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EB-5 BUSINESS PLAN Golf Company
ABSTRACT This business plan demonstrate how each applicant will create 10 permeant jobs in the Charleston, SC area.
The Plan Writers Sample business plan
Golf Company
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MISSION STATEMENT
By providing a brand new unique local destination, Golf Company will introduce Charleston, South Carolina to the newest family fun paradise. Providing a “state of the
art” entertaining haven to golf enthusiast of all ages, Golf Company’s mission is to become the recognized leader in local family fun centers maintaining a safe and
exciting experience to the general public.
Golf Company
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Table of Contents
MISSION STATEMENT................................................................................................... 1
EXECUTIVE SUMMARY ................................................................................................. 3
OBJECTIVES ................................................................................................................... 4
USE OF FUNDS .............................................................................................................. 5
FAMILY FUN SERVICES ................................................................................................. 6
PRICING ..................................................................................................................... 7
MARKET STUDY: GOLF DRIVING RANGES & FAMILY FUN CENTERS .......................... 8
MARKET SIZE ............................................................................................................. 9
MARKET SEGMENTATION .......................................................................................... 9
A BIGGER PICTURE: NATIONWIDE DISTRIBUTION OF BUSINESS LOCATIONS ....... 10
TARGET MARKET ..................................................................................................... 10
LOCATION: CHARLESTON, SOUTH CAROLINA ......................................................... 11
LOCATION: CHARLESTON DEMOGRAPHICS ............................................................ 11
MARKET NEEDS........................................................................................................ 11
GO TO MARKET PLAN ................................................................................................. 12
NETWORKING: ......................................................................................................... 12
SOCIAL MEDIA: ........................................................................................................ 12
PRESS RELEASES: ..................................................................................................... 12
COUPON MARKETING:............................................................................................. 12
WEBSITE: ................................................................................................................. 12
MODEL COMPANIES ................................................................................................... 13
A CLOSER LOOK: TOP GOLF ..................................................................................... 13
LOCAL COMPETITION .............................................................................................. 14
THE GOLF COMPANY ADVATANGE.......................................................................... 13
KEYS TO SUCCESS .................................................................................................... 14
RETURN ON INVESTMENT (ROI) ................................................................................ 15
PERSONNEL FORECAST ............................................................................................... 16
REVENUE AND P&L FORECAST ................................................................................... 17
PROJECTED CASH FLOW ............................................................................................. 19
PROJECTED BALANCE SHEET ...................................................................................... 20
APPENDIX 1: YEAR ONE FINANCIALS ........................................................................ 21
APPENDIX 2: PERSONNEL PLAN ................................................................................ 22
APPENDIX 3: PRO FORMA PROFIT AND LOSS ........................................................... 23
APPENDIX 4: PRO FORMA CASH FLOW ..................................................................... 25
APPENDIX 5: PRO FORMA BALANCE SHEET .............................................................. 26
Golf Company
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EXECUTIVE SUMMARY
Golf Company (also referred to as “the Company”) will be a Family Entertainment Center (also referred to as “family fun center”) that offers a multitude of indoor activities to patrons who are looking for fun activities to do. While the main focus will be the driving range, the facility will offer other activities including batting cages, golf lessons, a restaurant that serves homemade BBQ, flat screen TVs for watching sports, and various merchandise available in a retail pro shop. Golf Company is entering the market at the right time. According to market research firm IBISWorld, the Golf Driving Ranges & Family Fun Centers industry has seen an average annual growth rate of 0.2% over the last five years, positioning industry revenue to be around $9 billion in 2014. The Golf Driving Ranges & Family Fun Centers industry is projected to see an average annual growth rate of 2.7% over the next five years, placing industry revenue at $10.0 billion in 2018; this rate includes a 2.9% increase this year. These trends position the Company in extremely favorable market conditions. Golf Company anticipates a very diverse customer base and will accommodate diverse needs by providing a wide range of services. The Company will employee a three prong marketing approach which is directed towards younger clients, corporate clients and families. The site will be located next to a planned 8,000 –acre mixed use development that includes retail, offices, hotels and a projected 20,000 residential units and will be the only fun center of its kind. Golf Company faces minimal competition from other family fun centers. The nearest services to Golf Company are Charleston National Country Club, Patriots Point and Dunes West Golf and River Club. While these venues are established, they are still quite far in distance from the Golf Company nor do they offer the scope of services that Golf Company does. Golf Company will have a significant advantage over these other establishments in the market due to its affordability, the variety of amenities, and the indoor nature of its activities that will allow for a strong operation regardless of seasons or weather. Membership pricing for Golf Company’s services ranges from $200 to $1,295 per year. Corporate sponsorships will also add to the Company’s overall profitability. Nonmembers may use the driving range for $3 / hour per non-peak times and $7 / hour during peak. Golf Company charges a comparable price for its batting cages. This excludes the pricing of club rentals and golf balls. The Company’s restaurant is also expected to drive a significant income with an average food and beverage cover in excess of $20. Finally, the Company will also have a vibrant kids programs and pro lesson division. The price per lesson is set at $150 / hour.
Golf Company
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OBJECTIVES
The purpose of this plan is to provide relevant officials with the information necessary to evaluate the Golf Company EB-5 proposal. As such, this plan achieves the following objectives:
There is a viable market opportunity given the researched industry conditions and projected trends
To be able to generate and sustain over 100 jobs over the course of 5 years
The team set in place is qualified to executive and carry this venture forward
A correct capital structure is set in place to optimize a sustainable highly profitable operation To achieve the Company’s objectives, Golf Company requires $10M in startup capital.
The following graphs demonstrates the financial goals of Golf Company during the next five years. The financials are explained in detail throughout the duration of the plan.
