Skating Mania

“Where the fun never ends”

Providing a safe and fun environment for the whole family

Submitted by: Kelsie Moss

Date: April 17th 2020

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Table of Content

Executive Summary………………………………………………………………………………3
Key to Success……………………………………………………………………………………4
Critical Risk and Assumption ……………………………………………………………………4
Motto ……………………………………………………………………………………………..4
Slogan …………………………………………………………………………………………….4
Mission …………………………………………………………………………………………...5
Vision……………………………………………………………………………………………..5
Type of Business Unit…………………………………………………………………………….5
The Company …………………………………………………………………………………….6
Technology ……………………………………………………………………………………….6
Production Plan…………………………………………………………………………………...7
Market Analysis ………………………………………………………………………………….7
Target Market …………………………………………………………………………………….7
Competitive Analysis……………………………………………………………………………..8
Service Business Analysis ………………………………………………………………………..8
Organizational Chart …………………………………………………………………………..9.10
SWOT Analysis ……………………………………………………………………………...11.12
Competitive Trends ……………………………………………………………………………...12
Major Industry Participants……………………………………………………………………....12
Sales Forecast ………………………………………………………………………………...13.14
Start Up Cost …………………………………………………………………………………15.16
Important Assumption …………………………………………………………………………..17
Income Statement……………………………………………………………………………...…18
Balance Sheet ……………………………………………………………………………………19
Break Even Analysis ………………………………………………………………………….…20
Projected Cash Flow ………………………………………………………………………….…21
Business Ratio …………………………………………………………………………………...22
Appendix
3 years Projection Income Statement …………………………………………………...23
Flyer…………………………………………………………………………………...…24

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Executive Summary

Skating Mania will be a family-friendly location offering skating activities to individuals and

will serve as a function hall for small gatherings. Skating Mania will be located at 136 Newtown

Barracks. This location will provide easy access to customers to enjoy its features. Skating

Mania will bring forth a new activity that has been unprecedented to Belize’s market. A roller

rink has never been established in Belize hence the rink will bring change in recreational

enjoyment in the country. A feature that will be included in the rink will be a concession area

that will provide slight food and drinks for the fulfillment of the customers. The rink as stated

will be used as a function hall that can be used for parties, small church gatherings, school

gatherings as well as work functions. This will create extra revenue for the upkeep of the

business. Skating Mania plans to hire staff that can assist in running this business as efficiently

and effectively as possible. Customers will be greeted with the utmost professional service as

well as first-timers will be able to learn what skating takes. Skating Mania will start off as a

small business that will eventually be expanded. Two major expansions may be a Bowling Alley

as well a separate function hall that will not clash with the roller rink. A Bowling Alley will be a

great choice of expansion for the business as there will also be no competition in this market.

Skating Mania will become an exciting new destination for the people of Belize. Skating Mania

can become a healthier destination for teens to have fun without going to the clubs. Entering into

Skating Mania will strike a feeling of relaxation with dim lights and a disco ball flashing colors

onto the floor sending a joyful vibe for its customers.

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Key to Success

Skating Mania will introduce a new recreational activity in the country. This service has never

been introduced to the people of Belize hence it will become the main attraction. The

attractiveness of the business will also increase customer’s interest to go to Skating Mania. The

lighting and floor décor will grab the eyes of the target market. Skating Mania will introduce

promotions and skating camps that will have customers coming back and at the same time

creating a great customer loyalty.

Critical Risk and Assumption

A roller rink investment is a very risky move. It takes a lot of time as well as capital to establish

a worthwhile roller rink. If not dedicated, the rink will not succeed in its operations, but with the

assumption that the business will follow the business plan and be dedicated in providing great

services, Skating Mania can become a top business in Belize.

Motto

Providing a safe and fun environment for the whole family

Slogan

“Where the fun never ends”

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Mission

Skating Mania will provide a fun and safe skating environment for the people of Belize. Working

up from a small business to a worth wild facility with excellent technology, Skating Mania will

maintain flexibility for its customers. Employees of Skating Mania will be treated with respect as

they will assist in accomplishing the many goals of the business.

Vision

To continuously expand to maintain a safe and fun-filled skating environment for the enjoyment

of public.

Type of Business unit

Skating Mania will be a partnership with Kelsie Moss and Mary Jones. This business will be

operated by both partners to accomplish the goals set forth for the business. Cost, as well as

profits, will be split equally between the two owners of Skating Mania.

