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Ultimate Paintball

1 October 2007

468 Stuart Highway Winnellie NT P.O.Box 38546, Winnellie NT 0821 P: (08) 89 999 000 F: (08) 89 999 010

Outdoor & Tactical (NT) Pty Ltd

BUSINESS PLAN

DateSignature Maria Koulianos

PREPARED BY

TABLE OF CONTENTS Page No.

1 Executive Summary

1.1 Introduction 3

1.2 Mission Statement 3

1.3 Business Objectives 3

2 Business profile

2.1 General Outline 4

2.2 Membership 4

2.3 Game Facilities 5

2.4 Food & Bar Facilities 7

2.5 Merchandise Store 7

2.6 Free Member Service 7

2.7 Hours Of Operation 7

2.8 Location 8

2.9 Employees 8

3 Legal Information

3.1 Legislation 9

3.2 Legal Structure 9

3.3 Insurance 9

3.4 Licencing & Registration 10

4 Financial information

4.1 Funding 10

4.2 Start Up Expenditure 10

4.3 Twelve Month Sales Forecast 11

4.4 Twelve Month Cash Flow Forecast 11

Maria Koulianos (NT) Darwin High School Page 1 of 14

4.5 Twelve Month Profit and Loss Forecast 12

5 Marketing Plan

5.1 Target Market 12

5.2 Market Segmentation 12

5.3 Advertising 12

6 Strategic Direction

6.1 SWOT Analysis 13

6.2 Future Opportunities 14

6.3 Future Requirements 14

7 Conclusion 14

8 Appendices

8.1 Start Up Expenditure

8.2 Twelve Month Sales Forecast

8.3 Twelve Month Cash Flow Forecast

8.4 Twelve Month Profit and Loss Forecast

8.5 Market Research Survey Results

Figures & Tables: 1 Figure 1 : Example of a typical Urban Combat Arena –

Street Scenario 6

2 Figure 2 : Example of a typical Urban Combat Arena –

Airport Scenario. 6

3 Figure 3 : Example of typical trenches found in a War

Zone Arena. 6

4 Figure 4 : Example of typical forest and swamp terrain

found in a War Zone Arena 6

5 Figure 5 : Manager’s residence at Lot 2180 Arnhem

Highway. 8

6 Table 1 : Staffing Requirement 8


1 Executive Summary 1.1 Introduction Paintball is a team based sport that involves opposing teams playing out action packed combat style scenarios by tagging (shooting) opponents using markers (air guns) firing paint filled pellets. The sport is played by millions, in more than 100 countries worldwide. In Australia, Paintball is currently played in all Australian States & Territories, except the NT and Tasmania. While there are no accurate figures for Australia, in America, Paintball is the fourth largest alternative sport. It is played by more than 9.8million people1, making it an industry worth more than US$259,000,000.002. On March, 28th 2007, the Northern Territory (NT) Government issued a media release3 saying that it would become legal within months. On August 23, the legislation passed, opening the door to this long anticipated and popular sport. After careful consideration and extensive investigations, Outdoor & Tactical (NT) Pty Ltd, decided that pioneering paintball in the NT would be a worthwhile and unique business opportunity. This business plan outlines the company’s preliminary work, operational plans, financial analyses and strategic directions. The company will be operating the business under the trade name ULTIMATE PAINTBALL (UP). 1.2 Mission Statement

“Ultimate Paintball is committed to providing the highest quality gaming experience, for our customers. Ultimate Paintball strives to make paintball a fun and challenging, team building sport.” 1.3 Business Objectives Outdoor & Tactical (NT) Pty Ltd’s objective is to establish a successful business venture by:

• Pioneering paintball in the NT. • Establish a world class facility with challenging arenas and top-of-the- line

equipment.

1 Reference http://www.actionpursuitgames.com/index.php?option=com_content&task=view&id=52&Itemid=50 2 Reference http://www.paintballsafey.com.sats.hml 3 Media release from http://www.nt.gov.au/dcm/ocm/media/index.cfm?fuseaction=viewRelease&id=2390&d=5


http://www.actionpursuitgames.com/index.php?option=com_content&task=view&id=52&Itemid=50

http://www.actionpursuitgames.com/index.php?option=com_content&task=view&id=52&Itemid=50

http://www.paintballsafey.com.sats.hml/

http://www.nt.gov.au/dcm/ocm/media/index.cfm?fuseaction=viewRelease&id=2390&d=5

• Marketing and promoting paintball as an outdoor recreational activity that builds team spirit, strategic thinking and outdoor skills.

• Attract and retain a solid base of loyal clients that will ensure the long term survival and profitability of the business.

2 Business Profile 2.1 General Outline UP will be run as a member’s only club. This will ensure that the club maintains a high quality and closely controlled environment for the benefit of its members and their bona fide guests. The main income stream will be the paintball games. This includes fees for arena time, equipment hire and the sale of paintballs and paintball grenades. In addition to this, UP intends to have a club house for hire (for functions & parties), food & bar facilities, and a merchandise store. 2.2 Memberships The club will have three levels of membership: a) Recruit; b) Expert and c) Veteran. Memberships will be free, however they will have to be “earned”. The membership structure will be designed to encourage client loyalty and continued patronage.

• The Recruit membership will be the basic entry level membership, which entitles members to play the game at normal rates. It is earned after the successful completion of the 3 hour induction and safety Recruit Course4.

• The Expert membership entitles members to discounts and some club

privileges. The “rank” is earned after competing in a pre-set number of games.

• The Veteran membership offers members higher discounts & more

privileges. Veterans also pre-qualify for club tournaments. Distinguished Veterans, will receive sponsorships for national and international tournaments representing the Club. This “rank” is earned after the member competes in a pre-set number of games and demonstrates exceptional skill and dedication to the sport.

