Bowling Entertainment Center Business Plan
This plan provides investor information and includes strategic business plan details for Kiln Creek Bowling Center. The plan outlines business growth plans, operation procedures, and infrastructure management.
Kiln Creek Bowling Corporation (Kiln Creek Bowling Center) was formed in Yorktown, Virginia.
The management team responsible for the design, building, and development of company policy, and daily operations are Charles H. Collins Jr., Jane W. Collins, and Charles “Chip” Collins III. A staff of 50 will support the management team. Kiln Creek Bowling Corporation will retain a CPA firm for audits, taxes, payroll, and business consulting.
Kiln Creek Bowling Corporation offers quality family entertainment, products, and services to York County, Hampton, Newport News, and the surrounding area.
Considering the current prices in the bowling and restaurant market, Kiln Creek Bowling Center has the potential for excellent sales the first year. With good management, annual revenue growth is expected.
The equity for each investor will be based on their investment.
Ways to minimize risk to Kiln Creek Lane’s success include:
1. Obtain sufficient capital.
2. Maintain low overhead costs.
3. Build a sufficient customer base.
4. Establish community involvement.
5. Use cash, check, or credit card for payments.
Objectives:
Kiln Creek Bowling Corporation will build a 43,000-square-foot building in the Kiln Creek commercial area of York County/Newport News, Virginia. Services/products include 40 computerized bowling lanes, a family restaurant, snack bar, billiard and dart parlor, video game room, apparel shop, pro-shop, and children’s nursery. A miniature golf course will be added in the future. The project will cost $4.5 million, borrowed at 9.5% for a 20-year term. Kiln Creek Bowling Center anticipates opening in September, with first-year gross revenues showing a return on equity. Revenues are expected to grow above inflation.
Mission:
Kiln Creek Bowling Center aims to provide residents of the north side of Hampton Roads with family entertainment in an enjoyable, pleasant atmosphere. It will provide excellent service using advanced bowling equipment in a clean facility, catering to the entire family. The restaurant, called “The Train Station,” will have a railroad-themed decor and casual dining area with multiple TVs. The design will capture the romantic era of train travel and dining. The restaurant will also feature a full-service bar, with live entertainment or Karaoke on selected nights.
Keys to Success:
1. Location: The center will be strategically located in York County, near the Regal 14 Cinema. This location is half a mile from I-64 exit 265B, in the Kiln Creek Shopping Complex, which includes various businesses. The demographics of the primary market area align with the requirements for a successful bowling center.
2. Low Overhead Cost: Kiln Creek Lane’s management will minimize costs. Charles Collins Jr. will be the project manager during construction, saving approximately 15% of costs. The center will have energy-efficient equipment.
3. Wide Range of Services: Kiln Creek Bowling Center will provide entertainment through bowling, a full-service restaurant/night club, billiards and darts, arcade, snack bar, apparel/pro shop, and children’s nursery. This diversity will attract more customers and provide options for their discretionary spending.
Company Summary
The building site is a six-acre tract of wooded flat land, located in the Kiln Creek business complex. It will be adjacent to the Regal 14 Cinema on Commonwealth Drive. The demographic studies coincide with AMF, Brunswick Bowling Corporation, and National Bowling Council requirements for a successful bowling center.
The market for a modern family bowling center in York County is superior, due to the tremendous population growth in the past five years, the majority of which is within five miles of the building site. Bowling is the number-one family participation sport in the United States, with 72 million people bowling at least three games per week. This center will be a high-tech, computerized bowling center. The scores will be automatically displayed on a 34-inch color monitor. Additionally, each lane will have its own overhead 34-inch color TV that enables the customer to view their favorite TV program while bowling. Each lane is equipped with a telephone that provides the customer with the means to order food and beverages or contact the staff if assistance is needed. The telephone will also allow the bowler to receive incoming phone calls. The most significant factor affecting the bowling business in the forthcoming decade is the dramatic growth of the 35-to-44-year-old segment of the population, which will increase by 42%. This age group represents the prime segment that joins bowling leagues, resulting in increased profit for the center.
