Indoor Soccer Facility Business Plan

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Table of Contents

1.0 Executive Summary......................................................................................................................1Chart: Highlights............................................................................................................................1

1.1 Objectives.....................................................................................................................................11.2 Mission...........................................................................................................................................2

2.0 Company Summary......................................................................................................................22.1 Company Ownership................................................................................................................22.2 Start-up Summary.....................................................................................................................2

Chart: Start-up...............................................................................................................................3Table: Start-up Funding..............................................................................................................3Table: Start-up...............................................................................................................................4

2.3 Company Locations and Facilities.......................................................................................43.0 Products and Services.................................................................................................................44.0 Market Analysis Summary.........................................................................................................5

4.1 Market Segmentation..............................................................................................................5Table: Market Analysis................................................................................................................5Chart: Market Analysis (Pie)......................................................................................................6

5.0 Strategy and Implementation Summary..............................................................................65.1 Marketing Strategy...................................................................................................................65.2 Sales Strategy.............................................................................................................................7

5.2.1 Sales Forecast.....................................................................................................................7Chart: Sales Monthly................................................................................................................8Chart: Sales by Year.................................................................................................................8Table: Sales Forecast...............................................................................................................8

6.0 Management Summary...............................................................................................................96.1 Personnel Plan..........................................................................................................................10

Table: Personnel..........................................................................................................................107.0 Financial Plan................................................................................................................................117.0 Financial Plan................................................................................................................................11

7.1 Break-even Analysis...............................................................................................................11Chart: Break-even Analysis.....................................................................................................11Table: Break-even Analysis.....................................................................................................11

7.2 Projected Profit and Loss......................................................................................................11Table: Profit and Loss................................................................................................................11Chart: Profit Monthly..................................................................................................................12Chart: Profit Yearly.....................................................................................................................13Chart: Gross Margin Monthly..................................................................................................13Chart: Gross Margin Yearly......................................................................................................14

7.3 Projected Cash Flow...............................................................................................................14Chart: Cash....................................................................................................................................14Table: Cash Flow.........................................................................................................................15

7.4 Projected Balance Sheet.......................................................................................................167.4 Projected Balance Sheet.......................................................................................................16

Table: Balance Sheet.................................................................................................................167.5 Business Ratios........................................................................................................................177.5 Business Ratios........................................................................................................................17

Table: Ratios.................................................................................................................................17

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Table of Contents

Table: Sales Forecast...........................................................................................................................1Table: Personnel....................................................................................................................................2Table: Personnel....................................................................................................................................2Table: General Assumptions.............................................................................................................3Table: General Assumptions.............................................................................................................3Table: Profit and Loss..........................................................................................................................4Table: Profit and Loss..........................................................................................................................4Table: Cash Flow...................................................................................................................................5Table: Cash Flow...................................................................................................................................5Table: Balance Sheet...........................................................................................................................7Table: Balance Sheet...........................................................................................................................7

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Dribbling Indoor Soccer

1.0 Executive Summary

Dribbling Indoor Soccer is the only indoor soccer facility in the Wingback County area. The population of Wingback County is 240,000 residents. Dribbling Indoor Soccer has two professional-style, lighted fields, (73' x 140') featuring Field Turf®, for fast-action, fun soccer. No matter what the weather conditions are, day or night, soccer players will find a safe, clean, and friendly atmosphere for soccer enjoyment.

Several divisions for youth, men, women, and coed provide all players--from beginners to highly skilled--the right environment for recreational yet competitive soccer. League play is continuous year round. All league participants are required to become members of Dribbling Indoor Soccer. The annual fee is $40. Team registration per session is $700. Each session has 10 games with championship awards being given to the first place team.