Experienced players from interstate & overseas as well as members’ bona fide guests will be allowed to play after demonstrating good knowledge of the game and its rules. 4 The Recruit Course will be a 3 hour training session, during which aspiring players will be trained on how to use the equipment, the safety precautions and the international conventions on how the game is played.


2.3 Game Facilities UP will offer world class arenas and will be equipped with advanced equipment such as modern markers (paintball guns), spot lights, laser sights, scopes and the latest in tactical and protective gear to make the experience as realistic and exhilarating as possible. In addition to the normal day games, members may opt for a more adventurous “Night Stalker” Game. Set in low light conditions and using glow-in-the-dark paintballs, “Night Stalker” Games will offer the ultimate heart pounding paintball experience. Arena Game Time, Equipment and Paintballs will be packaged to offer members value for money: GI (General Issue) Package:

Arena Time: 1 hour

Includes: • 250 Paintballs • Protective Equipment Hire • Marker & CO2 Gas Hire

SOF (Soldier Of Fortune) Package:

Arena Time: 1.5 hours Includes:

• 500 Paintballs • Protective Equipment Hire • Marker & CO2 Gas Hire

SOG (Special Operations Group) Package:

Arena Time: 2 hours

Includes: • 750 Paintballs • Protective Equipment Hire • Marker & CO2 Gas Hire

Additional arena time, equipment and paintballs will be offered as optional upgrades at an additional cost.


UP will initially offer two field arenas: A) Urban Combat Arena (UCA) 5 This is a low intensity, highly organized arena, catering to players that prefer a less physically intense game. While the UCA arena might be small and confined, games will require quick reflexes and “thinking on your feet”.

Figure 2. Example of a typical Urban Combat Arena – Airport Scenario.

Figure 1. Example of a typical Urban Combat Arena - Street Scenario.

Players can play-out urban warfare scenarios where teams are small and are entrenched in complex environments such as inside houses, behind cars, barrels, walls and other obstacles commonly found in urban environments. B) War Zone Arena (WZA) 6 This is a high intensity and physically demanding arena suited to players who enjoy the strategic and physical challenges of playing over large areas and being part of larger teams (6 players or more per team). Games in this arena are played over various terrain types, and players must use the complexity of the terrain for concealment and/or to gain a tactical advantage.

Figure 4. Example of typical trenches

found in a War Zone Arena.

Figure 3. Example of a typical forest and swamp terrain found in a War Zone Arena.

5 UCA - Figures 1 & 2 reference http://www.mayhem-paintball.co.uk/scenarios.aspx 6 WZA - Figure 3 reference http://www.paintballsports.com.au/

- Figure 4 reference http://www.huntervalleypaintball.com.au/index.php?pageId=3000


http://www.mayhem-paintball.co.uk/scenarios.aspx

http://www.paintballsports.com.au/

http://www.huntervalleypaintball.com.au/index.php?pageId=3000

Teams battle it out in trenches, swamps and forests, defend strongholds and bunkers or set up ambushes for patrols. The WZA will require physical fitness, strategic thinking and a high sense of orientation. 2.4 Food & Bar Facilities The Club House will serve drinks & simple meals, and players will be able to rest & socialize before and after games. The Club will also aim to obtain a liquor license for onsite consumption of alcohol and will also be available for hire for events such as birthdays, bucks nights and other functions. 2.5 Merchandise Store The Merchandise Store will stock a variety of paint ball merchandise and memorabilia as well as a comprehensive range of paintball equipment. Members will be able to purchase their own equipment, including tactical vests, masks, overalls, paintballs etc. 2.6 Free Member Services Free Pick-Up and Return. Free mini-bus service for large bookings. Locker Hire. Player lockers for storage of valuables. Change Rooms. Player showers and dressing rooms. Club Armoury. On site storage of player personal paintball equipment. 2.7 Hours Of Operation UP will operate, year round. The anticipated hours of operation are as follows: Monday – Wednesday Closed – Bookings Only Day Games Night Games Wednesday ( Holidays Only) 9am-6pm 7pm-9pm Thursday 8am-6pm 7pm-10pm Friday 8am-6pm 7pm-10pm Saturday 8am-6pm 7pm-11pm Sunday 10am-6pm 7pm-9pm Public holidays 8am-6pm 7pm-10pm Christmas/New Years Closed Good Friday/Easter Sunday Closed It is expected that some seasonal adjustments to the hours and days of operation will be required.


2.8 Location The proposed location for establishing the business is at Lot 2180 Arnhem Highway LAMBELLS LAGOON, NT. This is a 220 acre farm, of which the company intends to initially purchase 25 acres. The land parcel that the company is looking at is located within an hour’s drive from Darwin City and comes with a Manager’s Residence. The location was chosen because it satisfies all the requirements of a paintball operation:

• It is located sufficiently away from

housing - privacy and isolation. • It is located only within an hour’s

drive from the city - closer than most parks and recreational resorts.

• It is directly off a main highway - easy to find and has year round access.

• It offers the opportunity for expansion in the future.

• The terrain is rich in vegetation and has a variety of natural components that can be used as part of the arena infrastructure.

• It has a Manager’s/Caretaker’s Residence. • It is fully fenced off.

2.9 Employees UP’s initial staffing requirements are provided in Table 1. All staff except for the Manager will be hired on a casual basis. The business’ staffing arrangements will be flexible in order to adapt to the seasonality and fluctuations in the business. Table 1 : Staff Requirements

Position No. ofStaff/Shift

No. of Shifts

Duties & Responsibilities

Food & Beverage Personnel

1 2 Running the bar and meal facilities.

