assignment for kim woods
kenji takada
ent_assignment_2.pptxA Proposed Entrepreneurial Business Plan
The Dota2 gamming stream house and coffee shop
Idea Conception
Sources of idea:
From the Vietnamese famous caster Pewpew
From the hobby : drink coffee and talk with friends about games
Dota2 is becoming the e-sport. The coffee shop can become the place communicate player and good place for sharing experience game.
Opportunities:
At Singapore, only have Garena coffee, don’t have dota2 coffee.
The host computer of dota2 Asia, they put it at Singapore, and have a lot of Dota2 gamer here.
One new way to develop the e-sport with the Singaporean.
One place can help gamer shares experience game, and make the team to train and go to tournament for earn million $USD.
And have new type of coffee beside the Highland coffee or Starbuck coffee at Singapore.
Don’t have competitive because only have Garena coffee (Legend of language)
2
Opportunities & Feasibility Analysis
Market Size & Potential
High potential
High risk
Barrier low entry
Singaporean like fast food and they don’t cook at home
Market Segment:
Dota2 gamer and person like the Italy coffee taste
Competitive Analysis
According to the statistic from F&B Singapore ( Food & beverage ). Singapore have a low entry barrier for new entrants.
We mainly focus on our local market which is Singapore and later expand our business model to oversea countries such as Hong Kong, Korea ,….
Competitive analysis, we do with bargaining of Supplier, threat of new entrants and bargaining power of buyer.
Singaporean don’t have time to cook at home, they always eat fast food or hang out, that why it is the reason the dota2 coffee shop can attract them.
3
Competitive rivalry in the industry
Threat of new entrants
Bargaining power of buyer
Bargaining of supplier
Business Model
Uniqueness & Competitive Advantages
Have caster cast game like the soccer math
The first coffee dota2 shop at Singapore, and have event every weeks or when have journey.
Target Market Segments
Dota2 gamer
People who loves to drink coffee and like the notice place
Positioning
Provide high standard services
Tasty drink
Smoke outdoor
. Focus the Milano coffee taste with local customer (Singapore).
. Have gamer have more game show to enjoy and find out the new things in the dota2 game (Meta game).
. Can watch the game match like the soccer match with caster. And get the gift when enjoy.
4
Entrepreneur’s Background and Resources
Background:
Franchise from Milano Coffee Company
Had previously done marketing campaign
Just finish degree of international business and have 4 years experience about dota2 game.
Always go coffee shop, and have 2 years to do the part time at coffee shop at USA
Resources:
Financial budgeting approximately SGD 500k-700k
Family invest and shareholder with friends (friend’s invest nearly $250k SGD).
Deposit 75% and shareholder 25%
. As for experiences, we had previously done marketing campaign on how to overcome Starbuck Co.’s problem
. For financial budgeting, we may need approximately SGD 500k-700k for our budget. The budget is mainly focused on the advertising of our shop. The advertising can be in the form of moving vehicle, banner or by posting on websites and social media.
. Try to make new taste, which made the customer happy and accept with it. But need follow the Milano Coffee company because our shop is Franchise of Milano coffee.
. When we have profit, we can share with the percentage shareholder have.
Deposit 75% money when start the business and shareholder (friends) is 25%
5
Marketing
Product: Different types of Milano coffee
*Pricing: $2.75--$7 SGD
*Place: China Town (need have big space for stream game and service coffee)
*People: 18 years old and over, officer and foreign travel, foreign student.
. China Town can rent the house with one more floor, can have more space for customer can come enjoy, and have space for put the laptop or desktop for caster working here.
. With the price 2.75$ SGD -7$SGD can be fit in with the income of Singaporean. And can compare with the Starbucks or highland Coffee’s price.
6
Pubstomp dota 2
Promotion: free gift code item in the dota2 game, with the member of shop can have discount card when buy items dota2 game or buy drink at shop
*Process: choose and pay , take-away, order online or call hotline.
When have the event game like TI ( look like the world cup soccer, choose the 20 teams best dota2 play and fight to take high price).
It happens at Seattle US, and that why a lot of gamer cant go and buy the item to get the code item in game, that why we can become the place help them order or buy it with the pubstormp dota2
With the membership card of shop, customer can have free gift code item in dota2 game, and discount when buy items dota2 game at shop, or discount drink price.