In addition, skills clinics are available for beginning adults and those wishing to polish their skills. The two fields can also be rented for practices, birthday parties, corporate events, preseason and post-season team parties, camps, clinics, school grad nights, fund raising tournaments, organized lacrosse and field hockey leagues and more. A soccer store is on site to provide leading soccer brands to players, teams, leagues and schools. The facility will also have a small cafe that will serve drinks, sandwiches, and pastry.

Dribbling Indoor Soccer projects that the center will have more than 1,000 members, 30 adult teams and 30 youth teams by the end of year one.

Chart: Highlights

Sales

Gross Margin

Net Profit

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

Year 1 Year 2 Year 3

Highlights

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1.1 Objectives

The objectives for Dribbling Indoor Soccer are the following:

Build facility membership to more than 800. Register 30 adult and 25 youth teams by the end of first year of operation. Develop facility potential to be rented for special events.

1.2 Mission

The mission of Dribbling Indoor Soccer is to provide Wingback County residents with a state-of-the-art soccer facility that will enable both youth and adults to enjoy the sport of soccer year round.

2.0 Company Summary

Les Klew has been a fixture of the county's soccer community for the past twenty years. Over the years he has coached hundreds of children. Many of his first players now have children of their own. Currently, he is the supervisor of soccer officials for Wingback County area. His level of expertise in soccer has made him an important contributor to the development of the sport in Wingback County. He has instant credibility with players and coaches.

Like Les, his wife Noh has been an important booster of soccer in Wingback County, especially women's soccer. Noh has coached numerous girls teams and has served as the chairperson of the Wingback County Soccer Association.

The opening of Dribbling Indoor Soccer is a natural next step for this couple that has been so important to the growth and love of soccer in the county.

Both will actively use their contacts to promote the facility to players and coaches.

2.1 Company Ownership

Dribbling Indoor Soccer is owned by Lester (Les) and Naomi (Noh) Klew. The business will maintain a sole proprietorship status for at least the first two years of operation. The business projects that the Ouisterfield facility will be so popular that a second indoor operation will be established in the nearby city of Midfield. At that time the business will reorganize to become an S Corporation.

2.2 Start-up Summary

The start-up cost of Dribbling Indoor soccer is focused primarily on the field installation and the setup of the soccer store. The Les and Noh Klew will invest in the business, and, addition, the Klews will obtain a long-term loan. Details of start-up expenses and funding and shown in the tables and chart below.

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Chart: Start-up

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Expenses Assets Investment Loans

Start-up

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Table: Start-up Funding

Start-up Funding

Start-up Expenses to Fund $80,000 Start-up Assets to Fund $80,000 Total Funding Required $160,000

Assets

Non-cash Assets from Start-up $50,000 Cash Requirements from Start-up $30,000 Additional Cash Raised $0 Cash Balance on Starting Date $30,000 Total Assets $80,000

Liabilities and Capital

Liabilities

Current Borrowing $0 Long-term Liabilities $100,000 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 Total Liabilities $100,000

Capital

Planned Investment

Klew, Les and Noh $60,000 Other $0 Additional Investment Requirement $0 Total Planned Investment $60,000

Loss at Start-up (Start-up Expenses) ($80,000)Total Capital ($20,000)

Total Capital and Liabilities $80,000

Total Funding $160,000

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Table: Start-up

Start-up

Requirements

Start-up Expenses

Legal $1,000 Brochures $1,000 Insurance $3,000 Rent $5,000 Soccer Shop Setup $10,000 Field Installation $52,000 Cafe $8,000 Total Start-up Expenses $80,000

Start-up Assets

Cash Required $30,000 Start-up Inventory $5,000 Other Current Assets $5,000 Long-term Assets $40,000 Total Assets $80,000

Total Requirements $160,000

2.3 Company Locations and Facilities

Dribbling Indoor Soccer is located on West 18th Street in the city of Ouisterfield. The 30,000 square foot facility is a former warehouse that will be converted into a playing facility. The location is easily accessible to all city residents. It is nearby Southtowne Park with is the largest and most popular city park. This unique location is perfect. In addition, the facility has ample off-street parking.

