Roller Rink Business Plan Sample

Do you want to start a roller rink business?

Are you planning to open a roller rink business? This is an awesome business to invest in since many people nowadays love the roller skating culture. From adults to children, the numbers of people looking for roller skating services have tremendously increased over the years. Roller skating is not only a great exercise to engage in with your family, but it’s also fun. So, at the end of the day you will be bonding and improving the health of your loved ones at the same time. The startup capital required may be on the high side but with proper planning and funding for you will recover your costs within a few years of business.

Executive Summary

2.1 The Business

The roller rink business shall be registered under the name Smooth Slide Rink, and will be situated in Enos Park, Springfield Illinois. The business will be owned and managed by Samantha Davis an experienced and award winning skating professional.

2.2 Management Team

Samantha Davis is a skating instructor who has been in the roll skating industry for over twelve years. Before opening a roller skating rink business, Samantha worked for many schools and popular fitness brands across United States and Canada training adults and students the art of skating thus gaining impressive knowledge and experience.

2.3 Customer Focus

Smooth Slide Rink intends to offer a modern, spacious and well equipped facility for all potential customers across the city of Springfield.

2.4 Business Target

Since it will be the first roller rink business in the neighborhood, the whole community and residents of Springfield will highly benefiting from a well-managed and equipped facility.

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Company Summary

3.1 Company Owner

Samantha Davis is a skating instructor who has worked with top USA skating schools such as U.S. Figure Skating. She also worked as a skating instructor at The Mariposa School of Skating in Canada for more than 10 years. She has greatly contributed to ensure the growth of the roller skating industry by working in the course of her career.

3.2 Aim of Starting the Business

To open a roller skating rink business, it requires an expert who understands the art of skating and handling the business to properly identify priorities and set goals. Samantha has previously managed roller skating and therefore, comprehends the nitty-gritty details of managing a roller rink skating facility.

3.3 How the Business will be Started

As a professional skating instructor, Samantha understands what it entails to begin this venture and to make it successful. To actualize her plan, she has hired professional to come up with an impressive financial roadmap to guide the business. The following is the ultimate financial data for Smooth Slide Rink.

Start-up Expenses
Legal	$3,000
Consultants	$2,500
Insurance	$8,000
Rent	$20,000
Research and Development	$10,000
Expensed Equipment	$20,000
Signs	$3,000
TOTAL START-UP EXPENSES	$66,000
Start-up Assets	$0
Cash Required	$120,000
Start-up Inventory	$30,000
Other Current Assets	$15,000
Long-term Assets	$5,000
TOTAL ASSETS	$25,000
Total Requirements	$30,000
START-UP FUNDING	$0
START-UP FUNDING	$80,000
Start-up Expenses to Fund	$40,000
Start-up Assets to Fund	$30,000
TOTAL FUNDING REQUIRED	$0
Assets	$12,000
Non-cash Assets from Start-up	$15,000
Cash Requirements from Start-up	$0
Additional Cash Raised	$50,000
Cash Balance on Starting Date	$20,000
TOTAL ASSETS	$0
Liabilities and Capital	$0
Liabilities	$0
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$0
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$0
Capital	$0
Planned Investment	$0
Investor 1	$22,000
Investor 2	$20,000
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$120,000
Loss at Start-up (Start-up Expenses)	$40,000
TOTAL CAPITAL	$45,000
TOTAL CAPITAL AND LIABILITIES	$40,000
Total Funding	$100,000

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Services for Customers

Smooth Slide Rink is keen to offer top notch and modern roller skating facilities for potential customers. Since Samantha already has an idea of how to open a roller skating rink business, the venture will focus on building a healthy and long lasting client relationships as it offers the following services.

• Offer indoor roller skating expeditions.
• Provide video arcade and redemption counter.
• Small restaurant to offer snacks and refreshments.
• Hosting Parties and fundraising

Marketing Analysis for Roller Rink Business

For Smooth Slide Rink to meet its market goals, a well-researched market analysis to find out market trends was started to assist the business effectively tap into the market. This roller rink business plan has showed the strategy the business intends to focus on to meet its obligations.

5.1 Market Segmentation

With a good roller skating rink business plan, this will act as good foundation to start a strong and marketable business. Smooth Slide Rink therefore has the best opportunity to engage in intensive marketing campaigns to command a larger market share. One doesn’t need to have prior experience roller skating to visit the facility to have a good time. Based on market findings, the skating facility intends to target the following groups of customers.

