business plan ski

8/18/2019 business plan ski

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University of Economics, Prague

Faculty of Business Administration

International management

Developing a business plan for Ski School Jasná

Analysis of the Business Proposition

Author: Jana Dubovs!

"u#ervisor: $gr% Ing% $artin &ue', Ph%D%


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D e c l a r a t i o n o f A u t h e n t i c i t y

I hereby declare that the $aster(s )hesis #resented herein is my o*n

*or, or fully and s#ecifically acno*ledged *herever ada#ted from

other sources% )his *or has not been #ublished or submitted

else*here for the re+uirement of a degree #rogramme%

Prague, $ay -, .-/


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A c k n o w l e d g e m e n t s

I *ould lie to than to $gr% Ing% $artin &ue', Ph%D% for his guidance and

valuable remars throughout the thesis #re#aration%

Also, I *ould lie to than to all #artici#ants of the surveys as *ell as to friends

and family for sharing their time, e0#erience, and no*ledge *ith me%

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Title of the aster!s Thesis"

Develo#ing a business #lan for "i "chool Jasn!

Abstract"

)he $aster2s )hesis analyses and evaluates the conditions for the develo#ment of "i 3"no*board "chool &45y in the Jasn! 678e )atry si resort as *ell as it illustrates s#ecific ste#s

and actions in a realistic business #lan% Firstly, it introduces theoretical bacground of feasibility

analysis, business model, and the business #lan focusing on the im#ortance and structure of each

to#ic% "econdly, the thesis #ortrays the results of an em#irical research conducted on the target

audience that are together *ith the maret analyses integrated into the business #lan% At last, the

business #lan #ro#oses mareting and financial #ro9ections that lead into final conclusion and

recommendations for the business develo#ment%

#ey words"

Business $odel, Business Plan, "i 3 "no*board "chool &45y, Jasn! 678e )atry si resort

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Table of $ontent

-% Introduction %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

-%-% $otivation and Bacground %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% ;

-%-%

%1%-% Pur#ose and Princi#les of the Business Plan %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%>

%1%% "tructure of the Business Plan %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

1% Practical Part %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 11

1%-% Em#irical Cesearch %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%11

1%-%-% Cesearch oals %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%11

1%-%% "am#le of res#ondents %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%1/

1%-%1% Cesearch $ethods %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%1>

1%-%/% Cesearch onclusions %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%1

>


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1%-%>% Cesearch Im#lications %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%/

1%-%% Cesearch &imitations %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%/1

1%% Feasibility "tudy %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%//

1%1% Business $odel anvas %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%//

1%/% Business Plan %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%/

1%/%-% E0ecutive "ummary %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%/

1%/%% om#any Descri#tion %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%/

1%/%1% $aret Analysis %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%/;

1%/%/% Product 3 "ervice %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%>/

1%/%>%


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1. Introduction

"tarting a ne* business venture is lie going into a tro#ical forest on a treasure hunt% )here are

re*ards to be *on, in both material *ealth and in #ersonal satisfaction, but there are dangers

luring and you can easily lose your *ay GBlac*ell, ..;, AbstractH%

6e* business ventures are being created every day by hundreds of #eo#le *ith the aim of

forming something ne* and uni+ue, im#roving the old, or directly ca#itali8ing on the resources

available% "ome succeed but also, many do not% o*ever, im#ortantly, it is not only the aim and

result that matters it is the *ay and 9ourney of reaching the goal% )he business creation and

develo#ment is a re*arding #rocess as an entre#reneur has to mae the most of all his strength,

no*ledge, and contacts *hile learning a lot and e0#loring the o##ortunities continuously% In that

*ay, #otential success is even more satisfying%

6e* business venture creation is a core #art of this $aster2s )hesis as it e0#lores this idea firstly

through the main and indis#ensable theoretical techni+ues such as feasibility analysis, business

model, and a business #lan so that conse+uently it could illustrate a real business idea as *ell as

the #rocess and individual ste#s behind its creation%


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1.1. Motivation and Background

I decided to *rite my $aster2s )hesis as a business #lan for more than a fe* reasons% )o begin

*ith, I can see the o##ortunity and maret s#ace for develo#ing a ne* business, in #articular si

3 sno*board school in the Jasn! 678e )atry si resort% Jasn! si resort is the closest si resort,

a##ro0imately . m, to the to*n of &i#tovsK $iul!' *here I gre* u#% For years, as a local, I

have been able to *atch the environment and its #eo#le tourists as *ell as the develo#ment,

u#grade, and both small and large scale changes% "econdly, I and my family have al*ays been

fond of s#orts and above all siing: my dad is an al#ine race coach, my sister is a #art of the

Al#ine 6ational )eam and I have been a si instructor since I *as - years old% )herefore, I

believe that *ith #ro#er su##orting sources I am able to assess the situation on the maret, need

for a ne* venture and convey matching sills to develo# a ne* business%

Additionally, entre#reneurshi# and innovation, creating a value out of a mere idea, building a

ne* venture from a scratch is a fascinating #rocess% $ost of the time, entre#reneurs rely on their

o*n no*ledge, abilities, and net*or they have built around themselves *hile facing many

riss but *oring constantly to achieve *hat once used to be only a dream% Entre#reneurshi#

does not end *ith creating a business but it involves managing and gro*ing it too% Entre#reneurs

cannot lac creativity, innovativeness and determination and I believe that des#ite the fact that

the entre#reneurial #rocess involves hard *or it also brings fun and many o##ortunities for thefuture%

1.1.Objectives of the Thesis

)he ey ob9ective of the $aster2s )hesis is to evaluate the business #otential and the investment

attractiveness of o#ening ne* si 3 sno*board school in the Jasn! 678e )atry si resort and to

research and analy8e *hether the venture *ould succeed at a current com#etition level% )he goals

of the em#irical research are to recogni8e customers2 #references and their needs, and

conse+uently identify the success factors for o#ening ne* si 3 sno*board school in the area%

Providing a real #otential in the maret, the business #lan *ould serve as thorough guidelines for

the venture launch%

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1.2. Structure of the Thesis

)he $aster2s )hesis is divided into four main #arts: Introduction, )heoretical and Practical Part,

and onclusions%

)he Introduction e0#lains the motivation and bacground for *riting the thesis as *ell as defines

its goals and ob9ectives% )heoretical Frame*or describes theory behind feasibility analysis and

business #lan, #rimarily its #ur#ose, #rinci#les, and structure% )he main #art ho*ever, introduces

the to#ic of business models and #ortrays in detail different vie*s on business models together

*ith business model canvas% )he Practical Part consists of the em#irical research, its goals,

methods, sam#les, and conclusions% Furthermore, it #ractically de#icts the feasibility analysis,

business model canvas and concrete business #lan that summari8es the maret situation,

organi8ation and im#lementation #lan as *ell as financial and ris analysis% )he onclusions *ill

revie* all information in the $aster2s )hesis and assess *hether the venture should be

im#lemented in a real life%

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2. Theoretical Frameork

As outlined above, the theoretical frame*or e0#lains the theory behind the feasibility analysis,

business model and different vie*s on it, and it is concluded *ith the business #lan theory%

2.1. Feasibilit! "nal!sis

Prior to starting any business or *riting a business #lan a soLcalled feasibility analysis should be

#erformed% Feasibility analysis sho*s a #otential of the business as it is an investigation into a

#ro#osed #lan or #ro9ect to determine *hether and ho* it can be successfully and #rofitably

carried out GMFinance, ..=H% ence, feasibility study elaborates on the viability of the business

and ans*ers the +uestion N?ill the business *or@2 According to the ;H,

feasibility analysis addresses the +uestion of *hether a #lanned course of action is liely to

achieve individual or enter#rise ob9ectives, given the available resources and s#ecific

constraints% As in many cases a feasibility analysis results into a feasibility #lan, Entre#reneur

Cesource entre defines feasibility #lan as the #rocess of determining the viability of a business

conce#t by e0#loring the demand, si8e, and #rofitability of the #ro#osed maret, the availability

of funding sources, and by maing sure that the business and the #ersonal criteria of the

entre#reneur are a good match G)hom#son, ..>, #% H% onse+uently, a feasibility analysis

loos at the most im#ortant #arts of the #otential business and assesses *hether it is realistic and

#ossible to succeed in #ursuing the initial business idea% In most of the times, the essential #arts

to be analy8ed are the maret, the #eo#le, technology, and finance%

2.1.1. Market Feasibilit!

$aret feasibility study loos at the industry as a *hole, e0isting com#etition, and #otential

customers% According to $oyes 3 &a*rence G..1H, maret feasibility analysis also illustrates

the maret o##ortunity, favorable trends for the venture, and situation on the maret and in the

industry and *hether it is gro*ing or not% It estimates the maret #otential in financial terms,

number of customers, as *ell as unit sales% It describes the maret structure and gives ans*ers to

+uestions such as:

NIs the maret fragmented or dominated by large #layers@2

N?hat channels e0ist and are they accessible@2

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NAre there barriers to entry@2

Besides, it researches *hether there is a strong re+uire for the #roduct or service and *hat

difficulty it resolves, meaning it identifies customer needs too% 6evertheless, a crucial #art of the

maret feasibility is also a com#etition chec and its strategy, #ricing, mareting, and customers

G&ue', .-1H% )o summari8e, maret feasibility defines *hether the com#any is able to com#ete

on the maret or not%

2.1.2. Managerial Feasibilit!

Peo#le and human resources form a vital #art of any activity, business, or com#any% )alented,

silled, and dedicated #eo#le *ho are able to commit, develo#, start, and manage the businesses

are needed at all times and are crucial to a further success and #rofitability of the #ro9ects%

$anagerial com#etence and efficient management together *ith no*ledge are elements *ithout

*hich even a technical and financially feasible business *ould fail and hence, all of these need to

be narro*ed do*n before starting setting u# a business% $anagerial feasibility is a #erformance

chec of the right #eo#le%

2.1.#. Technical Feasibilit!

