executive summary€¦ · web viewwith our marketing plan we estimate that we ... how will we...

CONFIDENTIAL

Turquoise Trails

" Leave only Hoof Prints "

Business PlanPrepared September 2014

Contact Informationtamara manton

[email protected]

Turquoise Trails

Table of ContentsExecutive Summary.............................................................................1

Who We Are...................................................................................1

What We Sell.................................................................................1

Who We Sell To..............................................................................2

Objectives......................................................................................2

Financial Summary........................................................................3

Company..............................................................................................4

Mission Statement.........................................................................4

Company Overview.........................................................................4

Management Team........................................................................5

Locations and Facilities.................................................................6

Products and Services.........................................................................8

Products and Services...................................................................8

Competitors...................................................................................9

Target Market....................................................................................11

Market Overview..........................................................................11

Market Needs..............................................................................13

CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

Turquoise Trails

Market Growth.............................................................................20

Industry Analysis.........................................................................21

Key Customers.............................................................................23

Strategy and Implementation............................................................24

Plan Of Action..............................................................................24

Marketing Plan............................................................................26

Strategic Alliances.......................................................................31

Milestones...................................................................................33

Required Permits.........................................................................33

Sales Activities.............................................................................35

Financial Plan....................................................................................36

Revenue Forecast........................................................................36

Personnel Plan.............................................................................39

Budget.........................................................................................41

Cash Flow Assumptions...............................................................47

Enterprise Funding......................................................................48

Financial Statements.........................................................................49

Profit and Loss Statement...........................................................49

Balance Sheet..............................................................................52


Turquoise Trails

Cash Flow Statement...................................................................53

Appendix............................................................................................55

Revenue Forecast........................................................................55

Personnel Plan.............................................................................58

Budget.........................................................................................59

Profit and Loss Statement...........................................................62

Balance Sheet..............................................................................66

Cash Flow Statement...................................................................69


Turquoise Trails

Executive SummaryWho We AreMy name is Damien Dreyer from South Africa and I am the owner of a small horse stud breeding beautiful, colourful and friendly Appaloosa horses.

My intent is to relocate six of our best horses to Mahe to start a high end and exclusive horse trail business offering tourists and local residents beach and forest outrides. Riding lessons will be on offer as well. This enterprise will be owned, managed and directed by me as a sole proprietor.

We will be dedicated to our customers, consistently providing high customer satisfaction by rendering excellent service and quality of outrides, in a beautiful and safe environment at an acceptable price. The timing is right for starting this new venture.

What We SellExciting beach and forest outrides on our great horses. Guests can opt for one or two hour rides.

Romantic couples can enjoy a private beach ride ending at a romantic table set for champagne sundowners.

Couples getting married can use our services. Brides can be led in on one of our horses or have the option to use a small horse drawn carriage as a entrance. Photo and short rides can also be enjoyed with the horses.

Horse riding lessons will be offered to all interested at all levels of experience and confidence.

School children will be excited to have a learning experience while attending our holiday pony camps.

We are also offering our horses for advertising campaigns, films and photo shoots.

1


Turquoise Trails

Who We Sell ToTwo main target markets

1.Affluent, active tourists seeking fun and exciting activities while on holiday. Romantic couples and bridal packages will be catered for.

2.Interested locals who would have the opportunity to try a new activity or sport at our riding centre.

ObjectivesWe will measure our success by our ability to achieve the following objectives.

1. Transport horses to Seychelles via chartered cargo plane.

2. Renovate stable block, entrance, parking and facilities.

3. Execute productive and effective marketing and advertising campaign

4. Full operating capacity by second month of operation

5. Set a standard of international recognition for tourism based activities

6. Be a effective part of Seychelles tourism industry

7. Stimulate interest from local residents while providing a informative and exciting experience

8. Having client satisfaction and receiving compliments

9. Deal with any complaint or query with respect and appreciation for the customer, always being professional.

10. Returning customers always reflect a complete business

11. Produce a positive return on investment by second year

2


Turquoise Trails

12. We will stick to our budget and operate and manage the business from concept to start up to operation, maintaining good cash flow and consistent profits.

Financial Summary

3


Turquoise Trails

CompanyMission Statement

Our business offers a unique way to experience the beauty of Seychelles. We want to provide outride packages to couples and groups on fantastically well trained, colourful horses. Maintaining a superior level of service throughout the ride.

Sharing our love and experience of horses with local residents in a safe and secure environment. Providing lessons to all levels of experience, giving one on one attention.

Company OverviewTurquoise Trails is a off shoot from Takoda Horse Stud, and a life long love and appreciation of horses. Owners of Takoda Stud and married couple Damien and Tamara Dreyer have both had the fortunate opportunity and pleasure to have been around horses their whole life. Damien spend his youth playing cowboy at his grandfather's cattle stud farm and Tamara had formal English and jumping lessons riding through roaming fields and thick forests.

4


Turquoise Trails

We have painstakingly selected and bred top quality Pedigree Stud Book proper Appaloosa horses for the last five years. Many of our horses have won and been crowned champions at our annual Appaloosa Horse Breeders Show. Our aim for our breeding program is to produce foals with exceptional conformation, temperament and colour being our bonus. The choice of Appaloosas as a breed is due to their calm and gentle nature always willing to please their rider. They are very sturdy and hardy animals suffering the least from any normal equine discomforts.

We are wanting to relocate six selected horses to Seychelles to start a horse trail business encompassing the beautiful beach and mountain scenery the Island has to offer. Couples and groups of guests will be taken along breathtaking beaches to sunsets of their dreams.

Horse riding lessons will be on offer to anyone interested in discovering the equine world, with different levels to suit individual needs and styles. A different pricing schedule will apply favorably to local Seychellois.

We believe through different sources and our own research that a major gap exists in the tourist activity needs in the south and south west of Mahe. We are confident that our world class activity and adventure business will service these needs to a level where even the reputation of Seychelles will be greatly benefited.

We bring with us a high level of professionalism , expertise in our field and a tourist activity that will benefit tourism as a whole. We are young and full of energy ready to contribute to the economy, society and the growing needs of tourism.

Management TeamDamien Dreyer is the Owner and MD.

Responsibilities will include:

1. Executive decisions

2. Management of horses including, healthcare, nutrition, training and backing young horses,

5


Turquoise Trails

3. Managing horse grooms and stable staff.

4. Maintaining trail rides

5. Representing business to resorts hotels etc

6. Lead guide for outrides

7. Health and safety including fire.

8. Administration of accounting and banking

9. Website administration and internet networking

10. Formal riding lesson coach for children and adults

Experience:

Horse whisperer having spent his whole life around horses. Won many showing and riding competitions. Good instructor and patient delegator of duties in the workplace having dealt with many different laborers with varying levels of skill coming from diverse cultural backgrounds. Entrepreneur involved in many types of different businesses gaining a good business sense.Have professionally guided on safaris in Southern Africa. Experience in first aid and safe handling and riding of horses.

Locations and FacilitiesWe are fortunate enough to have found the only suitable and available facility on the Mahe Island at Barbarons owned by Madame’ Renee Troian. This facility has been used before for the same type of business. The location is situated just off the main road. Although trails, stables and outbuildings are still there, everything needs to be renovated, maintained and put into working order.

The stable yard at Barbarons has the following facilities: 9 stables 2.8m by 3m linked by a grooming and working stall 3.5m by 3.5m in between in a L shape layout. In the immediate vicinity there is a tack room 5m by 3m, 40m away is a food storage room 5m by 3m, 20m away is another stable unit for

6


Turquoise Trails

two horses 7m by 4m. Each stable has a food bowl and water trough built into the courtyard area. Two rivers flow through property.

We will be constructing a 20m by 40m training arena near the stable yard.

The trail paths we will use and follow have been created by previous operators who called themselves Utegangar and we would merely be re opening and maintaining the paths so that they will allow safe passage in thick areas. No trees will be cut down. There are two main trails: first one leading from the stable yard to Barbarons beach through to Grand Anse beach and returning to stable yard. Second trail will lead from stable yard to Barbarons beach and Grand Anse beach but on the return will follow a trail up to Barbarons peak (216m) before returning to the stable yard.

There is enough space for two or three paddocks and assisting parking lot to accomadate 4-5 vehicles at stable yard. The entrance is on the main road south west near the turn off to Victoria. We will be easily located and reached if adequate signage is placed strategically.

These facilities and ideal location, linked with the proximity of many potential clients staying at the numerous hotels/resorts make this a obvious and suitable choice for a successful and sustainable enterprise. Location, Location, Location.

7


Turquoise Trails

Products and ServicesProducts and Services

Turquoise Trails wants to set a precedent in the tourism industry by providing a world class service and activity. After consulting with numerous hotels and tourism operators it was clear to see that a major gap in the entertainment sector existed due to many customers frequently inquiring about their wish to go on a horse ride.

We have been fortunate to have located a ideal venue to host such a business with the right facilities and close to great accessible beaches and forests. Our business atmosphere will be friendly and upscale leaving our customers feeling confident . Using great horses and comfortable saddles and tack our guests will truly be having a ride of their life.

Not only can groups go on outrides of one or two hours, but tailored romantic packages can be arranged for couples seeking to create once in a life time memories. Brides seeking a unique and special entrance to their

8


Turquoise Trails

wedding will have the opportunity to parade in on one of our striking horses or pulled in on a small cart.

Weekday afternoons and Saturdays adults and children alike can join us for riding lessons of varying degrees of difficulty suited to individual needs. Our annual pony camp will be held over two sessions comprising of five days each. Eight children a day for five days consecutively will each share the responsibility of looking after and experiencing a ranch life . They will be riding,grooming and caring for horses while learning the complete needs of our beloved beasts.

