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Northwind Traders Sample Business Plan 1
&ntro!uction to the Sample Plan
The following document is a sample of a finished business plan. In your final plan, you have the
opportunity to elaborate on those ideas in your outline that you feel are most integral to your
business. In composing your business plan, you can follow your outline as loosely or closely as
you choose. or instance, in the sample plan, the !"ecutive Summary, which is the last section of
the Business Planning #i$ard, is presented first in order to emphasi$e the most impressive
features of the business. %our goal in composing a finished business plan is to construct the most
comprehensive, thorough document possible, in order to attract investors and to confirm that you
have ta&en the time to e"plore as many potential issues for your business as may arise.
Northwind Traders Sample Business Plan '
Northwind Traders Sample Business Plan (
Tale of Contents
EXECUTIVE SUMMARY.................................................................................................................................................1
DESCRIPTION OF THE COMPANY............................................................................................................................... 1
MISSION STATEMENT............................................................................................................................................... 1
PRODUCTS AND SERVICES......................................................................................................................................... 1
FINANCIAL FORECAST.............................................................................................................................................. 2
FINANCING REQUIREMENTS...................................................................................................................................... 2
HISTORY AND POSITION TO DATE............................................................................................................................4
THE COMPANYS MISSION........................................................................................................................................ 4
MANAGEMENT TEAM AND KEY PERSONNEL.............................................................................................................. 4
SERVICES................................................................................................................................................................. 6
TRANSPORTATION.................................................................................................................................................... 7
COMPANY HISTORY.................................................................................................................................................. 7
GUARANTEES AND WARRANTIES............................................................................................................................... 8
USINESS STRUCTURE.............................................................................................................................................. 8
MARKET RESEARCH......................................................................................................................................................8
ECONOMIC AND SOCIAL FACTORS............................................................................................................................. !
COMPETITIVE ENVIRONMENT.................................................................................................................................... !
LONG"TERM OPPORTUNITIES.................................................................................................................................... !
GEOGRAPHIC AREA................................................................................................................................................ 1#
MARKET DESCRIPTION........................................................................................................................................... 1#
TARGET CUSTOMERS.............................................................................................................................................. 1#
MARKET DEFINITION.............................................................................................................................................. 1#
MARKET OPPORTUNITIES........................................................................................................................................ 11
COMPETITIVE ANALYSIS......................................................................................................................................... 12
COMPETITIVE ADVANTAGES................................................................................................................................... 1$
COMPETITORS POSITIONS...................................................................................................................................... 14
POTENTIAL FUTURE COMPETITION.......................................................................................................................... 14
BUSINESS STRATEGY...................................................................................................................................................15
CUSTOMER INCENTIVES.......................................................................................................................................... 1%
ADVERTISING AND PROMOTION.............................................................................................................................. 1%
SALES AND MARKETING......................................................................................................................................... 16
COMMISSION.......................................................................................................................................................... 17
OPERATIONS...................................................................................................................................................................17
PREMISES............................................................................................................................................................... 17
CHOICE OF LOCATION AND PREMISES..................................................................................................................... 17
Northwind Traders Sample Business Plan )
HOURS OF OPERATION............................................................................................................................................ 17
EQUIPMENT............................................................................................................................................................ 18
STAFFING............................................................................................................................................................... 18
FORECASTING................................................................................................................................................................18
SALES FORECAST.................................................................................................................................................... 18
CASH FLOW PRO&ECTIONS...................................................................................................................................... 2#
INCOME STATEMENT.............................................................................................................................................. 2#
ALANCE SHEET.................................................................................................................................................... 21
PERFORMANCE RATIOS........................................................................................................................................... 21
REAK"EVEN.......................................................................................................................................................... 21
FUNDS REQUIRED AND TIMING............................................................................................................................... 21
FUNDING OPTIONS.................................................................................................................................................. 22
BUSINESS CONTROLS...................................................................................................................................................23
ACCOUNTING SYSTEM............................................................................................................................................ 2$
QUALITY CONTROL................................................................................................................................................ 2$
NEW TOUR OPERATORS.......................................................................................................................................... 2$
CAPACITY.............................................................................................................................................................. 2$
LONG"TERM GOALS............................................................................................................................................... 24
STEPS FOR ACHIEVING GOALS................................................................................................................................ 24
POSITION................................................................................................................................................................ 2%
RISKS ASSOCIATED WITH GROWTH......................................................................................................................... 2%
APPENDIX 1 MARKET RESEARCH..........................................................................................................................2!
APPENDIX 2 FINANCIAL FORECASTS....................................................................................................................35
Northwind Traders Sample Business Plan *
E'ECUT&(E SUMM)R*
+escription of the Company
Northwind Traders, Inc. provides travel+planning services for !uropean adventure vacations to
residents of the ,reater Seattle area. The service industry, including travel agencies, is one of the
fastest growing business sectors of the economy, and Northwind Traders intends to capitali$e on
the success of this industry by ta&ing advantage of travel planning opportunities in the Pacific
Northwest.
President -eather .itchell and /ice President of Sales and .ar&eting 0im 1im currently hold the
company2s stoc&. Prior to starting the Northwind Traders travel agency, .s. .itchell cofounded,
co+owned, and operated the Northwind Traders clothing store. She has selected a small team with
e"tensive travel, sales, and computer s&ills, all of whom will be invaluable to the new venture. -er
cowor&ers bring a combined total of () years of travel industry e"perience to the agency.
Mission Statement
The mission of Northwind Traders is to become the premier provider of adventure vacations for
')+ to ()+year+old professionals. Northwind Traders is dedicated to building long+term
relationships with customers through 3uality training and customer support, and wants to be
recogni$ed as the leading adventure vacation company in the ,reater Seattle area. The
company2s goal is to grow steadily, becoming profitable by the second year of operations.
Pro!ucts an! Ser,ices
Northwind Traders recently became the appointed agents for .argie2s Travel, one of the largest
and most respected tour operators in the mar&et. #ith virtually no mar&eting effort, Northwind
Traders has sold some '44 adventure vacations in the past si" months, netting 5**,644 in
commissions. Sales of insurance policies and other services have added to this total and could
potentially add much more. Northwind Traders offers a comprehensive range of services to
support the adventurous traveler, including pre+ and postvacation briefings, travel insurance, and a
directory of services specific to each destination and activity.
Northwind Traders Sample Business Plan 1
rom des& and field mar&et research carried out on (44 clients, it is clear that there is
considerable potential in the adventure travel business. 7esearch indicates that Northwind
Traders2 target mar&et finds it difficult to obtain reliable and authoritative advice on destinations
and activities. 7esearch also suggests that the customers in this mar&et are unli&ely to purchase
their vacations again from the firm who provided their last vacation due to a lac& of informative
sales personnel. Northwind Traders will cater to these needs and develop a strong return+
customer base.
Because they are currently the only travel agency focused on !uropean adventure vacations that
is located in the Seattle area, Northwind Traders has a substantial opportunity to dominate the
region. In order to maintain and improve their current position in the region, they will need to invest
in a #eb site, as well as database software and systems, and in refurbishing the shop premises.
Northwind Traders maintains the following advantages over e"isting competition8
ongoing support to clients9
e"tensive &nowledge of the !uropean adventure vacation field9
superior customer service9
speciali$ed training programs for staff9 informative #eb site9 competitive rates.
#inancial #orecast
Northwind Traders started as a clothing store and has e"panded into the travel agency business,
with its focus on adventure travel in !urope. :ast year, Northwind Traders clothing store made
5'44,;44 profit on sales of 51,;1<,)44 and employed seven people.
Northwind Traders e"pects that by concentrating full+time on selling adventure vacations, clients
will increase from the present level of '44 =achieved over a si"+month period with only a part+time
Northwind Traders Sample Business Plan '
effort>, to at least **4 in the first year, 1;44 in the second, and '144 in the third. To help achieve
this growth, .s. .itchell has identified three other tour operators she wishes to represent and has
begun negotiations with them.
Selling between two and three vacations a day will allow the business to ma&e a modest profit in
%ear ?ne. By %ear Two postta" profits should be 5(4;,444 and will increase to nearly 5;<*,444
by %ear Three.
