technology enterpenoureship report

5/19/2018 Technology Enterpenoureship Report

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Company Team Members:

Muhammed Tajveed

Shahid Latif

Ali Altaf

Ghouse Qadri

Yasir Syed

Omer Khan


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Executive Summary:

TG game expects to launch in June 2014 and will offer game playing facilitiesinitially in Karachi, The service offered will before game players to have aunique experience of playing video games on world class facilities. The targetgroup of customers is children, youths, adults and anyone who is interested inleisure and video games. TG game plans for a strong market entrance by

offering up to date versions of games such as the ones of Play Stations, XBox,PSP, Nintendo, etc., the company will entertain users with the best videogaming experience possible and a facility which is impossible to be recreated athome. The facility shall have other games such as arcade games, shootinggames, strategy games, sport games, adventurous games, etc., with single andmultiplayer options.

We offer the following:

Game concepts and development for PC, PS2, XBox, Pocket PC.

Game platform ports: PC/PS2/XBox/Game Boy

2D and 3D art, programming, libraries to spec.

Interface design and software enhancement.

Cohesive, talented development team with years of experience shipping

products together.

Proven track record: DremWhyrks series has over 3 million units soldto date.

On time and on budget shipping.

Objectives:

Objectives

Gaming Futures' objectives are as follows:

Achieve sales goal of 200,000 during first year of operation.

Achieve a customer base of 40 companies.

Increase sales by 15% during the second year of operation.

Mission:

The mission of Gaming Futures is to provide the highest quality servicethrough the development of innovative, exciting products to the interactive

entertainment industry.


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Company Summary:

Gaming Futures, LLC, is a game development studio providing Windows

application development/support, PS2 development, XBox development, 2Dand 3D art and visual effects, and project guidance. The company will beorganized as a Limited Liability Corporation.

Start-up Summary:

The start-up expense for the Gaming Futures is focused primarilyon equipment and office space. And will each invest 35,000. In addition,Gaming Futures will secure a 100,000 long term loan.

Start-up Funding

Start-up Expenses to Fund 124,300

Start-up Assets to Fund 150,700


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Services:

Gaming Futures' cohesive, talented development team offer their clients:

Game concepts and development for PC, PS2, Xbox, Pocket PC

Game platform ports: PC/PS2/Xbox/Game Boy

2D and 3D art, programming, libraries to spec.

Interface design and software enhancement.

On time and on budget shipping.

Market Analysis Summary:

According to a new report from DFC Intelligence, recent sales indicate that thevideo game market is poised for impressive growth. The report forecasts thatannual unit sales of video games and PC games in the U.S. is expected to growover 40% from 2014 to 2019. The successful introduction of four new gamesystems in 2014 and 2019 meant that the industry was able to avoid the majordownturn in sales that has occurred in past platform transitions. According toDFC Intelligence, the industry should experience another year of record salesin 2014.

Service Business Analysis:

Companies are combating development costs by outsourcing segments of the

development project. Currently, it is estimated that 30% of project work isoutsourced. There are a number of advantages to this strategy.

By outsourcing, companies can take advantage of a tremendous gamingexperience base without paying the personnel price tag to retain the talent onpayroll. By negotiating a price for the outsourcing, companies can also capdevelopment cost. More importantly, as few larger companies compete in the

marketplace for dominance, a number of service firms will emerge to fill thedemand for quality developers that are necessary for specific projects, muchlike the rest of software industry. It is estimated that product development inthe software industry can save upwards to 30% of development costs byoutsourcing key elements of the development process.


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Competition and Buying Patterns:

The interactive game industry is based on the hype that is created by core

players. The ability to create product that satisfies the gaming demands of coreplayers is a critical consideration when outsourcing opportunities emerge. Thisunique cultural aspect of the industry influences how companies outsource.

