SNAG KZN Business Plan 2016

SNAG® KZN BUSINESS PLAN 2016 SNAG® KwaZulu-Natal

Prepared by: Mr Lee Bromley

Email: [email protected] Tel: 072 249 2733

www.snagdurban.co.za

http://www.snagdurban.co.za/

SNAG® KZN BUSINESS PLAN 2016

Table of Contents

I. Executive Summary ....................................................................................................................... 2

Highlights

Objectives

Mission Statement

Keys to Success

II. Description of Business ................................................................................................................ 4

Company Ownership/Legal Entity

Location

Interior

Hours of Operation

Products and Services

Suppliers

Service

Manufacturing

Management

Financial Management

Start-Up/Acquisition Summary

III. Marketing .................................................................................................................................... 15

Market Analysis

Market Segmentation

Competition

Pricing

IV. Appendix ..................................................................................................................................... 22

Start-Up Expenses

Determining Start-Up Capital

Cash Flow

Income Projection Statement

Sales Forecast

Milestones

Miscellaneous Documents

SNAG® KZN BUSINESS PLAN 2016 - OCTOBER 2015 2


Executive Summary

SNAG® KZN will be registered as a Private Limited Company in South Africa. It will be a fundamental

movement skills and golf development organization providing services to children from the age of 3 years

old, ladies, families and the corporate sector. It will provide the communities in which it operates, a complete

and unique sports and social development program through its SNAG® equipment. SNAG® KZN offers

participants from pre-primary school, primary school, high school through to the corporate world, a positive

learning and team experience along with the opportunity to become active for life.

The keys to success for SNAG® KZN are the ability to market effectively, creating an unmatched “cool”

atmosphere where people like to be, and hiring qualified/certified coaches to aid in the running of the

projects and the programs.

SNAG® KZN is seeking an investor/partner for the sum of R982 600.00 (nine hundred and eighty two

thousand six hundred South African Rands) for a 40% equity in the company. These funds will allow

SNAG® KZN to meet all the start-up costs and the purchase of much needed equipment.

Highlights

SNAG® KwaZulu- Natal (KZN) will sign up 2400 (two thousand four hundred) members in Year 1 through

its 5 projects (SNAG® Durban, SNAG® Midlands, SNAG® Upper Highway, SNAG® Dolphin Coast and

SNAG® South Coast. It will also sign up 30 ladies into the SNAG® Ladies program in Durban and the

Midlands of KwaZulu-Natal. The Corporate SNAG® program will attract 10 companies in the first year and

SNAG® KZN will launch its “SNAG® Roadshow” and “The Amazing SNAG® Race in its first year of

operation. Year 2 and Year 3 of operation will see the memberships and attendances in each service or

product offered, increase by 80% for the second year and 40% for the third year of operation.

The company plans to realize revenues of R 13 086 000 (thirteen million and eighty-six thousand South

African Rands) in Year 1, R 23 652 000 (twenty-three million six hundred and fifty-two thousand South

Africa Rands) in Year 2 and R 32 880 000 (thirty-two million eight hundred and eighty thousand South

African Rands) in Year 3.

R0

R10 000 000

R20 000 000

R30 000 000

R40 000 000

R50 000 000

R60 000 000

R70 000 000

2015/2016 2016/2017 2017/2018 2018/2019

Financial OverviewSales Net Profit Expenses



Objectives

To become the premier and preferred golf and fundamental movement skills development

organization within South Africa.

To operate a profitable organization by constantly increasing revenue while limiting expenses.

Implement a complete pathway with progressive modules to ensure children are given the best

possible opportunity to develop at their own developmental pace and assist them to excel in life.

Launch projects within all regions of KwaZulu-Natal within the first 2 years of operation.

Expand the overall footprint of the company into other provinces of South Africa by the end of the

3rd year of operation.

To develop and implement a training program to accredit SNAG® coaches throughout South Africa.

To have 1000 SNAG® members in each of the SNAG® KZN project areas.

To create and implement SNAG® programs for Adults, particularly Ladies, to introduce more

Ladies to the game of golf.

To create and implement Corporate SNAG® whereby the SNAG® program is taken to the

corporate workplace, rather than trying to get employees to the golf facility.

To host and attend events and demonstrations to create awareness for the SNAG® program and

SNAG® KwaZulu-Natal.

Mission Statement

To provide children with an opportunity to learn fundamental movement skills and to learn and play golf in

an exciting, safe and knowledgeable learning environment, where they can experience sportsmanship, self-

respect, patience, discipline and life skills, enabling them to excel in life.

Keys to Success

An investor and partner investing into SNAG® KwaZulu-Natal, providing the financial resources to

launch the program and purchase the SNAG® Inflatable Equipment required to allow the program

to become completely mobile.

Train and accredit SNAG® coaches to join the team and create a wide footprint.

Unique and stimulating curriculum and activities to compliment the SNAG® Equipment and ensure

mass participation in the program.

Managing and Developing People within the organization to develop their skills and knowledge.

Strategic Focus on the desired results, such as increased revenue and profit, satisfied SNAG®

members and constantly seeking new opportunities to expand.

Create value for SNAG® members through a quality, safe and enjoyable curriculum and pathway to

success.

Physical resources, such as Finances, Equipment and Transportation.

Member Relations and ensuring the SNAG® Members are getting what they need. Tracking

competitor actions, analyzing changes in the market environment, and adapting accordingly.