5.1.1 Children

A lot of roller skating facilities earn a lot of money and profits from children related activities. Smooth Slide Rink plans to have a wide option of children’s programs that will make the facility attractive for children. Springfield has a wide population of children between ages of five to seventeen which is key revenue potential for business. Nowadays, parents are open to the idea of having their children take part in fun and recreation activities in order to encourage healthy living. With a roller skating facility in the community, the most lucrative customers for the business will be children.

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5.1.2 Adults (Age 18-44)

As roller skating activity popularity is increasing each single day, and adults too are over the moon to try skating for fun. This roller skating rink startup sample business plan also includes adults since the business plans to put in place awesome activities that will appeal to the adult between 18-44 years. Since most of this age group are working and in active activities, they will most likely have to pay for membership which will generate a more steady income for the skating facility.

5.1.3 Schools and College Students

Roller skating is a major trend in many educational institution. In this case, many schools once in a while always organize indoor roller skating competitions. Smooth Slide Rink stands a great chance to gain as these schools and their students will need a professionally managed and well equipped facility where they can compete and have a fun. With the high number of high schools and vocational schools in Springfield, the business will definitely flourish. Smooth Slide Rink plans to widely market its services to this target group to maximize on profits.

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5.1.4 Churches and Religious Centers

The neighborhood has a great number of religious institutions and churches that periodically organize recreation activities for the congregations. Thanks to Smooth Slide Rink, they will be able to have fun and engaging religious activities at the facility.

Market Analysis
Potential Customers	Growth	YEAR 1	YEAR 2	YEAR 3	YEAR 4		YEAR 5		CAGR
Adults	30%	23,000	26,000	29,000	32,000		35,000		10.00%
Children	35%	20,000	23,000	26,000	29,000		31,000		12.00%
Schools and College Students	19%	18,000	21,000	24,000	27,000		30,000		14.00%
Churches and Reigious Centers	16%	15,000	18,000	21,000	24,000		27,000		9.00%
Total	100%	76,000	88,000               100,000		112,000		123,000		11.00%

5.2 Business Target

Smooth Slide Facility is ready to start operations in an easily accessible location where there is limited to no competition. The high population in Springfield is a great source of market for the skating facility. When allocating the roller skating rink start up costs, the business knows it will be expensive to open the facility and therefore, enough plans are needed to recover the initial investment. Smooth Slide Rink hopes to make fully recovery of the startup cost investment in two years. The skating facility has predicted a 30-40% annual increase in sales.

5.3 Product Pricing

A good roller skating business plan should be carefully thought through and accurate prices indicated to lay a perfect foundation for the business. Although there is no competition, Smooth Slide Rink has come up with affordable prices to attract and retain customers.

Strategy

If you are wondering how to open a skating rink business that will be successful from launching, you need to come up with a comprehensive and realistic strategy. Samantha Davis has worked with skating experts to come up with a personalized roller skating rink business strategy that will be the backbone of attracting business revenue. The following is Smooth Slide Rink sales strategy.

6.1 Competitive Analysis

Smooth Slide Rink is located in an accessible location with a huge population of the market target. Furthermore, this is the first skating rink business in the area, so there will be a high demand.

6.2 Sales Strategy

To make sure Smooth Slide Rink reaches its intended customers, these helpful strategies will be used to boost sales.

• The business will use word of mouth marketing to market the facilities.
• The skating facility will use local advertising methods such as churches, religious institutions, print media, radio, Television, schools and vocation institutions.
• Plan a publicized grand opening party to create awareness about the new roller rink skating facility.
• Use digital media platforms such as Twitter, Instagram and Facebook to advertise.
• Offer an introductory reduced fee for the first members.
• Organize numerous children activities such as birthday parties.

6.3 Sales Forecast

Smooth Slide Rink is focused on offering a wide variety of sales strategies to its targets.

