BUSINESS PLAN
H2O Swimming Academy Ballymena Ltd
CONTENTS
SECTION 1: EXECUTIVE SUMMARY
SECTION 2: BUSINESS AND PROPRIETOR DETAILS
2.1 Business Details
2.2 Proprietor Details
SECTION 3: VISION AND BUSINESS IDEA
3.1 Business Goals
3.2 Key Selling Points
SECTION 4: OPERATIONS
4.1 Operations
SECTION 5: MARKETING
5.1 Market Research
5.2 Competitor Analysis
5.3 Target Market
5.4 Product Strategy
5.5 Pricing Strategy
5.6 Promotional Strategy
5.7 Summary Marketing Action Plan
SECTION 6: SWOT
SECTION 7: BUSINESS RISK ANALYSIS
SECTION 8: APPENDIX
Please see supporting documents
SECTION 1: EXECUTIVE SUMMARY
H2o Swimming Academy Ballymena Ltd aims to offer an extensive Learn to Swim Programme that is based on a framework developed by the Amateur Swimming Association (ASA), the UK’s national governing body for swimming. The programme will be open to children from 3 years old and upwards from all areas of the community. We aim to create the ideal environment for children/adults to gain water confidence, develop their swimming technique and reach their full potential. Our fully qualified teachers will work within a structured program and receive on-going training. The Learn to Swim Programme will be our core business model, however with growth we intend to offer services to local schools, disability organisations, adult classes and also survival skills including a training school for lifesaving and first aid.
The business will operate as a limited company and will start to trade in January 2019.
The business will be owned and managed by Directors Richard Faloon & Stuart Barker along with a number of seed investors.
The main market segments of the business are children aged between 3-14 years old from Ballymena and surrounding areas within a 15mile radius. This reach could include Broughshane, Portglenone, Ahoghill, Kells and Cullybackey.
The summary financial forecasts are as follows:
| Summary Profit and Loss Accounts | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | £383,000 | £586,425 | £675,425 |
| Cost of Sales | £102,200 | £153,200 | £153,200 |
| Gross Profit | £280,800 | £433,225 | £522,225 |
| Gross Profit Margin | 73% | 74% | 77% |
| Net Profit | £26,976 | £235,027 | £319,997 |
| Net Profit Margin | 7% | 40% | 47% |
SECTION 2: BUSINESS AND PROPRIETOR DETAILS
2.1 Business Details
Business name: H2o Swimming Academy Ballymena Ltd
Business address: 23 Pennybridge Ballymena
Telephone: 07734606442
Email: [email protected]
Web address: Under construction
Proposed start date January 2019
Legal status: Limited Company
Full-time
VAT registered: YES
Bank: Danske Bank
Accountant: McCoy Hamill Chartered Accountants
Solicitor: O’Hare & Co Solicitors Belfast
Business idea
H2o Swimming Academy Ballymena Ltd aims to be a leading provider of high quality, professional swimming instruction and training facility. The Learn to Swim Programme will be our core offering, however through growth we will progress to offer services to local schools, disability organisations, adult classes and survival skills; with a training school for lifesaving and first aid.
2.2 Proprietor Details
Experience:
Both Richard and Stuart grew up within the swimming industry, swimming and competing for Ballymena and Ulster at National Levels.
Richard then pursued further education, graduating from Northumbria University in Sports and Exercise Science. During the summer months, to supplement his degree, Richard attended a swim school in South Florida and worked three summers as a Learn to Swim swimming teacher. Once graduated, Richard moved into Leisure Management helping to implement a new swimming school in Mid-Ulster. Within one year they impressively accrued 1200 adults and children on their Learn to Swim Programme. More recently Richard was employed by the largest swimming provider in U.A.E and worked as Head of Operations in Abu Dhabi overseeing the successful running of five swimming schools within the area.
Stuart was Head Coach of Ballymena Swimming Club where he coached and developed young athletes aiming to compete. He was instrumental in ensuring the clubs progression from Division 4 to Division 2. Stuart also developed elite swimmers who proudly represented at Irish level.
Together Richard and Stuart have already established two very successful swimming schools in Ballycastle and Preston. Both of these schools are run as separate limited companies and are managed locally by employed personnel so require very little input from either Stuart or Richard.
The business partners bought the swim school in Ballycastle in January 2016 for £12,000, when turnover was £24,000 per annum. Ballycastle is now seeing a throughput of approximately 320 children per week. After the purchase of the business Year 1 turnover grew to approximately £90,000, £103,000 in Year 2 and is on target to achieve £117,000 in 2018. It is currently operating at a net profit in excess of 45%. This has been achieved through ongoing and sustained marketing activities.
Preston was established in February 2017. As a smaller operation, it is seeing a throughput of approximately 60 children per week, with a net profit also in excess of 45%.
SECTION 3: VISION AND BUSINESS IDEA
3.1 Business Goals
- Open doors Q1 2019
- Use mailing list from survey (1500 registered) to pre sign customers aim to open doors with 500.
- Year 1 grow learn to swim programme to over 1000, contact schools and sign schools to attend curriculum in September.
- Year 2 grow programme to 1500, aim to have a full programme of curriculum swimming. Identify hotel pools make proposal to implement H2o swimming academy swim schools in their locations.
- Year 3 continue to maintain swimmers numbers, start identifying location for next swim school.
- Year 4 start building of second location
- Year 5 open second location.
Financial goals
These figures are solely focused on the proposed H2O Swimming Academy in Ballymena.
| Summary Profit and Loss Accounts | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | £383,000 | £586,425 | £675,425 |
| Cost of Sales | £102,200 | £153,200 | £153,200 |
| Gross Profit | £280,800 | £433,225 | £522,225 |
| Gross Profit Margin | 73% | 74% | 77% |
| Net Profit | £26,976 | £235,027 | £319,997 |
| Net Profit Margin | 7% | 40% | 47% |
Goals to establish and grow a core customer base
In the first year of business we intend to attain 1,000 clients per week for the learn to swim programme. Once this core customer base has been established we will focus on the growth areas below;
- Approach local schools and offer our services for statutory school curriculum swimming lessons.
- Approach various disability organisations and offer facilities for service.
- Offer adult beginner lessons.
- Offer adult masters swimming sessions.
**Please see section 5 for a summary of primary research conducted that highlights potential interest in the classes.
3.2 Key Selling Points
- H2o Swimming Academy will be a purpose-built facility dedicated to swimming instruction, with no public swimmers.
- All lessons will be conducted in a professional, but fun manner by fully qualified swimming instructors. With a ratio of 1 instructor to 6 children. This is much lower than local competitors.
- Market Research (see Section 5) has shown us that the Ballymena catchment area is a prime opportunity with a proven need for this service, accentuated by the recent suspension of lessons within the local leisure centre. Prior to the suspension of these lessons we are aware that there was an 18-month waiting list.
- The two next closest leisure centres, Antrim and Ballymoney, also have extensive waiting lists for swimming lessons.
SECTION 4.0: OPERATIONS
Daily Tasks
- Managing Directors
Daily meeting with Administration, maintenance and lead teacher planning the days tasks and reviewing any issues from the previous day.
- Maintenance
General maintenance of pool plant room, monitoring of water PH levels, monitor and maintain pool temperature 29 degrees, reporting any issues to managing directors
- Cleaner
Maintain General cleanliness of reception, Changing room, office and viewing gallery areas, report any issues to maintenance.
- Lead Receptionist
Customer queries, payments, bookings, class movements, ordering of supplies, report to managing directors any issues.
- Receptionist
Customer queries, payments, bookings, class movements, report to Administration any issues
- Lead Teacher
Team meeting for today’s programme, update of any new pupils, task teachers with cleaning duties for pool area. Update teachers of daily scheme of work. report to managing directors any issues.
- Teachers
Deliver daily scheme of work, clean pool areas after school and learn to swim programmes, report to lead teacher any issues.
Weekly Tasks
- Managing Directors
- Weekly reports of swimmer numbers, payment updates, review of marketing strategy for previous week and outline the next two weeks marketing plan, review any issues that week.
- Maintenance
Check chemical supplies, deliver report of pool PH and temperature for that week.
- Cleaner
Deep clean of reception, gallery, office areas
- Lead Receptionist
Weekly report of swimmer numbers, payments, stock check, staff holidays, delivering marketing strategy for the following week.
- Receptionist
Weekly report of swimmer numbers, payments
- Lead Teacher
Report of weekly lessons, outline next week’s lesson plans, task teachers with deep cleaning duties for pool area and changing rooms, update administration with any holiday requests or staff issues.
- Teachers
Deep clean of pool and changing rooms
Monthly Tasks
- Managing Directors
Monthly report of term, review next terms plans and marketing strategy.
- Maintenance
Service plant room, order chemicals where required, monthly report of PH levels and pool temperature.
- Lead Receptionist
Report term progress.
- Lead Teacher
Report term progress and review lesson structure for next term.
Facility
- Pool size 18m x 8m divided into four lanes. Two lanes will be full length (18m) for levels 5-8. One lane divided into two 9m lengths for levels 2&3. The final lane will be divided into 6m and 12m for level 1 & 4. This will allow us to offer all levels, in our programme, within a one hour time slot.
- Pool lane dividers will be easily removed for off peak lane swimming. This will be an option available to customers after they have completed our Learn to Swim programme. Therefore, encouraging students to maintain fitness and skill levels. Alternatively, we have the ability to rent these off peak hours to local swimming and Triathlon clubs for competitive training.
- Classes will be thirty minutes with a maximum of six students per class. Our teachers teach in the water to engage with the swimmers, allowing them to suit individual needs and identify areas for improvement. The ratio of 6:1 is significantly below the swimmer teacher ratio found in council lessons which can be as high as 20:1.
- Coffee and vending machines will be placed in the viewing gallery for parents waiting and observing lessons these will also generate additional income for the business.
- . Parents/guardians will have an alternative viewing opportunity, provided via live video feed, from the poolside on flat screen TV’s. These will be mounted at the back of the viewing gallery, giving parents/guardians an unobstructed view of lessons.
- Training room will be used to provide courses i.e. N.P.L.Q, assistant teachers, teachers, assistant coaches, coaches and in house CPD training of staff.
Booking Process
- Website and app for online booking will enable parents to arrange catch up lessons, re-book for subsequent terms, re-join the programme and view swimmer progress reports.
- The booking system will offer online payment, pre-paid monthly subscription or the option to pay cash on first lesson. All payments will be made prior to attending first lesson.
Term Structure
- Terms will typically be eight weeks during school terms, with a shorter six week term over the summer. Options to run one week intensive course during school holidays is also possible to utilise the pool time normal use for school lessons.
- Levels 1-8 will be our core learn to swim programme. Each level will have a standard set of skills, which, each swimmer will need to be able to perform to a high standard before moving to the next level. This will be at the discretion of the teacher, as they will be carrying out continuous assessment . H20 will carry out internal standardisation during the CPD training to maintain the same standards with all teachers.
- After level 8 we will offer advanced classes. These will teach specific skills for competitive swimming. Advanced classes will be forty-five minute sessions. They will help improve swimmers fitness and allow them to learn new skills.
- Adult lessons will be divided into three classes – beginners, intermediate and advanced.
- School lessons will be offered at forty-five minute sessions instead of thirty minutes in council pools. This will be an incentive offer to attract schools away from the council pool for lessons. Cost will reflect this extra 15 minutes.
Sub-contracted work
- HR will be handled by Stewart Watt HR consultants
- Digital and Social media marketing will handled by Peter McNichol
- Web development and maintenance will be handled by Tomorrow Labs
- All the above will be moved in house at the earliest possible time
SECTION 5.0: MARKETING
This section details research conducted an overview of the marketing strategy. A summary of key findings from the secondary and primary research is included below.
5.1 MARKET RESEARCH
5.1.1 Secondary Research
The following section highlights the scale and scope of the local market in the Ballymena and surrounding areas.
Ballycastle
In our first 12 months trading as H2o Swimming Academy Ballycastle we grew our swimming programme to 340 children. Ballycastle and surrounding areas have a direct population of 17,289. As shown on the diagram below (Table 1) children aged from 0-15 years is 3,387, taking an average for each age leaves 2,258 children between the core catchment ages of 3-12. As we are providing lessons weekly for 340 children this represents 15% of the market attending our swim programme; alongside this we have a mailing list of 287 children who attend lessons sporadically throughout the year.
