Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Download for free

Free Business Planning Webinar:

AI and Your Plan Register Now

Sports icon Inline Hockey Service Business Plan

Start your plan

The Skate Zone

Executive Summary

The Skate Zone has been formed to implement inline skate hockey services. The Skate Zone is a Miami-based company whose mission is to promote the sport of hockey and make it available to all.  

The company’s initial strategy is to promote and facilitate one of the country’s fastest growing sports leagues, Roller Hockey. The National Sporting Goods Association (NSGA) shows there has been a steady growth in participation since 1993. The company’s goal is to provide a professional and safe environment for inline hockey, with added support to provide entertainment and physical fitness for players all ages. In conjunction with the hockey rink, a snack bar will enable players and patrons to enjoy food and drink during games and practices. Further endeavors will include bringing inline hockey products such as skates, body protection equipment, sticks, and jerseys with team logos into an in-house Pro Shop.

The company anticipates it will generate income from these specific areas:

  • Registration fees. Person(s) who will be playing hockey will be required to pay a seasonal fee to play in the league.
  • Concessions and equipment. Earnings received for food and drink items. Future endeavors are to have certain equipment for sale that players can utilize for sports activities.
  • Special functions. Miscellaneous use for the rink that payment will be received for operational expenses deemed necessary.
Inline hockey service business plan, executive summary chart image

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Company Summary

Legal Business Description
The Skate Zone was founded in May 1998 in Miami, Florida by Mr. James Dunn, President and CEO. The Skate Zone is a Florida corporation with principal offices located in Miami.

Inline hockey service business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $500
Stationery etc. $100
Brochures $250
Insurance $3,000
Equipment $9,000
Total Start-up Expenses $12,850
Start-up Assets
Cash Required $45,000
Start-up Inventory $5,000
Other Current Assets $0
Long-term Assets $405,000
Total Assets $455,000
Total Requirements $467,850
Start-up Funding
Start-up Expenses to Fund $12,850
Start-up Assets to Fund $455,000
Total Funding Required $467,850
Assets
Non-cash Assets from Start-up $410,000
Cash Requirements from Start-up $45,000
Additional Cash Raised $3,000
Cash Balance on Starting Date $48,000
Total Assets $458,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $350,000
Accounts Payable (Outstanding Bills) $3,850
Other Current Liabilities (interest-free) $0
Total Liabilities $353,850
Capital
Planned Investment
Owner $117,000
Investor $0
Additional Investment Requirement $0
Total Planned Investment $117,000
Loss at Start-up (Start-up Expenses) ($12,850)
Total Capital $104,150
Total Capital and Liabilities $458,000
Total Funding $470,850

Mission

The mission of The Skate Zone is to promote the sport of hockey and make it available to all.

The facility will allow persons to be involved in competitive games for the purpose of encouraging sports etiquette and providing an environment that will induce health in mind, body, and spirit. The company’s plan is to build a foundation for both kids and adults that will promote inner strength and encourage them to be beneficial as they mature.

Objectives

The Skate Zone strategy is to bring the first professional service for inline roller hockey to Miami. The company’s goal in the next year is allocate funding for start-up, complete building project, initialize league programs, procure inventory, and concession catering. The company’s goal in the next 2-5 years is acquire additional programs to implement knowledge of hockey (i.e. summer programs to include hockey camps, all-day leagues, etc.) and to procure inventory for a Pro Shop. With the growth of the market in Miami, the company plans to expand by building facilities in both the north and east sides of the city.

Strategic Alliances

The company has strategic alliances with Industrial Construction, In-line Hockey, the city of Miami, Dr. Pepper, and Ice Providers. These alliances are valuable to The Skate Zone for the development and construction of a professional facility for amateur inline hockey.

The Skate Zone intends to form a strategic alliance with USA Hockey Inlineä, a program established in 1936-37 to promote safe competitive hockey through knowledge of rules and regulations.

Value Proposition

The Skate Zone’s products and services offer the following advantages to customers.

  • Hockey league
  • Concession
  • Pro Shop
LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Market Analysis Summary

The company’s emphasis is on the sport recreation and entertainment market. Miami is the fourth largest city in America, thus providing enormous potential for growing enterprises such as inline hockey. 

