Bowling Alley Business Plan PDF

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Bowling Alley BUSI NESSPLAN

THEFAMI L YBOWL

P. O.Box12345 Omaha,Nebr as k a68101

TheFami l yBowlbusi nes spl anout l i nesas t r at egyf orabowl i ngal l eyt hatcat er st o f ami l i esandcel ebr at espeopl eofal l nat i onal i t i es.I twi l l di ffer ent i at ei t sel ff r om ot her bowl i ngal l ey sbypr ov i di ngacl eanandf r i endl yat mospher e.I tal s owi l lhav et hel ar ges t numberofl anesi nt hear ea.Thi spl anwaspr ov i dedbyAmer i westBusi nes s Cons ul t ant s ,I nc .

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EXECUTI VESUMMARY OBJ ECTI VES&GOALS BUSI NESSDESCRI PTI ON,ST ATUS,ANDOUTLOOK MANAGEMENTANDOWNERSHI P MARKETANAL YSI S MARKETI NG STRATEGI ES FI NANCI ALPLANS

Confidentiality Statement Thei nf or mat i on,dat a,andchar t sembodi edi nt hi sbusi nesspl anar es t r i ct l yconfi dent i al andar esuppl i edont heunder s t andi ngt hatt heywi l lbehel dconfident i al l yandnot di s cl os edt ot hi r dpar t i eswi t houtt hepr i orwr i t t encons entofRober tSmy t h.

EXECUTIVE SUMMARY BUSINESS DESCRIPTION Thepur pos eoft heFami l yBowli st opr ovi det hear eawi t habowl i ngal l eywhi c hcat er s pr i mar i l yt of ami l i es .Theat mospher ewi l lbef r i endl yandopen.Theal l eywi l lbe mai nt ai nedt ot heut mostdegr eeofc l eanl i nes sandmai nt enance,unl i k es i mi l ar oper at i onsi nt hear ea.Theal l ey' sempl oy eeswi l ldi spl ayanewat t i t ude.Theywi l l t r eat c us t omer sl i k efi r st cl as sci t i z ensandt r yt omak et hem f eell i k et heyar eathome.Ont he pr emi seswi l lbepool t abl es ,vi deogames,anddar tboar ds .Wewi l l offerf orsal epr i de

i t ems ,i nagi f tshop,f r om v ar i ousc ul t ur esar oundt hewor l d.Thef aci l i t ywi l lhav eafir st r at esoundandl i ght i ngs y st em.Thes er vi ceswi l lbeoffer edatacompet i t i v epr i ceand pr i ci ngwi l l ber evi ewedper i odi cal l y .Wepl ant obec omet hepr emi erbowl i ngal l eyi nt he ar eawi t hi nt woy ear s.Wewi l loffert hebestent er t ai nment ,at mos pher e,cul t ur al awar eness,andser vi c ei nmet r oOmaha,Nebr ask a. Thef ac i l i t ywi l lnor mal l ybecl osedonMonday .Pr opos edhour sar eTues day , Wednes day ,andThur sday ,2: 00P. M.t hr ough2: 00A. M.OnFr i dayandSat ur dayt he hour swi l lbe12: 00P. M.t hr ough2: 00A. M.OnSundayt hehour swi l lbe4: 00P. M. t hr ough2: 00A. M.Thepr emi seswi l l beopenf orat ot al of74hour sperweek.

CURRENT POSITION AND FUTURE OUTLOOK Thebusi nessi si nast ar t upmode.Pl anscal l f ors t ar t i ngoper at i onbyt hespr i ngof 2000.Dur i ngt hefir s tf ul l y earofoper at i onwepl ant oser v eanav er ageof10, 000 c us t omer spermont h.Thesecondy eart hi swi l l i ncr easet o15, 000permont h.Year s t hr eet hr oughfiv ewi l l showgr adual i ncr easest o18, 000permont hwhi c hwecons i dert o beourcapaci t y .Toat t ai nt hes egoal swewi l luseacombi nat i onofmedi aadv er t i si ng, fl y er s ,di r ec tmai l ,andwor dofmout h.Fr anc hi si ngt heconc epti sapos si bi l i t yf ort he f ut ur e.

