This document summarizes a business plan for an adventure training center (ATC) that would provide training courses in various adventure activities. It outlines the opportunity for such a business due to growing interest in adventure sports. The ATC would have a unique facility and offer a wide range of courses taught by experienced instructors. Financial projections estimate revenues from course fees and assume initial losses that would be offset by an investment of $4 million. The management team has extensive experience in adventure training and business.
6. Opportunity
• Many different adventure activities
• How to learn is not readily apparent
• More than three and a half million people
participated in adventure sports
• Estimating 10% interested in adventure
training
7. The Solution
• Training in various activities at all ability levels
• Specially designed facility & field
• Course offerings to vary & grow
8. Value Proposition
• Initial perceived risk of an adventure sport
• Learning curve may be too steep & risky
• Safe & controlled environment
• Continued training to the next level
9. Financials
• Revenues mostly from service fees for classes
• Construction will begin simultaneously with
initial marketing efforts
• Initial expenses outweigh revenues
• Initial investment of $4 million
– $1.5 million secured debt
– $2.5 million preferred equity
10. Management
• Significant experience in business
management & adventure training
• Another partner with development expertise
in designing & constructing the centre
12. Mission
“The Adventure Training Centre gives people the
confidence to pursue their adventures
safely and competently, enabling them to learn
more and progress further and faster
than they would on their own.”
13. History & Current Status
• Currently in final planning stages
• Discussions with potential partners in
management, development & construction
14. Objectives
• Partner with a real estate developer to
partially invest in & develop the facility
• Later expand ATC to capacity
• Prepare for second phase
• Shall involve wither a larger partner or sale to
a larger company in order to meet the capital
requirements of constructing the centres
16. Opportunity
• Significant demand for a comprehensive,
credible & unique centre
• Technical, physical & informational material in
a safe & controlled environment
• Safety, experience, knowledge & preparedness
are among the needs expressed by this market
26. Future Competition
• Large health clubs or gyms (in the future)
• ATC Competitive Advantage
– Innovative & exciting facility
– First mover advantage
– Knowledge of the domain
27. Barriers to Entry
• Capital intensive project / Significant
investment
• Customer loyalty / Strong customer
relationships
30. Advantage
• The competitive advantage will be maintained
on three fronts
1. Breadth & depth of course offerings
2. Features of the facility
3. High quality of the instructional staff
31. Breadth & Depth
• Wide variety of adventure courses
• Courses at all levels
• Learn a new adventure sport
• Improve performance in a current one
32. The Facility
• Unique pool (to simulate water activities)
• Co-location of climbing wall, cardiovascular
activities, free weights & access to personal
trainers
33. The Staff
• Experienced & well qualified
• Build & maintain relationships
• Important ties to the adventure travel industry
34. MARKETING PLAN
Target Market Strategy, Positioning, Channels, Product/Service
Strategy, Pricing Strategy, Communication Strategy, Sales Strategy
35. Target Market Strategy
• Active & activity-oriented
• Higher disposable income
• Aged 18-50 years
• Safety conscious
36. Positioning
• Breadth & depth of the course
• Quality of the instructors
• Uniqueness of the custom facility
37. Channels
• Programs/Courses – directly to consumers
• Strategic relationships
• Relation with adventure travel
• Expansion via gear retailers
• Another important channel – internet
advertising
38. Product / Service Strategy
“To adventure-minded individuals looking to
expand and improve their adventure sports
skills, the ATC is a unique and exciting facility
with highly qualified instructors teaching a wide
variety of fun and challenging courses, giving
you confidence to pursue your adventures safely
and competently.”
39. Pricing Strategy
• Price at a premium level
• Promotions (trials, bundles, referrals)
• Main goal to get people through the door
• Focus on providing a better strategy for a little
more money
40. Communication Strategy
• Both: adventure minded + bored & curious
• Easy to navigate website with a
comprehensive e-catalogue
• Catalogues & tie-ups with other outdoor
retailers & businesses
• Most important – Word of Mouth / buzz
41. Sales Strategy
• Director of Sales & Marketing (2 positions)
• Sales
– Lead generation & conversion
• Marketing
– Promotion of ATC
55. Key Assumptions
• Market size = 10% of participants of adventure
sports
• Soft Goods will be sold from the second year
onwards
• No of students to increase by 20% & price per
class by 10% per year
• Sales & Marketing costs
– 5% sales commissions, 8% other marketing efforts
• Accounts receivable & payable at 2% & 6.5% (as a
% of gross sales, using industry comparable
numbers)
60. Offering
• Equity
– $100,000 initial funding by founders via common stock
– $2.5 million by equity investors via convertible preferred
stock
– Equity for developer & general contractor (partial fee
payment)
– Remainder via private equity
• Debt
– $1.5 million bank loan
– 10 years @ 10% fixed interest , secured by the facility as
collateral
61. Valuation
• If the ATC is valued at a P/E of 30 upon a
liquidation event in year 5, through either a
public offering or by being acquired, it will be
worth $25.85 million.
• Equity investors who invest $2.5 million for a 45%
stake today would enjoy an IRR of 36% over 5
years.
• Valuation
– Pre-money - $3.1 million
– Post-money - $5.6 million.
62. Exit Strategy
• Future intention – replicate the model across
• To get acquired by a major health club chain
Year in which Acquired Annual IRR realized by Investor
3 17%
4 30%
5 36%