Technological expertise is secondary to the ability to create a product that thetarget group will immediately be comfortable with. Companies are looking forproduction track records with products with similar play devices that werefocused on similar target users. Typically, a selected group of firms are askedto submit proposals for the outsourcing assignment much like an ad campaign.The firm with the best ideas and the best talent to implement the idea gets thecontract. Over 80% of the interactive game companies have outsourcedsegments of game development. This represents a client base of 400companies.

Currently there are 100+ firms that compete for outsourcing contracts in theinteractive game industry. Because of the unique cultural aspect of theinteractive gaming community, companies specialize in gaming devices or usergroups in order to gain advantage in the proposal process.

The team's track record is the most important pivotal issue when competing foroutsourcing contracts. A firm that has an intact team that has achieved pastproject goals has an advantage in the bidding process. Production companies

are looking for assurances that deadlines will be met and the quality will bethere. The production of a game is on a tight schedule and any missed

deadline will ripple effect over the entire project, and could result in missedrevenues and increased expenses.

Strategy and Implementation Summary:

Gaming Futures' developers, have extensive connections throughout thegaming industry. They will be responsible for marketing the company's services

to potential customers.

Competitive Edge:

The competitive advantage of Gaming Futures is always bringing in a projectbefore the projected deadline. As noted in the Market Analysis Summary, oneof the greatest challenges will be production costs. Nowhere is this more criticalthan with outsourced projects. If a company can produce by deadline, they willget more work.


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Marketing Strategy:

The team has created a presentation program that will be the centerpiece of the

marketing program.

Currently, the company has been successful in acquiring three contracts withthe following companies:

Clear Mountain Productions

Weaver Farm, Inc.

The company will continue to aggressively pursue new contracts.

Key to Success:

TG game will deploy various strategies in making sure the company capturesthe market fully:

1)

Being the first to enter the market and create a good reputation in the

unique game experience the company offers.2)

Targeting an active game playing group of customers i.e. Children,youths, adults.

3)

Having a wide option of packages and affordable price prices per eachpackage.

4) Having low administrative costs which will ensure good profitability forthe company

5)

TG game will release very new and exciting games of interest to thecustomers.

6)

The entrepreneur is from a business family and intends to start thisbusiness in Sweden. TG game is the first player to enter the Swedishgame-playing facility offering business in outside of the country.


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Business Idea:

who are used to games to use the facility. Game zone will provide anelectrifying and a never-before real gaming experience for people acquainted to

games. The users shall be charged on an hourly basis or on per day basis forplaying games. As figured out in Products and Services part, there will bedifferent packages with various prices. Game Corner will release very new andexciting games of interest to the user.


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Pain Statement:

A number of video games consoles like the Play Stations, Nintendo Wiis, XBoxand other computer games, etc., are being released every day. There are newgames and new versions that a brand new game bought gets old even before we

reach home as there are new versions Game Developer Index (2010). Userscannot afford to buy everything and on the other hand there are thrilling gamesthat requires clarity and space that it cannot be played at home. Althoughthese games could be played at home, playing them on big screens, in a niceAtmosphere with friends and new competitors, in front of a lot of other peoplegives a different experience. In that sense, TG game has the vision of takingvirtual friendships to real ones through letting players to hear their rivals`

breaths and laughs while playing in the same platform. Game Corner willprovide facilities for an enchanting experience and updated games and versions

which will induce any game lover to feel the good effect.

Value Proposition:

TG game will offer a facility that cannot be recreated at home. The big screens,clarity and the effect will be worked upon to make sure that the user enjoys theexperience and Comes every time for that kind of effect and quality.

How to Make Profit:

TG game generates profit by charging customers on an hourly basis or on apackage basis. After the initial investment, there will be fixed costs andmaintenance overheads to keep the company upgraded. Game Zone will worktowards a profit of approximately more than 25% of the earnings.

