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Nightclub Plan


Nightclub Plan


„h Description of the Venue 10

Chart 1 ЎV Total UCONN Enrollment 19

Target Market Segment Strategy 23

Strategy and Implementation Strategy 30

The Mecca Nightclub will be a premier, high-energy, theme dance and nightclub located in Mansfield/Storrs, Connecticut. Our goal is to provide college students with the best nightclub experience with quality service at a reasonable price. The atmosphere of high energy, light and sound systems mixed with interactive theme nights will give club goers exceptional entertainment. Our objective is to establish a brand of entertainment and service that is unique and adds more value than any other alternative. Based on our investigations not many businesses will compete against us, thus giving our product the upper hand in our market niche.

Our operating motto: MECCA - Make Every Customer Come Again, and leave a lasting impression in our customerЎ¦s minds.

The Mecca is a partnership business owned by six entrepreneurs:

„h Anthony DiGiacomo ЎV Co-President/Operations Manager

„h Omar Lindo ЎV Co-President/Operations Manager

„h Rachel Buckley ЎV Human Resource Manager

„h Jeff Owens ЎV Beverage/Maintenance Manager

„h Christine Tribble ЎV Marketing Manager

Each of the six entrepreneurs has generated $40,000 to start-up the business. A loan of $500,000.00 will be required to cover the initial expenses. Initially The Mecca will seek the help of the Small Business Administration (SBA) as well as the Connecticut Development Authority (CDA) to obtain financing for the business. R. Vaughan Newcombe (Professional Accountant) will audit the financial reports.

The main objectives of the development of this new venture are:

„h Capitalize on excellent location opportunity with swift commitment to our local college universities.

„h To launch the venue with a highly publicized grand opening event in the fall of 2002.

„h To maintain tight control of costs, operations, and cash flow through diligent management and automated computer control.

„h To maintain a total beverage cost below 25% of beverage revenue.

„h To exceed $3 million in net profit by the third year of plan implementation.

The keys to success in achieving our goals are:

„h Provide exceptional service that leaves an impression.

„h Consistent entertainment atmosphere and product quality.

„h Managing our internal finances and cash flow to enable upward capital growth.

„h Strict control of all costs at all times, without exception.

Premier, high-energy, theme dance-club in Connecticut who will remain a step ahead of the competition through commitment to exceptional customer service. The Mecca will provide more video and electronic technology than anyone in the area while also providing a simple, yet unique, theme schedule and atmosphere. Our operating credo is: MECCA Make Every Customer Come Again

The key elements of the Nightclub's concept are as follows:

1. Entertainment and dance based themes -- The Mecca will focus on themes that have mass appeal.

2. Distinctive design features -- The Mecca will be characterized by the elaborate dance club situated in a spectator setting, which comfortably accommodates 1500 guests. The area will also offer three private VIP rooms, which can be combined for use in a conference or private party setting. These rooms are intended for special events and daily use. A live DJ will coordinate the events and entertain the patrons with music and games during music breaks and off-times.

3. Location, location, location -- One of the major advantages that The Mecca will have over its competition will be its location in relation to the surrounding Universities. The Mecca will be located one mile from the University of Connecticut on Route 195 in Mansfield/Storrs, CT.

4. Exceptional service -- In order to reach and maintain a unique image of quality, The Mecca will provide attentive and friendly service through a high ratio of service personnel to customers, and will also invest in the training and supervision of its employees.

The Mecca is asking for a loan to start business for our new entertainment venue.

Funds needed to accomplish goals stated above will be $500,000.

Patio Construction $50,000 (Wooden Deck)

Lights And Sound $15,000

Insurance $2,000 monthly

Initial Beer $5,500

Misc. Supplies $1,000

- Any additional state or provincial taxes

The emergence of a need for a place to have fun in the Mansfield/Storrs area represents a unique opportunity for a high-energy, dance-theme venue. The MeccaЎ¦s central location, demographics, and lack of direct competition are major advantages to this project. The proposed venue will provide a local solution to the lack of social atmosphere. It will be a live entertainment venue that will be geared primarily toward the 18-35 age group in the Greater Hartford area.

