Sample Business Plan

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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 '
(r. )ichard *arey
*anton Street
Seattle, #ashington '''''
+ear (r. *arey,
(y attorney, (r. #illiam -ollands, suggested I write to you regarding my business, Northwind
Traders. I am currently see&ing funding, and I believe that my company would coincide with your
interest in businesses relating to the travel industry ma&es my company a great investment for
you.
Northwind Traders is positioned to ta&e advantage of the significant mar&et opportunities available
in the customi$ed travel.planning field. Through a professional approach to mar&eting,
e"perienced management, and an emphasis on outstanding customer support and service,
Northwind Traders can become the /reater Seattle area0s premier provider of planning services
for !uropean adventure travel through a strong mar&eting campaign, e"perienced management,
and an emphasis on outstanding customer support and service. rom that base, the company will
e"pand to become a regional force.
#e are see&ing 123,455 in funding, and anticipate this to be the e"tent of the funds re6uired. The
funds will be used to refurbish the shop, to e"pand the staff, and to developincrease mar&eting
activities, primarily our #eb site and databasee development.
I appreciate your consideration of the business plan for Northwind Traders. I will contact you ne"t
wee& in appro"imately ten days to see if you have any 6uestions andor to discuss how we may
proceed. Than& you.
Sincerely,
-eather (itchell
President
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
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
EXECUTIVE SUMMARY .................................................................................................................................................!
THE COMPANY ......................................................................................................................................................... 6
THE COMPANYS MISSION ........................................................................................................................................ 6
PRODUCTS AND SERVICES ......................................................................................................................................... 6
MARKETING AND SALES TECHNIQUES ....................................................................................................................... 6
THE COMPETITION ................................................................................................................................................... 7
TARGET MARKET ..................................................................................................................................................... 7
OPERATIONS ............................................................................................................................................................ 8
MANAGEMENT ......................................................................................................................................................... 8
FINANCIALS .............................................................................................................................................................. 8
FUNDING .................................................................................................................................................................. !
HISTORY AND POSITION TO DATE ..........................................................................................................................1"
THE COMPANYS MISSION ...................................................................................................................................... 1#
MANAGEMENT TEAM AND KEY PERSONNEL ............................................................................................................ 1#
SERVICES ............................................................................................................................................................... 12
TRANSPORTATION .................................................................................................................................................. 1$
COMPANY HISTORY ................................................................................................................................................ 1$
GUARANTEES AND WARRANTIES ............................................................................................................................. 14
USINESS STRUCTURE ............................................................................................................................................ 14
MARKET RESEARCH ....................................................................................................................................................14
ECONOMIC AND SOCIAL FACTORS ........................................................................................................................... 1%
COMPETITIVE ENVIRONMENT .................................................................................................................................. 1%
LONG"TERM OPPORTUNITIES .................................................................................................................................. 1%
GEOGRAPHIC AREA ................................................................................................................................................ 16
MARKET DESCRIPTION ........................................................................................................................................... 16
TARGET CUSTOMERS .............................................................................................................................................. 17
MARKET DEFINITION .............................................................................................................................................. 17
MARKET OPPORTUNITIES ........................................................................................................................................ 18
COMPETITIVE ANALYSIS ......................................................................................................................................... 1!
COMPETITIVE ADVANTAGES ................................................................................................................................... 22
COMPETITORS POSITIONS ...................................................................................................................................... 22
POTENTIAL FUTURE COMPETITION .......................................................................................................................... 2$
BUSINESS STRATEGY ...................................................................................................................................................23
CUSTOMER INCENTIVES .......................................................................................................................................... 2$
ADVERTISING AND PROMOTION .............................................................................................................................. 24
SALES AND MARKETING ......................................................................................................................................... 2%
COMMISSION .......................................................................................................................................................... 2%
OPERATIONS ...................................................................................................................................................................25
PREMISES ............................................................................................................................................................... 2%
CHOICE OF LOCATION AND PREMISES ..................................................................................................................... 26
HOURS OF OPERATION ............................................................................................................................................ 26
EQUIPMENT ............................................................................................................................................................ 26
STAFFING ............................................................................................................................................................... 26
FORECASTING ................................................................................................................................................................27
SALES FORECAST .................................................................................................................................................... 27
CASH FLOW PRO&ECTIONS ...................................................................................................................................... 28
INCOME STATEMENT .............................................................................................................................................. 28
ALANCE SHEET .................................................................................................................................................... 2!
PERFORMANCE RATIOS ........................................................................................................................................... 2!
REAK"EVEN .......................................................................................................................................................... 2!
FUNDS REQUIRED AND TIMING ............................................................................................................................... $#
FUNDING OPTIONS .................................................................................................................................................. $1
BUSINESS CONTROLS ...................................................................................................................................................31
ACCOUNTING SYSTEM ............................................................................................................................................ $1
QUALITY CONTROL ................................................................................................................................................ $1
NEW TOUR OPERATORS .......................................................................................................................................... $2
CAPACITY .............................................................................................................................................................. $2
LONG"TERM GOALS ............................................................................................................................................... $2
STEPS FOR ACHIEVING GOALS ................................................................................................................................ $2
POSITION ................................................................................................................................................................ $$
RISKS ASSOCIATED WITH GROWTH ......................................................................................................................... $4
APPENDIX 1 MARKET RESEARCH ..........................................................................................................................35
INTERNATIONAL ARRIVALS Y WORLD REGION ...................................................................................................... $%
INDICATIONS OF TOURISM DEMAND IN 1!!7 ........................................................................................................... $6
SUMMARY OF FINDINGS FROM MARKET RESEARCH SURVEY .................................................................................... $7
NORTHWIND TRADERS QUESTIONNAIRE .................................................................................................................. 41
INTERNET GROWTH AND THE SALE OF TRAVEL SERVICES ....................................................................................... 44
APPENDIX 2 FINANCIAL FORECASTS ....................................................................................................................4!
CASH FLOW PRO&ECTION YEAR ONE ....................................................................................................................... 46
INCOME STATEMENT' YEARS ONE TO THREE .......................................................................................................... 48
ALANCE SHEET AT END OF YEAR ONE .................................................................................................................. %1
SOURCES AND USES OF FUNDS ................................................................................................................................ %$
E'ECUT&(E SUMM)R*
The +escription of the Company
Northwind Traders, Inc. provides travel.planning services for !uropean adventure vacations to
residents ofindividuals in the /greater Seattle)edmond area. The service industry, including
travel agencies, is one of the fastest growing business sectorsareas of the economy, and
Northwind Traders intends to capitali$e on the success of this industry by ta&ing advantage of
travel planning opportunities in the Pacific Northwest region.
President -eather (itchell and :ice President of Sales and (ar&eting ;im <im currently hold the
company0s stoc&. Prior to starting the Northwind Traders travel agency, (s. (itchell cofounded,
co.owned, and operated the Northwind Traders clothing store. She has selected a small team with
e"tensive travel, sales, and computer s&ills, all of whom will be invaluable to the new venture. -er
cowor&ers bring a combined total of 34 years of travel industry e"perience to the agency.
President -eather (itchell and :ice President of Sales and (ar&eting ;im <im currently hold the
company0s stoc&.
The Company,s Mission Statement
The mission of Northwind Traders is to become the premier provider of adventure vacations for
'4. to 34. year.old professionals. Northwind Traders is dedicated to building long.term
relationships with customers through 6uality training and customer support, and wants to be
recogni$ed as the leading adventure vacation company in the /greater Seattle)edmond area.
The company0s goal is to grow steadilyy e"pansion, becoming profitable by the secondthird year of
operations.
Pro!ucts an! Ser-ices
Northwind Traders recently became the appointed agents for (argie0s 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 '55 adventure vacations in the past si" months, netting 188,255 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 '
Mar.etin/ an! Sales Techni0ues
Northwind Traders believes that by concentrating on one mar&et segment and one geographic
destination, it will be able to deliver a service that is superior to anything currently on the mar&et.
Published research shows that tourism is a fast.growing business sector and that !urope is the
favored location for most travelers. =dventure vacations, while a relatively new and small mar&et,
loo&s set for e"plosive growth.
In addition to targeting adventure travelers and wor&ing as the appointed agents for established
travel tour firms, Northwind Traders plans to leverage its relationship with its sister business,
Northwind Traders outdoor clothing shop, by offering discount services to shop customers.
The Competition
rom des& and field mar&et research carried out on 355 clients, it is clear that there is
considerable potential in the adventure travel business. )esearch indicates that Northwind
Traders0 target mar&et finds it difficult to obtain reliable and authoritative advice on destinations
and activities. )esearch 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)edmond 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 competition,

ongoing support to clients>
e"tensive &nowledge of the !uropean adventure vacation field>
superior customer service>
speciali$ed training programs for staff> informative #eb site> competitive rates.

