A Sample VR Lounge Business Plan Template
Virtual Reality (VR) lounges are part of the Arcade, Food & entertainment industry and players in this industry include businesses that primarily operate video game arcades and game-focused family entertainment centers, which typically sell food and beverages.
Industry operators rent or purchase card- or coin-operated arcade games that customers play for a fee. Establishments that primarily focus on gambling games, billiards, miniature golf and other larger-scale or outdoor amusements are not included in this industry.
Woops Zone® Virtual Reality Lounge, LLC is a standard, licensed and well – equipped virtual reality arcade lounge that will be located in the entertainment hub of Santa Fe – New Mexico. We have been able to secure a standard facility in a central and easy to locate location in Santa Fe.
We are well equipped to service the whole of the community as well as visitors and tourists. Woops Zone® Virtual Reality Lounge, LLC is going to become the number one destination for virtual reality (VR) enthusiasts (gamers and gamblers alike) in the whole of Santa Fe – New Mexico.
We are well equipped and positioned to operate licensed virtual reality arcade lounge with a wide range of virtual reality games suitable for individuals, birthday parties and teambuilding et al, from top flight virtual reality games production companies like Microsoft Corporation, Nintendo Co. Ltd., Activision Blizzard Inc., GameStop Corp., Sony Corporation and Electronic Arts Inc. Our virtual reality arcade also has enough parking space.
feasibility studies and we were able to come to the conclusion that Santa Fe – New Mexico is the right place to start our VR arcade lounge. Our client’s best interest would always come first, and everything we do is guided by our values and professional ethics.
Woops Zone® Virtual Reality Lounge, LLC will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays in order for us to accommodate people with different time preferences.
Woops Zone® Virtual Reality Lounge, LLC will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Woops Zone® Virtual Reality Lounge, LLC is owned by Solomon Boston and his immediate family members. The business will be managed by Solomon Boston and his son Jerry Hamilton. Solomon Boston has over 15 years’ experience in the Arcade, Food and Entertainment Complexes industry working for some of the leading VR arcade lounges in Santa Fe – New Mexico.
3. Our Products and Services
Woops Zone® Virtual Reality Lounge, LLC is in the industry to provide standard virtual reality arcade lounges, why we have been able to put up a facility that can help us achieve the goal. We are optimistic that anyone who makes use of our virtual reality arcade lounge will definitely derive huge value for their money.
Woops Zone® Virtual Reality Lounge, LLC is in business to become the leadingVR lounge in Santa Fe – New Mexico and we are fully aware that it will take the right facility, management and organizational structure to achieve our goal.
The kind of the virtual reality arcade business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands in the industry as long as they are ready to work with us. In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;
VII. Financials. 13 Revenue and Pricing Strategy. 13 Key Assumptions . 14 3 Year Projections . 14 Customer conversion . 14 Year One (Y1) Expense . 14 Year Two (Y2) Expense . 15 Year Three (Y3) Expense . 16 3 Years Profit & Loss Projections. 16 3 Year Cash Flows Projections . 16 Company Valuation . 17 Funding. 17 1
Executive Summary Who hasn’t heard of Virtual Reality? What used to be a mere fantasy has now transformed into one of the biggest technological innovations. Virtual Reality (VR) is a booming market, with renowned companies such as Facebook, HTC and Intel among the biggest investors1. The VR market is forecasted to double every year in the next 3-year period2. Wearing a VR Headset can teleport you to a completely new world or give you an experience you can only dream of undergoing in real life. While sets of equipment are already commercially available for the early adopters of the technology, it has been seeing some resistance to wider adoption mainly because of two reasons: lack of accessibility and an expensive price. This is where VRCafé’s services lie. Our aim is to make bring VR closer to the general public, by making it more accessible, both physically and financially. VRCafé proposes to provide this through a social space where people can experience VR together.
Value Proposition The Problem As of January 2018, there are 171 million active VR users worldwide3. While it is true that the VR market shows huge potential, it remains far from mass adoption. There are two major reasons behind this. Firstly, the technology is still young, so it is not yet as widely accessible as it will be in the long-term future. Secondly, since the market has not yet matured, prices of products are high, product cycles are short, and the shadow of obsolescence can sometimes be felt around the corner. 71% of the UK population admits being concerned with the cost of buying VR equipment4. VR sets are not very portable pieces of technology. Moreover, it is highly unlikely that two friends can own a set each. This makes socializing in-person while using VR very difficult, and making new friends (in-person) while playing is a nearly impossible task. Since the majority VR users are gamers or entertainment seekers, socialization is, interestingly, a highly sought-after aspect of the experience5.
Business and Service Offering The offering of this service is that of providing a social environment and high-end equipment to customers for a limited amount of time. VR is a mystifying and magical technology to most, and it is easy to understand why. It could be defined as the most immersive piece of technology to have ever been created. Consequently, there exists a high wider public demand for trying it out. VR is also a diverse field, with different companies pursuing diverse approaches. VRCafé’s aim is to provide a social experience in a welcoming and enjoyable Café. The founders of the company live in Central London, which is the center of the UK, a modern country with a high demand for cutting edge technology. They come from Imperial College London, the UK’s most international university, full of gamers, young adults and technology fanatics. They are in the perfect position to launch VRCafé and reach its target audience. The business is expected to be highly profitable, as it is demonstrated later in this document.
Business Model (Operations and Roadmap) Strategy Evaluation Making use of the well-known Teece Framework 6 , the VRCafé business model can be said to have low appropriability and available complementary assets, since the idea is difficult to protect and the equipment can be acquired from different suppliers. Therefore, it can be placed in the upper-left quadrant. This implies that revenue can be hard to earn. However, as the financial statements included later in this document show, in this case, even with a very conservative approach, breakeven is easily achieved in Q2 of Year 2.
To run the business, we are searching for an initial investment of £500k from a business angel. Some initial interesting points of contact are The Venture Reality Fund 7and the FiBAN8, networks which link experienced investors to start-ups especially related to AR & VR sectors.
Market Analysis Market Segmentation Bottom Up The use of a preferred witness was crucial in our approach. After meeting up with regular VR gamers from the Imperial College Gaming Society, we gained the following insights: •
Customers can be divided into three groups: o Enthusiasts: these people have an active interest in VR gaming. They play VR games regularly. o Passives: they don’t have a special interest in VR but they have played videogames in the past and would not mind trying out VR if the opportunity arises. o Indifferent: these people don’t like gaming in general, and would not be interested in our product. Most VR places are targeted towards people aged 20-35 and with a good salary, since sessions are expensive. There is a big market gap in those individuals which lack the economic resources to enjoy VR gaming. Customers desire more opportunities for group VR gaming. Most current ones are individual. CUSTOMER PROFILE Passives
Other areas of opportunity are predicted to come according to the users need. Therefore, there is a need to encourage higher VR adoption rates from consumers. Moreover, to find solutions to existing software and hardware gaps in the technology.
Many businesses are exploring ways to transition the technology from a content consumption end to a more user content creation format. As the technology is still in its emerging stages, revenue streams and ideas for more opportunities are still being explored. Every entrepreneur or small business is looking to add value to the industry using the VR solutions.
Quytech is renowned in outsource development of VR technology, from mobile apps to games to VR-related business applications. we have the skilled resources in house to take your application from concept to market. Check Our AR/VR Work here