York Urbanist

THE BUSINESS PLAN – PART 2

This is the fourth segment in a series of creating a hypothetical and entrepreneurial approach to rebuilding the sport of curling in the fictional community of Aasvogel, Ontario. It follows from: http://yorkurbanist.com/recreation/curling/curling-a-recreation-to-a-business/the-business-plan-part-1/

The second Business Plan meeting was fuelled by the enthusiasm of the group of 10 at their first get-together.  The accountant started raising questions. The more questions were asked, the more questions arose.  “The devil is in the details.”  So let us start with a Strategy that forms around Iain Archibald’s suggested Vision.  Details should start to emerge in the Business Plan

Why a Strategic Plan?

To systematize an approach to developing a direction. What type of governance shall there be?

To Define the Vision, around which all decisions should be made.

To set the goals and objectives for the curling facility performance, and a basis for evaluating that performance.

To instill flexibility to respond quickly to a changing, complex environment both in the village and in the sport of curling.

To ensure that the investors will control development and its environment, rather than have it controlled.

To establish operating procedures, to ensure results and make decisions.

To develop human resource and/or volunteer capacity for the future.

To assist in obtaining credit as needed.

 

Back to the Vision that Iain proposed:

The new Aasvogel Curling Facility is a family oriented community centre that welcomes recreation curlers, who want to experience a sport for fun and a place to gather with like-minded curling enthusiasts!”

This is the critical Discussion Stage:

  • The Vision opens the facility to anyone, not just the already defined “curler”. No select demographic age, sex, culture or orientation is excluded. 
  • The terms “family” and “curlers” and “sport”, however, could be restrictive, when it comes to marketing. 
  • Curling is a seasonal sport. What happens in the summer? How is revenue derived off-season?
  • Since those in the Group of 10 had their minds set on a quality curling rink, how can the more seasoned curler-athlete feel a part of a recreation oriented facility?
  • Some of the group was interested in this also as an investment.

Accordingly, a new Vision Statement was composed:

The Aasvogel Curling Centre will be a sustainable, privately operated, visible, year-round sport and recreation centre, which will focus on education and excellence in curling, while reaching out to complementary recreation activities in our diverse community.

With the Vision Statement refined, the group proceeded to their Goals and Objectives:

Goals:

Find enough property that can be shared with another organization with which we can integrate our new curling function.

Privately operate recreation programs within a quality facility on a not-for-profit (NFP) basis.   

Expand the definition of the sport of curling by integrating social and fitness facilities.

Objectives:

  1. Board of directors portfolios: executive (president); communications (secretary); finance (Treasurer); operations; maintenance; programs; creativity/innovation.
  2. Membership:  individual and open use of the facilities should be integrated. Explore innovative ways to provide the curling experience.
  3. Location: Review the opportunities to associate with existing municipal or private recreation facilities and lands.
  4. Size of facility: 2.5ha (6.1 acres) of land will accommodate parking and building for a 4 sheet curling facility.  Let us not limit our ability to expand, when success befalls us. Make the lounge large enough for rentals.  Consider a fitness component.
  5. Operations: Although volunteers will assist with the program services to users, a full-time paid coordinator will ensure that there will be no financial losses by the operation of the facility.
  6. Maintenance: contracts with private firms, including ice-making; cleaning; and repairs.
  7. Financial Sustainability:  Regular review of membership and charge rates will ensure that this organization will have the funds to maintain, operate, repair and replace as the facility ages.
  8. Review: After each step in the business plan, review the goals and objectives.

Iain and the accountant did some quick numbers to show the group.  “What you see before you is a scenario that requires an investment of $500,000 and we will not see breakeven until 2018. Are we comfortable with the assumptions and results? If not, then take this away and we will reconvene.” Most in the room were bewildered by all the numbers and agreed that they would need time to digest. 

 

 
2014
2015
2016
2017
2018
2019
2020
2021
2022
Adult membership
250
275
300
325
350
375
400
400
400
Seniors membership
25
30
35
40
50
50
50
50
50
Student membership
40
40
40
40
40
40
40
40
40
Junior membership
50
50
50
50
50
50
50
50
50
Total membership
Revenues
Non-Members Ice Rentals
365
 
$18,200
395
 
$22,400
425
 
$25,200
455
 
$25,704
490
 
$26,218
515
 
$26,742
540
 
$27,277
540
 
$27,823
540
 
$28,379
Memberships - Adults
175,000
192,500
214,200
232,050
236,691
241,425
246,253
251,178
256,202
Memberships - Seniors
10,000
12,000
14,280
16,320
20,400
20,000
20,400
20,808
21,224
Memberships - Students
10,000
10,000
10,200
10,200
10,200
10,404
10,612
10,824
11,041
Memberships - Juniors
5,000
5,000
5,100
5,100
5,100
5,202
5,306
5,412
5,520
Bar Revenues
118,125
129,375
140,625
151,875
165,000
174,375
183,750
183,750
183,750
Concession revenues
50,000
52,500
55,125
$56,228
$57,352
$58,499
$59,669
$60,862
$62,080
Total Revenues
$386,325
$423,775
$464,730
$497,477
$520,961
$536,647
$553,268
$560,658
$568,196
Expenses
Labour
 
$100,000
 
$102,000
 
$104,040
 
$106,121
 
$108,243
 
$110,408
 
$112,616
 
$114,869
 
$117,166
Utilities
40,000
$40,800
$41,616
$42,448
$43,297
$44,163
$45,046
$45,947
$46,866
Administration
3,000
$3,060
$3,121
$3,184
$3,247
$3,312
$3,378
$3,446
$3,515
Repairs and Maintenance
Concessions
Labour
15,000
 
14,000
$15,300
 
$14,280
$15,606
 
$14,566
$15,918
 
$14,857
$16,236
 
$15,154
$16,561
 
$15,457
$16,892
 
$15,766
$17,230
 
$16,082
$17,575
 
$16,403
Food
42,500
$43,350
$44,217
$45,101
$46,003
$46,923
$47,862
$48,819
$49,796
Other
6,000
$6,120
$6,242
$6,367
$6,495
$6,624
$6,757
$6,892
$7,030
Carrying Costs
130,000
123,500
117,000
110,500
104,000
97,500
91,000
84,500
78,000
Principal Payment
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
Insurance
9,000
$9,180
$9,364
$9,551
$9,742
$9,937
$10,135
$10,338
$10,545
Equipment
8,000
$8,160
$8,323
$8,490
$8,659
$8,833
$9,009
$9,189
$9,373
Building
40,000
$40,800
$41,616
$42,448
$43,297
$44,163
$45,046
$45,947
$46,866
Total Expenses
$507,500
$506,550
$505,711
$504,985
$504,375
$503,882
$503,510
$503,260
$503,135
Net Income (Loss)
($121,175)
($82,775)
($40,981)
($7,509)
$16,586
$32,765
$49,758
$57,398
$65,061
Notes:
 
 
 
 
 
       

Next Part of the story will take us to the components of the business plan. See http://yorkurbanist.com/recreation/curling/curling-a-recreation-to-a-business/marketing/