MANAGEMENT AND OWNERSHIP Thecompanywi l l besetupasacor por at i onwi t hRober tSmy t handhi swi f e,J ul i e,as t hemaj ors har ehol der s ,i nc or por at or s ,anddi r ect or s.Rober tSmyt hwi l lser v eas pr esi dentandmanager .Hewi l l al sopr ov i det hel eader shi pt or unt hi scompany .Hehas ov er17y ear sex per i enc easownerandoper at orofv ar i ouss mal l bus i nes soper at i ons , andhasdeal twi t ht hepubl i casaper sonnelofficeri nt hemi l i t ar y .I ni t i al l y ,upt ot hi r t een ot herempl oy eeswi l lbeneeded.Theseempl oy eeswi l lbei nv ol v edi nbar t endi ng, s ec ur i t y ,andwai t i ngont abl es .Theywi l l beacombi nat i onofpar t t i meandf ul l t i me. Whenv ol umepi cksup,addi t i onal par t t i meorf ul l t i meempl oy eeswi l lbehi r edast he wor kl oadr equi r es .Smal lBusi nessNebr ask a,I nc.wi l lpr ov i dehel pi naddi t i onal ar eas s uc hass et t i ngupt hebook s ,l ogodesi gn,andgener al bus i nessadv i s i ngwhen necess ar yandt osuppl ementt heSmy t hs' ov er al l bus i nessknowl edge.Theser vi cesof anaccount ant ,at t or ney ,andaqual i fiedi ns ur anceagenthav ebeenr et ai ned.

UNIQUENESS AND DIFFERENTIATION OF THE SERVICE TheFami l yBowlwi l l bet hel ar ges tbowl i ngal l eywhi chcat er st of ami l i es .I twi l lhav et he l ar gestnumberofl anesi nt hear ea. f or mal ,s oc i al s et t i ng,and Thei deaoft hi scompanyi st opr ov i decust omer swi t hasemi ent er t ai nmentt hatdoesnotexi sti nt hi spar toft hest at e.Wewi l l pr ov i decust omer swi t h hi ght echl i ght sandsound,vi deogames,pool t abl es ,andaf ul l l i neofent er t ai nment .I n addi t i onwewi l l cat ert opr i v at epar t i esandspeci al gr oupssuchass chool s ,s eni or c i t i z ens ,andc hur c hgr oups.

Thegr owt hpot ent i ali sv i r t ual l yunl i mi t edf ort hegr eat erOmahaar ea.Thepopul at i oni s gr owi ngatanac cel er at edr at e.Cur r ent l yov er12% oft hepopul at i oni nOmahai sy oung. Theywi l l bev er yr ec ept i v et oaconceptsuc hast hi st hatc anoffert hem at mospher e, c l eanl i ness ,andsecur i t yatacompet i t i v epr i ce. I ti sr ar ei nt oday ' sbus i nesswor l dt ofindat r uemar k etv oi d.Thati sex ac t l ywhatFami l y Bowl hasdone.I ti scombi ni ngt hel at es ti nt echnol ogywi t hanunfi l l edneedand pr omi sest odel i v erahi ghqual i t ynewpr oductatacompet i t i v epr i ce.Ourpr opos ed f aci l i t ywi l lhav el i t t l et r uecompet i t i oni nmet r oOmaha.

FUNDS REQUIRED AND USAGE Thei ni t i alst ar t upexpens eswi l lbeappr oxi mat el y$300, 000.Thei nv ent or y ,equi pment , f ur ni t ur e,fi xt ur es ,andl easehol di mpr ov ement swi l lcos tappr oxi mat el y$125, 000. I nv est or sand/ orabankl oanmustbes ec ur edi nt heamountof$125, 000at14. 0% amor t i z edov ert eny ear s .Thei ni t i al i nv est or swi l l f ur ni s happr oxi mat el y$50, 000,whi c h i s18. 5% oft het ot al .Af t eral lex pensesofs t ar t up,$40, 000wi l l r emai ni nanew busi nesschecki ngac countandwi l l pr ov i det hebal anceoft hei ni t i alwor ki ngcapi t al .