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Indoor Roller Skating Expedition	400,000	420,000	440,000
Video arcade and redemtion center	250,000	300,000	350,000
Hosting parties and fundraising	200,000	250,000	300,000
Small restaurant for snacks &refreshments	150,000	200,000	250,000
TOTAL UNIT SALES	1,150,000	1,550,000	1,970,000
Unit Prices	Year 1	Year 2	Year 3
Indoor Roller Skating Expedition	$200.00	$220.00	$240.00
Video arcade and redemtion center	$170.00	$200.00	$230.00
Hosting parties and fundraising	$150.00	$180.00	$210.00
Small restaurant for snacks &refreshments	$130.00	$160.00	$190.00
Sales
Indoor Roller Skating Expedition	$200,000	$230,000	$260,000
Video arcade and redemtion center	$180,000	$200,000	$230,000
Hosting parties and fundraising	$150,000	$180,000	$210,000
Small restaurant for snacks &refreshments	$100,000	$130,000	$160,000
TOTAL SALES
Direct Unit Costs	Year 1	Year 2	Year 3
Indoor Roller Skating Expedition	$3.20	$4.20	$5.20
Video arcade and redemtion center	$2.00	$3.00	$4.00
Hosting parties and fundraising	$1.60	$2.60	$3.00
Small restaurant for snacks &refreshments	$1.50	$2.50	$3.50
Direct Cost of Sales
Indoor Roller Skating Expedition	$120,000	$140,000	$160,000
Video arcade and redemtion center	$100,000	$120,000	$140,000
Hosting parties and fundraising	$80,000	$100,000	$120,000
Small restaurant for snacks &refreshments	$50,000	$70,000	$90,000
Subtotal Direct Cost of Sales	$350,000	$430,000	$510,000

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Personnel Plan

Smooth Slide Rink offers various services to maximize on the profits. How the business intends to pay salaries is well indicated in this roller skating rink business plan.

7.1 Personnel Plan

Smooth Slide Rink is owned by Samantha Davis, who understands how to start a roller skating rink business. She will be also the operating manager of business. Other people to be hired include.

• Business Manager
• Assistant Manager
• Administrator
• Three Instructors
• Two Marketing Executives
• One Cashier

7.2 Average Staff Salaries

Smoot Slide Rink plans to spend the following amounts on staff salaries for the first three years.

Personnel Plan
	Year 1	Year 2	Year 3
Manager	$50,000	$70,000	$90,000
Cashier	$20,000	$23,000	$26,000
Administrator	$25,000	$35,000	$40,000
2 Sales and Marketing Executive	$40,000	$60,000	$80,000
3 Skating Instructors	$105,000	$120,000	$129,000
Assitant Manager	$30,000	$33,000	$36,000
Total Salaries	$270,000	$341,000	$401,000

Financial Plan

Smooth Slide Rink has a steady financial plan that will guide the business to run smoothly and achieve success. Starting a skating rink business will be facilitated by Samantha’s personal savings and business plan for angel investors. Key financial information for the business has been shown in the sections below.

8.1 Important Assumptions

Financial forecasts of Smooth Slide Rink will be based on these assumptions.

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	15.00%	17.00%	19.00%
Long-term Interest Rate	5.00%	5.00%	5.00%
Tax Rate	14.00%	17.00%	20.00%
Other	0	0	0

8.2 Brake-even Analysis

Smooth Slide Rink Brake-even Analysis is show in the graph below.

Brake-Even Analysis
Monthly Units Break-even	10000
Monthly Revenue Break-even	$250,000
Assumptions:
Average Per-Unit Revenue	$200.00
Average Per-Unit Variable Cost	$2.00
Estimated Monthly Fixed Cost	$400,000

8.3 Projected Profit and Loss

Profit and Loss information for Smooth Slide Rink computed on an annual and monthly basis is as shown below.

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$400,000	$420,000	$440,000
Direct Cost of Sales	$40,000	$60,000	$80,000
Other	$0	$0	$0
TOTAL COST OF SALES	$40,000	$60,000	$80,000
Gross Margin	$200,000	$250,000	$300,000
Gross Margin %	60.00%	65.00%	70.00%
Expenses
Payroll	$300,000	$310,000	$330,000
Sales and Marketing and Other Expenses	$10,000	$14,000	$16,000
Depreciation	$4,000	$6,000	$8,000
Leased Equipment	$0	$0	$0
Utilities	$5,000	$8,000	$11,000
Insurance	$2,400	$3,400	$4,400
Rent	$12,000	$14,000	$16,000
Payroll Taxes	$40,000	$42,000	$44,000
Other	$0	$0	$0
Total Operating Expenses	$300,000	$320,000	$350,000
Profit Before Interest and Taxes	$40,000	$45,000	$50,000
EBITDA	$20,000	$30,000	$50,000
Interest Expense	$0	$0	$0
Taxes Incurred	$18,000	$21,000	$24,000
Net Profit	$150,000	$170,000	$190,000
Net Profit/Sales	50.00%	60.00%	70.00%

8.3.1 Monthly Profit

8.3.2 Yearly Profit

8.3.3 Monthly Gross Margin

8.3.4 Yearly Gross Margin

8.4 Projected Cash Flow

The diagram below summarizes projected cash flow.

