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Cover Page

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Legal Page
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Table of Contents

1.0 Executive Summary...............................................................................................................................1

1.1 Objectives..........................................................................................................................................1
1.2 Mission...............................................................................................................................................1
Chart: Highlights..................................................................................................................................2
2.0 Company Summary...............................................................................................................................2
2.1 Start-up Summary..............................................................................................................................3
Chart: Start-up......................................................................................................................................3
Table: Start-up.....................................................................................................................................3
Table: Start-up Funding.......................................................................................................................4
2.2 Company Ownership.........................................................................................................................4
3.0 Products and Services............................................................................................................................4
4.0 Market Analysis Summary....................................................................................................................5
4.1 Market Segmentation.........................................................................................................................5
Table: Market Analysis........................................................................................................................5
Chart: Market Analysis (Pie)...............................................................................................................6
5.0 Strategy and Implementation Summary.................................................................................................6
5.1 Marketing Strategy.............................................................................................................................6
5.2 Competitive Edge...............................................................................................................................7
5.3 Sales Strategy.....................................................................................................................................7
5.3.1 Sales Forecast..............................................................................................................................8
Table: Sales Forecast.......................................................................................................................8
Chart: Sales Monthly.......................................................................................................................9
Chart: Sales by Year........................................................................................................................9
6.0 Management Summary........................................................................................................................10
6.1 Personnel Plan..................................................................................................................................10
Table: Personnel.................................................................................................................................10
7.0 Financial Plan.......................................................................................................................................10
7.1 Break-even Analysis........................................................................................................................11
Table: Break-even Analysis...............................................................................................................11
Chart: Break-even Analysis...............................................................................................................11
7.2 Projected Profit and Loss.................................................................................................................12
Chart: Profit Monthly.........................................................................................................................12
Chart: Profit Yearly............................................................................................................................12
Chart: Gross Margin Monthly............................................................................................................13
Chart: Gross Margin Yearly...............................................................................................................13
Table: Profit and Loss........................................................................................................................14
................................................................................................................................................................14
7.3 Projected Cash Flow........................................................................................................................15
Table: Cash Flow...............................................................................................................................15
Chart: Cash.........................................................................................................................................16
7.4 Projected Balance Sheet...................................................................................................................17
Table: Balance Sheet..........................................................................................................................17
Page 1

Table of Contents

7.5 Business Ratios................................................................................................................................17

Table: Ratios......................................................................................................................................18
Table: Sales Forecast...................................................................................................................................1
......................................................................................................................................................................1
Table: Personnel...........................................................................................................................................2
......................................................................................................................................................................2
Table: General Assumptions........................................................................................................................3
......................................................................................................................................................................3
Table: Profit and Loss..................................................................................................................................4
......................................................................................................................................................................4
Table: Cash Flow.........................................................................................................................................5
Table: Balance Sheet....................................................................................................................................6

Page 2

Willow Park Golf Course

1.0 Executive Summary

The Willow Park Golf Course is located a half mile from Willow Lake Village, a new vacation
retirement complex. Located in the expanding Crest Canyon area, this 18-hole facility offers a
challenging layout and beautiful views. The property includes a Pro Shop, driving range, cart
barn, maintenance buildings, and a pavilion that seats up to 50. The free shuttle service that
serves all the area's retirement complexes makes the course extremely accessible. Willow Park
Golf Course also will have an on-site snack bar.
Each year, over 200,000 retirees visit the Crest Canyon area. On average, these visitors spend
over $250 million, annually, for lodging, food, and recreational activities at Crest Canyon area.
Marty Snyderman, Palmer St. Andrews and Luke Roth, co-owners of the Willow Park Golf
Course, have signed a 10 year lease with Claremont Properties for $250,000 annually.
1.1 Objectives
The objectives of the Willow Park Golf Course for the first three years of operation include:

Revitalize the old course and attract a loyal local clientele.

Use strategic alliances and players' word-of-mouth recommendations to make Willow Park a
destination course for vacationers, and avid players who are willing to travel to golf.
Exceeding customer's expectations.
Assembling an experienced and effective staff.

1.2 Mission
The mission of Willow Park Golf Course is to become a popular course with visitors to, and
residents of, the Crest Canyon area.

