Gaming Futures, LLC specializes in Windows application development/support, PlayStation2 development, Xbox development, 2D and 3D art and visual effects, and project guidance. Formed by veterans of Modicum On-Line and Axiomatic InterRational, Gaming Futures is committed to creating high-quality, innovative games and software. They offer game concepts and development for PC, PS2, Xbox, and Pocket PC, as well as game platform ports, 2D and 3D art and programming, interface design and software enhancement, and a cohesive development team with a proven track record. The company is formed from the core group of the last DreæmWhyrks project at Axiomatic and has a production team with four years of successful product development and over 30 years of combined experience. Gaming Futures has a documented history of completing projects under budget and on time. Currently, the company has secured contracts with Clear Mountain Productions and Weaver Farm, Inc.

Computer Programming Business Plan Example

Gaming Futures has the following objectives:

– Achieve $200,000 sales goal in the first year.

– Establish a customer base of 40 companies.

– Increase sales by 15% in the second year.

The mission of Gaming Futures is to provide high-quality service by developing innovative and exciting products for the interactive entertainment industry.

Gaming Futures, LLC is a game development studio that offers Windows application development and support, PS2 development, Xbox development, 2D and 3D art, visual effects, and project guidance. The company will be organized as a Limited Liability Corporation.

Gaming Futures, LLC is owned by a team of developers:

– Bill Kerl

– Diane Huber

– Marcus Hathcock

– Jillian Daley

– Jeremy Lang

Gaming Futures is located in a 3,000 square foot office space in the Northwest Industrial Park in northwest Madison.

The start-up expenses for Gaming Futures primarily include equipment and office space. William, Diane, Marcus, Jillian, and Jeremy will each invest $35,000. Additionally, Gaming Futures will secure a $100,000 long-term loan.

Computer Programming Business Plan Example

Start-up Funding

Start-up Expenses to Fund: $124,300

Start-up Assets to Fund: $150,700

Total Funding Required: $275,000

Assets

Non-cash Assets from Start-up: $90,000

Cash Requirements from Start-up: $60,700

Additional Cash Raised: $0

Cash Balance on Starting Date: $60,700

Total Assets: $150,700

Liabilities and Capital

Liabilities

Current Borrowing: $0

Long-term Liabilities: $100,000

Accounts Payable (Outstanding Bills): $0

Other Current Liabilities (interest-free): $0

Total Liabilities: $100,000

Capital

Planned Investment

Bill Kerl: $35,000

Diane Huber: $35,000

Marcus Hathcock: $35,000

Jillian Daley: $35,000

Jeremy Lang: $35,000

Additional Investment Requirement: $0

Total Planned Investment: $175,000

Loss at Start-up (Start-up Expenses): ($124,300)

Total Capital: $50,700

Total Capital and Liabilities: $150,700

Total Funding: $275,000

Start-up

Requirements

Start-up Expenses

Legal: $1,000

Stationery etc.: $400

Brochures: $400

Insurance: $1,000

Rent: $1,500

Expensed Equipment: $120,000

Total Start-up Expenses: $124,300

Start-up Assets

Cash Required: $60,700

Other Current Assets: $20,000

Long-term Assets: $70,000

Total Assets: $150,700

Total Requirements: $275,000

Services

Gaming Futures’ cohesive, talented development team offers 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

A new report from DFC Intelligence forecasts a 40% growth in annual unit sales of video games and PC games in the U.S. from 2001 to 2006. The successful introduction of new game systems in 2000 and 2001 has contributed to this growth. The interactive games industry is a major economic force, rivaling Hollywood in revenues and accounting for nearly one-third of consumer software sales in North America.

4.1 Target Market Segment Strategy

The video game market in the U.S. grew from $6.6 billion in 2000 to $9.4 billion in 2001. Sales of the three leading game systems are projected to reach over 60 million units by 2006. However, the industry faces challenges, as development and marketing costs continue to rise.

4.2 Service Business Analysis

Companies are outsourcing segments of the development project to combat rising costs. This strategy allows them to access gaming expertise without the personnel expenses. By outsourcing key elements of the development process, companies can save up to 30% of development costs.

READ MORE  Graphic Design Business Plan Example

4.2.1 Competition and Buying Patterns

The interactive game industry outsources to companies with a track record of meeting deadlines and producing high-quality products. Companies specialize in gaming devices or target users to gain an advantage in the outsourcing process.

Strategy and Implementation Summary

Gaming Futures’ competitive edge lies in delivering projects before the deadline. This is crucial for outsourced projects, as meeting deadlines increases the likelihood of receiving more work. William Kerl and Diane Huber, the company’s developers, will be responsible for marketing the company’s services.

5.2 Marketing Strategy

Gaming Futures will approach 120 production companies with a marketing CD. The team has already acquired contracts with Clear Mountain Productions and Weaver Farm, Inc., and will continue to aggressively pursue new contracts.