3.0 Products and Services

Dribbling Indoor Soccer is an indoor soccer facility that offers league play, soccer training and a soccer shop. The facility is also available to be rented out for special events.

The following is the fee schedule:

Annual Facility Membership: $40 Team Registration per Session: $700 Facility Rental Fee: Member $55 - 65/hr, Non-Member $80/hr Skill Clinic Fees: Range from $80 (per week) for children, to $400 for groups

They are led by soccer skill instructors with "A" Level Coaching Certification. The skill clinics are geared toward the novice who wants to improve their soccer skills.

The facility also has a soccer shop that sells the very best in soccer gear, indoor and outdoor. The shop has the best selection of turf shoes available in the city.

4.0 Market Analysis Summary

Soccer is a popular sport in Wingback County. Currently there are 6,000 children participating in the youth soccer leagues, and 3,000 adults participating in the adult league. The number of

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players are growing dramatically. There are two factors that are impacting the popularity of soccer.

The first is the large number of children in the county under the age of 12. There are approximately 30,000 children in the county under the age of 12. The projection is that the percentage of children under the age of 12 will continue to grow for the next five years. The most popular sport with this age group is soccer.

The second factor is the growing number of young people between the ages of 24 - 35 that are participating in team sports. Participation in coed softball has increased by 20% each year for the past three years. The demand for fields has led to the county building four new playing fields this year. Adult outdoor soccer league has grown by 50% over the past two years. Currently, there are 24 adult league teams participating in the outdoor city soccer league.

4.1 Market Segmentation

Dribbling Indoor soccer will focus on the following target customers:

Youths, ages 6-14 years of age. Adults, ages 24-35 years of age.

Table: Market Analysis

Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

Youth 12% 40,000 44,800 50,176 56,197 62,941 12.00% Adults 10% 30,000 33,000 36,300 39,930 43,923 10.00% Total 11.16% 70,000 77,800 86,476 96,127 106,864 11.16%

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Chart: Market Analysis (Pie)

Youth

Adults

Market Analysis (Pie)

5.0 Strategy and Implementation Summary

Dribbling Indoor Soccer will aggressively pursue membership and team registration by discounting both the membership fee and the team fee.

Membership Fee: Dribbling Indoor Soccer will offer a 25% discount on membership fees for the first six months.

Team Fee: The team fee will be reduced by $100 if the team registers before the early sign-up deadline.

In addition, we will sell the facility rental potential to local schools, churches, and civic organizations.

5.1 Marketing Strategy

Marketing programs The marketing strategy for Dribbling will differ throughout the year, depending upon demand for the facility. During the winter, when the weather is bad, and most leagues play indoors we will have to do very few marketing or advertising campaigns. During the summer however we must make sure that the center retains top of mind share with local recreational soccer players, and parents looking for activities for their children during school holidays.

Marketing programs during the summer will consist of:

Discounts: e.g. rent for one hour, get the second hour free. Advertise in the sports section of the local paper. Post fliers at other sports and recreation facilities.

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PricingAll league participants are required to become members of Dribbling Indoor Soccer. The annual fee for individuals is $40. Team registration per season is $700.

Teams can also purchase clinics. A 1/2 day clinic, that can include up to 15 people will cost $400. Children's clinics/camps will be priced at $80 for five half day sessions.

The fields will be available for rent on an hourly basis to members. Rental of a field will cost $55 per hour during the day and $65 per hour during the evenings and weekends.

5.2 Sales Strategy

Dribbling Indoor Soccer will sell the indoor facility to the current outdoor soccer teams. We will operate a booth at the city's soccer fields on the weekends for the two months before Dribbling opens. In addition, we will call the team captains and coaches directly and sell the quality and convenience of the facility. Dribbling Indoor Soccer will offer membership rates for field rental to these teams to get them in the facility. Spring is notorious for poor field conditions prior to the beginning of the soccer season.

