BUSINESS PLAN

1. THE BUSINESS PLAN SUMMARY.

 

  1. BUSINESS IDEA. Gamesnet

 

Multiple Player Gaming

Public Computer Access

Library and Resource Centre

Mobile Workshops

 

Providing :

 

NAME OF AUTHOR Andrew Graeme McMullen

HOME ADDRESS 35 Lateral Loop Beldon 6027 Western Australia.

POSTAL ADDRESS PO BOX 541 Hillarys 6923 Western Australia

 

PHONE NUMBER (09) 9402-8726

 

 

2. THE BUSINESS

2.1 TRADING NAME.

The intended business name Gamesnet acn- 0258039D

(trademark registered)

2.2 LEGAL STRUCTURE.

Currently Sole Proprietor –

Future Pty Ltd company - franchise

2.3 TYPE OF BUSINESS. for example:-manufacturing, wholesale distribution, retailing etc.

The business can be categorised in several ways and is too diverse to pigeonhole into a specific area.

It can be catagorisd into some of the following business types:

Retail: (the selling and renting of computer related products)

Education: Training and Support.

Public Access to computer products and technologies (try before you buy)

Entertainment: Multiple Player Games (club situation with competitions and prizes)

wholesale distribution: Gamesnet head office supplies gamesnet franchises with stock and equipment.

 

PREMISES.

CONSIDERATIONS:

PREFERRED LOCATIONS, LAYOUT OF FACILITIES, BUILDING SIZE AND CUSTOMER ACCESS

 

Gamesnet's first 2 test premises were located in Osborne Park and our 3rd and best was Craigie Plaza Shopping Centre

 Details of how and where these "test" stores were situated and laid out are contained in the link below.

(Osborne park and Craigie Test Stores)

 

Based on the research conducted we have found the ideal situation involves a head office that takes care of all gamesnet business and leaves the stores solely to look after the clients providing service above anything the computer industry has known.

The following link explains the role that head office plays and details how it should be structured.

HERE TO HEAD OFFICE

 

 

The shop should be located in an area that allows after hours access.

Adequate parking is necessary with easy customer access. Good pedestrian traffic is an especially attractive option.

The premises should also contain appropriate space for the following areas and facilities:

(Click links for more details)

Main Computer Room - approx 45 square metres, rectangular shape capable of seating 12 computers a printer and scanner comfortably, must have room for projector and central comfort/lounge sitting area.

Showroom area - this should provide entrance and include displays of products for sale and adequate window space.

Workshop area - located away from showroom for working on clients computers and gamesnet equipment.

Storage area - self contained storage area, suitabley lockable.

Dining area - must include food preparation area, and entertaining area.

Toilet facilities - male and Female

Bunk area - small bunk area for staff on all night sessions.

Sound Lighting, air-conditioning, electricity supply, three phase power, etc.-

In order to fully utilise the computer and projection equipment to best showcase the software and create the sought after atmosphere a good surround sound stereo is to be custom built to the computer room for best acoustic value.

The showroom and dining area is to have a good sound system and several TV’s screens and pPC monitors et up for showcasing looped promotional videos ,demos etc

Lighting in the computer area is to be via fluorescent black lights with additional fluorescent lights in the centre of the ceiling. The premises should be well lit in daylight hours by large windows suitable for shopfront displays. Fluoro lights are to be used for most lit areas with small down-lights in the workshop and a few key promotional areas.

Power should include several outlets located throughout the building as needed. Surge protection power boards must be used for computer equipment and UPS's (Uninteruptable power supply) used to provide computers and projection equipment with protection from blackouts, power spikes etc. 3-phase power is not applicable.

Temperature should be regulated using Climate control as Installed in the premises. An Air purifier and EMF regulator (electro magnetic field regulators) are to be added to the computer area to provide protection for the equipment and the users from the electro magnetic radiation, dust and airborne contaminants.

 

2.4.3 CONFORMITY TO SHOP AND FACTORY REGULATIONS AND OTHER STATE AND LOCAL GOVERNMENT AUTHORITIES.

Many different government departments were contacted during my research including the Dept. of Occupational Health and Safety, The Ministry of Fair Trading, the Wanneroo Shire Council, the Small Business Development Corp, the Association of Shareware Vendors, the Tax Dept, and many others. In conclusion I feel that our plans will conform to all and any State and Local Government rules and regulations. The Dept. of Occupational Health Safety and Welfare’s guidelines for the correct way to set up the computer work-stations so as to conform with the requirements including correct seating, desk height, computer placement etc will be used as a guide when designing the benches, choosing seating etc.

2.4.4 DETAILS OF EXPECTED LEASE AGREEMENTS.

-rent, period, conditions etc. (Approximate cost per store)

RENT $1000 per month

VARIABLE OVERHEADS $4000 per year

PERIOD 5 years

CONDITIONS DESIRED 6 months rent free setting up period.

2.4.5 ABILITY TO ACCESS TARGET MARKET.

-Discussion of the geographic advantages of the shop front’s locations and how this will enhance prospects of providing the services that the target market requires.

Location, Location, Location

The biggest advantage we can give our clients and ourselves is to be located in the heart of our target market. This means being located in an area amongst where people live and work who use computers or will use them in the future, which is almost any suburban area in Australia. The location must allow us to receive constant exposure to passer-bys and shoppers of the type who will have interest in our services. Shop fronts would be best suited in locations such as shopping centres amongst other shops such as Video stores, fast food outlets, Laundries, banks, children’s activity centres, cinemas, supermarkets and other types of entertainment facilities. The more passer-by’s the better. Locations close to nightclubs, taverns and restaurants would also complement our after hours trading. Schools, TAFE, universities and other learning or training facilities in the area would help with the promotion of community based training courses and workshops. This gives a lot of scope for different locations throughout the suburbs. Suburbs to consider should have a highly mixed demographic of school age children, young and old families, single and married couples. Suburbs should contain a good mix of people with Middle to high disposable income. Other things to consider include the quality and age of the suburb as far as telephone lines and communications networks are concerned.

