Innovational Amusement ParkAmazing Run Entertainment Inc.

aMAZEing Adventure

Park

Management Team

• CEO• 0033612937804• m.wang@stud.isg.fr• International Business School, Paris 2014

• LinkedIn Profile

Tiffany(Miao) Wang

• CFO• (248)707-4143• Ronanzhong@outlook.com

• University of Detroit (Mercy) 2013

• LinkedIn Profile

Ronan(Yi) Zhong

• CMO• (917)855-1670• yg791@nyu.edu• New York University 2014

• LinkedIn Profile

Michael(Yecheng) Gao

• COO• (816)703-8623• qlwt2@mail.umkc.edu• University of Missouri KC 2014

• LinkedIn Profile

Flora(Qinglei) Lin

Why we build this business?

Nowadays, people are under kinds of pressures, life, work, study. They are crazy to find ways to self release. Adventure park and amusement park are popular choices for the group of people, while there are some shortcomings in both parks. We build our aMAZEing RUN park based on maze game, combining with adventure factors and video game or movies plots.

It perfectly meets people’s needs who live in NYC and surroundings want to relax and have fun in leisure times.

Vision:

•Addicted to breakthrough traditional leisure entertainment style, create brand new real person maze adventure game with creative perspectives. Devoted to give customers perfect unique experiences which combined physical & intellectual challenges, individual and group participation. Releasing yourself, unleash your potential. Based in NYC, aim to across the world!

•We are committed to being a creative leader in the new market and becoming the truly No.1 in the market and relative industry; Best entertainment experiences for customers; Best company for investors.

Objectives:

•Brand Image: Reach a high level of reputation and awareness as Universal Studio

•Service people over American east coast areas where population density is big in 5 years.

Start-up Vision & Objective

Why

HowWhat

Snapshot of Business Idea

For everything we do, we believe we can make great virtual games into reality and create life long memory of maze adventure experiences for our audience!

We make great design, offer great food and provide great service!

aMAZEing Adventure Park

HOW WE DO?

WHY WE DO?

WHAT WE DO?

Business model

• To provide unprecedented real person maze adventure games, cooperate with Video or mobile game companies (Inspiration & design), meet individual, families, companies and groups trip or activities needs, periodically update, hardly imitate. Your life long amazing experience start from aMAZEing Run!

Highlights: Unprecedented, creative, Maze adventure, individual & group activity, Totally new entertainment style.

Business Model Canvas

Executive Summary

Problem statementHuge initial investment, big marketing money needed.

SolutionCooperate with mobile game companies and TVs.

Reaso

n1 Save money.

Inspiration sources are from the games. Their fans would like to try the real person challenge game.

Reaso

n2 Accurate

marketing. Gamers would be crazy about it. They are one of the main customer of us.

Reaso

n3 Cooperate

with TVs, YouTube, make it a show.

Make it on air, easy to spread, easy to educate customers.

Why

• Invest our early money in Marketing to attract investors or partners.

• Big input, big output.

Painkiller

• Attend investment conference as more as we can. Build up our network.

• Never ever let a chance go.Vitamin

Executive Summary

• How will the customers benefit from your solution?Customers will learn our park directly, and totally attracted by the creative way of entertainment! • What is the compelling advantage of your solution? Company will get feedbacks very soon. The effect would be prominent. The tickets sales will dramatically rise in the advertising periods.The flaws is the marketing will not be so accurate (On TV), viewers may not buy it.The ad should made by pros to be more attractive.

• Are there any intellectual property or regulation issues related to your project? Who owns the intellectual property? We got talent 4 members which are from different areas of China, study all over the world, and working on different majors. Diversity is the greatest advantage!

Identify Business

Opportunity

Political

● Government support the expansion of amusement park business due to tourism appeal

● Local government are more in favor of maze amusement park due to its smaller size and less pollution.

Economical

● The amusement park business has recovered from recession.

● America’s passion for amusement parks or adventure parks is white-hot these days, driven by increased disposable income.

● Maze amusement park has become more and more popular for its low cost and time-flexibility.

Social

● Family entertainment  that all ages can participate in and enjoy as individuals or as a group has become a social trend.

● Dramatic growth of the 16 to 35 years old population which enjoy  adventure and self challenge.

● Maze adventure gained awareness due to the big hit of mobile app “Temple Run”

Technological

● New technologies that amusement parks utilize can help manage crowds, improve child safety and put more and more elements in a limited space.

