GORILLA BALL BATTING CAGES

Transcription

1 GORILLA BALL BATTING CAGES B U S I N E S S P L A N D A R R Y T H E V I D S I O N. C O M

2 THIS IS A SAMPLE BUSINESS PLAN A L L C L I E N T I N F O R M AT I O N A N D P R O P R I E TA R Y I N F O R M T I O N H A S B E E N E I T H E R R E M O V E D O R C H A N G E D F R O M T H E O R I G I N A L D O C U M E N T. T H E C L I E N T S N A M E H A S B E E N C H A N G E D A S W E L L. WWW. T H E V I D S I O N. C O M Page 2

3 TABLE OF CONTENTS Executive Summary... 4 Business Description... 5 Industry Analysis... 8 Market Analysis Competitive Analysis Marketing Plan The Financials Appendix Page 3

4 EXECUTIVE SUMMARY Gorilla Ball batting cages is a 15,000 square foot outdoor batting cage facility, located in the heart of Orlando, Florida. Gorilla Ball features ten individual baseball/softball batting cages, each equipped with an automatic, token initiated pitching machine. The Gorilla Ball Pro Shop will offer patrons Gorilla Ball branded apparel and baseball equipment and a small selection of food and beverages. Over the past five years, the Golf Driving Ranges and Family Fun Centers industry has exhibited revenue growth rate of 4.5% annually. Improved disposable income levels over the five-year period allowed consumers to increase their entertainment purchases. Activities such as batting cages appeal primarily to children and adolescents, and this demographic has been contributing a larger portion of industry s revenue, as more health-conscious parents want their children to participate in physical activities. Per capita disposable income levels and consumer spending are anticipated to increase over the next five years years to Industry revenue is forecast to grow at an annualized rate of only 1.2% to $11.9 billion. Gorilla Ball s target market are families on vacation and local Orlando youth baseball/softball players. Orlando, Florida has the advantage of being one of the top 3 tourist destination cities within the United States, and Gorilla Ball is located in the heart of Orlando s tourist area. The Tourism industry has experienced steady growth over the past five years. Industry revenue increased 5.3% in 2013 and continued growing every year since due to increasing consumer sentiment, declining unemployment and an increase in the number of trips domestic and international travelers were taking in the United States. Gorilla Ball will implement a grassroots marketing campaign to reach its target market that includes a combination of social media, print, and online marketing. All of Gorilla Ball s messaging is designed to position them as the leading Orlando family friendly, batting cage facility, for customers of all ages and skill levels. Gorilla Ball batting cages is seeking $100,000 from a bank or SBA back loan that will be paid back to the lender within 5 years with the revenue from business operations. This loan will be collateralized by the personal assets of the owner. The owner will also be investing $75,000 of his own money into Gorilla Ball batting cages. Page 4

5 COMPANY NAME: Gorilla Ball Batting Cages BUSINESS DESCRIPTION C O M P A N Y O V E R V I E W Gorilla Ball Batting Cages is an Orlando based outdoor batting cage facility. Gorilla Ball features ten individual baseball/softball batting cages, each equipped with an automatic, token initiated pitching machine. OFFERINGS: Baseball and Softball Batting Cages INDUSTRY CLASSIFICATION: M I S S I O N & V I S I O N The mission of Gorilla Baseball Batting Cages is to provide Orlando tourists and residents with a family-friendly outdoor batting cage that requires a minimal time and money investment. Golf Driving Ranges & Family Fun Centers S E R V I C E O F F E R I N G S Gorilla Ball Batting Cages offers customers a selection of ten individual batting cages, each with a separate automatic pitching machine that throws baseballs/softballs at a specific speed. The different cage names and the associated speeds are: TARGET MARKETS: Tourists, Youth Baseball/Softball Players, Adult Rec League Baseball/Softball Players Slow pitch softball (Slow) Fast pitch softball (Fast) Little league (Very Slow) High School (Slow) College (Medium) Minor League (Medium-Fast) Major League (Fast) Hall of Fame (Extremely Fast) FUNDING REQUIRED: $100,000 Having a variety of different machines and speeds allows us to maximize the chance that a customer will find the right cage for his/her skill level. T H E F A C I L I T Y Gorilla Ball Batting Cages is a 15,000 square foot facility located in Orlando, Florida on International Drive. The facility will feature a 10-station batting Page 5

