Pre-Feasibility Study

(Gaming Zone)

Small and Medium Enterprises Development Authority

Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road,
Lahore
Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7

helpdesk@smeda.org.pk
REGIONAL OFFICE
Punjab

REGIONAL OFFICE
Sindh

REGIONAL OFFICE
Khyber Pakhtunkhwa

REGIONAL OFFICE
Balochistan

3rd Floor, Building No. 3,

Aiwan-e-Iqbal Complex,
Egerton Road Lahore,
Tel: (042) 111-111-456
Fax: (042) 36304926-7
helpdesk.punjab@smeda.org.pk

5th Floor, Bahria

Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 35610572
helpdesk-khi@smeda.org.pk

Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 111-111-456
Fax: (091) 5286908
helpdesk-pew@smeda.org.pk

Bungalow No. 15-A

Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 2831623, 2831702
Fax: (081) 2831922
helpdesk-qta@smeda.org.pk

Note: All SMEDA Services / information related to PM's Youth Business Loan are Free of Cost
May, 2014

Pre-feasibility Study

(Gaming Zone Rs. 1.45 Million)

Table of Contents
1.
Disclaimer ............................................................................................................................ 1
2.
Purpose of the Document ..................................................................................................... 2
3.
Introduction to SMEDA ....................................................................................................... 2
4.
Introduction To Scheme ....................................................................................................... 2
5.
Executive Summary ............................................................................................................. 3
6.
Brief Description of Project& Product ................................................................................. 3
7.
Critical Factors in Decision Making .................................................................................... 3
8.
Installed & Operational Capacities....................................................................................... 4
9.
Geographical Potential for Investment ................................................................................. 4
10. Potential Target Markets & Cities ........................................................................................ 4
11. Project Cost Summary .......................................................................................................... 4
11.1. Project Economics ................................................................................................................ 4
11.2. Project Financing .................................................................................................................. 5
11.3. Project Cost .......................................................................................................................... 5
11.4. Space Requirement ............................................................................................................... 5
11.5. Machinery & Equipment Requirement ................................................................................ 6
11.6. Office Equipment Requirement............................................................................................ 6
11.7. Furniture & Fixtures Requirement ....................................................................................... 7
11.8. Human Resource Requirement ............................................................................................. 7
11.9. Revenue Generation ............................................................................................................. 7
11.10. Other Costs ........................................................................................................................... 8
12. Contacts Suppliers, Experts/Consultants ........................................................................... 8
13. Annexure .............................................................................................................................. 9
13.1. Profit & Loss Statement ....................................................................................................... 9
13.2. Balance Sheet ..................................................................................................................... 10
13.3. Statement of Cash Flow ..................................................................................................... 11
13.4. Useful Project Management Tips ....................................................................................... 12
13.5. Useful Links ....................................................................................................................... 13
14. Key Assumptions ............................................................................................................... 14

Pre-feasibility Study

(Gaming Zone Rs. 1.45 Million)

1. DISCLAIMER
This information memorandum is to introduce the subject matter and provide a general
idea and information on the subject. Although, the material included in this document is
based on data/information gathered from various reliable sources; however, it is based
upon certain assumptions which may differ from case to case. The information has been
provided on as is where is basis without any warranties or assertions as to the
correctness or soundness thereof. Although, due care and diligence has been exercised
to compile this document, the contained information may vary due to any change in any
of the concerned factors, and the actual results may differ substantially from the
presented information. SMEDA, its employees or agents do not assume any liability for
any financial or other loss resulting from this memorandum in consequence of
undertaking this activity. The contained information does not preclude any further
professional advice. The prospective user of this memorandum is encouraged to carry
out additional diligence and gather any information, which is necessary for making an
informed decision; including taking professional advice from a qualified
consultant/technical expert before taking any decision to act upon the information.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

Pre-feasibility Study

(Gaming Zone Rs. 1.45 Million)

2. PURPOSE OF THE DOCUMENT

The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs
in project identification for investment. The project pre-feasibility may form the basis of
an important investment decision and in order to serve this objective, the
document/study covers various aspects of project concept development, start-up,
operations, marketing, finance and business management.
The purpose of this document is to facilitate potential investors in the Gaming Zone
business by providing them with a general understanding of the business with the
intention of supporting potential investors in crucial investment decisions.
The need to come up with pre-feasibility reports for undocumented or minimally
documented sectors attains greater imminence as the research that precedes such
reports reveal certain thumb rules; best practices developed by existing enterprises by
trial and error, and certain industrial norms that become a guiding source regarding
various aspects of business set-up and its successful management.
Apart from carefully studying the whole document one must consider critical aspects
provided later on, which form the basis of investment decisions.

3. INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was established in
October 1998 with an objective to provide fresh impetus to the economy through
development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the national
income, through development of the SME sector, by helping increase the number, scale
and competitiveness of SMEs", SMEDA has carried out sectoral research to identify
policy, access to finance, business development services, strategic initiatives,
institutional collaboration and networking initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment has
been a hallmark of SME facilitation by SMEDA.
Concurrent to the prefeasibility studies, a broad spectrum of business development
services is also offered to the SMEs by SMEDA. These services include identification of
experts and consultants and delivery of need based capacity building programs of
different types in addition to business guidance through help desk services.

4. INTRODUCTION TO SCHEME
Prime Ministers Youth Business Loans program, for young entrepreneurs, with an
allocated budget of Rs. 5.0 billion for the year 2013-14, is designed to provide
subsidised financing at 8% mark-up per annum for one hundred thousand (100,000)

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

Pre-feasibility Study

(Gaming Zone Rs. 1.45 Million)

beneficiaries, through designated financial institutions, initially by the National Bank of

Pakistan (NBP) and the First Women Bank Ltd. (FWBL).
Loans from Rs. 0.1 million to Rs. 2.0 million with tenure up to8 years inclusive of 1 year
grace period and a debt: equity of 90: 10 will be disbursed to SME beneficiaries across
Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwah, Balochistan, GilgitBaltistan,
Azad Jammu &Kashmir and Federally Administered Tribal Areas (FATA).

5. EXECUTIVE SUMMARY
Gaming Zone is proposed to comprise of 8 gaming stations and will operate for a period
of 10 to 12 hours on daily basis. Proposed locations are Lahore, Islamabad, Karachi,
Peshawar, Quetta & other cities with easy internet access.
Total cost estimate of the project is Rs. 1.45 Million with a fixed investment of Rs. 1.22
Million and a working capital of Rs. 0.23 Million.
Given the cost assumptions IRR and payback are 63% and 2.14 years, respectively.
The most critical considerations or factors for success of the project are location,
environment, up-to-date games, technology and marketing.

6. BRIEF DESCRIPTION OF PROJECT& PRODUCT

Technology: Up to date computer servers and games, networking equipment,

gaming stations and trained staff.

Location: Lahore, Islamabad, Karachi, Peshawar, Quetta & other cities with
easy internet access.

Product: Up to date games and online tournaments.

Target Market: The project proposes to draw in local youngsters as the prime
target market.

Employment Generation: Direct employment to 2 people. Financial analysis

shows the unit shall be profitable from the very first year of operation.

7. CRITICAL FACTORS IN DECISION MAKING

Since computers and related equipment are proposed to be replaced after 3

years, therefore, it is assumed that with every purchase of equipment, the project
will generate sufficient cash to finance the activity.

Suitable location to attract maximum customers.

Variety of games for every age group.

Use of up-to-date gaming stations with latest equipment.

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

Pre-feasibility Study

(Gaming Zone Rs. 1.45 Million)

Marketing and awareness.

8. INSTALLED & OPERATIONAL CAPACITIES

The pre-feasibility proposes eight (8) computer stations/game stations, with 75%
capacity utilization in the first year of its operations.

9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT

The project intends to cater the demand of online gamers reasonably in a location with
potential demand, availability of infrastructure and comparatively a populated area. The
proposed project primarily focuses on young individuals and will highly depend on LAN
tournaments held at both national and international level in the potential cities as
Karachi, Islamabad, Lahore, Peshawar &Quetta and other major cities in the country.

10.

POTENTIAL TARGET MARKETS & CITIES

Potential cities are Karachi, Islamabad, Lahore, Peshawar& Quetta and other major
cities in the country.
The project proposes youngsters (between ages 15 to 25 years) as the primary target
market, however, with the inclusion of tournaments the target market will widen.

11.