Description of Business

SNAG® KZN is primarily a youth development organization focusing on the physical, emotional and

cognitive developmental of children from the age of 3 upwards. The primary focus being on developing

fundamental movement skills, sports specific skills (golf) and life skills for pre-primary and primary school

going children. Value added services are focused on introducing new players to the game of golf.

Company Ownership/Legal Entity

SNAG® KZN will be a Private Limited (Pty Ltd) Company registered in terms of the Companies Act of

South Africa. SNAG® KZN will be a partnership represented by five parties;

Mr Lee Bromley – Bakusasa Trust (Passport Number: 529096151) - 40% shareholding

Mr Craig Fairey – (ID Number: 64111065237086) - 20% shareholding

An Investor – Providing Start Up Capital - 40% shareholding

Location

SNAG® KZN does not require a specific location out of which to operate. The initial focus area will be

KwaZulu-Natal with venues being sourced within Schools, Sports Clubs and Golf facilities. Each area of

focus in which a SNAG® KZN project is launched will utilize a variety of different venues to create a large

SNAG® membership for each project.

Projects and Venues will be launched and implemented, initially, in 5 major areas of KwaZulu-Natal, South

Africa as shown below;

SNAG Durban

Morningside

Glenwood

Umbilo

Berea

Bluff

Amanzimtoti

Durban North

Glen Ashley

La Lucia

Umhlanga

Mt Edgecombe

SNAG Midlands

Pietermaritzburg

Hilton

Howick

Cato Ridge

Underberg

Nottingham Road

Mooi River

Escourt

SNAG Upper

Highway

Westville

Pinetown

Gillits

New Germany

Kloof

Hillcrest

Waterfall

SNAG Dolphin

Coast

Ballito

Darnall

Kearsney

Salt Rock

Stanger

Richards Bay

Tongaat

Umhlali

SNAG South Coast

Port Shepstone

Uvongo

Margate

Ramsgate

Hibberdene

Pennington

Scottburgh

Umkomaas

Port Edward



Interior

The SNAG® program does not require the exclusive use of outdoor venues and each project will be

encouraged to utilize indoor and outdoor venues, to create a unique, holistic environment for the program.

Unlike all competitors, SNAG® KZN is not restricted to conducting sessions in daylight hours and therefore

“after-hours” sessions and events can also be conducted.

Hours of Operation

SNAG® KZN is not restricted to normal hours of operations. Sessions and events will be conducted at times

which best suit the SNAG® members for each project launched.

Ideally, sessions will be conducted 6 days a week, being Monday to Saturday with venues at schools and

sports facilities. Each project area, however, will customize a session schedule to meet the demands of

members within their area.

Products and Services

SNAG® stands for Starting New At Golf. It is quite simply the world’s leading first-touch golf learning

system. SNAG® is based on both age-appropriate specialized equipment and proven programming to teach

the four basic shots in golf in an organized systematic way so any new learner, regardless of age, can quickly

have success, understanding and most of all, fun whilst learning to play golf.

With above ground targets, tees and SNAG® balls, (which are similar to a tennis ball) SNAG® can be played in any open space, indoors and outdoors, without any agronomic or floor damage. It is infinitely adjustable to any age or player capability in distance and challenge.

SNAG® Golf is all about having FUN while learning the basics of golf.

SNAG® KZN will offer a range of services, events and activities;

1. SNAG® KZN Membership 2. Ladies SNAG® 3. Corporate SNAG® 4. SNAG® Events 5. The Amazing SNAG® Race

1. SNAG® KZN Membership

The target market for SNAG® membership is identified as primary school children from the age of 3 years old. Program sessions will be conducted 6 days a week from Monday – Saturday at different contracted venues within the geographic area of each demarcated area of KwaZulu-Natal. There will be 3 sessions per day in age specific groups, as listed below;

•12:45 - 13:15hrs Mon - Fri 08:00 - 09:00hrs Saturdays

Ages 3 - 6


Ages 7 - 12


Open Group (All Ages)



The schools’ system and infrastructure will be used to conduct demonstrations and introduce the children to the SNAG® program, through physical education periods and various sporting events. Schools will also be utilized as SNAG® session venues, as well as popular sports clubs.

The SNAG® iPE Coaching Program

The SNAG® iPE Coaching Program and curriculum meets national physical education standards with equipment that is safe and developmentally appropriate. The SNAG® KZN Coaching System utilizes the “Whole-Part – Whole Teaching Method.” It involves the demonstration of the whole skills first and then the breakdown of the skill, into its parts so it can be seen, understood and executed correctly. Each part is described by a phrase or word picture and an assigned word cue. When word cues are given in their proper sequence, the player is able to recall the descriptive phrase or mental image and can work on his or her own to practice the skill.

By performing specific tasks outlined in the SNAG® KZN Coaching System, new learners develop correct golf motor skills. The system contains five creative training tools that will enhance their progress. It is important to note that most learners are visual learners and respond positively when instructions are not mechanical, but FUN. In summation, these are the benefits of utilizing the SNAG® KZN Coaching System;

A systematic approach to teaching;

Includes a multi-station and play approach;

Incorporates the “how and where” each shot is played;

Includes the use of training tools to build proper motor skills;

Stringent safety and class management techniques;

Designed for all new learners;

Heavy focus on new learner self-correction;

Can be taught indoors and outdoors;

Utilizes stations to teach the various strokes and swings;

Provides a safe and fun environment for all learners;

Easily controlled and managed by the instructor;

Better learning environment for learners. SNAG®’s design utilizes the science of human learning, combining components, such as chromo psychology, neurolinguistics learning styles and psychoacoustics. The colours of SNAG® were specifically chosen based on chromo psychology aimed at eliminating fear in the learning process and creating a fun, relaxing environment, to put new learners at ease. The word cues utilize neurolinguistics programming to create exact tasks designed to develop golf specific motor skills. The training tools work by using psycho-acoustic sounds and rhythms, visual stimuli, as well as tactile and kinesthetic feedback to build motor skills for each swing and stroke.



