I. Executive Summary
This Section's Contents
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Business Overview
[Company Name] is [Location]’s first indoor ice skating rink. The rink will be a refreshing source of winter recreation that families and individuals can enjoy all year-round. The company will provide various ice sports lessons for all ages and ability levels. Customers can also pay for open skate sessions or rent out the facility for private events.
Products Served
Below are [Company Name]’s product and service offerings:
- Hockey Lessons
- Figure Skating Lessons
- Exercise Classes
- Food & Beverages
- Ice Skate Rentals
- Ice Skate Sales
- Ice Rink Rentals
Customer Focus
[Company Name] will primarily serve the residents who live within a 20 mile radius of the facility. The demographics of these customers are as follows:
- 97,827 residents
- 31,987 children
- Average income of $94,000
- 66% married
- 51% in Mgt./Professional occupations
- Median age: 39 years
Of the above mentioned residents, about 45% of the population are fairly active and regularly participate in a variety of physical activities.
Management Team
[Company Name] was founded by [Founder’s Name], a former professional hockey player turned entrepreneur who has identified a need for an ice rink in [Location]. [Founder] has fond memories of spending time with his family and friends at the local ice rink in his hometown as a child. Upon retiring from a successful hockey career, he moved to [Location] where he discovered there was no ice rink within a 100-mile radius.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The company will be providing a valuable service to those seeking a fun place to get together with family and friends and enjoy ice sports together all year round.
- There is no other ice skating rink in a 100-mile radius of the facility.
- The location is conveniently located near schools, residential neighborhoods, public parks, and is accessible from the highway.
- The management team is composed of industry professionals and entrepreneurs who are well-equipped to operate an ice skating facility.
- [Founder] has significant name recognition among ice hockey fans. This factor is expected to bring customers to the facility right away.
Financial Highlights
[Company Name] is seeking a total funding of $200,000 of debt capital to open its skating rink business.
- Facility design/build-out: $100,000
- Equipment and supplies: $75,000
- Working capital: $25,000 to pay for marketing, salaries, and lease costs 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% |
