Table of Content

    Do you want to start Bowling Alley business plan?

    Do you want to know how to start a bowling business? If you’re thinking about starting a bowling alley business, it’s a great idea. You can start a bowling company without needing any certification or particular knowledge. You don’t even need a big team for it. What you do need, however, is a good business plan for bowling alley.

    A business plan will help you understand the correct sequence of steps for starting a business and making it successful. You can also take help from business strategy services. But business plans are freely and easily available. So you can have a basic idea of all the requirements for starting a business. Here, we have detailed out a plan for Charlie’s Bowling Alley business. So, you can use it for guidance as well.

    Executive Summary

    2.1 The Business

    Charlie’s Bowling Alley will be a bowling center owned by Charles Brown. The main target of the business will be to provide bowling alley services to people in and around Portland. It will be providing a wide variety of services from simple bowling areas to league management etc.

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    2.2 Management of Bowling Alley Company

    To open a bowling alley, you need to make sure that you can manage all the aspects of running this type of business. You can start by going through a bowling alley business plan sample. This will serve as a good guide for you to write your own business plan for a bowling center.

    A good business plan will also help you in the management of your business and can inform you how to open a bowling alley so that it is successful. In this business plan, we are detailing all the aspects of Charlie’s Bowling Alley.

    2.3 Customers of Bowling Alley Company

    Just like a restaurant business plan marks out the potential customers of a restaurant or a media production business plan filters out its beneficial customers, a bowling alley business plan should do the same.

    The customers of Charlie’s Bowling Alley will belong to all economic classes and social backgrounds. The focus customer groups of our business will be:

    • Children
    • Young Adults
    • Families
    • Business Employees

    2.4 Business Target

    Our aim as a business is to provide reliable recreational bowling services to our customer base in a friendly manner.

    The financial targets we want to meet in the 3-year duration after our start are shown below:

    Bowling Alley Business Plans-3 Years Profit Forecast

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    Company Summary

    3.1 Company Owner

    The owner of Charlie’s Bowling Alley will be Charles Brown. Charles completed his MBA two years back and worked for a consulting company for 9 months before leaving to work on his lifelong dream of starting a Bowling Alley business.

    3.2 Why the Bowling Alley company is being started

    Charles noticed that recreation places around him were providing expensive, very limited services. He realized that he could provide a family-first approach to a bowling alley business model. He also wanted to offer affordable services. So, he decided to start his venture to implement his ideas.

    3.3 How the Bowling Alley company will be started

    Step1: Plan Everything

    To learn how to set up a bowling alley, you need guidance about proper procedure. You can get this help from a bowling alley business template. It will help you get an idea about opening a bowling alley costs. Since Charles decided to offer a variety of services so if you want to start a franchise bowling alley, you can take help from this business plan. You can also take help from a karaoke bar business plan or a movie theater business plan for general guidance.

    Step2: Define the Brand

    A bowling alley business is a people-first business which means it is essential to attract people to your business. For this, you need to develop your image and brand. It should revolve around your policies and firm business beliefs so that your customers can relate to your business.

    Step3: Establish Your Corporate Office

    Charles decided to start his business by renting out a shop space in a commercial market. He will now plan the recruitment of necessary employees and inventory to start up his bowling alley.

    Step4: Establish a Web Presence

    A business needs to establish an online presence to gain attention. For this purpose, Charles decided to establish social media presence for his bowling alley. He also decided that he will get a website made where people can make reservations and get the required information.

    Step5: Promote and Market

    The last step is to promote your business by following a proper marketing plan.

