The cost of the project, taking into account working capital, will be 15,443,000 rubles. More than 70% of this amount is planned to be allocated for the purchase and installation of equipment.
The goal of the project is to open a bowling center in a city with a population of up to 700,000 people. The essence of the project is to create a bowling play area with 8 lanes and a recreation area with a mini-cafe on an area of 720 square meters. meters. The main audience of the bowling center includes people aged 8 to 45 years. The financial calculations of this business plan are given for a five-year period of work, taking into account seasonality indicators, as well as the planned occupancy of the center in the first year of operation – up to 30%, in the third year – up to 50%, in the fourth and subsequent – up to 70-80%.
The main services of the bowling center are:
1. Hourly rental of a bowling lane;
2.Services of a mini-cafe.
The cost of the project, taking into account working capital, will be 15,443,000 rubles. More than 70% of this amount is planned to be allocated for the purchase and installation of equipment. Due to the high cost of a new set of equipment and the growth of the dollar, preference was given to the use of refurbished equipment of good quality of the American brand.
*at the end of 2 years of operation
The project launch period will be 4 months. According to the results of the first year of operation, it is planned to achieve attendance rates of 30%.
2. Description of the industry and company
To date, bowling has ceased to be entertainment for people with high incomes and has been reformatted into mass entertainment. According to analysts at Investcafe, the bowling market in Russia is growing steadily: until 2014, the number of lanes increased by an average of 4% per year. This means that the market has not reached saturation yet. The first places in terms of the number of bowling centers are occupied by metropolitan cities – Moscow and St. Petersburg, as well as millionaire cities. The bowling alley market is highly diversified, with no single player having a significant market share. Network players are mainly shopping and entertainment centers and family format clubs. The main audience of bowling centers is young people aged 18 to 30, families, schoolchildren with predominantly middle and low incomes. Bowling centers are visited not only for the sake of the game itself, but also for fun and relaxation with loved ones. Often bowling clubs have snack bars and billiard rooms, slot machines and special rooms for children’s parties. There are also bowling establishments in conjunction with a nightclub.
The goal of the project is to open a family format bowling club in a city with a population of up to 700,000 inhabitants. The essence of the project is to create a bowling play area, as well as a technical area and an engine room, a recreation area and a reception with a mini-cafe. The center is located in a 720 sq. meters, located next to shopping malls and a restaurant. The building is located on one of the busiest streets of the city close to shopping and office centers, public transport stops.
The enterprise management structure includes a director who is also the founder of the company and manages the center. He is in charge of strategic business planning and marketing policy. Directly subordinate to the director is the manager, who is responsible for the work of administrators, sales and support staff.
The form of ownership of the enterprise is LLC. The taxation system is simplified (6% of income received).
3.Description of services
The main service of the bowling center is the provision of hourly rental of bowling lanes along with a set of balls and a table. The cost of services depends on the day of the week and time of visit. Discounted prices are provided to students and schoolchildren. A detailed price list for services is given in Table. 1. Activities for the provision of these services will require the appropriate permits from Rospotrebnadzor and the conclusion of the fire supervision.
Table 1. List of services
In addition to the services provided, the bowling center has a mini-cafe in the snack bar format. The average check for 1 table is 1400 rubles.
4.Sales and marketing
The main trend in the bowling market can be described as a move towards bowling as a mass entertainment. Today, bowling is perceived by the audience as an integral part of the entertainment industry. Visitors to bowling centers demand from the institution not only the perfect operation of the equipment, but also a unique atmosphere. The bowling center should evoke a feeling of comfort among visitors, which is expressed both in the overall design and in individual details, including the convenience of chairs, sensory equipment for tracking the game built into the tables, LCD monitors, and the presence of children’s bumpers. Also a plus is the presence of a mini-cafe, which allows, if desired, to combine your favorite game with food.