The Mecca will specialize in high-energy themes, and will offer beer, wine and an array of liquors and mixed drinks. In addition, the venue will sell non-alcoholic beverages such as soft drinks, juices and bottled water. The initial hours of operation will be 8:00 P.M. to 1:00 A.M. Wednesday and Thursday, 8:00 P.M. to 2:00 A.M Friday and Saturday. The establishment will draw primarily from the Mansfield/Storrs market while attracting guests from other surrounding cities and towns in the Greater Hartford area.

The concept and management of The Mecca has been well received, and has been offered key placement at the center of Mansfield/Storrs and the University of Connecticut development. This commercial property spans 138 acres and promises an immediate primary trade population of 332,000 people with a secondary population of 164,000 people.

The Nightclub will be a 15,000 square foot unit, which will also house the company's corporate business office. The dance club and bar will accommodate 1500 people. With Mansfield/Storrs rapidly growing population, the variety of the Mecca would create mass appeal for all of our customers. The Mecca will be equipped with state-of-the-art audio and video systems like none other found in Mansfield/Storrs area. It will serve the need for a true nightclub in Mansfield/Storrs. The general appearance will be clean, open, and pleasing to the customer. The demographics are favorable, with minimal competition from other dance-theme venues and bars.

We see the Mecca as appealing to two major market segments. Fortunately, the long, late night hours of operation help the Mecca lend itself to multiple segment appeal. Our market segmentation scheme allows some room for estimates and nonspecific definitions.

1. Young Professionals--Due to our proximity to surrounding local universities we must appeal to single adults and young couples whom come into or reside in the area. This group will be especially important to our growth during the off peak season. Whether it is a group of friends or a couple out to see a movie together, these people need a place to socialize/drink either before and/or after a night out on the town. These customers will range in age from 18 to 35. The Mecca will appeal to this category by switching the tempo and entertainment to be more appealing to adults on certain nights and during the off peak season. We also anticipate a 5% annual growth rate in tandem with the growth rate of Mansfield/Storrs and through increased popularity.

2. College Students--By creating an environment that is appealing to college students, we secure a natural progression between the high school student and the young professional. Through word of mouth, the Mecca expects to realize an increase of five percent annually from this segment. This will be our main target market due close proximity to the University of Connecticut as well as Eastern Connecticut State University.

The University of Connecticut is the largest public university in Connecticut. The amount of faculty and students at the university is quite large. Since the entire student body is our target market the enormous size is very encouraging. Undergraduate students are the majority and they represent 13,017 of the student body. Storrs campus is 17,521 people (refer to chart).

Many people are under the misconception that Storrs campus is dead in the summer months, but it is simply not true. In the past years the university campus was relatively quiet in the summer but recently there has been a revival in the population during the summer Ў§breakЎЁ with the addition of the Hilltop Apartment Community. This community currently resides 943 students. The campus is very active with numerous soccer, basketball, and baseball camps generating a demand for a nightly entertainment venue option. It is clear through summer camps and the Hilltop Apartment Community, Storrs will be quite active and sales should hold up just fine.

The following are the current demographics of this area:

Total Tolland County Population: 128,699

18 To 20 Years: 10,021

24 To 44Years: 44,158

Total Population of Tolland County Area: 128,699

18 To 20 Years: 36,437

Population of Major Cities/Counties averaging half an hour from The Mansfield-Town Area:

Total Audience Mansfield and Area Wide : 240,924

Our strategy is based on serving our niche markets exceptionally well. The nightclub enthusiast, the college crowd, the local nightclub crowd, the local service industry as well as groups going out together, the can all enjoy the ultimate nightclub experience at the Mecca.

The marketing strategy is essential to the main strategy:

„h Create awareness of the MeccaЎ¦s unique features.

Advertising budgets and event promotion are ongoing process of management geared to promote the brand name and keep The Mecca at the forefront of the dance theme establishments in the Mansfield/Storrs marketing area.



We depend on radio advertising as our main way to reach new customers. Our strategies and practices will remain constant; as will the way we promote ourselves:

„h Advertising ЎV weЎ¦ll be developing a core positioning message

„h Grand Opening ЎV we will concentrate a substantial portion of our early advertising budget towards the Ў§Grand Opening EventЎЁ

„h Direct Marketing ЎV weЎ¦ll directly market to local universities, surrounding towns.

