Athens Sports Academy

April 22

2013
Business Plan

This document contains the complete business plan for Athens Sports Academy, LLC.

1. Introductory Page A. Athens Sports Academy, LLC 8130 Macon Highway Athens, GA 30606 B. Principals Haley Muir 563-580-6658 Haley.muir@loras.edu Mike Pudlo 847-656-6199 Michael.pudlo@loras.edu Alex Rodriguez 773-320-6374 Alex.rodriguez@loras.edu Matt Slaby 608-513-9933 Matthew.slaby@loras.edu John Cook & Brad Johnson C. Nature of Business: Recreational facility housing practices and tournaments for cheerleading, basketball, baseball, volleyball and soccer. D. Initial financing requested is a $2,053,652 investment to be paid off over 11 years. This debt will cover land and building costs, gym equipment, advertising, liability insurance, utilities, accounting, office supplies, food and beverages, wages, H&L Cleaning, taxes, payrolls and permits (Please see Contract with Investors in Appendix) E. Information, data and drawings embodied in this business plan are strictly confidential and are supplied on the understanding that they will be held confidentially and not disclosed to third parties without the prior written consent of Haley Muir, Mike Pudlo, Alex Rodriguez and Matt Slaby.

Confidentiality Agreement The undersigned reader acknowledges that the information provided by Athens Sports Academy, LLC (ASA) in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of Matthew Slaby, Alex Rodriguez, Matthew Pudlo & Haley Muir. It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to Athens Sports Academy, LLC. Upon request, this document is to be immediately returned to Matthew Slaby, Michael Pudlo, Alex Rodriguez or Haley Muir. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a business plan. It does not imply an offering of securities.

2. Executive Summary Athens Sports Academy, L.L.C. 8130 Macon Highway Athens, GA 30606 (555) 555-5555 www.athensportsacademy.com

Co-owners: Matthew Slaby, Haley Muir, Alex Rodriguez, Michael Pudlo, Brad Johnson and John Cook Athens Sports Academy will serve Athens-area residents (our focus will be on the five counties surrounding Clarke CountyOconee, Oglethorpe, Madison, Jackson, and Barrow) by providing a recreational facility housing practices and tournaments for cheerleading, basketball, baseball, volleyball and soccer. Our business is based on two simple facts: 1. There is a high demand for gym time in Athens due to the lack of open gyms/gym rental availability for programs such as volleyball, basketball, soccer, baseball/softball, and cheerleading. 2. The closest facility that can house tournaments is over 70 miles away. Our mission is to provide the community with a facility that will help the youth of the community enjoy the sports that they love. We provide our customers with high quality service and help children reach their athletic goals whatever that may be. The initial financing requested is a $2,053,673.72 investment to be paid off over 11 years to John Cook & Brad Johnson. John Cook is currently one of the top financial supporters of the University of Georgia Athletics (UGA), and Brad Johnson formal These two investors approached David Bayer, a previous member of our sister company who has moved to Georgia to run a volleyball program to ask him about Sports Enhancement Academy (our sister company) in Stoughton, Wisconsin. They have an interest in investing in a recreational facility like SEA, because they have children that are part of Daves volleyball program, and are tired of driving over 70 miles to use facilities in Atlanta, such as: Score Indoor Sports, Atlanta Eagles Sports Center and Tom E Morris Sports Complex. However, until now they have found no one who would have the knowledge and expertise to implement the business venture, and that is where our team comes into play to take advantage of the great opportunity. Also, we believe that our unique skill set will allow us to be successful in this venture. Every member of our team currently attends Loras College, a liberal arts school, so we will all be
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graduating with a Bachelor of Arts degreemeaning we will have a general knowledge of a very broad amount of topics. Also, our school is known for the high level of student-teacher interaction due to smaller class enrollments, class sizes and student-teacher ratios. This ensures that each student really knows what they are learning, and are understanding the information at full capacity. Not only do we all have a liberal arts degree, but our majors provide a wide variety of expertise, varying from Marketing, Finance and Business Management, as well as minors in Public Relations and Mathematics. In regards to financing we expect to be making profit within our first year of $321,370. In our 5th year we expect to have a profit of $367,311.40. We expect to break-even within the first month of our business, with an additional $23,468.93 profit which will be put back into our company. As stated earlier, our investors will be paid back within 11 years, with an additional 3.5% return on investment.

