Cluster PM101 Team 4 P2 final

“Actively keeping you active”
PM101 Team 4:
Eric Bracco
Domenico J Donofrio
Brad Hosmer
David Lane
Steven Turner
April 10th, 2016
Paul Benedict
Jamie Lambert
Lori Marchese
Scott Wright

Memo of Transmittal
To Copeland Associates
From: PM101 Team 4
Eric Bracco
Domenico Donofrio
Brad Hosmer
David Lane
Steven Turner
Date: April 10, 2016
Subject: Final Deliverable
King County Sports Zone was written for the PM 101 Cohort Managers. The purpose of this transmittal document is to
present the managers with our business concept. From doing weeks of research and analysis Team 4 of PM 101 has
determined that our concept of King County Sports Zone will not be feasible.
The business concept’s feasibility was formulated by:
The potentials customer we may get with an Indoor Sports Facility.
How much it would cost to operate our business.
Our NPV, IRR and payback period.
During our research, we:
Researched the demand for an indoor sports complex in Washington.
Determined the competitors in the Kirkland, Washington and Seattle, Washington area.
Determined the feasibility of starting an indoor sports complex.
In conclusion, King County Sports Zone is not a feasible project in the given requirements but this project could have
potential to work in the future. If given a longer time frame King County Sports Zone would have received enough business in
5+ years to be a successful project. With a negative NVP and IRR less than the WACC, the project should not be accepted at
this time.
We would like to thank all of the Copeland Associates that were able to help us on this project. We have truly enjoyed
researching and learning about this industry, and would be more than willing to discuss our report further or answer any
questions that may come about. Furthermore, we would like to thank you for this excellent opportunity and for your time and
we hope you enjoy the final report.
Sincerely,
Team 4
Eric Bracco
Domenico Donofrio
Brad Hosmer
David Lane
Steven Turner
Intro Business
Concept
Location Demand
Forecast
Marketing Operations MIS Financials Conclusion Ref. &
Append

Executive Summary
The purpose of this report is to research and analyze the feasibility of an indoor sports complex in Kirkland,
Washington. The youth sports and general sports participation in Kirkland is very promising for a start up company
such as King County Sports Zone.
Main Focus
The team began the project by looking into the indoor sports complex industry. From research the team concluded that
the sports complex industry has high potential with the amount of people in the United States who play sports. Second,
we looked into the economic and demographic factors of different cities in the U.S. From the research we determined
that Kirkland, Washington would be a logical location for this project due to the high youth population, high disposable
income, and high interest in sports in the area. The main reason our team believed that King County Sports Zone could
be successful is the growth rate of youth sports participation, with projected industry growth of 4% (First Research
2016).
King County Sports Zone is an indoor sports complex that can offer children a place to play multiple
sports in one complex.
The facility will offer rental of fields and courts, and allow customers to see when the facility can be
rented or is not available to rent. All rentals will be booked on our website and will allow people to get
an in-depth look at what our facility offers.
Our location is Kirkland is very critical to the success of King County Sports Zone with many AA
Basketball and Youth Soccer leagues in the area, much of our revenue could come from these
organizations hosting tournaments in our facility. Kirkland is located one hour Northwest of Seattle.
The location in Kirkland allows people who do not want to have to drive to Seattle for sports, an
opportunity to do so closer to home.
To further our research on the feasibility of an indoor sports complex in Kirkland, we created demand scenarios for our
basketball courts, field turfs, and summer camps to predict King County Sports Zone’s yearly revenues. These
scenarios came from calling comparable indoor sports complexes that had basketball court and field turfs. An
additional demand scenarios we created from Facebook Analytics to determine our potential reach in the Kirkland area.
Based off the weighted averages from comparing 4 other businesses we have determined that King
County Sports Zone can expect 23 basketball court rentals per week, 33 fieldturf rentals per week, and
196 campers per week during our 8 weeks of summer camps.
Kirkland, Washington was also a very logical location based off the limited number of competitors in
the area. Within an hour of Kirkland, we have determined there are only 2 true competitors. From this
we have determined that we will have a projected market share of 33%.
Conclusion
We have come to the conclusion that King County Sports Zone will not be feasible in the time frame given by
Copeland Associates, however given more time the project could be feasible. After figuring our financial statements,
we found that our net present value is $-572,289, the IRR is less than the WACC and the payback period is 5+ years.
King County Sports Zone is not feasible due to the extremely high startup costs of running an indoor sports complex.
Intro Business
Concept
Location Demand
Forecast
Append

Table of Contents
Introduction Page 1
Business Concept Page 2-4
Location Page 5
Demand Forecast Page 6-10
Marketing Page 11-14
Operational Assumption/Needs Page 15
MIS Page 16
Financials Page 17-18
Conclusion Page 19
Appendix A : Pestle and Porters 5 Forces Page I
Appendix B : Youth Soccer Leagues Page II
Appendix C : Youth Basketball Participation Page III
Appendix D : Concept Page IV
Appendix E : Floor Plan Page V
Appendix G : Location Page VII-IX
Appendix H : Local Competitors Page X-XII
Appendix I : Local Market Analysis Page XIII-XV
Appendix J : Demand Charts Page XVI-XVII
Appendix K : National Competitors Page XVIII-XIX
Appendix L : Competitor Comparables Page XX-XXIV
Intro Business
Concept
Location Demand
Forecast
Append
References Page 20-23
Appendix F : Business Model Canvas Page VI

Appendix M : Promotional Materials Page XXV-XXVII
Table of Contents
Appendix N : Online Presence Page XXIX
Appendix O : Job Description Page XXX-XXXI
Appendix P : Interview Questions Page XXXII
Appendix Q : Visio Business Process Model for Field and Court Rentals Page XXXIII-XXXIV
Intro Business
Concept
Location Demand
Forecast
Append
Appendix R : MIS Triangle Page XXXV
Appendix S : Financials Page XXXVI-XLI

List of Figures and Images
Figure 1 - Youth Sports Participation Page 1
Figure 2 - Participation in Sports Page 1
Figure 3 - Basketball Courts Page 3
Figure 4 - Turf Fields Page 3
Figure 5 - Kirkland Satellite View Page 5
Figure 6 - Kirkland, Washington Page 5
Figure 7 - Basketball and Volleyball Court Demand Page 6
Figure 8 - Turf Field Demands Page 6
Figure 9 - Summer Camp Demands Page 6
Figure 10 - Total Projected Demand from Rentals Page 6
Figure 11 - Current Demand Page 7
Figure 12 - Scaled Back Demand Page 7
Figure 13 - Facebook Analytics Page 9
Figure 14 - Demand Based off Facebook Page 9
Figure 15 - Weighted Demand Forecast Page 10
Figure 16 - Marketing Mix Page 11
Figure 18 - Snapchat Tools Page 12
Figure 19 - Website Rentals Page 13
Figure 20 - Marketing Cost Year 1 Page 14
Figure 21 - Marketing Breakdown Page 14
Figure 22 - Marketing Cost after Year 1 Page 14
Intro Business
Concept
Location Demand
Forecast
Append
Figure 17 - King County Sports Zone Facebook Page Page 12

Figure 23 - Cost of MIS Software and Uses of Software Page 16
Figure 24 - Key Performance Indicators Page 16
Figure 25 - Total Expenses Page 17
Figure 26 - Key Financial Numbers Page 17
Figure 27 - Revenue Growth Page 17
Figure 28 - Net Income for First Year Page 18
Figure 29 - Return on Equity Page 18
Figure 30 - Net Profit Margin Page 18
Figure 31 - Return on Assets Page 18
Figure 32 - Youth Soccer Page II
Figure 33 - Youth Soccer Population Page II
Figure 34 - Team Sports Participation Page III
Figure 35 - Basketball Participation Page III
Figure 36 - Time Spent on Leisure and Sports Page IV
Figure 37 - Industry Growth Page IV
Figure 38 - Facility Floor Plan Page V
Figure 39 - Map of Schools Close to Our Location Page VII
Figure 40 - Number of Population 6-11 Years Page VIII
Figure 41 - Number of Population 12-17 Page VIII
Figure 42 - Number of Households with Income between $100,000-$124,999 Page VIII
Figure 43 - Kirkland Sports Participation Page VIII
Figure 44 - Kirkland Female Population Page IX
Intro Business
Concept
Location Demand
Forecast
Append

Figure 45 - Kirkland Male Population Page IX
Figure 46 - Kirkland Population by Race Page IX
Figure 47 - Local Competitor Competition Page XI
Figure 48 - Local Competitors Page XII
Figure 49 - Distance from Local Competition Page XII
Figure 50 - Family Income Distribution in Kirkland, WA Page XIII
Figure 51 - Household Income and Participation Among Sports Page XIII
Figure 52 - Kirkland Area Outdoor Parks Page XIV
Intro Business
Concept
Location Demand
Forecast
Append
Figure 53 - Kirkland Family Income Segments Page XV
Figure 54 - Court Demand Page XVI
Figure 55 - Turf Field Demand Page XVI
Figure 56 - Summer Camp Demand Page XVII
Figure 57 - Square Footage and Population Page XVIII
Figure 58 - National Competitor Competition Page XIX
Figure 59 - Competitor Comparables Page XX
Figure 60 - Competitor Comparables #2 Page XI
Figure 61 - Competitor Prices Page XXII
Figure 62 - Incrediplex Page XXIII
Figure 63 - Insports Page XXIII
Figure 64 - Body Zone Sports Page XXIII
Figure 65 - Legends Sports Complex Page XXIV
Figure 66 - Rochester Sports Gardens Page XXIV

Figure 67 - Sporsplex Page XXIV
Figure 68 - Promotional Design Page XXV
Figure 69 - Flyer Comparison Page XXV
Figure 70 - Brochure Model Page XXVI
Figure 71 - Facebook Header Page XXVII
Figure 72 - Banner Page XXVII
Figure 73 - Homepage ½ Page XXIX
Figure 74- Homepage 2/2 Page XXIX
Intro Business
Concept
Location Demand
Forecast
Append
Figure 75 - About US Page XXIX
Figure 76 - Gallery Page XXIX
Figure 77 - Contact Us Page XXIX
Figure 78 - Facility Manager Page XXX
Figure 79 - Front Desk Receptionist Page XXX
Figure 80 - Floor Team Page XXX
Figure 81 - Custodian Page XXXI
Figure 82 - Summer Camp Counselor Page XXXI
Figure 83 - Business Process Model Part 1 Page XXXIII
Figure 84 - Business Process Model Part 2 Page XXXIV
Figure 85 - MIS Triangle Page XXXV
Figure 86 - MaxGalaxy Startup Price Page XXXV
Figure 87 - Loan Amortization Schedule Page XXXVI
Figure 88 - Long-Term Asset Depreciation Table Page XXXVI

Figure 89 - Year One Income Statement Part 1 Page XXXVII
Figure 90 - Year One Income Statement Part 2 Page XXXVIII
Figure 91 – Year 1 Cash Flows Page XXXVIII
Figure 92 – 5 Year Income Statement Page XXXIX
Figure 93 – Corporate Tax Rates Page XXXIX
Figure 94 – Capital Budget Analysis Page XL
Intro Business
Concept
Location Demand
Forecast
Append
Figure 95 – Balance Sheet Page XL1

