Offworld Concept Book

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Practice路Space // PS02

Offworld Arcade


PRACTICE·SPACE / PS02_Offworld Arcade

About Practice·Space

Project Leaders

Practice·Space Team

Practice Space is a platform for gathering and energizing the rebuilders of Detroit. Located in a former auto garage in North Corktown, Practice Space combines two programs. First, the Incubator program helps entrepreneurs reclaim old spaces for new uses. Second, the Residency program is a yearlong vocational training for young creatives looking to gain experience collaborating on place-based projects in Detroit. Practice Space creates the framework for these diverse connections As the city retools, so must we.

Project Leader Don Behm elstratego@gmail.com

Program Director Justin Mast justin.mast@practicespace.org

Residents

Cultural Development Director Austin Kronig

Copyright Practice·Space 2801 14th Street Detroit, Mi 48216 hello@practicespace.org

Copyright © 2013 by Practice·Space Practice Space offers all its contents under the Creative Commons Attribution Non-Commercial No Derivatives license, which means you’re free to redistribute anything in here as long as you don’t change it, don’t charge for it, and do credit us.

Margo Dalal margodalal@gmail.com Allison Kruske akruske@gmail.com R. Philip Lockwood rphiliplockwood@gmail.com

Contributors Special thanks to all the Experts, Guest Critics, and Speakers that contributed to this project: Architectural Salvage Warehouse, Mavis Farr, Michael Forsyth, Cliff Helm, Kyle Hoff, Matt Hubbard, Allison Killing, Jon Koller, Larry Mongo, Alex O’Dell, Lisa Sauve, John Schoeniger, Skip Stackhouse, TechShop Detroit, and Steve Wisinski.

austin.kronig@practicespace.org

Financial Director Donald Hart donald.hart@practicespace.org

Advisors Program Advisor Christian Unverzagt cu@m1dtw.com Legal Advisor Brandon Weiner brandon@creative-rights.org Architectural Advisor Brian Hurttienne brianh@thevillagesofdetroit.com

Real Estate Advisor Ryan Cooley ryan@oconnordetroit.com Community Advisor Virginia Stanard stanarvi@udmercy.edu

Printer / Distributor Lulu Press, Inc. lulu.com


Practice路Space // PS02

Offworld Arcade


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Table of Contents Executive Summary

06–19

Company Overview

20–51

Products & Services

52–65

Design

66–77

Market Analysis

78–87

Brand & Identity

88–95

Management

96–99

Financial Summary

100–109

Appendix A

110–115

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Executive Summary

The arcade first gained popularity in the late 1970s with games such as Ms. Pac Man, Donkey Kong and Galaga that lined the walls of our neighborhood malls. The arcade was a place where we could get away from our parents and spend counltess hours and quarters defending the planet from endless waves of alien invaders. The arcade was the place where our electronic dreams came true.

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Offworld is an arcade tavern that is dedicated to the art and culture of electronic gaming. Offworld focuses on classic arcade games from the late 1970’s until the mid 1990’s. Offworld plans to open in Detroit within the next year and will have multiple platforms of engagement.

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EXECUTIVE SUMMARY / Project Summary

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IS A CLASSIC ARCADE.

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EXECUTIVE SUMMARY / Project Summary

IS ALWAYS A QUARTER PER GAME.

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PROMOTES FRIENDLY COMPETITION & REWARDS HIGH SCORE HOLDERS.

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EXECUTIVE SUMMARY / Project Summary

RESCUES, RESTORES & PRESERVES OUR GAMING HISTORY.

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REGARDS VIDEO GAMES AS WORKS OF ART.

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EXECUTIVE SUMMARY / Project Summary

HOSTS WORKSHOPS & EVENTS TO FOSTER INDEPENDENT GAME DEVELOPMENT.

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SERVES EXCELLENT BEER.

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EXECUTIVE SUMMARY / Project Summary

IS A SPACE TO LEARN, CREATE & COLLABORATE.

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IS A COMMUNITY.

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EXECUTIVE SUMMARY / Current Agenda

We love electronic gaming We hope you do as well! At this moment Offworld has developed a working business plan / model and is actively searching for a permanent location. As we search for our home base we will continue to host pop up arcades around town to grow our brand and get people excited about electronic gaming in Detroit.

In the past two months, we have hosted two successful pop-op arcades, testing the layout of cabinets, the retail aspect, both with beer and music. These pop-ups also allowed us to receive feedback on the business, game preferences, and location preferences. We have a few building prospects and have begun investigating what Offworld could be like in those spaces. We have doubled our game collection in the last four months from 6 to 12, with a goal of 20 by the time we open.

