William “The Mick” McEwan

Steve “Patience” Perrotto

Mark “Gonzo” Gonzales

Kishan “Mysterious” Mistry

Here I Come!

Business Overview

• Looked at successful amusement businesses and examined their shortcomings– Combined the best of successful businesses– Eliminated areas of weakness

• End result was the LAO Action amusement facility

Mission Statement

• At LAO we believe that a mission statement provides the driving force for a business.

• LAO Action is a for-profit organization that seeks to offer an exciting and dynamic environment where our customers can come and satisfy their appetite for action. Through our assortment of games and activities, our goal is to provide a safe, memorable, and action-filled experience all under one roof. We stand out from the common amusement facilities with our multitude of activities and state-of-the-art games including SpeedBall (paint ball), Laser Warz (laser tag), billiards, state-of-the-art games, and virtual reality simulations. At LAO Action, we focus on a customer-driven approach to supply chain management through our friendly employees and superior service quality.

Phoenix, Arizona

• Inc, Magazine rated Phoenix the #1 city to start a new business

• Building size is perfect for our goals• Parking lot• Building will be split up into 3 sections

LAO Action

• We are something Phoenix has never seen

We put the excitement of PAINTBALL, LASERTAG, ARCADE, BILLIARDS, and FOOD all underone roof…competition has no answer!!!!

Speed Ball

• Our version of indoor Paintball

• Brief 10 minute Course on how to play

• Sales

SpeedBall

Ball Package SalesNumber of Balls per Pack 100 Balls Price $8.00 Ball Packages Sold 22,631.00Groups Rates (6 people) Price per Group $80.00 Total number of Groups 2,555.00Individual Rates Price per Person $14.00 Number of Individuals 7,300.00

SpeedBall

TOTAL REVENUE 487,648.00

Lazer Warz

• Laser Tag

• Floor Set up

• Prices/Sales

Laser Warz

Groups Rates Price per Group (6 people) $46.00 Total number of Groups 4,380.00Individual Rates Price per Person $8.00 Number of Individuals 18,250.00

TOTAL REVENUE 347,480.00

LazerWarz

Arcade Games

• We plan to hold 75 games• High Tech/ Virtual Reality• Sales/ Pricing

Billiards

• 10 Billiard Tables• 5 TV screens

Billiards/ Arcade

Prices of Games Offered $0.25 $0.50 $0.75 $1.00Video Game Use 109,500.00 255,500.00 87,600.00 98,550.00Total 27,375.00 127,750.00 65,700.00 98,550.00

TOTAL REVENUE 319,375.00

BilliardsCombined Hours of Use (all tables) 10,950.00Rate Per Hour $12.00

TOTAL REVENUE 131,400.00

Video Games

Food and Beverage

Pizza, Burgers, Fries, Hot Dogs

• Good tasting Fast Food

Sales DataFood & Beverage

Food and BeverageFood Pizza (slice) Pizza (pie) Hamburger Cheese Burger FriesPrice $2.30 $12.00 $3.25 $3.50 $2.75Number Purchased in a year 120,000.00 12,000.00 6,000.00 24,000.00 36,000.00

276,000.00 144,000.00 19,500.00 84,000.00 99,000.00Food LG. Soda SM. Soda Hot DogPrice $0.99 $0.79 $2.25Number Purchased in a year 72,000.00 48,000.00 6,000.00

71,280.00 37,920.00 13,500.00Total Revenue F&B 745,200.00

What Makes us Different

• We are unlike our competition

• LAO Action appeals to all age groups

• Customer Service– Employees

Advertising

• Three main mediums of marketing– Yellow Pages

• Local Phoenix Area Book

• Internet

– Billboards• Two around the greater Phoenix area

– Television Commercials

Technology

• Video Games– Classic Games– Virtual Reality

• Laser Tag Equipment

• Paintball Equipment

• State of the art Website

All about the Benjamins

Four DivisionsPaintballLaser TagArcade, BilliardsFood and Beverage

Year One Year Two Year ThreeRevenueTotal Revenue $347,480.00 $389,177.60 $406,551.60

Expenses Wages $17,250.00 $18,000.00 $18,750.00 Upper Management $17,500.00 $26,250.00 $35,000.00 Depreciation Expense $72,000.00 $72,000.00 $72,000.00Total Expense $106,750.00 $116,250.00 $125,750.00

