Executive Summary
Virtual Realities will provide access to the budding industry of Virtual Reality to the masses. With the onset of new technologies the VR market is ready to explode on to the scene. New technologies can often have barriers of entry to the individual and this company aims to capitilize on the new demands. We will provide (1) Affordable access to otherwise too expensive VR technologies (2) Provide a first of its kind center for the VR gaming community to rally around (3) Provide the unique experience of being able to have a large number of VR sets in use simultaenously and cooperatively (4) Spearfront the VR tournament gaming scene by offering the first center for teams of users to compete in VR (5) Double as an internet cafe by allowing PC terminals to be used seperately from the VR sets (6) Cater to all ages and types of player from children to the elderly (7) Offer educational workshops and classes taught in VR
This business is looking to obtain complete financing in the amount of $60,000. The financing will be used to secure an operating space, make necessary modifications to the space, and to cover the first year of operating expenses.
Virtual Realities will be incorporated as an LLC corporation. This will protect any outside investors and the owner [NAME] from liability in excess of their investment.
Financing from investments as well as benefits offered by the Washington State Small Business Association will enable Virtual Realities to operate for its first year. The investments will be used to create a modern environment that is suitable for both the gaming and professional crowd that is advantageous to gameplay through glare reduction while also creating a space where spectators can enjoy viewing from the sidelines. Successful marketing towards the tournament and community players will create a strong local userbase to carry operations in to the second year.

1.1 Objectives
Virtual Realitie's objectives for the first three years of operation include:
	The creation of a modern gaming environment that provides a unique catering towards community and tournament players
	Providing affordable access to revolutionary new virtual reality technology as it comes to market
	Bring new VR technologies in as they come to test their feasibility to mass appeal
	Become a developer of VR games to use in-store
	Offer branded items for customers to purchase at retail
	Partner with schools and businesses to offer exclusive access to VR headsets for use in private education sessions/classes

1.2 Keys to Success
The keys to the continued success of Virtual Realities are:
	Spearheading the tournament and community efforts behind brand new VR technologies
	Creating an all-encompassing environment that caters to a variety of gamers and patrons
	Providing a safe and enjoyable place for people to come in off the street and plan ahead on coming to.
	Reach out to local businesses to offer our unique services

1.3 Mission
As virtual reality technologies are just beginning to emerge people may be hesitant to spend the money required to have the full VR experience. With the space required it is also unfeasible to have a large number of these in use simultaeneously which limits the ability to share your experience with friends. We are looking to provide a unique space for people to come together and have a place to share their experiences in VR.

1.4 Risks
As with any business Virtual Realities has risks like:
	Will there be a demand for the services offered?
	Will VR continue in popularity or will it decline?
	Will the cost of VR stay out of reach for the majority?
	Will people pay for the service?



Company Summary
Virtual Realities, to be located in Renton will offer affordable and easy access to the VR technology the HTC Vive. We will provide access to a variety of specially developed games as well as general PC access and market ourselves on the unique ability to house multiple VR units.
Virtual Realities, while hoping to acquire the more serious side of the VR community will also cater to every type interested in trying. Along with individuals, the company can also cater to businesses or colleges looking to use the location for educational purposes.

2.1 Company Ownership
Virtual Realities will be a privately held Washington Limited Liability Coproation. [NAME], founder will be the majority owner. Outside investors will hold minority stock positions.

2.2 Start-up Summary
Virtual Realities' start-up costs will cover the equipment required to get users online, site acquisiton and modification, and capital to cover the first year.
The VR technology and associated PCs will be the highest cost as well as the internet infrastructure required to ensure seamless play. This will include the VR headsets, the associated PCs, and the proper routers required for internet access. Additional costs will be made for a POS PC as well as a Printer/Scanner.
Additional costs will include a variety of TVs to display the activities of active users to any spectators or non-participants.
Costs associated with the design of a company logo and the creation of associated apparel.
The commercial space will require renovations to fully accomodate the VR headsets. A single figure will be used to cover all renovations required for PC access and internet infrastructure.
Expense Details
	Technology
		10x HTC Vive = $10,000
		10x VR Computer = $17,000
		1x POS Computer = $1,000
		1x 60" TV = $900
		1x 16-port switch = $85
		1x Stereo system = $100
		1x Security system = $450
		1x Printer/Scanner = $300
		15x Ethernet/HDMI Cable = $500
		Software = $2,000
	Furniture
		10x Heavy Duty plastic chair = $500
		3x Bekant Conference table = $2,600
		1x Sofa + Love Seats = $1,800
		1x Entertainment center = $220
		1x Coffee table = $150
		1x Blackout curtains = $100
		2x Large white board = $140
	Office
		1x Cash drawer = $50
		1x Office safe = $200
		1x Misc supplies = $200
		1x Legal fees = $500
		1x Consultants = $1,000
	Other
		Internet Access = $800
		Rent = $2,125
		Insurance = $700
		Advertising = $1,000
	Total Expenses = $44,420

