Business Plan for a Vide

9/9/2023

draghoobursing@[Link]
 Table of content

Executive Summary 2

Business Opportunity 6

Management Team qualification 9

Industry Analysis 13

Organisational Structure 15

Marketing Plan 17

Operation Plan 20

Risk Analysis 31

SWOT Analysis 33

Job Requirement for other staff 35

References 37

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 1. Executive summary.

1.1 Company Description.

The video game shop will be selling video games, gaming console and accessories for
consoles in Beau Bassin. The shop will also have a paid gaming zone for players to play and
test games. As there is no gaming shop around, this is a great opportunity to grasp the market
share.

Our business plan for the video game store states that we would furnish our gaming
establishment with a variety of amenities. Additionally, in addition to offering video games
and associated items at low costs, we'll make sure that our customer service is the best in all
of the country

1.2 Targeted Market

The targeted market will be:

 The Children
 Youngsters and adolescents
 Young Adults
 Video games Passionate

The targeted population can be of all ages as everyone can play and want to buy video games.
However, since it is a niche market, growth may be slow over the years.

1.3 The management teams.

At the top of the organisational structure, there will be the director, who will be the owner.
The management team will also consist of a senior cashier, a team leader, a store manager,
and a general manager.

1.3.1 Role of the management teams

In this section, we will see the role of each member of the Video Game shop. Each one will
have different roles and responsibilities.

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[Link] The Director

The director will have final say on all decisions, whether it is financially or strategically. The
director is at the head of the organisation. The director will be in charge in all the finance and
how the finance will be spent. Procurement will also be under the supervision of the director.

[Link] The Team Leader

The Team Leader will be the one who will manage the cashier teams and sales teams on a
day to day basis. The Team Leader will decide about rosters, and which person will work at
which cashier and aisle of the shop.

[Link] The Senior cashier

The cashiers will be under the Senior cashier supervision. The senior cashier will be
responsible of cash in the cashier and will be responsible to transfer it to the bank when
needed. He will work with the team leader about roster.

[Link] The store manager

The store manager will be responsible of the store and when to do procurement when
necessary. The store manager will do procurement from suppliers as and when it is required.

[Link] The general manager

The General Manager will manage the shop daily and will have to manage any problem that
arise at any moment.

1.3.2 The employees

Concerning the employees, there will be 2 cashiers and 3 salespersons. There will be one
Senior Cashier and 1 Team Leader. There will be 1 store attendant and 1 store manager.
There will be also 1 General manager and 1Director.
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In total, there will be 10 employees working on a full-time basis in the video game shop.

1.4 Financial Projections

Since video games, consoles and accessories tend to be costly, there is a need to have a huge
amount of money. Furthermore, all payments while doing payments while buying stocks will

be done either in Euros (€) or American dollars ($).

Capital is expected to be at around Rs 1 million while starting the business. The company is
expected to make loss during the first two years, and then profit as from the third year.
However, profit will be increasing slowly. The Financial projections will be discussed later in
the Business plan.

1.5 Exit Strategies

In case the video game shop does not work, there are various ways to step out of the business,
as all business owners are not willing to lose money.

 The most typical exit plan for a video game store is selling to a strategic buyer.
Another of video games seeking to grow its business is referred to as a strategic
buyer. They recognise the value in our location, clientele, and inventory, and would
be willing to pay more for your company.

 Selling to a financial buyer is an option for those who want to sell their business for a
profit after acquiring it. They would be more concerned with your company's
financial performance than with its strategic importance.

 Another way to close our video game store is through franchising. we would grant
someone else the authority to run our company in exchange for a royalty charge.
 The least preferred departure method is liquidation, although it can be required if your
company is having financial difficulties. All of our possessions, including your stock,
furniture, and machinery, would be sold.

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 2. Business Opportunity

2.1 The Opportunity.

People of Beau Bassin and its vicinity may not want to travel far for buying video games or
accessories. And there is no physical store in the surroundings. Video games passionate will
get an accessible shop where they can buy their favourite products at any moment of the day.

Furthermore, there are schools, and several colleges in Beau Bassin. Children, adolescents
and young adults could get access to the gaming zone after school and working hours or
before dinner.

2.2 Competitive Advantage

Not many gaming shops propose access to a gaming access to play games. This will be a
source of competitive advantage. This will attract customers, from Beau Bassin, and from
other town also as everyone will be willing to play video games with friends.

