Aug.

20, 2021

“Bermuda Skate Zone”

Roller Rink Business Plan

Table of Content
This is an awesome business to invest in since many people nowadays love the
roller-skating culture. From adults to children, the numbers of people looking for
roller skating services have tremendously increased over the years. Roller skating
is not only a great exercise to engage in with your family, but it’s also fun. So, at
the end of the day you will be bonding and improving the health of your loved
ones at the same time. The startup capital required may be on the high side but
with proper planning and funding, I hope to recover the costs within a few years
of business.

Executive Summary
2.1 The Business
The roller rink business shall be registered under the name Bermuda Skate Zone,
and will be situated in Sands 360, Sandys Parish, Bermuda. The business will be
owned and managed by Dinell W.L.S. Bean an experienced skating professional.

2.2 Management Team

Dinell W.L.S. Bean is a skating instructor who has been in the roll skating
industry for over twenty-five years. Before opening a roller-skating rink
business, Dinell W.L.S. Bean visited many roller-skating rinks throughout the
United States learning the art of skating thus gaining impressive knowledge and
experience.

2.3 Customer Focus

Bermuda Skate Zone intends to offer a modern, spacious and well-equipped
facility for all potential customers across the island of Bermuda.

2.4 Business Target

Since it will be the first roller rink business on the island, the whole community
and residents of Bermuda will highly be benefiting from a well-managed and
equipped facility.
Company Summary
3.1 Company Owner
Dinell W.L.S. Bean is a skating instructor who has worked with skating
professionals from around the world. He has greatly contributed to ensure the
growth of the roller-skating industry.

3.2 Aim of Starting the Business

To open a roller-skating rink business, it requires an expert who
understands the art of skating and handling the business to properly identify
priorities and set goals. Dinell has previously managed roller skating and
therefore, comprehends the nitty-gritty details of managing a roller rink skating
facility.

3.3 How the Business will be Started

As a professional skating instructor, Dinell understands what it entails to begin
this venture and to make it successful. To actualize his plan, he has hired
professional to come up with an impressive financial roadmap to guide the
business. The following is the ultimate financial data for Bermuda Skate Zone.

Start-up Expenses
Legal $3,000
Consultants $2,500
Insurance $8,000
Rent $20,000
Research and Development $10,000
Expensed Equipment $20,000
Signs $3,000
TOTAL START-UP
$66,000
EXPENSES
Start-up Assets $0
Cash Required $120,000
Start-up Inventory $30,000
Other Current Assets $15,000
Long-term Assets $5,000
TOTAL ASSETS $25,000
Total Requirements $30,000
START-UP FUNDING $0
START-UP FUNDING $80,000
Start-up Expenses to Fund $40,000
Start-up Assets to Fund $30,000
TOTAL FUNDING
$0
REQUIRED
Assets $12,000
Non-cash Assets from Start-
$15,000
up
Cash Requirements from
$0
Start-up
Additional Cash Raised $50,000
Cash Balance on Starting
$20,000
Date
TOTAL ASSETS $0
Liabilities and Capital $0
Liabilities $0
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable
$0
(Outstanding Bills)
Other Current Liabilities
$0
(interest-free)
TOTAL LIABILITIES $0
Capital $0
Planned Investment $0
Investor 1 $22,000
Investor 2 $20,000
Other $0
Additional Investment
$0
Requirement
TOTAL PLANNED
$120,000
INVESTMENT
Loss at Start-up (Start-up
$40,000
Expenses)
TOTAL CAPITAL $45,000
TOTAL CAPITAL AND
$40,000
LIABILITIES
Total Funding $100,000

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Services for Customers
Bermuda Skate Zone is keen to offer top notch and modern roller-skating
facilities for potential customers. Since Dinell already has an idea of how to
open a roller-skating rink business, the venture will focus on building a
healthy and long-lasting client relationship as it offers the following services.
 Offer indoor roller-skating expeditions.
 Provide video arcade and redemption counter.
 Small restaurant to offer snacks and refreshments.
 Hosting Parties and fundraising

Marketing Analysis for Roller Rink

Business
For Smooth Slide Rink to meet its market goals, a well-researched market
analysis to find out market trends was started to assist the business effectively
tap into the market. This roller rink business plan has showed the strategy the
business intends to focus on to meet its obligations.
Note
With the fast growth and popularity of roller skating in Springfield, there is a
huge potential for Smooth Slide Rink to take advantage of. Taking into
consideration the location of the business, demographic stats and available
competition, it is guaranteed the skating facility will enjoy a high number of
customers.