Page 1

Willow Park Golf Course

Chart: Highlights

Highlights
$2,000,000
$1,800,000
$1,600,000
$1,400,000

Sales

$1,200,000

Gross Margin

$1,000,000

Net Profit

$800,000
$600,000
$400,000
$200,000
$0
Year 1

Year 2

Year 3

2.0 Company Summary

The Willow Park Golf Course is located in the expanding Crest Canyon area. This 18-hole facility
offers a challenging layout and beautiful views. The property includes a Pro Shop, driving
range, cart barn, maintenance buildings, and a pavilion that seats up to 50. Willow Park Golf
Course also will have an on-site snack bar.
The facility was the Crescent Hills Golf Course for ten years before closing in 1999. Most of
Crescent Hills Golf Course assets were sold in 1999. The property was bought by Claremont
Properties in 2000 for $2,000,000. Since the purchase, Claremont Properties has been seeking
a leasing arrangement that would reopen the facility. In the interim, the new owners have
completed repairs on the Pro Shop, snack bar, cart barn, maintenance shed, and driving range.
Claremont Properties owns 4,000 condo units in the Crest Canyon area. The company also
owns Willow Park Condominiums which borders Willow Park Golf Course. The Willow Park Golf
Course will form a strategic alliance with Claremont Properties in promoting and advertising the
new golf course.
Willow Park Golf Course will require extensive landscape work. This work will be performed
during the three month period (October-December) before the course opens in January. In
addition, the following new equipment will be purchased:

Driving Range Equipment

Greens and Landscape Maintenance Equipment
Food Service Equipment for the Snack Bar

Thirty-six golf carts will also be leased to assure that there is sufficient transportation for all
members and guests. Willow Park Golf Course will have a staff of four to maintain the golf cart
pool.

Page 2

Willow Park Golf Course

2.1 Start-up Summary

Marty Snyderman, Palmer St. Andrews and Luke Roth will each invest in the venture. They will
also secure a long-term loan.
Chart: Start-up

Start-up

$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Expenses

Assets

Investment

Loans

Table: Start-up

Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Pro Shop Setup
Landscape Development and Repair
Food Service Equipment
Insurance
Driving Range Equipment
Lease Golf Carts
Greens/Landscape Equipment
Other
Total Start-up Expenses

$5,000
$400
$6,000
$50,000
$280,000
$20,000
$4,000
$80,000
$10,000
$170,000
$0
$625,400

Start-up Assets
Cash Required
Start-up Inventory
Other Current Assets
Long-term Assets
Total Assets

$34,600
$30,000
$0
$210,000
$274,600

Total Requirements

$900,000

Page 3

Willow Park Golf Course

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

$625,400
$274,600
$900,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

$240,000
$34,600
$0
$34,600
$274,600

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

$0
$300,000
$0
$0
$300,000

Capital
Planned Investment
Marty Snyderman
Luke Roth
Palmer St. Andrews
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital

$200,000
$200,000
$200,000
$0
$600,000
($625,400)
($25,400)

Total Capital and Liabilities

$274,600

Total Funding

$900,000

2.2 Company Ownership

Marty Snyderman, Luke Roth, and Palmer St. Andrews are co-owners of the Willow Park Golf
Course.
3.0 Products and Services
The Willow Park Golf Course will offer the following services:

18-hole golf course

Pro Shop
Driving range
Snack bar

Page 4

Willow Park Golf Course

4.0 Market Analysis Summary

Retirement hotel development and operation in the Crest Canyon area has been very profitable
and successful due to the economic upturn experienced in the mid-1990s. Retirement living and
vacation development are currently going strong. In the past two years, the sales of condos in
the Crest Canyon area have increased by over 35 percent. There are twenty condominium
developments, retirement complexes, and hotels within a five mile radius of Willow Park Golf
Course. The area's room occupancy is 90% year round. New construction is planned during
spring of 2002 for two retirement condo complexes and a hotel.
4.1 Market Segmentation
Our customers can be broadly divided into two groups:

Retirement Residents. The Crest Canyon area is quickly becoming one of the
best retirement locations in the US. The population is growing at a rate of 15% annually.
Currently the Crest Canyon area has a population of 80,000 year-round residents
Retirement Visitors. The Crest Canyon area welcomes 200,000 visitors annually, who
enjoy the sun and recreational activities throughout the year.

Table: Market Analysis

Market Analysis
Potential Customers
Residents
Visitors
Total

Year 1

Year 2

Year 3

Year 4

Year 5

80,000
200,000
280,000

92,000
230,000
322,000

105,800
264,500
370,300

121,670
304,175
425,845

139,921
349,801
489,722

Growth
15%
15%
15.00%

CAGR
15.00%
15.00%
15.00%

Page 5

Willow Park Golf Course

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Residents
Visitors

5.0 Strategy and Implementation Summary

Willow Park Golf Course will aggressively market to both retired residents and vacationers to
the Crest Canyon area.

Residents. The course will initiate a membership drive. Membership fees will reflect a 30%
discount for course use and a 20% discount on purchases in the Pro Shop.
Visitors. The Willow Park Golf Course will offer 3, 7, 10, and 14-day membership packages
as well as a single day membership fee. The 3 and 7-day packages will represent a 10%
savings over the single day rate. The 10 and 14-day packages will represent a 15% discount
over the single day rate.