Furthermore, there will be various accessories for console like Playstation, Xbox and
Nintendo Switch. Accessories are often not available in the Mauritian market. Moreover,
exclusive console, like the Spider-Man Playstation edition or the future Mario Nintendo
Switch edition will be available. These editions of are often not available in Mauritius. Thus,
consumers will have the opportunity to buy a console with the face of their favourite hero.

Online purchase via a website or social media and Postage via post will be available will be
available as not everyone is being able to buy in the shop itself.

In Mauritius, gaming accessories tend to have higher price. We will be selling the products at
a more reasonable price to gain an advantage over competitors.

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Gaming zones at a reasonable price will also be available. The Gaming zone will let players
play their favourite games with friends and family after school and working hours. Thus, they
will not need to buy video games.
We will also offer trade in facilities, where gamers can exchange their old consoles and video
games for new one. They will be granted a discount upon any product exchanged. Working
games and consoles will be put on sale in the refurbished section of the shop at a lower rate
than new consoles and games.

2.3 Mission statement

The goal of the video game shop is to be the only gaming destination for players of all ages
and experience levels. We will provide welcoming gaming experience that goes above the
normal conventional retail shops.

We will provide a variety of collection of the newest and best video games, consoles,
accessories, and collectibles. Our team is committed in assisting clients in finding the ideal
gaming goods to match their tastes and interests.

Beyond just having a store where you can buy video games, our goal is to support a growing
gaming scene. With the gaming zone available at our shop, gamers can join for the
development of their gaming abilities and knowledge.

Environmental responsibility will also be at the heart of our operations. We are committed to
sustainable practices, especially with our trade in facilities, where most of gaming consoles
will be resold, thus creating less electronic waste.

2.4 Vision Statement

We want to be a place where gamers of all backgrounds gather to explore, compete, and
connect. Our vision is to create an environment where gaming becomes a place for creativity,
collaboration, and personal growth.

In this future, we see ourselves as a hub for innovation, where the latest gaming technologies
and experiences are not accessible for everyone. We envision a world where gaming brings
people together, forging friendships and fostering understanding among diverse individuals.

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We will remain dedicated in delivering exceptional customer experiences, cultivating a
passionate and knowledgeable team, and contributing positively to the gaming culture.

Our vision is to inspire, empower, and elevate the gaming experience, making it a source of
joy, creativity, and connection for generations to come. Together, we will shape the future of
gaming.

2.4 Current Status and Requirement

Since we are a new, starting business, we will need a location in Beau Bassin itself, financing
and recruiting staff.

For financing, we will take loans and find budget through personal savings. We will advertise
job vacancies in journal, radios, and social media.

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 3. Management Team and staff qualifications.

3.1 The workforce

The management team will consist of the senior casher, a team leader, a store manager, and a
general manager. The staff of the store will consist of the 2 cashier, 3 salespersons 1 Senior
Cashier, 1 Team Leader, 1 store attendant and 1 store manager. There will be also 1 General
manager and 1 Director.

3.2 The Director

The Director qualifications are :

As the director will be the owner of the business, no qualification will be needed for him.
However, he will have some responsibilities, which are as follows:

 possess strong interpersonal and communication skills, be able to build and maintain
effective working relationships with people from different backgrounds,
 possess strong leadership and management skills.
 be able to adopt a multidisciplinary approach to decision-making and make decisions
quickly.
 be able to offer precise strategy guidance for achieving the shop financial goals.

The salary of the Director will be at Rs35,000 monthly.

3.3 The general manager

The general manager should have a degree in Management, and at least 5 years of
experience, either in the sales industry or in the management sector.

The role and the responsibility of the General Manager will be as follows:

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  While overseeing all aspects of a business or division, a general manager is expected
to boost productivity and boost revenue.
 Managing workers, keeping an eye on the budget, using marketing tactics, and many
other aspects of the firm are all part of the general manager's responsibilities.
 General managers frequently work under the direction of executives or higher-level
managers and report to them.
 The titles of general managers might include branch manager, brand manager, or
operations manager.

The salary of the General manager will start at Rs30,000 monthly.

3.4 The Store manager

The qualification for the store manager is a degree in Procurement and supply or any other
related field. The store manager should have at least 2 years of experience in the procurement
section or in supply chain.

