Travel Agency Business Plan Example

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Travel agency business plan example
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Sunlight Tours
Explore, journey, discover, adventure.
Business
Plan
Prepared By 10200 Bolsa Ave, Westminster, CA, 92683
John Doe [email protected]
(650) 359-3153 https://upmetrics.co

lOMoARcPSD|26648470
Table of Contents
Executive Summary 3
Business Overview 3
Objectives 3
Vision 3
Mission Statement 4
Products and Services 5
The following are the attractions that our tours will be showcasing: 5
Game and Nature Reserves 5
Natural Wonders 6
Cultural Experience 6
Activities 6
Marketing Plan 7
Customers 7
Competition 7
Pricing offering Plan 7
Communication or Promotions plans 8
Technology 8
Distribution Plan 8
Physical evidence plan 9
Internal Marketing Plan 9
Relationship Marketing 9
Operation Plan 10
Premises 10
Choice of locations and Premises 10
Business Target 10
Hours of Operation 10
Quality Control 11
Equipment 11
Staffing 11
Personnel Plan 12
Team 12
NDUDUZO VINCENT MIYA 13
SANELE MHLONGO 14
SYLVIA KHUMALO 15
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BUHLE MCHUNU 16
WANDILE NINELA 17
Average Salary of Employees 17
Sustainability And Corporate Society Responsibility 19
Revenue growth 19
Cost savings 19
Access to capital 19
Human capital 20
Brand value and reputation 20
Preservation of destinations 20
Financial Plan 21
Important Assumptions 21
Brake-even Analysis 21
Projected Profit and Loss 22
Profit Yearly 23
Gross Margin Yearly 24
Projected Cash Flow 24
Projected Balance Sheet 25
Business Ratios 26
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Executive Summary
Before you think about how to start a Travel agency service, you must create a
detailed Travel Agency business plan. It will not only guide you in the initial
phases of your startup but will also help you later on.
Read More 
Business Overview
Sunlight Tours will provide integrated eco and cultural travel packages to
people in the KwaZulu- Natal province – the Zulu kingdom to explore their
province. The founders and the employees of the Sunlight Tours have
experienced travel industry professionals and are passionate about the
packages and activities that Sunlight Tours will promote and offer. The
opportunity for Sunlight Tours’ success exists because currently South African
Read More 
Tourism is encouraging domestic tourism and also the tourism industry is
Start Writing here...
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Objectives
Achieve sales of 3,000,000 by year three.

Maintain margins of 10 percent on all coach travel
Develop strategic alliances with service providers nationally,
internationally, and in the province.
Achieve 25 percent of sales from the internet
Read More 
Continuously provide enjoyable quality excursions/trips on time and on
Vision
2020 - 21 Bu sin ess P la n | Su n ligh t Tou rs 3 / 27

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To become the foremost provider of the integrated eco and cultural travel to
the people of the KwaZulu-Natal province through responsible and sustainable
tourism.
Read More 
Mission Statement
Internally we intend to create and nurture a healthy, exuberant, respectful,

and enjoyable environment, in which our employees are fairly
compensated and encouraged to respect the customer and the quality of
the service we intend to provide.
In addition, follow-up will be mandatory so as to ensure customer
satisfaction and make any improvements as recommended by the Read More 
The Sunlight Tours is a Close Corporation headquartered in Durban, KwaZulu-

Natal, South Africa. Mr. Nduduzo Miya will serve as the Chief Executive Officer,
Sanele Mhlongo as the Managing Director, Buhle Mchunu as the Chief Financial
Officer, Sylvia Khumalo as the Sales and Marketing Manager, and Wandile
Ninela as the Human Resource and Communications Department Manager.
Read More 

