Business Plan Competition December 6-7, Prison Entrepreneurship Program P.O. Box Houston, TX (832)

Transcription

1 Business Plan Competition December 6-7, 2018 Prison Entrepreneurship Program P.O. Box Houston, TX (832)

2

3 Wheels over Texas Mobile Entertainment Wheels over Texas where we bring the fun to you Business Plan December 2018 Owner & Founder

4 TABLE OF CONTENTS EXECUTIVE SUMMARY...1 PERSONAL FIT...2 OPPORTUNITY...2 SOLUTION...3 CUSTOMERS...3 DIFFERENTIATORS...5 EXTRAS...6 MARKETING...6 FINANCIAL PROJECTIONS... ATTACHED

5 EXECUTIVE SUMMARY Opportunity Purpose Solution We intend to create a positive environment and insure that your special event will be an everlasting memory. There is an opportunity for a mobile skating rink service that is convenient and we will strive to be available to all our customers. We bring and assemble all equipment on site. We will work nights, weekends, and holidays. Customers Differentiators Extras We are serving mid-to high class house hold incomes, also community events and local business events. No request is too small or too big we will facilitate mobile ring in the summer and ice ring in the winter along with all other attractions. My experience in the entertainment industry and customer service gives me an advantage and an understanding of my customers is something I pride myself in. Marketing Start-up Costs Financials & Extras We will be using the following tactics to market: Facebook, Twitter, local newspapers and Google. Owner Inv. - (Cash) $ - Owner Investment (Equipment) $ - Vehicle/equipment Loan $ 17,500 Unsecured Debt/Loan $ 5,000 Equity Investment $ - Total start up costs: $ 22,500 Sales: $ 63, % COGS 17,000 27% Gross profit 46,800 73% Overhead 16,900 26% Pretax income 29,800 47% Tax expense 7,400 12% Owner withdrawals - 0% Net income $ 22,300 35% Personal Fit I am the proud owner and founder of Wheels over Texas Mobile Entertainment. I will use my experience in the entertainment industry and my marketing ability to assure my business is a company you can trust and consider family.

6 PERSONAL FIT As the founder and owner of Wheels over Texas Mobile Entertainment, Anthony will be responsible for general management of the company s products, marketing, growth and success. Anthony has experience in commercial and industrial skilled labor which includes equipment rental, electrical, plumbing, pipe-fitting and landscaping. He has certifications for Men s Life, Quest for Authentic Manhood, Core Construction- level one, OSHA 10, and Conduits. Anthony completed his GED at Wyndham School District in 2014 and brings all his energy to his new business venture. He is currently enrolled in the Prison Entrepreneurship Program and will graduate in December of He will start his business in the fall of OPPORTUNITY Explanation: There is an opportunity for a mobile skating rink. Safety, convenience and peace of mind is our highest priority along with our customer s expectations. Can I solve the problem given my skills and personality? I have five years experience in the roller rink industry and am an expert in customer service. Is the customer looking for a more holistic solution than his or her immediate complaint? We feel the customer is looking for convenience and peace of mind more than anything. Do I need to do all of the work myself or can I hire others to help me and still maintain quality? I will need additional employees to assist in setting up and taking down the rink. Is there growth potential to expand my business, or is this a dying market? The market that I am entering is growing at a rapid rate. How soon can I get my business up and running? It will take eight to 12 months to save the necessary start-up costs. Is this something that will take a lot of cash to get started or is it more of a question of hustle? It will take a medium amount of cash to start, and hustle. Is this something I would be proud to share with my family and parole officer? I believe that both my family and my parole officer will be very happy with this venture. It brings families together. Is the opportunity (Activity and Start Date) consistent with potential parole restrictions? The activities and start date will fall in line with my parole restrictions. Would my business start as a part-time venture or need to be full time? This venture will start off part time then move to a full time venture when we break even. Wheels over Texas Mobile Entertainment 2

