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Business Plan

April 2014

of 21 - Private and Confidential

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ContentsExecutive Summary

The Company

The Market Opportunity

The Strategy

The Company Vision

Community Development

Financial Requirements

Mini Golf Israel Business Concept

The Themed Course

The Gift Shop

Peak Seasons

Snack Shop

Special events / Occasions

Company Objectives

Company Vision

Mission statement

Market analysis

Competitive analysis

Competition

Advantages and disadvantages

Management and organization

Key personnel and management

Marketing

Marketing Objectives

Promotional strategy

Tactics

SWOT Analysis

First year marketing plans

Community development project

Operations procedure

Mini golf course

Cafeteria

Site options

Financial Data


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Executive SummaryThe Mini Golf Israel business concept is to provide a branded chain of franchised venues that offer both entertaining and educational activities such as batting cages and themed mini golf courses for the enjoyment of the whole family. The venues will encourage physical and social activity for all ages and will be situated in population centers throughout Israel.

As of July 2013, the project has progressed and we already commenced with the application for municipal permission to build the flagship branch on a 3000 square meter plot in the Ra’anana Industrial zone. We have the go-ahead in principle from various municipal heads (chief engineering, chief architect) as well as a tentative agreement with the landowners.

The CompanyThe concept of Mini Golf Israel is the brainchild of Grant and Daniella Crankshaw who immigrated to Israel from South Africa in 1997. Daniella and Grant are married and run an independent marketing consultancy for a range of clients in the Israeli high tech industry.

Daniella is a Drama School graduate who also managed to achieve the second highest score in the South African national marketing exams. She has worked in marketing since 1988 for a range of companies including Drake (South Africa), Electronics Line, Comverse, Metrolight and Pitango Ventures. She became an independent consultant in 2006. Grant joined her in 2010 as an account manager.

Grant is a qualified computer programmer and cable network technician. Positions he has held include being the business development manager for a vehicle tracking and security company. He has spent most of his working life as a self-employed construction and home repairs expert in both South Africa and Israel.

Grant and Daniella combined forces in 1993 to manage and operate a computer cabling company together called Crankshaw Cabling. As IBM’s sub-contractor for a national upgrade project of various national banks, the company was highly successful. In 1997, they sold the business and moved to Israel.

The synthesis of creativity and business acumen as well as years of experience working together in multiple fields, makes Grant and Daniella a formidable and powerful team to lead the company.

Mini Golf Israel will be registered as a limited company as soon as the finance has been raised for the flagship branch. The company will control the activity and expansion of the brand through branches all over Israel.

The Market OpportunityThe family unit and interaction are extremely important to the vast majority of Israelis. As many of them live in apartments and the weather is frequently very pleasant, most Israelis are accustomed to socializing outdoors in parks, in the malls or on the beach.


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Israel is a complex country that has been built fast and efficiently. Having been raised with numerous challenges as a growing nation, the mindset of many of the elder Israeli’s is that of survival and austerity. It is our opinion that this has been the leading reason for the neglect and ‘fly-by-night’ approach taken by many players in the Israeli leisure industry.

In recent years both the security and economic situation has improved significantly. This has caused a situation where family entertainment venues are being inundated with customers. During the summer, amusement parks and waterparks are full, as are bowling alleys, cinemas, and arcades during the rest of the year. In order to take advantage of this opportunity and satisfy a growing market demand for family entertainment, we propose opening family fun parks that will feature mini golf parks and other activities that cater to the whole family - irrelevant of age or physical ability.

The Sharon area is the site of the pilot branch (North of Tel Aviv) as it has a high percentage of Anglo-Saxons who are already familiar with mini golf and who also demand a higher standard of venue. Many of the residents are in the middle to upper income group and are highly family oriented.

The target market for Mini Golf Israel is broad as the game of mini golf itself is multi-generational. It is one of the few physically active games which grandparents can play with their grandchildren.

