Youth Sports Development Center business plan and financial projections

Youth Sports Development Center will be organized as a Limited Liability Corporation under the existing state laws. A centralized facility has been rented to provide a full range of coaching and instructions services in the sports of baseball, basketball, football, soccer, tennis, volleyball, and lacrosse. This facility will contain the finest fitness equipment necessary to provide the young athlete with all his or her individual needs. Additionally, the Center will hire the best available coaching and instructors.

Participation in organized sports has exploded in the past several decades and parents are increasingly eager to provide their children with any available edge to enable them to be more competitive. Informal surveys indicate that within a 20-mile radius of the Youth Sports Development Center there are over 40,000 young athletes seeking the services available at the Center. This is the only facility of its kind in the area so there is no readily available competition.

The Center intends to rely heavily upon the available coaching and instructional talent in the area. This will enable the Center to keep its labor costs low and help it to develop the support of the local community. By locating its facility in an area heavily populated by school aged children accessibility will be enhanced and parents will be more motivated to use the facility for their children.

1.1 Mission

It is the goal of the Youth Sports Development Center to provide not only the finest facility and equipment possible for the local sports community but also provide the highest level coaching and instruction possible. Through the process of providing these services, the facility should prove to be popular with the community which should guarantee steady growth and a consistently increasing source of revenue.

1.2 Objectives

Youth Sports Development Center will begin operation in the Fall

The expected level of participation in the first year is 5,500 athletes

The projected growth in the first year is 30%

By the end of the third year of operation the level of participation will be over 10,000 athletes

1.3 Keys to Success

Locating in a neighborhood that is heavily populated by school aged children

Providing quality service that is not available in the area

Enhancing the facility's relationship with local sports programs, coaches, and school districts

Ensuring that the facility provides a full range of available services and anticipating the needs of its customers

Start-up Summary

The start-up costs for the Youth Sports Development Center are substantial due to the size of the facility needed to provide the services and the cost of the equipment necessary. The initial monies will be provided through the private funds of the principles and a low cost loan provided by the Small Business Administration. At the present time there are no outside investors.

Start -- up Expense Requirements

Legal

$500.00

Advertising

$3,000.00

Utilities

$3,600.00

Insurance

$5,000.00

Rent

$14,000.00

Contractors

$4,500.00

Total

$30,000.00

Start-up Assets

Cash

$5,000.00

Current Assets

$25,000.00

Long-term Assets

$30,000.00

Total Assets

$60,000.00

Total Start-up Requirements

$90,000.00

Liabilities and Capital

Current Borrowing

$0.00

Long-term Liabilities

$70,000.00

Accounts Payable

$0.00

Current Liabilities

$0.00

Planned Investment

$10,000.00

Sales Strategy

Sales will be directed at the parents of all school aged children. Coaches, teachers, parents, and children will be informed of the facility, its services, and operating hours through media advertising, mass emails, and direct contact. These efforts will be intensive in the initial months following opening and remain consistent throughout the school year. Occasional special promotions will be attempted but on a limited basis. The peak sales months are anticipated to occur from August to June while the young athletes are in school and actively involved in their respective sporting activity. A small drop-off is expected during the summer months.

Management Summary

The management team will consist of Matt Pawak and Charles Drucken who are equal partners in the Limited Liability Corporation. Both men possess more than 10 years of experience in the sports management business and an additional 10 years as coaches. They are lifelong residents of the area and have long lasting relationships with all the schools in the district. For at least the first year all coaches and instructors will be part-time employees. The operating schedule of the facility is conducive with this personnel arrangement in that the facility will be open only evenings and weekends. All coaches and instructors will be hired as independent contractors which will minimize labor costs.

Assumptions

There are a number of assumptions that must be considered in evaluating this business plan. As with any business, Youth Sports Development Center is dependent upon being able to encourage repeat business and to generate new business from a healthy word of mouth. Because the Center is in a limited market, it must attract a large percentage from that limited market. Also, as a luxury item the Center is heavily dependent on the continued health of the local economy and the continued growth of youth sports.

Projected Profit and Loss

In preparing our present profit and loss projections, we took a conservative approach. By taking a conservative approach, it eases the pressure on the operation to succeed. In the first year, profits are estimated at only $5,000 but are estimated to exceed $25,000 by the third year of operations.

Profit Yearly

Balance Sheet

Year 1

Year 2

Year 3

Sales

$42,000

$60,000.00

$90,000

Cost of Sales

$200.00

$250.00

$300.00

Total Cost of Sales

$200.00

$250.00

$300.00

Gross Margin

$41,800.00

$59,750.00

$89,700.00

Gross Margin %

99.5%

99.6%

99.6%

Expenses

Payroll

$6,800.00

$9,050.00

$27,900.00

Marketing

$1,200.00

$1,500.00

$2,000.00

Utilities

$4,800.00

$5,200.00

$5,600.00

Insurance

$1,000.00

$1,000.00

$1,000.00

Rent

$14,000.00

$14,000.00

$14,000.00

Loan Payments

$9,000.00

$9,000.00

$9,000.00

Total Expenses

$35,000.00

$50,000.00

$65,000.00

Net Profit

$5,000.00

$10,000.00

$25,000.

Youth sports development center

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