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TABLE OF CONTENTS

1.0 Executive Summary 3

1.1 Objectives 4

1.2 Mission 4

1.3 Keys to Success 4

2.0 Company Summary 5

2.1 Company Ownership 5

2.2 Start-up Summary 5

2.3 Company ocations an! "aci#ities $

2.4 Company %a#ues $

3.0 ro!uct" #

3.1 &ro!uct 'escription (

3.2 Competitive Comparison (

3.3 "uture &rospects (

3.4 "u#)i##ment (

$.0 S%OT Ana&y"i" 10

4.1 Stren*ths 1+

4.2 ,eanesses 1+

4.3 Opportunities 1+

4.4 hreats 11

5.0 'ar(et Ana&y"i" Summary 12

5.1 Maret Se*mentation 13

5.2 ar*et Maret Se*ment Strate*y 13

5.2.1 Maret /ee!s 13

5.2.2 Maret ren!s 14

5.2.3 Maret 0rowth 14

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).0 Strate*y an! +mp&ementation Summary 15

.1 %a#ue &roposition 15

.2 Competitive !*e 1

.3 Maretin* Strate*y 1

.3.1 &ro!uct Maretin* 1

.3.2 &rice Strate*y 1

.3.3 &romotion Strate*y 1

.3.4 'istribution channe# 1(

.4 Sa#es Strate*y 2+

.4.1 Sa#es "orecast 2+

.5 Corporate Socia# esponsibi#ity 21

,.0 -uman e"ource" Summary 22.1 Mana*ement eam 22

.2 &ersonne# an 22

.3 rainin* 23

.4 "ee!bac an! Contro# 24

/.0 Financia& &an 25

$.1 mportant 6ssumptions 25

$.2 7rea-even 6na#ysis 2$.3 Key "inancia# n!icators 2

$.4 8pense "orecast 2

$.5 &rojecte! &ro)it an! oss 2$

$. &rojecte! Cash "#ow 2(

$. &rojecte! 7a#ance sheet 32

$.$ 7usiness atios 33

#.0 Contro&" 3)

(.1 Contin*ency annin* 3

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1. Executive summary

Travel Solution will be a company that will provide the most suitably designed as well

as the customized travel packages to its customers. Today's extremely stressful work

environment dictates that individuals requires some joyful holiday this presents an

opportunity that we may exploit and provide them stress!free joyful refreshing holidays with

cost competitive and customized packages according to their needs.

This project plan is developed to get the required finance for the project. There

financing will be required to purchase busses cars the working capital and to cover the

expenses for operation for first year. The finance available today with the company is about

"s. ######

Travel Solutions will be incorporated as $$%. This will shield the owner &r. mit &.

"ampure and it will find investors for additional financing to make the company stable. The

investors are treated as shareholders.

The financing in additional to the capital contributed from the owner shareholders

and bank will allow the Travel Solutions to successfully start and maintain the operations

through one year. unique upscale innovative idea of the travel packages will help Travel

Solutions to become successful in first year of its operations. %ompany will market its

products through aggressive marketing innovative concepts participating in trade shows

newspaper ads etc. Successful operation in year one will provide Travel solutions a base for

its market to move forward with high growth rate.

1.1 Objective

Travel Solution(s objectives for the first three years of operation include)

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• The creation of a unique upscale innovative and customized tour *ackages

that will differentiate from other companies

• The formation of a company(s image that will bring people with diverse

interests and backgrounds together in a common forum.

• To serve its customers with best possible quality and provide them more

things in price on one.

1.2 Mission

+e want to serve our customers with best possible service and provide them the kind

of comfort they want. +e would also want to customize our tours as per our customers need

without reducing joy or quality of tour. *eople of all ages and backgrounds will come to enjoy

the unique upscale joyful and refreshing environment that Travel Solutions provides.

1.3 Keys to Success

•

Serving with best possible quality.• %ustomized and attentive approach to its individual customers

• &aking tour packages more interesting with innovative ideas.

• &ake Tour packages more attractive as well as cost effective.

• The establishment of Travel Solutions as hub for socialization and

entertainment.

• &arketing of products with new ideas.

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2. Company Summary

Travel solutions will be a company which will organize tours to different parts of country. The

company will start its operations from *une and provide service to customers targeting

&aharashtra area as the first destination. ,t will subsequently launce its service to other parts

of country. ,t will focus initially on providing and satisfying two kinds of tours)

• Yatra: -ifferent religious places

• Heritage sites: This will undertakes site tours like janta!llora /orts etc.

s it grows it will take on people and expand into related markets. ,t will also look for

additional leverage by establishing relationships and representations with appropriate

strategic allies.

