Too Tall Lanes — SBDC Meeting Packet

Justin Beck is 23 years old (turning 24 in October) and a senior at Tarleton State University studying digital media with a concentration in game design. He's finishing his degree while working 5pm–12am shifts at Sonic, and he has zero business experience, no business credit, and no significant assets.

• $0 in savings
• ~$40,000 in student loan debt
• Currently living month-to-month working at Sonic

• He IS the target customer—a Tarleton student who knows what 13,000+ students want
• Digital media + game design education means in-house arcade design, marketing, and community content creation
• Five months of detailed market research completed (competition analysis, location scouting, equipment quotes, regulatory checklist, financial modeling)
• Total research investment: ~$49 spent on research tools; has not taken on debt or signed any commitments

• His father passed away last year from cancer complications
• Too Tall Lanes is named after his uncle, connecting the business to family
• This is more than a business idea—it's personal

Stephenville: Population 18,000. Tarleton State University: 21,000+ students, growing at 17.5% year-over-year in spring 2026 (fastest-growing university in Texas). Combined addressable market: 39,000+ people.

The Problem: Zero entertainment options for students in Stephenville proper. The nearest bowling alley closed over a decade ago when Lone Star Lanes shut down (the building is now Ranger College campus). No interactive entertainment venues exist within city limits.

Students drive 30+ minutes to Granbury (PINS Bowling) or other towns for bowling and nightlife. Reddit posts from Tarleton students confirm: "Stephenville is dead after 9pm. Everything is 45 minutes away."

1. Tarleton enrollment trajectory: University grew 17.5% in spring 2026 alone and continues expanding
2. Student spending patterns: Tarleton students ARE the demographic with disposable income for entertainment
3. Reddit verification: Tarleton subreddit confirms bowling/arcade as top requests
4. Competitive pricing edge: PINS Granbury charges $12–18/hour; Justin's pricing undercuts at $15–18 weekday, $12/person college nights
5. Multi-revenue model: Bowling + arcade ($36K–$48K/year from 15–20 machines) + food/beverage + future alcohol

Building a bowling alley requires $527K–$900K upfront. It's capital-intensive, real-estate dependent, and requires regulatory approvals. This gap persisted for a decade because of financing barriers—not market rejection.

4-Lane Bowling + Arcade + Snack Counter. Minimum viable product designed to open, validate the market, and generate cash flow to self-fund Phase 2.

• Size: 8,000–10,000 sqft
• Primary target: University Plaza, 2133 W Washington St, Stephenville TX — end cap (former Big Lots), 25,050 SF, 0.5 miles from Tarleton campus, HEB/Walmart anchored. Confirmed $10/SF + $4.12 NNN ($14.12/SF/yr). 7 properties available in Stephenville as of March 2026 (284,200 SF total).
• Technical: 12+ feet ceiling, minimum 100 feet depth, 3-phase power required

Item	Cost	Notes
Bowling lanes (4x used)	$195K–$285K	Equipment + pins + scoring. Vendor: Murrey International
Arcade machines (15–20 units)	$15K–$25K	Revenue: $200/mo per machine = $36K–$48K/year
Furniture/seating	$8K–$12K	Arcade seating, lane seating, tables
POS system	$2K–$4K	Touch screen, card readers
Snack equipment	$5K–$10K	NOT a full kitchen in Phase 1

Equipment: Microwave ($300), fryer ($1,200), flat-top grill ($1,500), beverage cooler ($2K–$4K), popcorn machine ($800). Menu: Frozen pizza, hot dogs, nachos, popcorn, candy, sodas. Margin: 70–75% on food, 75% on beverages.

Phase	Timeline	What's Added
Phase 1	Months 1–16	4 lanes + arcade + snack counter (MVP)
Phase 2	Months 18–24	Real food menu, full kitchen buildout ($68K–$95K)
Phase 3	Months 25–36	TABC mixed beverage permit, bar service

Role	Salary	FTE
General Manager / Operations (Justin)	$40K–$50K	1.0
Assistant Manager	$28K–$35K	1.0
Shift Lead / Bowling Attendant	$22K–$26K	2.0
Snack Counter Staff	$18K–$21K	1.5
Cleaning / Maintenance	$20K–$25K	1.0
Total Annual Payroll	~$165K–$205K

Category	Low	High	Notes
Bowling Equipment	$195K	$285K	4 lanes used + scoring + pins
Floor / concrete prep	$41K	$78K	Leveling, subflooring
Electrical / MEP	$46K	$84K	3-phase power, panel upgrades
HVAC commercial	$62K	$116K	Industrial cooling + air handling
Plumbing	$32K	$67K	Restrooms, snack counter, grease trap
Interior finishes	$101K	$161K	Drywall, paint, flooring, lighting
Arcade equipment	$15K	$25K	15–20 machines
Snack equipment	$5K	$10K	Basic only, NOT full kitchen
Furniture	$8K	$12K	Seating, tables
POS + tech	$2K	$4K	System hardware
Contingency (15%)	$50K	$102K	Unexpected overages
TOTAL STARTUP	$557K	$944K	Mid-point: $751K

Recommendation: Plan for $710K–$750K for 4-lane opening.