PROJECT COST SUMMARY

A detailed financial model has been developed to analyze the commercial viability of
Gaming Zone under the Prime Ministers Youth Business Loan program. Various cost
and revenue related assumptions along with results of the analysis are outlined in this
section.
The projected Income Statement, Cash Flow Statement and Balance Sheet are
attached as annexure.

11.1.

PROJECT ECONOMICS

The project proposes eight (8) computer stations/ game stations. After the project`s
maturity and especially during the tournaments the gaming zone could entertain a wider
base as required. The following table shows internal rate of return and payback period.
Table 1: Project Economics
Description

Details

Internal Rate of Return (IRR)

63%

Payback Period (Years)

2.14

Net Present Value (NPV)

(Rs)9,368,465
Returns on the investment and its profitability are highly dependent on the environment,
therefore, it is recommended to provide a pleasing experience to customers for latest
and on demand LAN gaming, internet, refreshment services, etc.

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

Pre-feasibility Study

11.2.

(Gaming Zone Rs. 1.45 Million)

PROJECT FINANCING

Following table provides details of the equity required and variables related to bank
loan:
Table 2: Project Financing
Description
Total Equity (10%)
Bank Loan (90%)
Markup to the Borrower
Tenure of the Loan (Years)
Grace Period (Year)

11.3.

Details
Rs. 144,796
Rs.1,303,161
8%
8
1

PROJECT COST

Following requirements have been identified for the proposed business.

Table 3: Project Cost
Capital Investment

Amount (Rs.)

Land
Building/Infrastructure
Machinery & Equipment
Furniture & Fixtures
Office Equipment
Pre Operating Cost
Total Capital Cost
Upfront Building Rent
Cash
Working Capital
Total Project Cost

11.4.

88,750
705,000
327,500
31,000
66,194
1,218,444
112,500
117,013
229,513
1,447,957

SPACE REQUIREMENT

Keeping in view the project potential, the project is proposed to be established in a

constructed area of approximately 625 sq. ft. The premise is to be acquired on rent,
whereas, minor civil works are proposed to be as under:
Table 4: Space Requirement
Space Requirement
Quantity
Cost /
/ Area
Rate
(Sq. ft.)
(Rs.)
Office Room
50
150
Game Cubicles
400
150
Washroom
100
100
Refreshment Area
75
150
Total Infrastructure
625

Amount
(Rs.)
7,500
60,000
10,000
11,250
88,750

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

Pre-feasibility Study

11.5.

(Gaming Zone Rs. 1.45 Million)

MACHINERY &EQUIPMENT REQUIREMENT

Details of machinery &equipment required for the project are given below, it is to be
noted that life of the equipment is proposed to be 3 years, after which the equipment is
to be replaced:
Table 5.1: Machinery &Equipment
Description
Computer server
Computers (with headphones,
accessories, etc.)
UPS batteries
Generator (3 KVA)
UPS (3 KVA)
Total

Quantity
1
8

Cost (Rs./unit)
120,000
55,000

Total (Rs.)
120,000
440,000

15,000
50,000
35,000

60,000
50,000
35,000
705,000

4
1
1

Networking is an essential part of gaming zone. Keeping in view the requirement,

Client-Server based networking is recommended. The key features of Client-Server
based networking are as under:
All data stored in one location.

Easier to backup and locate files and data.

Software and hardware optimized for multiple users.

One machine can secure entire network.

One central login.

Easy to add new resources.

11.6.

OFFICE EQUIPMENT REQUIREMENT

Details of the office equipment required for the project are given below:
Table 6: Office Equipment Detail
Description

Telephone
Computer (for admin)
Total

Quantity

1
1

Cost
Rs. /
Unit
1,000
30,000

Total
(Rs.)
1,000
30,000
31,000

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

Pre-feasibility Study

11.7.

(Gaming Zone Rs. 1.45 Million)

FURNITURE & FIXTURES REQUIREMENT

Furniture & fixtures requirement for the project is detailed as under:

Table 7: Furniture & Fixture Detail
Description
Unit
Cost
Rs./Unit
Chairs
9
2,500
Computer Tables
10
5,000
Wall Fans
10
2,000
Electric Wiring, etc.
1
30,000
ACs (1.5 ton window)
2
50,000
Networking
1
100,000
Lighting (tube lights)
10
500
Total

11.8.