Administration Personnel

1 2 Bookings and general administration duties

Safety Officers 1 2 Training and safety oversight. General Duties Personnel

1 2 General duties, cleaning and maintenance, bus driver.

Manager 1 1 Managerial duties, day to day running of the business.

Figure 5. The Manager's Residence at Lot 2180 Arnhem Highway.


During operation, the business will run two 8 hour shifts to cover the long hours required for the Day/Night Games Schedule.

3 Legal Information 3.1 Legislation The Firearms Amendment (Paintball) Act 2007 was introduced into the Northern Territory Parliament early Augusts. On the 23rd of August 2007 the Territory Parliament passed the legislation. The main points7 of the legislation are:

• The Police Commissioner is responsible for the licencing of paintball operations and paintball employees;

• Paintball games will be restricted to approved venues; • There will be no private ownership of paintball guns, which can only be

stored at licenced paintball venues; • A paintball operation must be run by a body corporate that is an Australian-

registered company; • A licenced paintball operation must have a minimum $10 million in public

liability insurance; • A licenced operator must complete an approved safety course; • A paintball licence will cost $300 a year. Employee licences will cost $20 a

year; • People must be at least 18 years old to play.

3.2 Legal Structure UP will be owned and operated by Outdoor & Tactical (NT) Pty Ltd, a privately owned, proprietary limited company. Based on the legal structure of the business:

• The company is a separate legal entity and the license holder for the operation.

• The company shareholders have limited liability. • The company is not terminated by death or bankruptcy of a shareholder or

director. 3.3 Insurance As per the legislation, UP will maintain the following types of insurance:

• Public Liability Insurance $20,000,000.00 • Workers Compensation 5% of Total Wages

7 Points from Paintball Legislation Passed media release. http://www.nt.gov.au/dcm/ocm/media/index.cfm?fuseaction=viewRelease&id=2885&d=5


http://www.nt.gov.au/dcm/ocm/media/index.cfm?fuseaction=viewRelease&id=2885&d=5

• Vehicle Insurance As Required • Business Premises Insurance As Required

3.4 Licensing & Registration As per NT Legislation, UP will have to obtain and maintain the following licences in order to fully operate:

• Paintball Operators Licence. Administered by the NT Police. • Paintball Employees Licence. Administered by the NT Police • Liquor Licence. Administered by the NT Justice Department. • Food Business Registration: Administered by the Department of Health and

Community Services8 under the Food Act 2004.

4 Financial Information 4.1 Funding In order to establish and operate UP, the company intends to invest a total of $1,500.000.00. The capital will come from two sources:

a) Shareholders Investment: $1,000,000.00 b) Bank Loan: $ 500,000.00

The Shareholders Investment is made of 4 parcels, each at $250,000.00. The bank loan will be a standard 10 year Business Loan through a mainstream bank. 4.2 Start Up Expenditure The Start Up Expenditure9 covers the land purchase, building improvements, operating start up costs, supplies and administrative costs. The largest Start-Up Expenditure item is the Land and Buildings at $900,000.00, followed by Advertising & Promotion Expenses and Capital Equipment Purchases. Start-Up Expenditure also includes a generous allowance ($75,000.00) for contingencies and unforseen set-up expenses, as well as a large sum ($100,000.00) for Working Capital that could be used to support the business operation if required. 8 Reference from: http://www.nt.gov.au/health/healthdev/environ_health/application_form.shtml#foodonline 9 Refer to Appendix 8.1.


http://www.nt.gov.au/health/healthdev/environ_health/application_form.shtml#foodonline

4.3 Twelve Month Sales Forecast The Twelve Month Sales Forecast10 was based on a range of assumptions. While it is anticipated that the heavy promotion and publicity campaign at the pre start-up stage will generate sufficient interest, the forecasts used conservative estimates to test the viability of the business under difficult conditions. The following assumptions where made in estimating sales:

• Season A11 - June, July and August. Arena Occupancy Rates at 50% of capacity.

• Season B12 - September, October, November and March, April, May. Arena Occupancy Rates at 40% of capacity.

• Season C13 - December, January and February. Arena Occupancy Rates at 30% of capacity.

The Twelve Month Sales Forecast also makes the assumption that the mid-range SOF Package (@ $95 each) will be the most popular, making up 50% of the Paintball Packages Sales. During the peak Season A, the business is expected to turn-over a combined sales total (all categories) of at least $106,580.00/month. During Season B, which represents half the year, the turn-over expected is at least $85,920.00/month. Sales are expected to drop to just under $63,940.00/month during the 3 months of Season C. The total turn-over for the first 12 months of operation is estimated to be at least $1,027,080.00. 4.4 Twelve Month Cash Flow Forecast The Twelve Month Cash Flow Forecast14 is based on the assumption that UP will be operational as of July 2008. Combined Cash Sales figures are based on the Twelve Month Sales Forecast. The Combined Cash Sales every month exceed the Cash Paid Out; even during Season-C, when expected Arena Occupation Rates are at their lowest. This means that the business will be in a Cash Positive Position throughout the year, with the Net Cash Position at the end of each month progressively increasing to an expected maximum of $372,852.30 by June 2009. The business will not require any injection, and the Working Capital allowance made in the budget will be held in reserve as back-up.

10 Refer to Appendix 8.2. 11 Dry season months, schools are on holidays and the tourist season at its peak. 12 Tail end of both the dry and wet seasons with the probability of rain. Schools are on and the tourist season is either at the late or beginning stages. 13 Wet season months. Some business activity is expected as a result of the public holidays, school holidays and the festive season. 14 Refer to Appendix 8.3.


