Business Plan for an Indoor Sports Business

The report is a business plan for an indoor sports facilities in New Zealand called Goldy Indoor Sports. The feasibility study shows that the market of New Zealand is viable for the entry of the sports facilities. The facility though entering market with NZD 80000 should seek to increase its revenue by attracting large consumer base.

Running head: BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Business Plan for an Indoor Sports Business
Name of the Student
Name of the University
Author note

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Executive summary:
The report is a business plan for an indoor sports facilities in New Zealand called Goldy Indoor
Sports. The booming sports market of New Zealand is promoting to growth of sports facilities.
However, the lack of spaces for outdoor sports has led to development of indoor sports providing
similar outdoor sports facilities like cricket and net ball. The paper has shown that the Goldy
Indoor Sports should utilise the market factors to enter the Kiwi market and expand into other
market as well.
The feasibility study shows that the market of New Zealand is viable for the entry of the sports
facilities. The facility though entering market with NZD 80000 should seek to increase its
revenue by attracting large consumer base.

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
List of tables and figures
Figure 1. Rules of availability of products of Goldy Indoor Sports..............................................18
Figure 2. Figure showing service delivery steps of Goldy Indoor Sports.....................................22
Figure 3. Layout of Goldy Indoor Sports (core business-black and value added units-blue).......23
Figure 4. Table showing analysis of the product idea...................................................................26
Figure 5. Evaluation of business ideas..........................................................................................28
Figure 6. Figure shwoing types of innovation...............................................................................29
Figure 7. Table showing innovation life cycle..............................................................................30
Figure 8. Table showing impact of Porter's model on Goldy........................................................31
Figure 9. Table showing customer adoption of Goldy Indoor Sports...........................................34
Figure 10. Graph showing GDP of New Zealand..........................................................................36
Figure 11. Graph showing NZD and USD exchange rates............................................................36

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Table of Contents
Part 1.0. Business introduction/background:...................................................................................3
Part 1.1. Industry review:.............................................................................................................3
Part 1.1.1. Regional Industry Review:.....................................................................................3
Part 1.1.2. Global Industry Review:........................................................................................5
Part 1.2. Report ethics:.................................................................................................................7
Part 2.0. Market need/opportunity:..................................................................................................8
Part 2.1. Identification of the market:..........................................................................................8
Part 2.2. Customer needs/wants/preferences:..............................................................................9
Part 2.3. Competition:..................................................................................................................9
Part 2.3.1. Direct Competitors:..............................................................................................10
Part 2.3.2: Indirect competitors:............................................................................................10
Part 2.3.3. Strategical analysis and measures:.......................................................................11
Part 2.4. Market Growth and Profitability Potential:.................................................................11
Part 2.5. Other relevant factors:.............................................................................................12
Part 3.0. Idea generation:...............................................................................................................12
Part 3.1. Ideas for Product strategies:........................................................................................12
Part 3.1(a). Product Merchandizing/displays/Availability:...................................................12
Part 3.1(b). Delivery of products:..........................................................................................13
Part 3.2. Ideas for serving strategies:.........................................................................................14
Part 3.2(a): Service availability:............................................................................................14
Part 3.2(b). Delivery of services:...........................................................................................15
Part 3.3. Ideas for business concepts:........................................................................................17
Part 3.3(a). Core concepts:.....................................................................................................17
Part 3.3(b). Value added concepts:........................................................................................17

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 3.4. Other ideas:.................................................................................................................19
Part 4.0. Idea Evolution and selection:..........................................................................................19
Part 4.1. Analysis and Evaluation of creative ideas (Product strategies):.................................20
Part 4.1.2. Analysis and Evaluation the Creative Ideas (Service Strategies):.......................21
Part 4.1.3. Analysis and Evaluation the Creative ideas (Business Concept/s):.....................22
Part 4.2. Justification of the mentioned creative ideas:.............................................................23
Part 5.0. Market feasibility:.......................................................................................................23
Part 5.1. Applying Market feasibility:.......................................................................................24
Part 5.1(a). Incremental Innovation: Yes...............................................................................24
Part 5.1(b). Disruptive Innovation : No.................................................................................24
Part 5.1(c). Breakthrough Innovation: No.............................................................................24
Part 5.1(d). Sustaining Innovation: No..................................................................................24
Part 5.1(e). Other:..................................................................................................................24
Part 5.2. Innovation Scope.........................................................................................................24
Part 5.3. Market Potential, Scope and Viability:.......................................................................25
Part 5.3.1. Target market attractiveness and profit potential:................................................26
Part 5.3.1. Discussion on Potential Threats from Figure 8:...................................................26
Part 5.3.1(a). Threat of Rivalry:.............................................................................................26
Part 5.3.1(b). Threats of new entrants:..................................................................................27
Part 5.3.1(c). Buyers’ Bargaining Power:..............................................................................27
Part 5.3.1(d). Supplier Bargaining Power:.............................................................................27
Part 5.3.2................................................................................................................................27
Part 5.3.2.1 Consumer Value Addition:.................................................................................28
Part 5.3.3. Likely Customer Adoption:..................................................................................28
Part 6.0. Organisational Feasibility:..............................................................................................29

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 6.1. Internal Feasibilities:...................................................................................................29
Part 6.1.1. SWOT Analysis:..................................................................................................29
Part 6.2. External Analysis:.......................................................................................................30
Part 6.2.1. PESTEL Analysis:................................................................................................30
Part 6.2.1(a). Political:...........................................................................................................30
Part 6.2.1(b). Economic:........................................................................................................30
Part 6.2.1(c). Social:..............................................................................................................31
Part 6.2.1(d). Technological:.................................................................................................32
Part 6.2.1(e). Environment:...................................................................................................32
Part 6.3. Competitive Advantages based on Organisational feasibility:...................................32
Part 7.0. Financial feasibility: (Attached)......................................................................................33
Part 7.1. Analysis of financial feasibility:.................................................................................33
Part 7.2. Model outputs:.............................................................................................................38
Part 7.2(a). Cost structure:.....................................................................................................39
Part 7.2(b). Equity and debt structure:...................................................................................41
Part 7.2(c). Number of customers/sales:................................................................................41
Part 7.2(d). Cash flow:...........................................................................................................42
Part 7.2(e). NPV and IRR:.....................................................................................................42
Part 7.3. Sensitivity analysis:.....................................................................................................42
Part 7.3(a). Initial Penetration:...............................................................................................42
Part 7.3(b). Average market:.................................................................................................42
Part 7.3(c). Measured projected:............................................................................................42
Part 7.4. Venture Scenario vs Financial Viability:....................................................................42
Part 7.5. Justifying the Most Likely Scenario:..........................................................................42
Part 8.0. Growth and Sustainability Potential:...............................................................................43