2.1 Company Ownership

The company named 0Travel Solutions( will be registered under companies act with

legal formalities. ,ts fiscal year is the calendar year. The company will realize the potential

market and opportunity for growth from given implementation of the appropriate strategies

aided by the necessary finances from next year.

2.2 Start-up Summary

Total start!up capital and expenses 1including legal costs logo design stationery and

related expenses2 came to approximately "s. #######. Start!up assets required and

utilized included Travel 3ffice Travel 4usses 1and5or 4usses cars on rent2 Staff office

furniture personal computers and other office equipment. This figure comes to "s ######.

Start up expenses

Sr. 6o. -escription mount reqd.

7 $egal 78888

9 Stationery etc. :888

; 4rochures 8

<

,nsurance

8

:"ent

8

5

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="esearch and -evelopment

8

>xpensed quipment

:888

Total Start!up xpenses98888

Start!up ssets


7 %ash "equired 7888888

9

Start!up ,nventory

78888

;3ther %urrent ssets

8

<$ong!term ssets

8

:Total ssets

7878888


Start!up /unding

7Start!up xpenses to /und

98888

9Start!up ssets to /und

7878888

Total /unding "equired78;8888

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$iabilities

7%urrent 4orrowing

9$ong!term $iabilities

8

; ccounts *ayable 13utstanding 4ills2

8

<3ther %urrent $iabilities 1interest!free2

8

Total $iabilities

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ssets

76on!cash ssets from Start!up

8

9%ash "equirements from Start!up

98888

; dditional %ash "aised

8

<%ash 4alance on Starting -ate

8

:

Total ssets

98888


%apital

7*lanned ,nvestment

9,nvestor 7

;,nvestor 9

<,nvestor ;

:,nvestor <

= dditional ,nvestment "equirement

Total *lanned ,nvestment

Sr. 6o. -escription mount

$oss at Start!up 1Start!up xpenses2

Total %apital

Total %apital and $iabilities

$

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Total /unding

Start-up

Click to Enlarge

2.3 Company ocations an! "aci#ities

t present the company plans to set up its office at *une with intentions of

establishing additional centers in other parts of &aharashtra largely depending on the

dictates of the market. 3ur current facilities provide offices 4us office equipment and so on.

2.$ Company %a#ues

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Travel Solutions is committed towards an open governance system whereby its

activities are managed and undertaken ethically transparently and in the interests of all

concerned stakeholders.

This shall be undertaken through implementation of the following company values)

• +e intend to conduct our business ethically and transparently respecting all

applicable laws.

• +e intend to be a responsible corporate citizen fulfilling our obligations as an integral

member of society. ?ence our business decisions shall give appropriate weight and

consideration to social and environmental impacts.

• +e intend to provide products of uncompromising quality to meet the needs of our

customers.• +e intend to seek mutually beneficial and enduring relationships in all the

commitments that we make ensuring that they are straightforward and honest.

?ence our communication shall be open and accurate internally and externally.

• +e intend to optimize the creation of wealth to provide fair reward and recognition for

the contributions of our stakeholders.

• @ltimately we intend to uphold all the above company values promoting our

employees and respective third parties engaged by us to do likewise.

Through promotion and implementation of the above stated company values we believe

that we will be able to attain our corporate and stakeholders' goals and objectives for the

benefit of all concerned in particular the communities in which we will operate.

3.& 'ro!ucts

Travel Solutions will provide all kind of travel and tour services to its customers. Some

of the Tours designed by the company are shtaAinayak yatra Shakti Sai janta etc. *lease

see the concerned leaflets for details.

+e also provide customers the customized travel solutions depending on their

suggestions and requirements.

3.1 'ro!uct (escription

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Travel solutions will provide the transportation through its busses. ccording to its

tour packages it will provide the facilities to customers. ,t may vary from customer to customer

and packages.

3.2 Competitive Comparison

,dentifying competition in terms of companies that fill the same needs that we do our

competitors are few in our main tour business though dominant in the market. ?ence there

will be a need to strongly differentiate ourselves from these other businesses. ?owever on a

broader scale our competition comes in several forms.

3.3 "uture 'rospects

Travel solutions trough its best service and aggressive marketing will try to capture

the market. +e will treat our customers as their friends will best possible and cost effective

packages. +e will grow other parts of &aharashtra and subsequently in other parts of

country. +e will try to develop a model for tourism so that we can attract the schools clubs

and other socio!groups etc.