informative #eb site
competitive rates
Tar/et Mar.et
rom des& and field mar&et research carried out on 355 clients, it is clear that there is
considerable potential in the adventure travel business. )esearch indicates that Northwind
Traders0 target mar&et finds it difficult to obtain reliable and authoritative advice on destinations
and activities. )esearch 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.
Operations
The Northwind Traders travel agency business will operate from a self.contained facility within the
e"isting clothing shop, with its own shop window and entrance from the main street. The business
will benefit both from its accessible location in the heart of Seattle)edmond0s downtown shopping
district, as well as from the clientele it will gain through its pro"imity to the already established
Northwind Traders clothing store.
Mana/ement
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 34 years of travel industry e"perience to the agency.
#inancial #orecasts
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
1'55,755 profit on sales of 11,71@,455 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 '55 Aachieved over a si".month period with only a part.time
effortB, to at least 885 in the first year, 1755 in the second, and '155 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 reach cash flow brea&.
even in %ear Cne, while ma&eing a modest profit in %ear Cne. By the %ear Two postta" profits
should be 13575,5855, and will increase to nearly 17@8451,555 by %ear Three.
#un!in/#inancin/ Re0uirementss Sou/ht an! Utili1ation
(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 171,945 of her own money in the
business, and see&ing 123,455 from outside sources. )eturn on shareholders capital by %ear
Three is proDected to be close to 155 percent. The purpose of the business plan is to
communicate this highly profitable opportunity to (s. (itchell0s partners in the clothing shop and to
outside investors, and to attract interest in the venture.
=lternatively, (s. (itchell is considering loan finance made up of a 171,945 two.year loan and a
credit line of 142,745. In total, about 11'4,'45 will be needed to fund the business during the
initial months.
2&STOR* )$+ POS&T&O$ TO +)TE
Northwind Traders, Inc. provides travel.planning services to individuals and businesses in the
/greater Seattle)edmond area. The business is located at 1'37 ran&lin Street,
Seattle)edmond, #ashington.
The Company,s Mission
The goal of Northwind Traders is to be the leading provider of hassle.free !uropean adventure
vacations to the '4. to 34.year.old business professional mar&et. Initially operating in the
Seattle)edmond area inoutside of Seattle, #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 '555, the value of this mar&et is
estimated at 17.455( billion Asee =ppendi" 1, Internet /rowth and the Sale of Travel ServicesB.
Cur emphasis will be on providing a complete speciali$ed service based on having a detailed
&nowledge of the vacation destination and adventure activities being offered. (ar&et research
indicates that the maDor criticism our type of client has of e"isting travel agencies is that their
agents E&now nothing about their products, they Dust open the catalogue and read,F to 6uote one
of many disappointed travelers.
By capitali$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 e6uipment they will need to get the very best out
of their vacation.
Mana/ement Team an! 3ey Personnel
-eather (itchell, President and *!C. 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 Clympia 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 Gniversity.
In addition to (s. (itchell, team members ;im <im and )ichard Bready will be moving into the new
venture on a full.time basis, and =my !gert has been recently recruited to cover Saturdays and
vacations. reelance business consultant ;ae Pa& will be advising during the business0s
changeover from clothing shop to adventure travel agency.
;im <im, :ice President Sales and (ar&eting. Prior to Doining Northwind Traders, (r. <im wor&ed
for the mar&eting department of a maDor airline. -is current responsibilities include the company0s
direct mar&eting campaign and all sales.related issues.
)ichard Bready, Cffice (anager. Twenty years as a travel agent has given (r. Bready the ideal
bac&ground for Northwind Traders. = &nowledgeable salesperson, (r. Bready0s e"pertise in the
area of !uropean travel enables him to entice the adventure traveler.

