340 RACEWAY LLC. Business Plan Prepared By: Shanya Hanley, Tashorna Thompson and Jeaneve Simmonds 3-A Hogensborg Saint Croix, US Virgin Islands 00840 (340 555-RACE (7223) info@340racing.com www.340racing.com Table of Contents EXECUTIVE SUMMARY .......................................................................................................................... 2 The Business.............................................................................................................................................. 2 The Customers .......................................................................................................................................... 2 Management.............................................................................................................................................. 3 Mission Statement ..................................................................................................................................... 3 Vision Statement........................................................................................................................................ 3 Company Overview ...................................................................................................................................... 4 Company Ownership................................................................................................................................. 4 Startup Summary....................................................................................................................................... 4 Management Team........................................................................................................................................ 5 Employees Roles and Responsibilities ...................................................................................................... 7 BUSINESS SUMMARY .............................................................................................................................. 9 Industry Overview ..................................................................................................................................... 9 Legal ......................................................................................................................................................... 9 MARKETING SUMMARY ....................................................................................................................... 10 Target Markets ........................................................................................................................................ 10 Advertisement.......................................................................................................................................... 16 PRODUCTS................................................................................................................................................ 16 SERVICES.................................................................................................................................................. 17 SOURCE OF INCOME .............................................................................................................................. 18 FINANCIAL PLAN.................................................................................................................................... 21 EXIT STRATEGY...................................................................................................................................... 24 Appendix ..................................................................................................................................................... 25 Track Diagram ........................................................................................................................................ 25 Advertising Contract ............................................................................................................................... 26 Buisness Licenses ................................................................................................................................... 27 Company Brochure ................................................................................................................................ 28 Price Menu .............................................................................................................................................. 29 EXECUTIVE SUMMARY 340 Raceway (referred to from hereon in as the "Company") is intended to be established as a Limited Liability Company at 3-A Hogensborg, Saint Croix, US Virgin Islands, 00840 with the expectation of rapid expansion in the family entertainment industry. The Company is a wellequipped indoor go-kart and family entertainment venue that intends on being centrally located on Saint Croix, USVI. The purpose of creating the business is to contribute to the community were residents of Saint Croix and neighboring islands have and safe fun-filled venue to enjoy. Through research the team was able to secure a vacant building, formally the Cost-ULess west, with an accessible location on Saint Croix. The venue will be outfitted for go- karting, driving courses, arcades games, concession, among other recreational activities. We are prepared to service our community and its visitors. The Business The Company will be the leader among the family entertainment industry