Sales Forecast Year 1 Year 2 Year 3 Year 4 Year 5
General Services $711,938 $784,890 $872,100 $959,310 $1,055,241
Membership $724,008 $702,909 $780,965 $858,022 $944,407
Sponsorship $572,701 $630,000 $700,000 $770,000 $847,000
Restaurant $2,052,012 $2,369,250 $2,632,500 $2,925,000 $3,250,000
Kids Program $170,348 $190,980 $212,200 $233,420 $256,762
Total Sales $4,231,007 $4,678,029 $5,197,765 $5,745,752 $6,353,410
Net Profit $895,091 $1,166,755 $1,485,380 $1,822,866 $2,195,816
Net Profit/Sales 21.16% 24.94% 28.58% 31.73% 34.56%
Golf Company
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USE OF FUNDS
The following tables detail funding the business will need to materialize the venture. As illustrated below, the total funding requirements is $10M. The breakdown is as follows:
$4.15M will be used for start-up expenses to construct the driving range
$3.25M will be used for working capital
$2M will be used to acquire land
$556K will be used to acquired short term assets necessary to operate the business
$38K will be used to
Startup Requirements
Startup Expenses
Land Surveyor $5,000.00
Driving Range construction (sq ft) $1,000,000.00
Minature Golf Construction $200,000.00
Facility Interior construction (sq ft) $750,000.00
Architect $85,000.00
General Contractor $54,000.00
Sewer, Water, Electric Install $6,000.00
Interior Designer $5,000.00
Project Manager (months) $30,000.00
Project Manager Support (2 person) $36,000.00
Employee Training (initial) $36,000.00
Landscaping (w/landscape architect) $60,000.00
Tree Clearing (ac) $21,000.00
Professional Photographer $2,000.00
Website Designer $6,000.00
Marketing $3,000.00
Road/Parking construction (per space) $90,000.00
Range Net Install $24,000.00
Security System $4,000.00
Entrance Signs $1,000.00
Main building sign $1,500.00
Buisness License $500.00
Liquor License $2,005.00
Window Treatment $2,400.00
Natural Gas line Install $30,000.00
Wireless Network Install $1,500.00
Astroturf (sq ft) (700ft x 150ft) $1,470,000.00
Water Softener $1,000.00
TV Subscription $2,000.00
Decorations $100,000.00
Incidentals $60,000.00
CO2 for Kegs $2,400.00
soft drink CO2 tanks $1,800.00
Water filters $1,000.00
Napkins/Plates/Cutlery $1,030.00
Batting Cage Install $4,000.00
Warning Signs $800.00
Batting cage Equipment $47,000
Total Startup Expenses $4,146,935
Startup Assets
Cash Required $3,206,817.00
Startup Inventory $38,420
Other Current Assets $566,778
Long-term Assets $2,041,050
Total Assets $5,853,065
Total Requirements $10,000,000
Startup Funding Startup Expenses to Fund $4,146,935
Startup Assets to Fund $5,853,065
Total Funding Required $10,000,000
Assets
Non-cash Assets from Startup $2,646,248
Cash Requirements from Startup $3,206,817
Additional Cash Raised $0
Cash Balance on Starting Date $3,206,817
Total Assets $5,853,065
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Owner $0
Investor $10,000,000
Additional Investment Requirement $0
Total Planned Investment $10,000,000
Loss at Startup (Startup Expenses) ($4,146,935)
Total Capital $5,853,065
Total Capital and Liabilities $5,853,065
Total Funding $10,000,000
Golf Company
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FUN SERVICES
Golf Company will be a unique family fun center that will have indoor driving ranges and batting cages as well as lessons, a full service bar and restaurant and pro shop, providing a quality family experience rather than just a round of golf. By focusing mainly on indoor activities, the Company will be able to develop a customer base that will frequent the establishment any time of the year, as opposed to outdoor family fun centers that have limited activities during the colder seasons. Golf Company will tentatively establish its facility in Charleston, NC, approximately 400 miles away from its closest competitor location. Golf Company’s will launch with the following services:
Heated and Cooled stalls to create and enjoyable environment in any weather condition
TV and Wi-Fi connections for every driving stall
On site restaurant and sports bar
A full service liquor and beer bar with wait staff for the golfers and their families
Pro shop and club repair
Batting Cages
Family-oriented environment
Top of the line instructors available for individual and team lessons focusing on driving techniques
The driving range will be approximately 250 yards long and 50 yards wide. This will allow for approximately 25 players on each tier of the facility. The driving range will be lined by a ball catching net that will be 100 feet high along the entire length of the driving range. There will be distance markers to identify 50, 100, 150, and 200 yard distances.
The main facility will be a 5,000 sq foot building that will house the restaurant, bar, pro shop, rest rooms, locker room, conference room, and game room. The front of the building will face Clements Ferry rd and the customer parking lot, while the back of the building will hold the driving range stalls. This will allow the customer easy access to the main facility while still being able to drive balls away from the street. The driving range stalls will be a total of 150 ft long and 15 feet wide. They will be built on 2 levels to allow for a total of 50 stalls. Additionally, there will be a walkway along the back of each stall that will allow for movement between stalls and allows access to the main facility.
Nonmembers may use the facility for an a la carte rate. The Company will establish certain weekday peak hours and non-peak hours according to demand. Non-peak hours will cost $3, excluding the price of club rentals and balls. Peak hours will be set at $7. The Company’s batting cages will be priced at a similar rate.
The company will also hold a vibrant kids program and summer camp. Enrollment for this program will range from $350 per month to $400 for an entire birthday party. Alternatively, kids can get special lessons at $50 / hour from a child instructor. Adults may also enjoy a professional lesson at $150 / hour.
Golf Company
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PRICING
Although, membership will not be required as noted above, the Company will offer a comprehensive membership packages, each with a variety of privileges. Below is a sample of our membership packages.
Membership Type Pricing Services Included
Masters Membership $1000 per year; Initiation fee of $150
- 60-day advance booking for tee-time - 30% discount on pre-paid ball cards - 10% discount at the Golf Pro Shop - 10% discount on lessons - Complimentary locker and bag storage
Tour Membership $500 per year; Initiation fee of $75
- 7-day advance booking for tee-time - 20% discount on pre-paid ball cards - 5% discount at the Golf Pro Shop - 5% discount on lessons
Standard Membership $200 per year; Initiation fee of $50
- 48 hour advance booking for tee-time - 10% discount on pre-paid ball cards - 5% discount on lessons
Corporate Membership $3,000 per year; Initiation fee of $500
- 25 hours free tee-time with unlimited balls (10% off after first 25 hours)
- 60-day advance booking for tee time - No minimum on number of stalls reserved - 20% discount on pre-paid ball cards (limit
$2,500) - Access to locker room
Off Peak Membership $1,295 per year; Initiation fee of $150
- Unlimited balls year-round during off-peak hours
Finally, corporate accounts may sponsor events and/or advertising space at the facility. Sponsorship rates will be set on a case to case basis depending on demand.
Golf Company
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MARKET STUDY: GOLF DRIVING RANGES & FAMILY FUN CENTERS1
The Golf Driving Ranges & Family Fun Centers industry provides recreational and amusement services through a variety of establishments, including golf driving ranges, miniature golf centers, go-cart racetracks, batting cages, family fun centers, recreational sports leagues, and a wide assortment of outdoor recreational activities. The industry excludes establishments that are primarily arcades, themed amusement parks, gambling facilities, golf courses, country clubs, skiing facilities, marinas, fitness and recreational sports centers, and bowling alleys. Factors determining demand for various sports and recreation facilities include but are not limited to household disposable income, consumer confidence, seasonal and weather conditions, leisure time availability, and the cost of alternative entertainment facilities. As disposable income rises, so does demand for industry services. Similarly, when consumer confidence is high, demand for recreational facilities and clubs will increase. Adverse weather conditions, such as excessive rain, snow, or heat, can deter customers from these outdoor activities. However, not all firms within the industry operate outdoors; for example, companies such as Dave & Buster's and CEC Entertainment Inc. would benefit from poor weather conditions as long as consumers were willing to drive to the establishment. Finally, an increase in the cost of attending substitute entertainment facilities (e.g. movie theaters) can boost demand for less expensive activities in the Golf Driving Ranges and Family Fun Centers industry.