#inancin- Re.uirements
.s. .itchell plans to sell her shares in the clothing shop and invest the proceeds in the new travel
business, Northwind Traders. In addition, she will be investing 5;1,@)4 of her own money in the
business and see&ing 56(,)44 from outside sources. 7eturn on shareholders capital by %ear
Three is proAected to be close to 144 percent. The purpose of the business plan is to communicate
this highly profitable opportunity to .s. .itchell2s partners in the clothing shop and to outside
investors, and to attract interest in the venture.
Blternatively, .s. .itchell is considering loan finance made up of a 5;1,@)4 two+year loan and a
credit line of 5)6,;)4. In total, about 51'),')4 will be needed to fund the business during the
initial months.
Northwind Traders Sample Business Plan (
Northwind Traders Sample Business Plan ;
/&STOR* )$+ POS&T&O$ TO +)TE
Northwind Traders, Inc. provides travel+planning services to individuals and businesses in the
,reater Seattle area. The business is located at 1'(; ran&lin Street, Seattle, #ashington.
The Company0s Mission
The goal of Northwind Traders is to be the leading provider of hassle+free !uropean adventure
vacations to the ')+ to ()+year+old business professional mar&et. Initially operating in the Seattle
area in #ashington, Northwind Traders is rapidly e"panding to sell its services worldwide via the
Internet. Travel service sales is the fastest growing category of business to consumer activity on
the Internet, and by the year '444, the value of this mar&et is estimated at 5;.) billion =see
Bppendi" 1, Internet ,rowth and the Sale of Travel Services>.
?ur emphasis will be on providing a complete speciali$ed service based on having a detailed
&nowledge of the vacation destination and adventure activities being offered. .ar&et research
indicates that the maAor criticism our type of client has of e"isting travel agencies is that their
agents C&now nothing about their products, they Aust open the catalogue and read,D to 3uote one
of many disappointed travelers.
By capitali$ing on our e"perience in the Northwind Traders clothing shop, we will be able to both
advise and direct our clients to the type of travel e3uipment they will need to get the very best out
of their vacation.
Mana-ement Team an! 1ey Personnel
-eather .itchell, President and E!?. Before founding Northwind Traders, .s. .itchell owned and
operated Northwind Traders, an outdoor clothing shop in the Seattle area. Prior to that, she
managed the ?lympia branch of one of the larger regional chains of general travel agencies
operating throughout western #ashington, where she was responsible for managing the office
systems and a staff of four. She has a degree in travel and tourism from State Fniversity.
In addition to .s. .itchell, team members 0im 1im and 7ichard Bready will be moving into the new
venture on a full+time basis, and Bmy !gert has been recently recruited to cover Saturdays and
vacations. reelance business consultant 0ae Pa& will be advising during the business2s
changeover from clothing shop to adventure travel agency.
Northwind Traders Sample Business Plan )
0im 1im, /ice President Sales and .ar&eting. Prior to Aoining Northwind Traders, .r. 1im wor&ed
for the mar&eting department of a maAor airline. -is current responsibilities include the company2s
direct mar&eting campaign and all sales+related issues.
7ichard Bready, ?ffice .anager. Twenty years as a travel agent has given .r. Bready the ideal
bac&ground for Northwind Traders. B &nowledgeable salesperson, .r. Bready2s e"pertise in the
area of !uropean travel enables him to entice the adventure traveler.

Bmy !gert, Sales Bssistant. Bfter completing her undergraduate degree at the Institute of Brt, .s.
!gert spent a year traveling abroad and Aoined the staff at Northwind Traders recently as a sales
assistant.
0ae Pa&, Business Eonsultant. #ith over '4 years of consulting e"perience in industries ranging
from aerospace to technology to retail, .r. Pa&2s &nowledge and guidance will be instrumental to
the success of Northwind Traders.
The volunteer members of the Board of Girectors provide guidance to the management and staff
of Northwind Traders. The board meets twice yearly to discuss policy changes, review the mission
statement, and update the business plan if needed.
.embers include
:isa 0acobson, retail store owner
-olly Barrett, EPB
0o Brown, former travel agent
#illiam -ollands, lawyer
:isa ,armaise, retail store owner
Tony Ehor, human resource manager
Prasanna Samarawic&rama, caterer
Ser,ices
#e are currently the appointed agents for .argie2s Travel, a maAor supplier in the mar&et.
Eurrently, .argie2s Travel offers some ;4 different adventure vacation pac&ages throughout
!urope, including horse tre&&ing in Iceland9 above+the+clouds tre&&ing on islands and in remote
Northwind Traders Sample Business Plan *
regions in such areas as Eorsica and Norway9 van+supported inn+to+inn bicycling9 mountain bi&ing
and hi&ing adventure tours throughout rance, ,ermany, Italy, and Bustria9 and ballooning across
the Blps.
#e intend to be appointed agents by three other maAor adventure travel tour firms with whom we
are currently in negotiation8
!nchantment :a&es Eorporation. ?ffers rafting, sea &aya&ing, and yachting trips around remote
!uropean rivers and coastline areas, covering such areas as the Bdriatic, the Blac& Sea, and
Tur&ey.
#est Eoast Sales. ?ffers adventure vacation pac&ages to corporate clients to use as incentives
and rewards, and as part of management development programs. They are particularly strong in
rance, Italy, and ,ermany.
!"ploration Bir. Speciali$es in adventure vacations in !astern !urope and former Soviet countries,
covering Bulgaria, 7omania, Poland, and :atvia.
These are three relatively new and small tour operators, but they have ac3uired a reputation for
innovation and reliabilityHand they are currently underrepresented.
In addition, we will offer a comprehensive range of complementary services to support the
adventurous traveler, ensuring that they will have a safe, enAoyable, and memorable e"perience.
These services will include insurance, pre+ and postvacation briefing pac&s, and a directory of
advice and information services particular to each destination and adventure activity.
Transportation
The vacations we will offer will use all principal travel systems, including planes, trains, buses, and
where appropriate, ta"is. #e will aim for a standard of travel higher than that offered by the
general travel industry. The feeling we are loo&ing for is definitely not that which is engendered by
the bac&pac&er mar&et.
Northwind Traders Sample Business Plan @
Company /istory
ive years ago -eather .itchell cofounded Northwind Traders, an outdoor clothing shop in
Seattle, #ashington. ?ver the years, Northwind Traders has e"tended its product range to include
everything the adventurous traveler could want, from tents and sleeping bags to maps,
guideboo&s, and insurance. The clothing shop has sales of 51,;'4,444 per year =see Table 1>,
ma&es a gross profit of 5'4',;44, and employs seven people, either full+ or part+time. B mail+order
service is now provided by catalogue and via a new #eb site.
Tale 23 $orth%in! Tra!ers Clothin- Shop Performance O,er Past #i,e *ears
%ear 2 2 4 5 6ast *ear
Sales 516(,@44 5;'',)14 5**<,*@4 51,4'(,@14 51,;'1,1@4
,ross Profit 5*',*') 51*@ 5144,@41 51((,*4' 5'41,<1*
Increasingly, shop customers have as&ed for advice on adventurous places to go on vacation.
:ast year Northwind Traders ac3uired an agency from .argie2s Travel, one of the largest and
most respected tour operators in this mar&et, and began to promote and sell their products.
In the si" months that we have been selling travel agency products, some '44 vacation pac&ages,
at an average cost of 5((;4, have been sold. Northwind Traders2 commission on the sales has
been 5**,644 =14 percent commission>. In addition, () insurance policies have been sold at an
average price of 51*@, yielding 51@); =(4 percent commission>.
-eather .itchell, one of Northwind Traders2s founding partners, intends to sell her shares in the
store and to concentrate on setting up the new travel business, Northwind Traders.
7uarantees an! "arranties
?ur clients will be protected financially against either our own or our tour operator2s failure, by
virtue of the B7E bonding held by our principals. #e will only use vacation providers who can
provide ';+hour emergency support services for clients while on vacation.
Northwind Traders Sample Business Plan 6
Business Structure
Northwind Traders is incorporated under the laws of the state of #ashington. The company has
authori$ed 14,444 shares, *444 of which are owned by President and E!? -eather .itchell. /ice
President of Sales and .ar&eting 0im 1im owns 1444 shares, and the remaining shares are held
by the company for future distribution.
