business plan
TRANSCRIPT
JARAMOGI OGINGA ODINGA UNIVERSITY OF SCIENCE AND
TECHNOLOGY
SCHOOL OF BUSINESS AND ECONOMICS
BACHELOR OF INTERNATIONAL TOURISM MANAGEMENT
COURSE: TOUR OPERATIONS AND ADMINISTRATION
COURSE CODE: BTM 3323
NAME: FATUMA .W. RASHID
ADM NO: B231/0647/2012
ASSIGNMENT: BUSINESS PLAN
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CLASSIQUE TOURS & TRAVEL
Table of Contents
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EXECUTIVE SUMMARY...........................................................................................................................5
OBJECTIVES........................................................................................................................................6
MISSION.............................................................................................................................................6
VISION...............................................................................................................................................6
COMPANY SUMMARY...........................................................................................................................7
COMPANY DESCRIPTION...................................................................................................................7
COMPANY OWNERSHIP.....................................................................................................................7
START-UP SUMMARY.........................................................................................................................7
COMPANY LOCATION........................................................................................................................8
SERVICES................................................................................................................................................8
SERVICE DESCRIPTION.......................................................................................................................9
SALES LITERATURE...........................................................................................................................10
TECHNOLOGY..................................................................................................................................10
FUTURE SERVICES............................................................................................................................11
MARKET ANALYSIS SUMMARY.............................................................................................................11
MARKET SEGMENTATION................................................................................................................12
TARGET MARKET SEGMENT STRATEGY...........................................................................................12
MARKET NEEDS...............................................................................................................................12
COMPETITIVE ANALYSIS...................................................................................................................13
STRATEGY AND IMPLEMENTATION SUMMARY...................................................................................13
VALUE PROPOSITION.......................................................................................................................14
SWOT ANALYSIS...............................................................................................................................14
Weaknesses.................................................................................................................................15
Opportunities...............................................................................................................................15
Threats.........................................................................................................................................15
MARKETING STRATEGY....................................................................................................................16
POSITIONING STATEMENT...............................................................................................................16
SALES STRATEGY..............................................................................................................................16
SALES FORECASTS............................................................................................................................17
STRATEGIC ALLIANCES.....................................................................................................................17
MANAGEMENT SUMMARY..................................................................................................................17
MANAGEMENT TEAM......................................................................................................................18
PERSONAL PLAN..............................................................................................................................18
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FINANCIAL SUMMARY.........................................................................................................................19
IMPORTANT ASSUMPTIONS............................................................................................................19
KEY FINANCIAL INDICATORS............................................................................................................20
PROJECTED CASH FLOW..................................................................................................................20
PROJECTED BALANCE SHEET............................................................................................................21
BREAK EVEN ANALYSIS....................................................................................................................22
CONTINGENCY PLAN............................................................................................................................22
REFERENCES........................................................................................................................................24
EXECUTIVE SUMMARYKenya is host to the annual wildebeest migration which only happens in the world. One of
nature’s most impressive displays of wildlife, the migration can be seen in the Mara-
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Serengeti where over two million animals migrate in a year-round pattern following the rain
and greener pastures.The country is home to some of the best national parks and game
reserves in Africa with diverse ecosystems, from snow capped mountains, semi- arid desert
regions and rainforest to acacia-studded savannahs, flamingo lakes, white palm-fringed ocean
beaches and coral reefs. Sitting astride the equator, Kenya enjoys a good year round climate
and has a sophisticated infrastructure with a variety of excellent accommodation options in
hotels, lodges, luxury camps, tree hotels and private luxury mobile camps in prime wildlife
locations.
An opportunity for Classique Tours and Travel success is highly guaranteed because of the
facts about Kenya. Classique Tours and Travel will take advantage of the diversity present in
Kenyasuch as climate inorder to grow. Impacted with knowledge of sustainable development,
Classique Tours and Travel will hire dedicated, experienced, hardworking, passionate,
capable and qualified staff, excellent networking with both domestic and international
tourism bodies like Kenya Association of Tour Operators (K.AT.O), International Air
Transport Association (I.A.T.A), Magical Kenya, Ecotourism Society of Kenya (E.S.K) and
also Kenya Wildlife Service (K.W.S) and will also ensure effective marketing and
management.