The StrategyThe concept of Mini Golf Israel is unique in Israel as it plans to provide high quality venues for families to interact, have fun and relax. While there are many bowling alleys, cinemas and water parks in Israel, none of them provide a game like mini golf that the whole family can play together. Everyone we have spoken to about the project, especially parents, have been excited about the idea of playing a game that will keep everyone distracted from their electronic devices and engaged as a family.

The initiators of this project believe the marketing and branding of the project to be an essential key to its success. A highly sophisticated presales marketing plan, official opening of the venue and ongoing marketing activities and strategies have been developed.

The initiators of the project are both highly experienced marketing professionals in the high tech industry. The marketing campaign will rely heavily on social networking on the internet as well as traditional media such as newspapers, radio and TV. We are confident that we will succeed in leveraging the novelty aspect of the venue, and the high standard of the course and theme presentation to attract the media’s attention and win highly valuable national exposure through newspaper articles, TV interviews and radio announcements.

The Company VisionThe challenge of Mini Golf Israel is to provide the Israeli public with quality leisure entertainment that will raise their expectations while offering them a fun and educational experience. The unique venues will allow families to interact and enjoy themselves without


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the ‘noise’ and distraction of TV and computer games. The venue will nurture and encourage interaction and healthy competition. Mini Golf Israel is committed to providing its customers with an experience that is memorable and exciting.

By its very nature, the Mini Golf Israel venues are social focal points. By providing communities with a safe and fun place for families and friends to interact, Mini Golf Israel is encouraging social unity and understanding.

Mini Golf Israel is committed to the concept of giving back to the community and would therefore contribute a percentage of profits to local charities. Morning hours will be allocated to hosting charitable organizations such as retirement centers or groups who assist the physically challenged who would not normally be able to afford to come and play. Group rates and events will reduce the financial burden on big families while still providing many with fun memories. Additionally, Mini Golf Israel plans to hold regular special events to raised money for a range of charities such as ‘Reach for a Dream’ for example.

Financial Requirements Mini Golf Israel is seeking to raise NIS 3.4 million shekels in funds. The funds raised will establish, finance and sustain the company until such time that the project is generating a profit.

Through sales from the various avenues of income, the pilot venue is projected to generate revenue of NIS 3.6 M in 2014, NIS 4.8 M in 2015, NIS 5.3 M in 2016, NIS 5.8 M in 2017 and NIS 6.0 M in 2018.

Once Mini Golf Israel succeeds in raising the required capital, it is believed that no further funds will be required. Mini Golf Israel expects to become the leading mini golf venue in the Sharon area.

Mini Golf Israel Business ConceptThe Mini Golf Israel business concept includes renting visitors a golf putter and ball to play a round on an 18 hole mini golf course. The games will take approximately 45 minutes to play. The themed course will closely resemble ‘Disney style’ attractions and the extraordinary user experience will translate into visitors telling their friends and returning to play again. Visitors will be invited to purchase refreshments afterwards.

The venue will be situated in easy driving distance of the Ra'anana North junction on route 4, one of the busiest highways in Israel.

Visitors will be welcomed at the reception where they will pay and receive their putters, balls and score cards. After playing a round, the visitors will return their putters to the reception. The balls will be collected automatically at the 18th hole and returned in batches to the reception. Players will be responsible for keeping their own scores.


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The main venue will include birthday rooms to host groups of up to 40 children for private birthday parties. These groups will all play a round of mini golf and then enjoy refreshments in the private party areaThe venue will have 24 hour security and will be fenced to deter intruders while at the same time blending into the theme of the campus.

Note: Easy access for the disabled will be provided throughout the complex and courses.

The Themed Course The general theme of the pilot project will be the Old Testament. Each hole will be designed to reflect specific famous biblical events in novel and interesting ways. This will make the course extremely attractive and stimulate the imagination of everyone who attends. The 18 hole designs will include episodes such as Genesis, the parting of the Red Sea, David and Goliath, and more. The theme will be done tastefully so as not to offend anyone. All of the graphics and modelling will be in a cartoon style giving the course a fun and upbeat feel.