In the ne"t few wee&s, the business will be set up as an operation independent from the clothing
store. This structure will clearly separate the travel business from the clothing shop and ma&e it
possible to attract the ris& capital that will be re3uired when the business starts to grow.
Bt a later stage the business may wish to sell and issue airline tic&ets and to create its own charter
vacations. This will re3uire membership in the B7E =Birline 7eporting Eorporation> and IBTBN
=International Birlines Travel Bgency Networ&>. These organi$ations regulate the collection of
money and distribution to the appropriate airlines. -owever, in the period covered by this Business
Plan we intend to operate only as the appointed agents for a number of tour operators. Bs such
we can CshelterD under their licenses and bonds.
M)R1ET RESE)RC/
Guring the current period of strong economic growth, Northwind Traders can capitali$e on the
many significant opportunities in the travel industry.
Economic an! Social #actors
Service industries represent the fastest growing sector of the national economy, and travel and
tourism agencies are poised to flourish in the midst of today2s economic boom. These services are
proAected to grow at an average annual growth rate of ;.1 percent over the period from 1<<4 to
'414 =Bppendi" 1>. The travel and tourism industry thrives in a vital economy.
The general economic climate in the city of Seattle is very strong. Bn influ" of new businesses has
added to the area2s prosperity, and the already large population of young professionals is growing.
The city of Seattle is the center for business in 1ing Eounty, with over ;44,444 people employed
in industries such as aerospace, transportation e3uipment, health services, tourism, computer
software, and biotechnology.
Northwind Traders Sample Business Plan <
Competiti,e En,ironment
The 3uality of service and the number of providers in the travel industry constantly fluctuate. ?ur
competitive edge will be in attracting and retaining our customers with the most highly trained and
well+informed individuals we can recruit. #ith our e"pertise in !uropean adventure vacations, we
will be able to provide the most accurate, up+to+date information possible.
6on-8Term Opportunities
Tourism in general is on the rise =Bppendi" 1>, !urope loo&s li&e it will continue to be the maAor
destination, and the Internet will be an important channel into this mar&et. The state of the
economy will be the most influential factor in how many people travel. ?ther driving forces for
travel will include the cost of tic&ets, fuel prices, the threat of terrorism, and currency rates.
The current lac& of leaders in the !uropean adventure travel industry represents an e"ceptional
opportunity for Northwind Traders to develop a dominant presence in the ,reater Seattle area.
#ith their e"ceptional &nowledge of the adventure travel industry, strong customer base, and
competitive prices, the company will be well situated to ta&e advantage of the region2s current
economic prosperity.
7eo-raphic )rea
Northwind Traders is based in Seattle, #ashington, and targets individuals interested in adventure
vacations in !urope. The region comprises the incorporated cities of 7edmond, Bellevue, and
Tacoma and the encompassing counties of 1ing, Snohomish, and Pierce.
Mar9et +escription
The ,reater Seattle areaIincluding all of 1ing, Pierce, and Snohomish countiesIis home to
appro"imately ( million people =1<<; figure>, half of whom fall within our target mar&et. Seattle2s
Aob rate is climbing at a rate of 14 percent each year, and new Aobs and growth are e"pected
through the year '44@. Seattle has become a world+class destination, and the downtown retail and
shopping core has grown steadily over the last decade. The following maAor facilities reside in the
,reater Seattle area8 an international airport, several maAor medical centers, a state university,
and four other colleges and universities.
Northwind Traders Sample Business Plan 14
The percentages of employment by industry are as follows8 '6 percent services, ') percent
wholesale and retail, 1* percent manufacturing, 1; percent government, * percent transportation
and communication, * percent finance and insurance, and ) percent construction.
Tar-et Customers
SeattleJ1ing EountyKs labor force is highly educated, s&illed, productive, and stable. It consists of
individuals who are deeply attached to the area and have tended to stay and wait out past periods
of economic downturn. The vital economy, the Northwest lifestyle, and its uni3ue environmental
3ualities attract people. Both public officials and business leaders recogni$e the need to &eep our
labor force well e3uipped with mar&etable s&ills.
rom within this population, our target customers are individuals who are professionals with
incomes of 5;4,444L, ages ') to (), single or married, without children, and college educated.
Mar9et +efinition
The world travel mar&et is forecast to e"pand at a ;.1 percent average annual growth rate until
'414. This is faster than the general economic growth rate, which is e"pected to be around '.;
percent per year.
The !uropean mar&et, while not the fastest growing, will be the most important destination,
accounting for over )4 percent of all international arrivals =see Bppendi" 1>. #ithin !urope,
rance, Italy, and Spain are the most popular destinations. This is why we have selected tour
operators with appropriate products in these areas as our initial partners.
igures for the si$e and proAected growth of adventure vacations are s&etchy, but the figures from
one recent study =#orld Bdventure Travel Gata Eorp.> are in Table '.
Tale 23 )!,enture Tra,el (acations 8 "orl! forecast :Million )rri,als;: 2<<0 8 2020
+estination 2<<0 1""7 2004 2020
!urope 4.') 4.*4 1.*4 '.()
N. Bmerica 4.;) 4.*4 1.;4 '.'4
7est of #orld 4.14 4.') 4.<) 1.14
Total 4.64 1.;) (.<) ).*)
Northwind Traders Sample Business Plan 11
)-e 2<<0
=
2020
=
1* + '; *1 (6
') + () '4 (1
(* + ;) 1) ')
;*L ; *
144 144
Source8 #BTG Eorp. 1<<@
Mar9et Opportunities
#e believe that by concentrating on the !uropean travel mar&et, offering a limited but e"tensive
range of vacation pac&ages, and targeting our service at affluent professionals, we can meet the
needs of our clients. ?ur speciali$ed &nowledge of !urope and adventure travel will allow us both
to satisfy our customers and to surpass the services offered by our competitors.
?ur mar&et study =see Bppendi" 1> has shown that the group composed of affluent professionals
has specific needs that are not currently being met, as *) percent of those planning vacations
would not purchase them from the same source againM Specifically, they want their travel agent to
have comprehensive &nowledge of the destination =6@ percent>9 to have an efficient administration
system in which they can have confidence =6; percent>9 to go on vacation with similar professional
people =61 percent>9 and to be offered useful advice and ancillary services such as insurance =@<
percent>.
In addition, our mar&et study confirms that !urope is li&ely to be the largest destination mar&et for
adventure vacations. ?ur study shows only (4 percent of adventure travelers to be under '; years
of age, while the #orld Bdventure Travel Gata study claims *1 percent is under ';. #e feel the
difference is because our survey sample is confined to relatively affluent people who had spent at
least 5()4 on adventure clothing =see Bppendi" 1>.
?ne further emerging mar&et segment for adventure vacations is that of corporate clients. ?ur
research suggests that up to one in five adventure vacations is at this top price end of the mar&et.
Competiti,e )nalysis
Northwind Traders is the only travel agency located in the Seattle area that is focused on
!uropean adventure vacations. -owever, there are many adventure travel agents in capital and
Northwind Traders Sample Business Plan 1'
secondary cities such as 7edmond, Bellevue, and Tacoma that compete with Northwind Traders
to provide adventure vacation pac&ages. These agencies are described below8

,eneral Travel Bgents
These agents have added adventure vacations to their services but often have little or no
&nowledge of adventure destinations or activities. They sell literally from the page, offering
limited advice, information, and support. Bccording to our mar&et study, ;4 percent of
adventure vacations are boo&ed through these general travel agents, but only a third of clients
would use them again.
Bdventure Tour ?perators
These tour operators who advertise their vacations in the press attract about a 3uarter of all
adventure vacation clients. -owever, clients have to shop around several tour operators to find
what they want, and clients cannot get unbiased advice or much help with information. ?nly ;)
percent would go bac& to a tour operator for their ne"t vacation.
Independent Travelers
These travelers comprise about 1) percent of those going on adventure vacations, of whom
*) percent would travel that way again. #e need to persuade this group that our superior
product &nowledge and service is worth their consideration.
Internet Providers
These providers sell only ) percent of adventure travel vacations9 however, @4 percent of
adventure travelers would buy their ne"t vacation via the Internet. There is plenty of scope to
offer a superior #eb site. #e believe that by having daily face+to+face contact with clients, we
will be better able to manage a fresh, vital, and relevant #eb site aimed at the specific needs
of our mar&et segment.