The facility will be the most modern in the Tidewater area of Virginia. It automates score-keeping, produces score printouts for each game, shows the bowler how to make a spare, and provides league secretarial services to include keeping all required league bowling records. It maintains perpetual data on league, recreation, and leisure bowlers as to what time they bowl and how much money they spend on bowling, food, apparel, pro shop, etc. This invaluable information will be used in various marketing programs, such as the frequent bowler program, where the bowler receives prizes of their choice based on the amount of money spent in the center during a preset time. This will be a first for any Virginia bowling center. The data helps determine which promotions work and which do not. With this data, we can form new leagues to meet the needs of the bowlers. The system also maintains an accounting system that automatically controls bowling revenue. In addition to bowling, the center will offer the following services:
- Train Station restaurant
- Snack bar
- Shoe rental
- Billiard and dart parlor
- Locker rentals
- Video game room
- Vending machines, pay phones
- Ball polisher
- Nursery for young children of bowlers
2.1 Company Ownership
Kiln Creek Bowling Corporation is a privately held C corporation owned by Charles H. Collins Jr. and his family. A percentage of the stock will be sold to investors.
2.2 Start-up Summary
During the start-up phase of this project, the following major events will occur, some of them simultaneously:
- Obtain significant investment
- Secure a large commercial loan
- Obtain all required permits
- Purchase the building site
- Preliminary architectural drawing
- Order long lead items, e.g., steel
- Order bowling and restaurant equipment
- Approval of final architectural drawing
- Clear lot/site prep
- Start building center (This on a six-month timeline)
- Hire key personnel
- Start development of leagues
- Finalize operating procedures
- Intensify marketing campaign
- Hire remaining staff
- Train staff
- Order inventory
- Open for business
Start-up
Requirements
Start-up Expenses
Land $0
Building $0
Bowling Equipment $0
Restaurant Equipment $0
Fixtures & Furniture $0
Professional Fees $20,000
Architectural Fees $50,000
Inventory $0
Insurance Operations $30,000
Insurances During Construction $15,000
Marketing $25,000
Payroll During Construction $85,000
Permits $10,000
Company Vehicle (Pickup) $0
Site Work – Parking Lot $0
Rent of Temp Office (Construction Trailer) $3,000
Operational Expenses During Construction $10,000
Construction Electrical Power $8,500
Construction Telephones $2,000
Security Deposit Electrical $5,000
Security Deposit Water $1,000
Security Deposit Telephone $500
Grand Opening Cost $0
Financial Cost $0
Start Up Fund $0
Total Start-up Expenses $265,000
Start-up Assets
Cash Required $265,000
Start-up Inventory $0
Other Current Assets $970,000
Long-term Assets $3,000,000
Total Assets $4,235,000
Total Requirements $4,500,000
Start-up Funding
Start-up Expenses to Fund $265,000
Start-up Assets to Fund $4,235,000
Total Funding Required $4,500,000
Assets
Non-cash Assets from Start-up $3,970,000
Cash Requirements from Start-up $265,000
Additional Cash Raised $0
Cash Balance on Starting Date $265,000
Total Assets $4,235,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $3,000,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $3,000,000
Capital
Planned Investment
Investor 1 $1,500,000
Investor 2 $0
Other $0
Additional Investment Requirement $0
Total Planned Investment $1,500,000
Loss at Start-up (Start-up Expenses) ($265,000)
Total Capital $1,235,000
Total Capital and Liabilities $4,235,000
Total Funding $4,500,000
2.3 Company Locations and Facilities
The building will be a 43,000 square foot, pre-engineered, contemporary design bowling center with a masonry and glass facade. It will have 300 parking spaces.
The center will be located on Commonwealth Drive in York County, adjacent to the Regal 14 Cinema. This location is half a mile from I-64 exit 265B, in the Kiln Creek Shopping Complex, which includes Super K Department Store, Kroger, Farm Fresh, 14-screen Regal Cinema, an ice rink, six national restaurants, two banks, 35 other store-front type businesses, and a Wal-Mart/Sam’s Club that is currently under construction. This is an excellent location for a multi-purpose bowling center, supported by the York County Planning Division’s statistical profile of the primary market area (one to five mile radius) and the National Bowling Council’s demographic requirements for a successful bowling center.
Products and Services
The bowling business is family entertainment. It is a sport that all ages can enjoy as individuals or in groups. The new computer technology allows anyone to experience the sport without having to keep score, as it is done automatically by the computer. Leagues are the core revenue producer, catering to youth, adults, and senior citizens. Kiln Creek Bowling Center will also have a billiard and dart parlor with its own league structure. The Train Station full-service restaurant will feature live entertainment or Karaoke for late-night customers.
3.1 Product and Service Description
We offer food, beverages, and entertainment for pleasant memories.