Within these markets, The Skate Zone focuses on the more lucrative areas of youth sports and extracurricular activities because of what the statistics show in the amount of time spent in these areas of our lives. Figure 3, in the following section, provides a breakdown of the total sales of inline skates for 1996 and 1997.

The company will also be involved in the selling of sporting goods and accessories. Figure 2, also in the following section, gives a profile of the sporting and recreation goods industry.

Inline hockey service business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Youths 30% 250 325 423 550 715 30.04%
Adults 25% 280 350 438 548 685 25.06%
Families 30% 450 585 761 989 1,286 30.02%
Other 15% 100 115 132 152 175 15.02%
Total 27.58% 1,080 1,375 1,754 2,239 2,861 27.58%

Service Business Analysis

Figure 1 below provides the market statistics for the sporting and recreation goods industry. This includes establishments primarily engaged in the wholesale distribution of sporting goods and accessories, billiard and pool supplies, sporting firearms and ammunition, and marine pleasure craft, equipment, and supplies.

Figure 1. Market Size Statistics

Estimated number of U.S. establishments 9,906
Number of people employed in this industry 60
Total annual sales in this industry $15 million
Average employees per establishment 6
Average sales per establishment $1.6 million

Figure 2.  Inline skate sales

Year Skates Sold Total Sales
1996 5.4 million pairs $374 million
1997 6.4 million pairs $418 million

Figure 3 provides a breakdown of the top 20 inline skating areas in the United States. The number of skaters shown is in thousands. Inline hockey totals include players who also skate in other disciplines.

Figure 3.  Top 20 Inline Skating Areas in the United States

Area Rec/Fitness All Skating Hockey only  Total Skaters
New York City 1,438 255 657 1,503
Los Angeles 1,435 217 56 1,491
Chicago 911 153 39 950
Detroit 827 189 48 875
Washington DC 711 67 17 728
Philadelphia 577 84 21 598
San Francisco 502 46 13 515
Phoenix 459 65 17 476
Boston 463 32 8 471
Dallas/Fort Worth 406 79 21 427
Atlanta 429 24 6 435
South Florida 369 37 10 379
Minneapolis 360 25 7 367
Buffalo 311 21 6 317
San Diego 301 38 10 311
Houston 298 20 5 303
St. Louis 287 57 15 302
Tampa Bay Area 264 32 8 272
Denver 248 50 13 261
Cleveland 247 12 3 250

Market Segmentation

The company’s target customers are as follows.

  • Youths. Elementary, middle, and high school youth, ages 8 to 18 years old. Potential new customers within this industry include Miami and it’s surrounding cities.
  • Adults. Adults ages 19 to 55 years old. Potential new customers within this industry include Miami and its surrounding counties.
  • Families. Any individual will have the ability to purchase concession products that The Skate Zone provides.
  • Others. The Skate Zone has future market plans to establish a Pro Shop for customers to purchase items.

Customer Buying Criteria

The company believes that its customers will choose The Skate Zone based on the following criteria:

  • Price. The league fee is price sensitive, and players are typically expected to pay between $20 and $60 per season.
  • Performance. The structure and dimensions of the hockey arena are designed specifically to give optimal player and game agility.
  • Snack Bar. All major sporting events consider concessions a primary investment for high-volume revenue.
  • Locker Rooms. We will provide a changing room with lockers to protect from theft.
  • Accessibility. The location of The Skate Zone is on Jackson, a main thoroughfare on the Northwest side of Miami.
LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Products and Services

League Fees
A person who will be involved in a practice or game will be subject to fill out an application form and pay a fee that will enable them to participate for one season of inline hockey. This fee will be broken down to pay charges incurred to USA Hockey Inline for insurance and regulatory practices. The application form that the individual will fill out will be utilized for databases to create marketing statistics and mailings for future enrollment.

The advantages to each person completing this form is to properly identify players, coaches, and referees. The idea of proper identification is to insure all players, coaches, and referees are taught and acknowledge the rules and regulations to guarantee safety requirements are met. The databases that are created will not only help in classifying each person, but will cut cost in future enrollment and placement.