The Mecca will create an identity-oriented marketing strategy with executions particularly in radio media, alongside print ads, and in-store promotions.

A grand opening event will be held to launch The Mecca in the fall of 2002. A radio-advertising blitz will proceed for one month, with teasers such as an Ў§event like no otherЎЁ in the Mansfield/Storrs history and the forthcoming opening date. Contests will be held on the target radio stations giving away VIP passes to the event while at the same time, creating excitement about the opening. We will leverage our relationship with HOT 97 out of New York and have world wide known DJ Funk Master Flex on the night of the grand opening. The opening date is tentative at this point and dependent upon construction completion. The budget of the event will be $20,000 and the milestone date will parallel the available opening date, currently set for September 1st, 2002.

Achievement of the following campaigns will be measured by the polling of customers as to how they heard of The Mecca for the first ninety days of operation. Budget adjustments will be made as the results dictate.

We will be running regular local radio and newspaper ads to create brand awareness. Our radio ads will be concentrated strongly on Hot 93.7, ConnecticutЎ¦s hot new radio station among our target market segments. Through commercial repetition, a teaser campaign, and the use of catchy phrases, we hope to obtain intellectual ownership of our target market segments; when they think dance club and bar theyЎ¦ll have to think of The Mecca. Drink specials will also be staples of our radio advertising in order to bring people in.

Ads will go into the college newspaper The Daily Campus for more brand awareness. We will also have ads in The Chronicle, located in Willimantic, CT.

We must charge appropriately for the high-end and high-quality service that we offer. Our revenue structure has to match our cost structure, so that the wages we pay and the training we provide will insure superior quality and service must be balanced by the fees we charge. This is important especially due to the high appeal of the college crowd, which is our greatest target market.

High energy and dance theme venues have significantly impacted cities from coast to coast in the nineties. Los Angeles' Hollywood, New York's Times Square, and Seattle's Pioneer Square are just a few examples. Entrancing their audiences with high-powered lights, sound, music, and interactive entertainment, these venues are still one of the highest cash flow businesses in the world. Our localized studies have shown that the average person will spend three to four hours per weekend in this type of an environment and will spend an average of twenty to fifty dollars in that time frame.

The typical venue of our style is open from 8:00 P.M. to 2:00 A.M., and within this time frame, the venue can achieve gross revenues anywhere from $3,500 to $25,000, nightly. The primary sources of revenue in a venue of this type are high volume traffic, coupled with comparably nominal spending. In addition to alcohol revenues, admission fees will range between five and ten dollars per admit.

The nightclub and bar industry is shifting towards a more entertainment-oriented concept. Guests of these venues are not only offered a dynamic place to gather and mingle, but also a place to participate in the entertainment through interactive contests, theme nights, and other events. We intend to heavily utilize entertainment-oriented marketing in an effort to withstand the perpetual shift in trends and cater to as large a client base as possible.

Nightclubs and other drinking establishments rely heavily on their primary suppliers. The primary suppliers are the various beverage distributors that provide the establishment with both alcoholic and non-alcoholic beverages. The alcoholic beverages (beer, wine, and liquor) are the primary sources of income in this industry. Other beverage suppliers also play a crucial role by providing non-alcoholic beverages. These are either served alone or mixed with alcohol.

In the area, all major brands of alcoholic beverages are available, in addition to several regional brands of beer. Initial research shows that the major distributors in the market have a high rating in both product availability and delivery.

The MeccaЎ¦s competition lies mainly with other casual facilities and less with conventional and chains entertainment establishments. We need to effectively compete with the widely held idea that you can't get good service anymore, while maintaining the idea that being out can be a lot of fun. Our polling has indicated that consumers think of atmosphere, price, and quality respectively. Additionally, price was frequently mentioned by pointing out that if the former concerns are present then they are willing to pay more for the experience.

Direct competitors are what can hurt most small businesses that are just starting. Our review of the market concludes that there are four entertainment venues that can be considered competition to the proposed new venue. We do realize that the proposed venue will also compete indirectly for every entertainment dollar spent in the Mansfield/Storrs area.