3.$ "u#)i##ment

7. The key fulfillment and delivery will be provided by the principals and values of the

business. The real core value will be the provision of a quality based service. ?ence

we intend to ensure that tours we provide to customers of high quality and service.

9. +e will try to build our travel image by mouth to mouth publicity advertising and

taking part in social functions.

$.& S*O+ ,na#ysis

+e are in a highly lucrative market in a rapidly growing economy. +e foresee our

strengths as the ability to respond quickly to what the market dictates and to provide quality

service in a growing market. ,n addition through aggressive marketing and quality

management we intend to become a well!respected and known entity in our respective

industry. 3ur key personnel have a wide and thorough knowledge of the local market and

expertise which will go towards penetrating the market. ?owever we acknowledge our

weakness of a small!sized company without a lot of experience and the threat of new

competition taking aim at our niche. 4elow are the summarized strengths weaknesses

opportunities and threats.

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$.1 Strenths

• Strategic market segmentation and implementation strategies.

• -iversified market segments) ensuring the lack of dependency on one particular

market.

• %ombination of skills in directorship. The directors intend to jointly develop business

strategy and long!term plans having wide experience in product and business know!

how.

• stablishment and maintenance of strong capital base.

• n aggressive and focused marketing campaign with clear goals and strategies.

$.2 *eanesses

• $ack of a reputation in comparison to our competitors.

• The introduction of new organizational practices and personnel who have not

previously worked together presents a challenge to the company.

• limited financial base compared to the major players in the industry.

• $ack of clear!cut channels of distribution.

• stablishment on the ,nternet will produce technological challenges.

$.3 Opportunities

• Specific niche) we will design special and customized packages for our customers.

•

The new generation of individuals and families has a far greater appreciation of attractive packaging 1image conscious2.

• ,nternet marketing and sales!!though still in its infancy.

$.$ +hreats

The present growth in the market may result in market saturation through competition.

This competition could emerge from a variety of given sources including)

7. stablished mass!market companies.

9. 6ew marketing strategies and tactics by established products and companies.

;. xisting competition.

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/.& Maret ,na#ysis Summary

The number of outbound travellers from ,ndia grew by 7:B to =.9 million in 988:. This

was almost twice the number of arrivals witnessed by the country. booming economy with

C-* growth of more than >B rising disposable incomes higher aspirations cheaper air

travel to countries such as &alaysia Thailand and Singapore and better products from the

industry enticed ,ndian travellers. This has prompted a number of global tour operators to

enter the ,ndian tourism market either directly or through strategic alliances.

The travel industry is facing an increasingly competitive marketplace D travel

professionals want to adopt new results!driven strategic marketing approaches to meet their

unique challenges. ,mproving the efficiency and results of direct marketing programs

reducing marketing costs and building more strategic promotional and sales relationships areall key initiatives for success. +ith %laritas' se*mentation so#utions you'll discover how to

effectively identify and target your most profitable customers and prospects.

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%ritical issues in the travel industry include)

impact of downturn in travel

acquisition of customers

maximizing customer value

&ulti!channel marketing

customer retention

%laritas' customer segmentation systems are an important element of any marketing

program for the travel industry. Cain a better understanding of your existing customer base

and learn how to more expertly target new customers. nalyze the composition and behavior

of your segments to uncover a wealth of information to help guide all aspects of your

marketing campaign.

/ocus your efforts on reachin* your most pro)itab#e se*ments D target direct mail and

optimize advertising and promotional activities. 4y linking travel behaviors with consumer

media preferences for newspapers magazines television radio and the ,nternet you can

penetrate the relevant media channels to reach your most likely consumers.

+e appreciate that entering such a market is not a bed of roses particularly as it is

monopolistic. ?ence we intend to implement an aggressive marketing strategy well supported

by the other business functions. The above prognosis influenced our decision to enter the

brewing industry.

/.1 Maret Sementation

Travel Solutions will be focusing on the corporate and working class who appreciate

good quality travel service. The working class will range from the miners who constitute a

large portion of the market to administrative personnel appreciative of good quality service.

The corporate or managerial segment will constitute those managers who though aware of

their image and reputation want to put aside their ties and jackets after hours and5or on

weekends to ride on adventures and enjoys life. 3ur most important group of potential

customers is those in the rural areas who often converge after hours to socialize and update

one another on local news. These are potential customers who want to have an enjoyable

time and also some religious tour at reasonable price.

+e also intend to appeal to the foreign tourists who would be looking at experiencing

a great time.