Concessions
The snack bar is an essential part of the entertainment and recreation industry. Concessions are considered one of the principal revenues, and will be key in providing maximum returns for the investor. There are varying degrees of concessions that can be offered. With modern technology, food items have become easier to prepare and serve without having the huge expense of kitchen appliances. This will allow The Skate Zone to offer a variety of foods and snacks without having certain licenses required to operate dining establishments.

The advantages to customers will be the convenience to purchase food and drinks without having to leave the establishment during any athletic event they are involved in. Some items that will be available to the public will include hotdogs, hamburgers, nachos, popcorn, candy, and tonic.

Professional Hockey Shop
The Skate Zone plans to respond to market needs with the addition of products customers can purchase. The company believes this operation will allow expedient access to merchandise both players and patrons require to enjoy optimum participation. This will also be considered another prevalent source of revenue to acquire maximum returns for the investor. Introduction of this service is expected to be within one year from the start of business.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Competitive Comparison

Competitive threats come from roller skating rinks and ice skating rinks. These companies are scattered throughout Miami.

Competitive Edge

The Skate Zone’s competitive advantages is its arena designed exclusively for inline hockey. Its size, dasher boards, and flooring give it the realism of true hockey play. Safety is considered priority one when insuring players and patrons are protected from injury or dangers. This is why The Skate Zone is taking every precaution in building a facility that centers itself on the sport of inline hockey.

The Skate Zone’s competitive advantages also include location and in-house facility. The company took demographics and several marketing strategies to find a location that showed prominent customers of all categories and potential growth in the future. The in-house playing field will allow comfortable play during all seasons without interruptions from rain, snow, sun, cold, or ice.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Strategy and Implementation Summary

The Skate Zone plans to promote and facilitate one of this country’s fastest growing sport leagues, Roller Hockey. The intended market is individuals who desire to participate in a fast action, high intensity game of team players with determination to dominate and control the athletic field with sticks and a puck. Markets include children and young adults from the ages 8 to 18 years old. One of the prime objectives the company intends to project is a family environment with player’s parents, siblings, aunts, uncles, and grandparents alike contributing to the market as a whole. Other target markets include adults, ages 19 to 55 years old, for a competitive recreation activity.

Inline hockey service business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Registration Fees $76,500 $100,000 $150,000
Skate Rentals $22,300 $50,000 $75,000
Concessions $71,500 $100,000 $150,000
Pro Shop $5,500 $15,000 $25,000
Special Functions $5,700 $6,500 $10,000
Total Sales $181,500 $271,500 $410,000
Direct Cost of Sales Year 1 Year 2 Year 3
Registration Fees $0 $0 $0
Skate Rentals $0 $0 $0
Concessions $35,750 $50,000 $75,000
Pro Shop $2,750 $7,500 $12,500
Special Functions $0 $0 $0
Subtotal Direct Cost of Sales $38,500 $57,500 $87,500

Marketing Communications

The Skate Zone plans to be the first amateur inline hockey facility in Miami, Florida. Due to the overwhelming growth of inline hockey throughout the United States, the company’s promotional plans are open to various media and a range of marketing communications. The following is a list of those available presently.

Public relations. Press releases are issued to both technical trade journals and major business publications such as USAHockey Inline, INLINE the skate magazine, PowerPlay, and others.

Tournaments. The Skate Zone will represent its services at championship tournaments that are held annually across the United States.

Print advertising and article publishing. The company’s print advertising program includes advertisements in The Yellow Pages, Miami Express News, The Skate Zone Mailing, school flyers, and inline hockey trade magazines.

Internet. The Skate Zone currently has a website and has received several inquiries from it. Plans are underway to upgrade it to a more professional and effective site.  In the future, this is expected to be one of the company’s primary marketing channels.

Distribution Strategy

At The Skate Zone, the sales process is different for each of the company’s three areas: League fees, concessions, and its future enterprise, the Pro Shop. Sales processes are described below.

League fees. Sales are made by a person’s payment to participate in a planned program (hockey) of games and practices within a certain amount of time allotted. The sales process involves several steps that include 1) completion and acceptance of an application form, 2) yearly membership fees, and 3) season league fees. This approach is used because of The Skate Zone’s  legal and liability requirements to protect and guarantee safety in all areas. This will also assist in proper documentation on all individuals participating. This process takes 30 minutes from receiving form to payment and adding individual to the company database. Before the season begins, each person will be categorized, placed on a team, and contacted for verification.