Shade and waterproof structures over the entire course will ensure the summer sun does not discourage visitors during the summer days and that the 22 days of annual rain that we have will not deter operations.

Outside lighting will be used to dramatic effect, highlighting each hole and various select sections of the designs and decor. Sound effects will also be added at certain holes to enhance the experience such as elephant and monkey calls at Noah’s Ark and lions roaring at Daniel’s cave. Education boards/digital displays will be positioned before each hole offering a brief description of the individual holes and any interesting or relevant biblical references.

The Gift ShopThe gift shop will sell branded items that relate to the characters and stories of the Old Testament theme. Other Israeli souvenirs and Mini Golf Israel branded goods will be on sale. This will provide additional income and is an integral part of the venues national branding and marketing concept.

Peak Seasons July and August are the main summer vacation months for Israelis. Due to the oppressive heat, many youngsters (12 – 18) sleep most of the day and spend their nights and early mornings socializing. For this reason, we expect the Mini Golf Israel venue will be operational for up to 20 hours a day (possibly 24/7) for the entire two month summer holidays.

During the other holidays when schools are closed such as Hol Hamoed Sukkoth, Chanukah, Purim and Hol Hamoed Pesach, we expect increases in attendance.

The venue will only be closed for one day of the year – Yom Kippur.


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Snack ShopMini Golf Israel will have two snack shops serving mostly light meals that will be dairy based (halavi). One snack shop will be kosher and closed on the Sabbath, while the other will not be considered kosher due to the fact that it will operate on the Sabbath.

These shops are a great revenue source of the venue and compliments the family experience. The snack shop will be based on the traditional ice cream deli concept. The menu will be fairly simple and include cakes, doughnuts, pancakes, waffles, served with cream or ice cream as well as frozen yogurts and slushies. Coffee, tea and soft drinks will also be available. No alcohol will be allowed on the premises. Smoking areas will be provided.

Seating will it be available for 150 people on the deck which will have umbrellas and fans. Patrons will order and collect the food themselves at the counter in the traditional cafeteria style service.

Special events / OccasionsThe Mini Golf Israel marketing team will take advantage of every special event such as New Year’s Eve, Valentine’s Day, Mother’s Day, Father’s Day, Independence Day, etc. to offer discounts and host celebratory events. A full operations program will be devised with these occasions in mind.

Mini Golf Israel will be offered to private as well as corporate clients. Hosting birthday parties and Bar/Bat Mitzvah parties is a very lucrative revenue stream and groups will be booked ahead of time at special group rates. Mini Golf Israel will also be highly suitable for corporate fun days and team building events.

Mini Golf Israel will also leverage the educational aspect of the themed course to engage schools and offer them school trips at discounted rates. This type of activity is already very common amongst the schools and from initial enquiries, we understand the idea will be well received by the education department and various schools.

International and national mini golf tournaments will serve to put the Israeli mini golf scene on the world map. International players will be hosted. It will also serve to expose Israel and the progress it is making as a modern and democratic country. One of Mini Golf Israel’s objectives is to encourage more people to take up the sport of golf.

Company Objectives● Creative and operate a pilot venue to demonstrate the concept of a themed mini

golf park to the Israeli public

● Establish a reputation for high quality family entertainment

● Leverage the marketing and popularity of the Mini Golf Israel pilot venue to establish a strong national brand


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● Reinforce the brand by investing in the building of additional branches in the larger population centers around the country

● Investigate and design innovative and interesting themes for each individual course

● Become the leading family leisure establishments particularly in the Sharon area

● Strive to become an integral part of the communities within which each venue is based and build a loyal following by contributing to local charities and community initiatives

Mission statementMini Golf Israel will become the focal point of the family leisure industry in Israel. By offering an exciting and memorable user experience, supported by excellent customer service, we plan to foster a large and loyal brand following. We are dedicated to providing the latest and greatest forms of family entertainment and keeping abreast of the newest trends and attractions. Mini Golf Israel will achieve this through quality construction, innovative designs, customer centric service, unbridled enthusiasm, and proactive marketing and business strategies.