Cost	Monthly	Annual
Lease (8,000–10,000 sqft • confirmed $10/SF + $4.12 NNN, March 2026)	$12,000–$16,000	$144,000–$192,000
Utilities	$2,500	$30,000
Payroll + taxes	$14K–$17K	$168K–$204K
Equipment maintenance	$1,500	$18,000
Arcade techs + parts	$800	$9,600
Food/beverage COGS	$2,500	$30,000
Insurance	$1,200	$14,400
Credit card processing	$800	$9,600
Marketing	$500	$6,000
Miscellaneous	$600	$7,200
TOTAL	$36.4K–$43.4K	$437K–$521K

Stream	Monthly	Annual	Assumptions
Bowling lane rentals	$8.5K–$10.5K	$102K–$126K	60–70% capacity utilization Year 1
Arcade	$3K–$4K	$36K–$48K	15–20 machines at $200–$250/mo
Snack sales	$2.5K–$3.5K	$30K–$42K	75% gross margin
Events / parties	$500–$1K	$6K–$12K	Not guaranteed Year 1
TOTAL	$14.5K–$19K	$174K–$228K

Line	Annual
Revenue	$174,000
COGS (food only)	($30,000)
Gross Profit	$144,000
Operating Costs	($436,800) (updated: confirmed $12K/mo rent replaces $26K/mo baseline)
Operating Loss Year 1	($292,800) (vs. prior ($327,600) — $34,800/yr savings)

Year 1 loss is expected. Utilization ramps from 60% to 85%+ by Year 2. Breakeven: Month 22–26 (confirmed lower rent moves break-even ~6 months earlier than prior estimate).

Monthly break-even: ~$40,400 revenue/month (revised down from $52,400 — confirmed $12–16K/mo rent replaces $26K/mo baseline assumption; $12K/month savings in fixed costs). At current trajectory:

Timeline	Monthly Revenue	Status (vs. $40,400 break-even)
Year 1 Month 12	~$17,500	57% below break-even
Year 2 Month 12	~$25,000	38% below
Year 2 Month 18 (Phase 2 launch)	~$35,000	13% below
Year 3 Month 6 (6-lane, ~Month 24)	~$45,000	11% ABOVE break-even ✓
Year 3 Month 12	~$52,000+	29% above break-even — Profitable

Prior estimate ($52,400 break-even) used $26K/month rent. Confirmed market rate is $12–16K/month — 38–54% lower. Break-even moves from Month 30 to approximately Month 22–24.

Total payback period: 18–24 months from opening (improved from 24–30 months).

Timeline: Submit all Phase 1 permits by Month 2 of project. Regulatory approval window = 60–90 days. Permits must be complete 30 days before soft opening.

Item	Agency	Timeline	Cost
LLC Formation	TX Secretary of State	1–2 weeks	$300
Sales Tax Permit	TX Comptroller	1–2 weeks	$0
Zoning + CUP	City of Stephenville	4–8 weeks	$500–$1,500
Building Permit	City Building Dept	2–4 weeks after CUP	$2,000–$5,000
Fire Safety Inspection	Fire Marshal	2 weeks post-construction	$300–$500
Health Dept Food Permit	TX Health Dept	4–6 weeks	$300–$600
Food Handler Certs	DSHS (per employee)	1 week each	$150–$300/person
ADA Compliance	City / Federal	Pre-opening	$500–$2,000
Music Licensing	ASCAP/BMI/SESAC	1–2 weeks	$600–$900/yr
Occupancy Certificate	Fire Marshal	Final inspection	$0

Total permitting cost: $5,000–$11,000  |  Total timeline: 90–120 days

TABC Mixed Beverage Permit: 30–60 days after Phase 1 opening. Cost: $600–$900 (state) + $300–$500 (local). Requires Phase 1 CUP already approved.

Justin's path to capital: SBA 7(a) loan ($700K over 10 years @ 9.2% = $8,400/month payment). Industry-standard for bowling alley financing.

SBA 7(a) Terms	Detail
Loan amount	$700K
Interest rate	9.0%–9.5% (March 2026)
Term	10 years
Monthly payment	~$8,400–$8,700
Required equity injection	10–20% ($70K–$140K)

1. Co-investor/Co-founder equity partnership: Someone contributes $75K–$100K capital for 10–15% equity. Justin operates full-time.
2. Angel investor network: Local investors in Waco/Stephenville area. SBDC connections.
3. Community investment: Erath County economic development funds, local business improvement grants.
4. Microloan programs: SBDC-affiliated microfinance (up to $50K) + SBA Express ($100K).
5. Staged equity: Raise $50K initially, launch MVP with $400K SBA loan, self-fund Phase 2.
6. USDA Rural Business Grant: Stephenville qualifies. Timeline: 3–6 months.

1. Given my situation ($0 savings, $40K debt, no business experience), what funding paths are actually available to me? Are there SBA Express programs with lower equity requirements? Microloan + smaller SBA loan combos?
2. Does SBDC maintain a network of angel investors or co-founder match programs in Waco/Erath County? What's the process? What do co-investors typically look for?
3. Are there USDA rural business grants I can access to offset the equity gap? Stephenville qualifies as rural. Timeline and application process?
4. What about local community investors or business improvement districts with capital programs?

1. Who are the best SBA lenders in Stephenville to approach? TexasBank primary, but should I talk to all three or focus on one?
2. What does TexasBank specifically need to see from me for a $700K SBA 7(a) application? Personal financial statement format? Business plan detail? Collateral docs?
3. What's the realistic timeline from SBA application to funding? 60 days? 120 days? Common delays or rejection points?

1. Should I form the LLC now ($300) or wait until funding is closer? Does early formation help with SBA credibility?
2. What's the permitting timeline I should plan for? Can permitting start before SBA approval (do I need signed lease first)?
3. What's the single most important thing I should do after this meeting?

1. Is there anything in my research, numbers, or plan that raises red flags from a lender's perspective?
2. Are there other young entrepreneurs in SBDC history who successfully raised capital for entertainment venues? What did they do differently? Lessons to learn?

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