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Old December 30th, 2009, 12:42   #7
Brian McIlmoyle
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Join Date: Apr 2005
Location: Toronto
The Numbers

OK.. reality Check

Minimum cost for warehouse space $10/ year a square foot ( good luck finding it but it may be out there)

Minimum playable space = 5000 square foot - Rent = 50 000 / year
Heat and Hydro Minimum $500 a month = $6000
Start up costs - to build a playable environment = $5000
Insurance - $4000

Total year 1 costs = $65000 / $500 per member = 130 members Just to break even

you would need to find about 150 people willing to pony up $500 to become members AND GET THEIR MONEY before proceeding

Balance this against the typical Game cost of $20 per session People would need to be very active players to get their Monies worth .. 25 sessions in a year .. considering most players typically play about 6 to 10 times a year and at that level are considered "Active" players

you need to find 150 "hyper active" players willing to front $500 .. and commit to do it for 3 to 5 years ( because you will likely need to sign a lease )

in addition you will need to incorporate a company to hold this enterprise ( unless you want to take on the $150 000.00 nut that would be represented by the lease obligation )

it's a great idea .. but the reality is fraught with financial risk
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Brian McIlmoyle
TTAC3 Director
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Toronto Downtown Age Verifier

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