in the Virgin Islands’ territory and will work diligently to expand business and services tailored to the needs of its customers. Prior to forming the Company, the community needs were discussed and noted. Through comprehensive research and practical knowledge, it was agreed upon, that Saint Croix is an ideal location to open business. Since this go-kart facility will be the first and only go-kart facility in the Virgin Islands’ territory, it will encourage residents to develop the interest of engaging in recreational activities. The Customers The indoor go-kart and family entertainment facility construction will be created based on the account of all customers. The company is prepared to accommodate customers of all ages and customers with disabilities. There will be available child care services, handicap accessible ramps, and sign language interpreters on staff. Additional incentive are the discounted membership packages that are available to individual families, churches, and organizations that visit the facility often. The company is committed to the community it serves, both as a business and its owners and staff as individuals, with the intention of participating in community outreach. Management The company will maintain the highest standards of customer satisfaction. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides realistic approach to earning a living, and coexisting in the world, for our partners, employees and for our customers. Mission Statement The mission for establishing the Company is to provide a unique entertainment facility and a contribution to the Saint Croix community with a focus on exemplary customer service. It intends to be a highly profitable entity for its owners, a haven for speed enthusiast which supports the engagement of family togetherness and an enjoyable working atmosphere for employees. Vision Statement The vision of creating the Company is to create the leading indoor go-kart and family entertainment facility and contribute to the Virgin Islands economy while entertaining Saint Croix and neighboring islands’ families and visitors. Company Overview 340 Raceway shall be formed as Limited Liability Company under US Virgin Islands laws. The company is a small go-kart business founded by Shanya Hanley, Tashorna Thompson, and Jeaneve Simmonds. 340 Raceway is a Virgin Islands registered LLC. Company Ownership Tashorna Thompson: As the CEO of 340 Raceway, LLC, Tashorna Thompson is responsible for running all facets of the business. She has a proven executive management track record and over ten years of experience in the customer relations and entertainment industries. Prior to establishing 340 Raceway, LLC, Tashorna was employed as a human resource manager at Navigation Construction responsible for overseeing department functions and managing employees. Tashorna Thompson is the President of the Christus Victor Lutheran Church Council. For the past five years she has been an active member of the Women of the ELCA. She is pursuing a Bachelor of Business Administration in Management at the University of the Virgin Islands with the intent of graduating in Spring 2020. Shanya Hanley: Saint Croix native currently pursuing a Bachelor of Arts degree in Business with a Concentration in Finance. Over ten years in customer relations and sales experience. Founder of a culturally focused non-profit organization and Director of 340 Raceway, LLC. Jeaneve Simmonds: Saint Croix native pursuing a degree in Business Administration in Accounting. She is employed at the Department of Tourism with the title of Greeter and Marketing Director of 340 Raceway, LLC. Startup Summary It is built upon the faith that new, fun family entertainment will boost the community and the entertainment industry. As a new service-based business the Company is destined for success. This facility is the first and only go-kart business in the Virgin Islands and will add to the lack of entertainment in the community. The purpose of our business is to boost the entertainment industry and give the community and families new and exciting ways to create good memories. With the help of a thriller racetrack, an arcade, and a great selection of cuisine the Company is on route to boosting the entertainment industry and bringing life back to a community. It is understood that it will take the right venue, management team and employee organization – structure to achieve the Company’s goal. Management Team The Company has assembled an experienced management team with plans of being the leaders of effective management and employee retention. The importance of a “satisfied and empowered” staff as it relates to achieving our goals and mission of our company is recognized. It is imperative that the company hires qualified staff with superb customer service skills with the willingness to provide an enjoyable experience for customers. The company will provide full benefit packages to full time employees: 401k, Health Insurance, Maternal/Paternal Leave, Sick Leave, Tier Vacation leave based on tenure, and Employee Discounts. The company is made up of the following positions: • Chief Executive Officer – CEO • Facility Manager and Administrator • Accountant / Cashier • Marketing and Sales Officer • Go Kart Safety Instructor / Assistant (5) • Customer Care Executive / Front Desk Officer • Cleaners The Company will employ 5 full-time employees and 20 part-time employees. Chief Executive Officer - As