Projected 5-Year Income Statement

(MOST LIKELY CASE) Projected 2000

Projected 2001

Projected 2002

Projected 2003

Projected 2004

Total Revenue

836,000

919,200

1,010,688

1,111,290

1,221,916

Cost of Sales

285,720

314,292

345,722

380,294

418,321

Gross Profit

550,280

604,908

664,966

730,996

803,595

Selling, General, Expense

587,033

620,169

658,739

706,195

757,418

(MOST LIKELY CASE) Projected 2000

Projected 2001

Projected 2002

Projected 2003

Projected 2004

Income Before Taxes

-36,753

-15,261

6,227

24,801

46,177

Income Taxes

0

0

0

0

0

INCOME AFTER TAXES

-36,753

-15,261

6,227

24,801

46,177

Projected 2000

Projected 2001

Projected 2002

Projected 2003

Projected 2004

Total Revenue

1,003,200

1,103,040

1,212,826

1,333,548

1,466,299

Cost of Sales

342,864

377,150

414,866

456,353

501,985

Gross Profit

660,336

725,890

797,959

877,195

964,314

Selling, General, Expense

704,440

744,203

790,487

847,434

908,902

Income Before Taxes

-44,104

-18,313

7,472

29,761

55,412

Income Taxes

0

0

0

0

0

INCOME AFTER TAXES

-44,104

-18,313

7,472

29,761

55,412

(OPTIMISTIC CASE)

(PESSIMISTIC CASE) Projected 2000

Projected 2001

Projected 2002

Projected 2003

Projected 2004

Total Revenue

668,800

735,360

808,550

889,032

977,533

Cost of Sales

228,576

251,434

276,578

304,235

334,657

Gross Profit

440,224

483,926

531,973

584,797

642,876

Selling, General, Expense

469,626

496,135

526,991

564,956

605,934

Income Before Taxes

-29,402

-12,209

4,982

19,841

36,942

Income Taxes

0

0

0

0

0

INCOME AFTER TAXES

-29,402

-12,209

4,982

19,841

36,942

Not es: 1.Themostl i k el ycaseass umes10, 000cust omer spermont ht hefir s ty earwi t h eachspendi nganav er ageof$25. 00perv i si t .Thesecondy eart henumberof c us t omer swi l lr i set o15, 000permont hal soass umeseachwi l ls pend$30. 00per v i si t . 2.Theopt i mi s t i ccaseass umesr ev enuesandex pens eswi l li nc r ease15% ov ert he mostl i k el ycas e.Thepes si mi s t i ccas eassumesr ev enuesandex pens eswi l l decr ease15% bel owt hemostl i k el ycaseabov e.

OBJECTIVES & GOALS

1.Topr ov i deahi ghqual i t yser vi cesot hatc ust omer swi l lper cei v egr eatv al ueand gi v et hem t heoppor t uni t yt oi nt er actwi t hot herf ami l i esi nasaf eandcl ean env i r onment . 2.Ser vi ceanav er ageof10, 000cust omer spermont hdur i ngt hefir stf ul l y earof busi nessand15, 000cus t omer spermont ht hesecondy ear .Theul t i mat egoal i s t or eac h18, 000cust omer spermont hbyt het hi r dy ear 3.Tor epayt heent i r el oanamountbyt heendoft het hi r dy earandt opr ovi det he s har ehol der swi t hast abl eandsuffici enti nc omeaf t ert hat . 4.Ourgoali st obec omet hepr emi erbowl i ngal l eyi nmet r oOmahadur i ngt henex t t woy ear s . 5.Fami l yBowl pl anst ocl osel ymoni t orc hangi ngt ec hnol ogyt obecer t ai nt hatt he companyi susi ngt hel at estandmostcosteffect i v eequi pmentandt hati tk eeps upwi t hcur r entt r endsi nt hemar k et pl ace. 6.Wheneconomi cal l yf eas i bl ewepl ant oopenoneormor el oc at i onsand/ or cons i derf r anc hi si ngours er vi ce. Whengr owt hhass t abi l i z edwepl ant oaddex t r aser v i cesf orcus t omerc onv eni enc e s uc hasl ar gesc r eent el ev i si on,enhancedgamer ooms ,andf oodser vi ces .I naddi t i on t ot heabov egoal swewi l ls ur v eyourc ust omer sandmak echangesi nourpr ogr ams andaddser v i cest omeett hei rc hangi ngi deasi nt hemar k et pl ac e.

