RETRO VIDEO GAME STORE BUSINESS PLAN

I. Executive Summary

Company Description

Epoch Arcade—named for the golden era of gaming—launches in Austin, Texas in 2026 as a specialty retail store in the video game collectibles sector. We sell and trade classic titles and consoles, operate a professional refurbishment workshop, and run an on-site event space for tournaments, meetups, and product drops. Our model is hands-on: customers can inspect gear in person, request expert refurbishment, trade with on-premise valuation, and attend community events. One-liner: a trusted, in-person destination for retro game collectors and fans.

We position ourselves as a premium alternative to unreliable online marketplaces by offering certified refurbishment, in-store testing, transparent condition grading, and a staffed valuation desk. Target customers are collectors and enthusiasts aged 25–55, local hobbyists, and parents buying nostalgia-driven gifts. Short-term goals: open in 2026, establish steady trade-in volume, and reach consistent monthly foot traffic and sales. Long-term goals: become the regional flagship for retro gaming, grow recurring membership services, and add an online storefront for curated, certified inventory. One-liner: quality, verification, and community replace risk and uncertainty.

Problem

Retro game buyers face rampant counterfeit and mislisted items, frequent receipt of non-working hardware, scarce places to test and inspect products, and high return friction on digital marketplaces.

There is no trusted, tangible destination that guarantees authentic, functioning vintage gaming hardware.

Based in Austin, Texas and launching in 2026, our specialty retail store with a retail floor, professional refurbishment workshop, and event space fills this gap by offering a premium, hands-on alternative supported by professional management and specialized technical staff.

Solution

The digital era has fragmented the vintage gaming market, leaving buyers exposed to fakes, nonfunctional hardware, and no reliable local community. Our retail location in Austin, Texas, solves that gap by offering a single, curated destination that guarantees working retro games and consoles and provides a physical space for fans to meet and play.

We sell certified, fully tested products, provide hands-on demo stations, run monthly tournaments and trade days, and offer in-store repair and technical support — certified products, hands-on demos, community events, and in-store repairs. One clear outcome: customers leave with verified, working gear and access to a local vintage-gaming community.

Mission Statement

Our mission is to preserve and celebrate the history of video games by providing a trusted community hub where players can discover, purchase, and enjoy guaranteed-to-work classic titles and consoles. We build a vibrant local gaming culture through expert service, authentic in-store experiences, and regular events that connect generations. We commit to quality, honesty, and shared play—making nostalgia accessible while treating every game and customer with care.

Key Success Factors

These measurable factors must hold to meet revenue, retention, and break-even targets.

• Guaranteed-to-work product promise that builds essential customer trust and reduces purchase friction.
• 8%–16% visitor-to-buyer conversion sustained across stores to drive top-line growth.
• 45% repeat customer rate by 2030 to secure lifetime value and steady revenue.
• Community events generating 10% of revenue by year five to boost acquisition and loyalty.
• Disciplined cost control: 10% inventory acquisition cost and $3,000 monthly rent to achieve 2028 break-even.

Financial Summary

Key financial milestones: launch in 2026 with initial EBITDA of -$150,000, break-even in February 2028, and positive EBITDA of $112,000 in 2028.

Financial requirements: initial capital expenditures of $55,000 and a minimum cash runway peaking at a forecasted low of $574,000 (Apr‑2028); performance targets imply an IRR of 2% and a long‑term Return on Equity of 0.66.

The outlook is constrained early but clear: break‑even at 26 months and payback by month 51, leading to sustained positive EBITDA by 2028.

Funding Requirements

The business requires $891,000 in total funding to launch in Jan-2026, reach break-even in Feb-2028 (26 months), and achieve full payback in 51 months; initial EBITDA is -$150,000 (2026), flips to +$112,000 by 2028, and reaches $649,000 by 2030 with a projected Return on Equity of 0.66, revenue diversified across used games, consoles, accessories, and event fees, and a minimum cash balance of $574,000 forecast for Apr-2028.