	Start-Up Assets

	Cash Required = $44,420


2.3 Company Locations and Facilities
There are various sites available in Renton that would be suitable for the business.
	Close to large metropolitan areas
	Close to public transit hub
	Close to multiple freeways (I5, I405)
	Access to variety of available demographics
	Low cost
These qualities combined will help create a steady and reliable flow of customers both regular and walk-in.

Services
Virtual Realities will provide a multitude of services and is capable of catering to a large variety of audiences. Providing multiplayer access to VR games, opening the facilities to local universities and businesses for group education, hosting VR art classes, and providing a high-tech location for youth to congregate.
3.1 Competitive Comparison
Virtual Realities has the benefit of being the first of its kind in the world due to emerging technologies. Large-scale VR offerings are not yet available due to the lack of product and we look to capitalize on that open market.

3.2 Service Description
Virtual Realities will offer access to high-end PCs in order to partake in a variety of services as they desire.
	Access to VR gaming with multiple users
	Access to normal PC activities
	Sitting area for non-participants and spectators
	Private rental of facilities for educational/corporate parties
	Host tournaments and events around new and upcoming VR titles
Virtual Realities will aim to become a local center for VR gaming and tournament play. Other applications exist besides gaming. VR art programs will allow us to host special art classes taught by local artists, or to partner with local retirment or elderly homes to bring VR experiences to those who may need entertainment the most. By creating a strong base of users we hope to become a place where people can meet and participate in activities in a social setting.
3.3 Fulfillment
Virtual Realities will obtain internet access and support through local ISP Startouch Wireless who will provide all the necessary equipment.
3.4 Technology
Virtual Realities will feature the HTC Vive virtual reality system. This system requires wall-mounted base stations, a VR headset, and two handheld controllers. The Vive will be connected to a custom made PC running a copy of Windows with internet cafe software. These systems will allow the user to enjoy high quality games, video browsing, and overall PC enjoyment. High quality PCs are vital to the success of VR to reduce any loss of visual aesthetic. A large TV will be present that will be capable of displaying the activites of other computers. This will allow spectators and non-participants to still enjoy the others' experience.
3.5 Future Services
With the success of Virtual Realities it will be vital to continue to branch out and offer other services. A larger amount of VR access points will allow larger scale tournaments and events to take place while having minimal impact on future expenses. As more VR technologies come out new items could be purchased and rented to users. VR workshops based around home improvement or arts&crafts could also be hosted.


