Start-up Funding | |
Start-up Expenses to Fund | $1,100 |
Start-up Assets to Fund | $100,000 |
Total Funding Required | $101,100 |
Assets | |
Non-cash Assets from Start-up | $0 |
Cash Requirements from Start-up | $100,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $100,000 |
Total Assets | $100,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $1,100 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $1,100 |
Capital | |
Planned Investment | |
Investor 1 | $100,000 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $100,000 |
Loss at Start-up (Start-up Expenses) | ($1,100) |
Total Capital | $98,900 |
Total Capital and Liabilities | $100,000 |
Total Funding | $101,100 |
Panache Travel Group has two locations from which it will conduct business:
The offices in both locations are fully-equipped and staffed.
The mission of Panache Travel Group is service and luxury for discerning travelers. An observation well-known in the travel and hospitality industry is that achieving a reputation for excellence relies on word of mouth. We want the Panache brand to be synonymous with service and luxury. When the conversation turns to travel, we want our clients to say, “ I travel with Panache! ”
For the current year, 2001, Panache Journeys has planned and described twelve escorted tours:
To handle the myriad details involved, we will rely on the technology afforded by Panache Services, the World Wide Web and the focused attention of our founders and staff who will make all plans and arrangements.
Well-known luxury hotels engaged for these journeys include, to name just a few: The Splendido, in Portofino; The Carlton, in Cannes; The Ritz in London; and The Gritti Palace in Venice. Arrangements for notable dining experiences of equal caliber have been made in Michelin two-and-three-star restaurants.
Local subject experts have been engaged to impart their invaluable knowledge and perspective to our clients. For example, the services of Professore Marco di Navo, native Venetian, author of Venice , retired professor of art history, University of Padova, and a former head of the Venetian Tour Guide association have been reserved to give everyone new eyes with which to see the glories of Venice.
Of equal importance to everything mentioned above are the Panache hosts who accompany each Journey. Each is excellent and is prepared to give the utmost personal attention to clients on the road. Each host has a broad background of knowledge, experience and the all-important quality of a sense of humor. Each host understands the luxury field is unique unto itself; each client is unique, and the care, feeding and transporting of this demanding clientele requires him to be ever-ready to serve.
The goal of everyone at Panache Journeys is not only to meet the travel needs of its clients: it is to anticipate them. We want our service to be exceptional, not simply friendly. Panache Services provides complementary travel services for Panache Journeys clients, as well as corporate and general leisure travelers. In addition, unescorted FITs, or Free and Independent Tours, are happily arranged for clients for whom a Panache Journey is not quite right.
Panache Journeys has addressed these issues by positioning itself as a luxury travel company , offering exceptionally small groups (none larger than ten) and delivering an exceptionally high level of service. It understands that these aspects are highly valued, cannot be discounted, reduced or otherwise cheapened. Panache Journeys has not identified a direct competitor in this particular niche of the luxury travel market when aspects of service, group size, quality of accommodations and quantity of personal attention are included. Other luxury tour operators will be discussed under a separate topic in the market analysis and analyzed with a comparison of strengths and weaknesses.
A handsome, full-color brochure describes the Panache Journeys, which includes prices and terms. They were printed by The Printing of Salt Lake City and will be mailed to potential customers upon request. Additional brochures will be used in direct mail campaigns and as sales promotional material. Panache Travel Group will maintain, and regularly add to, its database of previous customers/contacts/potential clients information. Notes, additions and revisions will be made on a continuous basis. The website of PTG at www.panachetravelgroup.com gives information about Panache, its hosts, journeys offered with dates, prices, terms and booking information. An e-mail address is given for a Panache Journeys representative to respond to inquiries from prospective travelers. The site is adequate for the 2001 season, but will be thoroughly redesigned and developed for the 2002 season. Money has been allocated in the 2002 marketing budget for this project by an expert, outside firm.
The key fulfillment and delivery will be provided by the acquisition of both Panache European Journeys and Barkley Roberts Travel. The core value of these companies is professional expertise, achieved through the combination of travel experience, hard work and educational background.
Panache European Journeys established relationships with providers of travel-related products and services. Extensive market research enabled them to identify and create working relationships with numerous service providers around the world. Panache European Journeys identified opportunities to capture markets with great growth potential. They continually sought and evaluated new sources. Panache European Journeys took advantage of trade shows, travel industry personnel and publications and other sources of industry-related information as it monitored the quality of its offering. They have a history of three successful years providing tours, virtually identical, to those which will be offered by Panache Travel Group.
Barkley Roberts Travel is a full service travel agency. It is a member of the Airline Reporting Corporation (ARC), International Airlines Travel Agent Network (IATAN), Association of Travel Agencies (ASTA), along with many other groups and trade associations. It is also a member of www.vacation.com that is one of the largest consortium for obtaining additional commission and discounts prices on airline, hotel room, rental car and cruise line bookings. In addition, Barkley Roberts Travel has a large client base of both corporate and leisure clients, many of whom travelled with Panache European Journeys. Barkley Roberts Travel is staffed with two full-time certified travel professionals.
The bi-coastal offices staffed with the knowledgeable founders and personnel of PTG will facilitate attracting clients both to and within the luxury travel market though one-on-one meetings with potential clients, personal contact with sophisticated travel agencies which target up-scale consumers, and broad out-reach programs including travel conferences and media and special events.
Panache Travel Group will rely on the Computerized Reservation System (CRS) of Barkley Roberts Travel. Barkley Roberts Travel is currently under contract to WorldSpan, a leader in the CRS world. The CRS enables travel agents to identify what the customer is looking for and to make that information available quickly. It increases the speed and efficiency with which PTG can communicate with suppliers. In addition, the CRS simplifies customer data storage and retrieval. PTG will make use of the latest computer technology and the Internet for market research, communications, data storage and sales. PTG will also create working agreements with other travel agencies in the Salt Lake City and New York areas that will enhance its technological abilities and its financial profitability.