Total
(Rs.)
22,500
50,000
20,000
30,000
100,000
100,000
5000
327,500

HUMAN RESOURCE REQUIREMENT

Manpower required for operating the Gaming Zone Center is as follows:

Description

Table 8: Human Resource Detail

No. of
Employees

Owner / Manager (IT)

Peon / Assistant
Total

1
1
2

Salary per
employee per
month (Rs.)
20,000
12,000
32,000

Staff salaries are estimated as per market trends, however, they may be set on different
pay scales. Salaries of all employees are estimated to increase at 10% annually.

11.9.

REVENUE GENERATION

The gaming zone is to carry 8 gaming stations; it is assumed that one game including
lag time is to last for 3 hours thereby allowing 4 people to play per day on one gaming
station. However, the project is to begin its operations with 75% capacity utilization
building up over a period of ten years to 95% utilization. Revenue details for Year 1 are
as follows:
Capacity
Year 1
8,400

Table 9: Revenue Detail

Production Revenue /
Capacity
Game (Rs.)
11,200
250

First Year
Revenue(Rs)
2,100,000

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

Pre-feasibility Study

11.10.

(Gaming Zone Rs. 1.45 Million)

OTHER COSTS

The primary overhead cost of the project would be utilities such as building rent,
electricity, gas, water and fuel costs, keeping in mind the expenses for generator. For
details please refer to table titled Expense Assumptions.

12.

CONTACTS SUPPLIERS, EXPERTS/CONSULTANTS

Contact information of major key players / tournaments can be accessed from
the following web links:
http://www.pakgamers.com/
http://universalgamingarena.webs.com/
http://www.ebloggy.net/2008/09/25/wateen-telecom-pakistans-online-counterstrike-game-servers-list.html

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

Pre-feasibility Study

13.

(Gaming Zone Rs. 1.45 Million)

ANNEXURE

13.1.

PROFIT & LOSS STATEMENT

Statement Summaries

SMEDA

Income Statement
Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Rs. in actuals
Year 10

2,100,000
936,000
1,164,000

2,737,000
1,029,600
1,707,400

3,517,850
1,132,560
2,385,290

4,045,528
1,245,816
2,799,712

4,652,357
1,370,398
3,281,959

5,350,210
1,507,437
3,842,773

6,152,742
1,658,181
4,494,561

7,075,653
1,823,999
5,251,654

8,137,001
2,006,399
6,130,602

9,357,551
2,207,039
7,150,512

General administration & selling expenses

Administration expense
Rental expense
Utilities expense
Promotional expense
Depreciation expense
Amortization expense
Miscellaneous expense
Subtotal
Operating Income

337,500
240,000
42,000
282,521
13,239
60,000
993,260
170,740

371,250
264,000
54,740
282,521
13,239
66,000
1,071,550
635,850

408,375
290,400
70,357
282,521
13,239
72,600
1,159,272
1,226,018

449,213
319,440
80,911
363,726
13,239
79,860
1,330,346
1,469,366

494,134
351,384
93,047
363,726
13,239
87,846
1,429,730
1,852,229

543,547
386,522
107,004
363,726
96,631
1,526,420
2,316,353

597,902
425,175
123,055
471,810
106,294
1,756,124
2,738,437

657,692
467,692
141,513
471,810
116,923
1,890,708
3,360,946

723,461
514,461
162,740
471,810
128,615
2,039,673
4,090,929

795,807
565,907
187,151
615,671
141,477
2,348,456
4,802,056

Gain / (loss) on sale of assets

Earnings Before Interest & Taxes

170,740

635,850

73,600
1,299,618

1,469,366

1,852,229

97,962
2,414,315

2,738,437

3,360,946

130,387
4,221,316

520,635
5,322,690

Interest expense
Earnings Before Tax

108,162
62,579

99,023
536,827

87,012
1,212,606

74,004
1,395,362

59,916
1,792,313

44,659
2,369,655

28,136
2,710,301

10,241
3,350,705

4,221,316

5,322,690

Tax
NET PROFIT/(LOSS) AFTER TAX

62,579

536,827

1,212,606

1,395,362

123,128
1,669,185

233,288
2,136,367

261,235
2,449,066

291,612
3,059,093

324,542
3,896,773

360,762
4,961,929

Balance brought forward

Total profit available for appropriation
Dividend
Balance carried forward

62,579
62,579

62,579
599,406
599,406

599,406
1,812,012
1,812,012

1,812,012
3,207,374
3,207,374

3,207,374
4,876,559
4,876,559

4,876,559
7,012,927
7,012,927

7,012,927
9,461,993
9,461,993

9,461,993
12,521,086
12,521,086

12,521,086
16,417,859
16,417,859

16,417,859
21,379,788
21,379,788

Revenue
Cost of goods sold
Gross Profit

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

Pre-feasibility Study

13.2.