5.1 Market Segmentation

With a good roller-skating rink business plan, this will act as good
foundation to start a strong and marketable business. Bermuda Skate Zone
therefore has the best opportunity to engage in intensive marketing campaigns
to command a larger market share. One doesn’t need to have prior experience
roller skating to visit the facility to have a good time. Based on market findings,
the skating facility intends to target the following groups of customers.

5.1.1 Children
A lot of roller-skating facilities earn a lot of money and profits from children
related activities. Bermuda Skate Zone plans to have a wide option of children’s
programs that will make the facility attractive for children. Bermuda has a wide
population of children between ages of five to seventeen which is key revenue
potential for business. Nowadays, parents are open to the idea of having their
children take part in fun and recreation activities in order to encourage healthy
living. With a roller-skating facility in the community, the most lucrative
customers for the business will be children.

5.1.2 Adults (Age 18-44)

As roller skating activity popularity is increasing each single day, and adults too
are over the moon to try skating for fun. This roller-skating rink startup
business plan also includes adults since the business plans to put in place
awesome activities that will appeal to the adult between 18-44 years. Since most
of this age group are working and in active activities, they will most likely have to
pay for membership which will generate a steadier income for the skating facility.

5.1.3 Schools and College Students

Roller skating is a major trend in many educational institutions. In this case,
many schools once in a while always organize indoor roller-skating competitions.
Bermuda Skate Zone stands a great chance to gain as these schools and their
students will need a professionally managed and well-equipped facility where
they can compete and have a fun. With the number of schools in Bermuda, the
business will definitely flourish. Bermuda Skate Zone to widely market its services
to this target group to maximize on profits.

5.1.4 Churches and Religious

Centers
The neighborhood has a great number of religious institutions and churches that
periodically organize recreation activities for the congregations. Thanks to
Bermuda Skate Zone, they will be able to have fun and engaging religious
activities at the facility.
Market Analysis
YE
Potential Grow YEA YEA YEAR CAG
AR YEAR 5
Customers th R1 R2 4 R
3
23,00 26,00 29,0 10.00
Adults 30% 32,000 35,000
0 0 00 %
20,00 23,00 26,0 12.00
Children 35% 29,000 31,000
0 0 00 %
Schools and 18,00 21,00 24,0 14.00
19% 27,000 30,000
College Students 0 0 00 %
Churches and 15,00 18,00 21,0 24,0 9.00
16% 27,000
Reigious Centers 0 0 00 00 %
100 76,00 88,000 112,00 11.00
Total 123,000
% 0 100,000 0 %

5.2 Business Target

Bermuda Skate Zone is ready to start operations in an easily accessible location
where there is no competition. The high population in Bermuda is a great source
of market for the skating facility. When allocating the roller-skating rink
startup costs, the business knows it will be expensive to open the facility and
therefore, enough plans are needed to recover the initial investment. Bermuda
Skate Zone hopes to make fully recovery of the startup cost investment in two
years. The skating facility has predicted a 30-40% annual increase in sales.
5.3 Product Pricing
A good roller-skating business plan should be carefully thought through and
accurate prices indicated to lay a perfect foundation for the business. Although
there is no competition, Bermuda Skate Zone has come up with affordable prices
to attract and retain customers.

Strategy
If you are wondering how to open a skating rink business that will be
successful from launching, you need to come up with a comprehensive and
realistic strategy. Dinell W.L.S. Bean has worked with skating experts to come up
with a personalized roller-skating rink business strategy that will be the backbone
of attracting business revenue. The following is Bermuda Skate Zone sales
strategy.