3. Environmental and Industry Analysis Environmental Analysis A) Economy - The economy in Athens, Georgia is actually the best economy in Georgia. Athens recent job growth is at 3.25% a little low but the future job growth is at 39.40%. When you compare these two numbers to the U.S as a whole, Athens is doing a lot better than the U.S. The U.S as a whole has a recent job growth of .35% and a future job growth of 32.10%. The average household income in Athens is $34,000 and the income per capita is $25,309. The income tax is 6% and sales tax is 7%. Although the taxes are a little high, we are still looking forward to starting our business in Athens because it is showing very promising growth and the demand for a facility like ours is very high. B) Culture - The population in Athens is 116,084, out of these 116,084 people 45.65% are male and 53.35% are female. The median age is 29.6 years, the married population is 35.74% and the single population is 64.26%. These numbers show us that since the median age is 29.6 years, which means that the population will (if they have not already) reproduce which will be huge for us in the future. Seeing the median that low too shows us that the population will be willing to rent out our facility for league games which will definitely bring business to us. Seeing the female population higher than the male population provides us with a clear look that our gymnastics area of the facility will be put to good use. - The health in Athens is pretty good when you look at the water quality and superfund sites. The water quality in Athens is a 60/100 and the superfund sites are a 79/100;
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when looking at these numbers you have to keep in mind that the higher the number the better it is. The number of physicians per 100k is 292.2 which is always good considering that we are going to run a facility in were youth leagues and AAU games are going to be played. Safety comes first. - The average one-way commute tie in Athens is 20 minutes. The commute time for the people of Athens is very low with 86.36% of people commute from less than 15 minutes to 29 minutes. On the other hand, 13.64% of people commute from 30 to more than 60 minutes. - The cost of living in Athens is a lot cheaper than the U.S average. The U.S average is 100 and Athens overall cost of living is 97. Utilities are another cheap thing in Athens, compared to the U.S average of 100, Athens is 96. Overall, Athens is a good place to live and start your business due to the low cost of living. C) Technology - We will be adapting to the technological changes in the world as we will have a twitter account as well as a Facebook account. We are also discussing allowing our customers sign up online for gym time. This would be done on our online website and there our customers will have the option of paying online or once they arrive in our facility. As far as using other technologies, we wont need to make much of an adjustment. I mean if someone invents a more sophisticated scoreboard that does everything by itself then we will definitely adapt to that but other than that we dont see ourselves been heavily impacted by a technological change. D) Legal Concerns - We will definitely hire our own lawyer just in case something does happen in our facility we have the proper representation in court. We have also discussed trademarking our name and symbol which will allow us to sue in federal court for trademark infringement, which can result in recovery of profits, damages, and costs. We have talked to a few insurance people to see how much insurance we will need for our facility as well as what waivers and contracts we need to present to our customers before they enter and use our facility. While talking with one of the lawyers in the Illinois area, she told us some great points and had a lot of great information for us. She mentioned that we need to first make sure we file for an EFIN as well as a Federal ID number. When asked what we needed to worry about letting children into our facility she stated that we needed to cover ordinary negligence and the way we do that is by having a waiver for the parents of those children to fill out. If they refuse to sign the waiver then we can refuse to give them access to our facility. We also need to worry about gross negligence, which is a legal concept which means serious carelessness. Negligence is the opposite of diligence, or being careful. The standard of ordinary negligence is what conduct one expects from the proverbial "reasonable person". By analogy, if somebody has been grossly negligent, that means they have fallen so far below the ordinary standard of care that one can expect, to
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warrant the label of being "gross". Another thing to consider is the employee hiring process. Since our employees will be required to be around children, we will have to do background checks on each and every one of them as well as check the National Sex Offender Registry to make sure none of our future employees are sex offenders. As far as the contract between us goes, we will enter into an operating agreement that will include a No Compete Clause which will be in limited time and scope. The meaning of limited time and scope in the No Compete Clause is basically that none of the owners/members can start a business similar to ours within the time that ours is running as well as they cannot open that business in Clarke County or the 5 counties in our Target Market. Industry Analysis: A) Future outlook and trends - The Fitness and Recreational Sports Centers industry, NAICS Code 713940, is a growing industry. From 2002 to 2007 the industry has grown 31% and it continues to grow. In Athens, Georgia, there are 12 fitness and recreational sports centers in the Athens and Clarke County area. The number of paid employees is actually pretty low, in Athens that number is between 100-249 employees. The first quarter payroll in Clarke County for this industry is $2,746 and the annual payroll is $11,898. In this industry, the Chief Executives make an average annual salary of $156,200, Human Resource Managers make an average annual salary of $82,000, Management Occupations make $80,900 and Marketing Managers make $76,360. Overall, the industry makes an annual payroll of $7,089,573; this number has increased from $4,953,584 in 2002. The value of sales, shipments, receipts, revenues, or business done has increased from $14,987,647 in 2002 to $21,415,643 in 2007. This industry is definitely on the rise. The possible changes in consumer needs are very important which is why we are starting our first business in Athens, Georgia. The demand in Athens for a new facility that primarily young children and teens can use is very high. From talking to Dave Bayer, he told us that there is a need for a facility because families are tired of driving to Atlanta for their options. Also, he states that These are families that have a net-worth of millions of dollars. This is the strangest dynamic I have ever encountered! The amount of money in this area is unbelievable. The University of Georgia would also like to see AAU programs increase in the area and they would also like for us to provide the youth with a facility that would allow them to improve their game and increase the interest of the community. According to Dave, The college programs want more local event options to get more potential recruits into Athens and on campus. Every other gym option for youth sports is held in single or double court gyms. A four court facility would allow groups to practice at one site with larger groups. This would be more convenient for families and user groups. Cheerleading groups are also HUGE down here and always looking for AC gyms in
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the summer. As you can see, the consumer demand in Athens and in the Clarke County area is very high. B) Analysis of Competitors - Like we said before, there are a few competitors that we will be competing against. From talking to Dave and the research we have done, we came to the conclusion that our biggest competitors would be church gyms and local park-n-recreational gyms. Customers want to be in a facility that isnt old, has plenty of spectator seating and an experienced staff. When we asked Dave what he thought were some of the reasons customers would want to a facility like this he said 4 things. He said Local convenience. The quality of the facility, since most gyms are old and lack spectator seating. The quality and experience of the staff, as well as the local support would be tremendous. Another fact that played a big part in our decision to go down to Athens, Georgia is that there are no similar facilities within an hour plus drive of Athens. The next closest facility similar to ours is in Atlanta which is 70 miles away, 1 hour and 17 minutes. C) Market Segmentation - Our customers would be from youth to teenagers to even college students or older but our main concern would be youth to teenagers. The business environment is somewhat competitive throughout the U.S but in Athens, Georgia it is not as competitive due to the lack of any facilities similar to ours. There are also facilities that are getting older and lack the attractiveness that would attract our consumers. These facilities are not as big as we are planning to make ours. We would say that the strengths of our competitors would have to be that they have been around for a while; they are nearby and are cheap to use. The weaknesses of our competitors are that they lack the spectator seating that the consumer wants; they are old and lack air conditioning. Most of their gym times conflict with different teams therefore the consumer wants a facility that would be free to use whenever they want. Also, our future competitors lack the interest of getting the community involved and trying to get the youth more involved with sports. D) Industry and Market Forecast - Like we stated before, our industry is a growing industry. From 2002 to 2007 the industry has grown 31% and it continues to grow. In Athens, Georgia, there are 12 fitness and recreational sports centers in the Athens and Clarke County area. Athens recent job growth is at 3.25% a little low but the future job growth is at 39.40% which is very promising. Another thing we would like to touch up on is the surrounding counties. The counties of Barrow, Oconee, Jackson, Madison, and Oglethorpe will play a major role in the success of our business. For example, Oconee County is one of the largest growing areas in Georgia. It was also rated the top school district in state of Georgia. The average age in Oconee is 35.2, which tells us that these people have settled down and have started to raise a family. Another good fact to state is that
