Wasatch Family Fun Center
Executive Summary
I&B Investments is a new limited liability company formed under the laws of the state of Utah.
This document has been prepared to provide the reader with information about our company, including business structure, company goals, projected growth, venture capital requirements, start-up costs, an investment analysis and the industry trends.
I&B Investments has identified the family entertainment industry as its primary interest and to that end the company has focused its efforts on the development of one or more family entertainment centers (FEC) to provide quality family entertainment activities to the communities in the Weber County, Utah area.
Focused on family entertainment in a family-oriented community, I&B Investments is a company primed to take advantage of an expanding and profitable industry.
Entertainment has become a buzzword of the new millennium. David L. Malmuth, senior vice president of the TrizenHahn Development Corp. has observed, “People are not just interested in buying things. They want an experience, adding that the keys to providing successful experiences are authenticity, fun and participation. Americans have money to spend and will spend it on entertaining themselves. In fact, statistics show that people in the United States spend more on entertainment than on health care or clothing.”
Quality family entertainment is the focus of I&B Investments. The construction and commercialization of one initial FEC is factored into the initial development phase detailed within. The company’s proposed FECs will be designed to provide the type of family entertainment and adventure the current market demands.
The first proposed site is a ten-acre parcel in Weber County, with a second site to follow within five years.
In addition to other funding and capitalization efforts detailed herein, the Company anticipates that it will seek funds from the Government Redevelopment Agency which may assist in the purchasing of land for development of the proposed sites.
A recent census conducted by the U.S. Census Bureau found that from 1990 to 1998, personal consumption and expenditures for amusement and recreation increased by $31.5 billion, with an overall industry gross of $56.2 billion. Source: U.S. Census Bureau, Statistical Abstract of the U.S: 2000 – The National Income and Product Accounts of the U.S., 1929-94, Vol.1.
Based on the current entertainment prices and cost of revenue structure in the local amusement and recreation industries, we believe that our anticipated FEC’s will have the potential of several million dollars in gross sales in the first year of operations.
With our strong management team and our aggressive marketing plan, we project a consistent and minimum annual growth of five percent.
1.1 Objectives
The company’s objective is to build quality, full-service FECs that will command the approval of the predominantly LDS community which it serves.
Our goals include:
- A 10% market share in our first year.
- An modest increase in our gross margins within the second year of operation
- An increase in our market share by a minimum of 10% for each of our first five years.
Currently, there ARE no quality FECs in Weber County, or the surrounding areas (for a radius of 50 miles). The company believes that by entering the marketplace first and by establishing quality facilities, it will become, and remain, a leader in the FEC industry in the Northern Wasatch Front.
Our fundamental objective is to realize how we impact the community that we do business in, knowing that we will stand the test of time if the local residents approve and support our center.
1.2 Mission
I&B Investments sole purpose is to establish a profitable and well managed company while at the same time creating an atmosphere of fun and excitement for the entire family, with activities designed to please the local residents, as well as the substantial tourist base of the Northern Wasatch Front.
1.3 Keys to Success
Based on our research, our primary targeted market is parents and their children (ages 5-15 to 54). With that in mind, we intend to design our facilities to address this primary market, while keeping in mind the secondary markets such a teens and young adults.
We believe that our main keys to success include:
- Providing popular and wide-ranging entertainment activities
- Ample and secure parking
- Indoor activities for year round entertainment
- The use of state-of-the-art technology
- Easy access
- Target high traffic areas for maximum public exposure
- Design facilities to curb overcrowding
- Seasoned management team
We believe that we can minimize certain risk factors by:
- Initial capitalization of the company to sustain operations through year one
- Low overhead through the use of multi-skilled employees and continual training
- Strong customer base through aggressive marketing
- Strong community ties and involvement
- Eliminate collection costs by establishing cash/credit/debit card only facilities
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