12/14/2018
SPLAT-LAG’S
A Family Entertainment Center
Business Plan
January 15th 2019
TABLE OF CONTENTS
Summary……………………………………………………………………………....1
Business Description………………………………………………………………......2
Competition…………………………………………………………………………....3
Marketing Plan………………………………………………………………………...4
Financial Information……………………………………………………………….....5
Financing……………………………………………………………………………....6
Appendix A: Pro Forma Income
Statement……………………………………………………….......……………….....7
Appendix B: Use of Funds
Statement……………………………………………………………………………....8
Appendix C: Net Worth/Collateral
Statement……………………………………………………………………….……...9
Appendix D: Appraisal Opinion – ###X
Residence………………………………………………………….……………….…..
Appendix E: Construction
Schedule………………………………………………..…………………………........
Appendix F: Contact
Information………………………………………..…………………………………....
Summary
Family Entertainment is a highly profitable industry that has been growing rapidly over the past several years. This is due largely to a trend within the country of a return to family values. Families are spending more time together and are looking for alternative recreational activities to participate in together. In light of recent events and perceived dangers of travel, families are looking more and more in their own areas for these recreational activities. Splat-Lag’s proving grounds is being created to fill this niche in the Delaware, Pennsylvania, and New Jersey area.
The activities available at Splat-Lag’s proving grounds will center on a world class, cosmic miniature golf course, a electric go-kart track, batting cages, trampoline dodgeball, life size foosball, giant billiards, and rock climbing wall. The Family Entertainment Center (FEC) is being designed and built by the leading firm in the Regional area,GAP Construction Company, LLC. will be responsible for all aspects of construction management and will coordinate the efforts of all subcontractors. The facility will be ready by June 15th 2029.
Putt-Putt miniature golf is a full-family activity. It’s great for parents with small children, is one of the few activities that teens find acceptable to do with their parents as well as peers and dates, and is a great outdoor activity for seniors. Once the course is built, all that is required is routine maintenance to keep it clean and fresh looking. There is virtually no loss of material goods with this business, except for the scorecards.
Super-Karts are a fast thrill that promote people to want to ride over and over again. A family can enjoy the go-karts with carts which enable smaller kids to ride the karts without their parents. A well designed and built track is the groundwork for a successful track. The only foreseen lost would be impact resistant helmets and neck braces for safety purposes.
On Deck Batting Cages bring in the baseball and softball teams as well as the curious individuals who wonder if he or she can still hit the fastball. Batages are great for early in the spring when baseball is just starting and will enable us to open the season early.
A mix of additional attractions such as batting cages, Battle Simulator laser tag, rock wall climbing, trampoline dodgeball, life size foosball, giant billiards, Cosmic Mini Bowling, Jungle Gym Maze, Lego Build-it Foam Play Area, Epic Water Arena, Trampoline Dodgeball are being considered to fill out the offerings at Splat-Lag’s proving grounds. Any or all of these may be developed as the business matures.
In addition, an assortment of snacks will be available at the restaurant/bar. Soft drinks, beer, and wine light snacks such as hot dogs, chips and cookies will provide easy additional revenue. We are not currently proposing a full-service food operation.
The marketing of the business will be done via print media, onsite promotions, a website and a variety of promotional programs aimed at pulling in repeat and special event business. The FEC itself is designed for that goal. Premier has many years of experience in designing and building miniature golf courses, batting cages, and go-kart tracks will be a valuable asset to getting our business started.
Business Description
Services
Splat-Lag’s© ™ is a Family Entertainment Center (FEC) located in New Castle, Delaware. The business will center primarily on a world-class miniature golf course, an exciting electric go-kart track, batting cages and laser tag but will be expanded in subsequent years to include many other FEC type activities.
Splat-Lag’s will have a mascot named Looney the Hyena. This mascot will show up throughout the facility. For example, the mascot will appear on the sign, on logo sportswear sold in the clubhouse, on scorecards, in advertising, on concession stand napkins, on batting cages, and on go-kart bodies to name a few locations. In addition, a Looney the Hyena costume is being designed that will be used during birthday parties, corporate events, and special promotions.
The FEC is being designed and built by the most respected FEC construction company in the United States,GAP Construction Company, LLC. They have built centers around the country and the partners have a combined 17 years in the industry and have demonstrated their knowledge of what is required to make a successful facility. The course will be challenging, but not overly so. This will bring customers back to attempt to better their previous score. The batting cages, go-kart track, foot pool, laser tag, and rock will help round out the facility as the destination for family entertainment.