7 SOLUTION Explanation: We will be up-to-date and first aid trained, as well as, we will bring everything to the customer so they don t have to worry about traveling or setup. Is what I am offering filling the customer s real need? This venture is filling the needs of our customers by being on time and having a safe environment. What are the benefits (not features) that I am providing? An interesting and fun environment for the customer where families can enjoy this experience at any location they so choose. Why can I do this better than another business (competitor)? I can bring my service to them. How will I deliver this better idea to my customers? Social media, fliers, local newspaper, etc. Is my delivery (retail store, home service, etc.) consistent with how I will produce the service (one-day delivery, hand-made products, etc.)? Our product is unique and consistent to our customer needs. Is my solution consistent with my passion for selling? We have a passion to entertain. Is the price of my solution equal to or less than the customer s pain? Our price will be in the middle of the playing field. Is the approximate cost of my solution lower than the price? Our price will vary by how many people are starting. Do I need a fixed location (Storefront) or is this a mobile business? Our venture will be mobile so we can target a number of customers. Do I offer a guaranty or return policy? We will offer a money back guarantee to any unsatisfied customers. CUSTOMERS Explanation: Our customers are middle to high class household income with one or more children. Demographics: Will my service have different appeal to men versus women? My service will appeal to both. What is my ideal customer s age (children, young adult, middle aged, mature)? Our ideal customers are young to middle age adults with one or more children. Does my customer need to be married, single or does it matter? It does not matter if you are married or single. Do language or ethnicity differences improve or limit my ability to sell to my ideal customer? No, since we will have a translator on staff to accommodate Spanish speaking customers. Wheels over Texas Mobile Entertainment 3

8 What aspect of my ideal customer am I appealing to (outdoors person, health conscious, nerd, their personal image, environmental concerns, recreation, etc.)? We are appealing to the recreational type- outdoorsman/woman and health conscious. Income: Does my customer need a certain income (rich, middle class, poor)? We will target middle to high-class households. Does my customer need to own specific assets (car, house, boat)? Our customers need to own a lot big enough to set up our equipment, or know of a place where we can. Location: Where will I sell to my customers (their home, their workplace, on the street, online, my store, an event like trades day)? We are a mobile service that will operate wherever we are needed. Do I go to my customer (home service) or does my customer come to me? We are a mobile service. What neighborhood will my ideal customer live/work in (River Oaks/Highland park, a suburb, or small rural community)? We are aiming for the suburbs and high end estates. How close are my customers geographically located (live close to each other or spread all over the city)? Time is money. Ideally, we would like our customers to live close to each other. How easily can I find this customer (one at a time or they will provide referrals)? We will have booths at the Houston Rodeo to promote our business, ads in the Crosby newspaper and on all social media websites. Other: Can I reach these individuals as a group or do I need to find and sell to them individually? I will be able to reach them individually but I will also be able to reach them in groups like church groups and rotary. Once I sell to a customer, what is the likelihood that they will buy from me again? I am sure that they will have a great time and they will also want to buy the same experience from me again. Wheels over Texas Mobile Entertainment 4

9 DIFFERENTIATORS My Competitors Direct or Indirect Promotion Skate Land Direct Radio, and TV ads and word of mouth. Price Their Advantages $100 Brand well known. Their Disadvantages Wait time, drive time. My Differentiators More personal, convenient, no traveling. DEX Skate Park Direct Radio, TV, and newspaper ads. $100 Well established in the market place. Wait time, drive time. More personal content, no traveling. ARC-Des Indirect Radio and TV ads. $150 Well established, good location. Wait time, money, standing. More personal content, no traveling. Pipeline Skate Park Indirect Radio, and TV ads. $100 Well established, good location. Wait time, standing. More personal convent, no traveling. Wheels over Texas Mobile Entertainment 5

