Building Blocks Team Building

A Report Written by: Robert Albrecht, Mashaera Alexander, Chance

Baudoin, and Courtney Trahan

Table of Contents

INTRODUCTION................................................................................................................................4

BUILDING BLOCKS: INDUSTRY AND PRODUCT..........................................................................5

MISSION STATEMENT.....................................................................................................................5

VISION STATEMENT........................................................................................................................5

VALUES..............................................................................................................................................5

MANAGEMENT AND OPERATIONS................................................................................................6

SWOT ANALYSIS/ CRITICAL RISKS................................................................................................6

TARGET MARKET AND DEMOGRAPHICS.....................................................................................7

COMPETITOR INFORMATION........................................................................................................8

MARKETING STRATEGY..................................................................................................................8

DESIGN AND DEVELOPMENT........................................................................................................9

BUSINESS FINANCES......................................................................................................................9

EXIT STRATEGY..............................................................................................................................11

CONCLUSION..................................................................................................................................12

WORKS CITED.................................................................................................................................13

Executive Summary

Welcome to Building Blocks Team Building! Building Blocks is a youth entertainment

and development system here to proving a fun atmosphere to a productive team building

experience for the youth of Lafayette, LA and the surrounding areas. There are many

experienced competitors in the industry, but we are here to top them all with our new and unique

activities that have never been used before for the most efficient team building you can find in

the area. Although team building is a common thing in our society, it is not always easy to

accomplish team building at the heist level. In this industry, we have the opportunity to rise up to

bigger things if it is managed correctly and everyone within the organization is committed to

achieving the right goals. There is always room in this industry, especially with the world getting

bigger and more populated with youth. Knowing this, there will always be an opportunity to

expand our business into surrounding areas and possibly into other states if the opportunity

presents itself that way. Our biggest advantage is that not only do we cater to the youth, but

many other organizations like sports teams, or teams inside of large corporations. With this

diversity, it should give us a competitive edge in the market. Our biggest goal with Building

Blocks is for each customer to leave our sessions with a stronger understanding of what it takes

to be successful at a team while enjoying the experience that only we can bring them. There is no

question that with the right commitment, organization, management, and execution, that this is a

great opportunity to make a difference in peoples’ lives with this business. This is a small

business, so it will not require many workers, but the expenses to start up are on the higher side.

With salaries, building lease, utilities, insurance, and other expenses stated in the report, start- up

costs will total around $414,350. Forecasted revenues for year one of operation should be around

$552,000 which leads to $125,761.50 in profit after income tax.

Introduction

Here at Building Blocks, a proposal is being made for a business that will change the

youth development industry in Lafayette and surrounding areas. Not only do we bring team

building to today’s youth in this area, but we offer a variety of activities that cover a wide

audience in many different industries from corporate team building to building team

cohesiveness in sports teams as well. With the scale that we are trying to reach and the volume of

foot traffic that we are trying to achieve, start- up costs may be on the high end. With that being

said, there is no doubt that we will still make a large profit from what we are going to be

offering. Building Blocks will set the highest example on how to create an effective team

development business. Our business also has a creative competitive advantage. svur plans to

implement innovative activities that will keep potential customers excited and interested and to

be a part of our organization. This business study will cover many topics involving our business.

To begin we will discuss our industry that we are in and the product that we offer along with our

mission statement, vision statement, and our values. This will show what exactly we hope to

achieve with our business. After we discuss those sections, we will move into our marketing

strategy and target market along with the business design development. To add onto our

marketing section, we will add our SWOT Analysis. This SWOT Analysis was created based off

of the industry in this specific area. We will also run through who our main competitors are in

this area and how we compare to them in the market. To finish this business study, we will run

through the finances of the company. This will include expenses, net sales, first year net profits,

and cash inflows and outflows of the next 3 years of operations. Going through this information

should show everything needed to prove why Building Blocks is a great business opportunity!

Building Blocks: Industry and Product

Building Blocks will be the newest entry into something that has been around since the

beginning of time, team building. In the team development industry, we offer a variety of

products in our business. These are not physical products, but instead, offering our services to a

variety of customers in any team building environment. With that being said, our product is still

mainly targeted to the youth because we believe that starting with the youth is the first step in

creating more successful teams for our future and even more importantly, their future!