Strategies for Achieving Goals Toobt ai nt hefir s tt woset sofgoal swewi l l t r yt omax i mi z es al eswi t hanex t ens i v e campai gnt opr omot eourser vi ce.Wewi l l ut i l i z et her adi ost at i onsandnews paperal ong wi t hbr ochur es,medi aadv er t i si ng,pamphl et s ,di r ectc us t omercont act ,useofcoupons , r ef er r al s ,andav ar i et yofot heradv er t i si ngandmar k et i ngt ool st or eac ht hecust omer baseofmet r oOmaha.Weex pectt ofloodt hemar k etwi t hadv er t i si ngunt i lcons umer s becomeawar eofusandmor ecomf or t abl ewi t hourcompany .Aswegr ow,wor dof mout hr ef er r al swi l l br i ngi ni ncr easi ngnumber sofcust omer sandwewi l l r educeour r el i anc eonadv er t i s i ng. Thedomi nantdr i vi ngf or cebehi ndourcompanywi l l bepr ofitandi nc ome. Tobecomet hepr emi erbowl i ngal l eyi nmet r oOmaha,wewi l l offerout st andi ngqual i t y , c l eanl i ness ,s ecur i t y ,l onghour s ,andr eas onabl epr i ci ng.Wewi l l l i s t ent oourc ust omer s andconduc ts ur v ey s. Aswegr owandbui l dar eput at i onf orourpeopl eandcul t ur al l yor i ent edat mospher e wi t hex cel l entsec ur i t y ,s er vi ce,andent er t ai nment ,wewi l l offerf r equentuserdi sc ount s . I nt hef ut ur ewemayconsi derdi v er si ficat i onandent ernewmar k etar eas .

BUSINESS DESCRIPTION, STATUS, AND OUTLOOK TheFami l yBowlwi l l beaf ul l ser vi c ebowl i ngal l eycombi ni ngent er t ai nmentsui t edt oa s pec i fi ccul t ur eatacompet i t i v epr i ce.Wewi l l t r yt opr omot eanat mospher et hatwi l l

r emi ndmanypeopl eoft hei rhomel and.Thi si sar el at i v el ynewconc eptf ort hi spar tof t hecount r y .Rober tSmy t hwi l l oper at et hebus i nes sasacor por at i on.Thepr i nc i pal s har ehol der swi l lbeheandhi swi f e,Jul i e.I ni t i al l y ,Rober tSmyt hwi l l managet he oper at i onwi t hdai l yi nputf r om Jul i eandt heot heri nv est or s .Thenewequi pmentand enhancedl i ght i ngandsounds y st emswi l lal s ogi v eusmar k etadv ant ages.Abui l di ng wi l lbel easedt hatbestmeet st hegoal sandmar k etwear et r yi ngt or eac h.Ul t i mat el y , wewi l lconst r uctourownbui l di ngt oexpandt ot hef ul lpot ent i al oft hi sbus i ness . Thebi ggestpr obl em t hi sv ent ur ewi l lf acewi l l becr eat i ngcus t omerawar enessofour s er vi ces .Wewi l l us eacombi nat i onofadv er t i si ngt ec hni quest oi ncr easet hi s awar eness.Onceagener alawar enessi spr es ent ,t hei ndust r yhasavi r t ual l yunl i mi t ed gr owt hpot ent i al . Thef ut ur ehol dst hepr omi sef oral mostunl i mi t edgr owt handi ncomeast hebus i nes s mat ur esandcons i der sot hermar k et sandpr oduct s .Compl ement ar ypr oduct ssuchas addi t i onal vi deogames ,mor epoolt abl es ,dancel es sons,andhi gherpr ofil e ent er t ai nmentwi l lal l becons i der edi nt hef ut ur ei nr es pons et ocus t omersur vey s i ndi cat i ngt hei rwant sandneeds .Compl et ef oods er vi ceswi l l beoffer edi nt hef ut ur eas t heneedsar edemonst r at ed.

