Students are expected to research the questions via any and all resources (offline and online). Please ensure you provide links to sources in your references/appendix to provide proper attribution.
Part 1 Footgolf Australia (12%)
See attached detail about Footgolf Australia. Ensure your assumptions are clear for each part of this question.
1. Develop a 12-month growth plan with measurable target(s) that are important for the business. Ensure your 12-month plan has three scenarios: realistic, optimistic and pessimistic. Footgolf Australia is considering hiring a full time employee to achieve the 12 month targets you have set out in (1). Prepare a one-page funding request in the form of a professional memo to Yani Bank that includes the amount of funding along with funding release dates that tie the funding release during the 12 months to reasonable target metrics/milestones.
2. Develop a long term financial plan that is expected to be in place after the initial growth phase of the business. IE what is a sustainable amount of revenue and costs for Footgolf Australia in the long term and can you achieve the lifestyle objective of the entrepreneur?
Part 2 Entrepreneur Ecosystem (10%)
1. Describe a typical entrepreneur ecosystem including different components and their roles and what might determine whether they are well-developed. Components include but are not limited to startups, known investors, incubators, accelerators, co-working spaces, meetup groups, hackathon events, venture capitalists, etc.
2. Describe the Sydney entrepreneur ecosystem by identifying each component and providing a list and one-sentence description of players in each component. Within the category of investors or startups there are too many to provide a complete list – choose representative players and include details of approximately 10 players.
3. Attend at least one Sydney pitching event. (For example, every Friday at 5pm, Fishburners hosts pitching of their resident startups and attendance is open to the public). Record the date and location of the event you attended and the name of each startup that pitched along with details about the problem they are solving, any non-financial and financial metrics that they report and details about their ‘ask’. https://www.meetup.com/en-AU/Fishburners-Meetup/
Part 3 Milestones (8%)
1. Pick 6 different companies that have financial metrics and milestones that were not met that led to their failure from this list of companies that are no longer operating https://www.cbinsights.com/blog/startup-failure-post-mortem/ ). For each company identify the main entrepreneur and their background, the problem they were solving/product they were offering, funding they had received including the source, financial and non-financial metrics and milestones that were explicit and any information about what the entrepreneur blames the failure on.
2. Based on your reading of these failures (and any other readings), provide your insight into the role of milestones in the success and failure of startups.
FootGolf is a combination of Football (Soccer) and Golf where players kick a football into a hole in as few shots as possible. The sport was invented in the Netherlands in 2009 and is played in a golf course by following the rules of golf. In March 2013, FootGolf Australia Incorporated by an entrepreneur who founded the association to promote the sport of FootGolf in Australia.
The sport can be played socially as well as competitively and attracts players ranging from 10 to 60 years of age. The most competitive players are typically football enthusiasts. Social players have no specific typical background as the sport is attractive to play for birthday parties and other social occasions and corporate events.
FootGolf came into play at the right time for golf courses. Golf is a game in decline and many golf courses are struggling to maintain members and social players. Additionally, Australia is fifth in terms of countries with the higher number of courses per 1,000 inhabitants. In this context, FootGolf provides a great second revenue opportunity for golf courses by attracting the fastest growing sporting population in Australia, football players.
As of May 2019, there are 34 accredited FootGolf courses in Australia. The pipeline includes 50+ courses interested in incorporating FootGolf to their sport offer. The total number of courses registered with Golf Australia are 1,500. When looking at other countries, the growth potential for FootGolf is huge. There are 200+ FootGolf courses in the UK and 500+ FootGolf courses in the USA.
FootGolf Australia funding is sourced from revenue from:
· providing courses with accreditation services, layout design and FootGolf gear ($1,500 per course initiation fee, $500 per year maintenance fee)
· half of all FootGolf revenue for 5 golf courses that FootGolf Australia has provided all the course material
· social players’ green fees (where $1 per player per round is remitted to FootGolf Australia); and
· competition registration fees (annual national and semi-annual regional events with revenue currently falling short of prize money by approximately $5,000 per event)
The future looks very promising for FootGolf Australia. However, the association is considering employing at least one full time employee that would lead the business development of the sport to expand the number of courses and handle marketing to inform the public about the sport. He is not concerned about the initial funding for a full time employee (earning approximately $80,000 including benefits and travel costs) since a bank has indicated that it will fund the expansion if there is a good argument tied to financial metrics that can justify the funding in stages.
Ultimately, the entrepreneur would like the association to be able to become a lifestyle business that could generate $250,000 per year for a full time employee once it becomes a stable business.