Our beautiful horses will be available at a fee for advertising and marketing campaigns.

CompetitorsWhen measuring our service and tourism products head-to-head, ,we have found that there are no direct competitors on Mahe Island.

Indirect Competitors

Diving and Snorkeling. Most resorts offer excursions to reefs via boat. Operators take groups out for a few hours depending on level of experience. Excursions are expensive and limited to prevailing weather conditions. Our prices are relative to the experience and can be done in most weather conditions as we have protective clothing and accessories available for comfort.

Deep Sea fishing. Half day and full day charter are available at all ports and resorts with booking agents advertising all over. Our activity will benefit if wives or partners want to do a land based activity while their respective men are out fishing! ( Prices from 200euro to 4500 euro per day)

Spa and Wellbeing Treatments. Holiday time is for resting and unwinding. Most resorts in our area offer treatments for various ailments. These treatments are also offered on a hourly and two hourly basis and are more costly ( average 60 euro per hour). Holiday time is also for adventuring and exploring. Why not take a ride into the sunset on a horse for a different type of treatment!

9


Turquoise Trails

Yachting and Boating. Exploring and viewing the magical Seychelles by boat or yacht is breathtaking. Due to azure calm waters many excursions are offered throughout the islands and resorts. They cater for island hopping to day trips for barbeques on remote beaches. These range in price from €45 to €500 per person. Not all tourists are sea lovers and our activity will be a inviting option. Exploring and viewing paradise on horse back can be just and more exhilarating!

There are many different activities to compete with us but what will make us indefinitely stand out is the romantic allure of riding on a palm swept beach in the most exclusive and exotic destination , having emerarld blue green waters on one side and a mystical mountain lurking in the background. We will fill a much needed gap in tourism activities especially in south and south west of Mahe.

10


Turquoise Trails

Target MarketMarket Overview

Who are our potential customers?

To know our potential customers allows us to strategically market our products and services. We have found concluding evidence in the statistics we have for our research, that the Seychelles Tourism Industry is strong and continuing to grow. With the growth within the tourism comes the need to grow tourist based activities. In the South and South West Mahe Island we have found large Five Star Hotels/Resorts who have large volumes of bed nights with affluent clients needing fun and exciting activities for entertainment.

There are more hotels to be built in the South and a few are going through major renovations. All this data clearly points in the direction that there is a steady growth in the tourist industry warranting improved, new and exciting tourist based services and products. Our age group target market

11


Turquoise Trails

varies greatly as we are able to accommodate a range of different requirements for many ages and skills level.

Tourists

The South and South West Mahe Island is the quieter tourist area in terms of entertainment outside of resorts and many tourists would also like to explore their region outside their accommodation.

Couples and groups of four people at a time comprising of young adults would be a priority target. We are able to offer this category many of our products and services. Outrides, special date rides, tailored anniversary and engagement packages and wedding occasions. This is a group who are most active and wanting to do physical activities and willing and able to pay for these holiday excursions. This group might also go for the two hour ride option making it more profitable.

Groups of tourist children and older adults would be our next target group. Our brochures and website will be clear to relay to them that all levels of experience and age are accommodated with patient and helpful advice to guide them on a safe and manageable ride.

Both groups will be targeted using direct marketing through the hospitality agents working on a commission bases, at the hotels/resorts and through tour operators using their networks.

Pamphlets, brochures and business cards will be strategically placed with cooperation at the same venues. Website information will also be available and all advertising will illustrate a fun once in a lifetime opportunity giving precise information on all aspects relating to planning, booking and finally riding.

A road sign for our business at the entrance of the road would be needed to help locate and advertise our business to all passing traffic. Two smaller signs 200m up the road in either direction would help to slow traffic and alert drivers to the approaching turn off.

Trail guide websites and other horse related websites who promote trail businesses throughout the world will be used to enhance our appeal to dedicated trail riders seeking the ultimate escape.

12


Turquoise Trails

Social Media Networks will help us to congregate followers and stimulate potential customers to commit to include us in their travel itineraries.

Interested locals

The Seychellois culture might not be to familiar with horses or horse culture as such but we have a few ideas as to how we can introduce these animals so that we may share our love and enjoyment with all.

With permission and cooperation from schools we will be able to transport a horse to schools during appropriate times, family or fun days or maybe a sports day. In this way many children will come face to face with our gentle animals. All positive stimulation from living creatures always has a profound and joyous effect.

Local visitors will be allowed to come view and see our horses at certain times giving access to anyone interested in meeting and experiencing horses for the first time.

Advertising in local newspapers and community halls for pony camps during school holidays.

Market NeedsWe have accessed these needs by doing research, consulting with trail ride operators and from our personal experience, when we have ourselves been customers and have had to experience many levels of this business. We have noted the best reasons for success and planned our business to avoid disasters and bad situations experienced so we may stand out from the crowd.

Understanding your market needs is the key to creating a high level of professionalism and service. We are stepping back and looking at our business through our customers eyes and creating products and services to fulfill them. We ask ourselves, what problem/function does our business solve? What can we offer them that they cant get anywhere else? Are we failing them in some way? Are our competitors failing them in other ways?

13


Turquoise Trails

As per our market overview we have defined our two main targets namely tourists and interested locals and will access them individually and provide them with a unique solution for each group.

From the point of advertising to making a booking, to taking a guided outride our clients must feel excited, confident and appreciated.

Our brochures and posters will be professionally designed and printed to be appealing, informative and product specific. Our contact details will be clear and our location information exact and easy to follow. Clients will be addressed in a warm and friendly manner. Effectively and efficiently taking bookings with a professional style leaving the client completely informed. Directions will be made easy to follow. Map links will be available on our website linking to google maps to smart phones.

The entrance will be clearly marked and signposted to prevent late starts and frustrated customers. Upon arrival clients or their transport service will easily find the demarcated safe parking area via visible neat signage. From here they will take a small walk, sign posted to our small reception. They will be heartily greeted and proper introductions made. Guests must at all times feel that our full attention is applied to them. Guests will be helped if necessary to complete the indemnity form.

Suitable hard hat riding ware will be fitted. Clients who have not brought the correct riding gear can make use of our riding clothes and boots that we have available for them. We will be keeping one size each of ladies and mens riding boots, long riding jeans and rain protective ponchos. Hard hats will be replaced when necessary and tack parts exchanged with spares or completely replaced when worn or damaged. Socks will be sold to clients at a affordable price for hygiene reasons. The riding boots and jeans will be washed suitably. We will provide a high quality poncho, rainproof with a hoody to ensure dryness if it drizzles or rains. This too will be sterilised after every ride ensuring it free of sweat and dirt. The riding helmets and gear must fit comfortably so our clients can have a unhampered ride. We will have enough sizes of riding helmets to suit each individual head. To remain hygienic for each rider we will provide a strong paper thin disposable hair cap. This is not a discomfort for riders but allows full confidence to all clients that we pride ourselves on a high level of hospitality including personal space comfort in terms of hygiene and fit. This cap will be easily and responsibly disposed of and is fully bio degradable.

14


Turquoise Trails

Clients will be given a bottle of spring water that will conveniently fit into a bottle holder and attach to the saddle. All of our trained riding horses are not sound sensitive to drinking from plastics bottles from their backs will not startle them.

From this point on we will ensure all riders are properly equipped, comfortable and mentally prepared. If any client shows any nervousness, anxiety or is reluctant we will be able to set there minds at ease by going through everything with them and giving them support. To know that a qualified guide and horseman will be there to ensure their safety, well being and enjoyment.

From here we take our clients to be introduced to our horses. Time will be given to make all our clients relaxed and to answer any questions. The horses will be ready and tacked up after being warmed up so that no time of the client is wasted. Once ready everyone climbs on and departs for the ride.

Guides Role.

Before every ride, early in the morning each horse is always inspected for readiness. Ensuring it has fed well, is bright eyed, showing no lameness and has a willingness for attention and contact. If for any unseen reason any horse fails the inspection and only a fewer horses are available our clients will be notified immediately so that they are not inconvenienced at all. Re arrangements will be efficiently made,keeping the needs and interests of our clients at heart.

One hour before each ride our groom and guide will warm up the horses with several exercises ensuring horses are ready for customers, they are not sluggish and also preventing injury during the ride causing inconvenience for customers.

Next correct tack and saddlery will be fitted. This must be done exactly and precisely for each individual horse. The bridle must be symmetrically fitted ensuring the rider can have proper and full control over commands to the horses head allowing for confidence in the rider and pleasure on the outride.

15


Turquoise Trails

Allowing for a comfortable saddle fit for each individual horse means that at no point in the outride will the horse feel pain and discomfort, happy horse equals happy rider.

After the initial needs of riders are taken care of, the guide must then match each rider to the best suitable horse. Horses and humans have similar but slightly different shapes. Through the guides experience and deep understanding of the abilities of each horse he will be able to match them accordingly. Riders don’t want to be misplaced by lack of attention and have their outride flawed by a mismatch. Example large person on small horse or small person on large horse. All our horses will be able to carry a maximum of 110kg with a saddle and rider.

Our horses are trained for outrides to accept our commands that are very easy and quick to learn. These are all basic commands that will cover all needed for a safe and comfortable ride. Before each ride clients will be briefed and shown how to control our horses. Different levels of experience in groups will determine if any members need more individual help. Once the guide is satisfied that all riders are capable and confident he will lead them out to commence the outride.

All of our horses have been trained in natural horsemanship and negligent and abusive riding will not be tolerated. This method used by leading equine trainers instills confidence and open heartedness in horses. They are “bomb proof” and literally “sure footed”. They are eager to please and easy to train.

From a hospitality point of view the guide must be friendly, informative making sure customers get value and enjoyment for their money.