Features and Benefits:

TG game will offer a posh and quality atmosphere encouraging participants totent all the time at the centre till it is open. Game Corner will be the best in themarket with it visuals and effects. The company will have a small outlet forsnacks and beverages for customers. Customers will be offered a free snack or

drink with every game package they buy. There will be compliments based on

the games. Customers shall have membership tags and discounts based onmembership package. There will be staff members to assist customersthroughout the day. Potential customers are allowed to get registered and trythe facility once for a short period of time to experience the richness of quality.


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Sales Strategy;

Gaming Futures anticipates that sales will start during the third month. Thefirst two months of operation will have flat sales. After that point, sales will

increase.

Sales Forecast:

The following is the sales forecast for three years. The owners have agreed notto take a salary for the first three months of the operation, and during thisphase all five owners will be involved in sales.


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Milestones:

The accompanying table lists important program milestones, with dates andmanagers in charge, and budgets for each. The milestone schedule indicatesour emphasis on planning for implementation.

What the table doesn't show is the commitment behind it. Our business planincludes complete provisions for plan-vs.-actual analysis, and we will holdmonthly follow-up meetings to discuss the variance and course corrections.

Personnel Plan:

Gaming Futures staff is as follows:

Muhammad Tajveed Rana- Producer/New Business Starting out withgames in 2013 programming on the 3D, then programming andproducing games since 2014, Bill is driven to get things out. Planning

for success is the most important part of any project. Shahid Latif - Programmer/GamePlay

Shahid Latif is a software engineer who has 3 years experienceimplementing interfaces and game play; most of this time was spent

working on the series at 3D.


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Muhammad Ghose- Software Engineer

specialized in using artificial intelligence to simulate physical events. Forthe past six years Jeremy's projects at Axiomatic have included theDremWhyrks series, Mighty Quinn, Fire Mountain, and Storm

Warnings.

Management Team Gaps:

Currently, the firm doesn't have a corporate leader to manage the anticipatedgrowth of the company during its third year of operation and beyond. As salesgrow, the focus will be on production. The management of thecompany's resources and decisions on how to effectively grow the firm willdemand an individual with extensive management expertise as well as

experience in the interactive gaming industry. This is critical vacancy will beaddressed during the third year. The firm will hire a President to fill this role.

Financial Plan:

The following is the financial plan for Gaming Futures. The various topic tablesdisplay annual figures for the first three years. Monthly figures for the first year

are presented in the appendix.


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Break-even Analysis:

The following table and chart show our Break-even Analysis.

Break-even Analysis

Monthly Revenue Break-even 16,971

Assumptions:

Average Percent Variable Cost 0%Estimated Monthly FixedCost

16,971


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Projected Profit and Loss:

The following table and charts highlight the projected profit and loss for three years.


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Pro Forma Profit and Loss (In Rupees)

Year 1 Year 2 Year 3

Sales 279,000 380,000 644,000

Direct Cost of Sales 0 0 0

Other Production Expenses 0 0 0Total Cost of Sales 0 0 0

Gross Margin 279,000 380,000 644,000

Gross Margin % 100.00% 100.00% 100.00%

Expenses

Payroll 135,000 210,000 370,000

Sales and Marketing and OtherExpenses

12,000 15,000 20,000

Depreciation 9,996 10,000 10,000

Leased Equipment 0 0 0Utilities 4,800 4,800 4,800

Insurance 3,600 3,600 3,600

Rent 18,000 18,000 18,000

Payroll Taxes 20,250 31,500 55,500

Other 0 0 0

Total Operating Expenses 203,646 292,900 481,900


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Projected Cash Flow:

The following table and chart highlights the projected cash flow for three years.

Pro Forma Cash Flow

Year 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales 69,750 95,000 161,000

Cash from Receivables 142,750 260,927 420,075Subtotal Cash from Operations 212,500 355,927 581,075


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The Market Volumes, segments, competitors, entrybarriers:

TG game targets

Children,

Youths,

ChildrenTG game will target children who are of age 3 to 7 years

Youths

This target group covers ages from 8 to 17 years.

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