SOME INTERESTING FACTS

A major advantage of being located in Western Australia is that WA is (according to the Australian Bureau of Statistics) the highest purchasers of mail order products in the country with the figures consistently growing. This may be due to the fact that much of the state is isolated from any major city centres. Australia is also the 5th highest Internet user in the world with more new users added daily than any other country in the world. Western Australia is growing faster than any other state in both computer and Internet use. It is also estimated that the Internet is growing at 20% per MONTH!

Communication requirements

Each store will require:

1 standard phone line for voice calls

1 standard phone line for fax machine

8 standard phone lines for the LAN to be connected to the Internet

1 standard phone line for The Client Computer permanently connected to the Gamesnet secure network

All Gamesnet shops and owner/operators are to be connected to the Gamesnet secure network

Because of the nature of the business much of the correspondence, sales and bookings are conducted using mail, Internet, phone and fax ordering methods.

Much of the correspondence and mail order transactions can be conducted by means of post, phone /fax and email with all correspondence going to the Gamesnet head office which handles all bookings, orders, advertising etc for all stores.

All advertising shall only feature one address, one phone number, one email address etc with the office redirecting everything to the appropriate stores as needed. All advertising will simply feature suburbs that the stores are in and there street locations.

The office acts as the main server to the Gamesnet network, which will advise all Gamesnet shops by keeping in constant communication with them using the main Gamesnet computer network.

The owner/operator of any shop will be set-up with a home computer in his place of residence with conferencing camera and computer also permanently connected to the Gamesnet secure network. This is to be used for communication and conferencing as well as video monitoring of store premises etc. For security and cost reasons it is also important that the owner/operator can live as close to the shop as possible.

Gamesnet WIDE AREA NETWORK

The Central office of Gamesnet contains a network server, this server is connected to a client computer in each store and downloads all of the stores transactions, bookings, orders,

each store houses a client computer permanently connected to the server.

The stores client computer is also a server for up to 4 workstations in the store . these 4 terminals are equipped with bar scanners for inputting sales and rentals to the system.

 

 

 

Once the Internet facilities are in place we can allow subscribers to remotely access our Computer network where they can download shareware directly to their home computers regardless of their location without requiring an Internet conection.

.

Training +Computer services.

The expanding Australian population and growing interest in computers and technologies open a floodgate of individuals who not only have an interest in computers but a need to learn about them. New software is released regularly forcing many individuals into a situation where they require ongoing support and training in order to keep up with their particular fields. The greatest segment of people needing training at this point in time calls for basic computer training such as how to turn a computer on. Another training area is advising clients on purchasing and upgrading computer components and entire systems for home and/or office needs, which must be, customised to the individuals needs. Due to the speed at which the technologies grow and the fluctuations in prices for components many people require ongoing assistance in keeping their computers and software current this again opens areas requiring ongoing customer training and support. With good networking used with schools, and other government and private organizations in local areas where stores are located we will be able to work closely with the community to provide our facilities for use by groups such as the unemployed and job seekers who could benefit from training facilities and schools who may not have the budget to keep up with current technologies. We will also network with training individuals and groups who can provide specialised computer training in a wide variety of fields from our facilities. Our test period in Osborne park and Craigie have shown a great deal of interest in basic computer courses for groups and one on one.

 

 

2.4.6 TRANSPORT – ORDERS, DELIVERIES AND PICKUPS.

Each store is provided with a delivery vehicle with all vehicles being the same make and model and sign written in the same Gamesnet style.

Each store will be responsible for customer deliveries and pickups in their designated catchment area.

The main office will organise store deliveries of stock, promotional items and other goods on a regular basis and handle all supplier pickups and deliveries to and from stores.

These transport needs are included in the budget projections.

  1. SECURITY ISSUES. INSURANCES REQUIRED AND OTHER RISK FACTORS TO BE CONSIDERED.

Each store requires an electrical policy that covers all of the computer and other electrical equipment with other provisions for stock and cash held in store or transit, Insurance needs for each store are to be handled by an independent broker with premiums funded by the main office. All stores also require public liability and workers compensation policies.

A monitored alarm system and closed circuit cameras are to be installed in each store. Each potential site will be assessed by head office before approved with security being a major factor in the decision making process.

Accident and sickness policies are required for all owner/operators and again is handled by head office

Gamesnet delivery vans will all require insurance again paid and handled by head office.

All insurance and security needs are included in the budget projections.

 

3 THE STATE OF THE INDUSTRY.

  1. IDENTIFY THE INDUSTRY IN, WHICH WE WILL OPERATE.

The Computer Industry and Information Technologies.

In particular- Computer Games and Internet

  1. CURRENT STATE OF THE INDUSTRY.

The current state of the computer and information technology industries is definitely one of massive amounts of growth and it appears that it has only just begun to expand. Computers are fast becoming as common as telephones, TV’s, stereo’s, ovens or any other household or office appliance. As previously mentioned the Internet is estimated to be growing at a rate of 20% per month and Australia has the 5th highest number of registered country domain names in the world (domain names ending in .au) this number is only topped by Canada, the USA, Britain and Germany.

Mail Order Internet and Direct marketing in general has become an accepted form of shopping by Australian consumers and the figures are steadily growing. Shareware is a form of software that is becoming more and more popular as people realise the massive savings that they can make by trying several different programs without having to pay out hundreds or thousands of dollars.

The home computer industry is still very much in it’s infancy and yet it is absolutely booming, New Products and technology including home self educational software are now using cutting edge technology to make learning as quick and easy as possible.

New magazines and lifestyle Televisions shows are appearing regularly reflecting the publics desire to take these technologies into their lives. The Computer games and entertainment market is by far the fastest growing area of the industry and ironically computer games demand the most expensive technologies and force growing massively and in many respects is a main driving force behind the growth of the Home computer market.

