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 Baby Boomers began to question their elders’ actions, they turned away bowling. Without innovation, eventually, bowling fell out of favor as America’s favorite sport.
Anytown cannot replace the old athletic and social event bowling, but it does need innovation. Sally Strike is the owner and manager at Bowl Weevil. She has a long history of participation in bowling as a youth and her involvement in the Professional Bowling Association. Sally is a former bowler in her local area and a business analyst and marketing manager for the Professional Bowling Association. Sally will be able to reach her contacts within Professional Bowling and Skating Associations, to promote touring tournaments and competes.
Sally has conducted extensive research to design and implement a new bowling alley at the Miller Building, downtown. Bowl Weevil uses the building’s nostalgic atmosphere to create a truly unique environment. This will appeal to after-school students looking for entertainment and snack, families with younger children who want inexpensive entertainment, seniors seeking fun activities and local bowlers looking to compete in their own leagues. We offer group and family rates as well as theme nights with live entertainment.
Sally has committed $60,000 of her personal money to the project and is asking for a $163,900 seven-year loan to fund this venture. The owner’s home equity will secure the loan. 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.
Bowl Weevil’s mission is to provide the best entertainment in Anytown. Our bowling and entertainment services are top-notch for all ages!
- Sales of $523,000 in year one and $608,000 by year three.
- Gross margin greater than 65%
- The third-year net income exceeded 2.7% of sales
1.3 Keys To Success
- Excellence in entertainment.
- Developing a community of regulars.
- Group rates
- It is an excellent value for sports lessons and entertainment.