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 8.1. Ventures Scalability Potential:....................................................................................44
Part 8.1.1. Replicability: High...............................................................................................44
Part 8.1.2. Customizability: High..........................................................................................44
Part 8.1.3. Extendibility:High................................................................................................44
Part 8.2.......................................................................................................................................44
Part 8.2(a). Market Penetration: Initially in Christchurch and then later all across new
Zealand..................................................................................................................................44
Part 8.2(b). Product Development: Continuous innovation...................................................44
Part 8.2(c). New Market: Australia........................................................................................44
Part 8.2(d). Diversification: new games................................................................................44
Part 8.2(e). Horizontal and Vertical Integration/Alliance/Merging: Yes..............................44
Part 8.3. Analyse and Identify Funding Strategies to be required: Yes.....................................44
Part 8.3(a). Equity: Attached.................................................................................................44
Part 8.3(b). Debt: Attached....................................................................................................44
Part 8.3(c). Asset Financing:.................................................................................................44
Part 8.3(d). Mortgages: Attached...........................................................................................44
Part 8.4. Determining Venture’s Competitive Potential: Attached...........................................44
Part 8.4(a). Product: Implement Vero:..................................................................................44
Part 8.4(b). Price: Attached...................................................................................................44
Part 8.4(c). Production:NA....................................................................................................44
Part 8.4(d). Distribution:NA..................................................................................................44
Part 8.4(e). Resources: Attached...........................................................................................44
Part 8.4(f). Infrastructure: Attached.......................................................................................44
Part 8.4(g). Location: Attached.............................................................................................44
Part 8.4(h). Technology: Attached.........................................................................................44

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 8.4(i). Marketing and Sales: Attached............................................................................44
Part 8.4(j). Customer Service: Attached................................................................................45
9.0. Conclusion:.............................................................................................................................45
10.0. Recommendations:...............................................................................................................45
References:....................................................................................................................................46

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 1.0. Business introduction/background:
The business being considered for the study is Goldy Indoor Sports which will provide
indoor sports related facilities and services. The business will focus towards providing sports
facilities to young sports enthusiasts across New Zealand. The headquarters will be located
around Wellington. The company will focus on producing quality sports facilities and
accessories and make it available to sports enthusiasts at reasonable investments. The company
will like to start with a facility that will be located in the Spreydon area of Christchurch. Initially
the company will focus towards providing facilities for cricket, football and netball and also
marketing sports accessories through the arena. However, the company wants to grow fast and
within one year of the establishment of business engage in the provision of a wide range of
indoor sports facilities corresponding to a large number of indoor sports. The company will
mostly like to promote their facility among young sportspersons and sport lovers within the age
of 13-20. The initial identified market will be in and around the city of Wellington. Moving
forward, Goldy indoor sports will focus on opening new arenas the smaller towns of New
Zealand. The company will like to mainly attract sports enthusiasts that do not have access to
quality sports products or arenas in the different areas of the country (Gade et al., 2016). The
company has an essential vision of becoming the largest indoor sports facility chain in the
country.
Part 1.1. Industry review:
Part 1.1.1. Regional Industry Review:
New Zealand is a sports loving country and the market prospects of the general sports
oriented facilities and accessories are large. The most important indoor sports played in the
country are Netball, Indoor Bowls, Squash and Table tennis (Louvis et al., 2017). The indoor
sports arena market is significantly large due to the fact that most people in the country take part
in some kind or other sports and related activities. The sports goods market of the country is
large with many companies competing in the market. Some of the sports goods manufacturers in
the country are multi-specialist sports enterprises that essentially operate within a large scope
concerning the sports oriented industry of the country (Bernstein, 2018). Thus, there are many
existing companies with great experience in the sports industry. It is important to consider the
combined value of the entire sports industry of the country as the business prospects of indoor

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
sports are related to the larger sports market of the country. The indoor sports oriented market of
the country is witnessing a steady rise over the past few years.
Some of the most important competing firms that can be strong rivals of the company are
Howzat Indoor Sports, Pioneer Leisure Centre and Horncastle Arena. The companies have a
reasonably large market reach and can pose serious competitive threat to the company. They
provide excellent multi-sports facilities and are well known arenas in the region. The most
important factor that guides the sports arena market of the country are associations with regional
clubs and sports authorities (Zealand, 2015). The market is large and witnessing significant
growth recently. The various regional sports clubs of the country often use the multi-sports
arenas to train their athletes. It is important that mutually beneficial and long standing
partnerships with the various indoor sports clubs are maintained for greater productivity of
Goldy Indoor Sports. Competitive factors can be very much in the sports arena business. The
major factors are quality of sports goods provided in the facilities, quality of the pitches and the
maintenance staffs employed by the organization.
Netball is a very popular sport in New Zealand, especially among young girls and
women. The popularity of Cricket is also large in the country (Debnath & Malhotra, 2015).
Moreover, football is witnessing a steady rise in participation of kids and young adults. Thus, the
sports facilities that will be offered in the arena can attract wide number of participants. Multi-
sports complexes are rising in popularity in the country. However, there is greater demand for
facilities that offer a wide range of indoor sports to the potential participants. For- example many
young sports enthusiasts are getting attracted towards basketball and softball playing arenas. The
industry is becoming larger as there is also a growing need for sports arenas where multiple
kinds of sports facilities will be available. Christchurch is an important city of New Zealand in
the context of sports and there is a large market that can be realized by the company. The
Spreydon sub-urban region of Christchurch already has the Pioneer Leisure Centre which is a
long running facility providing world class facilities for swimming and other fitness related
recreational activities (Humphreys & Nowak, 2015). It will be an important competition for the
arena, especially due to its long history. The major distinction for the Goldy Indoor Sports will
be that it will provide customers with sports oriented fitness. This can be an important factor for
the growth of the company as a large number of children and young adults are focused towards

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
indoor sports. There is also a growing concern of childhood obesity in the country which is
prompting many parents to send their children to various sports arenas and associate them with
various sports activities (Zealand, 2015). It is important for the company to engage in effective
marketing activities that will target young sports enthusiasts.
Large sports arenas are being built across the country for integrating budding sports
enthusiasts under one roof. The growth of multi-sport arenas across the country are also being
promoted by the sports ministry in order to educate children and teenagers about new sports.
Moreover, there is also a growing trend among teenagers and young adults towards becoming
multi-disciplinary athletes. The Arena can specifically address this need among the sports
enthusiastic children in Christchurch. Providing a good environment and atmosphere is also
necessary as multi-sports arenas across the country and the city are focusing more towards
enhancing the ambience of their arenas (Leeds et al., 2018). The government authorities of
Christchurch are also providing increased facilities to sport venues and arenas in a bid to
improve sports participation rates among the children and youth of the region. Moreover, the
authorities are trying to improve public health through the promotion of healthier lifestyles. This
is important for the growth and development for the Arena. The Pioneer Leisure center is
concentrated more towards providing swimming facilities to the people of the region. However,
as a sports oriented arena the prospects of the company are good.
Part 1.1.2. Global Industry Review:
Sports arenas have been long existing in the global sports oriented market. The growth of
major multi-sports facilities happened during the 1970s and 80s (Holmgren & Widmark, 2018).
The global sports market was recently recorded to generate revenue figures of more than 90
Billion worth of US dollars. The market is growing along with the rise in sports viewership
across the globe. It is important for the company to consider the rise of the global sports industry
as sports affinity mostly develops due to major events and occurrences that take place globally.
The rise in the global sports market was witnessed in the last few years majorly due to the
hosting of various large sporting events by emerging world economies. The rapid growth of
viewership in regards to various sports were witnessed across the globe. Events like the Summer
Olympics and the FIFA World Cup further boost prospects of the sports industry across the
world. The growing popularity of Rugby in the Southern hemisphere has resulted in the