The industry has seen an average annual growth rate of 0.2% over the last five years, placing industry revenue at an expected $9.0 billion for 2014. Although there was some slight revenue growth during the recession, economic uncertainty caused firms to pause the development of additional establishments and deterred firms from entering the industry. Firms streamlined costs by delaying hiring additional workers in 2008 and reducing wages by about 1.6% 2009 in order to preserve profit margins. As the economy continues to recover from the recession, new entrants and wages are expected to increase, as is overall revenue. As per capita disposable rises, more consumers will be able to allocate expenditures toward leisure activities, including golf driving ranges and family fun centers. Furthermore, rising household income also translates into greater spending on food, beverages and merchandise items at industry establishments. The Golf Driving Ranges & Family Fun Centers industry is expected to grow at an average annual rate of 2.7% over the next five years. These growth trends bode extremely well for Golf Company as it establishes its brand in the marketplace.
1 “Golf Driving Ranges & Family Fun Centers in the US,” IBISWorld. 2014. Obtained at www.ibisworld.com.
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MARKET SIZE
The number of enterprises is expected to rise at an annualized rate of 1.4% to 17,139 operators during the five years to 2019. A number of small and independent operators will enter the market in order to appeal to a market niche of local consumers, such as golf and laser tag enthusiasts. As more time-strapped households value spending leisure time as a family, demand for golf driving ranges and family fun centers will increase. Employment is also expected to rise, at an annualized rate of 0.5% to 99,007 workers over the five-year period, as more industry operators implement a workforce that updates and operates equipment, especially during off-season periods. Moreover, as industry operators apply promotions and discount strategies to drive customer foot traffic, demand for employees will increase. These trends bode well for Golf Company, as they show the substantial profits that are available in the industry.
MARKET SEGMENTATION2
Consumers aged 17 and younger: Activities like miniature golf, batting cages, waterslides and carousels mainly appeal to children younger than 18. As a result, this age group is the most active market segment in the industry, estimated to generate 35.0% of industry revenue. Over the past five yeas, this demographic has been contributing a larger portion of industry revenue, as more health- conscious parents want their children to participate in physical activity, such as golf driving ranges.
Consumers aged from 18 to 40: The proportion of young adults aged from 18 to 25 in the population has increased in recent years, raising this segment’s industry market share. This age group tends to have more available leisure time and higher disposable income, which is often spent on recreational activities. Many of the amusement and recreation activities within this industry appeal to this market segment, which accounts for about 25.0% of industry revenue.
The 26-to-40 age group also has high disposable income and pursues sporting and amusement activities. While this age group is more likely to have children whom they would accompany to family entertainment centers, they also partake in other segments of the industry on their own, accounting for about 19.0% of industry revenue. Driving ranges, shooting ranges, club sports and water recreation activities appeal to this age group in particular.
Consumers aged from 41 to 60: The 41-to-60 age group, which includes some of the baby-boomer population, continues to drive sports and recreation participation, accounting for about 16.0% of revenue. Despite this fact, baby boomers account for proportionally less industry revenue than their population numbers may suggest, especially when compared to the younger categories. IBISWorld expects that this is the result of many baby boomers still being in the workforce, therefore having less leisure time. However, as baby boomers enter retirement, their participation rates in industry activities will increase.
Consumers aged 60 and older: The final market segment, made up of consumers aged 60 and older, accounts for about 5.0% of the market. This segment is beginning to increase in size as the early baby- boomer generation enters this age category. IBISWorld estimates that because this age category enjoys lighter physical activities, there will be an array of opportunities for facilities like driving ranges and other similar activities.
2 Ibid.
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A BIGGER PICTURE: NATIONWIDE DISTRIBUTION OF BUSINESS LOCATIONS3
The Golf Driving Ranges and Family Fun Centers industry is highly fragmented. In general, industry establishments follow the dispersion of the US population. The more highly populated regions typically attract a greater number of establishments because the travel time to amusement and recreational centers is reduced. This is not the case, however, for specialist activities like fishing, hiking and white-water rafting. Such amusement and recreational activities are typically based in regions where location and environmental factors are more suitable for those specific activities (e.g. the Great Lakes region and the states of Washington and Colorado). As a result, the popularity of certain activities can be geographically determined. For example, Maine is likely to have more ice hockey memberships than the national average, whereas Florida is more likely to have beachside activities.
The regions that hold the greatest number of establishments include the Southeast (21.9% of establishments), West (16.4%) and Mid-Atlantic (15.6%). These three regions also have the highest proportion of the US population, which explains the high degree of establishments. The Southeast, West and Mid-Atlantic have population proportions of 25.4%, 17.1% and 15.5%, respectively.
As a percentage of the total US population, the Rocky Mountains region has a 4.9 percentage point discrepancy between its number of establishments (8.5%) and its share of the population (3.6%). IBISWorld expects that the high concentration of recreational establishments in this region is the result of its high level of tourism (with an outdoors focus). Industry operators catering to tourists may offer activities including white-water rafting, kayaking, hiking, rock climbing, trail riding and other outdoor adventures. The states that hold the most establishments are California (with 8.9% of establishments), New York (6.5%), Texas (5.9%), Florida (5.9%), Pennsylvania (4.2%) and Illinois (4.2%). These six states have the highest proportion of the US
population, and, therefore, the development of establishments is directly meeting population demand.
TARGET MARKET
The primary target market for the services that are being offered by Golf Company will be sports enthusiasts of all ages. The wide range of products at Golf Company will provide something for every demographic. The company will employ a three prong approach; there will be targeted offerings for the younger demographic, the corporate clients and families. By diversifying its marketing efforts in the fashion mentioned, Golf Company will be able to efficiently establish its presence in the marketplace.
3 Ibid
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LOCATION: CHARLESTON, SOUTH CAROLINA Golf Company will be located on a 15-acre tract in a northern region of Charleston on Clements Ferry Road adjacent to a building located at 1980 Clements Ferry rd, Charleston, SC 29492. It is will be surrounded by a planned 8,000-acre mixed-use development that includes retail, office, hotel, and a projected 20,000 residential units. Specifically, the plan is highlighted by a new Town Center, as well as 1.9 million square feet of office space, a 625-room hotel, 135,000 square feet of neighborhood retail space, and approximately 1,900 residential units.