(Gaming Zone Rs. 1.45 Million)

BALANCE SHEET

Statement Summaries

SMEDA

Balance Sheet
Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Rs. in actuals
Year 10

201,388
229,513

556,914
587,852

1,228,012
1,262,043

1,492,243
1,529,678

2,959,290
3,000,468

4,734,668
4,779,964

5,639,143
5,688,968

8,200,597
8,255,405

11,223,961
11,284,249

13,386,714
13,453,031

18,272,085
18,272,085

Fixed assets
Building/Infrastructure
Machinery & equipment
Furniture & fixtures
O Educational Tools
Total Fixed Assets

88,750
705,000
327,500
31,000
1,152,250

84,313
470,000
294,750
20,667
869,729

79,875
235,000
262,000
10,333
587,208

75,438
938,355
229,250
41,261
1,284,304

71,000
625,570
196,500
27,507
920,577

66,563
312,785
163,750
13,754
556,851

62,125
1,248,951
131,000
54,918
1,496,994

57,688
832,634
98,250
36,612
1,025,183

53,250
416,317
65,500
18,306
553,373

48,813
1,662,353
32,750
73,096
1,817,012

44,375
1,108,235
48,731
1,201,341

Intangible assets
Pre-operation costs
Legal, licensing, & training costs
Total Intangible Assets
TOTAL ASSETS

66,194
66,194
1,447,957

52,955
52,955
1,510,536

39,716
39,716
1,888,967

26,477
26,477
2,840,459

13,239
13,239
3,934,284

5,336,815

7,185,962

9,280,588

11,837,622

15,270,043

19,473,427

Assets
Current assets
Cash & Bank
Pre-paid annual land lease
Total Current Assets

Liabilities & Shareholders' Equity

Current liabilities
Total Current Liabilities

Other liabilities
Long term debt
Total Long Term Liabilities

1,303,161
1,303,161

1,303,161
1,303,161

1,158,448
1,158,448

1,001,724
1,001,724

831,992
831,992

648,172
648,172

449,095
449,095

233,495
233,495

Shareholders' equity
Paid-up capital
Retained earnings
Total Equity
TOTAL CAPITAL AND LIABILITIE

144,796
144,796
1,447,957

144,796
62,579
207,374
1,510,536

144,796
585,723
730,519
1,888,967

144,796
1,693,939
1,838,735
2,840,459

144,796
2,957,496
3,102,292
3,934,284

144,796
4,543,847
4,688,643
5,336,815

144,796
6,592,072
6,736,867
7,185,962

144,796
8,902,298
9,047,093
9,280,588

144,796
11,692,826
11,837,622
11,837,622

144,796
15,125,248
15,270,043
15,270,043

144,796
19,328,631
19,473,427
19,473,427

Note: Total assets value will differ from project cost due to first installment of leases paid at the start of year 0
-

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

10

(0)

Pre-feasibility Study

13.3.

(Gaming Zone Rs. 1.45 Million)

STATEMENT OF CASH FLOW

-

(0)

Statement Summaries

SMEDA

Cash Flow Statement

Operating activities
Net profit
Add: depreciation expense
amortization expense
Cash provided by operations

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Rs. in actuals
Year 10

(28,125)

62,579
282,521
13,239
355,526

523,145
282,521
13,239
815,810

1,108,216
282,521
13,239
1,400,572

1,263,557
363,726
13,239
1,636,779

1,586,351
363,726
13,239
1,959,198

2,048,224
363,726
2,407,421

2,310,226
471,810
2,777,054

2,790,529
471,810
3,256,859

3,432,421
471,810
3,898,203

4,203,384
615,671
4,885,371

(144,713)
(144,713)

(156,724)
(156,724)

(169,732)
(169,732)

(183,820)
(183,820)

(199,077)
(199,077)

(215,600)
(215,600)

(233,495)
(233,495)

