level 5 corporate presentation
TRANSCRIPT
LEVEL [5] BUSINESS PLANPrepared By:
Ms. Gillian Zaremba, Chief Executive OfficerMr. Nathan Shelton, Chief Operations / Information Officer
Mr. Richard Szeszko, Chief Financial Offer
Keller Graduate School of ManagementMGMT 600 – CAPSTONE
Mr. Robert WebsterOctober 20, 2015
LEVEL [5]Be Adventurous. Be Bold. Be Extreme.
• LEVEL [5] brings an extreme twist to the amusement and recreation industry offering a variety of adrenaline packed activities in one location.
• Multi-level facility offering a niche of extreme sports & adrenaline packed • games and activities.
• Seeking a $7M investment to assist with our start up costs in becoming operational.
• We’re offering a 28% stake in the company with a 40% annual ROI.
AGENDA• Introductions • Company Overview• Sales & Marketing Strategies• Operations & Technology• Key Staffing, Job Roles & Responsibilities• Financials & Projections• Closing Statements
INTRODUCTIONS• Gillian Zaremba, Marketing & Chief Executive
Officer• 2003 Graduate of DeVry University• Bachelors Degree in Business Administration
• Nathan Shelton, Chief Operations / Information Officer• 2013 Graduate of DeVry University• Bachelors Degree in Technical Management
• Richard Szeszko, Chief Financial Officer• 2007 Graduate of DeVry University• Bachelors Degree in Business Administration
LEVEL [5] VISION & MISSIONMission StatementLEVEL [5] brings a new concept to the extreme sports and gaming industry by offering nothing less than a safe and adventurous experience for all. Elevate your play at LEVEL [5].
Vision StatementBe Adventurous. Be Bold. Be Extreme.
LEVEL [5] COMPANY OVERVIEW• Concept was created in 2015 in response to emerging trends in the sports and
entertainment industry.
• The sports & entertainment industry in the US generates more than $10 billion dollars annually.
• The x-games industry, along with indoor sports facility management industry, are two of the fastest growing business sectors in today’s entertainment markets.
• We intend to capitalize on the success of this industry by capturing several niche product lines making them available in one central location.
WHAT WE OFFER• Indoor Skydiving
• Single & Dual Dive Pages• Family Dive Packages• Corporate Packages
• Extreme Go-Kart Racing• (2) Go-kart racing tracks over 1,000 linear feet per track• (50) Zero emission, all-electric, high performance go-karts
• Indoor Rock Climbing• (4) 8’ x 40’ rock climbing walls• Climbing technique classes, youth programs, group events, birthday parties &
corporate events
• Extreme Simulator Gaming Machines• (4) Golf, (1) Surf, (1) Ski / Snowboard, (1) Hockey, (1) Combined with 6 games to
choose from• State of the art infraed tracking systems & lifelike graphics• Golf / gaming leagues, tournaments, on-screen advertising, rehabilitation, swing
analysis
• Apparel / Merchandise Sales• A variety of products for sale such as t-shirts, hats, sports gear and equipment.
WHAT WE OFFER• Extreme Laser Tag
• Enjoy mission based games such as zombie hunting and extreme combat.• Great for any ages, increases teamwork and communication skill building.
• Extreme Archery Tag• Completely new to the Chicagoland area.• Enjoy gaming based off of “Hunger Games” and zombie hunting.
• Loft Area: Private Parties, Corporate Meetings & Events • Perfect for any personal or work-related events for up to 500 people.• Variety of meeting and breakout space, equipment, features and amenities.• Impressive environment to entertain prospective clients, customers or sponsors.
• Food & Beverage outsourced by CraftWorks Restaurants & Breweries, Inc.• A multi-branded restaurant operating a combined total of 195 restaurants.• Rock Bottom Restaurants & Breweries, Gordon Biersch Brewery Restaurants
and Old Chicago Pizza and Taproom.• Largest operator of restaurants serving beer that is brewed on-site and over 300
varieties.• CraftWorks will sell $2.4M in sales in 2017.
TARGET MARKET• LEVEL [5] is positioned at 3200 Squib Avenue in Rolling Meadows, Illinois.
• Cook County, 15 miles west of Chicago, Illinois.• Rolling Meadows population is approximately 75,000 with continued growth
year after year.
• Primary Research: Survey Monkey, surveyed 80 individuals.• 96% of the target market is 24+ years old.• Possess a high school degree or higher.• Of that 96%, 60% have children.• More than 50% of the target market resides in a household with a combined
annual income of $60,000 or more.
• Secondary Research• Primary Target Market: Male and females 25 years old and up, high school
graduate & above.
TARGET MARKET• Secondary Research
• Primary Target Market• Male and females 25 years old and up. • High school graduate & above.• All Rolling Meadows and surrounding cities within a
75 mile radius.
• Secondary Target Market• Family households with a combined annual income of
$60,000 or more.• All Rolling Meadows and surrounding cities within a 25 mile radius.
• Tertiary Target Market• All individuals employed within Rolling Meadows and surrounding cities
within a 25 mile radius.• All school districts, private and public within Rolling Meadows and
surrounding cities within a 25 mile radius.
MARKETING CAMPAIGN STRATEGY• Partnering with Red Caffeine Marketing Firm
• Intend to acquire customers through a strategic annual marketing plan• Traditional sales process and campaign planning• Mass marketing & direct marketing
• Each product line will have its own dedicated individual campaign schedule
Customer AcquisitionSales Process Campaign PlanningTraditional Media Digital SEO & SEM
(Search Engine Optimization & Search Engine Marketing)
Direct Mail Online AdvertisingPublicity Social Media
Telemarketing Email MarketingEvents
SALES STRATEGIES & TACTICSGoa1 One• To achieve a profitable business by achieving positive growth revenue by May 1, 2021.
