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Business Plan for Ice-Hockey Center

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Business Plan for Ice-Hockey Center Saimaa University of Applied Sciences Faculty of Business Administration, Lappeenranta Degree Programme in International Business Ilia Shtengelov Business Plan for Ice-hockey Center Thesis 2017 Abstract Ilia Shtengelov Business Plan for Ice-hockey Center, 96 pages, 1 appendix Saimaa University of Applied Sciences Faculty of Business Administration, Lappeenranta Degree Programme in International Business Thesis 2017 Instructor: Lecturer Pekka Mytty, Saimaa University of Applied Sciences The purpose of the study was to develop a business plan for an ice-hockey center in Finland to be implemented in the future. The theory related to a business plan concept is explained in the beginning. Afterwards, business plan was created according to the outline including strategic, marketing, financial and risk management plans. Apart from that, marketing research was conducted, which is the basis of a marketing plan. The information was gathered from the literature and Internet sources. Author’s experience and knowledge in the field supplemented empirical part, which was mostly done according to in-depth interviews and observation data. In-depth interviews were conducted with General Manager of TUTO Hockey club, two players from Junior Hockey League and a coach from SKA St. Petersburg Academy. Financial plan was designed according to International Ice Hockey Federation guide and the writer’s forecasts. As a result of this thesis, a business plan for ice-hockey center was developed. Business plan is a tool for the author, which represents how the project should be developed during implementation stage. Moreover, this business plan is assumed to be delivered to potential investors. Keywords: business plan, ice-hockey center, ice-hockey infrastructure, sport marketing 2 Table of contents Acknowledgements ............................................................................................. 5 Glossary .............................................................................................................. 6 1 Introduction ................................................................................................... 7 1.1 Ice-hockey from the beginning ............................................................... 8 1.1.1 History of ice-hockey in Finland and Russia .................................... 8 1.1.2 Business nature of sport .................................................................. 9 1.2 Objectives ............................................................................................ 11 1.3 Delimitations ........................................................................................ 11 1.3.1 Focus on Finland and Russia ........................................................ 11 1.3.2 Time .............................................................................................. 12 1.3.3 Research methods ........................................................................ 12 1.3.4 Theoretical framework ................................................................... 12 1.3.5 Business plan ................................................................................ 12 1.3.6 Main services ................................................................................ 13 1.4 Limitations ............................................................................................ 13 1.4.1 Finances ........................................................................................ 13 1.4.2 Time .............................................................................................. 14 1.4.3 Right essentials ............................................................................. 14 1.5 Research question ............................................................................... 14 1.6 Research method ................................................................................ 14 1.7 Structure of the thesis .......................................................................... 15 2 Theoretical framework ................................................................................ 16 2.1 Business plan ...................................................................................... 16 2.2 Outline of business plan....................................................................... 17 2.3 Executive summary ............................................................................. 18 2.4 Strategic planning ................................................................................ 18 2.4.1 Mission and vision ......................................................................... 18 2.4.2 Strategic planning tools ................................................................. 19 2.5 Marketing Research ............................................................................. 22 2.5.1 Types of marketing research ......................................................... 23 2.5.2 Marketing research process .......................................................... 27 2.6 Marketing plan ..................................................................................... 28 2.6.1 Market analysis ............................................................................. 30 2.6.2 Products and services ................................................................... 31 2.6.3 Marketing strategy ......................................................................... 31 2.6.4 Pricing strategy.............................................................................. 34 2.7 Financial plan ....................................................................................... 37 2.7.1 Income statement .......................................................................... 38 2.7.2 Cash-flow analysis ........................................................................ 39 2.7.3 Balance sheet ............................................................................... 40 2.7.4 Breakeven analysis ....................................................................... 41 2.7.5 Sources and use of funds .............................................................. 42 2.7.6 Startup costs ................................................................................. 42 2.8 Risk management plan ........................................................................ 42 2.8.1 Risk categories .............................................................................. 43 2.8.2 Stages of risk management ........................................................... 45 2.9 Organizational plan .............................................................................. 49 2.10 Conclusion to theoretical framework .................................................... 49 3 Business plan ............................................................................................. 50 3.1 Executive summary ............................................................................. 50 3 3.1.1 Marketing research ........................................................................ 50 3.1.2 Marketing strategy ......................................................................... 50 3.1.3 Financials ...................................................................................... 51 3.1.4 Risk management ......................................................................... 51 3.2 Business idea description .................................................................... 51 3.3 Industry description .............................................................................. 52 3.3.1 Company description ..................................................................... 52 3.4 Strategic planning ................................................................................ 53 3.4.1 Mission and vision ......................................................................... 53 3.4.2 PESTLE analysis........................................................................... 53 3.5 Marketing research .............................................................................. 57 3.5.1 Results for Finnish ice-hockey clubs ............................................. 58 3.5.2 Results for Russian ice-hockey clubs ............................................ 58 3.6 Marketing plan ..................................................................................... 59 3.6.1 Market analysis ............................................................................. 60 3.6.2 Products and services ................................................................... 64 3.6.3 Marketing strategy ......................................................................... 65 3.6.4 Pricing strategy.............................................................................. 67 3.7 Financial plan ....................................................................................... 67 3.7.1 Startup costs ................................................................................. 67 3.7.2 Income statement .......................................................................... 71 3.7.3 Break-even point analysis ............................................................. 71 3.7.4 Cash-flow analysis ........................................................................ 71 3.7.5 Balance sheet ............................................................................... 71 3.7.6 Source and use of funds ............................................................... 72 3.8 Risk Management plan .......................................................................
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