)echnical Feasibility "tudy #rovides technical information about the #roduct or service in

s#ecific but still for broad #ublic understandable terms% It also evaluates the #articulars of

trans#orting a #roduct or service to a customer, for e0am#le: materials, labor, trans#ortation and

shi##ing, business location, and technology needed G?olfe, n%d%H as *ell as it must hold u# to

the financial information and sho* that the management is really able to achieve o#ening of the

business%

2.1.$. Financial Feasibilit!

Establishing a financially nonLfeasible business *ould not mae sense and therefore, #re#aring a

financial #art of feasibility study and figuring out *hether the business idea is able to generate

funds to im#lement it is rather crucial% Financial feasibility should include sales estimates based

or industry data, similar business in similar location, sales of e0isting com#etitors ada#ted to

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realistic numbers of customers, determination of ca#ital re+uirements and financing o#tions, cost

and breaLeven analysis, and cashLflo* forecasting G"mallBi8onnect, n%d% &ue', .-1H%

2.1.%. Feasibilit! Stud! vs. Business &lan

Coles of feasibility study and business #lan are different mainly for t*o reasons% Feasibility study

has an investigating function and #rovides ans*ers to the +uestions *hether the business is viable

or not% It is carried out before the business #lan and it analy8es several alternatives% onse+uently,

it identifies the best one and that becomes the basis for the business #lan%


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2.2. Business Model

"imilarly to #erforming feasibility study, also designing a business model #rior to starting a

business is crucial as every viable organi8ation is built on a sound business model G$agretta,

.., ##% ;H and therefore, its conce#t is analy8ed also in this $aster2s )hesis that is focusing

on a ne* business develo#ment% As asadesusL$asanell 3 Cicart G.--H *rite, the future #ursuit

for sustainable com#etitive advantage commences *ith the business model% Furthermore,

Ale0ander


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model consists of four elements: a customer value #ro#osition, a #rofit formula, ey resources,

and ey #rocesses GFigure -H GasadesusL$asanell 3 Cicart, .--H% )o summari8e, all

definitions lean to*ards the same as the business model is a tool that enables to clearly see the

interrelation bet*een the firm, its customers and *ays ho* to create and ca#ture the value%

%igure &" The elements of successful Business odel

"ource: Johnson, hristensen, agermann, ..;

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According to GasadesusL$asanell and Cicart G.--H, a business model encom#asses choices and

conse+uences% ?hen generating a business model an enter#rise maes #olicy, asset, and

governance choices and accordingly, all choices have their conse+uences that can be either rigid

or fle0ible% )his #roves that alternatives chosen for the business model definition and thus, for the

com#any2s starting #oint results in future outcomes% Furthermore, in order to create a valuable

and effective business model it needs to fulfill the follo*ing criteria:

Be aligned *ith com#any

goals Be selfLreinforcing

Be robust GasadesusL$asanell 3 Cicart, .--H%

)he criteria are connected *ith the choices a com#any maes *hen creating its business model%

Firstly, the choices have to su##ort the com#any2s short as *ell as long term ob9ectives and thus,

bring conse+uences that mae com#any2s goals #ossible to be accom#lished% "elfLreinforcing

means being consistent as the choices are su##osed to be in balance, be com#lement to each

other% Cobustness loos at the effectiveness over a #eriod of time and the ability to stay effective

and re#ulse threats for instance, of imitation or substitution% GasadesusL$asanell 3 Cicart,

.--H% ?hen designing the business models and deciding on the alternatives com#anies are

e0tremely affected by managerial decisions% )he decision maers are in #o*er to mae decisions

and hence, create conse+uences that *ould influence the com#any2s o#erations and its G*ellHL

being% All in all, *ell designed and thoughtLout business model over time evolves into

e0#loitation of a com#etitive advantage and is able to strengthen the com#any2s #osition on the

maret as *ell as conse+uently, *eaen the #osition of the com#etitors% 6onetheless, as Joan

$agretta G..H says, business model may turn out into an influential tool for better

im#lementation as *ell as if clearly defined it can become a foundation for em#loyee

communication and ins#iration because if a business model tells a good story, it can be a *ay to

get everybody inside the com#any to su##ort the sort of value the organi8ation *ants to create%

"ince the introduction of the business model term, many have been confusing it *ith the strategy%

$agretta G..H further e0#lains that the business model and strategy is not the same thing% "he

says that a business model illustrates individual #arts of a business and their integration but it still

does not tae into consideration an essential measurement of #erformance and that is

com#etition% Instead, it is strategy that considers reality% Unless e0#eriencing a mono#oly

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#osition in the maret, com#etition #lays significant role and should al*ays be taen into

consideration *hen starting a business, ho*ever it needs to be analy8ed in the com#any2s

strategy and not *hen designing a business model% )o clearly divide the terms, let2s have a loo

at the #ro#er definitions e0#lained in the arvard Business Cevie* article o* to Cedesign a

?inning Business $odel% Business model refers to the logic of the com#any Q ho* it o#erates

and creates and ca#tures value for staeholders in a com#etitive maret#lace Q strategy is the

#lan to create a uni+ue and valuable #osition by defining the *ays ho* to com#ete in the

maret#lace% )he system of choices and conse+uences is a reflection of the strategy, but it is not

the strategy it is the business model and strategy refers to the contingent #lan about *hich

business model to use% GasadesusL$asanell 3 Cicart, .--H% 6o*, it is com#rehensible that

business model comes first and the strategy of a firm is derived from it%

)o conclude, business model has numerous definitions and the summary of the section devoted to

characteri8ing it could be e0#ressed as follo*ing: a business model2s great strength as a

#lanning tool is that it focuses its attention on ho* all elements of the system fit into a *oring

*hole G$agretta, ..H% ?hat is more, it has been stated that also learning to distinguish the

terms of business model and strategy and their relationshi# in real life business situations is

necessary for uncovering successful *ays of com#eting in the maret%

2.2.2. )i*erent vies on Business Models

As it *as already mentioned in the #revious section, the business model does not have a single

generally acce#ted definition *hich, in all #robability, results from many vie*#oints from

numerous authors studying and develo#ing the business model conce#t across different

disci#lines% In this #art of the theoretical frame*or, firstly, the o#inions focusing on ty#ology of

business models of authors of the 6e* Business $odels for the no*ledge Economy boo *ill

be analy8ed and thereafter, the second #art *ill center its attention on o#inions of researchers A%


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the revenue model

the integrated model

)he revenue model refers to the s#ecific manner in *hich an organi8ation is able to generate

income, mean*hile the integrated model refers to the strategy and configuration of the

organi8ation designed to e0#loit business o##ortunities GJansen, "teenbaers, JSgers, ..H%

)o begin, a revenue model outlays the firm2s #rocess of maing money and by indicating ho* to

charge for the #roduct or service% "im#ly, the revenue model outlays the e0ecution and that is

ho* to translate the value creation of the business model into cashLflo* GJansen, "teenbaers,

JSgers, ..H% )he revenue model definition can be summari8ed as a model in e0#licit mode

*here business models allo* generating revenue GAmit and Tott, ...H% Furthermore, revenue

can be generated in various *ays, from traditional such as #roducing a #roduct or a service and

selling it to customers, to more com#le0 ones *ith many distributors and advertisers% ?ith the

e0#ansion of Internet and innovative ideas ho* to mae #rofit ne* business models have been

created but at the moment the e0act ty#es and e0#lanations are not yet relevant to be e0#lained in

order to fulfill the goal of this $aster2s )hesis%

Another a##roach to revenue models is a resource based a##roach% )his vie* sums u# business

model from the #ers#ective of the core com#etence and the core sills of the organi8ations and it

states that the analysis of organi8ation2s core abilities can eventuate into a revenue model

GJansen, "teenbaers, JSgers, ..H% Accordingly, the revenue model concentrates on the

#rinci#le of money maing through value creation%

)o continue, the integrated business model addresses the +uestion of ho* does an organi8ation

facilitates transactions that create values for all #artici#ants, including #artners, su##liers, and

consumers% )his has been studied by authors *ho a##roached business models from the

#ers#ective of the strategy and the design of the organi8ation GJansen, "teenbaers, JSgers,..H%