Environmental

● Unlike the regular amusement park industry which require huge swaths of land as well as large supplies of energy and water, maze amusement park is more environmental-friendly and meet the going green social trends.

Legal

● Legal legislation highly concentrate on personal safety. For maze amusement park, tracking system and staff training can be easier to execute.

Target Market

Target AudienceDemographics 16-35 Young Millennial Live in NYC and surrounding areasPsychographic Sports fans Interested in adventures Standing in the front of trends Audience Segmentation•Students (freshmen): 16-24•Workers (freshmen): 24-35•Family: 10-45Market Segmentation

AMUSEMENT PARK FEATURES ON MAZE ADVENTURE,

BRAIN AND PHYSICAL CHALLENGE EXPERIENCESMarket PositioningPosition Statement: To 16-35 young Millennial who are interested in adventures and seeking real-life physical challenge, our aMAZEing Adventure Park is the amusement park that will provide them with the life long memory of maze adventure, brain and physical challenge experiences!

Market Size and Growth RateIn 2012, The market size of New York amusement park is $70millions compared with New Jersey $144 millions.

And the amusement park industry in New York is growing on an average of 4% per year since 2007.

Market Size ($ millions)

$57.53 $59.84 $64.72 $67.31 $70

Market structure: Prefect competition

No great barriers, monopole of huge amusement park

Questionnaire Analysis

Sample Size: 101 Target Audience: 16-35 people currently live in New York Methodology: Both Online and Offline

Amusement Park 35%

Famous Spot 35%

Bars, Clubs

Others

Customer preference

22%

18%60%

Project Feasibility

Acceptable 22

No 18

Yes 61

29%

24%

48%

Maze Game Feasibility

Acceptable 29No 24Yes 48

Porter’s five forces analysis

Bargaining power of Suppliers (medium)

Main suppliers: Equipment makers, entertainment & Game companies-Potential high prices charged on copyright from Video game company and movie makers-Special made gaming equipment increase the manufacturers’ bargaining power-High amount of merchandising-Affordable switching cost

Threat of New Entrants (& the attendant barriers to entry)

(medium)-Huge initial investment & marketing campaign expenditures -Costs a lot of money & energy to design game-Disney, Universal studio almost dominate the Market, it builds barriers for new entrants

-Customized games could be a double edged sword.

Bargaining power of Customers (low)- Buyers are end consumers, their power is low as prices are controlled by theme parks. - Creative or innovational games could attract consumers who doesn’t care about prices.

Threat

of Substitutes

(low)- Existing games: Paintball games, laser shooting games- New coming: escape the room, etc. - Other substitutes like zoos, museums which don’t match the adventure park experiences.

Competitive Rivalry within an Industry (Intense)

-Competitors: theme parks, paintball games, laser tag, etc.-Industry leaders hold the main resources, the market, the promotion & supply channel.-Real person games (like paintball) become more crazy and attractive-Huge R & D investment

SW

OT a

naly

sis

Strength- Excellent group members, 4 people from different areas in USA, even Europe- Innovational and creative start-up project. - Network advantage. - Diversity. We designed our game challenge in kinds of ways, some idea come from video games, some come from movies, and different traditional cultures. - Flexibility. The adventure game are divided into 5 chapters (levels), each one is special and unique.

Weakness- Lack of fund.- Team members are inexperience in real careers. - Due to the high land rental charge, available locations are limited.- Short of hands. - Maybe a long time needed for market acceptance.- Customer range is not so wide but it is not a big deal.

Opportunities- Real person games are becoming more and more popular in USA.- Unique and unprecedented experiences.- The economic condition is coming back in USA- People living in NY area are under huge mental and physical pressures. - Realize your hero dreams. - Corporate with kinds of video companies and entertainment companies could speed our program. Also, TVs, Apps, etc.

Threats- Risk of park related accidents. - Theme park insurance is very expensive. - Strong competition in relative industry. - Intellectual property is necessary to provide unique themes and experiences. - Imitators are coming soon.

Direct competitors: Maze parks and adventure parks in the New York and surrounding areas are our direct competitors. Indirect competitors:The Amusement parks like Disney land, universal studio, cedar point.

Our competitive advantages are obvious. We combine all advantages from maze parks and amusement parks. Firstly, we pioneered the adventure park build on mazes. The whole adventure park is built on the maze map. It is full of adventure and fun. Secondly, keeping constantly updated instead of same games all the time like Disney land. It keeps changing according to the most popular app games and famous movies. Thirdly, the target audiences of maze parks are children while we expand our target audiences to 16-35 young millennial. Moreover, combing with the design of indoor and outdoor, so it could be still worked during bad weather.