4.5 Twelve Month Profit and Loss Forecast The Twelve Month Profit & Loss Forecast15 (P&L) gives a monthly breakdown of the business’s performance. Using the same conservative figures as previously, the P&L Statement demonstrates that the business will be a profitable operation from its first year of operation. Even during Season C, the business will maintain profitability. Net Profitability of UP for the first year of operation totals $339,852.30 before tax. This is a Net Profit Rate before tax of 33.1% of the total revenue. In terms of Return on Investment, the business will return a minimum of 22.65% (before tax) for the first year, not including capital gains on the land and improvements.

5 Marketing Plan 5.1 Target Market As shown by the Market Research Results16, UP’s target market are men & women aged between 18-45; who are physically fit, healthy and energetic. Additionally, UP will be targeting corporate groups (both government and private), security firms, services (police, fire & rescue, ambulance) and military personnel. 5.2 Market Segmentation Geographic: The northern parts of the NT including Darwin, Palmerston

and Katherine. Demographic: Female and males between the ages of 18-45 years old,

middle and high income earners, all education levels and from all social groups.

Psychographic: People who love the outdoors and have a sense of adventure,

have a competitive streak, like being part of a team and meeting new people.

5.3 Advertising The advertising campaign for UP will be divided into three main phases, aimed at maximising exposure, anticipation, excitement and sustained interest in the newly available sport. 15 Refer to Appendix 8.4 16 Refer to Appendix 8.5.


1. Awareness Campaign. This campaign will focus on making the public aware of the sport and its benefits. It will be a consistent, low key promotional campaign to create familiarity of the sport, using mostly printed media (pamphlets, magazines and news papers). Posters will also be pinned up around schools, streets, sporting clubs and shopping centres.

2. Pre-Opening Hype. In this phase, the advertising will be more

aggressive, engaging all media types available, including print, TV and radio. It will build up momentum as the opening day approaches and it will aim to excite & create anticipation.

3. Periodic Stimulation. During this phase, the advertising will be in the

form of regular and sustained exposure, aiming at maintaining the interest in the sport. This campaign will focus on special events and dates such as significant national days and holidays (ANZAC, Queen’s Birthday, Labour Day etc).

6 Strategic Direction 6.1 SWOT Analysis

• Strengths UP will be a unique business in the NT. The sport has been long anticipated. Darwin has a growing population and much of the growth is

fuelled by people from southern states who are familiar with the sport.

• Weaknesses

Infrastructure and initial equipment set-up is expensive. Seasonally affected. Costly to play.

• Opportunities

Can used for special personnel training (security companies, police, military etc.).

• Threats

Paintball is an outdoor activity and will be in direct competition with other adrenalin orientated sports such as Go-carts.

Paintball will also be in competition with other team based sports such as indoor sports, Zone-3 – laser games, bowling etc.

Since paintball involves combat tactics, the business will be vulnerable to changes to the legislation in response to



negative events, bad publicity, and pressure from gun control lobby groups.

6.2 Future Opportunities

• Add new arenas to increase the number of players per day. • Become a regular host for national and international paintball tournaments,

to gain exposure and raise the club’s profile on a national & international level.

• Expand food, bar and merchandise sales. • Form cooperative training agreements between the police and military,

security companies etc. 6.3 Future Requirements To facilitate future opportunities, UP will need:

• Land for expansion. • Infrastructure for the new arenas and facilities. • Suitably skilled staff.

7 Conclusions The legalisation of paintball in the NT presents a unique business opportunity. Establishing a paintball business in the NT as early as possible will take advantage of the lack of competition and the anticipation of the general public & enthusiasts that have played the game elsewhere. While the operation as a whole is capital intensive, the majority of the funds is tied up in real estate and building improvements, which means that they are not only readily recoverable, but they are also likely to appreciate in value with time. Once established the operation is relatively simple and with the right management, it will generate substantial returns for the investment.

WORD COUNT: 2992

Appendices

A) SOURCES OF CAPITAL

SHAREHOLDER INVESTMENT250,000.00250,000.00250,000.00250,000.00

1,000,000.00

BANK LOANS500,000.00

500,000.00

B) STARTUP EXPENSESBUILDING/REALESTATE

550,000.00250,000.00100,000.00

900,000.00

CAPITAL & OTHER EQUIPMENT22,500.00

Electrical Goods (Washing Machines/Fridges/Cooking Facilities) 27,500.0012,500.002,500.001,500.00

Overals 1,500.00Hoppers 2,000.00

40,000.00110,000.00

ADMINISTRATIVE EXPENCES50,000.0010,000.0015,000.0030,000.0010,000.00

115,000.00

OPENING INVENTORY5,000.002,500.002,500.005,000.00

10,000.0025,000.00

ADVERTISING & PROMOTIONAL EXPENDITURE125,000.0020,000.0015,000.00

160,000.00

OTHER EXPENCES15,000.00

15,000.00

75,000.00

100,000.00

C) SUMMARY STATEMENTSOURCES OF CAPITAL

1,000,000.00500,000.00

1,500,000.00

START-UP EXPENDITURE900,000.00110,000.00115,000.0025,000.00

160,000.0015,000.0075,000.00

100,000.00

1,500,000.00

Contingency fundWorking capital

Total Startup Expenditure

Location/administration expensesOpening inventoryAdvertising/promotional expensesOther expenses