During the first two weekends in April, Dribbling Indoor Soccer will offer free indoor soccer clinics for children and adults.

5.2.1 Sales Forecast

The following is the sales forecast for the next three years. The clinics, cafe, and the soccer shop will have direct cost of sales. The clinics will be hiring the coaches to lead the clinics. The soccer shop's direct cost will be the wholesale price of the shop's inventory.

Dribbling Indoor Soccer will make a strong push to expand league play in the summer. The summer is usually softball and baseball season and only competitive soccer teams play during the summer months. These competitive teams represent only 10% of young soccer players. The outdoor adults soccer leagues also don't operate during the summer months, leaving a large number of recreational soccer players with opportunity to play.

The only slow period for sales will be in November and December. Though league sessions end in mid-November, December has proven to be a poor month to begin a new league session.

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Chart: Sales Monthly

Memberships

Leagues

Rentals

Clinics

Soccer Shop

Cafe

$0

$4,000

$8,000

$12,000

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$32,000

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Month 1 Month 2

Month 3 Month 4

Month 5 Month 6

Month 7 Month 8

Month 9 Month 10

Month 11 Month 12

Sales Monthly

Chart: Sales by Year

Memberships

Leagues

Rentals

Clinics

Soccer Shop

Cafe

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Sales by Year

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Table: Sales Forecast

Sales Forecast


Sales

Memberships $42,000 $65,000 $78,000 Leagues $185,000 $190,000 $210,000 Rentals $43,000 $55,000 $67,000 Clinics $38,000 $48,000 $58,000 Soccer Shop $49,000 $54,000 $59,000 Cafe $48,000 $54,000 $60,000 Total Sales $405,000 $466,000 $532,000

Direct Cost of Sales Year 1 Year 2 Year 3Memberships $0 $0 $0 Leagues $0 $0 $0 Rentals $0 $0 $0 Clinics $20,500 $21,000 $24,000 Soccer Shop $18,500 $21,000 $23,000 Cafe $12,000 $14,000 $16,000 Subtotal Direct Cost of Sales $51,000 $56,000 $63,000

6.0 Management Summary

Les and Noh Klew will manage the day-to-day operations of Dribbling Indoor Soccer. Both Les and Noh are considered very people-oriented and excellent supervisors of staff. They are familiar with every aspect of the sport and both are certified to serve as officials for indoor soccer games.

Les has been instrumental in the popularity of soccer in Wingback County. He was a founding member of the Wingback County Soccer Council. At the time there was only a handful of people interested in sport. Over the next five years of his leadership, the Council acquired a budget of $200,000, a staff of six and became the major catalyst for the city's new outdoor soccer facility which will be hosting this year's Region 2 regional competition.

Noh was also an important influence in the development of soccer in Wingback County. Noh served as the Council's marketing and fundraising coordinator for six years. She increased donations by 15% each year over that period of time. She established the Council's marketing campaign to increase youth and adult soccer teams in Wingback County.

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6.1 Personnel Plan

The personnel of Dribbling Indoor Soccer are as follows:

Manager (Klew, Les); Asst manager (Noh Klew); Senior staff (2); Staff (2); Store staff person (1); Cafe staff (2).

A janitorial service will be contracted to clean the facility.

Clinic coaches will be hired, short term, as needed and paid out of clinic receipts.

Table: Personnel

Personnel Plan


Manager - Klew, Les $33,600 $36,000 $38,000 Asst. Manager - Noh Klew $33,600 $36,000 $38,000 Senior Staff $52,800 $55,000 $57,000 Staff Members $46,800 $48,000 $50,000 Soccer Store Staff Person $19,200 $21,000 $23,000 Cafe Staff $28,800 $31,000 $34,000 Total People 7 7 7

Total Payroll $214,800 $227,000 $240,000

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7.0 Financial Plan

The following is the financial plan for Dribbling Indoor Soccer.