Panache Travel Group will increase the geographical areas of the world in which it offers tours. In addition, as the luxury travel market expands, PTG may develop business in additional segments of the luxury travel market, i.e. tours with an architectural, music festival, golf or local festival emphasis. PTG is researching the market to identify potential opportunities for future sales. The long-term goal of PTG is to establish itself as an internationally recognized provider of top-of-the-line luxury travel. This goal does not prohibit PTG from participating in additional areas of the travel industry. It does, however, provide a corporate focus and a differentiated offering.
Panache Travel Group will focus its initial efforts in obtaining clients in the United States interested in the luxury travel market. Travel and tourism is the nation’s largest services export industry. U.S. resident travelers spent $81.4 billion on travel to foreign countries in 1999. The travel & tourism industry is expected to account for 5.1% of the U.S. Gross Domestic Production (GNP) in 2000. The World Economic Forecast Association (WEFA) forecasts travel & tourism to grow by 4.1% a year between 2000 and 2005 in terms of real spending.
The target customers of Panache Travel Group are couples and individuals, with median household incomes in excess of $100,000 between the ages of 40-70 years of age. These people are interested in adventure, history, gastronomy, travel culture and unique travel experiences. Target groups are as follows:
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
USA Household Incomes Over $100K | 6% | 2,000,000 | 2,120,000 | 2,247,200 | 2,382,032 | 2,524,954 | 6.00% |
Travel Agents & Professionals | 4% | 300,000 | 312,000 | 324,480 | 337,459 | 350,957 | 4.00% |
Corporations, Civic Groups & Non-profit Organizations | 4% | 250,000 | 260,000 | 270,400 | 281,216 | 292,465 | 4.00% |
Internet | 5% | 1,000,000 | 1,050,000 | 1,102,500 | 1,157,625 | 1,215,506 | 5.00% |
Total | 5.42% | 3,550,000 | 3,742,000 | 3,944,580 | 4,158,332 | 4,383,882 | 5.42% |
Panache Travel Group is located in Salt Lake City and the New York City area. It will target and develop relationships with satisfied clients who have traveled with the PTG with the idea of capitalizing on their satisfaction by encouraging favorable word-of-mouth comments to their friends and acquaintances. It will place a great emphasis on targeting key travel agents/professionals, i.e. Virtuosi agents, who have established, luxury client bases. Luxury trade shows, informational meetings, and contact of clients from elite agencies will also be used to identify markets and clients.
The travel industry is growing. Reasons for this growth include a healthy domestic economy and the devaluation of currency in other parts of the world which has made travel less expensive for U.S. residents. Leisure travel has increased each year since 1990 and luxury travel, which is growing at an estimate 5% annually, is one of the fastest growing segments of the travel industry. Additionally, there has been a dramatic increase in corporate participation in the luxury travel market in the form of incentives and retreats.
Many potential customers have questions related to numerous aspects of foreign travel. Experience travelers and travel professionals have invaluable knowledge about destinations, accommodations, prices and the myriad questions that arise. General customers look to the travel professional to provide them with sound advice on these matters.
However, luxury travelers look to and depend on the travel professional to an even greater extent for an even greater number of things. Simply stated, they want someone to help them with everything: “Please take care of it all!” Panache Travel Group is confident in its ability to do just that. PTG saves the client time and money through their knowledge and travel experience, and ensures that clients are worry-free and completely satisfied.
The U.S. travel and tourism industry is the nation’s third largest retail industry, and according to the U.S. Department of Commerce, indicators suggest it will be the leading industry in 2001. Revenues from travel have increased approximately 100% in the last decade. U.S. travel agencies produce over $100 billion in revenues each year.
The travel market is separated into two categories: business and leisure. Each contributes about 45% to total revenues. The remaining 10% of the revenue is generated from combined business/leisure trips. The market is further separated into domestic and international travel. Leisure travelers are classified according to the type of trip taken, income and/or age.
The leisure travelers are divided into the following groups (not being mutually exclusive):
Lifestyle, age, and disposable income influence the decision to travel and the type of travel. Luxury travelers make purchase decisions based upon their desire to combine many interests with vacation time. Panache Travel Group will emphasize high-income travelers particularly interested in special-interest, rest and relaxation, honeymoons and sightseeing trips who may be families, groups with a mutual interest and/or seniors. When combined they form a very significant, lucrative market from which to draw potential clients.
There are many activities and types of travel available to people contemplating a luxury vacation. Moreover, potential customers do not have to vacation: they may elect to spend the discretionary portion of their budget in any number of ways, or invest the money they would otherwise have spent on a vacation.
However, if they are disposed to a luxury vacation, direct competition for Panache Services can come from virtually any agency. That being said, however, these same agencies can be direct sales agents of Panache Journeys. They are valued and are to be sought out. The average luxury traveler engages in one grand travel vacation every twelve months.
As mentioned above there are competitors for Panache Services, but the market of potential clients is truly vast. On the other hand, Panache Journeys has found a very nice niche with limited direct competition.
Several luxury tour companies compete directly with Panache Journeys for the luxury travel dollar. Three competitors are listed below with their strengths and weakness:
The travel industry is similar to other industries inasmuch as it has large national chains, small home-based businesses, consolidators on the Internet, etc. Membership numbers in some of the travel-related associations give some indication of the number of participants in this market. The American Society of Travel Agents (ASTA) reports 25,000 members in 135 countries, most of whom are small businesses. The Association of Retail Travel Agencies (ARTA) has another 3,000 members. In addition, many agencies are not affiliated with these associations but rather with one or more of the approximately 35 other travel industry organizations in the country.
In order to reach its goal of becoming one of the premiere luxury tour operators and travel planners, Panache Travel Group will adopt the following strategy:
5.2 competitive edge.
The competitive edge of Panache Travel Group is its focus, passion, experience, and in its superior product with Panache Journeys. PTG provides a differentiated offering with creative management and commitment.
Panache Travel Group will sell the benefits of the services it promotes and the luxury tours it offers. PTG will provide clients with all the arrangements which they can foresee, as well as many they would not have contemplated. Our concern is not to maximize profits on any individual sale, but to satisfy the client. We are confident that doing so will reduce costs and increase profits in the long run. It is less expensive to maintain a relationship than it is to create a new one. At PTG, we believe in the value of the travel we sell and we are confident that we can satisfy the seasoned traveler and the newcomer as well. Sales projections are detailed in the Yearly Sales chart accompanying the Sales Forecast topic and table.
Sales programs will include sales awards for the highest grossing sales representative and customer service awards for those employees who best exemplify Panache Travel Group’s commitment to clients. On-site sales, telephone sales, on-line sales, off-site sales and third-party sales will all be closely correlated with marketing promotions. Aspects of the sales processes, which may include training, cold-calling, leads, productivity, order-fulfillment, measurable and attainable goal-setting and follow-up efforts, will all be evaluated and clearly described.
Detailed projections are located in the sales chart and table below. Panache Travel Group expects sales to double in the first three years of operation. We believe this is a conservative estimate, given the nature of the vast market of potential clients and the market niche of Panache Journeys.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Journeys | $310,000 | $900,000 | $2,700,000 |
Services | $190,000 | $600,000 | $1,800,000 |
Total Sales | $500,000 | $1,500,000 | $4,500,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Journeys | $202,800 | $688,500 | $2,025,000 |
Services | $144,000 | $534,000 | $1,584,000 |
Subtotal Direct Cost of Sales | $346,800 | $1,222,500 | $3,609,000 |
Panache Travel Group adheres to the theory that the goal of business is to create and keep customers. Its marketing strategy will reflect this goal as it builds its reputation to clients throughout the United States.
Direct marketing methods may include the following:
Informal Marketing/Networking. Activities such as joining organizations, public speaking, or attending conferences will be explored. For example, an invitation has been extended to one of the founders of PTG for membership in the “DOM professionals,” club a charitable organization for women engaged in the sale and or promotion of passenger transportation and travel in New York City. Its membership is a who’s who of the industry and is a valuable networking organization.
Customer-Based Marketing may include the following:
Our aim is directed at individuals, corporations, civics groups and charitable organizations who wish to participate in luxury travel, and towards travel agents who want to sell the finest small group luxury tours on the market.
Much of the pricing of Panache Travel Group is determined by market standards. It will attempt to maintain modest margins on Panache Services and slightly higher margins on Panache Journeys. PTG will make every effort to maintain a competitive pricing policy and keep the price of Panache Journeys slightly below the price of other luxury tours for the first three years. However, as Panache Journeys builds its reputation as a premier small group luxury tour operator, it expects to earn the ability to charge comparable rates to other luxury tour companies.
The image we are promoting:
“ Panache :
from Late Latin (pinnaculum): small feather; from Old Italian (pennachio): ornamental tuft of feathers, often on a helmet; a tassel; from Middle French (pennache): flamboyantly or stylish confident manner.” —Oxford English Dictionary
This is the meaning of PANACHE, and this is the message we want to promote!
We seek to project our company’s name, and subtleties of its meaning, to the luxury traveler!
The luxury traveler travels with Panache — therefore he/she has panache!
We aim to convey the myriad benefits the luxury client will receive by traveling with Panache!
A Panache client will have an experience evoked by these phrases:
Therefore, we have addressed the Five F’s a customer wants:
Function . Our service meets their concrete needs and desires. Finances . Our prices are somewhat under market-rate. Freedom . We make purchase very convenient, thereby freeing the client’s time and mind. Feelings . We provide a service that makes the clients feel pleased with themselves for their acumen in selecting such a superior product. Future . The service creates great satisfaction. The client’s only longing is for another Journey!
The brochures are sleekly elegant. The logo printed on business cards and stationery is sophisticated and unusual: acid green and black dramatically create attention and the elegance of the Romanesque Panache script is eye-catching. Our sales representatives and Panache hosts are experienced, knowledgeable, cosmopolitan, polished and poised. Our website reinforces these images and messages.
How our image and services will be promoted:
During the first year, Panache Travel Group will continue a relationship begun with the Guild of Ballet West, a professional, nonprofit ballet company located in Salt Lake City, in affiliation with the San Francisco Ballet Company, with a membership of 354. Two journeys will be offered as the grand prize for their annual fund-raising extravaganza given by the Guild in April 28, 2001. This will create buzz and publicity for Panache Journeys, build interest for others to join the prize-winners to travel together, and give back to the community in which PTG is based.
An East-coast based promotion will be participation in the fund-raising auction of educational, public television station WLIW, Channel 21, based on Long Island, New York. The auction will take place June 1-3, 2001. One journey will be auctioned. We will create a 30-second spot with WLIW’s production team. The spot will be aired ten times; print acknowledgement will be made in a Newsday newspaper ad; we’ll receive promotion on WLIW’s auction website and link access to our website; and we have an on-air guest auctioneer opportunity and live interview about Panache Journeys. WLIW has a viewership in New York, New Jersey and Connecticut of more than 1.9 million households weekly and we will be publicized before this vast audience.
PTG will continue calling on travel agencies, in person and by telephone, especially in areas identified as having high levels of income. A select, edited list has been prepared for us by a high-profiled, much-loved and respected, travel professional in New York City. Her stamp-of-approval, gained at the Las Vegas Luxury Travel Expo held in December 2000, has opened many doors. PTG will collaborate with up-scale travel agencies in joint promotions. For example, we will co-sponsor a select mailing in Pittsburgh to high-net-worth individuals who have been identified as interested in luxury travel.
