VIDEO GAME STORE BUSINESS PLAN

I. Executive Summary

Company Description

LevelUp Exchange (name chosen to reflect progression and community) launches in 2026 as a specialty retail business in the U.S. video game sector. We sell new and pre-owned video games, consoles, controllers, and accessories, and run a transparent trade-in program that prices offers in-store and online. Our store pairs retail with a staffed advice desk, hands-on demo stations, and a calendar of local tournaments and learning nights. We operate as a community hub focused on expert service and fair trade-ins. One-line: A retail-first, experience-driven game store built around fair trade and local events.

We target core and casual gamers aged 12–45, parents buying for kids, and collectors in mid-size urban and suburban markets. Short-term goals: open one flagship store in Q3 2026, reach break-even within 12 months, and sign 2,500 loyalty members in year one. Long-term goals: expand to 6 locations by 2029, add an ecommerce trade-in funnel, and host regional esports qualifiers. Key activities: inventory sourcing and refurbishment, in-store events, local marketing, and membership retention. One-line: Grow a sustainable, service-led retail chain that converts passion into repeat revenue.

Problem

The digital marketplace and big-box retailers do not provide a dedicated physical space where gaming communities can gather for hands-on demos, expert guidance, and local events. Customers cannot reliably test new or classic titles, face confusing online assortments, and lack a fair and transparent trade-in program. Gamers need a trusted, local place to play, learn, and trade.

Local communities also lack nearby venues for tournaments, launch parties, and community meetups, so passionate players either settle for impersonal online purchases or travel far for events. This gap is underserved by existing retailers and creates repeated, avoidable failures in discovery, valuation, and community engagement.

Solution

Local gamers face an impersonal online market, crowded big-box shelves, no reliable venues for competitive play, and inconsistent trade-in values. Our store fixes that with a curated retail space for new and pre-owned games and accessories, staffed by knowledgeable gamers who give tailored recommendations, a simplified trade-in program to ensure fair values, and regular in-store events that create a consistent community hub for competitive and social play.

One-liner: A local game store that buys, sells, advises, and hosts players in person.

Mission Statement

We create a trusted, premier physical space where local gamers discover new titles, compete, and receive expert guidance. We commit to exceptional service, engaging events, and lasting relationships that bridge digital convenience with real human connection. We operate with community focus, fair pricing, and responsible practices to strengthen local gaming culture.

Key Success Factors

Critical operational and market factors that will drive store performance and community standing.

• Visitor-to-buyer conversion ramping to 16% by 2030 through merchandising and staff-driven upsell.
• Repeat-customer base delivering 40% of new sales by year five via loyalty programs and trade incentives.
• Prime retail location sustaining high weekend foot traffic, peaking at 340 Saturday visitors.
• High-margin used games & accessories prioritized to protect gross margin and inventory turns.
• Robust event calendar positioning the store as a community landmark and driving repeat visits.

Financial Summary

Financials show rapid EBITDA recovery: from a loss in year one to strong profits by year five, with operational liquidity maintained above the minimum cash cushion.

The project requires initial capex and working capital covered by the funding plan; break-even occurs Feb-2027 (14 months), payback in 30 months, minimum cash position $816,000 (May-2027), with overall ROE 3.13% and IRR 7%.

Outlook: profitable growth with a clear path to cash neutrality and investor payback.

Funding Requirements

The total ask covers capex, launch, first-year losses, and the May‑2027 cash floor; we expect break-even in February 2027, EBITDA to grow from -$59,000 (year 1) to $1,801,000 (year 5), a 7% IRR, and a 3.13 ROE.