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Products and Services
Before starting a Travel Agency business, you must take many things into
consideration such as you must consider what types of services will you be
providing to your customers. Deciding your services is extremely important
since it helps you plan other components of your business so make sure to
consider it before you think about how to start a Travel agency business.
Read More 
Sunlight Tours will be a domestic tour operating company that specializes in

eco and cultural integrated travel and tourism. It will provide consulting and
custom travel arrangements and packages. Sunlight Tours’ vision is to become
the foremost provider of the integrated eco and cultural travel to the people of
the KwaZulu-Natal province. Sunlight Tours’ employees and owners will be
outdoor, nature-oriented, and travel enthusiasts, as well as travel Read More 
professionals. Sunlight Tours seeks to connect eco and cultural markets as
The following are the attractions that our tours will be showcasing:
upmetrics.co Our eco-tours will consist of various activities that range from Adventure to
cultural activities as we are all about showcasing the distinctions of the Zulu
Kingdom and marketing its natural sphere. Our tours will be zoning around all
the directions of the province, from the North-East where lies a great nature
game reserve Elephant Coast incorporating the best of both land and sea
safari experiences with its world-class conversation areas that includeRead
theMore
Ismangaliso Wetland Park, South Africa’s first proclaimed World Heritage Site.
On all directions of the Zulu Kingdom lies numerous game reserves which the
Sunlight Tours will be offering tours to:
Tembe Elephant Reserve

Kosi Bay Nature Reserve
Maputaland Marine Reserve Read More 
Game and Nature Reserves


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Tourists will be fascinated by the natural wonders consisting of the lakes and
lagoons to the botanic gardens of the Zulu Kingdom which are the tourist’s
favorite attractions.
UKhahlamba – Drakensberg Mountain This magnificent World Heritage

Site comprises a spectacular mountain range that stretches for Read
overMore
200

kilometers, offering a nature lover's smorgasbord of majestic mountains,
Natural Wonders
KwaZulu-Natal has a long, proud history. It is renowned as the home of the

Zulu kingdom and has a diverse racial, cultural and natural heritage, making it
attractive to both domestic and foreign visitors. Hence, Sunlight Tours will
design tours that will educate tourists about the roots of the Zulu kingdom and
having to experience the traditional deeds of the Zulu’s. Our cultural tours will
be exploring the following attractions. Read More 
Cultural Experience
While on tour, the Sunlight Tours will design specific activities for different
tourists to engage in to accelerate the amusement.
Bungee Jumping
Sky diving
Hiking Read More 
Activities
We will offer the tourists a chance to explore the Zulu kingdom and having to
know the root of the region would help them understand the Zulu Culture and
deeds.
Sunlight Tours will be a full-service tour operator and will position itself as a
specialist in the field of integrated eco and cultural travel and will generate the
Read More 
majority of its revenue from these segments. It will sell standard tour operator

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Marketing Plan
Sunlight Tours plans to focus its initial efforts on the integrated eco and
cultural travel market in the Zulu Kingdom. Sunlight Tours will be located in the
capital of events in Africa, Durban. Deviating from the most offered travel in
KwaZulu-Natal [leisure] to the integrated eco and cultural travel will gain us a
market share. The natural beauty of the Zulu Kingdom and its abundance of
outdoor activities attract many eco-oriented people and its cultural diversity
Read More 
makes the market love KZN. The province has more people loving nature and
Customers
Sunlight Tours’ target markets are natural and cultural–oriented individuals,

couples, and groups. They are interested in promoting conservation,
responsibility, and embracing indigenous deeds by participating in tours, and
both soft and hard adventurous activities. Sunlight Tours’ target markets are
located in urban areas and sub-urban areas in KwaZulu-Natal and other
provinces. Demographically, eco-tours are slightly more likely to be men
Read More 
between the age of 20 and 40. Men on average spend more than women on
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Competition
The travel industry has high competition, hence, Sunlight Tours seeks to stand
out of the competition by positioning itself as the provincial tour operating
company specializing in the integrated market. There are large national chains,
small home-based businesses, consolidators on the internet, etc. Sunlight has
approximately 20 immediate competitors in the KwaZulu-Natal province,
including local agencies. As the industry is short of integrated offerings,
Read More 
Sunlight Tours will use this to its advantage. Having researched that local
Pricing offering Plan

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Sunlight Tours sells freedom that is part of conservation and education

oriented. Sunlight seeks to remind people frequently that there is more to life
than just work. Sunlight Tours will provide clients with all the arrangements
they can think of and many possibly would not have thought of. Our marketing
strategy will be based mainly on ensuring customers know about our existence
and the service(s) we fulfill. Hence. This will be done through implementing a 
Read More
market penetration strategy that will ensure that we are well known for
Communication or Promotions plans
Sunlight Tours intends to implement advertising, personal selling, and direct

