Originally Posted by Brian McIlmoyle
Investor, has the ring of someone who intends to see a return on their investment.
Lets run the numbers,
LAND- in the Toronto area, lets say 70 acres..- $400 000 to $600 000
Buildings- to build and indoor venue and support structures .. $150 000.
Permits- approvals - legal - $20 000.
Insurance - $10 000 annually
Conservative 1st year start up expenses. $550 000 to $850 000.
Ongoing expenses- annualized
Insurance $10 000
TAXES - Property Tax - $15000
Utilities - 12000
Staff - 60 000
$97000 -- ahh lets roll it to an even $100 000.
Lets presume a 10 year return on investment of 0% and NO profit or income for the investor
the enterprise must generate 1.55 to 1.8 million lets go to 1.6 million for argument sake.
this enterprise must generate $160 000 each year of operation to return the investors money at the end of 10 years.
That is about 13500 a month. at 6 days a week operation that is $540 a day.
at a per player session price point of $20 .. that is 27 players a day..
So... that does not sound that bad.. if you can develop an owner income stream from the pro shop and Consumable sales.
The question is.... Do you want as the "investor" to make nothing over the 10 years...
So lets presume a 8% annualized return on investment and a $600 000 initial investment
This adds $48000 a year to the required revenue- lest say the owner is content with this as income.
This adds 8 players per day required to 35 players per day
Still in the realm of possibility
So If you have the 1 mill to do it...
You're forgetting lawyer fee's.. But i think that some of your price claims are outrageous.. The price of land and a building is way too high.. 70 acres is way too much you don't even need that much. An acre is about the size of a soccer field..
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Last edited by BobbyDangerous; September 16th, 2010 at 06:09..