Specialist Bdventure Travel Bgencies
These agencies sell only about 1) percent of travel pac&ages at present, but we feel this is
partially due to lac& of client awareness and to the comparative rarity of such outlets. #e will
differentiate ourselves from our competitors by offering the most e"tensive material available
from the most up+to+date, well+informed staff. Elients will return for our service, &nowledge and
competitive prices.
Northwind Traders Sample Business Plan 1(
These findings are some of the most powerful results of our research. #hile general travel agents
may be the most li&ely resource for those travelers ta&ing an adventure vacation, they are in fact
the least li&ely place those clients will return to. Blthough specialist adventure travel agents, such
as the business we are setting up, account for only 1) percent of the mar&et, *) percent of clients
would use them again. #e aim to increase this percentage through our superior service.
Competiti,e )!,anta-es
Some *) percent of those clients using specialist adventure vacation travel agents would use
them againImany more than would use either a direct tour operator or a general travel agent.
-owever, these agents were critici$ed for having such a wide range of activities and destinations
that their sales agents &new little about them. ?ur research shows that while ;1 percent of clients
ta&e adventure vacations in !urope, only '( percent of the )444 adventure tours offered are for
!uropean destinations.
#e feel that by concentrating on !uropean destinations, which is the largest mar&et for both
vacations in general and adventure vacations in particular, we will be able to have superior
product &nowledge. #e will need to &now only perhaps 144 destinations and activities well, rather
than have only a passing &nowledge of the )444 adventure vacations available.
?ur mar&et research has also shown that many adventure travel agents are catering to the
bac&pac&er mar&et, consisting mostly of individuals who are under '; years of age and are
generally very cost conscious. This can lead to very different types of clients ending up at the
same destination, with some conse3uent dissatisfaction. The bac&pac&er mar&et re3uires a much
lower level of service and information than does the mar&et for the more affluent ')+ to ()+year+
old professional.
Competitors0 Positions
The two maAor competitors of Northwind Traders are erguson and Bardell, and :a&es N Sons.
erguson and Bardell is the strongest competitor of Northwind Traders, due to its strong client
base and e"perienced owner. -owever, its press releases are of a very low 3uality, and its
location is undesirable, with difficult par&ing and limited customer service space. In addition,
erguson and Bardell lac&s the &nowledge and e"pertise in the field of !uropean adventure travel
that is valued so highly by the clientele of Northwind Traders.
Northwind Traders Sample Business Plan 1;
:a&es N Sons will be a formidable competitor for Northwind Traders because of its prime location,
well+established business, and e"tensive training program.
Potential #uture Competition
Northwind Traders will occupy a speciali$ed niche in the travel industry, with its focus on
adventure vacations in !urope. Blthough it is currently the only !uropean adventure travel agency
located in the Seattle area, competitors do e"ist in nearby areas =see above>. In order to stay
competitive, Northwind Traders will need to establish itself as the leader in adventure travel
planning for !urope with its superior product &nowledge and high+3uality service. The lac& of
current adventure travel providers in the area represents a uni3ue opportunity for Northwind
Traders to e"pand in a rapidly growing mar&et.
BUS&$ESS STR)TE7*
#ith Northwind Traders2 e"pertise in !uropean adventure travel, we can create customi$ed travel
itineraries for our clients and provide the most thorough, informative adventure travel service
available. By offering superior customer service, Northwind Traders can distinguish itself from its
competitors.
Customer &ncenti,es
?ur mar&et research shows that publicity has the greatest impact on people2s choice of an
adventure vacation travel agent, followed closely by having the right location and having a
recommendation from a friend, relative, or colleague.
,eneral press advertising seems to be fairly ineffective in this sector, and event specialist press
advertising only brings in one out of seven clients. =See Bppendi" 1, Summary of indings from
.ar&et 7esearch.>
)!,ertisin- an! Promotion
?ur advertising and promotions will pivot around si" &ey strategies8 public relations, our shop front,
an Internet #eb site, customer relations, press advertising, and our association with the Northwind
Traders clothing store.
Northwind Traders Sample Business Plan 1)
Public relations. #e will put considerable effort into preparing and disseminating a regular flow of
press releases. These will be based on stories about our destinations, activities, corporate clients,
and our staff. #e will employ a public relations adviser to help us write copy and locate
publications editors.
Shop front. #e plan to have an e"citing, informative, and actively managed display window. There
will be a video display showing adventure vacations in progress. Gifferent destinations can be
selected from outside the window via a control panel9 otherwise, the scenes will rotate on a
random basis.
Internet #eb site. This is fast becoming a maAor promotional channel, and we believe it will
increase in importance over time. Blso, it is the most convenient way for us to have a global
presence at the outset. =See Bppendi" 1, Internet ,rowth and the Sale of Travel Services.>
Eustomer relations. #e will &eep records of every sales contact. Gata such as source of in3uiry,
client needs, previous vacation, Aob, and income will be included. By having superior information
on our clients and prospects, we intend to offer a truly personali$ed service. ?ur database will
contain full details on all our clients, including the vacations they have ta&en and their postvacation
appraisal data. #e will use this data to encourage our satisfied customers to recommend our
services to friends, relatives, colleagues, and employers.
Press advertising. #e will underta&e a small amount of press advertising in order to enhance our
public relations activity. There is considerable research to support the argument that the more
often a potential client hears about you, the more li&ely they are to approach you when they have
a need for your type of service.
Northwind Traders association. #e will write to all past shop clients announcing the establishment
of the travel business and offer them a special introductory adventure vacation pac&age.
Sales an! Mar9etin-
!"cellent selling s&ills are vital in our type of business. Therefore, everyone will be fully trained in
sales. Bdditionally, every month we will CauditD each other by observing half+a+day2s selling activity
and giving feedbac& on strengths and wea&nesses in s&ills.
Northwind Traders Sample Business Plan 1*
#e will also be using a Ccontact managementD system that will allow us to monitor the
effectiveness of different promotional strategies and of different mar&eting messages.
The &ey to our strategic advantage lies in having superior data on prospects and clients.
Commission
The normal commission paid to travel agents for this type of vacation is in the 14 percent to 1)
percent range. #hile .argie2s Travel, the first agency we have been appointed to, pays us at the
lower end of the scale, they are a prestigious firm to represent. -aving them in our portfolio will
enable us to negotiate much higher commissions from our new principals. Bccordingly, we are
planning on an average travel agency commission of 11 percent, rising to 1( percent by the end of
%ear Three. Eommission on insurance and other services will be (4 percent.
OPER)T&O$S
Premises
It is vital that the travel business has both a storefront facing onto the main street and a visible
separate entrance. The goal is for clothing shop clients to be able to move between the premises
without going outside. #e will be renting '444 s3uare meters of fully serviced space at a cost of
5(4,4*4 per year. #e will need to spend 5'),4)4 on internal refurbishing. #e plan to do some of
this wor& ourselves. Bn additional 5;1@) will be needed for des&s, chairs, and other office
furnishings.
Choice of 6ocation an! Premises
#e intend to locate within the e"isting Northwind Traders shop, since this is close to the city
center with a high density of both residential and business premises. The pavement is wide, so
people can stand and loo& in the window without being in the way of other pedestrians.
/ours of Operation
The telephone lines will be staffed '; hours a day by live operators. Guring the period from < am
to * pm, this will be done mostly by our staff. -owever, overload calls during the day and after+
hours calls will go to our live telemar&eting bureau. People consider vacation decisions at home in
Northwind Traders Sample Business Plan 1@
the evenings after discussion with friends and partners. #e want to be available as their first point
of contact with an informed, friendly service.
#e believe that since our clients will mostly be busy professional people, off+pea&+hours access to
our services is also a &ey way in which we can differentiate ourselves from other travel agencies.
E.uipment
#e will be renting an integrated telephoneJdatabase system from the outset. This will allow up to
ten sales staff to answer calls and have full on+screen data on clients and products.
Bs service is one of our &ey components, it is essential that we have full access to all relevant
data speedily and efficiently.
Staffin-
rom the outset all staff will have Aob descriptions, a career and training history file, and a record
of employee reviews.
New staff will ta&e the travel agency Psychometric Bptitude Test and then spend time with each
member of the Northwind Traders team.