3.1.2 Describe your industry situation including information on manufacturing, sales segments and growth data.

Sources of information - your competition, Chamber of Commerce, Small Business Development Corp, Trade Suppliers, Wholesalers, Retailers, Shire Office, Associations, Media, Confederation of Industry, Bureau of Statistics, etc., etc.,

Methods such as mail order and direct marketing have gone through huge growth over the last 50 years and in particular the last 10- 20 years. The market research that I have conducted over the last 5 years has convinced me that this is probably the most rapidly expanding growth area in all retail and wholesale industries. The Internet has had a huge impact on direct marketing mothds and now must be a major consideration in the arsenal of any serious company marketing plan.

Over the period of my study I have held many interviews and conversations with various people who make their livings from the mail order and direct marketing industry on different scales- from small home operators to large corporations.

I also interviewed many people involved in network marketing, which is a sister industry to mail order circles, I often found that the people involved in mail order or direct marketing careers are also involved in some form of network marketing venture (Herbal Life, Amway, Omegatrend, Kombu Australia) I have noticed in the 2 past years an ever increasing number of network marketing and mail order publications on news stands along side of business magazines. This demonstrates that people are embracing the networking concept and many more people are now working from home. This in turn is creating more computer users who are turning to mail order and Internet marketing to do their trading and is uniting the 3 main areas that Gamesnet is all about (computers, Direct Marketing and networking) I interviewed people in both retail and wholesale areas as well as many who conduct successful business solely via computer, phone and mail order. I interviewed the publishers and editors of many major magazines and publications and was surprised to learn of the sheer volume of new publications becoming available and their rapidly expanding circulations. I have also included several interviews that I conducted with people in both retail and wholesale areas areas of the industry. Local computer shops are reporting massive growth as the technology becomes more affordable and accessible to the average Australian user. This kind of massive growth also causes the Industry to be extremely competitive in the retail and wholesale area, with very little profits to be made in straight hardware and software sales. For this reason we have chosen not to become a traditional retailer and seek to make any sales of Computer systems and products statically from customers who come in and use the products provided for use and rental from and in the store.

People from many organizations have been extremely helpful to me while conducting my market research, some organizations I approached and used should be mentioned .

they are listed here:-

 

 

3.2 TRENDS IN THE INDUSTRY.

LOCAL, REGIONAL, NATIONAL, OVERSEAS.

      1. Are local trends behind, equal to or ahead of those in other locations and in what manner? How can any of this information be used to improve our prospects?

 

Throughout my research I have found that many people are becoming more and more aware of the responsibility for their own education, health, finances and general well being. Health shops, new age shops, martial arts centres, gymnasiums, computer learning facilities and learning courses etc. are receiving record numbers of clients. Self help books, tapes, seminars and videos are selling out faster than the supply and now with the new mediums of CD and DVD disks, sales are rapidly rising. The general public’s interests and awareness of environmental issues, stress related problems, air, water and food quality, war and famine, financial, health, diet and exercise needs etc. is at the highest peak in history and shows no sign of decline. With all this in mind it is my belief that there is huge potential to tap into the flowing river of money now being circulated by these kinds of events in time all occurring together with a technology boom that supports it. While the public do what they can to deal with these problems and events computers are proving themselves to be the most efficient way of gathering and storing information dreamable and most consumers are becoming fully aware of this fact.

Computers are also the fastest and most economical way to educate people a medium of learning which also allows self education and I believe that self help products and software are still in their infancy especially with new technologies such as voice and mind activation, brain mind entrainment and direct retinal stimulation and many more software and hardware miracles now appearing on the horizon which offer people worlds of wonderment better such as .

The recent introductions and growth of the Internet, Pay TV, home shopping shows, electronic and phone banking etc into Australia and particularly WA. Continues to reflect the massively expanding markets that are only just beginning to be tapped. Based on this research, I see a real need for everything Gamesnet offers to the public. There is a definite need for private one-on-one and group training in areas such as basic computer and Internet training in order to understand the emerging technologies. This need is the seed of the idea for public access centres such as Gamesnet . Computers can be very frightening for a newbie when a approached alone, even when in a classroom environment many questions can still remain unasked and unanswered.

Local trends seem to be a bit behind in WA as it is so isolated from the east coast and the rest of the world. We are the last to receive the cable and satellite TV programs and the high speed telephone lines such as ISDN and t1 etc. however West Australians are quick to catch on and are fast catching up. This lag does not affect the prospects of a venture such as Gamesnet negatively. What it does in fact show is that newer, bigger and better opportunities are continuing to be opened up to us bringing with them the benefit of being able to study them in the rest of the world before they arrive here. The people of Australia are embracing new technologies faster than anywhere else in the world. Per head of capita we already have more home computers than any other country, including the United States, with the figure put at 3 in 5 family’s owning either a new or old computer and 4 in 5 businesses owning a computer. I have already established WA as the highest consumer of mail order goods in the country but it is interesting to know that we are also one of the highest consumers of computer related technologies in Australia. Australia is the 5th largest user of the Internet ahead of even Japan. With the introduction of the Internet WA is up there trading with all other states and countries in the expanding world of computer networking. The trading of goods via the Internet using air, land and sea postal systems is expanding as fast and in many cases faster than anywhere in the world. Information is being sold through every medium possible and target markets can now be directly and cheaply accessed in many countries around the world.

With this in mind I can only see Gamesnet’s prospects improving along with this growth by being based in Western Australia. It is my belief that computer technology is taking over the world and that almost every home in the free world will have a computer system and Internet access by the year 2005 just as they now currently have telephones. A Gamesnet store should be there in every suburb to serve the growing markets needs!!

  1. SEASONAL INFLUENCES

Comments on any seasonal influences on our market. Sources of information -as 3.1

The seasonal influences for our market simply do not have any bearing on the ability to access the target markets as far as the sale of goods go. We can target advertising to different geographical areas at different times to generate sales.