7.1 Break-even Analysis

The monthly break-even as shown below, is based upon forecasted sales, listed earlier in this plan, and all our anticipated monthly expenses.

Chart: Break-even Analysis

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Break-even Analysis

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $32,741

Assumptions:

Average Percent Variable Cost 13% Estimated Monthly Fixed Cost $28,618

7.2 Projected Profit and Loss

The following table and charts will highlight projected profit and loss for the next three years.

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Table: Profit and Loss

Pro Forma Profit and Loss


Sales $405,000 $466,000 $532,000 Direct Cost of Sales $51,000 $56,000 $63,000 Other Production Expenses $0 $0 $0 Total Cost of Sales $51,000 $56,000 $63,000

Gross Margin $354,000 $410,000 $469,000 Gross Margin % 87.41% 87.98% 88.16%

Expenses

Payroll $214,800 $227,000 $240,000 Sales and Marketing and Other Expenses $31,600 $33,600 $33,600 Depreciation $6,000 $6,000 $6,000 Leased Equipment $0 $0 $0 Utilities $4,800 $4,800 $4,800 Insurance $6,000 $6,000 $6,000 Rent $48,000 $48,000 $48,000 Payroll Taxes $32,220 $34,050 $36,000 Other $0 $0 $0

Total Operating Expenses $343,420 $359,450 $374,400

Profit Before Interest and Taxes $10,580 $50,550 $94,600 EBITDA $16,580 $56,550 $100,600 Interest Expense $10,000 $10,000 $10,000 Taxes Incurred $174 $12,165 $25,380

Net Profit $406 $28,385 $59,220 Net Profit/Sales 0.10% 6.09% 11.13%

Chart: Profit Monthly

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Month 1 Month 2

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Month 5 Month 6

Month 7 Month 8

Month 9 Month 10

Month 11 Month 12

Profit Monthly

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Chart: Profit Yearly

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Profit Yearly

Chart: Gross Margin Monthly

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Gross Margin Monthly

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Chart: Gross Margin Yearly

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Gross Margin Yearly

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

Chart: Cash

Net Cash Flow

Cash Balance

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Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $405,000 $466,000 $532,000 Subtotal Cash from Operations $405,000 $466,000 $532,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $405,000 $466,000 $532,000

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending $214,800 $227,000 $240,000 Bill Payments $166,660 $205,604 $225,798 Subtotal Spent on Operations $381,460 $432,604 $465,798

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $381,460 $432,604 $465,798

Net Cash Flow $23,540 $33,396 $66,202 Cash Balance $53,540 $86,937 $153,138

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7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

Table: Balance Sheet

Pro Forma Balance Sheet


Assets

Current Assets

Cash $53,540 $86,937 $153,138 Inventory $5,225 $5,712 $6,584 Other Current Assets $5,000 $5,000 $5,000 Total Current Assets $63,765 $97,649 $164,722

Long-term Assets

Long-term Assets $40,000 $40,000 $40,000 Accumulated Depreciation $6,000 $12,000 $18,000 Total Long-term Assets $34,000 $28,000 $22,000 Total Assets $97,765 $125,649 $186,722

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $17,359 $16,858 $18,711 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $17,359 $16,858 $18,711

Long-term Liabilities $100,000 $100,000 $100,000 Total Liabilities $117,359 $116,858 $118,711

Paid-in Capital $60,000 $60,000 $60,000 Retained Earnings ($80,000) ($79,594) ($51,209)Earnings $406 $28,385 $59,220 Total Capital ($19,594) $8,791 $68,011 Total Liabilities and Capital $97,765 $125,649 $186,722

Net Worth ($19,594) $8,791 $68,011

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7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7997, Sport and Recreation Club, are shown for comparison.

