BOWL. EAT. DRINK. DANCE. PROMOTION Awareness Campaign Affiliation with University Clubs Bowling...
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Transcript of BOWL. EAT. DRINK. DANCE. PROMOTION Awareness Campaign Affiliation with University Clubs Bowling...
BOWL. EAT. DRINK. DANCE
PROMOTION
• Awareness Campaign
• Affiliation with University Clubs
• Bowling Leagues
• Host Beer nights
• Host local DJs
• Social Media
Level 1
Level 2
CAPITAL BUDGETLeasehold Improvements
200,000
Bowling equipment 150,000
Electronic Equipment 15,000
Furniture and Fixtures 70,000
Total 435,000
FINANCIAL BUDGET
Bank Debt 250,000
Equity 200,000
1 2 3 4 50
20
40
60
80
100
120
140
10096
106111
116
8689 88 88 88
Net Income Breakeven
Year
Nu
mb
er
of
Cu
sto
me
rs p
er
da
y
NPV =
IRR= 41.6%NPV= 187,138
Average 5 year Net Income =
HOW DOES NEON BREAK EVEN?
FEASIBLE?
BOWL. EAT. DRINK. DANCE
By Kelsey Moreau
HOW SENSITIVE ARE THESE PROFITS?
Customers/dayAverage 5 year
Profit Net Payback IRR Compensation
80 (19,514.00) (97,995.00) -41% 55,191.00
90 34,745.00 333,764.00 12% 88,742.00
100 84,492.00 754,401.00 41% 149,620.00
110 134,240.00 1,175,037.00 66% 202,865.00
120 183,988.00 1,595,674.00 89% 256,110.00
Price/Customer
Average 5 year Profit Net Payback IRR Compensation
$15.00 (155,617.00) (1,202,062.00) % 55,191.00
$20.00 (19,514.00) (97,995.00) -41% 55,191.00
$25.00 84,492.00 754,401.00 42% 149,620.00
$30.00 183,988.00 1,595,674.00 89% 256,110.00
$35.00 283,483.00 2,436,947.00 134% 362,601.00
Bowling40%
Food25%
Liquor35%
Revenue Breakdown
Accounting and Legal
2,500 2,563
2,627
2,692
2,760 Advertising (Marketing)
3,000 3,075
3,152
3,231
3,311 General Supplies
1,000 1,025
1,051
1,077
1,104
Insurance
5,000 5,125
5,253
5,384
5,519 Telephone
1,200 1,230
1,261
1,292
1,325
Utilities
45,000 46,125
47,278
48,460
49,672 Repair and
Maintenance 5,000 5,125
5,253
5,384
5,519
Rent 250,000
256,250
262,656
269,223
275,953
Wages 217,580
220,994
242,795
260,114
279,027
Employee Benefits (salaried)
4,095 4,197
4,302
4,410
4,520 Employee
Benefits (wages) 23,394 23,696
26,561
28,795
31,248
Misc. Variable Costs % Sales
2,250 2,214
2,496
2,687
2,891 Capital Cost
Allowance 15,000 27,750
23,663
20,319
17,575
Debt Interest
17,500 16,522
15,475
14,355
13,156 Total Operating
Expenses 592,519
615,891
643,823
667,424
693,580