Entrepreneurship Management - Adventure Training Center
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This document summarizes a business plan for an adventure training center (ATC) that would provide training courses in various adventure activities. It outlines the opportunity for such a business due to growing interest in adventure sports. The ATC would have a unique facility and offer a wide range of courses taught by experienced instructors. Financial projections estimate revenues from course fees and assume initial losses that would be offset by an investment of $4 million. The management team has extensive experience in adventure training and business.
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Entrepreneurship Management - Adventure Training Center
- 2. Thrill O Philia daring to dare yourself Adventure Training Center
- 4. 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
- 5. EXECUTIVE SUMMARY Opportunity, Solution, Value Proposition, Financials, Management
- 6. 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
- 7. The Solution • Training in various activities at all ability levels • Specially designed facility & field • Course offerings to vary & grow
- 8. 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
- 9. 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
- 10. Management • Significant experience in business management & adventure training • Another partner with development expertise in designing & constructing the centre
- 11. COMPANY OVERVIEW Mission, History & Current Status, Objectives
- 12. 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.”
- 13. History & Current Status • Currently in final planning stages • Discussions with potential partners in management, development & construction
- 14. 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
- 15. OPPORTUNITY Opportunity, Survey Results, Market Size
- 16. 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
- 17. Survey Analysis
- 18. Market Size
- 19. PRODUCTS & SERVICES Description, Proposed Courses, Features & Benefits
- 20. Description • 45,000 square foot facility
- 21. Proposed Courses Kayaking Mountain Biking Backcountry Skiing GPS Navigation Safety Certification Adventure Racing Rock Climbing Mountaineering Guide Training
- 23. MARKET & INDUSTRY ANALYSIS Competitive Environment, Indirect Competition, Future Competition, Barriers to Entry, Competitive Matrix
- 24. Competitive Environment • Primary competition from existing specialized training companies • But none to the extent of the ATC facility
- 25. Indirect Competition • Typical training Gyms • Other luxury goods / services
- 26. Future Competition • Large health clubs or gyms (in the future) • ATC Competitive Advantage – Innovative & exciting facility – First mover advantage – Knowledge of the domain
- 27. Barriers to Entry • Capital intensive project / Significant investment • Customer loyalty / Strong customer relationships
- 29. COMPETITIVE ADVANTAGE Advantage, Breadth & Depth, Facility, Staff
- 30. 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
- 31. Breadth & Depth • Wide variety of adventure courses • Courses at all levels • Learn a new adventure sport • Improve performance in a current one
- 32. The Facility • Unique pool (to simulate water activities) • Co-location of climbing wall, cardiovascular activities, free weights & access to personal trainers
- 33. The Staff • Experienced & well qualified • Build & maintain relationships • Important ties to the adventure travel industry
- 34. MARKETING PLAN Target Market Strategy, Positioning, Channels, Product/Service Strategy, Pricing Strategy, Communication Strategy, Sales Strategy
- 35. Target Market Strategy • Active & activity-oriented • Higher disposable income • Aged 18-50 years • Safety conscious
- 36. Positioning • Breadth & depth of the course • Quality of the instructors • Uniqueness of the custom facility
- 37. Channels • Programs/Courses – directly to consumers • Strategic relationships • Relation with adventure travel • Expansion via gear retailers • Another important channel – internet advertising
- 38. 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.”
- 39. 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
- 40. 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
- 41. Sales Strategy • Director of Sales & Marketing (2 positions) • Sales – Lead generation & conversion • Marketing – Promotion of ATC
- 42. OPERATIONS PLAN Strategy, Scope, On-going Operations, Facility Construction
- 43. Strategy • Strength – People we hire – Partnerships we build • Relationship based strategy • Quality & timeliness
- 44. Scope • All operations – in-house • Other adventure training activities can be outsourced till phase 2 (expansion)
- 45. On-going Requirements • Operational requirements • Hiring & retaining • Partnerships • Course scheduling
- 46. DEVELOPMENT PLAN Facility Construction, Key Hires, Marketing Plan Implementation
- 47. Facility Construction • Piece of land • Funding • Design & layout
- 48. Key Hires • CEO • Director of Sales & Marketing • Director of Operations • CFO • Qualified Instructors
- 49. Marketing Plan Implementation • Marketing – strategic & coordinated • PR campaigns • Promotional campaigns • Grand opening of the ATC
- 50. MANAGEMENT PLAN First Team, Other personnel
- 51. First Team • Construction Project Manager (CPM) • CEO • Director of Operations • Director of Sales & Marketing • CFO
- 52. Other Personnel
- 53. FINANCIAL PLAN Summary, Key Assumptions, Risks
- 54. Summary
- 55. 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)
- 56. Risk • Market • Technology • Operational
- 57. FUNDING Funding
- 58. Funding • Initial funding = $4.6 million • Working capital = $187,000 per month
- 59. OFFERING Offering, Valuation, Exit Strategy
- 60. 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
- 61. 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.
- 62. 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%