10 EXTRAS External Extras: Do you have a connection with a supplier in your industry? At this time no, I am looking for them. Do you have access to a favorable location for your business? Not at this time. My business is mobile but may move to a building in the future. Are you going to be the first company of your type in your chosen area operations? Yes. We will be the first to offer our services in the Crosby, Texas area. Internal Extras: Do you have a new or cutting edge concept? Our service will be the first of its kind in the area. Will you be able to offer specialized or flexible scheduling that your competitors cannot match initially? Our scheduling is best when we are given a week s notice to make or meet your need. Are you an especially charming or personable person? First impressions are the most important to me and I want to get to know my customers like they were my neighbors. MARKETING Message: What are three things your company name (with no other information provided) says about your company? We are a mobile entertainment company serving Texas. What is your tagline? We bring all the fun under the sun. How does your name and tagline make you different than your competitors? My tagline tells all my customers our deep commitment to the great state of Texas Can your message be effectively conveyed through multiple types of media? This message can and will be conveyed through many types of media. Is your message effective across different demographics? Our message will be a little bit cloudy at first but I have faith that it will stick. Is your pricing consistent with the market for similar offerings? At this time we are very competitive at pricing. Is your pricing consistent with the degree of personalization? We feel our prices are consistent with our unique service. Media: What are three types of media you will use to reach your customers? I will advertise on social media, newspapers and radio ads. How many potential typical customers (not just total people) can you reach each month using the types listed above? I will try and seek 65 customers a month in hopes for 70. Once you ve reached your typical customer, how many will actually buy from you? Wheels over Texas Mobile Entertainment 6

11 We feel that only a quarter will actually buy from us. For each of the three, what do you think the estimated cost will be? Newspapers $100, radio ads will be $75 and social media will be free. For each cost estimate, is this a one-time expense up front or a recurring monthly charge? All costs will be recurring monthly. How will you collect customer reviews? We will have a home website that will allow comments and feedback. Wheels over Texas Mobile Entertainment 7

12 START-UP COST Owner's name Company name Industry Wheels Over Texas Mobile Entertainment Start-up Costs Year 1 Assumption 4 - Total Uses Paid or Non-Depreciable Costs contributed in 1 marketing, business cards, fliers 150 cell phone purchase 100 car/truck down payment, if leased permits 75 supplies, office & misc. Cash needed for start-up expenses 325 Depreciable Costs Paid or contributed in 1 Equipment Financing (Additional to amount paid) Depreciable Assets company car, truck or van 17,500 17,500 company trailer 2,200 2,200 computer, printer, fax 1,750 1, building/office deposit N/A N/A beginning cash balance N/A N/A Cash needed for start-up assets 3,950 17,500 21, assumed life (months) 358 monthly depreciation Total start up cost 21,775 Assumption 5 - Total Sources Cash owner will contribute to the company 0% Value of owner's assets contributed to company 0% Vehicle loan and other equipment debt (see note 7 for financing) 17,500 78% Unsecured debt, if applicable (for example Kiva loan) 5,000 22% Outside equity investment, if applicable 0% Total start up cost, total sources 22, %

13 FINANCIALS dba Wheels Over Texas Mobile Entertainment EOU, Financing, and Payroll Assumptions Year 1 Assumption 6 - Revenue Model (Economics of One Unit) Product 1 Product 2 Product 3 Product name Basic Night Premium Flight Platinum Stripe Product description 20' X 40' Rink, DJ service, Lighting 20' X 40' Rink, DJ service, Lighting, Water Slide 20' X 40' Rink, DJ service, Lighting, Water Slide, Sumo Suit Price per unit % % % Cost of one unit hours rate hours rate hours rate Non-owner payroll exp. - 0% - 0% - 0% Non-owner payroll tax 9.0% - 0% - 0% - 0% cost 1 description Fuel % Fuel % Fuel % cost 2 description Owner's Labor % Owner's Labor % Owner's Labor % cost 3 description 0% 0% 0% cost 4 description 0% 0% 0% Total variable costs % % % Income statement gross profit per unit % % % hours rate hours rate hours rate Owner's labor charge - 0% - 0% - 0% Pro forma gross profit % % % Start-up Total Year Basic Night sold Premium Flight sold Platinum Stripe sold total revenue $ 2,975 $ 3,725 $ 6,075 $ 4,775 $ 4,450 $ 5,275 $ 6,425 $ 8,200 $ 7,175 $ 7,625 $ 7,175 $ 63,875 total cost of sales $ 840 $ 1,080 $ 1,680 $ 1,200 $ 1,200 $ 1,320 $ 1,680 $ 2,160 $ 1,920 $ 2,040 $ 1,920 $ 17,040 total income statement gross profit (excludes owner labor) $ 2,135 $ 2,645 $ 4,395 $ 3,575 $ 3,250 $ 3,955 $ 4,745 $ 6,040 $ 5,255 $ 5,585 $ 5,255 $ 46,835 Owner's labor hours (time spent directly related to sales) Assumption 7 - Financing Total Year Equipment financing, see Start-up Costs sheet amortization schedule Amount borrowed $ 17,500 principal, beginning 17,500 17,355 17,209 17,062 16,914 16,764 16,614 16,462 16,308 16,154 15,998 Interest rate 10.0% interest expense ,536 Loan term (months) 84 principal payment (145) (146) (147) (148) (150) (151) (152) (153) (155) (156) (157) (1,660) ly payment 291 principal, ending 17,355 17,209 17,062 16,914 16,764 16,614 16,462 16,308 16,154 15,998 15,840 Start-up financing, see Start-up Costs sheet Amount borrowed $ 5,000 principal, beginning 5,000 4,792 4,583 4,375 4,167 3,958 3,750 3,542 3,333 3,125 2,917 Interest rate 0.0% interest expense Payback period (months) 24 principal payment (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (2,292) Grace period (months) - principal, ending 4,792 4,583 4,375 4,167 3,958 3,750 3,542 3,333 3,125 2,917 2,708 ly payment $ 208 Assumption 8 - Payroll, nondirect Total Year # of employees avg hours each employee(s) worked per month, not in EOU above average per hour wage salary expense, exclduing payroll taxes ,712 Assumption 9 - Equipment Purchases, after start-up Description Total Year