Currently Offworld is in the process of selecting a building in Detroit. We have developed studies for three different neighborhoods in Detroit, Hamtramck, Woodbridge, and Corktown. Currently we are moving forward with the Corktown location, specifically looking at 1830 Michigan Ave. which is currently built out as a bar.

“The Arcade was where we made our electronic dreams come true� 20

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Company Overview

Offworld is a classic arcade that moonlights as a tavern, a gallery and a community workspace for people who love electronic gaming.

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Video arcades first gained their place in U.S. American culture in the late 1970s, with 25 cent coin operated machines that lined the walls of dark rooms, where the focus was on arcade games such as Space Invaders and Pac Man. Detroit’s growing tech industry is faster than that of Silicon Valley’s, and currently tech-related jobs account for 10% of Wayne, Oakland, and Macomb counties. Following the growing culture around technology, entrepreneurship and innovation, Offworld will be Detroit’s first bar dedicated to the art and culture of classic arcade games, and promoting art and design of video games.

Offworld is a modern video arcade, with an emphasis on video game education and culture, and preserving an important facet of U.S. American culture. From newbies to professional gamers, Offworld will be a destination for an entertaining night out, to explore classic arcade games, to meet fellow gamers, and to hone video gaming skills. For the average gamer, simply playing video games while enjoying a local beer might be satisfying enough, however Offworld is excited to take that experience one step further.

a platform to learn about programing and video game design. Offworld is also excited to promote video game related artwork and objects, and partner with local artists to create, display, and sell art and merchandise.

“Offworld will be a destination for an entertaining night out.”

Offworld will not only be provide an entertaining evening, but also serve as PS02_OFFWORLD ARCADE

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COMPANY OVERVIEW / Project History

Offworld Pop-Ups The Offworld team organized and implemented two pop-up arcades in the spring of 2014. Both pop-ups were hosted in Hamtramck, the first at the future home of HenriettaHaus Coffee Roasters, and the second at Chiipss Skate Shop. The pop-ups simulated the main programming of Offworld, arcade and tavern.

At our first pop-up, we had eight arcade games with a turnout of about 50 people. We used these pop-ups as a chance to receive feedback through comment cards we developed that included questions about gaming levels and location preferences.

At our second pop-up, in addition to the arcade and tavern, we introduced live music and an art gallery, which consisted of video game related pieces donated by community members which were used to raise funds for Offworld.

“We literally can’t wait to open, so we’ve been hosting pop up arcades around town while we search for our homebase.”

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COMPANY OVERVIEW / Project History and Context

RAM/OK/ROM/OK

A NIGHT OF GAMING BY OFFWORLD time/date:

SATURDAY, FEBRUARY 1ST 7:00PM

what:

POP-UP ARCADE, PROTOTYPE SOFT PRETZELS & A KUHNHENN BREWERY KEG

location:

8609 JOS CAMPAU, HAMTRAMCK

why:

GAMES ARE FUN, BEER IS TOO

TEMPEST

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PRACTICE

SPACE


RAM/OK/ROM/OK

AN EVENT BY OFFWORLD

time/date:

SATURDAY, FEB 1ST 7:00PM

location:

8609 JOS CAMPAU HAMTRAMCK

what:

CLASSIC GAMES, CRAFT BEER IN THE FUTURE SITE OF HENRIETTA HAUS COFFEE

why:

GOOD TIMES + ALCOHOL INDUCED FEEDBACK WILL ABOUND

GAUNTLET II

&

PRACTICE

SPACE

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COMPANY OVERVIEW / Project History and Context

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COMPANY OVERVIEW / Project History and Context

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COMPANY OVERVIEW / Project History and Context

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COMPANY OVERVIEW / Project History and Context

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COMPANY OVERVIEW / Project History and Context

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COMPANY OVERVIEW / Project History and Context

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COMPANY OVERVIEW / Project History and Context

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COMPANY OVERVIEW / Project History and Context

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Hello and welcome to Spritenite! The event is FREE, but please consider making a donation to Offworld to help us cover our expenses, fix up our games and maybe even add another one to our collection!

H T d f t

Here are some suggested donation tiers and the rewards for donating at each level.

H r

$5.00

$

$10.00

$

$25.00

$

$50.00

$

*if all the art is spoken for and you still want to donate at this level you will get an Offworld T-shirt the minute we print one.