Market Analysis Summary
Virtual Realities has the amazing opportunity of being the first ever of its kind in a major metropolitan area. Emerging technologies create a fresh market based around a demographic that has a strong sense of community.
4.1 Target Market Segment Strategy
Virtual Realities will target users who are unable to purchase their own expensive VR equipment as well as those who may not have the space required to participate enjoyably. Individuals as well as groups will enjoy the benefits of VR, allowing Virtual Realities to capture both the business side of VR and the recreational. Businesses who have training/work applications in VR will also be a large target due to a lack of wide-scale VR access points. Repeat customers will be a main goal of the business to establish a market within the local gaming community.
4.1.1 Market Trends
Virutal Realities attempts to attract the same crowds as other recreational facilities such as Arcades, Go-Karts, and Family Fun Centers. Studies have been shown that American families visit these types of entertainment centers 3-5 times per year while spending an average of $12-22 per visit.
4.1.2 Market Needs
As the VR market is just beginning to emerge more and more developers are beginning to work with VR, Virtual Realities aims to provide a place where mass amounts of people can participate and try VR without having to sink the high starting expenses. People who can not afford VR would normally choose to opt out, however if they were given an option to use VR a few times a month as a sort of arcade visit he would still be able to participate in a way that suits his needs. Universities and businesses will also be able to use Virtual Realities to host large numbers of people for educational purposes without having to dedicate the space or initial investment of the headsets. As the market develops and matures with the release of VR, Virtual Realities will remain relevant due to the fact that not everyone will always be able to afford these types of luxuries unless in small amounts.
4.2 Market Segmentation
Virtual Realities audience can be divided in to a variety of groups. Gamers looking to enjoy VR access in a relaxed or tournament setting, elderly users looking to enjoy VR in a more relaxing setting,  and business or educational users looking to use the facilities in a more class-like manner. The first group will provide a strong base of returning users with a strong tendency towards word of mouth advertising and group visits. The second can provide a strong source of income by tapping in to a relatively uninhabited market. By showcasing more relaxing experiences with VR we can attempt to bring these experiences to elderly users who are still capable of using these types of devices. This gives Virtual Realities a target age range 14-80, acting as both a proffesional classroom and Family Entertainment Center.
4.3 Service Business Analysis
The public VR access industry is completely untapped in the entire Seattle area. With VR becoming a rising popular technology, users of all income types will be looking to access new games and experiences. The Seattle area is an extremely fast growing area playing host to a variety of customers in all income brackets. Wealthy users who aren't interested in owning these systems will be able to afford the occasional visit and use while low income residents who may not be able to afford the bulk expenses will be able to come a few times a month consistently.
The rise of VR is bringing to bear a whole new market. Gamers looking to participate in VR in a more professional or tournament setting will find themselves with no place to meet or congregate, and families who aren't interested may never get to experience the joy that VR has brought.
Competition in this specific area being low, word of mouth and lack of options can create an attention funnel with the possibility of creating global attention. Developers looking to host their own events will have a location to do so, creating a hub for this type of activity in the area for the first time.
4.3.1 Competition and Buying Patterns
The main type of competition for Virtual Realities will come in the form of home use and local recreational sites such as family entertainment centers, arcades, and theaters.
While the technology may be adopted by many in their own homes, the spacial requirements and expenses will always create an obstacle for some people who may have no option but to access VR in a public venue, while it will always remain a unique option for multi-person VR.
4.3.2 Business Participants
There are zero locations in the greater Seattle area offering public access to upcoming VR technologies. Entertainment centers such as Laser Tag, Go Karts, and arcades are successful in the area and show a demand for recreational activities such as these for the masses.
4.3.3 Distributing a Service
Virtual Realities will provide a stable location where people can come in and participate in VR easily and on their own time. This business has the unique advantage of being the first of its kind to allow many users to participate and spectate simultaneously.


Strategy and Implementation Summary
Virtual Realities has a variety of strategies for increasing and maintaining revenue. First is drawing in casual gamers/users who are looking for the occasional experience with VR similar to an arcade.
The second consists of drawing in the business/educational crowd by renting facilities to be used for corporate parties, skills workshops, or training purposes.
The third is drawing in the competitive and tournament scene. By providing unique year-round access to multiple VR stations this can create and foster a local competitive scene with Virtual Realities as its home.
5.1.1 Attract Casual Gamers/Users
The first strategy will focus on getting a strong base of walk-ins via casual users. To attract these users
	Provide easy to use VR facilities
	Provide a variety of VR experiences that cater to individual wants
	Provide a variety of VR technologies as they come to market
5.1.2 Attract Business/Educational Users
The second strategy will involve drawing in the more group-oriented and consistent professional crowd. To do this we will
	Provide clean and professional facilties for class-size amounts of users to participate simultaneously
	Provide consulting regarding related VR technologies and applications
	Provide facility rentals for professional events
5.1.3 Create a Competitive Scene
The third strategy will be an attempt at fostering a community of serious minded gamers who will want to participate in consistent events and tournaments. To do this we can
	Provide a consistent schedule of events for users to sign up for
	Provide tournament and prize support to draw customers
	Provide alternative entertainment to anybody who may not want to actively participate.

5.2 Strengths and Weaknesses
A SWOT analysis provides a look at the realities Virtual Realities must face when entering the market and allows us to identify any potential problems the business may face in the first three years.
Virtual Realities has a list of strengths and advantages on its side. From being the first of its type in a major metropolitan area, to offering a large variety of services to a large demographic. However weaknesses related to the business come in the form of ever-advancing technology. While computers can be built with the future in mind there will always come a time for upgrading. This also comes with a strength in that these types of technologies have a strong resell rate.
The strengths around Virtual Realities will provide it with the ability to capitalize on an emerging market. As VR becomes more commonplace in the homes there will always be a need to have a place to congregate which will hopefully counter the threat of more affordable home VR technologies.
5.2.1 Weaknesses
Technology tends to move fast. With the HTC Vive scheduled at a 2 year product cycle it may be possible to require a replacement of sets every 2 years.
A hard cap in income is associated with the amount of PCs in use. With only so many hours in the day and income tied to time-block usage of the computers, it is possible to hit a ceiling of user participation.
5.2.2 Opportunities
Taking advantage of an emerging VR market and the public hesitancy to adopt the technology. Purchasing $2,000 is much more intimidating than spending $10 a few times a month.
Becoming the first VR tournament hub in a major metropolitan area. Hosting events could easily result in worldwide media and gamer attention.
New types of VR technologies could emerge that could be then implemented to the Virtual Realities business plan. From full-blown cockpit simulation to Microsoft Hololens
5.2.3 Threats
Home VR could get to the point where it is affordable to a larger and larger number of users causing a dip in people looking for casual access.. Larger companies and FECs may incorporate VR in to their list of offerings.