)he integrated business model further introduces the value chain a##roach% $any authors claim

that value chain, com#osed of activities such as design, #roduction, mareting, distribution, and

su##ort activities, is regarded as the starting #oint for the business model of an organi8ation% In

this instance, value is characteri8ed from an economic vie*#oint and the maret2s #osition is

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based on the organi8ation2s ability to achieve a com#etitive advantage throughout #ersonali8ed

value chain GPorter, ..-H% )he more differentiated and uni+ue #roducts and services a com#any

offers the more customi8ed value chain it reaches that subse+uently leads into a creation of a

distinct com#etitive advantage% Jansen, "teenbaers, JSgers G..H futher stated that also

Ca##a G...H a##roaches the business model from the vie*#oint of the #osition of an

organi8ation in the total value chain, in order to come to a revenue model% )his means that a

business model is often #laced in a net*or of other com#anies and it is not s#oen about value

chains but of value *eb% )hroughout the years it has been found out that organi8ation alone is

not viable to survive rather the decision maers need to concentrate on the net*or of

organi8ations as a *hole in order to remain com#etitive and therefore, the focus is on the value

net*or%

All in all, the theories agree on the fact that a good business model sho*s the com#any the

correct direction *hich is a strategy as *ell as it illustrates ho* to em#loy the strategy GJansen,

"teenbaers, JSgers, ..H%

"imilarly to the 6e* Business $odels for the no*ledge Economy, the authors of the #a#er

called Nlarifying Business $odels: origins, #resent, and the future of the conce#t2, research the

classification and common understanding but mainly they focus on the content of business

models% )heir conce#ts are derived from the follo*ing definition of the business model: A

business model is a conce#tual tool that contains a set of elements and their relationshi#s and

allo*s e0#ressing the business logic of a s#ecific firm% It is a descri#tion of the value a com#any

offers to one or several segments of customers and of the architecture of the firm and its net*or

of #artners for creating, mareting, and delivering this value and relationshi# ca#ital, to generate

#rofitable and sustainable revenue streams% GH% )he authors2

methodology *as to identify the most common #arts of the business models mentioned in the

broad literature by at least t*o authors% )hey left out those focusing on the com#etition and

named them the building blocs% )he nine building blocs that are forming a business model and

*ere #ut together in order to find a common #erce#tive, are illustrated and e0#lained in Figure %

)he detailed structure of realms described by different authors is sho*n in the A##endi0 -%

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%igure '" (ine Business odel Building Blocks

"ource:

Furthermore, the authors also identified common roles of business models and divided them into

five categories of functions:

-% Understanding and sharing

% Analy8ing

1% $anaging

/% Pros#ects

>% Patenting of business models

In conclusion, business models facilitate gaining a clear #icture of the business logic and in this

*ay they also hel# to evaluate and further develo# the general business logic of a com#any%

)hrough building a##ro#riate business models com#anies are managed better and can +uicly

res#ond to the environment2s changes as *ell as #ortray #ossible future actions and enhance

innovation and creativity GH% )hese areas are universal and

create common factors and grounds for assessing the business models%

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2.2.#. Business Model +eneration

Cecently, the most #o#ular and effective *ay of generating a business model has been a method

called the Business $odel anvas created by the "*iss entre#reneur and #rofessor, Ale0ander


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)alue Propositions

alue Pro#ositions and their uni+ueness is often the motive *hy customer choose one com#any

and not another% )he alue Pro#osition e0#lains ho* the #roducts and services creating value for

a certain ustomer "egment could be an ans*er to customers2 #roblems or satisfy their needs%As#ects that hel# creating value are for instance, ne*ness, #erformance, and customi8ation, or

design and #rice%

$hannels


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#ey *esources

Every business model involves certain ey Cesources that are the most essential assets that mae

a business model functioning, creating and #ro#osing the alue Pro#osition, ac+uiring marets,

sustaining relationshi#s, and receiving returns% Every com#any has different ey Cesourcede#ending on *hat it needs% )hey can be #hysical, intellectual, human, and financial% $oreover,

the com#any does not have to o*n the ey Cesources they can be also leased or ac+uired from

ey #artners%

#ey Activities

ey Activities #lay a com#arable role to the ey Cesources as they are the most needed doings a

firm has to #erform in order to mae its business model function% ey Activities are generally

#roduction, #roblem solving, or #latformVnet*or that could be seen for instance, in the eBay

e0am#le%

#ey Partnerships

)oday no single business, unless #erha#s a mono#oly, *ould survive and #rofit standing and

functioning alone *ithout any #artnershi#s, net*ors, and business contacts% ey Partnershi#s in

the Business $odel anvas is de#icting the set of connections of all su##liers and #artners that

create relationshi#s because of o#timi8ation of #rocesses, ris and uncertainty reduction, and

gaining access to s#ecial resources and goingsLon%

$ost Structure

Finally, the ost "tructure #ortrays all costs involved in running a business model and the cost

structure might be either costL or valueL driven meaning a com#any either focuses on minimi8ing

costs *herever #ossible or it focuses on value creation% Furthermore, cost structure divides cost

onto fi0ed and variable cost and economies of scale or sco#e%

)he Business $odel anvas is designed to be used in a range of *ays%


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$odel anvas, it has to be effectively communicated to its audience% According to the authors of

the Business $odel eneration boo, the efficient *ay is a storytelling as the stories al*ays

mae the ne* things tangible and clear and engage #eo#le too% G


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)y#ically, the tool hel#s to discover ne* #roducts2 or services2 #rofitability% G$ind )ools, .-/H%

Furthermore, $ichael Porter himself G..;H e0#lains that in order to define an industry2s

structure and nature of com#etitive interaction *ithin and industry it is necessary to assess the

com#etition not only directly but also indirectly and hence, identify other com#etitive forces as

customers, su##liers, #otential entrants, and substitution #roducts or services%

%igure +" Porter,s %ive %orces Diagram

"ource: $ind )ools, .-/

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2.#. Business &lan

Des#ite of the o#inion of Ale0ander


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According to Blac*ell G..;H, a business #lan must convince the reader that there is a

satisfactory large maret, com#etent and effective management, #romising and +uality #roduct or

service, and that sufficient funding in terms of finance is #rovided% Furthermore, in order to

succeed, a business #lan cannot lac clarity, brevity, logic, truth, and figures% )he language used

should be sim#le, conte0t should be described clearly *ithout going unnecessarily inLde#th, and

facts and ideas should be #resented truly and in a logical se+uence% Furthermore, for the

credibility anything that could be +uantified should be #resented in numbers%

2.#.2. Structure of the Business &lan

For the reason that a business #lan is a form of guidelines that s#ecify current and future #osition

of the business as *ell as it is a Nroadma#2 ho* to reach the goals and ob9ectives, it needs to

conform to a certain structure% )hen, the structure may vary de#ending on the business #lan2s

elements as length, de#th, *idth, and technicality G$ascarenhas, ..=H% According to the

"ahlman G.--H, the business #lan2s frame*or systematically assesses the four inde#endent

factors critical to every ne* venture:

)he #eo#le

)he o##ortunity

)he conte0t

)he ris and re*ard%

In addition, no business idea or business #lan is the same and therefore, also the structures vary

accordingly% o*ever, a conventional and *idely used frame*or of business #lans consists of:

E0ecutive "ummary

Bacground

$aret and clients

Products and "ervicesBusiness o#erations and organi8ation

uman Cesources

&egal frame*or, and environmental and social

factors Financial #lanning GU6)AD, ..H


27/92

-.ecutive Summary

E0ecutive summary is the business #lan in miniature G$ascarenhas, ..=H% It is also considered

the most im#ortant section of a business #lan as the target audience reads it as first% )his section

briefly tells the reader *here the com#any is, *here it *ants to be taen, and *hy the businessidea *ill be successful% For a ne*ly established business it needs to focus on the e0#erience and

bacground as *ell as it needs to demonstrate *ell #erformed maret analysis and solutions to fit

in the maret ga#% If the business #lan is seeing financing, the e0ecutive summary is also the

first o##ortunity to grab a #otential investor2s interest% )he e0ecutive summary has to catch the

e0citement and essence of the business and it is a #iece of the business #lan that should get

*riter2s best attention, sills, drives and #assion% onvincing the reader of being able to succeed

in the target maret and then addressing the future #lans are the essential #art of the e0ecutive

summary% G)he U%"% "mall Business Administration, n%d% $ascarenhas, ..=H

$ompany Description

om#any descri#tion describes the nature of a business, its business strategy and it #ortrays the

com#any2s current status such as feasibility, viability, #rofitability, and the com#etitive

advantages as *ell as it e0#lains ho* the com#any2s #roducts and services meet maret#lace

needs% In addition, it also outlines future goals of the com#any% G)he U%"% "mall Business

Administration, n%d% $ascarenhas, ..=H

arket Analysis

)he maret analysis section is to #rove that the ne* #ro9ect is able to ca#ture a sufficient maret

share in an industry on the rise as *ell as be com#etitive G)immons 3 "#inelli, ..1H% )herefore,

it needs to clearly identify the target maret, including com#etitors, maret share and #otential

maret share, maret stability, maret gro*th, and success of a #roduct or service in other

marets Govello 3 a8elgren, ..H and last but not least it also s#ecifies the industry trends%

)his #art is said to be one of the most difficult to #re#are and nonetheless, one of the most

im#ortant ones due to the fact that other #arts of the business #lan de#ends on the maret

research and analysis% Porter2s Five Forces $odel, PE") and "?