* a w

General admission! Freeplay on all games all night!

General admission! Freeplay on all games all night! A chance to win a Sega Nomad!

General admission! Freeplay on all games all night! A chance to win a Sega Nomad! A piece of artwork from tonight’s gallery*!

General admission! Freeplay on all games all night! A chance to win a Sega Nomad! A piece of artwork from tonight’s gallery*! Free beer all night!

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COMPANY OVERVIEW / Project History and Context

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COMPANY OVERVIEW / Project History and Context

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COMPANY OVERVIEW / Project History and Context

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COMPANY OVERVIEW / Project History and Context

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COMPANY OVERVIEW / Project History

Finding a Building After comparing the neighborhoods of Woodbridge, Corktown, and Hamtramck as options for the location of Offworld, we chose a building in Corktown, on Michigan Ave. as our first choice spot. Within close proximity to other bars and restaurants, Corktown is a successful location for a future bar and arcade. Offworld will benefit from this relationship, walking distance from other locations, on the main businesses corridor on Michigan Ave.

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Products & Services

trimmed out

Complete with a bar, a gallery, and workspace, Offworld will be a destination for families, young professionals, and experienced gamers.

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THE ANATOMY OF OFFWORLD

GALLERY TAVERN ARCADE WORKSPACE

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PRODUCTS & SERVICES / Value Proposition & Offer

THE ARCADE Offworld will feature classic games from the late 1970s until mid 1990s and will showcase independant games from throughout the history of gaming. In addition, all our games are meant to be played, meaning we don’t purchase collector condition machines that cost five times the amount of ones that really just need someone to care about them again. Each game will cost 25 cents, staying true to the original affordability of the games, allowing players to easily play a round or two, or five.

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PRODUCTS & SERVICES / Value Proposition & Offer

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THE TAVERN Offworld will develop a meticulously curated menu of craft beers, with a goal of 15 taps in addition to a full bar. There will be custom arcade themed cocktails, and beer nights highlighting different breweries. The tavern will not sell food with the possible exception of homemade soft pretzels.

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PRODUCTS & SERVICES / Value Proposition & Offer

THE WORKSPACE The workspace is a unique feature to Offworld which will serve as a platform to educate the community about video game development and design. Classes will be offered for kids, ages 8-13 to learn how to design video games. Workshops will be held for youth and adults, ages 14 + for video game design and to learn how to repair and restore vintage cabinet games.

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PRODUCTS & SERVICES / Value Proposition & Offer

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THE GALLERY The gallery will be integrated into the bar and arcade. The gallery will help highlight video game art & culture and classic reproductions. The gallery will consist of artwork from local artists. The gallery will be on a rotation, with an option for artists openings at the beginning of each season. *The gallery will be a feature of Offworld that is implemented after the arcade and bar are established.

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PRODUCTS & SERVICES / Business/Cultural Programming

A month in the life of Offworld Arcade Sun

Mon

Tue

Wed

1

Closed

5

6

7

8

12

13

14

15

19

20

21

22

26

27

28

29

Hours 12PM - 6PM Family Friendly until 6PM Game development class

Hours 12PM - 6PM Family Friendly until 6PM Cabinet restoration class

Hours 12PM - 6PM Family Friendly until 6PM Game development class

Hours 12PM - 6PM Family Friendly until 6PM Game design class

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Hours 4PM - 2AM Happy Hour 4M - 8PM Industry Night

Hours 4PM - 2AM Happy Hour 4M - 8PM Industry Night Console Night (TurboGrafx)

Hours 4PM - 2AM Happy Hour 4M - 8PM Industry Night

Hours 4PM - 2AM Happy Hour 4M - 8PM Industry Night Game Tounament

Closed

Closed

Closed

Closed

Closed

Closed

Closed

Closed


Thu

Fri

Sat

2

3

4

9

10

11

16

17

18

23

24

25

30

31

Hours 4PM - 2AM Happy Hour 4M - 8PM Console Night (NES) Obscure New Wave

Hours 4PM - 2AM Happy Hour 4PM - 8PM Experimental electronic New game reveal!

