Milestone 5April 4, 2006: Milestone 5 April 4, 2006 Jared Foster, Nick Lindner, Ryan Alden, Nathan Imboden VB Sports Complex Website Virginia Beach Sports Complex


Fundraising Approach: Fundraising Approach We will first look to market ourselves with local venture capitalists We will also look for successful businesses to help fund us We will also look to borrow money from a bank


Amount needed: Amount needed In the range of 5.5 million


Use of proceeds: Use of proceeds Costs for the building Costs for equipment Donations to needy families Advertising costs Costs for employees and other miscellaneous costs


Rule of thumb: Rule of thumb We plan on breaking even in about half the time we have taken out for our loans Nature of raise Debt


Pricing Model: Pricing Model Membership fees Camps and clinics Walk-in’s Field rentals Leagues Food Sports shop Other Elastic Elastic Elastic Elastic Elastic Inelastic Inelastic Elastic Many competitors High quality, high price Price range large factor Quality field raises cost Appease the consumer for return Rental Rental Outdoor fields must be worth cost Competitive Prestige Competitive Prestige Competitive Outsourced Outsourced Competitive Service Elasticity Advantage Rationale


Competitive Pricing: Competitive Pricing Competitive Alternative Pricing Considerations YMCA membership $45 a month Bally total fitness $225 a year Gold’s Gym $35-45 a month LANCO field house $130 per child in camps Summer Camps $ free to 200 a camp Sports clinics $25-200 a clinic Most facilities offering sports related or gyms usually cost less for a targeted market. Our market niche includes a large variety of services between clinics to gym facilities. By analyzing the cost of individual services and other sports complexes offering similar services, our price combines each aspect of what we offer. i.e. Bally total fitness, Virginia sports camps, YMCA, and boys and girls clubs.


Pricing Model Considerations: Pricing Model Considerations Mark-up pricing: Analyze the market fully establishing the cost of which we need to revenue so as to cover the expenses. Follow-the-leader pricing: using companies (mainly LANCO) for an established sports complex, many of which our expenses and projected revenue ideas come from them Price lining: while we use a larger projected market, our offering of different prices to use certain facilities gave us a niche. The price lining model helped us establish which service would bring the most money


Breakeven Analysis: Breakeven Analysis The realization of us reaching a break even point with a facility costing in the millions, our expected sales forecast will realistically not reach break even point for at least three years. The forecast shows the expected income at 1.75 million in two years (modeled by LANCO field house). The breakeven points actually are a collaboration of many different services collectively forecasting sales. Each individual service collaborates a revenue that individually would not suffice for the company.


Strengths: Strengths There is a marketplace The potential revenue is high


Weakness: Weakness Start up/Operation Cost are high Investors will need to take a risk