Table: Ratios

Ratio Analysis

Year 1 Year 2 Year 3 Industry Profile

Sales Growth n.a. 15.06% 14.16% 2.76%

Percent of Total Assets

Inventory 5.34% 4.55% 3.53% 4.78% Other Current Assets 5.11% 3.98% 2.68% 28.67% Total Current Assets 65.22% 77.72% 88.22% 37.98% Long-term Assets 34.78% 22.28% 11.78% 62.02% Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 17.76% 13.42% 10.02% 16.07% Long-term Liabilities 102.29% 79.59% 53.56% 26.99% Total Liabilities 120.04% 93.00% 63.58% 43.06% Net Worth -20.04% 7.00% 36.42% 56.94%

Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00% Gross Margin 87.41% 87.98% 88.16% 100.00% Selling, General & Administrative Expenses 87.19% 81.62% 76.64% 73.13% Advertising Expenses 1.48% 1.29% 1.13% 2.52% Profit Before Interest and Taxes 2.61% 10.85% 17.78% 2.03%

Main Ratios

Current 3.67 5.79 8.80 1.43 Quick 3.37 5.45 8.45 0.97 Total Debt to Total Assets 120.04% 93.00% 63.58% 54.86% Pre-tax Return on Net Worth -2.96% 461.27% 124.39% 3.12% Pre-tax Return on Assets 0.59% 32.27% 45.31% 6.92%

Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 0.10% 6.09% 11.13% n.aReturn on Equity 0.00% 322.89% 87.07% n.a

Activity Ratios

Inventory Turnover 10.77 10.24 10.25 n.aAccounts Payable Turnover 10.60 12.17 12.17 n.aPayment Days 27 30 29 n.aTotal Asset Turnover 4.14 3.71 2.85 n.a

Debt Ratios

Debt to Net Worth 0.00 13.29 1.75 n.aCurrent Liab. to Liab. 0.15 0.14 0.16 n.a

Liquidity Ratios

Net Working Capital $46,406 $80,791 $146,011 n.aInterest Coverage 1.06 5.06 9.46 n.a

Additional Ratios

Assets to Sales 0.24 0.27 0.35 n.aCurrent Debt/Total Assets 18% 13% 10% n.aAcid Test 3.37 5.45 8.45 n.aSales/Net Worth 0.00 53.01 7.82 n.aDividend Payout 0.00 0.00 0.00 n.a

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Appendix

Table: Sales Forecast

Sales Forecast

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Sales

Memberships 0% $3,000 $6,000 $7,000 $3,000 $3,000 $3,000 $3,000 $3,000 $1,000 $3,000 $3,000 $4,000 Leagues 0% $8,000 $11,000 $15,000 $19,000 $19,000 $21,000 $21,000 $3,000 $6,000 $21,000 $21,000 $20,000 Rentals 0% $3,000 $3,000 $3,000 $3,000 $3,000 $4,000 $5,000 $5,000 $2,000 $4,000 $4,000 $4,000 Clinics 0% $0 $3,000 $3,000 $3,000 $3,000 $4,000 $4,000 $4,000 $2,000 $4,000 $4,000 $4,000 Soccer Shop 0% $3,000 $4,000 $4,000 $4,000 $4,000 $5,000 $4,000 $4,000 $5,000 $4,000 $4,000 $4,000 Cafe 0% $0 $4,000 $5,000 $5,000 $5,000 $5,000 $5,000 $3,000 $1,000 $5,000 $5,000 $5,000 Total Sales $17,000 $31,000 $37,000 $37,000 $37,000 $42,000 $42,000 $22,000 $17,000 $41,000 $41,000 $41,000

Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Memberships $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Leagues $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Rentals $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Clinics $1,500 $1,500 $1,500 $1,500 $1,500 $2,000 $2,000 $2,000 $1,000 $2,000 $2,000 $2,000

Soccer Shop $1,000 $1,500 $1,500 $1,500 $1,500 $2,000 $1,500 $1,500 $2,000 $1,500 $1,500 $1,500

