Timber and Steel Axe Throwing

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Timber and Steel Axe Throwing is an indoor axe throwing venue in Kentucky. Guests throw axes at targets in caged lanes with a trained coach, in groups, at parties and at corporate events. Our guests want a physical, social activity that people of many skill levels can enjoy in an hour.

The problem is simple. Groups looking for something active and different often settle for a restaurant or a bowling alley. We offer a coached activity with clear safety rules and a venue where first-timers feel comfortable.

Here is what our numbers show. We expect sales of $205,420 in Year 1, growing to $389,182 by Year 5 as we add lanes, corporate events and league nights. We expect a loss of about $4,600 in Year 1 while we build our reviews and bookings, then a profit from Year 2 (about $10,700), growing to about $46,700 by Year 5.

We need $150,000 in total. That covers $108,000 in startup costs (lanes with cages and targets, axes and safety equipment, a party area, the build-out, the lease deposit, insurance and launch costs) and a cash cushion for the first months. I am putting in $40,000 of my own money, and I am asking for a $100,000 SBA loan plus $10,000 from an investor or partner.

I am Wade Holloway, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Timber and Steel Axe Throwing will be a limited liability company (LLC) in Kentucky, owned by Wade Holloway. An LLC is a business type that generally keeps your home and savings separate from the business's debts and lawsuits, although a lender may still ask for a personal guarantee. A business attorney or the Small Business Development Center (SBDC) can explain how it works in our state.

What we believe. Safety first and fun second. Every guest gets a coached lesson, rules are enforced and the lanes are built to protect everyone.

What we offer:
- Lane reservations and walk-in play. Hourly sessions for groups with a coach.
- Corporate and private event packages. Parties, team-building and celebrations with a private area.
- Snacks, soft drinks and merchandise. Light food, non-alcoholic drinks and branded items.
- Later, as we grow: leagues and tournaments. The numbers in this plan do not include these.

What we do not do. In this plan we do not serve or allow alcohol. Mixing alcohol and axes adds serious risk and extra licensing, so the plan leaves it out.

The space. In Year 1 we will lease about 4,000 square feet with six lanes, a party area and a front desk. We budget $36,000 a year ($3,000 a month) for rent and utilities, and the plan assumes this grows about 5% a year.

Licenses and insurance. We will register the LLC with the state, get a business license, an EIN (the business tax number from the IRS, free at irs.gov) and a sales tax permit, and ask the fire department and building office about occupancy and exits. We will carry general liability insurance designed for axe throwing, property insurance and workers' compensation once we hire, and every guest signs a waiver and an age rule is posted.

Where things stand today. This plan is my starting point. Before I sign a lease or buy equipment, I will visit at least 5 venues, ask at least 30 people about what they would pay, get quotes for insurance and confirm the zoning and building rules. If the numbers do not match this plan, I will change the plan before I spend money.

Problem & Opportunity

Groups want an active shared activity that is easy to start.

1. Few active options. Many groups choose dinner or a movie.
2. Intimidating activities. First-timers worry about getting it wrong.
3. Safety. Guests want to know the activity is controlled.
4. Team events. Companies want something that gets people moving.
5. Parties. Hosts want a venue that handles the work.

How we will find out if people want this before we spend money. I will visit at least 5 venues and ask at least 30 people what they would pay. Our Year 1 plan needs about 4,840 person-sessions and 1,210 event guests.

Products & Services

What we sell. We have three offerings, each priced simply.

1. Lane reservations and walk-in play. The plan assumes an average of about $28 per person-session in Year 1, rising to about $32 by Year 5. Target and axe upkeep and supplies cost about $2 per session. We expect about 4,840 sessions in Year 1 (about 93 a week), growing to about 7,210 a year by Year 5.
2. Corporate and private event packages. The plan assumes about $42 per guest in Year 1, rising to about $46, with about $9 per guest in direct costs. We expect about 1,210 guests in Year 1, growing to about 2,600.
3. Snacks, soft drinks and merchandise. The plan assumes about $9 per sale in Year 1, rising to about $10.20, with about $4 per sale in cost. We expect about 2,120 sales in Year 1, growing to about 3,810.

Our prices. A posted price per person per hour, a deposit for groups and a package price for events.