6 cage structure and pro shop. The Gorilla Ball Pro Shop will offer patrons Gorilla Ball branded apparel and baseball equipment and a small selection of food and beverages. E X A M P L E O F G O R I L L A B A L L F A C I L I T Y B U S I N E S S M O D E L Gorilla Ball Batting Cages generates revenue by charging customers to utilize our pitching machines. Customers purchase tokens that allow them to access any of the batting cages. Each token gives the customer 15 pitches from the pitching machine. In the Gorilla Ball Pro Shop we also sell refreshments, Gorilla Ball Apparel, and baseball/softball equipment. L O C A T I O N Gorilla Ball will be located in Orlando, Florida on International Drive just ½ a mile from the Orlando Convention Center. This location was chosen because of the immense tourist foot traffic that it Page 6

7 provides. International Drive is ground zero for tourists, as there are hundreds of restaurants, retail stores, bars, and activities to engage in on this stretch. Thousands of tourists and Orlando residents walk and drive along International Drive on a weekly basis throughout the year. There is adequate and well lit parking at this location for both customers and staff. A large parking lot located just ½ a block from our facility will be shared by several of the businesses in the area. A large multi-level parking garage is also within a ½half mile from our facility. L E G A L S T R U C T U R E Gorilla Ball Batting Cages LLC is registered as a Limited Liability Company (LLC). This legal structure is ideal because it shields owners Darryl Stephen s personal assets from any potential future lawsuits concerning the business. Secondly, with Gorilla Ball Batting Cages LLC initially having 3 employees, an LLC fits best. As Gorilla Ball Batting Cages expands in size and employees, we have the option to change the legal structure if need be. S E C U R I T Y The key security risks at Gorilla Ball are the theft of our pitching machines and the cash in our cash registers. To safeguard these assets, we will purchase a security system that we will be armed during non-business hours. Several surveillance cameras will also be installed and strategically placed around the premises. These security cameras will be recording We will also secure each machine to the ground making theft of them much more difficult. Darryl Stephens will be the only person that has keys to the building. All cash will be removed from the cash register and placed in a safe at the end of each day. I N S U R A N C E Gorilla Ball Batting Cages will purchase two kinds of insurance: General Liability Insurance to insure Gorilla Ball Batting Cages against third party claims of injury or property damage Property insurance to insure our equipment in case of theft, fire, vandalism, etc. B O O K K E E P I N G A N D R E C O R D S Gorilla Ball ownership will utilize Intuit Quickbooks for all bookkeeping and record keeping. The owner has experience using QuickBooks, and an extensive knowledge of accounting and the bookkeeping process. Page 7

8 INDUSTRY ANALYSIS I N D U S T R Y O V E R V I E W Gorilla Ball Batting Cages competes within the Golf Driving Ranges and Family Fun Centers industry. The primary activities of this industry are: Go-Karting Batting Cages Driving Ranges Shooting Ranges Kayaking Minituare Golf Courses Mountain Climbing Snow Mobiling Recreational and Youth Sports Teams Below are some key industry statistics and a competitive overview to give you additional insight. As you can see this industry has seen a positive annual growth in the past five years, and is projected to continue to grow the next five years. Industry Overview Total Revenue (2015) $11.2bn Profit $1.5bn Annual Growth % Projected Annual Growth % No Companies with a Dominant Market Share Page 8