In addition to the miniature golf, during the first year of operation, Hunger Gains will offer a small, but highly profitable, food service. A patio area is being designed that overlooks the course. Customers will walk off the 19th hole and onto the patio where hot dogs, chips, pretzels, and soft drinks will await them. The patio will be covered and offer ample seating, enticing customers to sit for a few minutes, enjoy a snack and relive the round through conversation. Besides lending to the feel of a full outing experience, the food service will be a highly profitable portion of the business. Please see the financial section for further details.
Management
The facility will be run as a Full time business. It will be owned and operated by Michael A. Williams who will take the primary responsibility of working with contractors to design and develop the facility, ad then the subsequent day-to-day operational responsibilities.
AS2 (AW/SW/IW) Michael A. Williams is a United States Navy sailor born in Chester, Pennsylvania but currently stationed on USS WASP in Sasebo, Nagasaki Japan. Before that he was stationed at NAS Jacksonville base at FRCSE Jacksonville Florida. He is still active duty for the last nine years enlisted in the U.S. Navy. His first duty station was NAF Atsugi, Japan while deployed with VAW-115 squadron Liberty Bells. Though seeing the culture in japan and visiting different countries in the Eastern Pacific he learned just how far the American people are behind other countries.
Location
Splat-Lag’s will be built at 330 Centerpoint Blvd New Castle, DE 19720 is a key factor. Located on Route 273 adjacent to heavily trafficked route 13, just 10 minutes off of Interstate 95 and Interstate 495, the site is heavily traveled and has several other businesses within a few miles that will provide great synergies. In addition, the population base of the surrounding communities is ideal for such an operation. Almost 53,206 people live within a 15-minute drive from the site, and almost 47,858 of them are within 10 minutes. The population is largely middle class families and growing.
Personnel
The operation will run for 12 hours per day, 6 days a week, from mid May to mid October. (This time frame should be appropriate to your climate and region.) In addition, teenage and/or senior aged people will be employed to help during peak demand times. These will generally be evenings and weekends. These employees will act as course “Scally-Lags”; assisting customers, helping at the concession stand, and maintaining a clean look to the business.
The business may seek the services of various professionals as the need arises.
Future Growth
Splat-Lag’s is being thought of from the outset as an FEC, and not simply a miniature golf course. Many other products and services are being considered as part of the facility’s growth plans. Among these are:
Video Arcade
Rock wall climbing
Foosball
Bank-shot basketball
Logo sportswear and golf accessories Inflatables
Water Wars Driving range
Design & Construction
###X has been contracted to provide design and construction management expertise. In this capacity, they will be responsible for the overall site plan, including parking design, clubhouse architecture, landscaping, septic and drainage issues, and presentation of the site plan for the Town of ###X will bring together the experts they need in order to develop a well-integrated plan that allows for future growth potential.
###X is working closely with Premier Amusement Developers, LLC on placement and requirements of the miniature golf course, go-kart track, batting cage and bumper boat pond in the overall site plan.
Once Planning Board Approval is received, ### will begin the construction phase of the project. They will be responsible for the coordination of all subcontractors on the project and ensuring that the project remains on schedule and on budget.
Regular reviews of the project during the design and construction phases will be held between ###, Premier and the ###X. A project schedule is included in Appendix E, and contact information for the major parties is detailed in Appendix F. ###XX will be open for business on or before ###XX.
Competition
The proposed location of Splat-Lag’s is ideal in terms of competition. There are three FEC’s in the area. They are:
Vince’s sports center
Main Event
Grand Prix
In addition to these two FECs, there are a few other area attractions that could be considered competition for Splat-Lag’s :
(Describe all indirect competition here)
Cross marketing with any or all of these businesses is not only very likely, but extremely desirable. The area’s development as a family destination for an enjoyable day outing will only benefit from the addition of a top-notch family center like Splat-Lag’s.
Marketing Plan
Theme
When you come to Splat-Lag's you will be able to enjoy a variety of activities that will inspire the genuine essence of fun. We are striving to push the limits of innovation and intuition. We will also encourage school age children to keep up good grades through challenging them academically. This program ensures they will be able to have 2 hours of fun time for free upon receiving a B+ and better for the whole family. Looney the Hyena is a character that will be part of much of the marketing of the facility. He will appear on the sign, print advertisements, website, shirts, and company literature. He will not have a major appearance on the miniature golf course itself but will be throughout the facility. While on the course, we want our customers to feel like they are in a natural setting. He will be on at least one go-kart body and on the back perimeter netting in the batting cage.
Lighting and sound will be very important to the overall feel of the site. Adequate lighting must be provided of course, but not overly so. Many small, targeted landscape lights will be used to highlight key areas, such as the waterfalls. As for sound, we will have speakers hidden throughout the park. The volume level will be such that it will offer a pleasant background, but will not in any way interfere with conversation or the sound of the water rushing over the waterfalls.