6.1 Competitive Analysis

Bermuda Skate Zone is located in an accessible location with a huge population
of the market target. Furthermore, this is the first skating rink business in the
area, so there will be a high demand.

6.2 Sales Strategy

To make sure Bermuda Skate Zone reaches its intended customers,
these helpful strategies will be used to boost sales.
 The business will use word of mouth marketing to market the facilities.
 The skating facility will use local advertising methods such as churches,
religious institutions, print media, radio, Television, schools and vocation
institutions.
 Plan a publicized grand opening party to create awareness about the new
roller rink skating facility.
 Use digital media platforms such as Twitter, Instagram and Facebook to
advertise.
 Offer an introductory reduced fee for the first members.
 Organize numerous children's activities such as birthday parties.

6.3 Sales Forecast

Bermuda Skate Zone is focused on offering a wide variety of sales strategies to
its targets.
Sales Forecast
Unit Sales Year 1 Year 2 Year 3
Indoor Roller Skating
400,000 420,000 440,000
Expedition
Video arcade and redemtion
250,000 300,000 350,000
center
Hosting parties and
200,000 250,000 300,000
fundraising
Small restaurant for snacks
150,000 200,000 250,000
&refreshments
1,150,00 1,550,00 1,970,00
TOTAL UNIT SALES
0 0 0
Unit Prices Year 1 Year 2 Year 3
Indoor Roller Skating
$200.00 $220.00 $240.00
Expedition
Video arcade and redemtion
$170.00 $200.00 $230.00
center
Hosting parties and
$150.00 $180.00 $210.00
fundraising
Small restaurant for snacks
$130.00 $160.00 $190.00
&refreshments
Sales
Indoor Roller Skating $200,00 $230,00
$260,000
Expedition 0 0
Video arcade and redemtion $180,00 $200,00
$230,000
center 0 0
Hosting parties and $150,00 $180,00
$210,000
fundraising 0 0
Small restaurant for snacks $100,00 $130,00
$160,000
&refreshments 0 0
TOTAL SALES
Direct Unit Costs Year 1 Year 2 Year 3
Indoor Roller Skating
$3.20 $4.20 $5.20
Expedition
 Video arcade and redemtion
$2.00 $3.00 $4.00
center
Hosting parties and
$1.60 $2.60 $3.00
fundraising
Small restaurant for snacks
$1.50 $2.50 $3.50
&refreshments
Direct Cost of Sales
Indoor Roller Skating $120,00 $140,00
$160,000
Expedition 0 0
Video arcade and redemtion $100,00 $120,00
$140,000
center 0 0
Hosting parties and $100,00
$80,000 $120,000
fundraising 0
Small restaurant for snacks
$50,000 $70,000 $90,000
&refreshments
$350,00 $430,00
Subtotal Direct Cost of Sales $510,000
0 0

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Personnel Plan
Bermuda Skate Zone offers various services to maximize on the profits. How the
business intends to pay salaries is well indicated in this roller-skating rink
business plan.

7.1 Personnel Plan

Bermuda Skate Zone is owned by Dinell W.L.S. Bean, who understands how to
start a roller-skating rink business. He will be also the operating manager of
business. Other people to be hired include.
 Business Manager
 Assistant Manager
 Administrator
 Two Instructors
 One Marketing Executives
 One Cashier

7.2 Average Staff Salaries

Bermuda Skate Zone plans to spend the following amounts on staff salaries for
the first three years.
Personnel Plan
Year 1 Year 2 Year 3
Manager $50,000 $70,000 $90,000
Cashier $20,000 $23,000 $26,000
Administrator $25,000 $35,000 $40,000
1Sales and Marketing
$40,000 $60,000 $80,000
Executive
$105,00 $120,00
2 Skating Instructors $129,000
0 0
Assitant Manager $30,000 $33,000 $36,000
$270,00 $341,00
Total Salaries $401,000
0 0

Financial Plan
Bermuda Skate Zone has a steady financial plan that will guide the business to
run smoothly and achieve success. Starting a skating rink business will be
facilitated by Dinell’s personal financial investment and angel
investors. Key financial information for the business has been shown in
the sections below.