/.2 +aret Maret Sement Stratey

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3ur marketing strategy will be based mainly on making the right kind of customized

product available to the right target customer. +e will ensure that our products prices take

into consideration peoples budgets and that these people appreciate the product and know

that it exists including where to find it. The marketing will convey the sense of quality in every

picture every promotion and every publication. There is already a sense of segment strategy

in the way we define our target market. +e are choosing to compete in areas that lend

themselves to local competition service and channel areas that match our strengths and

avoid our weaknesses.

/.2.1 Maret 0ee!s

The major customers require a service which will be cost effective and also enjoyable.

The customer wants the more things in the price on one. They want to add their knowledge

have a picnic and meet the god 1religious place2 in one package.

+e will provide them all what they want. +e will give them a good attention right from

choosing a package to the end of tour. +e will provide the all necessary information to them.

+e will also arrange some packages gifts for them

/.2.2 Maret +ren!s

3ur target markets are increasingly growing towards recognizing the difference

between poor quality tours and those of high quality. This development is an important trend

for us as it represents our target market. +e now are having an increasing number of people

who appreciate the traditional tours whilst living in the urban areas. +ith this in mind we

intend to ensure that our packages are respectable and attractive.

Today's extremely stressful work environment dictates that individuals requires some

joyful holiday this presents an opportunity that we may exploit marketing the health aspect of

our tours.

/.2.3 Maret rowth

,mport statistics provide a reliable guide as to the size of the tourism industry.

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,ndia(s travel and tourism market was valued at @SE G=8 million in 988:5988= from "s; :88 million in 988;5988

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personal selling component to our marketing strategy as previously discussed. ?ence

we intend to always be active in personal relationships with clients and strategic allies

keeping abreast of their needs and wants.

• +e are focusing advertising on several key media.

+e intend to achieve growth by creating a more enthusiastic customer culture than that of

our competitors. ll criteria from price competitiveness to staff attitudes are to be initially

measured six!monthly and then on a more regular basis as time goes on. The results will go

down to depot level and be compared with the overall target. This form of consistent

measurement of strategic goals will ensure that the organization remains focused on its goals

and objectives making any necessary adjustments where need be.

.1 %a#ue 'roposition

3ur value proposition is offering our customers refreshness and enjoyment at reasonable

prices ensuring peace of both body and mind. ?ence we intend to)

7. &arket the benefit not the product.

9. nsure customer satisfaction.

;. -evelop long relationships.

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.3.1 'ro!uct Maretin

3ur product marketing will emphasize the benefits of our products including

refreshment and enjoyment of top!quality service. +e intend to sell the opportunity to enjoy

oneself amongst friends family and5or colleagues. This will come out in our advertising

delivery and collateral such as sales literature and business cards. 3ur product marketing's

most important challenge will be the problem of being accepted and appreciated on the

market as a provider of quality products. ?ence we intend to not only meet customers'

expectations but to exceed them.

+e intend to focus on the individual or group who want to enjoy themselves through

their requirements of tours. ?owever not wanting to limit our horizons in the initial period we

intend to be continually looking out for opportunities that we may exploit. ,n all cases weintend to provide a thorough understanding and appreciation of the products to the customer

and the benefits of them.

.3.2 'ricin Stratey

,nitially our prices will not be under our control but dictated by the market conditions

prevailing at the particular time. This is particularly so in the case of products which are also

produced by our competitors as they are often representing a scale for consumers. ?owever

we realize that we must charge appropriately for the quality and work we shall be providing in

addition to the distribution of the products. ?ence we intend the price will accommodate the

mark ups prevailing in the industry as well as our own costs. To be competitive in the market

we intend to offer discounts to customers making bulk orders which are in competition with

the industry. This will also assist in the establishment of customer loyalty. ?ence our prices

shall be as follows) 1discussion removed for confidentiality2.

+e intend our income structure to match our cost structure so as to ensure that the

salaries we pay to assure good workmanship is balanced by the price we charge. +e willmake sure that we charge for the product workmanship and delivery with our aim being to

achieve a gross profit margin of at least ;8B in our initial years of operation. ll in all we

intend our prices to be extremely competitive on the market.

.3.3 'romotion Stratey

3ur promotion strategy will be based primarily on informing potential customers of our

existence and making the right information available to our target customer. Since we shall be

targeting different segments the promotional tools and messages may vary slightly to match

the intended market. ?owever in all cases the marketing will convey the sense of quality

refreshness and health in every picture every promotion and every publication. 3ur

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promotional activities shall be focused towards driving the organization's overall strategy

relentlessly developing internal consistency and prepare it to confront any radical changes

that may arise. ,n such a market we cannot afford to appear in or provide second!rate

service that makes our products look less than they are. +e intend to leverage our presence

using quality brochures and other sales literature including promotional material such as

pens complimentary slips and stickers. -ue to the fact that our products are in the

introductory phase on the market promotional expenses are high in order to generate

customer attention and knowledge of our products existence.