MANAGEMENT AND OWNERSHIP Rober tSmyt hhasownedsev er al succes sf ul smal l bus i nes sesi nTex asandNebr as ka. Heat t endedTex asSt at eUni v er si t yf r om 1979t hr ough1983.Hi smaj orwasc i vi l engi neer i ngandhi smi norwasbus i ness .Heal sohasex per i enc easabar t ender , bounc er ,andcashi eri npool hal l sandar cades .Hehad14y ear sexper i encei n per sonnelmanagementi nt hemi l i t ar y .Theses ki l l swi l l hel pensur et hatt heFami l yBowl wi l lhav easol i df oundat i onofmanagementski l l sav ai l abl et oi t . TheSmy t hs ' wi l l suppl ementt hei rs ki l l sbyusi ngout si decons ul t ant si nar eassuc has l egal wor k ,i ncomet axpr epar at i on,i ns ur ance,andgener albusi nessadv i si ng. Thebusi nesswi l l besetupasacor por at i on.Thi sf or m ofl egalent i t ywasc hos en pr i mar i l yf orl i abi l i t yr eas onsandt omak ei teasi ert osecur ei nv est or s .Tobegi n oper at i on,asmanyast hi r t eenf ul l andpar t t i meempl oy eeswi l lbehi r edt ohel pi nar eas s uc hasbar t endi ng,wai t i ngont abl es,andsecur i t y .Ast hebus i nessgr owsaddi t i onal par t t i meorf ul l t i meempl oy eesmaybeaddedt ohandl et hei ncr easedwor kl oad.

The Service — An Unfilled Need Nebr ask agr owt hi nf ami l i esi st heni nt hgr eat esti nt hecount r y .Thepastdecadehas s eent hi ssegmentoft hepopul at i ongr owbymor et han30%.I ti sgr owi ng51/ 2t i mesas f astast hegener alpopul at i on. Thef ewex i st i ngbowl i ngal l ey st hatcat ert of ami l i esar edar kanddi ngy .Theypayl i t t l e at t ent i ont ocl eanl i nes s ,mai nt enanc eofpr emi ses ,andsecur i t yf ort hei rpat r ons .Fami l y

Bowl andi t sowner s hi pwi l l embr acet hef ami l ycommuni t yandt r yt obec omeaf oc al poi ntf ort hem.Wewi l l pr omot ef ami l i eswhenev erpossi bl e. Thei deaf oraf ami l y or i ent edbowl i ngal l eywasf or mul at edwhenRober tandJul i e Smy t hnot i cedaneedf oraqual i t ybowl i ngal l eywhi chcat er st of ami l i esi nsout her n Omaha.Theyhav econduc t edex t ensi v esur v ey soft hel oc alf ami l i es .Theses ur v ey s hav eshownagr eati nt er esti nsuc hanal l ey .Thes esur vey sal sohav ei ndi cat edt hat c l eanl i ness ,goodmai nt enance,goodsec ur i t y ,qual i t yl i v eent er t ai nment ,andasemi f or malat mospher ear eal ldesi r abl echar act er i st i csf orwhi c hpeopl ear el ooki ng. Thet i mi ngf orsuc habusi nes si sper f ect .Asi gni fic antwi ndowofoppor t uni t yexi s t sf ora companysuchast heki ndwear epr oposi ng.Thi spr oposedbus i nes swi l lbepr ovi di ng t he" Ri ghtSer vi ceatt heRi ghtTi me. "