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Product or Service

Product and "ervice section illustrates the com#any2s #roducts or services, highlighting and

focusing attention on as#ects that could create definite com#etitive advantage as *ell as it

e0#lains the maret demand the #roducts or services *ould meet% &ast but not least, it #ortraysconcrete ideas for #otential e0#ansion% )his section should include all the follo*ing:

Product descri#tion and

history Product attributes

Cesearch and develo#ment

Product life cycle

osting and #ricing

Muality assurance and control

"ourcing

Intellectual #ro#erty GU6)AD, ..H%

/rgani0ation and anagement


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GU6)AD, ..H% 6aturally, there is a difference bet*een mareting and sales as mareting is

about assessing the demand for the #roduct or service and establishing *ays of communicating

its attractiveness to the clients and selling, on the other hand, is finally convincing the clients to

buy the #roduct or service GU6)AD, ..H% ommunicating *ith clients involves develo#ing

a mareting mi0, *hich is defined by /Ps: #roduct, #rice, #romotion, and #lace% Based on the

definition by Friend 3 Tehle G../H /Ps is a tool to #osition #roducts in the target maret and

all /Ps together form an offer that is a value #ro#osition that satisfies customer needs% )o

conclude, the mareting and sales section should include the follo*ing:

)he #roduct #ositioning against com#etitors

Identified and si8ed target maret segments

Product s#ecifications in terms of customer needs and benefits

6amed *holesalers and retailers

)he advertising and #romotions budget broen do*n into #rograms

Addressed customer service, guarantees, order fulfillment and afterLsales service GFriend

3 Tehle, ../H%

1mplementation Plan

)he im#lementation #lan #rovides an overvie* on starting and gro*ing the business in the first

tenths of days *ith s#ecific timescale, ob9ectives and targets, and tass and actions G&ue',

.-1H% It is also a highLlevel o#erational #lan%

%igure 2" %rom business plan to implementation plan

"ource: Friend 3 Tehle, ../

=


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%inancial Plan

)he 6e* enture reation te0tboo describes the financial #lan as a basic to the evaluation of

an investment o##ortunity and needs to re#resent the best estimates of financial re+uirements% Its

#ur#ose is to indicate the venture2s #otential and to #resent a timetable for financial viabilityG)immons 3 "#inelli, ..1H% "im#ly, financial #lan #rovides foundation for the decision *hether

to start the business or not% According to the United 6ations2 re#ort, the t*o most main elements

of the financial #lanning are:

An indication of ho* #rofitable the business is e0#ected to be in the future and #ossible

financial riss involved

A definition of additional funds re+uired for develo#ing the business GU6)AD, ..H%

Additionally, investment e0#enditures should be also defined as they re#resent the sum of all

ca#ital e0#enditures that are connected *ith the reali8ation and o#eration of the #ro9ect%

Investment e0#enditures include fi0ed assets that are costs related to the construction and

e+ui#ment of the business and *oring ca#ital that are costs related to the o#eration of the

business Gunecov!, .-, ##% = L 1.H% Furthermore, choosing the right ty#e of financing is

necessary to save time and limit undesirable shifts in the business% )he "tartu#6ation has

elaborated on different forms of financing and summari8ed the financing o#tions as follo*ing:

Debt financing via financial institutions Ge%g% bansH

rants #rovided by governmental agencies

E+uity financing

Friends and family

Angels investors

enture ca#italists

"trategic investors G"tartu#6ation, ..>H%

*evenues

Cevenue is the income earned by selling goods or services before subtracting any costs or

e0#enses GBusiness Dictionary, .-/H and revenue streams actually as the +uestion *hat value is

the customer #aying for as *ell as define strategy of ho* to ca#ture that value% For instance, it

1.


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can be a direct sale, transaction based on #rice, advertising, freemium model, and license or

subscri#tion model GUDAI)R, .-/H% In order to stay li+uid and survive most businesses build

u# a multi#le revenue streams *hich are sim#ly businesses2 forms of income%

$osts

osts are the e0#enses that a com#any reali8es *hen it #roduces a #roduct or #rovides a service

and conse+uently, the cost structure of a com#any is defined as the ratio of fi0ed costs to variable

costs GInvestor?ords, .-/H% Furthermore, fi0ed costs are defined as costs inde#endent of out#ut

and they stay constant for a certain #eriod% )hey for instance, include rent, buildings, or

machinery% ariable costs on the other hand, are costs that differ *ith out#ut and in general they

go u# at a steady rate in relation to labor and ca#ital% )he most common ty#es of variable costs

are *ages, utilities, or materials used GFundamental Finance, n% d%H%

*isk Analysis

Cis analysis creates a fundamental #art of a business #lan as this section identifies #otential

riss as *ell as strategies to minimi8e the im#act of ris related to launching and gro*ing ne*

business% Every business is facing more ty#e of riss: o#erational, industry, financial, and

#olitical%


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Family succession

$anagement buy out

$anagement buyLin

A #ublic listing on the stoc e0change

Franchising

)rade sale

$erger of sole traders, or smaller businesses in the same

industry &i+uidation

1


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#. &ractical &art

)he #ractical #art of the $aster2s )hesis taes in the theory e0#lained above and #ortrays the

em#irical research *ith its goals, conclusions, and im#lications% )hese serve to #erform an

a##licable feasibility analysis, design a business model canvas, and create a real life business

#lan%

#.1. -m,irical esearch

Em#irical research is gradually abandoning the theoretical a##roach a##lied in the #revious

sections and *ill focus on analy8ing collected information and data from the sam#les of

res#ondents% Its #ur#ose is to test the author2s theory on chosen grou#s of staeholders of si 3

sno*board school businesses% $oreover, this section *ill #rogressively e0amine the thesis2s

em#irical research goals, sam#le of res#ondents, research methods, and most im#ortantly, it *ill

#rovide research conclusions and im#lications as *ell as biases% Finally, as mentioned above, the

information gathered through the research *ill be a##lied onto the actual business #lan that *ill

be develo#ed in the follo*ing #art of this $aster2s )hesis%

#.1.1. esearch +oals

)he #rimary goal of the em#irical research *as to gather information from t*o sam#les of

res#ondents to obtain both +ualitative and +uantitative sets of data% )he aim of conducting

research among the first sam#le, si and sno*board instructors *as to gain +ualitative data and

therefore, insights into recent trends and the overall functioning of si 3 sno*board school

businesses a##lied also from the clients2 #ers#ective% )he research focused on summari8ing

#ositive and negative sides of si school businesses in diverse countries, identifying the strongest

selling #oints% Additionally, it *as used as a basis for generating ideas that could be im#lemented

into the actual business #lan% )he data also served as a foundation for the develo#ment of a

+uantitative +uestionnaire targeted at the second sam#le of res#ondents%

onse+uently, the second sam#le of res#ondents *ho *ere visitors of si resorts in general and

visitors of the Jasn! 678e )atry si resort #rovided a basis for obtaining +uantitative data% )he

em#irical goal *as to com#rehend the visitors2 #references, needs, and interests as *ell as to

recogni8e their motivation behind taing si 3 sno*board classes% Furthermore, the ambition

11


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*as to identify a #otential client base de#ending on their age, nationality, and the e0#ertise level

of siing or sno*boarding% )he research *as also used as a basis for the final evaluation of the

actual business feasibility%

#.1.2. Sam,le of res,ondents

)he first grou# of res#ondents *as com#osed of si and sno*board instructors from all around

the *orld *ith e0#eriences in teaching siing and sno*boarding in diverse countries% In order to

get hold of valid information, one of the criteria *as also to include si 3 sno*board instructors

*ho taught both in "lovaia and abroad% )he reasoning behind this criterion *as an assum#tion

that si 3 sno*board schools abroad might be more develo#ed than those in "lovaia% )herefore,

instructors *ho got to e0#erience and see the difference are liely to be a source of relevant

information that could be translated into a distinct com#etitive advantage for the author2s actual

business #lan and a si 3 sno*board school established in "lovaia%

)he res#ondents *ere reached online through the author2s #ersonal net*or and a #ublic

Faceboo grou# called the "no*s#orts Instructors of the ?orld% )he number of res#ondents in

this sam#le *as 1. of nine nationalities having teaching e0#eriences in the main si resorts of

different countries as Austria, Australia, U"A, Ja#an, "lovaia, France, Italy, 6e* Tealand,

"cotland, Argentina, "*eden, and "*it8erland%

)he second grou# of res#ondents included #eo#le *ho have visited the Jasn! 678e )atry si

resort *ithout any limitations on age or nationality% )o collect u#LtoLdate information, the

criterion *as to reach res#ondents *ho have sied or sno*boarded in Jasn! in order to obtain

+uantitative data from #otential clients as #eo#le *ho have already e0#erienced siing and

sno*boarding in the Jasn! 678e )atry si resort are liely to come bac and state their

#references about si 3 sno*board schools% )hese insights are useful to be able to define the

target segment and their *ants%

)he number of res#ondents in the second sam#le *as out of *hich > res#ondents *ere

reached in #erson and / filled in the online +uestionnaire consisting of the same +uestions%

%;W of res#ondents *ere siers and 1%W *ere sno*boarders% )heir age range *as bet*een

-= Q >/ years *ith varied siing and sno*boarding ability% )he nationalities that #artici#ated in

the +uestioning *ere "lova, 8ech, Polish, Cussian, Urainian, English, and Belgian%

1/


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+3&3+3 esearch Methods

In this thesis, for the #ur#ose of researching and understanding customers and further target

segment develo#ment, t*o research methods *ere combined as both +ualitative and +uantitative

a##roaches *ere a##lied% )his section is devoted to the descri#tion of the a##roaches, sam#lingmethods, as *ell as the selected method *hich *as a +uestionnaire%

“Qualitative implies a direct concern with experience as it is ‘lived’ or ‘felt’ or ‘undergone’ ...