3.2 Competitive Comparison
Our business will be lucrative due to the following reasons:
– The General Manager has ten years of experience operating a bowling center and has successfully developed, designed, built, and operated a bowling center with a multitude of leagues and satisfied customers.
– The management team of Kiln Creek Bowling Center has received awards for outstanding management of bowling centers and tournaments. Their high standards and customer focus set them apart from competitors, ensuring a quality experience for customers.
Interpreting
When someone has experience operating an establishment, their expertise and abilities contribute to its success. AMF BOSS Scoring and AMF BOSS are systems that intelligently combine entertainment, sport, and business aspects in modern bowling centers. The scoring system provides an entertaining experience for bowlers and helps them improve their game. It also offers revenue-generating games that enhance the center’s profitability. The AMF BOSS Front Desk/Back Office system enables efficient management of the entire bowling center. With its revenue-generating capabilities and superior software, it becomes the perfect business partner. Kiln Creek Bowling Center plans to expand its family entertainment options in the future by adding a miniature golf course and a batting cage.
Market Analysis Summary
The prime market for a bowling center is typically a five-mile radius, which can extend to seven to ten miles if there is easy access to the Interstate highway system. The demographics of Kiln Creek Bowling Center’s target market indicate a perfect match for potential league bowlers.
4.1 Target Market Segment Strategy
Kiln Creek Bowling Center will have a full-time public relations coordinator responsible for ensuring customer satisfaction, generating public awareness, and filling leagues. Publicity will be generated through various channels such as cable ads, radio spots, internet website, direct mail, print ads, discount booklets, promotional coupons, customer frequent bowler program, membership in various organizations, fundraisers, community involvement program, business-to-business personal contact, and telecommunications call services.
4.1.1 Market Needs
The demographics of Kiln Creek Bowling Center’s target market indicate a demand for entertainment options that cater to a higher income bracket. The center will fill this void and provide a quality entertainment experience.
4.1.2 Market Trends
Large chains in the bowling industry have led to a decrease in customer satisfaction and a decline in the industry. Locally-owned and operated centers that prioritize customer service and community involvement have seen success.
4.1.3 Market Growth
As the population ages, the potential market for bowling centers also increases. Centers that prioritize customer service and provide excellent entertainment options will attract and retain customers.
4.2 Service Business Analysis
Kiln Creek Bowling Center will compete with other recreation and leisure establishments such as movie theaters, sports venues, theme parks, and night clubs.
4.2.1 Competition and Buying Patterns
Competition in the local bowling business is mild, and Kiln Creek Bowling Center offers superior technology and a wide range of services compared to its competitors. The center’s emphasis on customer service and a quality entertainment experience sets it apart.
4.2.2 Main Competitors
There are three bowling centers within seven miles of Kiln Creek Bowling Center, but they will not have a significant impact as their customer base is geographically separated. Kiln Creek Bowling Center may gain customers from one of the centers when it closes in 2002. The lack of customer focus by the current management of competing centers has created an opportunity for Kiln Creek to attract leagues and customers.
4.3 Market Segmentation
The bowling market is segmented based on household income. Kiln Creek Bowling Center targets customers with incomes ranging from $25,000 to $75,000, which aligns with the demographics of the area.
Market Analysis
Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Household Income $25,000-34,999 5% 54,600 57,330 60,197 63,207 66,367 5.00%
Household Income $35,000-49,999 10% 64,500 70,950 78,045 85,850 94,435 10.00%
Household Income $50,000-74,999 10% 59,100 65,010 71,511 78,662 86,528 10.00%
Total 8.54% 178,200 193,290 209,753 227,719 247,330 8.54%
Strategy and Implementation Summary
Customer service is paramount in the bowling business. The starting point is to have a trained and motivated staff that enjoys working with the public. It is easier to please customers when the facility is clean and all equipment is in proper working order. The center will establish community involvement to demonstrate how the business contributes to a better quality of life. Community projects using the bowling center’s facilities will be developed to help civic groups meet their financial goals. School, church, and other groups will be welcomed for tours.
5.1 Competitive Edge
Kiln Creek Bowling Center’s competitive advantage is its location – only half a mile off Interstate 64 in the prime business district of the area.
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Kiln Creek Bowling Center will be the most modern and technologically advanced bowling center in Virginia. The center is designed to fulfill the entire family’s recreation and entertainment needs in a clean, safe environment. We will cater to high-income households and ensure they receive the best customer service in the industry.