Introduction
With all the new technology and video games, todays
parents are worried that children do not get enough
exercise and spend too much time indoors. About one
in three U.S. children and teens are overweight or
obese, which is triple the rate of the previous
generation (First Research 2016).
Our indoor sports complex will attract sports teams
and young kids that want to play and be active. With
kids being active at an early age, the need to stay
active will stay with kids as they grow up.
Following the success of the World Cup, soccers
popularity is on the rise in the U.S. Youth
participation has increased tremendously over the last
40 years. There were 103,432 children registered to
play soccer in the U.S. in 1974, 1.6 million children
registered to play in 1990, and more than 3 million
registered to play in 2014 (Reddy, 2015). This is a
34% increase over that period of time.
Kirkland, Washington will be the location of King
County Sports Zone. Located in the suburbs of
Seattle, Kirkland is a community with a high
disposable income, with the average household
income in Kirkland being $90,611. In addition, 46
schools are located within 10 miles of our facility
making it a very attractive location for our indoor
sports complex. With so many schools being in close
proximity, it will be easy for kids to get
transportation.
The biggest advantage that Kirkland has over many
cities comes in the $200,000+ income bracket.
Kirkland more than doubles the national average
among 3 and 4 person married families, and holds a
significant lead over the averages in 5 person married
families. Kirkland also triples the national average
among 3 and 4 person single families (Simply Map,
2016).
Indoor sports facilities are a growing industry with
more and more children playing AAU and travel
sports. Because of this, there is more of a need for
facilities like the King County Sports Zone to host
tournaments and events (IBISWorld, 2016).
For more information on Pestle and Porter's 5
Forces, see Appendix A
1
Figure 1: Youth Sports Participation
Source: ESPN.com
Figure 1 Summary: The youth sports industry can be very
profitable, with over 21.5 M children playing on a sports team
between the ages of 6-17. This doesn’t take into account younger
kids who started team sports at a earlier age. With our indoor
sports complex we hope that youth participation in sports will
continue to increase.
Figure 2: Participation in Sports
Source: IBISworld
Figure 2 Summary: The graph above shows the
participation in sports. The percentage of those who play
sports is projected to increase for the next 4 years and
beyond. This is key because in order to be a successful
business we need people that are interested in sports.
Although, this percentage is not only youth we also need
the parents support.
For more information on Youth Sports Participation
please view Appendix B : Youth Soccer Leagues and
Appendix C : Youth Basketball Participation
Intro Business
Concept
Location Demand
Forecast
Append

Concept
2
We chose the colors red, blue and yellow for our logo. The
reason we chose red is because it shows energy, passion, and
action. The color blue shows integrity and loyalty. Lastly, we
chose yellow because it stimulates happiness and cheerfulness
(Understanding the Meaning of Colors in Psychology n.d.).
The main target of King County Sports Zone is children ages 6-
14. Individual people that the complex will be target includes
AAU teams and the local soccer league, Lake Washington Youth
Soccer Association. These two organization have very close ties
to the Kirkland community and hosting them in King County
Sports Zone would be a great addition.
● Allows children to learn new sports and how to play them
safely
● Builds friendships with kids the same age interested in the
same sports
● Allow children to learn a variety of sports
● Keeps children active in hopes to reduce childhood obesity
● Promotes the growth of sports in the Northwest region
Benefits to Children
Main Target
Logo
Color Pallet
Features include
● Soccer field(s)
○ Can be repurposed into indoor football or
lacrosse field
● Basketball court(s)
○ Can be repurposed into volleyball court.
The full facility will have air conditioning and heating
Indoor Sports Complex
Vision Statement
To provide the people in the greater Kirkland, Washington
area with a central location where they can participate and
spectate their favorite sports year round in the comfort of
our indoor facility.
Why an Indoor Sports Complex
Currently in the Seattle area, a lack of basketball courts
exists to host AAU and other basketball tournaments. The
Seattle area AAU is the WESCO AAU in North Puget
Sound which is an hour south of Kirkland. The WESCO
AAU currently only has one gym. This facility, Arlington
High School in Arlington, Washington is used for team
practices and to host tournaments. This is where King
County Sports Zone files the void of court shortages. With
the addition of King County Sports Zone we hope to
increase the amount of gyms that WESCO AAU has
available to them (WESCO AAU , n.d.). From doing
further research, the Seattle area has many gyms available
but they are mainly for one on one instruction.
For more indepth information on our Concept potential
please refer to Appendix D : Industry Analysis.
Mission Statement
Utilize our facility to provide exceptional service in the
indoor sports industry. To provide our community with fun
and memorable experiences whilst ensuring only the highest
level of safety.
Intro Business
Concept
Location Demand
Forecast
Append

Concept cont.
The turf field will be host camps, leagues, and tournaments.
The turf field can be used for flag football, soccer, and
lacrosse. These fields can also be rented for practices and
birthday parties. The versatility of the turf field makes it easy
to switch between the different sports, by only switching the
goals. During the offseason for soccer, there will be
tournaments and leagues so players can stay in shape. When
you rent a turf field, the footballs, soccer balls and lacrosse
equipment will be provided. We do not allow metal spikes on
these fields so please do not wear them. Soft spikes only.
Rental Price for Turf Fields : $166 an hour
3
Figure 3: Basketball Courts Source: Sportsplex
Figure 4: Turf Fields Source: Nova Field House
Court Rentals
Turf Rentals
Intro Business
Concept
Location Demand
Forecast
Append
At King County Sports Zone we plan to have 4 high school
sized basketball courts, and 2 indoor turfs fields. The
basketball courts will be used to host basketball camps,
basketball leagues, volleyball, and possibly AAU
tournaments for the people of Kirkland and the surrounding
areas. The basketball courts can be repurposed into
volleyball courts by inserting two volleyball poles and a
net into the floor. The courts can also be rented out for
birthday parties or for team practices throughout the year.
Basketballs will be provided to those that need them. An
example of our basketball court setup can be seen on the
right.
Rental Price for Courts: $55 an hour
Figure 3 and 4 Summary: Figures 3 and 4 show examples
of what the fields and courts would look like in our facility.
For information about the floor plan, see Appendix E:
Floor Plan

Concept cont
4
Leagues
Various sports leagues will be offered during the different
seasons. In the fall, we will offer basketball leagues for
teams looking to get a head start on the season that is
upcoming. In the summer, we will be hosting leagues for
all sports, basketball leagues for those looking to just play
more games, volleyball leagues for those looking to get
ready for the season, soccer leagues for those teams also
looking to get ready for the season. During winter break
and spring break, we will offer flag football leagues for
kids to learn how to play football in a safe way.
Camps
Camps will be offered for all ages. These camps will
mainly occur during the summer months when kids
have ample time and are on summer break. Another
good time for kids camps would be during winter
break when the kids are also looking for something to
do. The main camps that will be offered are
basketball, volleyball and soccer. In the summer, we
will have 8 weeks of camps offered, with them lasting
5 hours a day.
One on One Instruction
One on One instruction will be offered for all ages,
genders and for all sports. These one on one instruction
will be for those who are more advanced in sports and or
for those looking to improve their game on a daily basis.
Various trainers will work with athletes to improve skills
such as footwork, strength, and skills needed to compete
well in each sport.
Economic Benefits
The concept could also help the city of Kirkland. Since the
complex will have multiple turf fields and basketball courts, it
has the opportunity to host many tournaments. The tournaments
in hope would increase exposure for the city and further help the
Kirkland’s economy. If multiple out of town teams are playing
in Kirkland many local hotels and restaurants would receive
business from the teams and their families.
Air Conditioning
The best part of our facility is that is has full air conditioning.
This means that the courts won’t have condensation on them
from warm humid temperatures. Many indoor sports complexes
around the country do not have air conditioning. With our full
air conditioning in our facility you will not dread coming to the
gym and playing a game of basketball during the summer
months.
Peak Hours
Over the course of the day our peak hours with kids will be
from 4 pm-9 pm, once the kids are done with school. During
this time is when we expect a lot of practices and field rentals to
occur. On the weekend, we expect to have people at our facility
as soon as we open. Some will be for practices, others for one
on one instruction. During the school year, the hope is that some
adults will take a lunch break at our facility and play some
basketball with co-workers.
Tournaments
Kirkland, Washington also has a high amount of
youth AAU basketball teams, and has three youth
soccer leagues in the area. With the addition of 4
basketball courts and 2 turf fields, we will be looking
to host tournaments for these organizations. With the
ample space in our facility, we have the capability to
host 2 separate tournaments at the same time.
Prices
Rental Basketball Court : $55 per hour
Rental Turf Field : $166 per hour
Summer Camps : $137 per week
For more on our business please refer to Appendix F:
Business Canvas Model.
Intro Business
Concept
Location Demand
Forecast
Append

Location
Population : 85,763 (United States Census Bureau 2016).
Median Household Income: $90,611 as of 2014 (United States
Census Bureau 2016).
Why Kirkland: Kirkland is like a very logical location for our indoor
sports complex because of the high population of youth in the area as
well as a high population of sports interest in the area (Simply Map,
2016). For more locational information, please refer to Appendix
G: Location.
The location in Kirkland is located near 46 schools and also very close
to a mall this is a good area and a high volume area for children.
5
Figure 6: Kirkland, Washington
Source: Google Maps
Figure 5: Kirkland Satellite View Source: Google Maps
Figure 5 Summary: This figure is a satellite view of our
targeted location. The warehouse that we have selected is circled
in blue. As you can see in the figure, the facility is located just
seconds from interstate 405 and also backs ups to a large
residential area, and is just 8 minutes from nearby Juanita High
School. The location is also very close to Totem Lake Mall (also
circled in blue) and several restaurants; these nearby businesses
could help to increase foot traffic around our location.
12521 128th Lane NE, Kirkland, WA, 98034
63,746 square feet
Rent: $63,746. $1 a square foot.
30 foot ceilings
212 parking spaces
Easy access from the 405 - the major highway in
Washington
Located on a main road with easy in and out access
(loopnet.com, n.d.).
46 schools within 10 miles of the location including
24 early childhood and elementary schools and 12
middle/junior high schools (Google Maps, 2016).
The Facility
Kirkland, Washington 98033
For more information on the location and the
facility please view Appendix H : Local
Competitors and Appendix I: Local Market.
Local Mall
Our Facility
Intro Business
Concept
Location Demand
Forecast
Append
Figure 6 Summary: From research, the team felt as
though Kirkland, Washington would be a great
location for an indoor sports complex. Kirkland is a
suburb of Seattle which has a very large population
of youth looking to play sports. The area is booming
with high amounts of AAU teams and Youth Soccer
tea. With the addition of the Indoor Sports Complex
we hope to provide that opportunity to the youth.