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Market analysis

Market overviewIsrael is a family oriented society and views the family as its basic unit. Israeli parents focus a huge amount of attention on their children and go to great lengths to keep them entertained and distracted. Good examples of this behavior include the trend to hire clowns or entertainers for children’s birthdays. Setting up tables and games in public parks is another common choice to celebrate children’s birthday parties.

Due to the fact that the majority of Israelis live in fairly small apartments without gardens, it is very common for Israelis to go out to coffee shops, parks or the beach. With only 22 to 30 rainy days per year this is fairly common activity.

Family entertainment venues in Israel range from ten pin bowling and cinemas to water and amusement parks. The main problem with many of these activities is that they do not cater to the whole family. Ten pin bowling for example is physically challenging and excludes the elderly or physically challenged. Watching films or TV is not really a socially interactive activity. Amusement parks are expensive and regularly over crowded as are the water parks that are only open for the main summer holidays.

Target markets and dynamicsOur target market is quite simply everyone. The core target market for Mini Golf Israel is the younger generations from the ages of about 8 till 16, but mini golf appeals to every age group. The largest target market for Mini Golf Israel is the population of the Sharon region where the pilot project is planned to be located. The location of the pilot venue is based on the following factors:

● The Sharon region boasts a high percentage of upper income families

● There is a high percentage of Anglo-Saxons familiar with mini-golf

● There is only one other mini park in the area that is run down and in disrepair

● The local municipalities are supportive of venues catering to their residents

The Sharon region is the most densely populated area in Israel and will be the main focus of the Mini Golf Israel branch network growth.

Israelis have been exposed to the outside world with increased overseas travel and are now demanding a similar western lifestyle of instant gratification and endless variety. They are constantly seeking something new and exciting.

Although service standards are rising in Israel, there is still room for improvement. There is also an increasing demand for high standards of service from many Israelis, particularly among the upper income groups.


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Many Israeli families particularly in the Sharon region are two income households where the idea of family activities is especially attractive to parents who regularly battle to get their children away from their TV’s and other electronic devices.

Competitive analysisThe concept of Mini Golf Israel is unique in Israel as it provides an entertaining activity that is suitable for every member of the family. While there are many other forms of family entertainment, none of them combine mild physical activity with a competitive, interactive sport. Mini golf does not split the family into physically capable groups or exclude anyone who is unable to compete. Anyone can play. It is however, vital that the competition, as it exists today, be examined for the purposes of the business plan.

They are only about 3 to 4 other mini golf parks in Israel today. These parks are examined in more detail in the section below. It is possible to state after much research that the mini golf market in Israel has been sorely neglected by poor marketing, management and maintenance. The course themes are minimalist in character and uninspiring. There is virtually no marketing effort and many venues survive on income from alternative attractions such as trampolines. We have reached the conclusion that they are not as successful as they could be because they all underestimate their target audience and cater mainly to small children (6 -12). The older generations are not catered to with regards the theme or the technical challenge of the actual game. This means that only little kids play the game, fracturing the family unit, making the experience less enjoyable. For exactly this reason, many Israelis assume that mini golf is a game for children.

Golf as a sport, is still in its infancy in Israel due to the fact that land is so expensive and growing grass in a desert is a challenge. Most Israelis therefore have not had the opportunity to play golf. The vast majority do not even understand the rules of the game.

CompetitionRamat Hasharon – Mini Golf

A small course of approximately 500 square meters with a confusing animal theme. Many of the figurines are old and faded, and the putting surfaces uneven and not maintained. The course has been in existence for over thirty years and offers trampolines and a small snack bar. Although the venue is on a busy traffic intersection, there is no parking area and the most common attraction seems to be the trampolines.