=my !gert, Sales =ssistant. =fter completing her undergraduate degree at the Institute of =rt, (s.
!gert spent a year traveling abroad and Doined the staff at Northwind Traders recently as a sales
assistant.
;ae Pa&, Business *onsultant. #ith over '5 years of consulting e"perience in industries ranging
from aerospace to technology to retail, (r. Pa&0s &nowledge and guidance will be instrumental to
the success of Northwind Traders.
The volunteer members of the Board of +irectors 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 ;acobson, retail store owner
-olly Barrett, *P=
;o Brown, former travel agent
#illiam -ollands, lawyer
?isa /armaise, retail store owner
Tony *hor, human resource manager
Prasanna Samarawic&rama, caterer
Ser-ices
#e are currently the appointed agents for (argie0s Travel, a maDor supplier in the mar&et.
*urrently, (argie0s Travel offers some 75 different adventure vacation pac&ages throughout
!urope, including horse tre&&ing in Iceland> above.the.clouds tre&&ing on islands and in remote
regions in such areas as *orsica and Norway> van.supported inn.to.inn bicycling> mountain bi&ing
and hi&ing adventure tours throughout rance, /ermany, Italy, and =ustria> and ballooning across
the =lps.
#e intend to be appointed agents by three other maDor adventure travel tour firms with whom we
are currently in negotiation,
!nchantment ?a&es *orporation. Cffers rafting, sea &aya&ing, and yachting trips around remote
!uropean rivers and coastline areas, covering such areas as the =driatic, the Blac& Sea, and
Tur&ey.
#est *oast Sales. Cffers 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 =ir. Speciali$es in adventure vacations in !astern !urope and former Soviet countries,
covering Bulgaria, )omania, Poland, and ?atvia.
These are three relatively new and small tour operators, but they have ac6uired 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, enDoyable, 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 Systems
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
Northwind Traders Sample Business Plan @
general travel industry. The feeling we are loo&ing for is definitely not that which is engendered by
the bac&pac&er mar&et.
Company 2istory
ive years ago -eather (itchell cofounded Northwind Traders, an outdoor clothing shop in
Seattle)edmond, #ashington. Cver 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 11,7'5,555 per year Asee Table 1B,
ma&es a gross profit of 1'5',755, and employs seven people, either full. or part.time. = mail.
order service is now provided by catalogue and via a new #eb site.
Tale 45 $orth%in! Tra!ers Clothin/ Shop Performance O-er Past #i-e *ears
%ear 4 2 6 7 8ast *ear
Sales 1123,955 17'',415 188@,895 11,5'3,915 11,7'1,195
/ross Profit 18',8'4 1189 1155,951 1133,85' 1'51,@18
Increasingly, shop customers have as&ed for advice on adventurous places to go on vacation.
?ast year Northwind Traders ac6uired an agency from (argie0s Travel, one of the largest and
most respected tour operators in this mar&et, and began to promote and sell their products.
In the si" months that we have been selling travel agency products, some '55 vacation pac&ages,
at an average cost of 13375, have been sold. Northwind Traders0 commission on the sales has
been 188,255 A15 percent commissionB. In addition, 34 insurance policies have been sold at an
average price of 1189, yielding 11947 A35 percent commissionB.
-eather (itchell, one of Northwind Traders0s founding partners, intends to sell her shares in the
store and to concentrate on setting up the new travel business, Northwind Traders.
9uarantees an! "arranties
Cur clients will be protected financially against either our own or our tour operator0s failure, by
virtue of the =)* bonding held by our principals. #e will only use vacation providers who can
provide '7.hour emergency support services for clients while on vacation.
Business Structure8e/al Status
Northwind Traders is incorporated under the laws of the state of #ashington. The company has
authori$ed 15,555 shares, 8555 of which are owned by President and *!C -eather (itchell. :ice
President of Sales and (ar&eting ;im <im owns 1555 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 re6uired when the business starts to grow.
=t a later stage the business may wish to sell and issue airline tic&ets and to create its own charter
vacations. This will re6uire membership in the =)* A=irline )eporting *orporationB and I=T=N
AInternational =irlines Travel =gency Networ&B. These organi$ations regulate the collection of
money and distribution to the appropriate airlines. -owever, in the period covered by this
Business Plan we intend to operate only as the appointed agents for a number of tour operators.
=s such we can EshelterF under their licenses and bonds.
M)R3ET RESE)RC2&$+USTR* )$)8*S&S
+uring the current period of strong economic growth, Northwind Traders can capitali$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 today0s economic boom. These services are
proDected to grow at an average annual growth rate of 7.1 percent over the period from 1@@5 to
'515 A=ppendi" 1B. The travel and tourism industry thrives in a vital economy.
The general economic climate in the city of Seattle)edmond is very strong. =n influ" of new
businesses has added to the area0s prosperity, and the already large population of young
professionals is growing. Nearby, tThe city of Seattle is the center for business in <ing *ounty,
with over 755,555 people employed in industries such as aerospace, transportation e6uipment,
health services, tourism, computer software, and biotechnology.
Competiti-e En-ironment
*urrently, tThe 6ualitylevel of service and the number of providers in the travel industry constantly
fluctuatebroadly uneven, and providers enter and leave the field rapidly. Cur 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.
8on/:Term Opportunities
Tourism in general is on the rise A=ppendi" 1B, !urope loo&s li&e it will continue to be the maDor
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. Cther driving forces for
travel will include the cost of tic&ets, fuel prices, the threat of terrorism, and currency rates.
Northwind Traders *an +evelop Strong Position in )egion
The current lac& of industry leaders in the !uropean adventure travel industry represents an
e"ceptional opportunity for Northwind Traders to develop a dominant presence in the !uropean
adventure travel industry in the /greater Seattle)edmond 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 region0s current economic prosperity.
T=)/!T (=)<!T =N=?%SIS
9eo/raphic )rea
Northwind Traders is basedoperates in the Seattle)edmond, #ashington, area, and targets
individuals interested in adventure vacations in !urope. The region comprisesgeographic area
includes the incorporated cities ofof )edmond, Bellevue, and Tacoma and the encompassing
counties of <ing, Snohomish, and Pierce.
)edmondSeattle
Bellevue
Tacoma
and the encompassing counties of
Northwind Traders Sample Business Plan 1'
<ing
Snohomish
Pierce
Mar.et Si1e an! +escription
The /greater Seattle areaIincluding all of <ing, Pierce, and Snohomish countiesIis home to
appro"imately 3 million people A1@@7 figureB, half of whom fall within our target mar&et. Seattle0s
Dob rate is climbing at a rate of 15 percent each year, and new Dobs and growth are e"pected
through the year '559. Seattle has become a world.class destination, and the downtown retail and
shopping core has grown steadily over the last decade. The following maDor facilities reside in the
/greater Seattle area, an international airport, several maDor medical centers, and a state
university, and four other colleges and universities.
The percentages of employment by industry are as follows, '2 percent services, '4 percent
wholesale and retail, 18 percent manufacturing, 17 percent government, 8 percent transportation
and communication, 8 percent finance and insurance, and 4 percent construction.
Tar/et Customers
SeattleJ<ing *ountyKs 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 uni6ue environmental
6ualities attract people. Both public officials and business leaders recogni$e the need to &eep our
labor force well e6uipped with mar&etable s&ills.
rom within this population, our target customers are individuals who are professionals with
incomes of 175,555L,, ages '4 to 34, with incomes of 175,555L, single or married, without
children, and college educated.
Mar.et +efinition
The world travel mar&et is forecast to e"pand at a 7.1 percent average annual growth rate until
'515. This is faster than the general economic growth rate, which is e"pected to be around '.7
percent per year.
The !uropean mar&et, while not the fastest growing, will be the most important destination,
accounting for over 45 percent of all international arrivals Asee =ppendi" 1B. #ithin !urope,
rance, Italy, and Spain are the most popular destinations. This is why we have selected tour
operators with appropriate products in these areas as our initial partners.
igures for the si$e and proDected growth of adventure vacations are s&etchy, but the figures from
one recent study A#orld =dventure Travel +ata *orp.B are in Table '.
Tale 25 )!-enture Tra-el (acations : "orl! forecast ;Million )rri-als<: 4==0 : 2040
+estination 4==0 1##7 2006 2040
!urope 5.'4 5.85 1.85 '.34
N. =merica 5.74 5.85 1.75 '.'5
)est of #orld 5.15 5.'4 5.@4 1.15
Total 5.25 1.74 3.@4 4.84
)/e 4==0
>
2040
>
18 . '7 81 32
'4 . 34 '5 31
38 . 74 14 '4
78L 7 8
155 155
Source, #=T+ *orp. 1@@9
Mar.et 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. Cur speciali$ed &nowledge of !urope and adventure travel will allow us both
to satisfy our customers and to surpass the services offered by our competitors.
Cur mar&et study Asee =ppendi" 1B has shown that theis group composed of affluent professionals
has specific needs that are not currently being met, as 84 percent of those planning vacations
would not purchase them from the same source againM Specifically, they want their travel agent to
have comprehensive &nowledge of the destination A29 percentB> to have an efficient administration
system in which they can have confidence A27 percentB> to go on vacation with similar professional
people A21 percentB> and to be offered useful advice and ancillary services such as insurance A9@
percentB.
In addition, our mar&et study confirms that !urope is li&ely to be the largest destination mar&et for
adventure vacations. Cur study shows only 35 percent of adventure travelers to be under '7
years of age, while the #orld =dventure Travel +ata study claims 81 percent is under '7. #e feel
the difference is because our survey sample is confined to relatively affluent people who had
spent at least 1345 on adventure clothing Asee =ppendi" 1B.
Cne further emerging mar&et segment for adventure vacations is that of corporate clients. Cur
research suggests that up to one in five adventure vacations is at this top price end of the mar&et.
Competiti-eOMPET&T&(E )nalysis$)8*S&S
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
secondary cities such as )edmondSeattle, Bellevue, and Tacoma that compete with Northwind
Traders to provide adventure vacation pac&ages. These agencies are described below,