Demand Forecast #1
6
Figure 8: Turf Field Demands
Figure 7: Basketball and Volleyball Court Demands
Figure 9: Summer Camp Demands
King County
Sports Zone
Square
Footage
Population 6-17
Population
Projected
Sales Per
Quarter
Kirkland, WA 63,746 85,763 4,304 $101,309
Figure 10: Total Projected Demand from Rentals
For more information please view Appendix J: Demand Charts, Appendix K : National Competitors,
and Appendix L: Competitor Comparables
King
County
Sports
Zone
Square
footage Population
6-17
Population
Projected
Rentals
Per Week
Projected
Rental
Price Per
Hour
Projected
Sales Per
Week
Projected
Sales Per
Quarter
Kirkland,
WA
63,746 85,763 4,304 27 $55 $1,485 $19,305
King
County
Sports
Zone
Square
footage Population
6-17
Population
Projected
Rentals
Per Week
Projected
Rental
Price Per
Hour
Projected
Sales Per
Week
Projected
Sales Per
Quarter
Kirkland,
WA
63,746 85,763 4,304 38 $166 $6,308 $82,004
King
County
Sports
Zone
Square
footage Population
6-17
Population
Projected
Rentals
Per Week
Projected
Rental
Price Per
Hour
Projected
Sales Per
Week
Projected
Sales Per
8 Weeks
Kirkland,
WA
63,746 85,763 4,304 226 $137 $30,962 $247,696
*Please note that in our finances these numbers will not be included until the 2nd and 3rd quarters. ⅓ of
the profits from the summer camps will be in the 2nd quarter revenues and the remaining ⅔ will be in
the 3rd quarter revenues. These camps are only run in the months of June, July and August.
Intro Business
Concept
Location Demand
Forecast
Append

Scaled-Back Demand
7
Sports Current Weekly Demand
Basketball Courts 27
Turf Fields 38
Summer Camp Demand 226
Figure 11: Current Demand
Sports Current Weekly Demand Scaled Back
Rounded to nearest full person
Basketball Courts 27/1.15 = 23
Turf Fields 38/1.15 = 33
Summer Camp Demand 226/1.15 = 196
Figure 11 Summary: From doing a sizable amount of primary research we know that the potential
for a high demand is out there. Being we are a start-up business, we understand that the demand will
likely be much less. On average a start up business like ours makes 2-3 times less than the established
businesses we have been calling (Ugor, n.d.). An indoor sports complex is an established industry
but King County Sports Zone is not established.
Figure 12: Scaled Back Demand
Figure 12 Summary: According to an article by Michal Ugor, startups make 2-3 times less than
established businesses and that is part of the reason a lot of startups fail (Ugor n.d.). King County
Sports Zone is in an area with high disposable income, the teams feel as though scaling our demand
back by 1.15 is the most appropriate thing to do in this case. The original numbers are some that the
company could potentially expect in year 3 or 4, not in year one. The team felt that 1.15 was a good
number to use because of the fact we are an established industry but we are also a new business that
might take some time to grow.
Intro Business
Concept
Location Demand
Forecast
Append

8
Demand Forecast #1 cont.
Price Equation
Rental Equation
Legend Sports and Incrediplex seem to be the most
similar to us when it comes to field rentals. Indianapolis
and The Woodlands are very high income areas, and
have high populations of kids aged 6-17.
On the other hand Sportsplex is the least like us. They
are located in Dallas which has a very high level of
competition, and the weather is nice enough most days
out of the year to play in grass outside.
Wilson’s fitness center in Columbia, MO is the middle
of pack when it comes to turf fields. The price for the
Columbia, MO location was also odd that it was set at
1.5 hours per rental.
Benchmarking for Turf Fields
Price = (price per hour per each business * weighted
average of each business)
Do for all companies and then add them
together to get our prices for rentals
Benchmarking for Courts
Sportsplex in Dallas, Texas has the most competition
among our comparables. If you do a google search for
indoor sports complexes in Dallas, Texas almost 40
different complexes are in the area. This would be why
the Dallas location we have found demand for doesn’t
have very many rentals during the week and the square
footage of the facility isn’t very big.
Our facility may be big but when looking at other
options in Kirkland, the smaller facilities were actually
more expensive. The rentable space available in our
building is 121,912 square feet (Jerue, April 5). We
chose to rent 63,746 square feet because of the cost to
install the courts and fields.
Total Sports Experience is a good comparable in this
case because of the square footage being similar.
Rochester, NY is also an area with very high disposable
income. Body Zone and Wellness is also very
comparable to our location because the square footage
and population are very similar as well.
The prices are all about the same when it comes to
renting basketball courts. Sportsplex in Dallas may have
slightly higher numbers because they have so much
competition in the area.
Benchmarking for Summer Camps
Legends and Insports were very similar to each other for summer
camps, and also the most similar to us. Both areas have very high
disposable income just like Kirkland, WA. With these areas
being similar to us, we think it is feasible to get similar camper
numbers to that of the two locations.
Wilson’s and Pinnacle are the least like us when its comes to
summer camps. Both locations have issues attracting people to
their summer camps hence the high cost.
Overall
At the end of the day, the demand numbers we found are very
encouraging. As a start up we realize that our demand is going to
less than the established businesses we have contacted, but the
room for growth is definitely there.
Intro Business
Concept
Location Demand
Forecast
Append
Rental = (rental per week per each business * weighted
average of each business)
Do for all companies and then add them
together to get our expected number of rentals

Demand Forecast # 2
9
Facebook Analytics
Data: Facebook Analytics, .n.d.
Potential Customers on Facebook / 67% of people on Facebook
worldwide = # of people in Kirkland, WA meeting our demographic and
interest search
9,000 /.67 = 13,433
Number of people in Kirkland meeting our demographic search / Number
of Competitors (including us) = Market share
13,433/3 = 4,478
Average Price of Rentals * Market Share = Sales
Figure 14: Demand Based off Facebook Source: Facebook Analytics
Potential
Customers
on
Facebook
Percentage
of
Population
on
Facebook
Number of
People in
Kirkland
Meeting our
Demographic
Search
Number of
Competitors
Market
Share
Average
Price of
Rentals
Sales
9,000 67% 13,433 2 4,478 or
33%
$84 $376,152
Equations
Facebook Summary
Facebook analytics is a helpful tool to determine demand. Although, not
every American is on Facebook roughly 67% of the population is on
Facebook according to Paul Benedict.
In our area we do not have that many true competitors, the only
competitors we need to worry about is Starfire Sports, located in Seattle.
The distance may help us take away from some of their market share but
Starfire Sports may also have loyal customers who might want to stay
with Starfire Sports even if King County Sports Zone is a closer location.
From the analytics our reach is potentially 13,433 people. We understand
that not everyone is on facebook so that number is a ballpark range. This
number could be greater or less depending on the number of people using
facebook in the area.
Intro Business
Concept
Location Demand
Forecast
Append
Figure 13: Facebook Analytics Source: Facebook

Weighted Demand Forecasts
10
Figure 15 Summary : Our primary research came from
seven multi-sport complexes already in the industry. The
seven multiple sports complexes we were able to get data
from is Insports Centers, Incrediplex, Wilson’s Fitness
Center, Body Zone Sports and Wellness, Pinnacle, Legends
Sports Complex, Sportsplex, Rochester Sports Garden, and
Total Sport Experience. All of these facilities have been
around for many years and have been very successful. We
rated our primary data at a very high mark, 80%. The
primary data we have been receiving from these businesses
have been very good and from hearing from multiple
businesses this was the way to go when it comes to
predicting demand.
Our secondary research came from Facebook Analytics.
We ranked our secondary research at a much smaller mark,
20%. The numbers from Facebook are very good
secondary data but just because people have a Facebook
and like these sports does not mean they will come to our
facility. Over 9,000 people ages 18-65 had an interest in at
least one of the sports we offer. Although, the number
from our secondary demand seemed higher for rentals,
which is mostly due to our reach being bigger the demand
we are more likely to see is what our competitors told us if
not a little less being we are a start up. An additional
reason our secondary data is weighted much less than our
primary data is most of the users of Facebook are not in
the 6-14 age range that we have will be targeting with our
business.
# of Rentals per
week
Weight Weighted Average # of
Rentals per week
Primary Demand 65 80% 52
Secondary Demand Forecast 86 20% 17
Total 151 100% 69
Figure 15: Weighted Demand Forecast
Intro Business
Concept
Location Demand
Forecast
Append

Marketing
11
Product
Place
The product offered from King County Sports Zone is the
facility itself. The business is not selling a product, but rather,
selling our space for rentals and usage. That space includes two
200 X 85 foot borderless turf fields and four basketball 84 X 50
courts. Each will be available for rental in several different
capacities with varying prices. Those include walk
in/independent rentals, team and/or league rentals through
contracts, birthday party rentals, and tournament rentals.
The King County Sports Zone will be located in Kirkland
Washington. Kirkland is northeast from Seattle, about an hour
drive. Kirkland is an ideal place for the King County Sports
Zone because it’s heavily populated with children that
participate in sports. The city is populated with 48,157 residents
with around 16,000 are under the age of 18 (United States
Census Bureau). Also another reason we put King County
Sports Zone in this area because it is has high disposable
income per household. The median income in our selected area
per household is $90,611. Our location is also ideal for King
County Sports Zone because it is surrounded by 46 schools in a
10 mile (Google Maps). These schools will need facilities for
their sports teams to practice and play on. King County Sports
Zone hopes to help provide services for these schools and other
local independent teams.
Price
Promotion
The King County Sports Zone will promote itself through
different advertisements and sponsorships. There are many
local schools around the area that King County Sports Zone
will be located. These schools’ booster clubs offer to
advertise our business for a affordable price. These
advertisements include banners or posters posted around the
football stadium and basketball court. They also include flyers
that can be distributed at the games and at the school. King
County Sports Zone will also offer sponsorships that local
businesses can buy. These sponsorships are not costly and
will help generate a little extra revenue. Also with more
sponsorships with these local businesses they can help with
promoting brand recognition. With more sponsorships more
people will know what King County Sports Zone is.
Prices have been determined after researching and
contacting multiple and comparable businesses like King
County Sports Zone. Rental Basketball Court : $55 per
hour. Rental Turf Field : $166 per hour. Summer Camps :
$137 per week.
Advertisements
To market to the local residents of Kirkland, King County
Sports Zone will create several different types of
advertisements. Specifically King County Sports Zone can
create flyers and brochures that can be distributed by local
businesses and schools. They can be distributed at their sporting
events or at the school itself. King County Sports Zone will also
offer local businesses the opportunity to advertise inside our
facility and become one of our sponsors. Also, the facility can
offer these businesses around $500 to put their advertisements
on our courts or turf fields. Additionally, the facility can offer
around $750 to put their advertisements around the main lobby.
The size of these advertisements will be around 6 ft x 4 ft.
Example of the Flyers and Brochures can be found in
Appendix M: Promotional Materials.
Intro Business
Concept
Location Demand
Forecast
Append
Figure 16: Marketing Mix
Source: http://kimberlycrossland.com/