Competition Advantages

Value chain partners

First, the environment, it includes the universities in the New York and surrounding areas.

We will organize the specific project for orientation in Universities. it will be the best place to choose to know about each other. Second, the companies are also our value chain

partners. We support staff training for companies.

These two kinds of partners guaranteed our customers. We also have the designers for our games, it guaranteed the supply chain.

Start-up Process

Business Operation Flow Control environment – Ethical values, quality of

personnel, direction provided by the board and effectiveness of management.

Risk assessment – Identification and analysis of risks underlying the achievement of objectives.

Control activities – A diverse range of policies and procedures that help to ensure management directives are carried out.

Information and communication – Effective processes and systems that identify, capture and report operational, financial and compliance.

Monitoring – A process that assesses the adequacy and quality of the internal control system’s performance over time.

Product:• Our amusement

park is based on maze and there are five chapters in it. People enter our park and they can experience all or part of them. people who pass all levels and use the least time will be the winner and be rewarded.

Maze amusement park overview

Marketing Entry strategy -- 4Ps

Game Details

• Key activities: Combine the maze game and the

most popular App games, Video game factors, adding some Chinese elements and movie plots. we are designing creative adventure experiences to make you realize your hero dreams. It includes five chapters. Game elements could be like:

“Iron man”

“Chinese Kong Fu”

“Temple run”

“Draw something”

“Angry bird”

• Special Galas: To attract more

people and have long customers retention. We are about to add some activities like:

Campfire party Camping Staff training Bar Cleaning mind

Business hour: Weekdays 10am~10pm Weekend 8am~10pmGame level setting: 5 levels (chapters)Location: NYC Suburb

aMAZEing Adventure Park

Price :General Ticket :

$40/person (Get from our market surveys

includes all maze games)

Campfire party + Camping :

$30/person/night

Place: • Corporations with Travel

Company, Schools and Hotels around NYC and surrounding areas.

• Smart phone app promotion.

• Websites and local presses.

Marketing Entry strategy -- 4Ps

Promotion:

NYC and surrounding areas are the key point of our promotion location.

Cooperate with local presses and TVs, word of mouth could be the effective ways to elevate our program.

• Organize public relations campaign and branding events with student union of universities in NYC and surrounding areas.

(Spring & Fall could be the best time to official running)

• Organize staff training programs with companies. • Advertising in smart phone app.• Network Marketing• Post posters and slogans in NY subway station. • Setting baskets with our brochures in subway station, hotels and schools.• Advertising in TV• Player Rewards

Marketing Entry strategy -- 4Ps

Use of funds

Technique

Construction

Equipment

(Change/updat

e)

Game`s design

Marketing

Advertising/

Promotion

Site Internet

Market research

HR

Salary

Train

Administration(finan

ce)

Function

Liquid

Start-up Expenses to Fund

$114,786

Start-up Assets to Fund

$2,638,964

(Include: direct construction cost)

$75,000

Total Funding Required

$2,753,750

Fund Requirements (Compare with Model of Wasatch Family Fun Centre)

Construction: 5 acre without subventions (20,000㎡ )

Initial investment

Start Year 1 2 3 4 5

Investment (2,753,750)          

Average revenue/person

$50          

Nb per/day   80 100 120 120 150

Nb per/year 360d/year 28,800 36,000 43,200 43,200 54,000

Total revenue   1,440,000 1,800,000 2,160,000 2,160,000 2,700,000

Total Operating Expenses

  400,000 450,000 700,000 750,000 800,000

Profit before taxes and intersts

  1,040,000 1,350,000 1,460,000 1,410,000 1,900,000

Taxes and Interests

33%+10% 447,200 580,500 627,800 606,300 817,000

Net profit   592,800 769,500 832,200 803,700 1,083,000

Discount rate 10.00%          

Combianation Valuation

(2,753,750) 592,800 769,500 832,200 803,700 1,083,000

NPV 267,749          

Cumulative CF

(2,753,750) (2,160,950) (1,391,450) (559,250) 244,450 1,327,450

Financial Analysis (5 years period)