    Bowling Alley Business Plans-Startup Cost

    Start-up Expenses  
    Legal $181,100
    Consultants $0
    Insurance $23,000
    Rent $35,000
    Research and Development $10,000
    Expensed Equipment $26,000
    Signs $3,400
    TOTAL START-UP EXPENSES $278,500
    Start-up Assets $266,000
    Cash Required $209,000
    Start-up Inventory $39,000
    Other Current Assets $140,000
    Long-term Assets $287,000
    TOTAL ASSETS $941,000
    Total Requirements $1,219,500
    START-UP FUNDING
    Start-up Expenses to Fund $278,500
    Start-up Assets to Fund $941,000
    TOTAL FUNDING REQUIRED $1,219,500
    Assets
    Non-cash Assets from Start-up $1,246,000
    Cash Requirements from Start-up $122,000
    Additional Cash Raised $50,000
    Cash Balance on Starting Date $35,000
    TOTAL ASSETS $1,453,000
    Liabilities and Capital
    Liabilities $18,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $58,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $76,000
    Capital
    Planned Investment $1,219,500
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,219,500
    Loss at Start-up (Start-up Expenses) $157,500
    TOTAL CAPITAL $1,377,000
    TOTAL CAPITAL AND LIABILITIES $1,453,000
    Total Funding $1,219,500

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    Services

    Before starting a bowling alley business plan, you need to decide on the services that you will provide to your customers. For reference, you can take a look at a sample business plan for bowling alley.

    A bowling alley business plan will tell you what type of business is a bowling alley and it will also help you determine how to run a bowling alley. When you decide the services that you want to offer your customers, you will also be able to figure out starting a bowling alley cost.

    The services that Charles decided to offer in his Bowling Alley company have been mentioned below.

    • General Bowling

    We will offer basic bowling services to people of all age groups. For this purpose, we will keep a stock of shoes and bowling balls of different experience levels.

    • Bowling Leagues

    In addition to general bowling services, Charlie’s Bowling Alley will also organize events for different local bowling leagues. We will manage all the competitions in different leagues.

    • Food Services

    Charlie’s Bowling Alley will offer a wide variety of food like hamburgers, fries, shakes, and salads as a part of its indoor diner.

    • Parties and Events

    Our final service to our customers will be the availability of the venue for different events such as birthday parties. At these events, we will responsible for providing decorations, music, and setting up themes.

    Marketing Analysis of Bowling Alley Company

    For starting a bowling center, you need a bowling alley business plan pdf. A very important part of this plan is bowling alley marketing plan. This plan provides an in-depth knowledge of your customer base and competitors.

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    When planning how to build bowling alley, you need to do marketing analysis and make a marketing plan to satisfy your bowling center investors. This should include an in-depth analysis of your present, past, and future market trends.

    If you don’t know how to go about conducting a marketing analysis, you can take assistance from this business plan here. In this document, we have described the market trends and customer segments of Charlie’s Bowling Alley.

    5.1 Market Trends

    According to BowlersJournal, bowling centers hold a market share of $10 billion and about 67 million people bowl at least once a year. According to IBISWorld, there are more than 3000 centers that have services related to bowling. In general, there is a high demand for bowling alley companies and people want more affordable services that they can enjoy more frequently.

    5.2 Marketing Segmentation

    The customer base of Charlie’s Bowling Alley is divided into the following groups:

    Bowling Alley Business Plans-Marketing Segmentation

     

    Business Plan for Investors

    5.2.1 Children

    Our primary customers will be children who can come to our bowling alley as an after-school activity or for having fun with their friends. They are expected to avail out general bowling services as well as booking for events such as birthday parties. With these expected services, they will be our main customers.

    5.2.2 Young Adults

    Our second biggest target customer group will of young adults who can come to hang out at our bowling alley with their friends. They are also expected to partake in competitions and use our food court services.

    5.2.3 Families

    Another major target audience for our bowling alley will be families that are expected to come over weekends or evenings to enjoy our general bowling services along with the food court.

    5.2.4 Business Employees

    Lastly, we also expect regular interaction with the businesses in the surrounding region. Due to the frank and open interaction businesses in the Portland area, these offices are expected to engage in our bowling leagues, general bowling, and food services every so often.