/eneral Travel =gents
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. =ccording to our mar&et study, 75 percent of
adventure vacations are boo&ed through these general travel agents, but only a third of clients
would use them again.
=dventure Tour Cperators
These tour operators who advertise their vacations in the press attract about a 6uarter of all
adventure vacation clients. -owever, clients have to shop around several tour operators to
find what they want, and clientsthey cannot get unbiased advice or much help with information.
Cnly 74 percent would go bac& to a tour operator for their ne"t vacation.
Independent Travelers
These travelers comprise about 14 percent of those going on adventure vacations, of whom
84 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 4 percent of adventure travel vacations> however, 95 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 =dventure Travel =gencies
These agencies sell only about 14 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. *lients will return for our service, &nowledge and
competitive prices.
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. =nd t=lthough specialist adventure travel agents,
such as the business we are setting up, account for only 14 percent of the mar&et, 84 percent of
clients would use them again. #e aim to increase this percentage through our superior service.
Competiti-e )!-anta/es
Some 84 percent of those clients using specialist adventure vacation travel agents would use
them againImany more than would use either a direct tour operator direct or a general travel
agent.
-owever, these agents were critici$ed for having such a wide range of activities and destinations
that their sales agents &new little about them. Cur research shows that while 71 percent of clients
ta&e adventure vacations in !urope, only '3 percent of the 4555 adventure tours offered are for
!uropean destinations.
#e feel that by concentrating on !uropean destinations, which is the largest mar&et for both
vacations in general and adventure vacations in particular, we will be able to have superior
product &nowledge. #e will need to &now only perhaps 155 destinations and activities well, rather
than have only a passing &nowledge of the 4555 adventure vacations available.
Cur mar&et research has also shown that many adventure travel agents are catering to the
bac&pac&er mar&et, consisting mostly of individuals who are under '7 years of age and are
generally very cost conscious. This can lead to very different types of clients ending up at the
same destination, with some conse6uent dissatisfaction. It is also noteworthy that t The
bac&pac&er mar&et re6uires a much lower level of service and information than does the mar&et
for the more affluent '4. to 34.year.old professional. '4H34 year old mar&et.
Competitors, Positions
The two maDor competitors of Northwind Traders are ?a&es N Sons and erguson and Bardell, and
?a&es N Sons. erguson and Bardell is the strongest competitor of Northwind Traders, due to its
strong client base and e"perienced owner. -owever, itstheir press releases are of a very low
6uality, and itstheir location is undesirable, with difficult par&ing and limited customer service
space. In addition, erguson and Bardell lac&s the &nowledge and e"pertise in the field of
!uropean adventure travel that is valued so highly by the clientele of Northwind Traders.
?a&es N Sons will be a formidable competitor for Northwind Traders because of itstheir prime
location, well.established business, and e"tensive training program.
Potential #uture Competition
Northwind Traders will occupy a speciali$ed niche in the travel industry, with its focus on
adventure vacations in !urope. =lthough they areit is currently the only !uropean adventure
travel agency located in the Seattle)edmond area, there are competitors do e"ist in nearby areas
Asee aboveB. 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.6uality
service. The lac& of current adventure travel providers in the area represents a uni6ue opportunity
for Northwind Traders to e"pand in a rapidly growing mar&et.
BUS&$ESS STR)TE9*M)R3ET&$9 ? S)8ES P8)$$&$9
#ith Northwind Traders0 e"pertise in !uropean adventure travel, we can create customi$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
Cur mar&et research shows that publicity has the greatest impact on people0s 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. ASee =ppendi" 1, Summary of indings from
(ar&et )esearch.B
)!-ertisin/ an! Promotion
Cur advertising and promotions will pivot around si" &ey strategies, public relations, our shop front,
an Internet #eb site, customer relations, press advertising, and our association with the Northwind
Traders clothing store.
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 employuse a freelance 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. +ifferent destinations can
be selected from outside the window via a control panel>, otherwise, the scenes will rotate on a
random basis.
Internet #eb site. This is fast becoming a maDor promotional channel, and we believe it will
increase in importance over time. =lso, it is the most convenient way for us to have a global
presence at the outset. ASee =ppendi" 1, Internet /rowth and the Sale of Travel Services.B
*ustomer relations. #e will &eep records of every sales contact. +ata such as source of in6uiry,
client needs, previous vacation, Dob, and income will be included. By having superior information
on our clients and prospects, we intend to offer a truly personali$ed service. Cur 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 specialist 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! Mar.etin/
!"cellent selling s&ills are vital in our type of business. Therefore, everyone will be fully trained in
sales. =dditionally, every month we will EauditF each other by observing half.a.day0s selling activity
and giving feedbac& on strengths and wea&nesses in s&ills.
#e will also be using a Econtact managementF 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 15 percent to 14
percent range. #hile (argie0s 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. =ccordingly, we are
Northwind Traders Sample Business Plan 1@
planning on an average travel agency commission of 11 percent, rising to 13 percent by the end of
%ear Three. *ommission on insurance and other services will be 35 percent, throughout.
/uarantees and *ustomer Protection
Cur clients will be protected financially against either our own or our tour operator0s failure, by
virtue of the =)* bonding held by our principals. #e will only use vacation providers who can
provide '7.hour emergency support services for clients while on vacation.
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 '555 s6uare meters of fully serviced space at a cost of
135,585 per year fully serviced. #e will need to spend 1'4,545 on internal refurbishing. #e plan
to do some of this wor& ourselves. =n additional 17194 will be needed for des&s, chairs, and other
office furnishings.
Choice of 8ocation an! Premises
#e intend to locate within the e"isting Northwind Traders shop, sinceas 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.
Openin/ 2ours of Operation
The telephone lines will be staffed '7 hours a day by live operators. +uring the period from @ am
to 8 pm, this will be done mostly by our staff. -owever, overload calls during the day and afterout.
of.hours calls will go to our live telemar&eting bureau. People consider vacation decisions at home
in 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.
Northwind Traders Sample Business Plan '5
E0uipment
#e will be renting an integrated telephoneJdata.base 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.
=s 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 Dob descriptions, a career and training history file, and a record
of employee reviews.
New staff will ta&e the travel agency Psychometric =ptitude Test, and then spend time with each
member of the Northwind Traders team.
=ll staff will undergo full product training, and will spend at least four wee&s a year on.site at &ey
travel destinations.
Cur dress code will re6uire 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.
"ith this system %e can re-ie% our sales an! mar.etin/ acti-ities on
a re/ular asis5 Thus %e %ill e ale@uality Control
#e will be developing outline scripts to help the sales staff manage in6uiries.
This will ensure that all incoming phone calls are dealt with in the same way
and meet a high standard.
#e will encourage people in6uiring about vacations to give us feedbac& on,
Cur ability to handle their in6uiry
The amount of time from the client0s first in6uiry to the date of actual travel
The client0s reactions to the vacation in terms of whether it meets their
e"pectations
$e% Tour Operators
-eather (itchell will be responsible for reviewing the range of tour operators
that we see& to represent, and negotiating with prospective new principals.
Capacity
Cur offices can accommodate five sales des&s. !ach sales des& has a
capacity to handle four clients per hour, which means over the year we could
handle up to 75,555 in6uiries. #ith our average sales rate of one in five, we
could service @855 clients from our present facilities. This is well above the
numbers we are anticipating in the business plan.
M)$)9EME$T ? OR9)$&A)T&O$
Northwind Traders Sample Business Plan ''
3ey Employees
-eather (itchell, President and *!C. Before founding Northwind Traders, (s.
(itchell owned and operated Northwind Traders, an outdoor clothing
shop in the )edmond area. Prior to that, she managed the Clympia
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 Gniversity.
In addition to (s. (itchell, team members ;im <im and )ichard Bready will be
moving into the new venture on a full.time basis, and =my !gert has been
recently recruited to cover Saturdays and vacations. reelance business
consultant ;ae Pa& will be advising during the business0s changeover from
clothing shop to adventure travel agency.
;im <im, :ice President Sales and (ar&eting. Prior to Doining Northwind
Traders, (r. <im wor&ed for the mar&eting department of a maDor airline. -is
current responsibilities include the company0s direct mar&eting campaign and
all sales related issues.
)ichard Bready, Cffice (anager. Twenty years as a travel agent has given (r.
Bready the ideal bac&ground for Northwind Traders. = &nowledgeable
salesperson, (r. Bready0s e"pertise in the area of !uropean travel enables him
to entice the adventure traveler.

=my !gert, Sales =ssistant. =fter completing her undergraduate degree at the
Institute of =rt, (s. !gert spent a year traveling abroad and Doined the staff at
Northwind Traders recently as a sales assistant.
;ae Pa&, Business *onsultant. #ith over twenty years of consulting e"perience
in industries ranging from aerospace to technology to retail, (r. Pa&0s
&nowledge and guidance will be instrumental to the success of
Northwind Traders.
A-eather (itchell0s *: is in =ppendi" 3B
Boar! of +irectors
The volunteer members of the Board of +irectors 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 ;acobson, retail store owner
-olly Barrett, *P=
;o Brown, former travel agent
#illiam -ollands, ?awyer
?isa /armaise, retail store owner
Tony *hor, human resource manager
Prasanna Samarawic&rama, caterer
8on/:Term 9oals
Northwind Traders plans to grow steadily over the ne"t five years, becoming
the premier provider of !uropean adventure vacations in the greater )edmond
area. Cur financial obDectives are to be operating at or close to brea&.even
cash flow by the end of the first year. #e aim to be profitable from %ear Cne
onward> our goal is to earn at least 1355,555 post ta" profit in the %ear Two,
and nearly 1455,555 in %ear Three. Cur profit margin on sales by %ear Three
will be a respectable 9 percent.
Strate/y for )chie-in/ 9oals
!"tensive public relations campaign
)ecruit well.trained, enthusiastic staff
+eliver superior product &nowledge
Provide high 6uality customer service
*reate library of toolsJreference materials for clients
Cffer competitive pricing on vacation pac&ages
The first priority is to hire a competent public relations consultant. This
individual 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 priority 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 enDoyable atmosphere.
The third priority 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
Echec& outF and peruse at home. =n agent will be on hand at all times to
answer any 6uestions.
Position
#hile at present we are offering only other company0s adventure vacations, we
have protected our position in a number of ways.
irst, we have a two.year agency agreement with (argie0s 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 '45
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.
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. *ustomer loyalty is vital to our profitable growth.
Ris.s )ssociate! %ith 9ro%th
?osing touch with customers
?oss of clientele to other providers
Ouality of services diminished
New businesses
The ris&s facing the e"pansion of Northwind Traders can be summed up in one
word, competition. In order to sustain our position in the area as the premiere
!uropean adventure travel business, Northwind Traders needs to outshine our
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.
#OREC)ST&$9
Sales #orecast
Cur ratio of sales to in6uiries ofn 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 in6uiries 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 Asee Table 3 belowB. -owever, the number of new in6uiries generated by our
promotional activity will also build up during the year, gradually overta&ing in6uiries from the
clothinges shop. This is a trend we e"pect to continue. Based on the proDection below, we are
forecasting to sell 885 adventure travel vacations ne"t year at an average price of 1347@. Cnce
insurance and other service sales are added in, we e"pect to generate a gross profitn income of
1'82,923 over the first 1' months.
Tale 65 Sales #orecast ProBection
@4 @2 @6 @7 *ear
Total
In6uiries
generated through
promotion
'55 7'4 7'4 945 1255
Shop in6uiries 355 355 745 745 1455
Total in6uiries 455 9'4 294 1'55 3355
:acations sold 155 174 194 '75 885
=verage vacations cost