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
continuous growth of the sports oriented activities that are associated with it. This has given rise
to greater enthusiasm and participation in the sport by young adults and children across this
region. Similarly, there has been a steady rise in the popularity of indoor sports, which has
increased the business proposition of indoor sports oriented businesses. Thus, the prospects of
multi-sports arenas in the world sports business market has also significantly increased due to
essential reasons. More youngsters are getting inclined towards indoor sports as a means to both
engage in physical activities and socialize.
Concerning the world sports market North America, Asia and Europe are the leaders in
generating revenue (Castellucci & Podolny, 2017). The countries from these continents are
generally world leader in sports. There is also a great deal of interest among the sports fraternity
of the countries from Oceana and Australia zones to catch up with them. Hence, the government
of these countries are trying hard to catch up with the sports oriented industries of these
continents. There is an emerging demand for sports arenas across Australia and New Zealand
which can have a positive effect on the market growth of sports arenas in the countries. Multi-
sport arenas are becoming widely popular among the young and old alike in the current sports
scenarios (King et al., 2015). The rise of sport franchises around the world and the emergence of
widely popular sports teams as highly profitable business ventures have given way to the rapid
growth of the sports industry. The effect has been more prominent on the growth of multi-sports
arenas across the world. Mainly this has been essentially enhanced through the participation of
large sports franchises in building large multi-sports venues in order to nurture young talent and
also get closer to their fan following (Søderlund & Berg, 2015). The rapid growth of the sports
industry of the world has given rise to greater demand for sports oriented activities across the
world. The participation rates of senior citizens in sports related activities are also rising across
the world.
It is important to strongly consider both the regional and global market factors that can
potentially influence the productive success of the organization. In order to effectively achieve
the major goals and objectives the company has to operate considering how they can be
influenced by the regional factors and how the factors can be influenced further by the greater
global factors. In the regional context the major factors that can affect the business of the arena
are sports inclination of the target public, established sports arenas in the area and quality of

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
service provided in the facility. In the global context the major factors are related to the
popularity of indoor sports and the increase in the promotion of these sports. Definitely the
popularity of netball, indoor cricket and indoor football will matter for the arena to be optimally
successful in business.
Part 1.2. Report ethics:
The report has been brought forward by consulting the most authentic sources. All the
reports published in the report have ben ethically considered. The confidential financial
information of companies have not been accessed in order to bring forward the report. No form
of data manipulation has been done in the study research. No form of forced opinions have been
gathered for bringing out the report. The report has been made by keeping all the legal and
regulatory implications of the study research.

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 2.0. Market need/opportunity:
Part 2.1. Identification of the market:
In order to succeed in any business venture, it is crucial to identify the opportunities in the
market (Burns, Bush & Sinha, 2014; Reid, 2018). The Goldy Indoor Sports offers facilities for a
range of indoor sports in New Zealand. Therefore, the parts of the population in New Zealand
that can be identified as the potential market for the company are –
 Sports Enthusiasts: New Zealanders, both women and men, who are engaged into
various kinds of indoor activities and sports.
 Fitness Conscious: The current trend indicates that people are being conscious about
their health and fitness, and hence, they become engaged into various sports activities.
 Schools and Colleges: Schools and colleges have their own sports centres. Therefore,
they can be prospective target market for the company.
 Sports Clubs: Sports clubs, both local and national, who look for facilities for their
members to practice cricket, football and netball, are potential target of the company.
 Sports Programs: Every year, both the Government and non-government organisations
host numerous sports programs. This is a large opportunity for the company to offer its
facilities and to promote the company.
 Families: This is an important segment of the market to promote the idea that the
company has facilities ‘for everyone’. The company has the opportunity to offer services
for kids and the senior citizens to participate in sports.

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Part 2.2. Customer needs/wants/preferences:
Every business has its own market and market needs. While starting a business, it is crucial to
understand the needs of the customers of the target market so that the company can provide
services that satisfy the needs and wants of the customers (Majava et al., 2014; Thorson &
Moore. 2013). The identified target market of the company has a specific set of needs and wants.
 The primary need of the customers is to be engaged in sports activities.
 Staying healthy and fit is becoming a growing concern of the people, and sport is the best
way to do that.
 Obese patients are being suggested to be involved in physical activities. Indoor sports
such as cricket, football, and netball are interesting way to be engaged in sports.
 The schools, colleges, government and non-government organisations often need
facilities to organise the annual sports programs.
 The sports clubs has the need of finding places with proper facilities for their members to
practice.
 Sports is an important part of a child’s life and parents often seek facilities that would
provide proper services for their children to play in it.
 Senior citizens want an enthusiastic way to stay fit and healthy.
Part 2.3. Competition:
In business, it is crucial to offer the consumers something that the other similar
companies do not. Business is a world of competition and hence, it needs to have competitive
advantages to achieve the goal of satisfying the customers (Hennig-Thurau & Hansen, 2013). In
order to have competitive advantages, a company needs to identify and understand the
competitors. There are two types of competitors – direct and indirect.

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 2.3.1. Direct Competitors:
The direct competitors are considered to be those companies that offer similar products
and services (Kemper et al., 2013). The direct competition can be both on international and local
scale. Both Adidas and Nike offer sports apparel and therefore they are involved in direct
competition to each other. Similarly, when two shoe shops are positioned at the same street or
locality, they are the direct competitors of each other. The direct competition is the primary
challenge of any company as this gives the customers opportunity to compare the offerings of
different organisation based on their prices, locations, features of services, and service quality,
before deciding. Different customers have different sets of preferences, and most likely to select
the organisation whose offering is most suitable to them.
In the context of Goldy Indoor Sports, there are multilayers of direct competitors. The
five star hotels offer supreme sports facilities in their premises, which are availed by the sports
personas and upper class population of the society. Some multinational companies (MNCs) also
offer facilities to their employees and clients where they can engage into indoor sports. The
employees get membership for these facilities in a cheaper price, and in some cases even free.
The government indoor sports arenas are huge competitors for the company. These facilities are
located in convenient places and offer lower prices. The additional advantage of government
facilities is that it provides the opportunity for the young sportspersons to enrol into government
programs for future growth in sports. Housing complexes in today’s time have their own sports
complex that offer indoor sports facilities to all the family members like parents, aged persons,
and kids. It is easier for the residents of these complexes to avail the services within their home
premises.
Part 2.3.2: Indirect competitors:
The companies that offer products and services that are slightly different, and target the
same market group to satisfy the same needs are categorised indirect competitors (Bengtsson &
Kock, 2015). These kinds of competitors are also referred as substitutes. Clothes are basic needs
of humans. While some customers prefer to buy readymade clothes, some prefer to buy clothing
materials and tailor them as per personal requirements. In both these cases, the need of the
customer is same but the product to satisfy that need is different.