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67% of the population in Oconee has either a private wage or a salary. The average median household income in Oconee is $76, 298 and the per capita income is $51,445. Jackson County is another up and coming county. The median household income is $50,409 and the average age is 34.6 years. The per capita income in Jackson County is $29,159. Barrow County sees its average age at 32.5 years and their median household income is $52,391; a per capita income $29,619. Madison County has an average household income of $41,267 and a per capita income of $28,834. Oglethorpe County has an average household income of $40,936 and a per capita income of $29,792. The birth rates are pretty good in all 6 counties. Here are the birth rates from highest to lowest: Barrow 15.0 Jackson 13.7 Clarke 12.8 Madison 12.7 Oglethorpe 11.0 Oconee 10.7 We believe that these 5 counties will provide us with customers and some of the advertisement that we need in order to make our company grow as well as allow it to be successful. 4. Description of Venture: Mission Statement Our mission is to provide the community with a facility that will help the youth of the community enjoy the sports that they love. We provide our customers with high quality service and help children reach their athletic goals whatever that may be. a. Products To start off, our products will be floor space for various activities such as letting athletic programs and other support groups rent the space at an hourly rate. Sports programs including Volleyball, Basketball, Baseball/ Softball, Soccer, and Cheerleading clubs will be our main clientele. The surrounding high school athletic teams and University of Georgia athletic programs will also be part of our clientele. We will host multiple tournaments for youth teams throughout the surrounding counties. We will also host party events such as renting our facility to families who want to have their childs birthday parties in our facility. Coaching conventions, individual training sessions and practices will be occurring at our facility as well. Athens Sports Academy is not just renting space to programs and team, but we will also be offering our customers food, beverages, and quality service during their experience at our facility. We will provide a space for children to play the sports they love, while giving these children and young adults a safe and positive environment to do so. Also as a product our company will be leasing a part of our facility to a local restaurant to serve as our concession stand. For legal information on this see appendix. b. Service Our service will be lending this floor space to our support groups, our workers service would include essentially anything that the youth programs/high school programs need to conduct whatever they need to use our facility for. Our facility will also be
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offering our customers with the convenience of having a large facility for their teams to get their games and practices in at a state of the art facility. Our staff will include Matt Slaby who played college basketball, and two college baseball players in Alex Rodriguez and Mike Pudlo. These three can hold training sessions for aspiring athletes to help them reach the goals they feel they can achieve. Our facility will also be offering our attendes the opportunity to purchase beverages and snacks during their events. Another service that we are thinking about getting into is hiring a part time photographer to be on site and take photos of children. This service would most likely be outsourced with another a local photography company. c. Size of Business land 3 acres at a price of $375,000. The building will be 26,000 sq. ft. and will cost 1.5 million. KSW construction will clear our land and build our facility that will be 26,000 sq. ft. We have an estimate on what the lay out will look like, based off our mentor business Sports Enhancement Academy in Stoughton WI. As far as the amount of people working at our facility on a day to day basis we will only have one or two positions to be filled to work the front desk, when events are not occurring in our facility. Matt Slaby will be our CEO of the company. Haley Muir will be our COO of the company. Alex Rodriguez will be our CFO. Mike Pudlo will be the Marketing Officer for the company. d. Office equipment Our office equipment will include two desks in our office, a printer/copy machine and two desktop computers. Our equipment for our gymnasium will include eight basketball hoops (two for each court), four volleyball nets, ten basketballs, ten volleyballs, four soccer balls with two futsol size soccer goals , and two batting cages, including a softball pitching machine and a baseball pitching machine. Our personnel will be the four of us and two to four part time workers that will be on site during tournaments and other large events that will be taking place in our facility. Our office equipment costs will be discussed more in our financial plan e. Background of Entrepreneurs: Haley COO, Alex Finance, Matt Management, Mike Marketing (Background information can be located in the Organizational Plan) The mission of our new venture is to open a sports and recreational center for the City of Athens. We will provide service for anyone who is interested in using our facility. Our focus will be on the five counties surrounding Clarke County (Oconee, Oglethorpe, Madison, Jackson, and Barrow). We are going into business because we are all passionate about sports, and there is a high demand for gym time in Athens due to the lack of open gyms for programs such as volleyball, basketball, soccer, baseball/softball, and cheerleading, and to make money while providing each customer with excellent service, making sure that their experience at our facility is as positive as possible. Also we feel that with our unique set of skills/majors will allow us to be able to successfully open and run a sports and rec center in the city of Athens. We will be successful in this venture because, there is a high demand for what we are doing and we will do what needs to be done to reach our customers and help us achieve our goal. Our facility will be located in Athens, GA. The location is crucial for us because it will be around many communities that have up and running sports programs, the only problem is they have no place to play their games, thats where we come in. There are a number of high schools within 4 miles of our facility which will be prime spots to hand or brochures and get our name out to kids. The counties of Barrow, Oconee, Jackson, Madison, and Oglethorpe
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will play a major role in the success of our business. For example, Oconee County is one of the largest growing areas in Georgia. It was also rated the top school district in state of Georgia. The average age in Oconee is 35.2, which tells us that these people have settled down and have started to raise a family. Another good fact to state is that 67% of the population in Oconee has either a private wage or a salary. Jackson County is another up and coming county. The median household income in 2009 was $45,252 and the average age is 34.6 years. Barrow County sees its average age at 32.5 years and their median household income is $46,180. We believe that these 5 counties will provide us with customers and hopefully that would take care of some of the advertising part of our business. Also these high schools may need places to practice if their gyms are being used. We will have high schools practice at our facility. 5. Operations Plan: Introduction: Due to the fact that our facility is one that will be a service provider rather than a manufacturing company, or a retailing company, our operation plan will involve a few intangible performances as well as tangible aspects to our business. For our company to thrive and be successful our main focus is to show possible customers and partners why our facility is worth using in place of other similar facilities. This means that we must strive to satisfy our customers needs and demands. Location: As we stated earlier, our Athens Sports Academy will be located just south of the University of Georgia in Athens, as Google Maps calculates the drive is approximately 5.3 miles from our facility location to the University of Georgia. This makes our facility quite accessible for those support groups coming from the University of Georgia campus, along with college students who have the desire to visit our facility as well. Due to the fact that a few of our key supporters are University of Georgia athletic groups, it is quite important that our facilities location is within a reasonable distance from the universitys campus. The location of our facility is just one reason why the interest from University of Georgia programs and groups will be very apparent throughout the school year and summer months. Our location will not only be captivating to the University of Georgia, but will also help attract programs from all over the Athens area due to the fact that our facility will be the only one of its kind throughout the entire surrounding communities. Though there are many groups throughout the area that are already interested in being a support group for our facility, as our facility gets up and running more programs and groups that find themselves tired of traveling to cities like Atlanta to find facilities similar to ours will gain interest as well. With the large amount of programs already present in the area, gym time throughout the area is very scarce and the fact that a facility like ours will now be just miles away from most of these programs, the demand for our facility will be quite high. With the growing number of children and teens throughout the Athens area, the number of schools throughout Clarke County is very high and projected to grow as the population continues to grow. There are currently twenty one schools in the Clarke County school district ranging from fourteen different elementary schools, four middle schools, and three high schools. This just goes to show how many children and teens there are throughout this area. This being
