Emerald Driving Range
Emerald Driving Range is a new enterprise that provides state-of-the-art facilities that will accommodate golfers of all levels. There will be an on-site PGA Teaching Pro giving lessons on a daily basis. Emerald will focus on providing practice opportunities to the recreational golfer as well as the serious competitive golfer. Arrangements will be made with local schools and universities to use the facility for their golf teams’ practices and golf classes. A first-class driving range is available with slots that accommodate 50 golfers at a time. Chipping greens with sand traps as well as two putting greens will be in place.
2.1 Start-up Summary
Total start-up expense (including development of facility) are shown below. Long-term assets include a ball retrieving machine as well as other maintenance equipment. Other expenses include balls, clubs, towels, and misc. accessories. We will have a concessions area that will provide a variety of drinks and snack foods for golfers who need to take a break. The details are included in the following table.
|Research and Development||$40,000|
|Total Start-up Expenses||$63,000|
|Other Current Assets||$0|
|Start-up Expenses to Fund||$63,000|
|Start-up Assets to Fund||$67,000|
|Total Funding Required||$130,000|
|Non-cash Assets from Start-up||$27,000|
|Cash Requirements from Start-up||$40,000|
|Additional Cash Raised||$0|
|Cash Balance on Starting Date||$40,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|Total Planned Investment||$130,000|
|Loss at Start-up (Start-up Expenses)||($63,000)|
|Total Capital and Liabilities||$67,000|
2.2 Company Ownership
Emerald Driving Range will be created as a partnership with Stan Walker owning 60%, Fred Fast 20%, and Jim Spade 20%. Stan Walker will act as president, with Fred Fast and Jim Spade on the management team, handling marketing/advertising and concessions/vendors respectively.