UNIT 36
P1
Business Idea -
Our business is called ‘undefeated; which is self-explanatory. This business is based
on a gaming competition which will take place in December. The game is about Fifa
20; this game had just been released hence the demand to play the game is very high
at the moment. The game will hence attract great attention from the students who
are the main target audience. Undefeated will be played through a knockout
tournament style which will make the competition more eager and competitive. Our
business will hire a hall for all neutrals and players to play under, charging them an
entry of £3 fee, this will make our business much more profitable and professional.
The knockout tournament will start when there 8 – 16 depending on the hall and the
games being played. This tournament is generally streamed bringing huge attention
to this business, this is due to the winner getting a prize. It will be streamed all across
Britain as it’ll give business a chance of gaining money through donations as well as
being more established creating a fan base. The business will generate money
through entry to the hall, entry fee to competitions, donations on Twitch and later
on advertisements through platforms such as YouTube. We have platforms as it gains
much attention from around the UK, fans can stream games their favourite games
being played through platforms e.g. YouTube and Twitch, and they are able to drop
donations whilst watching. For example we could make £50 from donation in which
can go towards the rent which we have to pay for the tournament to proceed.
Aims and Objectives
The first aim of our business is making sure all customers/ neutrals are eligible to
play. The objective which will help us reach our first aim is to release tournaments
that are at least 7+ rated as customers can play against friends/ family. The reason
why we have a age range of 7+ is so our business are able to get as many potential
gamers as possible, giving everyone a chance and promoting equality. The second
aim of our business is making sure our customers are left feeling satisfied. The
objective which will help us reach our second aim is to offer customers a good
service e.g. by greeting them, how can we help. The reason why we want to make
our customers satisfied is to encourage them to come back and compete, this will
create a stronger bond between our business and the customer. The third aim is to
make sure we have a wide audience. The objective which will help us reach our third
aim is to offer different games each 2 months as we want more customers willing to
,enter tournaments and fans which are willing to watch our streams. The reason why
we do this is to gain as much attention from the public as we can, we want our
business tournament to be well established hence by streaming games on YouTube
and games being refreshed every 2 month gives gamers every reason to watch our
streams/ gameplay.
Competitive advantage
We will gain a competitive advantage as our business is very diverse in location. We
will have several tournaments every month and will move depending on which game
is being played. This will be beneficial as we through moving places constantly it
creates more people being interested in participating in our competitions and try to
win our prizes. Our business will lower cost depending on the tournament game
which is being played, this will make more people want to participate in our games
due to making the entry fee more affordable as well as the diversity in the games
which we offer. We have our own ‘cost leadership’ which means we are able to cut
down cost through buying our gadgets in bulk. Depending on the game which is
being played we will charge different prices e.g. marvel is £25 entry compared to
FIFA which is £50, this is because there is more of a demand in a game such as FIFA
than Marvel. Our usual figure which we charge our customers per tournament is £50
and the winner receives £125 with a free entry to any tournament of their choice.
This will create a competitive advantage over our competitors as winners are able to
secure nearly triple of the money which they originally invested as well as a free
entry to the tournament again, which is a great deal. Other competitors such as E-
sports usually charge £30 x 8 people and winner received £100, our tournament will
be more convenient for gamers as they will be able to earn money as well as get a
free entry to any of our tournaments, hence giving us a competitive advantage over
our competitors.
USP
The USP of our business is that our games refresh every 2 months depending on
external factors e.g. August is the new season for football which means games such
as FIFA and Pes will be more in demand. Having this makes our neutrals and
customers all to be happy as they are able to watch/ play the game which they enjoy.
Another USP which we offer that our competitors don’t is that winners are allowed
to redeem a free entry to a tournament if their choice, this not only makes the
tournament more competitors but it creates more tension with each tournament
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,being played this essentially creates more attention on our business hence making
our business more profitable.
Trends and demands
Our business has a numerous number of trends one in which is the reoccurrence of
new games being played at different times in the year. This will bring more attention
to our business due to the competition, as we are able to get more participants.
Another ongoing trend our business has is that we frequently change location, this is
to get the best gameplay for our fans who can watch via Twitch and YouTube, we
also thought it was a good trend as many people are able to travel shorter distances
which makes them more tempted to participate in the tournament. There is a huge
demand for this business around London due to the fact that there aren’t many
tournaments based on new games which everyone to eligible to compete in.
Managing personal and business needs
The business will be active once a week, I will use Monday and Tuesday to prepare
for the weekend, my fellow partners will work on the other unoccupied days making
sure contestants are able to make the tournament. I will usually use Wednesday,
Thursday and Friday as my days off which will separate my work and social life apart.
I will set my priorities mainly on the business as it will need to be maintained to
compete with tournaments such as ‘esport world convention,’ however I will always
take time off no matter the circumstance as I need to stay calm and relaxed when I
work there.
Checking profitability of my business
The profitability of the business can be seen through a profit and loss account, this
will allow me to identify how much your business has made each month and how
much I have spent. I can also use a balance sheet which allows me to see a more
detailed balance of income and expenditure; this is through assets, liabilities and
capital of a business. I can simply just keep tabs of my purchases and keep books up
to date of sales and purchases also, this will help me keep track of the money going
in and out the business which reduces the chance of making a mistake.
My motivation for starting an up a new business is due to my pure passion to play
video games, I feel as if there should be more tournaments around London
specifically as not many people such as me are able to travel long distance and want
to play. I have further motivation as at 7-15 there wasn’t many tournaments which I
could compete in, but in this business we feel as if children at this age are eligible to
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, play as most have an understanding concept of games such as FIFA or Formula 1
racing.
Legal structure
The legal structure of our business is a pure partnership between 3 people; shares
will be equal 33% each as it stands. This can create at times confusion as we all need
to come to a joint decision, and at time can be out voted 2/1, it can be frustrating at
time when I don’t get my decision but at the same time is great as we can combine
our ideas and use the best and make the best decision for the tournaments and the
business. The advantage of our structure being a partnership is that we can get
things done quicker e.g. everyone has a job which they know and need to fulfil it. It
will make chores and meeting objectives much easier as 3 of us have our own set our
targets which need to be met by a deadline, this will of course take less time than if I
was to run the business on my own. The second advantage is that we can trust one
another; this will bring a strong bond with one another, benefiting us as other
companies will want to collaborate with us through e.g. promotion. Having this bond
will make us more passionate about our tournaments, as each of us will be pushing
each other to the best of our ability hence getting the best reviews and gameplay we
can. There are a few disadvantages which include; we always need to refer to one
another when making a decision. Needing to refer to all of the partners before
negotiating a deal can be stressful and time consuming as we will all have our own
perception and ideas of what decision to make. The second disadvantage is that all
the partners will need to negotiate a financial decision or an event at the same time.
This may create negativity due to needing to wait for all partners before an event or
financial decision occurs, even if they are 1 hour late we would need to wait due to
all of us having an equal equity of 33% of the business.
PESTLE
The first external influence our business faces from PESTLE is ‘Political factors,’ an
example of how political factors can impact our business is, due to us being a small
business the coalition government will make things easier. This will benefit our
business like ours because we have just started resulted in the government allowing
us to have relaxing planning permissions which will give us time to build our business
and pay for our expenses a little later than usual. We will be able to buy the
adequate equipment for gamers at the start and as the year progresses it will give us
the chance to upgrade and add more technological gadgets e.g. monitors and PC’s
which our competitors can compete on.
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