1. Sport and Fitness
By: Carly Neil
May 2016

2. What Does Indoor Beach Volleyball Look Like?

3. Floor Plan
152 x 148 = 22,496 square feet

4. Capital Budget

5. Who are my Customers? Current beach volleyball players Students
Competitive
Recreation league
Students
University
High School
Describe the targets

6. Who are my Customers?
Anyone who wants to play!

7. What is my Value Proposition?
“Bringing the Beach to you. All year round”

8. Positioning Statement
Love at First Spike

9. Promotion Strategy: Awareness Campaign
Sand City Squad
Global & CTV Morning Shows
Social Media
Radio Ads
Word of Mouth!

10. Branding Strategy
What do I want people to think when they hear Sand City?

11. Average = 189 Customers/Day = Volleyball Revenue + Food & Drink
Year 1 Projections
Winter/Spring/Fall
Summer
3 courts x 5 games/day x 12 players =
3 courts x 6 games/day x 12 players =
180 customers
216 customers
Average = 189 Customers/Day
Volleyball Session Revenue
Food & Beverage Sales
Annual: $ 378,000
Annual: $ 653,373
Daily: $6.67/customer
Daily: $11.52/customer
Daily Customer Spend
= Volleyball Revenue Food & Drink
= $18.19

12. Income Projections Year 1 Year 2 Year 3 Year 4 Year 5 Sales 1,031,373
1,202,286
1,430,721
1,459,335
1,488,522
COGS
194,929
227,232
270,406
275,814
281,331

13. Strategic Awareness Campaign & Targeted Branding Strategy
Local Competitors
Strategic Awareness Campaign & Targeted Branding Strategy

14. Is Sand City Feasible? Can I get those customers? Yes
Can I reach the desired volume of sales?
Should I proceed?
Not at this time

15. Thanks for Visiting

16. Operations & Human Resources

17. Location

18. Site Plan
Millar Ave
Parking Lot
66th Street

19. Floor Plan 152 x 148 = 22,496 square feet Office Outdoor Court 1
Indoor Court 1
Bar
Indoor Court 2
Bar
Outdoor Court 2
Kitchen
Indoor Court 3
Storage

20. Organization Chart Wages: Total Wages & Benefits $ 203,166 Me $ 65,000
Assistant Manager ,000
Full Time Kitchen Employee ,280
Full Time Bartender ,400
Part Time Bartender ,421
Benefits ,065
Total Wages & Benefits $ 203,166

21. Number of Employees Salary and Wage Expense Number of Employees:
CEO (full time) 1
Assistant Manager
Full time Kitchen Staff
Full time Bar staff
Part time staff
550,000
0.19
0.38
0.64
0.67
0.71

22. Salaries & Wages Salaries/Wages CEO Salary 65,000 66,300 67,626 68,979
70,358
Assistant Manager Salary
50,000
51,000
52,020
53,060
54,122
Full time Kitchen Staff (wage rate/hr) $ $ $ $ $
Full time Bar staff (wage rate/hr) $ $ $ $ $
Part time staff (wage rate/hr) $ $ $ $ $
Salary and Wage Costs
35,280
35,986
36,705
37,439
38,188
29,400
29,988
30,588
31,200
31,824
Part time staff
4,421
9,048
15,632
16,763
17,949
Total Salaries and Wages
184,101
192,322
202,571
207,441
212,441
Employee Benefits (salaries)
8.19%
9,419
9,607
9,799
9,995
10,195
Employee Benefits (wages)
13.96%
9,646
10,473
11,576
11,922
12,279

23. Average Business Day Employee Schedule 9am - 10am Me/Assistant Manager
10am - 11am
Cleaners
11am - 12pm
12pm - 1pm
1pm - 2pm
2pm - 3pm
3pm - 4pm
4pm - 5pm
Full-time Bartender
Full Time Kitchen Employee
5pm - 6pm
6pm - 7pm
Part-time Bartender
7pm - 8pm
8pm - 9pm
9pm - 10pm
10pm - 11pm
11pm – 12am
12am - 1am
Beach Volleyball Schedule
Game 1
4:30 - 5:30om
Game 2
5:30 - 6:30pm
Game 3
6:30 - 7:30pm
Game 4
7:30 - 8:30pm
Game 5
8:30 - 9:30pm
Game 6
9: :30pm
Game 7
10: :30pm
Last Call at 11:00pm Close at 12:00am

24. To Build

25. Operating Budget

26. To Lease

27. To Lease

28. NWC & Cash Conversion

29. Volleyball Dimensions

30. Marketing

31. Maximum Capacity Winter/Spring/Fall 7 Games/day
3 courts x 7 hrs of games x 16 players (2 teams (8ppl/team)) =
336
people
Summer
7 Games/day
5 courts x 7 hrs of games x 16 players (2 teams (8ppl/team)) =
560
people