All emergency numbers will be easily available at all times. The guide will be at all times fully responsible for any situation, from horses to emergency response. All these measures will be put in place to protect our client making them feel secure.

A medic kit containing basis first aid remedies and bandages, sun tan lotion and insect sting cream will be kept by the guide behind and attached to the saddle in a special saddle bag. Each of the riders will also have a saddle bag that can contain a small camera, poncho and water bottle.

16


Turquoise Trails

Once the ride is finished guests can change and wash hands and face to freshen up. Soft drinks will be on sale. Marketing merchandise like shirts, caps and stickers with our logo will be available for sale as memorabilia. A suggestion box with forms for service evaluation and suggestions will be available in the change room so guests can help with their input. Guests will then leave with our aim that they are satisfied with our product and level of service.

Riding Centre

The riding centre will be there to encourage local people of all ages and experience levels to try a new and exciting sport and leisure experience. We don’t have to prepare for the Olympics but at least everyone will have the opportunity to be exposed to horses and the wonders and joy they give. Hour long lessons for children will be available at a reasonable rate and groups of children with a max of two children per hour can be sustained giving full individual attention from the riding instructor and guide. The same will also apply to beginner adults.

Although rare, advanced lessons can be arranged for individuals with experience seeking to learn a new skill or movement in English and Western styles.

The needs of children especially safety and assurance will be our first priority. Children are sensitive and at times scared of horses. We will be there to support and encourage them. Showing how gentle and peaceful horses can be. Sometimes it can take several try's but if someone is interested we will be patient and help them.

The lesson will be designed to be a great start to understanding the language between horse and rider. Commands and feedback signals will be taught until the rider is confident to execute them alone. Once a rider is confident through learning all the riding skills to go out and safely manage a horse they can then proceed to leave the arena and do their first exciting outride with a guide to access. All these steps will ensure interested riders will have a safe and enjoyable experience.

17


Turquoise Trails

Report cards will be issued monthly to parents of riders this will help monitor involvement, enjoyment and progress. All aspects of equine science will be covered anatomy, health, feeding, grooming, stable yard maintenance, training, riding at different levels, saddle and tack fitting, hoof care and general health maintenance. Practices like ear, eye and temperature check can be observed and learnt about. Lessons will also cover interesting information on history and uses of horses, different types of breeds and sport abilities. These skills from a new and different animal are important for children as they show how humans and animals can co exist in a symbiotic relationship. Learning new skills and from different experiences is key to a happy and fulfilled childhood. We hope to achieve all this by offering a safe and secure environment full of fun and learning for children and adults of all ages.

Branded riding shirts will be made available to riders of the school to create a sense of togetherness and support that a “club” would offer.

If children are interested we will be able to have a informative meeting with their respective parents explaining our services and techniques. Reassuring them of any misconceptions or fears. We will then access each individual and create a training or experience schedule to suit them.

Pony holiday camps

In addition to riding we will be hosting a exciting school holiday pony camp once a year for two, five day sessions, aimed at all local school children. This camp will give parents an opportunity to give themselves a well deserved break from their children when its holiday time. These five day camps will host a max of eight children for five days where they will stay 200m up the road at Chateau d ‘Eau. They will be fed three meals a day and supervised at all times. Boys and girls will have separate sleeping and ablution facilities giving parents peace of mind.

The idea behind the holiday camps is to provide entertainment for interested children during school holidays. Many parents have to still work leaving their children unattended or bored at home. Similar concepts are very popular in the world to meet the needs of modern or one parent families. Although uncommon for Seychelles we believe this camp will be a great escape and unique opportunity for children.

18


Turquoise Trails

Each day will be split into different fun activities and duties. Camp fire storytelling, marshmellow star gazing, treasure quests and survival skills will be taught and explored. Grooming, handling, riding and horse sense will be experienced first hand. Every “trainee” will leave the camp enthralled and excited by the equine world. Having intimate knowledge and understanding of horses will be a great stimulation and could foster more interest and involvement into other walks of animal life.

As mentioned the guide will be present at all times to be responsible for all horse/human interactions and for responding to any minor ailment that does not require medication eg: plasters for cuts,insect bites etc. Medical emergencies will follow a pre determined efficient plan of action to call for assistance. CPR and correct bodily placement knowledge after a fall (worst case scenario) is important. Each childs needs from food to assurance and guidance will be catered for. We want to be able to show kids we can have fun, creative and entertain ourselves without TV and Interent. If interest grows we will be able to host it more often. We hope to start small but create a spark among the interested children spreading to enlighten more lives.

Special events and romantic dates

Clients wanting to be romantic have the possibility of tailoring their own unique occasion. For anniversaries and engagements clients will be offered a range of refreshments and food catered by a local restaurant that can be laid out on a small table at the end of the beach. After a beautiful afternoon ride couples can enjoy themselves with a few snacks and refreshments before heading home on horseback with the sun setting on the horizon.

Wedding couples are always looking for the ultimate romance. We will be offering our beautiful horses for wedding entrances, photos and pony rides as childrens entertainment. Our clients can expect impeccable dressed grooms and guides, well groomed shiny calm friendly horses able to stay cool headed in a crowd with noise. We can also offer a small cart to bring the bride in on the beach if she prefers. Many find the grace and beauty of horses a great addition to a wedding.

19


Turquoise Trails

Market GrowthThe model of our business plan is based around the number of horses available at one time which is four clients and one guide. This means that we can take four clients for a maximum of six workings days for one or two hour rides occurring once a day during low tide.

With our marketing plan we estimate that we will be running 80-100% full after two months. As we are limited by numbers of horses we will not be able to see a growth until the beginning of the third year as one of our youngstock will be ready then to start working on outrides. Six is the maximum number of horses we would take on a outride at any one time as we don’t want to have a impact on the environment. Our market growth would then have peaked and we will ensure it remains constant by breeding a foal to replace horses when it is required.

We have a very conservative figure stated in the amount of local clients who we estimate would be interested in lessons. We have allocated sixteen hours a month for lessons in the first year. Equine sports and riding is not a familiar past time in Seychelles and it will take some time to establish and market our product and services. After a successful marketing campaign we estimate that in year two we will be doing twenty four hours of instructing a month. This figure has a potential to grow to a conservative figure of fifty to sixty hours of lessons per month. Three hours every afternoon for five days a week. These hours are not restricted by horse numbers or environmental impact, children are able to take one hour sessions after school times. We will be offering lessons as often as demanded and daylight will permit. There is great potential for market growth if the correct marketing methods are used.

As per our riding centre, our pony camps will have to be marketed properly. Emphasis will be placed on how cost friendly and convenient it is for busy parents. Two camps a year falling after another in five day periods will be set during June/July school holidays. Only eight places will be available per camp to keep a good number for control and supervision with individual attention the first priority. These limited spaces will easily be filled due to a exciting camp, many children would want to attend annually and word of mouth to friends will also stimulate more interest. We will then be able to

20


Turquoise Trails

offer four camps of five day sessions during both the main school holiday periods

Industry AnalysisHorse trail businesses around the world base their success on the following obvious and visible traits:

Location outrides have to be scenic and allow clients to have a experience never to forget. Historical sights and information along the trail is appealing as customers always want to know more about where they are.

Service clients can easily find our contact details and all information is clearly laid out in professionally designed websites, brochures, pamphlets and business cards. The design is attractive and smart. From the point when customers arrive to their departure they are treated in a professional and congenial manner and are satisfied wholeheartedly. This is seen when we did our research that many companies have a review blog where tourists can leave remarks about the respective company.

Quality of horses and tack/saddlery only high ratings are offered to companies who’s horses are in good condition, that are sturdy and easily controlled. Their tack is of superior comfort for horse and rider alike allowing no discomforts or hardship on the horses back.

Value for money/ quality of product all successful trail and outride operators offer a complete service package. Value for money and not over charging for our services is imperative. The entire service and ride must leave the customer satisfied and content, ready to spread positive word from their exciting excursion.

Marketing plan /Logo attractive logos, brochures and websites are a must to emphasise our professionalism and business style. All well known outride/trail businesses have networked effectively in their own community, tourism promotion websites and tour operators. They have used correct marketing and advertising placement in tourist hot spots, hotels, resorts and operators. They stand out and represent themselves well for the type of business they do and services they provide.

21


Turquoise Trails

This is a tourism based industry where services and details to client needs are a priority. Creating solutions to holiday makers needs by delivering great experiences during outrides.

Interested Locals horse riding schools around the world are normally livery yards where many horses are kept by different owners sharing facilities. These yards have training arenas and lunge rings for their training exercises used whenever the rider is free.

Our riding school differs as there are no other horses available and our livery yard can only accommodate our present and future needs. Our small training arena will only accommodate 2-4 horses. We will mostly be doing one on one training with one rider and one horse. Students will come and use our horses and equipment whilst having full attention from the instructor.

Riding schools provide a safe environment to learn equine sports and riding skills offering a wide range of horse activities.

Holiday pony camps are a very popular solution for parents unable to take leave during school holidays. A safe and stimulating environment where children have fun and learn. Pony camps are themed around horse riding,horse activities in a farm/ranch atmosphere. Popular camps list exciting activities, adventures and creative skill learning. “back to roots” teaching youngsters interesting survival skills is also well received by students and parents alike. Parents want to have peace of mind when leaving their children. So importance lies in creating good safety measures and emergency back up systems. Children are housed and fed during their camp time and eat together in a food hall whilst having separate sleeping and ablution facilities. Supervision and safe control of all activities must be adhered to.

Pony camps rely on a positive feedback from children visiting and having a great experience.

