Sample video game store business plan template

Are you going to open a video game store? If YES, then here is a complete sample feasibility study video game store business plan template that you can use for FREE

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Okay, so we've covered all the requirements for starting a video game store. We also went further by analyzing and writing a sample video game store marketing business plan template backed by actionable guerrilla marketing ideas for video game stores. So let's move on to the business planning section.

Why open a video game store?

Starting a video game store business is just like any other retail business and it will require startup capital, planning (feasibility studies, market research, budgeting) and of course, time.

A video game store sells different types of video games and accessories. If you are planning to start this type of business, then you must look for the right location, a location with the right demographic. With the right location, inventory, and a good pricing structure, you can start making a profit as soon as possible after opening your business.

If you are sure that this type of business is what you really want to do after you should have done the feasibility study and market research, then the next step is to write a good business plan; a detailed preliminary report on how you are going to increase your startup capital, set up your business, manage your business flow, distribute your taxes and market your products.

The truth is that having one thing is a fantastic idea, including a business plan, a business plan is another thing that needs to be translated into money, so it is important to assemble a team of dedicated workers to work with if you want to succeed in a business related to video game store.

Below is a sample video game store business plan template that will help you successfully write yours without much stress.

Sample Video Game Store Business Plan Template

• Industry Overview

A video game store is a category of retail video game store, and businesses in this industry widely sell an assortment of toys and hobby products, such as traditional dolls and toys, electronic toys (including video and electronic games), board games, hobby kits, and craft supplies etc. These products are sold to the general public after they have been purchased from local and international manufacturers and wholesalers.

The video game retail industry has been performing brilliantly lately, growing in line with the economic recovery. On the other hand, competition from discount department stores and e-commerce channels has absorbed much of the demand for industry products, offering low prices and one-stop convenience. Because of this, discount stores have become the leading hobby and toy retailers in the United States.

IBISWorld predicts that despite an extremely competitive environment both internally and externally, hobby and toy retailers are expected to grow in the five years to 2029.

The video game retail store industry is indeed a very large industry that is thriving in all parts of the world. According to statistics, in the United States of America alone, there are approximately 21,563 registered video game retail stores, employing approximately 158,296 employees, and the industry earns a whopping $20 billion annually.

It's important to state this; The industry experienced 1.1% growth between 2019 and 2024. Hobby Lobby Stores Inc. and Michaels Stores hold the lion's share of the US market.

A recent study by IBISWorld shows that the video game retail store industry has experienced moderate revenue growth over the past five years. Operators in this industry retail a variety of toys and hobby products, including dolls, electronic toys, games, hobby kits, and craft supplies.

The study also shows that in the five years to 2024, industry operators gradually recovered from the downturn, in line with improving economic conditions. As consumer incomes increased during this period, competition intensified, and operators both within and outside the industry struggled to win over consumers.

Increased competition from discount department stores and online retailers suppressed industry sales and profitability as prices were lower. comparable products are increasingly drawing customers away from traditional industry operators.

Thus, the video game store business is constantly growing and thriving. In response to the ever-increasing demand for video games and accessories, industry players are opening additional stores, creating chains of stores in different cities. They are always ready to enter new markets and, of course, adapt to changing trends in consumer tastes and increase sales.

Business plan for a video game store. Summary

Planet Excel™ Video Game Store, Inc. is a neighborhood video game retail store that will be located in the growing community of Lake Street, Petoskey - Michigan. We conducted a feasibility study and market survey and we determined that Lake Street, Petoskey was the company we needed to launch our video game retail store. making a profit at the same time to give our customers value for their money. We want to give people who patronize our video games the opportunity to choose from a wide variety of video games and other related products. We will use all major retail channels, including specialty stores, merchandisers and online retailers.

We know that there are several video game stores and even chains of toy and hobby stores that also sell video games and accessories throughout Petoskey, Michigan, so we have spent time and resources conducting feasibility studies and market research so that we can find business in an area that will contribute to business growth.

We make sure that our facility is easy to find and our outlet is equipped with a variety of options available in the United States of America. Much more than retailing quality and affordable video games and related products, we ensure that our customer care is unmatched in the United States all of Lake Street in Petoskey, Michigan. the reason we are in business is why we will go the extra mile to make sure they are happy when they visit our store. Planet Excel™ Video Game Store, Inc. will provide first class service to all of our customers every time they visit our store.

We have CRM software that will allow us to manage one-on-one relationships with our clients. no matter how big they are. We will ensure that our customers are involved in the selection of brands that will be present on our stands, as well as in making business decisions that will directly or indirectly affect them.

