Download Sports Unlimited Business plan presentation Mrs Lowe File

SPORTS UNLIMITED
INC.
Business Plan recommendation
Who are we?
•
Sports Unlimited- owns sports facilities across Canada
•
This case involves one of the facilities in Halifax
•
Population 400,000 (145,000 are less than 30 years old- 36% of
the population)
•
Love of soccer: 28000 players in Soccer Nova Scotia
•
2008 - $750,000 investment in Soccer Bubble; competitive
against winter sports/ offers population a low cost indoor
alternative
•
Use soccer pitches during winter months (Oct to April 7
months additional revenue!)
Today’s Situation
•
Since installation of the Soccer Bubbles, only reaching
37% of maximum capacity
•
Past two seasons, facility has been underutilized
•
Looking for:
• Product- Additional soccer potential to increase use of
soccer pitches
• Product- Possible additional uses for facility
• People- Who might use the facility
• Promotion- How could he reach possible users?
• Price- Could he introduce a possible rate increase?
Goal and Objective
•
Improved Marketing Plan to attract more
business
•
Enhance use of facility to maximize revenue
•
Generate additional revenue to meet or
exceed break even of 60% usage
How Did We Get Here?
•
Facility is operating with an indoor league Oct to April
•
Summer month league after Bubble is taken down
•
Youth league is being played on Saturdays in the winter. What is
happening Sundays?
•
Losing money as space is underutilized- especially during day
time
•
Questions going forward:
• What is happening Aug/Sept? May/June?
• Main market is youth 65% of players- are there additional
potential with adults, senior leagues, pre-school?
Available Options
•
#1 Status Quo
•
#2 Enhance exposure: Appeal to sports other than
soccer / Advertising partnerships
•
#3 New leagues: Partner with senior homes / special
needs youth / pre-school groups; utilize facility to
the maximum during winter months
Available Option #1
•
Status Quo
PRO
CON
None
Job is on the line- possible firing
Company can not sustain losses for
another year
Must do something now- 2 weeks to
fix this 2 year problem
Available Option #2
•
Increased exposure / Advertising partnerships
•
Obtain major sponsorships for walls of the interior
•
Large corporate sponsorship for roof of dome
•
Give up naming rights to the “Bubble” in favor of a corporation
PROc
CON
Obtain “bandaid financing” to help
sustain the business
Difficult to obtain in the short run
Increases exposure with other
businesses and potential customers
Year to year- depending on economy;
partnership could be pulled
Reaching more people visually from
inside the space and from above (in
airplanes); increase “word of mouth”
advertising
Does not enhance business model or
meet the needs of utilizing facility
greater
Available Option#3
•
Partner with senior homes /
special needs youth / preschool groups
•
Morning senior league
•
Potential $32,000 additional
revenue
Mon/Wed/Fri
Oct 9 to 12, 6 teams per day, 3 days per week
Nov 3 weeks per month
Dec 72 adults
27 games
$200/adult ($7.50/game)
$
Jan
Feb
March
April
14,400 potential revenue
9 to 12, 6 teams per day, 3 days per week
3 weeks per month
72 adults
36 games
$250/adult
$
18,000 potential revenue
Available Option #3
Utilize the
summer
evenings
during July &
August
Games run
from 5-9pm
$975/team
80 games = 40 teams= 480 children
4 weeks; 5 days per week;
4 games per day
Potential Revenue
$39000
•
Available Option #3
Additional use of the space- Partner with
senior homes / special needs youth / preschool groups / post-secondary
PRO
CON
Potential additional revenue of
$32,000 for senior league
Mon/Wed/Friday
Would seniors join a league? Commit
to a fee given their fixed income?
Potential to develop an afternoon
playschool league Mon/Wed/Friday
with similar fees and a potentially
larger audience- future soccer
players… $15,000 potential
Comitment levels ? Currently only
35% of soccer players are adults?
How many seniors would play
soccer? Or would an additional game
need to be developed? Lawn bowling
league?
Additional exposure in the
community; more players using
space; additional revenues
Additional wear and tear on the turf ;
additional maintenance costs;
additional equipment purchases if
other sports are used
Available
Option #3
Utilize the
fields fully on
all available
dates:
Fall Season: Oct 3- Jan 9= 13 games
Winter Season: Jan 16-Apr 16= 13 games
Saturday schedule
9am-10
10am-11
11am-12
12pm-1
1pm-2
2pm-3
3pm-4
4pm-5
5pm-6
6pm-7
7pm-8
8pm-9
6&7
6&7
8 9 yrs
8 9 yrs
10 11 yrs
10 11 yrs
12 13 yrs
12 13 yrs
14 15 yrs
14 15 yrs
16 -18 yrs
16 -18 yrs
Fall
Winter
12 kids/team
24
24
24
24
24
24
24
24
24
24
24
24
288
$225
$ 64,800.00
$ 64,800.00
$ 129,600.00
children
per child
potential revenue
potential revenue
Available Option #3
•
Book up the Saturday youth league $129,600 potential revenue
•
Host training camps May/June and August/ September to enhance
revenue: at $100 / child for all the age groups and 50% of members
returned= 144 children * $100= $14,400 potential revenue
PRO
CON
Potential additional revenue for
Saturday league / training camps
Would all youth commit? Would
projections be realized?
Fill up unused space and grow the
sport and the center’s usefulness
Could this schedule run?
Recommendation
•
The center must enhance it’s league play during the day
• Potential additional revenue from a seniors’ league $ 32800
• Potential from a play school league $15000
• Potential for spring and fall training camps $ 15000
• Full Saturday league $130000 potential for fall / winter
• Summer League play $975/team
•
Option is to pursue #2 once leagues are established. Must
obtain sponsorship commitment now- 5 year $10000/year
contract
Recommendation
•
The center must better
utilize the center during
the day time, the
transition months and
fully on weekends:
Budgeted Revenues
Summer league
Senior league (winter mornings)
Play school league (winter)
Spring / Fall Training Camps
Full Saturday/Sunday potential (year round)
Total Potential Revenues
$ 40,000.00
$ 32,000.00
$ 15,000.00
$ 15,000.00
$ 130,000.00
$ 232,000.00
Budgeted Expenses
Take down & set up
Heating Costs (Oct-April)
$
$
20,000.00
21,000.00
Additonal Maintenance (10% per year)
Labor Costs 30% of revenues
Payment on Soccer Bubble
($750,000 paid over 25 years at 4%)
Total Potential Expenses
$
$
7,500.00
69,600.00
Total Potential Profit
$
$ 48,000.00
$ 166,100.00
65,900.00
Implementation Plan
•
Time period is immediate. Meeting is May 8th.
•
Spring training sessions must be booked and advertised.
•
Summer league must start July 2nd week.
•
Fall training sessions need to also be booked and
advertised. Possible discount if people pre-pay with the
spring session
•
Fall league advertising should also be promoted.
Does he keep his job?
Questions?