More than just a game, the SNAG® iPE program contains objectives in the three domains of student learning;

Psychomotor – Physical Skills.

Cognitive – Knowledge of concepts, rules and strategies.

Affective – Emotional well-being.

The SNAG® iPE program also includes ideas for academic integration. Furthermore, what makes the

SNAG® iPE Curriculum unique is the Life Skills section that addresses the emotional health issues of the

students in each session. Basic concepts such as personal behavior, decision-making, appreciation and

consideration are focused on in the foundation phases, whilst more advanced concepts are explored in the

progressive levels.

The SNAG® iPE curriculum includes:-

Psychomotor Cognitive Affective

Fundamental Movement Skills

• Gross Motor Skills

• Locomotor

• Manipulative

• Stability

• Agility, Balance & Coordination

• Active for Life Skills

Life Skills

• Setting Boundaries

• Making Decisions

• Resolving Conflicts

• Coping with Stress

• Obtaining Help

• Setting Goals and Discipline

Core Values

• Integrity

• Self-Respect

• Perseverance

• Patience

• Honesty

• Sportsmanship

• Confidence

• Judgement

Golf Fundamentals

• Rolling, Chipping, Pitching & Full Swing

• Etiquette & Rules

• Social Interaction



SNAG® KZN Membership sessions are generally 1 hour in length and compromise of 30 minutes of

physical education (fundamental movement skills) and 30 minutes of SNAG® instruction (fundamental

sports skill). Sessions are conducted in groups and can be conducted in confined space, both indoors and

outdoors. Stations are set up in a safe and friendly environment, according to the children’s progression level.

Coaching is conducted on developmental age rather than biological age.

SNAG® KZN MEMBERSHIP FEES

SNAG® KZN members will pay a R150 joining fee on signing up and membership fees are charged at R350

per month via debit order or scheduled payment.

Members will also enjoy the benefits of a membership rewards program with partners of SNAG® KZN

offering its members discounted rates or services.

SNAG® KZN PROJECT LAUNCH AND EXPANSION

SNAG® KZN will initially launch 3 projects;

1. SNAG® Durban Project

2. SNAG® Midlands Project

3. SNAG® Upper Highway Project

Each project will begin with a Head Coach and 6 venues signed up. These venues will include at least 5

schools and 1 sports facility within the geographical area. As the membership in each project area grows,

further venues and session times will be implemented and additional coaches employed. The coach

development program will be implemented simultaneously to the project set up and expansion plan.

Within 6 months, the remaining KwaZulu-Natal Projects will be launched, namely;

4. SNAG® Dolphin Coast

5. SNAG® South Coast

Within the first two years of operation, SNAG® KZN will begin its plan to launch projects within other

provinces of South Africa.

2. Ladies SNAG®

Each SNAG® KZN project will offer and promote the SNAG® program to ladies within its geographical

area. The Ladies SNAG® membership will be based on the SNAG® KZN Membership program, whereby

ladies wanting to learn to play golf will become members of SNAG® KZN at the same membership and

joining fee structure as the SNAG® KZN Membership program.



One Ladies SNAG® session a week will be conducted at a sports venue and groups of up to 40 ladies will be

targeted for each scheduled session time.

3. Corporate SNAG®

SNAG® KZN offers the SNAG® program to companies and organisations that want their management and

employees to learn the game of golf, or as a tool for team building. Sessions are conducted either at the work

place or at a sports facility. Sessions are conducted either indoors or outdoors depending on the individual

company’s requirements. Companies and organisations can also utilize SNAG® KZN for their functions,

events and corporate golf days.

Each Corporate SNAG® package is customized to meet the requirements of each company signing up for

Corporate SNAG® with days, times and venues set according to the schedule of the client.

One session per week is conducted according to the company or organisation’s requirements and a monthly

fee is paid to SNAG® KZN for services rendered.

4. SNAG® Events

SNAG® KZN will host and attend a number of events to promote its brand and gain maximum exposure.

5. The Amazing SNAG® Race

SNAG® KZN will create an obstacle type course event series whereby adults and children compete together,

as a team, in a challenge series, loosely based on the television series, “The Amazing Race”.

Suppliers

SNAG® KZN’s current equipment is supplied on a rental agreement basis from SNAG® Africa based in

Cape Town, South Africa. The rental agreement commenced on 01 September 2015 for the duration of 3

years. The current monthly rental amount is R 3000.00 (three thousand South African Rands).

Additional equipment will be purchased from SNAG® Africa, namely the SNAG® Inflatable Driving Range

and the SNAG® Futbol ™ equipment. The cost and shipping of this equipment is listed below;

Inflatable 10 Bay SNAG Driving Range

• R345 000

SNAG Futbol Equipment

• R 75 000

SNAG Futbol Inflatable Soccer Pitch

• TBC



Service

SNAG® KZN offers a first touch service for children to develop their fundamental movement skills and

sports specific skills. A variety of events and activities will also be created and hosted.