5.2.4 Strengths
Virtual Realities has a variety of strengths, but a main one is its low running cost. After initial expenses are made, no worry of inventory or stock rotation is needed to draw away needed funds with rent being the main expense.
Unique access to multiple simultaneous users in a VR setting not available without a large space.
Business model that caters to casual and hardcore users as well as recreational and professional users.
Tournament and event hosting could lead to the establishment of Virtual Realities as a brand of apparel or gaming accessories.
5.3 Competitive Edge
Virtual Realities will work to maintain itself as the premier location for VR services in the Seattle area. By catering to all varieties of businesses it will seek maximum exposure to all manner of users.
5.4 Marketing Strategy
Virtual Realities will sell itself as a modern, small time VR access point. It will serve gamers, casual users, and business users. We will use advertising placed online, in print, and through partnerships with other businesses to build customer awareness. Other strategies include creating lists of local businesses and making cold calls to sell our service as a provider of VR experiences to all. Memberships will allow ads to use a 'First 15 minutes free' approach to attract new customers as well as creating a platform for other advertisements.
5.4.1 Pricing Strategy
Virtual Realities will base its pricing on other recreational activities based in the Seattle area and attempt to maximize income while also maximizing appeal.
By comparing the price of an hours worth of entertainment with other FECs, it appears that other places charge high amounts to maintain expensive equipment and facilities. With a low running cost, Virtual Realities is able to keep the price low and competitive while providing very fast and easy access to the product. We looked to find the amount of money one would spend at an arcade as a valid comparison to VR while allowing the benefits of letting the users continuously access the product uninterrupted.
By offering a range of prices for a variety of time slots we can maximize savings by having the customer stay in shop longer while providing cheap gaming opportunities for people tight on time. A membership system will encourage people to return frequently by creating a larger investment. Savings will be offered compared to walk in customers to encourage loyalty.
5.4.2 Promotion Strategy
Virtual Realities will attempt to create a strong online presence. By allowing the business to serve and communicate with users all over the world, attention towards social media can create a strong and friendly bond between customers and businesses. A schedule of events will act to establish habits in customers and provide a focus point for multiple users to congregate on similar days.
Paper advertisements could also be printed with coupons allowing for free trial use or discounts on member rates.
5.5 Sales Strategy
Virtual Realities will look to handle transactions for the rental of VR equipment. Employees will be required to be computer literate to handle any basic problems that may arise. Catering to a variety of customers, employees will also need to know how to handle social interactions and provide friendly service.
5.5.1 Sales Forecast
Virtual Realities is basing their sales on a stronger weekend participation than weekday. The estimate is made by comparing the hours of operation with the amount of VR terminals available for public use. After initial expenses there are no costs associated with the sale of each block of time other than the monthly internet price of $700.
	Unit Sales				Year 1		Year 2		Year 3
	Guest Hour VR				1176		1352		1595
	Guest Half Hour Vr			840		966		1139
	Member Hour VR			2688		3091		3647
	Member Half Hour VR			2016		2318		2735
	Membership Fees			84		96		113
	Tournament Pass			17		19		22
	Tournament Fees			235		270		319
	Hourly Facility Rental			10		11		13
	VR Taught Workshops			369		425		501
	Total Unit Sales				5235		6020		7104
	Unit Prices				Year 1		Year 2		Year 3
	Guest Hour VR				$15		$15		$15
	Guest Half Hour VR			$8.00		$8.00		$8.00
	Member Hour VR			$10.00		$10.00		$10.00
	Member Half Hour VR			$5.00		$5.00		$5.00
	Membership Fees			$50.00		$50.00		$50.00
	Tournament Pass			$150.00	$150.00	$150.00
	Tournament Fees			$20.00		$20.00		$20.00
	Facility Rental Hour			$200.00	$200.00	$200.00
	VR Taught Workshops			$20.00		$20.00		$20.00
	Sales					$82,152.00	$94,474.80	$111,480.26
	Guest Hour VR				$17,640.00	$20,286.00	$23,937.48
	Guest Half Hour VR			$6,720.00	$7,728.00	$9,119.04
	Member Hour VR			$26,880.00	$30,912.00	$36,476.16
	Member Half Hour VR			$10,080.00	$11,592.00	$13,678.56
	Membership Fee			$4,200.00	$4,830.00	$5,699.40
	Tournament Fee			$4,704.00	$5,409.60	$6,383.33
	Tournament Pass			$2,520.00	$2,898.00	$3,419.64
	Facility Rental Hour			$2,016		$2,318.40	$2,735.71
	Taught Workshop Fee			$7,392		$8,500.80	$10,030.94
Management Summary
Virtual Realities will be owned and operated by [NAME]. The nature of this business will require little staff and a simple organizational structure. Mr. [SURNAME] will make all decisions in regards to the day to day operations of the business.
6.1 Personnel Plan
The staff will consist of the owner and if demand is sufficient at least one part time employee with varying hours at $11.50 per hour. Any technical support that is needed beyond the skills of the owner will be addressed through the products technical support or other means. Investors will not be responsible for any day to day activities and all decisions being made by the owner will provide fast response times and flexibility.
	Personnel Plan				Year 1		Year 2		Year 3
	Owner					$24,000	$26,400	$29,040
	Part Time 1				$3,960		$7,920		$8,712
	Total Payroll				$27,960	$34,320	$37,752