Key CustomersWe will not be successful waiting for customers to come to us instead we must focus on the two specific market segments, tourists and locals who’s

22


Turquoise Trails

needs match our offerings. Focusing on these two targeted segments will be the key to our future. Therefore our focus and marketing message will be the services offered. We will develop our message, communicate it and fulfil our commitment to excellance.

Tourists

Active tourists who are seeking high end services and activities to do while on holiday. We will focus on this group as they are affluent and have budgeted to spend on activities to enjoy there holidays even more.

Interested Locals

Interested locals and especially children who would like to learn how to ride horses and go on outrides. Any age will be welcomed as long as parental permission is granted.

We will focus on them so that more people have exposure to horses. Children will benefit from doing and being exposed to something new. Children would be more likely to be more interested and less afraid to try something new if encouraged correctly. Gross and fine motor skills are learned during horse riding.

23


Turquoise Trails

Strategy and ImplementationPlan Of ActionIf approval of this business is given and when all the permits are issued, we will put into place the following strategy.

Following the guidelines for professional services and when approval is made, we will apply to Seychelles Licensing Authority for the relevant business license. Then we will apply to the Ministry of Labour for our G.O.P for Damien and Andrew plus their spouses. We then can register at the Seychelles Revenue Commission for business tax, non monetary tax benefits and VAT.

Approval for renting of land from the Ministry of Land Use and Housing will also be obtained.

Our goal is to operational by June 2015. Once approval is met we can then begin to put the final steps into place. With a more realistic perspective on how the steps will fit into our time bracket. Priority of steps:

Step 1 Horses will be transported to Johannesburg with all their registration and passports in order.

Step 2 Horses will be quarantined in Johannesburg for thirty days. They will have a clear bill of health with certificates from vets ready to be transported to Seychelles.

Step 3 All of our possessions and equipment will be packed and transported to the Seychelles via Container, including fodder solution box and horse box these will be shipped slighty ahead of time to ensure time to license the horse box and have it ready to transport the horses.

Step 4 My wife Tamara and Andrew the groom fly over a week ahead.

Step 5 Horses will be transported from quarantine station in Johannesburg International Airport.

24


Turquoise Trails

Step 6 Horses will then be handled by me and loaded into special transport boxes. These will be loaded in a specially chartered cargo plane 737 just for our own trip.

Step 7 After landing horses will be offloaded in their boxes ready to be cleared by customs with all proper documents.

Step 8 Transport from Mahe Airport to stables will be ready when the horses land. The horse box takes two at a time so three consecutive trips will have to be made.

Step 9 Once at stables the horses will be quarantined properly for the required time according to Seychelles Department of Agriculture standards, with no visitors and without being able to move from the quarantine area until cleared.

Step 10 Full marketing activities will be engaged during this time. Repping and networking will be in full force, visiting hotels, resorts and tourism agencies.

Step 11 Renovations of stables and riding centre will begin with painting and fencing.

Step 12 Old horse trails will start being maintained to former paths and routes.

Step 13 After horses have passed their evaluations during and after quarantine they can then begin to be ridden and made fit again for working outrides. Horses have to also show continuity with food regiments and show signs that they have acclimatized properly. All in good health before being allowed to begin their work.

Step 14 Road signs have to be put up and placed accordingly in time for the opening.

Step 15 Opening event, VIP and all interested parties will be invited to our introductory event, to socialise and get to know our horses and business.

25


Turquoise Trails

Step 16 Horses will be ready and facilities prepared to receive clients all paperwork will also be in order and the business ready to begin operation by June 1st 2015.

Marketing PlanOverview and Marketing Activities

Overview and marketing activities: How do we differentiate our business from our competitors?

Seychelles is a tropical paradise with beautiful warm turquoise waters. Most of our competitors in the tourism industry are then obviously water based activities from fishing, diving and yachting to island hop adventures for snorkelers.

Our business is land based presenting beautiful coastal forest trails and beach rides, offering excursions for tourists who have not got sea legs or tourists that have already done those excursions and are wanting a different experience. Our main land based competitors are spa treatments and nature walks to discover birdlife, flora and fauna. Our product and services can be custom tailored to clients needs and because we can only accommodate a limited number of clients. Our products and services are upmarket and exclusive.

How will we communicate this difference and how will we effectively target our message to the right audience?

Our marketing strategy is to establish anticipation of our business opening in the tourism industry and the local community, so that it can hit the ground running with sales immediately after launch. To that end the following tactics will be used:

1. SBC Filming arrival of horses to create hype and attention.

2. Launch of the website in anticipation of opening

3. Joining and networking with all websites promoting Seychelles tourism as a tourist activity and excursions provider.

26


Turquoise Trails

4. We will join and participate with STB

5. We will approach tour operators to become members and offer our products and packages that they can market on a commission basis.

6. Print and distribute brochures and posters to all hotels/resorts in the South and South/West Mahe plus at tourist information centres and areas of interest including restaurants and other companies willing to co market products.

7. Advertisements in tourism brochures, magazines and local newspapers.

8. Directory listing

9. Parading horses at near by hotels/resorts during quiet times.

10. Introducing groups of children to horses at schools.

11. Inviting VIPs to come and experience a ride.

12. Facebook and twitter accounts for social media networking.

13. Joining many trail riding websites that promote you and your destination to a different tourist market.

14. Promote our business at the annual tourism week.

15. Small sponsorship to school children and less fortunate.

16. Hosting annual pony camp and publicity from it

17. Submit and write articles of interest on horses for local newspapers

18. Publicity and press releases of successful students, new foals and beach ride photos.

19. Guest lecture at schools

27


Turquoise Trails

After launch the following tactics will be used going forward:

1. Promote the business through search engine optimization and search engine marketing around location and key words for the area, activity, name, service, tourism industry and information etc.

2. Continue to create features listings on websites devoted to promoting our type of business.

3. Continue to print and top up brochures and hotels/resorts

4. Continue to visit schools

5. Twitter and facebook updates

6. Work with STB on tourism events and promotions

7. Continue to advertise in magazines and newspapers when budget allows

8. Parade horses at hotels/resorts in vicinity

9. Small sponsorship to school children and less fortunate.

The marketing messages will focus on creating attraction to our unique excursion and a high level of service that will be experienced by our clients. We will also emphasise our gentle natured horses and comfortable safe riding conditions suited to all levels of experience. Our contact details will be clear and easy to read.

A key marketing strategy worth mentioning separately is a simple one: satisfied, happy customers are our best marketing tool. When a customer leaves our business they must be content knowing they have had a fulfilled day , our name and service will stand on its own.

28


Turquoise Trails

Positioning

What is our business purpose? This is what we say to ourselves and our employees its our rallying cry:

We are a tourism based business offering a unique product and service. Our role is to create and give our clients , a value for money, no fuss, full attention service. We are here to serve and cater for all of our customers needs as their pleasure provides for us. Being excited and friendly about every ride to every customer will create a sense of fun and adventure to be had.

Pricing

Before a decision can be made towards a investment in this case a new business a viability study needs to be conducted and investors must be confident to proceed. A few questions also need to be answered. Does our pricing position us relative in the tourist market and industry in general and would clients be drawn or put off by our prices? Does our price offer value for money? Will our price cover our costs?

Promotion

How do we get our message to groups of tourists we want to reach?

Tourists

Tourists will be best attracted through different advertisements and brochures strategically placed so that from the time of booking their accomadation to researching activities, to when they finally land and end up at hotel/resort/guesthouse they will be constantly reminded of our presence, products and location. When tourists book holidays they use tourism promotion websites and tour operators/agents for information. Ensuring constant visual and literal presence in these avenues would be target specific and attract clients who are affluent and energetic. Having brochures at all hotels/resorts will also attract clients wanting to do activities.

29


Turquoise Trails

Joining facebook and twitter and constantly loading and updating information and photos of our business activities and future developments will increase our exposure and show potential clients that we are hands on and constantly busy. This gives potential clients confidence in their choice of activity. This form of marketing and networking is proving to be very effective as our main tourist target markets are actively using these tools to make choices.

Websites are important to potential customers who most often do more research on activities offered beforehand. This valuable platform allows us to showcase our products and services straight to our clients, allowing them to easily source any information they need. Promoting and showcasing our business on trail riding websites is a direct way to market to a previously untapped group of travellers seeking ultimate horse riding experiences.

Having a show booth at the annual tourism week will help us create a presence in the local industry and allow us to network successfully with tour operators and all tourist related industries and services. Participating and networking with STB will also be a effective tool for inter-tourism activity. This could present extra opportunities for marketing and representation of our business.

Interested locals

Using local media will directly impact on our presence and business location. Local newspapers will be used to advertise in and write interesting horse stories for publication.

Putting up brochures/posters at community centres and schools will also be effective at carrying our product and message across to the target market.

One of the best forms of advertising would be for us to attend schools on pre arranged viewing days and to give informative and casual lectures about horses and horse related topics. Children will have a opportunity to meet and see a horse, maybe stimulating them to come back again and try a riding lesson. Children will also tell other friends and parents creating more presence for us.

Our first pony camp will start the following year in June so that we will have enough time to properly market and explain our holiday camp program to

30


Turquoise Trails

parents who’s children already take lessons and have developed a keen interest towards horse activities.

Word of mouth especially when parents and students alike are enjoying our service and horses, feeling contend and knowing they are receiving value for money.

Distribution

We will be selling directly to our customers when they arrive and they will be able to pay cash in either euros or Seychelles rupee or via a card swipe point of sale machine.

The only distribution we will be involved in is marketing posters and brochures to tourist hotspots and hotels/resorts. We will also ensure our products and services are distributed effectively through our agents, tour operators and internet.