Capital equipment

WORKING CAPITAL

Shareholder's InvestmentBank LoansTotal Source of Funds

Buildings/real estate

Travel - Research/Study of Other Paintball Operations

Total Advertising/Promotional Expenses

Total Other Expenses

RESERVE FOR CONTINGENCIES

Total Inventory

Advertising CampaignsSignagePrinting

Paintballs

FoodDrinksMerchandise

CO2 Gas

Prepaid insurancePre-opening salaries OtherTotal Administrative Expenses

Mini Bus Total Capital & OtherEquipment

Loan Repayments (6 months repayment on loan)Legal and accounting fees

APPENDIX 8.1 START-UP EXPENDITUREULTIMATE PAINTBALL

Total Buildings/Real Estate

Furniture (Office Furniture/Lockers/Seating & Tables)

Total Bank Loans

Total Investment

Bank 1

Land (Incl. Purchase/GST/Stamp Duty/Legals)Remodeling of Existing Premisses - House/Eatery/Office/StoresConstruction of Arenas

MarkersFace MaskGloves

Shareholder 1 - 25%Shareholder 2 - 25%Shareholder 3 - 25%Shareholder 4 - 25%

APPENDIX 8.2 TWELVE MONTH SALES FORECASTULTIMATE PAINTBALL

Fiscal Year Begins Jul-0812-month Sales Forecast

Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Annual Totals

GI (General Issue) Packages 384 384 307 307 307 230 230 230 307 307 307 384 3684Sale price @ unit 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00 60.00

GI Package TOTAL 23,040 23,040 18,420 18,420 18,420 13,800 13,800 13,800 18,420 18,420 18,420 23,040 221,040

SOF (Soldier of Fortune) Packages 512 512 410 410 410 307 307 307 410 410 410 512 4917Sale price @ unit 95.00 95.00 95.00 95.00 95.00 95.00 95.00 95.00 95.00 95.00 95.00 95.00

SOF Package TOTAL 48,640 48,640 38,950 38,950 38,950 29,165 29,165 29,165 38,950 38,950 38,950 48,640 467,115

SOG (Special Operations Group) Packages 192 192 154 154 154 115 115 115 154 154 154 192 1845Sale price @ unit 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00

SOG Package TOTAL 24,000 24,000 19,250 19,250 19,250 14,375 14,375 14,375 19,250 19,250 19,250 24,000 230,625

Extra Paintball Sales (Packs of 100) 200 200 175 175 175 100 100 100 175 175 175 200 1950Sale price @ Pack of 100 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00

Extra Paint Ball Sales TOTAL 4,000 4,000 3,500 3,500 3,500 2,000 2,000 2,000 3,500 3,500 3,500 4,000 39,000

Merchandise Sales 75 75 65 65 65 50 50 50 65 65 65 75 765Sale price @ unit 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00

Merchandise TOTAL 1,500 1,500 1,300 1,300 1,300 1,000 1,000 1,000 1,300 1,300 1,300 1,500 15,300

Drink Sales 600 600 500 500 500 400 400 400 500 500 500 600 6000Sale price @ unit 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00

Drinks TOTAL 2,400 2,400 2,000 2,000 2,000 1,600 1,600 1,600 2,000 2,000 2,000 2,400 24,000

Food Sales 600 600 500 500 500 400 400 400 500 500 500 600 6000Sale price @ unit 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00

Food Sales TOTAL 3,000 3,000 2,500 2,500 2,500 2,000 2,000 2,000 2,500 2,500 2,500 3,000 30,000

Monthly totals: All Categories 106,580 106,580 85,920 85,920 85,920 63,940 63,940 63,940 85,920 85,920 85,920 106,580 1027080

Pricing Structure Formula for working out the 12 Month Sales Forecast:Packages Price ($)GI Package: $60/Package/Pers. 16 (hours of operation per day) x 4 (days of week operating) x 4 (weeks) SOF Package: $95/Package/Pers. = 256 hours of operation/month SOG Package: $125/Package/Pers. 256 hrs/m x 50% = 128 hrs/m of Hired Arena Time at 50% capacity

128 hrs/m x 6 (minimum amount of players - 3 players per team) x 2 (Arenas)= 1536 player hours a month at 50% capacity

(1536 x 50%)/1.5 Hrs = 512 SOF Packages Per Month based on the assumption that it will be the most popular package.(1536 x 25%)/1 Hrs = 384 GI Packages based on the assumption that it will be the second most popular package(1536 x 25%)/2 Hrs = 192 SOG Packages based on the assumption that it will be the equaly popular to the GI package

The same process was used to predict the 40% and 30% capacity.

APPENDIX 8.3 TWELVE MONTH CASH FLOW FORECASTJul-08

Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Total Item ESTCASH ON HAND (BEGINNING OF MONTH) $0.00 $36,606.00 $81,392.00 $113,670.00 $146,598.00 $181,126.00 $202,348.10 $227,140.20 $246,112.30 $279,140.30 $312,568.30 $344,596.30

CASH RECEIPTSCombined Cash Sales (All Categories) $106,580.00 $106,580.00 $85,920.00 $85,920.00 $85,920.00 $63,940.00 $63,940.00 $63,940.00 $85,920.00 $85,920.00 $85,920.00 $106,580.00 $1,027,080.00TOTAL CASH RECEIPTS $106,580.00 $106,580.00 $85,920.00 $85,920.00 $85,920.00 $63,940.00 $63,940.00 $63,940.00 $85,920.00 $85,920.00 $85,920.00 $106,580.00 $1,027,080.00