Planet Excel™ Video Game Store, Inc. owned by Joel Anderson and his immediate family. Joel Anderson successfully opened several video game stores in Petoskey and Dallas, Texas before opening his own video game store. Joel Anderson has a degree in business administration and will be running the business with his immediate family.

• Our product offer

Planet Excel™ Video Game Store, Inc. is set to open a registered video game store in the neighborhood that will sell a wide range of video games and video game accessories. We are in the video game retail industry to make a profit and give our customers value for their money.

These are some of the products we will be selling in our video game retail store;

• A wide range of video games from leading video game development companies such as Microsoft Corporation, Nintendo Co. Ltd., Activision Blizzard Inc., GameStop Corp., Sony Corporation and Electronic Arts Inc.
• Video game rental services
• Sale of video games and accessories

Our vision

Our vision is to create a one-stop video game store on Lake Street, Petoskey, Michigan.

• Our Mission Statement

Our mission is to create a video game retail store that will provide the residents of Lake Street, Petoskey with a wide selection of video games and accessories from top brands at affordable prices.

• Our business structure

Our intention for opening a video game store is to create a standard video game retail store that will be a one-stop shop, so we will make sure that we create the right structures that will support the kind of growth that we have in mind when creating the business.

We will ensure we only hire qualified, honest, customer focused and willing to work hard to help us build a thriving business that benefits all stakeholders. In fact, the profit-sharing arrangement will be available to all of our management employees and will be based on their performance over a period of five years or more, particularly as we begin to sell our franchises or launch video game retail store chains. ,

In this regard, we have decided to hire qualified and competent hands to fill the following positions:

• general director (owner)
• Store manager
• Product sales manager
• Sales and Marketing Manager
• Accountants/Cashiers
• Store Salesperson/Customer Service Manager
• Cleaners

Roles and Responsibilities

Chief Executive Officer - General Director (Owner)

:

Improves management effectiveness by recruiting, selecting, orienting, training, coaching, consulting and disciplining managers; communicating values, strategies and goals; distribution of responsibility; planning, monitoring and evaluating performance; development of incentives; developing conditions for providing information and opinions

Responsible for setting prices and signing commercial deals

Responsible for providing direction to the business

Creates, communicates and implements the organization's vision, mission and overall direction, that is, leading the development and implementation of the organization's overall strategy.

Responsible for signing checks and documents on behalf of the company

Evaluates the success of the organization

Store manager:

• Responsible for managing the daily activities of the store
• Ensures that the store is in excellent shape and is conducive enough to receive customers
• Maintains office supplies by checking inventory; placing and expediting orders; evaluation of new products.
• Maintains equipment operation by completing preventative maintenance requirements; call for repairs.
• Conducts induction training for new team members
• Responsible for training, assessing and evaluating employees
• Ensures the correct arrangement of goods and products
• Performs any other duties as assigned by the General Manager

Product Manager

• Manages supplier relationships, market visits and ongoing training and development of the organization's purchasing teams
• Helps ensure consistent quality of video games and video game accessories on our rack
• Responsible for purchasing video games and video game accessories for the organization
• Responsible for sales planning, inventory monitoring, product selection, and writing and pricing orders for suppliers

Sales and Marketing Manager

• Manages external research and coordinates all internal sources of information to retain the organization's best clients and attract new ones
• Model s demographic information and analysis of the volume of transactional data generated by customer purchases.
• Identifies, prioritizes and approaches new partners, and provides business opportunities, etc.
• Responsible for overseeing implementation, advocating for client needs and client communication
• Documents, all client contact details and information
• Represents the company at strategic meetings
• Helps increase sales and company growth

Accountant/Cashier

• Responsible for preparing financial statements, budgets and financial reports for the organization
• Provides management with financial analysis, development of budgets and accounting reports
• Responsible for financial forecasting and risk analysis.
• Performs cash management, ledger maintenance and financial reporting
• Responsible for the development and management of financial systems and policies
• Responsible for managing payroll
• Ensures compliance with tax laws
• Processes all financial transactions for the organization
• Serves as an internal auditor for the organization

Store Assistant/Customer Service Manager

• Ensures that all contact with the client (email, walk-in center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with the client. ustomers by phone, uses every opportunity to interest the client in the company's products and services.
• Assigns administrative duties assigned by the Store Manager in an effective and timely manner.
• Keep up to date with any new information about products, promotions, etc. to ensure that we provide accurate and useful information to our customers when making their inquiries
• provides information regarding warranties, manufacturing specifications, product care and maintenance, and delivery options
• shopping for bags or packages

Cleaners:

• Responsible for ongoing cleaning of the store
• Ensures toiletries and supplies are out of stock
• Perform any other duties as assigned by the Store Manager.