Qualitative research, then, has the aim of understanding experience as nearly as possible as its

participants feel it or live it.” "herman and ?ebb, -=;; Gughes, ..H )o begin, from the

definition it is a##arent that +ualitative a##roach encom#asses a much *ider range than the

#urely +uantitative a##roach GPunch, ..>H% Mualitative research is concerned *ith collecting

and analy8ing information in chiefly nonLnumeric forms% It tends to focus on e0#loring, in as

much detail as #ossible, smaller numbers of instances or e0am#les *hich are seen as being

interesting or illuminating, and aims to achieve Nde#th2 rather than Nbreadth2 Gughes, ..H%


36/92

)atry si resort% > out of them *ere a##roached randomly on the si slo#es and the remaining /

#rovided ans*ers via electronic communication% )he email addresses *ere obtained based on a

#ersonal net*or from the databases of various accommodation units and si schools%

Also, both surveys *ere designed in the form of a +uestionnaire that *as distributed online and in #erson in the form of a short intervie*% Cesearch 3 onsultation uidelines state that a

+uestionnaire is a tool for collecting and recording information about a #articular issue of

interest and it is made u# of a list of +uestions that have a definite #ur#ose that is related to the

ob9ectives of the research Girlees ouncil, n%d%H% )o conclude, the +uestionnaires used in this

thesis served to collect basic information about #eo#le2s behavior *hen siing and sno*boarding

as *ell as to figure out thoughts, feelings, and #ositions of selected res#ondents%

#.1.$. esearch /onclusions

Initially, this section summari8es the ideas from the +uestionnaire filled in by si and sno*board

instructors #roviding +ualitative information based on seven o#en +uestions that are sho*n in the

A##endi0 1% )o summari8e, the main outcome of the Muestionnaire for e0#erienced instructors is

the fact that any si 3 sno*board school in order to be successful needs to focus on its guests by

#roviding the best #ossible customer service that includes having +uality instructors%

Based on the results of the fourth +uestionnaire2s +uestion de#icted in Figure >, the added value

of any si 3 sno*board school is brought by mostly the customer service and instructor2s +uality%

After that by offering all inclusive #acages in form of lessons, lift #asses, rentals, and

accommodation and by the school2s location meaning be in close #ro0imity to lifts, car #ar but

also overall si resort2s closeness to large living areas or hubs%

1


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%igure 4" Added value of ski 5 snowboard schools in general

Location6%

Customer

service47%

"ource: author

Instructor'sQuality41%

Allinclusivepackage

6%

Furthermore, Figure sho*s that in the o#inion of the res#ondents, the most essential factors for

#roviding good service is by far the +uality of instructors, then the school2s individual a##roach

to guests and efficient organi8ation of the school% Muality of instructors could be assessed from

more angles but according to the results of the +uestionnaire, the most vital are: em#athy and the

ability to #ut oneself into a guest2s shoes, interest in teaching and the 9ob itself, having fun as *ell

as being honestly engaged and having a relationshi# *ith the client% Also, e0#erience is high on

the list%

%igure 6" ost vital factors for providing a good service

IndividualApproach

17%

QualityInstructors

73%

!cient"rgani#ationo$ ski school

1&%

"ource: author

1


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Additionally, *hen e0amining the difference bet*een teaching and si 3 sno*board school

standards in "lovaia and abroad, it can be concluded that foreign schools have a higher standard

of customer focus, are more diverse and client friendly in lesson ty#es as *ell as the instructor2s

+uality is higher% )he reason behind this is the fact that schools abroad offer or have mandatory

training for the instructors mean*hile in "lovaia some of them do not even hold a certificate%


39/92

"ubse+uently, gaining information from the first +uestionnaire served as a basis for the second

one targeted at #otential clients and is illustrated in the A##endi0 /% )he +uestionnaire consisted

of -- closed +uestions and #rovided a +uantitative set of data% )he main outcomes are that the

res#ondents are from larger #art siers, adults they #refer #rivate morning classes of

intermediate duration booed on the s#ot, *hile the most im#ortant factor is the instructors2

+uality *ith the em#hasis on learning and im#roving sills% )he data *ere obtained from a

sam#le of --> res#ondents, out of *hich >;%1W sied or sno*boarded in the Jasn! 678e )atry

si resort and these #eo#le became a sam#le valid for creating the business #lan% )he sam#le

#rovides information that =W had or *ould lie to have an e0#erience of taing si or

sno*board lessons GA##endi0 > and res#ectivelyH% ?hat is more, the ans*ers *ere #rovided by

1W siers and W sno*boarders of different nationalities as "lova, 8ech, Polish, Cussian,

Urainian, &atvian, English, and Belgian out of *hich /W *ere beginner, 1/W intermediate,

and .W e0#ert siers GA##endi0 and ; res#ectivelyH%

?hen analy8ing the clients2 #references in more detail, it can be concluded that the most

#ersuasive factor of taing si or sno*board lessons *ould be the instructor2s teaching and siing

+uality together *ith the #rice follo*ed by first choices as friendliness of the staff, number of

#eo#le to *hom the instructor is devoting hisVher attention, e0#eriences of the instructors,

cro*dedness and safety of the si slo#es, language in *hich the lesson is held, or even a

regularity of lessons%

1=


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%igure 7" The most persuasive factor to take ski or snowboard lessons

Cheaper

classesthan at other

"ther skisno()oar

d*riendliness o$ +% schools

sta, o$ the 1+%

skisno()oarding

school Instructor-s1.% teaching and

skiing /uality

.7%

"ource: author

It can be observed that the most #ersuasive factor is in sync *ith the most im#ortant factors that

the clients are basing their decision on *hen choosing a siVsno*board school in general% In the

first #lace, the most crucial #oint is the instructors2 teaching as *ell as siing +uality follo*ed by

si 3 sno*board school2s staff friendliness, and #rice and references from friends or for instance,

family relatives being at the same level% Also, as#ects as timing of the classes and availability of

facilities for children such as a se#arated siing area or a running si car#et are not as high on

clients2 list%

%igure 8" %actors clients base their decision of choosing a ski9snowboard school in general

Im,ortance Factors10ver! im,ortant %0not im,ortant

30.

0

1.

1

&.

&

2ta, Instructors'

Instructors' rice ime 2ki schools' 2kisn) 5e,erals

$riendliness

eaching 2kiing schedule $acilities $or rentals

Quality Quality children


41/92

/.


42/92

Additionally, the survey also sho*ed that high #otential guests are adults or children older than

seven years *ith higher #references of #rivate classes% Furthermore, >W of guests usually boo

their classes on the s#ot, W through the online booing system and -;W through their

accommodation GFigure =H%

%igure :" Booking of ski9snowboard lessons

"nline)ookingsystem00%

"n the spot mailphone.0% %

Accommodation1%

"ource: author

In addition, 1W of res#ondents #refer morning classes to afternoon classes starting after one

o2cloc #m and as already mentioned, the #referred duration of the lesson is a##ro0imately t*o

hours% Ces#ondents actually #refer longer lessons to shorter as /W *ould also choose full day

classes% $ost im#ortantly, the goal and the motivation behind taing si or sno*board lessons is

the *ill to learn and im#rove siingVsno*boarding sills, to get ne* e0#erience, and to have fun

GFigure -.H%

/-


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%igure &;" ain purpose for taking ski9snowboard lessons

etting ne(

e8perience Learningand0%

improving

*un skiingsno()o

arding skills1.%

.7%

"ource: author

From the ac+uired results it is #ossible to assume a correlation bet*een the nationalities and

clients2 #references, *ishes, and motivation% It can be concluded that most of Cussians,

Urainians, and &atvian si resort visitors are beginners, *hile the rest of nationalities are

beginners as *ell as intermediate siers% E0#ert siers are mainly "lova and 8echs% $oreover,

clients from eastern countries have a tendency to boo shorter classes and their goal is to get ne*

e0#erience and have fun *hile clients from the ?est are inclined to boo longer, for e0am#le, full

day classes *ith ma9or motivation to learn and im#rove%

#.1.%. esearch Im,lications

)he research consisting of the +ualitative and +uantitative +uestionnaire *as carried out in order

to obtain information about *orld*ide si 3 sno*board schools2 bacground, to understand the

nature of this business more in de#th as *ell as recogni8e the #references and motivation of