LOCATION: CHARLESTON DEMOGRAPHICS4
DEMOGRAPHICS CHARLESTON, SC
Total Population 372,803
Age range 25.4% are under the age of 18; 11.66% are between the ages of 20 and 24; 15.24% are between the ages of 25 and 34; 30.53% are between the ages of 35 and 59; and 17.08% are ages 60 or above
Gender 47.34% Male | 52.66% Female
Race 63.08% of the total population is white; 34% is Black or African American; 1.24% is Asian; and the remaining 1.68% is other races
Income Median HH income is $50,289; per capita income is $29,858 while 17.7% of persons are below the poverty level
Employers
The largest employers in Charleston SC are Berkeley County Schools, Blackbaud Inc, Carealliance Health Services, Charleston County, Charleston County School District, City of Charleston, College of Charleston, Department of Defense, Dorchester School District, Harris Teeter LLC, Medical University of SC Hospital, Publix Super Markets Inc, Robert Bosch Corporations, The Boeing Company, Trident Technical College, University Medical Associates Inc, Wal-Mart Associates and WJBD VA Medical Center
Education 38.4% of residents ages 25 or above have a college degree or higher
MARKET NEEDS
The local area has limited options of family fun centers available to its residents and visitors, and with the industry projected to have stronger growth trends over the course of the next several years, the need for family fun centers that offer unique opportunities for recreation will rise exponentially. This is precisely the area that Golf Company will address and one that will allow the Company to remain relevant well into the future.
4 “Charleston County,” US Census Bureau. Obtained at http://charlestonsc.areaconnect.com/statistics.htm
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GO TO MARKET PLAN
Golf Company recognizes that it must align the correct marketing channels with the business model set it place. In addition to driving new clients, the company has the following objectives in mind in respects to its marketing campaign:
Become a recognized market leader in the expanding Golf Driving Ranges & Family Fun Centers industry in Charleston, SC by providing a sanctuary for all things entertainment
Provide a fun and engaging local destination for a wide variety of clientele
Build corporate and non-corporate memberships
Below are the channels that align with the company vision:
NETWORKING:
The management team set in place has made it their initiative to network with potential industry partners, high end clientele and golf professionals to promote Golf Company. The Company will solicit executive memberships and host business golf tournaments. Golf Company personnel will be encourage to network directly with their targeted business demographic.
SOCIAL MEDIA:
The Company will manage its brand on social media sites, such as Facebook and Twitter.
PRESS RELEASES:
The local and national press is a highly effective way to promote Golf Company. The Company will solicit an out PR agency to promote its brand. As a one of a kind service in its local community, Golf Company will command the attention of its city.
COUPON MARKETING:
With over 600 Million deals sold, Groupon is the world’s largest local marketplace and a highly effective way of enticing local consumers to try a new product or service. Using a directed marketing platform such as Groupon and Charleston Deals, the Company will offer deals to attract customers.
WEBSITE:
The Company will develop a content rich website that clearly outlines all its services. Golf Company will hire an outside agency to develop a high end destination website that will instill confidence in its target client. The website will service as a platform to drive new clients via SEO traffic and other paid search marketing efforts
Golf Company
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MODEL COMPANIES
Below are companies in various regions that serve as a model for Golf Company.
TopGolf Golfland Entertainment Centers, Inc.
Year Founded 2000 1953
Annual Sales $15MM $5 - $10MM
Entity Type Corporation Corporation
Products Offered Food and beverage, miniature golf
courses, driving ranges and lessons. Raceway, miniature golf, arcade, laser
tag, water park
Target Market Recreational or expert golfers Racing enthusiasts in California and
Arizona
Pricing
Prices vary based on location but are approximately as follows: $25-45 an hour depending on the time of play,
$80-$250 a month for monthly membership
$1 - $36 for admission; $4 - $5 for equipment and locker rentals; $40 - $100
for cabana rentals; $5 - $7.75 for miniature golf; $4.50 - $6.50 for laser tag; $6 for 6 minutes on raceway; online and
bulk discounts available
Strengths 20 locations across 10 states Variety of amenities
Weaknesses Outdoor facility Efforts are spread thin
A CLOSER LOOK: TOP GOLF5
Established in 2000 in the United Kingdom by World Golf Systems, TopGolf has since expanded to seven locations in Dallas; Alexandria, VA; and Chicago. Additionally, each facility costs between $5.0 and $7.0 million to construct. Golf Entertainment International, a London-based private group, bought franchise rights to the company’s Canadian and US locations in 2004, and the company’s US headquarters are in Wood Dale, IL.
TopGolf has three primary business segments: food and beverage sales, miniature golf courses and driving ranges. The games segment generates the majority (55.0%) of the company’s revenue, with food and beverage sales making up about 20.0% of revenue. Retail sales, lessons and events constitute the remainder of company revenue. Customers with significant leisure time account for 50.0% of clients that choose TopGolf as an alternative to bowling or a movie. The company’s remaining customers are either recreational or expert golfers and IBISWorld estimates that company revenue will total $15.0 million in 2014.
THE GOLF COMPANY ADVATANGE
Location and atmosphere
Wide array of lessons and programs
Top quality sports bar and grill including full service top shelf bar and large on tap beer selection
Variety of Membership opportunities
Unique amenities: Turf Tees, two-tiered heated and cooled tee stations, batting cages
5 “Golf Driving Ranges & Family Fun Centers in the US,” IBISWorld. 2014. Obtained at www.ibisworld.com
Golf Company
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LOCAL COMPETITION
Charleston National Country Club
Patriots Point Dunes West Golf and River Club
Distance 12 miles 15 miles 9.7 miles
Strengths - Public
Has previously hosted several regional qualifying
tournaments
- Voted by Golf Digest as “Top 10 Resort Course”
Weakness - Bare bones - No climate control
or lighting Minimal amenities
- Practice area only for those playing at the Patriots Point Golf Course
- No driving range just a traditional golf course
SWOT ANALYSIS
Strengths Weaknesses
Innovative business model
Provides an family fun experience
Variety of amenities
Company needs funding and working capital for successful launch
As a new business, the Company must build its credibility
Opportunities Threats
Increasing popularity of family fun centers
Increasing disposable income among consumers in Charleston
Growth among older demographic segments
Larger companies that have more resources and the ability to reach deeper into the market
KEYS TO SUCCESS6
Easy access for clients: A high profile location offering easy access and parking will drive consumer demand.
Business expertise of operators: Because of the copious entertainment options available to consumers, industry firms must have skills in operating a business profitably.
Provision of appropriate facilities: Having cutting-edge equipment, especially for family fun centers, can be a key advantage to expanding revenue and competing with other industry establishments.
Having a good technical knowledge of the product: Skilled staff who can demonstrate the use of various equipment will drive customer loyalty.
Business expertise of operators: Because of the copious entertainment options available to consumers, industry firms must have skills in operating a business profitably.
Carrying out all necessary maintenance to keep facilities in good condition: Regular facility maintenance and upkeep is required to ensure customer safety and to help extend the life-span of equipment. This will help reduce operating costs and increase profit
6 “Golf Driving Ranges & Family Fun Centers in the US,” IBISWorld.
