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.
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.
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:
- Young Adults
- 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:
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.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$278,500|
|Other Current Assets||$140,000|
|Start-up Expenses to Fund||$278,500|
|Start-up Assets to Fund||$941,000|
|TOTAL FUNDING REQUIRED||$1,219,500|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$58,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,219,500|
|Loss at Start-up (Start-up Expenses)||$157,500|
|TOTAL CAPITAL AND LIABILITIES||$1,453,000|
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:
Business Plan for Investors
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.
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.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
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.
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
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|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|
|Parties & Events||$500.00||$580.00||$672.80|
|Parties & Events||$600,000.00||$737,760.00||$907,149.70|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Parties & Events||$200.00||$220.00||$231.00|
|Direct Cost of Sales|
|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|
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.
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
|Year 1||Year 2||Year 3|
|Social Media Exec||$20,000||$22,000||$24,200|
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
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|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|
|Direct Cost of Sales||$375,000||$437,250||$486,659|
|TOTAL COST OF SALES||$375,000||$437,250||$486,659|
|Gross Margin %||62.87%||64.79%||68.13%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$574,200||$617,950||$671,850|
|Profit Before Interest and Taxes||$60,800||$186,696||$368,526|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|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|
|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|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|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.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
- 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.
- 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.
- 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.
- 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.
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.