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Business plan for an eSports bar

Are you drawn to the mysterious and enticing world of video games? If you have a passion for gaming and a head for business, you may have decided to open your own eSports bar.

Before purchasing your video, games and setting up a bar, however, it’s important to think carefully about your business plan – because the success of your venture depends on it.

If you’re not sure how to go about drafting up a business plan, then you’ve come to the right place. Simply read our guide below to make your eSports business plan come to life.

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What’s the purpose of writing a business plan for an eSports bar?

The business plan for an eSports bar enables an entrepreneur to examine their business in detail, evaluate the amount of funding needed to get it up and running, and assess its expected profitability. 

It also serves as a roadmap for the business’ first three years of operation. As your eSports bar moves through its first throes of operation, you can use the business plan to track whether it’s flourishing as it should, by comparing the figures estimated in your initial forecasts. 

An eSports business plan will also be specifically requested by any bank or investor you decide to approach, so drafting one up is a mandatory step when it comes to securing financing. 

So what does a business plan for an eSports bar look like? In a simplified way, it consists of two main parts:

A financial forecast highlighting the expected financial performance over the next 3 years and the potential for profitability

A written part that presents, in detail, your project, the team, your business strategy, and your medium-term objectives.

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What information should an eSports bar business plan contain?

The business plan for your eSports bar will first require specific information to help you build a realistic financial forecast.

  • Market research

Market research is an essential prerequisite for the creation of any business plan.

It will not only enable you to understand the dynamics of the market you’ve chosen to enter (whether you’re opening an independent eSports bar or joining an already established chain) but also help you understand the expectations of your customers to ensure you’re offering the type of games and screening the sort of competitions they’re looking for. 

  • Staffing and equipment needs

Writing a eSports business plan also enables you to keep track of the staff and equipment requirements of launching an eSports bar, as well as how much each investment will cost. 

Operating an eSports bar means having to invest in video game consoles and computers for your customers, as well as purchasing licenses for the games you’d like to make available within your bar.

Don’t skimp on creating a cool layout with comfy chairs for your customers, and if you plan to serve snacks, you’ll need to think about fitting in a kitchen – or buying a space with a kitchen already installed. 

You may also decide you’d like to specialize in one type of eSport or set up a concept that will set you apart from rival eSports bars. If this is the case, don’t disregard the extra costs involved. 

Investment will not be the only cost to consider. You’ll also have to add up the operating costs, including the stock, insurance, legal and accountancy fees, as well as your utility bills and rent. 

By listing all these expenses, you’ll be able to decipher how much turnover you’ll need to achieve to reach your break-even point.

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Developing the financial forecast for an eSports bar

The financial forecast of your eSports business plan corresponds to the figures mentioned at the start of this guide.

This forecast is made over 3 to 5 years, allowing you to envision the future of your business and use it as a roadmap to ensure you meet the goals you and your team have set out.

The financial forecast gives you the opportunity to gauge both the amount needed to start up your eSports bar and the turnover to be achieved for it to be profitable. 

We go into more detail on the tables that make up this section below…

  • The projected profit and loss account

The projected profit and loss account gives an overview of the expected turnover, growth, and profitability for your eSports bar over the first 3 to 5 years of business.

This essential table helps you identify potential opportunities to reduce costs and enables you to ensure the profitability of your eSports bar.

  • The projected balance sheets

The projected balance sheet shows the value of the assets (what the company owns) and liabilities (what the company owes to suppliers, lenders, etc.) at a given point in time.

  • The projected cash flow statement

With the help of a projected cash flow statement, you will see how much cash is generated in your eSports bar business plan, where it comes from, and how it is used, whether it’s to repay its loans or buy new video game consoles.

  • The start-up capital

This section of your eSports bar’s financial forecast gives your bank or investor a quick overview of the resources needed to launch your business and their costs – as well as ways in which they’ll be financed, including via equity contribution, shareholder loans, and bank loans. 

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Credit Source: https://www.thebusinessplanshop.com/en/blog/business-plan-esports-bar

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