E URUS Hobby and Games Shop Eurus M ANGA / L IGHT N OVELS B OARD GAMES M AGIC : T HE G ATHERING T ABLE - TOP G AMING R OLE P LAYING M ISCELLANEOUS AND A CCESSORIES C OMMUNITY G AMING N IGHTS / T OURNAMENTS C OMPETITION S TART U P Signage$2,500 Leasehold Improvements$2,500 Furniture and Fixtures$10,500 Website$3,000 Capital Costs$18,500 Initial Inventory$33,650 Total$52,150 F INANCING K EY N UMBERS Payback (Gross): $131,883 (Net): $76,883 NPV: $7,845 IRR: 24.3% ROI: 20.0% 15 Base Case3042 Break-Even3235 Owners Compensation Average over 5 years Owner Salary$35,000 Dividends00000$6,715 Total Compensation $36,343$35,000 $41,715 Q UESTIONS E XTRA I NFORMATION P ERCENTAGE OF S ALES % Industry Average% Eurus Wages and Benefits16.60%23.12% Cost of Sales57.70%60.50% Amortization1.50%0.35% Repairs and Maintenance 0.60% Rent/Insurance/Telepho ne/internet/utilities 10.80%16.08% Interest and Bank Charges 0.90%0.00% Professional Fees1.30%0.60% Advertising1.90%0.21% Other Expenses6.50%0.80% B REAKEVEN A VERAGE P URCHASE PER C USTOMER Base Case$30.90 $31.67 Breakeven$33.41$30.05$27.91$27.19$26.52 W HAT I F ? C USTOMERS Custs/DayAVG 5yr N.I.Net PaybackIRR 20(28,656)(254,514)Even Lower 25(9,872)(80,535)Extremely Low 30 (Base)7,75477, % 3524,096227, % 4040,438378, % Custs/DayNew Year 1 N.I.New Year 5 N.I.AVG Owner Compensation 20(38,491)(21,708)$35,000 25(23,010)(501)$35, (Base)(7,530)18,015$36, ,91636,465$48, ,38454,916$60,120 W HAT I F ? A VERAGE P URCHASE AVG Purchase/Cust AVG 5yr N.I.Net PaybackIRR $25.00(12,608)(105,872)Extreme Losses $27.00(5,313)(38,307)-18.50% $30.90 (Base)7,75467, % $ ,417138, % $ ,764196, % AVG Purchase/Cust New Year 1 N.I.New Year 5 N.I.AVG Owner Compensation $25.00(25,264)(3,589)$35,000 $27.00(19,253)4,647$35,000 $30.90 (Base)(7,530)18,015$36,343 $33.00(1,218)25,538$41,191 $35.004,17032,703$45,808