Marketing cont.
12
Social Media
Facebook Page
Social media presence is a must for a business of any size and
industry, in some form, in this day and age. Social media
represents a free source of advertising, marketing, and customer
engagement and outreach. 92% of marketers agreed that social
media is important for business (Hubspot 2014). Marketers
feel that social media is important is because it creates many
benefits and opportunities. These benefits and opportunities can
help market Kings County Sports Zone. Some benefits and
opportunities that come from social media are increased brand
recognition, improved customer insights, and decreased
marketing costs (Forbes 2014).
Facebook represents a “quick, easy and free way to potentially
reach tons of people” (Forbes 2013) and is a form of social
media that our research has found can be most beneficial to
King County Sports Zone. This is especially pertinent to the
relevant ones, or those who will increase your local involvement
through online engagement. A Facebook page also offers an
unlimited friend count, the ability to advertise, and the usage of
Facebook Insights (Forbes 2013). Facebook Insights is a tool
unique to the Facebook Page format which allows admins of the
page to view “...page likes, or a number of fans, daily active
users, like sources, demographics, page views as well as unique
page views, tab views, external referrers, and media
consumption” (Mashable 2010). The only downside of
Facebook Insights, which should not pose a problem, is that
Insights requires a minimum of 30 likes in order to access the
data it is collecting. An example being a page’s growing fan
base as measured by likes per month as seen in Figure 17
(Mashable 2010).
And while Facebook may not be a monetary investment, a
company will be investing it’s time when using a social media
outlet such as a Facebook Page. That time is about engagement,
or how the company is using the page to interact and
communicate with customers. It’s about investing time into
“conversations and connections that recognize you and
reciprocate the interaction” (Forbes 2013). The intention is to
use the Facebook Page as a direct line of communication, along
with the website to some degree (SEE Appendix M:
Promotional Materials), using it as a medium in which
customers can ask questions, post about their experiences, and
share photos. Ultimately, it helps King County Sports Zone
connect and integrate itself with the surrounding communities.
Snapchat
Snapchat is a very popular mobile app that allows users to
send a picture to other users. That picture will only be
available to view for a set amount of time and once the user
opens it the picture cannot be viewed again. Snapchat also has
a feature called story mode where the user can post a picture
or video for 24 hours for all followers to view. The app is very
popular with a target audience age 13-25 and logs over 400
million messages every day. With snapchat you can also have
unlimited friends. The more people we are able to reach with
our snapchat the more potential customers we are reaching.
(SocialMediaExaminer 2014). King County Sports Zone can
create a snapchat account free of cost. With the snapchat
account we can take our followers behind the scenes at King
County Sports Zone and promote upcoming special events. It
will also give us the opportunity to allow guests to see if our
courts are available for potential pickup soccer or basketball
games.
Figure 17: King County Sports Zone Facebook Page
Source: Facebook
Intro Business
Concept
Location Demand
Forecast
Append
Figure 18: Snapchat Tools Source: Snapsr.com

Marketing cont.
13
TV Commercials
Stadium Ads
Local high schools can contribute to the marketing of
King County Sports Zone through stadium
advertisements. The plan is to reach out to the
respective school’s booster clubs, or “organizations that
is formed to support (e.g. coordinate events, raise
money, etc.) an associated club, sports team, or
organization” (Wikipedia 2016). In collaboration with
these booster clubs, we can put up advertisements
around their football stadiums, basketball courts,
gymnasiums, etc. These advertisements are typically
posters and banners. The pricing for creating and
installing banners can be found in Appendix M:
Promotional Materials.
Flyers & Brochures
Flyers will be posted at all of the 46 local schools in the
area. Our flyer will display our location, phone number,
the sports we offer and the services we have available.
Flyers were chosen as one of our main sources of
promotion as we start our business for a bevy of reasons.
They are “flexible and handheld”, something people can
physically touch and interact with. They also aid in word
of mouth which still ranks a powerful source of
promotion. Flyers also represent an inexpensive and
cost-effective source of marketing (Creative Overflow
2013). Additionally, King County Sports will distribute
a brochure specifically for the kids camp programs we
will have available, listing dates and prices. Prices and
additional details can be found in Appendix M:
Promotional Materials.
Future Developments
In the future at King County Sports Zone we plan to add a few
features. Within the next few years, plan on partnering with a local
food business (ex. pizza shop, sub shop, etc.) as an added feature
for our customers. A percent of sales from said restaurant will be
used as a sort of “lease” payment on a monthly basis. The second
feature that will be added to King County Sports Zone along the
way is a Kids Zone. The Kids Zone is mainly for kids ages 0-5 and
will be a small room that has mini soccer goals, basketball hoops
and WII equipment that younger kids can enjoy while their older
sibling is using our facility. A third feature we plan to offer is more
niche sport tournaments. These will include nerf wars on our turf
fields and dodgeball tournaments also on the turf fields.
Website
An important part of our marketing strategy, as well as establishing
our brand is the development of a website for King County Sports
Zone. All of the other companies we reached out to and researched
had, in varying degrees, a functionally website. Once operational
and published, our website will be easy to navigate and use. It will
feature a tab to view the prices for rentals, as well as inquire about
rental contracts, availabilities, and schedule demands (See Figure
19) . The site also features an about tab that allows you to read our
mission and vision as well as view staff profiles. There will be a
specific place to contact our company, with Google Maps there to
help find our location. There will also be a tab on the site that
shows the services we offer or intend to offer in the future. This
includes summer camps, leagues, and birthdays. There is also a
gallery where we implore customers to send their own pictures that
may be featured on that page as well as the Facebook Page. The
page is very interactive with plans for videos and live streams to be
featured on the homepage, as well the page having links to King
County Sports Zone’s other social medias (Facebook Page, Yelp,
etc.). The link to the site, as well as screenshots from the site, are
featured in Appendix N: Online Presence.
King County Sports Zone has plans to develop a
commercial and put it on a local news station in
Kirkland, Washington called King5. It will cost around
$200.00 for a 30 second commercial depending on what
time slot we pick. (Wagner, n.d.). The commercial will
show off the finished facility as well as the amenities
King County Sports Zone has to offer. Our commercial
will mainly air during the afternoon hours. The
afternoon hours are more affordable than the evening.
Afternoon ads will cost around $150-$300 while
evening hours can cost up to $1,500 (Entrepreneur,
n.d.). This constitutes prime time as for our clientele as
both parents and their kids are home from work and
school respectively.
Figure 19: Website Rentals
Source: KC Sports Zone Website
Intro Business
Concept
Location Demand
Forecast
Append

Marketing cont.
14
Intro Business
Concept
Location Demand
Forecast
Append
Financial Breakdown
For the first year King County Sports Zone’s marketing
budget will consist of 10% of our first year sales. The
location King County Sports Zone will be is surrounded
by little to no competitors. King County Sports Zone is a
new business for this area but it is not a new concept.
For the first year our main focus is to get our name out
and create brand recognition. Most on our budget will be
spent on 225 thirty-second commercial ads that will air
between 12:00 pm - 4:00 pm in the Kirkland area. The
225 ads will be aired and spread throughout the whole
entire year. Our second highest expense will go towards
the banners Fast Signs will create for us. These banners
are a one time expense. After our name is out we can cut
back on marketing. Other indoor sports facilities do little
to no marketing after the first year. For the next 4 years
we will cut our marketing budget down to $5,000 per
year. This money will be spent on repaying specific
booster clubs we want to keep on banners up, creating
flyers and more commercials. As mentioned earlier, the
indoor sports is already an established industry, so
beyond the initial need to create excitement and
awareness of our business, the goal should be stay
relevant and consistent from there on. Our business,
following the initial year or so of heavy advertising,
should see the company gather a strong customer base
that will likely be repeat clients.
Figure 21 Summary: The pie chart above shows where
our advertising was spent in year 1. A majority of
advertising was spent on commercials. Since we are a
new business we have to work hard to promote
ourselves. When we talked to many comparable indoor
sports complexes they said that they currently do not do
much marketing. So, it was difficult for us to find ways
to market but the team felt advertising via commercials
was the best way to get out our name.
Figure 21: Marketing Breakdown
Figure 20: Marketing Costs Year 1
Next 4 Years
Ad Price Quantity Total
Flyers $0.08 1250 $100.00
Commercials $200.00 17 $3,400.00
Stadium Ads $100.00 15 $1,500.00
Final Amount $5,000.00
Figure 22 Summary: As seen above, the market budget
has been scaled down significantly following the first
year of operation. With an established and growing
customer base, the focus will be on being consistent
with our marketing endeavors, with more money
planned to be poured into the facility itself as time goes
on. Additionally, focus will be put on King County
Sports Zone online presences, with our receptionist team
in charge of the content and management of those
mediums. As part of the responsibility of the receptionist
position, 15% of their $10.00 an hour wages are
attributed to time spent doing this work. The online
channels will be the primary focus of retention and
promoting of the facility and corresponding events.
Figure 22: Marketing Costs after Year 1
First Year
Ad Price Quantity Total
Banners $247.00 30 $7,410.00
Flyers $0.08 5000 $388.83
Commercials $200.00 225 $45,000.00
Stadium Ads $100.00 30 $3,000.00
Final
Amount $55,798.83
Figure 20 Summary: Above is a breakdown of the
marketing budget for the first year. As seen above our
budget is much larger in the first year than it will be in
the years after (See Figure 22). With our budget we are
trying to established customer base and create brand
recognition for King County Sports Zone.

