Executive Summary
Top Talent Sports Complex is a fully equipped sports and recreation company that will serve many people in Orange County, New York. The primary objective is to establish a start-up business that will provide various products and services to promote talents and skills in sport and to ensure that residents of Orange County, New York live healthy lifestyles. We have managed to identify a strategic location for the company. The facility will have different fields such as athletic field, football field, golf course, community stadium, swimming pool, indoor games such as basketball. In other words, the facility offers a diverse experience to different people based on their preferences. Top Talent Sports Complex will be among the best sports and recreation facilities in Orange County, New York. The management focuses on building a facility used by diverse communities such as schools, community organizations, corporations, celebrities, government officials, and sports clubs. Besides, the facility has adequate space for spectators and sports participants.
Setting up Top Talent Sports Complex was initiated through feasibility studies that indicated that Orange County, New York, is a perfect location for setting up sports and recreation facilities that would benefit different people. Through this facility, people can practice a healthy lifestyle to eliminate diseases such as obesity. In terms of operations, open space activities will end by 6 pm while indoor activities will end by 10 pm. Top Talent Sports Complex will be managed by a general manager who the company’s founders will appoint in terms of management. The manager should have work experience of at least five years in the sports and recreation industry. Overall, the general manager should have worked with top players who participated in the Olympics in various sports on behalf of the United States of America.
General Company Description
What Business Will You Be In? What Will You Do?
The world has started to recognize talents in different areas of co-curriculum activities. Sporting activities have attracted millions of stakeholders such as investors, players, athletes, among others. Therefore, the sporting industry is a multibillions enterprise with many areas of expansion. In that regard, my business venture involves setting up a sports facility. The name of my business is the Top Talent Sports Complex. The company will be located in Orange County, NY, United States of America. Mainly, Top Talent Sports Complex will operate as a standard sports facility equipped with modern sports equipment and recreations to serve different clients within the United States and beyond. The business will work by providing various sporting activities to the clients based on their preferences.
Top Talent Sports Complex will be established by securing a vast sporting facility in Orange County, NY. It will accommodate a soccer pitch, field facility, track facility, basketball court, tennis court, Golf course, swimming pool, changing room, and spectator’s stand. Besides, the facility will have ample parking space for our clients. Moreover, Top Talent Sports Complex will also have a sales department where customers can purchase various sporting materials such as sporting shoes, sporting clothes, balls, racing bikes, goal posts, flying discs, and nets. In summary, the facility will sell game equipment, player equipment, protective, and equipment. Lastly, there will be a fitness centre within the Top Talent Sports Complex equipped with gym equipment to attract many clients who want to keep fit.
Mission Statement
Top Talent Sports Complex’s mission statement is to establish a movement that supports sporting talents, fitness, health, and total engagement in sporting activities in Orange County, New York. Mainly, our business’s mission statement not only aims to entertain people it the community but also to fight against unhealthy lifestyles and obesity by encouraging physical activities.
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Company Goals and Objectives
Top Talent Sports Complex will operate to meet several goals and objectives. First, the company will build world-class recreations and sports facilities that will attract all kinds of players in the United States. The company aims to contribute its quota by encouraging Orange County, New York residents to participate in sports and recreation activities to improve their health and general body fitness. The company aims to sell varieties of game outfits and sporting equipment to various teams across the United States. Lasting, Top Talent Sports Complex aims to engage as many people as possible to ensure that Orange County produces top athletes and stars. In international competitions such as the Olympics, they will represent the country.
Business Philosophy
Top Talent Sports Complex’s business philosophy is to educate residents of Orange County about the benefits of sports in society. Sports activities are a source of entertainment and a source of income and play a vital role in bringing up a healthy nation. The philosophy will be necessary for the business because it will attract many clients, thereby meeting its goals and objectives. The company will also generate a lot of revenue from this philosophy.
To Whom Will You Market Your Products?
The business will market its products and services to the residents of Orange County, New York. It will also sell the products to different sports and recreation centres within the United States to ensure they buy sports outfits and games equipment.
Describe Your Industry
Mainly, Top Talent Sports Complex is in the sporting industry, which continues to grow due to the introduction of new sporting and recreation disciplines. In the future, I foresee the sporting industry as the leading employer in the world because white-collar jobs have reduced significantly. Thus, people will embrace their talents and sporting skills to join different sports as a form of employment. In the long term, society will assume the sporting industry to cope with lifestyle changes. Thus, Top Talent Sports Complex will take advantage of these changes because it will provide space for sports and recreation activities. The company will also make huge sales of sporting equipment because the demand for these products will increase in the long term.