Hours 4PM - 2AM Happy Hour 4PM - 8PM Developer Night Chip Tune Hour 9PM - 10PM

Hours 4PM - 2AM Happy Hour 4PM - 8PM Synth Opus music Game Tounament

Hours 4PM - 2AM Happy Hour 4PM - 8PM Developer Night Sci Fi Soundtrack

Hours 4PM - 2AM Happy Hour 4PM - 8PM Synth Opus Game Tounament

Hours 4PM - 2AM Happy Hour 4PM - 8PM Console Night (Sega Genesis) Live electronic music

Hours 4PM - 2AM Happy Hour 4PM - 8PM Freeplay Friday Sci Fi Soundtrack

Hours 4PM - 2AM Happy Hour 4PM - 8PM Live electronic music Suburbanite Specials

Hours 12PM - 2AM Family Friendly until 6PM Live electronic music Solo Art Show

Hours 12PM - 2AM Game Jam 12PM - 6PM Rented out for private party 7PM - 2AM

Hours 12PM - 2AM Family Friendly until 6PM Live electronic music Indie game release party

Hours 12PM - 2AM Game Jam 12PM - 6PM Family Friendly until 6PM Obscure New Wave

Hours 4PM - 2AM Happy Hour 4PM - 8PM Experimental electronic Art Opening 8PM - 2AM

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PRODUCTS & SERVICES / Value Proposition & Offer

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Offworld Arcade is more than an exciting place to meet with friends, go on a date, or grab a quick beer. During weekend afternoons, Offworld is a family-friendly affair, open to children & their families. Certain nights are dedicated to different groups of people. The following drink specials will be offered to encourage patronage: Detroit service industry, 313 area codes, developers, suburbanites, and arcade clubs. Offworld will also host workshops inclusive to new gamers & experienced developers. The workshop space will facilitate collaboration for video game development and serve as a platform for Detroit’s video game development. Offworld will also host one curated art opening per month, focusing on electronic gaming.

“Offworld will serve as a platform for Detroit’s video game development.”

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Design

Good design need not be complicated or superfluous, it only needs to accomplish a goal. At Offworld, we’re all about gaming, and wanted our designs to reflect that passion. We thoroughly investigated cabinet and material combinations in order to best showcase the cabs and all their glorious graphics, to honor the games, and create a unique spatial experience.

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DESIGN / Game Configuration

The Cab The majority of the materials for the space will have classic materials such as wood and brick, with touches of metal. The games will add color and graphic, standing out against the bare brick or wood walls. These walls will also serve as the background for the gallery.

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Throughout the space there will be metal undertones, such as a quarter lines bar top and metal light fixtures. Reflection will be kept to a minimum to not catch the light from the games.

The lighting during the day will be mostly natural lighting, keeping a darkened interior for players to see the light from the games. At night, lighting will be minimal, primarily around the bar and entrance. Lighting will also spotlight the art on the walls.


Game Art Side A: classic gaming graphics begging to be displayed

Gamer Space: a roughly 2’x2’ space, ample room for a single gamer, just enough for two

Game Art Side B: more rad visual electronic greatness to be had

The Back: not much to see here, mostly outlets and other unsightly stuff, best to cover up

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PRODUCTS & SERVICES /

Schematic Design The Basic Layout

Side by Side: This is the standard configuration based on space efficiency but there are draw-backs. The cabinet graphics are hidden and it requires a wall or more games to cover the back.

Back to Side: This is an important move as it works along the diagonal, and also frees up gamer space and most hidden cabinet art work.

Back to Back: In an ideal world all games would sit in pairs, back to back. With all of the cabinet’s art on display, unsightly backs hidden, and ample extra gamer space the situation is nearly ideal. The issue is the move can’t be replicated without employing another move in conjunction.

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The Duo As a Line: this is the most standard approach to game configuration. Simply put them side to side against a wall. While very space efficient, the games seem secondary, and the experience isn’t very engaging or dynamic.

As an Object: this configuration engages the idea of the line as an object. The resultant scheme greatly frees up gamer space, but at the cost of space efficency and the exposure of the backs of the cabinets.

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PRODUCTS & SERVICES /

Schematic Design The Line

Symmetrical: the simplest, most space efficient application of the object, but does so at the cost of showcasing the cabinets and gamer space.

Diagonal: by applying the mass along the diagonal everyone has ample gamer space and a reasonable amount of side art is visible. The only draw back is it requires an odd footprint.

Hybrid: by merging the two ends of the spectrum we can highlight certain games, while retaining some sense of rational space efficiency.

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The Object Pinwheel: this approach allows for ample gamer space, and side panel art while directing occupants in a circular fashion. Conversely it requires a large footprint.

Chopped: by chopping the object in half and pulling it apart, we create a central circulation corridor through the games, while also putting more cabinet art on display.