Using the Internet we can go anywhere in the world and place advertising in local magazines and/or newspapers or Tv and radio in any major country chosen. In regards to Internet trading, seasons are different all over the world and this should have no impact on "cyberspace". In the winter we can market the value of staying indoors with "the learning machine". Learn a new language in preparation for summer holidays, or improve other areas of interest such as expanding vocabulary or teaching kids to read and write etc.

Stores local advertising can advertise computer and Internet training for a worthwhile way to beat the winter blues. Winter will also see more people staying at their computers for leisure and I would expect sales of games and recreational programs and Internet access to rise. As well as offering clients tutoring from our stores. Our computers are setup for multiple player gameing and we will encourage different events and competitions to take place at our centers using the latest in computer technologies. Other events not effected by season include video conferencing, Introductory computer classes, Video and sound editing classes and various other workshops etc.

In festive times of the year such as Christmas we will market educational CD Roms, shareware and the "gift of knowledge". Each time of the year brings with it different opportunities to tap into new and varied markets in various locations around the country and world that all cross link with each other, all of the seasons are occurring at one time in different countries. So testing can be done all year round.

4. PRODUCT OR SERVICE

4.1 DESCRIBE OR LISTOUR MAIN PRODUCTS AND/OR SERVICES.

1) INSERT APROPRIATE INFORMATION ON WHAT GAMESNET OFFERS

 

4.2 list possible alternative product(s) service(s)

Other related technologies will be investigated for use in training.. Once shop is established we will have the opportunity to stock and sell a carefully selected range of software that is appropriate to learning (tuition software, music software, language programs etc)

Zygons Learning Machine.

The Learning Machine is a device that includes a light shield (goggles) and headphones that you wear on your head. It is plugged into a CD player and the software (CD’s) is inserted into the player. The CD’s have digital signals that are decoded by the headset and cannot be used with normal speakers, this signal causes led lights in the goggles to flash in sequence to music, voice and sound in the headphones, at the same time certain sound frequency’s are sent to each ear which trick the left and right hemispheres of the brain into synchronising and also allows the frequency of the brain waves to be moved into the desired frequency range for the program you are using whether that be one that requires you to be in a deep meditative state resembling sleep or an alert and focused state of mind. The light and sound matrix which is produced stimulates your mind and opens your learning centers and allows the user to move through different brain wave states (such as alpha, beta and theta ) usually associated with deep meditation and sleep while remaining fully conscious. When in these states your level of retention and recall is dramatically increased giving these courses a great advantage over traditional learning methods. The learning machine comes with 20 CD’s to start including a beginners language course, motivational programs (stop smoking, eliminate procrastination, permanent weight loss etc.) speed reading, increased memory, meditation, stories and much more. There are hundreds of programs with a broad variety of topics ranging throughout all ages preschool and above( please see brochure in appendix A for a full description of programs available. It is currently being readapted to incorporate CD ROM Technology. Recent news is that the Zygon Company has had some trouble related to making exaggerated claims and may be stopping production. As we speak there are companies all over the world developing similar technologies and this is only going to grow. If Zygon is found to have stopped production then alternatives abound. These technologies are ideally suited to the environment a learning facility as proposed.

 

Business Promotion

Plans are also in motion to provide a service to clients who need help in their own business promotion. We will help with multimedia development and direct mail and mail order advertising design and placement. This would include all aspects of promoting either a service or a product in any advertising media. The computer equipment in store will allow us to design and create any form of advertising material from a small leaflet and labels to a full scale television commercial. Using multimedia design programs, desktop publishing and the Internet we can promote practically anything from a ball-point pen to a rock and roll band. All of this can be done on any level whether clients want a simple business card, stickers or small mail outs designed and distributed . Or if they want a complete full scale advertising campaign including radio and TV. We can use our many contacts in many industries and are confident that we could handle any promotional work on any scale.

 

.Some of the possibilities include -

 

 

Gamesnet will also provide services to the general public where they can have personalised cards, stickers, posters, letterheads etc and other things that the technology can do dne. They can have photographs and home videos edited and presented in any way imaginable eg. animation’s, morphing or 3d rendering etc. we will have 1 employee at head office who handles all of this type of work.who handles

With the networked computers and growth centre in place the facilities will be set up to allow the public to access the equipment at an hourly rate and to create their own projects. I can put together computer software on disk or CD ROM at the request of clients that contains programs aimed at a specific target group. Clients can then use this software for promoting their business or retail it with up to 400% markup. Also approachable is the Education Department about creating affordable shareware that can be used by schools for fundraising activities instead of the traditional usage of lollies and sweets. I feel that there is a huge market in this area.

Portable Promotions Unit

As the Outer Suburbs are rapidly growing we are ideally situated in time and location for providing information and communication needs including training and support to the expanding population. Gamesnet will require ongoing marketing to take our stores to the public and as part of that strategy a Portable Promotions Unit is to be built.

This Portable Unit will house 6 computer stations 2 along each length and one at front and back

4 computers are to feature a multiple player game running for people to enter into with one computer featuring our entire website located on its hard drive containing multimedia presentations and information on Gamesnet and all of our shareware and patches can be downloaded from here this computer will be free to navigate but punters must pay for downloading and blank disks. A 6th computer located at the back of the unit will process all sales etc

 

The unit will be taken around to different locations including fairs, trade shows, shopping centres, and schools

A trained attendant will be with the unit at all times for people to query and take new memberships, bookings and orders.

The unit is a secure trailer with encased computers set up for best possible presentation, ease of use and transportation.

As well as promotional material the unit shall carry a small amount of stock and consumables, which can be sold on location.

 

 

 

 

 

 

4.3 Competitive Advantage of product(s) service(s)

GAMEsNET Multiple Player Games Centre

The competitive advantage here is the uniqueness of the facility as there is nothing like it currently available in Western Australia and also the way that it fits neatly together with all other aspects of our business. The closest thing available in competition is the Internet Cafés, such as the one located in Fremantle. However we will be providing a great deal more than Internet access and coffee. The network computers will provide a base to start building from which will lead to the possibility of franchising in the future. Another advantage is that the facilities will be available for group classes, courses, etc and also to individuals who simply require access to a computer to perform a task.