Classique Tours and Travel will provide luxury safari, Travel and adventure packages to both
domestic and international tourists especially from the west. Services to be provided include
custom packages according to clients’ specifications, pre-arranged tours and
travelconsultation. It will have a competitive advantage over others in the industry by
providing more, smaller package tours enabling tourists to have a variety of choices and also
ensuring appreciation of nature through informative briefings for sustainable competitive
advantage.Our services will be of extreme quality, informative and tailored to customers taste
as well as appreciation of the natural environment and heritage of Kenya as a destination.
Being a new company, the marketing strategy will primary focus on ensuring customers
become aware of our existence and the variety of service we will offer to fulfill their needs.
We will focus on delivering the right information to our target group by having broad out-
reach program through media, special events, full-operating service website when pricing our
products, we will bear in mind the economy of both Kenyans and the source market country’s
economies. Our promotional strategy will include special events, public relations, direct
marketing under marketing, and advertising through the media, personal selling and having a
full-service website for more information on our services. We project sales to increase from
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more than sh. 4,000,000 for the first year to more than sh. 5,508,000 the second and
7,182,000 in the third year. In conclusion we not only focus to have high sales but have a
broad market share, high brand recognition and ensure sustainability and be reputable in the
region.
OBJECTIVESWe intend to attain the following objectives,
Have the highest levels of client satisfaction than our competitors in the industry.
Continuously provide quality and enjoyable packages to our clients.
Fully comply with regulations of K.A.T.O and other registering bodies.
Contribute to the local community and ensure protection of our environment.
Develop Classique Tours and Travel brand to facilitate customer retention and
establish alliances with service providers nationally and internationally to broaden our
channels and network.
Achieving huge sales in the first year and in the subsequent years.
MISSIONThe mission of Classique Tours and Travel is to provide unique, luxury safaris, travel and
adventure packages, to maintain high efficiently in order to remain competitive. We seek to
be flexible and be able to forecast. To efficiently run operations by having loyalty, self
discipline, smartness and hard work in order to maintain world class standards hence, the
company hopes to offer long and rewarding employment where your personal welfare is the
company’s first priority.
VISIONTo be a world of standard tour and travel company in the tourism industry by accepting
change for the better, as our strongest asset for continuous positive improvement
COMPANY SUMMARYCOMPANY DESCRIPTIONClassique Tours and Travel will form as a private limited company registered as an honorary
member of Kenya Association of Tour Operators (K.A.T.O) after its inception in 2016. Our
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commitment to our clients is that we will provide local market knowledge, resources both
nationally and internationally, creativity, commitment and innovation for the success of our
firm and the satisfaction of our clients. We will also provide luxury safaris, Travel and
adventure packages to both domestic and international tourists. Services to be provided
include custom packages according to clients specifications, pre-arranged tours, travel
consultation, escorted as well as unescorted tours.
COMPANY OWNERSHIPClassique Tours and Travel will be owned by Fatuma Rashid as the Managing Director;
overseeing the entire operation including application of strategic business solutions and
development and ensuring our company sets standards in travel management. Additional staff
will also be required.
START-UP SUMMARYThe initial start-up capital requirements for Classique Tours and Travel will be used to
purchase the following.
Start-up expenses Kenya shillings
Laptop 20,000
Brochures 40,000
Legal formalities 20,000
Insurance 40,000
Rent 80,000
Stationery 2,000
Hired Vans/Buses 10,000
Research and development 10,000
Salaries for first 3 months 570,000
Business plan Compilation 500
Total start-up expenses 792,500
Start-up assets Kenya Shillings
Fixed assets
Current assets
1,200,000
800,000
Total assets 2,000,000
Liabilities Kenya shillings
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Long-term liabilities
Bank loans
Salama N.G.O
100,000
100,000
Short-term liabilities
Creditors
Bank overdraft
Customer advances and deposits
Accounts payable (Rent)
400,000
50,000
250,000
200,000
Total liabilities 1,100,000
Capital Kenya shillings
Capital
Savings
Angle investors (friends)
450,000
150,000
300,000
Total capital 900,000
COMPANY LOCATIONClassique Tours and Travel office will be located at a commercial building, Yaya centre 2nd
floor, opposite Coptic Church at Gitanga road. From the city centre Nairobi, immediately
after hurling ham shopping centre. The office will be fully staffed and equipped.
SERVICESClassique Tours and Travel intends to offer luxury safaris, travel and adventure packages to
customers. These will be based on consumers’ profile whereby activities provided will be
based on
Age
Budget
Educational background
Destination
Activity
Time of travel
Training of an individual.