There are three competitors in the area: Huskies, Husky Blues, and Civic Pub. Two of these venues, Huskies and Civic Pub, are 21 and over thus not a direct competitor. Our main direct competitor, Husky Blues, is an 18 and over venue with a good area for dancing. We plan to open to the 18 and over clientele, provide a larger dance floor, have access to the best DJЎ¦s in the state, a stage for guest performers, state of the art set up and strategic marketing that will give us the upper hand to be successful and profitable, giving our product a great market niche.

Main Competitors of the Mecca will be:

Saturday 8-2am DJ, Dance, Live Music, Sports Bar

Our initial strategy is to have a strong emphasis on exceptional entertainment. We will have numerous interactive activities for consumers for example dance contests, theme nights and special giveaways that will create a fun and exciting atmosphere. In addition we will provide constant sensory appeal with our state of the art laser system and strategically placed video screens. The large video screens will show the main dance floor and smaller TV screens will have music videos or sports highlights on. The smaller screens will be located in the billiard room for those who came to the club to have a relaxing evening with friends. The billiard room itself will have a small bar and counter with ample seating that will provide a unique entertainment feel. Customers can either relax or be interactive and enjoy themselves by dancing. Either way customers will enjoy themselves at the ultimate nightclub and entertainment venue The Mecca.

The Mecca as stated earlier will be run by employees who are trained and main focus is to Make Every Customer Come Again. This is the most important part of our strategy. Employees will be trained on value adding tactics such as maintenance and paying attention to detail and small things like greeting every customer when they walk in. Employees will have formal training in order to take care of small situations without having to wait for decisions from management. Customers will have the gratification of knowing they can have their problems solved immediately. Our objective is to become extremely popular but maintain a loyal customer base through our services and continuous improvement.

Advertising in selected consumer, and business media will be a major component of our marketing communications program, since these media permit us to cost-effectively reach all of our target markets.

The purpose of our advertising is as follows:

„h To inform the market about benefits of The Mecca Nightclub.

„h To create positive imagery for The Mecca consistent with our customer profile.

„h To build traffic at retail level to 100 customers per day/week.

„h To produce consumer leads that our sales force can follow up on.

„h To attract investors and consumers.

„h To create a corporate image in the investment community.

We expect to be able to measure the effectiveness of our public relations campaign by customer response. We will also hire a press clipping service to monitor targeted media and send us tear sheets of any editorial coverage we receive. We will use clippings to extend the value of public relations into advertising and other promotions.

To further extend public relations, any published stories will be followed up with Letters to the Editor in whom we will thank the publication for printing our story and repeat the highlights of our story.

The Personal Plan reflects the objective of providing an ample amount of service personnel. Our headcount will remain at thirty unless we need to change that amount.

Day Position Quantity Rate Avg. Hrs Sub-Total Burden Total

Tuesday Staff Cost/Tues. 0 0 0 0 0 0

Wednesday Waitress 2 $5.50 7.5 $82.50

Thursday Waitress 3 $5.50 7.5 $123.75

Friday Waitress 3 $5.50 7.5 $123.75

Saturday Waitress 4 $5.50 7.5 $165.00

Position Salary Yearly Weekly Burden Total

The management team is comprised of six alumni from the University of Connecticut. There will be two Presidents/Operations Managers, Finance Manager, Beverage/Maintenance Manager, Human Resource Manager, and a Marketing Manager.

Anthony DiGiacomo ЎV CO President/Operations Management.

Anthony brings with him a Bachelor degree in business management from the University of Connecticut and four years of management experience from Enterprise Rent A Car. Anthony has also been involved in promoting the openings of a couple of clubs in his hometown. AnthonyЎ¦s responsibilities will lie with the coordination of events and special promotions, as well as the overall activities of the club.

Omar Lindo ЎV Co President/Operations Management.

Omar brings with him a bachelorЎ¦s degree in business management from the University of Connecticut. He has been involved in the entertainment industry for five years with various jobs, including promotions, DJ and management. His primary duties will include finding and booking the entertainment on a weekly basis and overall activities of the club.