5.3 Sales Strategy
Kiln Creek Bowling Center provides a venue for the entire family to enjoy leisure time participating in a competitive sport that requires minimal strength and athletic ability. The light exercise will help improve their health, and they will experience a clean facility with the best service in the industry at a fair price.
5.3.1 Sales Forecast
The chart and table below show Kiln Creek Bowling Center’s projected Sales Forecast. Annual projections for three years are shown here, with first-year monthly figures in the appendix.
Sales Forecast
Unit Sales
Open Bowling Games
108,217
113,628
119,309
League Bowling Games
231,596
243,176
255,334
Apparel/Pro Shop
2,504
2,629
2,760
101,729
106,815
112,156
Tournament
4,000
4,200
4,410
Special Events
191
200
210
Nursery
7,002
7,352
7,719
Billiards
10,200
10,710
11,245
Locker Rentals
7,200
7,560
7,938
Arcade
76,800
80,640
84,672
Advertisement
480
504
529
Shoe Rental
21,600
22,680
23,814
Total Unit Sales
571,519
600,094
630,096
Unit Prices
Open Bowling Games
$2.75
$2.75
$2.75
League Bowling Games
$2.57
$2.57
$2.57
Apparel/Pro Shop
$30.00
$30.00
$30.00
Food and Beverage
$5.50
$5.50
$5.50
Tournament
$10.00
$10.00
$10.00
Special Events
$300.00
$300.00
$300.00
Nursery
$1.50
$1.50
$1.50
Billiards
$8.00
$8.00
$8.00
Locker Rentals
$3.00
$3.00
$3.00
Arcade
$0.25
$0.25
$0.25
Advertisement
$50.00
$50.00
$50.00
Shoe Rental
$2.00
$2.00
$2.00
Sales
Open Bowling Games
$297,597
$312,477
$328,100
League Bowling Games
$595,202
$624,962
$656,208
Apparel/Pro Shop
$75,120
$78,870
$82,800
Food and Beverage
$559,510
$587,483
$616,858
Tournament
$40,000
$42,000
$44,100
Special Events
$57,300
$60,000
$63,000
Nursery
$10,503
$11,028
$11,579
Billiards
$81,600
$85,680
$89,960
Locker Rentals
$21,600
$22,680
$23,814
Arcade
$19,200
$20,160
$21,168
Advertisement
$24,000
$25,200
$26,450
Shoe Rental
$43,200
$45,360
$47,628
Total Sales
$1,824,831
$1,915,900
$2,011,665
Direct Unit Costs
Open Bowling Games
$0.13
$0.13
$0.13
League Bowling Games
$0.06
$0.06
$0.06
Apparel/Pro Shop
$1.00
$1.00
$1.00
Food and Beverage
$0.12
$0.12
$0.12
Tournament
$0.04
$0.04
$0.04
Special Events
$3.46
$3.46
$3.46
Nursery
$0.02
$0.02
$0.02
Billiards
$0.01
$0.01
$0.01
Locker Rentals
$0.00
$0.00
$0.00
Arcade
$0.00
$0.00
$0.00
Advertisement
$0.00
$0.00
$0.00
Shoe Rental
$0.02
$0.00
$0.00
Direct Cost of Sales
Open Bowling Games
$14,552
$14,772
$15,510
League Bowling Games
$14,760
$14,591
$15,320
Apparel/Pro Shop
$2,505
$2,629
$2,760
Food and Beverage
$12,051
$12,818
$13,459
Tournament
$165
$168
$176
Special Events
$660
$692
$727
Nursery
$120
$147
$154
Billiards
$140
$107
$112
Locker Rentals
$0
$0
$0
Arcade
$0
$0
$0
Advertisement
$0
$0
$0
Shoe Rental
$353
$0
$0
Subtotal Direct Cost of Sales
$45,304
$45,923
$48,219
5.4 Milestones
The table below displays important events and their scheduled start and ending dates.