Concessions. Sales are made by a person purchasing products from the snack bar facility. Individuals will have a variety of choices to buy with the ability to sit and enjoy their food or drink while watching the game being played.

Pro Hockey Shop. This is a future enterprise that The Skate Zone will be developing within a year of its first day of operation. Sales are made by patrons purchasing products that will be available in the store. Products offered will include hockey equipment, hockey memorabilia, and other mementos.

Pricing Strategy

The company sets pricing based on market and competitive rates. League fees will be a set charge for each season of play. The exception will be for the yearly membership fee every player, coach, and referee will render for insurance purpose. Concessions and the future Pro Shop prices will be subject to taxes and rate increases from each respective business or enterprise associated with The Skate Zone. The table below provides the company’s pricing structure.

Product/Service Price Range
Fee: Membership $10
Fee: League $60
Concessions $.50-$5
Accessories $.50-$250
Rental (Arena) $300-$500/day

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Management Summary

The company’s management philosophy is based on responsibility and mutual respect. The Skate Zone has an environment and structure that encourages productivity and respect for customers and fellow employees.

Officers and Key Employees
The Skate Zone’s management is highly experienced and qualified. Key members of The Skate Zone’s management teams, their backgrounds, and responsibilities are as follows.

Mr. James Dunn, President and CEO. Mr. Dunn will oversee all operations of the company and will co-ordinate professional recruitment.

Mr. Joe Bailey, Vice President.

Note: Backgrounds have been removed for confidentiality.

Personnel Plan
Year 1 Year 2 Year 3
Manager $38,000 $40,000 $50,000
Asst Manager $12,250 $21,600 $25,000
Concessions/Pro Shop $21,500 $25,000 $37,500
Janitor/Maintenance $12,000 $15,000 $15,000
Total People 6 6 7
Total Payroll $83,750 $101,600 $127,500

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Financial Plan

The following sections describe the financial information of The Skate Zone.

Important Assumptions

The detailed assumptions to the company’s financial projections can be found in the table below.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 8.50% 8.50% 8.50%
Long-term Interest Rate 8.50% 8.50% 8.50%
Tax Rate 2.50% 0.00% 2.50%
Other 0 0 0

Projected Profit and Loss

The following table contains the profit and loss information for The Skate Zone.

Inline hockey service business plan, financial plan chart image

Inline hockey service business plan, financial plan chart image

Inline hockey service business plan, financial plan chart image

Inline hockey service business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $181,500 $271,500 $410,000
Direct Cost of Sales $38,500 $57,500 $87,500
Other $0 $0 $0
Total Cost of Sales $38,500 $57,500 $87,500
Gross Margin $143,000 $214,000 $322,500
Gross Margin % 78.79% 78.82% 78.66%
Expenses
Payroll $83,750 $101,600 $127,500
Sales and Marketing and Other Expenses $32,000 $42,700 $75,000
Depreciation $12,000 $20,000 $25,000
Telephone $1,800 $1,800 $2,000
Cleaning Supplies $3,000 $4,000 $7,500
Contract Referees $3,000 $3,000 $6,000
Payroll Taxes $12,563 $15,240 $19,125
Other $0 $0 $0
Total Operating Expenses $148,113 $188,340 $262,125
Profit Before Interest and Taxes ($5,113) $25,660 $60,375
EBITDA $6,888 $45,660 $85,375
Interest Expense $28,535 $27,379 $25,551
Taxes Incurred $0 $0 $871
Net Profit ($33,647) ($1,719) $33,953
Net Profit/Sales -18.54% -0.63% 8.28%

Projected Cash Flow

A summary of The Skate Zone’s cash flow projections for the next three years is found in the table below.