#otential clients concerning si 3 sno*board schools and lessons% )o summari8e, the research

sho*ed that:

ustomer service and the +uality of instructors are crucial business #arts in order to attract

clients and remain com#etitive

reating effortless environment *here guests can en9oy their holidays *ill ee# them

satisfied


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/


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Educate the instructors not only on a #rofessional but also #ersonal level

Ensure that the family can meet during the day

Provide innovative lessons in terrain #ars and freeride 8ones

Focus on siers more than on sno*boarders as 1W of the thesis2s res#ondents *ere

siers%

Focus on adults and teenagers rather than young children as more than /W of

res#ondents have taen adult classes% Also if teaching children, #rivate lessons *ith no

s#ecial se#arated area and e+ui#ment is really necessary to be #rovided%

Private and morning lessons in intermediate duration GW and >>W res#ectivelyH are

#referred to grou# lessons%

Provide a #ossibility of booing a class on the s#ot, through an online booing system as

*ell as in different ty#es of accommodation% Booing via email is not necessary as only

-.W of clients *ould use the o#tion%

Em#loy e0cellent staff, mainly instructors *ho *ould be able to deliver su#erior lessons

in terms of +uality, friendliness, and fun as these are the most essential factors for the

res#ondents%

Focus as much or more on e0#erience than on learning

)he findings and conclusions are relevant also in terms of com#arison *ith data of the

com#etitive si 3 sno*board schools in the Jasn! 678e )atry si resort, ho*ever in order to

maintain confidential information, the e0act data cannot be disclosed%

#.1.. esearch imitations

)he conducted surveys include certain limitations that might affect the overall data and thus,

results of the +uestionnaires:

Des#ite of random sam#le selection, the small sam#le si8e of siers 3 sno*boarders

may distort the research conclusions%

)here is a ris of overestimating the demand for the si 3 sno*board school2s services as

and strong correlations bet*een individual +uestions *ere not formed%

)he +uestionnaires *ere ans*ered on voluntarily basis%

/1


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#.2. Feasibilit! Stud!

)he feasibility analysis *as #erformed before creating a real business model canvas and a

business #lan ho*ever, the author *ith the #ermission of the thesis2s su#ervisor decided to

include solely the illustration of a business model canvas de#icted in the follo*ing #art and a

detailed business #lan in order to focus on the goal of the thesis%

#.#. Business Model /anvas

Figure -- #ortrays the real Business $odel anvas created for the "i 3 "no*board "chool

&45y% "imilarly to the Feasibility Analysis, it is not going to be described in this section in detail

as all its #arts are channeled and e0#lained in the Business Plan%

//


47/92

%igure &&" Business odel $anvas< Ski 5 Snowboard School =>?ky

"ource: author

/>


48/92

#.$. Business &lan

#.$.1. -3ecutive Summar!

)he business #lan is #roviding structured strategic and o#erational details of develo#ing a ne*

si 3 sno*board school in the Jasn! 678e )atry si resort right at its entry *here it *ould be

visible and e0#osed to every visitor coming to the resort% )he "i 3 "no*board "chool &45y

*ould be named after $artina Dubovs!, local #rofessional sier and an . EUC for an e0clusive

ty#e of lesson *ith $artina Dubovs!%

?inter s#orts are generally very #o#ular and the Jasn! 678e )atry si resort is visited by

increasing number of tourists every year *ho are creating #otential and a large customer basis for

a ne* business% Besides, the level of com#etition in Jasn! is not lo* as it is dominated by one

strong #layer, the )atry $otion "chool o*ned by the Jasn! cable*ays2 o#erator *hile there are

also other four small si 3 sno*board schools% Des#ite this fact, the "i 3 "no*board "chool

&45y #osses a com#etitive advantage of a great location, strong team of +uality instructors and

$artina Dubovs!, and certainly thans to these it *ould be able to com#ete in the maret%

Based on realistic estimations the initial investment needed for the business set u# *ould amount

to - .. EUC and *ould be covered by initial funding of . >.. EUC consisting of o*n family

funds a #rivate investor2s funds% Furthermore, the costs for the first *inter season are estimated to

be ... EUC ho*ever, in realistic scenario guaranteed by the revenues of a##ro0imately /

... EUC% In this case, the business *ould start earning #rofit to*ards the end of the *inter

season%

/


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#.$.2. /om,an! )escri,tion

)he "i 3 "no*board "chool &45y is an entity that *ould #rovide sno* s#orts services to the

visitors of the Jasn! 678e )atry si resort% It *ould be aligned *ith the *ell established cottage,

restaurant, and rental service #rovider &45y located right at the first entry station of the Jasn!

678e )atry si resort% )he "i 3 "no*board "chool &45y *ould be founded as an &td

com#any o*ned and run by Jana Dubovs!% "he *ould be in charge of the school2s #rocesses,

ho*ever relying on #rofessional net*or, e0#erience, and advice of the &45y com#le02s

o*ners and o#erations manager% )he school *ould #rovide regular si 3 sno*board #rivate and

grou# classes for all age categories focusing on enhancing the sno* e0#erience by including

innovative features such as freeride, mountaineering, sno* bie, or even telemar classes taught

by +uality instructors #roviding customer service tailored to guests2 needs% )he main com#etitive

advantage is that the si 3 sno*board school *ould be named after $artina Dubovs!, an


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#.$.#. Market "nal!sis

)he $aret Analysis identifies *inter s#orts and si 3 sno*board school business trends in

"lovaia and the Jasn! 678e )atry si resort in #articular% It also defines and analy8es the current

com#etition level and target maret as *ell as it gra#hically #ortrays com#etitive rivalry, scansthe business environment, and summari8es its strengths, *eanesses, threats, and o##ortunities%

1ndustry Trends

"iing and sno*boarding belong to the category of most favored and #racticed *inter s#orts in

"lovaia and every year, thousands of visitors s#end their holidays in the si resorts among

*hich Jasn! 678e )atry is the to# one G"lovaia )ravel, .-1H% As the #o#ularity of *inter s#orts

is increasing so is a need for rela0ation and fun% )herefore, si resorts are attracting also nonLyetL

siers and nonLyetLsno*boarders by an increased variety of events, thermal #ars and *ellness

centers but most im#ortantly, *ith various semiLadrenaline activities such as sno* tubing, ite

*ing, sno* rafting or sledging and bobbing G"lovaia )ravel, .-1H% $ountaineering and

freeriding also became #o#ular as for e0am#le, Jasn! ne*ly offers official freeride 8ones and fun

#ars that create interest from the side of young #eo#le% Furthermore, to #lease all level s#orts

#eo#le, the si resorts are continuously *oring on the si slo#es enlargement as *ell as ne* si

and chair lifts constructions% In .-1 ne* cabin chairs *ere built to connect t*o sides of the

ho#o $ountain in order to create the largest and finest siing area in "lovaia Gcas%s, .-/H%

According to the os#od!re noviny XEconomic ne*s#a#ersY G.-1H, "lovaia and its resorts

during the *inter seasons have been e0#eriencing steady gro*th of tourists from abroad mainly

8ech Ce#ublic, Poland, Uraine, and Cussia due to financial investments #oured into the resorts

to offer good slo#e conditions, ne* attractions, and #ro0imity of thermal #ars% ?hat is more,

ho*ever >.W of the visit rate in the resorts is created by local residents% Additionally, the

number of tourists visiting in general is gro*ing as -%/ million of foreign tourists visited the

)atra $ountains in --V.- Q .V.-1 *here the biggest increase by =W *as noticed in Jasn!

678e )atry also thans to the construction of a ne* cable*ay that connected the t*o sides of the

ho#o $ountain G)A"C, .-1H% )he increasing visiting rate in Jasn! 678e )atry in years ..1

Q .-. is illustrated in Figure - and A##endi0 = de#icts the overall visiting rate in the )atra

$ountains in ..= Q .-%

/;


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%igure &'" )isiting rate in the Jasná (@0ke Tatry ski resort ';;+';&;

6&&

&&&

.&&

&&&4&&

&&&

3&&

&&&

0&&

&&&

1&&

&&&

9

0&&3 0&&4 0&&. 0&&6 0&&7 0&& 0&&+ 0&1&

:um)er o$ skiers ; sno()oarders person9days

"ource: )atry $ountain Cesorts, Annual Ce#orts

?hen analy8ing the industry of si 3 sno*board schools business se#arately it can be concluded

that the number of schools in the Jasn! 678e )atry si resort is +uite steady%


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)he businesses in the Jasn! 678e )atry are very much based on #ersonal contacts

$ompetitors, Analysis

)he si 3 sno*board school business in the Jasn! 678e )atry si resort re#resents +uite a fierce

com#etition due to the high number of small si 3 sno*board schools but mainly due to the

)atry $otion Cesorts G)$CH om#any o*ned by the financial grou# J3) that is a ma9or

#rovider of the cable*ay lines in the resort% .