Manufacturing

Whilst SNAG® KZN does not manufacture any of its products and services, and all the equipment currently

used is either purchased or rented from SNAG® Africa, there are various props and equipment that will be

custom made for SNAG® KZN and its various programs.

Management

The management team of SNAG® KZN has a combined total of over 45 years of experience in the golf

industry at its highest level. Furthermore, there is a wealth of knowledge and experience in Early Childhood

Development and Youth Development. In addition to this, the management team are all parents and

understand the importance of developing children physically, mentally and emotionally. These expertise will

greatly benefit SNAG® KZN and create a distinctive edge over competitors. Along with sports related

expertise comes a wealth of hospitality expertise which creates the perfect synergy in becoming the leader in

sports and child development, for SNAG® KZN.

SNAG® KZN MANAGEMENT TEAM

CRAIG FAIREY

* 20 years of Sales &

Marketing experience

* 16 years of Golf Industry

experience

* 7 years European Tour

Caddy

* SNAG® certified Level 1

coach.

* Marketing and Fund

Raising Consultant for

Bakusasa Trust

RON SMITH

* Professional Golfer

since 1989 (26 years)

* Qualified Golf Coach

with the United States

Golf Teachers Association

* Hank Hanney Certified

* 15 years of Teaching

Experience in USA,

Holland, Canada, Malawi,

South Africa, Zimbabwe,

Zambia & Botswana

* 6 years of Tour

experience on Sunshine

Tour, Canadian Tour and

European Satellite Tour

LEE BROMLEY

* Professional Golfer since

1994 (21 years)

* Involved in the golf

industry for 37 years

* The only certified Level 4

Regional Trainer in

KwaZulu-Natal

* Founder of Bakusasa

Trust www.bakusasa.org.za

* 22 years of business

experience in the

Hospitality, Medical

Insurance and Satellite

Communications Industries

DON GAMMON

* Professional Golfer since

1990 (25 years)

* 10 years golf teaching

experience as Director of

Gammon Golf instruction

* Producer and presenter of

Ultra Simple Golf TV – 286

shows in 10 years

* Outstanding playing

career with over 27 wins

and played on the Sunshine

Tour, European Tour,

Japanese Tour, Web.com

Tour and Asian Tour

* Owner of Logical Golf

Lab

www.snagkzn.co.za

http://www.bakusasa.org.za/



The combined strengths of the management team will guarantee that SNAG® KZN will be the preferred

childhood development program in South Africa. These strengths will also ensure that SNAG® KZN, as a

company will experience great success, with sound business management and ethos. Responsibilities of the

management team will include;

Mr Lee Bromley – will hold the position of Managing Director and his responsibilities will include;

Business Strategy

Training and Accrediting Coaches

New Project Development

Communicate with Investors

Coaching Curriculum and Program Content and Development

Competitor Analysis

Keeping up with Business Trends

Mr Don Gammon – will hold the position of Business Development and Corporate Affairs Director and his

responsibilities will include;

Corporate SNAG® Development and Implementation

Corporate Sponsorship and Business Development

Networking and SNAG® Exposure

Driving the Growth of the Company by generating New Business Opportunities

Strategic Planning for Future Development

Mr Craig Fairey – will hold the position of PR Marketing & Membership Manager

Public Relations

Client Liaison

Marketing Development

Membership Administration

Bookings

Mr Ron Smith – will hold the position of Project Director Midlands and his responsibilities will include;

SNAG® Program Development in the Midlands area of KwaZulu-Natal

Identify and Sign Up SNAG ® Venues

Exposing Children to the Program and Signing Up Members

Conducting of Demonstrations

Ensuring the correct delivery of the Program to Members

Creating Member Profiles on the Online Database



Maintaining Scores and Assessments

Monthly Assessments and SNAG ® Certification on Member Progress

Monthly Reporting

Mr Dane Vosloo – will hold the position of Project Director Durban and his responsibilities will include;

SNAG® program development in the Durban area of Ethekwini, in KwaZulu-Natal. Identify and

Sign Up SNAG ® Venues







Monthly Reporting

Mr Lionel Wearne – will hold the position of Project Director Upper Highway and his responsibilities

will include;

SNAG® program development in the Upper Highway area of Ethekwini, in KwaZulu-Natal.

Identify and Sign Up SNAG ® Venues







Monthly Reporting

A Project Director for SNAG® Dolphin Coast and SNAG® South Coast will be recruited, trained and

certified to fulfill the role and responsibilities of Project Director in their respective areas.

SNAG® KZN will create and implement a comprehensive training and support program for all team

members, with a complete coaching and program manual, code of conduct and handbook, to ensure that

consistently high standards and methods are implemented and maintained in all areas of the company and the

program.

Project Directors will be incentivized through a profit sharing scheme, to take ownership and develop their

respective project areas. All employees will be trained to promote the company and constantly attract more

members into the program. Employees will be rewarded through incentivized targets and profit sharing,

relevant to their department and responsibilities.



Financial Management

The business will profitable in a short period of time due to the stringent and strategic management of the

company, by ensuring constant growth, increasing revenue streams and keeping expenses down. The

company will confront and handle all its challenges through a structured approach, with key elements;

Keeping up with the Market

Planning Ahead

Real-time Cash Flow and Financial Management

Problem Solving and implementing the right systems and standard operating procedures

Skills and Attitude towards business and its members

Welcoming change and evolving with business trends

Keeping up with the Market

Business conditions change continually, so our market research will be continuous as well. The business will

continuously understand where its products and services are in their lifecycles which will assist in calculating

how to maximize overall profitability

Planning Ahead

Updating this Business Plan regularly will ensure the business is always current and meeting its targets and

objectives. It also ensures the company is adapting to market trends.