+e intend to spread the word about our business through the following)

Advertising

+e intend to undertake extensive advertising of our packages in addition to our brand

name!!company name. This is so as to instill awareness and knowledge of our existence in

the market place which hopefully shall convert into market share. ?ence the need to ensure

that our packages are constantly available to our target market and of consistent high quality.

+hilst we are committed to providing products of uncompromising quality to meet the needs

and expectations the company believes its products should be advertised and promoted in

an honest and ethical manner that respects the values of our consumers' societies.

constant look out will also be made of any special editions in the local newspapers which

may provide an opportunity to advertise.

Events

These are increasingly becoming important as more firms establish in the country and

hence the need to be known. The organization aims to participate in trade shows. 6ot only

will these increase awareness of the products. The organization will be able to take

advantage of this in all its promotional campaigns adding leverage to its reputation and

image. @ndoubtedly this would add confidence and pride in our staff complement as their

hard work would be recognized often at the highest levels. %ommunicating such

achievements often gives customers a feeling that they can rely on the product and this

builds strong customer loyalty

Public Relations

"ecognizing that we are relatively new on the market there will be a need to organize

an event of grandeur nature introducing ourselves onto the market. t this we intend to invite

potential customers senior officials including the &inister of ,ndustry and %ommerce and

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other stakeholders so as to penetrate the market. ,n collaboration with this we also intend to

place news stories and features in magazines and newspapers to keep stakeholders updated

on the latest developments and to increase awareness. This will assist in the recognition and

appreciation of our company in the surrounding community especially. 3ur efforts on

community service will show that the company has its community at heart contributing

towards the establishment of a good and reputable image. ?omes for the under privileged will

be also be built in the medium to long term as we plough back into the society we operate in.

,n addition we intend to pursue educational sponsorship for the less advantaged but

promising young individuals in the community. This will constitute some of our corporate

social responsibility details of which are provided in the respective section.

+e also intend to experiment with a road show in the various often!neglected remote

areas giving out caps bags and other such prizes to individuals who answer questions

correctly. This will also enable our business name and products to be better known by the

respective communities. ?owever we are extremely confident that these road shows if well

planned will be a success as they encourage community participation. ?opefully visitors will

leave impressed and confident in our products adding to the possibility of positive referrals.

Personal publicity

This shall be undertaken in the form of sales calls whereby a sales person will go out

to potential customers and distributors informing them what products we are able to offer

them. ,n addition the sales person will listen to client's needs at close hand so as to ensure

that the product is delivered timely and that it is the right product as demanded by the

surrounding community. %lose analysis shall also be undertaken of the respective

communities. This will ensure that our products are customized as much as possible to the

surrounding community's needs and wants. ,n cases where there is the opportunity of

obtaining a large order it may be necessary for the top management to go out personally

especially considering the fact that we are still a relatively new firm in the market.

Direct Marketing

This will be used but only to a limited extent in the form of telemarketing and

informing potential customers and obtaining referrals where possible. ,n the case of

telemarketing it will involve our targeting potential customers5distributors of our products and

informing them of our existence and the products we offer. +e may then arrange for an

appointment with the respective decision!maker5order!maker with the intention being to lure

them into ordering one or more of our product lines.

Internet Marketing

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The increasing growth of the ,nternet as an information source provides an

opportunity that we may exploit. This is particularly so in view of the increasing investment

and global trade amongst countries as both large and small organizations look at obtaining

the best deal possible. &ore often than not these organizations will seek out potential clients

over the ,nternet due to the cost of transport and accommodation apart from the obvious time

factor which is increasingly becoming of importance in view of the dynamic environment.

?owever this will require adequate planning and research so as to establish a professionally

done website. This will mainly serve foreign customers and other stakeholders including

potential investors.

,n all the above we intend to communicate our ability to provide good quality service

that will satisfy the customers needs. ?ence our messages will influence the buying decision

of prospective customers by emphasizing our unique selling proposition and persuade

prospective buyers that we are different from our competitors. ll the above promotional tools

shall be well integrated and utilized in tandem so as to maximize their effect.