32. Awareness Campaign Cost
3 Week Awareness Campaign/Start-up Costs
Signage
$10,000
Radio ($60/30sec x 4/day x 3 days)
$2,160
50 Posters ($7/poster)
$350
2000 Brochures ($32/50 cards)
$1,280
Grand Opening (500 People)
Food (1 appetizer/person)
$1,500
Alcohol (2 beer/person)
$1,800
Total
$17,090

33. Marketing Budget Marketing Expenses Year 1
Website ($4000 initial + $50/month)
$4,550
Posters ($7/poster)
$700
Brochures ($32/50 cards)
$640
Advertising
Radio ($60/30 sec x 2/day x 3days)
$18,720
Facebook
$1,000
Youtube
Total
$26,610

34. Marketing Expenses Marketing Expenses (not including inflation) Year 1
Website ($4000 initial + $50/month)
$4,550
$600
Posters ($7/poster)
$700
Brochures ($32/50 cards)
$640
Advertising
Radio ($60/30 sec x 2/day x 3days)
$18,720
Facebook
$1,000
Youtube
Total
$26,610
$22,660

35. Accounting & Financial

36. Capital & Financial Budgets

37. Average = 189 Customers/Day
Customer Projections
Average = 189 Customers/Day

38. Customer Projections Max Capacity 336 Max Capacity 560 Year 2
Winter/Spring/Fall ~65% Capacity
Summer ~40% Capacity
With teams of 6 people:
6 Games/day
3 courts x 6 hrs of games x 12 players =
3 courts x 6 hrs of games x 12 players =
216
people
Max Capacity 336
Max Capacity 560
Year 3
Monday
Winter/Spring/Fall ~75% Capacity
Summer ~45% Capacity
With teams of 6 people:
7 Games/day
3 courts x 7 hrs of games x 12 players =
252
people

39. Teams of 6 vs. Teams of 7 6 Games/Day vs. 7 Games/Day

40. Sales Projections Daily Revenue Per person $1,260 $6.67
Volleyball Session Revenue
Monday
1 Session (3 months) of Winter/Spring/Fall
1 Session (3 months) of Summer
5 games per night per court x 3 courts =
6 games per night per court x 3 courts = 15
games/day 18 30
teams/day 36
30 teams/day/session x $500/team =
36 teams/day/session x $500/team =
$90,000
$270,000
$108,000
Total Year 1 Session Revenue
$378,000
Daily Revenue
Per person
$1,260
$6.67

41. Sales Projections = $18.19 Daily Customer Spend = $6.67 + $11.52
Food & Alcohol Sales
Winter/Spring/Fall
Summer
5 games per night
6 games per night 30
teams 36
2 appetizers/team = $20/team
$574.29
$689.14
2 pitchers/team = $40
$1,200
$1,440
2 single hard drinks/team = $10
$300
$360
Total Daily Sales
$2,074
$2,489
75 Days/Session
$155,571
$186,685
Total of 3 Sessions
$466,687
Annual Sales (300 days/year) - 75 days/session
$653,373.00
Per Customer Sale:
Winter/Spring/Fall
Summer
Daily Sales
$2,074
$2,489
Daily Customers
180
216
$11.52
Daily Customer Spend
= $ $11.52
= $18.19

42. Break-Even Analysis

43. Profitability & Cash Flow
Average 5 year Net Income = $262,050
IRR = 17.5%

44. Average 5 year Net Income = $425,652
Sensitivity Analysis
Average 5 year Net Income = $425,652
IRR = 25.7%
Average 5 year Net Income = $262,050
IRR = 17.5%

45. Sensitivity Analysis Sensitivity Analysis - Based on # Customers
Average 5
Year 5
Number Cust/day
year Profit
Net Payback
IRR
Owner Comp
151
80%
81,326
1,967,249
6.7%
248,445
161
85%
126,805
3,088,068
9.8%
298,152
170
90%
171,872
4,207,904
12.5%
347,858
189
100%
262,050
6,446,497
17.5%
447,271
208
110%
350,641
8,573,483
22.0%
545,097
217
115%
391,935
9,456,280
24.0%
587,704
227
120%
432,741
10,516,641
26.0%
630,310
Sensitivity Analysis - Based on $ Spent per Customer
$ Spent
$14.55
81381
6.7
248336
$15.46
126,731
3,086,762
298,070
$16.37
171,822
4,206,674
347,803
$18.19
$20.01
350,688
8,574,558
545,144
$20.92
392,002
9,547,880
587,774
$21.83
432,831
10,518,774
630,404
$25.00
137%
574,241
13,896,809
32.8%
778,906

46. Worst Case Scenario – 161 Customers spend $14.55
Sensitivity Analysis
Worst Case Scenario – 161 Customers spend $14.55
Year 1
Year 2
Year 3
Year 4
Year 5
Net Income
(147,086)
(120,012)
12,275
35,475
60,869