McKenzie Roller Rink
Company Summary
McKenzie Roller Rink is a new enterprise that has taken over an existing facility and has made several improvements. The company that previously leased the building was called Roller Kingdom. The building was leased and upgraded five years ago by the owners of Roller Kingdom, however Roller Kingdom went out of business due to mismanagement. McKenzie Roller Rink has negotiated a lease with the building owners and were able to take over the business with no capital outlay. With an agressive management style and marketing plan, McKenzie Roller Rink plans to offer a unique recreational opportunity that will cater to families as well as civic organizations, schools, and church youth groups. Therefore the numbers in the start-up table reflect just basic start-up expenses, there are no business purchase expenses.
2.1 Company Ownership
McKenzie Roller Rink is a privately-held C corporation owned in majority by president Don Jones. There are two part owners, David Barkley, our attorney; and Paul Robins, our public relations and marketing consultant. Neither owns more than 15%, but both are active participants in management decisions.
2.2 Start-up Summary
Our start-up costs come to $43,000, which is mostly building renovation and the purchase of new equipment. The start-up costs are to be financed by direct owner investment as well as our other two independent investors.
| Start-up | |
| Requirements | |
| Start-up Expenses | |
| Legal | $1,500 |
| Stationery etc. | $500 |
| Brochures | $1,000 |
| Consultants | $1,500 |
| Insurance | $2,000 |
| Rent | $4,000 |
| Renovations | $10,000 |
| Expensed Equipment | $10,000 |
| Website | $2,500 |
| Total Start-up Expenses | $33,000 |
| Start-up Assets | |
| Cash Required | $94,000 |
| Start-up Inventory | $5,000 |
| Other Current Assets | $2,000 |
| Long-term Assets | $0 |
| Total Assets | $101,000 |
| Total Requirements | $134,000 |
| Start-up Funding | |
| Start-up Expenses to Fund | $33,000 |
| Start-up Assets to Fund | $101,000 |
| Total Funding Required | $134,000 |
| Assets | |
| Non-cash Assets from Start-up | $7,000 |
| Cash Requirements from Start-up | $94,000 |
| Additional Cash Raised | $0 |
| Cash Balance on Starting Date | $94,000 |
| Total Assets | $101,000 |
| Liabilities and Capital | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $14,000 |
| Other Current Liabilities (interest-free) | $0 |
| Total Liabilities | $14,000 |
| Capital | |
| Planned Investment | |
| Don Jones | $70,000 |
| David Barkley | $35,000 |
| Paul Robins | $15,000 |
| Additional Investment Requirement | $0 |
| Total Planned Investment | $120,000 |
| Loss at Start-up (Start-up Expenses) | ($33,000) |
| Total Capital | $87,000 |
| Total Capital and Liabilities | $101,000 |
| Total Funding | $134,000 |
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