5.3 Sales Strategy

Sales are expected to start during the third month of operation. The first two months will have flat sales, but after that, sales will increase.

5.3.1 Sales Forecast

The following sales forecast covers three years. During the first three months, all five owners will be involved in sales, and they have agreed not to take a salary during this phase.

Computer Programming Business Plan Example

Computer Programming Business Plan Example

Sales Forecast

Year 1 Year 2 Year 3

Sales

Projects $279,000 $380,000 $644,000

Other $0 $0 $0

Total Sales $279,000 $380,000 $644,000

Direct Cost of Sales

Year 1 Year 2 Year 3

Projects $0 $0 $0

Other $0 $0 $0

Subtotal Direct Cost of Sales $0 $0 $0

5.4 Milestones

The table lists program milestones, dates, managers in charge, and budgets. The milestone schedule emphasizes planning for implementation.

The commitment behind the table is not shown. Our business plan includes provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss variance and course corrections.

Computer Programming Business Plan Example

Milestones:

– Office Setup: 5/1/2002 – 5/20/2002, $5,000 budget, Manager: William Kerl, Department: Admin

– Equipment/Network Setup: 5/1/2002 – 5/20/2002, $100,000 budget, Manager: Jeremy Lang, Department: Admin

– Marketing CD: 3/1/2002 – 4/1/2002, $2,000 budget, Manager: Diane Huber, Department: Web

– Face to Face Selling: 4/1/2001 – 6/1/2002, $2,000 budget, Manager: All, Department: Web

– Totals: $109,000 budget

Personnel Plan:

– Bill Kerl – Producer/New Business: Started with games in 1993 programming on the 3DO, then programming and producing DreæmWhyrks games since 1995.

– Diane Huber – Lead Engineer: Programming computers for over 25 years and making great games for the last 15 years.

– Marcus Hathcock – Programmer/GamePlay: Software engineer with 5 years experience implementing interfaces and gameplay.

– Jillian Daley – Senior Software Engineer: 11 years programming experience building games, tools, and technologies.

– Jeremy Lang – Software Engineer: Specializes in using artificial intelligence to simulate physical events. Projects include DreæmWhyrks series, Mighty Quinn, Fire Mountain, and Storm Warnings.

– President: No salary in year 1 and year 2, $120,000 salary in year 3.

– Total People: 5 in year 1 and year 2, 6 in year 3.

– Total Payroll: $135,000 in year 1, $210,000 in year 2, $370,000 in year 3.

Management Team Gaps:

– The firm currently lacks a corporate leader to manage the anticipated growth of the company during its third year and beyond. This critical vacancy will be addressed by hiring a President.

Financial Plan:

– Break-even Analysis: Table and chart displaying our Break-even Analysis.

Computer Programming Business Plan Example

Break-even Analysis:

Monthly Revenue Break-even: $16,971

Assumptions:

– Average Percent Variable Cost: 0%

– Estimated Monthly Fixed Cost: $16,971

7.2 Projected Profit and Loss:

The table and charts below display the projected profit and loss for three years.

Computer Programming Business Plan Example

Computer Programming Business Plan Example

Computer Programming Business Plan Example

Computer Programming Business Plan Example

Pro Forma Profit and Loss

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 $0

Total 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 Other Expenses $12,000 $15,000 $20,000

Depreciation $9,996 $10,000 $10,000

Leased Equipment $0 $0 $0

READ MORE  High-Tech Marketing Business Plan Example

Utilities $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

Profit Before Interest and Taxes $75,354 $87,100 $162,100

EBITDA $85,350 $97,100 $172,100

Interest Expense $8,960 $7,080 $5,080

Taxes Incurred $19,918 $24,006 $47,106

Net Profit $46,476 $56,014 $109,914

Net Profit/Sales 16.66% 14.74% 17.07%

7.3 Projected Cash Flow

The table and chart below show the projected cash flow for three years.

Computer Programming Business Plan Example

Pro Forma Cash Flow

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 $420,075
Subtotal Cash from Operations $212,500 $355,927 $581,075
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
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 $212,500 $355,927 $581,075
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $135,000 $210,000 $370,000
Bill Payments $73,476 $109,491 $149,968
Subtotal Spent on Operations $208,476 $319,491 $519,968
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $19,200 $20,000 $20,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $227,676 $339,491 $539,968
Net Cash Flow ($15,176) $16,435 $41,107
Cash Balance $45,524 $61,959 $103,066

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $45,524 $61,959 $103,066
Accounts Receivable $66,500 $90,573 $153,498
Other Current Assets $20,000 $20,000 $20,000
Total Current Assets $132,024 $172,533 $276,564
Long-term Assets
Long-term Assets $70,000 $70,000 $70,000
Accumulated Depreciation $9,996 $19,996 $29,996
Total Long-term Assets $60,004 $50,004 $40,004
Total Assets $192,028 $222,537 $316,568
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $14,052 $8,547 $12,665
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $14,052 $8,547 $12,665
Long-term Liabilities $80,800 $60,800 $40,800
Total Liabilities $94,852 $69,347 $53,465
Paid-in Capital $175,000 $175,000 $175,000
Retained Earnings ($124,300) ($77,824) ($21,810)
Earnings $46,476 $56,014 $109,914
Total Capital $97,176 $153,190 $263,104
Total Liabilities and Capital $192,028 $222,537 $316,568
Net Worth $97,176 $153,190 $263,104

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7371, Computer Programming Services, are shown for comparison.