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Mini Golf Park Yarkon (closed)

Israel’s first mini golf park was established in 1985 and was never updated until it closed in 2005. It was a roaring success from the day it opened and slowly drifted into obscurity. No marketing efforts were launched to save the park and most of the events held there over the final years were corporate affairs and the mini golf course itself was irrelevant to the event.

Mini Golf Farod

A course was built on kibbutz Farod near the Sea of Galilee. The course has no discernible theme and is technically very simple to play. It is uncertain if the course was built as a business enterprise or not. There is virtually no promotional activity surrounding the course apart from a web site. We assume it was built for the entertainment of the residents.

Advantages and Disadvantages

Advantages

● Themed course will be ‘first of its kind’

● Physical and fun activity

● Suitable for every member of the family

● Courses can be designed to fit any size venue

● Exciting themes will generate return traffic

● Technically challenging holes

● Educational themes will attract school class trips

● Venues require minimal staff to operate

● Low operational and maintenance costs

Disadvantages

● Have to overcome Israeli 'myth' that mini golf is a children’s game

● Previous venues are not well attended

● Challenge of introducing new game to Israelis


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● Competition will increase when venue succeeds

● Today’s 'digital' children may consider game too simple

● World politics may affect MGI from holding international tournaments

● High rentals in Gush Dan region

Management and organizationOrganizational structure

During the construction stage of the venue the company will employ a site manager to oversee and manage the construction and implementation of the courses and complex. Daniella will be responsible for the initial marketing and public relations campaign. Two months prior to the opening, staff will be screened and trained in all the basic skills they will require. All staff will have to be onsite one week prior to the opening to prepare for the launch event of the venue.

Salary structures are outlined in the financial section of the plan. Mini Golf Israel plans to provide standard employee benefits in accordance with Israeli labor laws.

Chief executive officers

Daniella Crankshaw

Daniella won second place in the PR Institute’s ‘Advanced Principles of Public Relations’ national examination in 1989. She achieved her Masters in Dramatic Art at the University of the Witwatersrand and went on to perform in various productions in the Johannesburg area.

Daniella’s business career began in South Africa as an assistant PR agent for Drake International. She worked her way up to become an account manager for various clients.

Seizing an opportunity, she joined her husband to establish a computer networking company. After two years of operation, the company succeeded in winning a national contract from IBM South Africa. Just one year later, the company had become the prime sub-contractor for the IBM-ABSA network upgrade project. At its peak, the company employed 36 installers and technicians, installing and testing networks across South Africa.

Since moving to Israel, Daniella has been involved mainly in the high-tech industry as a self-employed marketing consultant. She holds the position of director of marketing for various retainer clients who deal with the international market.

Grant Crankshaw

Grant was selected to represent South Africa as an exchange student to Argentina and Chile after completing his Matric in 1982. On returning to SA, he studied Dramatic Art and completed his national service. After many years as a building contractor, he established a business with his wife (see Daniella Crankshaw).


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After selling the business, he and his family moved to Israel where he established a reputation in the Sharon region as a reliable builder and handyman. Grant also served with various start-up companies in the following positions such as customer liaison (Odigo) and international business development (Cellocator). He has been investigating and planning this mini golf project for the past four years.

Key personnel and managementThe venue will be managed by 2 branch managers who will work in shifts to ensure that the tellers, serving staff and maintenance crews are doing their jobs. The marketing and sales management, as well as financial management will be handled by the CEO’s. A basic outline of the respective duties is listed below:

The two CEOs will also undertake some of the venue management responsibilities and branch manager training, until such time that the business demands a separate and full-time professional to fill the position.

The CEO’s will work in tandem with the construction crews throughout the entire build and preparation stage of the venue.

Branch manager – To manage to daily operations of the venue and the staff, to ensure all systems are operational and that service levels are maintained. This person will be expected to assume certain tasks to assist the staff during peak times. Must have excellent people skills.