Strategic Alliances

We will depend heavily on our alliance with Fodder Solutions to bring down and maintain our food costs to ensure business profitability. Back up support on functioning and maintaining the grow unit is essential to a constant and reliable fresh fodder food supply. Our partnership is also benefited by their ability to source and supply a regular supply of seed to

31


Turquoise Trails

our logistics agent in Durban South Africa to be transported to Seychelles Harbour.

Vet Product Online is a South African based company supplying a wide range of all necessary medication and supplements. They are competively priced and can ship in good time.

Seychelles Tourism Board: networking with the tourism board will be beneficial to creating awareness through all of the existing networking branches. Being a top rated and highly promoted tourist activity will be our ultimate marketing goal and tool.

All major tour operators: good relationships will be built by cooperation between us and tour operators ensuring their customers receive a high level of service and quality of activity.

Hotels, resorts: being on the list of activities and being positively promoted by hospitality managers and personnel will boost sales and provide entertainment for clients.

Prince of Saudi Arabia: there are a few more horses on Mahe and they are kept at Kempinski Resort and owned by the Prince for his own use. We have approached and are waiting a response to our proposal to him and his horse carers. We wish to go into a cooperation system where we can help each other with regards to horse matters. Sharing import costs of extra supplements and medications and our own expertise to help them with their horses. We can assist in wellbeing remedies, training, lessons and rehabilitative work. We expect that this will be a great partnership.

32


Turquoise Trails

MilestonesMilestone Due Date Details

Approval from SIB August 14, 2014 Sending application in on 25 July .Helda Hortere`mentioned it takes about two weeks for approval depending on comments due from different departments.

All paperwork including immigration is completed

December 01, 2014 Have all permits, paperwork and immigration up to date.

Quarintine in South Africa completed

February 27, 2015 Aim to have completed quarintine procedure fulfilling all requirements.

Arrival in Seychelles March 01, 2015 Taking off from JHB landing Mahe after 5 hour long flight.

Marketing Campaign and Activities in full swing

March 30, 2015 Marketing activities in full swing

Quarintine in Seychelles completed

March 31, 2015 This will take a period of one month to fulfill.

Completion of Stable and Facility renovations

May 01, 2015 Work would have immediately commenced apon arrival and needs to be finished so that we can spend enough time on our horses making them fit and preparing them for guests.

Horse fitness and health in perfect condition

May 31, 2015 Horses must be fit and in perfect health for work and been on the trail route at least five times perfectly before been given the "ALL CLEAR" to take guests.

LAUNCH June 01, 2015 Aim to be in full swing. Taking paying guests for the first time.

Required PermitsComments and approvals required from different departments:

33


Turquoise Trails

Equipment required for the running of the business: import clearance is required for the following:

1. two berth horse box for equine transport, 2. Fodder Solution growing chamber for fresh barley fodder horse feed, 3. riding tack, horse equipment for feeding and grooming including tools for maintenance, 4.renovation materials including paint, roof sheets and light fittings etc, facility materials including pole and ropes, drainage pipes and a extra through and rain tanks, small one horse drawn carriage for weddings.

Seychelles Licensing Authority: for business license

Department of Labour: G.O.P for Damien and Andrew plus their spouses.

Permit from Agricultural Department to import medications and remedies in liquid injectable and ointment form. Horse needs: dewormers, antibiotics, anti inflammatory, anti pain, anti colic and tetanus, also any pre required medications stipulated by Government.

Permit to import horse supplements like mineral salt licks, electrolytes and vitamin injectables.

Department of Roads?: to erect a road sign, one main large sign at entrance 1.8mx2m. Two smaller signs on either side of the road 80cmx80cm placed 200m before the entrance alerting clients to the proximity of entrance and for publicity.

Department of Environmental Affairs: All these trails have been used before. Permit to do trail rides from Barbarons Stable Yard through MadameTrions land to Barbarons beach and through to Grand Anse Beach to the end and back. Permit to do trail rides from Barbarons Stable Yard up to the closet peak called Barbarons at 216m high. This will be a interesting ride as this landform butts out in a unique formation.

Permit from Plant Protection Division: To import certified barley seed for use in Fodder Solutions Grow Chamber for our horse food needs. All documentation of seed will be provided.

34


Turquoise Trails

Sales ActivitiesSales will be done in person on a cash basis in two currencies Rupees and Euros and customers can swipe their cards at a point of sales machine.

In addition we will also establish sales and commission agreements with many tour operators, hotels/resorts, leisure and hospitality divisions.

Block bookings will have to pay deposits to secure place via credit card.

35


Turquoise Trails

Financial PlanRevenue ForecastRevenue Forecast

FY2016 FY2017 FY2018

RevenueRevenue Stream 1 outrides €52,800 €52,800 €72,000Revenue Stream 2 tailored wedding package €3,000 €3,000 €3,000

Revenue Stream 3 tailored special date beach ride and champagne /canapes

€2,400 €2,400 €2,400

Revenue Stream 4 riding lessons €1,920 €2,880 €2,880Revenue Stream 5 annual pony camp for school holidays €6,400 €6,400 €6,400

Total Revenue €66,520 €67,480 €86,680

Direct CostRevenue Stream 1 outrides €0 €0 €0Revenue Stream 2 tailored wedding package €0 €0 €0


€0 €0 €0

Revenue Stream 4 riding lessons €0 €0 €0Revenue Stream 5 annual pony camp for school holidays €0 €0 €0

Total Direct Cost €0 €0 €0Gross Margin €66,520 €67,480 €86,680

Gross Margin % 100% 100% 100%

36


Turquoise Trails

Revenue by Month

About the Revenue Forecast

REVENUE STREAM 1 OUTRIDES

We are limited by the number of horses available to be used and we can only take rides at low tide during morning and evening( depending on time of year and season but will book accordingly to work with nature ) .We have four horses available to clients at one time. We can split the daily ride as follows: 4 clients on a 1 or 2 hour ride. 2 sets of couples on separate hour long outrides. We have aimed at taking a max of 4 clients for a total of one or two hour rides per day for five working days but will more than likely be six days but have used five in our plan. This also benefits the environment as impact on beaches can be kept to a minimum and renewed daily by the tidal action. Pricing structure was taken from the previous outride business operating out of the same space three years previous and is market related for the high standard of service and quality of product never forgetting the exclusivity of our location. Our rates are €55 per hour and €30 for the additional hour if wanted. 4 clients per day x 5 working days = 20 clients a week. 20 clients x 4 weeks = 80 clients a month . Minimum amount

37


Turquoise Trails

receivable in revenue per month is 80 clients x €55/ hour = €4400 not including second hour fees.

By the third year of operation we will have another horse, backed ,trained and ready to work. This will put our limit at 5 clients per ride increasing our potential to earn by 20% as the horses living costs have already been included in the expense forecast. Our monthly ride numbers can increase to 100.

REVENUE STREAM 2 : TAILORED WEDDING PACKAGES

With a marketing and advertising campaigns directed strategically towards wedding celebrations coupled with the fact that hundreds of weddings take place in the Seychelles, we are confident with a conservative average of servicing one wedding a month. We will charge €250 for a two to three hour period from point of entrance to photo shoots. Brides will also have the choice of entering on a small horse drawn cart at a €50 surcharge.

REVENUE STREAM 3 : TAILORED SPECIAL DATE PACKAGES

Due to the popularity of the Seychelles as a romantic destination, many happy tourists get engaged or share a special occasion together like anniversaries and birthdays. We are confident that we will on average attract at least 1 customer per month for our unique product and service. We will be charging €200 for a two hour outride with a romantic sunset drinks and snacks table awaiting the couple at a secluded venue. Clients can also opt for different types of champagne to drink on the beach for their toasts at a surcharge.

REVENUE STREAM 4 : HORSE RIDING LESSONS

We have started with a very conservative figure due to equine sports been a unfamiliar sports or pastime in Seychelles and good marketing will be required to gain support and interest. We have used a average of 16 hours a month ( 4 hours a week ) to give riding lessons in the afternoons to school children and any interested parties. This is broken down into: 4 clients once a week for 4 weeks.or 16 new clients in 1 hour sessions or 8 clients for 2 , 1hour long session.or however it plays out.

38


Turquoise Trails

We have tried to make the price of these lessons as low as possible while hardly making profit but more for the enjoyment of seeing others loving the horses and having a different experience. Our fee to locals will be €10 per hour and one-on-one attention with the instructor.

From the second year we will be offering 24 hours of training and lessons every month as we believe our local client base will increase as more locals are drawn to the magic of horses. This could be split up as follows: 6 clients for 4 hours a month,or 8 clients doing 3 hours training a month,or 12 clients for 2 hours per month.

The available amount of training or horse riding lesson time can also be increased to a max of 3 hours a day for a 5 day week= 15 hours a week x 4 weeks = 60 hours potential available lesson time a month.

REVENUE STREAM 5 : ANNUAL PONY CAMP DURING SCHOOL HOLIDAYS

Two annual camps are offered back to back. Each camp is held over five day sessions with place for 8 children in each camp. Camps will offer a fully inclusive package consisting of three meals, and lodgings. Horse riding and horse related activities as well as fun survival skill and outdoor activities will be created for girls and boys. Price per day broken down as follows: Horse riding and horse activities 3hours a day €30+ 3x meals and drinks €25 + Lodgings €20 = €70 . Price per pax per package is €70 x 5 days= €4000. 8 children per camp x €400= €3200 received in revenue for 1 camp.

Personnel PlanPersonnel Table

FY2016 FY2017 FY2018Damien €20,400 €21,726 €23,138Andrew €2,880 €3,067 €3,267

Total €23,280 €24,793 €26,405

39


Turquoise Trails

About the Personnel Plan

Two staff will be responsible for all the necessary duties and services.

