Entrepreneurship Management - Adventure Training Center

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a business plan of an Adventure Training Center in the subject of Entrepreneurship Management

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Entrepreneurship Management - Adventure Training Center

  1. 1. Thrill O Philia daring to dare yourself Adventure Training Center
  2. 2. Roadmap Executive Summary Company Overview Opportunity Product & Service Market & Industry Analysis Competitive Advantage Marketing Plan Operations Plan Development Plan Management Plan Financial Plan Funding Offering
  3. 3. EXECUTIVE SUMMARY Opportunity, Solution, Value Proposition, Financials, Management
  4. 4. Opportunity • Many different adventure activities • How to learn is not readily apparent • More than three and a half million people participated in adventure sports • Estimating 10% interested in adventure training
  5. 5. The Solution • Training in various activities at all ability levels • Specially designed facility & field • Course offerings to vary & grow
  6. 6. Value Proposition • Initial perceived risk of an adventure sport • Learning curve may be too steep & risky • Safe & controlled environment • Continued training to the next level
  7. 7. Financials • Revenues mostly from service fees for classes • Construction will begin simultaneously with initial marketing efforts • Initial expenses outweigh revenues • Initial investment of $4 million – $1.5 million secured debt – $2.5 million preferred equity
  8. 8. Management • Significant experience in business management & adventure training • Another partner with development expertise in designing & constructing the centre
  9. 9. COMPANY OVERVIEW Mission, History & Current Status, Objectives
  10. 10. Mission “The Adventure Training Centre gives people the confidence to pursue their adventures safely and competently, enabling them to learn more and progress further and faster than they would on their own.”
  11. 11. History & Current Status • Currently in final planning stages • Discussions with potential partners in management, development & construction
  12. 12. Objectives • Partner with a real estate developer to partially invest in & develop the facility • Later expand ATC to capacity • Prepare for second phase • Shall involve wither a larger partner or sale to a larger company in order to meet the capital requirements of constructing the centres
  13. 13. OPPORTUNITY Opportunity, Survey Results, Market Size
  14. 14. Opportunity • Significant demand for a comprehensive, credible & unique centre • Technical, physical & informational material in a safe & controlled environment • Safety, experience, knowledge & preparedness are among the needs expressed by this market
  15. 15. Survey Analysis
  16. 16. Market Size
  17. 17. PRODUCTS & SERVICES Description, Proposed Courses, Features & Benefits
  18. 18. Description • 45,000 square foot facility
  19. 19. Proposed Courses Kayaking Mountain Biking Backcountry Skiing GPS Navigation Safety Certification Adventure Racing Rock Climbing Mountaineering Guide Training
  20. 20. Features & Benefits
  21. 21. MARKET & INDUSTRY ANALYSIS Competitive Environment, Indirect Competition, Future Competition, Barriers to Entry, Competitive Matrix
  22. 22. Competitive Environment • Primary competition from existing specialized training companies • But none to the extent of the ATC facility
  23. 23. Indirect Competition • Typical training Gyms • Other luxury goods / services
  24. 24. Future Competition • Large health clubs or gyms (in the future) • ATC Competitive Advantage – Innovative & exciting facility – First mover advantage – Knowledge of the domain
  25. 25. Barriers to Entry • Capital intensive project / Significant investment • Customer loyalty / Strong customer relationships
  26. 26. Competitive Matrix
  27. 27. COMPETITIVE ADVANTAGE Advantage, Breadth & Depth, Facility, Staff
  28. 28. Advantage • The competitive advantage will be maintained on three fronts 1. Breadth & depth of course offerings 2. Features of the facility 3. High quality of the instructional staff
  29. 29. Breadth & Depth • Wide variety of adventure courses • Courses at all levels • Learn a new adventure sport • Improve performance in a current one
  30. 30. The Facility • Unique pool (to simulate water activities) • Co-location of climbing wall, cardiovascular activities, free weights & access to personal trainers