15
Operational Assumptions/Needs
Inventory Control
For King County Sports Zone, we will not deal with inventory
control much as other businesses due to our business's’ nature as a
service provider. The only inventory that our business will require
will be small sports equipment (ex. balls, bats, cones, etc.), larger
sports equipment (ex. basketball hoops, soccer goals, volleyball nets
etc.), computers, and office supplies. Outside of office supplies, our
other supplies will be replaced very infrequently and therefore our
business will not deal with inventory control very often. Small
equipment items, such as balls, will be included with rentals as a
luxury for our customers.
Supply Chain Management
For our business, we will not require investment into a
SCM system as the process of ordering new or
replacement sports equipment will be infrequent and
easily handled by a manager or subordinate during their
normal daily tasks.
For more information please view Appendix O: Job
Description & Appendix P: Interview Questions.
Human Resource Projections
King County Sports Zone plans to hire fifteen people.
There will be four receptionists, two on hand at all
times per working hours. They will take an additional
responsibility in handling the website content and
social media pages. We will be looking to hire four
people to help run children's camps. In addition, we
will hire two managers who will split various
responsibilities including finances and human resources
amongst them. The people working the counter and the
camps will be paid minimum wage. During the summer
months, we will have to hire an additional fifteen
people to help run the summer camps. The people we
will be hiring need to be outgoing and good with kids
and they will be dealing with children all day and they
will be doing so for 8 weeks. These summer camp
worker will be paid at a higher rate, they will be paid
$13.00 an hour.One custodian will be working 40 hours
a week, 6 days a week at facility. They will be paid $11
an hour to clean the facility.
Customer Service
At King County Sports Zone we plan to have very
interactive customer service. Our camp instructors will
have to be very upbeat to keep the attention of the
children and our individual trainers will also have to be
very upbeat to ensure these athletes keep wanting to get
better and better and will return to use the facility.
Another thing that King County Sports Zone needs to
do to ensure great customer service is make sure the
rental process on the website goes as planned. If there
is a mistake on the website and a court gets doubled
booked (it shouldn’t because we have an MIS system
for it), give the people a free rental on the day of their
choice. Everyone makes mistakes we just need to own
up to them in a situation like that. During the summer,
the camp counselors need to display excellent customer
service to ensure campers and parents want to come
back. These people have to be funny but yet down to
earth to keep the attention span of children. Something
that is very hard to do.
Hours
Pay Grade
The school year in the state of Washington begins September 1st
and ends June 15th. During this time, the hours of operation will be
2:00 pm-11:00 pm (Lake Washington School District, 2016).
After contacting other indoor sports facilities such as Incrediplex
and InSports, it was clear that, while school is in session, there is
very little reason to be open. 2:00 pm represents an early enough
time for some of the younger customers who are getting out of
school and staying open till 11:00 pm is beneficial for fitting in
more groups of older kids who may have practices. With an eye at
hosting tournaments, competitive matches, as well as birthdays,
weekends, the facility will be open from 8:00 am-8:00 pm. During
the summer months which begin the end of June (planned to begin
June 15th) through the end of August, the facility will be open from
8:00 am-10:00 pm. This is focused around satisfying leagues,
competitive matches, tournaments, and also for hosting our summer
camps and programs.Our peak time for rentals during the school
year will be in the between of 6:00 pm-10:00 pm. During this time,
many teams or individuals will come after school to our facility to
practice for the sport in season.
Many of our employees will be payed minimum wage since mostly
they will be sitting behind the counter taking money or making sure
rentals go as planned. The minimum wage in Washington is $9.47
an hour (Washington State Department of Labor and Industries,
2016). There will be two managers making $70,000. Since we are
such a small company we do not plan to offer benefits to our
employees up front. If things are a success at King County Sports
Zone then in the future, we would certainly offer benefits to our
employees. However, at this time it is not a viable option to offer
benefits to our employees.
Intro Business
Concept
Location Demand
Forecast
Append

Management Information Systems
MaxGalaxy is a cloud based system that allows sport
complexes to manage rentals, memberships and registrations,
and billing options for customers. The company that provides
the software is Maximum Solutions Inc., which has been in
business since 1994. “This cloud-based solution provides the
advantages of minimizing upfront software/hardware
investments, decreases overall deployment time, and best of all
allows its users the freedom and security of not having to invest
in expensive server hardware” (Maximum Solutions Inc.).
The features that King County Sports Zone will need from the
MaxGalaxy software are: memberships, reservations, league
and camp registrations, billing, and website compatibility.
Maximum Solutions Inc. has quoted the startup costs to be
$10,000. This is the cost to build the system and to train our
employees how to use the system. The monthly charge after the
startup cost is $500 per month, which is $6,000 per year. This
monthly charge will allow three company employees to access
the MaxGalaxy cloud to transfer information into Intuit
QuickBooks. MaxGalaxy also has a call center located in
Minnesota that is dedicated to helping customers sort through
problems. This is a major reason why we went with MaxGalaxy
over other softwares that have similar features.
16
MaxGalaxy
Facebook Page and Website
King County Sports Zone will have a fully functioning
facebook page that will be updated daily. The information
that will be included in the facebook page will be our current
hours of operations for that season, information about the size
of the facility, what the facility offers, league standings,
company website link, and much more.
Our website will include information about our company,
services and amenities that we offer, a photo gallery of the
sports complex, the rental costs for our fields and courts, and
our contact information, which includes our phone number
and address.
Technology
Since the MaxGalaxy system that we are implementing is
cloud based, computers are the only hardware that we need to
purchase. The computers don’t need any other expensive
hardware to access the MaxGalaxy system, website or
facebook page. We will need to have a total of 4 computers in
the whole facility.
Key Performance Indicators
Reporting injuries
Making sure rentals don’t overlap
Customer Engagement
Non slip courts and quality turf
Payroll and Accounting
For the payroll and accounting, we will use Intuit Quickbooks
Payroll. The package that King County Sports Zone needs is
the Enhanced Payroll and Quickbooks. Together, this
software will allow us to run all of our payroll and accounting
without hiring an accountant. The software for 15 employees
costs $25.97 a month for the first 6 months, plus $1.50 per
employee. After the first 6 months, the software package will
cost $51.95, plus $1.50 per employee, which is $74.45 per
month.
System Costs per Year Uses
MaxGalaxy $6,000 Memberships, billing,
rentals, prevents double
booking
Intuit
Quickbooks
$893.40 Payroll and Accounting
For the Visio business process diagram integrating
MaxGalaxy and Intuit QuickBooks, see Appendix
Q.
For price breakdowns for MaxGalaxy and Intuit
QuickBooks, see Appendix R.
King County Sports Zone will have one full time manager. Part
of the job will be to using the MaxGalaxy system and Intuit
QuickBooks. This full time manager will also be responsible for
updating the website and facebook page.
Employees
Figure 23: Cost of MIS Software and Uses of Software
Source(s): Intuit and MaxGalaxy Websites
Intro Business
Concept
Location Demand
Forecast
Append
Figure 24: Key Performance Indicators

Financials
17
Intro Business
Concept
Location Demand
Forecast
Append
Net Present Value $-572,289
IRR -1.19%
Payback Period 5 Plus
Figure 26: Key Financial Numbers Source: Financials
Figure 27: Revenue Growth Source: Financials
Figure 27 Summary: The chart above shows the revenue growth
over the 5 year period that the team has control of the business.
Sales in our first year we based on demand received from
comparable businesses. After that the team determined that
growth would start at 10%, then 7.5% followed by 5% in 2019
and 2020. These numbers were growth percentages were
determined by trends that comparable businesses told us were
common in the industry.
Figure 25: Total Expenses Source: Financials
Figure 25 Summary: The chart above shows the total
expenses over 5 year period that the team has control of
the business. Running an indoor sports complex has a
high amount of expenses. Much of which are due to start
up costs. The increase in expenses is due to a 2% salary
increase per year as an incentive to stay with the
company.
Figure 26 Summary: The chart above shows our NPV, IRR
and Payback Period. With our NPV and IRR being negative
that is not a good sign for our business. From these
unfortunately numbers this is a sign that our business will
not be feasible in the time frame we have been given by
Copeland Associates.
For a more in-depth analysis of our financials please view
Appendix S: Financials.
Income Taxes
Being our company never actually broke even. We never
actually paid an income tax. Therefore our income tax
expense during this project would be $0.00. If you aren’t
making money you can’t be taxed.
Net Present Value
Our Net Present Value for this project is $-572,289. Since this
number is negative we are not feasible for this project. The
team did not expect it to so expensive to run a multisport
indoor sports complex.
IRR
The internal rate of return is a tool used to determine if an
investment’s return was greater than the required return. If our
IRR was positive then it would be more appealing for
investors to investor in our business but being ours is negative
this is not a good risk for investors to take at this time.
Payback Period
The payback period for King County Sports is 5+ years. If the
payback period is less than 5 years then the project would be
feasible. But since it is not our project is not feasible.

18
Intro Business
Concept
Location Demand
Forecast
Append
Financials cont.
Insurance Cost
The insurance cost for King County Sports Complex is
$12,000 per year. The team received this information from
insurance agent (Shinstrom, S , 2016).
Figure 28: Net Income for First Year
Source: Financials
Figure 28 Summary: The chart above shows the net
incomes from King County Sports Zone first year in
business. As you can see, we are only making money in the
3rd quarter. This is due to the summer camps that we will be
hosting. Summer camps are very profitable and very popular
among the youth population.
Figure 30: Net Profit Margin
Source: Financials
Figure 30 Summary: The chart above shows the net profit
margins from King County Sports Zone year after year. As
you can see, King County Sports Zone will not have positive
profit margins until midway through year 2018. This is due,
to the high startup costs of running an indoor sports
complex. Originally the plan was to just put down turf for
our indoor turf but the team was told we needed a drainage
system that costs $486,540.
Figure 29: Return on Equity
Source: Financials
Figure 31: Return on Assets
Source: Financials
Return on Equity for King County Sports Zone 5 years
of business. Our return on equity starts out negative but
then becomes positive in the middle of the 3rd years.
This is because we are finally making money in the 3rd
year.
Return on Assets for King County Sports Zone for
5 years of business. Our return on assets starts at
just under -15%, and breaks even between 2018-
2019. This is because of our large investment for
our courts and turfs.

The Kirkland, Washington area has a need for an indoor
multisport complex. Of the complexes present in the Seattle
area most only have soccer. This limits the amount of sports
the youth can play. The hope is to bring an indoor multisport
complex that offers basketball, volleyball, and other turf
related sports the youth in the suburbs of Seattle can enjoy.
The limited competition made Kirkland a logical location for
our indoor multisport complex.
Kirkland also has a lack of indoor basketball courts that
sports teams could use. This is a great opportunity for our
business to fill the void within the area. Putting the complex
in Kirkland could also boost the economy. If regional or
national tournaments are hosted at the facility many out of
town teams coming to play. The teams and their families will
need multiple hotel rooms, places to eat, and things to do
when not playing in the tournament. If you host a big national
basketball tournament in Kirkland it would increase the
exposure to the city and also make people spend more money
in the city.
Kirkland has a very large youth population with children ages
0-14, which makes up 16% of the total population. The
facility on 12521 128th Lane NE is located within 10 miles
of 46 schools making this market very attractive to gaining
the attention of youth sports teams. Kirkland also has a
median household income of $90,611 as of 2014 (United
States Census Bureau 2016). The typical family has a
median household income of only $53,657 (Luhby 2015).
Residents of Kirkland have a greater disposable income than
a typical American Family by 1.69%. This makes Kirkland a
very attractive location for our indoor sports complex.
In 2013, it was reported that over 21M youth ages 6-17
played on a sports team. This is a very large number and does
not even consider the amount of kids who got their start
before the age of 6. With childhood obesity such a big factor
in today’s world, it is a very good idea to invest an indoor
sports complex to help restore this standard that the youth
population has started.
19
When the project started, the team felt good about the project
and felt it had a chance to be feasible. Until, we called a turf
company about the cost of putting in turf fields. The team
asked if since we were buying a warehouse could we just put
some padding down and then add turf. We were told that in
order to install indoor turf a drainage system would needed.
The drainage system costs $486,540, this was an unplanned
expense and really hurt the feasibility in the long run.
Another reason why the project isn’t feasible is the team
didn’t not realize how expensive it was to run a business in
Washington. Rent is very high in Washington and we had
trouble finding a facility that was suitable for our needs.
Another factor we did not consider is the lack of places
available to make a facility like this. The facility we found
was the only one of it’s type available.
Kirkland could be a good place to put a Indoor sports
complex, because it met all the demographics the team was
looking at. Kirkland has a high number of youth interested in
sports and high number of families in the area. Unexpected
high costs of doing business in the area and additional
unplanned costs to renovate our facility made the team realize
this project is a lot more complicated than originally planned.
Given the parameters of our project, due to a negative NPV
of (-572,289), the project is a no go.
Intro Business
Concept
Location Demand
Forecast
Append
Conclusion

