Subscribe to keep reading
Get new posts and unlock the full article.
You can unsubscribe anytime.Axe Throwing Venue Business Plan
- 30+ Business Plan Pages
- Investor/Bank Ready
- Pre-Written Business Plan
- Customizable in Minutes
- Immediate Access
Key Takeaways
- Despite requiring $368,000 in initial capital expenditure (CAPEX), the axe throwing venue model projects achieving breakeven within just one month of operation.
- Founders must secure a minimum cash reserve of $697,000 to successfully navigate the pre-opening operating expenses and working capital needs by May 2026.
- The venue is highly profitable in its first year, forecasting an EBITDA of $218,000 on total projected revenue of $778,500.
- Maintaining this rapid profitability timeline requires strict management of high fixed costs, primarily $10,000 monthly rent and $315,000 in Year 1 wages.
Step 1 : Define Initial CAPEX and Funding
Initial Cash Gate
Securing initial capital defines your launch date and operational runway. You must nail down the hard costs for the physical location before anything else moves forward. These figures determine the total funding ask required to survive until profitability. Honestly, this is the first major gatekeeping step. You defintely need this clarity to move to projections.
Funding Lock
Action here means getting binding quotes today. Budget $150,000 for the main venue build-out and $60,000 for the bar lounge area. Don't forget the $80,000 needed for the throwing lanes themselves. This totals $290,000 in hard asset costs, but you must secure the full $697,000 minimum cash cushion.
Step 2 : Establish Revenue Projections
2026 Revenue Targets
Setting revenue targets anchors all subsequent spending decisions. You need a clear path to cover fixed costs, especially the $120,000 annual rent confirmed in Step 3. If the model falls short, the capital raise becomes insufficient quickly. We must define the required volume mix to hit the $778,500 total target for 2026.
Modeling Session Mix
Here’s the quick math to hit your $778,500 goal using 15,000 sessions and 150 private events. We estimate sessions must generate $350,000, requiring an average ticket price of about $23.33. The remaining $428,500 comes from events, meaning each of the 150 bookings needs to average roughly $2,857. Honestly, securing that event volume is the defintely critical path.
Step 3 : Model Operating Expenses
Cost Structure Check
Understanding operating expenses (OpEx) defines your path to profit. For this venue, annual fixed costs are set at $191,600. Rent alone consumes $120,000 of that total. This baseline must be covered before you sell the first ticket. Keep overhead tight; high fixed costs demand high volume just to tread water.
Margin Levers
Variable costs are pegged at 59% of primary revenue. This means your contribution margin (revenue minus variable costs) is a healthy 41%. That margin is high, which is great news for covering fixed overhead fast. If you can control those variable expenses, you’ll defintely see profitability sooner.
Step 4 : Develop the Staffing Plan
Set Staffing Budget
Staffing dictates your customer experience and operational safety. For 2026, you need to allocate $315,000 to cover 75 full-time equivalents (FTEs). This investment ensures you can handle the projected volume while maintaining high service levels. If coverage lags, churn risk defintely rises.
This headcount plan supports the revenue model derived from 15,000 sessions and private events. Properly staffing coaches and service staff is non-negotiable for managing liability in this entertainment format. Get this wrong, and you cap revenue potential.
Allocate Key Roles
Prioritize hiring for direct revenue and risk mitigation roles first. The plan calls for 30 Axe Coaches costing $120,000—they are your primary safety control. These coaches manage the lanes and guide new throwers through the rules.
Also, allocate $70,000 for 20 Bartenders to service the lounge and support the premium beverage sales component. This specific breakdown ensures you meet the 75 FTE target needed to run all planned operational hours in 2026.
Step 5 : Calculate Breakeven and Profitability
Breakeven Velocity
Hitting breakeven fast shields you from cash burn, especially after heavy initial spending on the venue build-out. You need to generate monthly revenue of at least $38,943 to cover fixed overhead. With annual fixed costs at $191,600, and variable costs consuming 59% of revenue, your contribution margin is only 41%. This requires immediate, high-volume bookings from day one in January 2026.
Year One EBITDA Path
The target is $218,000 EBITDA for the first year. If you hit the projected $778,500 total revenue, after variable costs (59%) and fixed overhead ($191,600), the preliminary operating profit is low. You defintely need to account for the $315,000 staffing budget. This means achieving breakeven revenue quickly is critical to absorb those fixed and salary burdens by month two.
Step 6 : Finalize Capital Allocation Schedule
Schedule CAPEX Spend
You must deploy the full $368,000 in capital expenditure (CAPEX) before July 2026, timing expenditures carefully to ensure you don't breach the $697,000 minimum cash reserve needed in May 2026. This scheduling dictates when major site improvements, like lane installation, actually occur relative to initial funding drawdowns.
Finalizing the capital allocation schedule locks down the physical build timeline. You need to spend $368,000 on assets like the venue and bar build-outs over six months. If you front-load too much spending before revenue stabilizes, you risk hitting the cash floor too soon. The critical check is May 2026, where cash dips to the minimum required $697,000. Spend too fast before that, and you defintely jeopardize operations.
Timing the Build-Outs
Action here is sequencing the spend against known revenue ramp-up from Step 2. Since breakeven is projected in January 2026, you can afford some initial spending that month. However, the bulk of the $368,000 spend must be weighted toward April and June 2026 to avoid stressing the $697,000 low point in May. For example, push the final Bar Lounge Build-out into early Q2.
The initial $290,000 in known asset costs (Venue, Lanes, Bar) must be mapped precisely. If you spend $100,000 in Q1, you only have $268,000 left for Q2, which must cover the remaining build-out plus any unexpected delays. Keep a tight leash on contractor invoicing.
Step 7 : Evaluate Long-Term Returns
Assess Return Metrics
Founders must check if projected returns justify the capital tied up. The 7% Internal Rate of Return (IRR) shows the annualized effective compounded return rate. If this rate doesn't beat your cost of capital significantly, the project isn't creating real value. This metric is key for long-term financial health. We defintely need to see higher returns for this level of initial risk.
Benchmark Against Risk
Compare the 7% IRR to your required hurdle rate. A 292% Return on Equity (ROE) looks high, but needs context. The 24-month payback period means you get your initial $697,000 cash back fast. If 7% is below your 10-12% standard, you need to boost revenue projections or cut that $191,600 fixed rent cost.
Axe Throwing Venue Investment Pitch Deck
- Professional, Consistent Formatting
- 100% Editable
- Investor-Approved Valuation Models
- Ready to Impress Investors
- Instant Download
Related Blogs
- How Much Does It Cost To Open An Axe Throwing Venue?
- How to Write an Axe Throwing Venue Business Plan
- 7 Critical KPIs for Scaling Your Axe Throwing Venue
- How Much Does It Cost To Run An Axe Throwing Venue Each Month?
- How Much Axe Throwing Venue Owners Typically Make
- 7 Strategies to Boost Axe Throwing Venue Profitability and Margins
Frequently Asked Questions
The initial capital expenditure (CAPEX) totals $368,000, covering the venue build-out ($150,000) and lanes/target systems ($105,000)