.3.$ (istribution channe#

• +e believe that through our obsession for improvement and commitment to a

leadership position in our respective markets we can overcome the traditionally

binding constraints of resource base firm size and narrow conceptualization of our

business domain. This shall be undertaken through coordination and logical

integration of our distribution operations. +e aim to reduce cycle time for key

processes eliminate rework and waste and optimize our human resources utilization.

.$ Sa#es Stratey

+e intend to focus on improving our implementation by working on key objectives

and better coordination of marketing efforts. /or the short term at least the selling process

will depend on personal selling and advertising to lure and inform potential clients about the

products we offer and the benefits of consuming our products. 3ur marketing does not intend

to affect the perception of need as much as knowledge and awareness of the product

categories.

.$.1 Sa#es "orecast

The sales forecast monthly summary is included below. The annual sales projections

are included later in the plan. ,t should be noted that as we become established and known

on the market we project sales to increase at a faster rate than the initial year.

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Sales Monthly

Click to Enlarge

Sales /orecast

Kear 988> 988G 988J

Sales

Katra

others

%ustomer customized

Total Sales

./ Corporate Socia# 4esponsibi#ity

Travel Solutions intends to be involved in a wide range of social responsibility

engagement programs to invest back into the community in which we operate. Through our

social responsibility program we can assist in improving people(s lives. ,f we contribute to

development in a sustainable way we need to support projects that communities bring to us

rather than strictly creating our own solutions for our communities. This is because if we

impose our solution and drive a project it is an artificial response and the risk is that the

project will then always 'belong' to us. +henever the project comes up against a new

challenge we will be expected to fix it and will be forced to stay in a situation where we have

to look after the same few projects forever. "ather we intend to fund several projects that

belong to and will be driven by the community and become sustainable. ?owever before we

commit ourselves to projects we intend to ensure that skills will be transferred communitiesare involved and the projects will be able to become self!sustaining. +e know that we cannot

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address all the development needs of our society. +here we can we assist and sometimes

may form partnerships so as to increase capacity.

5.& 6uman 4esources Summary

Travel Solutions shall evaluate the jobs it provides paying competitive remuneration

packages against market benchmarks to employees for their agreed and set out tasks.

%onsonant with its efforts to create added value by employees Travel Solutions seeks to

negotiate the provision of incentive pay delivery mechanisms against achievement of agreed

targets relating to accomplishment in the areas of productivity enhancement savings and

other specific successes that is the implementation of an effective performance

management system.

?ence our human resources strategy will revolve around)

• %ommunicating openly and transparentlyL addressing strong and trusted)

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o ,nternal communication.

o xternal communication.

o Stakeholder inclusivity.

• "esponding and promoting human rights issues such as equity in the workplace and

in community relations.

• doption of a good remuneration policy aimed at developing our people through

employee benefits training and group initiatives.

• &aintaining preventative health and safety structures for employees and support for

surrounding communities.

5.1 Manaement +eam

The management team mainly comprising of the shareholders has wide expertiseand broad knowledge of the products and markets which if well planned for will enable the

business to realize its goals and objectives. -aily management will consist of &r. mit &.

rampure and &r. Aijay &. "ampure in the role of technical and operations and in dealing

with government corporate bodies and public relations.

&anagement style will reflect the participation of the shareholders. The company

intends to respect its community and treat all employees well. +e will develop and nurture the

company as community. +e do not intend to be overly hierarchical. &anagement's ongoing

initiatives to drive sales market share and productivity will provide additional impetus.

5.2 'ersonne# '#an

+e intend to compensate our personnel well to retain their invaluable expertise and

to ensure job satisfaction and enrichment through delegation of authority. 3ur compensation

will include health care generous profit sharing plus a minimum of three weeks vacation. s

an equal opportunity employer we respect the diversity and human rights of our people and

strive to achieve optimal productivity while realizing the full potential of each employee. wards will be given out to outstanding individuals groups and plants for hard work and

production so as to instill a sense of fun into the work and promote the maintenance of high

standards. Travel Solutions recognizes that our employees contribute fundamentally to the

company's long!term prosperity. +e intend to enhance our capacity to attract and retain

people of quality through benefits such as housing and family education grants.

mployee health shall be of extreme importance. This is because the health of our

people is an integral element of employee well!being at work and at home. %ompliance with

relevant legislation is a minimum target in our organization. +e also intend to minimize if not

totally eliminate the number of isolated incidents of intimidation in the workplace so as to

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ensure that production and distribution are not materially affected and sound relationships are

maintained between employee and employer and between employees as a whole.