marketing strategies to the target markets. Our personal selling marketing
strategies will rotate around keeping in touch with accommodations that we
work in partnership with and travel agencies for major customers, and
advertising for more individual customers. Our advertising and promotions will
pivot around six key strategies: public relations, our shop front, an Internet Web
Read More
site, customer relations, press advertising, and our association alliances.
Sunlight Tours will strive to ensure that it contains the latest, or extremely
recent personal computer including relevant software so as to ensure that the
company is continuously at the forefront in our market arena. The one certainty
in our industry is that technology will continue to evolve and develop, changing
what we market as well as how we market it. Our aim will be to be aware of the
implications of this new technology and utilizing it in our existing framework
Read More 
where possible. However, it should be noted that as we are now on the market
Technology
Distribution Plan
Sunlight Tours have, on their research, discovered that the use of

intermediaries is lucrative. Since Sunlight Tours is an intermediary itself with an
integrated offering, it has 3 channels of distribution that it will be using and
plans to create a strong relationship with its intermediaries in order to escalate
sales.
Read More 
The business will begin with a general corporate brochure establishing its

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Physical evidence plan
The marketing will convey the sense of quality in every picture, every
promotion, and every publication. We also intend to have well-designed
brochures and other promotional material that will enable clients to have an
understanding of the types of services we offer and the advantages of utilizing
them. In addition, well-done, informative brochures, fact sheets, and business
cards often have a triggering effect on clients contemplating utilizing our
Read More 
services. Hence this will undoubtedly generate increased sales of our service.
Internal Marketing Plan
Internally we intend to create and nurture a healthy, exuberant, respectful, and

enjoyable environment, in which our employees are fairly compensated and
encouraged to respect the customer and the quality of the service we intend to
provide. In addition, follow-up will be mandatory so as to ensure customer
satisfaction and make any improvements as recommended by the customers
in the future. We seek fair and responsible profit, enough to keep the company
Read More 
financially healthy for the short and long term and to fairly remunerate
Relationship Marketing
The most significant competition is hotels and travel agencies offering travel
excursions to their clients. They undertake this service in order to establish a
competitive advantage over their competitors. However, instead of directly
competing with them we intend to establish good working relationships in the
form of strategic alliances such that we are able to offer the service for their
clients and thus enabling them to concentrate on their core activities whilst
Read More 
ensuring customers are fully satisfied. In doing so, we will be creating a

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Operation Plan
Premises
Sunlight Tours has identified three potential locations for office spaces.
Headquarters will be at the Durban Central Business District, having another
office at Bergville, where all ecotours will be administered and lastly, we will
have another office located in Zululand, where all the cultural tours will be
administered. Once successfully established, Sunlight Tours will be one of
approximately 50 tour operating companies in the KwaZulu-Natal province. Read More 
Sunlight Tours will be the only integrated eco and cultural travel specialist in
Choice of locations and Premises
Headquarters in Durban, this is due to easy accessibility to Durban, and

as a capital city of events in Africa, it has a great number of tourists
flocking in that consists of eco and culturally oriented people.
In Bergville, as eco-tours will be administered in this office, the location
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with its nature and scenic beauty, and natural wonders will make our
tours enjoyable. Read More 
Business Target
Hours of Operation
The telephone lines will be staffed 24 hours a day by live operators. During the
period from 08 h, 00 am to 18 h 00, this will be done mostly by our staff.
However, overload calls during the day, and after-hours calls will go to our live
telemarketing bureau. Sunlight Tours understands that people consider
vacation decisions at home in the evenings after discussion with friends and
partners. We want to be available as their first point of contact with anRead More
informed, friendly service. We believe that since our clients will mostly be busy

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Quality Control
(See appendix A). We will be developing outline scripts to help the sales staff
manage inquiries. This will ensure that all incoming phone calls are dealt with
in the same way and meet a high standard. We will encourage people inquiring
about vacations to give us feedback on our service:
Our ability to handle their inquiry Read More 

The amount of time from the client’s first inquiry to the date of actual
Equipment
We will have a telephone/database 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. As service is one of our key components, it is essential that we have
full access to all relevant data speedily and efficiently.
Read More 
Staffing
Sunlight Tours will have 10 permanent employees at the outset and 5 part-time
employees. Voluntarism will be considered as the operations continue. From
the outset, all staff will have job descriptions, a career and training history file,
and a record of employee reviews. New staff will take the travel agency
Psychometric Aptitude Test and then spend time with each member of the
Sunlight Tours. All staff will undergo full product training and will spend atMore
Read
least four weeks a year on-site at key travel destinations. Prerequisites for all