Table 1
Magherafelt
Within their first 12 months, Greenvale Leisure Centre grew their swimming programme to 1200 children and currently have over 1400 children on their Learn to Swim Programme. Magherafelt’s direct population is 46,855. As shown on the diagram below (Table 2) children aged from 0-15 years is 10,807, taking an average for each age leaves 7,204 children between the core catchment ages of 3-12. Greenvale currently provides lessons for over 1400 swimmers a week. This represents 20% of the market attending lessons regularly.
Table 2
Ballymena
Ballymena has a direct population of 66,151. The below graph shows (Table 3) Ballymena has 13,133 children between the ages of 0-15 years. With 8,755 children in the core catchment age of 3-12 years this is higher than that of Magherafelt. However, prior to suspending their lessons, Ballymena Leisure Centre only accommodated 260 children for swimming lessons. This represents 3% of the current market. As Greenvale Leisure Centre is privately owned, they aspire to maximise their potential within the given market, which they are doing. Ballymena Leisure Centre are unable to expand their programme due to providing public swimming times and as a result has a waiting list of over 18 months. An unfortunate outcome of this situation is that 0% of kids between the ages of 3-6 (3,502) have access to swimming lessons. Only at the age of 6 can they place their name on the 18month waiting list. This means they are only open to the opportunity of joining the Leisure Centre Learn to Swim Programme at 8 years old. There are 5,253 children aged between 3-8 years, 20% of that market is 1,050 children who would actively attend swimming lessons every week, before the Leisure Centre facilities can accommodate them. This is why we believe there is a huge market of 1,800 (15% of the current population) children whose parents would attend a new swimming programme in the Ballymena district if it were available to them.
Table 3
Ballymena market growth
In the graph below (Table 4) we can see that Ballymena’s population of our core catchment age has grown by 479 since 2005 representing an increase of 44 children per annum into our catchment market.
Table 4
Antrim
A summary of the key findings from our secondary research about Antrim Forum Leisure Centre. Antrim and surrounding areas have a direct population of 54,378. As shown on the diagram below (Table 5) children aged from 0-15 years is 12,000, taking an average for each age leaves 8,000 children between the core catchment ages of 3-12, 20% of this market leaves 1600 children. From our contact with Antrim Forum Leisure Centre we have found that they also have a waiting list of 18 months. Given the proposed location of H2o Swimming Academy we are beside the dual carriageway connecting Antrim to Ballymena (see Table 6). The journey time shown below totals 12 minutes (9.6 miles) from Antrim Town Centre to our facility, we are confident that we can attract a volume of swimmers from this market.
Table 5
Table 6
5.1.2 Amateur Swimming Association (ASA) Statistics
ASA research states swimming is a survival skill, it is essential for people of all ages to be able to swim to some capacity. Due to this reason, there is always a high demand for this service.
- 98% of parents agree that every child should be able to swim when they leave primary school.
- 39% of parents don’t know the National Curriculum school swimming targets that their child should have achieved by age 11.
- 40% of parents do not believe their child would be able to swim to safety if they were to get into danger in the water.
- 1 in 6 parents never take their child swimming, and 12% of these say that this is because they can’t swim themselves.
- Tellingly, more than 1 in 5 (21%) of the parents who are unable to swim say that their children can’t swim either.
This unfortunate fact will result in today’s children becoming the next generation of adults unable to swim with their child.
5.1.3 Primary Research
The owners have conducted extensive primary research to assess demand for the proposed swimming academy.
An online survey was promoted to parents within the target markets across social media and had 1,131 responses. Surveys were also distributed to the local primary and secondary schools, with approximately an additional 300 respondents. The following section summarises the findings.
Would you be interested in swimming lessons for adults or children in Ballymena?
69% of respondents were interested in children’s swimming lessons, with a further 18% interested in both children and adult lessons. This equates to 87% of respondents being interested in children’s lessons. The remaining 13% were only interested in adult lessons.
Parents were also asked to note how many they would like to book into classes. The following table highlights the number of people interested in lessons.
| Age Bracket | Number Interested In Classes |
| 3 – 36 months | 332 |
| 3 – 15 years | 889 |
| 16+ years | 359 |
| Total Number of People Interested in Registering for Classes | 1,580 |
The questionnaire also sought to identify demand for lessons by day. The graph below highlights that there was a relatively even spread across the week, which means that lessons would not be concentrated at the weekend and spread across the week.