13375 13375 13942 13942 1347@
*ommission received 133,755 172,735 19',331 1@2,949 1'4',@12
*ommission on insurance
N other services received
11895 13375 14515 14274 114,284
Total commission N fees
earned
134,595 141,995 199,371 1157,85' 1'82,923
In %ear Two we are forecasting a gross profitcommissions of 18'7,312, and in %ear Three we plan
to reach 1@28,278.
Cash #lo% ProBections
The *ash low proDections for %ear Cne Asee =ppendi" 'B show that after the owner has put in
171,945, the business will need additional short.term financing of about 123,455. or the last two
months of the year, we are forecasting a positive cumulative cash flow and a year.end cash
surplus of 11@,@34.
In our *ash low proDection, we have assumed the whole 123,455 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 e6ual to the money
actually re6uired. 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 137,@51 in the first year of 137,@51 Asee =ppendi" '
and Table 7 belowB. This is before the owner0s drawings. =ny owner0s drawings will be contingent
on performance being better than that e"pected in the Plan.
Tale 75 Profits in *ears One to Three %ill e
Northwind Traders Sample Business Plan '@
*ear One *ear T%o *ear Three
Sales ',387,23@ 4,'5',874 9,4@1,13'
?ess cost of sales ',5@8,548 7,492,3'9 8,857,'28
/ross profit '82,923 8'7,312 @28,278
?ess e"penses ''7,975 '73,75 7 3 374,8@5
Net income before
ta"es
77,573 325,@174 871,148
Provision for ta"es @17' 98,127 174,941
Net income after
ta"es
137,@51 1357,9351 17@4,754
Balance Sheet
The Balance Sheet at the end of %ear Cne Asee =ppendi" 'B 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 Cne, to 13 percent in %ear Three.
These figures loo& 6uite low, but it should be remembered that our gross profitincome is really the
sales commission we earn, not the full price of an adventure vacation. Cur 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 2 percent by %ear Three. *ommission generated and profit per employee will be
among the highest in the industry.
Tale C5 Commission 9enerate! an! Profit per Employee
*ear One *ear T%o *ear Three
/ross profit P 11 1' 13
Net income before
ta"es P
' 9 2
*ommission
generated per
employee
198,9@4 1132,939 1187,793
Profit per employee 11',427 18@,'49 1158,242
Brea.:E-en
To brea& even we will need to sell between ' and 3 vacations per day. This compares with our
present sales of 1.3 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 Re0uire! an! Timin/
#e plan to ma&e two maDor investments, one in #eb site and database development and one in
shop premises development.
ma&e are the,
#eb site and data base development . this will cost 171,3'4945. The data base system is
one of our &ey differentiators. It will allow us to offer superior service and ensure a high level
of repeat 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&etI, affluent, professional '4. to 34. year
oldsI, are 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. ASee =ppendi" 1, Internet
/rowth and the Sale of Travel Services B
Shop premises development . this will cost us 1'@,''4. #e have to loo& professional and to
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 EamateurF 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, sinceas this is a rapidly changing
area and we need to have access to the very latest technology. inancing pac&ages from
e6uipment suppliers are currently very attractive.
#un!in/ Options
The owner plans to invest 171,945 of her own money Athe proceeds of the sale of her share of the
clothing shop businessB. The cash flow proDections show that the business will re6uire 123,455 of
wor&ing capital during the early months of the first year0s operations. #e thin& we should provide
an additional 115,5'5 for unforeseen eventualities. #e are considering In the event that
additional funds prove necessary, we have identified two options for raising further fundsthis
1@3,4'5,

Option 4: The sale of e6uity, perhaps to the original shop partners, could raise between 171,945
and 1189,555. This would provide some capital to allow for growth. =ny shortfall could be funded
either by a line of credit or a ban& loan.
Option 2, =pproach our ban& with a view to raising a medium. term loan of 171,945 and a line of
credit of 142,745. -eather (itchell could, with family help, provide any lender with security for part,
if not all, of this facility.
inancial
#e will be using a computer.based financial management system. This will allow us to analy$e
the profitability of sales of different vacations through each tour operator.
In this way we can review our sales and mar&eting activities on a regular basis. It will also allow us
to reward staff on the basis of profit achieved rather than Dust on sales.
BUS&$ESS CO$TRO8S
)ccountin/ System
#e will be using a computer.based financial management system. #ith this system we can review
our sales and mar&eting activities on a regular basis. This will allow us to analy$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 Dust on sales.
@uality Control
#e will be developing outline scripts to help the sales staff manage in6uiries. This will ensure that
all incoming phone calls are dealt with in the same way and meet a high standard.
#e will encourage people in6uiring about vacations to give us feedbac& on our service,
Cur ability to handle their in6uiry
The amount of time from the client0s first in6uiry to the date of actual travel
The client0s 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
Cur 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 75,555 in6uiries.
#ith our average sales rate of one in five, we could service @855 clients from our present facilities.
This is well above the numbers we are anticipating in the business plan.
8on/:Term 9oals
Northwind Traders plans to grow steadily over the ne"t five years, becoming the premier provider
of !uropean adventure vacations in the /reater Seattle area. CurThe financial obDectives 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 Cne onward>
our goal is to earn at least 1357,555 postta" profit in %ear Two and nearly 17@8,555 in %ear
Three. Cur profit margin on sales by %ear Three will be a respectable 9 percent.
Steps for )chie-in/ 9oals
Northwind Traders0 strategy for achieving our goals consists of si" maDor points,
!stablish an e"tensive public relations campaign
)ecruit well.trained, enthusiastic staff
+eliver superior product &nowledge
Provide high.6uality customer service
*reate a library of toolsJreference materials for clients
Cffer 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
enDoyable 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 Echec& outF and peruse at home. =n agent will
be on hand at all times to answer any 6uestions.
Position
#hile at present we are offering only other company0s adventure vacations, we have protected
our position in a number of ways.
irst, we have a two.year agency agreement with (argie0s 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 '45 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.
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. *ustomer loyalty is vital to our profitable growth.
Ris.s )ssociate! %ith 9ro%th
#e see some ris&s associated with our e"pected growth,
?osing touch with customers
?oss of clientele to other providers
Ouality of services diminished
New businesses
The ris&s facing the e"pansion of Northwind Traders can be summed up in one word, 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.
)PPE$+&' 4: M)R3ET RESE)RC2
&nternational )rri-als y "orl! Re/ion
Up!ate! forecast for the years 2000 an! 2040 ;millions<
1@94 1@@4 1@@8 '555 '515
=verage annual
growth rate APB
1@@5 . '515
!urope 143.2 332.' 379.7 3@9 4'4 3.1
!ast =siaJPacific 2.9 27.4 @5.1 1'' ''@ 9.8
=mericas 45.5 115.1 114.4 132 1@4 3.9
=frica 7.9 12.9 1@.7 '4 39 7.8
(iddle !ast 3.8 11.3 14.1 17 '1 7.@
South =sia 1.8 7.4 7.4 8 11 8.9
#orld total '''.3 489.7 4@'.1 95' 1,512 7.1
Source, /lobal Stats. *orp. 1@@9
&n!ications of Tourism +eman! in 4==D
International
tourist arrivals
A" 1,555B
Nights spent by
foreign tourists
A(illB
International
tourism receipts
A(ill. !*GB
=ustria 19,193 83.2 11,182
Belgium 4485 1'.2 7998
+enmar& 1817 15.2 '217
inland 234 3.3 13'5
rance 85,115 47.3 '5,97'
/ermany 17,279 34.4 1',752
/reece 15,135 3@.8 3132
Ireland 7'31 17.5 '54@
Italy 31,54' 113.5 '5,@@3
?u"embourg 989 '.3 7998
Netherlands 8497 1@.9 7@78
Portugal @958 ''.' 3335
Spain 77,228 159.2 1@,731
Sweden 823 9.@ '84'
Gnited <ingdom '',955 187.@ 17,388
!G '35,282 89'.5 1'7,173
Iceland 1@5 5.2 1'9
?iechtenstein 4@ 5.1 nJa
Norway '225 9.1 12'8
!!= '33,@@9 825.5 1'8,5@8
Swit$erland 11,455 37.5 9'38
!urope.1@ '74,7@9 917.5 133,33'
Source, /lobal Stats. *orp. 1@@9
Summary of #in!in/s from Mar.et Research Sur-ey
Three hundred clients of Northwind Traders who had made purchases in e"cess of 1345 in the
past si" months were surveyed.
Percenta/e of Sample Customers Ta.in/ an! $ot Ta.in/ )!-enture (acations
=ccording to our research, only '5 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 travelersusers, ta&ing at least one adventure vacation each year.
&nformation )out 4C0 Respon!ents "ho Too. )t 8east One tra-el (acation Per *ear
/ender, (ale 84P emale 34P
Status, (arried '1P Single 9@P
)!-enture (acation Tra-elersE y )/e an! Percent
=ccording to our study, the percentages of adventure vacation travelers in fall into various age
groups as follows,
4P are under the age of 18
'4P are between the ages of 18 toand '7
75P are between the ages of '4 toand 34
'5P are between the ages of 38 toand 74
15P are over the age of 74
Percenta/e of )!-enture (acation Tra-elers y &ncome 9roup
=ccording to our research, the percentages of adventure vacation travelers in various income
brac&ets are as follows,
8P earn less than 118,955 or less annually
''P earn between 118,951 and 1'4,545 annually
'2P earn between 1'4,541 and 133,755 annually
'4P earn between 133,751 and 171,945 annually
1@P earn more than 171,945 annually
orty.five percent of respondents ta&ing adventure vacations spend in e"cess of 13375 per
person per vacation. Twenty percent of the respondents, who tend to be professionals in the '4.
to 34.year age range, typically spend over 14515 per person. Those respondents spending under
13375 are both in the lower income and lower age groups and represent 15 percent of the
respondents.
Percenta/e y +estination of C000 MaBor )!-enture Tours )-ailale on the Mar.et
= study by destination of appro"imately 4555 maDor adventure tours on the mar&et reveals the
following,
1'55 of the 4555 offered are for destinations in !urope
1555 of the 4555 offered are for destinations in North =merica
855 of the 4555 offered are for destinations in India
215 of the 4555 offered are for destinations in =frica
894 of the 4555 offered are for destinations in the ar !ast
894 of the 4555 offered are for other destinations
By contrast, the percentages of the mar&et adventure travelers devoted purchasing vacation
pac&ages to each of these regions destinations is are as follows,
!urope . 71P of adventure travelers purchase vacation pac&ages for destinations in !urope
North =merica . 35P of adventure travelers purchase vacation pac&ages for destinations in
North =merica
India . 15P of adventure travelers purchase vacation pac&ages for destinations in India
=frica 9P of adventure travelers purchase vacation pac&ages for destinations in =frica
ar !ast . 9P of adventure travelers purchase vacation pac&ages for destinations in the ar
!ast
other destinations . 4P of adventure travelers purchase vacation pac&ages for destinations in
other regions
Cur research shows that !urope is the most popular destination for adventure vacation
travelersa&ers. -owever, only 1'55 of the 4555 adventure tours on the mar&et are for !uropean
destinations. =frica, which only attracts 9 percent of the mar&et, has 18 percent of the tours aimed
at it. It 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
4555. In that way we can have the advantage of superior &nowledge in our chosen mar&et.
Percenta/e y Source from %hich Tra-eler 2ear! )out 8ast )!-enture (acation
Cur research reveals the following about the source from which adventure travelers originally
found out about the last adventure vacation they purchased,
publicity activity . 35P heard about their vacation pac&age through publicity activity
travel agent . '4P heard about their vacation pac&age through a travel agent
friend . 12P heard about their vacation pac&age through a friend
adventure press . 14P heard about their vacation pac&age through adventure press
press advertising . 2P heard about their vacation pac&age through press advertising
Internet . 7P heard about their vacation pac&age through the Internet
These findings demonstrate the power of publicity. The ne"t most effective way to reach potential
clients is via the travel agent0s 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 percentagemaDority 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 a part of a management development program. These corporate customers are
also those clients who spend over 14515 per person per tour.
$ORT2"&$+ TR)+ERS @UEST&O$$)&RE
(Your replies are anonymous so confidentiality is assured)
1. 9en!er, (ale emale
Marrie!: %es No
Chil!ren %es No
)/e, Gnder 18 &ncome, Gnder 118,955
18 . '7 118,951.1'4,545
'4 . 34 1'4,541.133,755
38 . 74 133,751.171,945
74L over 171,945
Occupation: Self,...................................................................
Partner,.............................................................
'. -ow many adventure vacations have you ta&en in the past three yearsQ
None . never considered ta&ing one
*onsidered, 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
3. If you ta&e adventure vacations, how much do you spend per head per vacationQ
Gnder 11895
11891.13375
13371.14515
Cver 14515
7. #ho did you buy your last adventure vacation fromQ #ould you use that source
againQ
Traveled independently %es No
+irectly 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
4. -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 agent0s window
:ia an advertisement in specialist adventure travel press
!ditorial in pressJT:Jradio
8. #hat impressed you most about the people you bought your last adventure
vacation fromQ
)an&ing for level
of impression
A1 R e"cellent,
7 R uselessB
)an&ing for
importance of factor
A1 R very high,
7 R 6uite
unimportantB