Net Income $240,730.00 $272,927.60 $280,801.60

LAO ActionIncome Statement Year One (Lazer Warz Division)

December 01-03

Year One Year Two Year ThreeRevenueTotal Revenue $487,648.00 $560,795.20 $585,177.60

Expenses Wages $17,250.00 $18,000.00 $18,750.00 Upper Management $17,500.00 $26,250.00 $35,000.00 Cost Of Goods Sold $57,504.00 $64,296.00 $66,816.00 Depreciation Expense $24,000.00 $24,000.00 $24,000.00Total Expense $116,254.00 $132,546.00 $144,566.00

Net Income Paintball $371,394.00 $428,249.20 $440,611.60

LAO ActionIncome Statement (Paintball Division)

December 01-03

Revenue Video Games $319,375.00 $351,312.50 $360,893.75 Billiards $131,400.00 $144,540.00 $148,482.00Total Revenue $450,775.00 $495,852.50 $509,375.75

Expenses Wages $34,500.00 $36,000.00 $37,500.00 Upper Management $17,500.00 $26,250.00 $35,000.00 Depreciation Expense $24,000.00 $24,000.00 $24,000.00Total Expense $76,000.00 $86,250.00 $96,500.00

Net Income $374,775.00 $409,602.50 $412,875.75

Year One Year Two Year Three

LAO ActionIncome Statement Year One (Games and Billiards Division)

December 01-03

RevenueTotal Revenue $745,200.00 $775,008.00 $819,720.00

Expenses Wages $34,500.00 $36,000.00 $37,500.00 Upper Management $17,500.00 $26,250.00 $35,000.00 Depreciation Expense $120,000.00 $120,000.00 $120,000.00 Cost of GS $106.00 $13,645.84 $14,433.10Total Expense $172,000.00 $195,895.84 $206,933.10

Net Income $573,200.00 $579,112.16 $612,786.90

Year One Year Two Year Three

LAO ActionIncome Statement Year One (Food and Beverage Division)

December 01-03

Year One Year Two Year ThreeRevenue

Total Revenue $2,031,103.00 $2,220,833.30 $2,320,824.95

ExpensesWages $103,500.00 $108,000.00 $112,500.00Upper Management $70,000.00 $105,000.00 $140,000.00Depreciation Expense $240,000.00 $240,000.00 $240,000.00Cost of Goods Sold $57,610.00 $77,941.84 $81,249.10Utilities $250,746.00 $250,746.00 $250,746.00 Water $510.96 $510.96 $510.96 Gas $2,400.00 $2,400.00 $2,400.00 Electric $240,000.00 $240,000.00 $240,000.00 Telephone $6,480.00 $6,480.00 $6,480.00 Satillite TV $515.04 $515.04 $515.04 Internet $840.00 $840.00 $840.00Advertising $9,099.20 $9,099.20 $9,099.20 Billboard $1,200.00 $1,200.00 $1,200.00 Comercial $7,700.00 $7,700.00 $7,700.00 Yellow Pages $199.20 $199.20 $199.20Insurance Expense $10,000.00 $10,000.00 $10,000.00Tax Expense $304,665.45 $333,125.00 $348,123.74Rent Expense $41,472.00 $41,472.00 $41,472.00Total Expense $1,087,092.65 $1,175,384.04 $1,233,190.04

Net Income $944,010.35 $1,045,449.27 $1,087,634.91

LAO ActionIncome Statement Year One

12/31/01

WHAT WE NEED FROM YOU…

Total cost to start Up Our Business$329,162Contributed Capital$40,000

Need Loan$289,162

START UP BUDGET

Equipment

Starting CashRent

Commercial Production

Total Start-Up Inventory

Commercial License

Start-Up Utility

Rent Equipment

Total Start-Up Inventory Commercial Production

Start-Up Utility Commercial License

Starting Cash

Weaknesses

• We don’t have a name in the Phoenix area

• Attracting customers

Strengths

• Our Uniqueness

• State of the art indoor facility

Conclusion

LAO Action:

Where the monotony ends and the excitement

begins!

THANKS

We would now like to open

the floor to questions.