Bll staff will undergo full product training and will spend at least four wee&s a year on+site at &ey
travel destinations.
?ur dress code will re3uire us to loo& as though we are on our way to one of our adventure
vacations. #e plan to start with a staff of three full+time employees, including the founder, and
one part+timer. #e plan to be operating with a staff of thirteen during the fifth year of business.
Northwind Traders Sample Business Plan 16
Northwind Traders Sample Business Plan 1<
#OREC)ST&$7
Sales #orecast
?ur ratio of sales to in3uiries of the adventure travel vacations sold to date, while operating within
the outdoor clothing shop, has been one in three. or the purposes of our sales forecast, we are
assuming that only one in five in3uiries will actually result in an adventure vacation being boo&ed.
This is a very conservative estimate.
#e e"pect there to be a steady buildup of clients coming from the clothing shop to tal& to us about
vacations =see Table ( below>. -owever, the number of new in3uiries generated by our
promotional activity will also build up during the year, gradually overta&ing in3uiries from the
clothing shop. This is a trend we e"pect to continue. Based on the proAection below, we are
forecasting to sell **4 adventure travel vacations ne"t year at an average price of 5();<. ?nce
insurance and other service sales are added in, we e"pect to generate a gross profit of 5'*6,@6(
over the first 1' months.
Tale 43 Sales #orecast Pro>ection
?2 ?2 ?4 ?5 *ear
Total
In3uiries
generated through
promotion
'44 ;') ;') @)4 1644
Shop in3uiries (44 (44 ;)4 ;)4 1)44
Total in3uiries )44 @') 6@) 1'44 ((44
/acations sold 144 1;) 1@) ';4 **4
Bverage vacations cost

5((;4 5((;4 5(@)6 5(@)6 5();<
Eommission received 5((,;44 5;6,;(4 5@',((1 5<6,@)@ 5')',<16
Eommission on insurance
N other services received
51*@4 5((;4 5)414 5)6;) 51),6*)
Northwind Traders Sample Business Plan '4
Total commission N fees
earned
5(),4@4 5)1,@@4 5@@,(;1 514;,*4' 5'*6,@6(
In %ear Two we are forecasting a gross profit of 5*';,(16, and in %ear Three we plan to reach
5<6*,6;*.
Cash #lo% Pro>ections
The Eash low proAections for %ear ?ne =see Bppendi" '> show that after the owner has put in
5;1,@)4, the business will need additional short+term financing of about 56(,)44. or the last two
months of the year, we are forecasting a positive cumulative cash flow and a year+end cash
surplus of 51<,<().
In our Eash low proAection, we have assumed the whole 56(,)44 additional financing has come
from a ban& loan. #e have allowed for interest on the full amount for the whole period. In practice
we would hope to finance part of this at least by a line of credit e3ual to the money actually
re3uired. In this way we believe we have made a prudent, conservative provision.
&ncome Statement
#e e"pect to ma&e a small after+ta" profit of 5(;,<41 in the first year =see Bppendi" ' and Table ;
below>. This is before the owner2s drawings. Bny owner2s drawings will be contingent on
performance being better than that e"pected in the Plan.
Tale 53 Profits in *ears One to Three
*ear One *ear T%o *ear Three
Sales ',(*;,6(< ),'4',*;) @,)<1,1('
:ess cost of sales ',4<*,4)* ;,)@6,('@ *,*4;,'6*
,ross profit '*6,@6( *';,(16 <6*,6;*
:ess e"penses '';,@;4 ';(,;4; (;),*<4
Net income before
ta"es
;;,4;( (64,<1; *;1,1)*
Provision for ta"es <1;' @*,16; 1;),@)1
Net income after
ta"es
5(;,<41 5(4;,@(4 5;<),;4)
Northwind Traders Sample Business Plan '1
Balance Sheet
The Balance Sheet at the end of %ear ?ne =see Bppendi" '> shows a healthy surplus of current
assets over current liabilities. #e have shown a conservative funding position, which does not
include any of the additional capital that we hope to secure.
Performance Ratios
#e plan to move our gross profit up from 11 percent in %ear ?ne to 1( percent in %ear Three.
These figures loo& 3uite low, but it should be remembered that our gross profit is really the sales
commission we earn, not the full price of an adventure vacation. ?ur net income before ta"es is a
more accurate measure of performance. This we e"pect to move from ' percent at the outset up
to 6 percent by %ear Three. Eommission generated and profit per employee will be among the
highest in the industry.
Tale @3 Commission 7enerate! an! Profit per Employee
*ear One *ear T%o *ear Three
,ross profit O 11 1' 1(
Net income before
ta"es O
' @ 6
Eommission
generated per
employee
5@*,@<) 51(6,@(@ 51*;,;@(
Profit per employee 51',)6; 5*<,')@ 514*,6)6
Brea98E,en
To brea& even we will need to sell between ' and ( vacations per day. This compares with our
present sales of 1.( vacations per day, based on our part+time effort out of the clothing shop. #e
feel confident that the brea&+even point can be attained within a reasonable period of time.
#un!s Re.uire! an! Timin-
#e plan to ma&e two maAor investments8 one in #eb site and database development and one in
shop premises development.
#eb site and database development + this will cost 5;1,('). The database system is one of
our &ey differentiators. It will allow us to offer superior service and ensure a high level of repeat
Northwind Traders Sample Business Plan ''
business and referrals.
The #eb site is vital if we are to reach this wide and disparate global mar&et. The group of
potential clients we have chosen as our target mar&etIaffluent, professional ')+ to ()+year
oldsIare prime users of the Internet. !ven those people in our locality will e"pect to be able to
research our offers on the Internet before coming to the shop. =See Bppendi" 1, Internet
,rowth and the Sale of Travel Services >
Shop premises development + this will cost us 5'<,''). #e have to loo& professional and
have an efficient wor& environment. If our staff do not have the right tools, we can hardly
e"pect them to deliver superior performance. If clients see CamateurD premises, they will not be
inspired to spend thousands of dollars and entrust their adventure vacation plans to us.
Both these investments need to be made at the outset to ensure that the business creates the
right impression from the start. #e get only one chance to ma&e a first impression.
#e have decided to lease our telephone and computer systems, since this is a rapidly changing
area and we need to have access to the very latest technology. inancing pac&ages from
e3uipment suppliers are currently very attractive.
#un!in- Options
The owner plans to invest 5;1,@)4 of her own money =the proceeds of the sale of her share of the
clothing shop business>. The cash flow proAections show that the business will re3uire 56(,)44 of
wor&ing capital during the early months of the first year2s operations. In the event that additional
funds prove necessary, we have identified two options for raising further funds8

Option 2: The sale of e3uity, perhaps to the original shop partners, could raise between 5;1,@)4
and 51*@,444. This would provide some capital to allow for growth. Bny shortfall could be funded
either by a line of credit or a ban& loan.
Option 28 Bpproach our ban& with a view to raising a medium+term loan of 5;1,@)4 and a line of
credit of 5)6,;)4. -eather .itchell could, with family help, provide any lender with security for part,
if not all, of this facility.
Northwind Traders Sample Business Plan '(
BUS&$ESS CO$TRO6S
)ccountin- System
#e will be using a computer+based financial management system. #ith this system we can review
our sales and mar&eting activities on a regular basis. This will allow us to analy$e the profitability
of sales of different vacations through each tour operator. Thus we will be able to reward staff on
the basis of profit achieved rather than Aust on sales.
?uality Control
#e will be developing outline scripts to help the sales staff manage in3uiries. This will ensure that
all incoming phone calls are dealt with in the same way and meet a high standard.
#e will encourage people in3uiring about vacations to give us feedbac& on our service8
?ur ability to handle their in3uiry
The amount of time from the client2s first in3uiry to the date of actual travel
The client2s reactions to the vacation in terms of whether it meets their e"pectations
$e% Tour Operators
-eather .itchell will be responsible for reviewing the range of tour operators that we see& to
represent and negotiating with prospective new principals.
Capacity
?ur offices can accommodate five sales des&s. !ach sales des& has a capacity to handle four
clients per hour, which means over the course of a year, we could handle up to ;4,444 in3uiries.
#ith our average sales rate of one in five, we could service <*44 clients from our present facilities.