Chopped & Shuffled: this approach begins by splitting the mass then rearranging the two sections. The technique works great in a U shaped space, and creates a unique spatial gaming experience between the two masses.

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DESIGN / Design Concept

MEN’S RESTROOM

DISC JOCKEY

TO 2ND FLOOR

BAR

WOMEN’S RESTROOM

ENTRANCE

MICHIGAN AVENUE 76

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WORKSPACE MODULE

OPEN TO BELOW

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DESIGN / Design Concept

The Material Palette

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Offworld will have a modern, relaxed feel with natural materials and metallic highlights. The interior design of the bar will stay true to arcade game inspiration, and will stay neutral as to highlight the cabinets as the focus of the space.

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Market Analysis

trimmed out

We researched different neighborhoods and customer segments to cater to a diverse range of people. We hope that Offworld will revive an important part of U.S. American cultural history, and inspire people to learn more about electronic gaming.

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Our customer relationships extend from local, neighborhood regulars to committed gamers who make Offworld a destination. In a city bustling with artists, designers, tech professionals, entrepreneurs, families, and students, Offworld will be a popular spot for all types of people. Through multiple

platforms for interaction, we will engage all types of customers. We hope to create and facilitate a community around arcade game culture, and create an environment where families, new gamers, and experienced gamers can congregate to play and learn about these games.

“Offworld will engage a wide variety of customers.�

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MARKET ANALYSIS / Market Research

17%

33%

Professionals

Locals

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26%

24%

Gamers

Post Grads

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MARKET ANALYSIS / Market Research

THE PROFESSIONAL

As Detroit’s tech industry increases, more people living in suburban areas will commute to downtown Detroit. These customers will use Offworld as a place to frequent after work, on their way home.

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Bar

Arcade

Workspace

Gallery

Projected Spending Model


THE LOCAL

Bar

Arcade

Workspace

Gallery

Local residents who frequent Offworld due to proximity and relationship to the neighborhood. These people will help create a sense of community within Offworld, will act as regulars and make Offworld a frequent stop in their cycle of bars.

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MARKET ANALYSIS / Market Research

THE GAMER

Across the midwest, these customers will make Offworld a destination for playing and engaging with vintage arcade games. These customers will come less often, but will be loyal customers throughout the years.

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Bar

Arcade

Workspace

Gallery

Projected Spending Model


THE POST GRAD

Bar

Arcade

Workspace

Gallery

There are currently 2,600 people between the ages of 25-36 in the Greater Downtown Detroit area that have graduated college. These grads are active in the social scene of Detroit, appreciate art and culture, and are well connected with social media.

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MARKET ANALYSIS / Community Research

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The United States has the world’s largest video gaming industry, with over 165 million players. Just like the 80s are coming back in the clothing we wear, and the music we listen to, a new interest in arcade games is emerging across the country. As the technology scene is exploding, as is a new respect and appreciation for vintage gaming.

Although the classic arcades that sprinkled the nation in the 1980s are few and far between these days, arcade bars are beginning to emerge. The most well-known of which is Barcade, which has several locations in New York City and New Jersey. These bar-arcades vary in size and number of games.

Offworld will fall somewhere in the middle, with a full bar and a minimum of 15 games. Other bar-arcades offer a gallery component, however Offworld is currently the only bar in our studies that has a community workspace component.

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Brand & Identity

Our team has been developing a unique visual style for the project that draws heavily from classic science fiction and early experimental computer graphics. CGA color palettes, chunky 8-bit sprites, repurposed film posters and primative three dimensional objects are key elements of our design aestetic.

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BRAND & IDENTITY / Branding

The Offworld wordmark is a one of a kind, hand drawn vector illustration inspired by the futuristic sporting activities of the late 1970’s such as Jai Alai and Rollerball. Helvetica Neue will be used as a secondary font in the identy package. The clean, simple lines of this typeface will keep things legible, without drawing attention away from the main wordmark. We also began developing social media and our online presence as a way to keep in touch with the community and continue to build excitement around the brand. The Facebook account, Offworld Arcade, has continued to grow over the past four months. Likewise, our website offworldarcade.com, and Twitter account, @OffworldArcade, have continued to update and inform people of our progress and upcoming events.

