Business Plan for the Sports Academy

Finance 10 References 11 Appendices 13 Appendix 1 13 Appendix 2 14 Executive Summary The paper demonstrates the business plan prepared for the Sports Academy, where training will be provided to the children within the age group of 6- 14 years. It is basically a training institute for football, where effective and high quality of training is provided to the children between the age-group of 6- 14 years.

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ENTERPRENURESHIP
Table of Contents
Executive Summary...................................................................................................................3
1. Introduction............................................................................................................................4
2. Business Model Canvas.........................................................................................................5
3. Market....................................................................................................................................5
4. Operations and Technology...................................................................................................7
5. Human Resources...................................................................................................................8
6. Finance.................................................................................................................................10
References................................................................................................................................11
Appendices...............................................................................................................................13
Appendix 1...........................................................................................................................13
Appendix 2...........................................................................................................................14
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Executive Summary
The paper demonstrates the business plan prepared for the Sports Academy, where training
will be provided to the children within the age group of 6-14 years. This academy enters into
the market with the entry mode of partnership. It is partnering with Futsal OZ (Australia), a
company that already exists in the Sports market as well. Thus, this Sports Academy will not
require higher investment in equipment. The market survey illustrates the growth in the sports
industry, as these are the main advantage of the company. However, the company will be
adopting new technology in the training section. Thus, manpower will be hired as per the
requirement of the firm. The finance part of the business also shows the resources of the firm
and the revenue generated from the business.
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1. Introduction
This business plan has been developed for the purpose of starting up a Sports Academy,
where various activities of soccer with world-class facilities and infrastructure will be held. It
is basically a training institute for football, where effective and high quality of training is
provided to the children between the age-group of 6-14 year. Academy is open for both male
and female children, who are interested in soccer. The activities of the football training will
be conducted at the stadium under experienced and professional coaches. The equipment,
which will be used during the training period, will help the children to increase their strength,
agility, speed, and quickness in-game. The academy aims to serve organized sports education
courses along with training on life-skills and on developing psycho-social nature of the young
girls and boys within a safe and fun-filled environment. Children will engage in various fun
games with the soccer ball. At a certain interval of time, a reputed speaker from sports
domain will be invited in the academy for giving a motivational speech so as to encourage the
children and develop their interest towards the game of football. New technologies are also
being adopted in training integrated with the best facilities. However, the business is found to
be opening with the entry mode of partnership, as it will get partnered with the Futsal OZ.
The advantages of opening a sports academy with Futsal OZ is that Futsal OZ is a well-
known sports center and therefore the business will not need any such extravagant
introduction in the target market (SportFix 2019).
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2. Business Model Canvas
Key
Partners
- Futsal Oz
(Australia)
Key Activities
- Training junior
children
- Marketing
Value
Proposition
- Media attraction
- safe
environment for
children
- effective
training
Customer
Relationships
- High quality of
service
- effective interaction
among children and
volunteer or coach
Customer
Segments
- Different coach
and training will
be provided to
the children with
the age of 6- 10
- For 10-14 years
old different set,
of course, will be
provided
Key Resources
- Tools and
equipment
- Moveable assets
- Human resource
(coaches,
volunteers, staffs,
etc)
Channels
- Social networks
- Academy website
- Banners
Cost Structure
- Registration charges
- Equipment/ Maintenance
- Court rent
- Marketing
- Employee training cost
Revenue Structure
- Rent of workplace
- Charges for licensing
3. Market
Before entering the market, it is essential to analyze the factors such as potential, capacity,
and the size of the market, which will affect the business or its growth in the long run. Thus,
for analysing the market of Australia with respect to size, it can be recognized as a region
with the increasing popularity of sports in Australia, which has enlarged the size of the sports
market in Australia largely. The size of the market for sports has been explained through the
revenue graph, where it can be seen that the revenue generated from sports is increasing. The
graph also represents the forecasted revenue generated from sports for the upcoming years
(Statista 2019). Thus, it can be considered that the Australian market possesses the full
capacity for sports, as this particular sector has become the main source for the increasing
revenue of the country.