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
The primary indirect competitor of Goldy Indoor Sports is the companies that provide
outdoor sport services. The need of the customers to stay healthy and fit can also be satisfied by
various outdoor sport activities. There are facilities that offer both indoor and outdoor services,
which is a double threat to the company. Another trending offering is adventure sports. It has
become quite popular among the young and middle-aged population. Many of the customers
seek excitement in their sport activities, which directs them to the adventure sports such as
skydiving, canyoning, scuba diving, trekking, and climbing. Therefore, these kind sport facilities
are potential indirect competitors of the company.
Part 2.3.3. Strategical analysis and measures:
Strengths Weakness
 Dedicated sports
facilities
 Sport facilities for older
people
 Only indoor sports
 Exclusion of rugby
Opportunities Threats
 Government investment
 Favourable climate
 Enthusiastic people
 Outdoor sports facilities
 Adventure sports
 Organisations that offer similar facilities
Part 2.4. Market Growth and Profitability Potential:
Strengths: The company offers sports facilities, which has a growing demand. Therefore, there
would always be customers who need this facility. Along with the young and middle-aged
customers, Goldy Indoor Sports also offer services to the senior citizens of the society, which
gives them a competitive advantage.
Weakness: The company only offers indoor sports facilities like cricket, net ball and football,
which narrows down the services and increases the competition. The exclusion of the most
popular sports of the country, rugby also is a huge competitive disadvantage of the company.

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Opportunities: The government of New Zealand has been taking crucial steps to promote the
culture of sports for a long time. The recent investment programs of the government provide the
community sport facilities to grow. The climate of Australia is favourable for the sports
companies to grow further. The citizens are also very enthusiastic about participating in various
kind of sports.
Threats: The company has considerable market competitions, both direct and indirect.
Competing with the outdoor sports facilities is the greatest challenge of Goldy Indoor Sports.
There are also organisations that offer both indoor and outdoor sports facilities, which is a double
threat to the company. In addition, other organisations like five star hotels, housing complexes,
MNCs, and government organisations offer the similar services.
Part 2.5. Other relevant factors:
The indoor sports facilities should keep on expanding the sports facilities on regular
basis. they should maintain the quality of facilities at all costs.
Part 3.0. Idea generation:
Ideas generation enable entrepreneurs to introduce products more aligned with the needs
and expectations of market. As per Salter et al. (2015) generation of new ideas enable
entrepreneurs to strengthen their product strategies. The entrepreneurs, both individuals and
business firms can align their new product development more with the market, thus gaining
greater acceptance among customers. This also enables them to generate more revenue and
capture stronger positions in the market, thus boosting their competitive advantages.
Part 3.1. Ideas for Product strategies:
The idea generation towards development of product strategies would be divided into
sections namely, ideas regarding merchandising and delivery of the products.
Part 3.1(a). Product Merchandizing/displays/Availability:
The product merchandising facility would consist of three sections each consisting a
game namely, cricket, net ball and football. The three sports would be available to customers on
all days of the week, expect Tuesday. The customers would have to buy tickets at the counter to
avail the indoor facilities. The customers would be provided the articles to play with bats and
balls. Each customers would be able to avail the facilities for maximum one hour at a stretch.

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Further, in order to enable several customers use the indoor game facilities simultaneously, no
customers would be use the facilities more than once in a given day. The following would be the
availability rules of Goldy Indoor Sports:
Availability Rules
1. Three sports facilities available-cricket, net ball and football.
2. Timings-9 am to 11 pm on all week days expect Tuesdays.
3. A customer can use the facilities once in a day for an hour at a stretch
4. Playing with branded goods would attract extra charges.
5. The sports articles would be subject to facility
6. The rules/rates of the indoor are subject to changes without prior notice. Customers are
kindly being requested to check the website for any change in rules/rates.
7. Your cooperation is highly appreciated.
Figure 1. Rules of availability of products of Goldy Indoor Sports
(Source:Author)
Goldy Indoor Sports would have several sports items like bats and rackets from reputed
companies like Nike on display. Customers can avail those sports items on payment of extra
charges as applicable. The aim of this facility would be to add value to the expenditure
customers would be incurring to avail the facilities. This availing of playing with branded sports
articles would enhance the level of the customers’ satisfaction. This would allow the indoor
sports facility to attract both middle and upper class consumers.
Goldy Indoor in addition to availability and display strategies would also have
merchandising facilities. The sports facility right from launch of business would have an official
website. The website would enable viewers to gain complete and accurate information about the
facilities available and book slots. The interested customers can also purchase for indoor sports
facilities online.
Part 3.1(b). Delivery of products:
The delivery of the indoor sports products of Goldy Indoor Sports would be creative and
aim to maximise the satisfaction of the customers/users. The customers can buy tickets to avail

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
the specific sports like cricket and football. They can buy tickets to avail one or all the three
sports facilities. The customers which want to order indoor game facilities online can place
orders and pay online. They can also avail the facility of cash on delivery and can make the
payments on receiving the merchandise ordered.
The customers besides enjoying sports facilities, can also avail food products at the in-
campus food court. The food court would serve pizzas, burgers and non-alcoholic beverages like
milk shakes and energy drinks at reasonable rates. This creative combination of core(sports
facilities) and additional products and/or facilities (food court) would enable Goldy Indoor
Sports maximise the customer satisfaction of the customers (Chang & Taylor, 2016).
Part 3.2. Ideas for serving strategies:
The service strategies of Goldy Indoor Sports would aligned to the product strategies and
aim to maximise the satisfaction of customers. The service would enable the indoor sports
facilities to acquire a loyal base of customers who would use the indoor sports facilities, thus
generating perpetual business and revenue for Goldy Indoor Sports.
Part 3.2(a): Service availability:
The service availability of Goldy Indoor Sports would be designed creatively to ensure
maximum customers’ satisfaction. The following are the services which would be available at
the Goldy Indoor Sports:
Nine sports arenas:
Goldy Indoor Sports would offer nine sports arenas, three assigned to each category of
games. There would three arenas each for football, cricket and net ball. Each of the arenas would
be dedicated to three customer groups namely, minor, children and senior citizens. This service
would enable the customers of all the three segments to avail the sports services without the fear
of getting hurt.
Waiting area:
The indoor sports facilities would provide a waiting area service where the customers can
wait if the sports arenas are fully occupied. The waiting area would have a television and

20
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
magazine stands so that the customers waiting in engage themselves in watching television or
magazines.
Food services:
Goldy Indoor Sports would have a dedicated food court where the customers can avail
food products while they wait for their turns to play or after the finish playing. This customers
can either opt for receiving their food orders at the food court or enjoy delivery services at the
waiting area.
Medical facilities:
Goldy Indoor Sports would provide medical facilities and health assistance facilities. The
aged and customers suffering from locomotion issues would be able to avail wheel chair
facilities throughout the premises. The indoor sports facilities would offer health check-up
services to its customers at subsidised rates. Thus, it can be inferred from the discussion besides
offering indoor sports services, the Goldy Indoor Sports would also aim to enhance the overall
wellness of its customers by offering monthly medical services. This would enable it to ensure
value creation to customers and enhance their customer satisfaction (Zhang et al., 2017).
Part 3.2(b). Delivery of services:
The delivery of services should be designed to streamline the entire customer service
offering process and enhance customer satisfaction. The service delivery of the services would
start once customers buy tickets to avail the facilities. The customers can approach the playing
arenas to avail the indoor games facilities. If the facilities are preoccupied, they would have the
option of either relaxing at the food court or at the waiting area. Goldy Indoor Sports should train
its employees to ensure high level of services delivery to customers. The following are the
service delivery steps:

21
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Customer buys
tickets
Advances towards
the sports arena Is the sports arena free
Yes
Plays and
enjoys
No
Waiting area
Food court

22
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Figure 2. Figure showing service delivery steps of Goldy Indoor Sports
(Source: Author)
Part 3.3. Ideas for business concepts:
The ideas of the business concepts of Goldy Indoor Sports would revolve around the
facilities and the services discussed above. Laszlo and Zhexembayeva (2017) mention that
business organisations in their business ideas need to consider both core business concepts and
value added concepts.
Part 3.3(a). Core concepts:
The core business concepts of Goldy Indoor Sports would revolve around the provisions
of sports arenas comprising of the three games namely, football, cricket and net ball. The aim of
the core concepts would be generation of revenue by offering indoor sports facilities to
customers. It can also be pointed out that the core business strategies comprising of the sports
facilities would be actual products which would attract customers. However, Rosemann and vom
Brocke (2015) points out that business organisations are required to provide the customers
additional facilities which are covered by the value added business concept. The value added
services enhance the customer satisfaction of the customers and boosts revenue generation.
Part 3.3(b). Value added concepts:
The value added business would enhance the customers’ experience of availing the core
business facilities of Goldy Indoor Sports, the indoor sports arena facilities. As value business
concepts of the business would setting up a food court and a waiting area for the customers. The
value added concepts would also include customer assistance services like wheel chairs and
medical check-up facilities. These value added services would maximise the convenience of
customers and enhance their rates of customer satisfaction. It can also be pointed out that the
core and the supporting businesses should be considered while planning the very layout of the
indoor sports complex.

23
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Cricket(kids)
Fioo
Cricket (kids) Net ball (senior
citizens)
Football (senior citizen) Cricket (senior
citizens)
Football (kids)
Net ball (kids)
Net ball (general) Football (general) Cricket (general)
Waiting room
Food court
Medical
room 1
Medical room
2

24
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Figure 3. Layout of Goldy Indoor Sports (core business-black and value added units-blue)
(Source:Author)
Part 3.4. Other ideas:
The management of Goldy Indoor Sports should at a later phase implement other ideas
towards business expansion. The new ideas can consist of expanding the existing product line of
cricket, football and net ball can be expanded to include indoor games like billiards. Similarly, as
far as value added services are concerned, the management of Glody can expand in this case as
well. For example, the management can include a roof top food court or a spa. However, it can
must be pointed out that implementation of other ideas would require more investment. The
priority of the management should be to earn healthy returns on the amount that it would invest
in the initial phase (Kowalkowski, Gebauer & Oliva, 2017). Then, they can reinvest a portion of
the return towards expanding the business by implementing new ideas.
Summary:
The idea generation phase of the business establishment plan of Goldy Indoor Sports in
city of Chirstchurch revolves around two main aspects. The first aspect is that the products or
facilities should be aimed at value creation of customers. The value added services along with
the core services and facilities should play important role in achieving this aspect which is also
the first aim. The second aspect is that the management should aim to generate profits on its
initial initial investment and then reinvest the profit towards business expansion (Rennung,
Luminosu & Draghici, 2016)
Part 4.0. Idea Evolution and selection:
The management of Goldy Indoor Sports should evaluate the production and service
strategies. The body should judge the actual viability of the strategies mentioned above against
the market conditions like customer preferences. For example, as far as cricket or football is
concerned, they are largely regarded as outdoor games and moreover, playing them within closed
spaces presents more chances of the players getting hit due to limited space (Woollings, McKay
& Emery, 2015). Again government policies like promotion of outdoor sports should also be
considered while evaluating the choice of the indoor (newzealandnow.govt.nz. 2018). This is
outdoor cricket and football are capable of attracting more people compared to their indoor

25
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
counterparts. It can be inferred that the management of the indoor sports facility should consider
evaluation of not only the sports offering but also the facilities and product strategies in the light
of prevailing market context and profitability.
Part 4.1. Analysis and Evaluation of creative ideas (Product strategies):
Idea Generating Areas Implementa
tions of
Creative
Ideas
Pros Cons Cost
vs
Benef
its
(On a
scale
of 1
to 10)
Ease of
Execut
ion
(On a
scale
of 1 to
10)
Reversib
ility
(On a
scale of
1 to 10)
a) Product
Displays/Availability/Mer
chandising
Core
products
and value
added
products.
Customers
need to buy
tickets to
avail
facilities.
Limited
access to
sports
facilities
This
stringent
process
would
enable
better
control of
the
business
in the
initial
phase.
Might
affect
custome
r
satisfact
ion.
6 7 8
b) Product Delivery Both core
and value
added pro
Enhance
customer
satisfacti
on, thus
in a way
Would
lead to
more
initial
expendit
6 7 8

26
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
counterac
ting the
con of the
previous
row.
ure
Figure 4. Table showing analysis of the product idea
(Source: Author)
Part 4.1.2. Analysis and Evaluation the Creative Ideas (Service Strategies):
Idea
Generating
Areas
Implementation
s of Creative
Ideas
Pros Cons Cost vs
Benefit
s
(On a
scale of
1 to 10)
Ease of
Executio
n
(On a
scale of 1
to 10)
Reversibilit
y
(On a scale
of 1 to 10)
a) Service
Availabilit
y
Service
availability
should be
expanded as
Goldy Indoor
Sports gains
financial
strength
Would
boost
revenue
generation
Initial
investmen
t towards
facility
expansion
would be
high
7 6 7
b) Service
Delivery:
Service delivery
should be more
customer centric
Would
boost
customer
satisfactio
n and
revenue
Initial
investmen
t towards
floor
layout in
the
8 7 8

27
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
generation direction
Part 4.1.3. Analysis and Evaluation the Creative ideas (Business Concept/s):
Idea
Generating
Areas
Implementations
of Creative
Ideas
Pros Cons Cost vs
Benefits
(On a
scale of
1 to 10)
Ease of
Execution
(On a
scale of 1
to 10)
Reversibility
(On a scale
of 1 to 10)
a) Core
Concept
Indoor games
arenas
Would
encourage
healthy
lifestyle
Initial
investment
would be
high
because
continuous
expenditure
in ensuring
customer
safety
around
arenas has
to be
ensured.
7 6 6.5
b) Value
Added
Concept
Food court,
waiting room
and medical
services
The
concept
should
support
the core
business
concept
Initial
investment
towards
quality
standards
would be
high
9 8 8
Figure 5. Evaluation of business ideas