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the case, the projected need for facilities like ours will continue to grow as our target market grows as well. The fact that each of these schools are within 15 miles of our facility, makes our facility very accessible for adults with young children throughout the area, as well as teens. The fact that our facility idea has already gained the attention and support of eight different support groups throughout the Athens area shows that with our facilities location, groups and programs will find themselves interested in our facility as well as we help satisfy the needs of our main support groups and clientele. Our facilities location will be very important in helping Athens Sports Academy the support groups in which we will need to get the company off the ground and due to our close proximity to twenty one schools throughout Clarke County and the University of Georgia will give our facility huge upside when programs and other possible clientele groups compare our facilities to similar facilities elsewhere. Facility Layout: Not only will our location be a pivotal aspect in helping our facility achieve successful customer satisfaction, but the facility itself, and the facilities layout will also be a key aspect in meeting customer demand. Like we stated earlier, our facility will be the only one of its kind within a seventy mile radius. Unlike the other similar facilities in the area that have at most two or three full court basketball courts, ours will have four full court regulation size basketball courts underneath the same roof. Our facility will be made up of four top of the line full size regulation size basketball courts with the ability to turn each court from a basketball setup to volleyball, cheerleading, or even a baseball setup in just minutes. Athens Sports Academy will give our clientele the opportunity to have not only basketball practice, but also the courts will also easily transform into volleyball courts, cheerleading practice and competition setups, and with the dropping of the two batting cages in our facility; a baseball setup. These factors separate us from any facility in the area because no facility outside of the Atlanta area and aside from the University of Georgia athletic complexes, gives programs the opportunity to practice in an indoor state of the art facility in which so many different types of sports teams and competition based groups can perform on. Our facility will attract sports programs that seek to find more available gym rental time for practices, camps, leagues, tournaments and games in an area in which this type of gym time is scarce. Programs that run tournaments and leagues will be very attracted to our facility because instead of renting gym time from multiple locations to run these events, these programs and event coordinators can rent our facility during these times and have every game or competition under roof, rather than having the event at multiple locations. Athens Sports Academy will attract many different sports programs, in which most facilities in the area wont be able to meet their demands. Other facilities in the area may be able to meet the requirements for basketball, volleyball, cheerleading programs, and soccer programs, but many will not be able to meet the demands of baseball, softball or soccer teams. Athens Sports Academy will have the rare opportunity to meet each of these sporting requirements. On the fourth court in our facility, closest to the storage room we will have two batting cages that will have the ability to be lowered and raised up to the ceiling of the building electronically. This means that not only can baseball and softball teams be able to throw the ball around in the facility, but they will also be able to have batting practice as well. This aspect of our facility will be quite useful when weather in the area does not cooperate. Athens Sports Academy will undoubtedly have the most state of the art gymnasium facility in the area, but that isnt all that our facility will have to offer. When you walk into the
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front doors of our facility you will be greeted by a lobby area in which multiple tables and chairs will be available for seating outside of the gymnasium. Athens Sports Academy will also offer concessions available during events, as well as bathrooms and locker rooms for obviously both men and women. These locker rooms will give players and competitors the opportunity to get dressed and change their clothes as well as give them a place to keep their valuables protected in a private and safe environment. Not only will the building itself be more attractive to possible customers and support groups, but the fact that our facility will have adequate parking will also be a positive aspect of our facility. With the number of people that are expected to attend sporting events, it is important that there is adequate parking for those who are attending. This aspect seems to be a problem for many facilities, due to their lack of land around them, but with the size of our building and the size of our piece of land, parking will not be a problem. These aspects of our facility will help us greatly when it comes to meeting the expectations and demands of our clientele. These aspects will also differentiate us from the other facilities and gymnasiums in the Athens area, because again we will be the only facility offering each of these components to potential customer. Our facility will have a leg up on the competition in every aspect due to the top of the line equipment and state of the art facility. Employee Personnel: Another aspect in which will be very important to our company satisfying the needs of our customers will be our personnel at our facility. This aspect will help us out tremendously because unlike other facilities in the area, in which are mostly made up of school gymnasiums; our facility will have someone working on site during the day and at all times when someone is renting our gymnasium. This will separate us from our competition because if there is a problem or help is needed; there will always be an employee on site to help with any of our customers needs. This will also make it very easy to contact us for information about our facility or anything else in which a possible customer may need. There will always be an employee on site to answer the phone, answer emails, and help customers during the normal work hours from 8-5 and during the hours in which one of our facility users is renting the gymnasium. Being accessible to the general public throughout the day will be an advantage in which we will have over many of our competitors as well. Not only will there be employees at our facilities throughout the day, our facility manager Matt Slaby is someone who has a large amount of experience working for this type of facility at our mentor business Sports Enhancement Academy in Stoughton and Verona Wisconsin. This aspect will be important in attracting customers because it will show that we have the experience and overall knowledge of how a facility like ours needs to be run to be successful and this will help Athens Sports Academy grow the trust of its customers, which in turn will bring even more supporters our way. It is important to have someone with the experience and knowledge to run a business because without that, there is no reason for a potential customer to put their trust in you or your business without them knowing that the business has someone in charge who has a grasp on what needs to be done to be successful and efficient. Technology: Athens Sports Academy will be the most up to date and new facility in the Athens area, which means that our technology and equipment throughout the building will be top of the line compared to those facilities that are quite a bit older that would be our possible competitors in this particular area. The technology in which we will offer our clientele in the lobby will include brand new vending machines sponsored by Coca Cola, flat screen televisions, and an ATM as
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well. Each of these aspects will add convenience to our facility. In our gymnasium we will also be offering our potential customers top of the line technology to make their experience in our facility as positive as possible. A few examples of the technology we will have in our facility include our wireless scoreboards on every court. These scoreboards make it possible for score keepers to sit at our score tables and relay the scores and game information to the scoreboard wirelessly. This will lessen the chances of someone tripping over cords and delaying events, or even injuring themselves when doing so. The technological advances our facility will have over our competitors will not only be shown on site at our facility, but it will also be shown in how our company uses technology to advertise, market our business, and promote our company and the events in which are being held there. Our company will be very involved through social media, in which our society relies heavily on for information. This aspect in technology will be taken full advantage of as Athens Sports Academy will have both a Twitter and Facebook page, including a business website in which the general public can find out information about our facility and also find out about new events and information about these events on. The use of internet marketing will be a large part of the way we promote our facility as well as a way to promote programs and events once our facility is off and running. Summary: Each of these aspects of our facility will help our company meet the needs and demands of our customers and potential customers. Due to the fact that our facility is going to be the only one of its kind within a seventy mile radius will help make our facility more captivating to potential users. Though our facility may cost a few dollars more than school gymnasiums, the positive experience our customers will have using our facility will be worth the extra couple of dollars. 6. Marketing plan a. Pricing Our pricing will be around $55/ hour of gym space rented; this price is higher than the amount that is used at the facility that we are using as a model. The company that we are using as a model is out of Stoughton, WI. Sports Enhancement Academy is the company that we are using as a model for our business. We believe that our price can be higher than this facility because our market of customers is much larger than the market of customers that the company has in Wisconsin. The amount of youth leagues that are located around our location is larger than the market around our mentors facility. b. Promotion We will be in contact with several of the local restaurants, ice cream vendors, and companies to set up promotions. This will be a way to make money off of advertisement posters that we will have in our gym. We have a couple of very interesting ideas for our promotions that we will offer. For example there are 4 pizza places within 2 miles of where our facility will be: Dominos Pizza, Foxs Den Pizza, Bulldawgs Pizza, and Peppinos Pizza. These companies will be interested in our business because after games kids will be hungry and we can offer a promotion that helps these pizza places receive more business. In return, we will have these restaurants sponsor/pay for some of the equipment that we have at our facility. These promotions could be something like us giving wristbands to the kids that played in that nights game, and having those wristbands be used for free ice cream at one of the restaurants after the game. Ideas like