Milestones:
| Milestone | Start Date | End Date | Budget | Manager | Department |
| Financing in Place | 12/1/2000 | 2/1/2001 | $0 | ABC | Marketing |
| Accounting System | 1/1/2001 | 2/1/2001 | $0 | ABC | Marketing |
| Start Construction | 3/1/2001 | 9/1/2001 | $0 | ABC | Marketing |
| Hire Key Employees | 3/1/2001 | 8/1/2001 | $0 | ABC | Marketing |
| Personnel Handbook | 4/1/2001 | 5/1/2001 | $0 | ABC | Marketing |
| Operations Handbook | 4/1/2001 | 5/1/2001 | $0 | ABC | Marketing |
| Direct Mailer | 5/1/2001 | 7/1/2001 | $0 | ABC | Marketing |
| Press Release | 5/1/2001 | 6/1/2001 | $0 | ABC | Marketing |
| Newspaper Ads | 7/1/2001 | 7/1/2001 | $0 | ABC | Marketing |
| TV Ad | 7/1/2001 | 8/1/2001 | $0 | ABC | Marketing |
| Mall Info Booth | 7/1/2001 | 8/1/2001 | $0 | ABC | Marketing |
| 1600 Fall League Bowlers | 5/1/2001 | 8/1/2001 | $0 | ABC | Marketing |
| 200 Billiard League Members | 5/1/2001 | 8/1/2001 | $0 | ABC | Marketing |
| 50 Dart League Members | 4/1/2001 | 8/1/2001 | $0 | ABC | Web |
| 12 Month Tournament Schedule | 7/1/2001 | 8/1/2001 | $0 | ABC | Web |
| Restaurant Menu | 3/1/2001 | 3/1/2001 | $0 | ABC | Department |
| 3 Month Entertainment Schedule | 7/1/2001 | 8/1/2001 | $0 | ABC | Department |
| Frequent Bowling Program | 6/1/2001 | 7/1/2001 | $0 | ABC | Department |
| Hire Remaining Staff | 7/1/2001 | 8/1/2001 | $0 | ABC | Department |
| Train Staff | 8/1/2001 | 8/1/2001 | $0 | ABC | Department |
| Open Bowling Center | 9/1/2001 | 9/1/2001 | $0 | ABC | Department |
| Totals | $0 |
5.5 Marketing Strategy
Kiln Creek Bowling Center’s Marketing Plan was introduced in topic 4.2 Target Market Segment Strategy. Additional information appears in the following topics.
5.5.1 Pricing Strategy
All prices will be competitive and fair to the customer. The selling price will be determined by the cost of products sold, overhead, and profit.
5.5.2 Promotion Strategy
We will use Cable TV, the leisure time section of the newspaper, and our website advertising as our main ways to reach our customers. We will develop our positioning message: Family recreation in a clean, safe environment with excellent customer service.
Management Summary
Our management philosophy is based on mutual respect for all contributions made by our employees, regardless of their position. Employees at Kiln Creek Bowling Center appreciate the work environment that allows them to work smart and know their ideas are valued.
Kiln Creek’s success and leadership in the bowling industry rely heavily on the expertise, abilities, and commitment of our management team. Our team has received awards for their exceptional performance, and our high standards make it difficult for competitors to enter and survive in the market.
6.1 Organizational Structure
Kiln Creek Bowling Center has an efficient organizational structure that ensures effective daily operations and future growth. Our structure includes one General Manager and five associate managers overseeing 60 employees. The management divisions are Administrative, Bowling Operations, Restaurant, and Facilities Management.
6.2 Personnel Plan
Our Personnel Plan chart demonstrates how we will utilize our employees’ assets, with most of them being cross-trained.
Administrative– General Manager- Accountant/Secretary- League Coordinator/Public Relations- Tournament Coordinator/Bowling Manager
Operations– Bowling/Billiard Manager- Shift Leader- Front Desk Operator- Day Care Staff- Housekeeping- Porters
Restaurant– Restaurant Manager- Food/Beverage Manager- Chef- Bartender- Line Cooks- Dishwasher/Bus Boy- Wait Staff/Cashiers
Facilities Maintenance– Chief Engineer- First Class Mechanic- Second Class Mechanic- Pin Chaser
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Manager | $72,000 | $75,600 | $79,380 |
| All Other Employees | $350,000 | $367,500 | $385,875 |
| Other | $0 | $0 | $0 |
| Total People | 50 | 50 | 50 |
| Total Payroll | $422,000 | $443,100 | $465,255 |
6.3 Management Team
Title: CEO/General ManagerName: Charles “Chuck” Collins, Jr.Background: Graduated from East Tennessee State University with a B.S. in Industrial Education/Engineering. Retired as a US Navy Commander in 1983 after a successful career in the Navy. Designed and managed a bowling center for ten years. Selected as Hampton Roads Bowling Association’s Man of the Year in 1986.