PTG will co-host a kick-off cocktail party with an important agency as they launch their new website. One hundred top local CEO’s, clients of this agency, will be invited.
PTG is working with a Virginia agency and an important museum curator and lecturer to customize an itinerary emphasizing architectural aspects of European cities for interested museum members. PTG may develop an affiliation with the Great Books Program of the University of Chicago, initially in Westchester County, New York. Members have expressed an interest in having PTG tailor travel itineraries highlighting points of specific literary interest. An offer has been made to link our website with that of the Great Books program as well.
PTG will participate in national and regional trade shows. The next one on the calendar is the 2001 Alliance of Westchester Travel Agencies (AWTA) to be held in Tarrytown, New York, April 2, 2001. It draws more than 400 owners, corporate managers and travel agents from Westchester and Rockland counties in New York, Connecticut and other surrounding areas.
Two nationally important trade shows held annually are the Luxury Travel Expo (LTE) in Las Vegas and the Incentive Travel Marketing Expo (ITME) in Chicago. Both are worthwhile. We will attend and exhibit.
Our website will be a very important avenue for reaching prospective clients not reached in other ways. Casually speaking, “It’s a way to put more feet on the street!” It is also an ideal location to introduce tie-in products and services. For example, if we were to believe that a particular Tumi piece of luggage was ideal, we might seek an affiliation with them and create a link on our website. Additionally, if we created a reading list, we might profitably seek a tie-in with one of the on-line book sellers such as Amazon.com.
Another marketing program contemplated is the publication of a chatty newsletter, perhaps distributed quarterly. Its purpose would be to increase customer contact and serve as a vehicle for exemplifying our dedicated, personal attention. We could also highlight new Journeys, interesting travel tidbits, etc., etc. through this means.
Personal selling will also occur utilizing the extended networks of everyone affiliated with Panache Travel Group.
Strategic alliances for promotions will be developed with travel agents, corporations, civic groups and non-profit organizations. Some of these alliances have been established by Panache Journeys and will continue and be expanded by Panache Travel Group.
The initial management team depends on the founders of Panache Travel Group and the current employees of Barkley Roberts Travel. George Raymond will act as General Manager. As PTG grows, a board of directors will be formed and additional employees will be added in support, sales, field and marketing.
Panache Travel Group will begin operations with 4 full-time positions and employ independent contractors where necessary for sales and field operations. It will use the service of the certified public accounting firm of Terry Price & Wunderli for payroll, taxes, and accounting. The positions are as follows.
General Manager, LC Partner and President: George Raymond
Marketing Director, LC Partner and Vice President: Dominque Pascal
Travel Director, LC Partner and Vice President: Alica Marques
Office Manager and 2nd Travel Agent: Suzy Brown
General Manager and Development Director
George Raymond, 47, B.A. History, M.A. Comparative Literature, University of California, PhD.Comparative Literature, University of Utah. Seven years as Adjunct Professor of French and Comparative Literature at the University of Utah. A life-long world traveler and sophisticated bon vivant who speaks French fluently and can make himself understood in myriad other languages. So well-traveled there isn’t a silver/gold/platinum metal precious enough to indicate the millions of frequent-flyer air miles he has flown around the world.
Marketing and Sales Director
Dominque Pascal 48, B.S. History, English, Yale University. Twenty-five years of experience with Morgan Stanley & Co., Inc., Junior League of Westchester, and personal family offices of financiers Willam Dupont Jr., and marketing director of Deluxe World Tours. Mother of an 3 adult sons, an accomplished cook and an avid reader, she has lived in New York for over thirty years and led many lives.
Travel Director
Alica Marques, 39. Twenty years experience in the travel business, including two years as managing partner of Barkley Roberts Travel. With extensive travel experience she has first-hand knowledge of many locations. An expert on CRS and other travel-related computer applications, Alica has many contacts in the industry, knowledge of critical daily operations, and speaks Spanish.
Office Manager and Travel Agent
Suzy Brown, 26. Five years experience in travel, including her work as the current office manager of Barkley Roberts Travel. Not only familiar with the CRS system, she is a wizard with TRAMS, a back-office accounting program designed specifically for the travel business.
The personnel plan of Panache Travel Group depicts anticipated head count for the start-up year. The following table provides more detailed information. PTG anticipates the need to increase personnel in the first 2-3 years, but will need to significantly increase independent contractors for sales reps and tour guides, who will be paid on a commission basis.
*Positions marked with an asterisk, in addition to their base salaries, also receive commission from sales and hosting tours. The cost of paying these commissions is built into the cost of the sale.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
President and Development Dir. * | $14,000 | $25,000 | $40,000 |
Marketing & Advertising Dir. * | $14,000 | $20,000 | $35,000 |
Office Manager * | $14,000 | $20,000 | $35,000 |
Accounting | $3,500 | $9,000 | $12,000 |
Travel Dir. * | $7,000 | $13,000 | $14,000 |
Travel Agent | $0 | $0 | $0 |
Sales Reps. | $0 | $0 | $0 |
Tour Guides | $0 | $0 | $0 |
Additional Office Support | $0 | $0 | $13,000 |
Total People | 10 | 14 | 20 |
Total Payroll | $52,500 | $87,000 | $149,000 |
The financial plan of Panache Travel Group is detailed in the following sections. Preliminary estimates suggest that PTG will experience rapid growth and will increase in gross margin and sales volume. This is partly due to the vast market, but will be facilitated by increased marketing. Income estimates are based, in part, on anticipated revenues from accounts and clients that are secured by PTG prior to its acquisition of both Barkley Roberts Travel and Panache European Journeys. PTG will need sufficient cash to allow for a possible negative cash flow during start-up. It will also need investment to acquire the assets and liabilities of Barkley Roberts Travel and Panache European Journeys. Thus, the overall financial plan presents a conservative, but realistic, depiction of the financial position of PTG.
Panache Travel Group assumes the following:
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 25.42% | 25.00% | 25.42% |
Other | 0 | 0 | 0 |
The following chart indicates key financial indicators for the first three years for Panache Travel Group. Growth is expected in sales and a proportional increase in operating expenses during expansion.
The profit picture of Panache Travel Group improves as operations move into the second year. PTG anticipates improving its profitability dramatically by 2003. The annual estimates are included in the table below.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $500,000 | $1,500,000 | $4,500,000 |
Direct Cost of Sales | $346,800 | $1,222,500 | $3,609,000 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $346,800 | $1,222,500 | $3,609,000 |
Gross Margin | $153,200 | $277,500 | $891,000 |
Gross Margin % | 30.64% | 18.50% | 19.80% |
Expenses | |||
Payroll | $52,500 | $87,000 | $149,000 |
Sales and Marketing and Other Expenses | $11,700 | $38,600 | $76,000 |
Depreciation | $0 | $0 | $0 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $875 | $1,574 | $1,653 |
Insurance | $700 | $1,200 | $1,200 |
Rent | $2,100 | $3,600 | $3,600 |
Payroll Taxes | $2,625 | $4,350 | $7,450 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $70,500 | $136,324 | $238,903 |
Profit Before Interest and Taxes | $82,700 | $141,176 | $652,097 |
EBITDA | $82,700 | $141,176 | $652,097 |
Interest Expense | $110 | $110 | $110 |
Taxes Incurred | $20,647 | $35,267 | $165,713 |
Net Profit | $61,943 | $105,800 | $486,274 |
Net Profit/Sales | 12.39% | 7.05% | 10.81% |
Cash flow projections are critical to our success. The monthly cash flow for 2001 is shown in the illustration, with one bar representing the cash flow per month and the other representing the monthly balance. The annual cash flow figures are included here in the following table.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $500,000 | $1,500,000 | $4,500,000 |
Subtotal Cash from Operations | $500,000 | $1,500,000 | $4,500,000 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $500,000 | $1,500,000 | $4,500,000 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $52,500 | $87,000 | $149,000 |
Bill Payments | $343,452 | $1,241,864 | $3,654,519 |
Subtotal Spent on Operations | $395,952 | $1,328,864 | $3,803,519 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $395,952 | $1,328,864 | $3,803,519 |
Net Cash Flow | $104,048 | $171,136 | $696,481 |
Cash Balance | $204,048 | $375,184 | $1,071,665 |
The balance sheet indicates sustained and planned growth. Net worth improves considerably in years two and three and will provide Panache Travel Group with a strong financial position.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $204,048 | $375,184 | $1,071,665 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $204,048 | $375,184 | $1,071,665 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $204,048 | $375,184 | $1,071,665 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $42,105 | $107,441 | $317,649 |
Current Borrowing | $1,100 | $1,100 | $1,100 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $43,205 | $108,541 | $318,749 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $43,205 | $108,541 | $318,749 |
Paid-in Capital | $100,000 | $100,000 | $100,000 |
Retained Earnings | ($1,100) | $60,843 | $166,642 |
Earnings | $61,943 | $105,800 | $486,274 |
Total Capital | $160,843 | $266,642 | $752,916 |
Total Liabilities and Capital | $204,048 | $375,184 | $1,071,665 |
Net Worth | $160,843 | $266,642 | $752,916 |
The following table shows the projected business ratios. Panache Travel Group expects to maintain healthy ratios for profitability, risk and return. Industry Profile ratios are also shown, based on Standard Industry Classification (SIC) code 4724, Travel Agencies.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 200.00% | 200.00% | 4.00% |
Percent of Total Assets | ||||
Other Current Assets | 0.00% | 0.00% | 0.00% | 38.10% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 64.00% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 36.00% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 21.17% | 28.93% | 29.74% | 39.60% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 16.30% |
Total Liabilities | 21.17% | 28.93% | 29.74% | 55.90% |
Net Worth | 78.83% | 71.07% | 70.26% | 44.10% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 30.64% | 18.50% | 19.80% | 38.30% |
Selling, General & Administrative Expenses | 18.25% | 11.45% | 8.93% | 27.50% |
Advertising Expenses | 1.40% | 1.67% | 1.11% | 0.40% |
Profit Before Interest and Taxes | 16.54% | 9.41% | 14.49% | 1.30% |
Main Ratios | ||||
Current | 4.72 | 3.46 | 3.36 | 1.44 |
Quick | 4.72 | 3.46 | 3.36 | 1.13 |
Total Debt to Total Assets | 21.17% | 28.93% | 29.74% | 55.90% |
Pre-tax Return on Net Worth | 51.35% | 52.90% | 86.59% | 3.20% |
Pre-tax Return on Assets | 40.48% | 37.60% | 60.84% | 7.20% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 12.39% | 7.05% | 10.81% | n.a |
Return on Equity | 38.51% | 39.68% | 64.59% | n.a |
Activity Ratios | ||||
Accounts Payable Turnover | 9.16 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 21 | 20 | n.a |
Total Asset Turnover | 2.45 | 4.00 | 4.20 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.27 | 0.41 | 0.42 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $160,843 | $266,642 | $752,916 | n.a |
Interest Coverage | 751.82 | 1,283.42 | 5,928.15 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.41 | 0.25 | 0.24 | n.a |
Current Debt/Total Assets | 21% | 29% | 30% | n.a |
Acid Test | 4.72 | 3.46 | 3.36 | n.a |
Sales/Net Worth | 3.11 | 5.63 | 5.98 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Journeys | 0% | $0 | $0 | $0 | $0 | $0 | $50,000 | $50,000 | $50,000 | $50,000 | $50,000 | $30,000 | $30,000 |
Services | 0% | $0 | $0 | $0 | $0 | $0 | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 | $20,000 | $20,000 |
Total Sales | $0 | $0 | $0 | $0 | $0 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $50,000 | $50,000 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Journeys | $0 | $0 | $0 | $0 | $0 | $0 | $39,000 | $39,000 | $39,000 | $39,000 | $23,400 | $23,400 | |
