company)
Product uniqueness 2 3 4 4
Product quality 2 3 3 4
Product price 1 3 3 3
Company’s service 2 3 4 4
Convenience/avaiability 2 2 1 4
Reputation 3 3 4 1
Location 4 4 3 4
PR & Advertising 1 2 4 4
Staffs’ quality 2 2 3 3
Inventory cost 1 1 2 4
Finance 2 3 4 4
Production Capacity 1 1 3 4
Total points 23 30 38 43
On the table above, we can see that the Xgame is our main and toughest competitor. The company
has high reputation through the excellent products quality. They have very beautiful and professional
website which help them a lot in promoting the image of the company. They also have good staff
which help the company be the first place for gaming solution.
Page 9
GZone Game Shop
5.4 Sales Strategy
We sell both the products and services. The console gaming system of Xbox 360 and Wii are sold
with the modded chip in order to help the customers be able to play with cheap copied gaming discs.
We also fix the bugs and errors of these systems once the clients have problems. GZone also updates
the newest games and accessories manufactured by famous companies all over the world. We want
to provide the best solutions for gamers with reasonable prices.
5.4.1 Sales Forecast
TABLE: SALES FORECAST
Sales Forecast
2010 2011 2012
Unit Sales
Xbox 360 144 167 198
Playstation 3 105 109 118
Wii 113 116 125
Game discs 1,486 1,679 1,720
Accessories 166 179 186
Other handheld gaming systems 98 113 129
Total Unit Sales 2,111 2,363 2,476
Unit Prices 2010 2011 2012
Xbox 360 $256.00 $256.00 $256.00
Playstation 3 $300.00 $300.00 $300.00
Wii $209.00 $209.00 $209.00
Game discs $11.00 $11.00 $11.00
Accessories $70.00 $70.00 $70.00
Other handheld gaming systems $217.00 $217.00 $217.00
Sales
Xbox 360 $36,812 $42,752 $50,688
Playstation 3 $31,500 $32,700 $35,400
Wii $23,617 $24,244 $26,125
Game discs $16,343 $18,469 $18,920
Accessories $11,620 $12,530 $13,020
Page 10
GZone Game Shop
Other handheld gaming systems $21,266 $24,521 $27,993
Total Sales $141,157 $155,216 $172,146
Direct Unit Costs 2010 2011 2012
Xbox 360 $102.40 $102.40 $102.40
Playstation 3 $150.00 $150.00 $150.00
Wii $125.40 $125.40 $125.40
Game discs $0.99 $0.99 $0.99
Accessories $28.00 $28.00 $28.00
Other handheld gaming systems $86.80 $86.80 $86.80
Direct Cost of Sales
Xbox 360 $14,725 $17,101 $20,275
Playstation 3 $15,750 $16,350 $17,700
Wii $14,170 $14,546 $15,675
Game discs $1,471 $1,662 $1,703
Accessories $4,648 $5,012 $5,208
Other handheld gaming systems $8,506 $9,808 $11,197
Subtotal Direct Cost of Sales $59,270 $64,480 $71,758
Page 11
Xbox 360
Playstation 3
Wii
Game discs
Accessories
Other handheld gaming systems
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
Jan
Feb
Mar
Apr
May
Jun
JulA
ugS
epO
ctN
ovD
ec
Sales Monthly
GZone Game Shop
We forecast that the Xbox 360 will be our main line of product because it’s cheaper than Playstation 3
and it has a large gaming library for gamers to choose. Moreover, the Xbox also provides gamers large
hard-drive storage with the memory up to 250GB while the Playstation 3 or the other console systems
can have just only maximum of 120GB of HDD. And the game discs of Xbox 360 are much cheaper
than Playstation 3.