As the business grows, its strategy will evolve to suit the changed circumstances. It is also important to be

alert to new opportunities.

Cash Flow and Financial Management

The company will implement good cash flow control and make best use of its finances. Every element of the

working capital will be carefully controlled to maximize free cash flow. Effective credit management and tight

control of overdue debts will be essential.

Problem Solving

SNAG® KZN will implement strategies, sound financial controls, quality management and recruit the right

team members to ensure that it does not operate in perpetual crisis mode. The management will continually

identify the key drivers for growth and ensure that member retention and service is a key priority, through a

disciplined approached to management, focusing on leading employees, developing the management team

and building its business strategy.



The Right Systems

Solid information management systems will ensure that information is shared and different functions work

together effectively. To help the business grow, the right infrastructure will be put into place. This will

guarantee the company benefits on a daily basis from effective operations.

Skills and Attitude

Appropriate delegation of responsibilities and trusting the management team is the focus, to help the business

to operate effectively and achieve the desired growth. As the business grows, the company may need to bring

in outsiders to assist. It may want to delegate responsibility for particular areas to different specialists, or

appoint a non-executive director to strengthen the board. Learning to list and to take advice is essential to

make the most of the opportunities that may be presented.

Welcoming Change

Complacency can be a major threat to a growing business. The company will regularly revisit and update the

Business Plan, as an up-to-date Business Plan assists in identifying the actions required in order to change the

business and the way it operates. The business will remain committed to its strategy and be prepared to make

difficult decisions.

SNAG® KZN will enjoy the benefits of a good cash flow and little or no accounts receivable.

START UP NEEDS AND OPERATING BUDGET

SNAG® KZN requires start-up capital to secure one-time only purchases of the SNAG® inflatable Driving

Range with Trailer, SNAG® Futbol equipment and ensure operating costs and payroll are covered for the

first 3 - 6 months of set up and operations. The start-up capital will also cover the costs of marketing and

launching the SNAG® KZN Projects.

A full break-down of start-up expenses and start up requirements is listed below;



Start-Up/Acquisition Summary

An investor is being invited to provide R982 600 (nine hundred and eighty two thousand six hundred South

African Rands) of start-up capital for a 40% stake holding in SNAG® KZN. The start-up capital will be used

to purchase necessary equipment and cover operating expenses as shown in the table below;

START-UP REQUIREMENTS AMOUNT (ZAR) EQUIPMENT PURCHASE

SNAG® Inflatable Driving Range & Trailer R 345 000 .00

SNAG® Futbol Equipment R 90 000 .00

OPERATING COSTS – Month 1 – Month 3

Payroll R 382 000.00

SNAG® Equipment Rental R 21 000.00

Initial Marketing, Advertising & Promotion R 30 000.00

Event Activations R 30 000.00

Legal, Company Registration & Organisational Costs R 8000.00

Membership Cards, Shirts & Caps R 45 000.00

Management Uniforms R 12 000.00

Insurance R 3 600.00

Travel, Fuel and Oil R 12 000.00

Telephone & Stationery R 4 000.00

TOTAL R 982 600.00

Marketing

A comprehensive, strategic and aggressive marketing plan will be implemented from the onset. The

Marketing Plan will include the following key elements;

Positioning – Reflecting key marketing messages in all sales and marketing materials

Competitive Analysis – Comprehensive research on competitors and SNAG® KZN’s key selling

advantages

Market Analysis – Pinpointing target markets and identifying major opportunities

Customer Analysis – Strategies will be customer driven, determining where SNAG® KZN’s

greatest opportunities lie and focusing on high –potential clients, while protecting the revenue base

Revenue Analysis – Group revenues into categories for desire revenue streams, to reflect new

markets and directions

Customer Service Strategy – Servicing customers and the costs versus rewards

Product Development Strategy – Professional services versus training versus outsourcing in all

areas of the business

Pricing Strategy – Reflecting the pricing philosophy and include discounts and incentives. The

important factor being a return on investment to determine profitability



Sales Strategy – Considering direct versus channels versus alliances

Sales Process – Process of generating leads and managing them through the sales funnel to closure

Promotion Strategies – “Getting the word out” and generating leads via web, printed materials,

schools, direct mail, advertising, telemarketing, public relations and so on

Major Marketing Objectives – Key marketing accomplishments for the next 12 months and how

success will be measured

Strategies – Accomplishing each objective

Monthly Action Plans – Planning activities by quarter with small goals leading to bigger goals.

Determining responsibilities and the delegation of such

Marketing Budget – How much will it take to meet goals over the next 12 months, utilizing 5% of

gross sales for the marketing budget

Market Analysis

SNAG® KZN’s target market is children from the age of 3 years old and upwards, ladies wanting to learn

how to play golf and corporate companies looking to team build and/or give their employees and

management, the opportunity to learn how to play golf.

The demographics of the target market are in KwaZulu-Natal, initially, with the long term goal of expanding

into the other provinces of South Africa.