Plan Month: 1 2 3 4 5 6 7 8 9 10 11 12

Current Interest Rate: 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Long-term Interest Rate: 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Tax Rate: 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

Other: 0 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss:

Sales: $0 $0 $10,000 $15,000 $17,000 $24,000 $28,000 $30,000 $30,000 $35,000 $40,000 $50,000

Direct Cost of Sales: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Production Expenses: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin: $0 $0 $10,000 $15,000 $17,000 $24,000 $28,000 $30,000 $30,000 $35,000 $40,000 $50,000

Gross Margin %: 0.00% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses:

Payroll: $0 $0 $0 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000

Sales and Marketing and Other Expenses: $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Depreciation: $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833

Leased Equipment: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Utilities: $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400

Insurance: $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300

Rent: $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500

Payroll Taxes: 15% $0 $0 $0 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250 $2,250

Other: $0 $0 $0 $0 $0 $

Pro Forma Cash Flow:

Cash Received:

– Cash from Operations

– Cash Sales: $0, $0, $2,500, $3,750, $4,250, $6,000, $7,000, $7,500, $7,500, $8,750, $10,000, $12,500

– Cash from Receivables: $0, $0, $0, $250, $7,625, $11,300, $12,925, $18,100, $21,050, $22,500, $22,625, $26,375

Subtotal Cash from Operations: $0, $0, $2,500, $4,000, $11,875, $17,300, $19,925, $25,600, $28,550, $31,250, $32,625, $38,875

Additional Cash Received:

– Sales Tax, VAT, HST/GST Received: 0.00%, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0

– New Current Borrowing: $0, $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, $0

– New Long-term Liabilities: $0, $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, $0

– Sales of Long-term Assets: $0, $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, $0

Subtotal Cash Received: $0, $0, $2,500, $4,000, $11,875, $17,300, $19,925, $25,600, $28,550, $31,250, $32,625, $38,875

Expenditures:

– Expenditures from Operations

– Cash Spending: $0, $0, $0, $15,000, $15,000, $15,000, $15,000, $15,000, $15,000, $15,000, $15,000, $15,000

Bill Payments: $85, $2,564, $2,654, $5,498, $4,131, $4,771, $6,832, $8,003, $8,573, $8,614, $10,105, $11,645

Subtotal Spent on Operations: $85, $2,564, $2,654, $20,498, $19,131, $19,771, $21,832, $23,003, $23,573, $23,614, $25,105, $26,645

Additional Cash Spent:

– Sales Tax, VAT, HST/GST Paid Out: $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0, $0

– Principal Repayment of Current Borrowing: $0, $0, $0, $0, $0, $0, $0, $0,

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 36.20% 69.47% 10.40%
Percent of Total Assets
Accounts Receivable 34.63% 40.70% 48.49% 24.10%
Other Current Assets 10.42% 8.99% 6.32% 42.90%
Total Current Assets 68.75% 77.53% 87.36% 71.10%
Long-term Assets 31.25% 22.47% 12.64% 28.90%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 7.32% 3.84% 4.00% 47.80%
Long-term Liabilities 42.08% 27.32% 12.89% 19.10%
Total Liabilities 49.39% 31.16% 16.89% 66.90%
Net Worth 50.61% 68.84% 83.11% 33.10%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 0.00%
Selling, General & Administrative Expenses 83.34% 85.26% 82.93% 82.10%
Advertising Expenses 4.30% 3.95% 3.11% 1.20%
Profit Before Interest and Taxes 27.01% 22.92% 25.17% 2.00%
Main Ratios
Current 9.40 20.19 21.84 1.30
Quick 9.40 20.19 21.84 1.03
Total Debt to Total Assets 49.39% 31.16% 16.89% 66.90%
Pre-tax Return on Net Worth 68.32% 52.24% 59.68% 3.10%
Pre-tax Return on Assets 34.58% 35.96% 49.60% 9.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 16.66% 14.74% 17.07% n.a
Return on Equity 47.83% 36.57% 41.78% n.a
Activity Ratios
Accounts Receivable Turnover 3.15 3.15 3.15

Leave a Reply

Your email address will not be published. Required fields are marked *