Describe Your Most Important Company Strengths and Core Competencies
Top Talent Sports Complex’s most important strengths are world-class sports facilities and equipment that will attract many clients. Besides, the company will provide different sporting activities. Thus, clients will close their best options. Moreover, the company will have the best employees to guide clients within the facility. The competitive strength for the business is the capacity to provide multiple sporting activities under one roof. Thus, clients do not have to move from one facility to another if they need to shift from one sporting activity to another. The new venture will benefit from my sports management skills in terms of competencies because I have managed sports in college and the community.
The Legal Form of Ownership
Top Talent Sports Complex will operate as a Limited Liability Corporation (LLC). The new venture’s initial investment is high, and the best way to pool resources together is to work as an LLC. Besides, it will benefit me by protecting my contribution in case of any financial issue. The excellent tax flexibility will allow Top Talent Sports Complex to save a lot of revenues. Lastly, I prefer Top Talent Sports Complex to operate as an LLC due to fewer corporate formalities and accommodate different stakeholders with different experiences and skills.
Products and Services
Describe in Depth Your Products or Services
Top Talent Sports Complex will provide a variety of sports products and services to the clients. First, the business will offer an oval ground operation that will accommodate many clients within the facility. The company will also provide cricket ground, football field, stadium operation, and athletic field for families, friends, teams, and corporate workers. These fields can also be used for team building activities. Arena operation, netball, and basketball court will also be available. Clients who look rolling and skating will also be accommodated. Other services offered by the company include swimming, indoor facilities, a golf course, among others.
What Factors Will Give You Competitive Advantages or Disadvantages?
In terms of competitive advantage, Top Talent Sports Complex will be located in a highly-populated area. Orange County, New York, has a high population, thereby increasing the number of anticipated customers. Again, the company provides world-class quality products and services, which will attract many customers. Lastly, the company will achieve a competitive advantage due to providing different quality services under one room. This strategy will help the company to gain a competitive advantage by retaining its customers.
What are the Pricing, Fee, or Leasing Structures of Your Products or Services?
The prices charged on products and services will depend on the package selected by the customers. In most of the services, the minimum fee will be $ 5 per hour. For teams and large groups planning to lease the facility, the price will also depend on the size of the space required and duration.
Marketing Plan
Top Talent Sports Complex marketing plan aims to consider various aspects in the industry to reach as many potential customers as possible, expand brand awareness, and ensure considerable costs are used to market products and services offered by the company.
Importance of Conducting Market Research
Mainly, there are various reasons why the company plans to perform market research. First, the company aims to do market research to understand the different sports and recreation facility industry (Mihai, 2013). In that regard, market research would allow the company to plan for marketing campaigns that would enable the company to target the potential customers and encourage the community within Orange County, New York, to participate in fitness and sporting activities. It is also essential to carry out promotions research to understand the industry’s competition level to implement various strategies that would enable the company to achieve a competitive advantage in the market. Lastly, market research would be essential in determining the number of people willing to participate in sports and recreational activities in the community to improve their lifestyles. Cases of obesity and other health issues have increased in the area (Mihai, 2013). Thus, it would be essential to evaluate how much people can improve their health. An increase in the number of people seeking fitness centres would increase its revenue for customers’ subscriptions.
How to Carry out Market Research
Both primary and secondary approaches can be used to carry out market research. In that regard, Top Talent Sports Complex will use secondary sources such as newspapers, journal articles, magazines, and other sources to assess how business in the sports industry generates revenues from products and services they offer. Many publications identify the potential market segment that sporting companies should focus on (Seifpanahi Shabani et al., 2018). Conversely, it is also essential to utilizing primary sources in market research. In Orange County, the population is considerable. Therefore, the company will research surveys and questionnaires by asking people whether they require a sport and recreation facility in the area. Based on the participants’ feedback, the company will choose the best location to set the facilities and sport disciplines’ types to focus on. The market research will help the company isolate the best site where many customers will access without much stress.
Economic Considerations
Mainly, Top Talent Sports Complex’s market size comprises a large population of people residing in Orange County, New York. Primarily, this environment has more than 300,000 people. Thus, the area has a high potential in terms of market size. The company aims to provide almost all sports and recreation activities to its customers. The estimated market share would be at least 50% because the competitors are giving unique sports and recreation services that do not attract clients across the environment. Currently, the demand is high due to clients aiming to utilize their talents in various sports and clients to improve their health by combating obesity.