Claremont Properties will market Willow Park Golf Course to the residents and visitors in their
condo units.
5.1 Marketing Strategy
Claremont Properties will take an active role in marketing Willow Park Golf Course in its 4,000+
condo units. Claremont Properties will offer its residents a 20% discount on membership fees.
Vacation visitors staying in Claremont Properties' units will be offered a 15% discount on the
day use fee.
Claremont Properties is including Willow Park Golf Course in its marketing material. Its annual
nationwide advertising budget is $300,000.
Willow Park also has a strategic alliance with Crest Lake Golf Course, also owned by Marty
Snyderman. Palmer St. Andrews has been the Head Teaching Pro and Pro Shop manager there.
Crest Lake will provide the purchasing channel for the Pro Shop inventory during the first year

Page 6

Willow Park Golf Course

while Willow Park establishes lines-of-credit with suppliers and distributors. In addition, Crest
Lake will enter and recommend players to Willow Park.
5.2 Competitive Edge
The competitive edge of Willow Park Golf Course is the service, first and foremost. Marty
Snyderman and Luke Roth, co-owners of the Willow Park Golf Course, have over twenty years
experience in managing golf facilities.
Marty is the manager-owner of the Crest Lake Golf Course. He has owned the course for ten
years.
Most recently, Luke was the manager of the Village Green Golf Course. He held that position for
the last five years. Before this position, Luke was the manager of the The Ridge, a 160-unit golf
retirement condo complex in the nearby community of Henderson.
Palmer St. Andrews is a former PGA tour pro. He has been the Pro Shop manager and Head
Teaching Pro for Marty's Crest Lake Golf Course for the last 5 years. He brings a respected PGA
reputation, experience in course play, instruction, and retail management, as well as an
established student clientele base.
Another competitive advantage for Willow Park Golf Course is the free shuttle service that
serves all the area's retirement complexes. The shuttle makes the course extremely accessible
to local residents.
Another critical advantage is the course's relationship with Claremont Properties that owns over
4,000 condo units in Crest Canyon area. Claremont Properties will aggressively promote Willow
Park Golf Course with residents and vacation visitors.
5.3 Sales Strategy
The Willow Park Golf Course sales strategy is to aggressively gain market share of residents
and vacationers.
Willow Park Golf Course will use the following pricing strategy:

Membership Fees: Annual membership fee is $500. Members will have a 30% discount on
course use and a 20% diwcount on purchases in the Pro Shop.
Day Use Fee: 9 holes is $50 (members $34). 18 holes is $90 (members $67).

Willow Park Golf Course will offer the following Day USe Packages:

9 Holes: 3 days-$125, 7 days-$135, 10 days-$425, and 14 days-$595

18 Holes: 3 days-$243, 7 days-$567, 10 days-$765, 14 days-$1071.

Page 7

Willow Park Golf Course

5.3.1 Sales Forecast

The following is the sales forecast for three years. We anticipate a fast start course play sales
since we have a large local resident population who we believe will flock to the newly reopened
course.
As the golf and vacation season progress we see the usual spate of new equipment and clothing
sales, and the monthly increase in memberships and course play sales as more folks take their
vacations and travel to the Crest Canyon area. We are fortunate to be situated in a warm
temperate climatic and geographic area, and so the course is open all year for play, unlike
many other courses that are covered with snow three to six months of the year. We anticipate
increased winter month sales in subsequent years, as 'snowbirds' learn of Willow Park, and
leave the cold behind to come play our course.
The Pro Shop should have increased sales in November and December as family and friends
buy holiday gifts for their favorite golfer.
Table: Sales Forecast

Sales Forecast
Year 1

Year 2

Year 3

Memberships/Use Fees
Day Use Fees (for 1 or more days)
Golf Lessons
Snacks
Pro Shop
Driving Range
Total Sales

$445,000
$325,000
$234,000
$256,000
$80,500
$103,000
$1,443,500

$500,000
$370,000
$260,000
$275,000
$100,000
$115,000
$1,620,000

$580,000
$450,000
$330,000
$320,000
$120,000
$130,000
$1,930,000

Direct Cost of Sales

Memberships/Use Fees
Day Use Fees (for 1 or more days)
Golf Lessons
Snacks
Pro Shop
Driving Range
Subtotal Direct Cost of Sales

Year 1
$0
$0
$117,000
$64,000
$32,300
$21,000
$234,300

Year 2
$0
$0
$133,000
$75,000
$40,000
$23,000
$271,000

Year 3
$0
$0
$150,000
$90,000
$58,000
$25,000
$323,000

Sales

Page 8

Willow Park Golf Course

Chart: Sales Monthly

Sales Monthly
$160,000
$140,000

Memberships/Use Fees

$120,000

Day Use Fees (for 1 or more days)

