SCENARIO. You are a consultant for the Small Business Administration (SBA). Part of your responsibilities is to examine potential small business plans submitted for obtaining small business loans through the federal government. You have been provided a new plan for you to analyze for potential investment by the SBA

DIRECTIONS. Attached is the business plan. This plan was created and submitted several semesters ago. You will analyze the business plan and write a report of your findings.

Executive Summary The Indoor Training Facility (for baseball and softball) will be an indoor facility located along North Expressway 2, centrally located within the city of Harlingen, Texas. The training facility is designed to offer a competitive alternative for practices and personal coaching. There are currently no competition facilities within the service area. The nearest indoor training facility is located in Edinburg, approximately 45 minutes away from the proposed location. The existing facilities do not offer rental space nor do their hours of operation accommodate coaches, trainers, and athletes. The Indoor Training Facility (for baseball and softball) will offer approximately 12,000 square feet of space, featuring 5 batting cages and a warm-up area. The training facility will benefit athletes of all ages, including college athletes, minor league players, and pro athletes. Other services this facility will offer is office space, restroom and shower areas, and high-quality equipment and surfaces. This training facility will have adequate rental space for group coaching clinics, one-on-one skills training, and single athletes to large groups. The hours of operation for the training facility will be 8 a.m. to 10 p.m., seven days a week. Coaches, trainers, and athletes can utilize the training facility year-round, even during inclement weather and long hot summer months, allowing for effective practice of their sport. Coaches and trainers are limited to practice locations due to limited existing facilities and the long distance to an existing facility. Through personal experience, due to full schedules and limited time frames, availability for a batting cage is rare. With Valley teams participating in travel ball and athletes looking to acquire scholarships, coaches and athletes are eagerly looking for a training facility that will accommodate their schedules and needs. The hours of operation and central location of this training facility will be paramount to the coaches, parents, and athletes. Participation rates in Texas are nearly 50,000 for baseball and 40,000 for softball. The Indoor Training Facility (for baseball and softball) will cater to the increasing need for skills training on a year-round basis. These participants are all potential customers of the training facility. The Indoor Training Facility (for baseball and softball) will provide a quality indoor baseball and softball training environment for athletes of all ages, including college athletes, minor league players, and pro athletes.

Mission Statement and Goals A. Mission Statement The mission of the Indoor Training Facility (for baseball and softball) is to provide an appropriate venue where athletes of all ages can practice their sport using high-quality equipment and surfaces. Our goal is to provide a facility in which coaches, trainers, and parents can promote the game fundamentals while athletes will strive to improve their skills. The Indoor Training Facility (for baseball and softball) would not only provide a positive economic impact in the Rio Grande Valley but will generate a positive net income stream for continued growth. Company Summary A. Company Background The Indoor Training Facility (for baseball and softball) will be a new indoor facility designed to offer a competitive alternative for practices and personal coaching. This facility will have adequate rental space for group coaching clinics, one-on-one skills training, and single athletes to large groups. The Indoor training Facility (for baseball and softball) will provide a quality indoor baseball and softball training environment for athletes of all ages, including college athletes, minor league players, and pro athletes. Coaches, trainers, and athletes can utilize the facility year-round, in spite of inclement weather and long hot summer months. The number of rentals and athletes decreases during the off-season due to athletes participating in different sports, other than baseball and softball. Also, numbers will fluctuate when teams are participating in out-of-town tournaments.

E. Ownership Structure The Indoor Training Facility (for baseball and softball) will be a proprietorship. The primary stakeholder of the business is Debrah Ratliff. Prior to the grand opening, a permit will need to be applied for at the local municipality. Once a certificate of occupancy has been issued, a grand opening can be scheduled and an opening date can be published in the local newspapers, social media sites, and the local chamber of commerce.