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Personnel Plan
The personnel plan is also an important component of a Travel Agency

business plan since it gives you an estimate of the staff required for your
startup as well as the costs incurred on their salaries. So, make sure to duly
consider it before thinking about how to start a travel agency business. The
personnel plan of the travel agency business is as follows.
Read More 
Team
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NDUDUZO VINCENT MIYA

Chief Executive Officer
Mr. Miya will serve as the Chief Executive Officer of the Sunlight Tours.
Previously, before Sunlight Tours, he headed a sub-brand of the largest travel
agent in the world, the Thompson Africa, an international agency offering tours to
Africa. Prior to that, He managed the Pen-travel branch of one of the larger
regional chains of general travel agencies operating throughout the world, where
he was responsible for managing the operating systems of all the retailers of the
product. Mr. Miya worked as a Managing Director at the European tour operating
company, Euro travel for 10 years. Prior to that, he was working in South Africa
for the Serabi Tours, a domestic tour operating company. Educationally, he has a
Master’s Degree in Tourism Management obtained from Oxford University, a
Postgraduate Degree in Marketing from Harvard University, a Bachelor’s Degree
in Business Management from Cambridge University, and a National Diploma in
Eco-Travel and Tourism Practice.
Summary of duties:
Will be responsible for determining the strategic direction of the company

and ensuring that strategies are implemented through functional steps.
He will take the helm in creating the organization's culture.
Overseeing the complete operation of an organization in accordance with
the direction established in the strategic plans.
Maintaining awareness of both the external and internal competitive
landscape, opportunities for expansion, customers, markets, new industry
developments and standards, and so forth.
Provides general oversight of all Sunlight Tours activities, manages the
day-to-day operations, and assures a smoothly functioning, efficient
organization.
Assures program quality and organizational stability through development
and implementation of standards and controls, systems and procedures,
and regular evaluation

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SANELE MHLONGO
Managing Director
Mr. Mhlongo will be the Managing Director. Before Sunlight Tours, he was
working for the Greyhound Transportation Company as a Director of Operation
for 5 years. Prior to that, he worked as a Product Manager at the Ushaka Marine
World. He has been a Travel Agent for 4 years, working for the Flight Center
Travel Agency. Educationally, he has a Bachelor's Degree in Travel and Tourism
obtained from the University of Cape Town, a National Diploma in Office
Management from Witwatersrand University, and a Postgraduate Certificate in
Business Administration from the University of South Africa.
Summary of duties:
Direct the activities and productivity of a department or the entire

company.
Provide training and guidance.
Delegate duties such as typing, copying, and scanning.
Create schedules.
Work with the Assistant Director to sustain and grow programs and
services.
Participate in strategic planning.
Represent the organization to the public, key stakeholders, and business
partners.
Plan and implement the annual calendar of activities including fundraising
initiatives, special events, and the official administrative acts.
Help create budgets and track expenditures.
Create presentations for meetings

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SYLVIA KHUMALO
Sales and Marketing Manager
Ms. Khumalo will serve as the Sales and Marketing Manager. Before Sunlight
Tours, she served as the Head of the marketing department at the Elephant
Coast Tours. Prior to that, she was working as the Junior Sales manager at the
Drakensberg Safaris. Educationally, she holds a Bachelor’s Degree in Marketing
obtained from the University of KwaZulu-Natal and an Advanced Diploma in
Travel and Tourism.
Summary of duties:
Develops and implements strategic marketing plans and sales plans and
forecasts to achieve corporate objectives for products and services.
Develops and manages sales/marketing operating budgets.
Plans and oversees advertising and promotion activities including print,
online, electronic media, and direct mail.
Develops and recommends product positioning, packaging, and pricing
strategy to produce the highest possible long-term market share.
Achieves satisfactory profit/loss ratio and market share in relation to
preset standards and industry and economic trends. Ensures effective
control of marketing results, and takes corrective action to guarantee that
achievement of marketing objectives falls within designated budgets.
Oversees and evaluates market research and adjusts marketing strategy to
meet changing market and competitive conditions.
Monitors competitor products, sales, and marketing activities.
Establishes and maintains relationships with industry influences and key
strategic partners.

