Rookies and Newcomers: The Road to Success

Daily Reconciliation

Source Documents

Type of Entity

Funding Sources

Balance Sheet

Profit & Lost

Cash Flow Statement

Financials Cradle to Grave

Financing and Credit

Type of Entity

• LLC – Simple to Incorporate (Most Common)

• Sub – S– Owner takes a small salary which can be sent

directly to “Uncle Sam” for taxes

• Partnership• Sole Proprietor

Financing and Credit

Funding Sources• SBA• Senior Bank Officers of Local Banks

• Some smaller banks are more aggressive

• Industry Financers• Vendors- stretch out payments• Landlords- leasehold improvements

*Tip-Wise: Strongest negotiating time is before you sign or buy!

Financing and Credit

Start Up/Construction Costs

Total Cost =$796, 074

Equipment & Software $54,000.00Architectural Fees $18,074.00Food Prep Equipment $32,000.00Working Capital $20,000.00Fire Alarm System $25,000.00Fire Extinguishers $1,028.00Lease Deposit (1 Month) $12,996.00Loan Closing $12,710.00Indoor/Outdoor Signage $21,000.00Grand Opening Advertising $10,000.00Initial Inventory & Uniforms $10,000.00Network Hardware, Cabling, Cameras, Entertainment System $15,000.00Liability Insurance Workman's $7,946.00Phone System $6,300.00Installation/Training for arena $6,000.00Preopening Payroll $6,000.00Miscellaneous $1,000.00Lobby Furniture $5,000.00Offi ce Supplies & Furniture $2,000.00Utility Deposits $1,000.00Permit Fees $2,100.00Accounting $1,000.00Consulting $1,000.00

Framing 185,124.00$ Electric 125,200.00$ Plumbing 25,800.00$ Flooring 28,000.00$ Floor Grinding & Sealing 12,668.00$ Party Room Partition 11,375.00$ Doors & Millwork 7,922.00$ Sprinkler 7,335.00$ Glass & Glazing 6,464.00$ Bathroom Partitions 5,690.00$ Door Hardware 4,216.00$ Hardware Installation 2,000.00$ Clean Up & Trash Haul 4,200.00$ Demo 2,500.00$ Deadwood & Blocking 1,395.00$ Concrete Cutting & Chipping 1,275.00$ Roof Curb for Kitchen Hood 895.00$ Skylight Roof 3,998.00$ Misc. Carpentry, Metal, etc. 2,500.00$ Kitchen Door 891.00$ Arena Flooring & Ramps 1,327.00$ Metal Detail Fabrication 6,765.00$ Ceiling Paint Clean Up 628.00$ Contractor 78,852.00$

Financing and Credit

Source Documents

*Tip-Wise: Owners should spot check the total sales from the source documents with the amount recorded on the Daily Reconciliation below.

• Register Reports• Party Software Reports• Credit Card Reports

• Cash Transfer Box Log• Petty Cash Log

Financing and Credit

Daily Reconciliation• POS (Point of Sale) software that categories

your Gross Sales by cash, credit, and gift card.

• This reconciliation should provide you with your expected cash deposit.

*Tip-Wise: Owners should check the cash deposits against the Daily Reconciliation.

Financing and Credit

Profit & Loss

What you own versus what you owe and the difference or “Net Equity.”

Statement of Cash Flow

Balance Sheet

• Revenue, Expenses, and the “Bottom Line”

• Changes on your balance sheet are the basis for the net increases or decrease in your cash flow, not the P&L’s bottom line.

Financing and Credit

Profit & Loss

Financing and Credit

Cash Flow

Financing and Credit Balance Sheet

Financing and Credit

Attractions Financial Analysis

2 yrs

Games per hr

No. of players

Length of Play

Player Cap/hr

Avg Ride Cost

Max Potential Revenue/hr

Payroll / hr @$8.5 avg

Sq ft needed Cost new

Total Plays

Plays/mth

plays/wk

plays/wk

Lasertag & Arena (40 Packs/ 8 min games) 5 40 8 min 200 5.00$ 1,000.00$ 17.00$ 6000 210,000$ 42,000 3,500 808 404 Maze (50 pp/15 min each) 4 50 15 min 200 5.00$ 1,000.00$ 8.50$ 4600 100,000$ 20,000 1,667 385 192

Bumper cars (20 seats/12, 4min rides) 10 20 4 min 200 5.00$ 1,000.00$ 8.50$ 1500 185,000$ 37,000 3,083 712 356

zip line (double line) 2 min 60 6.00$ 360.00$ 25.50$ 2200 80,000$ 13,333 1,111 256 128 9 hole mini golf (1.5 min/hole/player) 1 24 20 min 60 5.00$ 300.00$ -$ 1800 90,000$ 18,000 1,500 346 173 Water balls (4 balls, 4 min ride) 10 30 4 min 40 6.00$ 240.00$ 17.00$ 250 12,000$ 2,000 167 38 19 Ropes course 30 15 min 30 6.00$ 180.00$ 17.00$ 1500 100,000$ 16,667 1,389 321 160 Big bass 60 1 1 min 60 1.00$ 60.00$ -$ 15 15,000$ 15,000 1,250 288 144

Payback period 1 yr

Financing and Credit

Size Does Matter• 10,000 Sq Ft or less, best if owner operated

• Employee• Larger chain competitors• International buyers• Check with vendors, insurance, & financing companies • Industry insiders – Good source

Exit Strategies

Daily Reconciliation

Source Documents

Type of Entity

Source of Funding

Balance Sheet

Profit & Lost

Cash Flow Statement