CASH PAID OUTPurchases (Inventory) $19,394.00 $19,394.00 $15,692.00 $15,692.00 $15,692.00 $11,802.00 $11,802.00 $11,802.00 $15,692.00 $15,692.00 $15,692.00 $19,394.00 $187,740.00Gross wages $21,000.00 $21,000.00 $17,000.00 $17,000.00 $17,000.00 $11,666.00 $11,666.00 $11,666.00 $17,000.00 $17,000.00 $17,000.00 $21,000.00 $199,998.00Payroll Expenses (Super, Work Cover, etc.) $3,150.00 $3,150.00 $2,550.00 $2,550.00 $2,550.00 $1,749.90 $1,749.90 $1,749.90 $2,550.00 $2,550.00 $2,550.00 $3,150.00 $29,999.70(Plumbing/Electical/Mechanical) $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $1,250.00 $7,500.00Supplies (office & oper.) $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $900.00Repairs & maintenance $500.00 $500.00 $5,000.00 $2,500.00 $8,500.00Advertising $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $30,000.00Accounting & legal $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $15,000.00 $19,000.00Gas $280.00 $280.00 $280.00 $840.00Electricity $1,500.00 $1,500.00 $1,000.00 $1,000.00 $5,000.00Water $500.00 $500.00 $250.00 $500.00 $1,750.00Telephone $250.00 $250.00 $250.00 $250.00 $1,000.00Fuel, Oil & Lubricants $1,500.00 $1,500.00 $1,250.00 $1,250.00 $1,250.00 $1,000.00 $1,000.00 $1,000.00 $1,250.00 $1,250.00 $1,250.00 $1,500.00 $15,000.00Insurance $9,000.00 $9,000.00Loan Repayments $8,500.00 $8,500.00 $8,500.00 $8,500.00 $8,500.00 $8,500.00 $8,500.00 $8,500.00 $8,500.00 $8,500.00 $8,500.00 $8,500.00 $102,000.00Other expenses (Replacement of Lost & Damaged Equipment etc.) $2,500.00 $2,500.00 $2,000.00 $2,000.00 $2,000.00 $1,000.00 $1,000.00 $1,000.00 $2,000.00 $2,000.00 $2,000.00 $2,500.00 $22,500.00Miscellaneous $1,500.00 $1,500.00 $1,250.00 $1,250.00 $1,250.00 $500.00 $500.00 $500.00 $1,250.00 $1,250.00 $1,250.00 $1,500.00 $13,500.00Capital Purchase (Additional Plant & Equipment) $5,000.00 $5,000.00 $10,000.00TOTAL CASH PAYMANTS $69,974.00 $61,794.00 $53,642.00 $52,992.00 $51,392.00 $42,717.90 $39,147.90 $44,967.90 $52,892.00 $52,492.00 $53,892.00 $78,324.00 $654,227.70

TOTAL CASH IN $106,580.00 $106,580.00 $85,920.00 $85,920.00 $85,920.00 $63,940.00 $63,940.00 $63,940.00 $85,920.00 $85,920.00 $85,920.00 $106,580.00 $1,027,080.00TOTAL CASH OUT $69,974.00 $61,794.00 $53,642.00 $52,992.00 $51,392.00 $42,717.90 $39,147.90 $44,967.90 $52,892.00 $52,492.00 $53,892.00 $78,324.00 $654,227.70

NET CASHFLOW FOR THE MONTH $36,606.00 $44,786.00 $32,278.00 $32,928.00 $34,528.00 $21,222.10 $24,792.10 $18,972.10 $33,028.00 $33,428.00 $32,028.00 $28,256.00

NET CASH POSSITION (END OF EACH MONTH) $36,606.00 $81,392.00 $113,670.00 $146,598.00 $181,126.00 $202,348.10 $227,140.20 $246,112.30 $279,140.30 $312,568.30 $344,596.30 $372,852.30

ULTIMATE PAINTBALL

Fiscal Year Begins:

ULTIMATE PAINTBALLFiscal Year Begins

APPENDIX 8.4 TWELVE MONTH PROFIT & LOSS FORECASTJul-08

Jul-0

8

%

Aug-

08

% Sep-

08

% Oct-0

8

% Nov-

08

% Dec-

08

% Jan-

09

% Feb-

09

% Mar

-09

% Apr-0

9

% May

-09

% Jun-

09

% YEAR

LY

%

Revenue (Sales)GI Package $23,040.00 21.6 $23,040.00 21.6 $18,420.00 21.4 $18,420.00 21.4 $18,420.00 21.4 $13,800.00 21.6 $13,800.00 21.6 $13,800.00 21.6 $18,420.00 21.4 $18,420.00 21.4 $18,420.00 21.4 $23,040.00 21.6 $221,040.00 21.5SOF Package $48,640.00 45.6 $48,640.00 45.6 $38,950.00 45.3 $38,950.00 45.3 $38,950.00 45.3 $29,165.00 45.6 $29,165.00 45.6 $29,165.00 45.6 $38,950.00 45.3 $38,950.00 45.3 $38,950.00 45.3 $48,640.00 45.6 $467,115.00 45.5SOG Package $24,000.00 22.5 $24,000.00 22.5 $19,250.00 22.4 $19,250.00 22.4 $19,250.00 22.4 $14,375.00 22.5 $14,375.00 22.5 $14,375.00 22.5 $19,250.00 22.4 $19,250.00 22.4 $19,250.00 22.4 $24,000.00 22.5 $230,625.00 22.5Extra Paintball Sales $4,000.00 3.8 $4,000.00 3.8 $3,500.00 4.1 $3,500.00 4.1 $3,500.00 4.1 $2,000.00 3.1 $2,000.00 3.1 $2,000.00 3.1 $3,500.00 4.1 $3,500.00 4.1 $3,500.00 4.1 $4,000.00 3.8 $39,000.00 3.8Merchandise Sales $1,500.00 1.4 $1,500.00 1.4 $1,300.00 1.5 $1,300.00 1.5 $1,300.00 1.5 $1,000.00 1.6 $1,000.00 1.6 $1,000.00 1.6 $1,300.00 1.5 $1,300.00 1.5 $1,300.00 1.5 $1,500.00 1.4 $15,300.00 1.5Drink Sales $2,400.00 2.3 $2,400.00 2.3 $2,000.00 2.3 $2,000.00 2.3 $2,000.00 2.3 $1,600.00 2.5 $1,600.00 2.5 $1,600.00 2.5 $2,000.00 2.3 $2,000.00 2.3 $2,000.00 2.3 $2,400.00 2.3 $24,000.00 2.3Food Sales $3,000.00 2.8 $3,000.00 2.8 $2,500.00 2.9 $2,500.00 2.9 $2,500.00 2.9 $2,000.00 3.1 $2,000.00 3.1 $2,000.00 3.1 $2,500.00 2.9 $2,500.00 2.9 $2,500.00 2.9 $3,000.00 2.8 $30,000.00 2.9Total Revenue (Sales) $106,580.00 100.0 $106,580.00 100.0 $85,920.00 100.0 $85,920.00 100.0 $85,920.00 100.0 $63,940.00 100.0 $63,940.00 100.0 $63,940.00 100.0 $85,920.00 100.0 $85,920.00 100.0 $85,920.00 100.0 $106,580.00 100.0 $1,027,080.00 100.0