There are approximately 6150 schools in KwaZulu-Natal and 3 075 000 school going children. The size of

SNAG® KZN’s market is extremely large and will continue to grow, year by year. SNAG® KZN’s strategy

of using the school system and infrastructure will ensure it secures a large market share. This infrastructure

will be utilized to market the company and program and what SNAG® KZN has to offer.

0%

5%

10%

15%

20%

25%

30%

35%

40%

2016 2018 2020

% g

row

th o

ver

pri

or

per

iod

Local Market Growth

School Children

New Scholars

New Schools



Market Segmentation

Competition

Although SNAG® KZN does not have any direct competitors, there are a number of companies or

organisations that offer physical education and sport development, namely;

Playball

Busytots

Busyballers

Durban North Coaching Academy

Garvz Sports Academy

PLAYBALL

Playball offers a multi-skill program of basic fundamental sports skills, with mini games of tennis, hockey,

football, basketball, baseball and volleyball.

Strengths

International Brand through a Franchise which originally started in South Africa.

Recognised brand.

Marketing, advertising and coaching assistance through an International Franchisor.

Market Segments

SNAG® Membership Ladies SNAG® Corporate SNAG® SNAG® Events The Amazing SNAG® Race



Weaknesses

No web presence for Durban and most KwaZulu-Natal areas.

Safety in sessions is not an important factor – some activities are dangerous.

Limited number of sports used in coaching.

The program only caters for children between the ages of 2 and 9 years old.

A franchised coaching curriculum is used and may not be unique to the situation in each of the

schools or KwaZulu-Natal or South Africa.

As a franchise, restrictions inhibit the ability to adapt to current and future market trends.

Royalties and franchise fees must be paid.

Coaching equipment is pre-prescribed and cannot be customized.

BUSYTOTS

Busytots is a developmental program for children 1 year to 3 years old. It apparently encourages

creativity, exploration and learning through music, dance, art, ball skills and multisensory play. The classes

aim is to strengthen each child’s social and emotional skills, speech and language development, early

literacy and as well as gross motors and fine motor skills.

Strengths

The objectives offer a multi-development program for toddlers.

Attractive to pre-schools and early childhood development.

Weaknesses

No web presence and no website.

Will need a large number of coaches to coach all the skills listed in the program, with specialist

coaches in most areas.

Restricted to the number of children in each session or class due to the intense curriculum.

Also restricted to the number of venues or schools.

Cannot possibly fulfill all the listed skills and objectives properly in 2 years.

BUSYBALLERS

Busyballers is a sports program for 2 and a half year olds and older and is dedicated to the task of

introducing them to the world of sport. The primary objective of Busyballers is to provide the necessary

balls skills to ensure a lifetime of enjoyment whilst participating in sport.



Strengths

Offer a fairly good range of services.

Progress reports sent to parents at the end of the year.

Fairly good web presence.

Weaknesses

Only cater for children up to the age of 9 years old.

Cancel sessions due to inclement weather.

Do not offer a continuation program for children after they turn 9 years old.

Only teach limited sporting codes, namely; Hockey, Soccer, Baseball and Cricket.

Coach according to age and not developmental skills.

DURBAN NORTH COACHING ACADEMY

Durban North Coaching Academy offers coaching services, such as;

Direct and run school’s sports programs.

Offer private coaching services outside of school hours.

Run birthday parties and special events.

Run clinics.

Run tournaments.

Organize and run festivals.

Strengths

Well connected within the school structure in Durban North.

Weaknesses

Expensive coaching fees.

Limited sporting codes offered.

Difficult to find out information on Durban North Coaching Academy.

Doesn’t specify what age groups are accommodated or what skills or sporting codes are taught.

Doesn’t seem to be any benefit to signing up.

GARVZ SPORTS ACADEMY

Garvz Sports Academy offers boys & girls between the ages of 3 and 9 years old a sports experience. It

concentrates on skills and fitness, safety in sport and acquiring knowledge in a non-contact environment.



Strengths

Made fairly popular through its founder, Adrian Garvey.

Affiliation with Sharks Rugby and Dolphins Cricket.

Location is good – situated close to Moses Mabhida and Kings Park Stadiums.

Relatively inexpensive subscriptions with decent value added services.

Good web presence.

Weaknesses

Only coaches Rugby, Hockey, Football and Cricket. No other sporting codes offered.

Trying to expand through franchising and yet current business model is not sound.

Weak fundamental movement skills coaching.

Difficult to get information regarding specific programs.

Although SNAG® KZN does not determine the above physical education and sports academy programs as

competitors, there are a number of key elements that can be learnt and implemented from the research done

on these organisations;

Ensure a visible and informative web presence is created.

Communication with children and parents is vital.

SNAG® KZN will create a pro-active online portal where members can access their profiles, scores

and important information.

A comprehensive, multi-sporting code and fundamental movement skills program will be

implemented.

Pricing is not an important issue versus value for money and commitment to promises made.

SNAG® KZN will not “reinvent the wheel” but will forge ahead into new, unique territory and

create a completely new industry, where all members will become active for life, with a good set of

fundamental movement and sports skills, combined with core values and life skills.

Pricing

The pricing policy of SNAG® KZN will be based on competitive pricing to a certain extent to compete as it

enters the market. The pricing, however, is only as good as the parents or members are willing to pay.

SNAG® KZN will become the market leader and will always have a pricing structure that is deemed to be

good value for money.