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)atry, and "i "chool Pilgrim "i Academy% "i "chool Pilgrim "i Academy is based *ithin the

otel DruZba located in the middle of the beginners2 slo#e called Biela P4[% )he school em#loys

ma0imum of -. instructors in the #ea #eriods and its com#etitive advantage is an orientation on

Cussian clientele% )he hotel is o*ned by a Cussian and has -/ rooms available that creates +uite

a large #ool of customers% )he school2s clients almost com#letely consist of the hotel2s guests as

the hotel is not located at the entrance of the resort and therefore, it is not visible to ne*comers at

all% )heir #ricing system is dynamic and divided into #ea and offL#ea #rices *here one hour

offL#ea #rivate lesson costs euro, grou# adult lessons / euro and grou# children lesson 1>

euro Gotel DruZba, n%d%H% "i "chool Jasn! 678e )atry is not #resent at the slo#es of the Jasn!

si resort but it is based *ithin the ?ellness otel ho#o that is situated in the middle of the

DemSnovs! valley a##ro0imately -. m from the si slo#es% )herefore, similarly to the "i

"chool Pilgrim "i Academy, its clientele is e0clusively de#endent on the clients of the hotel%

= euro and the #rices set for adults and children are

diverse G?ellness otel ho#o, n% d%H% FI" "I "chool and everica "i "chool are both small

si 3 sno*board school, located >.. meters off the hill in the otel -


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im#ortant factor is the instructors2 +uality *ith an em#hasis on learning and im#roving siing and

sno*boarding sills% )he clientele needs to be a##roached individually as each guest has s#ecial

needs but certain nationalities as "lova and 8echs, then Cussians and Urainians, or English

and Belgian have #articular #references in common%

Porter,s %ive %orces odel

Supplier Power

)he "i 3 "no*board "chool &45y has a sole su##lier of outsourced Cental "ervices,

"iCentalL&i#tov that does not have a strong #osition as there are many rental services that could

be used% Accommodation #laces in the &i#tov region could be #erceived as su##liers as they

*ould Nsu##ly2 ne* clients to the school% In com#arison *ith rentals, these su##liers have rather

high medium su##lying #o*er due to the larger number of si 3 sno*board schools that might

be interested in their #artnershi#%

Buyer Power

)he number of customers in the Jasn! 678e )atry si resort is high and increasing each year

therefore, the basis for setting u# a ne* business is #romising but on the other hand, buyers2

#o*er is +uite strong as they are able to choose from a range of si 3 sno*board schools

available in the si resort based on their #references% )he s*itching costs are lo* in terms of

finance but are medium concerning the e0#erience and learning%

$ompetitive *ivalry

)he com#etitors analy8ed in detail in the om#etitors2 Analysis section try to *in buyers over on

the basis of #rice, customer service, availability of children2s facilities, and +uality of instructors

and their teaching styles% )he ey difference that serves as a basis for customers2 loyalty lies in

the a##roach to the customers, their overall satisfaction and feeling from the #urchased lessons%

)he strongest #layer com#eting *ith other si 3 sno*board schools *ithin the Jasn! 678e )atry

si resort is certainly the )$ "chool o*ned by the J3)% o*ever, the &45y com#le0 has a

#articular relationshi# *ith the J3)% )he &45y com#le0 has been o#erating and standing at the

same #lace for a##ro0imately /. years *hile J3) has started reLcreating the loo of Jasn! by

>


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building ne* cable*ays and a#artments only recently and hence, during the construction of a

ne* cable*ay a certain #artnershi# bet*een the &45y2s o*ner and J3) has been formed as

there *ere territorial #ro#erty dis#utes and favors involved% "ince then, J3) and &45y have

created a form of a #artnershi# and it can be concluded that &45y *ould be the only si 3

sno*board school having any ind of #ositive connection to the strongest #layer in the maret%

Threat of Substitution

Possible substitutes could be learning from online blogs and videos, #racticing *ith friends or

family, or bringing an o*n instructor to the resort% 6onetheless, these o#tions do not seem highly

#robable and therefore, the threat of substitution is relatively lo* as *hen *anting to learn siing

3 sno*boarding #ro#erly over a short #eriod of time a silled instructor is needed%

Threat of (ew -ntry

)hreat of 6e* Entry on a similar scale as the "i 3 "no*board "chool &45y is rather lo* due

to strong #osition of )$ "chool *hich creates +uite a #o*erful entry barrier for ne* entrants%

"till, there is a #ossibility for an individual instructor to se#arate himVherself and teach siing or

sno*boarding based on hisVher o*n license%

S/T Analysis

Strengths

reat location of the si 3 sno*board school2s building

"trong offer by #roviding #rofessional not mass services

Individual a##roach, dynamic #ricing and the ability to accommodate the offer to

customers2 needs

$artina Dubovs! as a brand

?ide net*or of business contacts and friendsProfessional and fun team of instructors

"ilent agreementV#artnershi# of coo#eration *ith J3)2s )$ "chool

>1


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eaknesses

Muite high level of com#etition

Dynamic #ricing may lead into not as high returns on investments

Difficulty to estimate e0act revenues and costs for the follo*ing *inter seasons

/pportunities

ollaboration *ith foreign instructors and continuous advancement of customer service

Engaging more #rofessional siers and /


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)eenagers GL-/ yrsH

Adults

6umber division Private lesson: - L #ersons rou# lesson: 1 L #eo#le

Family lesson: adults \ - childV - adult \ children Galternatives u# to / #eo#leHProficiency division Beginner: &evel -L1 Intermediate: &evel /L>

E0#ert: &evel andhigher )ime division

hours / hours

Full day G hoursH&anguage division

"lovaV8echVPolish, Cussian, English, Italian, erman

)y#e division Al#ine "i racing

FreerideVfreestyle


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%igure &+" Proficiency division of skiers

=evel & %irst time Skier

&earning balance in motion and controlling s#eed using a

sno*#lo* on gentle terrain%=evel ' Snowplow Stop

"ier can mae a straight sno*#lo* and sto#% &earning ho*

to lin sno*#lo* turns%

=evel + =inked Snowplow Turns to Basic $hristie

"ier can mae lined sno*#lo* turns on red runs% &earning

ho* to match the sis at the end of turns and venture on to

more difficult terrain%

=evel 2 Stem $hristie Turns

"ier can mae stem hristie turns on blue runs%% &earning

ho* to si #arallel%=evel 4 Parallel Turns

"ier can mae #arallel turns using #oles blue runs and cansi comfortably on groomed blac runs% &earning a variety of

#arallel turns%

=evel 6 $arved Turns

"ier can mae strong #arallel turns and can si blac terrain

an all sno* conditions% ?oring on sill develo#ment, tactics

and versatility at high level%

=evel 7 -.pert Skiers

"ier can confidently si the race course, bum#s and allterrain in any sno* conditions% Fine tuning sills at the highest

level%

"ource: htt#:VV***%fallscree%com%auVrou#"i&essons

>


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%igure &2" Proficiency division of snowboarders

=evel & 1ntroduction to Snowboarding

&earning the basic sills needed to start riding including getting

mobile and side sli##ing%=evel ' Balance 5 $ontrol

Boarder can sidesli# on one or both edges% Further

develo#ing balance on both edges , direction and s#eed

control%

=evel + Basics of a Turn

Boarder can do falling leaf, traverse across hill on both edges

and do a controlled sto#% &earning to im#rove lined turns on

green runs%

=evel 2 =inking Turns

Boarder can do single turns on both edges or some linedturns% &earning to im#rove lined turns on green runs%

=evel 4 *efine *iding

Boarder can lin turns on green runs% &earning to refine riding

techni+ue on blue runs% ?hen ready, #rogressing to basic

freestyle and the )errain Par%

=evel 6 Advanced TechniCue

Boarder can ride blue terrain *ith refined techni+ue% &earning

to ride stee#er terrain and learn s*itch, flatLland trics, basic

carving and basic )errain Par including eti+uette%

=evel 7 Shred the ountainBoarder can turn confidently on blac terrain, ride s*itch on

green runs and is com#etent in hitting basic )errain Par

features% Develo#ing advanced freestyle G icers , rails and

advanced bo0es H, advanced freeride GoffL#iste, #o*der,

trees runs and bum#sH, and advanced carving G dynamic

carving techni+ueH%

"ource: htt#:VV***%fallscree%com%auVrou#Board&essons

Furthermore, each lesson *ith a ne* guest *ould follo* more or less the same #rocess that has

to be #ursued by every instructor in order to achieve uniformity and #roficiency of the si 3

sno*board school% &ogically, it *ould begin *ith the introduction *here an instructor and a guest

*ould get to no* each other #ersonally as *ell as the real ability level *ould be observed and

defined% Instructor *ould also discover the guest2s as#irations so that the lesson has an aim%

>


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)he core of lessons *ould be com#osed of a *armLu# and a combination of demonstrations,

e0ercises and free siingVsno*boarding observations% After the lesson, a follo*Lu# #rocedure

*ould tae #lace including t*oLsided feedbac and an effort of unforced selling an additional

lesson to guests%

In addition, the content of lessons de#ends also on the time duration% )he "i 3 "no*board

"chool &45y offers t*o, four, and si0 hours slot lessons *here t*o hours classes has to be

taught at once and four hour classes can include 1. Q . min brea u#on agreement *ith a guest%

o*ever, it is not #ossible to be on the sno* for a full day and thus, hours classes *ould have a

. minute brea that *ould include lunch and video analysis of the day% )hese breas also serve

for guests to meet their families and friends over lunchtime and so, to ensure not only +uality

time on the sno* but enhance good atmos#here in general in the si 3 sno*board school and its

#remises%

)he uni+ueness of the si 3 sno*board "chool &45y is based on the fact that as the only si 3

sno*board school in the resort, it offers e0clusive lessons *ith an %

>;


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%igure &4" Ski 5 Snowboard School =>?ky< lessons, pricing

' hrs 2 hrs %ull day 6hrsE

Private =esson AdultsVteens => -1.

hild under yrs // ;. L

Froup =esson AdultsVteens 1/ = ;

%amily =esson Adults \ - hildVvice versa =. ->. L

-.clusive =esson -V #ersons L />.V.. L

Snow bike< ountaineering< Telemarking< %reeride9%reestyle =essons are of ma.3 4 people1 hrs hrs

- #erson = -=.

