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Medium Go/No Go Decision Financial Analysis Market Entry

Rock Climbing

#Strategy #Fitness & Recreation #Entrepreneurship
ProHub Comment

This is a Go/No Go career decision case requiring the candidate to compare a consulting career path against entrepreneurship in rock climbing gyms. The case is designed to test financial modeling skills, market analysis capabilities, and recommendation-making under incomplete information constraints. The interviewer guide emphasizes a purely financial optimization lens over a 10-year horizon with zero revenue/expense growth.

Estimated Time 15 minutes
Difficulty Medium
Source Cornell
50 / 100

Looking into the future, I am trying to determine which path I should take professionally? Should I look toward re-joining the consulting world where my salary could be anywhere from $125k to $170k? Or should I look to pursue my hobby and attempt to open either one, or a chain of rock climbing gyms throughout the US?

Can you help me make up my mind?

Clarifying Information

  1. Bouldering Gyms: Traditionally smaller in square footage than Sport gyms, newer concept than Sport gyms, located in suburban areas in warehouse districts, lower revenue per climber than Sport gyms, and doesn’t use rope systems
  2. Sport Climbing Gyms: Located closer to city centers, customers are typically 15+ years old, high revenue per customer, but significantly higher development costs, and uses rope systems
  3. High level information on revenues and supply by states (only if asked)
  4. The interviewee can only afford one market report showcasing projected sales, costs, and investment requirements for one type of gym in one state
  5. Pricing by location, demand figures by state, and cost structure/investment cost information will be provided in market report (to be determined based on interviewee’s choice)