9 Over the past five years, the Golf Driving Ranges and Family Fun Centers industry exhibited revenue growth, despite slow growth in leisure time available to consumers. Improved disposable income levels over the five-year period allowed consumers to increase their entertainment purchases. However, the industry has contended with mounting competition from alternative leisure activities, such as fitness and video games, which has driven operators to focus on convenience and customer experience. Industry revenue is expected to grow at an annualized rate of 4.5% to $11.2 billion over the five years to 2016, with revenue rising 1.2% in 2016 with steady growth in consumer spending. Over the period, improved income levels, in conjunction with strong growth in consumer confidence, increased the level of expenditures on leisure activities. Per capita disposable income levels and consumer spending are anticipated to increase over the next five years years to Industry revenue is forecast to grow at an annualized rate of only 1.2% to $11.9 billion. Current Industry Structure Life Cycle Stage - Growth Revenue Volatility - Low Concentration Level - Low Regulation Level - Light Technology Change - Medium Barriers to Entry - Low Competition Level - Medium Page 9

10 MARKET ANALYSIS T A R G E T M A R K E T O V E R V I E W Gorilla Ball s target market are tourists, families on vacation, and local youth baseball/softball players. Orlando, Florida has the advantage of being one of the top 3 tourist destination cities within the United States. Activities such as batting cages appeal primarily to children and adolescents. Over the five-year period, this demographic has been contributing a larger portion of industry revenue, as more healthconscious parents want their children to participate in physical activities, such as golf driving ranges. Moreover, many younger consumers will likely attend family fun centers over the next five years, due to some activities (e.g. indoor go-karting) being ideal recreational activities for inclement weather. The 25 to 44-year-old demographic is anticipated to compose the second largest share of industry revenue, with 32.4% of total revenue. Typically, this demographic makes up a large share of total revenue due to this market segment having more leisure time and higher disposable income. Many of the amusement and recreation activities, such as go-karting, miniature golf and batting cages, appeal to this market segment. This segment contains a wide range of consumers. Young adults and varying ranges of parents generally make up this market group. Accordingly, the demand a wide range of industry services. Over the next five years, demand from this market segment is expected to remain stable. Market Segmentation for Industry - Age 22.70% 8.00% 36.90% 32.40% 24 and Younger Years of Age Years of Age 65 and Older Page 10

11 The Tourism industry has experienced steady growth over the past five years. Industry revenue increased 5.3% in 2013 and continued growing every year since due to increasing consumer sentiment, declining unemployment and an increase in the number of trips domestic and international travelers were taking in the United States. As unemployment gradually declined, consumer spending continued to increase due to rising disposable incomes and positive consumer sentiment. Increasing corporate profit also led to far more business trips, which have contributed to consistent rises in industry revenue. IBISWorld estimates that revenue will grow an annualized 3.1% to $977.2 billion over the five years to 2016, including growth of 1.9% in 2016 alone. When the regional population is compared to domestic tourism expenditure by region, there is a higher proportion of tourism establishments in the Southeast (28.2% of establishments) region, which includes Florida (6.4%). The Travel Industry Association of America also list the top 10 states in terms of domestic and international traveler expenditure as: 12.0% Top States for % of Domestic & International Tourist Expenditure 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Series 1 Page 11

12 COMPETITIVE ANALYSIS C O M P E T I T I V E O V E R V I E W The Golf Driving Ranges and Family Fun Centers industry includes numerous small players that do not have the resources to operate globally, with the exception of some larger companies like Top Golf. The overwhelming majority of Gorilla Ball s competition will come from other indoor or outdoor batting cages in the Orlando area. D I R E C T C O M P E T I T I O N Company Lebron s Indoor Batting Cage Bad Dog Driving Range You Go Pro Baseball Hit and Run Baseball Training Indoor vs. Outdoor Indoor Outdoor Indoor Indoor Location Within 2 miles International Drive Within 3 Miles Within 10 Miles C O M P E T I T I V E A D V A N T A G E Gorilla Ball Batting Cages will focus on building upon the following key success factors to ensure that we maintain an advantage over our competition from the perspective of our target market. Price Point: Our price point is slightly below that of our direct competitors. This price point makes us appealing to family tourists that view us as an inexpensive option among an ocean of high priced entertainment options. Convenience: Gorilla Ball Batting Cages will be located at ground zero of the Orlando tourist area International Drive. Unlike most of our competition, Gorilla Ball is easily within walking distance from most of the hotels and restaurants on this street. The foot traffic that we receive from being at this location is unparalleled in the Orlando area. Skill Level Options: At Gorilla Ball Batting Cages, each customer can select the batting cage that fits his/her skill level. With 10 different cages and almost as many skill levels to choose from, we have an option to satisfy all of our customers. Page 12