References
Aspen Institute. (2014). Project Play: Reimagining Youth Sports
in America. Retrieved from
http://www.aspeninstitute.org
on March 20, 2016.
Average Office Supply Costs per Employee. (2014). Retrieved from
http://lac-group.com/average-office-supply-costs-
per-employee/ on April 06, 2016,
Ball Pumps. (n.d.). Retrieved from
http://www.amazon.com/Champro-Dual-Action-
Pump-Gauge-10-Inch/dp/B004SVB8JE on March
30, 2016
Baseballs. (n.d.). Retrieved from
http://www.esportsonline.com/bucket-w-baseballs
on March 30, 2016
Baseball Bats. (n.d.). Retrieved from
http://www.baseballsavings.com/customer/categor
y/product.jsp/SUBCATEGORY_ID/63047/refSci
d/2498/sattr0/Age
Group/sattrVal0/youth/sattr1/Type/sattrVal1/base
ball (metal) on March 30, 2016
Baseball Helmets. (n.d.). Retrieved from
http://www.amazon.com/Easton-Junior-Batters-
Helmet-
Silver/dp/B00LI4QR3Q/ref=sr_1_1?ie=UTF8 on
March 30, 2016.
Basketball Court Mop. (n.d.). Retrieved March 30, 2016, from
http://www.uline.com/Product/Detail/H-
866/Mops-Squeegees-and-Carts/Deluxe-Dust-
Mop-Kit-24?pricode=WY687 on March 30, 2016
Basketball Hoops. (n.d.). Retrieved from
https://www.basketball-hoops.com/Fury-Nitro-
portable-basketball-hoops.html on March 30,
2016
Big Spring Sports Complex. (2016). About us. Retrieved from
Big Spring Sports Complex on April 5, 2016.
Body Zone Sports and Wellness. (2016). Body Zone Sports and
Wellness About. Retrieved from
http://bodyzonesports.com on March 16, 2016.
Borchik, J (n.d.) Booster club information. Retrieved on April 6,
2016
Business After Hour. (2016). Columbia Athletic Center. Retrieved
from Business After Hour on March 17, 2016.
City Data. (2016). Kirkland, Washington. Retrieved from
http://www.city-data.com on March 21, 2016.
20
City of Kirkland. (2016). Economic Development in Kirkland.
Retrieved from http://www.kirklandwa.gov on
March 20, 2016.
Colon, E. (2014). LA Fitness. Retrieved from
https://prezi.com on March 18,2016. Cones.
(n.d.). Retrieved from
http://www.amazon.com/Agility-Cone-Set-50-
Basketball/dp
/B0192HYNSQ/ref=sr_1_12?s=sporting-goods on
March 30, 2016.
Crossfire Select. (2016). Crossfire Select Soccer Club. Retrieved
from Crossfire Select on March 29, 2016.
Crossfire Soccer. (2016). 2015 - 2016 Crossfire Premier. Retrieved
from Crossfire Soccer on March 29, 2016.
Desktop Computers. (n.d.). Retrieved from
http://www.bestbuy.com/site/lenovo-21-5-all-in-
one-amd-a4-series-4gb-memory-500gb-hard-
drive-black/4362104.p?id=1219736622975 on
April 6, 2016
DollarDays (March 31, 2016). Regulation Size Black and White
Soccer Ball. Retrieved from
https://www.dollardays.com on March 31, 2016.
Editorial Staff. (March 6, 2013). Flyers Do Still Work For Business
Promotion. Retrieved from Creative Overflow on
April 7, 2016.
Entrepreneur. (N.D) Television Advertising. Retrieved from
Entrepreneur April 8, 2016
Facebook Analytics. (n.d.). Ads Manager. Retrieved from Facebook
on March 31, 2016.
Fast Pitch Softballs. (n.d.). Retrieved from
http://www.directsports.com/balls/softballs/fastpit
ch-softballs/champro-softball-asa-11-gfp-11 on
March 30, 2016.
Fast Signs (n.d.) Pricing on banners and posters. Retrieved on April
8,2016
Field Barrier Nets. (n.d.). Retrieved from
http://www.practicesports.com/cgi-bin/Make-a-
Store.cgi?multiadd=1 on April 6, 2016.
First Research. (2016). Fitness Centers. Retrieved from First
Research on March 11, 2016.
Intro Business
Concept
Location Demand
Forecast
Append

Kickballs. (n.d.). Retrieved March 30, 2016, from
http://www.amazon.com/Voit®-10-Playground-
Balls-Red/dp/B0000C864A/ref=sr_1_2?s=sports-
and-fitness on March 30, 2016.
Image retrieved from http://kimberlycrossland.com April 10,
2016.
Lacrosse Goals. (n.d.). Retrieved from
http://www.amazon.com/Gladiator-Official-
Lacrosse-Orange-6-
Foot/dp/B00J35FZYO/ref=sr_1_1?ie=UTF8 on
March 30, 2016.
Landline Phones. (n.d.). Retrieved from
http://www.amazon.com/VTech-CS6719-2-
Waiting-Cor
dless-
Handsets/dp/B00FRSYS12/ref=sr_1_1?s=electro
nics on April 06, 2016.
Lake Washington School District. (2016). School District
CalendarRetrieved from Lake Washington
School District on April 7, 2016.
Lake Washington Youth Soccer Association. (2016). LWYSA.
Retrieved from Lake Washington Youth South
Association on March 29, 2016.
Legends Sports Complex. (2016). Gym and Courts Rentals.
Retrieved from Legend Sports Complex on
March 29, 2016.
Legends Sports Complex. Personal Communication. Retrieved on
March 29, 2016.
Logopedia. (2016). YMCA Logo. Retrieved from Logopedia on
March 18, 2016.
Luhby, T. (September 16, 2015). Typical American family earned
$53, 657 last year. Retrieved from CNN Money
on March 18, 2016.
Maximum Solutions Inc. (2016). MaxGalaxy Cloud Solution.
Retrieved from
http://maxsolutions.com/maxgalaxy/ on
March 30, 2016.
Maximum Solutions Inc. Personal Communication. Retrieved on
April 1, 2016.
Morris, B. (June 30, 2015). Why Is The U.S. So Good at
Women’s Soccer. Retrieved from
FiveThirtyEight on March 29, 2016.
NSGA Research Newsletter. (n.d.). Numbers from the NSGA.
Retrieved from NSGA Research Newsletter on
April 1, 2016.
21
References cont.
Flag Football Flags. (n.d.). Retrieved from
http://www.amazon.com/SKLZ-Man-Flag-
Football-Deluxe/
dp/B0019GM3HC/ref=sr_1_1?ie=UTF8 on
March 30, 2016.
Footballs. (n.d.). Retrieved from
http://www.amazon.com/Wilson-Supergrip-
Composite-Junior-
Football/dp/B002JOO448/ref=sr_1_5?ie=UTF
8 on March 30, 2016.
Friends of Hoops. (n.d.). Alumni. Retrieved from Friends of
Hoops on April 1, 2016.
Google Maps. (2016). Kirkland, Washington. Retrieved from
https://www.google.com/maps/@47.7049424,-
122.1932066,12z on March 15, 2016.
Hale, S. VersaCourt. Retrieved from personal communication
on March 28, 2016.
IBISWorld. (2016). Indoor Sports Facility Management.
Retrieved from IBISWorld on March 11,
2016.
Incrediplex Sports. (2016). Incrediplex Sports. Retrieved from
http://www.incrediplex.com on March 16,
2016.
Incrediplex Sports. Personal Communication. Retrieved on
March 22, 2016.
Insports Center. (2016). Insports Center about. Retrieved from
http://insportscenters.com on March 16, 2016.
Insports Center. (March 22, 2016). Personal Communication.
Intuit Quickbooks Payroll (2016). Retrieved From
http://payroll.intuit.com/ on April 3, 2016.
Jeure,P. Broderick Group. Retrieved from personal
communication on April 05, 2016.
Jump Ropes. (n.d.). Retrieved from
http://www.amazon.com/Adjustable-Jump-
Rope-Pro
Freestyle/dp/B017JF82TY/ref=sr_1_2?s=sport
s-and-fitness on March 30, 2016.
Kelley, B and Carchia, C. (July 16, 2013). Hidden
Demographics of Youth Sports. Retrieved
from ESPN on March 18, 2016.
Intro Business
Concept
Location Demand
Forecast
Append

22
References cont.
Intro Business
Concept
Location Demand
Forecast
Append
Northshore Youth Basketball. (2016). About us. Retrieved
from Northshore Youth Basketball on April 1,
2016.
Nova Field House. (2016). Nova Field House. Retrieved from
http://novafieldhouse.com/ on March 16, 2016
Pew Research Center. (Dec 17, 2015). Parents and their children’s
extracurricular activities. Retrieved from
http://www.pewsocialtrends.org on March 28,
2016.
Pinnacle Sports. (n.d.). About us. Retrieved on April 1, 2016 from
http://pinnaclesports.org.
Pinnacle Sports. Personal Communication. Retrieved on March 30,
2016.
Portable Scoreboard. (n.d.). Retrieved from
http://www.amazon.com/Trigon-Sports-Multi-
Sport-Tabletop-
Scoreboard/dp/B00CZ2IB7K/ref=sr_1_6?s=sports
-and-fitness on April 6, 2016.
PrivCo. (2016). L.A. Fitness International LLC. Retrieved from
http://www.privco.com/private-company/la-
fitness-internati onal-llc#Narrative on March 18,
2016.
Reddy, T. (Aug 18, 2015). 10 Data Points that Prove that Soccer has
Finally made it in America. Retrieved from
https://www.umbel.com/blog/ on March 11, 2016.
Rochester Sports Garden. (2016). About Us. Retrieved from
Rochester Sports Garden on April 4, 2016.
Router. (n.d.). Retrieved from
http://www.bestbuy.com/site/linksys-802-11ac-
smart-wi-fi-dual-band-router-
black/2074009.p?id=1219068636395 on April 6,
2016.
Sacchetta, J. (Mar 22, 2016). Personal Communication.
Sandbox Sports. (2016). Sandbox Sports Logo. Retrieved from
http://sandboxsports.net on March 17, 2016.
Shinstrom, S. Shinstrom and Norman Insurance Agency. Retrieved
on on April 7, 2016, from personal
communication
SimplyMap. (2016). Kirkland, Washington. Retrieved from
SimplyMap on March 21, 2016.
Snapsr. (n.d.). Fake Snapchat Generator. Retrieved
from Snapsr.com on April 3, 2016.
Sornoso, E. (January 20, 2014) Snapchat for Business: How
Marketing Can Benefit From Photo Messaging.
Retrieved from SocialMediaExaminer on April 4,
2016.
Sperling’s Best Places. (n.d.) Kirkland, Washington Climate.
Retrieved from http://www.bestplaces.net/
on March 16, 2016.
SportsKnowHow.com. High School Basketball Court Dimensions.
Retrieved from http://www.sportsknowhow.com
on April 4, 2016.
Sportsplex. (n.d.). Court Rentals. Retrieved from Sportsplex
on March 30, 2016.
Sportsplex. Personal Communication. Retrieved on March 29,
2016.
Starfire Sports. (2016). Starfire Sports Logo. Retrieved from
http://www.starfiresports.com on March 17, 2016.
Steimle, J. (August 6, 2014). Should I Have A Facebook Page For
Business Or Just Use My Personal Profile?.
Retrieved from Forbes on April 4, 2016.
Suburban Stats. (n.d.). Kirkland, Washington population 2016.
Retrieved From https://suburbanstats.org/ on
March 18, 2016.
Televisions. (n.d.). Retrieved from
http://www.amazon.com/TCL-32D2700-32-Inch-
720p-
Model/dp/B00VVOCQHE/ref=sr_1_3?s=electron
ics on April 6, 2016.
Television Wall Mount. (n.d.). Retrieved from
http://www.amazon.com/Monoprice-Ultra-Slim-
Titlting-Bracket-
Screen/dp/B002TTB38S/ref=sr_1_2?s=electronic
s on April 6, 2016.
Tilton Sports Center. (n.d.). Retrieved Tilton Sports Center
on March 30, 2016.
Total Sports Experience. (n.d.). About us. Retrieved from
Total Sports Experience on April 5, 2016.
Ugor, M. (n.d.). What percentage of startups fail? Retrieved from
Quora on April 7, 2016.
Understanding the Meaning of Colors in Psychology. (n.d.).
Retrieved From www.empower-yourself-with-
color-psychology.com/ on March 21, 2016.