$100,000

Golf Lessons
$80,000

Snacks

$60,000

Pro Shop

$40,000

Driving Range

$20,000
$0
Month 2

Month 6
Month 4

Month 8

Month 10
Month 12

Chart: Sales by Year

Sales by Year
$2,000,000
$1,800,000

Memberships/Use Fees

$1,600,000
$1,400,000

Day Use Fees (for 1 or more days)

$1,200,000

Golf Lessons

$1,000,000

Snacks

$800,000

Pro Shop

$600,000

Driving Range

$400,000
$200,000
$0
Year 1

Year 2

Year 3

Page 9

Willow Park Golf Course

6.0 Management Summary

Luke Roth will be the manager of daily operations of the Willow Park Golf Course. Palmer St.
Andrews will be the manager of the Pro Shop, as well as the Head Teaching Pro and supervisor
of the teaching staff. We are currently in the process of recruiting an experienced Greens and
Landscape Superintendent.
6.1 Personnel Plan
Because Willow Park Golf Course is open all year we will be recruiting and training full time
employees. We want loyal dedicated folks, so unlike other snowbound courses, we will not rely
on seasonal employees. The minimum personnel needed for the Willow Park Golf Course's first
year will be:

Manager
Assistant Manager
Head Teaching Pro/Pro Shop Manager
Greens and Landscape Superintendent
7 Course Staff
3 Snack Shop Staff
3 Pro Shop Staff
3 Greens Maintenance Staff
4 Golf Cart Maintenance Staff

Table: Personnel

Personnel Plan
Year 1

Year 2

Year 3

Manager
Assistant Manager
Pro Shop Manager/Head Teaching Pro
Greeens/Landscape Superintendent
Course Staff
Snack Shop Staff
Pro Shop Staff
Greens Maintenance Staff
Golf Cart Maintenance Staff
Other
Total People

$54,000
$42,000
$60,000
$48,000
$156,000
$54,000
$54,000
$48,000
$72,000
$0
24

$59,000
$47,000
$70,000
$53,000
$163,000
$57,000
$58,000
$52,000
$76,000
$0
24

$64,000
$52,000
$80,000
$58,000
$168,000
$61,000
$62,000
$56,000
$79,000
$0
24

Total Payroll

$588,000

$635,000

$680,000

7.0 Financial Plan

The following is the financial plan for the Willow Park Golf Course. We anticipate a first year of
fluctuating sales and expenses as we become established physically, and in the minds of our
target market. The first year we will have one time expenses in restoring the course and
establishing our maintenance routines. As our existence and reputation become known we
steady growth, and a more even membership sales as golfers from cold snowy climes travel to
the Crest Canyon area, and Willow Park particularly to play golf during the winter months.

Page 10

Willow Park Golf Course

7.1 Break-even Analysis

Using averaged monthly total expenses and an estimated variable cost, the monthly breakeven point in sales revenue is calculated and shown below.
Table: Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even

$113,085

Assumptions:
Average Percent Variable Cost
Estimated Monthly Fixed Cost

16%
$94,730

Chart: Break-even Analysis

Break-even Analysis
$100,000
$80,000
$60,000
$40,000
$20,000
$0
($20,000)
($40,000)
($60,000)
($80,000)
$0

$40,000
$80,000
$120,000
$160,000
$200,000
$20,000
$60,000
$100,000
$140,000
$180,000
$220,000

Page 11

Willow Park Golf Course

7.2 Projected Profit and Loss

The following table and charts show the projected profit and loss for three years. Monthly
figures for the first year are shown in the appendix.
Chart: Profit Monthly

Profit Monthly
$30,000

$20,000

$10,000

$0

($10,000)

($20,000)
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10
Month 12

Chart: Profit Yearly

Profit Yearly

$210,000
$180,000
$150,000
$120,000
$90,000
$60,000
$30,000
$0
Year 1

Year 2

Year 3

Page 12

Willow Park Golf Course

Chart: Gross Margin Monthly

Gross Margin Monthly

$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Month 1
Month 3
Month 5
Month 7
Month 9
Month 11
Month 2
Month 4
Month 6
Month 8
Month 10
Month 12