Cost of SalesGI Package $3,840.00 16.7 $3,840.00 16.7 $3,070.00 16.7 $3,070.00 16.7 $3,070.00 16.7 $2,300.00 16.7 $2,300.00 16.7 $2,300.00 16.7 $3,070.00 16.7 $3,070.00 16.7 $3,070.00 16.7 $3,840.00 16.7 $36,840.00 16.7SOF Package $7,680.00 15.8 $7,680.00 15.8 $6,150.00 15.8 $6,150.00 15.8 $6,150.00 15.8 $4,605.00 15.8 $4,605.00 15.8 $4,605.00 15.8 $6,150.00 15.8 $6,150.00 15.8 $6,150.00 15.8 $7,680.00 15.8 $73,755.00 15.8SOG Package $4,416.00 18.4 $4,416.00 18.4 $3,542.00 18.4 $3,542.00 18.4 $3,542.00 18.4 $2,645.00 18.4 $2,645.00 18.4 $2,645.00 18.4 $3,542.00 18.4 $3,542.00 18.4 $3,542.00 18.4 $4,416.00 18.4 $42,435.00 18.4Extra Paintball Sales $320.00 8.0 $320.00 8.0 $280.00 8.0 $280.00 8.0 $280.00 8.0 $160.00 8.0 $160.00 8.0 $160.00 8.0 $280.00 8.0 $280.00 8.0 $280.00 8.0 $320.00 8.0 $3,120.00 8.0Merchandise Sales $1,038.00 69.2 $1,038.00 69.2 $900.00 69.2 $900.00 69.2 $900.00 69.2 $692.00 69.2 $692.00 69.2 $692.00 69.2 $900.00 69.2 $900.00 69.2 $900.00 69.2 $1,038.00 69.2 $10,590.00 69.2Drink Sales $900.00 37.5 $900.00 37.5 $750.00 37.5 $750.00 37.5 $750.00 37.5 $600.00 37.5 $600.00 37.5 $600.00 37.5 $750.00 37.5 $750.00 37.5 $750.00 37.5 $900.00 37.5 $9,000.00 37.5Food Sales $1,200.00 40.0 $1,200.00 40.0 $1,000.00 40.0 $1,000.00 40.0 $1,000.00 40.0 $800.00 40.0 $800.00 40.0 $800.00 40.0 $1,000.00 40.0 $1,000.00 40.0 $1,000.00 40.0 $1,200.00 40.0 $12,000.00 40.0Total Cost of Sales $19,394.00 18.2 $19,394.00 18.2 $15,692.00 18.3 $15,692.00 18.3 $15,692.00 18.3 $11,802.00 18.5 $11,802.00 18.5 $11,802.00 18.5 $15,692.00 18.3 $15,692.00 18.3 $15,692.00 18.3 $19,394.00 18.2 $187,740.00 18.3

Gross Profit $87,186.00 81.8 $87,186.00 81.8 $70,228.00 81.7 $70,228.00 81.7 $70,228.00 81.7 $52,138.00 81.5 $52,138.00 81.5 $52,138.00 81.5 $70,228.00 81.7 $70,228.00 81.7 $70,228.00 81.7 $87,186.00 81.8 $839,340.00 81.7

ExpensesGross wages $21,000.00 19.7 $21,000.00 19.7 $17,000.00 19.8 $17,000.00 19.8 $17,000.00 19.8 $11,666.00 18.2 $11,666.00 18.2 $11,666.00 18.2 $17,000.00 19.8 $17,000.00 19.8 $17,000.00 19.8 $21,000.00 19.7 $199,998.00 19.5

Payroll Expenses (Super, Work Cover, etc.)$3,150.00 3.0 $3,150.00 3.0 $2,550.00 3.0 $2,550.00 3.0 $2,550.00 3.0 $1,749.90 2.7 $1,749.90 2.7 $1,749.90 2.7 $2,550.00 3.0 $2,550.00 3.0 $2,550.00 3.0 $3,150.00 3.0 $29,999.70 2.9

Outside services (Plumbing/Electical/Mechanical) 0.0 $1,250.00 1.2 0.0 $1,250.00 1.5 0.0 $1,250.00 2.0 0.0 $1,250.00 2.0 0.0 $1,250.00 1.5 0.0 $1,250.00 1.2 $7,500.00 0.7

Supplies (office & oper.) $150.00 0.1 0.0 $150.00 0.2 0.0 $150.00 0.2 0.0 $150.00 0.2 0.0 $150.00 0.2 0.0 $150.00 0.2 0.0 $900.00 0.1