Damien will take telephonic and website bookings, and be the guide on the outrides. He will also facilitate horse riding lessons. When not busy with horses he will rep for the company doing marketing etc. He will also be most responsible for the horses wellbeing and general managing of all aspects concerned. His annual salary will be €20400. This figure will afford a modest yet comfortable lifestyle in the Seychelles.

Andy is our groom and general maintenance personel. He is responsible for the general care of the horses from feeding, cleaning,handling and training. He will also be responsible for trail maintenance and stable yard management.For his level of experience and years duty his salary will be €2880 per annum. Andy has free rent and utilities.

40


Turquoise Trails

BudgetBudget Table

FY2016 FY2017 FY2018

Operating ExpensesSalary €23,280 €24,793 €26,405Employee Related Expenses €0 €0 €0Marketing & Promotions €4,200 €1,800 €1,800Rent €7,320 €7,320 €7,320Utilities €1,080 €1,080 €1,080horse food €3,960 €4,200 €4,440Insurance €1,800 €1,800 €1,800medication and supplements €696 €696 €696Work Permits Expense €1,145 €1,020 €1,020Lawnmower and trimmer fuel €240 €240 €240Cleaning products and disinfectant €180 €180 €180

General maintenance of facilities €360 €360 €360

Total Operating Expenses €44,261 €43,489 €45,341

Major Purchasessaddlery and tack €7,600 €0 €0construction materials for renovation €7,000 €0 €0

roadside business signs €550 €0 €0website and logo design €690 €0 €0food production box for barley grass €5,500 €0 €0

Total Major Purchases €21,340 €0 €0

41


Turquoise Trails

Expenses by Month

About the Budget

MARKETING AND PROMOTIONS

Our initial budget for marketing, printing posters brochures and business cards, joining tour operators and general networking at target market areas will be €2000. Every month a top up of €150 will be spend maintaining this network reprinting and replacing advertising material, visiting schools and paying for the monthly website administration fees of €50. Total monthly costs, €150 + €50= €200

This monthly budget average could increase if more favourable marketing opportunities arise. These figures could also decrease if our bookings are full and all of our advertising avenues are well stocked.

RENT

We have entered into a long term lease agreement for the stable and riding facilities. The lease period is for six years at a monthly cost of €620 excluding utilities. Rent is only payable from the first business operating

42


Turquoise Trails

month being June 2015. There is no stated yearly increase in rent for the first six years of operation.

UTILITIES

It is difficult to accurately forecast utility expenses of water and electricity but a few facts help us determine a relevant average. Two rivers run through the property all year round. Water costs will be zero for all the horses needs including washing of stables and transport vehicle. A small amount(100l) a day of water is required to support our food growing needs and will also be taken out from the two nearby available water sources. The only electricity that will be used will be for the security lights at night and for the food growing box.

Security lights that will be used are new technology power saving efficient LED lights. Three lights will be sufficient and will not cost more than €20 a month to run for ten hours a day according to manufacturers specifications. The food growing box doesn't use lighting and only needs electricity for its efficient heating and cooling system. This cost is significantly reduced as the Seychelles climate allows for a greater temperature constant, that we require to keep our food growing at between 20-30 `C. This cost supplied to us by the manufacturer is very accurate and dependable and works out to €70 a month at the cost of electricity in Seychelles. Cost calculation: electricity costs 5 cents per kg of fodder a day to produce therefore: 50kg fodder x 5c = €2.5 a day. €2.5 cost of electricity per day x 30 days = €70 per month for food growing. Therefore our full estimate for water and electricity costs a month = €90.

HORSE FOOD

We will be supporting a local manufacturer for our pelleted, concentrated horse food needs. We will be keeping six horses to feed with a daily average of 2kg required for 1 horse . This is needed to keep them well maintained for outrides and Riding lessons. Price of 40kg concentrate horse food is €16 vat inclusive. Six horses x 2kg food/day = 12kg horse food needed per day . 12kg daily food x 30 days = 360kg of concentrate food a month needed. 360kg food a month / 40kg(weight of 1 bag food) = 9 bags of food needed a month . Therefore concentrated food costs are 9 bags x €16 = €144 . Transport of food : 5km round trip from stables to food producer = €6 per month

43


Turquoise Trails

The second part to the horses food requirements is growing barley wheat grass sprouts in a growing container. Water is free and electricity costs have already been included under utilities. The only other cost will be to buy and import the barley seed from South Africa. Each horse will require a further 7kg of this fodder grass to sustain them. When these seeds sprout they create a matt of grass weighing 7kg in a container that is replaced perpetually in the grow box.6 horses x 7kg grass required = 42kg fodder grass required daily . Unit produces 50kg grass a day using 8kg of seed and will cover our needs with a bit extra to spare. Therefore our monthly seed requirements are: 30 days x 8kg seed = 240kg.

We will be ordering a six months supply as they only sell the seed in bulk and would have to round off our six months needs to 1.5 tons of seed. 6 months x 240kg monthly requirement = 1440kg rounded off to 1500kg or 1.5t . The price of seed per ton is €420 so 1.5ton = €630. The transport costs including vat will also come to €420 using Indian Ocean Distributors.( exchange rate dependent) Therefore the total expense for seed is €630 + €420 = €1050. Expense of seed for 1 month is : €1050 / 6 months = €175. Transport expense from port in two loads at 30km round trip each load = €15x2= €30/ 6 months= €5

Therefore total monthly costs for horse food are: concentrate food €144 + Transport thereof €6+ seed €175 + transport thereof €5= €330

INSURANCE

We have not finalised which broker to use until approval is made from SIB and other concerning authorities. Our quotes that we are receiving are averaging at €150 a month for third party liability cover.

MEDICATION AND SUPPLEMENTS

We will be ordering these goods once a year and splitting up the costs into 12 months. We will calculate the cost as follows for 1 years requirements: horse dewormer x 12 = €75. vitamins and mineral injections x 6 bottles= €21. combination vaccine x6 =€100. Garlic flakes x 25kg = €30. Fly repellant 20l = €110. Biotin powder x 5kg = €42. MSM powder x 5kg =€35. Mineral salt licks x 12 = €90. The total weight for this shipment will be +/- 200kg and cost €175 including vat through Indian Ocean Distributors. Transport from port to Stables is a 30km round trip costing €15.

44


Turquoise Trails

Therefore total costs per year are: €693 and total costs per month are €58

WORK PERMITS EXPENSES

G.O.P requires each applicant to pay a once off processing fee of RS 1000 and RS 700 a month thereafter for the period of validity. Two applicants Damien and Andrew x RS1000 = RS2000+ RS1400(2xRS700) = RS3400 ( €210) for the first months expenses and RS1400(€85) for each month following.

LAWNMOWER AND TRIMMER FUEL

Our budget for this is 15l of fuel x RS 22 per litre= RS 330÷ 16.5 ( exchange rate RS 16.5 -> € 1 ) = €20 a month

CLEANING PRODUCTS AND DISINFECTANTS

Our monthly budget for these items are €15. Concentrate cleaner €12 + disinfectant €13. Bought in 5l containers this will last for a month.

GENERAL MAINTENANCE OF FACILITIES

Although the facilities will be renovated and be functioning like new we have allocated €30 a month towards continues maintenance. We can do all the labour ourselves to save on costs. Paint, sandpaper, hinges,nails and other general hardware products will be purchased as needed.

Startup Costs and Investment value of project

The following summary shows the projected start up costs not included in the running budget, but rather as a initial investment required to get the horses and equipment to the Seychelles and to get all the business functions working properly.

Transport of horses to Johannesburg for quarantine 225euro per horse equals 1350euro.

Quarantine, vet clearance certificates and documents and cargo plane charter has been quoted from 69 000euro.

45


Turquoise Trails

Transport of personal goods and business equipment in container ship from present home to Mahe harbour including customs 4000euro.

Transport of container from port to Chateau d eau’ 300euro

Airfares and transfer transport for four people one way 2000euro.

Permits, licensing, lawyers and notary etc 1000euro.

New computer all necessary accounting programs, printer and cartridges 1350euro.

Horse food, supplements and medication for transport and transition to new food and environment 450euro.

Transport of vehicle and horse box plus taxes and customs 4000euro

Therefor the initial investment budget is 83 450euro

The investment value of the horses in the business is pertained as follows: buying horses is easy, maintaining them costs. Buying average quality is cheap and easy, buying superior breeding lines costs.

Taking horses to shows enhances their status and value of progeny if they win or place well. We have spent a initial capital layout of 25 000euro buying four of the best blood stock available five years ago. We have built up a small herd of ten top horses performing every year at regional and national shows. Many of our horses have been crowned champions and have won many rosettes in numerous classes. The replacement value of one horse considering its age, purchase cost, food, vet costs, show and training costs is 14000euro in South Africa, this figure will dramatically increase once they arrive safely in Seychelles as the replacement costs of a horse in Seychelles will be exaggerated due to difficulty and remoteness of getting horses there.

We will be bringing our own vehicle (less 5 years) and horse box to the value of 25 000euro for picking up supplies and transporting the horses.

Therefore we estimate the final investment figure to be:

46


Turquoise Trails

1. Initial investment budget 83 450euro+

2. Major purchases 22 000euro+

3. Replacement value of horses 84 000euro+

4. Value of personal assets plus business vehicle and horse box 25 000euro+

is = 214 450euro, total investment figure. In rupees this value ( 1euro=16.5rupees ) is = Rs3 538 425.