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BUHLE MCHUNU
Chief Financial Officer
Before Sunlight Tours, she served as the Financial Manager for the Intercape
Tours. Prior to that, she worked as an Accountant and Bookkeeper at the Bayside
Hotel. Educationally, she has a Bachelor's Degree in Cost and Auditing
Management obtained from the Durban University of Technology and a National
Diploma in Bookkeeping from the University of Johannesburg.
Summary of duties:
Manage the accounting, investor relations, legal, tax, and treasury

departments
Oversee the financial operations of subsidiary companies and foreign
operations
Manage any third parties to which functions have been outsourced
Oversee the company's transaction processing systems
Implement operational best practices
Oversee employee benefit plans, with particular emphasis on maximizing a
cost-effective benefits package
Supervise acquisition due diligence and negotiate acquisitions

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WANDILE NINELA
Human Resource and Communication Manager
Before Sunlight Tours, he was working for the Durban Pentravel as the Human
Resource Manager. Prior to that, he was working as a Senior Communication
Manager Assistant at Tsogo Travel and Tours. He has also worked
independently as a Website Developer for 3 years. Educationally, he has a
Bachelor's Degree in Computer Programming obtained from the University of
Cape Peninsula, a National Diploma in Human Resource and Public Relations
Management from the University of Witwatersrand.
Summary of duties:
Plan and manage recruitment and selection of staff

Plan and conduct new employee orientation
Identify and manage training and development needs for employees
Develop and implement human resources policies and procedures
Administer policies and procedures
Administer compensation and benefits
Ensure compensation and benefits are in line with company policies and
legislation
Benchmark compensation and benefits
Support annual salary review
Implement and monitor performance management system
Supervises and coordinates the work of the communications team.
Oversees and writes or edits Development documents including:
fundraising proposals to individuals, foundations, and corporations fund-
raising publications; communications materials, such as press releases,
cultivation, solicitation and acknowledgment letters documents present
official Institutional
Responsible for all communication materials
Average Salary of Employees

The following table shows the forecast data about the salaries of the employees for the next three
years:
Personnel Plan Year 1 Year 2 Year 3

Chief Executive Officer $85,000 $95,000 $105,000
Sales and Marketing Manager $45,000 $50,000 $55,000
Managing Director $550,000 $650,000 $750,000
Chief Financial Officer $145,000 $152,000 $159,000

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Personnel Plan Year 1 Year 2 Year 3

Human Resource and Communication Manager $50,000 $55,000 $60,000
Technical Assistant $87,000 $94,000 $101,000
Customer Representative $42,000 $45,000 $48,000
Total Salaries $1,004,000 $1,141,000 $1,278,000

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Sustainability And Corporate Society Responsibility
Being an integrated eco and cultural travel business, Sunlight Tours seek to
effect on rural development, sustainability, and conservation and give back to
society. To ensure that Sunlight gives back to the environment, all of its
operations will be orientated towards carbon reduction and recycling. As this
business will be established in a high unemployment rated region, the job that
it will create will be numerous. Not only will jobs be created by SunlightRead
Tours
More 
itself, but also by those travel packages that Sunlight Tours will market to
Being seen to be sustainable can help us increase income by securing the

loyalty of current customers and attracting new ones, resulting in increased
market share.
Read More 
Revenue growth
upmetrics.co Sustainable actions can help lower operating costs and improve overall
productivity and efficiency by reducing resource use, decreasing waste output,
and avoiding non-compliance fines.
Read More 
Cost savings
As environmental and social criteria are becoming a standard part of lending

risk assessments, as a sustainable tour operator, we are more likely to be able
to attract capital from banks and investors.
Read More 
Access to capital

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Our staff will feel proud of working for us as employers that take their
responsibilities to society seriously. Our sustainable policies will have an
increase in the capacity to attract and retain skilled and talented employees
and contract labor, thus increasing their ability to innovate and compete.
Read More 
Human capital
A reputation for being sustainable will add value to our brand and strengthens
our market position, making us less vulnerable to short-term market and
economic changes.
Read More 
Brand value and reputation

Acting sustainably will help make tourist destinations more pleasant places to
visit and live in. Ensuring the long-term quality of the destination also helps
guarantee business viability.
Read More 
Preservation of destinations
Our challenge here is to design holiday packages that have lower environmental and social burdens
while still yielding acceptable economic returns.