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Travelers will be able to select areas of interest according to their preferences and decide on
destinations to visit. Our aim is to provide travelers with a unique feeling of great adventure
and luxury and for them to fully appreciate destinations for their satisfaction.
SERVICE DESCRIPTIONClassique Tours and Travel intends to offer great service and knowledge to our travelers
while on vacation. Pre-trips, services to be provided will include, assistance to obtain visas,
assistance with arranging airfares, travel insurance, passports, making suggestions regarding
packing, car hire services, airport transfers and health and vaccination advices. Carefully
designed itineraries will be sent prior to the tours online and will be given to customers on
arrival at airports
Arrangements regarding lodging, food and entertainment will be made known to travelers
early enough and in case of emergencies, our contacts will be on for medical, diplomatic and
arise of financial emergencies. Guide books will be mailed to travelers prior to travel dates.
The luxury safaris, adventure and travel destinations to take our travelers include;
OL PEJETA AND SWEETWATERS
Olpejeta is a 90,000 acre conservancy which is home to an amazing variety of wildlife
including Africa’s only four remaining northern white rhino. The sweetwaters game reserve
began life as a sanctuary for black rhino and has since become home to the sweetwaters
chimpanzee sanctuary.
MAASAI MARA RESERVED
Adjoining Tanzania’s Serengeti, the Maasai Mara is Kenya’s finest game reserve and home
to abundant wildlife. The OlKinyei, Naboisho and OlareMotorogi conservancies form a
stunning wilderness area adjacent to the Mara reserve which has been set aside for wildlife by
the local maasai community.
WATAMU BAY
Watamu is located north of Mombasa, near Malindi. This is one of Kenya’s finest beaches
and the site of a marine national park offering excellent snorkeling and scuba diving. The
nearby ArabukoSokoke forest is a bird watcher’s paradise and the extensive inland Mida
creek hosts a wide variety of splendid birdlife. Within Watamu Marine national park is the
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Hemingways resort, a seventy eight bed hotel and Turtle Bay beach club, which is Kenya’s
first all inclusive beach resort.
LAMU ISLAND
Lamu is a small island off the north-east coast of Kenya. The waterfront Swahili town of
lamu is made up of historic-arabic style buildings and narrow bustling streets. There are no
cars on the island and lamu is untouched by mass tourism. The choice of hotels
includesKijani house which is a small attractive hotel situated on the Shela channel, Peponi
hotel, a family rum hotel with sea views. There are private holiday homes, the shela houses
and also secluded chalets available at kipungani explorer. Beach hotels on MandaIsland
include Diamond beach village, Manda Bay and the Majlis.
AMBOSELI AND SELENKAY
Amboseli National park is situated at the foot of Mount Kilimanjaro and is one of Kenya’s
most popular national parks. The Selenkay conservancy can be found ten miles north of
Amboseli National park and is unspoiled wilderness with a limited number of visitors
allowed.
SALES LITERATUREClassique Tours and Travel has very beautiful brochures that describe its services, prices and
terms. The brochures will be developed as part of start-up expenses including business cards
and company profile. They were printed by the Macmillan press in Kenya and will be mailed
to potential customers upon request. Additional brochures will be stocked at Classique
premises to be used for campaigns and sales promotion materials. Our email address will
always be active so as to respond and give information about the company, its hosts, travel
dates, prices, booking and reservation information as well as terms and condition.
TECHNOLOGYClassique Tours and Travel will ensure that it has the latest personal computer including
relevant soft ware’s that ensures the company is in the frontline in the market. Since the
tourism industry is very dynamic. Travelers are aware of implications of using new
technologies. Since we are a starting company, it will take time to have in place our website
and other presentations.
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FUTURE SERVICESClassique Tours and Travel will currently offer luxury safaris, travel and adventure packages
to customers. Our understanding of the market and needs of travelers is critical for our
intention to broaden coverage by branching out, that is having more offices at different
locations in Kenya. We also intend to extend packages being offered so as to give travelers a
wide variety of choices. By having more travel agents selling our packages in the future,
travelers will increase in numbers and hence the variable mark-up. As time progresses, the
intention will be to provide the best tour packages in the whole of Africa.