Profit and Loss  Year 1 Year 2 Year 3 Year4 Year 5

Sales 1,440,000 1,800,000 2,160,000 2,160,000 2,700,000

Direct Cost of

Sales

500,000 600,000 600,000 700,000 1,000,000

Operations

Payroll

150,000 200,000 250,000 250,000 450,000

Total Cost of

Sales

650,000 800,000 850,000 950,000 1,450,000

Sales and

Marketing

Payroll

25,000 30,000 30,000 30,000 35,000

Advertising/

Promotion

9,000 9,000 15,000 15,000 15,000

Total Sales and

Marketing

Expenses

34,000 39,000 45,000 45,000 50,000

General and

Administrative

Payroll

80,000 90,000 150,000 150,000 200,000

Utilities 7,000 7,000 11,000 12,000 12,000

Insurance 7,000 7,000 12,000 12,000 13,000

Total General and

Administrative

Expenses

94,000 104,000 173,000 174,000 225,000

Other Payroll 35,000 40,000 80,000 80,000 90,000

Housekeeping

Supplies

6,000 6,000 10,000 10,000 11,000

Facility

Maintenance

9,000 9,000 15,000 15,000 16,000

Facility Update 6,000 6,000 12,000 12,000 13,000

Total Other

Expenses

56,000 61,000 117,000 117,000 130,000

Total Operating

Expenses

834,000 1,004,000 1,185,000 1,286,000 1,855,000

EBITDA 306,000 976,000 975,000 874,000 845,000

Taxes and Interests 150,000 500,000 500,000 400,000 420,000

Net Profit 156,000 476,000 475,000 474,000 425,000

Continue….

Cash Flow

  Year 1 Year 2 Year 3 Year 4 Year 5

Cash Sales 1,440,000 1,800,000 2,160,000 2,160,000 2,700,000

Subtotal Cash

from

Operations

1,440,000 1,800,000 2,160,000 2,160,000 2,700,000

New Long-term

Liabilities

    2,000,000    

New

Investment

Received

    400,000    

Subtotal Cash

Received

1,440,000 1,8000,000 4,560,000 2,160,000 2,700,000

Cash Spending 350,000 350,000 700,000 750,000 750,000

Bill Payments 1,000,000 1,000,000 1,500,000 1,500,000 2,000,000

Subtotal Spent

on Operations

1,350,000 1,350,000 2,200,0000 2,250,000 2,750,000

Principal

Repayment of

Current

50,000 60,000 80,000 100,000 30,000

Long-term

Liabilities

Principal

30,000 30,000 75,000 80,000 90,000

Subtotal Cash

Spent

1,430,000 1440,000 2,355,000 2,430,000 2,870,000

Net Cash Flow 10,000 360,000 2,205,000 (270,000) (170,000)

Cash Balance 10,000 370,000 2,575,000 2,305,000 2,135,000

Continue….

Balance Sheet

  Year 1 Year 2 Year 3 Year 4 Year 5

Cash 10,000 370,000 2,575,000 2,305,000 2,135,000

Total Current Assets

10,000 370,000 2,575,000 2,305,000 2,135,000

Long-term Assets 2,600,000 2,600,000 2,600,000 2,600,000 2,600,000

Total Long-term Assets

2,600,000 2,600,000 2,600,000 2,600,000 2,600,000

Total Assets 2,610,000 2,970,000 5,175,000 4,905,000 4,735,000Accounts Payable 35,000 90,000 130,000 140,000 150,000

Current Borrowing

380,000 300,000 250,000 130,000 100,000

Subtotal Current Liabilities

415,000 390,000 380,000 270,000 250,000

Long-term Liabilities

30,000 30,000 75,000 80,000 90,000

Total Liabilities 445,000 420,000 455,000 350,000 340,000Paid-in Capital 450,000 500,000 800,000 850,000 850,000Retained Earnings

(100,000) (130,000) 250,000 800,000 1,400,000

Earnings 156,000 476,000 475,000 474,000 425,000Total Capital 506,000 846,000 1,525,000 2,124,000 2,675,000Total Liabilities and Capital

951,000 1,266,000 1,980,000 2,474,000 3,015,000

Net Worth 506,000 846,000 1,525,000 2,124,000 2,675,000

Exit Strategy Merger & Acquisition (M&A)

• Merging with a similar company, or being bought by a larger company. This is a win-win situation when bordering companies have complementary skills, and can save resources by combining.

Sell to a friendly individual. 

• It’s a great way to “cash out” so you can pay investors, pay yourself, take some time off, and get ready to have some fun all over again. The ideal buyer is someone who has more skills and interest on the operational side of the business, and can scale it.

Liquidation and close. 

• Simply to shutdown, close the business doors, and liquidate.

Next, Your amazing journey will start from….

aMAZEing Adventure

Park