Golf Company
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RETURN ON INVESTMENT (ROI)
The Company is seeking a cash infusion of $10M to be used in a variety of business areas. The following is a listing of the proposed return scenario for investors or investment groups.
*The company valuation has been estimated by management based on product development and future revenue. The 5 year valuation is calculated at 8X EBITA
Investment Offering Seed Round 1 Round 2 Exit
Proposed Year: 1 2 3 5
Valuation, Investment, Shares
Investment Amount $10,000,000 $0 $0
Equity Share Offering Percentage 70.00% 0.00% 0.00%
Valuation $14,285,714 $0 $0 $37,642,560
Investor Exit Payout $26,349,792 $0 $0
Investor Years Until Exit 4 3 2
Investor IRR 27.41% 0.00% 0.00%
Share Ownership Year 1 Year 2 Year 3 Year 5
Founders' Shares 10,000,000 10,000,000 10,000,000 10,000,000
Stock Split Multiple 0 0 0
Stock Options Issued 0 0 0 0
Investor Shares Issued 23,333,333 0 0
Price per share $0.43 $0.00 $0.00 $1.13
Options Holders' Shares 0 0 0 0
Year 1 Investors' Shares 23,333,333 23,333,333 23,333,333 23,333,333
Year 2 Investors' Shares 0 0 0
Year 3 Investors' Shares 0 0
Total Shares Outstanding 33,333,333 33,333,333 33,333,333 33,333,333
Equity Ownership Percentage Year 1 Year 2 Year 3 Year 5
Founders' Equity 30.00% 30.00% 30.00% 30.00%
Option Holders' Equity 0.00% 0.00% 0.00% 0.00%
Year 1 Investors' Equity 70.00% 70.00% 70.00% 70.00%
Year 2 Investors' Equity 0.00% 0.00% 0.00%
Year 3 Investors' Equity 0.00% 0.00%
Total Equity 100.00% 100.00% 100.00% 100.00%
Investors' Equity 70.00% 70.00% 70.00% 70.00%
Founders' & Employees' Equity 30.00% 30.00% 30.00% 30.00%
Golf Company
16 | P a g e
PERSONNEL FORECAST
The personnel forecast below shows the staffing needs for the next five years.
Personnel Plan Year 1 Year 2 Year 3 Year 4 Year 5
General Services
Personnel
General Manager $120,000 $120,000 $120,000 $120,000 $120,000
Assistant Manager $288,000 $288,000 $288,000 $288,000 $288,000
Hourly Employee $720,000 $720,000 $720,000 $720,000 $720,000
Adult Golf Pro $101,250 $112,500 $125,000 $137,500 $151,250
Subtotal $1,229,250 $1,240,500 $1,253,000 $1,265,500 $1,279,250
Restaurant Personnel
Executive Chef $55,000 $55,000 $55,000 $55,000 $55,000
Restaurant Manager $50,000 $50,000 $50,000 $50,000 $50,000
Front of House Manager $45,000 $45,000 $45,000 $45,000 $45,000
Back of House Manager $45,000 $45,000 $45,000 $45,000 $45,000
Cook $126,000 $126,000 $126,000 $126,000 $126,000
Server $187,500 $187,500 $187,500 $187,500 $187,500
Assistant Manager $114,000 $114,000 $114,000 $114,000 $114,000
Dishwasher $80,000 $80,000 $80,000 $80,000 $80,000
Subtotal $702,500 $702,500 $702,500 $702,500 $702,500
Total Payroll $1,931,750 $1,943,000 $1,955,500 $1,968,000 $1,981,750
Job Titles Positions created
Executive Chef 1
Restaurant Manager 1
Front of House Manager 1
Back of House Manager 1
Cooks 7
Servers 15
Assistant Manager 3
Dishwashers 10
Facility General Manager 2
Facility Assistant Managers 6
Facility Hourly Employee 36
Golf Pro Trainers 4
Summer Camp Counselors 6
Kids Golf Pro Trainers 2
After School Program Employee 5
Golf Company
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REVENUE AND P&L FORECAST
Sales Forecast Year 1 Year 2 Year 3 Year 4 Year 5
Sales
General Services $711,938 $784,890 $872,100 $959,310 $1,055,241
Membership $724,008 $702,909 $780,965 $858,022 $944,407
Sponsorship $572,701 $630,000 $700,000 $770,000 $847,000
Restaurant $2,052,012 $2,369,250 $2,632,500 $2,925,000 $3,250,000
Kids Program $170,348 $190,980 $212,200 $233,420 $256,762
Total Sales $4,231,007 $4,678,029 $5,197,765 $5,745,752 $6,353,410
Direct Cost of Sales Year 1 Year 2 Year 3 Year 4 Year 5
Merchant Fees $126,930 $140,341 $155,933 $172,373 $190,602
Subtotal Direct Cost
of Sales$126,930 $140,341 $155,933 $172,373 $190,602
Golf Company
18 | P a g e
Pro Forma Profit and Loss Year 1 Year 2 Year 3 Year 4 Year 5
Sales $4,231,007 $4,678,029 $5,197,765 $5,745,752 $6,353,410
Direct Cost of Sales $126,930 $140,341 $155,933 $172,373 $190,602
General Services Payroll $1,229,250 $1,240,500 $1,253,000 $1,265,500 $1,279,250
Other Costs of Sales $4,908 $5,427 $6,029 $6,665 $7,370
General Services Payroll Taxes $184,388 $186,075 $187,950 $189,825 $191,888
Total Cost of Sales $1,545,476 $1,572,342 $1,602,912 $1,634,363 $1,669,110
Gross Margin $2,685,531 $3,105,686 $3,594,853 $4,111,389 $4,684,300
Gross Margin % 63.47% 66.39% 69.16% 71.56% 73.73%
Operating Expenses
Restaurant Expenses
Restaurant Payroll $702,500 $702,500 $702,500 $702,500 $702,500
Restaurant Payroll Taxes $105,375 $105,375 $105,375 $105,375 $105,375
Advertising/Promotion $0 $0 $0 $0 $0
Spoilage $61,680 $70,170.43 $77,966.48 $86,186.28 $97,500
Total Restaurant Expenses $869,555 $878,045 $885,841 $894,061 $905,375
Restaurant % 20.55% 18.77% 17.04% 15.56% 14.25%
Kids Program Expenses
Kids Program Payroll $110,350 $117,100 $124,600 $132,100 $140,350
Marketing/Promotion $0 $0 $0 $0 $0
Depreciation $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0
Insurance $0 $0 $0 $0 $0
Kids Program Payroll Taxes $306,315 $309,015 $312,015 $315,015 $318,315
Other Kids Program Expenses $0 $0 $0 $0 $0
Total Kids Program Expenses $416,665 $426,115 $436,615 $447,115 $458,665
Kids Program % 9.85% 9.11% 8.40% 7.78% 7.22%
Other Expenses:
Other Payroll $0 $0 $0 $0 $0
Building Maintainace $18,000 $18,000 $18,000 $18,000 $18,000
Utilities $29,160 $32,400 $36,000 $39,600 $43,560
Insurance $24,300 $27,000 $30,000 $33,000 $36,300
Advertising $38,880 $43,200 $48,000 $52,800 $58,080
Business License $1,500 $1,500 $1,500 $1,500 $1,500