Mission Statement

Building Blocks is a team development company focused for today’s youth which will provide a

fun and efficient team building experience.

Vision Statement

We are fully committed to creating a positive and efficient team building product that will also

be a unique and helpful experience to their everyday life.

Values

Commitment: To be committed to succeeding in any challenge

Efficiency: To be as efficient as possible with our product for our customers

Motivate: We motivate our customers to be successful and the best that they can be

Teamwork: We seek to develop the highest form of teamwork from all individuals

Management and Operations

Management: The background and qualifications of our key management personnel in the

company are a huge part of our success. We pride ourselves on giving advice and dedication to

all customers. We have some of the brightest minds in our industry employed to support our

company and continually infuse it with new ideas. We have an amazing staff who love to

network and build connections between people.

Operations: Information on our facilities, equipment and personnel requirements are as

followed. We are proud of our clean kept facilities, which offer space and comfort for all

customers. Our equipment is checked routinely for defects to ensure top quality equipment for

our customers. Our personnel requirements are strict to ensure that our customers are getting the

best help available.

SWOT Analysis/ Critical Risks

Strengths: We are capable of bringing groups of individuals closer as a team to increase

efficiency. Many of our strengths are intangible; we create a supportive environment for team

members to feel safe and respected by their peers.

Weakness: One of our concerns involves non-effective team building practices. If it is not

positively effective for team building, we will not continue to apply that practice.

Opportunities: Our opportunities involve our determination to create effective and efficient

team building practices.

Threats: Some of our threats include insufficient capital and building a solid client base.

Critical Risk: Negative factors that may arise in our company include a lack of capital and client

base.

Target Market and Demographics

We will be located in Lafayette, La and serve mainly elementary, jr. high/middle school

and high school students ages 10-14 (15,359) and 15-17 (9, 325). According to the Lafayette

Parish School System, there are a total of 22 elementary schools, 12 middle schools, and 5 high

schools are in the Lafayette area. There are also 14 Catholic schools in Lafayette Parish. A

percentage of our target market also exists within the 18-20 (10,452) age range. Below is our

market location data for schools in Lafayette Parish and a graph depicting the population of

Lafayette Parish by age.

10-14 15-17 18-20

15,359

9,325 10,452

Lafayette Parish Population by Age

Competitor Information

Our company has two main competitors in the leadership and team building industry. First,

Lafayette Team Building, a company that consists of event experts with over 20 yrs. of

experience. Second, The Go Game whose success is based around mobile technology.

Company Strengths Weaknesses

Lafayette Team Building Over 20 years of experience Corporate-oriented

Diverse service marketing mix High price range

The Go Game 10 years of experience Nearest location is New

Orleans, La.

Technology Corporate-oriented

Marketing Strategy

Identifying potential customers: Our potential customers include teachers, sports team coaches,

and other administrative personnel interested in building leadership and teamwork among their

students at elementary schools, jr. high/middle schools, and high schools in the Lafayette, La.

area.

Setting prices: Groups are charged per person. Larger groups are given special group rates.

Customer support: The main goal of our business is to provide excellent customer service from

the first point of initial contact with customers. A company representative known as the team

leader is assigned to each group to assist them during the entire process. The team leader works

with each group to determine which type of leadership and team building activity will benefit

them. During the activity, the team leader is responsible for giving the team clear instructions to

successfully complete each activity while also assisting and guiding the team. Afterwards, the

team leader follows up with the group to ensure that the group has had a satisfactory experience.

Delivery of products/services: Leadership & Team Building activities/programs will be held at

our location in Lafayette, if the customer is not able to come to our location or wants us to meet

them in their desired locations, arrangements can be made to satisfy the customer’s request. All

activities are tailored to meet the needs of the team, timing, location, and budget. Outdoor

activities will be designed and tailored to take place in various types of weather, but will be

moved indoors if weather conditions do not permit. Each activity can be customized to fit the

expectations of each individual team.