Nonetheless, setting up the company is not accessible due to several barriers. First, the project requires a substantial financial investment to enter the industry. Many resources are needed to ensure the business accommodates all the clients, payment of employees, leasing of property, and other expenses. Another barrier is government regulations, such as health and safety regulations that protect the customers in case of hazards (Seifpanahi Shabani et al., 2018). The company aims to overcome the barriers by pooling resources together from different investors and stakeholders. The company also aims to comply with all the regulations set by the government and other sporting authorities. Mainly, changes in technology would benefit the business because security protocols will be improved by installing CCTVs. The government can also change regulations and decide to provide incentives to companies offering social services. This approach would assist the company in reducing the start-up capital.
Product
As mentioned early in the text, the Top Talent Sports Complex aims to offer different products and services.
Cricket Ground: Within the facility, the company will set up a cricket ground to attract cricket players in the area. Mainly, the number of people talented in this sport in the United States. This sport is also a global discipline that attracts millions of stakeholders. This product will help people to improve their talents and even create career opportunities in the future.
Football Field: This product will also attract many players. They will be required to pay a monthly subscription to use the facility. Other customers can hire the facility at agreeable rates.
Stadium Operation: This facility will attract families, friends, and corporations willing to carry out special events such as team building.
Arena operation, netball, and basketball court: These will allow the talented player to train and get exposed to various sporting opportunities. The facility will also have swimming, indoor activities, a golf course for recreation and fitness.
A Retail Shop: The business will also operate a retail shop that will sell all sporting equipment such as game outfits and personal protecting gears. All the customers who purchase products for the shop will get free delivery as long as they reside within Orange County, New York.
Customers
Top Talent Sports Complex aims to attract customers within Orange County, New York, in terms of customers. However, the facility will be built as a world-class entity that will also attract other customers from other geographical areas. In terms of age, products and services are diverse. The company can accommodate children, teenagers, adults, and older people (Šerić & Ljubica, 2018). All these groups can choose the type of sport and recreation activities that satisfy their preference. The company will charge friendly prices to attract customers from different market segments. The company also targets corporate executives, working-class adults, sports clubs, community organizations, schools, business people, college students, celebrities, and government officials.
Competition
Top Talent Sports Complex is likely to face competition from existing entities in Orange County, New York. The Middletown Recreation Department, Orange County Sports Club, and Capelli Sports home of Cedar Stars Academy Orange County are some significant competitors.
Figure 1: Competitive Analysis
| Factor | Top Talent Sports Complex | Strength | Weakness | Middletown Recreation Department | Orange County Sports Club | Importance to Customer |
| Products | Cricket ground, football field, stadium operation, and athletic field, swimming, golf, and bike riding | Attract different types of customer | Require intensive management | Offers athletics and leisure activities | Offers gym and other fitness activities | 1 |
| Price | Friendly | Attract many customer | N/A | Friendly | Friendly | 1 |
| Quality | High quality | Satisfy customer | N/A | Moderate | Moderate | 1 |
| Selection | Affirmative | High customer turnover | Overcrowding | Moderate | Moderate | 1 |
| Service | Sports | Enhance physical health | Not for people with disabilities | Athletic and leisure | Fitness | 1 |
| Reliability | Reliable | Quality service | Require more manpower | Reliable | Reliable | 1 |
| Stability | Stable | Sustain customers | Require huge investment | Stable | Stable | 1 |
| Expertise | Sports and recreation services | Improve community health and interaction | N/A | Athletics | Gym and fitness | 1 |
| Company Reputation | Positive | Attract many clients | N/A | Positive | Positive | 1 |
| Location | Orange County, NY | Easy to access | Disadvantage people in other areas | Middletown, NY | Goshen, NY | 1 |
| Appearance | World-class | Customer satisfaction | Prices may change | Community-based | Community-based | 1 |
| Sales Method | Direct | More sale | Difficult for online shoppers | Direct | Direct | 5 |
| Credit Policies | Offers no credit to customers | To avoid bad debt | N/A | No credit | No credit | 1 |
| Advertising | Social media and Television | Less costly | Not reliable for reaching marginalized groups | Television | Magazine | 1 |
| Image | Good | More customers | N/A | Good | Good | 1 |
Top Talent Sports Complex can achieve competitive advantage because it provides customers with many affordable prices. The company will not offer credit services to the clients to avoid bad debt. Nonetheless, the disadvantage is that the revenue may reduce due to risks associated with a low number of customer paying instantly on services provided.