Chart: Gross Margin Yearly

Gross Margin Yearly

$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
Year 1

Year 2

Year 3

Page 13

Willow Park Golf Course

Table: Profit and Loss

Pro Forma Profit and Loss

Year 1

Year 2

Year 3

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales

$1,443,500
$234,300
$0
$234,300

$1,620,000
$271,000
$0
$271,000

$1,930,000
$323,000
$0
$323,000

Gross Margin
Gross Margin %

$1,209,200
83.77%

$1,349,000
83.27%

$1,607,000
83.26%

$588,000
$60,000
$28,560
$72,000
$26,000
$24,000
$250,000
$88,200
$0

$635,000
$80,000
$28,560
$80,000
$26,000
$24,000
$250,000
$95,250
$0

$680,000
$100,000
$28,560
$80,000
$26,000
$24,000
$250,000
$102,000
$0

$1,136,760

$1,218,810

$1,290,560

$72,440
$101,000
$28,066
$13,312

$130,190
$158,750
$24,643
$31,664

$316,440
$345,000
$21,072
$88,610

$31,062
2.15%

$73,883
4.56%

$206,758
10.71%

Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Lease
Payroll Taxes
Other
Total Operating Expenses
Profit Before Interest and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

Page 14

Willow Park Golf Course

7.3 Projected Cash Flow

The following table and chart show the projected cash flow for three years. Monthly figures for
the first year are shown in the appendix.
Table: Cash Flow

Pro Forma Cash Flow

Year 1

Year 2

Year 3

$1,443,500
$1,443,500

$1,620,000
$1,620,000

$1,930,000
$1,930,000

$0
$0
$0
$0
$0
$0
$0
$1,443,500

$0
$0
$0
$0
$0
$0
$0
$1,620,000

$0
$0
$0
$0
$0
$0
$0
$1,930,000

Year 1

Year 2

Year 3

$588,000
$732,096
$1,320,096

$635,000
$872,089
$1,507,089

$680,000
$1,011,173
$1,691,173

$0
$0
$0
$35,712
$0
$0
$0
$1,355,808

$0
$0
$0
$35,712
$0
$0
$0
$1,542,801

$0
$0
$0
$35,712
$0
$0
$0
$1,726,885

$87,692
$122,292

$77,199
$199,492

$203,115
$402,606

Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets
New Investment Received
Subtotal Cash Received
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Net Cash Flow
Cash Balance

Page 15

Willow Park Golf Course

Chart: Cash

Cash
$180,000
$150,000
$120,000
$90,000

Net Cash Flow

$60,000

Cash Balance

$30,000
$0

Month 12

Month 11

Month 10

Month 9

Month 8

Month 7

Month 6

Month 5

Month 4

Month 3

Month 2

Month 1

($30,000)

Page 16

Willow Park Golf Course

7.4 Projected Balance Sheet

The following table presents the projected balance sheet for three years. Monthly figures for the
first year are shown in the appendix.
Table: Balance Sheet

Pro Forma Balance Sheet

Year 1

Year 2

Year 3

$122,292
$15,125
$0
$137,417

$199,492
$29,467
$0
$228,959

$402,606
$36,191
$0
$438,798

$210,000
$28,560
$181,440
$318,857

$210,000
$57,120
$152,880
$381,839

$210,000
$85,680
$124,320
$563,118

Year 1

Year 2

Year 3

$48,907
$0
$0
$48,907

$73,718
$0
$0
$73,718

$83,951
$0
$0
$83,951

$264,288
$313,195

$228,576
$302,294

$192,864
$276,815

$600,000
($625,400)
$31,062
$5,662
$318,857

$600,000
($594,338)
$73,883
$79,545
$381,839

$600,000
($520,455)
$206,758
$286,302
$563,118

$5,662

$79,545

$286,302

Assets
Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital
Net Worth

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 7997, Membership Sports and Recreation, are
shown for comparison.

Page 17

Willow Park Golf Course

Table: Ratios

Ratio Analysis
Year 1

Year 2

Year 3

Industry Profile

n.a.

12.23%

19.14%

15.20%

Inventory
Other Current Assets
Total Current Assets
Long-term Assets
Total Assets

4.74%
0.00%
43.10%
56.90%
100.00%

7.72%
0.00%
59.96%
40.04%
100.00%

6.43%
0.00%
77.92%
22.08%
100.00%

4.00%
31.80%
40.90%
59.10%
100.00%

Current Liabilities
Long-term Liabilities
Total Liabilities
Net Worth

15.34%
82.89%
98.22%
1.78%

19.31%
59.86%
79.17%
20.83%

14.91%
34.25%
49.16%
50.84%

31.60%
28.00%
59.60%
40.40%

100.00%
83.77%
81.62%
4.16%
5.02%

100.00%
83.27%
78.71%
4.94%
8.04%

100.00%
83.26%
72.55%
5.18%
16.40%

100.00%
0.00%
72.30%
2.70%
2.60%

2.81
2.50
98.22%
783.71%
13.92%

3.11
2.71
79.17%
132.69%
27.64%

5.23
4.80
49.16%
103.17%
52.45%

1.23
0.83
59.60%
2.80%
6.90%

Sales Growth
Percent of Total Assets

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes
Main Ratios
Current
Quick
Total Debt to Total Assets
Pre-tax Return on Net Worth
Pre-tax Return on Assets
Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