13 MARKETING PLAN P O S I T I O N I N G Gorilla Ball Batting Cages will implement a grassroots marketing campaign aimed attracting tourist and local youth and adult baseball/softball players. All of our marketing messaging has the purpose of positioning Gorilla Ball Batting Cages as an inexpensive, family friendly batting cage facility, for customers of all skill levels. The goal of the Gorilla Ball marketing strategy is to elevate the awareness of our brand and service to ensure long-term success. We will achieve this through the following tactics: Interactive Website Print Marketing Online Newsletter Strong social media presence (Facebook, Twitter, and LinkedIn) Cross Promotion with local hotels, theme parks, and recreation activities Hosting Home Run Derbies Groupon & Living Social Discounts Referral & Word of Mouth Marketing T H E W E B S I T E Gorilla Ball Batting Cages website will feature a modern look and feel, but with simple navigation for visitors. Everything on the website - style, color, feel will reflect our brand. The overall goal of the website is to inform visitors of our services and converting visitors into customers. To accomplish this, Gorilla Ball Batting Cages website will display: Professional pictures of the Gorilla Ball Batting Cages Video testimonials from satisfied clients Video clips of excited families hitting in our batting cages Pictures and video clips Gorilla Ball Batting Cages sponsored events Collect addresses to include in our online newsletter P R I N T A D V E R T I S I N G Gorilla Ball Batting Cages will utilize print advertising to gain additional exposure. Our main use of print marketing will be: Page 13

14 A weekly advertisement in the local Orlando entertainment newspaper, which is a popular free local newspaper. Make Gorilla Ball Batting Cages brochures available at local hotel, themed parks, and local family recreation activity businesses. S O C I A L M E D I A Social media will play a significant role in establishing Gorilla Ball Batting Cages as the premier Orlando batting cage. Gorilla Ball Batting Cages will have a business account set up on several social media platforms including Facebook, Twitter, LinkedIn, and Instagram. Constant updates on these sites will also keep customers in the loop regarding new events, specials, and services. These social media platforms will also allow us to communicate with potential and/or past clients directly allowing us to build additional trust and connection to the Gorilla Ball brand. H O S T I N G H O M E R U N D E R B Y S Perhaps the most important outreach efforts will be in community interaction. Engaging the local Orlando youth and adult baseball community with monthly events is vital, as they help create a Gorilla Ball community. The initial Gorilla Ball event will be our Home Run Derby. This event will have different divisions for the various skill levels and age groups. O N L I N E N E W S L E T T E R Gorilla Ball Batting Cages will send a monthly newsletter to past customers and anyone that opts in. This online newsletter will feature: A schedule of upcoming Gorilla Ball Batting Cages events Any current/upcoming Gorilla Ball discounts and specials Success stories of Gorilla Ball customers that had excellent baseball/softball games Interviews with Gorilla Ball Home Run Derby winners G R O U P O N A N D L I V I N G S O C I A L D I S C O U N T S Groupon and Living Social are the two largest discount websites online. Gorilla Ball Batting Cages will offer regular discounts on both of these websites. The short-term loss of money from the discount will be paid in full through increased exposure to their online visitors and a potential increase in the number of our customers. Page 14