*ersonnel *lan

Kear 988> 988G 988J

*resident and %3

3perations &anager

&arketing &anager

3ffice manager

ccount officer

-river!7

-river!9

Total *eople

Total *ayroll

5.3 +rainin

,n!house training shall be continuous with regular external training being undertaken

particularly following any new developments in the market. This is so as to ensure that we are

continuously able to anticipate our markets needs!!a proactive approach which is so

essential if we are to gain and maintain a competitive advantage. ,nternal training will not only

include product and technical aspects but also expand to give much greater knowledge of

customers market trends products new technology aids and time management amongst

other such variables. +e intend to conduct health education sessions for groups and

individuals on health risks in the workplace balanced with lifestyle education and employee

assistance programs that incorporate rehabilitation and counseling in a range of illnesses and

social or personal problems. This is of particular importance in view of the ,-S epidemic that

has grappled the country and continent as a whole to unparalleled levels.

+e acknowledge the fact that successful recruiting motivation and discipline

procedures are keys to the growth of the organization. ?ence we intend to promote and

maintain good labor relations strong morale and high quality work per employee.

5.$ "ee!bac an! Contro#

7. +e intend to use employee satisfaction surveys to shape the business making sure

that the employee understands the goals of the firm is customer focused proud of

their work and work as a team. This will encourage employees to become

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entrepreneurial and customer responsible in addition to unifying staff in customer

focus and values.

9. ,mportant notices and developments will be continuously communicated to employers

so as to keep them abreast of developments and promoting a sense of belonging and

oneness in the organization.

;. +e will encourage our employees to put forward any suggestions they might have

regarding the improvement of any of the company's functions!!an open door

philosophy. Such a culture will enhance innovativeness and creativity in turn leading

to job satisfaction and enrichment.

7.& "inancia# '#an

+e want to finance growth mainly through cash flow and equity. +e recognize that

this means we will have to grow more slowly than we might like.

The most important factor in our case is collection days particularly with the bulk

order customers. +e can't push our customers hard on collection days because they are

extremely sensitive and will normally judge us on our terms. ?ence they tend to have a

certain degree of financial authority. Therefore we need to develop a permanent system of

receivables financing systems using a well!coordinated accounting department. ,n turn we

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intend to ensure that our investors are compatible with our growth plan management style

and vision.

%ompatibility in this regard means)

• /undamental respect for giving our customers value and for maintaining a healthy

and congenial workplace.

• "espect for realistic forecasts and conservative cash flow and financial

management.

• %ash flow as first priority growth second profits third.

• +illingness to follow the company and contribute valuable input to strategy and

implementation decisions.

7.1 mportant ,ssumptions

The financial plan depends on important assumptions most of which are shown in the

following table as annual assumptions. The monthly assumptions are included in the

appendix. /rom the beginning we recognize that collection days are critical but not a factor

we can influence easily. ,nterest rates tax rates and personnel burden are based on

conservative assumptions.

Some of the more important underlying assumptions are)

• +e assume a strong economy without major recession.

• +e assume of course that there are no unforeseen changes in economic policy to

make our products immediately obsolete.

Ceneral ssumptions

Kear 988> 988G 988J

*lan &onth 7 9 ;

%urrent ,nterest "ate

$ong!term ,nterest "ate

Tax "ate

3ther 8 8 8

7.2 8rea-even ,na#ysis

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3ur break!even analysis will be based on running costs that is costs we shall incur in

keeping the business running including salaries and wages rent water and electricity

insurance amongst others. ?ence many fixed costs shall be included in these costs. +e will

thus aim to ensure that our sales levels are running comfortably above break!even.

The following chart and table summarize our break!even analysis. +ith fixed costs of

approximately ##### per month at the outset 1a bare minimum2 we need to bill

approximately ##### to cover our costs. +e don't really expect to reach break!even until

several months into the business operation.

Break-even Analysis

Click to Enlarge

4reak!even nalysis

&onthly "evenue 4reak!even

ssumptions)

verage *ercent Aariable %ost

stimated &onthly /ixed %ost

7.3 Key "inancia# n!icators

The following benchmark chart indicates our key financial indicators for the first three

years. +e foresee major growth in sales and operating expenses and a bump in our

collection days as we spread the business during expansion.

%ollection days are very important. +e do not want to let our average collection days

get above ;8 under any circumstances. This could cause a serious problem with cash flow

because our working capital situation is chronically tight. ?owever we recognize that we

cannot control this factor easily because of the relationship with our clients.