Page 12
Xbox 360
Playstation 3
Wii
Game discs
Accessories
Other handheld gaming systems
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
2010 2011 2012
Sales by Year
GZone Game Shop
6.0 Personnel Plan
TABLE: PERSONNEL Personnel Plan
2010 2011 2012
Board of Director (Mr. Quan Nguyen) $12,000 $12,000 $12,000
Computer engineering experts $16,800 $16,800 $16,800
Products sales agents $12,000 $12,000 $12,000
Warehouse keepers $1,920 $1,920 $1,920
Total People 12 12 12
Total Payroll $42,720 $42,720 $42,720
We forecast the salary of human resource in our company. Our company will need approximately
of 12 people in following aspects: 1 Director, 5 sales agents included persons who communicates with
the clients and 1 guys who import the clients’ profile data and products’ information into the computer. 3
computer engineering experts in the service center who help the clients to find solutions for their gaming
systems problems. And lastly, 3 warehouse keepers who are responsible for the importing, manging
inventory. According to the table over there, most of the salary fund will be spend for the Director – Mr.
Quan.
Page 13
Gaming ProductsProducts Sales AgentsService CenterOtherWarehouse Keepers
GZone Game Shop
7.0 Financial Plan
7.1 Start-up Funding
The start-up is funded mostly by the owner- Mr. Quan Nguyen with the approximately of $554,00.
The main cost of this fund is consumed for the headquarter of the company which is based in District
1, HCMC (a small shop costs $460,000).
TABLE: START-UP FUNDING Start-up Funding
Start-up Expenses to Fund $7,900
Start-up Assets to Fund $546,000
Total Funding Required $553,900
Assets
Non-cash Assets from Start-
up$515,000
Cash Requirements from
Start-up$31,000
Additional Cash Raised $0
Cash Balance on Starting
Date$31,000
Total Assets $546,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable
(Outstanding Bills)$0
Other Current Liabilities
(interest-free)$0
Total Liabilities $0
Capital
Page 14
GZone Game Shop
Planned Investment
Owner $430,000
Investor $0
Additional Investment
Requirement$123,900
Total Planned Investment $553,900
Loss at Start-up (Start-up
Expenses)($7,900)
Total Capital $546,000
Total Capital and Liabilities $546,000
Total Funding $553,900
7.2 Break-even Analysis
TABLE: BREAK-EVEN ANALYSIS
Break-even Analysis
Monthly Units Break-even 127
Monthly Revenue Break-even $8,505
Assumptions:
Average Per-Unit Revenue $66.87
Average Per-Unit Variable Cost $28.08
Estimated Monthly Fixed Cost $4,934
Page 15
GZone Game Shop
In order to be break-even each month, we have to sell at least 127 units with the revenue of $8,505. This
objective is achievable because we have a good position for business (the shop located in District 1,
which is a commercial zone and gathered with a lot of companies there). Moreover, this industry has
been attracting a lot of young customers. Everyone like playing games, controlling a hero, killing
monsters or cooperating with friends in a long virtual journey.
Page 16
$0
$1,000
$2,000
$3,000
$4,000
($1,000)
($2,000)
($3,000)
($4,000)
0 20 40 60 80 100 120 140 160 180 200 220
Break-even Analysis
GZone Game Shop
7.3 Projected Profit and Loss
TABLE: PROFIT AND LOSS
Pro Forma Profit and Loss
2010 2011 2012
Sales $141,157 $155,216 $172,146
Direct Cost of Sales $59,270 $64,480 $71,758
Other Costs of Sales $8,040 $12,980 $13,180
Total Cost of Sales $67,310 $77,460 $84,938
Gross Margin $73,847 $77,756 $87,208
Gross Margin % 52.32% 50.10% 50.66%
Expenses
Payroll $42,720 $42,720 $42,720
Marketing/Promotion $7,692 $7,692 $7,692
Depreciation $982 $1,290 $1,367
Insurance $2,292 $3,200 $3,200
Payroll Taxes $5,520 $7,360 $7,900
Total Operating Expenses $59,206 $62,262 $62,879
Profit Before Interest and Taxes $23,783 $24,636 $33,471
EBITDA $24,765 $25,926 $34,838
Interest Expense $0 $0 $0
Taxes Incurred $7,135 $7,391 $10,041
Other Income
Advertisement on website $8,196 $8,196 $8,196
Event $946 $946 $946
Total Other Income $9,142 $9,142 $9,142
Other Expense
Other Expense Account Name $0 $0 $0
Page 17
GZone Game Shop
Other Expense Account Name $0 $0 $0
Total Other Expense $0 $0 $0
Net Other Income $9,142 $9,142 $9,142
Net Profit $16,648 $17,245 $23,430
Net Profit/Sales 11.79% 11.11% 13.61%
Page 18
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
($500)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Profit Monthly
$0
$3,000
$6,000
$9,000
$12,000
$15,000
$18,000
$21,000
$24,000
2010 2011 2012
Profit Yearly
GZone Game Shop
Page 19
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Gross Margin Monthly
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
2010 2011 2012
Gross Margin Yearly
GZone Game Shop
7.4 Projected Cash Flow
TABLE: CASH FLOW
Pro Forma Cash Flow
2010 2011 2012
Cash Received
Cash from Operations
Cash Sales $141,157 $155,216 $172,146
Subtotal Cash from Operations $141,157 $155,216 $172,146
Additional Cash Received
Non Operating (Other) Income $9,142 $9,142 $9,142
Sales Tax, VAT, HST/GST
Received$14,116 $15,522 $17,215
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-
free)$0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $164,415 $179,880 $198,503
Expenditures 2010 2011 2012
Expenditures from Operations
Cash Spending $42,720 $42,720 $42,720
Bill Payments $86,949 $102,047 $118,379
Subtotal Spent on Operations $129,669 $144,767 $161,099
Additional Cash Spent
Non Operating (Other) Expense $0 $0 $0
Sales Tax, VAT, HST/GST Paid
Out$29,164 $32,421 $33,418
Page 20
GZone Game Shop
Principal Repayment of Current
Borrowing$0 $0 $0
Other Liabilities Principal
Repayment$0 $0 $0
Long-term Liabilities Principal
Repayment$0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $30,000
Dividends $0 $0 $0
Subtotal Cash Spent $158,833 $177,188 $224,517
Net Cash Flow $5,582 $2,691 ($26,014)
Cash Balance $36,582 $39,273 $13,258
Page 21
Net Cash Flow
Cash Balance$0
$20,000
$40,000
$60,000
$80,000
($20,000)
($40,000)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Cash
GZone Game Shop
7.5 Projected Balance Sheet
The table below shows the balance sheet for GZone and it reflects the really positive cash position
through period and the growth of the net worth, reaching about 603,323 USD in 2012.
TABLE: BALANCE SHEET
Pro Forma Balance Sheet
2010 2011 2012
Assets
Current Assets
Cash $36,582 $39,273 $13,258
Inventory $45,730 $49,749 $55,365
Other Current Assets $10,000 $10,000 $10,000
Total Current Assets $92,312 $99,022 $78,623
Long-term Assets
Long-term Assets $460,000 $460,000 $490,000
Accumulated Depreciation $982 $2,272 $3,639
Total Long-term Assets $459,018 $457,728 $486,361
Total Assets $551,330 $556,750 $564,984
Liabilities and Capital 2010 2011 2012
Current Liabilities
Accounts Payable $3,730 $8,805 $9,813
Current Borrowing $0 $0 $0
Other Current Liabilities ($15,048) ($31,948) ($48,151)
Subtotal Current Liabilities ($11,318) ($23,143) ($38,338)
Long-term Liabilities $0 $0 $0
Total Liabilities ($11,318) ($23,143) ($38,338)
Paid-in Capital $553,900 $553,900 $553,900
Retained Earnings ($7,900) $8,748 $25,993
Page 22
GZone Game Shop
Earnings $16,648 $17,245 $23,430
Total Capital $562,648 $579,893 $603,323
Total Liabilities and Capital $551,330 $556,750 $564,984
Net Worth $562,648 $579,893 $603,323
7.6 Business Ratios
The table shows us an overview about our company ratios. We would like to focus to the Gross
Margin and Net Profit proportion in comparison with the Industry. Moreover, we also would like to
improve the inventory turnover.