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this will help attract restaurants to want to do business with us and help sponsor some of our events. We will offer several local companies the opportunity to buy banners and advertisements that we will put up on the walls of our facility. Local businesses will want to have their companys information on the walls of the facility where large numbers of people from all over will be seeing their information. These banners will be a great way to receive a constant payment coming into the company. Hotels will also want to purchase advertisements in our facility because if there are tournaments and kids are traveling from far away, they will need to stay at hotels. Our company can serve as an advertisement for local hotels; we will of course charge the hotel with a monthly cost to have their advertisement up in our facility. We will charge these local businesses a fee of $50 per month for an advertisement/ banner in our facility. c. Distribution Since our product is essentially our facility we will not need to distribute our product. However we will be actively marketing our facility while our facility is being built. We will be doing this by handing out brochures to local schools and county centers. Also we will have an up and running Facebook page and Twitter account. On these social media sites we will be posting information of different tournaments and games going on, and also posting pictures of the facility and the games that go on during the tournaments. d. Product Forecasts Since our product is the facility, the forecast for it will remain the same. All that will change is the necessary cleaning and repairmen that will be needed to maintain the facility. e. Controls/Uncontrollable We will be able to control our product, which is our facility. We can control the cleanliness of it, how we market it, and who we do business with. Some uncontrollables that we may encounter are the market in the counties that make up our target market. One uncontrollable that will play to our advantage is that there are over 600 youth travel baseball and softball teams in northeast Georgia that all need batting cage time. Our facility can help with this. f. Customers Our customers will be located in the six counties surrounding our company which include Clarke, Oconee, Oglethorpe, Jackson, Barrow, and Madison). In these six counties we will have a total of 45 elementary schools, 3 primary schools, 18 middle schools, and 15 high schools. We will target these schools with our marketing efforts. Another large customer for us will be the local youth groups that are around the area for the six counties. Another customer for us will be people who want to use our facility for camps, birthday parties, and any event that will need a large space. g. Support Groups the support groups that we have behind us will be several youth leagues in the area, which need a facility to play their sports. The support groups that we have lined up as customers are: a. Georgia Juniors VBC club of 90 100 families currently. They are looking to combine with two other small area local clubs to create a larger single club closer to 200 250 families. We are looking to take 2 3 night of full gym court time per week during club season. b. Core Soccer Futsal (indoor soccer on gym floor) groups are tied in for hardcourt time usage. Core Soccer offers many different summer camps that help kids work on their strength speed and agility. This soccer club will be using our facility for some of their camps.