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Helvetica Neue: Light ABCDEFGHIJK LMNOPQRSTU VWXYZ Regular ABCDEFGHIJK LMNOPQRSTU VWXYZ Bold ABCDEFGHIJK LMNOPQRSTU VWXYZ

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BRAND & IDENTITY / Identity Package

Business Cards

DON BEHM Owner 313.318.3214 elstratego@gmail.com offworldarcade.com

DON BEHM OWNER 313.318.3214 ELSTRATEGO@GMAIL.COM OFFWORLDARCADE.COM

1830 Michigan Ave. Detroit, MI 48216 offworldarcade.com

Stationary

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GAMES

Menu’s

MS. PAC MAN MIDWAY 1982

MAPPY

NAMCO 1983

BAD DUDES DATA EAST 1988

NEO GEO MVS

161 IN 1/BUST A MOVE

GAUNTLET II ATARI 1986

*

BURGERTIME MIDWAY 1982

ARCADE

CANABALT

ADAM SALTSMAN 2009

Mugs

ARCADE

T-Shirts

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BRAND & IDENTITY / Branding Explorations

*

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We took some time to explore the dot aspect of the Offworld logo and how that could change to reflect various aspects of the business.

Here we did a study using various shapes and arcade images to show how the dot could be part of the logo that is as dynamic as Offworld itself.

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Management

Offworld will function primarily under the management of founder and owner, Don Behm.

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There will be two managers for Offworld. Initially, Don Behm, the owner, will be the primary manager as the bar and arcade open for the first year. When the gallery and workspace open, a second manager will be brought on to run the bar and arcade, and Don will oversee the gallery, workspace, and cultural programming of Offworld.

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MANAGEMENT / Profiles & Resumes

Don Behm MOTION / DESIGN / DEVELOPMENT / DIRECTION

I am an experienced multi-disciplinary, creative professional with a great work ethic and an even greater attention to detail. I love making things, and I love making things move. I don’t know the definition of the words easy or impossible. I like video games and science fiction soundtracks. I don’t have a cable bill. I mow my lawn weekly. I once ditched school to meet Claudia Schiffer at the mall and still have the Polaroid to prove it.

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MRM//McCANN Senior Interactive Developer / Animation Lead GM, Chevy, Cadillac, GMC, Buick, Maybelline, General Mills, Pure Michigan, Cannon

DONOR Interactive Developer / Animation Lead PNC Bank, Serta, UPS, Mazda, Minute Maid, Expedia.com, Polartec, Pennzoil

M1/DTW Senior Designer / Developer

EQUILIBRIA Creative Director / Animation Lead

WEB ELITE Creative Director / Animation Lead Carhartt, Hachette Filipacchi, GM, Car & Driver Magazine, Fitch, Expedia.com, Bell & Howell, J. Walter Thompson

COLLEGE FOR CREATIVE STUDIES Bachelor of Fine Arts Animation and Digital Media w/ high honors

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Financial Summary

Offworld plans to fundraise for a startup budget, and has developed a profit and loss statement based on being open five days a week.

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In order to cover costs for the Spritenite pop up we asked people to donate whatever they could afford from from $5.00 to $50.00. We offered rewards for donating at the higher levels including original video game themed artwork and a chance to win a classic Sega portable gaming system. We also asked for a beer donation at around $2.00 a beer. Over the course of 5 hours we estimated over 200 guests and took in around $700.00 for the night.

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FINANCIAL SUMMARY / Summarized Profit/Loss Proforma

ESTIMATED YEARLY REVENUE PER COMPONENT

GALLERY TAVERN ARCADE WORKSPACE

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This is an estimation of profit and loss for the first year. We believe that most of our revenue will come from the tavern, with the second largest income generator being the games themselves.

$9,700.00 $315,000.00 $132,000.00 $9,600.00

PS02_0FFWORLD ARCADE

105


FINANCIAL SUMMARY / Summarized Profit/Loss Proforma

ESTIMATED YEARLY PROFIT & LOSS

REVENUE*

$392,550.00

EXPENSES**

$237,940.00

NET

$136,610.00

TAX

$35,583.00

PROFIT

$101,027.00

106

PS02_OFFWORLD ARCADE


*REVENUE ASSUMPTIONS 1

Corktown Location

2

Open 5 Days

3

100 Patrons Per Day

**EXPENSE CONSIDERATIONS 1

Owner Salary

2

Bar Manager Salary

3

Two Employees Wages

4

Monthly Utilities

5

Maintenance

6

Entertainment Budget

7

Marketing

PS02_0FFWORLD ARCADE

107


FINANCIAL SUMMARY / Summarized Startup Budget

PROJECT BUDGET

Offworld is currently looking for a building in the Corktown, Hamtramck, or Woodbridge neighborhoods, with primary focus on the Corktown neighborhood. We plan to have a building and begin renovation by the end of September, 2014. As renovations can be extremely tricky to plan for, we hope that Offworld will open within the next year.