Responsibilities: Design Kiln Creek Bowling Center, project manager during construction, general manager after opening, develop and implement operation, safety, maintenance, training, and marketing programs, represent Kiln Creek Bowling Center at formal and informal functions.
Title: Senior StaffName: Jane W. CollinsBackground: Graduated from Radford University with a B.S. in Education. Co-owned and managed Victory Lanes Bowling Center and the Bowling Center Night Club for nine years.
Responsibilities: Human resource director, participate in strategic planning, coordinate training and safety programs, represent Kiln Creek Bowling at various functions.
Title: Food/Beverage ManagerName: Charles H. “Chip” Collins IIIBackground: Two years of local junior college with a business management major. Eight years of experience as manager of 11th Frame Restaurant, successfully increasing food sales and meeting financial goals.
Responsibilities: Day-to-day management of the restaurant, including hiring, menu development, inventory control, food purchase, marketing, and setting policy for cleanliness and food preparation.
Title: Accountant/SecretaryName: Dawn BalloweBackground: B.S. in Accounting, ten years of experience as a lead accountant in the bowling industry.
Responsibilities: Handle secretarial duties, internal accountant responsibilities, point-of-contact for external payroll, tax payment, and outside CPA services.
Title: Tournament Coordinator/Bowling Operations ManagerName: James D. BohlkenBackground: Retired Newport News Planning Department Supervisor with extensive experience in bowling, including leadership roles in bowling associations.
Title: Public Relations/League CoordinatorName: To Be SelectedBackground Requirements: B.S./B.A. in marketing, media, or communications. Five years of experience in the bowling/restaurant industry.
Responsibilities: Develop and manage bowling league and tournament programs, oversee multi-media marketing, manage website, design corporate information package, be the corporation’s historian and point-of-contact for visitors.
Title: Bowling Equipment Facility EngineerName: To be selectedBackground: B.S. in Electrical or Mechanical Engineering or five years of AMF Bowling equipment experience with an industrial electrical background.
Responsibilities: Have a preventive maintenance program for all equipment, document repair actions, establish part inventory and control usage.
Executive Support Agencies and Individuals:
We will engage individuals and agencies as needed for legal services, accounting services, insurance, banking, architectural and design services.
Financial Plan
We will secure a commercial loan to cover start-up expenses and operating cash. We will also attract additional investor capital for long-term assets. Kiln Creek Bowling Center will be profitable from the beginning, allowing us to repay the loan and provide returns to the owners.
7.1 Important Assumptions
NOTES FOR PROJECTIONS
- League Bowler Revenue (see table below)- Fall/Winter Long Season–35 Weeks- Fall/Winter Short Season–16 Weeks- Summer Season–13 Weeks
- Food and Beverage Revenue will be 50% of total bowling revenue.
- 600 lockers rented at $3.00 each per month.
- Shoes will rent for $2.50 per pair.
- Food and Beverage Cost will be 27% of Food and Beverage Sales.
- Apparel and Pro Shop items cost will be 25% of sales.
- Open Bowling is 50% of League Bowling.
- Sales / Food tax is not included in revenue.
- Contract Services include pest control, trash removal, cable TV, uniform rental for maintenance, and bar towel rental.
- York County tax rates:- Real Estate tax $8.60 per $1,000.00 of assessed value.- Personal Property tax base is 25% of cost of equipment at 4% per thousand.- Business License is $.20 per $100 for Food & Beverage Revenue and $.36 per $100 for Bowling and Billiards.
