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LegendaryPC Bar: Business Plan Operation
TheLegendary PC Bar is a small business that aims to provide gamingproducts and services to the clients in Adelaide near FanshaweCollege. The business seeks to provide the gaming services at anaffordable price to a target market of students near the college. Ina bid to provide these services, the Legendary PC Bar requires thefollowing equipment and furniture so as to operate the storeefficiently.
• Computer– ($852.78/each * 20 = $17055.6) per desktop Alienware PC.
• Televisionsets – ($1340.78/each * 2 = $2681.56) Smart 4k Ultra HD 49 inch LEDTV
• SonyPlayStation 4 1TB- ($328.79)
• 16ultimate Game chairs – ($162.06/each * 20 = $3241.2) Wireless withgame enhanced 3D stereo speakers in each headset and vibrationmotors.
• Lavertoninterior track lighting full track kit – ($52.99) includingshipping
• Fillingcabinets – (own)
•Printer/Fax/Scanner– own ($132.99)
• Tables– own ($25 * 20 = $500) customized according to specifications
• 13500BTU heat/air units – $659.98 * 2 = ($1319.96)
• SecurityEntry System ($1500)
• SecurityCameras (black and white ($130/each * 3 = $390)
• CurbsideAppeal (professional signs, clean façade and landscaping) ($2000renovation)
Logisticsis a crucial part of supply chain management that involves theefficient forwards of goods or services and related informationbetween the points of entry and the point of consumption to meet theclients’ requirements (Christopher, 2016). In the entertainmentsector, each title release of a video game is treated like a newproduct while the sales history does not necessarily offer any realprojections. In addition, there is the constant danger of piracy thatcan dilute sales. Entertainment products such as video games, musicor movies have similar issues facing their supply chain (Plunkett,2011). The products all have short production windows, hard topredict sales, looming digital distribution framework and arehigh-value products.
LegendaryPC Bar depends on an influx of video games from various PC andPlayStation video game publishers. The supply chain in the video gamesector, as well as entertainment sector boils down to the last minuteand beating of deadlines on new releases. In this industry, it isuncommon for games to undergo manufacturing and fulfillmentsimultaneously to fulfill set dates. Hence, it is prudent to build asupply chain that can accommodate such delays (Plunkett 2011).
Giventhat there is a key marketing strategy in the entertainment ofstirring up people`s anticipation before release, Legendary PC barmust work closely with our distributors to ensure a constant supplyof new anticipated content. We have identified CentreSoft as our mainsupply of video games the company, which is United Kingdom`s leadingmulti-format distributor of video games (Centresoft, 2016). Thecorporation has over 30 years experience as a publisher and theirflexible relations with publishers and retailer brands will enable usto obtain latest releases on time which will suit our clientele.
Thecompany`s van will be assigned the task of collecting new releasesfrom Birmingham where Centresoft has their warehouse.
LegendaryPC Bar will also be offering bubble tea as a beverage as people playon the machines/ The Taiwanese tea-based drink is renowned for itsunique and refreshing taste which comes in many flavors which wesource as ready to make powder from The Teashed Inc.
• Newvideo game releases- (Price depending on product)
• Bubbletea kits – ($8.53) 3 Servings
• StrawberryBubble Tea Powder – ($3.65)
• HoneydewMelon Bubble Tea Powder – ($3.65)
• PinaColada Bubble Tea Powder – ($3.65)
• RoseBubble Tea Powder – ($3.65)
• MangoBubble Tea Powder – ($3.65)
• MatchaGreen Bubble Tea Powder – ($3.65)
• RaspberryBubble Tea Powder – ($3.65)
• Gas– ($65/trip)
Thebusiness will also include sanitation requirements such as toiletriesand cleaning supplies which will be bought from Costco UK at $68.32per annum inclusive of VAT.
Initially,the business focuses on video games on the two main consoles itoperates: the PlayStation 1V and the gaming Alienware PCs. TheManufacturers of the consoles are Dell and Sony. The consoles arechosen since they have secured a large consumer base all across theworld and have very good quality games on their respective platforms(Markelo, 2015).
Thefollowing explanation explains a typical transaction between thestore and a customer. The customer visits the store and occupies aseat on the favorite console of their choice. From there thecustomized service delivery involves a lower price for customersplaying the games and enjoying their beverages while those notplaying will get the drinks for the standard fee (Zhong, 2015). Thestore will offer single and multiplayer games that can be played onsingle or different consoles with friends. The reason for such gamesis that they are more interesting and can be passed over longdurations of time which mean extra revenues for the shop. Forinstance, Fifa 15. In addition to that, most of the games will belatest releases of not more than a year old.