108

PS02_OFFWORLD ARCADE


BUILDING

$200,000.00

RENOVATION

$100,000.00

START UP

$25,000.00

TOTAL

$325,000.00

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109


FINANCIAL SUMMARY / Summarized Profit/Loss Proforma

FUNDING PLAN PROFIT & LOSS

FUNDING PLAN

110

SELF

$32,500

CROWD

$81,250

INVESTOR

$81,250

BANK

$130,000

PS02_OFFWORLD ARCADE


PS02_0FFWORLD ARCADE

111


Appendix A Financial Details

112

PS02_OFFWORLD ARCADE


Operating Pro Forma

Operating Pro Forma

Monthly

Annual

%

INCOME Net Operating Income

$136,610 100%

Debt Service Replacement Reserves Operating Reserves Cash Flow Before Debt Service

$0 $0

1.2 10 7%

Required Debt Service Ratio Loan Amortization Period (yrs.) Interest Rate Debt Service (see terms above) Cash Flow After Debt Service

$0

Supportable Debt (on terms above)

Total Funding Needed Owner Contribution Free Money (Grants, Kickstarter) Investors (Crowdfunding, Traditional) Total Owner Contribution Remaing Debt Required

$0 0% $0 0% $136,610 100%

$113,842 $22,768

83% 17%

$817,064

>>>>

$325,000 $30,000 $5,000 $10,000 $45,000 $280,000 yes

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113


APPENDIX A / Financial Details INCOME SALES Bar Sales Pretzel Sales Rent from Events Games Art Sales Retail Workspace TOTAL INCOME

$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$5,500 $688 $6,188

$5,500 $688 $6,188

$5,500 $688 $6,188

$5,500 $688 $6,188

$5,500 $688 $6,188

$5,500 $688 $6,188

$32,713

$32,713

$32,713

$32,713

$32,713

$32,713

$5,500 $7,500 $1,000 $1,250 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$5,500 $7,500 $1,000 $1,250 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$5,500 $7,500 $1,000 $1,250 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$5,500 $7,500 $1,000 $1,000 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$5,500 $7,500 $1,000 $1,000 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$5,500 $7,500 $1,000 $1,000 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$20,203

$20,203

$20,203

$19,953

$19,953

$19,953

OTHER INCOME/EXPENSE - Other Income - Other Expense

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

Net Other Income

$0

$0

$0

$0

$0

$0

$11,009

$11,009

$11,009

$11,259

$11,259

$11,259

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

COGS Bar Sales Food Sales TOTAL COGS

25% 25%

Gross Income EXPENSE - Payroll - Owner Salary - Instructor Fees - Marketing/Promotion - Utilities - Insurance - Payroll Taxes - Building Maintenance - Office Supplies - Trash Removal - Landscape - Entertainment - Bank Fees - Permits & Licenses (One-Time) - Parking Lot Fee - Property Taxes

9%

Total Expense

NET INCOME - Debt Payment (Mortgage) INCOME AFTER DEBT INCOME TAXES INCOME AFTER TAXES

114

PS02_OFFWORLD ARCADE

30.00%


$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$22,000 $2,750 $1,500 $11,000 $350 $500 $800 $38,900

$264,000 $33,000 $18,000 $132,000 $4,200 $5,500 $9,600 $466,800

57% 7% 4% 28% 1% 1% 2% 100%

$5,500 $688 $6,188

$5,500 $688 $6,188

$5,500 $688 $6,188

$5,500 $688 $6,188

$5,500 $688 $6,188

$5,500 $688 $6,188

$5,500 $688 $6,188

$5,500 $688 $6,188

$66,000 $8,250 $74,250

$32,713

$32,713

$32,713

$32,713

$32,713

$32,713

$32,713

$32,713

$392,550

$5,500 $7,500 $1,000 $1,000 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$5,500 $7,500 $1,000 $1,000 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$5,500 $7,500 $1,000 $750 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$5,500 $7,500 $1,000 $750 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$5,500 $7,500 $1,000 $750 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$5,500 $7,500 $1,000 $500 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$5,500 $7,500 $1,000 $500 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$5,500 $7,500 $1,000 $500 $1,150 $850 $1,170 $500 $150 $150 $25 $500 $25 $50 $300 $83

$66,000 $90,000 $12,000 $10,500 $13,800 $10,200 $14,040 $6,000 $1,800 $1,800 $300 $6,000 $300 $600 $3,600 $1,000