Niche
Top Talent Sports Complex is a world-class facility that offers quality sport and recreation activities. Thus, apart from serving Orange County residents, NY, the business can also help customers from other geographical locations.
Strategy
This company’s marketing strategy is to improve products and services in the facility to attract new customers and retain current customers. The system will be consistent with the marketing mix that considers the price, promotion, and product improvement.
Sales Forecast
The company will carry out a feasibility study to gather data on dynamics in the industry. Mainly, Top Talent Sports Complex will be a newly opened business in the sports industry. In the first month, the company aims to register a minimum of 300 clients. The membership will increase each month. The table below shows the sales projection for Top Talent Sports Complex bases on the number of customers, location, products, and services. The point is made based on the assumption that the company will obtain a competitive advantage.
| Months | Sales Projection |
| 1st month | $10,000 |
| 2nd month | $15,000 |
| 3rd month | $20,000 |
| 4th month | $25,000 |
| 5th month | 30,000 |
Operational Plan
Production
Mainly, Top Talent Sports Complex is a service delivery company. Therefore, customers will receive services on sports and recreation activities within Orange County, NY. There is no industrial production. Customers pay a certain amount to use the facility based on the choice of sporting or recreational activity. However, the company will have a strong customer service department to help customers booking sporting fields and buying sports equipment.
Location
The company will lease an open space in Orange County, NY. This space will be modified to accommodate various football fields, community stadiums, swimming pools, gyms, golf courses, and buildings for indoor sporting activities. Due to the high number of customers, the facility will also build walk paths for customers’ smooth movement. In terms of operations, all the open space sports and recreation activities will end by 6 pm. However, indoor activities will continue until 10 pm.
Legal Environment
Top Talent Sports Complex will comply with various regulations to enhance smooth operations. First, the business will comply with health standard regulations such as the Occupational Health and Safety Act to protect employees working in the facility. Moreover, the company will use a specific building to provide indoor services. Therefore, the company will comply with insurance regulations to ensure the facility is insured against risks such as fire, theft, and damage.
Personnel
The company will engage different employees to work in various departments. They will include;
- Top Talent Sports Complex manager
- Accountants (2)
- Marketing team (7)
- Exercise Physiologists (15)
- customer care workers (10)
- Fitness instructors (20)
- Training Instructors (10)
- Cleaners (15)
All the employees will be recruited through the selection process recommended by the Labor Act. Some of the workers will be skilled, while others will be non-skilled. Top Talent Sports Complex manager will be responsible for recruitment, selection, orientation, training, and coaching of other managers in other departments. Fitness instructors will generate a training schedule for clients and assist them during their sporting and recreation activities. Marketing officers will identify opportunities for the company and searching for new customers. The accountant will prepare the budget, financial statements, and records. An exercise physiologist will train and oversee recovery practices. Lastly, cleaner will maintain the environment to satisfy customers in the facility.
Management and Organization
Top Talent Sports Complex’s success will be determined by the type of leadership offered by managers at various levels. Mainly, the company will recruit a manager who will be responsible for day-to-day operations. The manager will have several qualifications, such as a master’s degree in Business Administration. The manager should also have experience of at least five years in a busy sporting environment. The manager will be selected from the founders of Top Talent Sports Complex to represent other founders’ interests. In that regard, the manager will guide other employees on their various roles and responsibilities. In terms of competencies, the manager should uphold ethics, integrity, time management, and teamwork. Top Talent Sports Complex will be successful as long as all the employees perform their responsibilities to satisfy the facility’s clients. In case the general manager becomes incapacitated, a board meeting will be set to select a new general manager to ensure the company remains afloat.
Organizational Structure
Roles and Responsibilities
Top Talent Sports Complex Manager
- Recruitment of new employees
- Enhancing communication
- Setting prices
- Signing checks and documents
- Staff induction
Accountant
- Preparing budgets and financial statements and reports
- perform financial analysis
- perform financial and sales forecast
- administering payrolls
- enhance tax compliance
Marketing officials
- Reach out to new opportunities and customers
- Search for business contracts
- Negotiating prices with customers
- performing feasibility studies and market surveys
- documenting customers and assist them in booking services
Customer Care Executive
- Contacting new clients and welcoming them to the facility
- Providing contact of all customers
- Establishing a rapport with clients to buy products and services
- Management of administrative duties
Fitness Instructors
- Helping clients during exercise sessions
- scheduling training
- guiding clients in the gym and how to use fitness equipment
Training Instructors
- Advising coaches
- Training
- Advice on nutrition and injury prevention
Cleaners
- Cleaning the facility
- Cleaning working areas after customers finish their activities
- Cleaning washrooms
In terms of professional and advisory support, the company will engage the board of directors, management advisory board, Accountant, and sports consultant. The financial affairs and actions of the business would be the responsibility of the board of directors. The management advisory board will advise the company on investing more resources in the first quarter’s outcomes and business performance. Accountants will as provide financial advice based on trends of financial statements and records. Lastly, sports consultant will advise on the best activities that will attract more customers based on the sports and recreation industry dynamics.