Fall and Winter Seasons – Total: $493,800
- Adult Night: 35 Weeks, 1,200 people, $8.00/person, League Revenue: $336,000
- Adult Day: 35 Weeks, 400 people, $7.50/person, League Revenue: $105,000
- Youth: 35 Weeks, 160 people, $6.00/person, League Revenue: $33,600
- Adult Night: 16 Weeks, 150 people, $8.00/person, League Revenue: $19,200
Summer Season – Total: $101,400
- Adult Night: 13 Weeks, 600 people, $8.00/person, League Revenue: $62,400
- Adult Day: 13 Weeks, 200 people, $7.50/person, League Revenue: $19,500
- Youth and Day Care: 13 Weeks, 250 people, $6.00/person, League Revenue: $19,500
Total League Revenue: $595,200
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | |||
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $1,824,831 | $1,915,900 | $2,011,665 |
| Subtotal Cash from Operations | $1,824,831 | $1,915,900 | $2,011,665 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| Subtotal Cash Received | $1,824,831 | $1,915,900 | $2,011,665 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $422,000 | $443,100 | $465,255 |
| Bill Payments | $815,752 | $903,301 | $928,904 |
| Subtotal Spent on Operations | $1,237,752 | $1,346,401 | $1,394,159 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $58,071 | $63,835 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $1,237,752 | $1,404,472 | $1,457,994 |
| Net Cash Flow | $587,079 | $511,428 | $553,671 |
| Cash Balance | $852,079 | $1,363,507 | $1,917,178 |
7.6 Projected Balance Sheet
Estimated balance sheets for the years 2001-2003 are provided below.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Year 3 | |
| Assets | |||
| Cash | $852,079 | $1,363,507 | $1,917,178 |
| Inventory | $3,354 | $10,104 | $10,989 |
| Other Current Assets | $970,000 | $970,000 | $970,000 |
| Total Current Assets | $1,825,433 | $2,343,610 | $2,898,167 |
| Long-term Assets | |||
| Long-term Assets | $3,000,000 | $3,000,000 | $3,000,000 |
| Accumulated Depreciation | $204,996 | $409,992 | $614,988 |
| Total Long-term Assets | $2,795,004 | $2,590,008 | $2,385,012 |
| Total Assets | $4,620,437 | $4,933,618 | $5,283,179 |
7.7 Business Ratios
The company’s projected business ratios are provided in the table below. The final column, Industry Profile, shows significant ratios for the Bowling Center industry, as determined by the Standard Industry Classification (SIC) Index code 7933.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | n.a. | 4.99% | 5.00% | 0.30% |
| Percent of Total Assets | ||||
| Inventory | 0.07% | 0.20% | 0.21% | 4.10% |
| Other Current Assets | 20.99% | 19.66% | 18.36% | 34.80% |
| Total Current Assets | 39.51% | 47.50% | 54.86% | 44.30% |
| Long-term Assets | 60.49% | 52.50% | 45.14% | 55.70% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | ||||
| Accounts Payable | 70,425 | 74,586 | 76,506 | 30.10% |
| Current Borrowing | $0 | $0 | $0 | |
| Other Current Liabilities | $0 | $0 | $0 | |
| Subtotal Current Liabilities | $70,425 | $74,586 | $76,506 | |
| Long-term Liabilities | $3,000,000 | $2,941,929 | $2,878,094 | |
| Total Liabilities | $3,070,425 | $3,016,515 | $2,954,600 | |
| Paid-in Capital | $1,500,000 | $1,500,000 | $1,500,000 | |
| Retained Earnings | ($265,000) | $50,012 | $417,104 | |
| Earnings | $315,012 | $367,092 | $411,475 | |
| Total Capital | $1,550,012 | $1,917,104 | $2,328,579 | |
| Total Liabilities and Capital | $4,620,437 | $4,933,618 | $5,283,179 | |
| Net Worth | $1,550,012 | $1,917,104 | $2,328,579 | |
Appendix
Sales Forecast:
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 |
|—|—|—|—|—|—|—|—|—|—|—|—|
| Unit Sales |
| Open Bowling Games | 0% | 12,490 | 10,690 | 12,709 | 10,691 | 8,182 | 5,673 | 5,673 | 5,291 | 9,818 | 9,818 | 9,818 | 7,364 |
| League Bowling Games | 0% | 26,731 | 22,879 | 27,198 | 22,880 | 17,510 | 12,140 | 12,140 | 11,323 | 21,012 | 21,012 | 21,012 | 15,759 |
| Apparel/Pro Shop | 0% | 334 | 184 | 167 | 134 | 100 | 150 | 100 | 117 | 234 | 200 | 234 | 550 |
| Food and Beverage | 0% | 8,796 | 8,518 | 9,777 | 8,155 | 8,227 | 7,618 | 7,982 | 7,014 | 8,437 | 9,636 | 9,773 | 7,796 |
