Next Step: Business Plan Draft
This is the draft of my business plan. I'm looking to move forward with opening a brick and mortar. News in News about next steps funding...
Out of Play
2963 N Wading River Rd, Wading river, NY, 11792
631-593-1099
Jennifer Panetta, Owner
info@outofplay.shop
TABLE OF CONTENTS:
-EXECUTIVE SUMMARY
-COMPANY DESCRIPTION
-MARKET RESEARCH
-PRODUCT AND SERVICES
-MARKETING AND SALES
-COSTS
-LOGISTICS AND OPERATION
EXECUTIVE SUMMARY
PRODUCTS:
Out of Play sells hobby board games, puzzles, dice, and a variety of tabletop gaming products. We will also provide play space for customers, run in store events, and foster a strong community center. The products will be supplied from trusted distributors in the tabletop industry. We are looking to open up the hobby and create a friendly local gaming store.
CUSTOMERS
The target audience for Out of Play is adults, specifically individuals who wish to engage in the tabletop or puzzle community. Those who seek both a retail and community environment that is friendly to all.
FUTURE OF THE COMPANY
Although hobby retail is a niche and hard to market for we believe we can create a welcoming environment that builds up the community and introduces the best in tabletop gaming. Our goal is to build up not only a retail hobby business but a community space the fosters strong bonds with others business and customers in the area.
COMPANY DESCRIPTION:
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MISSION STATEMENT
To create a welcoming retail environment and provide space for the community to congregate that can help foster great relationships with other business in the area and tabletop retail vendors.
PRINCIPLE MEMBERS
Jennifer Panetta --- owner, sole employee
LEGAL STRUCTURE
Out of Play is a sole proprietorship.
MARKET RESEARCH:
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INDUSTRY
Out Of Play will be part of the hobby tabletop retail industry. Currently this is a niche market, comprised of small sized companies. The Tabletop Games Market was valued at USD 27.27 billion in 2023, and is expected to reach USD 49.17 billion by 2029, rising at a CAGR of 10.32%. North America dominates with the largest share of over 28% of the global tabletop market, followed by APAC.
Even with a recession looming and non-essential spending is dropping. the Tabletop gaming industry has continued to see growth with the help of cafes and play spaces with in retail locations
DETAILED DESCRIPTION OF CUSTOMERS
The age group we are marketing for is between 25-54 with income range of $35,000 - $80,000 a year. Our customers are interested in many hobbies including tabletop miniature games, collectible card games, board games, card games, puzzles and the like. They value togetherness and community as well as competitive pricing. They tend to research the products beforehand and have general or advanced knowledge of their chosen hobby.
COMPANY ADVANTAGES
Out of play has the following advantages compared to competitors.
- already have an online presence
- Have fostered relationship with several vendors in the hobby market
- Knowledge of distributors and requirements needed
- Already have EIN and established tax history
REGULATIONS
I already am established as a sole proprietorship with an active EIN. I am registered already as a NYS sales Tax vendor. I will have to follow location zoning laws and product safety laws.
PRODUCT AND SERVICES:
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PRODUCT/SERVICE
Out Of Play will sell hobby board games, puzzles, tabletop war games, TTRPG's, and many related products. These will be sourced from the vendors I have established relationships with as well as distributors in the industry as well as sourcing products from manufacturers. This will include in board terms:
-board games
-card games
-dice games
-playing cards
-puzzles: jigsaw
-collectible card games: MTG, Pokémon, yugioh, Others
-Dnd/Pathfinder/TTRPGs
-board game replacement pieces: meeples, colored cubes
-card game accessories: sleeves, deck boxes
-dice accessories: dice trays, towers, bags
-miniatures and supplies including paints
PRICING STRUCTURE
Out Of Play will have pricing ranging from $1 to $500 due to the large selection of products. This range is due to the high variability in products and the regulated pricing by the industry as a whole.
PRODUCT LIFECYCLE
Currently I hold no physical inventory but have been fostering relationships in my vendors through my drop shipping fulfillment service already established online.
INTELLECTUAL PROPERTY RIGHTS
all right are reserved by the rights holder and their subsidiaries.
RESEARCH AND DEVELOPMENT
Out Of Play is planning to conduct the following research and development:
-We have already implemented reviews on our website
-Will provide comment cards in store
-Foster a community through hosting weekly/monthly/yearly events and gauge the response customers response to tailor them to their wants.