Increase sales through the use of separate marketing channels, throughout the five years.• Strategy: Increase profitability through controlling costs and driving sales.• Tactics: Control payroll costs by cross training and hiring motivational “startup
minded” staff such as retirees, college students, and sport minded individuals. Develop a spending plan to help monitor costs for six months.
Goal Two• Establish a promotional marketing campaign with a 15% return within year one.
• Strategy: Work with Red Caffeine to develop custom marketing campaigns for primary, secondary and tertiary markets.
• Tactics: Place a ¼ page ad weekly with the local newspaper to promote special events around targeted product lines. Utilize social media such as Facebook, Yelp, and LEVEL [5]’s online blog to help drive traffic to the website.
Goal Three• Increase market growth, position and visibility
• Strategy: Develop and promote a campaign to increase growth and visibility within the community.
• Tactics: Customer Referral and Employee Incentive Programs
NATHAN SHELTON
OPERATIONS
IMPLEMENTATION SCHEDULE & MILESTONES• LEVEL [5] Grand Opening is scheduled for
May 1, 2017.• Demolition of the existing building is scheduled for
March 15, 2016.• New building construction scheduled to start on
April 26, 2016.• Calculated with a 20% risk factor, there is
90% confidence LEVEL [5] will open on time.
• Property Size: 226,033 square feet• Building Size: 330,000 square feet• Floors 1-3: 110,000 square feet
OPERATIONS• LEED Platinum Building (Leadership in Energy & Environmental Design)
• Independent verification of the building’s “green” features• Gains economic benefits
• Tax and rebate incentives• Enhanced asset value• Lower operating costs
• SMART Building• Electrochromic glass (smart glass, can change tint)
• Temperature / climate settings can change based weather and season• Photovoltaic & solar panels to reduce utility costs
WIND TUNNEL DESIGN
FLOOR PLAN: LEVEL ONE
FLOOR PLAN: LEVEL TWO
FLOOR PLAN: LEVEL THREE
OPERATIONS• LEVEL [5] Hours of Operation
• Sunday through Thursday: 12:00 pm – 10:00 pm• Friday through Saturday: 12:00 pm – 12:00 am
• Staffing: At the time of the Grand Opening, LEVEL [5] will be at full capacity• 75 Employees on the payroll
• 15 Full time employees• 49 Part time employees
• Future Staffing Plan• Projected 2% increase in staff numbers, each year due to increase in
business activity• Will analyze on a monthly basis
LEVEL [5] EXECUTIVE TEAMGillian ZarembaChief Executive Officer
Nate SheltonChief Operating & Information
Officer
Rich SzeszkoChief
Financial Officer
(2) Office PersonnelFull Time
Sales & Marketing Director
(5) Private Party & Events
AssociatesPart Time
HR Director
*NOTE: At the time of the Grand Opening, LEVEL [5] will be at full capacity with 75 employeesStaff level growth is projected at 2% per year
LEVEL [5] OPERATIONS & TECHNOLOGYNate Shelton
Chief Operating Officer
General ManagerFull Time
(46) Floor Staff
Part Time
General Maintenanc
e & MechanicFull Time
MaintenancePart Time
Assistant General ManagerFull Time
(2) Flight InstructorFull Time
(6) Flight Crew
Part Time
(2) Flight TrainersFull Time
RISK AND LICENSING• Inside and outside camera security system
• Safety brief, equipment and precautions for all product lines
• Rolling Meadows Business Licenses• Mechanical Amusement Center Business License (Building)• Amusement Device Business License (Gaming Simulators)• Food Establishment Business License• Class A1 Liquor License
TECHNOLOGY PLAN• 10 MB symmetrical fiber optic circuit managed by AT&T
• Dataloader.io software – SalesForce.com
• GoDaddy.com website hosting
• TimeTrade – real time scheduling on the LEVEL [5] website
RICHARD SZESZKO
FINANCE
SALES PROJECTIONS
2017 2018 2019 2020 2021$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
5-Year Net SalesSky Diving Single Packages
Go-Kart Racing
Rock / Mountain Climbing
Archery Tag / Laser Tag
Food & Beverage Profits
Gaming Simulators
Sky Diving Family Packages
Sky Diving Corporate Packages
Private Parties / Meetings
Apparel for Sale
5 YEARS AT A GLANCE
2017 2018 2019 2020 2021$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
5-Year Financials at-a-Glance
Gross Sales
Gross Profit
Net Profit
32% Increase Y1-Y5
CASH FLOW YEAR ONEMa
y
June July
Augu
st
Sept
e...
Octo
ber
Nove
mbe
r
Dece
mbe
r
Janu
ary
Febr
uary
Marc
h
April
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000Year 1: Cash Flow (2017-2018)
Net Cash FlowEnding Cash Balance
$7.6M growth at end of Y1
NET WORTH & VALUATION
1 2 3 4 5$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
Net Worth
Total Assets Total Liabilities and Net Worth
Valuation Approach: LEVEL [5] valuation after year 5 is $132M
$34M
$74M
54% Increa
seY1-Y5
CLOSING STATEMENTS• Offer and Exit Strategy:
• At the end of year five, LEVEL [5] intends to analyze the cash flow and profits. If one of three partners is interested in keeping the facility going, an owner buyout will occur.
• If none of the three partners are interested in keeping the business, it will go to sale to an outside buyer the end of year five.
• The brand position alone will get the attention of the potential investor.
• We’re seeking a $7M investment, with a 28% stake in the company and a 40% annual ROI equivalent to $37,064,596.
• We’re Excited!
THANK YOU!• Questions & Answers• Thank You!