Bowling is an entertainment industry in Anytown with a customer base that has diminished over the past few decades. Today's senior citizens were once yesterday's avid bowlers. As the Baby-Boomers questioned the actions of their elders, they also turned away from bowling. Eventually, without innovation, bowling lost popularity as America's favorite athletic events.
However, Anytown needs no replacement for the athletic and social event bowling once offered, it simply needs innovation! Sally Strike, the owner and manager of Bowl Weevil, understands the trend of revitalization in the bowling cultures from her youthful participation in bowling and through her work in the Professional Bowling Association. Sally has experience as a bowler in the local community and as a marketing and business analyst for the Professional Bowling Association. Sally will also be able to access her contacts within the Professional Bowling and Skating Associations to stimulate touring tournaments and competitions.
Sally has done the research necessary to plan and implement designs for a new bowling alley in the historic Miller building, downtown. Bowl Weevil will take advantage of the building's nostalgic feel to create a truly unique atmosphere, attracting after-school kids looking for entertainment and a snack, families with young children seeking inexpensive entertainment, seniors looking for fun activities, and local bowlers seeking league competition in their own neighborhoods. We will offer family and group rates and theme nights with live music.
Sally is committing £60,000 of her own money to the project, and is requesting a seven-year loan of £163,900 to complete start-up funding for this new venture. The loan will be secured with the owner's home equity. Based on our market research here in Anytown, we conservatively project sales over £500,000 in year one, with a strong net profit in year three, with a staff of nine.
The mission of Bowl Weevil is to provide the highest form of entertainment in the Anytown community. We offer the best bowling and overall entertainment for the entire family!
Sales of £523,000 in year one and £608,000 by year three.
Gross margin higher than 65%.
Net income more than 2.7% of sales by the third year.