MARKET ANALYSIS SUMMARYTourism is a crucial part of Kenya’s economy according to the most recent figures. Luxury
travel spending (inbound and domestic) generated 65.4% of direct Travel and Tourism G.D.P
in 2013 (Ksh. 207.8bn) compared with 34.6% for business travel spending (Ksh. 109.8bn).
It’s expected to grow 1.9% in 2014 to Ksh. 211.7bn, and rise by 5.2% pa to K.sh 350.1bn in
2014. The direct contribution of travel and Tourism to Gross Domestic Product was Ksh.
183.4 bn (48% of total GDP) in 2013, and is forecast to rise by 2.7%in 2014, and to rise by
5.2% pa from2014-2024 to Ksh. 314.1bn (4.7 % of total GDP) in 2014. The total contribution
of employment as a result of Travel and Tourism in 2013 includes jobs indirectly supported
by the industry, was 10.6% of total employment (589500 jobs). This is expected to fall by
0.2% in 2014 to 588500 jobs and rise by 2.3% pa to 737000 jobs in 2024 (10.3% of total).
Visitor exports in Kenya generates Ksh. 161.3bn (17.3% of total exports) in 2013. This is
forecast to grow by 1.3% in 2014, and grow by 5.2% pa, from 2014-2024, to Ksh. 272.1bn in
2024 (7.4% of total). Having undertaken a thorough and comprehensive research of the
market and the needs of travelers, Classique Tours and Travel has an opportunity to make a
valuable contribution in the industry and also be able to achieve its objectives. Kenya has a
strong base of luxury travel compared to other forms of tourism like medical or business
travel.
MARKET SEGMENTATIONClassique Tours and Travel will focus on tourists seeking luxury, travel and excursions in
Kenya for enjoying and appreciating of the numerous attractions in the country. The target
market of our company are both domestic with an income of more than Ksh. 100,000 as well
as those that are 20yrs to 54yrs of age. International tourists especially those from Europe
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and America who are considered as “baby boomers” that is the age of 45-54 years and also
young professional group of 25-35 years. These will include both couples and individuals
with an income greater than $100,000 and are interested in adventure, travel culture and
unique travel experiences.
The target group will include: Travel agents and professionals with an established client base,
particularly in the luxury market, internet. Users seeking sites related to luxury travel and
non-governmental organizations, corporate groups seeking field trips and retreats as well as
university students that want to go for adventure and luxury safaris.
TARGET MARKET SEGMENT STRATEGYOur strategy will include offering packages at affordable prices for both individual and
groups of eight people after taking into consideration the peoples’ budget and organizations.
We will also focus on strategies that involve retaining loyal customers by keeping records
after every sale of packages to travelers so as to develop a strong relationship with them.
These travelers will pass on information about our company to their friends and relatives as
well as acquaintances by word-of-mouth hence acting as sells persons on our behalf. This
will lead to acquiring more customers and hence increase in sales. Targeting those individuals
or groups that seek luxury safaris, travel and adventure will be our main goal. In order to tap
our target market more effectively and efficiently, strategic alliances with several hotels,
lodges and travel agencies will be established.
MARKET NEEDSPotential travelers need to have luxury safaris, travel and adventure packages due to their
busy lifestyle.Travelers need to relax their minds and bodies during a journey. They want to
be taken care of by having their schedule arranged for them, be presented with itineraries on
time, be assisted in getting necessary documents of travel like visa and vaccination advice.
They need to be explained to about the various destinations stated in the brochures and
information on the packages they have selected. In summary, travelers need not feel worried
about their trips and they need to trust the company that they choose to take them to these
tours so that they can enjoy and relax before getting back to their busy lives. Above all they
require quality services.
COMPETITIVE ANALYSISThe Travel and Tourism industry is highly fragmented and very competitive. There are
various types of tourism from luxury tourism, business tourism, health and spa tourism,
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aquatic tourism and also visiting friends and relatives. Direct competition for Classique Tours
and Travel can come from virtually any agency both locally and internationally. Despite the
completion these agencies can be direct sales agents of our company. They are still needed
and therefore they are sought out. A number of new tour firms are also entering the market
and the numbers will continue to increase
MAIN COMPETITORS
Competitors of Classique Tours and Travel are several tour operators offering luxury travel
and adventure packages.
1. Ecobushman International Expeditions.
Its’ an international tour firm that offers its services in Kenya where it has an office.
They have a highly rated website with reviews by clients about their products and
services. Newsletters about their services are emailed to interested persons.