Today, the city has 3 bowling clubs and 3 small format playgrounds as part of hotel complexes (2-4 lanes). Direct competitors are represented by: 1 large federal chain company (branch), which has a center with 14 lanes and a mini-cafe, 1 company, which is a bowling center as part of a shopping and entertainment center (10 lanes), as well as another stand-alone bowling club for 8 tracks. The main advantage of the first competitor is the low price level (from 300 to 1000 rubles), modern equipment, a well-thought-out marketing policy and a loyalty system. As weaknesses, one can single out frequent complaints about the service, slow service in a cafe at the center. The other two competitors are characterized by a higher price level (700-1800), a fairly good level of service, however, at the same time, visitors to the center often have complaints about the operation of the equipment (the percentage of failure of pinspotters is high). Another common negative feedback from customers is the quality of consumables (worn shoes, punctured balls, etc.). The work schedule of 2 out of 3 competitors is from 12:00 to 06:00, a competitor working in a shopping and entertainment center, from 10:00 to 00:00.
The above industry trends and competitor analysis were a push factor for the concept of the bowling alley. The price segment for services is medium (400 to 1500 rubles), with quality – above average. The specialists of the industry are training the employees to operate the bowling center, a series of sales and service trainings have been held. The selected work schedule is from 12:00 to 06:00. Registration takes place by prior booking through the official website or by phone call, as well as directly in the center. At the bowling center there is a mini-cafe in the snack bar format. To attract customers, the methods of outdoor advertising (signboard), Internet advertising (targeting advertising in social networks), SEO-promotion of the site in search engines, leaflets are used. As a competitive advantage, it is supposed to establish low prices for schoolchildren and students. It is also planned to use loyalty promotions, for example, discount conditions for birthdays, corporate customers. In addition, the bowling center itself is planned to be used as a platform for advertising partners. In particular, the broadcast of advertisements in the slideshow / ticker / video mode can be carried out on the LCD monitors of the bowling club. In the future, it is possible to use the advertising capabilities of the site, joint promotions with partners, and so on. broadcasting of advertising in slideshow/creeping line/video mode can be carried out on LCD-monitors of the bowling club. In the future, it is possible to use the advertising capabilities of the site, joint promotions with partners, and so on. broadcasting of advertising in slideshow/creeping line/video mode can be carried out on LCD-monitors of the bowling club. In the future, it is possible to use the advertising capabilities of the site, joint promotions with partners, and so on.
The bowling center is located in a city with a population of up to 700 thousand people on one of the central streets, on the first line of houses. Close to the building adjoins a restaurant, as well as commercial premises. Banks, office centers are located within 400 meters. A public transport stop is 200 meters away.
The floor area is 720 meters. The premises for the bowling center are taken on a long-term lease (7 years) with the possibility of prolonging the contract. Investments in the repair and preparation of premises for a bowling center will amount to 3,291,000 rubles. Purchase and installation of equipment, taking into account the equipment of the gaming area, recreation area, engine room, reception area and snack bar, will amount to 10,958,000 rubles. In connection with the rise in prices of bowling equipment associated with the growth of the exchange rate, preference was given to refurbished equipment (about 60% of all equipment) of good quality of the American brand, which is considered one of the leaders among manufacturers in the industry. The set of bowling equipment includes: pinspotters, bowling lanes, bowling center control system, LCD monitors, lower terminals of the counting system, tables with trapezoidal seats, ball returners, children’s bumpers, side chairs, stepping system, lane dividers, running lights system, lane care machine, as well as consumables: balls, shoes and skittles. The indicated amount also includes the equipment of the reception area and the snack bar.
A specialized organization was chosen to carry out the installation and installation of equipment, and most of the bowling equipment was purchased from it. The main criteria were the previous experience of the organization, the quantity and quality of completed projects, and an acceptable level of prices for services.
The management of the bowling center is carried out by the director and manager. The bowling center is serviced by administrators working in shifts and mini-bar staff. Training of employees is carried out by a specialized company engaged in the sale and installation of bowling equipment. The cost of training is included in the installation fee. The staffing and wage fund are given in Table. 2.
Table 2. Staffing and payroll
Variable costs include the cost of maintaining lanes using special oils and cleaners. Fixed costs are based on rent (350 thousand rubles), marketing (40 thousand rubles), utility bills, telephony and the Internet. Also included in the expenditure side are depreciation charges (40 thousand rubles), commercial and administrative expenses.