This is well above the numbers we are anticipating in the business plan.
6on-8Term 7oals
The financial obAectives of Northwind Traders are to be operating at or close to brea&+even cash
flow by the end of the first year, with steady growth over the ne"t five years. #e aim to be
profitable from %ear ?ne onward9 our goal is to earn at least 5(4;,444 postta" profit in %ear Two
and nearly 5;<*,444 in %ear Three. ?ur profit margin on sales by %ear Three will be a respectable
@ percent.
Northwind Traders Sample Business Plan ';
Steps for )chie,in- 7oals
Northwind Traders2 strategy for achieving our goals consists of si" maAor points8
!stablish an e"tensive public relations campaign
7ecruit well+trained, enthusiastic staff
Geliver superior product &nowledge
Provide high+3uality customer service
Ereate a library of toolsJreference materials for clients
?ffer competitive pricing on vacation pac&ages
The first step to achieving our goals is to hire a competent public relations agency. This will be the
&ey to producing state+of+the art publicity materials and determining where these materials should
be placed for optimum visibility.
The second step will be to increase the staff. The individuals recruited will go through an e"tensive
training program to ensure that they will be able to provide superior product &nowledge in the field
of !uropean adventure travel. The present staff is passionate about adventure vacations, and we
intend to maintain their enthusiasm through constant product development and s&ill training. #e
will only recruit those individuals who share our vision. #e also want the business to have an
enAoyable atmosphere.
The third step is to install a library of reference wor&s in the shop. These materials will be available
for clients to browse through while in the shop or to Cchec& outD and peruse at home. Bn agent will
be on hand at all times to answer any 3uestions.
Position
#hile at present we are offering only other company2s adventure vacations, we have protected
our position in a number of ways.
irst, we have a two+year agency agreement with .argie2s Travel, which gives us access to all
their e"isting vacation products as well as any new ones. This contract is dependent on Northwind
Traders achieving sales of at least ')4 vacation pac&ages a year. #e intend to negotiate similar
agreements with future suppliers, although sales targets with them will be lower to reflect their
relative mar&et position.
Northwind Traders Sample Business Plan ')
Second, we intend to maintain a high service element to our business, e"tending our range of
value+added services such as vacation insurance, individuali$ed prevacation boo&lets,
postvacation follow+up, and continually updating our client database. In this way, we will see& to
build up a high level of repeat business. Eustomer loyalty is vital to our profitable growth.
Ris9s )ssociate! %ith 7ro%th
#e see some ris&s associated with our e"pected growth8
:osing touch with customers
:oss of clientele to other providers
Puality of services diminished
New businesses
The ris&s facing the e"pansion of Northwind Traders can be summed up in one word8 competition.
In order to sustain our position in the area as the premier agency for !uropean adventure travel,
Northwind Traders needs to outshine its competition. By maintaining our focus on superior product
&nowledge and outstanding customer service, we will be able to uphold our position in the
industry, thereby retaining current clients and attracting new clients.
Northwind Traders Sample Business Plan '*
Northwind Traders Sample Business Plan '@
)PPE$+&' 2: M)R1ET RESE)RC/
&nternational )rri,als y "orl! Re-ion
Up!ate! forecast for the years 2000 an! 2020 :millions;
1<@) 1<<) 1<<* '444 '414
Bverage annual
growth rate =O>
1<<4 + '414
!urope 1)(.6 ((6.' (;@.; (<@ )') (.1
!ast BsiaJPacific 6.@ 6;.) <4.1 1'' ''< @.*
Bmericas )4.4 114.1 11).) 1(6 1<) (.@
Bfrica ;.@ 16.@ 1<.; ') (@ ;.*
.iddle !ast (.* 11.( 1).1 1; '1 ;.<
South Bsia 1.* ;.) ;.) * 11 *.@
#orld total '''.( )*@.; )<'.1 @4' 1,416 ;.1
Source8 ,lobal Stats. Eorp. 1<<@
Northwind Traders Sample Business Plan '6
&n!ications of Tourism +eman! in 2<<A
International
tourist arrivals
=" 1,444>
Nights spent by
foreign tourists
=.ill>
International
tourism receipts
=.ill. !EF>
Bustria 1@,1@( *(.6 11,1*6
Belgium ))*4 1'.6 ;@@*
Genmar& 1*1; 14.6 '61;
inland 6() (.( 1('4
rance *4,114 );.( '4,@;'
,ermany 1;,6;@ ().) 1',;46
,reece 14,1(4 (<.* (1(6
Ireland ;'(1 1;.4 '4)<
Italy (1,4)' 11(.4 '4,<<(
:u"embourg @*@ '.( ;@@*
Netherlands *)@; 1<.@ ;<;*
Portugal <@4* ''.' (((4
Spain ;;,66* 14@.6 1<,;(1
Sweden *6( @.< '*)'
Fnited 1ingdom '',@44 1*;.< 1;,(**
!F '(4,6*6 *@'.4 1';,1;(
Iceland 1<4 4.6 1'@
:iechtenstein )< 4.1 nJa
Norway '664 @.1 16'*
!!B '((,<<@ *64.4 1'*,4<*
Swit$erland 11,)44 (;.4 @'(*
!urope+1< ';),;<@ @1;.4 1((,(('
Source8 ,lobal Stats. Eorp. 1<<@
Northwind Traders Sample Business Plan '<
Summary of #in!in-s from Mar9et Research Sur,ey
Three hundred clients of Northwind Traders who had made purchases in e"cess of 5()4 in the
past si" months were surveyed.
Percenta-e of Sample Customers Ta9in- an! $ot Ta9in- )!,enture (acations
Bccording to our research, only '4 percent of our sample customers had never ta&en or
considered ta&ing an adventure vacation. Thirty percent, while they had not yet ta&en such a
vacation, had at least actively considered doing so. ifty percent of our sample are regular
adventure travelers, ta&ing at least one adventure vacation each year.
&nformation )out 2@0 Respon!ents "ho Too9 )t 6east One tra,el (acation Per *ear
,ender8 .ale *)O emale ()O
Status8 .arried '1O Single @<O
)!,enture (acation Tra,elersB y )-e an! Percent
Bccording to our study, the percentages of adventure vacation travelers in fall into various age
groups as follows8
)O are under the age of 1*
')O are ages 1* to ';
;4O are ages ') to ()
'4O are ages (* to ;)
14O are over the age of ;)
Percenta-e of )!,enture (acation Tra,elers y &ncome 7roup
Bccording to our research, the percentages of adventure vacation travelers in various income
brac&ets are as follows8
*O earn 51*,@44 or less annually
''O earn between 51*,@41 and 5'),4)4 annually
'6O earn between 5'),4)1 and 5((,;44 annually
Northwind Traders Sample Business Plan (4
')O earn between 5((,;41 and 5;1,@)4 annually
1<O earn more than 5;1,@)4 annually
orty+five percent of respondents ta&ing adventure vacations spend in e"cess of 5((;4 per
person per vacation. Twenty percent of the respondents, who tend to be professionals in the ')+
to ()+year age range, typically spend over 5)414 per person. Those respondents spending under
5((;4 are both in the lower income and lower age groups and represent 14 percent of the
respondents.
Percenta-e y +estination of @000 Ma>or )!,enture Tours ),ailale on the Mar9et
B study by destination of appro"imately )444 maAor adventure tours on the mar&et reveals the
following8
1'44 are for destinations in !urope
1444 are for destinations in North Bmerica
*44 are for destinations in India
614 are for destinations in Bfrica
*@) are for destinations in the ar !ast
*@) are for other destinations
By contrast, the percentages of the adventure travelers purchasing vacation pac&ages to each of
these destinations are as follows8
!urope + ;1O
North Bmerica + (4O
India + 14O
Bfrica @O
ar !ast + @O
other destinations + )O
?ur research shows that !urope is the most popular destination for adventure vacation travelers.
-owever, only 1'44 of the )444 adventure tours on the mar&et are for !uropean destinations.
Bfrica, which only attracts @ percent of the mar&et, has 1* percent of the tours aimed at it. It
Northwind Traders Sample Business Plan (1
follows that the !uropean mar&et has scope for e"pansion and that if we concentrate on that
mar&et, we only need to have detailed &nowledge of upmar&et !uropean tours, rather than all
)444. In that way we can have the advantage of superior &nowledge in our chosen mar&et.