Cash Flow Assumptions

Cash Inflow% of Sales on Credit 0%

Cash Outflow% of Purchases on Credit 0%

InventoryMonths to Keep on Hand 6Minimum Inventory Purchase €1,500

Enterprise FundingSources of Funds

All funding for the entire enterprise will be covered by the owners direct investment. These sources of funds are from selling shares in Southern Drakensberg Water R700 000, a spring water bottling plant. Selling my crystal and mineral collection to a serious buyer in October expected income R1 100 000. Sale of personal assets and unneeded goods R350 000. I also have the option to sell my shares in Malaika a import/export business

47


Turquoise Trails

in Somerset West if additional funds are needed but prefer to leave my interest running to show I have a financial back up. We will also be selling our extra four horses estimate income R200 000. I have a comprehensive RAF fund from Sanlam South Africa that pays out when I am 55 years old.

Use of Funds

The additional funding required is for financing major purchases: saddlery and tack 7600euro, roadside signs 550euro, website and logo design 690euro, food production box 5500euro, and for renovation costs, all put under the firsts months operating expenses come to just under 2200euro. Additional expenses are covered by our monthly income.

Loans and Investments Table

FY2016 FY2017 FY2018personal capitalEquity investment €20,000 €0 €0

sale of extra personal goodsFinancing at 0% interest €2,000 €0 €0

Total Amount Received €22,000 €0 €0

48


Turquoise Trails

Financial StatementsProfit and Loss StatementProfit and Loss Statement

FY2016 FY2017 FY2018

Revenue €66,520 €67,480 €86,680

Direct Cost €0 €0 €0Gross Margin €66,520 €67,480 €86,680

Gross Margin % 100% 100% 100%

Operating ExpensesSalary €23,280 €24,793 €26,405Employee Related Expenses €0 €0 €0Marketing & Promotions €4,200 €1,800 €1,800Rent €7,320 €7,320 €7,320Utilities €1,080 €1,080 €1,080horse food €3,960 €4,200 €4,440Insurance €1,800 €1,800 €1,800medication and supplements €696 €696 €696Work Permits Expense €1,145 €1,020 €1,020Lawnmower and trimmer fuel €240 €240 €240Cleaning products and disinfectant €180 €180 €180



Operating Income €22,259 €23,991 €41,339Interest Incurred €0 €0 €0Depreciation and Amortization €4,268 €4,268 €4,268

49


Turquoise Trails

Income Taxes €2,699 €2,958 €5,561

Total Expenses €51,228 €50,715 €55,170Net Profit €15,292 €16,765 €31,510Net Profit / Sales 23% 25% 36%

Gross Margin by Year

50


Turquoise Trails

Net Profit (or Loss) by Year

51


Turquoise Trails

About the Profit and Loss Statement

Balance SheetBalance Sheet

As of Period's End FY2016 FY2017 FY2018Cash €22,683 €42,941 €77,199Accounts Receivable €0 €0 €0Inventory €0 €0 €0

Total Current Assets €22,683 €42,941 €77,199Long-Term Assets €21,340 €21,340 €21,340Accumulated Depreciation (€4,268) (€8,536) (€12,804)

Total Long-Term Assets €17,072 €12,804 €8,536

Total Assets €39,755 €55,745 €85,735Accounts Payable €0 €0 €0Sales Taxes Payable €2,463 €1,688 €2,168Short-Term Debt €0 €0 €0

Total Current Liabilities €2,463 €1,688 €2,168Long-Term Debt €2,000 €2,000 €0

Total Liabilities €4,463 €3,688 €2,168Paid-In Capital €20,000 €20,000 €20,000Retained Earnings €0 €15,292 €32,057Earnings €15,292 €16,765 €31,510

Total Owner's Equity €35,292 €52,057 €83,567

Total Liabilities & Equity €39,755 €55,745 €85,735

52


Turquoise Trails

About the Balance Sheet

Cash Flow StatementCash Flow Statement

FY2016 FY2017 FY2018

OperationsNet Profit €15,292 €16,765 €31,510Depreciation and Amortization €4,268 €4,268 €4,268Change in Accounts Receivable €0 €0 €0Change in Inventory €0 €0 €0Change in Accounts Payable €0 €0 €0Change in Sales Taxes Payable €2,463 (€775) €480

Net Cash Flow from Operations €22,023 €20,258 €36,258

Investing & FinancingAssets Purchased or Sold (€21,340) €0 €0Investments Received €20,000 €0 €0Change in Short-Term Debt €0 €0 €0Change in Long-Term Debt €2,000 €0 (€2,000)

Net Cash Flow from Investing & Financing €660 €0 (€2,000)

Cash at Beginning of Period €0 €22,683 €42,941Net Change in Cash €22,683 €20,258 €34,258

Cash at End of Period €22,683 €42,941 €77,199

53


Turquoise Trails

Cash Flow by Month

Cash Flow by Year

About the Cash Flow Statement

54


Turquoise Trails

AppendixRevenue ForecastRevenue Forecast Table (With Monthly Detail)FY2016 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16

Revenue

Revenue Stream 1 outrides

€4,400 €4,400 €4,400 €4,400 €4,400 €4,400 €4,400 €4,400 €4,400 €4,400 €4,400 €4,400

Revenue Stream 2 tailored wedding package

€250 €250 €250 €250 €250 €250 €250 €250 €250 €250 €250 €250


€200 €200 €200 €200 €200 €200 €200 €200 €200 €200 €200 €200

Revenue Stream 4 riding lessons

€160 €160 €160 €160 €160 €160 €160 €160 €160 €160 €160 €160

Revenue Stream 5 annual pony camp for school holidays

€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €3,200 €3,200

55


Turquoise Trails

Total Revenue €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €8,210 €8,210

Direct Cost

Revenue Stream 1 outrides

€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Revenue Stream 2 tailored wedding package

€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0


€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Revenue Stream 4 riding lessons

€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Revenue Stream 5 annual pony camp for school holidays

€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Total Direct Cost €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Gross Margin €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €8,210 €8,210

Gross Margin % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

56


Turquoise Trails

FY2016 FY2017 FY2018

Revenue

Revenue Stream 1 outrides €52,800 €52,800 €72,000

Revenue Stream 2 tailored wedding package €3,000 €3,000 €3,000

Revenue Stream 3 tailored special date beach ride and champagne /canapes €2,400 €2,400 €2,400

Revenue Stream 4 riding lessons €1,920 €2,880 €2,880

Revenue Stream 5 annual pony camp for school holidays €6,400 €6,400 €6,400

Total Revenue €66,520 €67,480 €86,680

Direct Cost

Revenue Stream 1 outrides €0 €0 €0

Revenue Stream 2 tailored wedding package €0 €0 €0

Revenue Stream 3 tailored special date beach ride and champagne /canapes €0 €0 €0

Revenue Stream 4 riding lessons €0 €0 €0

Revenue Stream 5 annual pony camp for school holidays €0 €0 €0

Total Direct Cost €0 €0 €0

Gross Margin €66,520 €67,480 €86,680

Gross Margin % 100% 100% 100%

57


Turquoise Trails

Personnel PlanPersonnel Table (With Monthly Detail)FY2016 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16

Damien €1,700 €1,700 €1,700 €1,700 €1,700 €1,700 €1,700 €1,700 €1,700 €1,700 €1,700 €1,700

Andrew €240 €240 €240 €240 €240 €240 €240 €240 €240 €240 €240 €240

Total €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940

FY2016 FY2017 FY2018

Damien €20,400 €21,726 €23,138

Andrew €2,880 €3,067 €3,267

Total €23,280 €24,793 €26,405

58


Turquoise Trails

BudgetBudget Table (With Monthly Detail)FY2016 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16

Operating Expenses

Salary €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940

Employee Related Expenses

€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Marketing & Promotions €2,000 €200 €200 €200 €200 €200 €200 €200 €200 €200 €200 €200

Rent €610 €610 €610 €610 €610 €610 €610 €610 €610 €610 €610 €610

Utilities €90 €90 €90 €90 €90 €90 €90 €90 €90 €90 €90 €90

horse food €330 €330 €330 €330 €330 €330 €330 €330 €330 €330 €330 €330

Insurance €150 €150 €150 €150 €150 €150 €150 €150 €150 €150 €150 €150

medication and supplements

€58 €58 €58 €58 €58 €58 €58 €58 €58 €58 €58 €58

Work Permits Expense €210 €85 €85 €85 €85 €85 €85 €85 €85 €85 €85 €85

Lawnmower and trimmer fuel

€20 €20 €20 €20 €20 €20 €20 €20 €20 €20 €20 €20

Cleaning products and disinfectant

€15 €15 €15 €15 €15 €15 €15 €15 €15 €15 €15 €15

General maintenance of facilities

€30 €30 €30 €30 €30 €30 €30 €30 €30 €30 €30 €30

59


Turquoise Trails

Total Operating Expenses

€5,453 €3,528 €3,528 €3,528 €3,528 €3,528 €3,528 €3,528 €3,528 €3,528 €3,528 €3,528

Major Purchases

saddlery and tack €7,600 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

construction materials for renovation

€7,000 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

roadside business signs

€550 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

website and logo design €690 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

food production box for barley grass

€5,500 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Total Major Purchases €21,340 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

60


Turquoise Trails

FY2016 FY2017 FY2018

Operating Expenses

Salary €23,280 €24,793 €26,405

Employee Related Expenses €0 €0 €0

Marketing & Promotions €4,200 €1,800 €1,800

Rent €7,320 €7,320 €7,320

Utilities €1,080 €1,080 €1,080

horse food €3,960 €4,200 €4,440

Insurance €1,800 €1,800 €1,800

medication and supplements €696 €696 €696

Work Permits Expense €1,145 €1,020 €1,020

Lawnmower and trimmer fuel €240 €240 €240

Cleaning products and disinfectant €180 €180 €180



Major Purchases

saddlery and tack €7,600 €0 €0

construction materials for renovation €7,000 €0 €0

roadside business signs €550 €0 €0

website and logo design €690 €0 €0

food production box for barley grass €5,500 €0 €0

Total Major Purchases €21,340 €0 €0

61


Turquoise Trails

Profit and Loss StatementProfit and Loss Statement (With Monthly Detail)FY2016 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16