Which day would you prefer lessons for you or your dependants?
The most popular day for lessons, with 47% of respondents noting it as their preference, is Saturdays. Please note, participants were able to select more than one option.
Summary of Research
The primary research highlighted that there are 1,580 children and adults interested in lessons. The research has also captured email addresses for 860 parents who have registered interest in being informed when classes are being launched who can be targeted as part of the marketing campaign.
5.2 Competitor Analysis
There is a limited number of competitors in the local area. These would be:
| Cossum Swim School | |
| Strengths | Weaknesses |
| · Established Swim school | · Business model is based on a trainer assessor model, which results in high levels of staff turnover.
· Inconvenient location for Ballymena (Toome) |
| Ballymena Council Leisure Centre | |
| Strengths | Weaknesses |
| · Cheaper lessons | · Longer waiting lists
· Higher teacher : student ratios. Council is approximately 1:20, compared to 1:6 for H2O classes. · Staff do not have the opportunity for specialised monthly training compared to H2O staff |
5.3 Target Market
There will be a number of key target markets for the business. These include:
- Parents living in the Ballymena & surrounding areas;
- Local primary & post-primary schools for private hire;
- Special needs schools for private hire;
- Local adults in the local area who cannot swim;
- Local adults for swimming training; and
- Competitive swimmers.
5.4 Product Strategy
The owners are keen to develop a specialist swim centre in Ballymena that will be quality driven and how lower than average teacher to student ratios. Training will be delivered to all staff on a monthly basis to ensure that quality standards are maintained.
The key offering of the Swimming Academy will be classes for children between the ages of 3 and 16. Classes will run on Monday to Friday from 3.00pm – 8.00pm and Saturday and Sunday from 9.00am – 2.00pm. Other programmes that will run during off peak times at the academy will be:
- Mother & Toddler Groups;
- Master Fitness Classes;
- Beginners and Improvers Adult Lessons;
The Swimming Academy will have tea and coffee facilities in the gallery area. This will provide parents who are waiting with snacks and drinks from vending machines to reduce running costs. All snacks and drinks will focus on healthy eating, in line with current Government initiatives.
5.5 Pricing Strategy
The proposed price list is provided below and is competitive province wide:
|
The business will offer family discounts and will encourage online pre-payment to reduce cash on the premises and guarantee payment for all classes, thereby protecting cashflow. The owners will also consider offering a small discount for block booking classes.
5.6 Promotional Strategy
The business will primarily focus on a content marketing strategy as this will offer a cost-effective method of ongoing engaging with customers. The key platforms that will be used will be Facebook and Instagram as they are most popular platforms with the target market.
The owners will also secure consent from parents to film classes and use footage as part of a content campaign to provide advice and guidance on swimming techniques.
The owners will invest in a state of the art website that will take bookings and online payments, all marketing tools will drive traffic to the website and will have clear calls to actions to drive bookings.
The following sections outlines a breakdown of marketing spend.