8.1 Important Assumptions

Financial forecasts of Bermuda Skate Zone will be based on these assumptions.
General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 15.00% 17.00% 19.00%
Long-term Interest Rate 5.00% 5.00% 5.00%
Tax Rate 14.00% 17.00% 20.00%
Other 0 0 0

8.2 Brake-even Analysis

Bermuda Skate Zone Brake-even Analysis is show in the graph below.

Brake-Even Analysis
Monthly Units Break-even 10000
Monthly Revenue Break-
$250,000
even
Assumptions:
Average Per-Unit Revenue $200.00
Average Per-Unit Variable
$2.00
Cost
Estimated Monthly Fixed
$400,000
Cost

8.3 Projected Profit and Loss

Profit and Loss information for Bermuda Skate Zone computed on an annual and
monthly basis is as shown below.
Pro Forma Profit And
Loss
Year 1 Year 2 Year 3
$400,00 $420,00
Sales $440,000
0 0
Direct Cost of Sales $40,000 $60,000 $80,000
Other $0 $0 $0
TOTAL COST OF SALES $40,000 $60,000 $80,000
$200,00 $250,00
Gross Margin $300,000
0 0
Gross Margin % 60.00% 65.00% 70.00%
Expenses
$300,00 $310,00
Payroll $330,000
0 0
Sales and Marketing and
$10,000 $14,000 $16,000
Other Expenses
Depreciation $4,000 $6,000 $8,000
Leased Equipment $0 $0 $0
Utilities $5,000 $8,000 $11,000
Insurance $2,400 $3,400 $4,400
Rent $12,000 $14,000 $16,000
Payroll Taxes $40,000 $42,000 $44,000
Other $0 $0 $0
$300,00 $320,00
Total Operating Expenses $350,000
0 0
Profit Before Interest and
$40,000 $45,000 $50,000
Taxes
EBITDA $20,000 $30,000 $50,000
Interest Expense $0 $0 $0
Taxes Incurred $18,000 $21,000 $24,000
$150,00 $170,00
Net Profit $190,000
0 0
Net Profit/Sales 50.00% 60.00% 70.00%

8.3.1 Monthly Profit

8.3.2 Yearly Profit

8.3.3 Monthly Gross Margin

8.3.4 Yearly Gross Margin

8.4 Projected Cash Flow
The diagram below summarizes projected cash flow.

Pro Forma Cash Flow

Cash Received Year 1 Year 2 Year 3
Cash from Operations
$150,00 $155,00
Cash Sales $160,000
0 0
Cash from Receivables $10,000 $15,000 $20,000
SUBTOTAL CASH FROM $160,00 $170,00
$180,000
OPERATIONS 0 0
Additional Cash Received
Sales Tax, VAT, HST/GST
$0 $0 $0
Received
New Current Borrowing $0 $0 $0
New Other Liabilities
$0 $0 $0
(interest-free)
New Long-term Liabilities $0 $0 $0
Sales of Other Current
$0 $0 $0
Assets
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH $160,00 $170,00
$180,000
RECEIVED 0 0
Expenditures Year 1 Year 2 Year 3
Expenditures from
Operations
Cash Spending $30,000 $32,000 $34,000
Bill Payments $10,000 $13,000 $16,000
SUBTOTAL SPENT ON
$30,000 $42,000 $50,000
OPERATIONS
Additional Cash Spent
Sales Tax, VAT, HST/GST
$0 $0 $0
Paid Out
Principal Repayment of
$0 $0 $0
Current Borrowing
Other Liabilities Principal
$0 $0 $0
Repayment
Long-term Liabilities
$0 $0 $0
Principal Repayment
Purchase Other Current
$0 $0 $0
Assets
Purchase Long-term Assets $0 $0 $0
 Dividends $0 $0 $0
$520,00
SUBTOTAL CASH SPENT $40,000 $60,000
0
Net Cash Flow $22,000 $25,000 $28,000
Cash Balance $33,000 $38,000 $43,000