14 dba W heels Over Texas M obile Entertainment Projected Income and Cash Flow Statements Year 1 Assumptions Start-up First Year % of Total Revenue Revenue 2 Basic Night 6-1,500 2,250 3,000 1,125 1,500 1,500 1,875 2,625 2,625 2,625 2,625 23,250 36% Premium Flight ,350 1,350 1, ,250 2,700 2,250 2,700 2,250 19,350 30% Platinum Stripe ,725 2,300 1,150 2,875 2,300 2,875 2,300 2,300 2,300 21,275 33% Total revenue - 2,975 3,725 6,075 4,775 4,450 5,275 6,425 8,200 7,175 7,625 7,175 63, % Cost of Goods Sold 2 Basic Night ,440 12% Premium Flight ,160 8% Platinum Stripe ,440 7% Total COGS ,080 1,680 1,200 1,200 1,320 1,680 2,160 1,920 2,040 1,920 17,040 27% Gross profit - 2,135 2,645 4,395 3,575 3,250 3,955 4,745 6,040 5,255 5,585 5,255 46,835 73% Expenses 2 Auto or truck lease - - 0% Depreciation ,933 6% Gasoline & fuels - - 0% Insurance - bonding ,200 3% Insurance - vehicle ,650 3% Interest - equip & start up ,536 2% Marketing ,800 3% Office - rent - - 0% Office - insurance - - 0% Office - telephone % Office - utilities - - 0% Payroll - not owner and not in ,712 6% COGS Payroll taxes (9%) 6 & % Permits % Supplies - - 0% Tax service - - 0% Telephone - cellular ,200 2% Start-up expenses % - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% Total expenses 325 1,153 1,152 1,356 1,355 1,354 1,574 1,620 1,777 1,776 1,774 1,773 16,990 27% Taxable profit (loss) 1 (325) 982 1,493 3,039 2,220 1,896 2,381 3,125 4,263 3,479 3,811 3,482 29,845 47% Tax (expense) benefit 1 (537) (1,789) (2,442) (2,693) (7,461) -12% Owner's withdrawals % Net profit (loss) (325) ,039 2, ,381 3,125 1,821 3,479 3, ,384 35% Depreciation ,933 Equipment purchases 3 (21,450) (21,450) Principle, equipment loan 7 17,500 (145) (146) (147) (148) (150) (151) (152) (153) (155) (156) (157) 15,840 Repay debt financing 7 5,000 (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) 2,708 Owner contribution Equity investor Net cash flow ,041 2, ,379 3,122 1,817 3,474 3, ,415 Cash, period start ,711 2,670 5,711 7,931 8,038 10,418 13,540 15,356 18,830 22,634 - Cash, period end 725 1,711 2,670 5,711 7,931 8,038 10,418 13,540 15,356 18,830 22,634 23,415 23,415 The accompanying assumptions are an integral part of this financial statement.