Inline hockey service business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $181,500 $271,500 $410,000
Subtotal Cash from Operations $181,500 $271,500 $410,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $22,000 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $2,000 $0 $0
Subtotal Cash Received $183,500 $293,500 $410,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $83,750 $101,600 $127,500
Bill Payments $112,137 $153,311 $221,968
Subtotal Spent on Operations $195,887 $254,911 $349,468
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $15,000
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $26,400 $25,000 $25,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $20,000 $20,000
Dividends $0 $0 $0
Subtotal Cash Spent $222,287 $299,911 $409,468
Net Cash Flow ($38,787) ($6,411) $532
Cash Balance $9,213 $2,802 $3,334

Projected Balance Sheet

The Skate Zone’s projected Balance Sheet follows.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $9,213 $2,802 $3,334
Inventory $6,050 $8,223 $12,750
Other Current Assets $0 $0 $0
Total Current Assets $15,263 $11,025 $16,084
Long-term Assets
Long-term Assets $405,000 $425,000 $445,000
Accumulated Depreciation $12,000 $32,000 $57,000
Total Long-term Assets $393,000 $393,000 $388,000
Total Assets $408,263 $404,025 $404,084
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $12,160 $12,640 $18,746
Current Borrowing $0 $22,000 $7,000
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $12,160 $34,640 $25,746
Long-term Liabilities $323,600 $298,600 $273,600
Total Liabilities $335,760 $333,240 $299,346
Paid-in Capital $119,000 $119,000 $119,000
Retained Earnings ($12,850) ($46,497) ($48,216)
Earnings ($33,647) ($1,719) $33,953
Total Capital $72,503 $70,785 $104,738
Total Liabilities and Capital $408,263 $404,025 $404,084
Net Worth $72,503 $70,785 $104,738

Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7941, Sporting and Recreation Goods industry, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 49.59% 51.01% 15.90%
Percent of Total Assets
Inventory 1.48% 2.04% 3.16% 2.80%
Other Current Assets 0.00% 0.00% 0.00% 34.10%
Total Current Assets 3.74% 2.73% 3.98% 45.20%
Long-term Assets 96.26% 97.27% 96.02% 54.80%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 2.98% 8.57% 6.37% 39.60%
Long-term Liabilities 79.26% 73.91% 67.71% 24.80%
Total Liabilities 82.24% 82.48% 74.08% 64.40%
Net Worth 17.76% 17.52% 25.92% 35.60%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 78.79% 78.82% 78.66% 0.00%
Selling, General & Administrative Expenses 83.16% 70.54% 64.27% 79.30%
Advertising Expenses 7.05% 4.79% 3.66% 2.10%
Profit Before Interest and Taxes -2.82% 9.45% 14.73% 2.10%
Main Ratios
Current 1.26 0.32 0.62 1.18
Quick 0.76 0.08 0.13 0.85
Total Debt to Total Assets 82.24% 82.48% 74.08% 64.40%
Pre-tax Return on Net Worth -46.41% -2.43% 33.25% 2.10%
Pre-tax Return on Assets -8.24% -0.43% 8.62% 5.90%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -18.54% -0.63% 8.28% n.a
Return on Equity -46.41% -2.43% 32.42% n.a
Activity Ratios
Inventory Turnover 10.44 8.06 8.34 n.a
Accounts Payable Turnover 9.90 12.17 12.17 n.a
Payment Days 28 29 25 n.a
Total Asset Turnover 0.44 0.67 1.01 n.a
Debt Ratios
Debt to Net Worth 4.63 4.71 2.86 n.a
Current Liab. to Liab. 0.04 0.10 0.09 n.a
Liquidity Ratios
Net Working Capital $3,103 ($23,615) ($9,662) n.a
Interest Coverage -0.18 0.94 2.36 n.a
Additional Ratios
Assets to Sales 2.25 1.49 0.99 n.a
Current Debt/Total Assets 3% 9% 6% n.a
Acid Test 0.76 0.08 0.13 n.a
Sales/Net Worth 2.50 3.84 3.91 n.a
Dividend Payout 0.00 0.00 0.00 n.a