6. Organizational plan
The term for the implementation of the preparatory stage of the project will be 4 months. It will take about 2 months to develop a sketch and an architectural project, another two months to repair, prepare the premises for the requirements of the company involved in the installation of equipment, and actually install the equipment.
The management of the bowling center is carried out by the director, who is the founder of the project. He leads the organization and is its official representative at various events. The director carries out strategic business planning, finds new partners, determines and coordinates the institution’s marketing policy. The general management of the administrative, economic and economic activities of the club is carried out by the manager. This is a person with a higher education and experience in organizing a cafe-bar or bowling club business for at least 5 years. The manager organizes the work of personnel, appoints and dismisses employees, imposes penalties or gives incentives, and exercises control over safety measures. Bowling club administrators organize the smooth operation of the institution, accept customers, are engaged in advising clients, are responsible for the work of the reception area, provide general control over the order and safety of equipment. The work of the snack bar is managed by a special employee who performs all the main functions of order preparation. Mini-cafe works on the principle of self-service without the help of waiters. A senior accountant is responsible for bookkeeping. Employees are also hired to work as needed, in particular a mechanic involved in troubleshooting and maintaining the engine room. The cleaning lady is responsible for maintaining the establishment in good condition. Mini-cafe works on the principle of self-service without the help of waiters. A senior accountant is responsible for bookkeeping. Employees are also hired to work as needed, in particular a mechanic involved in troubleshooting and maintaining the engine room. The cleaning lady is responsible for maintaining the establishment in good condition. Mini-cafe works on the principle of self-service without the help of waiters. A senior accountant is responsible for bookkeeping. Employees are also hired to work as needed, in particular a mechanic involved in troubleshooting and maintaining the engine room. The cleaning lady is responsible for maintaining the establishment in good condition.
7. Financial plan
The costs of the preparatory period include: repair and preparation of the premises – 3,291,000 rubles, purchase and installation of equipment – 10,958,000 rubles, costs for the launch promotion and website creation – 194,000 rubles. To implement the project, working capital in the amount of 1,000,000 rubles will be needed. The total cost of the project will be 15,443,000 million rubles. The source of financing is equity from the sale of real estate.
The main period costs include: rent – 350,000 rubles, advertising costs (SEO promotion, targeted advertising on social networks, print advertising) – 40,000 rubles, depreciation – 40,000 rubles, commercial and management expenses – 40,000 rubles, utility bills and electricity – 15,000 rubles, telephony and Internet – 5,000 rubles. Total: 490,000 rubles.
The financial indicators of the project – revenue, cash flow, net profit – are given in Appendix 1. Calculations are made taking into account the achievement of a planned load of 30% in the first year of operation, 50% – in the third year of operation, 70-80% – in the fourth and subsequent years . Also taken into account are factors such as the growth of the club’s popularity over time and seasonality indicators. The traditional fall on the services of a bowling club occurs in the summer – the season of holidays and study holidays. Also included in the calculations are the income and expenses of the snack bar with an average check of 1,400 rubles. As a snack bar’s maximum revenue, a formula was used, according to which every third client (1 track) makes an order according to the size of the average bill.
8. Evaluation of the effectiveness of the project
The main features of this project is the high level of start-up costs. They are based on spending on expensive imported equipment. The level of risks decreases when reaching the planned sales targets.
The payback period of the project since the start of the club is 34 months. The discounted payback period is 39 months. By the end of the second year of operation, the net profit of the project will be 846,194 rubles. per month, by the fourth to fifth year this figure will increase to 1.5-2 million rubles. Financial performance indicators of the project are given in Table 3
Table 3. Project performance indicators
*at the end of 2 years of operation
9.Risks and warranties
The organization of a bowling center does not apply to new and undeveloped business sectors: the technology for providing this type of service is well studied. To reduce the main risk – empty lanes – a flexible pricing policy has been developed, a system of discounts and attracting customers through social networks and targeted advertising, which does not require large investments, but at the same time is most effective, SEO promotion of the site takes place.
In the future, as the institution’s recognition grows, it is planned to gradually increase prices for services up to 15% without changing indicators for the elasticity of demand. Description and risk assessment are given in Table. 4.
Table 4. Assessment of project risks and measures to prevent their occurrence or their consequences
The main financial indicators of the project in a five-year perspective