Return on Equity

2.15%
548.60%

4.56%
92.88%

10.71%
72.22%

n.a
n.a

10.64
15.97
27
4.53

12.15
12.17
25
4.24

9.84
12.17
28
3.43

n.a
n.a
n.a
n.a

55.31
0.16

3.80
0.24

0.97
0.30

n.a
n.a

$88,510
2.58

$155,241
5.28

$354,846
15.02

n.a
n.a

0.22
15%
2.50
254.94
0.00

0.24
19%
2.71
20.37
0.00

0.29
15%
4.80
6.74
0.00

n.a
n.a
n.a
n.a
n.a

Activity Ratios
Inventory Turnover
Accounts Payable Turnover
Payment Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liab. to Liab.
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Current Debt/Total Assets
Acid Test
Sales/Net Worth
Dividend Payout

Page 18

Appendix
Table: Sales Forecast

Sales Forecast
Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Sales
Memberships/Use Fees
Day Use Fees (for 1 or more
days)
Golf Lessons
Snacks
Pro Shop
Driving Range
Total Sales
Direct Cost of Sales

0%
0%

$20,000
$20,000

$30,000
$20,000

$40,000
$20,000

$40,000
$30,000

$40,000
$30,000

$45,000
$35,000

$45,000
$35,000

$50,000
$40,000

$45,000
$35,000

$40,000
$30,000

$25,000
$15,000

$25,000
$15,000

0%
0%
0%
0%

$8,000
$16,000
$4,000
$5,000
$73,000

$16,000
$24,000
$10,000
$6,000
$106,000

$20,000
$24,000
$8,000
$7,000
$119,000

$20,000
$24,000
$7,000
$8,000
$129,000

$25,000
$24,000
$7,000
$9,000
$135,000

$25,000
$24,000
$4,000
$11,000
$144,000

$25,000
$24,000
$5,000
$11,000
$145,000

$25,000
$24,000
$6,000
$12,000
$157,000

$25,000
$24,000
$5,000
$11,000
$145,000

$25,000
$24,000
$4,500
$9,000
$132,500

$10,000
$12,000
$8,000
$8,000
$78,000

$10,000
$12,000
$12,000
$6,000
$80,000

Month 11

Month 12

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Memberships/Use Fees

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Day Use Fees (for 1 or more

days)
Golf Lessons

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$4,000

$8,000

$10,000

$10,000

$12,500

$12,500

$12,500

$12,500

$12,500

$12,500

$5,000

$5,000

Snacks

$4,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$3,000

$3,000

Pro Shop

$1,400

$4,000

$3,600

$3,000

$3,000

$1,500

$2,300

$2,700

$2,300

$1,500

$3,000

$4,000

Driving Range

$1,750

$1,750

$1,750

$1,750

$1,750

$1,750

$1,750

$1,750

$1,750

$1,750

$1,750

$1,750

$11,150

$19,750

$21,350

$20,750

$23,250

$21,750

$22,550

$22,950

$22,550

$21,750

$12,750

$13,750

Subtotal Direct Cost of Sales

Page 1

Appendix
Table: Personnel

Personnel Plan

Manager
Assistant Manager
Pro Shop Manager/Head Teaching
Pro
Greeens/Landscape Superintendent
Course Staff
Snack Shop Staff
Pro Shop Staff
Greens Maintenance Staff
Golf Cart Maintenance Staff
Other
Total People
Total Payroll

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month
10
$4,500
$3,500
$5,000

Month
11
$4,500
$3,500
$5,000

Month
12
$4,500
$3,500
$5,000

0%
0%
0%

$4,500
$3,500
$5,000

$4,500
$3,500
$5,000

$4,500
$3,500
$5,000

$4,500
$3,500
$5,000

$4,500
$3,500
$5,000

$4,500
$3,500
$5,000

$4,500
$3,500
$5,000

$4,500
$3,500
$5,000

$4,500
$3,500
$5,000

0%
0%
0%
0%
0%
0%
0%

$4,000
$13,000
$4,500
$4,500
$4,000
$6,000
$0
24

$4,000
$13,000
$4,500
$4,500
$4,000
$6,000
$0
24

$4,000
$13,000
$4,500
$4,500
$4,000
$6,000
$0
24

$4,000
$13,000
$4,500
$4,500
$4,000
$6,000
$0
24

$4,000
$13,000
$4,500
$4,500
$4,000
$6,000
$0
24

$4,000
$13,000
$4,500
$4,500
$4,000
$6,000
$0
24

$4,000
$13,000
$4,500
$4,500
$4,000
$6,000
$0
24

$4,000
$13,000
$4,500
$4,500
$4,000
$6,000
$0
24

$4,000
$13,000
$4,500
$4,500
$4,000
$6,000
$0
24

$4,000
$13,000
$4,500
$4,500
$4,000
$6,000
$0
24

$4,000
$13,000
$4,500
$4,500
$4,000
$6,000
$0
24

$4,000
$13,000
$4,500
$4,500
$4,000
$6,000
$0
24

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

Page 2

Appendix
Table: General Assumptions

General Assumptions
Plan Month

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

10

11

Month 12
12

Current Interest Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Long-term Interest
Rate
Tax Rate