the CEO, Tashorna Thompson has many responsibilities. However, at the top of that list is inspiring leadership throughout the company. In addition, she makes high level decisions about the company, creates operational policies, strategic plans and implements them. It is also her responsibility to recruit new staff members if necessary. Tashorna will oversee the company’s fiscal activity. This includes reporting, auditing, and budgeting. Ensuring that all legal documents are filed and in compliances with regulations and laws is also part of these responsibilities. Tashorna will meet and work closely with the executive board to discuss goals and determine the values and mission of the company are being met. This will lead her to identify and address any issues and opportunities for the company. She will oversee the day to day operations of the company. Finally, it is important that Tashorna work closely with human resources department to manage who is being hired to work at 340 Raceway. Facility Manager and Administrator - Shanya Hanley is the Facility Manager and Administrator. The most important part of this job is planning and implementing strategies and systems that will get to job done and fulfill the goals and mission of 340 Raceway. Shanya will plan, evaluate, and improve business processes and procedures. Doing this will increase quality, speed, and efficiency of the company. establishing feedback systems to monitor operation is also very important in management. in addition, Shanya will keep in contact will other managers and designated contacts to assure the company is running smoothly. Accountant- As the accountant at 340 Raceway, Jeaneve Simmonds, is responsible for preparing asset, liability, and capital account entries. Preparing documents financial transactions by entering accounting information is also part of this job description. Jeaneve will also summarize current financial status and substantiate financial transactions by preparing balance sheets, profit and loss statements, other reports, and auditing documents. In addition, she will reconcile financial discrepancies by collecting and analyzing account information. securing financial information with database backups and maintaining financial security are all part of the job description. Preparing payments by verifying, and requesting disbursements are all included. Finally, Jeaneve will also prepare special financial reports by collecting, analyzing, and summarizing account information and trends. Employees Roles and Responsibilities Go Kart Safety Instructors / Assistant (5) · Ensures the safety of all patrons by enforcing safety measures while using go karts and other equipment. · Monitor all areas of facility. · Register and oversee all races and tournaments · Keep race time. · Pay rate - $13.50/hr. ((2) Full Time positions – (3) Part -time positions) Cashier (4) • Collects money at the counter • Answers the questions customers may have • Informs customers of rules and guideline of the establishment • Pay rate: $15/hr. ((2) Full Time positions – (2) Part-time positions) Client Service Executive · Create brochures and welcome packets for customers. · Provide clients with a memorable experience with every contact. · Answer customer questions and direct inquiries to appropriate department. · Monitor and combine customer compliment and complaint forms · Create a customer information database which enables monthly contact with customers · Complete all administrative duties assigned by top level management. · Stay updated on all changes in the company’s policies, products and promotions in order to accurately address customer concerns and inquiries. · Receive, sort, and distribute company mail. · All other duties assigned. · Pay rate: Full Time Salary $30,000/year Cleaners (3): • Responsible for general housekeeping of facility and grounds. • Cleans up after customers and clean work area. • Clean track and office areas daily. • Maintain and monitor bathroom by conducting routine half-hour checks • Manage toiletry and cleaning supply inventory. • Sweep, vacuum, dust, clean glass doors and windows, and all other duties assigned. • Respond to any housekeeping emergencies assigned by general manager. • Pay Rate: Full time $12.50 / hr. Pay period: Every 1st and 15th of every month. It is the intent of the Company to hire applicants that qualified, loyal, customer friendly and want to work in to build the business and be beneficial to all stakeholders conclusively. As an incentive, executive management will have profit-sharing performance-based access after 10 years of service to the Company. The company sole purpose is not only making large profits and provide customers with enjoyable visit, but also, ensure that the working conditions are conducive to its employees. The company will equip its employees with goal-oriented training and instruction to motivate and ensure delivery on specialized tasks. BUSINESS SUMMARY Industry Overview In the United States Virgin Islands, the entertainment industry is limited to watersport activities, cinemas and occasional trips off-island. Comparable activities such as jet-skiing are not cost effective to our target market nor do they possess an adequate number of skis to satisfy large groups. Almost 20 years ago, Time Out arcade was closed on St. Croix. This left a gap in the entertainment industry on island for families to patronize. Over the course of those years, entertainment