28
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
(Source: Author)
Part 4.2. Justification of the mentioned creative ideas:
It can be justified that the core and the value added business ideas would combine to
maximise business growth in short term which is within 3 years within New Zealand and abroad
in the long run.
Short run (1 to 3 years within New Zealand):
Goldy Indoor Sports in the short run within three years to try to expand into other cities
within New Zealand. The centres in the other cities should provide both core and value added
products. It can be justified that it would enable the indoor sports facility to ensure satisfaction of
customers and generate revenue which would provide base to its long run business growth.
Long-run (4-7 years):
Goldy Indoor Sports should aim to expand into foreign market starting with with
Australia, its nearest foreign market and economic partner (mfat.govt.nz, 2018). The indoor
sports facility should maintain the high quality parameters of the facilities all across its
international branches. The sports facilities can however alter the gaming options to adapt to the
local market conditions of the host country. Similarly as far as value added services are
concerned, the offerings of the food court can be altered to suit the taste of the customers of the
host country.
Part 5.0. Market feasibility:
Market feasibility according to Sutopo et al.(2016) can be defined as the study of
testing of the market infrastructure conditions in supporting a business. The business can both be
initiated by an existing business company or by a new entrepreneurial firm. For example, Goldy
Indoor Sports is a new venture which seeks to enter the market of New Zealand by laying its
base in Christchurch. This means that the firm is required to examine the market conditions like
availability of financial services and expert human resources.

29
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 5.1. Applying Market feasibility:
Part 5.1(a). Incremental Innovation: Yes
Part 5.1(b). Disruptive Innovation : No
Part 5.1(c). Breakthrough Innovation: No
Part 5.1(d). Sustaining Innovation: No
Part 5.1(e). Other:
Innovation Type Idea Fits with the Innovation Type
1. Incremental
Innovation
Yes (The indoor sports facilities already exist in the
market and can be utilised to offer services.)
2. Disruptive
Innovation
Lack of finance
3. Breakthrough
Innovation
4. Sustaining
Innovation
Figure 6. Figure shwoing types of innovation
(Source:Author)
Summary:
The appropriate `innovation category would be incremental innovation. This is because
bringing about about disruptive innovation in case of indoor sports would require immense
investment and the initial budget amount of NZ$ 80000 is insufficient. However, at a later stage
the firm should use disruptive innovation as it gains strength in the market.
Part 5.2. Innovation Scope.
Life Cycle Stage Description Scope of
Innovation
Start-up/Introduction Innovation in value added srevices Limited

30
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Stage
Growth Innovation in sports offering and value
added services offering
High
Maturity Innovation in both, even in foreign
market
Very high
Decline Disruptive innovation in all of the above High
Figure 7. Table showing innovation life cycle
(Source: Author)
Part 5.3. Market Potential, Scope and Viability:
The target market would be Christchurch in New Zealand at the initial phase and later on
incorporate other cities in the country as well. The three market segments which the firm should
aim would be children, adults and senior citizens.
Porter’s Model:
The Five Forces analysis is a tool created by Michael Porter which delves into the market
competitions which firms are likely to face. E. Dobbs (2014) mentions that Porter’s Model is not
only helpful in the competitive analysis of business organisations but industries to which these
organisations belong as well. The five forces model by Porter takes into account five
macroeconomic forces which affect business organisations and their competitive advantages in
the market. The following are the five forces according to Porter’s model which would affect
Goldy’s Indoor Sports in Christchurch:

31
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 5.3.1. Target market attractiveness and profit potential:
Potential
Threat/Threats
Diagonals Degre
e
Favorable/Unfavorable Explanation
Threat of
Rivalry
 Higher
number of
existing
competitors
High Unfavourable Threats to
revenue
generation
Threat of New
Entrants
New Indoor games
facilities
high Unfavourable Threats to
revenue
generation
Threat of
Substitutes
Outdoor sports high Unfavourable Threats to
revenue
generation
Buyer
Bargaining
Power
High High favourable High
revenue
generation
Supplier
Bargaining
Power
low High Unfavourable Eats into
profits
Figure 8. Table showing impact of Porter's model on Goldy
(Source:Author)
Part 5.3.1. Discussion on Potential Threats from Figure 8:
Part 5.3.1(a). Threat of Rivalry:
The threats of rivalry to Goldy Indoor Sports would come from the similar indoor games
parlour. These indoor sports arenas also comprise of similar facilities in hotels, housing
complexes or any other location. These rivals would compete with Goldy for customers, thus
eating into its profits.

32
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 5.3.1(b). Threats of new entrants:
The new entrants consist of similar indoor sports facilities which would enter the market
of New Zealand after Goldy. These firms are threats because they would compete for customers
and revenue.
Part 5.3.1(c). Buyers’ Bargaining Power:
Buyers’ power is high in New Zealand. This is due to large number of available sports
and entertainment options.
Part 5.3.1(d). Supplier Bargaining Power:
Suppliers power is low.
Part 5.3.2.
Dimensions Scenario Analysis
against Monetary
Contribution(Projected)
Competition1 Competition
2
Competition
3
Price  Will be
reasonable
 Different price
for different
products
 Customized
pricing options
Lower Price
Range
Constant
Pricing
Additional
Quantity in
the same
price range
Value
Added Price
Offers
Pricing
Features
like
discount
vouchers,
coupons.
Core product offerings Reasonable Similar
facilities
Substitutes Extra time
Value added product Reasonable Similar Substitutes Vouchers,

33
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
offering facilities discounts
Part 5.3.2.1 Consumer Value Addition:
According to table of part 5.3.2
Features Advantages Disadvantages
a. High quality Customer satisfaction and revenue
generation
Initial investment
high
b. variety Customer satisfaction and revenue
generation
Initial investment
high
c. Facilities Customer satisfaction and revenue
generation
Initial investment
high
d. Social media
communication
Customer satisfaction and revenue
generation
Initial investment
high
Part 5.3.3. Likely Customer Adoption:
Time
Frame
Potential Consumer
Adoption (%)
Measures to Achieve the
Consumer Adoptions
1st Year 10 High quality of customer
services and affordable
value added services
within Christchurch.
2nd Year 20 Expansion of sports
facilities and adoption
more innovative product
offerings(both core and
value added )(Figure 5)
3rd Year 30 Expansion within New

34
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Zealand into new
markets
4th Year 40 International expansion
into Australia
5th Year 50 Expansion into new
markets outside
Australia like Asia and
North America
Figure 9. Table showing customer adoption of Goldy Indoor Sports
(Source:Author)
Note: The above table would be based on part 4.2 as well.
Part 6.0. Organisational Feasibility:
Part 6.1. Internal Feasibilities:
Part 6.1.1. SWOT Analysis:
Strengths:
1. Innovative sports facilities.
2. Strong yet customer centric value added
services.
3. New identity would attract customers.
4. Safe environment.
Weaknesses:
1. Limited financial capabilities.
2. Limited human resources.
Opportunities:
1. Extension of product line.
2. Expanding into new markets first, within
New Zealand and into foreign markets
thereafter.
Threats:
1. Competition from similar indoor facilities.
2. Government promotion of outdoor sports.
The strength of the indoor sports facilities would be its new identity and safe
environment. Its weakness would be limited financial strength in the initial phase and
opportunities would be expansion both in short and long run as described below. Moreover, the