The current pricing structure is as follows;

Advertising and Promotion

SNAG® KZN will implement a very strategic and aggressive advertising and promotion plan. A variety of

advertising channels and promotional events will be used to create maximum exposure:

Social Networking & Social Media

Media

Flyers and Posters

Schools Marketing

Telephone Solicitation

Events

Word of Mouth

•R350 a month R150 Joining Fee

SNAG Membership

•R450 a month R150 Joining Fee

Ladies SNAG

•R5000 a month

Corporate SNAG

•R500 a hour

SNAG Events

•R300 per team

The Amazing SNAG Race



Appendix

Start-Up Expenses

Business & Licenses

Incorporation Expenses R 8000.00

Payroll R 382 000.00

Initial Marketing and Advertising R 30 000.00

Rent R 21 000.00

Event Activations R 30 000.00

Equipment/Machinery Required:

Inflatable SNAG® Driving Range

R 345 000.00

SNAG Futbol Equipment R 90 000.00

Insurance R 3600.00

Membership Cards, Shirts & Caps R 45 000.00

Management Uniforms R 12 000.00

Travel, Fuel & Oil R 12 000.00

Telephone & Stationery R 4000.00

TOTAL STARTUP EXPENSES R 982 600.00



Determining Start-Up Capital

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8

Starting cash R982 600 R276 700 R214 950 R186 825 R186 825 R 226 450 R300 200 R280 225

Cash In:

Cash Sales Paid R52 000 R105 000 R157 500 R210 000 R262 500 R315 000 R402 500 R490 000

Accounts

Receivable R0 R0 R0 R0 R0 R0 R0 R0

Total Cash In R1 034 600 R381 700 R372 450 R396 825 R449 325 R541 450 R702 700 R770 225

Cash Out:

Rent R 21000 R21 000 R21 000 R21 000 R21 000 R21 000 R21 000 R21 000

Payroll R105 500 R116 000 R126 500 R137 000 R147 500 R158 000 R263 000 R371 500

Other R579 400 R29 750 R38 125 R52 500 R54 375 R62 250 R138 475 R97 000

Total Cash Out R705 900 R166 750 R185 625 R210 000 R222 875 R241 250 R422 475 R489 500

Gross Profit R-653 900 R-61 750 R-28 125 R0 R39 625 R73 750 R-19 975 R500

CHANGE (CASH FLOW) R276 700 R214 950 R186 825 R186 825 R226 450 R300 200 R280 225 R280 725



Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month

6

Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Starting cash R0 R320 700 R258 950 R230 825 R230 825 R270 450 R344 200 R324 225 R324 725 R357 100 R552 850 R828 475

Cash In:

Cash Sales R52 000 R105 000 R157 500 R210 000 R262 500 R315 000 R402 500 R490 000 R577 500 R665 000 R752 500 R840 000

INVESTMENT/LOAN R982 600 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0

Total Cash Intake R1034600 R425 700 R416 450 R440 825 R493 325 R585 450 R746 700 R814 225 R902 225 R1022100 R1305350 R1668475

Cash Out (expenses):

Incorporation Fees 8000 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0

Payroll R95 000 R95 000 R95 000 R95 000 R95 000 R95 000 R95 000 R95 000 R95 000 R95 0000 R95 000 R95 000

Project Commissions R 10 500 R21 000 R 31 500 R42 000 R52 500 R63 000 R168 000 R276 500 R318 500 R318 500 R318 500 R318 500

Bakusasa Trust Contribution R5200 R10 500 R15 700 R21 000 R26 250 R 31 500 R40 250 R49 000 R57 750 R66 500 R75 250 R84 000

SA Kids Golf Contribution R2600 R5250 R7850 R11 000 R13 125 R15 750 R20 125 R24 500 R28 875 R33 250 R37 625 R42 000

Marketing & Advertising R30 000 R5000 R5000 R5000 R5000 R5000 R10 000 R10 000 R10 000 R10 000 R10 000 R10 000

SNAG Equipment Rental R21 000 R21 000 R21 000 R21 000 R21 000 R21 000 R21 000 R21 000 R21 000 R21 000 R21 000 R21 000

Event Activations R30 000 R5000 R5000 R5000 R5000 R5000 R5000 R5000 R5000 R5000 R5000 R5000

Inflatable SNAG Driving Range R345 000 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0

SNAG Futbol Equipment R90 000 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0

Insurance R 3600 R0 R0 R0 R0 R0 R3600 R0 R0 R0 R0 R0

Membership cards, shirts & caps R 45 000 R0 R0 R0 R0 R0 R45 000 R0 R0 R0 R0 R0

Management Uniforms R12 000 R0 R0 R6000 R0 R0 R6000 R0 R0 R6000 R0 R0

Travel, Fuels & Oils R12 000 R3000 R3000 R3000 R3000 R3000 R6000 R6000 R6000 R6000 R6000 R6000

Telephone & Stationery R4000 R1000 R1500 R1500 R2000 R2000 R2500 R2500 R3000 R3000 R3500 R3500

Total Cash Outgo R713 900 R166 750 R185 625 R210 000 R222 875 R241 250 R422 475 R489 500 R545 125 R469 250 R476 875 R490 000

ENDING BALANCE R320 700 R258 950 R230 825 R230 825 R270 450 R344 200 R324 225 R324 725 R357 100 R552 850 R828 475 R1178475



Income Projection Statement

Nov. Dec. Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Annual Total

Investor/Directors Loans 982 600 0 0 0 0 0 0 0 0 0 0 0 982 600

Est. Net Sales 52 000 105 000 157 500 210 000 262 500 315 000 402 500 490 000 577 500 665 000 752 500 840 000 4 829 500

