Investment Proposal Example

By in portfolio on November 21, 2017


proposal examplePrimlabs SRL
Sarmiento 7025, 3rd fl, ste D
[email protected]
Buenos Aires, Buenos Aires, 2900

There is going to be 200 million VR headsets sold by 2020. The research
firm tractica forecasts that the market for consumer virtual reality
content and hardware will reach a whopping $21.8 billion of revenue by

The rise of broadband consumer internet almost completely killed the
community cinema and video arcade of the 1980s and ‘90s.

In mega-cities in which amusement adopters, video game aficionados and
people in need or want of being entertained could find many of the aforesaid
businesses in the marginal areas — let alone the central ones — there isn’t
any anymore, or what is left is an aberrant vestige of the past.

What is more, in big cities that featured video arcade and “pleasure lane”
types of business street configuration, video game recreation is missing.
It has been clearly delegated to the malls’ leisure courts. Gone are the
days when video gaming formed part of fast-paced, day-to-day downtown and
uptown district life.

In the street malls and pedestrian streets of cramped mega-cities where
cinemas and video arcades where a part of the landscape, the situation is
felt when the shops that used to be video game galleries are now dingy
fairs and the cinemas, evangelist churches.

My idea for a modest attempt at bettering this unsettled situation is to
bring cutting-edge leisure where it once thrived, without the risks of
getting stuck in any particular place by means of an easily transportable
virtual reality games stand of high-end hardware configuration.

It will be operated by one person and it will have the capacity to run
networked first-person shooters and games designed for VR platforms.

Customers will purchase passes for the attraction, each pass will be valid
for fifteen minutes of game-play time.

Facebook owns Oculus, one of the top three companies in VR equipment sales. Because of this, striking a partnership with either Oculus, Facebook or both companies may help the business grow greatly. An affiliate agreement for when we refer a customer to Oculus and the customer buys from them should also be added to the marketing mix.

This stand will be small, about a third the size of a common fair stand,
around thirty-two by twenty-two inches of surface size. This will give the
business a great capacity for mobility and the freedom of not getting tied
to a certain venue in particular.

As venues that come to mind we have thought of:

  • Getting a concession in a mall’s amusement court
  • Parks, squares, and street malls (previous granting of needed permits by
    the city)
  • Renting it, with an operator, for events (birthdays, etc)

If this business succeeds, it might allow for global escalation to bigger
markets than Argentina. Think USA, India and China.

We expect this business to make from 60 (sixty) to 120 (one-hundred and twenty)
dollars on the daily. In an ideal scenario of only half of all the work hours being
occupied by customers that buy passes, this business would make 6000 (six-
thousand) dollars monthly, or 72000 (seventy-two thousand) annually.

This opportunity requires around $11000* to be carried out:

1. Laptops (2) (Dell Inspiron 15 7000, 34watts): $3538.77

2. Headsets (2) (Oculus Bundles, Rift+Touch kits): $1712.31

3. Portable Generator (Honda Eu 20, Soundproofed Inverter): $1820.76

4. Game (two boxes): $97.03 (+ License to use as Paid Amusement, $…)

5. Cash Register: $913.23

6. Stainless Steel Cart: $570.77

7. Advertising Campaign and Promotional Material: $1847.23 (~six month budget)

8. Paperwork Fees: $…

(*) Important Note: these are Buenos Aires prices, and some may appear
wrong, like for instance the portable generator, which can be purchased in
Amazon for half that price, or the cart, that is priced in this document
more than three times what it costs in an American Ikea. The figures are
only a tentative appraisal, without any optimization of the purchases like,
for instance, taking advantage of buying the elements through the internet
and making use of international shipping.

image credit: Mike Lawrence

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