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Benchmarks

Click to Enlarge

7.$ Expense "orecast

,nitial marketing expenses are relatively high as we seek to become known on the

market. This will be brought about by the development of sales literature advertising

expenses and function expenses 1including lunches and dinners with interested

stakeholders2. s our market share increases and capital is generated further marketing

programs and the expansion of those in existence at the time will be undertaken to ensure

market development. 3nce these programs will start generating revenue for the business

which we shall in turn reinvest.

7./ 'rojecte! 'ro)it an! oss

3ur projected profit and loss is shown on the following table with sales increasing from more

than ###### the first year to more than ###### the second and approximately ###### in

the third year. *rofits are calculated to be around ##### before tax the first year during the

start!up phase of this business. This will be representative of a net profit margin of

approximately ##B which though may not seem that impressive is relatively good for a start!

up firm in our line of business. s with the break!even we are projecting very conservatively

regarding cost of sales and gross margin. 3ur cost of sales should be much lower and gross

margin higher than in this projection.

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*ro /orma *rofit and $oss

988> 988G 988J

Sales

-irect %osts

3ther

!!!!!!!!!!!! !!!!!!!!!!!! !!!!!!!!!!!!

%ost of packages Sold

Cross &argin

Cross &argin B

xpenses

*ayroll

Sales and &arketing

and 3ther xpenses

-epreciation

$eased quipment

@tilities

,nsurance

"ent

*ayroll Taxes

3ther

!!!!!!!!!!!! !!!!!!!!!!!! !!!!!!!!!!!!

Total 3perating

xpenses

*rofit 4efore ,nterest

and Taxes

4,T-

,nterest xpense

Taxes ,ncurred

6et *rofit

6et *rofit5Sales

7. 'rojecte! Cash "#ow

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%ash flow projections are critical to our success. -etailed monthly numbers are included in

the appendix. ?owever it should be noted that they do not take into account the required

capital injection.

Cash

Click to Enlarge

*ro /orma %ash /low

988> 988G 988J

%ash "eceived

%ash from 3perations

%ash Sales

%ash from "eceivables

Subtotal %ash from

3perations

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dditional %ash

"eceived

Sales Tax AT

?ST5CST "eceived

6ew %urrent 4orrowing

6ew 3ther $iabilities

1interest!free2

6ew $ong!term

$iabilities

Sales of 3ther %urrent

ssets

Sales of $ong!term

ssets

6ew ,nvestment

"eceived

Subtotal %ash

"eceived

xpenditures

xpenditures from

3perations

%ash Spending

4ill *ayments

Subtotal Spent on

3perations

dditional %ash Spent

Sales Tax AT

?ST5CST *aid 3ut

*rincipal "epayment of

%urrent 4orrowing

3ther $iabilities

*rincipal "epayment

$ong!term $iabilities

*rincipal "epayment

*urchase 3ther %urrent

ssets

*urchase $ong!term

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ssets

-ividends

Subtotal %ash Spent

6et %ash /low

%ash 4alance

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7.5 'rojecte! 8a#ance Sheet

The balance sheet shows healthy growth of net worth and strong financial position.

The three!year estimates are included in the appendix.

*ro /orma 4alance Sheet

988> 988G 988J

ssets

%urrent ssets

%ash

ccounts "eceivable

,nventory

3ther %urrent ssets

Total %urrent ssets

$ong!term ssets

$ong!term ssets

ccumulated

-epreciation

Total $ong!term ssets

Total ssets

$iabilities and %apital

%urrent $iabilities

ccounts *ayable

%urrent 4orrowing

3ther %urrent $iabilities

Subtotal %urrent

$iabilities

$ong!term $iabilities

Total $iabilities

*aid!in %apital

"etained arnings

arnings

Total %apital

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Total $iabilities and

%apital

6et +orth

7.7 8usiness 4atios

The table below shows our business ratios.

"atio nalysis

988> 988G 988J ,ndustry *rofile

Sales Crowth 8.88B 78.88B 79.88B

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*rofit 4efore

,nterest and Taxes

&ain "atios

%urrent

Nuick

Total -ebt to Total

ssets

*re!tax "eturn on

6et +orth

*re!tax "eturn on

ssets

dditional "atios

6et *rofit &argin

"eturn on quity

ctivity "atios

ccounts

"eceivable

Turnover

%ollection -ays

,nventory

Turnover

ccounts *ayable

Turnover

*ayment -ays

Total sset

Turnover

-ebt "atios

-ebt to 6et +orth

%urrent $iab. to

$iab.

$iquidity "atios

6et +orking

%apital

,nterest %overage

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dditional "atios

ssets to Sales

%urrent -ebt5Total

ssets

cid Test

Sales56et +orth

-ividend *ayout

9.& Contro#s

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t and t

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