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan

Appendix

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
Registration Fees 0% $4,000 $4,500 $4,500 $6,000 $6,000 $6,000 $6,000 $7,500 $8,000 $8,000 $10,000 $6,000
Skate Rentals 0% $1,200 $1,400 $1,400 $1,700 $1,700 $1,700 $1,700 $2,000 $2,400 $2,400 $3,000 $1,700
Concessions 0% $3,000 $3,000 $3,000 $4,000 $4,000 $6,000 $6,000 $7,500 $7,500 $7,500 $10,000 $10,000
Pro Shop 0% $100 $150 $200 $250 $250 $300 $500 $500 $500 $750 $1,000 $1,000
Special Functions 0% $300 $300 $300 $300 $300 $600 $600 $600 $300 $600 $600 $900
Total Sales $8,600 $9,350 $9,400 $12,250 $12,250 $14,600 $14,800 $18,100 $18,700 $19,250 $24,600 $19,600
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
Registration Fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Skate Rentals $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Concessions $1,500 $1,500 $1,500 $2,000 $2,000 $3,000 $3,000 $3,750 $3,750 $3,750 $5,000 $5,000
Pro Shop $50 $75 $100 $125 $125 $150 $250 $250 $250 $375 $500 $500
Special Functions $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of Sales $1,550 $1,575 $1,600 $2,125 $2,125 $3,150 $3,250 $4,000 $4,000 $4,125 $5,500 $5,500
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
Manager 0% $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $4,500 $4,500 $4,500 $4,500
Asst Manager 0% $0 $0 $0 $0 $0 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750
Concessions/Pro Shop 0% $1,500 $1,500 $1,500 $1,500 $1,500 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Janitor/Maintenance 0% $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Total People 4 4 4 4 4 6 6 6 6 6 6 6
Total Payroll $5,000 $5,000 $5,000 $5,000 $5,000 $7,250 $7,250 $7,250 $9,250 $9,250 $9,250 $9,250

General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50%
Long-term Interest Rate 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50%
Tax Rate 30.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0

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 $8,600 $9,350 $9,400 $12,250 $12,250 $14,600 $14,800 $18,100 $18,700 $19,250 $24,600 $19,600
Direct Cost of Sales $1,550 $1,575 $1,600 $2,125 $2,125 $3,150 $3,250 $4,000 $4,000 $4,125 $5,500 $5,500
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $1,550 $1,575 $1,600 $2,125 $2,125 $3,150 $3,250 $4,000 $4,000 $4,125 $5,500 $5,500
Gross Margin $7,050 $7,775 $7,800 $10,125 $10,125 $11,450 $11,550 $14,100 $14,700 $15,125 $19,100 $14,100
Gross Margin % 81.98% 83.16% 82.98% 82.65% 82.65% 78.42% 78.04% 77.90% 78.61% 78.57% 77.64% 71.94%
Expenses
Payroll $5,000 $5,000 $5,000 $5,000 $5,000 $7,250 $7,250 $7,250 $9,250 $9,250 $9,250 $9,250
Sales and Marketing and Other Expenses $2,400 $2,400 $2,400 $2,400 $2,600 $3,100 $3,100 $3,100 $3,100 $2,600 $2,400 $2,400
Depreciation $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Telephone $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150
Cleaning Supplies $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Contract Referees $0 $0 $0 $0 $0 $300 $300 $300 $450 $450 $600 $600
Payroll Taxes 15% $750 $750 $750 $750 $750 $1,088 $1,088 $1,088 $1,388 $1,388 $1,388 $1,388
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $9,550 $9,550 $9,550 $9,550 $9,750 $13,138 $13,138 $13,138 $15,588 $15,088 $15,038 $15,038
Profit Before Interest and Taxes ($2,500) ($1,775) ($1,750) $575 $375 ($1,688) ($1,588) $963 ($888) $38 $4,063 ($938)
EBITDA ($1,500) ($775) ($750) $1,575 $1,375 ($688) ($588) $1,963 $113 $1,038 $5,063 $63
Interest Expense $2,464 $2,448 $2,432 $2,417 $2,401 $2,386 $2,370 $2,355 $2,339 $2,323 $2,308 $2,292
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($4,964) ($4,223) ($4,182) ($1,842) ($2,026) ($4,073) ($3,958) ($1,392) ($3,226) ($2,286) $1,755 ($3,230)
Net Profit/Sales -57.72% -45.17% -44.49% -15.04% -16.54% -27.90% -26.74% -7.69% -17.25% -11.87% 7.13% -16.48%