Uniqueness of the Service I ti sr ar ei nt oday ' swor l dt hatat r uemar k etv oi dex i st s .Ourser vi cewi l lmeett he" unfil l ed need"des cr i bedabov ebypr ov i di ngcust omer swi t hcompet i t i v el ypr i cedbowl i ngal l ey f aci l i t i escombi nedwi t ht hel at es ti nl i ght i ngandsounds y s t emsandl ongerhour s.We wi l lbecons i der abl yl ar gert hant het ypi cal bowl i ngal l ey . Cust omer swi l lbeat t r act edt ot heFami l yBowlbecaus eourat mospher e,pr i ci ng,and f aci l i t i es .Theywi l l bemadet of eelwel comeandaspar toft hef ami l y . Somemaj oradv ant agesFami l yBowlwi l l hav eov erpot ent i alc ompet i t i onand conv ent i onal bowl i ngal l ey sar e:              

Lar gerandnewerf ac i l i t y Loweroper at i ngex pens es Bes tsoundandl i ght i ngs y s t em i nt hear ea Newc oncept —cat erpr i mar i l yt of ami l i es Li v edi v er s i fiedent er t ai nment Locat i on Longerhour s Engl i shl ess onsf ort hos ei nt er est ed Dancel ess onsf orpat r onswant i ngt ok eepupwi t ht hel at es tdancest eps Thecl eanes tr es t r oomsi nt heci t y Secur i t yper sonnelandot herempl oy eeswhocanspeakbot hSpani s hand Engl i sh Thel ar gestdanc efloori nt hear ea Di s pl ayc abi net swi t hpr i dei t emsf orpur c has esuc hasfl ags ,hat s ,scar v es,et c. Fami l yBowlwi l l sponsoret hni cf es t i v al sandhol i day s

MARKET ANALYSIS MARKET OVERVIEW, SIZE, AND SEGMENTS

Cur r ent l y ,t hemar k etdi s t r i but i oni sshar edbyt hr eemaj orpar t i ci pant s .Theyar eal l l oc at edont henor t hsi deofOmaha.Thi smar k etsegmenthasbeenr el at i v el yst abl e ov ert hepastfi v ey ear s . Themar k etar eawewi l lconcent r at eoni sGr eat erOmahaCount y .Thi si ncl udes6 s ur r oundi ngt owns .Addi t i onal l y ,weexpec tt odr aws omepat r onsf r om anor t her nt own whi chi sonl y40mi nut esaway .Thesear eashav ebeengr owi ngr api dl yt hepastsev er al y ear sandshoul dcont i nuef ort hef or eseeabl ef ut ur e.Oncet heconceptcat c heson l oc al l y ,wef eel t hepot ent i al i sunl i mi t ed.Aswegr owwewi l lhav et hefinanci al capac i t y t ocar r yonanadv er t i si ngcampai gnonar egi onalbasi s . Theeconomyi si nt hemi dstofapar t i cul ar l ys t r onggr owt hper i od.Manynewj obsar e bei ngaddedt ot hel oc al communi t y .Ev eri ncr easi ngnumber sofCal i f or ni ansar e mov i ngt ot hi sl ocat i on.Al l oft hes ef ac t or sar ecaus ef oramuchgr eat eri nt er es ti n bowl i ngal l ey s.Al l oft hi sact i v i t ycanonl yhel pourat t empt st ost ar tabowl i ngal l ey . Li st edbel owar ej ustsomeoft her eas onst hatt heOmahaar eai sgr owi ngandwhyi ti s agoodt i met obest ar t i nganyki ndofnewbusi ness :  

        

Thel oc al economyi sboomi ngandvi r t ual l ybus t i ngatt heseams . Omahahasbecomeamagnetf orr el i gi ousor gani zat i ons .Mor et han65nat i onal l y basedChr i st i anor gani zat i onsar eheadquar t er edher e.Thel ar ges thasov er 1, 200empl oy ees( especi al l ywomen)andanoper at i ngbudgetofov er$85 mi l l i on. ThenewAppl eComput erpl anti ss et t i ngr ecor dsf orpr oduct i onandi saddi ng newempl oy eesmont hl y . Omahahasanewai r por tandanear byFr eeTr adeEnt er pr i seZonet hatshoul d gr owandat t r ac tev enmor enewbusi nes ses . Gambl i ...