Janitorial Service $12,000 $12,000 $12,000 $12,000 $12,000
Attorney/Legal Fees $9,720 $10,800 $12,000 $13,200 $14,520
Accounting Fees $1,944 $2,160 $2,400 $2,640 $2,904
Administrative $9,720 $10,800 $12,000 $13,200 $14,520
Computer $2,198 $2,442 $2,714 $2,985 $3,284
Golf Cart Ball Retriever $1,467 $1,631 $1,812 $1,993 $2,192
Business Consultant $9,720 $10,800 $12,000 $13,200 $14,520
Total Other Expenses $158,610 $172,733 $188,425 $204,118 $221,380
Other % 3.75% 3.69% 3.63% 3.55% 3.48%
Total Operating Expenses $1,444,830 $1,476,893 $1,510,882 $1,545,294 $1,585,420
Profit Before Interest and Taxes $1,278,702 $1,666,793 $2,121,971 $2,604,095 $3,136,880
EBITDA $1,278,702 $1,666,793 $2,121,971 $2,604,095 $3,136,880
Interest Expense $0 $0 $0 $0 $0
Taxes Incurred $383,611 $500,038 $636,591 $781,228 $941,064
Other Income
Pro Shop Lease Income $50,000 $50,000 $50,000 $50,000 $50,000
$0 $0 $0 $0 $0
Total Other Income $50,000 $50,000 $50,000 $50,000 $50,000
Other Expense
Property Tax $12,000 $12,000 $12,000 $12,000 $12,000
Other Expense Account Name $0 $0 $0 $0 $0
Total Other Expense $12,000 $12,000 $12,000 $12,000 $12,000
Net Other Income $38,000 $38,000 $38,000 $38,000 $38,000
Net Profit $895,091 $1,166,755 $1,485,380 $1,822,866 $2,195,816
Net Profit/Sales 21.16% 24.94% 28.58% 31.73% 34.56%
Break Even-Analysis
Monthly Revenue Break-Even $124,126
Assumptions:
Average Percent Variable Cost 3%
Estimated Monthly Fixed Cost $120,402
Happy’s Long Ball Driving Range
19 | P a g e
PROJECTED CASH FLOW
Pro Forma Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5
Cash Received
Cash from Operations Cash Sales $4,231,007 $4,678,029 $5,197,765 $5,745,752 $6,353,410
Subtotal Cash from Operations $4,231,007 $4,678,029 $5,197,765 $5,745,752 $6,353,410
Additional Cash Received
Non Operating (Other) Income $50,000 $50,000 $50,000 $50,000 $50,000
Sales Tax, VAT, HST/GST Received
$0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities (interest-free)
$0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $4,281,007 $4,728,029 $5,247,765 $5,795,752 $6,403,410
Expenditures Year 1 Year 2 Year 3 Year 4 Year 5
Expenditures from Operations Cash Spending $2,042,100 $2,060,100 $2,080,100 $2,100,100 $2,122,100
Bill Payments $1,116,625 $1,563,704 $1,657,692 $1,847,396 $2,058,621
Subtotal Spent on Operations $3,158,725 $3,623,804 $3,737,792 $3,947,496 $4,180,721
Additional Cash Spent Non Operating (Other) Expense $12,000 $12,000 $12,000 $12,000 $12,000
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing
$0 $0 $0 $0 $0
Other Liabilities Principal Repayment
$0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment
$0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $3,170,725 $3,635,804 $3,749,792 $3,959,496 $4,192,721
Net Cash Flow $1,110,282 $1,092,225 $1,497,973 $1,836,256 $2,210,688
Cash Balance $4,709,404 $5,801,629 $7,299,602 $9,135,858 $11,346,546
Happy’s Long Ball Driving Range
20 | P a g e
PROJECTED BALANCE SHEET
Pro Forma Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current Assets Cash $4,709,404 $5,801,629 $7,299,602 $9,135,858 $11,346,546
Inventory $18,787 $20,280 $22,644 $24,903 $27,545
Other Current Assets $566,778 $566,778 $566,778 $566,778 $566,778
Total Current Assets $5,294,969 $6,388,687 $7,889,024 $9,727,539 $11,940,870
Long-term Assets Long-term Assets $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050
Accumulated Depreciation
$0 $0 $0 $0 $0
Total Long-term Assets $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050
Total Assets $7,336,019 $8,429,737 $9,930,074 $11,768,589 $13,981,920
Liabilities and Capital Year 1 Year 2 Year 3 Year 4 Year 5
Current Liabilities Accounts Payable $195,558 $122,521 $137,478 $153,127 $170,641
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current Liabilities
$195,558 $122,521 $137,478 $153,127 $170,641
Long-term Liabilities $0 $0 $0 $0 $0
Total Liabilities $195,558 $122,521 $137,478 $153,127 $170,641
Paid-in Capital $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000
Retained Earnings ($3,754,630) ($2,859,539) ($1,692,784) ($207,404) $1,615,462
Earnings $895,091 $1,166,755 $1,485,380 $1,822,866 $2,195,816
Total Capital $7,140,461 $8,307,216 $9,792,596 $11,615,462 $13,811,278
Total Liabilities and Capital
$7,336,019 $8,429,737 $9,930,074 $11,768,589 $13,981,920
Net Worth $7,140,461 $8,307,216 $9,792,596 $11,615,462 $13,811,278
21 | P a g e
APPENDIX 1: YEAR ONE FINANCIALS
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
Sales General Services $29,500 $33,040 $37,005 $41,446 $46,420 $51,990 $58,229 $65,216 $73,042 $81,807 $91,624 $102,619
Membership $30,000 $33,600 $37,632 $42,148 $47,206 $52,871 $59,216 $66,322 $74,281 $83,195 $93,178 $104,359
Sponsorship $21,000 $23,940 $27,292 $31,113 $35,469 $40,435 $46,096 $52,549 $59,906 $68,293 $77,854 $88,754
Restaurant $80,000 $90,400 $102,152 $115,432 $130,438 $147,395 $166,556 $188,208 $212,675 $240,323 $271,565 $306,868
Kids Program $7,500 $8,325 $9,241 $10,258 $11,386 $12,638 $14,028 $15,571 $17,284 $19,185 $21,295 $23,637
Total Sales $168,000 $189,305 $213,322 $240,397 $270,919 $305,329 $344,125 $387,866 $437,188 $492,803 $555,516 $626,237
Direct Cost of 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
Merchant Fees $5,040 $5,679 $6,400 $7,212 $8,128 $9,160 $10,324 $11,636 $13,116 $14,784 $16,665 $18,787
Row 2 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Row 3 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $5,040 $5,679 $6,400 $7,212 $8,128 $9,160 $10,324 $11,636 $13,116 $14,784 $16,665 $18,787
22 | P a g e
APPENDIX 2: PERSONNEL PLAN
