Within the first two weeks of class students are required to: start a business with a maximum investment of one dollar; run if for a week in groups of 1-3; report what they learned. The assignment is worth ten points toward their final mark. The student below is enrolled in a third year new venture creation class.
One of the most popular sports in Canada today is the game of hockey. It has been on of the favorite past times to play and watch of men and women of all ages. For my mini-venture I decided to try to tap into this market and create some revenue for myself.
My venture was to host hockey games on three different days in the Bedford arena. My goal was to yield a small profit to assist me in my weekend endeavors and to get a glimpse of the demand for a late night hockey league for a few die-hard hockey fans.
To set up the games I attempted to rent the ice at three times throughout the week, however it was not possible and only two ice times were available to me. I rented both ice times at a cost of $109.00 each. Now that I had the facilities I needed the cliental. Thanks to many years of playing hockey I still had a large list of old friends and teammates to call to fill the spots. I had intended on having 2 goalies a side and 17 skaters a side for each game. I also had decided to charge $7 a game for each player or $10 per player if he/she would commit to both nights (and had their money upfront). I made 60 phone calls, I generated the numbers from old hockey lists, of these 60 calls I had 25 people commit to both nights, 11 commit to the first night and 7 commit to the second night. Based on these figures I was going to yield a combined profit of $158 (Appendix A-1). These figures were not correct, unfortunately.
On the first night only 20 of the confirmed 25 players who had committed to both nights showed up, and only 9 of the conformed 11 showed up. This turn of events yielded a profit of only $54 dollars (Appendix A-2). The second night the 19 of the original 25 confirmed showed up, however only 17 were from the night before, so the new 2 that showed up had to pay a price of $7 since they only came for one game. Of the 7 that committed for the second night, 7 showed up. These numbers produced a profit of $54 once again (Appendix A-3).
My original intentions were to make a profit for spending money for the weekend and to see if there was interest for a late night hockey league. My conclusion is that based upon available ice times it is not feasible for me to run these games in Bedford and use the money to go out on the weekend because I will be spending my Friday and Saturday nights in a hockey rink 20 minutes outside of the city. When the question was asked if anyone would be interested on doing these games on a regular basis, the response was not good. Many of the players found the rink to difficult to reach as most of them lived in the city and the other compliant was the time of the games, as many felt they had better things to do with their time Friday and Saturday nights.
My experience with the recreational services industry has left me unsatisfied,
it is not a field that I wish to be a part of again. I have learned that until
you get someone's money or their signature of the dotted line, you never know
what they are going to do. I realized that there were more variables for me
to deal with than I had anticipated, such as time conflicts, transportation
and location. I realize that the reason most people set up a league is to relive
some stress and have some fun with their friends, not to make a profit, which
is usually why you see the organizer also playing in the league. If I ever were
to engage in something like this again it would be to give myself the opportunity
to play hockey on a regular basis, not to turn a profit.