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Figure 1: Revenue of sports forecasted for each year
Source: (Statista 2019)
It also shows the annual growth rate of the sports industry in Australia, which is continuously
increasing on an annual basis. Thus, it is expected that the growth rate of revenue for 2019-
2023 has risen by 4.2% but by 2023, it may lead to the market volume of US$1,555m. The
growth rate of the sports industry in 2019 is found to be13.0% and by 2023 it is expected to
reach 19.5% (Statista 2019). There is an intense competition in the sports industry of
Australia with the presence of other profit and non-profit academics as well, which are owned
by the government of Australia. Despite huge competition in the market, new competitions
are still found to be entering into a market as due to the increase in trends of sports and a rise
in the annual growth rates of sports. The company faces these barriers in the path of profit-
making at the time of installing the sports academy due to insufficient financial support from
family. Moreover, the parents mostly prefer to opt for a non-profit academy for training their
children. It is an advantage for non-profit academies, which are currently operating in the
market (The Nielsen Company 2018). The trends of distribution are positively affecting the
firms of the sports industry, as it is increasing the opportunity and uncertainty of the market
as shown in the figure below.
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Figure 1: Changes and Affects Occurred In Sports Due To Media
Source: (The Nielsen Company 2018)
Another trend, which is affecting the sports industry, is sponsorship to the partnership, as it
makes the market multi-layered and strong enough to handle the situation (The Nielsen
Company 2018). It can also be mentioned in the previous section that the targeted customer
of the academy comprises the children within the age-group of 6-14 years, as the training
provided will be segmented based on the age of the children. However, it is a service-based
business and the targeted customers of those areas are currently availing the services from
Futsal Oz, with whom the business is about to tie up in the form of partnership. Thus, there
are no major competitors in the market for the business. The location of Sports Academy will
be the stadium of Futsal, which is located at OZ Victoria Street, Brunswick, Australia. The
potential customer will, in this case, be the children, who are currently getting trained at
Futsal Oz (Futsaloz n.d.).
4. Operations and Technology
Operation and technology comprise the important factors, which directly affects the business.
Thus, the technology used in the sports academy needs to be developed by adopting digital
technologies, which are effective in designing the equipment and increasing the efficiency of
coaches. The evolution of technology occurring in the sports industry has brought about
tremendous impacts on the results achieved in sports and in enhancing the equipment usage
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to the utmost level possible (Australian Government n.d.) In order to produce the services,
the current business of sports academy is using the option of partnership. Thus, the services
are provided in-house, which is at the stadium of the partner. On the other hand, the business
owned by the partner is also a sports academy and therefore, the resources, such as the
equipment, interior, facilities, and stadium are already available. The resources, which are
required to develop the business, entail professional and experienced coaches, computer
software, etc. However, businesses entering into the market with the entry mode of
partnership contribute largely in operating the function of a business, which is bound with
laws and regulations, as it requires the documents of partnership agreement, appropriate
license, past financial records, registered name of the business, and joint bank account in the
name of business. These have been registered from beforehand and possess the respective
registration certificates and taxation registrations (Brinkerhoff & Brinkerhoff 2011;
Legalvision 2019). However, in the training sections, coaches and staff members need to
maintain morale and ethical behaviours, which include honesty, respect, compassion, moral
character, and sense of responsibility (Government of South Australia n.d.).