INTERNET ACCESS

The competitive advantage we have here is that we will be providing the Internet service to our clients via Netway

This allows us to assist the customer with all problems and training etc without the responsibility of looking after all of the equipment to set ourselves up as an ISP. This allows for a more personalised service and better connection. Our prices are $30.00 per month connection and $30.00 setup fee and this is very competitive in the current market place. The beauty of reselling in this way is that we receive a continuing royalty of $5.00 per month from Netway for each customer that remains with us and each customer is also a potential customer for any of our other services.

Shareware

The concepts we are employing for shareware distribution draw from all areas of direct marketing and mail order and are combined with network marketing and Internet marketing concepts. I have then used current computer technologies to come up with concepts that I believe are truly unique. I have been overwhelmed by the interest that was generated by a couple of classified adds for free software that I ran during my market research. The end results was that people really do want a service like the one I am proposing for the shareware, magazine, Internet training etc. and as yet there is nothing like it around that incorporates the lot in as unique and user friendly a format. I believe that the ‘Shareware products’ are special and unique because they give people something for nothing and everybody loves the word FREE which is how I intend to market the Shareware. What is also unique about it is that I can obtain the latest in offerings for very little cost to myself. The competitive advantage that I have over other shareware vendors is the approach I am taking to distribution, and the fact that most vendors sell one program per disk and many charge up to $10.00 per disk and put a minimum order of x amount of disks. Also I have noticed that most vendors use traditional methods of advertising and promotion where they simply advertise in a specific place week after week such as the same computer magazines. I intend to sell specific products aimed at specific target groups by advertising in publications that are appropriate to that group i.e. golf games and programs in golf magazines ( FREE GOLF SOFTWARE) and horse racing betting systems in the racing form of local national and international newspapers (FREE GAMBLING SOFTWARE) business shareware in business magazines, new age software in new age magazines, health software in health related magazines, etc. The concept of approaching schools with various shareware packages to offer students and parents (particularly educational and reference software) and to work with them in promoting our magazine will give us a great advantage in distribution. The Idea of offering $1.00 from each sale towards participating schools for the purchase of computer equipment and $1.00 from each sale towards telethon should provide us with another advantage as will placing a box of shareware disks on the counter of retailers throughout various industries across the state. Shareware can also be created for specific events, for example - when a popular band is coming to a city we can make a disk with pictures, screen-savers, sounds etc and market them in music magazines such as the EXPRESS MAGAZINE. Or when big events such as the Olympics come. There are endless opportunities and possibilities for promoting related shareware.

Once we get an inquiry from any source I then place them in my database and send them the first information package which contains an order form of 20 various shareware disks, a letter of introduction, and information on any special deals that we have going. These people are also potential readers of the magazine and potential buyers of the Learning Machine and customers for the Internet access and Growth Centre etc. Rather than give a catalogue of all programs available (as many vendors do) which burden the customer with hundreds or even thousands of programs to choose from, I have found it is best to offer a limited number of packaged shareware disks (I have 20 on the first order form sent in the enquiry pack ) and then to send an updated order form (in the form of the newsletter) with further packages and any special event shareware that is currently applicable (such as Christmas related software at Christmas) with their first order. In order to keep customers continually using our services we keep in contact with them by sending them a fresh newsletter each month this will save us from having to go back through the database and sending out letters trying to entice customers to make further purchases. This keeps the customer interested in what new packages we are putting together and promotes repeat ordering.

A unique service is also provided whereby we track down requested programs on behalf of customers. For instance some programs I have already attended to for clients are - a program that can design random bingo cards, a program for quoting on fleet vehicle repairs, Vietnamese language software, information on Egypt and specific games that have been requested. This same service can be offered to charities, schools, clubs etc for fundraising ventures. They can bulk purchase disks for as little as $2.50 each and have them labelled with their details and sell them for $5.00 or $10.00 making a substantial profit. We could help fulfil their needs in marketing and promotion as well.

All of this is on top of Internet advertising and general advertising in newspapers, magazines etc. and of course direct mail to mailing lists which I will obtain from mailing list vendors such as a contact I have in South Australia ( Mal. P. Bailey) who offers a wide range of lists and he handles the printing and mailing for a set cost that is lower than the cost of a postage stamp (per mail out).

 

MAGAZINE

Currently there is no support in WA for computer users in the form of a regular publication aimed at new users. If you take a look at the computer section in any Newsagency you will see that it is the largest stand devoted to one particular subject area. You will also see that 80% of the publications are from overseas countries such as the UK and USA and that the Australian Publications are all from the Eastern states. A further breakdown will reveal that many of the magazines available are purely games related or Internet related while others are aimed at the business users or programmers. This leaves many people having to purchase several different magazines in order to fulfil their need or hunger for information specific to their requirements. Because the magazines are imported they have many additional expenses to cover and therefore the average prices range from $8.00 - $30.00 for a magazine and disk. The Money being spent on magazines from other countries and states goes to those places and leaves WA forever. The fact that these overseas and interstate magazines are continuing to be sold every month and that often they are sold out when I go to get them reflects the fact that it is profitable for overseas and interstate publishers to supply WA with there magazines. This also means that there is a market for computer-related magazines and information that is being dominated by outside players. A large amount of money is also generated by mail order sales in these magazines all of which is leaving our state and offering no support to our own economy or computer industries. Our magazine will be WA owned and run and we will push the WA theme in all marketing and promotional activities urging the support of our own computer industries and economy. Products and services advertised and reviewed will all be locally available at the prices given and the date on the magazine will match the date on your calendar (many interstate and overseas mags arrive here months later which voids the competitions and specials offered in them). Also the classified section in our magazine will be full of ads from Western Australians so readers can be sure that they can actually get to the buyers and sellers. I want to help get some of the money that is being spent on overseas and interstate magazines and sent overseas for mail order software and products that could have been purchased here in WA spent in WA.

