Sport and Fitness By: Carly Neil May 2016

What Does Indoor Beach Volleyball Look Like?

Floor Plan 152 x 148 = 22,496 square feet

Capital Budget

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

Who are my Customers? Anyone who wants to play!

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

Positioning Statement Love at First Spike

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

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

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

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

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

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

Thanks for Visiting

Operations & Human Resources

Location

Site Plan Millar Ave Parking Lot 66th Street

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

Organization Chart Wages: Total Wages & Benefits $ 203,166 Me $ 65,000 Assistant Manager 50,000 Full Time Kitchen Employee 35,280 Full Time Bartender 39,400 Part Time Bartender 4,421 Benefits 19,065 Total Wages & Benefits $ 203,166

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

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) $ 18.00 $ 18.36 $ 18.73 $ 19.10 $ 19.48 Full time Bar staff (wage rate/hr) $ 15.00 $ 15.30 $ 15.61 $ 15.92 $ 16.24 Part time staff (wage rate/hr) $ 12.00 $ 12.24 $ 12.48 $ 12.73 $ 12.99 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

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 9:30 - 10:30pm Game 7 10:30 - 11:30pm Last Call at 11:00pm Close at 12:00am

To Build

Operating Budget

To Lease

To Lease

NWC & Cash Conversion

Volleyball Dimensions

Marketing

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

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

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

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

Accounting & Financial

Capital & Financial Budgets

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

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

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

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

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 = $6.67 + $11.52 = $18.19

Break-Even Analysis

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

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%

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 1965559 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

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