<nowledge of activity

<nowledge of destination

)ange of helpful advice

=dditional services, such
as insurance

9. #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 Ae.g. much
older, Jyounger, or had very different competence levelsB
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
2. #hat was the destination of your last adventure travel vacationQ
!urope =sia
N. =merica Cther
=frica 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
15. -ave you ever been on an adventure vacation organi$ed by your employerQ
%es No
Thank you for your help with our research. We hope thisit will help Northwind Traders to
bring you more exciting adventure vacations.
&nternet 9ro%th an! the Sale of Tra-el Ser-ices
Sales of travel services on the Internet have risen steadily over the past several years and loo& to
continue increasing through the year '555. These sales far outweigh other Internet sales,
including P* sales of software and hardware, clothing sales, and boo& sales. or e"ample, in
1@@2, sales of travel services totaled 11.7 billion55(, while P* products e6ualed 11.5 billion55(,
boo&s 1755 million5(, and clothing 1'45 million5(.
It is also evident that the !uropean users of the Internet are growing rapidly. The Gnited <ingdom
is the second largest Internet user mar&et after /ermany, followed in decreasing order by the
Netherlands, rance, inland, Italy, and Spain.
Percenta/e of &nternet Users "ho 2a-e Shoppe! OnlineE 4==FE in Millions
#hen it comes to actually using the Internet for online shopping, inland leads the way, with
/ermany and the Gnited <ingdom sitting s6uarely in the middle, close to the !uropean average.
The percentage of Internet users, by region, who have shopped online in 1@@2 are as follows,
inland . 8@P of Internet users in inland have shopped onlineP
the Netherlands . 73P of Internet users in the Netherlands have shopped online
/ermany . 71P of Internet users in /ermany have shopped online
Gnited <ingdom . 32P of Internet users in the Gnited <ingdom have shopped online
Italy . 33P of Internet users in Italy have shopped online
Spain . 31P of Internet users in Spain have shopped online
rance . '@P of Internet users in rance have shopped online
The average percentage of !uropean Internet users who have shopped online in 1@@2 is 71
percent.
)PPE$+&' 2: #&$)$C&)8 #OREC)STS
Cash #lo% ProBection *ear One
Cash #lo% #orecast : 42 Mont hs
Month: Pre: Start 4 2 6 7 C G D F
Receipts
*ash Sales 15,5'5 15,244 1',4'4 17,1@4 14,284 12,395 '1,915
*ollections from *redit Sales '41 712 451 451 424 94'
New !6uity Inflow
?oans )eceived 18,955 2,345 2,345
Cther
Total Receipts 0 4GE D00 40E 020 44E 40G 24E 2=6 47E G=G 4GE 6GG 2DE 60C 22E 7G2
Payments
*ash Purchases !"
3'8
188 131 '39 188 17@ 17@
Payments to *reditors "#$!% &'( && %&$ '"% && ) )
Salaries and #ages 8,357 4,1'5 ',8'5 ',542 3,9'2 ',8'5 ',338 ',338
!mployee Benefits 3,14' ',485 1,315 1,5'@ 1,287 1,315 1,182 1,182
Payroll Ta"es 1,541 243 739 373 8'1 739 32@ 32@
)ent 4,'43 7,'89 ',123 1,914 3,159 ',123 1,@79 1,@79
Gtilti ties 1,5'1 235 7'4 333 857 7'4 39@ 39@
)epairs and (aintenance 427 797 '73 1@1 374 '73 '18 '18
Insurance 1,5'1 235 7'4 333 857 7'4 39@ 39@
Travel 1,'75 1,559 414 754 937 414 785 785
Telephone 1,573 279 737 371 819 737 329 329
Postage 732 342 12' 173 '4@ 12' 18' 18'
Cffice Supplies @7@ 995 3@7 315 481 3@7 34' 34'
=dvertising Adelete rowB
(ar&eting and =dvertising 8,@32 4,834 ',223 ','84 7,153 ',223 ',491 ',491
Professional ees 4,73@ 7,712 ','81 1,998 3,'19 ','81 ',518 ',518
Training and +evelopment 1,941 1,7'' 9'2 49' 1,538 9'2 87@ 87@
Ban& *harges '8 '1 11 @ 18 11 15 15
(iscellaneous 5 5 5 5 5 5 5 5
CwnerKs +rawings 5 5 5 5 5 5 5 5
?oan )epayments 5 5 5 5 5 5 5 5
Ta" Payments 5 5 5 5 5 5 5 5
*apital Purchases '4,545 5 7,194 5 5 5 5 5
Cther . +atabase and #eb Site 5 5 5 15,555 5 5 15,555 5
Total Payments 0 G2E FG7 60E D4G 4=E F=4 22E 67G 22E 6GG 4CE D4G 27E 04G 47E 04G
Cashflo% SurplusH+eficit ;: < 0 ;7GE 4G7< ;20E G=G< ;FE DFC< ;4E 0C6< ;DE GD0< GC0 6E2F= FE77G
Openin/ Cash Balance 0 0 ;7GE 4G7< ;GGE FG0< ;DCE G7C< ;DGE G=F< ;F7E 6GF< ;F6E D4F< ;F0E 72=<
Closin/ Cash Balance 0 ;7GE 4G7< ;GGE FG0< ;DCE G7C< ;DGE G=F< ;F7E 6GF< ;F6E D4F< ;F0E 72=< ;D4E =F6<
&ncome StatementE *ears One to Three
&ncome Statement E Profit an! 8oss Statement : 42 Mont hs
*ear
4
*ear
2
*ear
6
Perio! Starti n/: Month
4
Month
2
Mont h
6
Month
7
Mont h
C
Month
G
Month
D
Mont h
F
Month
=
Mont h
40
Month
44
Sales
Sales ',387,23
@
4,'5',87
4
9,4@1,13
'
Cther
Total Sales 2E6G7E F
6=
CE202E G
7C
DEC=4E 4
62
0 0 0 0 0 0 0 0
Less Cost of 9oo!s Sol!
(aterials
?abor
Cverhead
Cther ',5@8,54
8
7,492,3'
9
8,857,'2
8
Total Cost of 9oo!s
Sol!
2E0=GE 0
CG
7ECDFE 6
2D
GEG07E 2
FG
0 0 0 0 0 0 0 0
9ross Profit 2GFE DF
6
G27E 64
F
=FGE F7
G
0 0 0 0 0 0 0 0
Operati n/ EIpenses
Salaries and #ages 38,59' 75,421 *(#"")
!mployee Benefits 12,538 '5,'@1 $&#!*(