Tellers - To handle the selling of tickets, as well as the distribution and collection of clubs. Teller must be capable of operating a till and be very patient to handle children and groups of people in an agreeable manner.

Serving staff - will be involved in the collection, preparation and selling of the snacks. Must be capable of operating a till and be very patient to handle children and groups of people in an agreeable manner.

Marketing and sales manager: responsible for all aspects of sales and marketing of Mini Golf Israel complex, strategic planning and implementation and business development. Should have extensive experience in sales and marketing management. Experience and/or exposure to the theater environments are essential. Must have excellent interpersonal skills.

Financial controller: comprehensive financial responsibility including bookkeeping and accounting, project management and control, budget monitoring and control. Commercial responsibilities for contract and company operations, contact person with legal consultants & external accountant. Operation and administration responsibilities. Should be at least at the CPA level.

Marketing


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A sophisticated marketing plan will be put into action, starting during the construction phase of the Mini Golf Israel venue. Utilizing social media, local newspapers, radio and TV, the venue will be publicized for its uniqueness and spectacular designs. The focus will be on the family centric value if the venue and the key message will be that grandparents can play with their grandchildren.

There are definite selling points that the marketing strategy will emphasize on a continuous basis and these are:

a. Family centric – the entire family can enjoy themselves together.

b. Inexpensive fun – ticket prices are not expensive.

c. Entertaining – the game is very entertaining for all ages.

d. Educational – themes will have an educational value.

e. Quality of service – trained staff will maintain a high level of service.

Daniella Crankshaw, the CEO of Mini Golf Israel, is a highly experienced marketing professional in various business sectors. Daniella will be involved in all the marketing strategy planning and execution.

Marketing Objectives● Build a strong brand awareness of Mini Golf Israel throughout Israel

● Establish Mini Golf Israel as the leading provider of family entertainment venues

● Establish an image of the Mini Golf Israel venues as caring, safe and well serviced

● Create an awareness of Mini Golf Israel’s growth strategy and target locations for future branches

● Establish clear communication channels with patrons via social networking sites

● Provide consistent messaging and promotion of Mini Golf Israel’s goals and missions

Promotional strategyIn order to realize these objectives, a promotional strategy will include:

● Developing marketing communications campaigns built around Mini Golf Israel as the innovative creator of venues that serve the need of families and Israeli society

● Promotions and sales efforts linked to every holiday, festival and special event emphasizing the five selling points

● Developing the “whole family can play” statement and supporting it with articles, adverts and collateral to reinforce the message

Tactics


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An integrated mix of tactical devices will be incorporated to deliver the promotional strategy.

● Collateral

● Marketing Brochure

● Posters

● Press kits

● Sales kits

● Multimedia presentation

● CD biz cards

● Giveaways

● Direct marketing

● Discounted Game Coupons

● Training

● Sales and service training

● Public relations

● Media – press, radio, television

● Community development program

● Pre-Opening publicity

● Complex Launch

● Press releases

● Website

● Social Media & Networking

● Facebook pages for company and another for every venue

● Twitter account for company and each branch

● WhatsApp accounts

● Linked-In group

● Image branding – Merchandising

● Giveaways of 21 - Private and Confidential

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● Subscriptions & membership programs for Shabbat observant patrons

● Community development programs

SWOT Analysis

Strengths● Mini golf is a multi-generational, family oriented game

● Creative and artistically themed courses is a concept that is totally unique in Israel

● High potential for growth of the future chain of venues

● Founders of the project are equally skilled and experienced in both the creative arts, marketing and business, making for a powerful combination

● Venues provide entertainment and education simultaneously

● Wide variety of activities aimed at increasing economic revenue

● The location of the pilot venue is central to our core target audience

● The venue will become a tourist landmark

● A strong sense of charity and need to “give back” to the community which supports its business efforts

Weaknesses ● Due to Mini Golf Israel being a new concept, the target audience will need to be

introduced to the idea and convinced of its inherent value through actually experiencing it

