Business Plan
- Introduction
A prime land for development is located on Manse Road in Kinross, Milnathort in Scotland in the United Kingdom. This land is approximately 12.90. Prime land in this location is hard to find. This is because the locality is serene and away from the hustle and bustle of the metropolis, hence an attraction for wealthy people. As such, the property rates are always high. Nonetheless, the availability of this land for development presents a very good opportunity for commercial ventures. This business plan details the visualization of the business idea to be executed on this prime piece of land. The business plan will detail the type of business, business objectives, unique selling point, customer profiling, competitor profiling, marketing mix and financial plan for the business. The business plan will also offer recommendations based on the information presented.
- Type of Business
The type of business that will be established on this piece of land is a golf training center. The business will go by the name Brumbies Golf Training Center. The golf training center will feature a full-service sports complex offering training facilities for prospective golfers in the locality. The facility will also feature as host grounds for golf tournaments. The business will provide unrivaled sporting facilities for the local community that over and above the value to the customers, will offer enjoyment for the members of the facility in addition to the employees (Beranek & California State Polytechnic University, Pomona. 2003).
- Business Goals
- Unique Selling Point
Golf is a very famous sport, especially for affluent people. There is a growing concern for personal fitness as evidenced by changes in lifestyle and increasing gym subscriptions and diversification of medical insurance providers to target people who want fitness products. This business facility will provide fitness and golf training facilities in the locality in the same premise. This will be done by professionals in order to give the customers the best service. Additionally, the facility will offer golf training for prospective golfers from professional trainers.
- Customer Profiling
The people living in this locality range from the age of twenty five to sixty. The population density is low, and most of the people privately own the houses in which they reside. Most of the residents are reaching the pinnacle of their careers. There is a combination of affluence and pastoral locations. As such, most of the households own at least two cars. Couples are seen taking evening walks as part of their exercise. The population of this area are avid readers of newspapers, with most of them opting for the quality press. Internet penetration in the area is low. The residents purchase value brands like rare cigars and exotic spirits. They are unresponsive to mail order promotions. From a financial perspective, this demographic has low credit risk, more likely to have personal loans, posses a variety of life insurance policies, have credit cards ranging from normal, gold to platinum and a higher propensity for Mastercards.
- Competitor Profiling
This part of Scotland does not have many golf clubs. More precisely, the only similar facility in the area is Milnathort Golf Club. This will be a fervent competitor. The golf club was established in 1910, and as such has a lot of business experience. The facilities provided in this golf club include a golf course, hole by hole guide and course card. Nonetheless, the golf club gives offers to its members, club news, nine open tournaments all year round, and sponsorships. The facility also features a clubhouse that attracts customers who might want to enjoy their leisure time away from the golf course. With the one hundred and four years of experience, the golf course has forged partnerships with many other institutions, and as such is well connected in the community. Its corporate social responsibility endeavors are well felt in the community.
- Marketing Mix
The marketing mix for the Brumbies Golf Training Center will feature the 4Ps of marketing.
- Product
The facility will feature golf gloves made using the micro-replication technology. These gloves will feature gripping fingers so that the user can maintain gripping consistency with minimum effort. The gloves will be suitable for any conditions, dry or wet. Other golfing equipment will be sold at the shop at the facility. The fitness facility will be equipped with the most technologically advanced fitness equipment in the market (Mullin, Hardy & Sutton, 2007).
- Price
The pricing strategy of the golf training center will ensure that the costs of the facility are met in addition to creating value for the customers (Greenwell, Danzey-Bussell & Shonk, 2014). The facility will stock products of premium quality, and are expected to fetch premium prices. The facility will offer discounted prices for its members through membership cards. The annual membership feet at the facility will be 1000 dollars. However, the members will enjoy a 30% discounted fee in the use of the course and prices in the Pro Shop discounted by 20%. The daily use fees will be priced at 50 dollars for nonmembers and 34 dollars for members who play nine holes, for eighteen holes, members will pay 67 dollars while nonmembers will pay 90 dollars.
- Promotion
- Place
The promotion will be done in quality press, as this is the kind that endears to the demographic of the area.
- Financial Plan
The following is the financial plan of the business:
- Break Even Analysis
The break even analysis considers monthly costs, which include utilities and payroll among other estimate running costs (DeThomas & Derammelaere, 2008).
This break even analysis does not reflect the revenue from the proceeds shop, fitness center and equipment rental.
- Projected profitability
The following is the projected profitability for the business.
- Annual profit projections
The following is the annual profit projections for the first three years:
- Conclusion & Recommendations
The conception of this business idea was in response to a need in the market and the availability of land for development. This business plan features the type business to be executed on the available land. The business plan also features the unique selling point for the business. This is the fact that over an above the sporting experience, the facility also offers training and fitness facilities. Through the customer profiling segment, the business plan has highlighted the prospective customers are affluent and go for brand value.
The business environment is enabling because even there is only one competitor, even thought the competitor has over a century in business. The business plan also highlighted the marketing mix to be used to raise awareness. Finally, the business plan presented a financial plan showing the break even analysis, projected profitability and annual profits. Considering this information, there is a potential market for the business idea. Therefore, it is recommended that the idea is executed. However, there is need to exercise caution, especially during the pre-operation period so as not to incur a huge debt.
- References
Beranek, R., & California State Polytechnic University, Pomona. (2003). A business plan to launch an entrepreneurial golf club cleaning venture targeted at the Los Angeles County golfing community. Pomona [Calif.: California State Polytechnic University, Pomona.
DeThomas, A., & Derammelaere, S. A. (2008). Writing a convincing business plan. Hauppauge, N.Y: Barron's Educational Series.
Duncan, K. (2014). Milnathort Golf Club. Available at> http://www.milnathortgolfclub .co.uk/history.html
Greenwell, T. C., Danzey-Bussell, L. A., & Shonk, D. J. (2014). Managing sport events. Champaign, IL: Human Kinetics.
Mullin, B. J., Hardy, S., & Sutton, W. A. (2007). Sport marketing. Champaign, IL: Human Kinetics.