MARKETING & SALES:
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GROWTH STRATEGY
To grow the company, Out Of Play will do the following:
-advertise in local markets
-maintain our online store
-provide events open to the community and request volunteers in hopes of fostering strong bonds in the community
COMMUNICATE WITH THE CUSTOMERS
Out Of Play will communicate with customers by:
-maintain news updates online
-using Facebook, Instagram, Pinterest, and BlueSky as social media sources as well as advertising sources
-provide contact information on the website
-employ business cards and event flyers as paper advertisement
HOW TO SELL
Currently the only person in charge of every aspect of business is the owner, Jennifer Panetta. As profits increase, Out Of Play will take on employees to assist in social media and marketing as well as in store sales. The target demographics are adults between 25-54+ with disposable income. The company will increase awareness to our target customers through online advertising and events held in store. Items will be sold with a price margin of between 10% and 30% depending on vendor and distributors.
START UP COSTS:
Low-End Estimates (Basic Retail Store):
Initial Inventory: $5,000 - $20,000
Rent (1500 sq ft, New York): $4,000/month
Marketing/Initial Costs: $3,000 - $5,000
Licenses/Permits: Varies, but potentially a few hundred to a thousand dollars
Furniture/Fixtures: $2,000 - $10,000
High-End Estimates (Larger Space with Gaming Area):
Rent (Larger Space): $4,000/month and up
Gaming Tables and Furniture: $10,000 - $30,000+
Cafe Setup (if applicable): Significant cost, depending on equipment and size
Larger Initial Inventory: $20,000+
Marketing/Initial Costs: $10,000+
Staffing: Potentially more employees, increasing payroll costs
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Out Of Play moving to a physical location means starting costs.:
-Shelving, tables, and retail fixtures ranging in price from $50 to $200 a piece depending on setup of store estimate about- $5,000-$8,000
-Initial Inventory which would be $30,000 to $50,000
-Cost of first few month rent due to prepping for opening $6,000 and $9,000
---------------Initial costs: estimated $41,000 to $67,000-------------------
REOCCURING COSTS:
Out of Play will have monthly reoccuring costs:
-Inventory stock from vendors $2000
-Rent depending on location $1,500 to $3,000
-upkeep like cleaning supplies and toliet paper: $50 to $100
-Advertising $200 to $500
-Website maintenence around $50 - $500
-events $350 for events
-other costs/unexpected costs $1 - $1,000
---------Total: estimated around $4,000 - $7,000 a month-----------
LOGISTICS AND OPERATIONS:
SUPPLIERS:
-Pennysleever- trading card protection
-BaronOfDice- card game accessories, dice, dice accessories, other
-Alliance Game Distributors - all things board games
-Southern Hobby - miniatures, all things board games
-GTS Distribution - all things board game
-alibaba - buy straight from manufacturers for pieces
SHIPPING AND FULFILLMENT
will use multiple shipping services depending on area of buyer. USPS, DHL, as examples. Will ship to Canada and USA market through my online shop and to local customers through a physical retail store.
INVENTORY MANAGEMENT
I will use Shopify inventory management until I can migrate to another software as well as keep paper records. I will check inventory once a week for small items and once a month for large items.
INCOME
Income will come from the selling of products at 10% -30% margin as well as conduct paid events. Tables will also be able to be reserved for a small fee for a time period. I also will sell online products to open up my customer base.
Out of Play – Financial Projections
12-Month Financial Projection (Year 1)
Month Gross Sales COGS (65%) Gross Profit Operating Expenses Net Income
January $5,000 $3,250 $1,750 $5,500 -$3,750
February $6,000 $3,900 $2,100 $5,500 -$3,400
March $8,000 $5,200 $2,800 $5,800 -$3,000
April $10,000 $6,500 $3,500 $6,000 -$2,500
May $11,000 $7,150 $3,850 $6,000 -$2,150
June $12,000 $7,800 $4,200 $6,500 -$2,300
July $13,000 $8,450 $4,550 $6,500 -$1,950
August $14,000 $9,100 $4,900 $6,700 -$1,800
September $15,000 $9,750 $5,250 $7,000 -$1,750
October $17,000 $11,050 $5,950 $7,500 -$1,550
November $18,000 $11,700 $6,300 $7,500 -$1,200
December $20,000 $13,000 $7,000 $8,000 -$1,000
Total $159,000 $103,850 $55,150 $78,500 -$23,350
Note: Year 1 is expected to operate at a loss due to startup costs and slower initial sales. This projection assumes monthly growth and holiday season gains.
3-Year Financial Forecast (High-Level)
Year Total Sales COGS (65%) Gross Profit Operating Expenses Net Income
Year 1 $159,000 $103,850 $55,150 $78,500 -$23,350
Year 2 $250,000 $162,500 $87,500 $85,000 $2,500
Year 3 $330,000 $214,500 $115,500 $92,000 $23,500
Assumptions:
Sales increase by ~50% in Year 2 and ~30% in Year 3.
Expenses rise modestly, accounting for staff or expanded inventory.
Store establishes profitability in Year 2 and sustainable growth in Year 3.