Percenta-e y Source from %hich Tra,eler /ear! )out 6ast )!,enture (acation
?ur research reveals the following about the source from which adventure travelers originally
found out about the last adventure vacation they purchased8
publicity activity + (4O
travel agent + ')O
friend + 16O
adventure press + 1)O
press advertising + 6O
Internet + ;O
These findings demonstrate the power of publicity. The ne"t most effective way to reach potential
clients is via the travel agent2s shop window. Both the press in general and the adventure travel
press do not appear to have much effect on buyers in this mar&et.
The percentage of respondents who have not been on an adventure vacation organi$ed by their
employer far outnumbers those who have been on a vacation planned by their employer. There is
a significant minority of corporate clients who buy adventure vacations to use as rewards,
motivation, or as part of a management development program. These corporate customers are
also those clients who spend over 5)414 per person per tour.
Northwind Traders Sample Business Plan ('
$ORT/"&$+ TR)+ERS ?UEST&O$$)&RE
(Your replies are anonymous so confidentiality is assured)
1. 7en!er8 .ale emale
Marrie!: %es No
Chil!ren %es No
)-e8 Fnder 1* &ncome8 Fnder 51*,@44
1* + '; 51*,@41+5'),4)4
') + () 5'),4)1+5((,;44
(* + ;) 5((,;41+5;1,@)4
;)L over 5;1,@)4
Occupation: Self8...................................................................
Partner8.............................................................
'. -ow many adventure vacations have you ta&en in the past three yearsQ
None + never considered ta&ing one
Eonsidered, but not yet ta&en a vacation
Ta&en one adventure vacation
Ta&en two adventure vacations
Ta&e at least one adventure vacation every year
(. If you ta&e adventure vacations, how much do you spend per head per vacationQ
Fnder 51*@4
51*@1+5((;4
5((;1+5)414
?ver 5)414
Northwind Traders Sample Business Plan ((
;. #ho did you buy your last adventure vacation fromQ #ould you use that source
againQ
Traveled independently %es No
Girectly from the tour operator %es No
/ia the Internet %es No
rom a specialist adventure travel agent %es No
rom a general travel agent %es No
). -ow did you hear about the last adventure vacation that you too&Q
rom a friendJcolleagueJrelative
/ia an advertisement in general press
/ia the Internet
Saw it in the travel agent2s window
/ia an advertisement in specialist adventure travel press
!ditorial in pressJT/Jradio
*. #hat impressed you most about the people you bought your last adventure
vacation fromQ
7an&ing for level
of impression
=1 R e"cellent,
; R useless>
7an&ing for
importance of factor
=1 R very high,
; R 3uite
unimportant>

1nowledge of activity


1nowledge of destination


7ange of helpful advice


Bdditional services, such
as insurance

@. #hat did you disli&e most about the last adventure travel vacation that you too&Q
The other people on the vacation were not compatible =e.g. much
older, younger, or had very different competence levels>
Northwind Traders Sample Business Plan (;
Too e"pensive
The travel agentJtour operator did not properly e"plain the true
nature of the vacation
The administrative arrangements were poor + I had to do all the
chasingM
6. #hat was the destination of your last adventure travel vacationQ
!urope Bsia
N. Bmerica ?ther
Bfrica India
<. If you have never ta&en an adventure vacation would you consider ta&ing one from
a reputable travel agent with proven e"pertise in this mar&etQ
%es No
14. -ave you ever been on an adventure vacation organi$ed by your employerQ
%es No
Thank you for your help with our research. We hope this will help Northwind Traders bring
you more exciting adventure vacations.
Northwind Traders Sample Business Plan ()
&nternet 7ro%th an! the Sale of Tra,el Ser,ices
Sales of travel services on the Internet have risen steadily over the past several years and loo& to
continue increasing through the year '444. These sales far outweigh other Internet sales,
including PE sales of software and hardware, clothing sales, and boo& sales. or e"ample, in
1<<6 sales of travel services totaled 51.; billion, while PE products e3ualed 51.4 billion, boo&s
5;44 million, and clothing 5')4 million.
!uropean users of the Internet are growing rapidly. The Fnited 1ingdom is the second largest
Internet user mar&et after ,ermany, followed in decreasing order by the Netherlands, rance,
inland, Italy, and Spain.
Percenta-e of &nternet Users "ho /a,e Shoppe! OnlineB 2<<CB in Millions
#hen it comes to actually using the Internet for online shopping, inland leads the way, with
,ermany and the Fnited 1ingdom sitting s3uarely in the middle, close to the !uropean average.
The percentage of Internet users, by region, who have shopped online in 1<<6 are as follows8
inland + *<O
the Netherlands + ;(O
,ermany + ;1O
Fnited 1ingdom + (6O
Italy + ((O
Spain + (1O
rance + '<O
The average percentage of !uropean Internet users who have shopped online in 1<<6 is ;1
percent.
Northwind Traders Sample Business Plan (*
)PPE$+&' 2: #&$)$C&)6 #OREC)STS
Northwind Traders Sample Business Plan (@
Northwind Traders Sample Business Plan (6
Northwind Traders Sample Business Plan (<
Northwind Traders Sample Business Plan ;4
Northwind Traders Sample Business Plan ;1
Balance SheetB One *ear :?uarterly;
Balance Sheet 8 One *ear :?uart erl y;
*ear 2
?tr 2 ?tr 2 ?tr 4 ?tr 5
)SSETS
Current )ssets
Northwind Traders Sample Business Plan ;'
Eash @6)) '14 '4,@*6 1<,<()
.ar&etable securities 4 4 4 4
Bccounts receivable, net )*44 1*,644 (),6<4 ;),616
Inventory 4 4 4 4
Prepaid e"penses ;44 )() 6() 6()
?ther 4 4 4 4
Total Current )ssets 24B C@@ 2AB @5@ @AB 5<4 DDB @CC
6on-8 Term )ssets
Property, plant, and e3uipment '<,'') '<,'') '<,'') '<,'')
:ess accumulated depreciation =''<*> =;)<'> =*666> =<16)>
Net propert y, plant, and e3uipment '*,<'< ';,*(( '',((@ '4,4;4
?ther long+ term assets 4 4 4 4