● Customer flow is limited to two courses which may result in congestion and dissatisfied customers

● Property rentals in the Sharon area are high

● Attendance is strongly influenced by school hours

● As an outdoor venue, the summer heat may dissuade patrons from coming during midday and afternoons

● Children will need convincing to leave their computers and TV games

Opportunities● There are currently no themed mini golf parks in Israel

● Can offer discounts to old age patrons and the mentally disabled to come play during the quiet morning hours

● Offer group discounts to schools to bring their classes for educational, fun day trips


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● Involvement in international\national tournaments

● Create a generation of Israelis who appreciate and enjoy golf

● Potential to become provider of themed mini golf parks to international market

Threats ● Bureaucratic delays, license applications and political maneuvering

● High traffic venues, by law, have to include security - an extra cost

● Will gradually become a threat to the established amusement and water parks

● Religious groups may attempt to inhibit activity on certain holidays and the Sabbath

First year marketing plansThe first year marketing plan will be very specific to brand the venue and to meet the company’s goals. It will be comprised of three separate campaigns.

● Pre Sales

● Launch

● Continued promotion

Pre Sales

Six months prior to the launch the presales marketing plan will be put into effect. This will comprise of a massive campaign to generate curiosity and excitement in the project. The core target market will be made aware of the new family venue being planned in their area. It will be described as a unique family experience. A crowd funding project will raise public awareness and begin the fund raising effort. A strong public relations campaign will dominate the marketing plan, keeping the public informed of progress and building expectations and excitement about the project during the entire construction period.

Launch

A high profile event will be planned for the opening of the venue. Huge exposure will be given to this event on all the local and national media. People attending the launch will be by invitation only and include major figures involved in the project, community leaders, political figures, social and entertainment figures and press from both the printed and visual mediums. The event will be catered and will include an evening of entertainment, fireworks and a ribbon cutting ceremony by an international celebrity. The objective of the launch is to attain as much positive media coverage as possible and generate a positive attitude towards the venue and its planned activities.

Continuing promotion

Ongoing marketing of the venue will concentrate on two aspects – continual positive media coverage and branding and promotion of special event and activities in support of charities


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supported by the venue. The marketing plan will be frequently updated and redefined to keep the focus on continually improving the customer experience.

Community development project One of the main objectives of Mini Golf Israel is to become a focal point for the cultural activities of the community within which it operates. The initiators of this project firmly believe in giving back to the community which supports them.

The initiators plan to address challenges in the local communities with proactive programs. Integrating mentally handicapped employees into the business and employing the elderly as staff are two examples. These programs will be aimed at contributing to society in various ways. It is our serious belief that businesses should support and service the community in which they exist.

By their very nature, Mini Golf Israel venues will become community centers. For this reason we advocate the development of community programs and encourage working with the community members on any projects they deem relevant.

Mini Golf Israel takes this sense of community even further and wishes to create a special program for physically and\all mentally challenged children. This would entail various sessions per week where these children will be allowed to play and enjoy themselves free of charge.

Additionally, Mini Golf Israel will hold biannual competitive events for special needs children and some of the proceeds and all donations will go to children’s charities such as “Save the Child” and “Reach for a Dream”, among others.

Operations procedureThe overall operation of the venue will be overseen by two site managers who will work in tandem to handle the day to day running operations, scheduling of shifts and troubleshooting.

The Mini Golf Israel venue will operate 7 days a week, 364 days per year. The only day it will be closed is Yom Kippur, the Day of Atonement. Operating hours will vary slightly to suit the seasons:

1. Summer – 10H00 to 04H00

2. Winter - 12:00 AM to 24H00 (rain permitting)

Mini golf courseAlthough the mini golf course is out-door, there will be covers to protect the course and patrons from the rain and cold. These same covers will provide shade during the hot summer days.