Cafe $0 $1,000 $1,250 $1,250 $1,250 $1,250 $1,250 $750 $250 $1,250 $1,250 $1,250

Subtotal Direct Cost of Sales $2,500 $4,000 $4,250 $4,250 $4,250 $5,250 $4,750 $4,250 $3,250 $4,750 $4,750 $4,750

Page 1

Appendix

Table: Personnel

Personnel Plan


Manager - Klew, Les 0% $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 Asst. Manager - Noh Klew 0% $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 Senior Staff 0% $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 $4,400 Staff Members 0% $3,900 $3,900 $3,900 $3,900 $3,900 $3,900 $3,900 $3,900 $3,900 $3,900 $3,900 $3,900 Soccer Store Staff Person 0% $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 Cafe Staff 0% $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 Total People 7 7 7 7 7 7 7 7 7 7 7 7

Total Payroll $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900

Page 2

Appendix

Table: General Assumptions

General Assumptions


Plan Month 1 2 3 4 5 6 7 8 9 10 11 12

Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

Other 0 0 0 0 0 0 0 0 0 0 0 0

Page 3

Appendix

Table: Profit and Loss

Pro Forma Profit and Loss


Sales $17,000 $31,000 $37,000 $37,000 $37,000 $42,000 $42,000 $22,000 $17,000 $41,000 $41,000 $41,000

Direct Cost of Sales $2,500 $4,000 $4,250 $4,250 $4,250 $5,250 $4,750 $4,250 $3,250 $4,750 $4,750 $4,750

Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales $2,500 $4,000 $4,250 $4,250 $4,250 $5,250 $4,750 $4,250 $3,250 $4,750 $4,750 $4,750

Gross Margin $14,500 $27,000 $32,750 $32,750 $32,750 $36,750 $37,250 $17,750 $13,750 $36,250 $36,250 $36,250

Gross Margin % 85.29% 87.10% 88.51% 88.51% 88.51% 87.50% 88.69% 80.68% 80.88% 88.41% 88.41% 88.41%

Expenses

Payroll $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900

Sales and Marketing and Other Expenses

$800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800 $2,800

Depreciation $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Utilities $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400

Insurance $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Rent $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000

Payroll Taxes 15% $2,685 $2,685 $2,685 $2,685 $2,685 $2,685 $2,685 $2,685 $2,685 $2,685 $2,685 $2,685 Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $26,785 $28,785 $28,785 $28,785 $28,785 $28,785 $28,785 $28,785 $28,785 $28,785 $28,785 $28,785

Profit Before Interest and Taxes ($12,285) ($1,785) $3,965 $3,965 $3,965 $7,965 $8,465 ($11,035) ($15,035) $7,465 $7,465 $7,465

EBITDA ($11,785) ($1,285) $4,465 $4,465 $4,465 $8,465 $8,965 ($10,535) ($14,535) $7,965 $7,965 $7,965

Interest Expense $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833

Taxes Incurred ($3,936) ($786) $939 $939 $939 $2,140 $2,290 ($3,561) ($4,761) $1,990 $1,990 $1,990

Net Profit ($9,183) ($1,833) $2,192 $2,192 $2,192 $4,992 $5,342 ($8,308) ($11,108) $4,642 $4,642 $4,642

Net Profit/Sales -54.02% -5.91% 5.92% 5.92% 5.92% 11.89% 12.72% -37.76% -65.34% 11.32% 11.32% 11.32%

Page 4

Appendix

Table: Cash Flow

Pro Forma Cash Flow


Cash Received

Cash from Operations

Cash Sales $17,000 $31,000 $37,000 $37,000 $37,000 $42,000 $42,000 $22,000 $17,000 $41,000 $41,000 $41,000

Subtotal Cash from Operations $17,000 $31,000 $37,000 $37,000 $37,000 $42,000 $42,000 $22,000 $17,000 $41,000 $41,000 $41,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Received $17,000 $31,000 $37,000 $37,000 $37,000 $42,000 $42,000 $22,000 $17,000 $41,000 $41,000 $41,000

Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Expenditures from Operations

Cash Spending $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900 $17,900

Bill Payments $209 $6,584 $15,378 $16,674 $16,408 $16,518 $19,641 $17,496 $11,266 $8,975 $19,553 $17,958

Subtotal Spent on Operations $18,109 $24,485 $33,278 $34,574 $34,308 $34,418 $37,541 $35,396 $29,166 $26,875 $37,453 $35,858

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Spent $18,109 $24,485 $33,278 $34,574 $34,308 $34,418 $37,541 $35,396 $29,166 $26,875 $37,453 $35,858

Net Cash Flow ($1,109) $6,516 $3,722 $2,426 $2,692 $7,582 $4,459 ($13,396) ($12,166) $14,126 $3,547 $5,142

Cash Balance $28,891 $35,406 $39,128 $41,555 $44,247 $51,829 $56,288 $42,892 $30,725 $44,851 $48,398 $53,540

Page 5

Appendix

Table: Balance Sheet

Pro Forma Balance Sheet


Assets Starting Balances

Current Assets

Cash $30,000 $28,891 $35,406 $39,128 $41,555 $44,247 $51,829 $56,288 $42,892 $30,725 $44,851 $48,398 $53,540 Inventory $5,000 $3,500 $4,400 $4,675 $4,675 $4,675 $5,775 $5,225 $4,675 $3,575 $5,225 $5,225 $5,225 Other Current Assets $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Total Current Assets $40,000 $37,391 $44,806 $48,803 $51,230 $53,922 $62,604 $66,513 $52,567 $39,300 $55,076 $58,623 $63,765

Long-term Assets

Long-term Assets $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 Accumulated Depreciation $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 Total Long-term Assets $40,000 $39,500 $39,000 $38,500 $38,000 $37,500 $37,000 $36,500 $36,000 $35,500 $35,000 $34,500 $34,000 Total Assets $80,000 $76,891 $83,806 $87,303 $89,230 $91,422 $99,604 $103,013 $88,567 $74,800 $90,076 $93,123 $97,765

Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Current Liabilities

Accounts Payable $0 $6,073 $14,822 $16,127 $15,861 $15,861 $19,051 $17,118 $10,979 $8,321 $18,954 $17,359 $17,359 Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Current Liabilities $0 $6,073 $14,822 $16,127 $15,861 $15,861 $19,051 $17,118 $10,979 $8,321 $18,954 $17,359 $17,359

Long-term Liabilities $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 Total Liabilities $100,000 $106,073 $114,822 $116,127 $115,861 $115,861 $119,051 $117,118 $110,979 $108,321 $118,954 $117,359 $117,359

Paid-in Capital $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 Retained Earnings ($80,000) ($80,000) ($80,000) ($80,000) ($80,000) ($80,000) ($80,000) ($80,000) ($80,000) ($80,000) ($80,000) ($80,000) ($80,000)Earnings $0 ($9,183) ($11,016) ($8,824) ($6,631) ($4,439) $553 $5,895 ($2,413) ($13,521) ($8,878) ($4,236) $406 Total Capital ($20,000) ($29,183) ($31,016) ($28,824) ($26,631) ($24,439) ($19,447) ($14,105) ($22,413) ($33,521) ($28,878) ($24,236) ($19,594)Total Liabilities and Capital $80,000 $76,891 $83,806 $87,303 $89,230 $91,422 $99,604 $103,013 $88,567 $74,800 $90,076 $93,123 $97,765

Net Worth ($20,000) ($29,183) ($31,016) ($28,823) ($26,631) ($24,439) ($19,447) ($14,105) ($22,413) ($33,520) ($28,878) ($24,236) ($19,594)

Page 6

Documents

Indoor Soccer Facility Business Plan