TABLE: RATIOS Ratio Analysis
2010 2011 2012 Industry Profile
Sales Growth 0.00% 9.96% 10.91% 2.32%
Percent of Total Assets
Inventory 8.29% 8.94% 9.80% 35.93%
Other Current Assets 1.81% 1.80% 1.77% 27.38%
Total Current Assets 16.74% 17.79% 13.92% 90.81%
Long-term Assets 83.26% 82.21% 86.08% 9.19%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities -2.05% -4.16% -6.79% 38.89%
Long-term Liabilities 0.00% 0.00% 0.00% 11.96%
Total Liabilities -2.05% -4.16% -6.79% 50.85%
Net Worth 102.05% 104.16% 106.79% 49.15%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 52.32% 50.10% 50.66% 26.24%
Selling, General & Administrative Expenses 40.52% 38.98% 37.05% 12.30%
Advertising Expenses 5.45% 4.96% 4.47% 0.73%
Profit Before Interest and Taxes 16.85% 15.87% 19.44% 1.58%
Main Ratios
Page 23
GZone Game Shop
Current -8.16 -4.28 -2.05 2.05
Quick -4.12 -2.13 -0.61 0.94
Total Debt to Total Assets -2.05% -4.16% -6.79% 53.86%
Pre-tax Return on Net Worth 4.23% 4.25% 5.55% 10.00%
Pre-tax Return on Assets 4.31% 4.42% 5.92% 4.61%
Additional Ratios 2010 2011 2012
Net Profit Margin 11.79% 11.11% 13.61% n.a
Return on Equity 2.96% 2.97% 3.88% n.a
Activity Ratios
Inventory Turnover 1.59 1.35 1.37 n.a
Accounts Payable Turnover 24.31 12.17 12.17 n.a
Payment Days 27 21 28 n.a
Total Asset Turnover 0.26 0.28 0.30 n.a
Debt Ratios
Debt to Net Worth -0.02 -0.04 -0.06 n.a
Current Liab. to Liab. 0.00 0.00 0.00 n.a
Liquidity Ratios
Net Working Capital $103,630 $122,165 $116,962 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 3.91 3.59 3.28 n.a
Current Debt/Total Assets -2% -4% -7% n.a
Acid Test 0.00 0.00 0.00 n.a
Sales/Net Worth 0.25 0.27 0.29 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Page 24
Appendix
TABLE: SALES FORECAST
Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Unit Sales
Xbox 360 6 8 10 8 8 11 12 12 24 10 16 19
Playstation 3 4 9 6 5 7 8 10 10 11 9 12 14
Wii 5 10 7 8 10 11 12 10 10 6 10 14
Game discs 102 115 112 107 98 129 150 142 138 139 112 142
Accessories 7 12 9 8 8 13 16 17 16 20 19 21
Other handheld gaming
systems5 6 4 5 4 9 11 12 10 9 9 14
Total Unit Sales 129 160 148 141 135 181 211 203 209 193 178 224
Unit Prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Xbox 360 $256.00 $256.00 $256.00 $256.00 $256.00 $256.00 $256.00 $256.00 $256.00 $256.00 $256.00 $256.00
Playstation 3 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00
Wii $209.00 $209.00 $209.00 $209.00 $209.00 $209.00 $209.00 $209.00 $209.00 $209.00 $209.00 $209.00
Game discs $0.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00
Accessories $0.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $70.00
Other handheld gaming
systems$0.00 $217.00 $217.00 $217.00 $217.00 $217.00 $217.00 $217.00 $217.00 $217.00 $217.00 $217.00 $217.00
Sales
Xbox 360 $1,536 $2,048 $2,560 $2,048 $2,048 $2,816 $3,072 $3,072 $6,092 $2,560 $4,096 $4,864
Playstation 3 $1,200 $2,700 $1,800 $1,500 $2,100 $2,400 $3,000 $3,000 $3,300 $2,700 $3,600 $4,200
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Wii $1,045 $2,090 $1,463 $1,672 $2,090 $2,299 $2,508 $2,090 $2,090 $1,254 $2,090 $2,926