8.5 Projected Balance Sheet

Illustrated below is the Projected Balance Sheet for Bermuda Skate Zone.
Pro Forma Balance Sheet
Assets Year 1 Year 2 Year 3
Current Assets
$200,00 $230,00
Cash $260,000
0 0
Accounts Receivable $6,000 $10,000 $14,000
Inventory $5,000 $7,500 $10,000
Other Current Assets $4,000 $4,000 $4,000
TOTAL CURRENT $215,00 $254,50
$288,000
ASSETS 0 0
Long-term Assets
Long-term Assets $12,000 $14,000 $16,000
Accumulated Depreciation $14,000 $17,000 $20,000
TOTAL LONG-TERM
$3,000 $2,000 $1,500
ASSETS
$234,00 $284,50
TOTAL ASSETS $365,500
0 0
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $25,000 $28,000 $31,000
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT
$25,000 $28,000 $31,000
LIABILITIES
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $25,000 $28,000 $31,000
Paid-in Capital $20,000 $20,000 $20,000
Retained Earnings $30,000 $45,000 $60,000
$130,00 $150,00
Earnings $170,000
0 0
$350,00 $380,00
TOTAL CAPITAL $410,000
0 0
TOTAL LIABILITIES $350,00 $380,00
$410,000
AND CAPITAL 0 0
$420,00 $450,00
Net Worth $480,000
0 0

8.6 Business Ratios

Bermuda Skate Zone Ration Analysis, Business New Worth and Business Ratios
are shown below.
Ratio Analysis
INDUSTRY
Year 1 Year 2 Year 3
PROFILE
Sales Growth 10.00% 23.00% 35.00% 5.00%
Percent of Total Assets
Accounts Receivable 5.00% 4.00% 3.00% 6.00%
Inventory 6.00% 4% 3.00% 8.00%
Other Current Assets 4.00% 3.00% 2.00% 20.00%
Total Current Assets 90.00% 95.00% 105.00% 40.10%
Long-term Assets -7.00% -14.00% -21.00% 30.00%
100.00 100.00
TOTAL ASSETS 100.00% 100.00%
% %
Current Liabilities 6.00% 5.00% 3.00% 20.00%
Long-term Liabilities 0.00% 0.00% 0.00% 18.00%
Total Liabilities 4.00% 2.00% 1.00% 38.00%
100.00
NET WORTH 80.00% 110.00% 30.00%
%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 80.00% 70.00% 60.00% 1.00%
Selling, General &
70.00% 77.00% 72.00% 60.00%
Administrative Expenses
Advertising Expenses 4.00% 3.00% 2.00% 3.00%
Profit Before Interest and
20.00% 24.00% 30.00% 2.50%
Taxes
Main Ratios
Current 12 15 20 2.3
Quick 20 23 30 2.5
Total Debt to Total Assets 4.00% 3.75% 2.10% 66.00%
Pre-tax Return on Net Worth 85.00% 95.00% 5.00% 5.00%
Pre-tax Return on Assets 54.00% 64.00% 76.00% 8.00%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 14.00% 17.00% 25.00% N.A.
Return on Equity 62.00% 65.00% 72.00% N.A.
Activity Ratios
Accounts Receivable
7 9 12 N.A.
Turnover
Collection Days 100 110 120 N.A.
Inventory Turnover 23 26 29 N.A.
Accounts Payable Turnover 15 18 21 N.A.
Payment Days 15 15 15 N.A.
Total Asset Turnover 3.5 3 2.5 N.A.
Debt Ratios
Debt to Net Worth 0 -0.14 -0.1 N.A.
Current Liab. to Liab. 0 0 0 N.A.
Liquidity Ratios
$160,00 $180,00
Net Working Capital $20,000 N.A.
0 0
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 1.4 2.48 3.32 N.A.
Current Debt/Total Assets 6% 4% 2% N.A.
Acid Test 30 33 36 N.A.
Sales/Net Worth 3.3 3 2.5 N.A.
Dividend Payout 0 0 0 N.A.