Payroll Ta"es 8,51' 8,987 &#)()
)ent 35,585 35,585 75,525
Gtilities 4,274 4,274 8,825
)epairs and
(aintenance
3,375 3,375 3,375
Insurance 4,274 @,124 18,955
Travel 9,5@9 19,434 35,2@4
Telephone 4,@95 9,@33 15,244
Postage ',454 7,194 2,345
Cffice Supplies 4,7'2 2,345 1',4'4
=dvertising Adelete rowB
(ar&eting and
=dvertising
3@,955 32,715 45,155
Professional ees 31,1'4 18,445 18,455
Training and
+evelopment
15,5'5 18,955 34,595
Ban& *harges 145 145 '55
+epreciation @,124 @,124 @,124
(iscellaneous
Cther
Total Operati n/
EIpenses
24GE 6=
0
26CE 0C
7
66DE 67
0
0 0 0 0 0 0 0 0
Operati n/ &ncome C2E 6=6 6F=E 2G
7
G7=E C0
G
0 0 0 0 0 0 0 0
Interest Income
A!"penseB
A2,345B A2,345B A2,345B
Cther Income A!"penseB
Total $onoperati n/
&ncome ;EIpense<
;FE 6C0< ;FE 6C0< ;FE 6C0< 0 0 0 0 0 0 0 0
&ncome ;8oss< Before
TaIes
77E 076 6F0E =4
7
G74E 4C
G
0 0 0 0 0 0 0 0
&ncome TaIes @,17' 98,127 174,941
$et &ncome ;8oss< 67E =04 607E D6
0
7=CE 70
C
0 0 0 0 0 0 0 0
Cumulati -e $et
&ncome ;8oss<
67E =04 66=E G6
4
F6CE 06
G
F6CE 06
G
F6CE 06
G
F6CE 06
G
F6CE 06
G
F6CE 06
G
F6CE 06
G
F6CE 06
G
F6CE 06
G
Balance Sheet at en! of *ear One
Balance Sheet : T%o *ears ;@uarterl y<
*ear 4 *ear 2
@tr 4 @tr 2 @tr 6 @tr 7 @tr 4 @tr 2 @tr 6 @tr 7
)SSETS
Current )ssets
*ash 1@,@34
(ar&etable Securities 5
=ccounts )eceivable, Net 74,212
Inventory 5
Prepaid !"penses 234
Cther 5
Total Current )ssets GGE CFF 0 0 0 0 0 0
8on/: Term )ssets
Property, Plant, and !6uipment '@,''4
?ess =ccumulated +epreciation @,124
Net Property, Plant, and
!6uipment
'5,575 5 5 5 5 5 5
Cther ?ong. Term =ssets 5
Total 8on/: Term )ssets 20E 070 0 0 0 0 0 0
Total )ssets FGE G2F 0 0 0 0 0 0
8&)B&8&T&ES )$+ S2)RE2O8+ERSJ E@U&T*
Current 8iailities
Short. Term +ebt 5
*urrent (aturi ties of ?ong. Term
+ebt
5
=ccounts Payable 234
Income Ta"es Payable @,17'
=ccrued ?iabilities 5
Cther 5
Total Current 8iailities =E=DD 0 0 0 0 0 0
8on/: Term 8iailities
?ong. Term +ebt ?ess *urrent
(aturities
5
+eferred Income Ta"es 5
Cther ?ong. Term ?iabilities 5
Total 8on/: Term 8iailities 0 0 0 0 0 0 0
Sharehol!ersJ E0uity
*ommon Stoc& 71,945
=dditional Paid.In *apital 5
)etained !arnings 37,@51
Cther 5
Total Sharehol !ersJ E0uity DGE GC4 0 0 0 0 0 0
Total 8iailities an!
FGE G2F 0 0 0 0 0 0
Sources an! Uses of #un!s
Sources an! Use of #un!s
$umer of fun!in/ roun!s eIpecte! for full financin/: 4
Total !ollar amount ein/
sou/ht in this roun!: KF6E C00
SOURCES O# #U$+S
E0uity #inancin/:
Preferred Stoc&,
*ommon Stoc&,
+et #inancin/:
(ortgage ?oans,
Cther ?ong. Term ?oans,
Short. Term ?oans,
*onverti bl e +ebt,
&n-estment from Principals: 171,945
USE O# #U$+S
Capital EIpen!i tures:
Purchase of Property,
?easehold Improvements,
Purchase of !6uipmentJurni ture, 1'@,''4
Cther,
"or.in/ Capital:
Purchase of Inventory,
Staff !"pansion, 1'5,555
New Product ?ine Introducti on,
=dditional (ar&eti ng =ctivi ti es, 1 37,955
Cther Business !"pansion
=ctivi ti es,
Cther, +atabase and #eb site 1 71,3'4
+et Retirement :
Cash Reser-e:
$umer of fun!in/ roun!s eIpecte! for full financin/: 4
Total !ollar amount ein/
sou/ht in this roun!: KF6E C00
SOURCES O# #U$+S
E0uity #inancin/:
Preferred Stoc&,
*ommon Stoc&,
+et #inancin/:
(ortgage ?oans,
Short. Term ?oans,
*onverti bl e +ebt,
&n-estment from Principals: 171,945
USE O# #U$+S
Cther,
"or.in/ Capital:
New Product ?ine Introducti on,
=dditional (ar&eti ng =ctivi ti es, 137,'94
Cther Business !"pansion
=ctivi ti es,
Cther, +atabase and #eb site 171,945
+et Retirement :
Cash Reser-e:
Balance SheetE One *ear ;@uarterly<
Balance Sheet : One *ear ;@uart erl y<
*ear 4
@tr 4 @tr 2 @tr 6 @tr 7
)SSETS
Current )ssets
*ash 9244 '15 '5,982 1@,@34
(ar&etable securities 5 5 5 5
=ccounts receivable, net 4855 18,255 34,2@5 74,212
Inventory 5 5 5 5
Prepaid e"penses 755 434 234 234
Cther 5 5 5 5
Total Current )ssets 46E FCC 4DE C7C CDE 7=6 GGE CFF
8on/: Term )ssets
Property, plant, and e6uipment '@,''4 '@,''4 '@,''4 '@,''4
?ess accumulated depreciation A''@8B A74@'B A8222B A@124B
Net propert y, plant, and e6uipment '8,@'@ '7,833 '',339 '5,575
Cther long. term assets 5 5 5 5
Total 8on/: Term )ssets 2GE =2= 27E G66 22E 66D 20E 070
Total )ssets 70E DF7 72E 4DF D=E F60 FGE G2F
8&)B&8&T&ES )$+ S2)RE2O8+ERSJ E@U&T*
Current 8iailities
Short. term debt 5 5 5 5
*urrent maturi ties of long. term debt 5 5 5 5
=ccounts payable 4'4 875 945 234
Income ta"es payable 5 5 3455 @17'
=ccrued liabilities 5 5 5 5
Cther 5 5 5 5
Total Current 8iailities C2C G70 72C0 ==DD
8on/: Term 8iailities
?ong. term debt less current maturi ties 5 5 5 5
+eferred income ta"es 5 5 5 5
Cther long. term liabilities 5 5 5 5
Total 8on/: Term 8iailities 0 0 0 0
*ommon stoc& 71,945 71,945 71,945 71,945
=dditional paid. in capital 5 5 5 5
)etained earnings A1,7@1B A'1'B 33,235 37,@51
Cther 5 5
Total Sharehol !ersJ E0uity 70E 2C= 74E C6F DCE CF0 DGE GC4
Total 8iailities an! Sharehol !ersJ E0uity 70E DF7 72E 4DF D=E F60 FGE G2F