Personal Financial statement
Personal Financial statement is a crucial requirement in establishing a new investment. The following is a financial statement of the manager or owner of Top Talent Sports Complex.
Financial Statement as at 31st December 2019
| Assets | |
| Current Assets | |
| Cash | $24,882 |
| Inventory | $6,878 |
| Other current Assets | $1,000 |
| Total Current Assets | $32,758 |
| Non-Current Assets | $0 |
| Total Non-Current Assets | $0 |
| Total Assets | $32,758 |
| Liabilities and Capital | |
| Current Liabilities | |
| Account Payables | $7,812 |
| Current Borrowing | $0 |
| Total Current Liabilities | $7,812 |
| Long Term Liabilities | ($5,280) |
| Total Liabilities | $2,532 |
| Paid-in-Capital | $29,000 |
| Retained Earning | ($11,008) |
| Earnings | $12,234 |
| Total Capital | $30,226 |
| Total Liability and Capital | $32,758 |
Startup Expenses and Capitalization
When establishing a new business, the venture should be based on cost. The company needs start-up capital to meet all the expenses. Therefore, the start-up capital depends on the aspirations, visions, and goals of the business. In sports and recreation business, the equipment and tools have standard cost in most markets. Nonetheless, the start-up cost for sport business may differ from one area to another based on the currency’s value. In Top Talent Sports Complex, the following is the start-up capital needed to establish the company.
| Item | Amount |
|
$750 |
| 2. Legal fees for permits and licenses | $1,000 |
| 3. Marketing promotion (Television and bill boards) | $1,500 |
| 4. Business consulation fee | $4,000 |
| 5. Insurance for property casualty, compesation of workers, and general liability. | $30,000 |
| 6. Accounting software, payroll system, and CRM software | $2,000 |
| 7. Lease fee for sport and recreation facility | $ 400,000 |
| 8. modelling and restructuring the facility | $200,000 |
| 9. stationary | $1,000 |
| 10. Utility and phone expenses | $2,000 |
| 11. Start-up operational cost for paying bills and payment of employees | $50,000 |
| 12. Inventory | $20,000 |
| 13. Acquiring gym and fitness equipment | $100,000 |
| 14. Furniture and gadget | $5,000 |
| 15. Launching a business website for the company | $500 |
| 16. Lauching the business in a grand opening party | $10,000 |
| 17. Miscellaneous | $10.000 |
| Total | $837,750 |
Based on the breakdown above, the company needs approximately $1 million to launch a world-class sport and recreational facility in Orange County, New York. It is also fundamental to understand that evaluation and testing of expenditure would be high due to the many tools and equipment needed to set up the facility.
Financial Plan
A financial plan is a crucial requirement in a business plan. Mainly, Top Talent Sports Complex will use the financial plan to project the growth of the company. The company will experience moderate growth, and the cash balance will be positive. Moreover, marketing operates at 15% of sales or below. Lastly, Top Talent Sports Complex will invest profits in expanding the business. Top Talent Sports Complex will not sell products and services in credit to lower risks of bad debt and personal burden in terms of assumptions.