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

Other

Page 3

Appendix
Table: Profit and Loss

Pro Forma Profit and

Loss
Month 11

Month 12

Sales

$73,000

Month 1

$106,000

Month 2

$119,000

Month 3

$129,000

Month 4

$135,000

Month 5

$144,000

Month 6

$145,000

Month 7

$157,000

Month 8

$145,000

Month 9

$132,500

Month 10

$78,000

$80,000

Direct Cost of Sales

$11,150

$19,750

$21,350

$20,750

$23,250

$21,750

$22,550

$22,950

$22,550

$21,750

$12,750

$13,750

Other Production
Expenses
Total Cost of Sales

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$11,150

$19,750

$21,350

$20,750

$23,250

$21,750

$22,550

$22,950

$22,550

$21,750

$12,750

$13,750

Gross Margin

$61,850

$86,250

$97,650

$108,250

$111,750

$122,250

$122,450

$134,050

$122,450

$110,750

$65,250

$66,250

84.73%

81.37%

82.06%

83.91%

82.78%

84.90%

84.45%

85.38%

84.45%

83.58%

83.65%

82.81%

Gross Margin %

Expenses
Payroll

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

Sales and Marketing and

Other Expenses
Depreciation

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$2,380

$2,380

$2,380

$2,380

$2,380

$2,380

$2,380

$2,380

$2,380

$2,380

$2,380

$2,380

Leased Equipment

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

$6,000

Utilities

$3,000

$3,000

$3,000

$3,000

$3,000

$3,000

$1,500

$1,300

$1,300

$1,300

$1,300

$1,300

Insurance

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$20,833

$20,833

$20,833

$20,833

$20,833

$20,833

$20,833

$20,833

$20,833

$20,833

$20,833

$20,837

$7,350
$0

$7,350
$0

$7,350
$0

$7,350
$0

$7,350
$0

$7,350
$0

$7,350
$0

$7,350
$0

$7,350
$0

$7,350
$0

$7,350
$0

$7,350
$0

$95,563

$95,563

$95,563

$95,563

$95,563

$95,563

$94,063

$93,863

$93,863

$93,863

$93,863

$93,867

($33,713)

($9,313)

$2,087

$12,687

$16,187

$26,687

$28,387

$40,187

$28,587

$16,887

($28,613)

($27,617)

($31,333)

($6,933)

$4,467

$15,067

$18,567

$29,067

$30,767

$42,567

$30,967

$19,267

($26,233)

($25,237)

$2,450

$2,426

$2,401

$2,376

$2,351

$2,326

$2,302

$2,277

$2,252

$2,227

$2,202

($102)

$3,086

$4,143

$7,301

$7,818

$11,366

$7,893

$4,391

($9,252)

($8,946)

($237)

$7,200

$9,668

$17,035

$18,242

$26,520

$18,417

$10,245

($21,588)

($20,874)

5.58%

7.16%

11.83%

12.58%

16.89%

12.70%

7.73%

-27.68%

-26.09%

Lease
Payroll Taxes
Other
Total Operating
Expenses
Profit Before Interest
and Taxes
EBITDA
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales

15%

$2,475
($10,856)

($3,529)

($25,332)

($8,234)

-34.70%

-7.77%

-0.20%

Page 4

Appendix
Table: Cash Flow

Pro Forma Cash Flow

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash Received
Cash from Operations
Cash Sales

$73,000

$106,000

$119,000

$129,000

$135,000

$144,000

$145,000

$157,000

$145,000

$132,500

$78,000

$80,000

Subtotal Cash from Operations

$73,000

$106,000

$119,000

$129,000

$135,000

$144,000

$145,000

$157,000

$145,000

$132,500

$78,000

$80,000

Additional Cash Received

Sales Tax, VAT, HST/GST
Received
New Current Borrowing

0.00%

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Other Liabilities (interestfree)

New Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Investment Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Cash Received

Expenditures

$73,000
Month 1

$106,000

$119,000

$129,000

$135,000

$144,000

$145,000

$157,000

$145,000

$132,500

$78,000

$80,000

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Expenditures from Operations

Cash Spending

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$49,000

$1,193

$36,799

$65,859

$69,622

$69,991

$76,610

$74,012

$76,367

$79,381

$74,604

$68,939

$38,718

$50,193

$85,799

$114,859

$118,622

$118,991

$125,610

$123,012

$125,367

$128,381

$123,604

$117,939

$87,718

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Principal Repayment of Current