5.7 Marketing Action Plan
| Table: Promotional Plan | |||
| Promotional Method | Details | Timescale | Cost |
| Leaflets | Leaflets delivered by local post office to homes around local residential areas and schools. | From start | £1,000 |
| Facebook page | Positive use of social media to promote the swim school | On-going | Free of charge |
| Website | Website with online booking and payment system and staff portal | From start | £16,000 |
| Local Radio | Promotion via an interview, of the opening of the swimming academy. | From start | Free of charge |
| Networking local schools, colleges and disability groups | Network with local schools, colleges and disability groups to build on expressions of interest in using H20 Swimming Academy Ballymena Ltd for classes. | From start | Free of charge |
| Local newspaper | Full page advertisement in local press to announce opening of the swimming academy | For Launch | Full Page (34cms x 8 columns) £2,611 |
| Business Card | £100 | ||
| Total | £19,711 | ||
5.7 Marketing Plan
| Table: Promotional Plan | |||
| Promotional Method | Details | Timescale | Cost |
| Leaflets | Leaflets delivered by local post office to homes around local residential areas and schools. | From start | £1,000 |
| Facebook & Instagram platforms – Content marketing | Development of a content strategy to ensure that there is a positive use of social media to promote the swim school | On-going | Free of charge |
| Digital advertising – Brand launch | Intensive online advertising campaign on Facebook and Instagram | Pre-launch | £500 |
| Digital advertising – brand awareness campaign | Ongoing advertising campaign to raise awareness of the swimming academy – monthly campaigns approximately £175 per month. This will include social media and PPC and consultancy fees to undertake the content marketing activity. | Ongoing | £2,100 |
| Website | Website with online booking and payment system and staff portal | From start | £16,000 |
| Local Radio | Promotion via an interview, of the opening of the swimming academy. | From start | Free of charge |
| Networking local schools, colleges and disability groups | Network with local schools, colleges and disability groups to build on expressions of interest in using H20 Swimming Academy Ballymena Ltd for classes. | From start | Free of charge |
| Local newspaper | Full page advertisement in local press to announce opening of the swimming academy | From Start | Full Page (34cms x 8 columns) £2,611 |
| Business Card | £100 | ||
| Total | £19,711 | ||
SECTION 6.0: SWOT
| Strengths |
|
· The owners have a successful working relationship for more than 4 years. · Owners are highly qualified and have successfully established 2 other swimming academies. · 860 parents have supplied their email address and want to enrol their children in classes when the academy launches. · International experience of establishing and running a swimming academy. · Owners have come from a competitive swimming background. · The swimming academy will be privately owned. The owners are determined to make a success of the project. · The classes will have a low ratio of teacher to students. This will be quality driven. · The owners have spent significant time designing the product.
|
| Weaknesses |
|
· H2O Academy will be a new start business in Ballymena, but have conducted thorough research to gauge interest in the product offering and have also developed a marketing plan to raise awareness of the business with parents who are not yet aware of the new swimming classes. · The business is reliant on securing external funding to purchase and build the swim academy.
|
| Opportunities |
|
· Extensive waiting lists for the Council run swimming classes. · Swimming is increasing being viewed as an essential life skill. · AMA research highlights that 98% of parents believe that children should be able to swim before leaving primary school.
|
| Threats |
|
· Potential competitor established in Toome – however the owners have carefully researched this business and have agreed that H2O Academy will operate on a very different business model which will be more appealing to both staff and customers.
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SECTION 7: BUSINESS RISK ANALYSIS
| RISK IDENTIFIED | MITIGATING ACTION |
| Sales Lower than Expected | – Initially a marketing campaign will be conducted as above, however if sales are not as expected then a more intensive marketing strategy will be implemented. Including additional digital advertising on Facebook, Instagram & PPC campaigns. In addition, an intensivePR campaign will be implemented. Free taster sessions will also be offered.
– Consideration for alternative uses of the facility, i.e. aqua aerobics, pool parties, group bookings, sports rehabilitation, potential for competitive swimming club. – The lease agreement with the landlord of the building has been negotiated to include the first 5 month’s rent free. This will assist with cash flow and net profit figures. |
| Pool maintenance issues resulting in closure. | – Insurance policy inclusive of loss of earnings which begins 14 days after lost trading occurs. (See appendix for insurance policy).
– With H2o Ballycastle located 24 miles from H2o Ballymena, we can transfer swimmers to alternative venue to accommodate lessons. – New build pool will be covered by an ongoing maintenance plan which includes emergency repair where required. |
| Staffing Issues | – With the directors combined 15 years experience in the leisure industry within the Ballymena area, they will have a bank of emergency/relief teachers to be used where and when required.
– Permanent staff will be on performance based contracts. – In order to maintain high staff morale, team building and employee benefits will be regularly offered. |
| Market Competition | – At present, there is no learn to swim lessons being offered within the Ballymena area due to the local leisure centre having suspended their programme indefinitely. If/when they were to resume these would be limited to approximately 300 customers per week due to restricted teaching times.
– Having conducted market research the closest swim school to Ballymena town centre is approximately 16 miles away located within Hilton Templepatrick and again this is limited on swimmer numbers due to it being a private health club. – It is not anticipated that there will be any other private swim schools within the Ballymena due to open in the near future. |