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The Company

Skating Mania will be a partnership enterprise that will bring great services to the public. Skating

Mania will provide a unique recreational for its customers. An initial amount of 50,000 will be

the startup capital for this business. These amounts will be obtained from a loan for $40,000 as

well as owners’ investment of $5,000 each. One partner will be responsible for the day to day

services of the business whereas the next partner will be responsible for catering as well as the

concession area. The profits, as well as expenses, will be equally split between partners of this

business. Skating Mania will serve as a multipurpose building which will create other initial

revenues. Skating Mania will be an attractive business that will stand out to the public. It can

serve as a hang out spot for teenagers who wish to socialize after school or on the weekends.

Technology

Skating Mania will use many technologies that are necessary for its operations. The roller

skating rink flooring will provide a safe and stylish environment that will attract the eyes of

future customers. Skating Mania will also need lights that will set the mood and give the area a

lively feel. The equipment such as roller skates, helmets, and knee pads are one of the most

important technological features for the smooth running of the business. Skating Mania will also

be equipped with other slight technological features such as television, refrigerators, and

microwave. Skating Mania is not limited to these technologies because as the business grows so

will its features.

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Production Plan

Since Skating Mania will be a service based business, its main goal is providing amazing

services to its customers. Skating Mania’s process of doing so is first marketing the business to

make it known to the public. When customers arrive at Skating Mania, they will be greeted

excellent customer service which will help them to maneuver. They will rent skates that are to

their needs and will then be able to experience the thrill of skating at Skating Mania.

Market Analysis

Skating Mania will be located in Belize City where it will provide its services. Skating Mania

will place special focus on large groups. Market Segmentation will focus on two groups the

general public and private Functions. Large groups will be comprised of 10 or more individuals

where Skating mania will create a carefree atmosphere to attract customers to the business.

Skating Mania will plan to host skating camps as well as events to keep customers satisfied with

the services. These events will be channeled through social media, television advertisements,

radio announcements as well as flyers specifically targeting school areas.

Target Market

The target market for skating mania is strategic. The recreational activity of a roller rink has

never been introduced to the people of Belize. With great planning, the rink can be a great

potential. Skating Mania will be a destination for youths who want to socialize with friends. It

will be a safe environment that parents will have no problem to allow their kids to go. This

strategy will allow the parents to be aware of Skating Mania where they too will want to

experience the amazing facility and services it has to offer.

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Competitive Analysis

Skating Mania will not be faced with any direct competitors as this business will be the first of

its kind in Belize. Skating Mania needs to gain customer loyalty as to encourage them to

experience the roller rink. Although Skating Mania is not faced with any direct competition it

may be faced with indirect competition where businesses are also offering recreational activities

such as Swimming, cinema, game room. But with great marketing strategy skating mania will

stand out from its competitors.

Service Business Analysis

Skating Mania will be a staking facility that provides its service to the country of Belize. Skating

Mania will give its services to groups, Families as well as individuals. Skating Mania can

provide its services to customers as they come. It will be a fun recreational activity that may

accommodate the public. Skating Mania aims to provide its customers with an amazing

experience of skating.

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Organizational Chart

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 Kelsie Moss &
Mary Jones
Owners

Manager/Marketer Manager/ Accountant

Employee Sales Representative

Security & Cashier
(Rink Area) Cleaner
(Rental Booth) (Concession Area)

Owners of Skating Mania will be responsible for making critical decisions for the business.

They will be responsible for the well-being, growth, and stability of the business.

The manager will be responsible for managing the employees to have a smooth workflow. The

manager will also be responsible for the day to day operation of the business as well as the

accounting. Qualification- At least an Bachelor degree in accounting with good management

skills and is able to act under pressure. Experiences in the accounting field will be a plus.

Two employees (Rink Area) will be responsible for guiding customers on how to use the skates

properly and to monitor the rink area for safety. Qualification- At least a High School diploma

with skating skills or is willing to learn.

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Two employees (Concession Area) will be responsible for issuing food and snacks to the

customers. These employees will also be responsible for making cash transactions from sales.

Qualification- At least a High School diploma. Must have good management skills and Public

relation skills to deal with customers.

Employee (Rental Booth) will be responsible for issuing out skates and gears to the customers.

Qualification- At least a High School diploma with skating skills or is willing to learn.

Security will be responsible for the maintenance of safety from any harm for the customer as

well as employees of the business. This individual will be selected from the security agency.

Cleaner will be responsible to maintain the cleanliness of the company as well as skates.

Qualification- Must be hard-working with organizational skills and respectable.