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
General Services Personnel General Manager
$10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Assistant Manager
$24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000
Hourly Employee
$60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000
Adult Golf Pro
$8,438 $8,438 $8,438 $8,438 $8,438 $8,438 $8,438 $8,438 $8,438 $8,438 $8,438 $8,438
Subtotal
$102,438 $102,438 $102,438 $102,438 $102,438 $102,438 $102,438 $102,438 $102,438 $102,438 $102,438 $102,438
Restaurant Personnel
Executive Chef
$4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583 $4,583
Restaurant Manager
$4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
Front of House Manager
$3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750
Back of House Manager
$3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750 $3,750
Cook
$10,500 $10,500 $10,500 $10,500 $10,500 $10,500 $10,500 $10,500 $10,500 $10,500 $10,500 $10,500
Server
$15,625 $15,625 $15,625 $15,625 $15,625 $15,625 $15,625 $15,625 $15,625 $15,625 $15,625 $15,625
Assistant Manager
$9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
Dishwasher
$6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667 $6,667
Subtotal
$58,542 $58,542 $58,542 $58,542 $58,542 $58,542 $58,542 $58,542 $58,542 $58,542 $58,542 $58,542
Kids Program Personnel
Kids Golf Pro
$5,063 $5,063 $5,063 $5,063 $5,063 $5,063 $5,063 $5,063 $5,063 $5,063 $5,063 $5,063
After School Program Employee
$3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333
Summer Camp Counselor
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $9,600
Subtotal
$8,396 $8,396 $8,396 $8,396 $8,396 $8,396 $8,396 $8,396 $8,396 $8,396 $8,396 $17,996
Other Personnel
Name or Title or Group
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Name or Title or Group
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People
100 100 100 100 100 100 100 100 100 100 100 100
Total Payroll
$169,375 $169,375 $169,375 $169,375 $169,375 $169,375 $169,375 $169,375 $169,375 $169,375 $169,375 $178,975
23 | P a g e
APPENDIX 3: PRO FORMA PROFIT AND LOSS
Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
$168,000 $189,305 $213,322 $240,397 $270,919 $305,329 $344,125 $387,866 $437,188 $492,803 $555,516 $626,237
Direct Cost of Sales
$5,040 $5,679 $6,400 $7,212 $8,128 $9,160 $10,324 $11,636 $13,116 $14,784 $16,665 $18,787
General Services Payroll
$102,438 $102,438 $102,438 $102,438 $102,438 $102,438 $102,438 $102,438 $102,438 $102,438 $102,438 $102,438
Other Costs of Sales
$195 $220 $247 $279 $314 $354 $399 $450 $507 $572 $644 $726
General Services Payroll Taxes 15% $15,366 $15,366 $15,366 $15,366 $15,366 $15,366 $15,366 $15,366 $15,366 $15,366 $15,366 $15,366
Total Cost of Sales
$123,038 $123,702 $124,450 $125,294 $126,245 $127,317 $128,526 $129,889 $131,426 $133,159 $135,113 $137,317
Gross Margin
$44,962 $65,603 $88,872 $115,103 $144,674 $178,012 $215,599 $257,977 $305,762 $359,644 $420,403 $488,920
Gross Margin %
26.76% 34.65% 41.66% 47.88% 53.40% 58.30% 62.65% 66.51% 69.94% 72.98% 75.68% 78.07%
Operating Expenses
Restaurant Expenses
Restaurant Payroll
$58,542 $58,542 $58,542 $58,542 $58,542 $58,542 $58,542 $58,542 $58,542 $58,542 $58,542 $58,542
Restaurant Payroll Taxes 15% $8,781 $8,781 $8,781 $8,781 $8,781 $8,781 $8,781 $8,781 $8,781 $8,781 $8,781 $8,781 Advertising/Promotion
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Spoilage
$2,520.00 $2,712.00 $3,064.56 $3,462.96 $3,913.14 $4,421.85 $4,996.68 $5,646.24 $6,380.25 $7,209.69 $8,146.95 $9,206.04
Total Restaurant Expenses
$69,843 $70,035 $70,387 $70,786 $71,236 $71,745 $72,320 $72,969 $73,703 $74,533 $75,470 $76,529
Restaurant %
41.57% 37.00% 33.00% 29.45% 26.29% 23.50% 21.02% 18.81% 16.86% 15.12% 13.59% 12.22%
Kids Program Expenses
Kids Program Payroll
$8,396 $8,396 $8,396 $8,396 $8,396 $8,396 $8,396 $8,396 $8,396 $8,396 $8,396 $17,996
Marketing/Promotion
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Depreciation
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Kids Program Payroll Taxes 15% $25,406 $25,406 $25,406 $25,406 $25,406 $25,406 $25,406 $25,406 $25,406 $25,406 $25,406 $26,846 Other Kids Program Expenses
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Kids Program Expenses
$33,802 $33,802 $33,802 $33,802 $33,802 $33,802 $33,802 $33,802 $33,802 $33,802 $33,802 $44,842
Kids Program %
20.12% 17.86% 15.85% 14.06% 12.48% 11.07% 9.82% 8.71% 7.73% 6.86% 6.08% 7.16%
Other Expenses:
Other Payroll
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
24 | P a g e
Building Maintenance
$1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Utilities
$2,430 $2,430 $2,430 $2,430 $2,430 $2,430 $2,430 $2,430 $2,430 $2,430 $2,430 $2,430
Insurance
$2,025 $2,025 $2,025 $2,025 $2,025 $2,025 $2,025 $2,025 $2,025 $2,025 $2,025 $2,025
Advertising
$3,240 $3,240 $3,240 $3,240 $3,240 $3,240 $3,240 $3,240 $3,240 $3,240 $3,240 $3,240
Business License
$125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Janitorial Service
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Attorney/Legal Fees
$810 $810 $810 $810 $810 $810 $810 $810 $810 $810 $810 $810
Accounting Fees
$162 $162 $162 $162 $162 $162 $162 $162 $162 $162 $162 $162
Administrative
$810 $810 $810 $810 $810 $810 $810 $810 $810 $810 $810 $810
Computer
$183 $183 $183 $183 $183 $183 $183 $183 $183 $183 $183 $183
Golf Cart Ball Retriever
$122 $122 $122 $122 $122 $122 $122 $122 $122 $122 $122 $122
Business Consultant
$810 $810 $810 $810 $810 $810 $810 $810 $810 $810 $810 $810
Total Other Expenses