Demographics
The population that 73,110 will draw from is ideal, both in terms of numbers and type. The 2017 US Census of the cities and towns in the site’s immediate market are as follows: (chart had 9 entries)
Municipality Population
New Castle 5,348
Newark 33,858
Wilmington 14,000
Bear 19,904
Total: 73,110
This population spans the full spectrum of ages and economic strata, but is comprised primarily of middle class families, which is the ideal demographic for Splat-Lag’s. Most FECs draw from as few as 40,000 – 60,000 people with great business success.
Advertising and Promotions
Marketing for Splat-Lag’s can be thought of broadly in two segments:
1. Awareness of the facility
2. Special Events and Promotions
Awareness of the Facility
Evenings and weekends, when the utilization of the facility will be at its highest (often at 100% utilization) is the purpose of this marketing effort. This is the time that will be largely filled by people coming in with families to enjoy an hour of quality family time, and to get outdoors. In order to drive up utilization during these hours, the direct population around the center must be aware of its existence.
This will primarily be accomplished through newspaper advertisements in local papers. In addition, radio and highly targeted cable television advertising may be considered. This will be most important during the first season. Once people know of the existence of the center, this advertising will turn into a reminder that the center is available and what activities are offered.
In addition to the targeted advertising, other campaigns will include “dollar off” coupons that will be made readily available through a number of outlets: cross marketing with area businesses and attractions, newspaper coupons, senior centers, daycare centers, “print-and-cut” website coupons, etc.
A “Grand Opening” event is part of the package that Grand Slam provides. This event is specifically designed to raise awareness of the facility immediately.
Free games on the miniature golf course will be promoted aggressively. The key here is to give a free game to one person that will bring two or three other paying players with them. This will be accomplished via:
Prizes: A number of different organizations give out small prizes for all types of activities.
For example, schools often have reading programs that children earn points by reading books. These points can be exchanged for prizes. One such prize can be a free game of miniature golf.
Parties: Anyone who attends a party at Splat-Lag’s (primarily birthday parties and corporate outings – see below) will go away with a coupon for a free game. This especially works well with birthday parties. Children return home with the coupon and get the parents and siblings to come back and play at a later time.
Hall Pass Gift Card: Splat-Lag's will offer for sale on site and over the web, gift certificates for the entire facility. There will be a big push for these gift certificates during the “Christmas in July” promotion (see below), and during the month of December several newspaper advertisements will be run.
Once again, this marketing program is intended to maximize the course utilization during the hours that will normally be very busy: weekday evenings and weekends. Most of the dollars for this type of marketing will be spend during the early part of the season and taper down over the length of the season.
Special Events and Promotions
The truly successful FECs know that the key is to maximize the utilization of the facility during the normally slower periods. This is essential Monday through Friday from 10am until 4pm (tourist markets will have different peak and slow periods). The amount of utilization during these 30 hours per week can be the difference between a nicely profitable business and a tremendously profitable business. The industry experiences about a 35% utilization over a full season and many operators do not promote these slower period hours as much as they should.
Splat-Lag’s marketing will look extensively at increasing the course utilization during these key hours. While awareness and reminders that the facility exists is important, it becomes less so as time goes on. This type of marketing, on the other hand, will always be very important.
We are planning a number of segments to this marketing. We will carefully observe the effectiveness of each program and change or replace as necessary. Some of the initial concepts are:
Birthday Parties: Busy parents have little time to organize parties for their children, but there is a great deal of peer-pressure to have fun, exciting parties. Splat-Lag’s will offer an all-inclusive party package that will relieve the parents of this burden while making a special day for their child and friends. The package will include a game of golf, batting cage token, cake, hotdog and beverage, and a small gift bag with trinkets and a free game coupon. In addition, an appearance by Looney the Hyena himself (Looney the Hyena costume is being designed and developed) will help entertain the children. A Party Coordinator will ensure that all the children have fun and the event proceeds smoothly.
Corporate outings: Many companies have summer outings for their employees to show their appreciation. While large companies tend to do large events, like renting out an amusement park for a day, small and mid-sized companies have fewer options. Splat-Lag’s will do a direct mail campaign to area businesses and offer the facility for such occasions. These will be worked out on a case-by-case basis, but will essentially allow a company to have full use of the facility for a Thursday afternoon outing. They would have exclusive use of it from noon until 4pm. The party may be catered. We would work out a flat-fee arrangement with the company for such an event.
Organizational Fund Raisers: Splat-Lag’s will offer area organizations the opportunity of running miniature golf tournaments during the non-peak hours. The proceeds for such an event will be split with the organization for its fundraising needs.