Our own Western Australian computer industry has a lot to offer and I feel it is time that something was done to help keep the money spent on these magazines circulating here in WA instead of overseas or interstate. I feel that the opportunity to create this magazine in conjunction with "GAMEsNET" and to network with WA computer related businesses will provide a great deal of support for and from both consumers advertisers and retailers that this will give us a huge advantage over the overseas and interstate competition.

We are looking for local industry, public and government support and need help in developing the magazine and GAMEsNET so that local readers are offered much more than overseas and interstate magazines can possibly offer. When we do gain the support of local computer shops, software developers, advertisers, readers and applicable WA government departments including the Education Department then we can network with them all to produce and provide more than just a magazine full of information and free software. We will be providing a fully functioning support system for both product providers and consumers, which will provide valuable resources to any W.A computer user.

When the magazine is looked at in the light of all factors that make up the totality of Amac Enterprises and GAMEsNET. We can see that it is a unique and exciting concept that is born out of a desire to help inform and educate. We aim to provide Western Australian computer users with a magazine that is entertaining and informative and gives readers and the local community a support network devoted to their Computer and Internet needs.

PUBLIC ACCESS CONSOLES

The public access Internet consoles are unique and not yet available and will have a high novelty value for the Internet expert or the unfamiliar. The high powered computer used and the speedy connections will give these machines a much faster way of accessing the Internet than the average home user. They will also be strategically placed in positions that they will be suited for. The public can use video conferencing from them to connect with other computers suitably equipped with software and hardware (videophones) anywhere in the world. The competitive advantage here is that it is totally new and unique and when combined with the other facets of the whole business will promote our entire services and goods. The initial screens can be set up as we want them, we can also control exactly what is able to be accessed on the consoles and make sure that paying advertisers pages can be accessed by any customer.

 

 

4.4 Development or Design of Product(s) Service(s)

If your product is not ready to market describe the work required and estimate the time and cost involved to bring it to the marketable state.

Every thing is ready to be marketed for GAMEsNET

SHAREWARE

Some development is still needed on our range of shareware Cdrom's. The cost is minimal as it involves only our time. All programs have been sorted and compiled onto Cdrom's and we have only to create the Web page style interface for the client to view the disks..

MAGAZINE

The groundwork is all done for the magazine however it will not be started until the shop is established and running smoothly.

.

THE INTERNET

Every thing is already established for our Internet services.

5 MARKET

5.1 Customer Profile

GAMEsNET

Age 10 to aged

Gender Male & female

Income level All income levels

Locality Northern Suburbs

Groups. Computer users, sales groups, training centers, school groups, students, Clubs, Organisations, individuals

Retail items

Age 15 to aged

Gender Male & female

Income level All income levels

Locality the Northern suburbs.

Groups. All groups

 

Internet services

Age 20 +

Gender Male & female

Income level All income levels

Locality Northern suburbs

Computer game facilities eg-(timezone) schools, large libraries etc

Groups. Computer users, sales groups, training centers, school groups, students, Clubs, Organisations, individuals

 

5.1.1 Customer Buying Motives

 

5.2 MARKET SIZE.

5.2.1 Potential Customer Trading Area.

The geographical boundaries of our trading area for software sales are non existent. I can reach all areas of Australia or the world in regards to the marketing of the shareware and magazine. Potential customers could come from anywhere.

The shop should attract customers from all corners of the northern suburbs.

5.2.2 How Much Will Each Customer Buy.

Internet

The potential number of total customers are only limited by the amount of reach the advertising and direct marketing strategies have. With all that has already been discussed on the methods I will employ I make an initial estimate of new Internet customers to be around 15 per month with a total of 150 connected by the end of the year.

GAMEsNET

The multi-player games sessions have been attracting the same groups back on a regular basis with one group coming in twice per month. I expect a regular clientele of weekly ‘gamer’s’ as well as many one timers. Most game players come back on a regular basis. The centre should attract regular visitors as well as curiosity visits with a mixture of newcomers and regulars for various activities. I have estimated in the sales mix an average of 180 computer hours per month at $5.00 per hour. With the average user coming back at least 3-4 times per year

Mail Order and Retail Sales

As far as retail sales on hardware and software go I expect 60% of customers to at leat come back once with the many becoming repeat customers. It has been my experience in our Osborne park store that generally if you offer good prompt service then customers almost become dependant upon us.

During my market research and testing with the shareware, people would generally spend $15.00 - $20.00 (5 or 6 disks)on their first purchase. During one period of testing I received 96 replies from 3 separate classified advertisements that ran over a few days at a time. From this I received 25 orders. I also had 8 people order a second lot of disks and 5 people have ordered a third time. This was an excellent result for a tiny classified add and I expect to see hundreds of replies from a display add generating thousands of dollars in both shareware and commercial software and hardware sales. Also the magazine will be a vehicle for the shareware and as the circulation of the magazine expands so too will sales of shareware.

Research has shown that each customer will purchase an average of 5-6 disks in each order and that 15% of those customers will reorder within the next 2 weeks. This all tells me that many customers will be repeat customers and I expect to sell approx. 25 disks on average to those repeat customers throughout the course of a year.

 

5.2.3 GROWTH POTENTIAL

6) Public Access Internet Consoles

Once we have established the business and created a cashflow that allows us to expand we are then able to begin implementing the Public Access Internet Consoles. We will be in a position to connect the consoles to the Internet at speeds that far exceed the normal speed of the average home computer and will simply need to find suitable locations to put them in. Some ideal locations include schools and universities, libraries, airports, shopping centres, large banking facilities, business centres, government departments, travelling trade shows, amusement centres (Timezone) etc. Public access computer terminals in the style of automatic tellers, phone boxes and vending machines could be set up in strategic places on a map which forms a web style network across a city and eventually grows out to the fringes so that every one has one a short distance from them. We will set up people who look after a particular area in various strategical points (starting with the most densely populated areas such as capital cities) and spin a web starting with just a few machines in central areas and then gradually and steadily expand and literally spin the web to cover an entire map of a given area. If we can establish several such webs in different cities and areas we would soon build up a large network of machines with the potential of becoming the Mc Donald’s of "Cyberspace". Payment for using the consoles can be made with efpos or credit cards.