Repairs & maintenance 0.0 0.0 0.0 $500.00 0.6 0.0 $500.00 0.8 0.0 $5,000.00 7.8 0.0 0.0 $2,500.00 2.9 0.0 $8,500.00 0.8

Advertising $2,500.00 2.3 $2,500.00 2.3 $2,500.00 2.9 $2,500.00 2.9 $2,500.00 2.9 $2,500.00 3.9 $2,500.00 3.9 $2,500.00 3.9 $2,500.00 2.9 $2,500.00 2.9 $2,500.00 2.9 $2,500.00 2.3 $30,000.00 2.9Accounting & legal $500.00 0.5 $500.00 0.5 $500.00 0.6 $500.00 0.6 $500.00 0.6 0.0 0.0 0.0 $500.00 0.6 $500.00 0.6 $500.00 0.6 $15,000.00 14.1 $19,000.00 1.8Gas $280.00 0.3 0.0 0.0 0.0 0.0 0.0 $280.00 0.4 0.0 0.0 0.0 0.0 $280.00 0.3 $840.00 0.1Electricity 0.0 0.0 $1,500.00 1.7 0.0 0.0 $1,500.00 2.3 0.0 0.0 $1,000.00 1.2 0.0 0.0 $1,000.00 0.9 $5,000.00 0.5Water 0.0 0.0 $500.00 0.6 0.0 0.0 $500.00 0.8 0.0 0.0 $250.00 0.3 0.0 0.0 $500.00 0.5 $1,750.00 0.2Telephone 0.0 0.0 $250.00 0.3 0.0 0.0 $250.00 0.4 0.0 0.0 $250.00 0.3 0.0 0.0 $250.00 0.2 $1,000.00 0.1Fuel, Oil & Lubricants $1,500.00 1.4 $1,500.00 1.4 $1,250.00 1.5 $1,250.00 1.5 $1,250.00 1.5 $1,000.00 1.6 $1,000.00 1.6 $1,000.00 1.6 $1,250.00 1.5 $1,250.00 1.5 $1,250.00 1.5 $1,500.00 1.4 $15,000.00 1.5Insurance $9,000.00 8.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $9,000.00 0.9Loan Repayments - Interest Portion $8,500.00 8.0 $8,500.00 8.0 $8,500.00 9.9 $8,500.00 9.9 $8,500.00 9.9 $8,500.00 13.3 $8,500.00 13.3 $8,500.00 13.3 $8,500.00 9.9 $8,500.00 9.9 $8,500.00 9.9 $8,500.00 8.0 $102,000.00 9.9Other expenses (Replacement of Lost & Damaged Equipment etc.) $2,500.00 2.3 $2,500.00 2.3 $2,000.00 2.3 $2,000.00 2.3 $2,000.00 2.3 $1,000.00 1.6 $1,000.00 1.6 $1,000.00 1.6 $2,000.00 2.3 $2,000.00 2.3 $2,000.00 2.3 $2,500.00 2.3 $22,500.00 2.2

Miscellaneous $1,500.00 1.4 $1,500.00 1.4 $1,250.00 1.5 $1,250.00 1.5 $1,250.00 1.5 $500.00 0.8 $500.00 0.8 $500.00 0.8 $1,250.00 1.5 $1,250.00 1.5 $1,250.00 1.5 $1,500.00 1.4 $13,500.00 1.3

Depreciation (Plant, Equipment, Infrastucture) $2,750.00 2.6 $2,750.00 2.6 $2,750.00 3.2 $2,750.00 3.2 $2,750.00 3.2 $2,750.00 4.3 $2,750.00 4.3 $2,750.00 4.3 $2,750.00 3.2 $2,750.00 3.2 $2,750.00 3.2 $2,750.00 2.6 $33,000.00 3.2

Total Expenses $53,330.00 50.0 $45,150.00 42.4 $40,700.00 47.4 $40,050.00 46.6 $38,450.00 44.8 $33,665.90 52.7 $30,095.90 47.1 $35,915.90 56.2 $39,950.00 46.5 $39,550.00 46.0 $40,950.00 47.7 $61,680.00 57.9 $499,487.70 48.6

Net Profit (Before Tax) $33,856.00 31.8 $42,036.00 39.4 $29,528.00 34.4 $30,178.00 35.1 $31,778.00 37.0 $18,472.10 28.9 $22,042.10 34.5 $16,222.10 25.4 $30,278.00 35.2 $30,678.00 35.7 $29,278.00 34.1 $25,506.00 23.9 $339,852.30 33.1

Appendix 8.5 Market Research Survey Results In this survey 50 random people were surveyed in the community. Of the 50 people that were interviewed 10% would not go and play paintball and therefore were not included in the remainder of the survey.

On Intention of Playing Paintball

Yes 90%

No10%

Y es

No

Gender of Subjects Interviewed Residency Status of Subjects Interviewed

NT

82%

Other18% NT

Male44%

Female56%

Female

MaleOther

Age Distribution of Subjects Interviewed On General Knowledge of Paintball

18-3032%

31-4546%

45+22%

18-3031-4545+ Yes

94%

No6%

Yes

No

Preferred Days For Playing Day 1 Day 2

Price The Subjects Were Prepared To Pay For A 1 Hour Game.

Thurs13%

Fri38%

Sat29%

Sun11%

Wed5%

Tues2%

Mon2% MonMon

TuesWedThursFriSatSun

Sat58%

Sun32%

Mon0%

Tues0%

Wed0%

Fri10%

Thurs0%

TuesWedThursFriSatSun

$50- $7960%

$80+22%

$0 - $4918%

$0 - $49

$50- $79

$80+

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