15 R E F E R R A L / W O R D O F M O U T H M A R K E T I N G Positive customer testimonials and reviews are one of the strongest forms of advertising and can be a key decision point for many potential clients. Satisfied clients are usually inclined to discuss their experience with friends, family, and colleagues, resulting in new business opportunities for Gorilla Ball Batting Cages. We will actively encourage referrals from clients, and provide monetary incentives for those able to bring in new business. Every positive experience with us, encourages customers to share their experiences with others. Understanding this, Gorilla Ball Batting Cages will work to consistently provide our customers with positive experiences worth sharing, and a rewards system for those who do. Page 15

16 THE FINANCIALS S T A R T U P C O S T S Batting Cage Startup Costs Item Description Unit Price Units Total Price Space Renovation Renovation of Space $100, $100, Exterior & Interior Signage $5, $5, Licenses and Permits $2, $2, Lease Deposit $5, $5, Startup Marketing Website $3, $3, Grand Opening Marketing $2, $2, Security Anti-Theft Hardware $1, $1, Security Cameras for the Facility $1, $1, Batting Cage Equipment Baseball/Softball Bats $ $2, Helmets $ $ Pitching Machines $1, $15, Pitching Machine Balls $ $ Pitching Machine Tokens $ $ Token Dispensers $ $ Pro Shop Inventory Gorilla Ball Apparel $2, $2, Baseball Equipment for Sale $7, $7, Startup Costs Total $149, Page 16

17 S O U R C E S A N D U S E S O F F U N D S Sources of Funds Owner's Savings $75, Small Business Loan $100, Total $175, Uses of Funds Space Renovation $113, Equipment $22, Inventory $9, Marketing $5, Working Capital $25, Total $175, Page 17

18 I N C O M E S T A T E M E N T C H A R T PROJECTED INCOME STATEMENT YEARS FY 2017 FY 2018 FY 2018 INCOME Gross Sales $540, $594, $653, (Commissions) $0.00 $0.00 $0.00 (Returns and allowances) $0.00 $0.00 $0.00 NET SALES $540, $594, $653, (Cost of Goods) $0.00 $0.00 $0.00 GROSS PROFIT $540, $594, $653, OPERATING EXPENSES Salaries and wages $180, $180, $180, Employee benefits $54, $54, $54, Payroll taxes $13, $13, $13, Professional services $ $ $ Marketing and advertising $3, $3, $3, Lease $66, $66, $66, Facility Security $ $ $ Equipment Maintenance $ $ $ Depreciation $0.00 $0.00 $0.00 Insurance $1, $1, $1, Telephone & Internet $1, $1, $1, Utilities $9, $9, $9, Office supplies $ $ $ Bad Debt $16, $17, $19, TOTAL EXPENSES $347, $349, $351, Net income before taxes $192, $244, $302, Provision for taxes on income $57, $73, $90, NET PROFIT $134, $171, $211, Page 18

19 I N C O M E S T A T E M E N T C H A R T Annual Net Sales and Net Profit $700, $600, $540, $594, $653, $500, $400, $300, $200, $134, $171, $211, NET SALES NET PROFIT $100, $0.00 FY 2017 FY 2018 FY 2018 Page 19

20 P R O J E C T E D C A S H F L O W S T A T E M E N T CASH RECEIPTS Income from Sales PROJECTED CASH FLOW STATEMENT YEARS FY 2017 FY 2018 FY 2019 Cash Sales $540, $594, $653, Collections $0.00 $0.00 $0.00 Total Cash from Sales $540, $594, $653, Income from Financing Interest Income $0.00 $0.00 $0.00 Loan Proceeds $0.00 $0.00 $0.00 Equity Capital Investments $0.00 $0.00 $0.00 Total Cash from Financing $0.00 $0.00 $0.00 Other Cash Receipts $0.00 $0.00 $0.00 TOTAL CASH RECEIPTS $540, $594, $653, CASH DISBURSEMENTS Inventory $0.00 $0.00 $0.00 Operating Expenses $347, $349, $351, Commissions/Returns & Allowances $0.00 $0.00 $0.00 Capital Purchases $0.00 $0.00 $0.00 Loan Payments $12, $12, $12, Income Tax Payments $0.00 $0.00 $0.00 Investor Dividend Payments $0.00 $0.00 $0.00 Owner's Draw $0.00 $0.00 $0.00 TOTAL CASH DISBURSEMENTS $360, $362, $364, NET CASH FLOW $179, $231, $289, Opening Cash Balance $25, $204, $436, Cash Receipts $540, $594, $653, Cash Disbursements $360, $362, $364, ENDING CASH BALANCE $204, $436, $725, Page 20