Game discs $1,122 $1,268 $1,232 $1,177 $1,078 $1,419 $1,655 $1,560 $1,517 $1,526 $1,231 $1,557
Accessories $490 $840 $630 $560 $560 $910 $1,120 $1,190 $1,120 $1,400 $1,330 $1,470
Other handheld gaming
systems$1,085 $1,302 $868 $1,085 $868 $1,953 $2,387 $2,604 $2,170 $1,953 $1,953 $3,038
Total Sales $6,478 $10,248 $8,553 $8,042 $8,744 $11,797 $13,742 $13,516 $16,289 $11,393 $14,300 $18,055
Direct Unit Costs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Xbox 360 40.00% $102.40 $102.40 $102.40 $102.40 $102.40 $102.40 $102.40 $102.40 $102.40 $102.40 $102.40 $102.40
Playstation 3 50.00% $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00
Wii 60.00% $125.40 $125.40 $125.40 $125.40 $125.40 $125.40 $125.40 $125.40 $125.40 $125.40 $125.40 $125.40
Game discs 9.00% $0.99 $0.99 $0.99 $0.99 $0.99 $0.99 $0.99 $0.99 $0.99 $0.99 $0.99 $0.99
Accessories 40.00% $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00 $28.00
Other handheld gaming
systems40.00% $86.80 $86.80 $86.80 $86.80 $86.80 $86.80 $86.80 $86.80 $86.80 $86.80 $86.80 $86.80
Direct Cost of Sales
Xbox 360 $614 $819 $1,024 $819 $819 $1,126 $1,229 $1,229 $2,437 $1,024 $1,638 $1,946
Playstation 3 $600 $1,350 $900 $750 $1,050 $1,200 $1,500 $1,500 $1,650 $1,350 $1,800 $2,100
Wii $627 $1,254 $878 $1,003 $1,254 $1,379 $1,505 $1,254 $1,254 $752 $1,254 $1,756
Game discs $101 $114 $111 $106 $97 $128 $149 $140 $137 $137 $111 $140
Accessories $196 $336 $252 $224 $224 $364 $448 $476 $448 $560 $532 $588
Other handheld gaming
systems$434 $521 $347 $434 $347 $781 $955 $1,042 $868 $781 $781 $1,215
Subtotal Direct Cost of Sales $2,572 $4,394 $3,512 $3,336 $3,791 $4,979 $5,785 $5,641 $6,793 $4,605 $6,116 $7,745
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Appendix
TABLE: PERSONNEL
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Board of Director (Mr. Quan Nguyen) $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Computer engineering experts $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $1,400
Products sales agents $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Warehouse keepers $160 $160 $160 $160 $160 $160 $160 $160 $160 $160 $160 $160
Total People 12 12 12 12 12 12 12 12 12 12 12 12
Total Payroll $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560
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Appendix
TABLE: PROFIT AND LOSS
Pro Forma Profit and Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $6,478 $10,248 $8,553 $8,042 $8,744 $11,797 $13,742 $13,516 $16,289 $11,393 $14,300 $18,055
Direct Cost of Sales $2,572 $4,394 $3,512 $3,336 $3,791 $4,979 $5,785 $5,641 $6,793 $4,605 $6,116 $7,745
Other Costs of Sales $670 $670 $670 $670 $670 $670 $670 $670 $670 $670 $670 $670
Total Cost of Sales $3,242 $5,064 $4,182 $4,006 $4,461 $5,649 $6,455 $6,311 $7,463 $5,275 $6,786 $8,415
Gross Margin $3,236 $5,184 $4,371 $4,036 $4,283 $6,148 $7,287 $7,205 $8,826 $6,118 $7,513 $9,641
Gross Margin % 49.95% 50.59% 51.10% 50.18% 48.98% 52.12% 53.03% 53.31% 54.18% 53.70% 52.54% 53.40%
Expenses
