The Ducks Poker Room business plan and market analysis

Business Plan Proposal:

The Ducks Poker Room

Business Plan Proposal: The Ducks Poker Room

Executive Summary/Company Description

The Ducks Poker Room will be a new for-profit gaming club primarily hosting players of versions of the card game known as "Poker." The Ducks Poker Room will also offer alternate games, including but not limited to promotions for prize pools involving tickets to college basketball and football games. Finally, The Ducks Poker Room will host patrons who are not playing poker.

Business Plan Objectives

Provide exceptional facilities, equipment, service, staff and merchandise that create a highly positive impression on our core customers;

Consistent entertainment atmosphere and product quality;

Capitalize on excellent location opportunity;

d. Launch the venue with a highly publicized grand opening event in the spring of Year 1;

e. Maintain tight control of costs, operations, and cash flow through diligent management and automated computer control;

f. Maintain food costs below 33% of food revenue;

g. Maintain total beverage costs below 25% of beverage revenue;

h. Exceed $250,000.00 in weekly net revenue by the third year of plan implementation.

3. Product/Service Offerings

In order to achieve our objectives, The Ducks Poker Room will offer:

a. Facilities, located at:

b. An area within the facilities, dedicated to playing Poker and equipped with:

1) Seven (7) Poker tables seating up to nine (9) players at a time, for a possible total of sixty-three (63) individuals simultaneously playing Poker;

2) All other equipment and staff required for playing Poker;

c. Game scheduling, tentatively set as follows:

3) Live Poker cash games at any time;

4) Poker tournaments every evening;

5) Poker tournaments every Saturday and Sunday afternoon;

d. A sitting area within the facilities and equipped with:

1) One (1) X-Box;

2) Two (2) video poker machines;

e. Facility-wide equipment, such as four (4) televisions for viewing sports programs;

f. Facility-wide sale of food and beverages, including snack foods and beer;

g. Facility-wide sale of merchandise, such as T-shirts, decks of Poker cards, card toppers, and other Poker-related merchandise and accessories;

h. Experienced ownership/management/staffing by the following persons:

1)

2)

3)

4)

5. The Market Analysis

Eugene is the second largest city in Oregon and the seat of Lane County. As of the 2010 U.S. Census, Eugene has a population of 156,185; this represented an increase of 18,292 since the 2000 Census. Eugene is also the home of the University of Oregon, with a 2010 student enrollment of 23,389. Furthermore, OU's enrollment steadily increased from 2007 through 2010, as the following figure shows:

The Ducks Poker Room intends to target customers from both the general and OU student populations and anticipates capturing a large segment of these populations due to: the small number of Poker rooms within and around Eugene; our product/service offerings, which extend far beyond the minimal offerings of competing Poker rooms within and around Eugene; our Oregon Ducks theme. Based on the average yearly population increase of 1,829 or 1.17% in Eugene's general population between 2000 and 2010, and based on the OU student population growth of 1003 or 4.48% between 2009 and 2010, we anticipate the following yearly increases in these populations for potential customers:

Table: Market Analysis

Year 1

Year 2

Year 3

Year 4

Year 5

Potential Customers

Growth

CAGR

City Residents

1.17%

156,185

158,012

159,861

161,731

163,623

1.17%

23,389

24,437

25,532

26,676

27,871

4.48%

Other

0%

0

0

0

0

0

0.00%

Total

2.825%

179,574

182,449

185,393

188,407

191,494

2.825%

6. Start Up Summary

Requirements

Start-up Expenses

Legal

Stationery etc.

Consultants

Insurance

Rent

Research and Development

Interior Refit

Expensed Equipment

Air Cond. Upgrade Audio/Lighting

Bar Equipment/Supply

Fees and Permits

Bathroom Upgrades

Initial Marketing

Opening Salaries Deposits

Other

$0

$0

$0

$0

$0

Total Start-up Expenses

$0

Start-up Assets

Cash Assets

$0

Other Current Assets

$0

Long-term Assets

$0

Total Assets

$0

Total Requirements

$0

7. Revenue Forecast

Weekly Revenue Forecast

Year 1

Year 2

Year 3

Unit Sales

Cover

19,500

36,000

42,000

Drinks

56,000

68,000

75,000

Food

14,000

25,000

33,000

Entertainment

13,600

17,000

22,000

Total Unit Sales

103,100

146,000

172,000

Unit Prices

Year 1

Year 2

Year 3

Cover

$10.00

$10.00

$10.00

Drinks

$3.00

$3.00

$3.00

Food

$7.00

$7.00

$7.00

Entertainment

$8.00

$8.00

$8.00

Sales

Cover

$195,000

$360,000

$420,000

Drinks

$168,000

$204,000

$225,000

Food

$98,000

$175,000

$231,000

Entertainment

$108,800

$136,000

$176,000

Total Sales

$569,800

$875,000

$1,052,000

Direct Unit Costs

Year 1

Year 2

Year 3

Cover

$0.00

$0.00

$0.00

Drinks

$0.75

$0.80

$0.86

Food

$2.45

$2.62

$2.81

Entertainment

$4.00

$4.28

$4.58

Direct Weekly Overhead Costs

Cover

$0

$0

$0

Drinks

$42,000

$54,570

$64,401

Food

$34,300

$65,538

$92,565

Entertainment

$54,400

$72,760

$100,751

Net Weekly Revenue

$130,700

$192,868

$257,717

8. Anticipated Milestones

Milestone

Start Date

End Date

Budget

Finding location

0/0/00

0/0/00

$0

Hiring Staff

0/0/00

0/0/00

$0

Obtaining Licenses/Permits

0/0/00

0/0/00

$0

Obtaining Equipment

0/0/00

0/0/00

$0

Obtaining Merchandise

0/0/00

0/0/00

$0

Obtaining Advertising

0/0/00

0/0/00

$0

Grand Opening

0/0/00

0/0/00

$0

Netting $50,000.00/week

0/0/00

0/0/00

$0

Netting $100,000.00/week

0/0/00

0/0/00

$0

Netting $150,000.00/week

0/0/00

0/0/00

$0

0/0/00

0/0/00

$0

0/0/00

0/0/00

$0

Totals