Dependingon the product package chosen by the client, one will enjoy theirsession and be charged at the end of their sessions. The regularpackage will be $5 for an hour with discounts for those exceeding sixhours. The live game sessions between a maximum of four people at $5per person. Free bubble tea for those exceeding four hours. Thepremium will be $8 at the professional stand with free bubble tea forthose exceeding $60. The store will also entertain visitors withbubble tea offerings at $7 for those enjoying the music and actionfrom other players.
Allcustomer complaints will be handled professionally to ensure that thecompany fulfills its core mandate of the creation of value with theaim of making a difference in the community, as well as offerrefreshing and inspiring moments of optimism and happiness. Any issuewill be addressed by asking what we can do satisfy them whileremaining empathetic towards their complaints (Kowalkowski et al.).The accommodation of all the raised issues will be the key toensuring that the customers do not publicize the business in anegative way.
Amajority of the Legendary PC Bar`s invoices, records, scheduling,payroll, and any other relevant administrative paperwork will behandled using suitable computer software. In a bid to follow suit inthe environmental conversation efforts being taken by a barrage of anorganization, Legendary PC Bar will attempt as much as possible toeliminate the use of paper.
Thebusiness proposes the use of video vision lite that is designed forsmall stores that can integrate reservations, password protectionfunction, and customer account management, barcode scanningcapability, full customer history, and management reporting (Visionforecasting, 2016). The software supports all recent PC andPlayStation games with a capability for configuration in the future.
SinceLegendary PC Bar is a small business with only one employee at thistime, I do not see the need to invest in accounting software such asQuick books at this stage. I can operate the relevant basicaccounting functions using spreadsheets using Microsoft Excel thatcomes free with the Microsoft Office software. This means there areno additional costs. I can also secure the accounting files for thepurpose of employee and financial privacy. The paycheck will in themeanwhile be written manually at approximately $0.50/check and $0.50for their processing (Raddats & Kowalkowski, 2014).
Theprocessing of debit and credit cards can be done using onlineMerchants Accounts software. All the credit card transactions will berun on windows using the administrative assist feature. Debittransactions, on the other hand, will do on Legendary PC Bar websiteso as to enable ist access virtually anywhere. The approximate costsare $10 for the set-up, $10 each month, $0.20 per credit cardtransaction, $0.80 per debit card transaction.
Inthe first few years of the business, it might not be necessary tohave many employees since the business is growing and requiresmaximum cash flow. The full-time staff will include an administrativeassistant, me as the owner and a part-time staff whose main task willbe cleaning and maintaining the room.
Owner(full-time) – $15,000 for 1st year, $20,000 for 2nd year, and $25,000for 3rd year. Working hours Monday to Friday 8.00 a.m. – 4.00 p.m.and Saturday 8.00 a.m. – 12.00 p.m. in the store.
Rolesinclude Payroll, Recruiting, Accounts payable, implementing policiesand business procedures, banking, sales and estimates, discounts,promotion and advertising and handling customer complaints, act asthe top authority in Business.
AdministrativeAssistant (part-time) – $9.50/hour for 20 hours in a week.(Approximately $9120/year)
Rolesinclude: greeting customers, promoting any specials, prepare receiptsand invoices, answer phone, process credit cards, clerical duties,recording total monthly expenses, and basic organization of office.
Maintenance(part-time) – $7/hour for 15 hours a week. (Approximately 5040/year).
Rolesinclude: Cleaning the store (sweeping, moping and wiping since it isa high activity environment), washing couches and maintainingwashroom sanitation. Payroll will be completed the first week eachmonth with paychecks being distributed same week.
Inthe United Kingdom, the video standards council, which is asubsidiary of the British board of film classification (BBFC), becamethe recognized statutory video games regulator for Britain. It ratesgames according to the PEGI rating systems that protect on adistribution of Adult content. Legendary PC Bar is a member of techUKand Ukie. The two organizations support Britain`s games andinteractive entertainment sector (Ukie, 2016). Being a member hassome benefits such as meeting spaces, obtaining grants and having apresence at the major trade shows. TechUK, on the other hand, assistsits members to develop markets, relationships, and networks whilereducing business risks and costs (techUK, 2016). The company assistsmembers in the identification and advancement of the leading marketsthat will offer them a chance to grow domestically. In addition tothis, by growing their networks and connections, the business candeepen its relations with clients.
Christopher,M. (2016). Logistics and Supply Chain Management. London: Pearson UK.
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Kowalkowski, C.,Windahl, C., Kindström, D., &Gebauer, H. (2015).What service transition? Rethinking established assumptions aboutmanufacturers` service-led growth strategies. IndustrialMarketing Management, 45,59-69. doi:10.1016/j.indmarman.2015.02.016
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