12-Month Profit and Loss Projection
Projected profit and loss in 12 months (in hundreds “00”)
| M 1 | M2 | M 3 | M 4 | M 5 | M 6 | M 7 | M 8 | M 9 | M 10 | M11 | M12 | |
| sales | $700 | $800 | $900 | $1000 | $1100 | $1200 | $1300 | $1400 | $1500 | $1600 | $1700 | $1800 |
| Direct cost of sales | $250 | $300 | $350 | $400 | $500 | $600 | $650 | $700 | $750 | $800 | $900 | $950 |
| Other costs of sale | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total costs of sale | $250 | $300 | $350 | $400 | $500 | $600 | $650 | $700 | $705 | $800 | $900 | $950 |
| Gross margin | $120 | $150 | $230 | $350 | $320 | $500 | $560 | $650 | $670 | $700 | $720 | $780 |
| Expenses | ||||||||||||
| Marketing | $10 | $12 | $14 | $14 | $15 | $17 | $17 | $19 | $20 | $22 | $24 | $25 |
| Payroll | $200 | $250 | $300 | $310 | $330 | $340 | $350 | $360 | $380 | $390 | $400 | $420 |
| Rent | $2000 | $2000 | $2000 | $2000 | $2000 | $2000 | $2000 | $2000 | $2000 | $2000 | $2000 | $2000 |
| Utilities | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 | $320 |
| Insurance | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 |
| Total operating expense | $2,830 | $2,882 | $2,934 | $2.944 | $2,965 | $2,967 | $2,977 | $2,999 | $3,020 | $3,032 | $3044 | $3,065 |
| EBITDA | $300 | $400 | $500 | $600 | $670 | $680 | $700 | $760 | $980 | $986 | $990 | $995 |
| Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Net Profit | $300 | $400 | $500 | $600 | $670 | $680 | $700 | $760 | $980 | $986 | $990 | $995 |
The company projects that advertising and consulting costs will increase in the next 12 months. Therefore, Top Talent Sports Complex will experience a robust profit-to-sales ratio by the end of one year. It would have been a concern for the company to operate with negative profits in the first year. In that regard, the Top Talent Sports Complex will avoid working loss by analyzing target markets, products and services, trends in the industry, and competitors. The company also projected to exceed the gross profit margin % by the end of 12 months, as shown in the figure below.
Projected Cash flow
The company will project cash flow in a period of three years
| Year 1 | Year 2 | Year 3 | |
| Cash received | |||
| Cash from operation | |||
| Cash sales | $122,936 | $151,158 | $196,029 |
| Subtotal cash from operations | $122,936 | $151,158 | $196,029 |
| Additional cash received | $0 | $0 | $0 |
| Subtotal cash received | $122,936 | $151,158 | $196,029 |
| Expenditure | |||
| Expenditure from operations | |||
| Cash spending | $45,400 | $45,870 | $50,364 |
| Bills payment | $63,201 | $94,460 | $108,279 |
| Subtotal Spent On Operations | $108,601 | $140,330 | $158,643 |
| Additional Cash Spent | |||
| Long-term Liabilities Principal Repayment | $2,640 | $2,640 | $2,640 |
| Subtotal Cash Spent | $111,241 | $142,970 | $161,283 |
| Net Cash Flow | $13,695 | $8,188 | $34,746 |
Mainly, the company is positioning itself with the above projected cash-flow to enter the market.
Opening Day Balance Sheet
The financial position of Top Talent Sports Complex in the opening day is as follows based on the start-up expenses and capitalization.
| Assets | |
| Current Assets | |
| Cash | $200,000 |
| Inventory | $20,000 |
| Other current Assets | $10,000 |
| Total Current Assets | $230,000 |
| Non-Current Assets | $0 |
| Total Non-Current Assets | $0 |
| Total Assets | $230,000 |
| Liabilities and Capital | |
| Current Liabilities | |
| Account Payables | $10,000 |
| Current Borrowing | $0 |
| Total Current Liabilities | $10,000 |
| Long Term Liabilities | $0 |
| Total Liabilities | $10,000 |
| Paid-in-Capital | $200,000 |
| Retained Earning | ($10,000) |
| Earnings | $30000 |
| Total Capital | $220,000 |
| Total Liability and Capital | $230,000 |
Break-Even Analysis
| Breakeven Sales = | Fixed Costs ($7000) |
| 1- Variable Costs (1-0.36) | |
| Breakeven Sales | $7,000÷0.64= $10,937 |
Mainly, Top Talent Sports Complex aims to break-even at monthly revenue of $10,937. The assumption made in this case is that the average variable cost will be 36%, while the estimated fixed cost per month is $7,000.
References;
- Mihai, A. L. (2013). Sport marketing mix strategies. SEA–Practical Application of Science, 1(01), 298-303.
- Seifpanahi Shabani, J., Gharehkhani, H., & Naderi, F. (2018). The Role of Sport Marketing Mix in Generating Revenue for Iranian Football Clubs. Annals of Applied Sport Science, 6(1), 95-102.
- Šerić, N., & Ljubica, J. (2018). Market research methods in the sports industry. Emerald Group Publishing.
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