has been limited as well to small carnival villages at the Crucian Christmas Festival and Agriculture Food Fair. With the addition of 340 Raceway we are giving the industry an opportunity to be revived and thrive once again. Legal The Company affirms that its promoters have acquired all legally required trademarks and patents. Liability waivers: Every customer must sign a waiver to prevent liability and potential lawsuits. Certificate of Occupancy: This document confirms that all building codes, zoning laws, and government regulations have been met. MARKETING SUMMARY Target Markets Patrons of 340 Raceway LLC. demographic is: • active • mature • fun loving • traditional • Satisfy a broad income range Estimated capacity 200 patrons daily 60% ages 0 – 45 40% ages 45 + 50% male / 50% female The Company's major target markets are as follows: Services will be provided to customer of all ages. Emphasis during marketing will focus on the family unit as the primary clientele. To operate go-karts, single kart drivers must be 10 years old and 4’5”. Double Kart drivers must be 16 years old and meet height requirement. Passengers of double karts must be 4 years old and not eligible to drive a single kart. The company encourages group bookings at the facility and will provide discounts to persons hosting birthday parties, office team building bookings, military, nonprofit groups, churches, seniors 65 +, schools, camps and sports teams. As tourism increases on the island of St. Croix, the company has considered promotions with the Virgin Islands Department of Tourism to offer discounted rates to visiting guests. The target market can be divided amongst three primary groups: 1. Family units on St. Croix seeking the opportunity to hang out and bond. 2. Organizations and groups. 3. Single individuals, friend groups and couples. Estimated clientele within the Company's geographic scope of St. Croix is 12,000. Pricing Strategy The Company has completed a thorough analysis of its competitors' pricing. Keeping in mind our competition's pricing and the costs of customer acquisition, we have decided on the following pricing strategy: Customers will be able to pay for go-kart rental using the methods of payment: Cash – Debit Cards – All Major Credit Cards – PayPal – Apple Pay Single Kart Rates Double Kart Rates Family Rates (2 adults 2 children) $15 for 10 min. $20 for 15 min. Chill - $80 for 10 min. $20 for 15 min. $25 for 15 min. Liming - $115 for 15 min. $40 for 30 min. $45 for 30 min. Versus! - $180 for 30 min. Honor Roll/Deans List students from K-5 – Undergraduate College qualify for one 30-minute go-kart rental per semester. There will be no blackout dates. To register as a member of 340 Raceway LLC, patron must purchase member card for $15. There will be a $10 monthly membership fee. Members will receive points based on each rental at facility. Membership will be classified by a tier system based on accumulated points. Members receive comp 10-minute go – kart rental on member’s exact birthday. Each go-kart rental dollar amount is matched to 5 points towards membership rewards. Points can be redeemed on a monthly basis and expire on the date of membership anniversary. Membership Rewards are as follows: Student Driver Junior Racer Need for Speed 450 points 900 points 2000 points 10-minute single kart rental 30-minute single kart rental - 30-minute go – kart race (2 carts) - 30-minute single kart rental Complete track rentals are available for birthdays, corporate and groups. Pricing at $1000 per hour for the first two hours, $700 per hour after. This requires booking facility two weeks in advance of required date. SWOT Analysis Strengths One of the obvious strengths that will stand as a plus for the Company is the fact that our facility is centrally located in a densely populated – residential area in Saint Croix– Virgin Islands; our location is in fact one of our major strengths. We equally have a team of highly qualified professionals who will work with all our clients to achieve their aims making use of our go karting and family recreational facility and lastly our gate fee / membership package is one of the best that anybody living around Saint Croix– Virgin Islands and neighboring islands can get; it is cheap and affordable. Weaknesses We critically investigated our business model and we were able to identify two major weakness. One is the fact that we are a new business and the second is the ability to replace go-karts in a timely manner due to shipping timelines from the mainland US to St. Croix. Opportunities This is a fun and engaging experience that can be enjoyed by all allowed age groups in our target market. With success of 340 Raceway LLC., there is a great possibility to expand to St. Thomas, USVI Threats One of the major threats that is likely going to confront the company is the possibility of injury. Go-kart racing can be dangerous. However, our company is insured, and all customers must sign a liability form before they can drive or ride in go-karts. Competition In the family entertainment industry, customers make choices based upon our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and increases our market share. We will leverage on improving on our services and facility to ensure that we win new clients and retain old members at the Company. The level of competition is average to high. While there are no dominant companies on St. Croix providing entertainment activities, there