] Private &esson: -L #eo#le G rou# &esson: 1L #eo#le G Family &esson: adults \ - childVvice

versa Galternatives u# to / #eo#le, /th

#erson \ 1.V>. EUCH G &esson start: ;:1. L -1:1. G Prices

are in EUC including A)

"ource: author

6onetheless, the "i 3 "no*board "chool &45y #ays su#erior attention to the +uality of

customer service and therefore, +uality assurance and control is a crucial #art of the business% In

reality +uality customer service can be ensured by the follo*ing:

E0cellence hiring

ontinuous training and

education


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Cental "ervices *ould also be a #art of the "i 3 "no*board "chool &45y business offer as

from years of e0#erience it is no*n that many tourists do not bring their o*n sno* e+ui#ment%

o*ever, in order to concentrate on the core of the business *hich are si 3 sno*board lessons,

the rental services *ould be outsourced to "iCentalL&i#tov, "i 3 "no*board Centals,

entr!lne Paroviso, DemSnovs! dolina .1 >-% )he "iCentalL&i#tov has been already

renting the &45y com#le02s #remises out for three years and therefore, is able to estimate the

demand and ty#es of e+ui#ment necessary to satisfy guests2 needs% )he rental service *ould offer

not only e+ui#ment as sies Gal#ine, crossLcountry, mountaineering, and telemarH, sno*boards,

si #oles, si 3 sno*board boots, helmets, sledges, bobs, and sno* bies but also tuning services

as *a0ing and shar#ening%

?hen o#erating a si 3 sno*board school business, it is essential to be o#en to thin of and offer

additional services suited to guest2s desires% )hese services may arise over time as the si 3

sno*board school *ould continue its o#erations and may include for instance, storage room for

sno* e+ui#ment *ith heaters, meals in the ottage &45y Cestaurant included, or si 3

sno*board tri#s for locals%

#.$.%. Organi5ation and Management

Jana Dubovská, *ould be the o*ner of the "i 3 "no*board "chool &45y% "he is *ell suited

for the 9ob as she is about to conclude her management studies at the University of Economics in

Prague and since she *as - years old she has been teaching siing 3 sno*boarding in the Jasn!

678e )atry si resort% Furthermore, she has e0#erience in si instructing in Italy G..;H,

Australia, *here she s#ent four *inter seasons ..;L.-- and Austria G.--H%

er main res#onsibilities *ould be to oversee daily si 3 sno*board school2s activities, building

and maintain relationshi#s *ith the #artners, managing the em#loyees2 activities and deal *ith

necessary administration #rocedures% "he *ould also be instructing and #roviding soft sills

training to the staff but most im#ortantly she *ould ensure the im#lementation of the business

#lan into #ractice%

Ján DubovskH< is a #rofessional si racing coach as *ell as an o*ner and o#erations manager of

the &45y com#le0 since ..1% J!n *ould not be involved in daily business o#erations of the si

3 sno*board school ho*ever, because of his long time e0#erience, #ersonal net*or

.


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connections and #artnershi#s he *ould be a ey strategic #artner as *ell as a mentor of the si 3

sno*board school%

artina Dubovská< *ould become a face of the "i 3 "no*board "chool &45y% "he is a

#rofessional al#ine si racer and a *ellLno*n s#orts #erson in "lovaia% 1rd

#lace in the ?inter

Universiade, nd

#lace in the "ochi ?inter


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Peter #uchta and #atar@na Slov@ková< *ould be the to# si instructors% )hey both have si

racing bacground and e0#erience in si instructing for at least -. years both in "lovaia and

Austria% )hey s#ea English and erman% Peter *ould be s#eciali8ed in Polish customers and

sno*Lbie lessons as *ell as adult and children grou# lessons%


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offering grou# lessons to young children bet*een 1 Q years old% It *ould #osition itself as a

#rovider of high standard and +uality lessons *ith +ualified and e0#erienced instructors in terms

of teaching and siing no*ledge, honest engagement and #rofessional a##earance *ith the

#rices com#arable to the com#etition% As de#icted in Figure -- in the Business $odel anvas in

section 1%1%, the target maret segments are mainly adults and teenagers *ho are interested in

grou# or individual siing and sno*boarding lessons *ith a slight e0traordinary touch in sense of

+uality, fun, and innovation%

arketing i.

Product

)he services are described in detail in the Product 3 "ervice section 1%/%/% 6evertheless, an

additional feature of branding *ould be added% An entre#reneur hris oce G.-/H said that

your brand is your re#utation% )he "i 3 "no*board "chool &45y *ould be branded as N)he

"i 3 "no*board "chool of $artina Dubovs!%2 )he name $artina Dubovs! and her

achievements *ere abovementioned and e0#lained in the section 1%/%>% )his #articular referral

*ould give a distinctive com#etitive advantage to the si 3 sno*board school as it *ould be the

only school among the com#etition in the Jasn! 678e )atry that *ould offer siing classes *ith

the


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Promotion


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this channel it is necessary to consider the offer conditions and timing of the #romotion% Firstly,

vouchers offered through the #ortals *ould be valid only in the off #ea season therefore, during

*eedays and nonLholiday #eriods as *ell as they *ould be visible from the end of 6ovember till

the middle of $arch%

In all channels, the "i 3 "no*board "chool &45y *ould choose a uniform a##roach to its

mareting communication% )he school *ould be re#resented by $artina Dubovs!, an


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%igure &6" 1mplementation Plan as a Fantt chart


69/92

#.$.7. Financial &lan

1nvestment e.penditures

Initial investment e0#enditures at the beginning of the first *inter season for the "i 3

"no*board "chool &45y are estimated to be - .. EUC and are de#icted in Figure -% )he

first #art of the amount *ould be used for the #remises and facilities renovation in order to create

a large o#en s#ace *ith a *elcome des, #lace to sit and try on the sno* e+ui#ment, corner *ith

the locers and heated stands for boots and helmets% Furthermore, the initial investment *ould

include the cost of buying the necessary e+ui#ment and costs to found an &td com#any%

)he investment for initial renovation *ould re+uire reorgani8ing the #remises of the &45y

om#le0 so that the rental services and si 3 sno*board school could be in one #lace% For the

main erection *or there *ill be one contractual *orer hired from the local village of

DemSnovs! dolina and the team of the "i 3 "no*board "chool &45y *ould finish off the

remaining *or% )he administrative e+ui#ment *ould include buying a cash bo0, #rinter, and

office su##lies% )he teaching e+ui#ment *ould include various teaching tools such as video

camera, Nstubbies2 and NedgieL*edgie2 for children as *ell as uniforms for the em#loyees% )he

uniforms *ould be #urchased from the Itoca s#orts for a cost #rice as the o*ner is a family friend

of the DubovsK family% Furthermore, the above mentioned rental e+ui#ment as locers and

stands, *ould be #urchased from the Insider s#orts, longLtime #artner in business, at a discounted

#rice, too%


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%igure &7" 1nvestment -.penditures

Total -I*E

*enovation ?alls, floor, decoration 1..

Furnishing 3 &ightning 1..

?orers` salary - ...

-Cuipment Administrative ;..

)eaching 1 >..

Centals ;..

/ther &td foundation > >..

Total &' ';;

"ource: author

%inancing options

)he "i 3 "no*board "chool &45y *ould be financed in t*o *ays: e+uity and debt% )he e+uity

#art and thus, the ma9ority of funds *ould come from o*nVfamily funding *hile the remaining

W *ould be covered by a #rivate investor, the current o*ner and of the &45y com#le0% )he

debt *ould be in the amount of > >.. EUC and *ould be used as a ca#ital for the &td foundation

and *ould be #aid bac *ith a .W interest at the end of the *inter season out of the si 3

sno*board school2s revenues% )he inte

business plan ski

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