Nicole brings with her a bachelorЎ¦s degree in finance from the University of Connecticut and 3 years of experience at United Technologies as a financial leadership associate. In this role she was responsible for financial accounting and financial analysis of corporate wide and divisional production and sales of company products. NicoleЎ¦s duties in the club will include balancing the nightclubЎ¦s budget, maintaining cash flow, and everyday financials

Christine Tribble ЎV Marketing Manager.

Christine brings with her a bachelorЎ¦s degree in Marketing from the University of Connecticut and 2 years of experience in advertising from various firms around the area. In this role she was responsible for promoting special events and company advertising. In her role at the Mecca, she will be responsible for advertising on a weekly basis, special events and promoting in the area.

Jeff Owens ЎV Beverage and Maintenance Manager.

Jeff brings with him bachelors degree in Economics from the University of Connecticut and 3 years of experience managing a liquor store in Colchester. In this role he was responsible for running the overall operations of the store. His primary role in the Mecca will be to manage the maintenance and stock of the bar and floor space.

Rachel Buckley ЎV Human Resource Manager.

Rachel brings with her bachelorЎ¦s degree in Management from the University of Connecticut and 5 years of experience from Pfizer Inc. In her role, she was responsible for collecting, maintaining and analyzing data for various projects. In her role at the Mecca she will be responsible all personnel at the club and the associated wages. She will also be responsible for the work schedule of all employees.

By leveraging the resources and skills of strategic partners we will reduce our use of debt/equity capital, improve our cash flow, maximize our flexibility, and ensure customer satisfaction.

Four principles will guide our strategic partnerships.

(1) Trust. In addition to contributing physical and human resources, each partner will contribute knowledge and information to the venture. To eliminate constraint, all partners will sign non-disclosure and non-circumvent agreements.

(2) Information-Integration. A feature of our partnerships will be network communications and Quality Circles. Partners will meet regularly to measure progress and develop product and process improvements. Between meetings, partners will network via telephone, fax, computer link, and cell-phones.

(3) Ў§Perfect Product Quality.ЎЁ We will establish zero-defects standards on all services contributed by partners. Pursuing perfection will reduce rejects, save time and directly impact customer satisfaction. The Mecca's equation for success is Zero Defects = Perfect Service Quality + Maximum Cost and Time Efficiency = Total Customer Satisfaction = Profitability.

(4) Co-destiny. Each Partner's remuneration will be tied to the success of the venture. They will agree to profit sharing. Agreements will include an escape clause whereby we can immediately terminate the contract of any Partner that fails to honor their commitments.

Sales $2,766,788.48 $2,943,392.00 $2,236,977.20 $2,943,392.00 $10,890,549.68

Cost of Goods Sold (Bev.) $ 329,148.05 $ 350,157.50 $ 268,437.26 $ 353,207.04 $ 1,300,949.85

Gross Profit $2,437,640.43 $2,593,234.50 $1,968,539.94 $2,590,184.96 $ 9,589,599.83

Operating Expenses $ - $ - $ -

Wages Expense $ 22,971.22 $ 23,332.72 $ 21,886.72 $ 23,332.72 $ 91,523.38

Advertising Expense $ 7,500.00 $ 5,500.00 $ 7,000.00 $ 5,000.00 $ 25,000.00

Supplies Expense $ 25,000.00 $ 30,000.00 $ 27,000.00 $ 28,500.00 $ 110,500.00

Utilities Expense $ 1,750.00 $ 1,950.00 $ 1,700.00 $ 1,950.00 $ 7,350.00

Misc. Expense $ 750.00 $ 900.00 $ 900.00 $ 900.00 $ 3,450.00

Administrative Expenses $ - $ - $ -

Income Tax Expense (40%) $ 975,056.17 $1,037,293.80 $ 787,415.97 $1,036,073.98 $ 3,835,839.93

Rent Expense $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 72,000.00

Insurance Expense $ 9,000.00 $ 9,000.00 $ 9,000.00 $ 9,000.00 $ 36,000.00

Interest Expense $ 4,500.00 $ 4,500.00 $ 4,500.00 $ 4,500.00 $ 18,000.00

Accounting Expense $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 12,000.00

Total Expenses $1,067,527.39 $1,133,476.52 $ 880,402.69 $1,130,256.70 $ 4,211,663.31

Net Income $1,370,113.04 $1,459,757.98 $1,088,137.24 $1,459,928.26 $ 5,377,936.52

