I. Executive Summary
This Section's Contents
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Business Overview
[Company Name] is a new community basketball facility located in [location]. The facility offers multiple courts for local residents to play basketball on, as well as classes to improve their skills. Our aim is to inspire a love of basketball in anyone who is interested. Therefore, while we do charge for our membership and classes, we offer discounts to anyone in a low-income bracket. We believe that everyone should enjoy playing and learning basketball without being priced out of the sport.
Products Served
[Company Name] will provide teams, individuals, and families access to basketball courts for a moderate fee. Patrons have the option to get a day pass, ten visit pass, or a monthly pass when they visit our facility.
[Company Name] will also offer classes for anyone who wants to learn basketball basics or improve their skills. Families and individuals who earn less than the median income will be able to participate on a sliding scale fee basis. We will maintain vending machines filled with water, energy drinks, and healthy snacks to keep our patrons fueled while they play. In addition, the facility will house a pro shop, where basketballs, gear, and memorabilia may be purchased.
Customer Focus
[Company Name] is open to serving all residents who live in [location] or the surrounding areas. Anyone who loves basketball and wants to learn, practice, or play with others is welcome in our facility.
The current demographics of [location] are below:
- 85,201 residents
- Median age of 35
- Median salary of $53,000
- 43% married
- 38% with children under 18
Management Team
[Company Name] is run by [Founder’s Name], a former professional basketball athlete, and current basketball coach and sports facility manager. For [X] years, he has managed a popular sports complex within [location], which provided him with in-depth knowledge of both the operations and management sides of running such a facility. Though he found his time with his employer rewarding, it was his love for basketball that inspired him to create a facility that solely focuses on basketball. He also wanted to create a business that better accommodated individuals and families from lower economic brackets so that no one would be priced out from playing the sport.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is currently no sports facility that focuses specifically on basketball. Many existing facilities only have one or two courts, which limits how many people can play at any time.
- The location is central to downtown and is easy to access by foot, car, or public transportation.
- The management team has a track record of success in sports facility management.
Financial Highlights
[Company Name] is currently seeking $2,000,000 to launch. Specifically, these funds will be used as follows:
- Facility design/build: $1,500,000
- Equipment: $250,000
- Working capital: $250,000 to pay for marketing, salaries, and maintenance until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