28% 38% 5% 4% 6% 4% 6% 3% 1% 1% 0% 3% 0% 0% 2% 0%

$19,953

$19,953

$19,703

$19,703

$19,703

$19,453

$19,453

$19,453

$237,940

61%

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$11,259

$11,259

$11,509

$11,509

$11,509

$11,759

$11,759

$11,759

$136,610

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$18,000 $118,610

29%

$35,583 $101,027

PS02_0FFWORLD ARCADE

115


APPENDIX A / Financial Details

Monthly Income Estimates NIGHTS OPERATING/MONTH

NIGHTS OPERATING/MONTH

22 22 22

22 22 22

RENTAL NIGHTS/MONTH

NIGHTS OPERATING/MONTH

# OF PATRONS

# OF PATRONS

22 22 22

5 10 15

PRETZ/NIGHT

100 200 400

12.5 25 50

AVG DRINK PRICE $5.00 $5.00 $5.00

NIGHTLY BAR REVENUE

PRICE OF PRETZ

NIGHTLY PRETZ REVENUE MONTHLY REVENUE $62.5 $1,375.00 $125 $2,750.00 $250 $5,500.00

$5.00 $5.00 $5.00

$500 $1,000 $2,000

COST OF RENTAL $1,500.00 $1,500.00 $1,500.00 # OF PATRONS

AVERAGE PRICE

RETAIL PIECES SOLD/MONTH AVERAGE PRICE 20

116

50 100 200

DRINKS/NIGHT

0 1 2

PIECES OF ART SOLD/MONTH

WORKSPACE

50 100 200

COST/CLASS

50 100 200

$100.00 $100.00 $100.00

GAMEPLAY/PERSON PRICE OF GAMEPLAY # OF GAMES 20 $0.25 20 $0.25 20 $0.25 % COMMISSION 35.00% 35.00% 35.00%

PS02_OFFWORLD ARCADE

MONTHLY REVENUE

$0.00 $1,500.00 $3,000.00

20 20 20

GAMING REVENUE

$250 $500 $1000

MONTHLY REVENUE $5,500.00 $11,000.00 $22,000.00 ART REVENUE

$175.00 $350.00 $525.00

MONTHL RETAIL REV $500.00

$25.00

$10.00

MONTHLY REVENUE $11,000.00 $22,000.00 $44,000.00

SEATS/CLASS

20

CLASSES/MONTH

4

WORKSPACE REV/MONTH $800


Monthly Expense Considerations NUMBER OF EMPLOYEES (Tipped)

NUMBER OF EMPLOYEES (Manager)

2

HOURS PER/NIGHT

1

10

NIGHTS/MONTH

10

22

PAY RATE

22

MONTHLY PAYROLL COST

$5.00

$15.00

$2200

$3300 TOTAL

$5500

OWNER SALARY

TOTAL

$7,500.00

INSTRUCTOR FEE

PER CLASS

$250

MARKETING/PROMOTING (Variable) $500.00 $750.00 $1,000.00 $1,250.00 MORTGAGE

Amount

UTILITIES

WATER/SEWER

MAINTENANCE

BUILDING/MONTH

OFFICE SUPPLIES & INTERNET

SUPPLIES COST/MONTH INTERNET COST/MONTH $100.00 $50.00

$100000

$100.00

$250.00

Length

ELECTRICAL

GAMES/MONTH

10 Yr Fixed

$750.00

$250.00

Intrest Rate

GAS

7%

$300.00

$1161.08 $3947.69

MONTHLY PAYMENT

MONTHLY UTILITIES COST $1,150.00 TOTAL MAINTENANCE COST $500.00 COST/MONTH

TRASH REMOVAL

COST/MONTH

LANDSCAPE

COST/MONTH

ENTERTAINMENT

COST/MONTH

BANK FEES

COST/MONTH BAR CLASS C LICENSE YEARLY COST $600.00

PERMITS - ONE TIME PROPERTY TAX

SUPPLY COSTS (Variable)

$1,500.00

$150

$150.00 $25.00 $500.00 $25.00

COST/MONTH

$50

MONTHLY TAXES

$1,000.00 % FOOD COST

20.00%

% BEER COST

20.00%

$83

MONTHLY FOOD/DRINK COST

INSURANCE

MONTHLY INSURANCE COST $850.00

PARKING LOT

MONTHLY COST

PS02_0FFWORLD ARCADE

$300

117


118

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120

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PS02


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