Business project - uSport, and sports memorabilia industry

Résumé du document

US port mission consists of providing sport recordings in order to allow the user to feel protagonist during his/her sport performance or simply to be able to re-watch a video for training purpose. 'Did you really do it?' is our slogan, and it is the one that best underlies our business proposition, capture the 'very best moments' of a normal sport performance and record the images forever. US port technology completes every extraordinary athletic feat because, from now on, it will be possible for players to record, share, compare and improve their gestures.

Extraits

[...] The idea is to collect around 15 or 30 orders in these period to have some economies of scale from the suppliers. With the planned evolution of the company in the next years the structure will need an increase in the sales force and depending on how much the volume of the sales will increase in the second or in the third year we will need a warehouse and a full-time worker technician. Commentary to the Financials Revenues We have built our financial model using three revenues scenarios with different sales expectations: A strong positive scenario A medium scenario A negative scenario We have chosen to give to each scenario a success probability in order to obtain an average scenario that can produce a good cash flow for the evaluation. [...]

[...] Financial Statement and Income Statement A 20% TVA rate and a 40% corporate tax rate has been assumed. Key financial indicators uSport ROCE and ROE will be both strongly negative in the first year but they will easily come back to positivity within the second year has been forecasted as a year characterised by strong investments that would lead both ROCE and ROE around zero. Nevertheless and 2014 will be extremely positive with ROCE and ROE reaching respectively 11% and 30%. [...]

[...] Developing the market analysis, we needed to make few assumptions. All the assumptions we made are justified by comparative data and markets and common good sense. As the analysis will show, the business has a wide potential market in France composed by more than 10 thousand clubs divided between Futsal and Tennis ones and more than 2,5 Millions players. SWOT Analysis Porter Analysis In order to introduce our market analysis we applied the Porter framework to USport industry: The fundamentals features that can confirm the potentiality of our project are the innovative aspects of the product and the wide customer base. [...]

[...] Cash Flow Statement DCF Analysis Considering a 10% WACC, the resulting cash flows are: Considering an initial investment of 100.000 the Net Present Value of uSport next five years cash flows would be 229.616 The cumulative cash flows demonstrate that the business would come back to profitability during the fourth year: the exact payback period would be 3 years and 290 days. The resulting IRR of the business is 45%. CREATION D'ENTREPRISE ET BUSINESS PLAN New Entrants This danger can rise up after the first year, if our initiative will be successful. Our product can be easily copied and there is no way of realizing a patent Competitors At the moment there are no competitors in the markets, since the product is innovative Customers As this is a B2B sector, our main customers are clubs. [...]

[...] The French tennis market is quite developed with 8.404 tennis clubs and about registered players. In order to understand the potential market for our project, we led some market analysis both in terms of clubs dimension, number of fields and number of players. First we have segmented the French market by region, to understand which geographic locations are more attractive for our project. >Than 250 Clubs 100/150 Clubs 50/100 Clubs 1/50 Clubs Afterwards we have segmented the clubs in terms of their members and number of tennis courts. [...]