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The operation of the mini golf course will be handled by the staff at reception who will sell tickets and distribute the putters, balls and score cards to players. When at all possible, the players will be grouped into groups of four – the most effective grouping for mini golf courses. The employees will also be responsible for monitoring the players on the course to ensure that they continue moving and do not disrupt the flow of play. Once the games are over, patrons will return the putters to reception. If possible, putters will be fitted with RF cards which will trigger an alarm if they are removed from the premises.

Staff at the mini golf course will work in shifts and rotate every 8 hours to maintain seamless operation.

CafeteriasThe operation of the cafeterias will be synchronized with the operation of the mini golf park. Cafeteria staff will be responsible for receiving and processing deliveries, preparing and selling snacks and operating the till. Staff at the cafeterias will work in shifts and rotate every 8 hours to maintain seamless operation.

The kosher cafeteria will be closed on the Sabbath and server only halavi meals. The non-kosher cafeteria will operate on the Sabbath and serve a wider range of meals.

The vast majority of food and snacks in the cafeterias will be prepared, packaged and delivered, ready for sale. Preparation on site will be minimal and involve simple operations such as heating waffles, making pancakes, popcorn and serving ice creams.

All snacks will be served in biodegradable, disposable containers and cups, eliminating the need for washing dishes.

Patrons will select and purchase their snacks at the counter in a traditional cafeteria style queue. Staff will be on hand to restock the displays when necessary and prepare the necessary snacks on demand.

Site optionsAt present we are in the process of acquiring municipal permission to operate a venue in the Ra’anana Industrial Park. We have a tentative agreement with the property owners. The chief architect and engineer of Ra’anana municipality have both given their blessing to the project so we expect no delays in the approval process. The property we plan to rent is a 3000 square meter plot of land situated next to the Ra’anana Holmes Place Gym building, a central location on Weissman street - an extremely busy road with easy access to the national highway number 4.

Jerusalem

We have presented the Mini Golf Israel concept to various private individuals in Jerusalem, who are very interested in being involved in setting up Mini Golf Israel venues in the city. These individuals recognize the profit potential of such fun venues in Jerusalem and await the establishment of the pilot branch to set the template for future branches.


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Modiin

Mini Golf Israel has been offered a partnership as co-owners on a branch in Modiin, a city that is growing very rapidly.

Rehovot

The mayor and council members were very excited about a presentation we gave them. We foresee no problem with arranging a municipality sanctioned property in the Rehovot area.

Beer Sheba

A rapidly growing city with many new Malls and neighborhoods is a prime location for a mega park with multiple attractions.

Financial DataCapital Equipment & Supply list summary

PML statement

Cash flow

Pro forma income projections

First year summary – detail by month

Summary of review

Assumptions upon which projections were based

The following assumptions were used to construct financial projections for Mini Golf Israel:

● Revenue stream is generated from tickets to mini golf course, batting cages and sales of snacks from cafeteria and merchandising.

● Ticket price per mini golf game is 40 Shekels

● Daily average minimum attendance is projected to be 325 patrons

● Cafeteria sales are projected to be 20% of patrons coming to play mini golf

● 35% of cafeteria costs are attributed to purchasing prepared meals and ingredients

● Birthday groups are capped at 400 children per month or 10 parties

● Salaries are increased by 10% per annum

● Key expenses were increased every year.

Financial Objectives of 21 - Private and Confidential

21

The object of Mini Golf Israel is to repay any outstanding loans and secure the shareholders investments, while establishing solid operating procedures. Mini Golf Israel is expected to become profitable in year 4, having returned the initial investment during that time. Mini Golf Israel requires an investment of approximately 3,440.00 shekels. The funds will be used for is the establishment of the pilot branch plus operating capital for the first year [pre-launch and year one].

The investment will be solely made in the pilot branch and will provide equity for the venue.

The long term objective will be to finance the establishing of multiple branches that will be built by Mini Golf Israel subcontractors who will become proficient in venue and course building. The new franchise branches will adopt the effective mode of operations that will be established at the pilot site.


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