Design and Development

Our company designs several different leadership and team building activities that

include scavenger hunts and other missions, creative challenges, and strategy games. Materials

for the activities are easily accessible, therefore designing the games are low-cost. For example,

a scavenger hunt requires group members to find and collect objects. This activity does not

require the purchase of materials whereas a creative challenge may require art supplies or other

types of materials. Any potential costs are determined by the type of game and the amount of

materials needed.

Business Finances

Start- up Costs: The start-up expenses for our business are estimated to be a total of $359,350.

The biggest start-up cost for us is our supplies and props for the different rooms costing $20,000.

The next biggest is advertising and marketing costing $17,000. The furniture and temporary

walls will cost $10,000. The lease will be $66,000 a year, coming out to $5,500 a month. The

utilities will be $4,500. Licensing will cost $1,500 and the insurance will be $850. Salaries are

$240,000.

Estimated Profits: Our estimate of 17,500 customers and 200/month memberships make up our

total revenue of $552,500. Our expenses are $414,350 and tax is $12,433.50. Our profit for the

year is $125,716.50.

Customer Type Customer # Price RevenueBig Groups 8750 $10 $87,500Individuals 8750 $12 $105,000

Memberships 200 $150 $360,000

Forecasted Income Statement

For the year ended November 30, 2016

Sales RevenueNet Sales $ 552,000

ExpensesSalaries $ 240,000Lease $ 66,000Supplies/Props $ 20,000Maintenance $ 3,000Utilities $ 4,500Insurance $ 850Miscellaneous $ 80,000

Income before $ 138,150

Income Tax $ 12,433.50

Net Income $ 125,716.50

2016 2017 2018Cash Inflow

Beg Cash - 125,16.50 282,463.09Income 552,500 607,750 668,525Total Cash In 552,500 733,466.50 950,988.09

Cash OutflowSalaries 240,000 240,000 240,000Other Op. exp. 174,350 183,067.50 192,220.88Tax 12,433.50 27,935.91 38,899.88Total Cash Out 426,783.50 451,003.41 471,120.76

Net Cash Flow 125,761.50 282,463.09 479,867.33

Exit Strategy

For the business to survive, we will need to receive investments from individuals who

understand the vision that we have for our company. Those who partner with us are not only

investing in our company, but also in the futures of the youth of Lafayette. Our business is one

that will have an important impact on the community.

As a small business, we understand that there is a chance that our business may fail.

Because our business requires start-up costs that are well over the $100, 000 budget, we as a

company have a lot to lose. We have formulated a plan that will protect all parties involved in

the event that our company may need to close. In this case, we would

Conclusion

All of our information for Building Blocks has been included in this report from our

target market and SWOT analysis all the way to what we expect profit to be after a year of

operating. We also have shown our cash inflows and outflows following the first year of

operations. As stated in the report, start-up costs would be $414,350 which includes salaries and

lease expenses along with other expenses necessary for the business. These start-up costs are

well over the $100,000 budget; therefore, the business is not feasible. Though it may not over

budget, it is still a great investment with potential return in the future. In this report we have

presented every piece of information needed to make Building Blocks a reality. We know that if

we stay committed, the sky is the limit!

Works Cited

CostHelper.com. Small Business. 2015. 21 October 2015 <http://smallbusiness.costhelper.com>.

Diocese of Lafayette. Lafayette Parish Catholic Schools. 2011. 1 December 2015

<http://diolaf.org/lafayette-parish-catholic-schools>.

Lafayette Economic Development Authority (LEDA). Lafayette Parish Snapshot . Demographic

Snapshot. Lafayette, La. : Lafayette Economic Development Authority (LEDA), 2015.

Lafayette Parish School System . LPSS Schools . 2015. 17 November 2015

<http://www.lpssonline.com/schools>.

LoopNet. 12,500 SQ FT Warehouse-Lafayette, Louisiana. 12 November 2015. 1 December 2015

<http://www.loopnet.com/xNet/MainSite/Listing/Profile/Profile.aspx?

LID=19500489&SRID=6534441642&StepID=101>.