Industry Analysis

SWOT Analysis:

Strengths

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  Skating Mania will provide a cost efficient place where family of all ages can come

and have a good time.

 For users, the Rink will provide safe exercise to stay fit.

 Provide a safer place for teens to have fun

 An accessible location to directly affect the target market.

 Multipurpose rink for public purposes as well as private purposes.

 No direct competitions in the field

 Attractiveness of Business will spike new customer

Weakness

 The upkeep with of the business may be a struggle.

 Revenue may decline over a 5 year span

 Poor management of the rink may have a customer decline.

 Availability of skates may be a weakness

 Poor Marketing

Opportunities

 Improve finance by adding new activities

 Increase in customer with social marketing to make Skating Mania know to the

country.

 Embrace new technologies

 Learning more about skating to benefit customers

Threats

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  Indirect competitions

 Authorization to participate in such company may be revoke.

 Too many customers may lead to bad image of company if the demand cannot be

met.

 Economic Uncertainty

Competitive Trends

Skating Mania will provide a safe and fun environment for the whole family. Although there is

no direct competition, for the business to survive we must first generate the trust of the public.

Skating Mania will do this through aggressive Marketing. The people of Belize will be exposed

to something new that can spice up the market. Skating Mania will make their target market

their main interest in providing them with excellent service and safe facilities in which they

would want to enjoy over and over again.

Major industry participants

Skating Mania will be competing with indirect competitors. These competitors will be involved

in other recreational activities such as the cinema, game rooms, and pool areas. Skating Mania

will use the advantage of being the only direct participant in the market to successfully compete

with its indirect competitors.

Sales Forecast

The chart below reflects Skating Mania’s Sales Forecast. The table below indicates a slow down
during summer breaks. Skating Mania will be competing with other recreational activities which

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give the customers more options to explore. The skates will be rented at $15 for adults 18 and
above and $10 for kids below 18. The concession stand will also be bringing in additional
revenue for the business offering new foods on the menu and getting customers input in what
should be sold. Additionally, Revenue will also be obtained from renting the area for different
private functions.

Sales Forecast
25000

20000

15000 Private Function

Concession
10000
Skate rentals
5000

0
1 2 3 4 5 6 7 8 9 10 1 1 1 2
n th nth nth nth nth nth nth nth nth th th th
o o o o o o o o o n n n
M M M M M M M M M Mo Mo Mo

3 Year Sales Forecast Projection

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Below shows the 3 year projection of sales. It shows an increase in sales as Skating Mania will

be known to the public and good experiences will help in the increase of loyal customers

3 Year Projection
300,000

250,000

200,000 Private Functions

Concession
150,000 Skate rental

100,000

50,000

0
Year 1 Year 2 Year 3

X Skate rental Concession Private Functions

Year 1 87,300 104,570 8,500

Year 2 88,200 120,800 18,000
Year 3 100,000 150,500 25,000

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Start Up Cost XItems Column 1 Column 2

Salary of owner-manager 1,500 4,500

Other Salaries and Wages 5,340 16,020

Rent 3,000 10,500

Advertising 300 4,500

Delivery expense 100 300

Supplies 1,500 6,000

Telephone 200 600

Other Utilities 500 1,800

Insurance 1,500 9,000

Taxes, Social Security 319.84 1,279.36

Interest 300 900
Maintenance 500 1,500

Legal and other professional 1,000 6,000

Assistance

Miscellaneous 1000 3,000

Startup Cost    
Item Estimate
Fixture and equipment 7,500
Decorating and Remodeling 5,000

Installation of fixture and equipment 2,500

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Starting Inventory 2,000

Deposit with public utilities 1,200

Legal and other professional fees 1,000

License and permits 1500

Advertising and promotion 800

Accounts Receivable 200

Cash 6,000
Other Expenses 1000

Total cash needed to start 45,760

To start the business Skating Mania needs at least 45,410 to survive for the first month of

business. The startup capital that will be invested into skating Mania is 50,000 shared amongst

both partners.

Important Assumption

Skating Mania assumes a fast growing market as this new service hit the market. The Customers

are assumed to grow tremendously but over time may experience a decline in customers.

Skating Mania will plan to offer new activity to maintain customer’s interest in the business.

Additionally Skating Mania assumes no direct competitors at least for several years where it will

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be dominant in its Market. Also with good financing, Skating Mania assumes finance to be

sufficient to sustain the growth of the company.