Cash #lo% #orecastE 42 Months
Cash #lo% #orecast : 42 Mont hs
Month Pre:
Start
4 2 6 7 C G D F = 40 44 42 Totals
Receipts
*ash sales 15,5'5 15,244 1',4'4 17,1@4 14,284 12,395 '1,915 '7,'14 '8,758 '2,252 33,588 24GE 06C
*ollections from credit
sales
'41 712 451 451 424 94' 94' 155' 155' 1188 G=60
New e6uity inflow 0
?oans received 18,955 2345 2345 2345 74E DC0
Cther 0
Total Receipts 0 4GE D00 40E 020 44E 40G 24E 2=6 47E G=G 4GE 6GG 2DE 60C 22E 7G2 27E =GD 6CE DCF 2=E F40 67E 262 2G7E D4C
Payments
*ash purchases 751 3'8 188 131 '39 188 17@ 17@ 188 113 113 189 2E2F7
Payments to creditors 1'53 @92 7@@ 3@' 913 7@@ 778 778 7@@ 33@ 33@ 453 GEFCG
Salaries and wages 8357 41'5 '8'5 '542 39'2 '8'5 '338 '338 '8'5 1925 1925 '831 6CE =66
!mployee benefits 314' '485 1315 15'@ 1287 1315 1182 1182 1315 2@5 2@5 1314 4DE =GG
Payroll ta"es 1541 243 739 373 8'1 739 32@ 32@ 739 '@9 '@9 732 C=F=
)ent 4'43 7'89 '123 1914 3159 '123 1@79 1@79 '123 1723 1723 '1@' 2=E =76
Gtilities 15'1 235 7'4 333 857 7'4 39@ 39@ 7'4 '22 '22 7'8 CF26
)epairs and maintenance 427 797 '73 1@1 374 '73 '18 '18 '73 184 184 '77 662=
Insurance 15'1 235 7'4 333 857 7'4 39@ 39@ 7'4 '22 '22 7'8 CF26
Travel 1'75 1559 414 754 937 414 785 785 414 345 345 412 D0G=
Telephone 1573 279 737 371 819 737 329 329 737 '@4 '@4 734 C=7=
Postage 732 342 12' 173 '4@ 12' 18' 18' 12' 1'7 1'7 123 27==
Cffice supplies @7@ 995 3@7 315 481 3@7 34' 34' 3@7 '82 '82 3@8 C70F
(ar&eting and advertising 8@32 4834 '223 ''84 7153 '223 '491 '491 '223 1@4@ 1@4@ '2@4 6=E C7C
Professional fees 473@ 7712 ''81 1998 3'19 ''81 '518 '518 ''81 1438 1438 ''95 64E 00D
Training and development 1941 17'' 9'2 49' 1538 9'2 87@ 87@ 9'2 7@7 7@7 931 ==F2
Ban& charges '8 '1 11 @ 18 11 15 15 11 9 9 11 4C0
(iscellaneous 5 5 5 5 5 5 5 5 5 5 5 5 0
CwnerKs drawings 5 5 5 5 5 5 5 5 5 5 5 5 0
?oan repayments 5 5 5 5 5 5 5 5 5 5 5 5 0
Ta" payments 5 5 5 5 5 5 5 5 5 5 5 5 0
*apital purchases '4,545 5 7194 5 5 5 5 5 5 5 5 5 2=E 22C
Cther . database and #eb
site
5 5 5 15,555 5 5 15,555 5 5 '1,3'4 5 5 74E 62C
Total Payments 0 G2E FG7 60E D4G 4=E F=4 22E 67G 22E 6GG 4CE D4G 27E 04G 47E 04G 4CE D4G 62E 004 40E GDG 4CE DF4 2FGE 40C
Cashflo%
SurplusH+eficit ;: <
0 ;7GE 4G7< ;20E G=G< ;FE DFC< ;4E 0C6< ;DE GD0< GC0 6E2F= FE77G =E2C4 6EDCD 4=E 467 4FE 7C4 ;24E 6=0<
Openin/ Cash Balance 0 0 ;7GE 4G7< ;GGE FG0< ;DCE G7C< ;DGE G=F< ;F7E 6GF< ;F6E D4F< ;F0E 72=< ;D4E =F6< ;G2E D62< ;CFE =DC< ;6=E F74<
Closin/ Cash Balance 0 ;7GE 4G7< ;GGE FG0< ;DCE G7C< ;DGE G=F< ;F7E 6GF< ;F6E D4F< ;F0E 72=< ;D4E =F6< ;G2E D62< ;CFE =DC< ;6=E F74< ;24E 6=0<
&ncome StatementE Three *ear Summary
&ncome Statement : Three *ear
Summary
*ear 4 *ear 2 *ear 6 Totals
Sales
Sales ',387,23@ 4,'5',874 9,4@1,13' 4CE 4CFE G4G
Cther 0
Total Sales 2E6G7E F6= CE202E G7C DEC=4E 462 4CE 4CFE G4G
8ess Cost of 9oo!s Sol!
(aterials 0
?abor 0
Cverhead 0
Cther ',5@8,548 7,492,3'9 8,857,'28 46E 2DFE GG=
Total Cost of 9oo!s Sol! 2E0=GE 0CG 7ECDFE 62D GEG07E 2FG 46E 2DFE GG=
9ross Profit 2GFE DF6 G27E 64F =FGE F7G 4EFD=E =7D
Operati n/ EIpenses
Salaries and wages 38,59' 75,421 42,118 467E DG=
!mployee benefits 12,538 '5,'@1 '@,542 GDE 6FC
Payroll ta"es 851' 8987 @828 22E 7G2
)ent 35,585 35,585 75,525 400E 200
Gtilities 4274 4274 8825 4FE 6D0
)epairs and maintenance 3375 3375 3375 40E 020
Insurance 4274 @124 18,955 64E D60
Travel 9,5@9 19,434 35,2@4 CCE C2D
Telephone 4@95 9@33 15,244 27E DCF
Postage '454 7194 2345 4CE 060
Cffice supplies 47'2 2345 1',4'4 2GE 606
(ar&eting and advertising 3@,955 32,715 45,155 42FE 240
Professional fees 31,1'4 18,445 18,455 G7E 4DC
Training and development 15,5'5 18,955 34,595 G4E D=0
Ban& charges 145 145 '55 C00
+epreciation @124 @124 @124 2DE CCC
(iscellaneous 0
Cther 0
Total Operati n/ EIpenses 24GE 6=0 26CE 0C7 66DE 670 DFFE DF7
Operati n/ &ncome C2E 6=6 6F=E 2G7 G7=E C0G 4E0=4E 4G6
Interest income Ae"penseB A2345B A2345B A2345B ;2CE 0C0<
Cther income Ae"penseB 0
Total $onoperati n/
&ncome ;EIpense<
;F6C0< ;F6C0< ;F6C0< ;2CE 0C0<
&ncome ;8oss< Before
TaIes
77E 076 6F0E =47 G74E 4CG 4E0GGE 446
&ncome TaIes @17' 98,127 174,941 264E 0DD
$et &ncome ;8oss< 67E =04 607E D60 7=CE 70C F6CE 06G
Cumulati -e $et &ncome
;8oss<
67E =04 66=E G64 F6CE 06G F6CE 06G
Sources an! Uses of #un!s
Number of funding rounds e"pected for full financing, 1
Total dollar amount being sought in this round,
123,455
SOURCES O# #U$+S
E0uity #inancin/:
Preferred Stoc&,
*ommon Stoc&,
+et #inancin/:
(ortgage ?oans,
Short. Term ?oans,
*onvertible +ebt,
&n-est ment from Principals: 171,945
USE O# #U$+S
Cther,
"or.in/ Capital:
New Product ?ine Introduction,
=dditional (ar&eting =ctivities, 137,955
Cther Business !"pansion =ctivi ties,
Cther, +atabase and #eb site 171,3'4
+et Retirement :
Cash Reser-e:

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SOURCE: Microsoft Office 2002 Business Planner Templates

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