Services | $0 | $0 | $0 | $0 | $0 | $0 | $27,000 | $27,000 | $27,000 | $27,000 | $18,000 | $18,000 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $66,000 | $66,000 | $66,000 | $66,000 | $41,400 | $41,400 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
President and Development Dir. * | 0% | $0 | $0 | $0 | $0 | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Marketing & Advertising Dir. * | 0% | $0 | $0 | $0 | $0 | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Office Manager * | 0% | $0 | $0 | $0 | $0 | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Accounting | 0% | $0 | $0 | $0 | $0 | $0 | $500 | $500 | $500 | $500 | $500 | $500 | $500 |
Travel Dir. * | 0% | $0 | $0 | $0 | $0 | $0 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
Travel Agent | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Sales Reps. | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Tour Guides | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Additional Office Support | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 10 | 10 | 10 | 10 | 12 | 14 | 14 | 14 | 12 | 10 | 10 | 10 | |
Total Payroll | $0 | $0 | $0 | $0 | $0 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $0 | $0 | $0 | $0 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $50,000 | $50,000 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $66,000 | $66,000 | $66,000 | $66,000 | $41,400 | $41,400 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $66,000 | $66,000 | $66,000 | $66,000 | $41,400 | $41,400 | |
Gross Margin | $0 | $0 | $0 | $0 | $0 | $80,000 | $14,000 | $14,000 | $14,000 | $14,000 | $8,600 | $8,600 | |
Gross Margin % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 100.00% | 17.50% | 17.50% | 17.50% | 17.50% | 17.20% | 17.20% | |
Expenses | |||||||||||||
Payroll | $0 | $0 | $0 | $0 | $0 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $2,100 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | $1,600 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $0 | $0 | $0 | $0 | $0 | $125 | $125 | $125 | $125 | $125 | $125 | $125 | |
Insurance | $0 | $0 | $0 | $0 | $0 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Rent | $0 | $0 | $0 | $0 | $0 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Payroll Taxes | 5% | $0 | $0 | $0 | $0 | $0 | $375 | $375 | $375 | $375 | $375 | $375 | $375 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $0 | $0 | $0 | $0 | $0 | $10,500 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | |
Profit Before Interest and Taxes | $0 | $0 | $0 | $0 | $0 | $69,500 | $4,000 | $4,000 | $4,000 | $4,000 | ($1,400) | ($1,400) | |
EBITDA | $0 | $0 | $0 | $0 | $0 | $69,500 | $4,000 | $4,000 | $4,000 | $4,000 | ($1,400) | ($1,400) | |
Interest Expense | $9 | $9 | $9 | $9 | $9 | $9 | $9 | $9 | $9 | $9 | $9 | $9 | |
Taxes Incurred | ($3) | ($2) | ($2) | ($2) | ($2) | $17,373 | $998 | $998 | $998 | $998 | ($352) | ($352) | |
Net Profit | ($6) | ($7) | ($7) | ($7) | ($7) | $52,118 | $2,993 | $2,993 | $2,993 | $2,993 | ($1,057) | ($1,057) | |
Net Profit/Sales | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 65.15% | 3.74% | 3.74% | 3.74% | 3.74% | -2.11% | -2.11% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $0 | $0 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $50,000 | $50,000 | |
Subtotal Cash from Operations | $0 | $0 | $0 | $0 | $0 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $50,000 | $50,000 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $0 | $0 | $0 | $0 | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 | $50,000 | $50,000 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $0 | $0 | $0 | $0 | $0 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | |
Bill Payments | $0 | $6 | $7 | $7 | $7 | $686 | $22,019 | $69,507 | $69,507 | $69,507 | $68,642 | $43,557 | |
Subtotal Spent on Operations | $0 | $6 | $7 | $7 | $7 | $8,186 | $29,519 | $77,007 | $77,007 | $77,007 | $76,142 | $51,057 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $0 | $6 | $7 | $7 | $7 | $8,186 | $29,519 | $77,007 | $77,007 | $77,007 | $76,142 | $51,057 | |
Net Cash Flow | ($0) | ($6) | ($7) | ($7) | ($7) | $71,814 | $50,481 | $2,993 | $2,993 | $2,993 | ($26,142) | ($1,057) | |
Cash Balance | $100,000 | $99,993 | $99,986 | $99,980 | $99,973 | $171,787 | $222,267 | $225,260 | $228,254 | $231,247 | $205,105 | $204,048 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $100,000 | $100,000 | $99,993 | $99,986 | $99,980 | $99,973 | $171,787 | $222,267 | $225,260 | $228,254 | $231,247 | $205,105 | $204,048 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $100,000 | $100,000 | $99,993 | $99,986 | $99,980 | $99,973 | $171,787 | $222,267 | $225,260 | $228,254 | $231,247 | $205,105 | $204,048 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $100,000 | $100,000 | $99,993 | $99,986 | $99,980 | $99,973 | $171,787 | $222,267 | $225,260 | $228,254 | $231,247 | $205,105 | $204,048 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $6 | $7 | $7 | $7 | $7 | $19,702 | $67,190 | $67,190 | $67,190 | $67,190 | $42,105 | $42,105 |
Current Borrowing | $1,100 | $1,100 | $1,100 | $1,100 | $1,100 | $1,100 | $1,100 | $1,100 | $1,100 | $1,100 | $1,100 | $1,100 | $1,100 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $1,100 | $1,106 | $1,107 | $1,107 | $1,107 | $1,107 | $20,802 | $68,290 | $68,290 | $68,290 | $68,290 | $43,205 | $43,205 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $1,100 | $1,106 | $1,107 | $1,107 | $1,107 | $1,107 | $20,802 | $68,290 | $68,290 | $68,290 | $68,290 | $43,205 | $43,205 |
Paid-in Capital | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
Retained Earnings | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) | ($1,100) |
Earnings | $0 | ($6) | ($13) | ($20) | ($27) | ($34) | $52,084 | $55,077 | $58,070 | $61,064 | $64,057 | $63,000 | $61,943 |
Total Capital | $98,900 | $98,894 | $98,887 | $98,880 | $98,873 | $98,866 | $150,984 | $153,977 | $156,970 | $159,964 | $162,957 | $161,900 | $160,843 |
Total Liabilities and Capital | $100,000 | $100,000 | $99,993 | $99,986 | $99,980 | $99,973 | $171,787 | $222,267 | $225,260 | $228,254 | $231,247 | $205,105 | $204,048 |
Net Worth | $98,900 | $98,894 | $98,887 | $98,880 | $98,873 | $98,866 | $150,984 | $153,977 | $156,970 | $159,964 | $162,957 | $161,900 | $160,843 |
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1. describe the purpose of your travel agency business..
The first step to writing your business plan is to describe the purpose of your travel agency business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.
It also helps to include a vision statement so that readers can understand what type of company you want to build.
Here is an example of a purpose mission statement for a travel agency business:
Our mission at [Travel Agency] is to provide customers with the hassle-free and cost-effective travel experience that best meets their individual needs and exceeds their expectations. We strive to make travel an enjoyable and memorable experience for each and every one of our customers.
The next step is to outline your products and services for your travel agency business.
When you think about the products and services that you offer, it's helpful to ask yourself the following questions:
You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.
If you don't have a marketing plan for your travel agency business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals.
A good marketing plan for your travel agency business includes the following elements:
Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations.
In it, you should list:
To run a Travel Agency business, you will need the following equipment, supplies, and permits:
The second part of your travel agency business plan is to develop a management and organization section.
This section will cover all of the following:
This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.
Typically, expenses for your business can be broken into a few basic categories:
Startup Costs
Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a travel agency business varies based on many different variables, but below are a few different types of startup costs for a travel agency business.
Running & Operating Costs
Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.
Marketing & Sales Expenses
You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your travel agency business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.
A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your travel agency business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses.
Here are some steps you can follow to devise a financial plan for your travel agency business plan:
Why do you need a business plan for a travel agency business.
A business plan for a travel agency is essential for a number of reasons. It will help you to define your objectives and strategies, identify your target market, and assess the potential profitability of your business. It also serves as a roadmap for establishing key relationships with vendors, creating operational structures, and setting budgets. A business plan can also be used to demonstrate your commitment to potential investors or lenders, showing them that you have taken the time to understand the industry and create a realistic plan for success.
You should ask a professional business consultant or accountant for help with your travel agency business plan. They will be able to provide the knowledge and experience necessary to develop a successful plan that meets your goals and objectives.
Yes, it is possible to write a travel agency business plan yourself. Writing a business plan requires in-depth research, a clear understanding of your industry and the ability to articulate your strategies and objectives. This includes creating an executive summary, market analysis, details on the services you offer and a financial forecast. Additionally, you need to clearly define your travel agency’s mission statement and list out any unique features or goals. Once you have researched your industry and developed these key elements of the plan, you may be able to create an effective business plan on your own. However, it may be beneficial to consult with an expert in the field or hire someone to assist in the process.
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Travel business plan template – 14+ free word, excel, pdf format download.
A travel agency business plan is a fundamental component in the inception and smooth progression of the enterprise. A hotel business plan , written either in word, excel or pdf by yourself or with the help of a business plan planner, refers to a detailed documentation of operations and plan samples pointing out how a firm with the intention of venturing into business will achieve its short and long term objectives.
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Properties features in krasnodar krai, russia.
This Section's Contents
Customer segmentation.
Company Name] will serve the residents, workers, and travel enthusiasts in [company location] and the immediate surrounding area.
The area we serve is a city with a very diverse population group. The city has mostly moderate to high income families and individuals who can afford to avail the services of a travel agency. Most of the population are working individuals with disposable income, but little free time, so they need someone to help plan their vacations.
Wilmette | Winnetka | |
---|---|---|
Total Population | 26,097 | 10,725 |
Square Miles | 6.89 | 3.96 |
Population Density | 3,789.20 | 2,710.80 |
Population Male | 48.04% | 48.84% |
Population Female | 51.96% | 51.16% |
Target Population by Age Group | ||
Age 18-24 | 3.68% | 3.52% |
Age 25-34 | 5.22% | 4.50% |
Age 35-44 | 13.80% | 13.91% |
Age 45-54 | 18.09% | 18.22% |
Target Population by Income | ||
Income $50,000 to $74,999 | 11.16% | 6.00% |
Income $75,000 to $99,999 | 10.91% | 4.41% |
Income $100,000 to $124,999 | 9.07% | 6.40% |
Income $125,000 to $149,999 | 9.95% | 8.02% |
Income $150,000 to $199,999 | 12.20% | 11.11% |
Income $200,000 and Over | 32.48% | 54.99% |
The company will primarily target the following customer segments:
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Travel Agency Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
Krasnodar Krai, often referred to as Krasnodar, is a federal subject (krai) of Russia located in the Southern Federal District. It is known for its diverse landscapes, including the Black Sea coastline, fertile farmland, and the Caucasus Mountains. The administrative center of Krasnodar Krai is the city of Krasnodar. Here’s some information about Krasnodar Krai:
Places to Visit in Krasnodar Krai: Sochi: This coastal city on the Black Sea is famous for its subtropical climate, beautiful beaches, and the host of the 2014 Winter Olympics. Visit the Sochi Arboretum, Rosa Khutor Alpine Ski Resort, and the Black Sea coast.