How it works for a guest:
1. The group books online and picks a time.
2. Guests sign a waiver, hear a safety briefing and get a coached lesson.
3. A coach stays with each group, enforces the rules and watches every lane.
4. The group plays games and can use the party area.

Gross margin, explained. "Gross margin" is the share of each sale left after paying for target and axe upkeep and supplies. Our plan shows about 86% in Year 1. That money pays the coaches, rent, insurance and other bills. Pay is counted separately, under payroll.

Market Analysis

Who will use us:
- Groups of friends, couples and families.
- Birthday parties and bachelor and bachelorette parties.
- Companies planning team events.

Where we will work. Guests within about 30 minutes of the venue.

How we sized the plan. Our Year 1 plan needs about 93 person-sessions a week, a few groups a day, which six lanes can host. I will check the real numbers by asking people before spending money.

Season. Winter and weekends are busy. The numbers show a yearly average.

Competitive Landscape

Other choices guests have:
1. Other axe throwing venues, which compete on fun and safety.
2. Bowling, arcades and escape rooms.
3. Bars and restaurants.
4. Outdoor activities.

How we will win guests: coached lessons, clear safety rules, clean lanes and a friendly host. These are promises we have to keep, and any competitor could make them too, so we will measure ourselves on them every week.

Marketing & Sales Strategy

How guests will find us.
- A website with online booking and clear safety information.
- A free Google business listing and review sites.
- Corporate outreach with a free trial session for a team lead.
- Social media videos of groups having fun, posted with permission.
- A referral thank-you for groups that bring friends.

Marketing budget. About $9,000 a year in Year 1 (about $750 a month), growing about 8% a year. The sign, website and launch events are paid for from startup costs ($8,000).

Operations Plan

How the business runs day to day.

The space. A front desk, six lanes with cages and targets, a party area, a snack counter, restrooms and storage for axes.

A normal day:
1. Inspect targets, cages and axes and check the floor and exits.
2. Greet each group, run the briefing and start the lesson.
3. A coach supervises the lanes, enforces the rules and resets targets.
4. Close, lock up the axes and clean the lanes.

Safety. Guests must be at least the posted minimum age, wear closed-toe shoes, and listen to the safety briefing. A coach is present for every group, throwing lines and behavior rules are enforced, axes are counted and locked up each night, and guests who are impaired or unsafe are asked to leave. We keep first aid supplies and train coaches on first aid.

Equipment. About $55,000 to start: six lanes with cages and targets, axes and safety signage, a front desk and a party area. We set aside about $4,000 a year after that to replace targets and axes.

Running costs in Year 1: rent and utilities about $36,000, booking software and card fees about $5,400, marketing about $9,000, insurance about $7,200, target, axe and cage maintenance about $6,000, and accounting, licenses and legal about $3,600. That is $67,200 in all.

Payment. Guests pay by card at booking. Corporate clients are invoiced and some pay in about 30 days.

Management & Organization

Who runs the business. Wade Holloway, owner and general manager. As owner I will run the venue, train coaches, handle bookings and handle the money. I plan to pay myself $42,000 a year in salary.

The team. Pay figures include payroll taxes and workers' compensation insurance.
- Coach and attendant (part-time, average): 3 in Years 1 and 2, 4 in Years 3 and 4 and 5 in Year 5, at about $16,000 a year each on average.
- Shift manager (full-time): one starting in Year 2, at about $36,000 a year.

We hire people who are friendly and calm, train everyone on safety rules and first aid, and run background checks (with the person's permission and following the law) on anyone who works with youth groups.

People who will help us: a bookkeeper or tax preparer, an insurance agent who understands entertainment venues, a business attorney for a one-time review of the lease and waiver, and a free mentor from SCORE or the Small Business Development Center (SBDC).

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (5 to 7 months ahead): visit at least 5 venues, ask at least 30 people about what they would pay, get insurance quotes, confirm zoning and building rules, register the LLC and get an EIN, open a business bank account, find a space, have an attorney review the lease and waiver, and build and test the lanes. Sign the lease only after the insurance quotes and the building answers are in hand.
- Year 1: open with the owner and part-time coaches, with about 93 person-sessions a week, $205,420 in sales and a loss of about $4,600.
- Year 2: add a shift manager, with about 6,000 person-sessions, $275,662 in sales and a profit of about $10,700.
- Year 3: grow corporate events, with about 6,550 person-sessions, $321,748 in sales and a profit of about $24,100.
- Year 4: grow repeat groups, with about 6,690 person-sessions, $345,990 in sales and a profit of about $35,500.
- Year 5: grow to about 7,210 person-sessions a year with a team of seven, $389,182 in sales and a profit of about $46,700.
Growth depends on booking and keeping groups, earning reviews and enforcing safety every day, so treat the later years as goals, not promises.