| Tournament | 0% | 550 | 550 | 270 | 150 | 100 | 400 | 800 | 50 | 80 | 300 | 450 | 300 |
| Special Events | 0% | 22 | 22 | 25 | 5 | 15 | 17 | 14 | 20 | 10 | 14 | 10 | 17 |
| Nursery | 0% | 800 | 867 | 950 | 833 | 567 | 267 | 267 | 250 | 500 | 567 | 567 | 567 |
| Billiards | 0% | 930 | 930 | 930 | 800 | 800 | 750 | 750 | 750 | 800 | 900 | 930 | 930 |
| Locker Rentals | 0% | 600 | 600 | 600 | 600 | 600 | 600 | 600 | 600 | 600 | 600 | 600 | 600 |
| Arcade | 0% | 6,400 | 6,400 | 6,400 | 6,400 | 6,400 | 6,400 | 6,400 | 6,400 | 6,400 | 6,400 | 6,400 | 6,400 |
| Advertisement | 0% | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 40 | 40 |
| Shoe Rental | 0% | 2,350 | 2,550 | 2,250 | 1,350 | 1,150 | 1,200 | 1,050 | 1,250 | 1,750 | 2,250 | 2,350 | 2,100 |
|—|—|—|—|—|—|—|—|—|—|—|—|
| Total Unit Sales | | 60,043 | 54,230 | 61,316 | 52,038 | 43,691 | 35,255 | 35,816 | 33,105 | 49,681 | 51,737 | 52,184 | 42,423 |
Unit Prices:
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 |
|—|—|—|—|—|—|—|—|—|—|—|—|
| Open Bowling Games | $2.75 | $2.75 | $2.75 | $2.75 | $2.75 | $2.75 | $2.75 | $2.75 | $2.75 | $2.75 | $2.75 | $2.75 |
| League Bowling Games | $2.57 | $2.57 | $2.57 | $2.57 | $2.57 | $2.57 | $2.57 | $2.57 | $2.57 | $2.57 | $2.57 | $2.57 |
| Apparel/Pro Shop | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 | $30.00 |
| Food and Beverage | $5.50 | $5.50 | $5.50 | $5.50 | $5.50 | $5.50 | $5.50 | $5.50 | $5.50 | $5.50 | $5.50 | $5.50 |
| Tournament | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 | $10.00 |
| Special Events | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 | $300.00 |
| Nursery | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 |
| Billiards | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 | $8.00 |
| Locker Rentals | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 | $3.00 |
| Arcade | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 |
| Advertisement | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 | $50.00 |
| Shoe Rental | $2.00 | $2.00 | $2.00 | $2.00 | $2.00 | $2.00 | $2.00 | $2.00 | $2.00 | $2.00 | $2.00 | $2.00 |
Total Unit Sales:
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 |
|—|—|—|—|—|—|—|—|—|—|—|—|
| $192,284 | $171,906 | $192,597 | $155,824 | $136,200 | $116,500 | $119,802 | $106,512 | $154,274 | $165,149 | $167,662 | $146,120 |
Personnel Plan:
| Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 |
|—|—|—|—|—|—|—|—|—|—|—|—|
| Manager | 0% | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| All Other Employees | 0% | $33,000 | $34,000 | $35,000 | $33,000 | $25,000 | $21,000 | $21,000 | $23,000 | $30,000 | $32,000 | $32,000 | $31,000 |
| Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total People | | 50 | 50 | 50 | 50 | 35 | 30 | 30 | 30 | 35 | 50 | 50 | 50 |
| Total Payroll | | $39,000 | $40,000 | $41,000 | $39,000 | $31,000 | $27,000 | $27,000 | $29,000 | $36,000 | $38,000 | $38,000 | $37,000 |
This reviewed text provides a more concise and impactful presentation of the sales forecast and personnel plan.
General Assumptions:
– Month 1-12:
– Plan Month: 1-12
– Current Interest Rate: 10.00%
– Long-term Interest Rate: 9.50%
– Tax Rate: 30.00%
– Other: 0
Pro Forma Profit and Loss:
– Month 1: $192,284
– Month 2: $171,906
– Month 3: $192,597
– Month 4: $155,824
– Month 5: $136,200
– Month 6: $116,500
– Month 7: $119,802
– Month 8: $106,512
– Month 9: $154,274
– Month 10: $165,149
– Month 11: $167,662
– Month 12: $146,120
– Sales:
– Direct Cost of Sales:
– Food and Beverage:
– Total Cost of Sales:
– Gross Margin:
– Gross Margin %:
– Expenses:
– Payroll:
– Sales and Marketing and Other Expenses:
– Depreciation:
– Leased Equipment:
– Utilities:
– Insurance:
– Rent:
– Payroll Taxes:
– Other:
– Total Operating Expenses:
– Profit Before Interest and Taxes:
– EBITDA:
– Interest Expense:
– Taxes Incurred:
– Net Profit:
– Net Profit/Sales:
Pro Forma Cash Flow
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance
“>
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