    Market Analysis              
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Children 33% 34,500 41,400 49,680 59,616 71,539 10.00%
    Young Adults 21% 22,500 27,000 32,400 38,880 46,656 10.00%
    Families 28% 21,700 26,040 31,248 37,498 44,997 10.00%
    Business Employees 18% 19,000 22,800 27,360 32,832 39,398 11.00%
    Total 100% 97,700 117,240 140,688 168,826 202,591 10%

     

    5.3 Business Target

    • To become the best recreation center in Portland
    • To expand our range of services to include games other than bowling
    • To earn a net profit of $25k/month by the end of our third year of operation
    • To satisfy our customers and maintain a CSAT score above 90%

    5.4 Product Pricing

    Provided that the main aim of the business is to provide affordable recreation to our customers, Charlie’s Bowling Alley will offer wallet-friendly services as well coupons and discounts regularly.

    Marketing Strategy

    To start a bowling alley and make it successful, you need to recognize several competitive advantages over your competitors. You also need a business plan bowling alley to guide you in this recognition.

    If you want to know how to make your own bowling alley, you can take help from this business plan. You can also use it for help in making a marketing plan that will make you stand out amongst your competitors.

    6.1 Competitive Analysis

    • We have excellent customer support services available to cater to our customer’s needs at all times.
    • We will continue to improve our services by taking feedback from customers and ensuring that any and every problem is handled as soon as possible.
    • Our workforce will maintain friendly behavior at all times to make sure our customers are satisfied.
    • Our customers can interact with us through our website and social media so that they don’t have to go through the trouble of physically visiting our alley for booking or queries and wasting their time.

    6.2 Sales Strategy

    • We will promote our services through social media, posters, and word of mouth.
    • We will provide discounts for kids as well as when our customers book for leagues.
    • We will regularly offer discounts and promotions to our customers

    6.3 Sales Monthly

    Bowling Alley Business Plans-Sales Monthly

    6.4 Sales Yearly

    Bowling Alley Business Plans-Sales Yearly

    6.5 Sales Forecast

    Bowling Alley Business Plans-Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    General Bowling 2,500 2,650 2,809
    Bowling Leagues 1,500 1,590 1,685
    Food Services 2,000 2,120 2,247
    Parties & Events 1,200 1,272 1,348
    TOTAL UNIT SALES 7,200 7,632 8,090
    Unit Prices Year 1 Year 2 Year 3
    General Bowling $60.00 $69.60 $80.74
    Bowling Leagues $120.00 $139.20 $161.47
    Food Services $40.00 $46.40 $53.82
    Parties & Events $500.00 $580.00 $672.80
    Sales
    General Bowling $150,000.00 $184,440.00 $226,787.42
    Bowling Leagues $180,000.00 $221,328.00 $272,144.91
    Food Services $80,000.00 $98,368.00 $120,953.29
    Parties & Events $600,000.00 $737,760.00 $907,149.70
    TOTAL SALES $1,010,000.00 $1,241,896.00 $1,527,035.32
    Direct Unit Costs Year 1 Year 2 Year 3
    General Bowling $20.00 $22.00 $23.10
    Bowling Leagues $30.00 $33.00 $34.65
    Food Services $20.00 $22.00 $23.10
    Parties & Events $200.00 $220.00 $231.00
    Direct Cost of Sales
    General Bowling $50,000.00 $58,300.00 $64,887.90
    Bowling Leagues $45,000.00 $52,470.00 $58,399.11
    Food Services $40,000.00 $46,640.00 $51,910.32
    Parties & Events $240,000.00 $279,840.00 $311,461.92
    Subtotal Direct Cost of Sales $375,000.00 $437,250.00 $486,659.25

     

    Personnel plan

    The workforce of a business has a lot of impact on its success. Whether you read a free bowling alley business plan or a music venue business plan, you will recognize the importance of employee interaction with customers. Due to this reason, Charles decided to implement strict criteria for the hiring of employees for Charlie’s Bowling Alley. So if you want to know how to start a bowling alley, read ahead.