2. Abercrombie & Kent
Also an international firm that is based in Ork Brook Illinois, is the most well-known
and largest luxury tour company in the world. In Kenya they have a branch along
Mombasa road, a- few minutes’ drive to the Central Business District of Nairobi.
They have the advantage of large economies of scale, short distance from the Jomo
Kenyatta International Airport(J.K.I.A), the largest in the country and well established
reputation.
STRATEGY AND IMPLEMENTATION SUMMARYIn order to achieve our goal of providing unique, luxury safaris, travel and adventure
packages, to maintain high efficiency in order to remain competitive. Classique tours and
travel will adopt the following strategies.
1. Provision of quality services to tourists. This will be done after thorough research of
the needs and wants of tourists by asking them how they want services delivered to
them, encourage tourists to provide feedback after tours and rate our services.
2. Extensive marketing and promotion strategies. This will help us reach our target
market, attract potential clients and staying ahead of competition in the industry.
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3. Being consistent and building our image. Services will be provided at all seasons
whether peak or off peak seasons and also being distinctive in our service provisions
VALUE PROPOSITIONClassique Tours and Travel value preposition comes from the dedicated, passionate team that
are well aware of the needs of tourists and the market knowledge regarding trends in tourism
in the 21stcentury. The managing director of the firm will work together with her subordinates
effectively and with confidence. They will combine their various passions and hobbies like
the love of nature and exploration of the wild and translate these feelings to the tourists they
serve.
SWOT ANALYSISThe following is the SWOT analysis of Classique Tours and Travel compared to other direct
and indirect competitors of the firm.
Strengths
Location. The location of our firm is in a suitable location near a large shopping mall,
a church and a few minutes from the city of Nairobi, access using road will be swiftly
this area does not experience traffic jam unlike other areas.
Large and diverse client base. This will reduce our dependency on one particular
market as we offer diverse services from adventure, luxury safaris to travel packages.
Qualified employees. The managing director intend hire well-qualified and
experienced employees that will serve wholeheartedly so as to achieve the objectives,
mission and also vision of the firm.
New reputation. The company will undertake extensive advertising and marketing,
promoting both its name as well as service/product awareness. Hence an aggressive
and focused marketing campaign with clear goals and strategies shall be one of our
major aim.
Weaknesses
Brand awareness. Classique tours and travel lacks reputation in comparison to its
competitors. This is due to the fact that it is still new on the market.
Organization structure. The introduction of new organizational practices and
personnel who have not previously worked together presents a challenge to the
organization.
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Finances. Limited finances as opposed to competitors of our tour firm.
Opportunities
Statistics of tourism. It shows that tourists are moving from the traditional travel of
visiting the coastal region of Kenya for sand and sun this presents an opportunity for
our firm to thrive.
Increased growth rate of tourism. This presents an opportunity for Classique Tours
and Travel to take advantage of. This is further supported by the Kenya Tourist Board
(K.T.B) which is responsible for marketing and promoting Kenya as a destination
both locally and internationally.
Tourism has a wide variety of products and services that can be combined into very
attractive packages, Classique Tours and Travel have an opportunity to increase its
products in the future.
Threats
Well established client base by our competitors that have been around for many years
and understand the changes in needs and wants of tourists more than us.
Existing competition. From other firms in the tourism industry.
Existing and established travel agencies, hotels, airlines, car hire services and other
accommodation facilities may look at the development of new lines and vertically
integrate transportation so as to provide additional services to clients.
Target market. Companies that share with us customers may have new marketing
strategies and tactics aimed at providing excursions of our intended nature.
Barriers to entry. There are low barriers to entry for tour operation business. This
attracts more entrepreneurs to venture into this sector of tourism.
MARKETING STRATEGYClassique Tours and Travel will strive to achieve its objectives and ensure customers
satisfaction by ensuring that it retains its customers. This will enable it have an established
client base that will build its reputation and advertise its services. This is at their original
homes and at destination where they are trained.
Activities to be included when marketing Classique Tours and Travel will include;
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Advertising: This will be done byprinting T-shirts and having pens bearing the logo of
Classique Tours that would be given to tourists on arrival. At the end of the tours, visitors
will go with these items home hence spreading information about our company.
Brochure: Information about our company will be printed on brochures that will include
location of the company, destination of travel,terms and condition, packages offered and also
emergency contacts. This will make it easy for potential travelers to try our company.