Cross-marketing with area businesses: There are several businesses in the immediate area that offer additional family oriented products and services. It is believed that Splat-Lag’s will not steal sales from these businesses, but in fact will enhance them. The area will become a family destination, where people can spend a full day enjoying the spirit of family game night. We will look to work with these other businesses and provide cross-marketing opportunities; free games, dollar-off coupons and the like.
Leagues: many people enjoy playing miniature golf, and many people participate in competitive leagues, but few people have considered the fun and excitement of miniature
golf leagues. ###XX intend to utilize this unique marketing concept by offering and aggressively promoting just such leagues. They will be geared primarily towards children and seniors, since the leagues will run during the weekdays. Several leagues may be formed by age group, depending on popularity. There will also be leagues for the batting cages and races for the go-karts.
Special Events: From time to time, a special event may be held. One such event already planned is “Christmas in July.” For a 10-day period in July, ###XX will be all decked out in Christmas decorations and lights. This will make enough of a difference that people will be interested in playing again if they had already played earlier in the season. Repeat business is important, and events such as this will help ensure that.
It is believed that these types of promotions will help increase the utilization of the facility during the normally slower periods. If even marginally successful, Splat-Lag’s should enjoy a very high average season utilization.
Pricing (pricing will vary in different area, these are guidelines only)
Cosmic Putt-Putt Golf $7.00
Super-Karts $15.00
On Deck
Batting Cages
$2.50
Battle Simulator Laser Tag
$9.00
Tiny Bowling
Rock Climbing Canyon
Trampoline Dodgeball
$3.00
$2.50
$4.25
Food Service
The menu at Hunger Gains will be very simple, but very profitable. We will offer cold beverages (soda, bottled water), pizza, hotdogs, chips and a hotdog meal combination (beverage, hotdog, chips).
Beverages $ 1.00
Pizza Slice $ 2.00
Hotdog $ 2.00
Chips $ .50
Hotdog Meal $ 3.00
As additional activities are developed onsite, they will be priced according to similar activities in the marketplace.
Financial Information
FECs are a very profitable business, especially those centered on a miniature golf operation. The reason for this is that the operational expenses for a miniature golf center are extremely low. The only real consumed item is the scorecard, which costs pennies per group. Labor is fairly inexpensive as well, since very few employees are needed to run the operation, and those employees (other than the management) are teenagers or retired seniors.
Profitability
Below is a table of projected revenue, expenses, and EBITDA (earnings before interest, taxes, depreciation, and amortization) for the first 3 years of operation. This information is further detailed in Appendix A.
###X ###X ###X
Revenue ###X ###X ###X
Expenses ###X ###X ###X
EBITDA ###X ###X ###X
Return on Investment (ROI)
Detailed in the next section and in Appendix B, the total investment required to get ###XX going will be ###XX. In subsequent years, we will be adding additional activities to keep the experience at ###XX fresh. Therefore, the total ROI during the first three years of operation will be as follows:
###X ###X ###X
EBITDA ###X ###X ###X
Investment ###X ###X ###X
ROI ###X ###X ###X
Financing
The total investment required to start $75,000 is $250,000. This includes site purchase, site design and construction, miniature golf course design and build, equipment purchase, and working capital. A more detailed list of expenses is included in Appendix B.
The financing for the initial startup costs will come from ###X (20%) and from commercial bank financing (SBA loan 80%). A new worth and collateral statement that will be offered by the ###X to secure the bank financing is listed in Appendix C.
As noted previously in the Financial Information section, the projected ROI of more than 20% during each of the first three years clearly warrants this level of overall investment. Additional activities in subsequent years will be financed from operations.
(All Appendix will be a separate page) Appendix A: Pro Forma Income Statement Appendix B: Use of Funds Statement Appendix C: Net Worth/Collateral Statement Appendix D: Appraisal Opinion – 330 Centerpoint Blvd, New Castle, De 19720 Residence
Attached is a copy of an appraisal opinion generated by ###X on the ###X residence. As noted in Appendix C, this is a large part of the business loan collateral. The opinion is based on comparative sales data for the town of ###X and similar types of houses that were recently sold.
Appendix E: Construction Schedule
Task Start Completed
FEC Design
Preliminary Site Design
(includes: existing conditions
survey, clubhouse design,
parking layout, course
placement, septic and drainage,
lighting design, landscaping
design.)
Town of ### Planning Board Review
Detailed Site Design
(Includes: architectural details
on clubhouse, trellis detail,
planting selection)
Closing on Real Estate
Rough grading and site clearing
Golf Course, batting cage, go-kart track
& bumper boat Construction
Site Construction
Purchase Food Service Equipment
Opening Day