5. Human Resources
In order to run the function involved in the firm, management will require coaches and staff
to support both the technical and non-technical task. It is a partnership business and thus the
owners of the business are me and the owner of Futsal Oz (Australia). We both will be
playing the roles of managers in the sports academy. The ownership structure of the firm is a
partnership. The business will also require certain manpower for opening the new venture of
the sports academy, which will include some experienced coaches, as well as staff, which are
to be hired for training the children. It also focuses on the adoption of new technology for
training, as there will be the technical team for implementing new technology. As the
coaches, who are hired for training the children, are the Futsal players, the charges paid to
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them will be rational. In the first year of operation, the firm will require 10 employees
including the coach and the staff-members. In the second year, it will require 15 employees,
while in the third year the coaching centre will need to include 25 of them, based on the fact
that the number of children will increase accordingly. I used to work for Futsal Oz and
possess a good relationship with managers and famous players in the Series of Futsal
Australia. Thus, I would be utilizing the experience at the time of hiring the employees.
Firstly, I will prefer those candidates, who possess experience in this field and have
knowledge of the game of football. It is also important to possess the quality of handling
children as their first challenge in the field. Compensation provided to the employees will
also be segregated as per the nature of the work, which they are contributing to the
organisation. Thus, the wages are distributed among the employees, but the coaches will be
paid on an hourly basis and will also depend upon the position, in which they are hired. For
instance, if he or she is a head coach, the compensation will be higher and if they are kept in
the position of an assistant coach, the wages will be somewhat lesser. On the other hand, the
technical team will be hired on a part-time basis, as their compensation depends largely on
the number of days worked in a month. The compensation for the technology also varies as
per the knowledge acquired by them. Compensation paid to the employees also plays an
important role in motivating the employees (Negash, Zewude & Megersa, 2014). Every
organization has its own motive and objectives, which might prove to be easier in achieving
those goals in case the employees work as a team. There are various benefits if they work as a
team as the objectives and the responsibilities of the firm are shared and the performance of
the individual team will also increase. The method of 360 degrees will be used to analyse the
employees and on this basis, they will also be rewarded for motivation (Jiang 2010). Thus, I
will provide my employees with an effective training session and will also motivate them to
work in a team. I will also organise programs, where they can show their individual talents
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and through which the interaction among the members can be increased. The strategies,
which are used for the growth of the company, will enhance the quality of the service
provided. Since it is a service-based company, the customer or the children will be attracted
in case the qualities of service are outstanding and there exists growth in the firm. The
organizational structure will change and expand horizontally after the growth occurs in the
firm, which means that there will be more schedules made for training and the employees can
build their career in the fields of national and international coaching (Newspaper WordPress
2018).
6. Finance
The projected revenue for the first year after the sales of the service is $70,000. As, per the
market research, for providing services, it charges $1000 for each team (Futsaloz n.d.).
However, in this academy, the price for whole day training is found to be cheaper than
childcare, which is around $50. It can thus be identified from the survey of the market that
the projected sales volume is US$1320m for 2019 (Statista 2019). The total expected revenue
is $65000 for the year 2020. The start-up cost for the particular business is $12145 and the
equipment costs are of $7800, which has also been demonstrated in appendix 1 and 2. The
possible sources of funding for the business take into consideration, the fees collected from
children. There are also chances of collecting money if some events are organised by the
team. Being the owner of the firm, a certain amount of capital will be contributed from
personal saving.
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References
Australian Government n.d., ‘Connecting digital and technology with Australia’s competitive
sport obsession to achieve world-leading physical activity and high performance objectives’,
Technology in Sport Project, pp. 1-36.
Brinkerhoff, D.W & Brinkerhoff, J. M 2011, ‘Public–private partnerships: Perspectives on
purposes, publicness, and good governance’, Public Administration and Development, vol.
31, no. 1, pp. 2-14.
futsaloz n.d., Junior National, Futsal Oz, viewed 28 September 2019,
<http://futsaloz.com.au/state-and-nationals/junior-nationals/>
Futsaloz n.d., The best way to play indoor soccer, Futsal Oz, viewed 28 September 2019,
<http://futsaloz.com.au/>
Government of South Australia n.d., Sport ethics & culture, Sport & Recreation, viewed 28
September 2019,
<https://orsr.sa.gov.au/sport_and_recreation/managing_your_club_or_association/
ethics_and_culture>
Jiang, X 2010, ‘How to motivate people working in teams’, International Journal of Business
and Management, vol. 5, no. 10, pp.223-229.