E-mail: Our mail will give timely responses to clients regarding their questions, sharing of
experiences and will also accept any suggestions regarding improvement of our services.
Informal marketing: Our Company will not pass any opportunity present for marketing
such as attending conferences, through exhibitions so that it can be known. We will join
organizations that are well known and that will accredit us for our efforts. Our company will
be certified and legal
Customer-Based marketing: This will include giving discounts to clients that will have
repeat visits so as to encourage them to come more frequently to use our services.
POSITIONING STATEMENTClassique Tours and Travel intends to offer products that will be directed at couples,
university students, internet seeking users looking for luxury destinations, non-governmental
organizations, our travel agents as well as corporate groups.
SALES STRATEGYThe aim of Classique Tours and Travel is to provide tourists with satisfying services of travel,
luxury and adventure packages. We believe that by doing this we will secure huge profits and
minimize on our costs. Providing quality and satisfying services will also lead to retaining of
existing customers which is cheaper than attracting new ones hence saving on our costs.
SALES FORECASTS
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Year 1 Year 2 Year 30
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Sales by Year
ServicesTours
Keny
a sh
illin
gs
STRATEGIC ALLIANCESStrategic alliances will be developed with different organizations. The Kenya Tourist Board
(K.T.B) that is responsible for the marketing and promotion of Kenya as a tourist destination
both locally and internationally. The Kenya Association of Tour Operators (K.A.T.O)
whereby we will comply with their rules and regulations and set standards of performance.
Hotel chains like the Serena group of Hotels where our tourists will take accommodations at
high discounting rates. Salama Women Group which is a non-governmental organization that
trains women on sustainable forms of energy to use at home. This will help us get closer to
the locals and hence help each other in the conservation of the environment. All these
organizations will help in the promotion of Classique Tour and Travel.
MANAGEMENT SUMMARYThe human resource manager will be responsible for ensuring that all employees required
currently and in the future are highly qualified, motivated and ready to take risks in this firm.
Satisfying customers’ needs should be the priority of every employee in the organization.
Recruiting of employees for now, will be through headhunts but later on when we have an
established website, we will engage in online advertisements of our vacancies.
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MANAGEMENT TEAMThe owner of Classique Tours and Travel will be the Managing Director Miss. Fatuma
Rashid who will have completed undergraduate degree of Bachelor of International Tourism
Management by the year 2015. Being a fresh graduate from the university, she is impacted
with knowledge, skills on the new trends and issues and latest technologies in tourism. She
will be responsible for overseeing all financial records after the financial controller, keeping
them and making final decisions in the firm bearing in mind the welfare of both the
employees and customers. She has social skills and a training in French and peer counselling.
With the help of the major employees like Human resource manager, financial controller,
Tours and Travel Operations manager and Marketing Head. We believe in a brighter future
and steering our firm into the future for much more.
PERSONAL PLANClassique Tours and Travel intends to pay its employees fairly and on time so that we can be
able to retain then. This will motivate employees to work harder and passionately so as to
offer quality satisfying services to tourists and avoid conflicts between them and the
Managing Director.
PERSONAL PLAN
Year 1 Year 2 Year 3
Managing Director K.sh 0 K.sh 600,000 K.sh 840,000
Human Resource Manager K.sh 300,000 K.sh 400,000 K.sh 500,000
Financial Controller K.sh 420,000 K.sh 500,000 K.sh 600,000
Tour & Travel Operations Manager K.sh 300,000 K.sh 400,000 K.sh 500,000
Marketing Head K.sh 480,000 K.sh 700,000 K.sh 750,000
Tour Guide K.sh 60,000 K.sh 72,000 K.sh 144,000
Cleaner K.sh 24,000 K.sh 36,000 K.sh 48,000
Total payroll K.sh 1,584,000 K.sh 2,708,000 K.sh 3,382,000
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Organizational chart of Classique Tours and Travel.
FINANCIAL SUMMARYAs a result of increased marketing efforts by Classique Tours and Travel, sales volume and
gross margin are expected to increase. Huge amount of money is needed so as to allow a
negative cash flow during start-up. Investment will also be needed to acquire the necessary
assets and liabilities for the company.
IMPORTANT ASSUMPTIONS1. The cost of borrowing loans from financial institutions will not fluctuate
drastically within the first three years
2. Market growth research projections are accurate
3. International conditions and relationship between the source market countries
and Kenya will remain the same in the coming years
4. Natural calamities or disasters such as flooding, famine or earthquake will not
significantly affect traveling in the future.