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$150,000	$155,000	$160,000
Cash from Receivables	$10,000	$15,000	$20,000
SUBTOTAL CASH FROM OPERATIONS	$160,000	$170,000	$180,000
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	$160,000	$170,000	$180,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$30,000	$32,000	$34,000
Bill Payments	$10,000	$13,000	$16,000
SUBTOTAL SPENT ON OPERATIONS	$30,000	$42,000	$50,000
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	$40,000	$520,000	$60,000
Net Cash Flow	$22,000	$25,000	$28,000
Cash Balance	$33,000	$38,000	$43,000

8.5 Projected Balance Sheet

Illustrated below is the Projected Balance Sheet for Smooth Slide Rink.

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$200,000	$230,000	$260,000
Accounts Receivable	$6,000	$10,000	$14,000
Inventory	$5,000	$7,500	$10,000
Other Current Assets	$4,000	$4,000	$4,000
TOTAL CURRENT ASSETS	$215,000	$254,500	$288,000
Long-term Assets
Long-term Assets	$12,000	$14,000	$16,000
Accumulated Depreciation	$14,000	$17,000	$20,000
TOTAL LONG-TERM ASSETS	$3,000	$2,000	$1,500
TOTAL ASSETS	$234,000	$284,500	$365,500
Liabilities and Capital	Year 1	Year 2	Year 3
Current Liabilities
Accounts Payable	$25,000	$28,000	$31,000
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$25,000	$28,000	$31,000
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$25,000	$28,000	$31,000
Paid-in Capital	$20,000	$20,000	$20,000
Retained Earnings	$30,000	$45,000	$60,000
Earnings	$130,000	$150,000	$170,000
TOTAL CAPITAL	$350,000	$380,000	$410,000
TOTAL LIABILITIES AND CAPITAL	$350,000	$380,000	$410,000
Net Worth	$420,000	$450,000	$480,000

8.6 Business Ratios

Smooth Slide Rink Ration Analysis, Business New Worth and Business Ratios are shown below.

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	10.00%	23.00%	35.00%	5.00%
Percent of Total Assets
Accounts Receivable	5.00%	4.00%	3.00%	6.00%
Inventory	6.00%	4%	3.00%	8.00%
Other Current Assets	4.00%	3.00%	2.00%	20.00%
Total Current Assets	90.00%	95.00%	105.00%	40.10%
Long-term Assets	-7.00%	-14.00%	-21.00%	30.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	6.00%	5.00%	3.00%	20.00%
Long-term Liabilities	0.00%	0.00%	0.00%	18.00%
Total Liabilities	4.00%	2.00%	1.00%	38.00%
NET WORTH	80.00%	100.00%	110.00%	30.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	80.00%	70.00%	60.00%	1.00%
Selling, General & Administrative Expenses	70.00%	77.00%	72.00%	60.00%
Advertising Expenses	4.00%	3.00%	2.00%	3.00%
Profit Before Interest and Taxes	20.00%	24.00%	30.00%	2.50%
Main Ratios
Current	12	15	20	2.3
Quick	20	23	30	2.5
Total Debt to Total Assets	4.00%	3.75%	2.10%	66.00%
Pre-tax Return on Net Worth	85.00%	95.00%	5.00%	5.00%
Pre-tax Return on Assets	54.00%	64.00%	76.00%	8.00%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	14.00%	17.00%	25.00%	N.A.
Return on Equity	62.00%	65.00%	72.00%	N.A.
Activity Ratios
Accounts Receivable Turnover	7	9	12	N.A.
Collection Days	100	110	120	N.A.
Inventory Turnover	23	26	29	N.A.
Accounts Payable Turnover	15	18	21	N.A.
Payment Days	15	15	15	N.A.
Total Asset Turnover	3.5	3	2.5	N.A.
Debt Ratios
Debt to Net Worth	0	-0.14	-0.1	N.A.
Current Liab. to Liab.	0	0	0	N.A.
Liquidity Ratios
Net Working Capital	$160,000	$180,000	$20,000	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	1.4	2.48	3.32	N.A.
Current Debt/Total Assets	6%	4%	2%	N.A.
Acid Test	30	33	36	N.A.
Sales/Net Worth	3.3	3	2.5	N.A.
Dividend Payout	0	0	0	N.A.

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