Total 6on-8 Term )ssets 2DB <2< 25B D44 22B 44A 20B 050
Total )ssets 50B AC5 52B 2AC A<B C40 CDB D2C
6&)B&6&T&ES )$+ S/)RE/O6+ERSE E?U&T*
Current 6iailities
Short+ term debt 4 4 4 4
Eurrent maturi ties of long+ term debt 4 4 4 4
Bccounts payable )') *;4 @)4 6()
Income ta"es payable 4 4 ()44 <1;'
Bccrued liabilities 4 4 4 4
?ther 4 4 4 4
Total Current 6iailities @2@ D50 52@0 <<AA
6on-8 Term 6iailities
:ong+ term debt less current maturi ties 4 4 4 4
Geferred income ta"es 4 4 4 4
?ther long+ term liabilities 4 4 4 4
Total 6on-8 Term 6iailities 0 0 0 0
Sharehol!ersE E.uity
Eommon stoc& ;1,@)4 ;1,@)4 ;1,@)4 ;1,@)4
Bdditional paid+ in capital 4 4 4 4
7etained earnings =1,;<1> ='1'> ((,6(4 (;,<41
?ther 4 4
Total Sharehol !ersE E.uity 50B 2@< 52B @4C A@B @C0 ADB D@2
Total 6iailities an! Sharehol !ersE E.uity 50B AC5 52B 2AC A<B C40 CDB D2C
Northwind Traders Sample Business Plan ;(
Cash #lo% #orecastB 22 Months
Cash #lo% #orecast 8 22 Mont hs
Month Pre8
Start
2 2 4 5 @ D A C < 20 22 22 Totals
Receipts
Eash sales 14,4'4 14,6)) 1',)') 1;,1<) 1),6*) 16,(@4 '1,@14 ';,'1) '*,;4* '6,646 ((,4** 22DB 04@
Eollections from credit
sales
')1 ;16 )41 )41 )6) @)' @)' 144' 144' 11** D<40
New e3uity inflow 0
:oans received 1*,@44 6()4 6()4 6()4 52B A@0
?ther 0
Total Receipts 0 2DB A00 20B 020 22B 20D 22B 2<4 25B D<D 2DB 4DD 2AB 40@ 22B 5D2 25B <DA 4@B A@C 2<B C20 45B 242 2D5B A2@
Payments
Eash purchases ;41 ('* 1** 1(1 '(@ 1** 1;< 1;< 1** 11( 11( 1*@ 2B2C5
Payments to creditors 1'4( <@6 ;<< (<' @1( ;<< ;;* ;;* ;<< ((< ((< )4( DBC@D
Salaries and wages *(4; )1'4 '*'4 '4)6 (@'6 '*'4 '((* '((* '*'4 1@64 1@64 '*(1 4@B <44
!mployee benefits (1)' ')*4 1(14 14'< 16*; 1(14 11*6 11*6 1(14 6<4 6<4 1(1) 2AB <DD
Payroll ta"es 14)1 6)( ;(@ (;( *'1 ;(@ (6< (6< ;(@ '<@ '<@ ;(6 @<C<
7ent )')( ;'*@ '16( 1@1) (14@ '16( 1<;@ 1<;@ '16( 1;6( 1;6( '1<' 2<B <54
Ftilities 14'1 6(4 ;') ((( *4; ;') (@< (@< ;') '66 '66 ;'* @C24
7epairs and maintenance )6; ;@; ';( 1<1 (;) ';( '1* '1* ';( 1*) 1*) ';; 442<
Insurance 14'1 6(4 ;') ((( *4; ;') (@< (@< ;') '66 '66 ;'* @C24
Travel 1';4 144@ )1) ;4) @(; )1) ;*4 ;*4 )1) ()4 ()4 )16 A0D<
Telephone 14;( 6;@ ;(; (;1 *1@ ;(; (6@ (6@ ;(; '<) '<) ;() @<5<
Postage ;(6 ()6 16' 1;( ')< 16' 1*' 1*' 16' 1'; 1'; 16( 25<<
?ffice supplies <;< @@4 (<; (14 )*1 (<; ()' ()' (<; '*6 '*6 (<* @50C
.ar&eting and advertising *<(6 )*() '66( ''*) ;14( '66( ')@1 ')@1 '66( 1<)< 1<)< '6<) 4<B @5@
Professional fees );(< ;;16 ''*1 1@@* ('1@ ''*1 '41* '41* ''*1 1)(* 1)(* ''@4 42B 00A
Training and development 1@)1 1;'' @'6 )@' 14(* @'6 *;< *;< @'6 ;<; ;<; @(1 <<C2
Ban& charges '* '1 11 < 1* 11 14 14 11 @ @ 11 2@0
.iscellaneous 4 4 4 4 4 4 4 4 4 4 4 4 0
?wnerKs drawings 4 4 4 4 4 4 4 4 4 4 4 4 0
:oan repayments 4 4 4 4 4 4 4 4 4 4 4 4 0
Ta" payments 4 4 4 4 4 4 4 4 4 4 4 4 0
Eapital purchases '),4)4 4 ;1@) 4 4 4 4 4 4 4 4 4 2<B 22@
?ther + database and #eb
site
4 4 4 14,444 4 4 14,444 4 4 '1,(') 4 4 52B 42@
Total Payments 0 D2B CD5 40B A2D 2<B C<2 22B 45D 22B 4DD 2@B A2D 25B 02D 25B 02D 2@B A2D 42B 002 20B DAD 2@B AC2 2CDB 20@
Cashflo%
SurplusF+eficit :8 ;
0 :5DB 2D5; :20B D<D; :CB AC@; :2B 0@4; :AB DA0; D@0 4B2C< CB55D <B2@2 4BA@A 2<B 245 2CB 5@2 :22B 4<0;
Openin- Cash Balance 0 0 :5DB 2D5; :DDB CD0; :A@B D5@; :ADB D<C; :C5B 4DC; :C4B A2C; :C0B 52<; :A2B <C4; :D2B A42; :@CB <A@; :4<B C52;
Closin- Cash Balance 0 :5DB 2D5; :DDB CD0; :A@B D5@; :ADB D<C; :C5B 4DC; :C4B A2C; :C0B 52<; :A2B <C4; :D2B A42; :@CB <A@; :4<B C52; :22B 4<0;
Northwind Traders Sample Business Plan ;;
&ncome StatementB Three *ear Summary
&ncome Statement 8 Three *ear
Summary
*ear 2 *ear 2 *ear 4 Totals
Sales
Sales ',(*;,6(< ),'4',*;) @,)<1,1(' 2@B 2@CB D2D
?ther 0
Total Sales 2B4D5B C4< @B202B D5@ AB@<2B 242 2@B 2@CB D2D
6ess Cost of 7oo!s Sol!
.aterials 0
:abor 0
?verhead 0
?ther ',4<*,4)* ;,)@6,('@ *,*4;,'6* 24B 2ACB DD<
Total Cost of 7oo!s Sol! 2B0<DB 0@D 5B@ACB 42A DBD05B 2CD 24B 2ACB DD<
7ross Profit 2DCB AC4 D25B 42C <CDB C5D 2BCA<B <5A
Operati n- EGpenses
Salaries and wages (*,4@' ;4,)61 )6,11* 245B AD<
!mployee benefits 16,4(* '4,'<1 '<,4)6 DAB 4C@
Payroll ta"es *41' *@*; <*6* 22B 5D2
7ent (4,4*4 (4,4*4 ;4,464 200B 200
Ftilities )6;) )6;) **64 2CB 4A0
7epairs and maintenance ((;4 ((;4 ((;4 20B 020
Insurance )6;) <16) 1*,@44 42B A40
Travel @,4<@ 1@,)() (4,6<) @@B @2A
Telephone )<@4 @<(( 14,6)) 25B A@C
Postage ')4) ;1@) 6()4 2@B 040
?ffice supplies );'6 6()4 1',)') 2DB 404
.ar&eting and advertising (<,@44 (6,;14 )4,144 22CB 220
Professional fees (1,1') 1*,))4 1*,)44 D5B 2A@
Training and development 14,4'4 1*,@44 (),4@4 D2B A<0
Ban& charges 1)4 1)4 '44 @00
Gepreciation <16) <16) <16) 2AB @@@
.iscellaneous 0
?ther 0
Total Operati n- EGpenses 22DB 4<0 24@B 0@5 44AB 450 ACCB AC5
Operati n- &ncome @2B 4<4 4C<B 2D5 D5<B @0D 2B0<2B 2D4
Interest income =e"pense> =6()4> =6()4> =6()4> :2@B 0@0;
?ther income =e"pense> 0
Total $onoperati n-
&ncome :EGpense;
:C4@0; :C4@0; :C4@0; :2@B 0@0;
&ncome :6oss; Before
TaGes
55B 054 4C0B <25 D52B 2@D 2B0DDB 224
&ncome TaGes <1;' @*,16; 1;),@)1 242B 0AA
$et &ncome :6oss; 45B <02 405B A40 5<@B 50@ C4@B 04D
Cumulati ,e $et &ncome
:6oss;
45B <02 44<B D42 C4@B 04D C4@B 04D
Northwind Traders Sample Business Plan ;)
Sources an! Uses of #un!s
Sources an! Use of #un!s
Number of funding rounds e"pected for full financing8 1
Total dollar amount being sought in this round8
56(,)44
SOURCES O# #U$+S
E.uity #inancin-:
Preferred Stoc&8
Eommon Stoc&8
+et #inancin-:
.ortgage :oans8
?ther :ong+ Term :oans8
Short+ Term :oans8
Eonvertible Gebt8
&n,est ment from Principals: 5;1,@)4
USE O# #U$+S
Capital EGpen!i tures:
Purchase of Property8
:easehold Improvements8
Purchase of !3uipmentJurni ture8 5'<,'')
?ther8
"or9in- Capital:
Purchase of Inventory8
Staff !"pansion8 5'4,444
New Product :ine Introduction8
Bdditional .ar&eting Bctivities8 5(;,@44
?ther Business !"pansion Bctivi ties8
?ther8 Gatabase and #eb site 5;1,(')
+et Retirement :
Cash Reser,e:
Northwind Traders Sample Business Plan ;*