Projected Income Statement

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 Skating Mania
Income Statement
$
Sales 200,370
Cost of goods sold 20,000
Gross Margin 90.01

Operating Income 180,370

Expenses

Salary of owner/manager 1,500

18000
Other Salaries and
5,340
Wages 64080
Rent 3,000 36000
Advertising 300 3600
Delivery expense 100 1200
Supplies 1,500 18000
Telephone 200 2400
Other Utilities 500 6000
Insurance 1,500 18000
Taxes, Social Security 319.84 3838.08
Interest 300 3600
Maintenance 500 6000
Legal and other
1,000
professional Assistance 12000
Miscellaneous 150 1800

Total Operating Cost 194518.08

net profit -14,148
Profit Margin -7.06

Projected Balance Sheet

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 Skating Mania
Balance Sheet
Assets $
Current Assets
Cash 40,000
Investment 10,000
Invntory 2,500
total current Assets 52,500
Long term Asset
long Term Assets 0
Accumulated Depreciation 0
Total long term assets 0
total assets 52,500
Liabilities & Capital
Accounts Payable 2,500
Current Liabilities 2,500
Long Term Liabilities 40,000
Total Liabilitiy 42,500
Equity
Invested Capital
Kelsie Moss 5,000
Mary Jones 5,000
Total liabilities and Capital 52,500

Break Even Analysis

Below is the graph that displays the breakeven point for Skating Mania
At 11,080 Skating Mania will break even where the business will then be leveled off.
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For Skating Mania to experience profit 11,081 units and more needs to be sold to for it to start
generating profits

Projected Cash Flow

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 Skating Mania
CASH FLOW
Cash Received
Cash from Operations
Cash Sales $200,370
SUBTOTAL CASH $200,370
FROM OPERATIONS
Additional Cash Received

Sales Tax, VAT, HST/GST $0

Received
New Current Borrowing $0
New Other Liabilities $0
(interest-free)
New Long-term Liabilities $0

Sales of Other Current $0

Assets
Sales of Long-term $0
Assets
New Investment $0
Received
SUBTOTAL CASH $200,370
RECEIVED
Expenditures Year 1
Expenditures from
Operations
Cash Spending $50,000
Bill Payments $198,118
SUBTOTAL SPENT ON $248,118
OPERATIONS
Additional Cash Spent
Sales Tax, VAT, HST/GST $0
Paid Out
Principal Repayment of $0
Current Borrowing
Other Liabilities Principal $0
Repayment
Long-term Liabilities $0
Principal Repayment
Purchase Other Current $0
Assets
Purchase Long-term $0
Assets
Dividends $0
SUBTOTAL CASH $248,118
SPENT
Net Cash Flow ($47,748)
Cash Balance ($47,748)

Business Ratio

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Below are important Business Ratios that Skating Mania needs to be aware of.

Current Asset 21

Quick 16

Cash Ratio 21

Operating Cash Flow -25.6592

Debt Ratio 0.857143

Interest Coverage Ratio -3.93

Asset Turnover Ratio 3.812762

Gross Margin 90.01

Operating Margin 9.168039

Return on asset 0.070609

total debt to total asset -0.14286

Net profit Margin -0.07061

assets to sales 0.262015

sales/net worth -14.1624

Appendix

Income Statement 3 year Projection

Skate rental Concessio Private

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 n Functions
Year 1 87,300 104,570 8,500
Year 2 88,200 120,800 18,000
Year 3 91,000 125,500 20,000

Skating Mania
Income Statement
year 1 year 2 year 3
Sales 200,370 227,000 236,500
Cost of goods sold 20,000 28,500 30,000
Gross Margin 90.01 87.44% 88.26%

Operating Income 180,370 198,500 206,500

Expenses

Salary of owner/manager
18000 18,000 18,000

Other Salaries and Wages

64080 64,080 64,080
Rent 36000 36,000 37,000
Advertising 3600 4,000 4,500
Delivery expense 1200 1,300 1,500
Supplies 18000 20,000 21,000
Telephone 2400 2,500 2,500
Other Utilities 6000 6,000 6,500
Insurance 18000 18,000.00 18,000.00
Taxes, Social Security 3838.08 3838.08 3838.08
Interest 3600 5,000 5,000
Maintenance 6000 10,000 11,200
Legal and other professional
Assistance 12000 2,000 3,000
Miscellaneous 1800 2,000 2,000

Total Operating Cost 194518.08 192718.08 198118.1

net profit -14,148 5,782 8,382
Profit Margin -7.06 2.65 3.54

Flyer

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