23
References cont.
United States Census Bureau. (2016). Kirkland, Washington
quick facts. Retrieved from United States Census
Bureau on March 16, 2016.
Volleyballs. (n.d.). Retrieved from
http://www.amazon.com/Tachikara-SofTec-
Zigzag-Volleyball-
White/dp/B00II5PL6M/ref=sr_1_1?ie=UTF8 on
March 30, 2016.
Wagner, N. (n.d.). How Much Does Television Really Cost?
Retrieved from Chron on April 7, 2016.
Washington State Department of Labor and Industries. (2016).
Retrieved from Washington State Department of
Labor and Industries on April 7, 2016.
Welsh, T., Newell Rubbermaid in Atlanta, GA. Retrieved from
personal communication on April 4, 2016.
WESCO AAU. (n.d.). WESCO AAU - North Puget Sound.
Retrieved from WESCO AAU on March 21,
2016.
Wilson’s Fitness Centers. (n.d.). About us. Retrieved from Wilson
Fitness Centers on April 4, 2016.
Wilson’s Fitness Center. Personal Communication. Retrieved on
March 28, 2016.
YMCA. (2016). Retrieved from
https://apm.activecommunities.com/seattleymca/
Home on March 18, 2016.
12521 128th Lane NE, Kirkland, WA 98034. (n.d.).
Retrieved March 21, 2016, from
http://www.loopnet.com
Intro Business
Concept
Location Demand
Forecast
Append

Appendix A: Pestle and Porter’s 5 Forces
Kirkland, Washington has a median household income of
$90,611 as of 2014 (United States Census Bureau 2016).
The typical family has a median household income of only
$53,657 (Luhby 2015). Residents of Kirkland have much
more disposable income than a typical American Family by
1.69 times. When it comes to running a facility like the one
we are attempting to run people with high disposable incomes
are the one of the many targets. Kirkland also has a much
higher number of high income families. Kirkland has a
distinct advantage over the national average when it comes to
wealthy 3 and 4 person families with single or married
parents (SimplyMap, 2016). These advantages in wealthy
families make Kirkland a great location for a facility like ours
as studies have shown that families with higher income levels
tend to have higher participation rates in sports than those
families with lower incomes (Lee, 2015). This increased
participation rates will certainly help to boost our business as
we will likely have a high number of target customers that
also have high amounts of disposable income and interest in
sports.
I
Competition in this industry can be described as medium. The
point of an indoor sports complex is for people to spend their
leisure time playing sports. There are many ways people
could spend their leisure time other than exercising, they
could be playing video games, go bowling and going golfing
just to list a few (IBISWorld 2016). Our specific competitors
to the industry in Kirkland, Washington are the YMCA
located in Seattle, Columbia Athletic Club in Juanita Bay and
Starfire Sports in Seattle.
Technology
Economic
Social
About one in three US children and teens are overweight or
obese, triple the rate of the previous generation. This is
concerning because the children are the future of this world
(First Research 2016). If many are overweight or obese this
could limit the lifespan of our younger population. Sometimes
if you are overweight or obese you are not as socially accepted
and people may look at this indoor sports complex to be
socially accepted.
In recent years, there has been action from both state and
federal legislators creating laws and regulations intended to
help fight the childhood obesity epidemic. Such actions
consist of required BMI and diabetes tests at schools and
taxes on sugary beverages and snacks. These such laws will
help to get kids more healthy and active which will help
businesses like ours grow their customer base.
Political
Technology often does not play a major role in the indoor-
sports industry. Although this is true, technology is
becoming more prevalent by the day and more and more
indoor facilities are pushing to integrate technology more into
their services in an attempt to make it easier for the customer
to stay connected and involved in the facility and therefore
more likely to return as a customer. Some ways that
businesses are incorporating these new technologies are
increased prevalence of televisions throughout the facility,
free Wi-Fi for guests, fitness testing equipment such as timers
and possibly even newer technologies like FitBit bands, and
incorporation of website and app services. Increased
incorporation of new technologies like those listed above
could help our business to bring in new customers and
become more likely to retain them as repeat customers.
In order to make sure customers enjoy their experience at our
facility we plan to have the best basketball and soccer fields
possible. As well as the best equipment possible that goes
along with each sport. On average, about 30% to 40% of
fitness club members don't renew memberships, making
revenue uncertain and requiring high marketing costs to get
new members (First Research 2016).
Suppliers & Customers
Competition
Threat of New Entry
Substitute Products
In Kirkland, Washington it was difficult to find land at a good
price that fit our need. This would make it difficult for others
to find a place to compete with us making the threat of new
entry very difficult.
Customers could potentially go to Starfire Sports. These
competitors mainly focus on soccer as soccer is a big thing in
Seattle. But most of these places do not offer basketball or
volleyball. A customer could even decide to go to just a regular
gym if they decide the sports we have to offer are not what they
are looking for.
Intro Business
Concept
Location Demand
Forecast
Append

Appendix B: Youth Soccer Leagues
II
Figure 32 : Youth Soccer
Source: Lake Washington Youth Soccer Association
Recently Closed
Figure 32 Summary: With the recent closure of 60
acres in Redmond, Washington. The Lake Washington
Youth Soccer Association has one less place to play
now. With the addition of King County Sports Zone,
the LWYSA now can hold weekend soccer games at
our location.
In the Kirkland area there are 3 main groups of soccer
teams. The Recreational Club, Crossfire Select Club,
Crossfire Premier Club. The Crossfire Premier Club
runs ages 9-18 and is for both boys and girls and has 18
teams (Crossfire Soccer, 2016). The Recreational Club
runs both fall and spring. They offer about 14 teams for
both boys and girls and even offer a coed team.
Recreational Club runs from ages 7-18 (Lake
Washington Youth Soccer Association). The
Crossfire Select is mainly for ages 10-19. This league
also offers both girls and boys teams. This league is the
biggest of them all offering 60+ teams between the boys
and girls teams (Crossfire Select, 2016).
Figure 33: Youth Soccer Participation
Source: USyouthsoccer.org
10 states with the highest number of youth
participating in organized soccer. As you can
Washington state is ranked number 9 in the nation
in youth soccer participation. This means that there
will likely be a large number of youth active in
soccer in the area surrounding our location.
The 60 acres facility that was closed is in close proximity to
our location in Kirkland. The hope is that the league will
consider our complex to fill the void that was left by the 60
acres facility. 60 acres had almost 20 soccer fields, (Lake
Washington Youth Soccer Association, 2016). But the 2
turf fields we plan to offer could help out the Lake
Washington Youth Soccer Association.
Kirkland has also been working on a Pee Wee soccer league
for young kids ages 3-6. According to the Kirkland
government page, Over the last three years the program has
increased in popularity and participation, from 80 children
to over 200, which is a 40% increase (City of Kirkland,
2016). This is a good sign to see because the participation is
certainly on the rise amongst the youth. The bad things
about the Pee Wee Soccer league is that they play outdoors.
A disclaimer on the website says games will be played in
the rain if the field is in good condition. The policy is, if the
field conditions are poor, putting safety in jeopardy, the
games for the day will be canceled and rescheduled. On-site
staff is required to evaluate the fields when they arrive to
determine the field conditions. If they deem the situation
unsafe, they will begin calling all coaches to notify them of
the cancellation (City of Kirkland, 2016). Many parents
may not want their children to get sick if they play in the
rain. With our indoor sports complex being inside maybe
some of the youth games could be played at our complex to
keep the young kids out of the elements.
Intro Business
Concept
Location Demand
Forecast
Append

Appendix C: Youth Basketball Participation
The Wesco AAU in North Puget Sound, WA is for 5th - 8th
graders. Typically 5th to 8th graders range from ages 11-14,
perfect for the demographic we are trying to reach. In the
Wesco AAU, there is 17 area teams. Wesco also only has one
facility they use Arlington High School. Surely, they could use
our facility for practices and tournaments (WESCO AAU ,
n.d.).
III
Wesco AAU
Rich Basketball History
Kirkland Youth Basketball
Northshore Youth Basketball
Figure 35: Basketball Participation
Source: Simply Map
Figure 34 Summary : The chart above shows that
basketball is the high team sport for children ages 7-17.
Although, the numbers are on the decline there are still
enough children involved in team where a facility like ours
can still serve good use. After doing a sizable research on
the amount of teams in Kirkland, we believe that there is
enough of a team presence that we will have a very high
rental demand.
The Northshore Youth Basketball association is ran out of the
Northshore School District located 12 minutes from our
location in Kirkland. They offer teams for boys and girls
between the 3rd and 6th grade and offer boys and girls junior
high team and high school teams. Although, they are operated
out of a school they do not use that facility to practice. They
have one practice facility located at Cotton Lake. That may be
an issue because the league currently has 74 boys teams and 50
girls teams. With a combined 124 teams, this league has a
demand to find new places to place and host tournaments. The
league plays 10 weeks of games but my question for this
organization is where do you play all of your games if you
have a connection with one gym (Northshore Youth
Basketball, 2016).
This league focuses on basketball skill development,
teamwork, and having fun as well as broadens "winning" to
include enjoyment of the sport, creating friendships, and the
learning of new skills. This league is for grades 3rd - 6th,
meaning this league is primarily for kids ages 9-12. During this
season you play 8 games through the months January,
February and March. These teams also practice twice a week
in November and December leading up to the games (City of
Kirkland, 2016). Surely, with the amount of games that these
teams play and the amount of times they practice they could
use our facility. The best part about it is most games are
playing on the weekends and during the season when high
school is in season so getting court time should not be a
problem.
Many NBA players have been produced in the Seattle area.
Back to Back NBA Slam Dunk Champion Zach Lavine was
a member of the Friends of Hoops in Seattle during his
younger years. Other notable NBA players that have come
through Seattle include Boston Celtics point guard Isaiah
Thomas, Los Angeles Clippers shooting guard Jamal
Crawford and another former NBA slam dunk champion
Nate Robinson (Friends of Hoops, n.d.).
Figure 34: Team Sports Participation
Source: NSGA Research Newsletter
Intro Business
Concept
Location Demand
Forecast
Append