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Financial Plan
The last component of a travel agency business plan is an in-depth financial

plan. The financial plan crafts a detailed map of all the expenses needed for
the startup and how these expenses will be met by the earned profits. It is
recommended that you use our financial planning tool for guiding you through
all financial aspects needed to be considered for starting a travel agency
business. Read More 
The company will be financed by Mr. Miya himself and he will control the
direction of the business to make sure that it is expanding at the forecasted
rate. As for the travel agency business start-up, no equity funding or outside
loans will be required. With the help of financial experts, Miya has developed
the following financial plan for his travel agency start-up business, which
outlines the financial development of the travel agency over the next three
Read More 
years.
Important Assumptions
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The financial projections of the company are forecasted on the basis of the following assumptions.
These assumptions are quite conservative and are expected to show deviation but to a limited level
such that the company’s major financial strategy will not be affected.
Year 1 Year 2 Year 3

Plan Month 1 2 3
Current Interest Rate 10,00% 11,00% 12,00%
Long-term Interest Rate 10,00% 10,00% 10,00%
Tax Rate 26,42% 27,76% 28,12%
Other 0 0 0
Brake-even Analysis
Monthly Units Break-even 5530
Monthly Revenue Break-even $159 740
Assumptions:
Average Per-Unit Revenue $260,87
Average Per-Unit Variable Cost $0,89

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Estimated Monthly Fixed Cost $196 410
Projected Profit and Loss

Year 1 Year 2 Year 3
Sales $309 069 $385 934 $462 799
Direct Cost of Sales $15 100 $19 153 $23 206
Other $0 $0 $0
TOTAL COST OF SALES $15 100 $19 153 $23 206
Gross Margin $293 969 $366 781 $439 593
Gross Margin % 94,98% 94,72% 94,46%
Expenses
Payroll $138 036 $162 898 $187 760
Sales and Marketing and Other Expenses $1 850 $2 000 $2 150
Depreciation $2 070 $2 070 $2 070
Leased Equipment $0 $0 $0
Utilities $4 000 $4 250 $4 500
Insurance $1 800 $1 800 $1 800
Rent $6 500 $7 000 $7 500
Payroll Taxes $34 510 $40 726 $46 942
Other $0 $0 $0
Total Operating Expenses $188 766 $220 744 $252 722
Profit Before Interest and Taxes $105 205 $146 040 $186 875
EBITDA $107 275 $148 110 $188 945
Interest Expense $0 $0 $0
Taxes Incurred $26 838 $37 315 $47 792
Net Profit $78 367 $108 725 $139 083
Net Profit/Sales 30,00% 39,32% 48,64%

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Profit Yearly
Profit
15.00k
10.00k
5.00k
0
Year1 Year2 Year3
Financial Year Profit
Year1 10000
Year2 12000
Year3 14000

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Gross Margin Yearly
Gross Margin
15.00k
10.00k
5.00k
0
Year1 Year2 Year3
Financial Year Gross Margin
Year1 10000
Year2 12000
Year3 14000
Projected Cash Flow

Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $40 124 $45 046 $50 068
Cash from Receivables $7 023 $8 610 $9 297
SUBTOTAL CASH FROM OPERATIONS $47 143 $53 651 $59 359
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH RECEIVED $47 143 $53 651 $55 359

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Cash Received Year 1 Year 2 Year 3

Expenditures from Operations
Cash Spending $21 647 $24 204 $26 951
Bill Payments $13 539 $15 385 $170 631
SUBTOTAL SPENT ON OPERATIONS $35 296 $39 549 $43 582
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $35 296 $35 489 $43 882
Net Cash Flow $11 551 $13 167 $15 683
Cash Balance $21 823 $22 381 $28 239
Projected Balance Sheet

Assets Year 1 Year 2 Year 3
Current Assets
Cash $184 666 $218 525 $252 384
Accounts Receivable $12 613 $14 493 $16 373
Inventory $2 980 $3 450 $3 920
Other Current Assets $1 000 $1 000 $1 000
TOTAL CURRENT ASSETS $201 259 $237 468 $273 677
Long-term Assets
Long-term Assets $10 000 $10 000 $10 000
Accumulated Depreciation $12 420 $14 490 $16 560
TOTAL LONG-TERM ASSETS $980 $610 $240
TOTAL ASSETS $198 839 $232 978 $267 117
Current Liabilities
Accounts Payable $9 482 $10 792 $12 102
Current Borrowing $0 $0 $0