Alternatively the console could have a coin slot on it or deduct payment directly from your bank account.

These Public Access Internet Consoles will allow people to access information at an instant at any time of the day or night pretty much like bank auto tellers currently allow us access to cash at any time of the day or night, only at an auto teller combined with a public access computer terminal you can not only do your banking, but check the days news or stock prices and transfer your finances between different accounts depending on that daily news or you could transfer funds from an account in order to pay bills or even place bets at horse and /or dog races any where in the world. Shopping could be done from the terminals over the Internet allowing you to shop at any places located anywhere on the planet.

As well as the financial side of things people could make Internet phone calls to computers any where in the world for the cost of a local call complete with a video display of the person you are talking to. Internet access from the consoles will allow users to see what is happening with a favourite sport, hobby or news event. Download information, software, news etc and then send that information to their home computer by Email. Email can be sent and received from the consoles to any computer with a modem. Information that can be transmitted by Email is any form of multimedia such as video, sound or text and images including photos, job resumes, family videos, etc all can be sent to a computer station anywhere in the world in an instant. The possibilities are endless.

I predict that the market for the shareware and our magazine will grow rather rapidly as computer technology is still relatively new and confusing to most people. With the great fluctuations in prices for these technologies in the retail sector there is a definite need for a service such as the one we propose (for both consumers and supplier/service providers) technologies such as the learning machine are also largely unknown here in Australia. I believe that as consumers become aware of these products their interest will grow. I also believe word of mouth will spread rather rapidly. My market research on these products and services has given me a great deal of confidence as people have shown a lot of interest in them. Growth of our Internet customers is also something that I believe has great potential as the Internet is said to be growing by 20% per month. All the various aspects of the business are designed to support each other so any growth in one area will support all other areas and also it will support the growth of any business networking with us.

I plan to expand our advertising and marketing strategies as sales grow. We will eventually employ a sales person to attend trade fairs, shopping center display’s, etc. and to promote our products and services using their own means with the view of building up a marketing team to work on it full time.

Once we have established credibility in the industry we will approach suppliers about supplying demo models of their products for display in our premises. The sales team will be required to approach schools, clubs, business etc. and to set up a party plan type of arrangement for the promotion of new games and educational software. I have many ideas on how to create expanding sales in our future years of business including franchising the GAMEsNET stores and opening a large main store. This main shop will import all computer products direct from the manufactures and supply the franchises with all equipment for display and sale as well as many new products as the become available. These centres will allow people to come and try the latest technology in computer products for entertainment, education, business or any other purpose without any pressure from sales people. We will provide classroom training as well as one on one tuition. Facilities will be set up so that people can play multiple player games and participate in video conferencing and all manner of various Internet and computer activities using the very fastest and latest equipment and technology available to the home user. The main Idea is to allow people to spend an hour or a day playing with the latest in software and equipment. This way they can make better-informed purchases and so that they can really see the true potential of a well put together computer system .It will also be a great day out for the family. I hope to have large and small computer companies make their services and products available for evaluation by customers.

Other areas to expand into will come as we grow. One will be creating multimedia productions for the Internet and Cdroms etc for clients to promote their services. I believe there is huge room for growth especially once all the key players are all working together like a well oiled machine and the creativity juices really start to flow.

5.3 COMPETITION

5.3.1 Competing Products or services

It is my goal to work with and not against what would traditionally be considered competitors. Those that may be considered competitors are other shareware vendors and computer magazines and retail computer shops and services. I intend to hunt down and network with retailers and wholesalers of computer equipment and services and find the best amongst them in both service and price. I then intend to work with them in promoting their products and services to our members and customers who are within their target groups in return for reduced prices of software and hardware for our members and our shop.

 

Competing shareware vendors are for the most part overpriced and tend to use traditional methods of advertising and promotion. they also generally only offer one program per disk and are very impersonal. Computer magazines abound and are for the most part from the UK and the USA. those magazines that are from Australia are all Eastern States publications and are generally of mid to high quality. Of these magazines most are either specifically games or business orientated or revolve completely around the Internet, and most assume the reader has some background with computers. However there does not seem to be a magazine such as what wee have in mind that features shareware and information aimed at a broad cross section of new computer users in a specific location.

Public access computer terminals at this stage have no competition as they are a totally new and unique concept as is GAMEsNET.

  1. List your 3 main competitors.

Retailers

Harvey Norman's

Peter Lingley Enterprises

High Tech World

Internet providers

Wantree

Space.net

IInet

Shareware

I have collected price lists and catalogues from the following shareware vendors

Spearwood Shareware service (09) 434 3416

(one program per disc from 50c - $10.00)

Micro Magic box 598 Nedlands WA 6009 Ph 389 1729

(provide programs one per disk priced

from 50c - $10.00)

Budgetware PO box 496 Newtown NSW 2042

(they charge $10.00 per disk with one program per disk)

Magazines

I have studied the prices and content of many magazines

some magazines are listed

Magazine Price Where from Cover Disk Quality Content Advertising Content

PC Review $14.95 UK CD high mainly games average amount

PC User $ 6.95 NSW CD good mixed variety average amount

Personal Computer World $11.25 UK CD fair business over cluttered

Australian Communications $5.50 NSW none average business average

CD rom Today $14.95 UK CD high multimedia &games average

PC powerplay $8.95 NSW CD high games a little high

PC powerplay $9.95 UK CD average games average

PC Player $8.95 UK CD average games a little high

6 MARKETING STRATEGY.

6.1 ( List of markets being targeted in your order of preference

including your marketing effort as a % allocated to each. )

the market I am attempting to tap consists of many various categories but basically covers all existing and potential computer users. The expanding growth of this technology suggests that this will soon include nearly everyone in the free world. Many of those that do not own a computer have access to one through school, university, work, friends or family The computer is fast becoming a necessary item in any home or business so the market is constantly expanding. Due to the speed that the technology advances and changes customers are always thinking of upgrades, additional software, hardware and peripheral options and information and training on the new technology and products.