Appendix D: Concept - Industry Analysis
The indoor sports complex industry is a $910.9 million
industry. An increase in public health awareness and dieting
trends, along with the growing public awareness of the
benefits of physical activity, helped drive changes in adult
lifestyles that boosted demand for indoor sports facilities
(IBIS World, 2016).
In the indoor sports complex industry there are not any
national competitors. At the most an owner may have
multiple locations but that is also not very common. From
doing research, many of these indoor sports complexes are
common in the Northeast and Midwest. A key part of running
a good indoor sports facility, like the one we plan to offer, is
to have it in an area with a high disposable income.
According to a Pew Study, there is a direct correlation
between disposable income and the amount of money that
parents spend on sports (Pew Research Center, 2015).
Industry growth is something that is expected to occur within
the next 4 years and occur until at least 2020. With one and
three children suffering from childhood obesity, more and
more parents are pushing children to be active (First
Research, 2016). With multiple sports being offered in our
facility there is no reason children can’t come to our facility
and be active.
The indoor sports industry is an industry that holds promising
opportunity. According to the most recent research by the
Sports and Fitness Industry Association, there were 4.6
million indoor soccer participants in the United States in
2012 (IBIS World, 2016). Sports like basketball are also
very popular due to the wide variety of opportunities
available.
From talking to many indoor sports complexes, the team has
determined that the peak hours for these types of facilities are
4-9pm. These are the hours after children get out of school
and come for practices or individual instruction.
IV
Figure 36: Time Spent on Leisure and Sports
Source: IBIS world
Figure 36 Summary : The graph above shows the
amount of leisure time that people spend on sports. With
the average person spending about 5 hours on leisure
time, this is important to us because maybe they will
spend their leisure time at King County Sports Zone.
Figure 37: Industry Growth
Source: NSGA Research Newsletter
Figure 37 Summary: The bar graph above shows the
industry growth for indoors sports centers. There is a
projected 4% annual growth rate between 2016 - 2020
which is good for the future of our business.
Intro Business
Concept
Location Demand
Forecast
Append

Appendix E: Floor Plan
Figure 38 Summary: The entire building 171,841 square feet. The portion that we are renting is going to be 63,746. The
portion of the building we are renting has office space that takes up 2,329 square feet. So after office space, we have
61,417 square feet available for our sports complex. We are planning to have 2 turf fields that measure 200 x 85 feet, and
4 basketball courts that measure 94 x 60. The basketball courts have an extra 10 feet on all sides to eliminate any hazards
such as running into a wall. With all of this, we have a remaining square feet total of 4,857. This additional space will
serve as hallways in between the courts and fields, as well as a lobby and viewing/sitting area for parents and spectators.
There is a wall dividing us from the other company, as well as in between us and the not rented portion.
Figure 38: Facility Floor Plan Source: Jerue, P
Square Footage Breakdown
63,746 – 2,329 = 61,417 SF after offices
61,417 – 34,000 = 27,417 SF after 2 turf fields
27,417 – 22,560 = 4,857 SF after 4 basketball courts
Court and Field Dimensions
2 Turf Fields: (200 x 85) 2 = 34,000 SF
4 Basketball Courts: (94 x 60) 4 = 22560 SF
Intro Business
Concept
Location Demand
Forecast
Append
V
Data: Jeure,P. Broderick Group. Retrieved from personal communication on April 05, 2016.

39
Key Partners Key Activities
Key Resources
● Basketball
courts
● Soccer Fields
● Balls for all
sports
Value
Propositions
Customer
Relationships
Channels
● Word of
mouth
● Social Media
● Website
● Magazine
Customer
Segments
● 6-14 years
● $75,000+
● Families with
kids
interested in
sports
● AAU Teams
● Soccer
Leagues
.
Cost Structure
● Cost of maintaining the courts and turfs
● Cost of electricity
● Cost of gas heating
Revenue Streams
● Rentals
● Birthday Parties
● Concessions/Rentals from Concession space
● Hosting Tournaments
● Sponsorship
Appendix F: Business Model Canvas
● AAU Teams
● Youth Soccer
Leagues
● Local Schools
VI
● Renting out
turfs and
courts
● Hosting
Birthday
● Tournaments
● Summer
Camps
● Leagues
● Offering
multiple
sports in one
location
● No longer
have to play
sports in the
elements
● Facebook
Page and
Snapchat,so
customers can
interact with
the company
● Camp leaders
very involved
with campers
Intro Business
Concept
Location Demand
Forecast
Append

Appendix G: Location
Our Location
Our Location
Figure 39 Summary : The maps above show the amount of schools near our location.
Most of these within a 5 mile radius. This is key for being successful because many of
these schools have teams and need places to play. King County Sports Zone hopes to fill
that void.
Figure 39: Map of Schools Close to Our Location Source: Google Earth
Intro Business
Concept
Location Demand
Forecast
Append
VII

Appendix G cont: Location
Figures 40 and 41 Summary: One of the variables that we looked into when deciding whether to pick Kirkland, Washington
was how many kids lived within the surrounding area that were 6-14 years of age. As shown in Figures 12 and 13, Kirkland and
the surrounding areas all have high numbers of kids that live within the area ages 6-17. According to the United States Census
Bureau there are roughly 16,000 kids under the age of 18 that live in Kirkland alone. This is crucial to our business because kids
who are of the ages of 6-14 are the focus target market for the King County Sports Zone.
Figure 40: Number of the Population 6-11 Years
Source Simply Map
Figure
Figure 41: Number of Population 12-17 Years
Figures 42 and 43 Summary: The next factor in
deciding the location for our indoor sports complex
was household income. We were looking for areas
with higher levels of household income to support our
business. Figure 15 show that, Basketball has the
largest participation percentage at 11.28%. Baseball
and Soccer follow at 6.93% and 6.56% respectively.
These numbers may seem low, but they are taking
into account all the people that live within Kirkland,
not just the youth.
Figure 42: Number of Households with Income between
$100,000-$124,999
Figure 43: Kirkland Sports Participation
All Data Retrieved from SimplyMap, 2016.
Intro Business
Concept
Location Demand
Forecast
Append
VIII

Appendix G cont: Location
The focus is on children ages 6-14 who are beginning or
already involved in some sort of youth sports program
and/or team.
IX
Kirkland has a very high number of people who are
interested in higher education. Within 15 miles of
Kirkland are 15 colleges and universities. Many people
in Kirkland are also interested in recreation. This is
mainly due to the closeness of Lake Washington. In
addition to Lake Washington, there are many outdoor
parks located in Kirkland that people can take their
children to do such as swim and play at the playground
(City of Kirkland, 2016).
In addition, Kirkland is a younger city with a median age
of 38.4 years. This is important to know because we now
understand that the people we are marketing to are fairly
young. Kirkland is also 100% urban, meaning that the
city is fairly complex (City Data 2016).
The people of Kirkland are also very wealthy. With the
average household income in Kirkland being $90,611 as
of 2014, the people can live a more affluent lifestyle
(United States Census Bureau, 2016).
Figure Summary: Kirkland also has high numbers
among males ages 0-14. Kirkland also has large
numbers of potential and current male parents ages 25-
39 living within the area meaning that our business will
have an already large, already established customer
base that is continuing to grow.
Figure 44: Kirkland Female Population
Source: Suburbanstats.org
Figure 44 Summary: Kirkland has high numbers of female
children ages 0-14. This coupled with the fact that Kirkland
also has high numbers of potential and current female parents
ages 25-39 living within the area means that our business will
have a large, already established customer base that is
continuing to grow.
Figure 45: Kirkland Male Population
Figure 46 Summary: A very large part of the
Kirkland, Washington population is White. The next
largest race in Kirkland is Asian followed by Latino.
This demographic information will help us better
determine how to market to potential customers
Figure 46: Kirkland Population by Race
Psychographics
Intro Business
Concept
Location Demand
Forecast
Append
Target Market

Appendix H: Local Competitors
Local Competitor Summary
Although the Kirkland area has some competitors to our business, most of them require
memberships to use their facilities. This means that sports teams can’t rent out the facilities
from these competitors. This leaves a void that can be filled by the King County Sports Zone.
X
Intro Business
Concept
Location Demand
Forecast
Append
Columbia Athletic Club
- Location: 11450 98th Ave NE, Kirkland, WA 98033
- 2.6 miles from our location, or a 8 minute drive
- Offers swimming, tennis, and youth camps. Membership is required to use the facilities
- This facility doesn’t offer indoor turf fields, basketball courts, or batting cages (Business
After Hour, 2016).
YMCA
- Location: 909 Fourth Ave Seattle, WA 98104
- 15.8 mile from our location or a 24 minute drive
- Offers kids camps, swimming, childcare, basketball/volleyball courts, and racquetball
courts
- Membership is required through the YMCA to gain access to these offerings
- Do not have indoor turf field or batting cages (YMCA 2016).
Starfire Sports - Main Competition of King County Sports Zone
- Location: 222 East 26th St., Suite 202 Tacoma, WA 98421
- 41.7 miles from our location, or a 49 minute drive
- Offers 12 outdoor fields, and 2 indoor turf fields, world class athletic center, restaurant,
sports performance center and physical therapy
- All fields are designated for soccer only
- Used to host adult leagues, as well as games for the FC Sounders soccer team
- Doesn’t include any basketball courts, batting cages, or youth center
- Only used for soccer (Starfire Sports 2016).
Sandbox Sports
- Location: 5955 Airport Way S, Seattle, Wa
- 21 miles from our location, or a 30 minute drive
- Offers 2 indoor sand volleyball courts, a baby court for kids, and rooms for party rentals
- Has no turf fields or hardwood courts (Sandbox Sports 2016).
LA Fitness
- Located: 12321 120TH Place NE, Kirkland, WA 98034
- .6 miles from our location or a 3 minute drive
- LA Fitness is a club with relatively high membership fees. The company targets people
who are 18-40 (Colon, 2014). “Each club offers a variety of exercise equipment, a
swimming pool, spa, sauna, basketball and racquetball courts, and group exercise classes”
(PrivCo 2016).
- Even though L.A. Fitness does have basketball and racquetball courts, they are not in
direct competition with our business. Their target market is significantly older, and their
facilities can not be rented out by a team.
- L.A. Fitness does offer a kids klub but this is more of a babysitting option while the
adults workout.

Cluster PM101 Team 4 P2 final

Recommended

Recommended

More Related Content

Similar to Cluster PM101 Team 4 P2 final

Similar to Cluster PM101 Team 4 P2 final (20)

Cluster PM101 Team 4 P2 final