Following the American Psychological Association’s Guidelines
Reg No
Designation
Objectives 4
Mission 4
Keys to Success 4
2. Company Summary 5
2.1 Ownership 5
2.2 Legal Form 5
2.3 Start-Up Summary 5
2.4 Location and Facilities 6
2.5 Products and services 6
3. Market Analysis Summary 7
Market Segmentation 7
4. Strategy and Implementation Summary 9
Marketing Strategy 9
Pricing Strategy 9
Promotion Strategy 10
Sales Strategy 11
Sales Forecast 11
5. Management Summary 13
Organizational Structure 13
Personnel Plan 13
6. Financial Plan 14
Important Assumptions 14
Break-even Analysis 14
Projected Profit and Loss 15
Projected Cash Flow 16
Projected Balance Sheet 17
Business Ratios 18
References 19
1. Executive Summary
The purpose of this business plan is to develop a business plan for a sports bar start up.
Assuming a capital of $100,000 for starting the sports bar, the business plan is developed. The Joe’s Sports Bar, Inc. will be based at New York focusing on television sports and offering food and alcohol to customers in its targeted market.
Objectives
Mission
The mission of the company is to become the market leader in a span of five years offering value added services to the customers.
Keys to Success
The keys to success of the sports bar are to make the place a comfortable so that customers visit the bar on a regular basis and give a visual treat to the customers through large size televisions along with quality food and alcohol.
2. Company Summary
Joe’s Sports Bar will be a locally owned sports bar with a 1500 square feet facility based at New York, United States. The bar is planned to have an open space for the artists to perform and will have a huge television set like a film screen to live telecast the foot ball and the current sports events.
2.1 Ownership
Joe’s Sports Bar will be started as a sole proprietorship with the own funds of $100000 by Mr. Joe. In the future, Mr. Joe can enter in to partnership with experts in the related businesses..
2.2 Legal Form
The company will be registered as a sole proprietorship.
2.3 Start-Up Summary
The start up summary of the company and the utilization of the funds is as follows
Office infrastructure includes the carpentry work, television sets, flooring, painting, air conditioning, fire alarms, and smoke detectors, kitchen set up, interiors, chairs, furniture and other sports bar items.
The location of the sports bar is the most important aspect and a prime location at New York is finalized to be leased by Mr. Joe. The facilities are discussed above in the start up costs section. New York is a place of high net worth and working professionals in the age group of 25 to 40 forming the potential customers of the Joe’s Sports bar.
2.5 Products and services
The main products and services of Joe’s sports bar include alcohol sales and food services. The alcohol sales are done with proper licensing and the bar will maintain all aspects of a bar with alcohol content. The food services include steaks, fries, hamburgers etc.
3. Market Analysis Summary
Market Segmentation
The market for sports bars in United States is about $ 30 billion annually in sales revenue with an annual growth rate of 7.3% employing 335000 people with about 48000 establishments involved in the business according to a US economic census report, 2012. The main target market of the sports bar industry are people below the age of forty loving entertainment. The customers are mostly working professional and teenagers placing high importance on entertainment. The competitive analysis can be done based on the locality with companies in a 5 mile radius being the competitors for Joe’s sports bar. The major sources of revenue for a sports bar come from the sales of beer, distilled spirits, food, wine and non alcoholic beverages (First research, 2013). The distilled spirits council report, 2012 indicates that the annual market for distilled spirits in United States is around $100 billion. The split up of the sales revenue in a sports bar is as follows
The main target market for the sports bar includes the middle class people comprising of white collar workers visiting the bar on a regular basis. Wine is the most favorite drink of this market segment after work with a little appetizer before going home. The other market segments include the workers and the tourists to have lunch and dinner with a drink. People seeking for late night parties with music usually teenagers seeking entertainment in late night are another target market of the sports bars. Mostly these teenagers visit the sports bar in the week ends along with their friends for treat and parties.
The Joe’s sports bar will target the above market within the age group of 20 and 40 including both genders living within a 5 mile radius of the bar location.
4. Strategy and Implementation Summary
Marketing Strategy
The main marketing strategy of Joe’s sports bar company is to make it visible among the potential customers and the target market discussed above. The various marketing strategies that can be adopted include is to have a strong supplier relationship with alcohol manufacturers, advertise locally about the company using mass media like TV, Newspaper , online campaigns etc. The strategies are elaborated with the marketing mix as follows
Pricing Strategy
In the initial stages of operation, the company can give price discounts on high margin alcoholic drinks. The pricing must be similar to the competitors but the value additions can be increased. The prices of the alcohols and the food services must be fixed after analyzing the competitor prices. Mostly a follower strategy will be adopted imitating the pricing of the industry leader in sports bar. Joe can visit the leader in sports bar in New York during a week day and also during the weekend to have a grasp of the customer traffic, customer service and obtain a price menu of the drinks and food and other product and services. This will give an idea about the pricing of the product and services for the Joe’s sports bar. As a result of research, the alcohol prices differ according to the brand and quality. The prices of the food items are priced at $12 for appetizers, $10 for burgers and $17 for gourmets (IbisWorld Bars, 2013). Imitation of prices and a competition based pricing strategy can be adopted in the early stages and even price discounts can be given to attract new customers. The initial start up costs listed previously in table 2.1 will be the expenses incurred initially for Joe’s sports bar. According to these expenses, the pricing strategy has to be framed to achieve break even as soon as possible.
Promotion Strategy
A grand opening must be made to the sports bar. The opening period must be aligned with a national or international sports event that lasts for a month. As a means of promotion, Joe’s sports bar must introduce the Happy hours concept attracting the target market or the potential customers to the sports bar on certain hours where discounts on drinks and various other free giveaways like sportswear and apparels can be given for a month. This will contribute to word of mouth marketing resulting in the increase of the customers. Mass media advertising also must be done as a means of promotion. The sports bar design must change according to the sports event that is occurring during the season. This will make the bar attractive with colorful graphics and flyers. As a means of promotion, it is always good to invite a popular sports person to the sports bar. Advertising the products and services of the Joe’s sports bar in the sports goods shop can also be done as a means of promotion. Website can also be used as a means of promoting the Joe’s sports bar by conducting online campaigns using the social media.
Reception remains the first point of sales strategy. The customers must be greeted with pleasure and warmth on entering the sports bar. The main sales strategy is to make the bar a convenient and comfortable place for the customers. Based on the location chosen by the customer, menu will be offered to them to place their food and drink order. Mostly employees will be focusing on selling the high margin items to the customer.
Sales Forecast
Assume that about 100 people visit the bar weekly. This makes around 400 customers monthly and around 4800 customers on a yearly basis initially. The customers gradually increase on an yearly basis. Assuming on an average, the Joe’s Sports bar company charges around $100 per client on an average in the first year, then $150 average in the second year and charges $200 in the third year for the products and services on an average for each client visiting the sports bar, the following sales projections are made. The number of customers indicated below includes the repeating customers also.
The above sales forecast implies that the Joe’s Sports bar will achieve break even in about one and a half years. The sales revenue and profits are going to peak rapidly indicating a high profit making potential for the company.
5. Management Summary
Organizational Structure
Personnel Plan
6. Financial Plan
Important Assumptions
Initial start up cost
Break-even Analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet
Business Ratios
References
- Felicia Greene. (2012). Marketing Programs - How to Start Up a Sports Bar. Demand Media publication
- First research. (2013). Major sources of revenue in a sports bar. March issue
- IbisWorld Bars, (2013). Nightclubs & Drinking Establishments in the US - Industry Code: 59
- The distilled spirits council report. (2012). Bar Industry Analysis.
- US economic census report. (2012)