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 $8,600 $9,350 $9,400 $12,250 $12,250 $14,600 $14,800 $18,100 $18,700 $19,250 $24,600 $19,600
Subtotal Cash from Operations $8,600 $9,350 $9,400 $12,250 $12,250 $14,600 $14,800 $18,100 $18,700 $19,250 $24,600 $19,600
Additional Cash Received
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 $2,000 $0 $0
Subtotal Cash Received $8,600 $9,350 $9,400 $12,250 $12,250 $14,600 $14,800 $18,100 $18,700 $21,250 $24,600 $19,600
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 $5,000 $5,000 $5,000 $5,000 $5,000 $7,250 $7,250 $7,250 $9,250 $9,250 $9,250 $9,250
Bill Payments $4,050 $6,013 $6,047 $7,507 $8,656 $8,385 $11,520 $10,666 $12,054 $11,668 $11,513 $14,057
Subtotal Spent on Operations $9,050 $11,013 $11,047 $12,507 $13,656 $15,635 $18,770 $17,916 $21,304 $20,918 $20,763 $23,307
Additional Cash Spent
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 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200
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 $11,250 $13,213 $13,247 $14,707 $15,856 $17,835 $20,970 $20,116 $23,504 $23,118 $22,963 $25,507
Net Cash Flow ($2,650) ($3,863) ($3,847) ($2,457) ($3,606) ($3,235) ($6,170) ($2,016) ($4,804) ($1,868) $1,637 ($5,907)
Cash Balance $45,350 $41,486 $37,640 $35,182 $31,576 $28,340 $22,171 $20,155 $15,351 $13,483 $15,120 $9,213
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 $48,000 $45,350 $41,486 $37,640 $35,182 $31,576 $28,340 $22,171 $20,155 $15,351 $13,483 $15,120 $9,213
Inventory $5,000 $3,450 $1,875 $1,760 $2,338 $2,338 $3,465 $3,575 $4,400 $4,400 $4,538 $6,050 $6,050
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $53,000 $48,800 $43,361 $39,400 $37,520 $33,913 $31,805 $25,746 $24,555 $19,751 $18,020 $21,170 $15,263
Long-term Assets
Long-term Assets $405,000 $405,000 $405,000 $405,000 $405,000 $405,000 $405,000 $405,000 $405,000 $405,000 $405,000 $405,000 $405,000
Accumulated Depreciation $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000
Total Long-term Assets $405,000 $404,000 $403,000 $402,000 $401,000 $400,000 $399,000 $398,000 $397,000 $396,000 $395,000 $394,000 $393,000
Total Assets $458,000 $452,800 $446,361 $441,400 $438,520 $433,913 $430,805 $423,746 $421,555 $415,751 $413,020 $415,170 $408,263
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 $3,850 $5,813 $5,798 $7,219 $8,380 $8,000 $11,166 $10,264 $11,665 $11,287 $11,043 $13,637 $12,160
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 $3,850 $5,813 $5,798 $7,219 $8,380 $8,000 $11,166 $10,264 $11,665 $11,287 $11,043 $13,637 $12,160
Long-term Liabilities $350,000 $347,800 $345,600 $343,400 $341,200 $339,000 $336,800 $334,600 $332,400 $330,200 $328,000 $325,800 $323,600
Total Liabilities $353,850 $353,613 $351,398 $350,619 $349,580 $347,000 $347,966 $344,864 $344,065 $341,487 $339,043 $339,437 $335,760
Paid-in Capital $117,000 $117,000 $117,000 $117,000 $117,000 $117,000 $117,000 $117,000 $117,000 $117,000 $119,000 $119,000 $119,000
Retained Earnings ($12,850) ($12,850) ($12,850) ($12,850) ($12,850) ($12,850) ($12,850) ($12,850) ($12,850) ($12,850) ($12,850) ($12,850) ($12,850)
Earnings $0 ($4,964) ($9,187) ($13,369) ($15,211) ($17,237) ($21,310) ($25,268) ($26,660) ($29,886) ($32,172) ($30,417) ($33,647)
Total Capital $104,150 $99,186 $94,963 $90,781 $88,939 $86,913 $82,840 $78,882 $77,490 $74,264 $73,978 $75,733 $72,503
Total Liabilities and Capital $458,000 $452,800 $446,361 $441,400 $438,520 $433,913 $430,805 $423,746 $421,555 $415,751 $413,020 $415,170 $408,263
Net Worth $104,150 $99,186 $94,963 $90,781 $88,939 $86,913 $82,840 $78,882 $77,490 $74,264 $73,978 $75,733 $72,503

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Create Your Plan