The responsibilities and key duties of the Store manager will be:

 To support any task involving operations for stock control, warehousing, and supply
chain management.
 To manage inventories and to handle e-procurement systems.
 To purchase all the necessary items (consoles, games, accessories) for the proper
functioning of the shop.
 Assure that all products are new and sealed.
 Do regular quality checks.

The salary of the Store manager will start at Rs 25,000 monthly.

3.5 The Team Leader

The qualification of the team leader should be a diploma in Human Resource Management or
Management. The Team Leader should have 1 to 2 years of experience in sales or a related
field.

The responsibilities of the Team Leader are:

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  Establish a culture of free communication to inspire your employees.
 Specify the sales objectives.
 Control daily sales operations.
 Track team performance and provide analytics reports.
 Encourage your teammates.
 Prepare roster in close collaboration with the Head Cashier

The salary of the Team Leader will start at Rs 23,000 monthly.

3.6 The Head of Cashier

The Head of Cashier should have an HSC or GCE with Accounting or Mathematics. The
Head of Cashier should have 1 to 2 years of experience in sales or as a cashier.

The responsibilities of the Team Leader are:

• Establish and maintain a positive work environment for all cashiers

• Interact with customers and resolve any issues they may have and act as the main point of
contact for customer service representatives

• Generate accurate and reliable till reports from each register and resolve cash tills when
closing, making sure the money matches the report and is stored safety

 Help the team leader to prepare roster for cashier.

The salary of the Head of Cashier will start at Rs 22,000 monthly.

3.7 Service Providers

All legal, financial, deliveries and website making will be outsourced to external providers as
it will be cheaper to outsource these activities.

Legal activities concern lawyer for international contracts, employee laws and any other
related activities related to legal aspects.

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Financial services are for preparing the Profit and Loss Statement, Cash Flows on a regular
basis, Balance sheets, and the final Budget.

Deliveries services include postal services. This will be done by The Mauritius Post LTD,
where all articles will be posted as an express letter. If the product is having a high value,
pick up points will be given to the buyer, and a seller will be doing the delivery.

The making and maintenance of the shop will also be outsourced. The website will be
updated regularly when new products are available.

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 4. Industry Analysis

While opening a business, we should do an analysis to know the actual trends, the size of the
market, competitors and how the profit will be.

4.1 Industry Trends

There is a growing market for the E-Sport industry. There are even professional players
playing games internationally and even locally. There are competitions for games like Mario
Kart, Fortnite or League of Legends. Totally revenue is expected to exceed US $4billion in
2029. Thus, E competitions are a great opportunity for the shop. Competitions could be
organised periodically.

Gift Cards for buying online games and downloadable contents is also a market and is . Thus,
the sale of gift card for Xbox Game Pass for example may be a good trend to jump in. The
customers will get access to online content and multiplier games in a more secured way.

4.2 Local Market

The local market consists of several small shops and dominated by bigger shops like IQON
and 101 Media. Both IQON and 101 Media sell goodies, accessories, consoles, and games.
Our video game shop main target is to try to compete with them, and try to differentiate from
them, by proposing better products and better pricing strategy.

4.3 Target Market.

The targeted market will be mainly:

 The Children
 Youngsters and adolescents

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  Young Adults
 Video games Passionate

They are the ones consuming video games at a high rate. The age group of the targeted
market will be mainly the 5 to 35 years old.

4.4 Competition

Most of the local video games shops are already established businesses, having their loyal
customers. They also can afford to sell their products at a lower price than newcomer in the
industry, especially when the price of Euro and American Dollar is increasing.

Moreover, E-commerce platforms such as Amazon, as well as specialized online game

retailers, can offer a wide range of gaming products at competitive prices. They often have
the advantage of convenience and a vast inventory. They also propose delivery facilities for
worldwide users.

Platforms like Steam, Xbox Live, PlayStation Network, and Epic Games Store sell games
directly to consumers through digital downloads. They have become increasingly popular,
especially for PC and console gaming.

Websites like eBay and Facebook Marketplace can connect buyers and sellers of both new
and used gaming products. Some customers prefer the convenience of shopping for games on
these platforms. In addition, customers will benefit lower prices as the sellers are selling
second hand games.

Services like Xbox Game Pass and PlayStation Now offer access to a library of games for a
monthly fee, which can be an attractive alternative to buying individual titles.

While not directly related to traditional video game shops, mobile gaming can compete for
gamers' time and attention, drawing them away from console and PC gaming.