are other leisure businesses on island to consider. The primary competitors for the business are the following: Caribbean Cinemas, Tropical Ten Pins Bowling Alley, and Riddims at Rainbow Beach. However, we believe that the Company has the following competitive advantages: Although residents patronize the movie theater and bowling alley daily, turn out is generally low during weekdays. We do not consider watersports as a major competitor due to low turn around and high costs. This provides us with a competitive advantage. Services Premium service is meant to be the focus of the Company and the foundation of its success. All customers will receive conscientious, individualized, prompt service in all capacities, be they transactions, conflicts or complaints. This is expected to create a loyal brand following and return business. Market Analysis Market Trends Just like in other business ventures, the owners of go-kart driving ranges and family fun centers are always looking for ways to increase their market share; they go as far as signing deals with high schools and religious organizations et al to make use of their facility on a regular basis. Lastly, it is a common trend that as go-kart driving ranges and family fun centers grows, it becomes necessary for them to develop new service offerings or install new facilities that will help them attract more people. Little wonder some go-kart driving ranges and family fun centers now have other facilities targeted towards attracting adults / parents. In order words, it is very important for go karting and family recreational facilities to continue to improvise if they want to grow their business and generate their target revenues. Competitive Advantage Beyond every reasonable doubt, the go-kart driving ranges and family fun centers industry is indeed a prolific and highly competitive industry. Clients will only make use of your facility if they know that you can successfully help them achieve their goals or provide the enabling environment and facility for them to catch maximum fun. the Company is centrally located close to a densely populated – residential area in Saint Croix– Virgin Islands; this is obviously going to give us an edge amongst our competitive. We equally have a team of highly qualified professionals who will work with all our clients to achieve their aims of making use of our go-kart driving range and family recreational facility and lastly our gate fee cum membership package is going to be one of the best that anybody living around Saint Croix– Virgin Islands can get; it is cheap and affordable. Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups go karting and family recreational facility businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives. Marketing Strategies At 340 Raceway our marketing strategies are geared towards fulfilling our mission and vision of our company. However, we are also prepared to increase the entertainment industry and provide a safe, fun environment for families in the community to enjoy. As the company continues to thrive, we hope that we will continue to bring in new customers while keeping previous clients satisfied. The entertainment industry is continuously changing and evolving; because of that we will continue to improve on our services, prices, and promotion of the company. To keep our business fresh in the market 340 Raceway will faithfully promote our go-kart facility, in addition to promoting a safe family friendly environment that offers family packages, membership groups, and discounts for clubs and schools. Marketing and sales strategies are as follows: Advertisement • Advertise our facility on a local radio station (103.5 and 95.1) monthly, and ads in the daily newspaper yearly. • Promote our facility online through our website (info@340raceway.com) • Print brochures, posters, business cards and fliers and distribute them in local businesses and post them in central populated areas of the community. PRODUCTS After thorough research, we selected state-of-the-art electric go karts that are quicker and environmentally friendly. We wanted to ensure a thrilling experience for our patrons and decided on the STORM series electric go-karts. These karts are manufactured in Italy and have been engineered to provide a thrilling and safe ride. 340 Racing will have a built in 600 ft Indoor electric track, track safety barrier constructed with recycled tires, 14 Thundervolt Lightning go karts, and 10 Thundervolt Stockart + go karts. Electric karts are faster and accelerate quicker than gas powered go-karts. When choosing the electric go karts for our facility a few factors were taken into consideration: 1. Safety: Weight distribution on gas powered karts are unbalanced. Electric karts are heavy with a more evenly dispersed weight, eliminating the probability of flipping. All karts are equipped with safety belts and require mandatory use of helmets for all drivers and passengers. 2. Environmental Factors: 340 Racing pledges to minimize its carbon footprint by choosing the most environmentally friendly option when purchasing products. Electric go karts have zero emissions, do not consume costly fuel and “hummm” instead of the loud noise pollution of gas powered karts. Electric karts reduce the spill occurrence and the need to dispose of oil/fuel waste. 