  31. 31. The Staff • Experienced & well qualified • Build & maintain relationships • Important ties to the adventure travel industry
  32. 32. MARKETING PLAN Target Market Strategy, Positioning, Channels, Product/Service Strategy, Pricing Strategy, Communication Strategy, Sales Strategy
  33. 33. Target Market Strategy • Active & activity-oriented • Higher disposable income • Aged 18-50 years • Safety conscious
  34. 34. Positioning • Breadth & depth of the course • Quality of the instructors • Uniqueness of the custom facility
  35. 35. Channels • Programs/Courses – directly to consumers • Strategic relationships • Relation with adventure travel • Expansion via gear retailers • Another important channel – internet advertising
  36. 36. Product / Service Strategy “To adventure-minded individuals looking to expand and improve their adventure sports skills, the ATC is a unique and exciting facility with highly qualified instructors teaching a wide variety of fun and challenging courses, giving you confidence to pursue your adventures safely and competently.”
  37. 37. Pricing Strategy • Price at a premium level • Promotions (trials, bundles, referrals) • Main goal to get people through the door • Focus on providing a better strategy for a little more money
  38. 38. Communication Strategy • Both: adventure minded + bored & curious • Easy to navigate website with a comprehensive e-catalogue • Catalogues & tie-ups with other outdoor retailers & businesses • Most important – Word of Mouth / buzz
  39. 39. Sales Strategy • Director of Sales & Marketing (2 positions) • Sales – Lead generation & conversion • Marketing – Promotion of ATC
  40. 40. OPERATIONS PLAN Strategy, Scope, On-going Operations, Facility Construction
  41. 41. Strategy • Strength – People we hire – Partnerships we build • Relationship based strategy • Quality & timeliness
  42. 42. Scope • All operations – in-house • Other adventure training activities can be outsourced till phase 2 (expansion)
  43. 43. On-going Requirements • Operational requirements • Hiring & retaining • Partnerships • Course scheduling
  44. 44. DEVELOPMENT PLAN Facility Construction, Key Hires, Marketing Plan Implementation
  45. 45. Facility Construction • Piece of land • Funding • Design & layout
  46. 46. Key Hires • CEO • Director of Sales & Marketing • Director of Operations • CFO • Qualified Instructors
  47. 47. Marketing Plan Implementation • Marketing – strategic & coordinated • PR campaigns • Promotional campaigns • Grand opening of the ATC
  48. 48. MANAGEMENT PLAN First Team, Other personnel
  49. 49. First Team • Construction Project Manager (CPM) • CEO • Director of Operations • Director of Sales & Marketing • CFO
  50. 50. Other Personnel
  51. 51. FINANCIAL PLAN Summary, Key Assumptions, Risks
  52. 52. Summary
  53. 53. Key Assumptions • Market size = 10% of participants of adventure sports • Soft Goods will be sold from the second year onwards • No of students to increase by 20% & price per class by 10% per year • Sales & Marketing costs – 5% sales commissions, 8% other marketing efforts • Accounts receivable & payable at 2% & 6.5% (as a % of gross sales, using industry comparable numbers)
  54. 54. Risk • Market • Technology • Operational
  55. 55. FUNDING Funding
  56. 56. Funding • Initial funding = $4.6 million • Working capital = $187,000 per month
  57. 57. OFFERING Offering, Valuation, Exit Strategy
  58. 58. Offering • Equity – $100,000 initial funding by founders via common stock – $2.5 million by equity investors via convertible preferred stock – Equity for developer & general contractor (partial fee payment) – Remainder via private equity • Debt – $1.5 million bank loan – 10 years @ 10% fixed interest , secured by the facility as collateral
  59. 59. Valuation • If the ATC is valued at a P/E of 30 upon a liquidation event in year 5, through either a public offering or by being acquired, it will be worth $25.85 million. • Equity investors who invest $2.5 million for a 45% stake today would enjoy an IRR of 36% over 5 years. • Valuation – Pre-money - $3.1 million – Post-money - $5.6 million.
  60. 60. Exit Strategy • Future intention – replicate the model across • To get acquired by a major health club chain Year in which Acquired Annual IRR realized by Investor 3 17% 4 30% 5 36%

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