Family Entertainment Center Plan
It will be a high class family entertainment center that seeks to utilize the most current and best technology available to attract the high school and college populations that have grown up expecting the latest and greatest.
The current plan for the family entertainment center will consist of a laser tag arena, a miniature golf course, and an arcade plus snack bar. Plans may also include go-carts, paintball, rock climbing, and other attractions in the future.
When creating my financial estimates, I created two plans. One estimated about 60% of max occupancy for the year, while the other estimated approximately 20% occupancy. Average occupancy in the industry seems to be about 30%- 40% depending on location and quality of facilities.
My game prices will run between $6-$8 depending on discounts and promotions. My arcade revenue is estimated using a percent of the expected customer count * $15. (Example: approximately 50% of total golf/ laser tag customers will spend an average of $15 extra on arcade games or other income producers)
Based on these assumptions, I am calculating annual revenue between $1.2 million and $6 million.
These estimates do not include revenue from parties, or special arrangements.
To start up and own 100% I am expecting to need approximately $1.5- $2 million. This may vary depending on location, and financing options. I could reduce cost by renting equipment/ land opposed to buying and/ or building a new complex or converting an existing.
Yearly expenses include insurance, advertising, utilities, wages, and consumables. This totals approximately $360,000 a year.
In addition, the following expenses will be taken out based on a percentage of the remaining profit. The largest is what I call my corporate expansion fund. This is 55% of the first Revenue – Expenses calculation. This is what I will use to pay back any loans and investors that fund my business. After all loans are paid off, this fund will then go toward future business expansion.
Using this number, and my 20%- 60% occupancy calculations, the $1.5 million can be repaid in 1-4 years.
I also plan to set aside 15% of profit for charities, 3 and 2% for owner/ manager bonus, and .1% per employee (about 4% total) for employee bonuses.
I then calculated taxes on what I will call “profit 2”, which leaves me with an additional $150,000- $700,000 left over that would go into business savings, investments, or other unexpected expenses the business may encounter.