Mark and Sharlene-Michele Palos
“We were amazed that Ken was actually able to put the financing together for our purchase. He was always very responsive and had a solution for each problem that arose.”
“Anyone who needs an industry expert should consult Ken. He is super-knowledgeable about the numbers behind acquiring, expanding, or operating a bowling center.”
Plano Super Bowl, JB
“When we starting in 2013 there was no local bank source for bowling center loans. Ken was our only place to go. We needed a loan to complete our purchase and remodel Cowtown and Ken was able to get it done. When we decided to remodel Plano, Ken was able to do it again. We could not have been able to get to where we are without Ken!”
Maple Family Centers
“I’ve known Ken Paton for nearly 20 years. When we needed financing he handled the entire process with professionalism and ease. When I chaired various conventions, I asked Ken to speak and share his banking/business/bowling knowlege with all in attendance. It’s obvious that Ken’s message came across loud and clear as he’s still helping bowling center owners nationwide.”
Each loan is different: different people, different location, different problems, and often require different solutions. In the Case Studies there are illustrations of how a variety of centers were financed despite their challenges.
Missing from many discussions about bowling is the profit margin and low loan default rate. The 2017 BPAA Benchmark Study reports that the average profit margin is 13% for all centers and is 17% for large centers (37+ lanes). All restaurants report a 6.1% to 6.5% margin according to Forbes magazine. However, Toast (a restaurant recruiting website) reports that profit margins for most restaurants fall between 3% and 5%. Large retailers such as Amazon and Walmart report profits of 2% to 3% of revenue.
Bowling also has a history of paying its loans on time. During the ten years ending 9/30/2017 the Small Business Administration reported that bowling centers had a charge off rate of 0.79% which puts bowling in the 36th percentile of all industries.
Profit Margin - Average Center
Profit Margin - Large Center
- Charge off rate on bowling SBA loans .79% .79%
What We Can Do For You
Even when banks have money to lend, many will not approve a loan to a bowling center. They generally talk about special purpose buildings and bank policies. However, there are many banks that see bowling as a strong industry and are willing to finance a solid and well presented project.
Buying & Selling
Buying or selling a bowling center involves much more than simply putting a buyer and seller together. Once the interest has been identified, the due diligence process will make or break the deal. Having someone who is experienced in all aspects of the process improves the likelihood of a successful closing.
Like most other small businesses, an owner must wear many hats. Problems come when there is not enough time, or the skills required, to solve a problem are not available. Consulting with an advisor with experience in a variety of specialties can improve the likelihood of success.
Construction & Remodeling
Before concrete is poured, before the general contractor is hired, and even before the architect is engaged; a clear business plan is needed to identify the previously underserved market that needs to be served and how the proposed construction project will fill these needs.
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