35
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
indoor sports facilities would be able to attract limited human resources due to its limited
financial resources in the initial stage. The business opportunities which Goldy Indoor Sports
would enjoy would consist of expansion of product offering and expanding into new markets.
The market expansion would initially take place within New Zealand and then into new foreign
markets starting with Australia (table 9). The threats would come from similar indoor facilities.
Government support to outdoor sports facilities would also prove to be a threat for the indoor
sports facilities (Sportnz.org.nz, 2018). This is because this government support to outdoor sports
would encourage more people to involve into outdoor sports, thus leading to reduction of
customer football figures at the Goldy Indoor Sports.
Part 6.2. External Analysis:
Part 6.2.1. PESTEL Analysis:
Part 6.2.1(a). Political:
1. New Zealand is politically stable.
2. The government makes policies and laws to promote sports.
3. New Zealand has strong bilateral relationship with countries like Australia (Mfat.govt.nz,
2018). This would promote expansion of the sports firms into foreign markets.
4. Terrorism threats in indoor entertainment facilities are great threats.
Part 6.2.1(b). Economic:
1. New Zealand is economically strong which increasing GDP rate (Figure 10).
2. New Zealand Dollar shows weakening against international currencies like USD (Figure 6)

36
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Figure 10. Graph showing GDP of New Zealand
(Source: Tradingeconomics.com. 2018)
Figure 11. Graph showing NZD and USD exchange rates
(Bloomberg.com. 2018)
Part 6.2.1(c). Social:
1. Growing population of New Zealand would attract more customers.
2. Growing awareness about importance of sports to one’s health in attracting people towards
indoor sports facilities where outdoor sports facilities are limited (Zealand, 2015).

37
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 6.2.1(d). Technological:
1. Innovation in sports boosts sports industry.
2. Advanced medical and risk due to injuries treatment facilities boost sports industry in New
Zealand (Lopez-Gonzalez & Griffiths, 2016).
Part 6.2.1(e). Environment:
1. Indoor sports facilities are more sustainable.
2. Value-added services like food courts in sports facilities should also use environment friendly
ways to prepare food (Tait et al. 2016).
Summary: New Zealand is politically stable and economically strong. The society in New
Zealand would drive the business and the country is technologically strong as well. Moreover,
the facilities would be viable.
Part 6.3. Competitive Advantages based on Organisational feasibility:
Competitive
Gap/Advantages
Explanation Strategies to
Address the
Gaps/Proceed
through the
Advantages
One Advantages
based on6.1 and
6.2-The most
important
advantage
High quality Quality
development
and innovation
One Gap based
on 6.1 and 6.2-
The most vital
gap
Customer service Training and
innovation

38
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Summary:
Part 7.0. Financial feasibility: (Attached)
Part 7.1. Analysis of financial feasibility:
Assumption 1.
Target Market Size and Growth Rate:
The growth rate of the sports market in New Zealand is high. The government support to
the sports industry is promoting the industry to a high rate (Nzherald.co.nz, 2018).
It would be assumed that the Goldy would enjoy steady growth in the future. This is
because with the growing awareness about health benefits of sports, the firm can achieve steady
growth in the future (Tait et al. 2016).
Assumption 2.
Market Penetration.
The country of New Zealand has a population of more than 46 lakh people as per census
of 2016 (Archive.stats.govt.nz, 2018). This means that the sports industry of New Zealand can
attract immense number of consumers as the population rise.
It would be assumed that Goldy would be able to achieve market penetration first within
New Zealand followed by foreign markets starting with Australia. This would lead to expansion
of its business within the country and abroad (Mfat.govt.nz, 2018).
Assumption 3.
Consumer Purchase Size, Frequency and Preferences:
The country of New Zealand is experiencing rise in population which means that sports
companies can seek big purchase sizes. The increase in awareness among the people about
importance of sports would also boost frequency of customers’ visits to sports facilities like
stadiums and indoor sports arenas.

39
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
The business of Goldy Indoor Sports would be aiming to get a big purchase size right
from its very inception. It would be assumed that the current purchase size would limited with
NZD 80000 and expand in future.
Assumption 4.
Resource Requirement:
From the review of foreign restaurant business in New Zealand like Indian restaurants
and other business like retail, it can be assumed that Goldy would be able to acquire resources
from the local market in the initial phase (Pio & Dana, 2014). It would be assumed that the sports
facility would acquire the resources with NZD 80000 in the initial stage from local markets and
then from international markets at a later stage.
Assumption 5.
Price:
Assumption 6.
It would be assumed that the prices of both core and value added facilities would kept
low to gain market penetration.
Startup Expenses
Year 1 Year 2 Year 3
Buildings / Real Estate
Purchase
$
55,000 55000 55000
Construction 4,500 4500 4500
Remodeling - 0 0
Other 500 500

40
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
500
Total Buildings and R / E
$
60,000 60000 60000
Leasehold Improvements
Item 1
$
5,500 5500 5500
Item 2
$
5,500 5500 5500
Item 3
$
5,500 5500 5500
Item 4
$
5,500 5500 5500
Total L / H Improvements
$
22,000 22000 22000
Capital Equipment List
Furniture
$
25,000 25000 25000
Equipment
$
25,000 25000 25000
Fixtures
$
25,000 25000 25000
Machinery
$
15,000 15000 15000

41
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Other
$
1,500 1500 1500
Total Capital Equipment
$
91,500 91500 91500
Location and Admin Expenses
Rental
$
- 0 0
Utility Deposits 2,500 2500 2500
Legal and Accounting Fees 2,500 2500 2500
Prepaid Insurance 2,500 2500 2500
Pre-opening Salaries 2,500 2500 2500
Other 5,500 5500 5500
Total Location and Admin Expenses
$
15,500 15500 15500
Opening Inventory
Category 1
$
1,500 1500 1500
Category 2 $ 1500 1500

42
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
1,500
Category 3
$
1,500 1500 1500
Category 4
$
1,500 1500 1500
Category 5
$
1,500 1500 1500
Total Inventory
$
7,500 7500 7500
Advertising and Promotional Expenses
Advertising
$
1,500 1500 1500
Signage
$
1,500 1500 1500
Printing
$
1,500 1500 1500
Travel & Entertainment
$
1,500 1500 1500
Other / Additional categories - 0 0
Total Adv and Promo expenses
$
6,000 6000 6000
Payroll and payroll taxes