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 Manufacturers like Sony, Microsoft, and Nintendo often compete for the same gaming
audience with their respective consoles and exclusive titles.

5. Organisational structure
5.1 Organisational Chart

Director

General Manager

The Store The Team The Head of

Manager Leader Cashier

1 Store attendant
14 Cashiers and salespersons
The director will take all the decision concerning the financial, strategical, managerial, and
marketing decisions. The General Manager will report directly to the director. The General
manager will look after the proper functioning of the shop on a daily routine and will apply
all decisions taken by the director. Under the General manager there will be the Store
Manager, the Team Leader, and the Head of Cashier.

The Store Manager will do all procurement and supply chain activities. The store manager
will report directly to the General Manager. The Store Manager will have a store attendant
under him.

The Team Leader will manage the cashier and salespersons with the help of the Head of
Cashier. The Team Leader will report directly to the General manager. The Team Leader will
manage daily sales.

The Head of Cashier will also report directly to the General Manager and will oversee
cashiers and making bank transaction.

The Store Attendant will be responsible to put all items on shelves. The Store Attendant will
directly report to the Store Manager.

The Cashiers will directly report to both the Team leader and Head of Cashier. The Cashier
will be the one who will process the payment of customer.

The Salespersons will also directly report to both the Team leader and Head of Cashier. The
salespersons will help customers to get any product or services.

5.2 Legal Structure

The video game shop will be a Limited Liability Company (LLC). An LLC is a popular
choice for small businesses because it offers limited liability protection for its owners
(members) while allowing for flexibility in management and taxation.

However, the Video Game shop will be solely owned by the owner where the owner will own
full equity of the business.
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 6. Marketing Plan
6.1 Target Market

Our target market will be niche at first, where we will be selling high end Pc parts, limited
edition consoles, rare video games. We will be using a price skimming strategy as we will be
selling high end products, where the profit is high, but sales are usually low. Moreover,
gaming products are usually having a low product life cycle (PLC).

6.2 Demographic Segmentation

We will be targeting the 5 to 35 years old mainly as they are the ones who will be mainly
playing video games.

According to Statistics Mauritius, in 2021, Mauritius had 5.3% of the population were aged
of 5-9 Years old, 6.2% are aged between 10-14 years old, 7.4% are aged between 15-19
years old.

People aged between 20-24 and 25-29 both represents 7.7% of the population, and 30-34
group age represents 7.0% of the population.

6.3 Geographic segmentation

There is also the geographic segmentation, as we are targeting the Beau Bassin and its
surrounding region. As this region is a town, a higher price can be charged as these
population are generally more well off. Moreover, rent and buying building tend to be higher
in town. So, we can charge a higher price.

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6.4 Marketing Mix

In the marketing mix, we will see which marketing strategy we will follow for our video
game shop. Each one of the marketing mixes has its importance.

6.4.1 Product strategy

In the first instance, we will sell focus products as mentioned before. These products will
include selling high end Pc parts, limited edition consoles, rare video games. Gaming
requirements are often high compared to normal users. So, capturing the special needs of this
public, will be beneficial for our business.

6.4.2 Pricing Strategy

For our pricing strategy, we will be market skimming strategy. This strategy is suitable for
products that have short lifetime, and/or face competition. As we might be selling low
volume, we must charge a much higher price.

In the future, we may envisage to use a cost-plus pricing. In this type of pricing, we will add a
mark-up to the price. With this method will be able to calculate our profit easily.

6.4.3. Promotion strategy

As a new business, our budget for marketing and promotion will be low compared to well
established business. Thus, we will be using social media as a mean for promotion.

We will use Facebook Ads to attain targeted market on Facebook and Instagram. We will
also make videos on Tik-Tok as everyone has a Tik-Tok account now. Furthermore,
Facebook marketplace is a free marketplace where, we as sellers can put our product for sales
for free.

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6.4.4 Physical Evidence

We will have both an online and a physical store. When a consumer is expected to pay for a
service in advance of receiving it or when they have never purchased from the company
before, it may be very helpful.

Physical evidence for our video game store might take the way we set up our shelves, where
the products are, staff clothing styles, gaming accessories and consoles, and internet reviews
to show what kind of experience might be anticipated.

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 7. Operation Plan

Where, by whom and how the business will operate is important while doing a business.
Having a qualified labour force, a good site plan and a proper quality control is important for
a sustainable business.

7.1 Qualified Labour Force

We will get a qualified labour force by posting job vacancies on social media and finding
proper staff by asking the Labour office to give us a list of qualified candidates.

Proper selection will be done by interviews and verification of documents. This will help us
to now which candidates have the right values, and proper experience for attaining the video
game shop objectives.

7.2 Site Plan and location.

We will be situated on the royal road of Beau Bassin as shown in the map below. As the land
is not used by the owner, we will either buy it from the owner, or rent it from the owner.

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We have chosen this location as the royal road is used by person to go to Rose-Hill and Port-
Louis, we could attract more customers. The video game shop will also be situated near a
Primary School. Children, with the consent of their parents, may come to play while waiting
for their parents. It is also situated near some fast-food restaurants; customers may use our
gaming zone or buy their gaming products while waiting for their food.

The business will also be at around 10 minutes of walk of the Metro Express station. This
will give us the opportunity to attract more customers, as they will be able to take the metro
to go back home after buying or using the gaming zone.

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7.3 Quality Control

We will buy only from certified resellers by the brands or from the brands themselves. This
will help us remain assure that our customers will get original and quality products.

Internal controls will also be done by the staff. Regularly, the store manager and store
attendant will open randomly several boxes to check if the products are original.

8. Financial Plans

During the first and second year, we are not expecting profit. We will be in deficit as a new
business will need to repay loans. As we will be unknown, we will need time to get visibility,
and be known to the public in general. So, it will take time for us to make profit. All figures
will be shown in Mauritian Rupees (Rs)

8.1 First year profit and loss statement

Video game shop

Date: 30 December 2023

Profit&Loss Statement

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 2023
current year

Revenue

Sales Revenue 2,000,000.00

Service Revenue 1,500,000.00
Interst from credit sales 250,000.00
Gain of Sales of Assets -

Total Revenue & Gains 3,750,000.00

Expenses
Advertising 78,990.00
Delivery/Freight Expense 12,340.00
Insurance 16,000.00
Interest paid 70,000.00
Construction 1,500,000.00
Office Supplies 100,000.00
Inventory 1,000,000.00
Rent/Lease 100,000.00
Maintenance and Repairs 90,000.00
Travel 58,000.00
Wages 2,604,000.00
Utilities/Telephone Expenses 4,800.00
Other Expenses 100,000.00

Total Expenses 5,734,130.00

Income before tax -1,984,130.00

Income tax expense 297,620.00

Net Profit (Loss) -2,281,750.00

We are assuming that we are renting out the land. Since there is no construction on the site,
half of the cost of construction will be borne by the business, and the other half will be borne
by the owner of the site.

8.2 Balance sheet for first year

Assets 2023
Current Assets
Cash
120,000
Accounts receivable

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 300,000
Inventory
40,000
Prepaid expenses
20,000
Total current assets 480,000
Fixed (Long-Term) Assets
Property, plant, and equipment
3,500,000
(Less accumulated depreciation)
-
Intangible assets
Total fixed assets 3,500,000
Other Assets
Deferred income tax
Other
Total Other Assets -

Total Assets 3,980,000

Liabilities and
Owner's Equity
Current Liabilities
Accounts payable
200,000
Short-term loans
(2,3%*1,000,000) 23,000
Unearned revenue
49,000
Total current liabilities 272,000
Long-Term Liabilities
Long-term debt
10,000
Total long-term liabilities 10,000
Owner's Equity
Owner's investment
6,000,000
Retained earnings
10,000
Other
Total owner's equity 6,010,000

Total Liabilities and Owner's

6,292,000
Equity

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8.3 Second year profit and loss statement

Video game shop

Date: 30 December 2024
Profit&Loss Statement
2024
current year
Revenue
Sales Revenue 2,950,000.00
Service Revenue 2,350,000.00
Interst from credit sales 500,000.00
Gain of Sales of Assets -
Total Revenue & Gains 5,800,000.00

Expenses
Advertising 80,000.00
Delivery/Freight Expense 13,000.00
Depriciation 15,000.00
Insurance 16,000.00

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 Interest paid 70,000.00
Office Supplies 100,000.00
Inventory 2,000,000.00
Rent/Lease 100,000.00
Maintenance and Repairs 90,000.00
Travel 58,000.00
Wages 2,604,000.00
Utilities/Telephone Expenses 4,800.00
Other Expenses 100,200.00
Total Expenses 2,647,000.00
Income before tax 3,153,000.00
Income tax expense 472,950.00

Net Profit (Loss) 2,680,050.00

During our second year of occupation, we are expecting a profit as there will be no
construction cost incurred. We will have more clients, which means more sales.

8.4 Balance sheet for second year

Assets 2023
Current Assets
Cash
300,000
Accounts receivable
400,000
Inventory
45,000
Prepaid expenses
58,000
Total current assets 803,000
Fixed (Long-Term) Assets
Property, plant, and equipment
3,500,000
(Less accumulated depreciation)
15,000
Intangible assets
Total fixed assets 3,515,000
Other Assets

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 Deferred income tax
Other
Total Other Assets -

Total Assets 4,318,000

Liabilities and
Owner's Equity
Current Liabilities
Accounts payable
350,000
Short-term loans (2,3%*977,000)
22,471
Unearned revenue
56,000
Total current liabilities 428,471
Long-Term Liabilities
Long-term debt
10,000
Total long-term liabilities 10,000
Owner's Equity
Owner's investment
6,000,000
Retained earnings
100,000
Other
Total owner's equity 6,100,000

Total Liabilities and Owner's

6,538,471
Equity

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8.5 Third year profit and loss statement

Video game
shop
Date: 30 December 2025
Profit&Loss Statement
2025
current year
Revenue
Sales Revenue 3,550,000.00
Service Revenue 3,050,000.00
Interst from credit sales 555,000.00
Gain of Sales of Assets -
7,155,000.0
Total Revenue & Gains
0

Expenses
Advertising 100,000.00
Delivery/Freight Expense 20,000.00
Depriciation 25,000.00
Insurance 16,000.00
Interest paid 70,000.00

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 Office Supplies 125,000.00
Inventory 3,000,000.00
Rent/Lease 100,000.00
Maintenance and Repairs 100,000.00
Travel 60,000.00
Wages 2,604,000.00
Utilities/Telephone Expenses 4,800.00
Other Expenses 110,200.00
3,731,000.0
Total Expenses
0
3,424,000.0
Income before tax 0
Income tax expense 513,600.00

2,910,400.0
Net Profit (Loss)
0

8.6 Balance sheet for Third year

Assets 2023
Current Assets
Cash
450,000
Accounts receivable
460,000
Inventory
80,000
Prepaid expenses
60,000
Total current assets 1,050,000
Fixed (Long-Term) Assets
Property, plant, and equipment
3,500,000
(Less accumulated
depreciation) 25,000
Intangible assets
Total fixed assets 3,525,000
Other
Assets
Deferred income tax

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 Other
Total Other Assets -

Total
4,575,000
Assets

Liabilities and Owner's

Equity
Current Liabilities
Accounts payable
350,000
Short-term loans
(2,3%*954,529) 21,955
Unearned revenue
56,000
Total current liabilities 427,955
Long-Term Liabilities
Long-term debt
10,000
$
Total long-term liabilities
10,000
Owner's Equity
Owner's investment
6,000,000
Retained earnings
10,000
Other
Total owner's equity 6,010,000

Total Liabilities and Owner's Equity 6,447,955

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 9. Risk Analysis

9.1 Risk Management

Management of risks is crucial. It is how the company will respond whenever one of the
recognised risks materialises. There is an answer for every kind of danger.

There is a minimal likelihood of injuries occurring when making deliveries, provided that
required measures are taken. But if it does, the firm will suffer greatly. The management
needs to stop this from happening. To carry stock, the management should offer the required
equipment, such as a trolley.

As Mauritius frequently has rainy weather, there is a greater likelihood that slips, trips, and
falls may occur. However, this won't have much of an effect on the company. The

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management of the retail store can take the required safeguards by requesting that the
cleaning crew do routine floor cleaning or by placing door mats at the entrance to the store.

Violence can occur at any moment while a business is in operation and will have a significant
impact on the firm. Such a risk should be avoided by management. This may be
accomplished by preparing the cashier and security staff for these kinds of situations. It
should be easy to see and have a good installation of CCTV.

The likelihood of a store fire increasing the likelihood that it would negatively affect
business. The presence of matches close to combustible items may have caused this. You
may prevent this by keeping matches and other combustible items out of reach. In each
situation of fire, it should be possible to put it out using fire horses. Any harm might be
transferred to the insurance to help the company recoup any damages.

Unexpected economic downturns can occur at any time. Although there is a little probability
that it will occur, the business will be significantly impacted. This kind of danger will be
impossible for the management to avoid. The management should market subpar products
while attempting to reduce costs.

9.2 Types of risk

9.2.1 Marketing risk.

A marketing risk that can happen, is the wrong pricing strategy for our products. If the price
does not align with the quality of the product, people will not be willing to purchase from us.
Price change will often be needed when as target market may change. The usage of flash
sales, special promotion may be used to manage risk.

9.2.2 Financial Risk.

Financial risk often relates to the risk of losing money for a business. There may be the risk
like liquidity risk, where items cannot be sold quickly enough. It is a real issue, especially in
markets like the gaming industry.

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Ratio analysis may be used to evaluate and manage financial risk and compare us to the
business. The ratio analysis may be used to compare to the industry performance also.

9.2.3 Operational Risk.

Operational risk is often related to how an organisation function. Certain types of functions
should be prioritizing. For example, achieving lower cost. This can happen because of the
people, system, or external events. There can be lack of staff, or outdated system or even
geopolitical situation from exporting countries.

We can anticipate risk by having supply staffs, having continual update of our internal system
or having different suppliers.

10. SWOT Analysis.

A swot analysis concentrates on all the strength, weakness, opportunity, and threats of a
business. And it also concerns our video game shop.

10.1 Strength of our shop.

One of our strengths will be our good customer service. We will have a welcoming staff. Our
staff will be following training regularly on how to welcome customers.

We will be selling high end products compared to our competitors. This will attract gamers
who need much more power for their PCs or consoles.

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We will also make strong advertising campaign on social medias such as Tik-Tok, Facebook,
and Instagram

10.2 Weaknesses of our shop.

Since we are a new entrant in the market, we will have a greater cost than rivals. We will
have financial loss or lower money for investments than competitors. So, the first years we
will not have much investment.

For the first year, our staffs may lack competencies to attract customers and make them buy
our products.

We will need to invest more in marketing, which is a cost. So, the marketing will absorb our
profit for the first year.

10.3 Opportunities for our shop.

We will be the only shop in the vicinity of Beau Bassin. So, we will be able to serve an
untapped market.

We will also be the only one to be having a gaming zone in the Plaines Wilhems. Being the
only one proposing a gaming zone, people will be more attracted to our shop.

We will also be having collector’s edition of consoles, collationers will be able to buy these
types of consoles from us. It will be another untapped market which will be served.

10.4 Threats for our shop.

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The main threat will be online services as they are becoming more popular. People buy
mostly from online services from now. Online services may comprise of Amazon or eBay for
gaming consoles or e-shops for video games.

There may be an adverse shift in exchange rate where the price of Euros and of American
Dollar may increase highly at any moment. Our cost of import will increase, and so our
reselling price. This may discourage customer to make purchases.

People tend to keep PCs and consoles for a long time. It may take time for people buy new
PCs and consoles.

11. Job requirement for other staffs

Having good staff often go through the right requirements when advertising the vacancies.
We must choose the right educational level and experiences needed for each post.

11.2 The store attendant

The store attendant should a have an HSC with GP and Mathematics.

The Store Attendant should make inventory management, which includes placing orders,
receiving deliveries, stocking shelves, and controlling stock levels to reduce losses and
increase revenues. He needs to know inventory management software and systems.

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The store attendant will earn Rs 19,000 per Month. We will count 1 store attendant at our
store.

11.3 The Cashiers

The Cashier should have an HSC with French and Mathematics or Accounts at Principal
Level. He should also have English at SC Level. The Cashier should have good
communication skills.

The Cashier should use cash registers to handle consumer transactions, scanning products and
checking that prices are correct, and take payments, whether they be credit or cash.

The Cashier will earn Rs 18,000 per month. We will count 3 cashiers at our store.

11.4 The Salespersons.

The Salespersons should have an HSC with at Principal Level. He should also have English
at SC Level. The Salespersons should have good communication skills.

The Salespersons should promote the shop while selling clients goods or services. This might
involve identify the finest products, providing presentations or demos, and keeping in touch
with clients.

The Salespersons should process and submit orders to guarantee that clients receive the goods
or services they require as soon as possible.

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We will count 2 salespersons at our store.

References:

Statistic Of Mauritius (2021), available at

[Link]

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