Video Game Store Business Plan SWOT Analysis

We plan to open just one location of our video game retail store to test the business for 3-5 years to see if we will invest more money, expand the business, and then open another video. Store games and accessories throughout Michigan.

We are well aware that there are multiple video game stores throughout Petoskey, Michigan, and even in the one location where We intend to locate ours, so we follow the proper business formation process. We know that if a proper SWOT analysis is performed on our business, we can position our business to maximize our opportunities, exploit the opportunities available to us, reduce our risks, and prepare to counter our threats.

Planet Excel™ Video Game Store, Inc. retained the services of an expert HR and business analyst with a retail bias to help us conduct a thorough SWOT analysis and help us create a business model that will help us achieve our business goals and tasks.

This is a summary of the SWOT analysis conducted for Planet Excel™ Video Game Store, Inc.

• Force:

Our location, the business model we will operate with, various payment options, wide selection of video game and video game accessories from local and international brands, and excellent customer service culture will definitely be the strength of Planet Excel™ Video Game Store, Inc .

• Weakness:

The main disadvantage that can befall us is the fact that we are a new video game retail store on Lake Street, in Petoskey, Michigan, and we do not have the financial ability to do the advertising that we intend to do.

• Possibilities:

The fact that we are about to open a video game and accessories store in one of the huge apartment complexes with the right demographics on Lake Street, Petoskey Michigan provides us with unlimited opportunities to sell our video games to a large number of people.

We have been able to conduct thorough feasibility studies and market research and we know what our potential customers will be looking for when they visit our retail store. We are well positioned to take advantage of the opportunities that come our way.

• Threat:

We are fully aware that the growing popularity of e-commerce poses a significant threat to the video game business as consumers may substitute products purchased online for those purchased in video game stores due to the accessibility and convenience of e-commerce and the wider variety of products available in Internet.

E-commerce sales are expected to surge in 2024, posing a potential threat to the industry. Another threat we may face is the emergence of new video games and video game accessories.

Video Game Store Business Plan MARKET ANALYSIS

• Market Trends

If you are a keen observer of the toy and hobby industry, you will agree that the intense competition over the last five years has forced many small players out of the industry. Because of their size, large companies can offer products at competitive prices, and the number of children under the age of nine is predicted to increase.

Note that spending on hobby items and toys is generally discretionary; therefore, an increase in household disposable income will increase the propensity of consumers to buy more manufactured goods, leading to an increase in demand. Per capita disposable income is expected to increase in 2024, creating potential opportunities for the industry.

While these trends will continue over the next 5 years, some video game retailers will benefit from increased demand for new technologies such as video games. Beyond any reasonable doubt, a video game retail store that can successfully keep up with trends and keep up with consumer and technology trends will definitely do well in the coming years. use technology to effectively predict consumer demand patterns and strategically position your store according to their needs; Essentially, the use of technology helps retailers maximize supply chain efficiency. There is no doubt that data collected from customers will go a long way in helping retailers serve them better.

• Our target market

When it comes to selling items that can be found in video game retail stores, there really is a wide range of available buyers. Essentially, our target market cannot be limited to only a group of people, but only those who reside in the places where we intend to open a video game retail store. One thing is for sure, we will ensure that our video game retail store sells only quality and affordable products.

In this regard, we have located our video game retail store to serve the residents of Petoskey Michigan and all other locations where our video game retail store will be located in the United States of America. We are engaged in retailing video game accessories and video games to the following groups of people:

• Schools and students
• Households (parents)
• Video Game room owners
• Video game rental owners

Our competitive advantage

Competitive advantages that will help us stand out from our competitors are not limited to having an exclusive sales agreement, supplying seasonal products and access to a highly skilled workforce. Planet Excel™ Video Game Store, Inc. is launching a brick-and-mortar video game retail store that will truly become the preferred choice in Lake Street, Petoskey, Michigan.

Our video game retail store is located in a corner building on a busy road directly across from one of the largest apartment complexes in Petoskey Michigan. One thing is for sure, we will ensure that our store always has a wide range of quality and affordable products. It will be difficult for customers to visit our store and not see the products they are looking for.

Our experienced and skilled management, customer service culture, online store, various payment options and highly secure facility with ample packing space will also serve as a competitive advantage for us.

Lastly, our employees are all well taken care of and their benefits package is one of the best in our category in the industry. This will allow them to be more than willing to build a business with us and help achieve our goals and achieve all of our business goals and objectives.