3. Maintenance: Ensuring that maintenance costs will be minimal, electric karts can be maintained by trained staff members and do not require specialized skills. SERVICES The Company is prepared to introduce the following service to the market: With the nearest Go Kart facility located in Puerto Rico, rising costs of travel ensures that customers will patronize the facility. We will be the only go kart facility in the United States Virgin Islands. As St. Croix begins to grow economically, there will be an increase in disposable funds that can be used for entertainment activities. This insures the success of 340 Raceway LLC SOURCE OF INCOME The Company is established with the aim of maximizing profits in the go-kart driving ranges and family fun centers industry and we are going to go all the way to ensure that we do all it takes to attract both individual clients (families) and corporate clients on a regular basis. the Company will generate income by offering the following services; • Go-karting • Amusement and recreation services • Fitness and recreational sport center services • Registration for sports tournaments and matches • Golf course and country club services and memberships • Meals and beverages • Coin-operated games and rides • Amateur sports teams and club services Our Pricing Strategy Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging as gate fees or membership fee in Saint Croix– Virgin Islands and neighboring cities. Be that as it may, we have put plans in place to offer discount services occasionally and to reward our loyal customers especially when they refer clients to us or when they register as a family, groups or a religious organization and schools. The prices of our services will be same as what is obtainable in the United States open market Payment Options The payment policy adopted by the Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that the Company will make available to her clients; • Payment via bank transfer • Payment with cash • Payment via credit cards / Point of Sale Machines (POS Machines) • Payment via online bank transfer • Payment via check In view of the above, we have chosen banking platforms that will enable our client make payment for all our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services. Start – Up Expenditure (Budget) When starting a new business, it is important to consider the initial start - up costs of your business. We have chosen to rent the location of our go-karting businesses for the duration of the next 5 years. The costs to purchase this property will surpass our intended budget. Based on our proposed goals and vision for our business, we project a substantially low start-up cost. Here are the general costs that we have determined for the startup of 340 Raceway, LLC in the United States Virgin Islands; • Registration of trade name/business license $550 • Insurance (Liability, workers’ compensation and property casualty) coverage at a total yearly– $30,000 • Cost of accounting software, and Payroll Software – $3,000 • Cost for facility lease – $7,500. • Remodeling costs, constructing go karting race course/facility – $200,000. • Monthly stationery – $500 • Phone/ Internet/Cable – $1,500 • Utilities - $3,500 • First three months operational costs. to include employee salaries and other expenditures– $75,000 • The cost for start-up inventory – $15,000 • The cost for the purchase of Computers, Printers, Telephone, TVs and stereo system– $10,000. • Website hosting and development – $2500 There is an estimated need of $ to successfully launch 340 Raceway LLC. We would need an estimate of $750,000 to successfully launch a small but standard and well – equipped go-kart driving range and family fun center in Saint Croix– Virgin Islands. It is important to state that the testing and evaluating expenses would be high because of the large amount of equipment needed to start up a go karting and family recreational facility and also the huge amount required in securing a facility large enough to accommodate the go-kart driving range and family fun center. Generating Funds / Startup Capital for the Company The Company is a privately registered business that will be owned and operated by Tashorna Thompson, Shanya Hanley, and Jeaneve Simmonds. These millennials are the sole financiers of the company; therefore, they restricted the sourcing of start-up from capital from personal investments. N.B: We have been able to generate about $1.2 Million (Personal savings $400,00 per owner) Sustainability and Expansion Strategy. FINANCIAL PLAN The five-year projection includes purchasing of additional go-karts, remodeling and upgrades to facility and a yearly 10% increase in salary. This increase reflects loss/gain of workers and raises as well. In 2023, owners of 340 Raceway LLC. intends to purchase location outright from landlord. EXIT STRATEGY The founders of 340 Racing, Inc. have come to the agreement that if we decide to exit this business it will be sold. Shares can only be sold to existing owners or immediate family members with first right of refusal. This also applies for unexpected death of a founder. If all owners collectively decide to sell, each owner is responsible for ⅓ of the debts before sale can be complete. Upon sale of facility, the name 340 Raceway LLC., will be renamed upon official transfer of business. This maintains complete separation of previous owners to new property management. Appendix Track Diagram Advertising Contract Buisness Licenses Company Brochure Price Menu
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