43
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Expense 1
$
25,000 25000 25000
Expense 2
2
5,000 25000 25000
Total Payroll and payroll taxes
$
50,000 50000 50000
Summary:
It can be summarised that Goldy should aim to gain market penetration with high quality
sports and supporting facilities. The prices as pointed out in the sixth assumption, should be kept
low and the sourcing would be local. The pricing should be increased to meet the increasing
revenue needs in the future.
Part 7.2. Model outputs:
Year 1 model inputs
Use this area to capture key components of the Profit and Loss Statement and the Balance Sheet for the first
year only.
1. Year-one revenue expectancy
<Product
1>
<Product
2>
<Product
3>
<Product
4>
Number of units sold annually 600 600 600 600
Average sales price per unit $35.00 $35.00 $35.00 $35.00
Annual revenue per product $21,000 $21,000 $21,000 $21,000
Total year 1 revenue $84,000
2. Year 1 cost of goods sold
<Product
1>
<Product
2>
<Product
3>
<Product
4>
Expected gross margin per product 5.00% 0.00% 0.00% 0.00%
Annual cost of goods sold per product $1,050 $0 $0 $0
Total year 1 cost of goods sold $1,050
3. Annual maintenance, repair, and overhaul
Factor (%) on capital equipment 0%
4. Number of years for straight-line depreciation 5

44
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
5. Annual tax rate 30%
6. If long-term debt is being used to finance
operations, enter the total loan value.
95,
000
Part 7.2(a). Cost structure:
Startup Expenses
Buildings / Real Estate
Purchase
$
55,000
Construction 4,500
Remodeling -
Other 500
Total Buildings and R / E
$
60,000
Leasehold Improvements
Item 1
$
5,500
Item 2
$
5,500
Item 3
$
5,500
Item 4
$
5,500
Total L / H Improvements
$
22,000
Capital Equipment List
Furniture
$
25,000
Equipment
$
25,000
Fixtures
$
25,000
Machinery
$
15,000
Other
$
1,500
Total Capital Equipment
$
91,500
Location and Admin Expenses

45
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Rental
$
-
Utility Deposits 2,500
Legal and Accounting Fees 2,500
Prepaid Insurance 2,500
Pre-opening Salaries 2,500
Other 5,500
Total Location and Admin Expenses
$
15,500
Opening Inventory
Category 1
$
1,500
Category 2
$
1,500
Category 3
$
1,500
Category 4
$
1,500
Category 5
$
1,500
Total Inventory
$
7,500
Advertising and Promotional Expenses
Advertising
$
1,500
Signage
$
1,500
Printing
$
1,500
Travel & Entertainment
$
1,500
Other / Additional categories -
Total Adv and Promo expenses
$
6,000
Payroll and payroll taxes
Expense 1
$
25,000
Expense 2 25,000
Total Payroll and payroll taxes
$
50,000

46
BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 7.2(b). Equity and debt structure:
Long-term debt from loan payment
calculator
9
5,000 $0 $0 $0 $0
Other long-term debt $0 $0 $0 $0 $0
Total debt $160,000 $65,000 $65,000 $65,000 $6
Part 7.2(c). Number of customers/sales:
$84000
Part 7.2(d). Cash flow:
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Operating activities
Net income $80,000 $0 $0 $0 $0 $80,000
Depreciation $34,700 $35,394 $36,088 $36,782 $37,476 $180,440
Accounts receivable $0 $0 $0 $0 $0 $0
Inventories $50,000 $0 $0 $0 $0 $50,000
Accounts payable $0 $0 $0 $0 $0 $0
Amortization 10,000 10,000 $10,000 $10,000 $10,000 $50,000
Other liabilities 5,000 5,000 $5,000 $5,000 $5,000 $25,000
Other operating cash flow items 0 0 $0 $0 $0 $0
Total operating activities $179,700 $50,394 $51,088 $51,782 $52,476 $385,440
$0
Investing activities $0
Capital expenditures $0 $0 $0 $0 $0 $0
Acquisition of business 0 0 0 0 0 $0
Sale of fixed assets $0 $0 $0 $0 $0 $0
Other investing cash flow items 0 0 0 0 0 $0
Total investing activities $0 $0 $0 $0 $0 $0
Financing activities
Long-term debt/financing ($95,000) $0 $0 $0 $0 ($95,000)
Preferred stock 0 0 0 0 0 0
Total cash dividends paid 5,000 5,000 5,000 5,000 5,000 25,000
Common stock 0 0 0 0 0 0
Other financing cash flow items 0 0 0 0 0 0
Total financing activities ($90,000) $5,000 $5,000 $5,000 $5,000 ($70,000)
Cumulative cash flow $89,700 $55,394 $56,088 $56,782 $57,476 $315,440
Beginning cash balance $0 $89,700 $145,094 $201,182 $257,964
Ending cash balance $89,700 $145,094 $201,182 $257,964 $315,440
Part 7.2(e). NPV and IRR:
To calculated later
Summary:

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 7.3. Sensitivity analysis:
Part 7.3(a). Initial Penetration:
Part 7.3(b). Average market:
Part 7.3(c). Measured projected:
Part 7.4. Venture Scenario vs Financial Viability:
Part 7.5. Justifying the Most Likely Scenario:
Summary:
It can be pointed out that Goldy should increase its revenue generation in the long run. It
must aim to gain financial sustainability.
Part 8.0. Growth and Sustainability Potential:
Mowforth and Munt (2015) can be defined as the way of utilising resources making the
product hard to replicate, customise and yet ensure sustainability.

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 8.1. Ventures Scalability Potential:
Part 8.1.1. Replicability: High
Part 8.1.2. Customizability: High
Part 8.1.3. Extendibility:High
Part 8.2.
Part 8.2(a). Market Penetration: Initially in Christchurch and then later all across new
Zealand
Part 8.2(b). Product Development: Continuous innovation
Part 8.2(c). New Market: Australia
Part 8.2(d). Diversification: new games
Part 8.2(e). Horizontal and Vertical Integration/Alliance/Merging: Yes
Part 8.3. Analyse and Identify Funding Strategies to be required: Yes
Part 8.3(a). Equity: Attached
Part 8.3(b). Debt: Attached
Part 8.3(c). Asset Financing:
Part 8.3(d). Mortgages: Attached
Part 8.4. Determining Venture’s Competitive Potential: Attached
Part 8.4(a). Product: Implement Vero:
Part 8.4(b). Price: Attached
Part 8.4(c). Production:NA
Part 8.4(d). Distribution:NA
Part 8.4(e). Resources: Attached
Part 8.4(f). Infrastructure: Attached
Part 8.4(g). Location: Attached
Part 8.4(h). Technology: Attached
Part 8.4(i). Marketing and Sales: Attached

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
Part 8.4(j). Customer Service: Attached
Summary:
The facility should aim to ensure high quality indoor games at affordable pricing.
9.0. Conclusion:
It can be concluded that Goldy should enter the market of New Zealand and expand into
Australia at a later stage. The management should maintain high high of facilities through its
business operations. The indoor sports facilities should also try to gain market foothold in
Christchurch at a very early stage. It should promote its business aggressive in the market to
expand its revenue generation. It must also acquire power to adapt to the market needs of host
countries at its expands overseas.
10.0. Recommendations:
It can be recommended that Goldy should acquire similar firms outside New Zealand. It
can also be recommended that the indoor sports facility should aim at acquiring more sports
arenas. It can also be recommended that the sports facilities should use marketing to outpace new
competitors.

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BUSINESS PLAN FOR AN INDOOR SPORTS BUSINESS
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