Legalvision 2019, 7 Partnership documents you need to start your business, Partnership
Documents, viewed 28 September 2019, <https://legalvision.com.au/partnership-documents-
you-need-to-start-your-business/>
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Negash, R, Zewude, S & Megersa, R 2014, ‘The effect of compensation on employees
motivation: In Jimma University academic staff’, Basic Research Journal of Business
Management and Accounts, vol. 3, no. 2, pp.17-27.
Newspaper WordPress 2018, How to get an international manager offer in FIFA 19, FIFA,
viewed 28 September 2019, < https://fifacareermodetips.com/2018/12/25/international-
manager-offer-fifa-19/>
SportFix 2019, Futsal OZ – Brunswick, SportFix, viewed 28 September 2019, <
https://sportfix.net/FUTSALOz-Brunswick>
Statista 2019, Sports & outdoor, Expert Tools, viewed 26 September 2019,
<https://www.statista.com/outlook/259/107/sports-outdoor/australia>
The Nielsen Company 2018, ‘Top 5 global sports industry trends’, The Nielsen Company, pp.
1-15.
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Appendices
Appendix 1
Start-up Costing for Sports Academy - [2019]
START-UP COSTS Cost
($)
EQUIPMENT/CAPITAL
COSTS
Cost
($)
Registrations Business purchase price
Business name 100 Franchise fees NA
Licences 250 Start-up capital 5000
Permits 250 Plant & equipment
Domain names 300 Vehicles 300
Trademarks/designs/patents 300 Computer equipment 400
Vehicle registration 350 Computer software 600
Membership fees 95 Phones 100
Accountant fees 450 Fax machine 500
Solicitor fees 500 Security system 300
Rental lease cost (Rent advance/deposit) 1000 Office equipment
Utility connections & bonds (Electricity, gas,
water) 500 Furniture 600
Phone connection 300 Shop fit out 0
Internet connection 500
Computer software 750
Training 800
Wages 2000
Stock/raw materials 500
Insurance
Building & contents 0
Vehicle 0
Public liability 0
Professional indemnity 0
Product liability 0
Workers compensation 500
Business assets 0
Business revenue 0
Printing 100
Stationery & office supplies 150
Marketing & advertising 500
Total start-up costs
$
12145 Total equipment/capital costs
$
7800
Assumptions:
All figures are GST exclusive.
Appendix 2
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Profit & Loss for Sports Academy as at [2019]
PROFIT & LOSS Month 1
($)
Month n
($)
Year 1
($)
Year 2
($)
Year 3
($)
Sales 8000 10000 70000 130000 180000
less cost of goods sold 1000 1200 5000 10000 15000
More…
Gross profit/net sales $ 7000 $ 8800 $ 65000 $ 120000 $ 165000
Expenses
Accountant fees 450 450 4000 4500 4500
Advertising & marketing 500 400 1000 800 800
Bank fees & charges 200 300 1200 2000 2500
Bank interest 300 350 1000 1600 2000
Credit card fees 200 200 800 1200 1500
Utilities (electricity, gas, water) 300 300 500 100
Telephone [phone]
Lease/loan payments 0 0 0 0 0
Rent & rates 1000 1000 12000 24000 26000
Motor vehicle expenses 0 0 0 0 0
Repairs & maintenance 200 300 1500 2000 2300
Stationery & printing 250 250 600 600 800
Insurance
Superannuation
Income tax 300
Wages (including PAYG) 1000 1000 2200 40000 60000
More… 101200
Total expenses $ 5750 $ 5900 $ 24800 $ 77800 $ 101200
NET PROFIT (Net Income) $ 1250 $ 2900 $ 40200 $ 42200 $ 63800
Assumptions:
All figures are GST inclusive.
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