Financing activities
Change in long term debt
Add: land lease expense
Land lease payment
Cash provided by / (used for) financing a

1,303,161
1,447,957

Investing activities
Capital expenditure
Cash (used for) / provided by investing a

(1,218,444)
(1,218,444)

(979,616)
(979,616)

(1,303,869)
(1,303,869)

(1,735,450)
(1,735,450)

NET CASH

201,388

355,526

671,097

264,232

1,467,047

1,775,378

904,475

2,561,454

3,023,364

2,162,753

4,885,371

Cash balance brought forward

Cash available for appropriation
Dividend
Cash carried forward

201,388
201,388

201,388
556,914
556,914

556,914
1,228,012
1,228,012

1,228,012
1,492,243
1,492,243

1,492,243
2,959,290
2,959,290

2,959,290
4,734,668
4,734,668

4,734,668
5,639,143
5,639,143

5,639,143
8,200,597
8,200,597

8,200,597
11,223,961
11,223,961

11,223,961
13,386,714
13,386,714

13,386,714
18,272,085
18,272,085

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

11

Pre-feasibility Study

13.4.

(Gaming Zone Rs. 1.45 Million)

USEFUL PROJECT MANAGEMENT TIPS

Technology

List of Machinery & Equipment

1. Computer Server
2. Computers
3. UPS& Generator

Energy Requirement: Not to be overestimated or installed in excess and alternate

source of energy for critical operations to be arranged in advance.

Machinery Suppliers: Training and after sales services may under the contract with the
machinery suppliers.

Marketing

Ads & P.O.S. Promotion: Business promotion and dissemination through banners and
launch events is highly recommended. Product brochures from good quality service
providers should be procured.

Sales: Expert advice on sales techniques should be sought.

Price - Bulk Discounts, Cost plus Introductory Discounts: During the introductory
phase price may be lower and used as a promotional tool. Cost estimates should be
carefully documented before price setting.

Human Resources

Adequacy & Competencies: Skilled and experienced staff should be considered an

investment to the extent of offering share in business profit.

Performance Based Remuneration: Cost should be focused through performance

measurement and performance based compensation.

Training & Skill Development: Training and skill development of employees and
exposure to best practices. Least cost options for Training and Skill Development
(T&SD) may be linked with compensation benefits and awards.

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

12

Pre-feasibility Study

13.5.

(Gaming Zone Rs. 1.45 Million)

USEFUL LINKS

Prime Ministers Office

www.pmo.gov.pk
Small & Medium Enterprises Development Authority (SMEDA)
www.smeda.org.pk
National Bank of Pakistan (NBP)
www.nbp.com.pk
First Women Bank Limited (FWBL)
www.fwbl.com.pk
Government of Pakistan
www.pakistan.gov.pk
Ministry of Industries & Production
www.moip.gov.pk
Government of Punjab
www.punjab.gov.pk
Government of Sindh
www.sindh.gov.pk
Government of Khyber Pakhtoonkhwa
www.khyberpakhtunkhwa.gov.pk
Government of Balochistan
www.balochistan.gov.pk
Government of GilgitBaltistan
www.gilgitbaltistan.gov.pk
Government of Azad Jamu Kashmir
www.ajk.gov.pk
Trade Development Authority of Pakistan (TDAP)
www.tdap.gov.pk
Security Commission of Pakistan (SECP)
www.secp.gov.pk
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
www.fpcci.com.pk

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

13

Pre-feasibility Study

14.

(Gaming Zone Rs. 1.45 Million)

KEY ASSUMPTIONS

Project Capacity Assumptions

Description
Number of game stations
Assumed days of operation in one year
Assumed hours of operation per day
Assumed capacity utilization in Year 1
Assumed growth in capacity utilization
Maximum attainable capacity

Details
8
350
12
75%
10%
95%

Revenue Assumptions
Description

Details

Charge/ game

Rs.250

Charge growth rate / year

15%

Economic Assumptions
Description

Details

Electricity
Gas
Water
Salary

10%
10%
10%
10%

Expense Assumptions
Description

Details

Electricity per month

Internet connection charges per month
Games / CD costs per month
Generator running expense per month
Miscellaneous expense per month
Promotional expense (%age of revenue)
Machinery & equipment insurance rate
Depreciation method

SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST -

20,000
20,000
5,000
21,000
5,000
2%
5%
Straight line

14