What we check every week: person-sessions, lane utilization, event bookings, injuries (aim for none), reviews and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $150,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $108,000, listed item by item in the Startup Costs section: $30,000 for six throwing lanes with protective cages and targets, $9,000 for axes, safety signage and first aid, $7,000 for check-in desk, cameras, computers and card readers, $9,000 for party area furniture and snack counter equipment, $30,000 for floors, walls, electrical and lighting build-out, $6,000 for lease deposit and first month of rent, $1,400 for business license and local permits, $4,600 for legal, waiver and accounting setup, $8,000 for sign, website and launch events, and $3,000 for first insurance payment.
- A cash cushion of about $39,300: about 3 months of running costs. Our cash stays above zero in every year of the plan, but lenders still want a cushion in the bank for slow weeks and surprises. They call this "working capital."
- Together that comes to about $147,300, rounded up to the nearest $500: $147,500.
We are raising $2,500 more than that, $150,000 in all, to leave extra room for loan payments in the first years and for target and axe replacement.

Where the money comes from:
- My own money: $40,000.
- Amount requested as a loan: $100,000.
- From an investor or partner: $10,000.

Kind of funding we are looking for. An SBA 7(a) small loan through a local bank or community lender, plus investor or partner money. Investor or partner money is not paid back with interest, but the person gets a share of the business. A family member, a friend, a local investor or a business partner could fill this part. Put any agreement in writing.

How we will pay it back. We expect a loss of about $4,600 in Year 1 while we build our reviews and bookings, then a profit from Year 2 (about $10,700), growing to about $46,700 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan, and the lowest year-end balance is about $92,400, at the end of Year 1. The loan is planned at 12.75% interest over 10 years, so payments of about $1,478 a month (about $17,741 a year) are already included in our cash flow. We chose 12.75% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

What we are offering the lender: our equipment as collateral (something the lender can claim if the loan is not repaid) and my personal guarantee (my promise to repay from my own money if the business cannot).

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start with three lanes in a smaller space, or a pop-up lane at events where insurance allows, while keeping your current job. Startup can be roughly $40,000 to $60,000 for lanes, axes, insurance and a build-out. Get your own quotes.
- Phase 2: once the first lanes book most weekends, add lanes and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or training certificates.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Proof of insurance, or a quote.
- Your waiver, safety plan and coach training outline.
- Quotes for insurance written for axe throwing.
- A letter or quote for the space, and the lease once you have it.
- Quotes for lanes, cages and axes.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Lane Reservations and Walk-In Play: about $28 per person session in Year 1, rising to $32; about $2 per person session in direct costs, rising to $2.40; about 4,840 person sessions in Year 1, growing to 7,210.
- Corporate and Private Event Packages: about $42 per guest in Year 1, rising to $46; about $9 per guest in direct costs, rising to $10.20; about 1,210 guests in Year 1, growing to 2,600.
- Snacks, Soft Drinks and Merchandise: about $9 per sale in Year 1, rising to $10.20; about $4 per sale in direct costs, rising to $4.40; about 2,120 sales in Year 1, growing to 3,810.
- Pay: Owner / General Manager $42,000 (1/1/1/1/1); Coach and Attendant (part-time, average) $16,000 (3/3/4/4/5); Shift Manager (full-time) $36,000 (0/1/1/1/1). The numbers in parentheses are how many people we plan to have in Years 1 through 5. Pay figures are yearly and include payroll taxes and workers' compensation.
- Other yearly costs in Year 1: rent & utilities $36,000, booking software & card fees $5,400, marketing $9,000, business insurance $7,200, target, axe and cage maintenance $6,000, and accounting, licenses & legal $3,600. These grow between 5% and 12% a year as the business grows.
- Guests pay by card at booking and corporate clients are invoiced. At the end of Year 1 about $4,108 (2% of Year 1 sales) is owed to us by corporate clients or is still on its way from card processors.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs