To make this business plan yours, please fill in the parts in Blue with
information about you and your business. Please do not hesitate to seek
assistance in preparing your financials. Call Karriem Ali @ 770-744-4371.
Confidentiality Agreement
This agreement is to acknowledge that the information provided by
_____________ in this business plan is unique to this business and
confidential; therefore, anyone reading this plan agrees not to disclose
any of the information in this business plan without the express written
permission of _____________. The reader of this business plan that the
information furnished in this business plan, other than information that is in
the public domain, may cause serious harm or damage to
_____________and will be kept in the strictest confidence also
acknowledges it.
Upon request, this document is to be immediately returned to
_____________.
Signature ____________________
Name (typed or printed) ________________________
Date ___________________________
This is the business plan for _____________. The presentation of this business
plan does not imply an offering of securities.
1
Strategic & Tactical Business Plan
For
Tarzan Boat™
An oasis of adrenaline... right on the water
Your Name __________________
Your Business Address _________________________
City State Zip _____________________________
Your Phone ___________________________
Your Email Address _____________________________
Your Website _____________________________
2
TABLE OF CONTENTS
Executive Summary
Products and Services
Market Analysis
Competition
Operational Processes
Sales Strategy
Management and Staffing
Sales Forecast
Important Assumptions
Startup Costs
Company Growth & Exit Strategy
Financial Narrative
3 Year Proforma / Cash Projections
Exhibits
3
EXECUTIVE SUMMARY
Brief Business Description
For the purposes of this business plan, ____________, incorporated is a coowned by _________________________. This entity is assessed taxes as an
“__” Corporation under the guidelines of the state of __________________.
_____________ has entered the water park industry, and is doing business
as, Tarzan Boat™ LLC. Tarzan Boat™ is a wholly owned subsidiary of Avery
Designs, Inc., and has opened its offices in _____________, __.
This business plan will be used for four purposes:






To map out all the necessary components to create a successful
and well-run mobile water park company
To provide ourselves with a solid blueprint to follow.
To secure financing through private institutions and investors.
Tarzan Boat™ is assembled at our water site by Avery Designs.
Training, business model guidance, media kits, safety rules, and
manual is provided by Avery Designs.
Tarzan Boat™ is a turn-key business opportunity.
The product our company wishes to purchase is The Tarzan Boat™. Avery
Designs currently manufactures the Tarzan Boat™ in approximately 12
weeks. This is an existing business that is making the Tarzan Boat™
available to its market place at a rate of $63,700 per unit. The Tarzan
Boat™ is brand new on the market place.
It would seem that the market for this product is seasonal, but it is year
round because this product can be shipped anywhere in the world just in
time for beautiful weather.
Tarzan Boat™ is a mobile is a mobile floating water park for all ages. “An
oasis of adrenaline - right on the water”. Avery Designs has researched
and developed a safe, well engineered floating water park full of jumps,
slides, and swings that will allow individuals and groups hours of water park
fun from the comfort of a large boat.
This mobile vehicle can be driven anywhere there is a beach and
become an instant party center. Uses of this vehicle include private
4
parties, public water parks, and personal ownership. Our manufacturing
team has taken every safety measure into account to ensure our
clientele’s customers will enjoy uninterrupted fun and excitement.
Present Situation
While Avery Designs has full manufacturing capabilities, it is creating a
new market, and needs to make it easy for users to purchase and use the
Tarzan Boat™
Risks
Our major strengths lie in our opportunities of our business model. Tarzan
Boat™ is the only product of its kind in this region. This could deem our
operation as risky.
Our management believes that through our
experience and capable management, business skills, personnel plan,
and our unique service, low overhead, high margin, good service,
emphasis on quality, we will take advantage of our opportunities and
proceed with success.
Summary of Products & Services
Tarzan Boat™ is a floating water park. It has six water attraction packages
to choose from, and can operate in many climates and waterways in
most of the world. Life Jackets, Training and installation is included with
each package
Packages include:
 Monkey Jump
 Monkey Bounce
 Tarzan Swing & Jungle
Climb



Gorilla Jump
Gorilla Bounce
Jungle Slide
Summary of Our Market
Target Market
Our target market includes anyone who wants to visit our outdoor
entertainment attraction, state run beaches, and water parks, and private
owners.
Total Market
Our total market includes
the population anywhere near
5
a beach, lake or large body of water, including hotels, homes on the
water, resorts and camps, etc.
Summary of Competition
Competition is limited to other fun outdoor activities, jump parks, or water
parks in the vicinity of the Tarzan Boat™
Sales Strategy
 People/Personnel
 Price
 Packaging
 Product
 Press
 Uniqueness






Distribution
Effort
Financing
Identity of Brand
Marketing
Product Placement
Location Needs
The ideal location for a Tarzan Boat™ is of course the water. The most
advantageous thing to do is leave the Tarzan Boat™ in the water at all
times, however you can take Tarzan Boat™ out of the water with a large
trailer, but it is not advised that you do this frequently or travel far. Often
times, a marina can trade slip space for being your rent agent.
Summary of Management Background
How does your background experience help you in this business?
Management Responsibilities
___________ and _________ currently share in the responsibility of the
business. Tarzan Boat™ has a complete staff available to help fulfill its
needs.
Loan Needs
Total Capital Investment
Amount Possible Loan From Bank:(50%)
Amount Possible From SBA:(30%)
Liquid Capital Required:(20%)
$______.00
$______.00
$______.00
$______.00
A starting bank account of $__________.00 will be used, only if needed, for
unexpected costs associated with the working capital.
6
SOURCES Loan
&
Ow ner Dow n Payment
USES
Investor
Total Sources
$
$
$
$
85,298.35
14,823.00
100,121.35
$
$
$
$
$
$
$
$
21,250.00
68,500.00
8,550.00
1,551.00
1,500.00
4,000.00
105,351.00
$
$
$
$
$
5,000.00
100,351.00
USE OF FUNDS
Start-up Expenses
Pre-Revenue Salaries
Cash On Hand
Equipment
Soft Costs
Contingency
Initial Legal Fees
Insurance
Total Startup Expenses
Start-Up Assets
Starting Cash Balance
Property
Other Long-term Assets
Total Start-up Assets
Total Uses
Investor Needs
$__________
_____ will seek funding through private investors. We are anticipating a
positive return for our investors within a 3-5 year span.
Investor Proposition
The following investor proposition uses a number of variables to determine
a hypothetical share of the Company in exchange for investment. The
following scenario is up for negotiation and is dependent on operating
and valuation assumptions. The investor share is based on an investorrequired rate of return of 50% per year, and a Year 5 Company valuation
at 5 times EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization). It should be noted that the rate of return is dependent on
subjective measurements of risk and reward, and valuations are subject to
market conditions.
7
INVESTOR Investment
OUTLOOK Required Rate of Return
Value of Investment (Year 3)
Year 3 Earnings
EBITDA Multiple
Projected Company Value (Year 3)
Equity Sold
(Value of Investment/Value of Company)
$
$
98,821.00
50%
607,342.98
$ 1,214,685.95
3
$ 3,644,057.85
10%
A starting bank account of $_______.00 will be used, only if needed, for
unexpected costs associated with the working capital.
The Mission
The Tarzan Boat™ provides guests with an exciting and enjoyable aquatic
experience through the highest quality standards of safety. Each vessel
will focus on their individual entertainment aspects to all guests and
maintain the highest level of fun and use.
Objectives, Earnings, and Projections
______________ has definite objectives in order to fulfill its desire to
participate and achieve an ever-growing market share of the exciting
outdoor adventure industry. What follows is a brief summary of the key
objectives:







Penetrate the market in the business of providing opportunities for
our clients to fully enjoy their outdoor adventures on the Tarzan
Boat™,
Develop employee capabilities to ensure a strong foundation for
participation in a rapidly growing company.
Increase sales and revenue at a rate no less than 10 % per year.
Capitalize on excellent product opportunity.
Launch the venue with a highly publicized grand opening event in
________ 2015.
Maintain tight control of costs, operations, and cash flow through
diligent management and automated computer control.
Exceed $1 million in annual sales by the 3rd year of plan
implementation.
8
Total
Revenue Revenue From Tarzan Boat Ticket Sales
Year 1
$
676,530.91
Year 2
Year 3
$ 725,196.16
$ 739,700.08
Other Revenue
$
-
$
-
$
-
Other Revenue
$
-
$
-
$
-
Units
Number of Units
$
Other Units
$
Total Revenue
$
676,530.91
$
1.00
1,353.06
-
$
$
1,450.39
-
$
$
1,479.40
-
$ 725,196.16
$ 739,700.08
$
$
Unit Price
Aggregate Price Per Customer
1.00
1.00
9
PRODUCTS & SERVICES
“One boat - Six attractions”
Six water attractions make up the patented new sensation that is
designed for young and old swimmers and can operate in many climates
and waterways in most of the world.
We will have the opportunity to be the first to own a Tarzan Boat™ in our
area. We will offer adrenaline as both a “by the hour attraction”, and
private party services, a featured attraction for a resort, waterway,
marina, lake/river or behind a home.



Monkey Jump
Monkey Jump is the
shortest staircase leading
you to a 6-foot platform
allowing you to leap seven
feet to the water.
Monkey Bounce
Located on the same
staircase as Monkey Jump,
people can opt to jump on
the smaller trampoline that
ejects you out above the
water at heights of more
than eight feet.
Tarzan Swing & Jungle
Climb
From a 6-foot platform,
Tarzan Swing takes you on
a rope swing or switch out


for the military-grade poly
cargo net to climb and ring
the bell -- a challenge for
all!
Gorilla Jump
The high dive is Tarzan's tall
leap from a 12-foot
platform allowing you to fall
with no restraints out into
the wind onto a full 14-foot
drop to the water.
Gorilla Bounce
Who ever thought you
might be leaping from a
12-foot platform down to
an Olympic-grade
trampoline launching you
as high as 20 feet above
the water surface? Don't
forget your Tarzan yell!
10

Jungle Slide
Starting from the 12-foot
platform, join your fellow
monkeys one-by-one into
the slide and jet down the
slide to be ultimately
thrown across the water!
There Are 2 Ways to Earn Revenue with Tarzan Boat™
1 – Promoting Private Parties
Tarzan Boat™ can be used to promote private parties such as Birthday
parties, adult parties, graduation parties, sports parties and
fundraisers....the list goes on and on.
Parties can scheduled back-to-back, and conducted all day near a
public accessible well-known entrance to the water with ample parking.
Schedule them in advance and take payment in advance. The Tarzan
Boat™ will never be turned over completely to a renter (such as jet-ski or
pontoon rental). To maintain an excellent safety record, Tarzan Boat™
needs excellent supervision at all times.
30 Tarzan Boat™ invitations (provided in a media kit), will be provided to
every renter in advance of their party. Not only will people be thrilled to
get the invitation, but the clients are helping with advertising by sending
them all around. All of the people attending the party are sure to book
Tarzan Boat™ when they have their special occasions.
Sales can be boosted by having add-ons such as food, drinks or even a
photographer taking action shots and selling them.
11
2 – By the Hour
With Tarzan Boat™ parked at a visible location, it won't take long for
people to gather. Traffic stops, people take photos and more
importantly, people want “on the boat”.
Tarzan Boat™ will have a staff member ready to sell tickets at an
affordable price. The object is to price the adventure at a rate that
attracts customers for one hour, yet affordable enough so the customer
will want to add an additional hour to their stay.
After they purchase, their leg is stamped with the hour they need to get
off the boat and they swim out to the boat which is anchored at the safe
depth and on watch by one or two lifeguards.
As the new swimmers board, they play among the other swimmers with
other markings that signal their time to depart the boat. The lifeguards
welcome new swimmers and brief on the rules and people enjoy the six
attractions that entertain them and wear them out with fun!
This is an all-day rotation with people waiting on shore, buying tickets,
swimming out and keeping 40 people every hour on the boat for a 10 or
11 hour day...combined with
food
sales,
drink
sales,
12
merchandise and action photos...it makes for a very profitable day. And
they will be back for more!
13
MARKET ANALYSIS
Market Research and Evaluation
__________________ has captured good information regarding their market
and knows a great deal about the common attributes of the most prized
customers. Our team has leveraged this information to better understand
who should be served, their specific needs, and how Tarzan Boat™ can
attract and keep its share of the marketplace. The profile for Tarzan
Boat™ users consists of the following geographic, demographic, and
behavior factors:
Geographic:


The immediate geographic target is the city of _____________, with a
population of _____________.
The total targeted population within 2.4 miles is estimated to be
__________.
Market Demographic:
To Be Added based on location…
Behavior Factors:





Tarzan Boat™ users have participated in outdoor adventures.
Tarzan Boat™ users enjoy swimming.
Tarzan Boat™ users have children and host parties for their children.
Tarzan Boat™ users travel to resorts.
Tarzan Boat™ users travel to beaches.
Market Attractiveness:




Selection: Avery Designs, Inc has made Tarzan Boat™ accessible
worldwide and has 6 different vehicles to choose from.
Accessibility: The central location and wide range of products
available is designed to accommodate all customer needs.
Customer service: The patron will be impressed with the degree of
care that they receive.
Competitive pricing: while this is the only product of its kind, its
pricing strategy was designed to keep cost low enough for the
average entrepreneur to purchase, use and make a profit from day
one.
14
Our Tarzan Boat™ name will become the source of "critical mass" upon
which expansion efforts are based. Not only does it add marketing muscle
but it also becomes the framework for further expansion by providing
more varieties of vehicles in the future.
Target Market
In General, the target market will depend on usage by the potential
purchaser.
To ensure success, however, the establishment will need to appeal to a
wider market sector and attempt to attract customers throughout the
day.
Age - Seniors, Baby-Boomers, young married couples with children, and
blue-collar workers of all ages.
Family Unit - We will appeal to young families with new babies or mature
families with children under the driving age. Most of our family units will
have two wage earners.
Gender - We will equally target both sexes.
Income - We will appeal to the high side of low-income individuals and to
all in the middle income bracket.
Occupation - We will target the blue-collar worker, young professionals
with a family, and most of mid-America.
Education - All education levels.
Industry Trends
A water park is an amusement park featuring water play areas in various
pools of flowing or static water with various slides, tubes, splash pads,
spray grounds, lazy rivers, or casual bathing, swimming, and bare-footing
environments. Water parks more currently are equipped with surfing flowriders, wave pools, or funnel bowls which increase thrill rides and skill levels.
Today there are more than 1,000 water parks in the United States. The first
outdoor water park credit goes to George Millay who built the Wet N Wild
in Orlando in 1977. The first indoor water park is credited to the Polynesian
Resort Hotel and Suites at the Wisconsin Dells in 1989. The indoor park was
so successful that today the Wisconsin Dells has the highest concentration
of indoor water parks in the world, eighteen.
15
From the beginning of this recreation boom, innovation in water rides has
continually changed water park landscapes to maintain and increase
their popularity. Every conceivable motion is explored including wave
pools, 120 foot tower slides, leisure rivers, raft rides, coaster slides, funnel
bowls, and numerous enclosed twisters and slides.
The phenomenon has caught on worldwide with the fastest growing
regions occurring in the Far East and Eastern Europe. But the U.S.
continues to build water parks, many being smaller facilities for hotels,
motels, and municipal parks, but also for major regional theme parks.
Even campgrounds, ski resorts, and cruise ships are cashing in on this
popular family entertainment. The attraction is obvious with attendance
at the leading parks such as Typhoon Lagoon and Blizzard Beach in
Disney World totaling 3,692,000 visits in one season. At an average per visit
gross of $40, the amount of revenue created quickly translates into a
profitable investment. And water parks nested into major theme parks
and destination resorts offer greater returns as they can typically create
the most stable visitation rate over a twelve month period.
The market that makes these water theme parks feasible totals $119.8
million amusement park visits in the U.S. This is twice as much as Europe
and ten times greater than Latin America and twice as much as Asia and
the Pacific Rim. The top fifteen water parks in the US captured 11.8 million
visitors in 2006, an increase of 2.5% over the previous year. Increased
growth also comes from water park enhancements to increase the quality
of a guest experience. This includes more attractive settings and multiple
conveniences including quality restaurants, relaxation zones, retail zones,
ride education for surfers, and group activities including slide races.
For a resort, water parks also extend the length of an operating day as
well as the overall length of stay. And with the subject, nestled among
the world’s top theme park attractions, with a family oriented water park,
the potential for high occupancy may increase by as much as 20%.
This is at least proven true for indoor water park resorts with a 28% higher
occupancy and $69 ADR higher than non-water park rates. And the age
range appeal is especially broad with water parks, when spas and
hydrotherapy are included with non-physically demanding rides such as
lazy rivers.
Another key to the success of the water park is its safety and security
appeal. In a tourist world plagued with fears of terrorism, hostage taking,
and kidnapping, a safe and secure place to take a family, readily
appears as an appealing prospect for a family vacation. And the water
park
industry
has
an
excellent safety record. Safe
16
clean water in a well protected environment for children and adults of all
ages well supervised by lifeguards and attendants are hallmarks of water
park advertising and their track records. And park design has become
sophisticated in design flexibility with computer controls, corrosion free
materials, and efficient recovery and use of recycled water, geothermal
heating, solar heating, secondary recycling, and efficient water valve
and filter systems.
Water parks are more than a fad in the entertainment and amusement
industry. Water parks are lifestyle properties that come under the
influence of the single largest and most dominant demographic group in
the United States. According the US Census in 2006 there were more than
68 million Americans over age 55. That number will double with aging
baby boomers by 2035. With more discretionary income going to family
activity at home and away from home, the entertainment of children and
grandchildren are a big ticket item. It is a billion dollar industry that will
remain for some time in an economically viable setting.
Indeed, in the year 2006 there were 335 million water park visitors creating
total revenue of 11.5 billion dollars, with an average revenue per
attendee of $34.33. (Source IAAPA).
The Water Parks industry has made a big splash during the past five years.
After a recession-induced slip in 2009 when revenue fell 5.8%, the industry
has made an impressive and sustained recovery. “Driven by encouraging
growth in both domestic and international tourist numbers, the industry
has grown at a faster rate than the overall economy since the recession,”
according to IBIS World industry analyst Andy Brennan.
Increased consumer spending, which is estimated to rise 1.3% per year on
average during the five years to 2013, has also played into the industry's
growth as consumers have splurged on discretionary items like water park
tickets. In the five years to 2013, industry revenue is expected to grow an
annualized 2.5%, including impressive growth of 5.7% in 2013, reaching
$4.3 billion.
The Water Park industry's biggest parks are owned and operated by
global players such as SeaWorld Entertainment Inc. and The Walt Disney
Company. According to the Themed Entertainment Association, the top
20 water parks in the United States recorded attendance of 15.4 million
people in 2012, up 2.2% from 2011. “These destination parks attract visitors
from out-of-state and overseas who sometimes make the trip for the
specific purpose of visiting a water park,” says Brennan.
17
Disney and SeaWorld's parks alone attract more than 5.0 million visitors
each year. Outside of these major operators, the industry consists of a
wide range of local water parks run by local municipalities and
independent firms. These smaller water parks serve the local area and
tend to be less profitable than major parks due to their limited economies
of scale.
The Water Parks industry exhibits a moderate level of market share
concentration. Large-scale water parks are able to attract a significant
number of visitors because of the variety of activities they provide
alongside their water parks. While there are more than 550 enterprises
operating in this industry in 2013, the majority of these water parks are
small regional locations that serve local markets. Major players include
SeaWorld Parks & Entertainment, The Walt Disney Company, Universal
Parks & Resorts and Six Flags Inc.
The Water Parks industry's recent growth is set to continue during the next
five years. Growing consumer confidence in the United States, which will
boost discretionary spending, will help the domestic tourism sector.
Additionally, the number of international tourists visiting the United States is
expected to grow during the three years to 2018. In an increasingly
saturated market, water park operators will try to bring in revenue yearround through indoor attractions and winter shows, decreasing the
reliance on the peak summer period. IBIS World expects industry revenue
to rise during the three years to 2018.
Pricing Strategy
With ________________________ being a new business, we will adopt a
competitive pricing strategy. The success of this business will depend on
how our prices are to the other business establishment in this industry,
along with the quality of the products we offer.
Operating a profitable mobile water park requires the ability to accurately
price your services. _______________ has decided to use the following
pricing formula to cover expenses while earning a profit:
Materials + Overhead + Labor + Profit = Price (Lastovica, Roberts, &
Brochetti, 1999).
Establishing a price for services is not easy. The manufacturer of Tarzan
Boat™ recommends one price point for private events, and another price
point for “by the hour”. We have considered three pricing choices:
18



Charge the same as competitors
Charge more than competitors
Charge less than competitors
Our base pricing point for a private event will be $400 - $450 for a 2-hour
party to include a certified lifeguard to watch over everyone. However,
we may choose a price point of as much as $_______ for a 2-hr party.
Our base pricing point for by the Hour will be $10/hr. However, we may
choose a price point that may be as high as $15/hr.
Marketing Strategy
A variety of promotional strategies will be implemented to achieve a high
clientele for Tarzan Boat™. A marketing package that will consist of
brochures that will go out in the Primary Market Area order to established
connections with local and regional beach goers, as well as national and
international resort and hotel visitors.
At some point we will hit critical mass. Then word will spread about our
regular location or we can send a tweet about our new locations.
Our marketing and sales strategy will focus using advertisements that will
cause awareness of our business. Using mostly word-of-mouth from our
existent customer is very critical to our business succeeding in the future in
gaining new clientele. The market objective is:




To increase awareness of the business
Contact and establish new customers, by continuing to provide
quality services to the existing ones
Establish competitive pricing polices to attract new customers
Utilize all source of advertisement
Our Marketing Methods
Distribution




Mailings-U.S. Postal Services
Radio and television advertising
Word-of-mouth
Flyers/Postcards/brochures
Promotion
19






Public Service Announcement
Flyers/brochures
Word-of-mouth
Radio and television commercials
Telemarketing
Contests
20
COMPETITION
Our major competition comes from ___________________, they have been
in business for over ___ years.
How large are they compared to your business?
 Sales (in dollars)
 Number of employees
 Number of locations
 Number of customers
What I’ve learned from their operations?
Describe what you know of your competitors.
Their Strengths





They been I business for a while
They have built up clientele
Management is strong
The products in which they sell is up to date
The quality of service is good
Their Weaknesses (You should list as many of their weaknesses as you can)


They do not meet all the needs of the customers in the area
They only sell…you should add more here if you can.
My products differ from them in the following ways:
Describe what makes your product, service or organization different.
Our organization believes that competing in the water park industry is
enhanced and amplified through:



Constant and mindful attention to customer service. This requires
the continuous, sometimes arduous, task of updating and
educating oneself on industry developments and evolving
techniques:
The ongoing maintenance of our Tarzan Boat™.
Strategic
contacts
and relationships in the
21


community to ensure a broad understanding of the market and the
ability to penetrate and utilize the industry to our benefit;
Strong and knowledgeable business management to maximize the
potential and profitability of each future planned location.
Continuous application of accurate accountability of all
components to ensure as much as possible the successful rendering
of services to the satisfaction of each customer.
The goal is to succeed by providing customers with a combination of
great prices and pleasant atmosphere to attract all age groups.
22
OPERATIONS PLAN & FACILITY
Operations
Describe how the program or service will be run; describe how customers
will receive service, describe how your business will operate on a day-today basis.
Location
What are your local characteristics, notable features, what will make you
survive significant demographic shifts.
We need a complete address so we can do a demographic. Even if you
have not secured the location, we still need an address near where you
want to be. The location will be opened as a turnkey facility with a
showroom at a lease rate of $_______ per month.
2. How does the location affect your business in relation to: proximity to
markets; proximity to supplies of raw materials, labor, and capital?
3. What major changes do you anticipate in your location in the near
future regarding: renovation costs, additional replacement facilities,
moving to a different location?
Physical Facility
Our facility will have over ____ square feet, and ample parking for
customer and employee vehicle access and/or entry and loading. The
facility will have the appropriate amount of storage space for our office
supplies, inventory, and our miscellaneous products.
Our facility will be fully equipped with electricity, heat, air conditioning,
venting, and water waste disposal. Our facility is in compliance with
federal, state and local laws and codes.
Layout and Flow Plan
23
Research and development started from the bottom: the floating deck.
In order to design a water park with trampolines, high jumps, a slide and
rope swing ...the deck had to provide the ultimate stability, while staying
close to water level and offering the strength and capability of the nuts
and bolts of the rest of the boat: the fun. Engineers could not use a
traditional barge, boat hull or pontoons, so a state-of-the art floating
combination of them all was developed.
Multiple slides were considered, trampolines on each sides of the boat
and also a single tier spiral staircase were portions of early concepts.
We expect little kids, teenagers and adults to be drawn to Tarzan Boat™
for an experience to share with everyone. So this is not child's play: it is
adrenaline. Make it exciting.
Tarzan Boat™ had to be designed so you didn't want to leave.
Aluminum By Design
24
When you look closely at the customized aluminum "puddles", the fluid
staircases, the span of the rope swing and the trajectory of the
trampolines, it doesn't take an adrenaline junkie to realize the precision of
Tarzan Boat.
The high platform gives the diver a 14-foot jump to the water and a skilled
bounced can get you that kind of air when you try "Gorilla Bounce", the
boat's high trampoline attraction. The boat is also designed to be self
contained so it can safely close down and head to the nearby marina for
safe storage.
Safety Planning
Making Tarzan Boat™ safe but practical as a business was a big goal.
What if you are in shallow water? We don't want a deep hull — so if the
water only sinks 12" in the
water they could pull right up
25
to a beach or shallow area to pick up customers.
It was tempting to put too much on the boat, but lifeguard visibility was
crucial from the mid platform, you can see everything. So, then we
established the tight lifeguard rules for safe use. Weight capacity was
over-engineered, but ultimately safe since it holds 16 tons.
The Finished Product
Now we have a product. For the owner, there is no labor of setting up.
There is no inflating, lifting, breaking down and very little cleaning. Just
move the boat from the dock into deeper water and throw out the
anchor and you are ready.
No operation cost on the boat except for the small amount of gas from
your outboard engine. One marine battery is dedicated for the engine,
while another marine battery serves the water pump for the water slide,
the depth meter and the Bluetooth® ready music system.
Strong, fun, capable, safe... Tarzan Boat™ was born.
26
SALES STRATEGY
A sales strategy is very important. It is the final point between a decision
to purchase our products and a decision not to purchase. Some times
the decision is purely base on the product itself, but more often than not,
it is decided by the experience the customer has with the seller. In that
means good training for our employees and an incentive based pay
scale.
My sales strategy will coincide with my marketing strategy. My associates
will be compensated along with giving quarterly bonuses not only to the
management team for making or exceeding the sales forecasts but to the
hourly employees as well. Too often the workers are forgotten. I will do a
yearly bonus for the management staff, but quarterly for the supportive
team members.
When training meets a good pay rate, you create an atmosphere that is
conducive to increased sales. On that note, we intend to train all staff
members in house on running a safe mobile water park.
If we find there may be some training that can be outsourced to Tarzan
Boat’s administrative offices we will enlist that source as well. As for pay,
we will always have an incentive based pay rate. Research has shown
that the happier the employee, the more they will appreciate the
consumer. An educated happy consumer is always what we are looking
for.
Our staff members will be experienced and attend in-house training on an
on going basis. They are given merit reviews based on customer feed
back that we receive through customer surveys that we ask our customers
to fill out.
27
MANAGEMENT & STAFFING
Ownership Plan
This section should include the personal history of the principals, related
work experience, duties and responsibilities, salaries, organizational chart,
resources available to the business, and a list of the Board of Directors. All
principals owning 10% or more of the company should be listed. We highly
recommend that a resume for each principal is included as well.
Personnel Plan
You need to list out all of the positions that you may have available, and
the duties that they may have.
Personnel Count
No. of Managers
No. of Life Guards
No. of Admin/Other Staff
Total Staff Members
1
2
2
5
Personnel Wage
Managers
Life Guards
Admin/Other Staff
$30,000.00
$20000.00
$35,000.00
Personnel Costs
Managers
Life Guards
Admin/Other Staff
Total Payroll
$30,000.00
$20000.00
$35,000.00
$85,000.00
The objective is to hire a team that is representative of all ethnic, age and
gender target groups. The company expects to invest in a good team by
fairly compensating staff members in accordance with local average
wage base for the industry.
28
The following team building strategies will be invaluable to great customer
service:
 Never compare employees
 Never rank employees
 Conduct team meetings and ongoing training
 Ensure everyone is kept abreast of current _____________’ trends and
expectations
 Open and fair communications
 Fair compensation based on the market and to make the
workplace enjoyable.
Training




What training is required?
Who will provide training?
What training time is required?
Is training required before the business opens, on the job, or both?
Professional Personnel Plan




Lawyer –
Accountant (CPA) –
Trade associations –
Consultants (marketing, advertising, etc.) –
29
IMPORTANT ASSUMPTIONS
The financial plan depends on important assumptions, most of which are
shown in the following table as annual figures. The key underlying
assumptions are:
1.
2.
3.
4.
We assume the Tarzan Boat™ is in good working order.
We assume this will happen in the next three to six months.
We assume a slow-growth economy, without major recession.
We assume that there are no unforeseen changes in the
expectancy in the popularity of our candidates.
5. We assume access to investments and financing are sufficient to
maintain and fulfill our financial plan as shown in the tables.
30
STARTUP COSTS
Startup Costs
Tarzan Boat
Point of sale equipment
Merchant Services
Online Marketing
Office Equipment
Décor
Security System installation
Total
$63,700.00
$600.00
$200.00
$1,000.00
$2,000.00
$1,000.00
$250.00
$69,050.00
Soft Costs
Initial Legal Fees
Insurance
3 Months of Fuel
3 Months of Boat Slip Fees
Brochures
3 Months of Advertising
Phones
Security System
Utilities
3 Months Salary
Contingency rate for errors 2%
Total
$1,500.00
$4,000.00
$300.00
$1,200.00
$1,000.00
$300.00
$300.00
40.00
$200.00
$21,250.00
$1,521.00
$100,351.00
Sources of Supply
List where you will buy your startup needs.
31
GROWTH & EXIT STRATEGY
It is the intent to build the corporation to where it can be self sustaining
after the fifth year. In the event, the business is not successful it is
imperative that the ownership develop an exit strategy. The exit strategy
would be to sell the business as a going concern and repay the
outstanding debt owed to the lender.
The owner has a stake in the success of _____________ and has committed
to invest personal cash, time and personal property to assist in the success
of the organization. In addition, his skills and outside income source will
provide for another source of debt repayment.
32
FINANCIAL NARRATIVE
_____________ recognizes that the most important financial indicators are
cash and bottom line. We will be constantly monitoring the flow of
revenue to the company as well as the expense requirements that
deplete the company of its cash. We will always try to improve the ratio
of revenue and expenses to generate a healthier bottom line in addition
to a more healthy cash base.
SALES FORECAST
Assumptions are based on average revenue of $10.00 per hr per patron,
and over 40 patrons per hr, 3-days per week. This chart also reflects a
average of 2 private events per day 5 days per week at $450 per event.
This is a conservative estimate and the business is expected to outperform
the projections within the first eight months of operations.
The company projects net operational income before debt service of
$382,708.00 for the first year of operations. Estimated annual debt service
of $11,754.00 (Principle $6,185 & Interest $5,569) and can adequately be
supported by net income from operations by32.6xs. Our net income after
debt of service is $381,681.00.
REVENUE
FORECAST Revenue
Year 1
Year 2
Year 3
Pay By Hour
$ 676,530.91
$ 725,196.16
$ 739,700.08
Pay by Event
$ 33,000.00
$ 35,000.00
$ 37,000.00
Total Revenue
$ 709,530.91
$ 760,196.16
$ 776,700.08
Advertising (CPM)
$ 13,293.83
$ 14,250.10
$ 14,535.11
Cost of Sales
$ 50,739.82
$ 54,389.71
$ 55,477.51
Subtotal Cost of Revenue
$ 64,033.65
$ 68,639.82
$ 70,012.61
Other Direct Costs
$
$
$
Total Directs Costs
$ 128,067.30
$ 137,279.63
$ 140,025.22
Gross Margin
$ 185,758.72
$ 233,094.33
$ 264,747.31
Direct Cost of Revenue
Gross Margin %
-
26%
-
31%
-
34%
33
EXPLANATION OF BREAK-EVEN ANALYSIS
The break-even analysis for our company calculates at what point the
company becomes profitable, and also at what point the company will
be operating at a loss. The analysis takes into consideration forecasted
revenues as well as regular running fixed costs and average per unit sales
price also know as per unit revenue. For simplicity the average per unit
sales price is adjusted to $1 and the regular running fixed cost are
represented as a percentage of that dollar. The purpose of this analysis is
to maintain insight on financial realities. This information is vital for all kinds
of things, from deciding how to price your products or service to figuring
whether a marketing program is worth the investment.
The Break even analysis depends on the following:




Fixed Cost (FC):
The sum of all costs required to produce the first unit of a product or
service. This amount does not vary as production increases or
decreases, until new capital expenditures are needed.
Variable Unit Cost (VC):
Costs that vary directly with the production of one additional unit of
product or service.
Expected Unit Sales (US):
Number of units of the product or service projected to be sold over
a specific period of time.
Selling Price (SP): This is the price that each unit of product or service
will sell or retail for. The SP is generally expressed as revenue in
dollars per unit.
Based on (FC) + (VC) X (US) = (SP), our break even sales amount is:
$160,000.00
34
EXPLAINED PROJECTED PROFIT AND LOSS
Our sales are forecasted to be increasing on a regular basis. Gross margin
is also expected to increase on a regular basis. Breaking down our profit
and loss projections and monitoring them on a regular basis is essential to
the foundation of our company.
35
ProFORMA
PROFIT & LOSS Revenue
Year 1
Year 2
Year 3
$ 676,530.91
$ 725,196.16
$ 739,700.08
Total Cost of Revenue
$ 50,739.82
$
$
Gross Margin
$ 510,124.08
$ 547,483.64
Gross Margin/Revenue
75%
54,389.71
55,477.51
$ 559,275.33
75%
76%
Expenses
Labor
Employee bonus
93,895
100,212
$ 101,662.32
-
-
$
21,772
23,111
$
23,284.93
Advertising - Pay Per Click
6,529
6,998
$
7,138.11
Advertising - in state
6,765
7,252
$
7,397.00
Payroll related costs
Advertising - coupons
-
-
-
$
3,499
3,692
$
3,692.31
Operating services
11,450
12,083
$
12,083.14
Other costs
19,189
20,531
$
20,893.99
Telephone expense
2,101
2,217
$
2,217.09
N/A
6,765
7,252
$
7,397.00
N/A
6,765
7,252
$
7,397.00
Miscelleneous
-
-
$
-
Web Ads
525
554
$
554.27
Insurance - proprty & liab.
Repairs and maintenance
-
2,626
2,771
$
2,771.36
10,148
10,878
$
11,095.50
Utilities
1,050
1,109
$
1,108.55
Professional fees
4,458
4,458
$
4,458.00
19,586
20,994
$
21,414.32
6,765
7,252
$
7,397.00
-
-
$
8,468
9,238
$
Total Operating Expenses
232,357
302,245
$ 306,677.27
Profit Before Interest & Taxes
$ 393,433.77
$ 422,951.29
$ 433,022.81
Interest Expense
$ (5,568.63) $
Net Profit
$ 381,680.60
Operating supplies
Investor return
Promotional proposals
N/A
Rent and CAM charges
Net Profit/Revenue
56%
(5,138.01) $
$ 411,198.12
57%
9,237.88
(4,677.41)
$ 421,269.64
57%
EXPLAINED PROJECTED CASH FLOW
As was said earlier, we at _____________ on focus our attention on bottom
line and cash. Our projected cash flow is very positive because with
forecasted increasing revenues and controls on overhead and expenses
we look to see an increasing bottom line as well as increasing cash.
36
Financial
Highlights Revenue
Year 1
Year 2
Year 3
$ 676,530.91
$ 725,196.16
$ 739,700.08
Gross Margin
$ 510,124.08
$ 547,483.64
$ 559,275.33
Operating Expenses
$ 283,097.14
$ 302,244.87
$ 306,677.27
EBITDA*
$ 393,433.77
$ 422,951.29
$ 433,022.81
Net Profit
$ 381,680.60
$ 411,198.12
$ 421,269.64
Profitability Ratios
Gross Margin/Revenue
75%
75%
76%
EBITDA/Revenue
58%
58%
59%
Net Profit/Revenue
56%
57%
57%
Debt Ratios
Debt Ratio (Total Debt/Total Assets
3347%
3599%
3684%
Interest Coverage Ratio
N/A
N/A
N/A
Debt Service Coverage Ratio
N/A
N/A
N/A
Net Cash Flow
$ 381,680.60
$ 411,198.12
$ 421,269.64
Cash Balance - Ending
$ 382,708.48
$ 412,656.61
$ 423,188.73
BUSINESS RATIOS
Equipped with income figures, a balance sheet, and a cash flow
statement we can present a complete financial picture of _____________.
To clarify and spotlight our financials we present the following ratios and
illustrate an accurate picture with all things having been considered.
Put your personal assets and liabilities in the spaces. This is based on
personal numbers even if this is for a startup company.
The first ratio is the current ratio = total assets $_____________.00 divided by
current liabilities $___________.00. Our CURRENT RATIO is to be determined.
The second ratio is the quick ratio = (liquid personal or cash + investments
+ receivables) $___________.00, divided by current liabilities $__________.00.
Our QUICK RATIO is to be determined.
Our net profit margin = net profit of $381,681.00 divided by gross revenue
on sales of $676,531.00. Our NET PROFIT MARGIN RATIO is 56%.
Our return on investment = net profit $381,681.00 divided by the
investment of $100,351.00. Our RETURN ON INVESTMENT RATIO or ROI is
3.80xs.
37
SUMMARY INCOME STATEMENT
ONE
TWO
THREE
Number of weeks open
45.5
48.0
48.0
In the first year of operation the system calculates as close to an exact number of operating weeks as possible and will not return exactly 52 weeks.
Total sales
Cost of purchases
Cost of marketing materials
Total cost of sales
Salaries and wages
Employee bonus
Payroll related costs
Advertising -out of state
Advertising - in state
Advertising - coupons
Insurance - proprty & liab.
Operating services
Other costs
Telephone expense
Charitable contributions
Promotional Services
$
n/a
Uniform services
Repairs and maintenance
Operating supplies
Utilities
Professional fees
Investor
N/A
Percentage rent
Rent and CAM charges
Total expenses
Operating income
Interest expense
Depreciation & amortization
Net income before taxes
Net income before taxes
Plus depreciation & amort.
Less principal payments
Net cash flow before taxes
$
$
$
676,531
33,827
16,913
50,740
93,895
21,772
6,529
6,765
3,499
11,450
19,189
2,101
6,765
6,765
100.0%
5.0%
2.5%
7.5%
13.9%
0.0%
3.2%
1.0%
1.0%
0.0%
0.5%
1.7%
2.8%
0.3%
1.0%
1.0%
525
2,626
10,148
1,050
4,458
19,586
6,765
8,468
283,097
393,434
(5,569)
(5,157)
382,708
0.0%
0.1%
0.4%
1.5%
0.2%
0.7%
2.9%
1.0%
0.0%
1.3%
41.8%
58.2%
-0.8%
-0.8%
56.6%
382,708
5,157
(6,185)
381,681
56.6%
0.8%
-0.9%
56.4%
$
$
$
$
725,196
36,260
18,130
54,390
100,212
23,111
6,998
7,252
3,692
12,083
20,531
2,217
7,252
7,252
100.0%
5.0%
2.5%
7.5%
13.8%
0.0%
3.2%
1.0%
1.0%
0.0%
0.5%
1.7%
2.8%
0.3%
1.0%
1.0%
$ 739,700
36,985
18,493
55,478
101,662
23,285
7,138
7,397
3,692
12,083
20,894
2,217
7,397
7,397
100.0%
5.0%
2.5%
7.5%
13.7%
0.0%
3.1%
1.0%
1.0%
0.0%
0.5%
1.6%
2.8%
0.3%
1.0%
1.0%
554
2,771
10,878
1,109
4,458
20,994
7,252
9,238
302,245
422,951
(5,138)
(5,157)
412,657
0.0%
0.1%
0.4%
1.5%
0.2%
0.6%
2.9%
1.0%
0.0%
1.3%
41.7%
58.3%
-0.7%
-0.7%
56.9%
554
2,771
11,096
1,109
4,458
21,414
7,397
9,238
306,677
433,023
(4,677)
(5,157)
$ 423,189
0.0%
0.1%
0.4%
1.5%
0.1%
0.6%
2.9%
1.0%
0.0%
1.2%
41.5%
58.5%
-0.6%
-0.7%
57.2%
412,657
5,157
(6,615)
411,198
56.9%
0.7%
-0.9%
56.7%
$ 423,189
5,157
(7,076)
$ 421,270
57.2%
0.7%
-1.0%
57.0%
EXPLAINED PROJECTED BALANCE SHEET
The projected balance sheet for _____________ highlights total assets, total
liabilities, as well as capital. With projected cash flow already established
our balance sheet exemplifies a company whose revenues are increasing
as well as its bottom line in cash. The leadership of our company offers our
financials as proof positive of the workings of our business plan.
38
BALANCE
SHEET Assets
Year 1
$
Year 2
5,000.00
Current Assets
$
Revenue/Cash
$ 676,530.91
-
Other Current Assets
Total Current Assets
$
$
$
Year 3
398,590.44
-
$
725,196.16
0%
$
428,107.96
-
$
739,700.08
0%
0%
$ 681,530.91
$ 1,123,786.59
$
1,167,808.03
393,434
422,951
$
433,022.81
5,157
5,157
$
5,156.67
398,590
428,108
$
438,179.48
283,097
302,245
3,499
3,692
$
3,692.31
Operating services
11,450
12,083
$
12,083.14
Other costs
19,189
20,531
$
20,893.99
2,101
2,217
$
2,217.09
6,765
7,252
$
7,397.00
6,765
7,252
$
7,397.00
-
-
$
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Cost of Business Liabilities
Insurance - proprty & liab.
Telephone expense
Miscelleneous
Tires
Repairs and maintenance
Operating supplies
306,677
-
525
554
$
554.27
2,626
2,771
$
2,771.36
10,148
10,878
$
11,095.50
Utilities
1,050
1,109
$
1,108.55
Professional fees
4,458
4,458
$
4,458.00
Investor return
19,586
20,994
$
21,414.32
371,260
824,145
$
839,939.28
Total Liabilities and Capital
3 YEAR PRO FORMA / CASH PROJECTIONS
Please see attached Excel spreadsheets. Call us immediately with any
questions or concerns.
39