Sales $2,905,127.90 $3,050,384.30 $3,202,903.51 $3,363,048.69 $12,521,464.41

Cost of Goods Sold (Bev.) $ 345,605.45 $ 362,885.73 $ 381,030.01 $ 400,081.51 $ 1,489,602.70

Gross Profit $2,559,522.45 $2,687,498.57 $2,821,873.50 $2,962,967.18 $11,031,861.71

Operating Expenses $ - $ - $ -

Wages Expense $ 24,119.78 $ 25,325.77 $ 26,592.06 $ 27,921.66 $ 103,959.27

Advertising Expense $ 7,875.00 $ 8,268.75 $ 8,682.19 $ 9,116.30 $ 33,942.23

Supplies Expense $ 26,250.00 $ 27,562.50 $ 28,940.63 $ 30,387.66 $ 113,140.78

Utilities Expense $ 1,750.00 $ 1,950.00 $ 1,700.00 $ 1,950.00 $ 7,350.00

Misc. Expense $ 750.00 $ 900.00 $ 900.00 $ 900.00 $ 3,450.00

Administrative Expenses $ - $ - $ -

Income Tax Expense (40%) $1,023,808.98 $1,074,999.43 $1,128,749.40 $1,185,186.87 $ 4,412,744.68

Rent Expense $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 72,000.00

Insurance Expense $ 9,000.00 $ 9,000.00 $ 9,000.00 $ 9,000.00 $ 36,000.00

Interest Expense $ 4,500.00 $ 4,500.00 $ 4,500.00 $ 4,500.00 $ 18,000.00

Accounting Expense $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 12,000.00

Total Expenses $1,119,053.76 $1,173,506.45 $1,230,064.27 $1,289,962.49 $ 4,812,586.97

Net Income $1,440,468.69 $1,513,992.12 $1,591,809.23 $1,673,004.69 $ 6,219,274.74

Sales $3,050,384.30 $3,363,048.69 $3,707,761.18 $4,087,806.70 $14,209,000.87

Cost of Goods Sold (Bev.) $ 362,885.73 $ 400,081.51 $ 441,089.87 $ 486,301.58 $ 1,690,358.68

Gross Profit $2,687,498.57 $2,962,967.18 $3,266,671.31 $3,601,505.12 $12,518,642.19

Operating Expenses $ - $ - $ -

Wages Expense $ 25,325.77 $ 27,921.66 $ 30,783.63 $ 33,938.95 $ 117,970.02

Advertising Expense $ 8,268.75 $ 9,116.30 $ 10,050.72 $ 11,080.92 $ 38,516.68

Supplies Expense $ 27,562.50 $ 30,387.66 $ 33,502.39 $ 36,936.39 $ 128,388.93

Utilities Expense $ 1,750.00 $ 1,950.00 $ 1,700.00 $ 1,950.00 $ 7,350.00

Misc. Expense $ 750.00 $ 900.00 $ 900.00 $ 900.00 $ 3,450.00

Administrative Expenses $ - $ - $ -

Income Tax Expense (40%) $1,074,999.43 $1,185,186.87 $1,306,668.53 $1,440,602.05 $ 5,007,456.88

Rent Expense $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 18,000.00 $ 72,000.00

Insurance Expense $ 9,000.00 $ 9,000.00 $ 9,000.00 $ 9,000.00 $ 36,000.00

Interest Expense $ 4,500.00 $ 4,500.00 $ 4,500.00 $ 4,500.00 $ 18,000.00

Accounting Expense $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 3,000.00 $ 12,000.00

Total Expenses $1,173,156.45 $1,289,962.49 $1,418,105.27 $1,559,908.31 $ 5,441,132.51

Net Income $1,514,342.12 $1,673,004.69 $1,848,566.05 $2,041,596.82 $ 7,077,509.68

Located on Route 195, Mansfield/Storrs, CT

18 to step, 21 to stumble Promoted by Ant Live, Inc

Come Party at the Ultimate Nightclub in the State of Connecticut!

Ў§A PARTY YOU DONЎ¦T WANT TO MISSЎЁ ЎV HOT 93.7

Located on Route 195, Mansfield/Storrs, CT




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