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    7.1 Company Staff

    • 1 Manager
    • 3 Bowling Staff
    • 2 General Cleaners
    • 4 Waiters
    • 1 Technician to upkeep the bowling alleys
    • 1 Social Media Executive
    • 1 Sales Executives to organize and promote sales
    • 2 Receptionists

    7.2 Average Salary of Employees

     Personnel Plan      
      Year 1 Year 2 Year 3
    Manager $56,000 $61,600 $67,760
    Bowling Staff $92,000 $101,200 $111,320
    General Cleaners $42,000 $46,200 $50,820
    Waiters $110,000 $121,000 $133,100
    Technician $25,000 $27,500 $30,250
    Social Media Exec $20,000 $22,000 $24,200
    Receptionists $50,000 $55,000 $60,500
    Total Salaries $395,000 $434,500 $477,950

     

    Financial Plan

    In the initial phases of starting a business, you need to cater to the startup costs. Therefore, when you start a Bowling Alley, you need to consider bowling alley start up costs. You can gain some idea of probable bowling alley start up cost by going through a bowling center business plan.

    You can also gain insight from business plans of other companies like a golf course business plan or a hookah lounge business plan for developing a financial plan. This will guide you through efficient management of your business so that you can manage your resources and don’t go into a loss.

    Below, we have provided a detailed analysis and financial plan for Charlie’s Bowling Alley that you can refer to for a better understanding.

    8.1 Important Assumptions

     General Assumptions      
      Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0

     

    8.2 Break-even Analysis

    Bowling Alley Business Plans-Break-even Analysis

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Assumptions:  
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.62
    Estimated Monthly Fixed Cost $163,800

     

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss    
      Year 1 Year 2 Year 3
    Sales $1,010,000 $1,241,896 $1,527,035
    Direct Cost of Sales $375,000 $437,250 $486,659
    Other $0 $0 $0
    TOTAL COST OF SALES $375,000 $437,250 $486,659
    Gross Margin $635,000 $804,646 $1,040,376
    Gross Margin % 62.87% 64.79% 68.13%
    Expenses      
    Payroll $395,000 $434,500 $477,950
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $574,200 $617,950 $671,850
    Profit Before Interest and Taxes $60,800 $186,696 $368,526
    EBITDA $60,800 $186,696 $368,526
    Interest Expense $0 $0 $0
    Taxes Incurred $12,160 $37,339 $73,705
    Net Profit $48,640 $149,357 $294,821
    Net Profit/Sales 4.82% 12.03% 19.31%
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    8.3.1 Profit Monthly

    Bowling Alley Business Plans-Profit Monthly

    8.3.2 Profit Yearly

    Bowling Alley Business Plans-Profit Yearly

    8.3.3 Gross Margin Monthly

    Bowling Alley Business Plans-Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Bowling Alley Business Plans-Gross Margin Yearly

    8.4 Projected Cash Flow

    Bowling Alley Business Plans-Projected Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations      
    Cash Sales $51,000 $55,080 $59,486
    Cash from Receivables $22,000 $23,760 $25,661
    SUBTOTAL CASH FROM OPERATIONS $73,000 $79,570 $85,936
    Additional Cash Received      
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $74,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations    
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $69,000 $70,000 $76,000
    Additional Cash Spent      
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000

     

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets      
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets      
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities      
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787

     

    8.6 Business Ratios

     Ratio Analysis        
      Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets        
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales        
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios        
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3  
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios        
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios        
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios        
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios        
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

    FAQ

    1. How profitable is a bowling alley?

    The success of a bowling alley depends on a lot of things such as bowling game set cost, its marketing and financial plans and workforce, etc. You can gain insight into these factors by reading the business plan detailed above.

    1. How much does it cost for a bowling alley?

    starting a bowling alley business cost depends on many factors such as the location, competition, and management competency.

    1. How much space do you need for a bowling alley?

    If you want to know how to open up a bowling alley business, you don’t need to worry about space because you don’t need a lot of it to set up some bowling lanes.

    1. How do you run a successful bowling alley?

    You can run a successful bowling alley by thoroughly going through business plan bowling alley like the one above.

    Download Bowling Alley Business Plan Sample in pdf