Revenue €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €8,210 €8,210

Direct Cost €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Gross Margin €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €5,010 €8,210 €8,210

Gross Margin % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Operating Expenses

Salary €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940 €1,940

Employee Related Expenses

€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Marketing & Promotions €2,000 €200 €200 €200 €200 €200 €200 €200 €200 €200 €200 €200

Rent €610 €610 €610 €610 €610 €610 €610 €610 €610 €610 €610 €610

Utilities €90 €90 €90 €90 €90 €90 €90 €90 €90 €90 €90 €90

horse food €330 €330 €330 €330 €330 €330 €330 €330 €330 €330 €330 €330

Insurance €150 €150 €150 €150 €150 €150 €150 €150 €150 €150 €150 €150

medication and supplements

€58 €58 €58 €58 €58 €58 €58 €58 €58 €58 €58 €58

Work Permits Expense €210 €85 €85 €85 €85 €85 €85 €85 €85 €85 €85 €85

62


Turquoise Trails

Lawnmower and trimmer fuel

€20 €20 €20 €20 €20 €20 €20 €20 €20 €20 €20 €20

Cleaning products and disinfectant

€15 €15 €15 €15 €15 €15 €15 €15 €15 €15 €15 €15

General maintenance of facilities

€30 €30 €30 €30 €30 €30 €30 €30 €30 €30 €30 €30

Total Operating Expenses

€5,453 €3,528 €3,528 €3,528 €3,528 €3,528 €3,528 €3,528 €3,528 €3,528 €3,528 €3,528

Operating Income (€443) €1,482 €1,482 €1,482 €1,482 €1,482 €1,482 €1,482 €1,482 €1,482 €4,682 €4,682

Interest Incurred €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Depreciation and Amortization

€353 €353 €353 €353 €356 €356 €357 €357 €357 €357 €358 €358

Income Taxes €0 €50 €169 €170 €169 €168 €169 €169 €169 €168 €649 €649

Total Expenses €5,806 €3,931 €4,050 €4,051 €4,053 €4,052 €4,054 €4,054 €4,054 €4,053 €4,535 €4,535

Net Profit (€796) €1,079 €960 €959 €957 €958 €956 €956 €956 €957 €3,675 €3,675

Net Profit / Sales (16%) 22% 19% 19% 19% 19% 19% 19% 19% 19% 45% 45%

63


Turquoise Trails

FY2016 FY2017 FY2018

Revenue €66,520 €67,480 €86,680

Direct Cost €0 €0 €0

Gross Margin €66,520 €67,480 €86,680

Gross Margin % 100% 100% 100%

Operating Expenses

Salary €23,280 €24,793 €26,405

Employee Related Expenses €0 €0 €0

Marketing & Promotions €4,200 €1,800 €1,800

Rent €7,320 €7,320 €7,320

Utilities €1,080 €1,080 €1,080

horse food €3,960 €4,200 €4,440

Insurance €1,800 €1,800 €1,800

medication and supplements €696 €696 €696

Work Permits Expense €1,145 €1,020 €1,020

Lawnmower and trimmer fuel €240 €240 €240

Cleaning products and disinfectant €180 €180 €180



Operating Income €22,259 €23,991 €41,339

Interest Incurred €0 €0 €0

Depreciation and Amortization €4,268 €4,268 €4,268

Income Taxes €2,699 €2,958 €5,561

Total Expenses €51,228 €50,715 €55,170

64


Turquoise Trails

Net Profit €15,292 €16,765 €31,510

Net Profit / Sales 23% 25% 36%

65


Turquoise Trails

Balance SheetBalance Sheet (With Monthly Detail)As of Period's End Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16

Cash €217 €2,400 €4,465 €4,274 €6,339 €8,404 €8,214 €10,278 €12,343 €12,154 €17,419 €22,683

Accounts Receivable €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Inventory €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Total Current Assets

€217 €2,400 €4,465 €4,274 €6,339 €8,404 €8,214 €10,278 €12,343 €12,154 €17,419 €22,683

Long-Term Assets €21,340 €21,340 €21,340 €21,340 €21,340 €21,340 €21,340 €21,340 €21,340 €21,340 €21,340 €21,340

Accumulated Depreciation (€353) (€706) (€1,059) (€1,412) (€1,768) (€2,124) (€2,481) (€2,838) (€3,195) (€3,552) (€3,910) (€4,268)

Total Long-Term Assets €20,987 €20,634 €20,281 €19,928 €19,572 €19,216 €18,859 €18,502 €18,145 €17,788 €17,430 €17,072

Total Assets €21,204 €23,034 €24,746 €24,202 €25,911 €27,620 €27,073 €28,780 €30,488 €29,942 €34,849 €39,755

Accounts Payable €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Sales Taxes Payable €0 €751 €1,503 €0 €752 €1,503 €0 €751 €1,503 €0 €1,232 €2,463

Short-Term Debt €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Total Current Liabilities

€0 €751 €1,503 €0 €752 €1,503 €0 €751 €1,503 €0 €1,232 €2,463

Long-Term Debt €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000 €2,000

66


Turquoise Trails

Total Liabilities €2,000 €2,751 €3,503 €2,000 €2,752 €3,503 €2,000 €2,751 €3,503 €2,000 €3,232 €4,463

Paid-In Capital €20,000 €20,000 €20,000 €20,000 €20,000 €20,000 €20,000 €20,000 €20,000 €20,000 €20,000 €20,000

Retained Earnings €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Earnings (€796) €283 €1,243 €2,202 €3,159 €4,117 €5,073 €6,029 €6,985 €7,942 €11,617 €15,292

Total Owner's Equity

€19,204 €20,283 €21,243 €22,202 €23,159 €24,117 €25,073 €26,029 €26,985 €27,942 €31,617 €35,292

Total Liabilities & Equity

€21,204 €23,034 €24,746 €24,202 €25,911 €27,620 €27,073 €28,780 €30,488 €29,942 €34,849 €39,755

67


Turquoise Trails

As of Period's End FY2016 FY2017 FY2018

Cash €22,683 €42,941 €77,199

Accounts Receivable €0 €0 €0

Inventory €0 €0 €0

Total Current Assets €22,683 €42,941 €77,199

Long-Term Assets €21,340 €21,340 €21,340

Accumulated Depreciation (€4,268) (€8,536) (€12,804)

Total Long-Term Assets €17,072 €12,804 €8,536

Total Assets €39,755 €55,745 €85,735

Accounts Payable €0 €0 €0

Sales Taxes Payable €2,463 €1,688 €2,168

Short-Term Debt €0 €0 €0

Total Current Liabilities €2,463 €1,688 €2,168

Long-Term Debt €2,000 €2,000 €0

Total Liabilities €4,463 €3,688 €2,168

Paid-In Capital €20,000 €20,000 €20,000

Retained Earnings €0 €15,292 €32,057

Earnings €15,292 €16,765 €31,510

Total Owner's Equity €35,292 €52,057 €83,567

Total Liabilities & Equity €39,755 €55,745 €85,735

68


Turquoise Trails

Cash Flow StatementCash Flow Statement (With Monthly Detail)FY2016 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16

Operations

Net Profit (€796) €1,079 €960 €959 €957 €958 €956 €956 €956 €957 €3,675 €3,675

Depreciation and Amortization

€353 €353 €353 €353 €356 €356 €357 €357 €357 €357 €358 €358

Change in Accounts Receivable

€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Change in Inventory €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Change in Accounts Payable

€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Change in Sales Taxes Payable

€0 €751 €752 (€1,503) €752 €751 (€1,503) €751 €752 (€1,503) €1,232 €1,231

Net Cash Flow from Operations

(€443) €2,183 €2,065 (€191) €2,065 €2,065 (€190) €2,064 €2,065 (€189) €5,265 €5,264

Investing & Financing

Assets Purchased or Sold

(€21,340) €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Investments Received €20,000 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

69


Turquoise Trails

Change in Short-Term Debt

€0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Change in Long-Term Debt

€2,000 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Net Cash Flow from Investing & Financing

€660 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0 €0

Cash at Beginning of Period

€0 €217 €2,400 €4,465 €4,274 €6,339 €8,404 €8,214 €10,278 €12,343 €12,154 €17,419

Net Change in Cash €217 €2,183 €2,065 (€191) €2,065 €2,065 (€190) €2,064 €2,065 (€189) €5,265 €5,264

Cash at End of Period €217 €2,400 €4,465 €4,274 €6,339 €8,404 €8,214 €10,278 €12,343 €12,154 €17,419 €22,683

70


Turquoise Trails

FY2016 FY2017 FY2018

Operations

Net Profit €15,292 €16,765 €31,510

Depreciation and Amortization €4,268 €4,268 €4,268

Change in Accounts Receivable €0 €0 €0

Change in Inventory €0 €0 €0

Change in Accounts Payable €0 €0 €0

Change in Sales Taxes Payable €2,463 (€775) €480

Net Cash Flow from Operations €22,023 €20,258 €36,258

Investing & Financing

Assets Purchased or Sold (€21,340) €0 €0

Investments Received €20,000 €0 €0

Change in Short-Term Debt €0 €0 €0

Change in Long-Term Debt €2,000 €0 (€2,000)

Net Cash Flow from Investing & Financing €660 €0 (€2,000)

Cash at Beginning of Period €0 €22,683 €42,941

Net Change in Cash €22,683 €20,258 €34,258

Cash at End of Period €22,683 €42,941 €77,199

71


executive summary€¦ · web viewwith our marketing plan we estimate that we ... how will we...

Documents