F. Social Responsibility The Indoor Training Facility (for baseball and softball) will invest in using Young Living essential oils products to eliminate the use of toxic cleaning chemicals. All employees will be required to complete Hazardous Materials and Safe Cleaning online course. Employees will follow a cleaning schedule to ensure the building and equipment are properly cleaned and maintained. A. Examining the General Market According to ESPN Between 2013 and 2018, the number of U.S kids playing baseball and softball combined increased by nearly 3 million, according to annual surveys by the Sports Fitness & Industry Association. The Indoor Training Facility (for baseball and softball) will be the only facility in lower Cameron County. This facility will cater to the residents of Mercedes, Harlingen, La Feria, Harlingen, San Benito, Los Fresnos, and Brownsville, along with surrounding smaller cities. This indoor training facility will appeal to the residents of Hidalgo and Willacy County as well since there are less than a handful of training facilities available in those areas. The nearest indoor training facility is located in Edinburg, approximately 45 minutes away from the proposed location. The existing facilities do not offer rental space nor do their hours of operation accommodate coaches, trainers, and athletes. The training facility will benefit athletes of all ages, including college athletes, minor league players, and pro athletes. Coaches and trainers are limited to practice locations due to limited existing facilities and the long distance to an existing facility. Through personal experience, due to full schedules and limited time frames, availability for a batting cage is rare. With Valley teams participating in travel ball and athletes looking to acquire scholarships, coaches and athletes are eagerly looking for a training facility that will accommodate their schedules and needs. The hours of operation and central location of this training facility will be paramount to the coaches, parents, and athletes. The booking of space will fluctuate due to teams traveling out of town for tournaments and regular-season games are scheduled throughout the week, which reduces the monthly revenue during the months of January through May. Because the location of this facility is in a commercial zone and is an existing structure, one final inspection is required to obtain the certificate of occupancy. There are no zoning or environmental laws prohibiting the opening of this facility.

B. Customer Analysis The Indoor Training Facility will benefit athletes of all ages, including college athletes, minor league players, and pro athletes. Coaches, trainers, and athletes can utilize the training facility year-round, even during inclement weather and long hot summer months, allowing for effective practice of their sport. The hours of operation for the training facility will be 8 a.m. to 10 p.m., seven days a week. According to The Dallas Morning News, The state of Texas ranks with California, Florida, and Georgia for the top high school baseball talent in the country. Participation rates in Texas are nearly 50,000 for baseball and 40,000 for softball. The Indoor Training Facility (for baseball and softball) will cater to the increasing need for skills training on a year-round basis. These participants are all potential customers of the training facility. This facility will have adequate rental space for group coaching clinics, one-on-one skills training, and single athletes to large groups. This price is available for any team that would like to you the batting cages, including the use of office space. Teams must reserve at least one day in advance. Rentals will peak in the months of June through December. Rentals will fluctuate during the months of January through May, due to teams traveling out of town for tournaments and regular-season games are scheduled throughout the week. We expect an 18% rental growth in the first year and a 43% rental growth in the second year. An estimated forty percent of rentals will be on credit. Coaches and athletes that want to establish a long-term relationship with The Indoor Training Facility (for baseball and softball) will be able to rentals on credit.

C. Promotion By providing a quality indoor baseball and softball training environment for athletes of all ages, including college athletes, minor league players, and pro athletes, we hope it will encourage them to return, as well as bring another athlete or coach. Flyers will be distributed at local parks and recreation areas during games and tournaments, post information and promotions on social media sites, and send e-mails to school coaches, little league coaches, and family and friends, in hopes to lure potential customers. Maintenance and replacement of equipment will be maintained. The purchase of such equipment and supplies will be through well-known dealers, such as Academy, Dicks and Sports Facility.

Financial Plan A. Financial Projections To start The Indoor Training Facility (for baseball and softball), the following summarizes where the funds will come from. The projection of personnel is one full-time employee and two part-time employees. The full-time employees will be the Manager, Receptionist, Spokesperson, and accountant. The two part-time employees will help with cleaning, cage reset, clerk duties, and other duties as needed. B. Contingency Plan The Indoor Training Facility (for baseball and softball) is a great investment. There is great potential for fast growth, with experienced and competent staff. There are no unforeseen changes in the growth of baseball and softball that will make our services obsolete. However, there are potential risks such as loss of inventory, damage to building and equipment, and hacking of the company computer. To minimize such risks, the barcoding inventory control will be implemented, and all inventory must be signed in and out using an equipment log. The Indoor Training Facility (for baseball and softball) will purchase yearly commercial insurance, which includes coverage for the building, flooding, hurricane, and inventory. An antispyware and firewall will be installed on the company computer. With good risk management, the business will be prepared and ensure the longevity of The Indoor Training Facility (for baseball and softball). Emergencies occur at any time and all staff must be prepared. Through careful preparation, including practice and training, potential emergencies can be prevented. An Emergency Action Plan will be implemented. See Appendix A. Communication is an essential key to quick and efficient emergency response. All staff will have access to a working telephone line and a list of emergency phone numbers will be available to view at all times. All staff members are required to be CPR, First Aid, and AED certified.