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c. Athens Volleyball Academy The highest percent of this clientele will be youth age kids 1st 8th grade, this group of people are looking to rent court time for seasonal year round clinics, camps and training. AVA will be the leader in developing youth volleyball in northeast Georgia. Those players will eventually graduate into Georgia Juniors VBC. d. Athens Premier Youth Basketball this group is around 350 400 families around the age of 3rd 7th graders boys basketball teams. This league is spread out all over the Athens area, and they are forced to play in a single court gym for league and tournament games and practices. These single court gyms are very inopportune for such a large group of kids. They are in need of gym floor space and time. Their leagues run from 8am 8pm on Saturdays. e. Upward basketball and Cheerleading this is another large group of families (300 350 families). This group of kids is from PreK 4th grade boys and girls. This league is currently run out of 2 local church gyms with one full basketball court split in half. This is also too small of a venue for this large of group and we know that this group is looking for a large facility to hold their practices and games. This league runs form 8am 6pm on Saturdays. h. Competitors Our main competitors will be in Atlanta, GA, where there are a couple facilities similar to ours. However our customers are more than an hour away from the facilities in Atlanta. Our facility will offer a convenient location for our customers wants and needs. Another competitor will be the Athens-Clarke County Leisure Services Department, this facility is fairly close to ours but we offer a very different product, our facility. Our facility will have more gym floor space than the ACC Leisure Services can offer. This gives us a huge advantage; we can run much more tournament games in a shorter amount of time. We also can host more practices than the facility can at the ACC Leisure Services. i. S.W.O.T. Analysis a. Strengths As a company our strengths are going to be our facility and our customer service. We believe that our facility will be superior to our competitors because it offers a larger space for our customers to do whatever they need the space for. Also our facility is in a located in the Athens area, which has a very high demand for a facility like ours. Our facility is a lot closer to our target market making it superior to our main competitors that will be more than seventy miles from our location. Another strength of our company is our management team. Matt Slaby, Alex Rodriguez, Haley Muir, and Mike Pudlo all have a passion for sports as well as the drive to help better young peoples lives throughout the community. b. Weaknesses The initial weakness of our company is going to be the cost of our business venture. This is a very expensive project, which will require a lot of money upfront to get the business started. Also a weakness of this new venture will be that we are entering a location that we are not familiar with. c. Opportunities We will have multiple opportunities for growth. We have estimated that our sales will increase 6% each year. This is due to a growing market of customers (see demographic data). We will also have multiple opportunities to earn revenue from multiple local businesses. Local businesses will have the opportunity to advertise their companies in our facility to help them
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gain attention and new customers. This is a great way for us to continually make money each month other than making money off our gym space rentals while still helping out the community. d. Threats The threats that our business may face is the possible downward slope in the economy of our target counties surrounding our facility. The economy as of now will be sufficient enough for our company to become very profitable, but there are things that we cannot control like a recession that will lead to a drop in our revenue. Another threat that is not current, but may become a problem in the future is the threat of possible similar facilities moving into our target area. As of now we will be the only business of our find within a seventy mile radius. However as we become successful other people may see what we are doing as company and may strive to get into this type of business venture. Social Media will be a huge aspect in our advertising strategy because young people use social media quite often in todays society. We will start by creating a Facebook page and Twitter page to help advertise our facility and events, as well as the key support groups that will work out of our facility. With these pages we will be posting pictures of the facility, tweeting special events or sales promotions that we are having. We will target high school coaches, youth league directors, and grade schools. Once we contact these people our hope is to get them to come to our facility and try it out and see how they like it. After they have had a positive experience, when the games/practices are done the childrens parents will pick them up from our facility. Parents play another key role for us because we can use them to help spread the word of mouth to other parents about this great new facility where their kid plays his sports games. Also we will be using ads in local newspapers about the new arrival of our company, special events, and sales promotions. We will have a person on staff, Mike Pudlo, that goes out and talk to people about our company constantly. Mike will help people get new customers foot in the door, and then it is up to all of us to make their experience at our facility as best as it can be. Mike will be traveling to the surrounding counties, to look for new customers. Our trading zone will consist of 6 counties Clarke, Oconee, Oglethorpe, Madison, Jackson, and Barrow County. We will go after these counties because we know that our customers will be willing to drive the distance to come to our facility. 6. Organizational Plan: A. Form of ownership i. LLC- Limited Liability Company (Please see LLC Operations Plan for additional Bylaws of Company) 1. LLC contains members, not shareholders 2. Each member owns an interest in the business as designated by the articles of organization 3. Liability does not extend beyond the members capital contribution to the business. Thus, there is no unlimited liability. 4. Members may transfer their interest only with the unanimous written consent of the remaining members.
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5. The Internal Revenue Service now automatically treats LLCs as partnerships for tax purposes (See appendix for full Tax Attributes of Partnerships) a. Partners pay tax on their pro rata shares on their pro rata shares of income on individual return even if income not immediately distributed b. Capital gain to partnership will be taxed as a capital gain to partner 6. Death or withdrawal has no impact on the continuation of the business a. The deceased or withdrawn partner may be replaced b. The choice of the replacement will be decided by majority vote 7. Transferability of interest a. Transfer of interest allowed i. General partners cannot sell their interest without first refusal from the remaining general partners ii. Majority vote on acceptance of the new potential partner 1. If majority no, a new potential partner must be chosen B. Identification of LLC members (Please see LLC Operations Plan for more bylaws regarding participation of members, as well as Contract with Investors in Appendix) a. CEO Matthew Slaby i. 12.75% stake in company, and 1 vote b. COO Haley Muir i. 12.75% stake in company, and 1 vote c. CMO Michael Pudlo i. 12.75% stake in company, and 1 vote d. CFO Alex Rodriguez i. 12.75% stake in company, and 1 vote e. John Cook (Management Advisor) i. 24.5% stake in company, and 1 vote ii. Will continue to have an investment in ASA until paid off in 11 years f. Brad Johnson (Management Advisor) i. 24.5% stake in company, and 1 vote ii. Will continue to have an investment in ASA until paid off in 11 years C. Management team background (see resumes in appendix)
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a. Matthew Slaby is majoring in Business Management, and is a junior at Loras College. He has a long history working with our mentor company Sports Enhancement Academy in Stoughton, WI. Matthew has been working for this facility since 2007 when the business first opened its doors in November. During his time working at this facility he has been in charge of the social media aspects of the business, along with the businesses website. He also is involved in the AAU program ran out of the facility which is now the second largest AAU basketball program in the state of Wisconsin. Not only has he been in charge of the technology side of the business but he has also coached for the AAU program for the past three years as he coaches the 14U boys team for the Wisconsin Academy basketball program. During this time he has had a large role in the boys side of the program, dealing with apparel and team selection processes as well. During the past three years Matthew has been the tournament director for many of the basketball tournaments ran at the facility which means that he was in charge of running these events. These factors show that Matthew has the experience and knowledge to run this type of facility due to the fact that he has been involved with our mentor facility for years and understands how a business like ours needs to be run for it to be successful. Matthew has also been in charge of the scheduling process for the facility in Stoughton, WI, whether it be the gym schedule for each month of the year, or tournament schedules, he has the knowledge and ability to provide our business with each of our scheduling needs. Matthew Slaby is passionate about helping young student athletes accomplish their goals through both sports and education, as well helping them become respectable young adults. b. Haley Muir is a senior, and is majoring in Finance and Management with a minor in Public Relations. Most currently she is working as a waitress at Champps Americana where she has learned outstanding personal skills, customer service all the while being able to think on her toes, act quickly and deal with all sorts of customers. Prior to her serving job, Haley had gained retail and sales experience by working as a beauty consultant for Merle Norman Cosmetics. She excelled at meeting sales goals, and quickly built a strong customer clientele. She also had a great opportunity to gain professional business experience by working as an intern for McGraw-Hill, and transitioned into a full time employee as a Sales Support Assistant. Some other great experiences she has recently taken a part of are working as the Fundraising and Public Relations Chair for Alpha Sigma Alpha Sorority, as well as being a member of the Entertainment and Logistics Committee for Dance Marathon.

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c. Michael Pudlo is a junior at Loras College, majoring in Marketing and Management. Mikes previous jobs have included working concessions at the Dubuque Sports Complex, where he learned very valuable people skills. He has an internship at Great River Technologies, in Dubuque for this upcoming summer. There he has the title of an assistant project editor, where his duties include using Microsoft excel and HTML coding to set up the companys projects. Mike will also be helping other interns with their projects as well. Mike is also a member of the Loras College Baseball team, being on that team and other teams have taught Mike very important life lessons. Hard work, team work, and responsibility are just some of the things Mike has learned and acquired skill at while being on a team. Mike also is a mentor down at the Prescott Elementary School in Dubuque, IA. There Mike has had a child that he has mentored for 3 years. When Mike mentors, he helps his buddy with homework, reading challenges, and tests. Throughout Mikes college experience Mike has learned a lot about self-responsibility and hard work. These two things can make Mike a very valuable person to have on any businesses team. His passion marketing will help this company reach its potential customers and help instill a sense of safety in the minds of investors. He is a very hard working individual who will not let any project get the best of him. d. Alex Rodriguez is a junior at Loras College, and is majoring in Business Management with a minor in Mathematics as well as a concentration in International Business. Alex has also taken half of the classes necessary to minor in Accounting and Finance so he knows what he is doing when it comes to financing. He has also done his fair share of Pro Forma Income Statements, Pro Forma Cash Flows and Pro Forma Balance Sheets. Alex has shown great leadership skills while working in team projects; he has also shown that from working in these team projects he has earned great responsibility, confidence, and the respect of many people he has worked with. Alex is very organized, communicates with the team very well, makes sure that everything gets done the correct way, he is honest and is willing to speak his mind as well as he can negotiate effectively if given time to think of the positives and negatives of the decision that needs to be made. Alex has had experience working on projects with bosses of companies and men of title. Alex helped the 12th Ward Alderman in Chicago, IL design the logo for a community project and was one of the reasons the project, called Latinos for Education Foundation, worked. What the project was is basically a 3 day event in which we gave school supplies to children of families around the community/area that could not afford the school supplies. We also brought in carnival rides, music performers as well as different community clubs, vendors, food sponsors, school
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supply sponsors, motivational speakers as well as Mayor Richard M. Daley. Our goal was obviously to provide those school supplies to those children but we were also interested in keeping the children out of the streets which is why we invited community clubs such as the boys and girls club, karate club, young police club in which you can ride along and hang out with police officers and we also offered free memberships to the YMCA. Alex helped set up this project by meeting with the likes of Mayor Richard M. Daley, the Mayors board of trustees, one of the managers at one of the Pepsi plants in Chicago, one of the Target store managers in Chicago, owner of the carnival rides, Sarita Villareal, Humboldt Park Alderman Mikey Sanchez who at that time was one of the key investors and also provided us with security as well as George Cardenas, who is the 12th Ward Alderman. Alex would meet with these gentlemen and a couple of ladies twice a week, usually on Tuesdays and Thursdays, to go over the plan for the project and what he was expecting from them as far as donations and what they were willing to do. Some of the money they ended up making went to charities in our area that were in need of donations and some of the money went to St. Anthonys hospital. So as you can see, Alex has shown that he can handle the pressure and stress of working with big customers as well as big name people. He also showed that he knows what he is doing when it comes to negotiations. Something interesting about this project is that the project lasted more than 5 years. D. Roles and responsibilities of members of organization a. CEO i. Planning 1. Creates annual operating plans that support strategic direction set by the board and correlate with annual operating budgets; submits annual plans to the board for approval 2. Collaborates with the board to define and articulate the organizations vision and to develop strategies for achieving that vision 3. Develops and monitors strategies for ensuring the long-term financial viability of the organization 4. Develops future leadership within the organization ii. Management 1. Promotes a culture that reflects the organizations values, encourages good performance, and rewards productivity 2. Hires, manages, and fires the human resources of the organization according to authorized personnel policies and procedures that fully conform to current laws and regulations
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3. Oversees the operations of organization and manages its compliance with legal and regulatory requirements 4. Creates and maintains procedures for implementing plans approved by the board of directors 5. Ensures that staff and board have sufficient and up-to-date information. 6. Evaluates the organizations and the staffs performance on a regular basis iii. Financial management 1. Oversees staff in developing annual budgets that support operating plans and submits budgets for board approval 2. Prudently manages the organization's resources within budget guidelines according to current laws and regulations 3. Ensures that staff practices all appropriate accounting procedures in compliance with Generally Accepted Accounting Principles (GAAP). 4. Provides prompt, thorough, and accurate information to keep the board appropriately informed of the organizations financial position iv. HR management 1. Recruitment and contracting of company and project staff; 2. Employee development, and training; 3. Policy development and documentation; 4. Employee relations; 5. Performance management and improvement systems; 6. Employment and compliance to regulatory concerns and reporting; 7. Company-wide committee facilitation including planning, production, staff and 8. Board of Directors, including arranging meetings and agendas, attending and minuting meetings; v. Marketing and PR: 1. Manage advertising opportunities in other theatre program, press and at venues. 2. Organize the availability of company members for media/PR events as necessary. 3. Oversee content, production and distribution of all marketing and publicity materials (posters, program, flyers, mail outs, brochures etc) with director, designer and project manager. 4. Manage press development;
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5. Co-ordinate the invitation of potential future promoters and supporters of the company. vi. Community Relationships 1. Serves as the primary spokesperson and representative for the organization 2. Assures that the organization and its mission, programs, and services are consistently presented in a strong, positive image to relevant stakeholders 3. Actively advocates for the organization, its beliefs, and its programmatic efforts 4. Acts as a liaison between the organization and the community, building relationships with peer organizations when appropriate vii. Programmatic Effectiveness 1. Oversees design, delivery, and quality of programs and services 2. Stays abreast of current trends related to the organizations products and services and anticipates future trends likely to have an impact on its work 3. Collects and analyzes evaluation information that measures the success of the organizations program efforts; refines or changes programs in response to that information viii. Fund Raising 1. Serves as a primary person in donor relationships and the person to make one-on-one fund raising solicitations 2. Develops fund raising strategies with the board and supports the board in fund raising activities 3. Oversees staff in the development and implementation of fund raising plans that support strategies adopted by the Development Committee 4. Oversees staff in the timely submission grant applications and progress reports for funders b. CMO i. Developing longer-term strategic plans for growth and expansion ii. Developing a network of information sources iii. Facilitate growth, sales, and marketing strategies at an organization iv. Increase revenue generation v. Reduce costs vi. Perform risk mitigation. vii. Prepare overall marketing strategy.
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Develop programs with quantifiable objectives to measure results. Implement and manage marketing budget. Leverage data and analytics to drive insights. Modify or redirect business intelligence strategy. Oversee and direct the efforts of the marketing team. Develop segmentation, competitive analysis/market intelligence, prospecting, lead generation, product and market development, pricing, promotions, communications and budgets, sales force effectiveness, strategic planning, services units and revenue retention and growth. xiv. Oversee the development of new products. xv. Create product roadmap. xvi. Develop and measure key metrics around the business including user acquisition, conversion rates, engagement rates, satisfaction and renewal rates. c. CFO i. Reviewing operating and capital budgets ii. Ensuring the proper use of assets iii. Assist in performing all tasks necessary to achieve the organization's mission and help execute staff succession and growth plans. iv. Train the Finance Unit and other staff on raising awareness and knowledge of financial management matters. v. Work with the President/CEO on the strategic vision including fostering and cultivating stakeholder relationships on city, state, and national levels, as well as assisting in the development and negotiation of contracts. vi. Participate in developing new business, specifically: assist the CEO and COO in identifying new funding opportunities, the drafting of prospective programmatic budgets, and determining cost effectiveness of prospective service delivery. vii. Assess the benefits of all prospective contracts and advise the Executive Team on programmatic design and implementation matters. viii. Ensure adequate controls are installed and that substantiating documentation is approved and available such that all purchases may pass independent and governmental audits. ix. Provide the COO with an operating budget. Work with the COO to ensure programmatic success through cost analysis support, and compliance with all contractual and programmatic requirements. This includes: 1) interpreting legislative and programmatic rules and regulations to ensure compliance with all federal, state, local and
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viii. ix. x. xi. xii. xiii.

x.

xi. xii.

xiii. xiv. xv. xvi.

xvii.

xviii. xix. xx. xxi.

contractual guidelines, 2) ensuring that all government regulations and requirements are disseminated to appropriate personnel, and 3) monitoring compliance. Oversee the management and coordination of all fiscal reporting activities for the organization including: organizational revenue/expense and balance sheet reports, reports to funding agencies, development and monitoring of organizational and contract/grant budgets. Oversee all purchasing and payroll activity for staff and participants. Develop and maintain systems of internal controls to safeguard financial assets of the organization and oversee federal awards and programs. Oversee the coordination and activities of independent auditors ensuring all A-133 audit issues are resolved, and all 403(b) compliance issues are met, and the preparation of the annual financial statements is in accordance with U.S. GAAP and federal, state and other required supplementary schedules and information. Monitor banking activities of the organization. Ensure adequate cash flow to meet the organization's needs. Serve as one of the trustees and oversee administration and financial reporting of the organization's Savings and Retirement Plan. Investigate cost-effective benefit plans and other fringe benefits which the organization may offer employees and potential employees with the goal of attracting and retaining qualified individuals. Oversee the production of monthly reports including reconciliations with funders and pension plan requirements, as well as financial statements and cash flow projections for use by Executive management, as well as the Audit/Finance Committee and Board of Directors. Assist in the design, implementation, and timely calculations of wage incentives, commissions, and salaries for the staff. Oversee Accounts Payable and Accounts Receivable and ensure a disaster recovery plan is in place. Oversee business insurance plans and health care coverage analysis. Oversee the maintenance of the inventory of all fixed assets, including assets purchased with government funds (computers, etc.) assuring all are in accordance with federal regulations.

d. COO i. Responsible for all activities when CEO is absent.

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ii. Work closely with the CEO to develop and accomplish goals and strategic plans established by board members and executives of the Company. iii. Spearhead the development, communication and implementation of effective growth strategies and processes. iv. Collaborate with the management team to develop and implement plans for the operational infrastructure of systems, processes, and personnel designed to accommodate the rapid growth objectives of our organization. v. Responsible for the measurement and effectiveness of all processes internal and external; Provides timely, accurate and complete reports on the operating condition of the Company. vi. Motivate and lead a high performance management team; Mentor direct reports to cultivate skills and to increase consciousness of the interrelationship between each department in the operations groups. vii. Provide direction to a service organization that mirrors the adopted mission and core values of the Company. viii. Remain knowledgeable of market and industry trends, competitors, and all aspects of ASAs market. ix. Establish key performance indicators for management of the operations group. x. Responsible for capital planning and expenditures. xi. Establish compensation, training, short and long-term goals for the operations groups. xii. Gather and analyze customer tends to assist in developing corporate strategy. xiii. Represent the Company at various community activities; Meet and network regularly with business leaders in the community. e. Management Advisors i. Provided necessary funding to run business venture ii. More loosely tied to the organization iii. Collecting money monthly

7. Assessment of Risk: A) Evaluate weakness(es) of business - Some of the potential weaknesses that we might face are that due to the lack of interest shown by our future competitors, those actions by them led to the lack of interest in the youth, the youth might not be willing to come into our facility. We also believe that another weakness could be that we are building from scratch, which
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means that we would need to tear up some land and that could infuriate some people. Another weakness that we could face as business is our customers complaining about potential high prices so we are putting a lot of thinking and discussion as to what to make our prices. Another weakness could be that this is our first business that we will run so maybe we wont start off real hot like some businesses do. Also, another weakness could be that we 4 are thinking of being the owners and maybe at some point we will bump heads and cause a major problem in our facility. The final weakness that we can think of is maybe the local park-n-recreational gyms and church gyms might feel threatened by us coming in to Athens so they might try to boycott or protest our facility. B) New Technologies - New technologies will play little to no effect on our business. Our business isnt really dependent on technology; it is mainly dependent on physical exercise and fitness. The only way we see technology playing a major factor in our business is if there is an invention of a scoreboard that does not require the help of a human being to control it, then thatll be when technology would play a role in our business. Another way I see new technologies helping us out is through social media sites such as Twitter and Facebook. We are looking to promote our facility anyway we can and if another social media site were to be created then we would definitely look into making a profile for our business to get the word out there. C) Contingency Plans - We are going to deal with all these weaknesses as well as we can. We feel like brining a facility like ours to the city of Athens will definitely catch the attention of the community and of people around Athens. We fill like our business is in the correct spot because there are a lot of people that are willing to invest in our facility and a lot of families that are tired of driving to Atlanta to get a decent facility. We have extreme confidence in our team that we believe we can deal with any of these weaknesses and make the most out of this once in a lifetime opportunity. - Our Plan B would have be to cut prices or relocate. We feel like this plan will not be necessary because we believe that our business will succeed based on the high demand that the consumers have stated. But if we did have to use a Plan B it would have to be because the community and city of Athens did not show any interest in our facility. Another reason we see ourselves using a Plan B is if something happens with our investors and owners. We can see our investors and us, the owners, disputing over ownership of the facility. 8. Financial Plan For our company, year zero will be a great determinant factor in how far our business goes. We will have 2 angel investors, John Cook and Brad Johnson, who are willing to invest money in our company since their children are part of our target market.
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From doing research and talking with a couple of our mentors, we concluded that it would take 7 months to get our facility built and an extra 2 months to get it ready to go. We are willing to take those 9 months and take it slow in order to make sure that our company is built correctly as well as make sure our customers have a top notch facility. In our first year, we will have sales of $512,044. Our income before taxes will be $302074.40 as you can see from our Pro Forma Income Statement, 5 year Summary. The Net Profit after taxes will be $211,452.08. The way we decided go about the first year is by paying us our regular salaries. We, the owners/members, will earn 10% of that Net Profit. Our revenue after the salaries/withdrawals will be $126,871.25. Then we will take 10% of that and put it into our working capital. The revenue left after taking out the Working Capital will be $114,184.13. A big thing that we discussed was whether or not we wanted to do the Ownership Payment Bonus the first year or not and we decided that we are going to concentrate on paying our investors back. We decided that the first year the investors will get 13.09% of our total sales, the second year we will pay them 14.57% of our total sales. The third year we will pay them 15.96% of our sales, then the fourth year we will pay them 17.06%; the fifth year they will be paid 17.72% of our total sales. By year 11, we plan to have our investors fully paid and we will also give them a 3.5% additional return on their full investment. Upon reaching the full payment they will no longer be members of the management team. If our projected revenues are not reached then the repayment plan will be adjusted, so the company is still able to run successfully with the working capital. Regarding break even and when we will make a profit, we have all of that stuff figured out. We figured out that in the first month we will have a total operating expense of $16,479.07 which means that all we would have to do in our first month is make that amount of money which we will if you take a look at our projected overhead/receivables Excel spreadsheet. At the end of year one, we will have a total operating expense of $178,673.84; basically we will have to make that amount to break even. Anything left after that will be our profit and it will be invested into our company. As far as making a profit goes, we will make a profit the first month and we will continue to make a profit throughout our first year as well as our future years due to the growing demand for a facility like ours down in Athens, Georgia.

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