Borrowing
Other Liabilities Principal
Repayment
Long-term Liabilities Principal
Repayment
Purchase Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$2,976

$2,976

$2,976

$2,976

$2,976

$2,976

$2,976

$2,976

$2,976

$2,976

$2,976

$2,976

Bill Payments
Subtotal Spent on Operations
Additional Cash Spent

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Dividends

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$53,169

$88,775

Subtotal Cash Spent

$117,835

$121,598

$121,967

$128,586

$125,988

$128,343

$131,357

$126,580

$120,915

$0
$90,694

Page 5

Appendix
Net Cash Flow

$19,831

$17,225

$1,165

$7,402

$13,033

$15,414

$19,012

$28,657

$13,643

($42,915)

($10,694)

Cash Balance

$54,431

$71,655

$72,820

$80,223

$93,255

$108,669

$127,681

$156,338

$169,981

$175,901

$5,920

$132,986

$122,292

Table: Balance Sheet

Pro Forma Balance Sheet

Month 1
Assets

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month
10

Month
11

Month
12

Starting
Balances

Current Assets
Cash
Inventory
Other Current Assets
Total Current Assets

$34,600
$30,000
$0
$64,600

$54,431
$18,850
$0
$73,281

$71,655
$21,725
$0
$93,380

$72,820
$23,485
$0
$96,305

$80,223
$22,825
$0
$103,048

$93,255
$25,575
$0
$118,830

$108,669
$23,925
$0
$132,594

$127,681
$24,805
$0
$152,486

$156,338
$25,245
$0
$181,583

$169,981
$24,805
$0
$194,786

$175,901
$23,925
$0
$199,826

$132,986
$14,025
$0
$147,011

$122,292
$15,125
$0
$137,417

$210,000
$2,380
$207,620
$280,901

$210,000
$4,760
$205,240
$298,620

$210,000
$7,140
$202,860
$299,165

$210,000
$9,520
$200,480
$303,528

$210,000
$11,900
$198,100
$316,930

$210,000
$14,280
$195,720
$328,314

$210,000
$16,660
$193,340
$345,826

$210,000
$19,040
$190,960
$372,543

$210,000
$21,420
$188,580
$383,366

$210,000
$23,800
$186,200
$386,026

$210,000
$26,180
$183,820
$330,831

$210,000
$28,560
$181,440
$318,857

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month
10

Month
11

Month
12

Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets

$210,000
$0
$210,000
$274,600

Liabilities and Capital

Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities
Long-term Liabilities
Total Liabilities
Paid-in Capital
Retained Earnings

$0
$0
$0
$0

$34,608
$0
$0
$34,608

$63,538
$0
$0
$63,538

$67,296
$0
$0
$67,296

$67,434
$0
$0
$67,434

$74,146
$0
$0
$74,146

$71,470
$0
$0
$71,470

$73,716
$0
$0
$73,716

$76,889
$0
$0
$76,889

$72,271
$0
$0
$72,271

$67,662
$0
$0
$67,662

$37,031
$0
$0
$37,031

$48,907
$0
$0
$48,907

$300,000
$300,000

$297,024
$331,632

$294,048
$357,586

$291,072
$358,368

$288,096
$355,530

$285,120
$359,266

$282,144
$353,614

$279,168
$352,884

$276,192
$353,081

$273,216
$345,487

$270,240
$337,902

$267,264
$304,295

$264,288
$313,195

$600,000
($625,400)

$600,000
($625,40
0)
($33,566)
($58,966)
$298,620

$600,000
($625,40
0)
($33,803)
($59,203)
$299,165

$600,000
($625,40
0)
($26,603)
($52,003)
$303,528

$600,000
($625,40
0)
($16,935)
($42,335)
$316,930

$600,000
($625,40
0)
$100
($25,300)
$328,314

$600,000
($625,40
0)
$18,342
($7,058)
$345,826

$600,000
($625,40
0)
$44,862
$19,462
$372,543

$600,000
($625,40
0)
$63,279
$37,879
$383,366

$600,000
($625,40
0)
$73,524
$48,124
$386,026

$600,000
($625,40
0)
$51,936
$26,536
$330,831

$600,000
($625,40
0)
$31,062
$5,662
$318,857

($58,966)

($59,203)

($52,003)

($42,335)

($25,300)

($7,058)

$19,462

$37,879

$48,124

$26,536

Earnings
Total Capital
Total Liabilities and Capital

$0
($25,400)
$274,600

$600,000
($625,40
0)
($25,332)
($50,732)
$280,901

Net Worth

($25,400)

($50,732)

$5,662

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