$13,217 $13,217 $13,217 $13,217 $13,217 $13,217 $13,217 $13,217 $13,217 $13,217 $13,217 $13,217
Other %
7.87% 6.98% 6.20% 5.50% 4.88% 4.33% 3.84% 3.41% 3.02% 2.68% 2.38% 2.11%
Total Operating Expenses
$116,862 $117,054 $117,407 $117,805 $118,256 $118,764 $119,339 $119,989 $120,723 $121,552 $122,489 $134,588
Profit Before Interest and Taxes
($68,734) ($48,285) ($25,369) $464 $29,585 $62,414 $99,426 $141,155 $188,206 $241,259 $301,080 $357,499
EBITDA
($68,734) ($48,285) ($25,369) $464 $29,585 $62,414 $99,426 $141,155 $188,206 $241,259 $301,080 $357,499
Interest Expense
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred
($20,620) ($14,485) ($7,611) $139 $8,876 $18,724 $29,828 $42,346 $56,462 $72,378 $90,324 $107,250
Other Income
Pro Shop Lease Income
$4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Other Income
$4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
Other Expense
Property Tax
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Other Expense Account Name
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Other Expense
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Net Other Income
$3,167 $3,167 $3,167 $3,167 $3,167 $3,167 $3,167 $3,167 $3,167 $3,167 $3,167 $3,167
Net Profit
($48,114) ($33,799) ($17,758) $325 $20,710 $43,690 $69,599 $98,808 $131,744 $168,881 $210,756 $250,249
Net Profit/Sales
-28.64% -17.85% -8.32% 0.14% 7.64% 14.31% 20.22% 25.47% 30.13% 34.27% 37.94% 39.96%
25 | P a g e
APPENDIX 4: PRO FORMA CASH FLOW
Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales
$168,000 $189,305 $213,322 $240,397 $270,919 $305,329 $344,125 $387,866 $437,188 $492,803 $555,516 $626,237
Subtotal Cash from Operations
$168,000 $189,305 $213,322 $240,397 $270,919 $305,329 $344,125 $387,866 $437,188 $492,803 $555,516 $626,237
Additional Cash Received
Non-Operating (Other) Income
$4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Current Borrowing
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free)
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received
$172,167 $193,472 $217,489 $244,564 $275,086 $309,496 $348,292 $392,033 $441,355 $496,970 $559,683 $630,404
Expenditures
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending
$169,375 $169,375 $169,375 $169,375 $169,375 $169,375 $169,375 $169,375 $169,375 $169,375 $169,375 $178,975
Bill Payments
$1,496 $45,077 $51,459 $58,745 $67,031 $78,654 $96,897 $109,971 $124,713 $141,337 $160,084 $181,162
Subtotal Spent on Operations
$170,870 $214,452 $220,834 $228,120 $236,406 $248,028 $266,272 $279,346 $294,088 $310,712 $329,459 $360,137
Additional Cash Spent
Non Operating (Other) Expense
$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Sales Tax, VAT, HST/GST Paid Out
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent
$171,870 $215,452 $221,834 $229,120 $237,406 $249,028 $267,272 $280,346 $295,088 $311,712 $330,459 $361,137
Net Cash Flow
$296 ($21,980) ($4,345) $15,444 $37,679 $60,467 $81,020 $111,686 $146,266 $185,257 $229,224 $269,267
Cash Balance
$3,599,418 $3,577,438 $3,573,093 $3,588,537 $3,626,216 $3,686,683 $3,767,703 $3,879,390 $4,025,656 $4,210,913 $4,440,137 $4,709,404
26 | P a g e
APPENDIX 5: PRO FORMA BALANCE SHEET
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets Cash $3,599,122 $3,599,418 $3,577,438 $3,573,093 $3,588,537 $3,626,216 $3,686,683 $3,767,703 $3,879,390 $4,025,656 $4,210,913 $4,440,137 $4,709,404 Inventory $38,420 $33,380 $27,701 $21,301 $14,089 $8,128 $9,160 $10,324 $11,636 $13,116 $14,784 $16,665 $18,787 Other Current Assets
$566,778 $566,778 $566,778 $566,778 $566,778 $566,778 $566,778 $566,778 $566,778 $566,778 $566,778 $566,778 $566,778
Total Current Assets
$4,204,320 $4,199,576 $4,171,917 $4,161,172 $4,169,404 $4,201,122 $4,262,621 $4,344,805 $4,457,803 $4,605,550 $4,792,475 $5,023,581 $5,294,969
Long-term Assets
Long-term Assets
$2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050
Accumulated Depreciation
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets
$2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050 $2,041,050
Total Assets $6,245,370 $6,240,626 $6,212,967 $6,202,222 $6,210,454 $6,242,172 $6,303,671 $6,385,855 $6,498,853 $6,646,600 $6,833,525 $7,064,631 $7,336,019
Liabilities and Capital
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable
$0 $43,370 $49,510 $56,523 $64,430 $75,438 $93,248 $105,833 $120,023 $136,025 $154,069 $174,418 $195,558
Current Borrowing
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities
$0 $43,370 $49,510 $56,523 $64,430 $75,438 $93,248 $105,833 $120,023 $136,025 $154,069 $174,418 $195,558
Long-term Liabilities
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $43,370 $49,510 $56,523 $64,430 $75,438 $93,248 $105,833 $120,023 $136,025 $154,069 $174,418 $195,558
Paid-in Capital $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 Retained Earnings
($3,754,630) ($3,754,630) ($3,754,630) ($3,754,630) ($3,754,630) ($3,754,630) ($3,754,630) ($3,754,630) ($3,754,630) ($3,754,630) ($3,754,630) ($3,754,630) ($3,754,630)
Earnings $0 ($48,114) ($81,913) ($99,671) ($99,346) ($78,636) ($34,946) $34,652 $133,461 $265,205 $434,086 $644,842 $895,091 Total Capital $6,245,370 $6,197,256 $6,163,457 $6,145,699 $6,146,024 $6,166,734 $6,210,424 $6,280,022 $6,378,831 $6,510,575 $6,679,456 $6,890,212 $7,140,461 Total Liabilities and Capital
$6,245,370 $6,240,626 $6,212,967 $6,202,222 $6,210,454 $6,242,172 $6,303,671 $6,385,855 $6,498,853 $6,646,600 $6,833,525 $7,064,631 $7,336,019
Net Worth $6,245,370 $6,197,256 $6,163,457 $6,145,699 $6,146,024 $6,166,734 $6,210,424 $6,280,022 $6,378,831 $6,510,575 $6,679,456 $6,890,212 $7,140,461