Financial Plan
This section will explain the details of financing the first three years.
7.1 Start-up Funding
Virtual Realities is prepared to obtain financing in the amount of $50,000. This financing is required to begin acquiring the necessary technology and retail site to begin operations. This will also cover expenses in the first three years.
	Start-up Expenses to Fund		$44,420.00
	Start-up Assets				$0.00
7.2 Important Assumptions
Basic assumptions are presented in the table
	General Assumptions			Year 1		Year 2		Year 3
	Plan Month				1		2		3
	Current Interest Rate			0.00%		0.00%		0.00%
	Tax Rate				0.015%		0.015%		0.015%
	Other					0		0		0
7.3 Break-even Analysis
	Monthly Units Break-even		564
	Monthly Revenue Break-even		$6,205
	Assumptions:
	Average Per-Unit Revenue		$53.00
	Estimated Monthly Fixed Cost		$6,205
7.4 Projected Profit and Loss
Payroll Expense: The owner of Virtual Realities, [NAME], will receive a salary of $24,000 in year one, $26,400 in year two, and $29,040 in year three. Virtual Realities may need to hire one part time employee by the end of the year at $11.50/hour.
Rent Expense: Virtual Realities intends to lease a space of at least 1,500 sq/ft in Renton at around $17.00/sq. foot. This plan is created using an estimate of a $25,500/year lease at $2,125 per month.
Utilities Expense: Utilities expenses will consist of a business class T1 connection via Startouch Wireless at an estimated $800.00 per month. We hope to obtain a building that has essential utilities included in the cost of the lease.
Marketing Expense: Virtual Realities will allocate $3,000 for promotional expenses over the first year to be used to establish a web presence and place ads.
Insurance Expense: Virtual Realities will allocate an estimated $8,400 in insurance each year. This is due to the physical nature of the equipment at hand and the increased risk of damage.
Deprecation: These items tend to hold there value well and will sell for around 50% of their original value. As long as they are kept maintained they can be resold to cover cost of future upgrades.
	Projected Profit and Loss		Year 1		Year 2		Year 3
	Sales					$82,152.00	$94,474.80	$111,480.26
	Direct Cost of Sales			$0.00		$0.00		$0.00
	Other Cost of Sales			$0.00		$0.00		$0.00
	Total Cost of Sales			$0.00		$0.00		$0.00
	Gross Margin				$82,152.00	$94,474.80	$111,480.26
	Gross Margin %				100%		100%		100%
	Expenses
	Payroll					$27,960.00	$34,320.00	$37,752.00
	Marketing/Promotion			$3,000		$3,000		$3,000
	Deprecation				$0.00		$0.00		$0.00
	Rent					$25,500.00	$25,500.00	$25,500.00
	Utilities				$9,600		$9,600		$9,600
	Insurance				$8,400		$8,400		$8,400
	Payroll Taxes				$1,297.34	$1,592.45	$1,751.69
	Other
	Total Operating Expenses		$74,460.00	$80,820.00	$84,252.00
	Profit Before Interest and Taxes	$7,692.00	$13,654.80	$27,228.26
	EBITDA					$7,692.00	$13,654.80	$27,228.26
	Interest Expense			$4,000		$4,000		$4,000
	Taxes Incurred				$0.00		$0.00		$0.00
	Net Profit				$3,692.00	$9,654.80	$23,228.26