Krasnodar: Explore the largest city in the region, known for its parks, cultural attractions, and the Krasnodar Stadium. The Krasnodar Park and Safari Park are popular.
Anapa: A popular seaside resort town with sandy beaches, historical sites, and a mild climate.
Caucasus Mountains: Hike and explore the stunning landscapes of the Caucasus Mountains, including the Sochi National Park and Krasnaya Polyana.
Adler: A city near Sochi, known for its beautiful beachfront and proximity to the Adler Arena Skating Center.
Abrau-Dyurso: Visit the famous Abrau-Dyurso wine estate, known for its sparkling wines, and enjoy wine tasting.
Best Time to Visit Krasnodar Krai: Summer (June to August): The summer months are ideal for visiting Krasnodar Krai, especially the coastal areas, as the weather is warm and beach activities are in full swing.
Spring and Early Autumn: Spring (April to May) and early autumn (September to October) are also pleasant, with milder temperatures and fewer crowds.
Things to Do in Krasnodar Krai: Beach Activities: Enjoy swimming, sunbathing, water sports, and beachfront promenades along the Black Sea coast.
Outdoor Adventures: Explore the natural beauty of the region, including hiking, mountain biking, and winter sports in the Caucasus Mountains.
Cultural Exploration: Discover local traditions, museums, and historical sites to learn about the region’s rich heritage.
Wine Tasting: Visit vineyards and wineries in the region to sample local wines.
How to Get Around Krasnodar Krai: Public Transportation: Public buses, trams, and trolleybuses serve the major cities in Krasnodar Krai. Sochi, Krasnodar, and Anapa have well-developed public transportation networks.
Taxis: Taxis are readily available and can be used for short trips within the cities and for transportation to more remote areas.
Car Rental: Renting a car can be a convenient option for exploring the region, especially if you plan to visit various locations.
Domestic Flights: Major cities like Sochi and Krasnodar have airports with domestic flights connecting them to other Russian cities.
Where to Eat in Krasnodar Krai: Local Cuisine: Savor traditional Russian and Caucasian dishes, including shashlik (kebabs), borscht (beet soup), and local seafood in coastal areas.
Cafes and Restaurants: Explore cafes and restaurants offering international cuisine, including European, Asian, and Middle Eastern dishes.
Street Food: Try local snacks and street food from vendors in markets and along popular tourist areas.
Where to Stay in Krasnodar Krai: Krasnodar Krai offers a range of accommodation options, including hotels, guesthouses, hostels, and resorts. The coastal cities, such as Sochi and Adler, have a variety of lodging choices to suit different budgets and preferences.
Travel Tips for Krasnodar Krai: Language: Russian is the primary language spoken in Krasnodar Krai, so having some knowledge of the language can be helpful, especially in more remote areas.
Currency: The currency used in Krasnodar Krai is the Russian Ruble (RUB). Credit cards are widely accepted in hotels and restaurants, but it’s a good idea to carry cash for smaller establishments and markets.
Safety: Krasnodar Krai is generally safe for tourists, but, like in any travel, be cautious with your belongings and personal safety.
Climate: The climate in the coastal areas is milder compared to the mountainous regions. Be prepared for seasonal temperature variations.
Local Customs: Be respectful of local customs and traditions, particularly when visiting cultural or religious sites.
Transportation: Familiarize yourself with the local transportation system, and consider using taxis or ridesharing apps for convenience.
Krasnodar Krai offers a mix of natural beauty, cultural experiences, and outdoor adventures. By following these travel tips, you can have a memorable and enjoyable visit to this diverse and scenic region in southern Russia.
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Travel Agency Business Plan Template (2024)
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Travel Agency Business Plan Template [Updated 2024]
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Business Overview. Ex :: Sunlight. Sunlight Tours will provide integrated eco and cultural travel packages to people in the KwaZulu- Natal province - the Zulu kingdom to explore their province. The founders and the employees of the Sunlight Tours have experienced travel industry professionals and are.
A Sample Travel Agency Business Plan Template. 1. Industry Overview. Statistics has it that as far back as 2009, the total market size for travel agencies in the united states experienced a sharp decline, dropping from an estimate of $17 billion in 2008 to $14.5 billion. Cruise line booking remains one of the most profitable aspects of travel ...
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Start Your Free Trial Now Or learn more about our solution here. 5. The strategy section. When writing the strategy section of a business plan for your travel agency, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.
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Travel Business Plan Template - 14+ Free Word, Excel, PDF Format Download. A travel agency business plan is a fundamental component in the inception and smooth progression of the enterprise. A hotel business plan, written either in word, excel or pdf by yourself or with the help of a business plan planner, refers to a detailed documentation ...
Find Residential properties for Sale in Krasnodar Krai, Russia Large selection of residential properties in latest listings Actual prices Photos Description and Location on the map.
Krasnodar Krai: All You Must Know Before You Go (2024)
Businesses: Some companies travel with their employees for team building activities and the like. We plan to contact these companies and provide them travel packages for groups. Use this free travel agency business plan template to quickly and easily create a great travel agency business plan to raise funding and/or grow your business.
Business Travel; Train Travel; Traveling With Disabilities; Tripadvisor Support; ... I am having a hard time researching since I don't want to use any kind of travel agency. Can someone help me figure out how to do this on my own. Or is it just better to go to travel agent. I feel more comfortable doing it from here (US) though, so I can book ...
Best Time to Visit Krasnodar Krai: Summer (June to August): The summer months are ideal for visiting Krasnodar Krai, especially the coastal areas, as the weather is warm and beach activities are in full swing. Spring and Early Autumn: Spring (April to May) and early autumn (September to October) are also pleasant, with milder temperatures and ...