Projections and analysis for the SkateWorks business model
SkateWorks' phased implementation strategy creates a financially sustainable business model with multiple revenue streams. Each phase builds upon the previous, allowing for incremental growth and risk management while progressing toward our fully integrated hockey destination.
SkateWorks will develop three primary revenue streams across our implementation phases:
Initial focus on establishing retail operations with premium hockey equipment, accessories, and specialized services.
Projected Annual Revenue: $1,000,000
Addition of training programs and services in partnership with ELEV802.
Additional Annual Revenue: $500,000
Integration of on-site ice rink for training and private rentals.
Additional Annual Revenue: $1,000,000
Our expense structure evolves with each implementation phase, reflecting the additional resources required to support expanded operations.
| Expense Category | Phase 1 | Phase 2 | Phase 3 |
|---|---|---|---|
| Staff Salaries | $400,000 | $600,000 | $800,000 |
| Facility Costs | $300,000 | $400,000 | $600,000 |
| Utilities | $100,000 | $150,000 | $250,000 |
| Inventory | $500,000 | $750,000 | $1,000,000 |
| Marketing | $50,000 | $90,000 | $175,000 |
| Insurance | $30,000 | $35,000 | $40,000 |
| Miscellaneous | $10,000 | $12,500 | $15,000 |
| Total Expenses | $1,390,000 | $2,037,500 | $2,880,000 |
| Metric | Phase 1 | Phase 2 | Phase 3 |
|---|---|---|---|
| Revenue | $1,000,000 | $2,500,000 | $4,750,000 |
| Expenses | $900,000 | $2,187,500 | $4,037,500 |
| Net Profit | $100,000 | $312,500 | $712,500 |
| EBITDA | $100,000 | $312,500 | $712,500 |
| EBITDA Margin | 10.0% | 12.5% | 15.0% |
Phase 1: Operates at a planned profit as we establish our retail presence and build our customer base.
Phase 2: Achieves profitability as we add training revenue and grow our retail business.
Phase 3: Achieves strong profitability as we integrate ice rink revenue and achieve operational efficiencies.
SkateWorks is projected to achieve break-even in Year 4, following the complete implementation of all three phases. This timeline reflects our strategic approach to building a sustainable business with multiple revenue streams.
Break-Even Point
SkateWorks requires a total capital investment of $2,000,000 across all three implementation phases. This investment will be allocated to facility development, equipment acquisition, inventory, and working capital.
| Investment Category | Phase 1 | Phase 2 | Phase 3 | Total |
|---|---|---|---|---|
| Facility Build-Out | $250,000 | $300,000 | $500,000 | $1,050,000 |
| Equipment & Fixtures | $100,000 | $150,000 | $200,000 | $450,000 |
| Initial Inventory | $100,000 | $50,000 | $50,000 | $200,000 |
| Working Capital | $50,000 | $100,000 | $150,000 | $300,000 |
| Total Investment | $500,000 | $600,000 | $900,000 | $2,000,000 |
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