7
Operation
Location:
The first shop will do on China Town because have big space for customer can come and sit down, enjoy coffee drink and listen caster cast game
Shop open at 8am and close at 10pm
Layout:
- We mainly offer the coffee for customer come and stay to enjoy game environment, or take-away customer.
Shop will design as same as many Milano coffee shop in the world on the first floor
The second floor of shop, the place for cast game, and place for gamer come and discuss dota2 game
China Town at Singapore is the place we can rent the shop with 2 floors for do the business.
Shop open from 8am and close at 10pm
The customer come to shop can enjoy the Milano coffee styles, and also enjoy the dota2 game environment.
Shop design like many Milano shop in the world but the second floor is the place to service dota2
8
Organization
Legal Structure: do the business with money from family and also shareholder ( friends), take 75% ower of shop and friends take 25% for shareholder.
- Management Team:
- We hire 3 caster (have confidence, talking orator), 4 staff and one manager who have ability to do all the work management business that attract customers and ensure sales and profits.
The caster can be local person, or the foreign ( just only work online).
The staff need 4 and divide 2 person work together.
9
Financials
Source of income/profit : selling the product
Amount of investments: 800,000$SGD
Sources of funds: Our own money
Application of funds:
Shop rental : 48000 $SGD/ month
Staff rental : 3,600 $SGD/ month
Material price : 20,000 $SGD/ month
Other : 5,000 $SGD/month
Caster: 5,400 $SGD/month
Computer : 6000$ SGD
Because we just starting it , so most of our income and profit come from selling the product.
The source of our funds come from our members money divided by 5
other in application of funds include the tax , the price to hire the equipment etc…
10
Financials
Units to be sold : 5000 cups of coffee
Average selling price per unit : 7$ per unit
COGS : 20,000 $
Other cost : FC : 21,250 $, V : 2.75 $
Break-even point in SGD : 35,000 $
FC = x . ( p – v ) = 5000 . ( 7 – 2.75 ) = 21,250 $ x : number of unit to be sold, p : price per unit , v : variable cost per unit, FC : total fixed cost .
Break-even point in SGD = x . P = 5000. 7 = 35,000 $
11
Financial
When start the business, we don’t need pay tax to government in first 3 years.
Cash flow statement :
Cash flow from operating activities: This section includes cash flows from the principal revenue generation activities such as sale and purchase of goods and services. Cash flows from operating activities can be computed using two methods. Direct method and indirect method
Cash flow from investing activities: cash in-flow and out-flow related to activities that are intended to generate income and cash flows in future. This includes cash in-flows and out-flows from sale and purchase of long-term assets
Cash flow from financing activities: are the cash flows related to transactions with stockholders and creditors such as issuance of share capital, purchase of treasury stock, dividend payments etc.
12
Risks and Contingencies
Type of risks:
- The potential risk is threaten of competitors, come from Highland coffee, Starbuck coffee and LOL coffee, which service the coffee as same as Milano coffee.
Contingencies:
- We may providing some other drink outside of main menu like Coca, Pepsi, Mocha, smoothie fruit and also the alcohol to diversify customer’s choice.
And make some event dota2 game show to attractive gamer
. We need to discuss with the mother company of Milano coffee to make the new taste, can attractive with the new customer. And we need to take the license with the Singapore Government about can work late some night when have the big event of Dota2 game ( like TI or big tournament).
. Make the some drink outside the main menu like cocktail, coca, Pepsi….for person cant drink the coffee but want to enjoy the dota2 environment
. Maybe can have dinner food when watching the game also.
. Can have the alcohol for drink but need follow the Singapore Government’s law.
13
Conclusion
Summary of the plan
We do the Milano coffee shop with the stream dota2 gaming inside the shop.
Have discount for membership, and event free gift code item in game for customer.
The business start with the person have 75% owner and just finish the degree of international business of SCU.
The first shop do business like this at Singapore.
We would like to thank our investors and lenders for your support
References
Singstat.gov.sg,(2015).Welcome to Statistics Singapore. [online] Available at: http://www.singstat.gov.sg/ [Accessed 21 Mar .2015]
Acra.gov.sg,(2015).Home-ACRA.[online]Available at http://www.acra.gov.sg/home/[Accessed 21 Mar .2015]