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Assets Year 1 Year 2 Year 3

Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $9 482 $10 792 $12 102
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $9 482 $10 792 $12 102
Paid-in Capital $30 000 $30 000 $30 000
Retained Earnings $48 651 $72 636 $96 621
Earnings $100 709 $119 555 $138 401
TOTAL CAPITAL $189 360 $222 190 $255 020
TOTAL LIABILITIES AND CAPITAL $198 839 $232 978 $267 117
Net Worth $182 060 $226 240 $270 420
Business Ratios
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 4,35% 30,82% 63,29% 4,00%
Percent of Total Assets
Accounts Receivable 5,61% 4,71% 3,81% 9,70%
Inventory 1,85% 1,82% 1,79% 9,80%
Other Current Assets 1,75% 2,02% 2,29% 27,40%
Total Current Assets 138,53% 150,99% 163,45% 54,60%
Long-term Assets -9,47% -21,01% -32,55% 58,40%
TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%
Current Liabilities 4,68% 3,04% 2,76% 27,30%
Long-term Liabilities 0,00% 0,00% 0,00% 25,80%
Total Liabilities 4,68% 3,04% 2,76% 54,10%
NET WORTH 99,32% 101,04% 102,76% 44,90%
Percent of Sales
Sales 100,00% 100,00% 100,00% 100,00%
Gross Margin 94,18% 93,85% 93,52% 0,00%
Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20%
Advertising Expenses 2,06% 1,11% 0,28% 1,40%
Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%
Main Ratios

lOMoARcPSD|26648470
Year 1 Year 2 Year 3 Industry Profile

Current 25,86 29,39 32,92 1,63
Quick 25,4 28,88 32,36 0,84
Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%
Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%
Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 19,20% 21,16% 23,12% N.A.
Return on Equity 47,79% 50,53% 53,27% N.A.
Activity Ratios
Accounts Receivable Turnover 4,56 4,56 4,56 N.A.
Collection Days 92 99 106 N.A.
Inventory Turnover 19,7 22,55 25,4 N.A.
Accounts Payable Turnover 14,17 14,67 15,17 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 1,84 1,55 1,26 N.A.
Debt Ratios
Debt to Net Worth 0 -0,02 -0,04 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $120 943 $140 664 $160 385 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0,45 0,48 0,51 N.A.
Current Debt/Total Assets 4% 3% 2% N.A.
Acid Test 23,66 27,01 30,36 N.A.
Sales/Net Worth 1,68 1,29 0,9 N.A.
Dividend Payout 0 0 0 N.A.


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Travel agency business plan example

International Marketing (Stamford University Bangladesh)

Studocu is not sponsored or endorsed by any college or university

Prepared By 10200 Bolsa Ave, Westminster, CA, 92683

John Doe [email protected]

(650) 359-3153 https://upmetrics.co

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Achieve sales of 3,000,000 by year three.

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2020 - 21 Bu sin ess P la n | Su n ligh t Tou rs 3 / 27

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Internally we intend to create and nurture a healthy, exuberant, respectful,

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The Sunlight Tours is a Close Corporation headquartered in Durban, KwaZulu-

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2020 - 21 Bu sin ess P la n | Su n ligh t Tou rs 4 / 27

Products and Services

Sunlight Tours will be a domestic tour operating company that specializes in

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Tembe Elephant Reserve

Game and Nature Reserves

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UKhahlamba – Drakensberg Mountain This magnificent World Heritage

KwaZulu-Natal has a long, proud history. It is renowned as the home of the

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2020 - 21 Bu sin ess P la n | Su n ligh t Tou rs 6 / 27

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Sunlight Tours’ target markets are natural and cultural–oriented individuals,

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Pricing offering Plan

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Sunlight Tours sells freedom that is part of conservation and education

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Communication or Promotions plans

Sunlight Tours intends to implement advertising, personal selling, and direct

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Sunlight Tours have, on their research, discovered that the use of

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Physical evidence plan

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Internal Marketing Plan

Internally we intend to create and nurture a healthy, exuberant, respectful, and

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Choice of locations and Premises

Headquarters in Durban, this is due to easy accessibility to Durban, and

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Our ability to handle their inquiry Read More 

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