Video Game Store Business Plan SALES AND MARKETING STRATEGY

• Sources of income

Planet Excel™ Video Game Store, Inc. created for the purpose of maximizing profits. in the industry, and we are going to do our best to sell a wide range of video games to a wide range of customers. Planet Excel™ Video Game Store, Inc. will generate income through

• retailing a wide range of video games from leading companies such as Microsoft Corporation, Nintendo Co. Ltd., Activision Blizzard Inc. , GameStop Corp., Sony Corporation and Electronic Arts Inc.
• Video game rental services
• Sales of video game accessories
• Retail sale of traditional entertainment and educational games

Sales forecast

It is important to note that our sales forecast is based on data collected through feasibility studies, market research, as well as some assumptions available in the field.

One thing about a video game retail store is that the larger the store, the more customers who patronize it. Although we may not be as big as Hobby Lobby Stores Inc. and Michaels Stores, but we will ensure that, within our capabilities, we carry a wide variety of products from multiple brands in our store.

Below are the sales forecasts that we were able to produce during the first three years of operation;

• first fiscal year: $120,000
• second fiscal year Year: $250,000
• Third Fiscal Year: $450,000

N.B.

. This forecast is made based on what can be obtained in the industry and on the assumption that there will be no major economic downturn and the arrival of a competitor in the same place as us during the above period. Please note that the above forecast may be lower and at the same time may be higher.

• Marketing and sales strategy

Before selecting a location for Planet Excel™ Video Game Store, Inc., we conduct thorough market research and feasibility studies so that we can penetrate the available market and become the preferred choice in Petoskey Michigan.

We have hired experts who are well versed in the video game retail store industry to help us develop marketing strategies that will help us achieve our business goal of capturing a larger percentage of the available market on Lake Street in Petoskey, Michigan.

Overall, Planet Excel™ Video Game Store, Inc. will take the following sales and marketing approach to attract customers:

• Introduce our video game retail store by sending introductory letters to schools, residences and other key stakeholders in the Lake Street area of ​​Petoskey, Michigan.
• Open our video game retail store by hosting an outdoor party for kids in the community
• Advertise our business in local newspapers, on local television and radio stations
• List our company in yellow pages classifieds (local directories)
• Attend fairs and related exhibitions to sell our video game and video game accessories
• Use online resources to promote our business
• Do direct marketing
• Encourage word-of-mouth marketing (referrals) from satisfied and repeat customers

Video Game Store Business Plan Publicity and Advertising Strategy

Even though our video game retail store is well located, we will still o increase advertising for the business. We are going to explore every available means to promote our video game retail store.

Planet Excel™ Video Game Store, Inc. has a long-term plan to open chain video game retail stores in various locations, which is why we will intentionally build our brand to be well received on Lake Street in Petoskey, Michigan before venturing out into the streets.

Here are the platforms we intend to use to promote and advertise Planet Excel™ Video Game Store, Inc.;

• Advertise in both print media (community newspapers and magazines) and electronic media platforms
• sponsor relevant community programs
• use on the Internet and social networks such as; Instagram, Facebook, Twitter, etc. To promote our brand
• Install our billboards in strategic locations throughout Lake Street in the Petoskey Michigan area
• Distribute our flyers and flyers in targeted areas of the community. where is our video game retail store located?
• Place our Flexi banners in strategic positions where our video game retail store is located.
• Make sure that all our employees wear our branded T-shirts and all our vehicles have our company logo, etc.

Our pricing strategy

Pricing is one of the key factors that gives Using video game retail stores, consumers tend to go to places where they can get products at a lower price, so big players in the industry attract a lot of consumers.

We know that we do not have the ability to compete with other video game retail stores, but we do ensure that the prices on all video game and accessory Products available in our store are competitive with what is available at video game retail stores in our tier and region .

• Payment Methods

The payment policy adopted by Planet Excel™ Video Game Store, Inc. is inclusive because we are very conscious that different customers prefer different payment methods depending on their preferences, but at the same time we will ensure compliance with the financial rules and regulations of the United States America.

Here are the payment options that Planet Excel™ Video Game Store, Inc. will provide it to clients;

• Cash payment
• Payment by credit cards
• Payment by bank transfer via Internet
• Payment by check
• Pay using mobile money transfer

In view of the above, we have selected banking platforms that will allow our customers to make payments for our video games and video game accessories without any stress on their part. Our bank account numbers will be available on our website and in promotional materials.

• Startup costs (budget)

When This Happens To start a video game retail business, the main areas where you will spend the bulk of your money are renting or renting a standard storefront. Plus, you don't have to spend much other than paying your employees and stocking your store with a wide range of video games and accessories.