Payroll $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560
Marketing/Promotion $641 $641 $641 $641 $641 $641 $641 $641 $641 $641 $641 $641
Depreciation $70 $72 $74 $76 $78 $80 $82 $84 $87 $90 $93 $96
Insurance $191 $191 $191 $191 $191 $191 $191 $191 $191 $191 $191 $191
Payroll Taxes 15% $460 $460 $460 $460 $460 $460 $460 $460 $460 $460 $460 $460
Total Operating Expenses $4,922 $4,924 $4,926 $4,928 $4,930 $4,932 $4,934 $4,936 $4,939 $4,942 $4,945 $4,948
Profit Before Interest and Taxes ($1,003) $943 $128 ($209) $36 $1,899 $3,036 $2,952 $4,570 $1,859 $3,251 $6,322
EBITDA ($933) $1,015 $202 ($133) $114 $1,979 $3,118 $3,036 $4,657 $1,949 $3,344 $6,418
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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Taxes Incurred ($301) $283 $38 ($63) $11 $570 $911 $886 $1,371 $558 $975 $1,896
Other Income
Advertisement on website $683 $683 $683 $683 $683 $683 $683 $683 $683 $683 $683 $683
Event $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $946
Total Other Income $683 $683 $683 $683 $683 $683 $683 $683 $683 $683 $683 $1,629
Other Expense
Other Expense Account Name $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Expense Account Name $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Other Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Other Income $683 $683 $683 $683 $683 $683 $683 $683 $683 $683 $683 $1,629
Net Profit ($702) $660 $89 ($147) $25 $1,329 $2,125 $2,066 $3,199 $1,301 $2,276 $4,425
Net Profit/Sales -10.84% 6.44% 1.05% -1.82% 0.28% 11.27% 15.46% 15.29% 19.64% 11.42% 15.92% 24.51%
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Appendix
TABLE: CASH FLOW
Pro Forma Cash Flow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received
Cash from Operations
Cash Sales $6,478 $10,248 $8,553 $8,042 $8,744 $11,797 $13,742 $13,516 $16,289 $11,393 $14,300 $18,055
Subtotal Cash from Operations $6,478 $10,248 $8,553 $8,042 $8,744 $11,797 $13,742 $13,516 $16,289 $11,393 $14,300 $18,055
Additional Cash Received
Non Operating (Other) Income $683 $683 $683 $683 $683 $683 $683 $683 $683 $683 $683 $1,629
Sales Tax, VAT, HST/GST Received 10.00% $648 $1,025 $855 $804 $874 $1,180 $1,374 $1,352 $1,629 $1,139 $1,430 $1,806
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $7,809 $11,956 $10,091 $9,529 $10,301 $13,659 $15,800 $15,550 $18,601 $13,215 $16,413 $21,490
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations
Cash Spending $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560 $3,560
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Bill Payments $55 $1,680 $2,237 $1,997 $1,902 $1,991 $2,543 $2,872 $4,864 $61,306 $2,534 $2,968
Subtotal Spent on Operations $3,615 $5,240 $5,797 $5,557 $5,462 $5,551 $6,103 $6,432 $8,424 $64,866 $6,094 $6,528
Additional Cash Spent
Non Operating (Other) Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Tax, VAT, HST/GST Paid Out $2,300 $2,323 $2,346 $2,369 $2,393 $2,417 $2,441 $2,465 $2,490 $2,515 $2,540 $2,565
Principal Repayment of Current
Borrowing$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal
Repayment$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal
Repayment$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $5,915 $7,563 $8,143 $7,926 $7,855 $7,968 $8,544 $8,897 $10,914 $67,381 $8,634 $9,093
Net Cash Flow $1,893 $4,393 $1,948 $1,603 $2,447 $5,691 $7,256 $6,653 $7,687 ($54,165) $7,779 $12,396
Cash Balance $32,893 $37,286 $39,234 $40,838 $43,284 $48,975 $56,231 $62,884 $70,571 $16,406 $24,185 $36,582
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Appendix
TABLE: BALANCE SHEET
Pro Forma Balance
Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
AssetsStarting
Balances
Current Assets
Cash $31,000 $32,893 $37,286 $39,234 $40,838 $43,284 $48,975 $56,231 $62,884 $70,571 $16,406 $24,185 $36,582
Inventory $45,000 $42,428 $38,033 $34,522 $31,185 $27,394 $22,415 $16,630 $10,989 $64,196 $59,591 $53,474 $45,730
Other Current Assets $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Total Current Assets $86,000 $85,321 $85,320 $83,756 $82,023 $80,678 $81,390 $82,861 $83,873 $144,767 $85,997 $87,660 $92,312
Long-term Assets
Long-term Assets $460,000 $460,000 $460,000 $460,000 $460,000 $460,000 $460,000 $460,000 $460,000 $460,000 $460,000 $460,000 $460,000
Accumulated
Depreciation$0 $70 $142 $216 $292 $370 $450 $532 $616 $703 $793 $886 $982
Total Long-term Assets $460,000 $459,930 $459,858 $459,784 $459,708 $459,630 $459,550 $459,468 $459,384 $459,297 $459,207 $459,114 $459,018
Total Assets $546,000 $545,251 $545,178 $543,540 $541,731 $540,308 $540,940 $542,329 $543,257 $604,064 $545,204 $546,774 $551,330
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Liabilities
Accounts Payable $0 $1,606 $2,170 $1,934 $1,836 $1,907 $2,447 $2,777 $2,753 $61,222 $2,436 $2,840 $3,730
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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Appendix
Other Current Liabilities $0 ($1,652) ($2,950) ($4,441) ($6,006) ($7,524) ($8,762) ($9,829) ($10,942) ($11,803) ($13,179) ($14,289) ($15,048)
Subtotal Current
Liabilities$0 ($47) ($780) ($2,507) ($4,170) ($5,618) ($6,315) ($7,052) ($8,189) $49,419 ($10,743) ($11,449) ($11,318)
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 ($47) ($780) ($2,507) ($4,170) ($5,618) ($6,315) ($7,052) ($8,189) $49,419 ($10,743) ($11,449) ($11,318)
Paid-in Capital $553,900 $553,900 $553,900 $553,900 $553,900 $553,900 $553,900 $553,900 $553,900 $553,900 $553,900 $553,900 $553,900
Retained Earnings ($7,900) ($7,900) ($7,900) ($7,900) ($7,900) ($7,900) ($7,900) ($7,900) ($7,900) ($7,900) ($7,900) ($7,900) ($7,900)
Earnings $0 ($702) ($42) $47 ($99) ($74) $1,255 $3,380 $5,447 $8,645 $9,947 $12,223 $16,648
Total Capital $546,000 $545,298 $545,958 $546,047 $545,901 $545,926 $547,255 $549,380 $551,447 $554,645 $555,947 $558,223 $562,648
Total Liabilities and
Capital$546,000 $545,251 $545,178 $543,540 $541,731 $540,308 $540,940 $542,329 $543,257 $604,064 $545,204 $546,774 $551,330
Net Worth $546,000 $545,298 $545,958 $546,047 $545,901 $545,926 $547,255 $549,380 $551,447 $554,645 $555,947 $558,223 $562,648
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