21 C A S H F L O W C H A R T Projected Net Cash Flow & Ending Cash Balance $800, $725, $700, $600, $500, $436, $400, NET CASH FLOW $300, $200, $179, $204, $231, $289, ENDING CASH BALANCE $100, $0.00 FY 2017 FY 2018 FY 2019 Page 21

22 P ROJ E C T E D I N C O M E S T A T E M E N T ( Y E A R O N E - M O N T H L Y ) PROJECTED INCOME STATEMENT INCOME Year One Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Gross Sales $45, $45, $45, $45, $45, $45, (Commissions) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 (Returns and allowances) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NET SALES $45, $45, $45, $45, $45, $45, (Cost of Goods) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 GROSS PROFIT $45, $45, $45, $45, $45, $45, EXPENSES - General and Administrative Salaries and wages $15, $15, $15, $15, $15, $15, Employee benefits $4, $4, $4, $4, $4, $4, Payroll taxes $1, $1, $1, $1, $1, $1, Professional services $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 Marketing and advertising $ $ $ $ $ $ Lease $5, $5, $5, $5, $5, $5, Facility Security $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 Equipment Maintenance $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 Depreciation $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Insurance $ $ $ $ $ $ Telephone & Internet $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 Utilities $ $ $ $ $ $ Office supplies $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 Bad Debt $1, $1, $1, $1, $1, $1, TOTAL EXPENSES $28, $28, $28, $28, $28, $28, Net income before taxes $16, $16, $16, $16, $16, $16, Provision for taxes on income $4, $4, $4, $4, $4, $4, NET PROFIT $11, $11, $11, $11, $11, $11, Page 22

23 PROJECTED INCOME STATEMENT INCOME Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 TOTAL (Months 1-12) Gross Sales $45, $45, $45, $45, $45, $45, $540, (Commissions) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 (Returns and allowances) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NET SALES $45, $45, $45, $45, $45, $45, $540, (Cost of Goods) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 GROSS PROFIT $45, $45, $45, $45, $45, $45, $540, $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 EXPENSES - General and Administrative $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Salaries and wages $15, $15, $15, $15, $15, $15, $180, Employee benefits $4, $4, $4, $4, $4, $4, $54, Payroll taxes $1, $1, $1, $1, $1, $1, $13, Professional services $70.00 $70.00 $70.00 $70.00 $70.00 $70.00 $ Marketing and advertising $ $ $ $ $ $ $3, Lease $5, $5, $5, $5, $5, $5, $66, Facility Security $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $ Equipment Maintenance $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $ Depreciation $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Insurance $ $ $ $ $ $ $1, Telephone & Internet $99.00 $99.00 $99.00 $99.00 $99.00 $99.00 $1, Utilities $ $ $ $ $ $ $9, Office supplies $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $ Bad Debt $1, $1, $1, $1, $1, $1, $16, Travel $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Entertainment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Interest on loans $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 TOTAL EXPENSES $28, $28, $28, $28, $28, $28, $347, Net income before taxes $16, $16, $16, $16, $16, $16, $192, Provision for taxes on income $4, $4, $4, $4, $4, $4, $57, NET PROFIT $11, $11, $11, $11, $11, $11, $134, Page 23