These are the key areas where we will be spending our start-up capital;

• The general fee for registering a business in the United States is $750.
• Legal fees for licenses and permits, and accounting services (software, POS machines and other software) - $1,300.
• Marketing advertising expenses for the grand opening of Planet Excel™ Video Game Store, Inc. in the amount of $3,500, as well as printing flyers (2,000 flyers at $0.04 per copy) for a total of $3,580.
• The cost of hiring a business consultant is $2,500.
• Insurance (General) Liability, Workers' Compensation and Property Loss) totaling $2,400.
• Rent expense for 12 months is $1.76 per square foot for a total of $55,240.
• The cost of renovating the store (building shelving and shelving) is $20,000.
• Other start-up expenses including office supplies ($500) plus phone and utilities. t.s. ($2500).
• Operating expenses for the first 3 months (employee salaries, bills, etc.) $60,000
• Cost of beginning inventory (warehousing with a wide range both locally and locally). high-quality video games and video game accessories imported from various manufacturers) $ 70,000
• Cost of store equipment (cash register, security, ventilation, signage) $13,750
• Cost of purchase and installation of video surveillance $5000
• The cost of purchasing furniture and gadgets (computers, printers, telephones, televisions, audio systems, tables and chairs, etc.) is $4,000.
• Cost of launching a website: 600 US dollars
• Our introductory party costs $7,000.
• Miscellaneous $10,000

We will need approximately $200,000 to successfully set up our video game retail store on Lake Street, Pitoskie, Michigan.

Establishing a fund/seed capital for video game store Planet Excel™, Inc.

Planet Excel™ Video Game Store, Inc. owned and financed by Joel Anderson and his immediate family. They do not intend to welcome any external business partners, so they have decided to limit their use of start-up capital to three main sources.

• Receiving part of the start-up capital from personal savings
• Source of easy loans from family members and friends
• Apply for a loan from my bank

N.B.

. We have secured about $100,000 ($75,000 in personal savings and $25,000 in loans from family members) and are in the final stages of obtaining a $100,000 line of credit from our bank. All papers and documents have been signed and submitted, the loan has been approved and the amount will be credited from our account at any time.

Sustainability and expansion strategy for a video game store business plan

The future of a business lies in the number of its loyal customers, the capabilities and competence of its employees, its investment strategy and business structure. If all these factors are missing from the business, then soon after the business closes,

One of the main goals of creating Planet Excel™ Video Game Store, Inc. is to create a business that will survive on its own cash flow without the need for an infusion of funds from external sources once the business is officially launched. We know that one way to gain approval and win customers is to sell our video games and video game accessories a little cheaper than what can be purchased in the market, and we are willing to survive on lower profits for some time.

Planet Excel™ Video Game Store, Inc. will ensure that the right foundations, structures and processes are put in place to ensure the well-being of our staff. Our organizations culture is aimed at taking our business to a higher level and training and reskilling of our workforce is at the top.

In fact, a profit sharing arrangement will be available to all of our management staff and it will be based on their performance for three years or more. We know that if this is done, we will be able to successfully recruit and retain the best hands we can get in the industry; they will be more committed to helping us build the business of our dreams.

Checklist/checkpoint

• Company Name Availability Check: Completed
• Business registration: completed
• Opening of corporate bank accounts: completed
• Point of sale (POS) protection: completed
• Opening mobile money accounts: completed
• Opening of online payment platforms: completed
• Application and receipt of tax payer ID: In progress
• Application for license and business permit: completed
• Purchasing business insurance: completed
• Facility leasing and store reconstruction: In progress
• Conducting feasibility studies: completed
• Receiving capital from family members: completed
• Bank loan applications: In progress
• Drawing up a business plan: completed
• Compilation of an employee handbook: completed
• Drafting of contract documents and other relevant legal documents: in development
• Design by The Co Logo mpany: Completed
• Printing promotional materials: In progress
• Recruitment: In progress
• Purchase of necessary furniture, racks, shelves, computers, electronic equipment, office equipment and video surveillance system: in progress
• stocking our store with a wide range of video games and video game accessories: in progress
• creation of an official website for the company: in progress
• Creating awareness for businesses both online and throughout the community: In progress
• Health, Safety and Fire Agreement (License): Secured
• Participant opening/launch planning: In progress
• Compiling our list of products (video games and video game accessories) that will be available in our store: Completed
• Establishing business relationships with suppliers - wholesale suppliers of various brands of products (video games and video game accessories) that we intend to retail: in progress