Cost Of Sales 0 0 0 0 0 0 0 0 0 0 0 0 0

Gross Profit 1 034 600 105 000 157 500 210 000 262 500 315 000 402 500 490 000 577 500 665 000 752 500 840 000 5 812 100

Controllable Expenses:

Salaries/Wages & Commission 105 500 116 000 126 500 137 000 147 500 158 000 263 000 371 500 413 500 240 000 257 500 275 000 2 611 000

Bakusasa Trust Contribution 5200 10 500 15 700 21 000 26 250 31 500 40 250 49 000 57 750 66 500 72 250 84 000 482 950

SA KIDS Golf Contribution 2600 5250 7850 482 950 13 125 15 750 20 125 24 500 28 875 33 250 37 625 42 000 241 475

Advertising & Marketing 30 000 5000 5000 5000 5000 5000 10 000 10 000 10 000 10 000 10 000 10 000 115 000

Event Activations 30 000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 5000 85 000

SNAG® Inflatable Driving Range 345 000 0 0 0 0 0 0 0 0 0 0 0 345 000

SNAG® Futbol Equipment 90 000 0 0 0 0 0 0 0 0 0 0 0 90 000

Membership Cards, Shirts & Caps

45 000 0 0 0 0 0 45 000 0 0 0 0 0 90 000

Management Uniforms 12 000 0 0 6000 0 0 6000 0 0 6000 0 0 30 000

Travel, Fuel & Oils 12 000 3000 3000 3000 3000 3000 6000 6000 6000 6000 6000 6000 63 000

Telephone & Stationery 4000 1000 1500 1500 2000 2000 2500 2500 3000 3000 3500 3500 30 000

Total Controllable Exp. 681 300 145 750 164 625 189 000 201 875 220 250 397 875 468 500 524 125 369 750 394 875 425 500 4 183 425

Fixed Expenses:

SNAG® Rentals 21 000 21 000 21 000 21 000 21 000 21 000 21 000 21 000 21 000 21 000 21 000 21 000 252 000

Insurance 3600 0 0 0 0 0 3600 0 0 0 0 0 7200

Loan Payments 0 0 0 0 0 0 0 0 0 0 0 0 0

Misc. 0 0 0 0 0 0 0 0 0 0 0 0 0

Total Fixed Expenses 24 600 21 000 21 000 21 000 21 000 21 000 24 600 21 000 21 000 21 000 21 000 21 000 259 200

Total Expenses 705 900 166 750 185 625 210 000 222 875 241 250 422 475 489 500 545 125 390 750 415 875 446 500 444 625

Net Profit/Loss Before Taxes 328 700 -61 750 -28 125 0 39 625 73 750 -19 975 500 32 375 274 250 336 625 393 500 1 369 475

Taxes 7658.71 -1438.78 -55.31 0 923.26 1718.38 -465.42 11.65 754.34 6390.03 7843.36 9168.55 31 908.77

NET PROFIT/LOSS AFTER TAXES

321 041 -60 311.20 27 469.70 0 38 701.70 72 031.60 -19 509.60 488.35 31 620.70 267 860.00 328 782.00 384 331.00 1 337 566.23



Sales Forecast

Description Month

1 Month

2 Month

3 Month

4 Month

5 Month

6 Year 1 Year 2 Year 3

SNAG® Durban 17 500 35 000 52 500 70 000 87 500 105 000 2 520 000 4 200 000 4 200 000

SNAG® Midlands 17 500 35 000 52 500 70 000 87 500 105 000 2 520 000 4 200 000 4 200 000

SNAG® Upper Highway

17 500 35 000 52 500 70 000 87 500 105 000 2 520 000 4 200 000 4 200 000

SNAG® Dolphin Coast

0 0 0 0 0 0 1 260 000 2 520 000 4 200 000

SNAG® South Coast

0 0 0 0 0 0 1 260 000 2 520 000 4 200 000

SNAG® Ladies 900 22500 3600 4950 5850 6750 162 000 324 000 648 000

SNAG® Events 2000 2000 2000 2000 2000 2000 144 000 288 000 432 000

The Amazing SNAG® Race

0 7500 9000 10 500 12 000 13 500 1 800 000 3 600 000 7 200 000

Corporate SNAG® 5000 7500 7500 7500 7500 7500 900 000 1 800 000 3 600 000

Milestones

SNAG® KZN has specific targets and achievable milestones:

MILESTONE 2

Launch all 5 project Areas by the end of month 6 and

sign up 2400 members by the end of Year 1

MILESTONE 1

Launch 3 project Areas in the first 3 months of

operation and sign up 150 members in each

MILESTONE 3

Revenue stream of R13 million by the end of year 1

with all service areas launched

MILESTONE 4

Revenue of R 23 million and 4200 members signed

up by the end of Year 2



Miscellaneous Documents

SNAG® KZN Flyer







SNAG® KZN Picture Gallery



SNAG® KZN CONTACT DETAILS

SNAG® KwaZulu-Natal

Mr Lee Bromley Mr Craig Fairey Mr Don Gammon

Mobile: 072-249-2733 Mobile: 071-989-4183 Mobile: 083 228 0426

Bakusasa Trust Bakusasa Trust Logical Golf Lab

Email: [email protected] Email: [email protected] Email:[email protected]

mailto:[email protected]