Within this command group are many different sub groups:

For example we can advertise music software and products to music schools, teachers and students. or we can put specific sports programs and games in corresponding sporting magazines and shops. At trade fairs, expos, shows etc we can display software appropriate to the theme of the fair or show. We can advertise new age programs in new age magazines, market health and fitness programs to gyms, sports clubs and fitness centers, provide accountants with accounting packages to supply their clients etc. etc. All advertising will support the other areas, for instance we will advertise all of our services within our Website and magazine. Adds and links in various magazines and other web sites will bring customers to our site via their vocations or interests.

Each shareware disk will contain a read me file containing details of all our goods and services, prices etc we will be selling the shareware and magazines from the premises where the networked computers are set up.

6.1.1 MARKET RESEARCH

As discussed throughout the business plan we have done a lot of market research over a 3 year period.

The research started with going to see many different organisations, some of which are :-

The Chamber of Commerce, Small Business Development Corp, Association of Shareware Professionals, Magazine Distribution agency’s inc Gordon and Gotch etc, various mail order firms, Australia Post representatives, Wanneroo Shire Council, NEIS contacts, The Australian Institute of Learning, the bureau of statistics, Joblink, the Department of training, CES and many more.

I Have interviewed people from the computer industry particularly the Internet and people who offer training in various computer related fields, I also showed people information on new technologies such as the learning machine and found a great deal of interest was generated. We have also extensively searched the Internet.

During all the interviews conducted and the phone conversations I never once felt like the areas that I am interested in will be tough to break into or that there are any major draw backs to be aware of. Everyone involved in these industry areas was experiencing growth and was optimistic of the future.

Those that I interviewed as potential customers etc.. and those that were in my target market group also showed a lot of interest in what I was proposing. The market testing that I conducted for the shareware took the form of taking out several small classified advertisements in the Sunday Times and West Australian newspapers which I ran for 3 x 3week periods. Ads were also placed in the Computer Trader which is a national publication that provides free computer classifieds. The community newspaper was also used with focus on the Wanneroo Times, Stirling Times, the Guardian and the Joondalup Times. I also did a postal drops of fliers in PO boxes at the Hillarys and Wangara post offices.

From this advertising I received a total of 305 enquires and 109 orders for disks. 25 of these customers became repeat customers who ordered a second lot of disks. 8 customers ordered a third time and 4 have made several orders since. Most customers generally took up the offer of buying 5 disks and getting the free plastic container, which showed that most people will order an average of 5 disks per order, although many also ordered just the sample disk. I received several orders from people with requests for a particular type of program which then led me to offer that as a service (hunting down requested software)

The interest and response from these small ads and the few fliers that I put out showed me that there is a definite market to be tapped. I found that the best response came from the Sunday Times and that the Australian Computer trader was the greatest value (as the adds are free) The West Australian had a good response rate but was not as good as I would like. The Community Newspaper was a dead responder with only 10 responses in total. I believe that classified advertising is a good place to test however display advertising will prove to be a lot better. I also believe that the response rate from display advertising will bring a healthy turnover of orders for the shareware and commercial software sales.

Interviews conducted on the quality and style of computer magazines available showed me that generally it is believed that the computer magazines available are mostly targeted towards games and the Internet and are technically "over many people's heads". People seemed to want a magazine that is aimed at all areas of computers and is targeted towards the whole family rather than just the kids or dad. They also seemed to like the idea of having free classifieds and being able to get free software on a cover disk and to access shareware via the Internet. It was also obvious that a wholly owned Western Australian magazine would be purchased before an international or Eastern States publication.

Enclosed in appendix A is a copy of the original market research survey that I sent out, both in it’s entire and condensed formats. I have also included photocopies of two actual returned survey’s and the order forms that followed. Both of the customers are aware that their survey’s are being used and both responded from classified advertising in the Australian Computer Trader. The survey lets me know each persons buying habits for software and hardware as well as the equipment that they have. I can then send them information and services that are applicable to their individual needs. I also have figures that can be used to show computer related shops and services demographics of customers etc concerning club memberships, magazine readership, etc (A survey will be published in the magazines first issue) Also in appendix A are transcripts of some interviews conducted with various people from mail order and direct marketing fields, computer shops , learning facilities, Aust Post, Internet professionals and others.

By far the Greatest Market research that we have conducted has been the setting up of a shop in Osborne Park. Originally we have gone exclusively under the name of Amac Enterprises but our research soon showed us that we needed a name that invokes a certain image and we have ended up with GAMEsNET. Over the past year we have struggled mainly through trial and error to build a format for the GAMEsNET concept. We have had many customers come in who gave us their ideas and input on how we could better serve them and what would attract them to our a store such as ours. Most players have become regular customers however it has been exceed that our location is a big factor in holding people back from coming in. Customers who have been informed of our move to Craigie have expressed excitement and have given us encouragement and support that gives us confidence that by moving the shop to Craigie we will see a much greater flow of players and therefore more sales and profits.

  1. MARKET ENTRY.

( Explain your planned action in the first 4 weeks of operation to achieve projected sales. Further explain the steps you will take over the next eight weeks to achieve sales projections )

An initial marketing campaign has been designed for the 4 week lead up to opening our doors. Following is the strategy that we will employ in order to create an awareness of GAMEsNET and our other services. The campaign is split into 5 stages. The first 4 stages are for the lead up to Opening and the 5th stage is a continuation that will remain over subsequent weeks.

Stage 1 (to be completed in 1st week)

Stage 2

 

Stage 3

Stage 4

Stage 5