WILL WINDSOR MINI GOLF BE PROFITABLE ENOUGH TO

OPEN?

SURVEY AMONGST STUDENTS AGE 6- 18

Pricing At $4.50

14

96

34

4

134

18

0 50 100 150

Low

Reasonable

High

Students ages 6-18

Female

Male

When Shopping at Devonshire Mall w ould you play mini golf?

99

12 7

97

2414

0

20

40

60

80

100

120

Yes No Maybe

Stud

ents

age

6- 1

8

Male

Female

CONSUMER ANALYSIS

INTERNAL ANALYSIS

• No cost for labor to build course

-students from high school industrial art class will build for free

• Can provide Leagues and Tournaments

• High traffic location at Devonshire Mall

• 77% of students ages 6-18 think $4.50 is a reasonable price for an 18 round game.

STRENGTHS

INTERNAL ANALYSIS

• Cost to Build and open course

approx. $23,000

-18 holes, pro shop, fencing, equipment

• Will need $13,000 loan after $10,000 investment

• No experience, new entrepreneurs

WEAKNESSES

EXTERNAL ANALYSISOPPORTUNITIES

• Approx. 390,000 people shop at the Devonshire Mall each month

• Only two competitors in Windsor area

-Gateway Plaza, Suburban Go-Kart

-both mini golf courses of poor quality

• Nice Weather (104 days/ season) = Good business

EXTERNAL ANALYSISTHREATS

• The mall may reject their proposal all together

• Competitors are experienced and have a loyal customer base

• Mall rental is 20% of gross profit

• Rain (49 days/season) = No business, Course closed

Competitor 1 Competitor 2(Gateway

Plaza)(Suburban Go-

Kart)Location Accessibility Excellent Poor Excellent

Built-in Clientele Very good Poor ExcellentCost Per 18 hole round $4.50 $4.00 $4.50 Course Appearance Fair Poor Excellent

Challenge Offered Fair Poor Very GoodMaterial Quality Poor Very Poor Excellent

Promotion Advertising Little None RadioTournaments None None YesLeagues None None YesIncentives None None Yes

Return on Investment Fair In the red Unknown

Windsor Mini Golf

COMPETITION COMPARISON

ORGANIZATIONAL OBJECTIVES• MAKE MONEY

• Gain customer base– Offer Buy one Get one FREE Tuesdays– Sundays Kids 6 and under play free

• Build high quality course

• Make course challenging enough to stand out from competition

• Be ORIGINAL to stand out from competition

• Possibly Franchise

ADVERTISING

RADIO ADVERTISEMENT• CIMX (popular teen station)• $75 per 30 second primetime spot• 100 spots of 153 day season• Total advertising cost per season

$7,500• Hand out FLYERS, post flyers around

mall

ALTERNATIVE 1

• Make initial investment of $10,000 and obtain $13,000 bank loan to open business. This includes:

-Course construction materials costs

-Course equipment costs (putters, balls, scorecards, pencils)

-Pro Shop construction costs

ALTERNATIVE 2

• DO NOT OPEN COURSE

-only if Devonshire Mall rejects proposal

-relying on Mall location

-if there is little or no profit

COST ANALYSIS (per season)864 rounds per day

(100%)432 rounds per day

(50%)216 rounds per day

(25%)86 rounds per day

(10%)

Investment 10,000 10,000 10,000 10,000Bank Loan ($13,000 x 10% interest)

14,300 14,300 14,300 14,300

Rent 77,631.20 37,196.00 16,978.40 4,810.40Salary 8,696 8,696 8,696 8,696Advertising 7,500 7,500 7,500 7,500

Total Expenses 118,127 77,692 57,474 45,306

Sales $4.50/18 holes 404,352 202,176 101,088 40,248

Gross Profit $388,156.00 $185,980.00 $84,892.00 $24,052.00

Total Revenue $270,028.80 $108,288.00 $27,417.60 ($21,254.40)

RECOMENDATION

• Make initial $10,000 investment and obtain $13,000 bank loan to open Windsor Mini Golf A.S.A.P.

• After Cost Analysis Windsor Mini Golf has proven to be profitable enough to proceed with business plan

IMPLEMENTATION PLAN

• Open Business A.S.A.P or at beginning of nearest season (May)

• Secure $13,000 bank loan

• Purchase materials for course construction

• Begin construction of course in April. One month for completion.

• Hire staff to run course

• Get the word out, flyers, radio advertising

ALTERNATIVE 3

• Use initial investment to partner with competitors

-could use funds to revive old run down mini golf courses in the Windsor area

-we will not have total control over business