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Managing Director
Financial Controller
Tour &Travel Operations
managerMarketing Head
Human Resource Manager
KEY FINANCIAL INDICATORS
Sales Gross Margin Operating Expences0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
Benchmarks
Year 1Year 2Year 3
PROJECTED CASH FLOWPROJECTED CASH FLOW
Year 1 (sh.) Year 2 (sh.) Year 3 (sh.)
Tours 3,000,000 4,000,000 5,000,000
Services 250,000 500,000 600,000
Sales Tax, V.A.T, 150,000 300,000 500,000
New current borrowing 200,000 500,000 700,000
New long-term liabilities 180,000 300,000 0
Additional cash received 200,000 188,000 362,000
Sale of land 0 0 0
Membership fee of K.A.T.O and
others
20,000 20,000 20,000
SUBTOTAL CASH RECEIVED 4,000,000 5,808,000 7,182,000
Laptop 20,000 300,000 0
Brochures 40,000 78,000 100,000
Legal formalities 20,000 50,000 70,000
Insurance 40,000 60,000 80,000
Rent 80,000 80,000 190,000
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Year 1 Year 2 Year 3
Stationary 2,000 7,000 10,000
Hired Vans/ Buses 10,000 300,000 600,000
Research and Development 10,000 25,000 150,000
Salaries for the first 3 months 570,000 0 0
Payroll 1,584,000 2,708,000 3,382,000
Business plan Compilation 500 0 0
SUBTOTAL CASH SPENT 2,376,500 3,608,000 4,582,000
Net Cash flow 1,623,500 2,200,000 2,600,000
Cash Balance 1,623,500 3,823,500 3,400,000
PROJECTED BALANCE SHEETThis will show the planned and financial position of Classique Tours and Travel considerably
in year two and three.
PROJECTED BALANCE SHEET
Year 1 Year 2 Year 3
Assets Sh. Sh. Sh.
Fixed assets 1,200,000 2,500,000 3,500,000
Current assets 800,000 1,000,000 1,500,000
Total assets 2,000,000 3,500,000 5,000,000
Liabilities Sh. Sh. Sh.
Long-term liabilities
Bank loans
Salama N.G.O
100,000
100,000
500,000
150,000
500,000
0
Short-term liabilities
Creditors
Bank overdraft
Customer advances and deposits
Accounts payable (Rent& Electricity)
400,000
50,000
250,000
200,000
600,000
50,000
400,000
400,000
900,000
100,000
500,000
600,000
Total liabilities 1,100,000 2,100,000 2,600,000
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Capital Sh. Sh. Sh.
Capital
Savings
Angle investors (friends)
450,000
150,000
300,000
900,000
500,000
0
1,800,000
600,000
0
Total Capital 900,000 1,400,000 2,400,000
Total liabilities and capital 2,000,000 3,500,000 5,000,000
BREAK EVEN ANALYSISFor the purpose of break-even point analysis, a clear understanding of marginal costing is
necessary. Our break even analysis will help us strive to be above, the cost of goods sold and
the sales accrued will at one point be the same whereby we will not have any profit.
Year 1 Year 2 Year 30
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
Sales
Sales
CONTINGENCY PLANClassique Tours and Travel is expected to experience various risks that may happen in the
future such as fire, accidents from stationaries available, hackers, theft as well as infestation.
As a result of these, the management has planned ahead and is well prepared to act to these
situations by:
i. Having a fire exit door and fire extinguishers strategically placed at places well
accessed and visible to anyone in the office in case of fires.
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ii. A first aid kit will be available at our office such that if anyone gets bruised or injured
while using the printers, razors or even staplers, they will be attended to.
iii. Our computers will have wall protection as well as a strong anti-virus from the
Kaspersky Company so as to prevent hackers from accessing our information and loss
of data.
iv. Fumigation will be done once per month to avoid having cockroaches or even rats due
to the large piles of paper in the office, these will save the company from
embarrassment and portray an image of cleanliness.
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REFERENCESDUBAI BANK KENYA LTD
Fax: (020) 224 52 42
Email: [email protected]
Mobile: 0720 777776
ICEA Bldg, Gr Flr, Kenyatta Ave.
CHANCERY WRIGHT INSURANCE BROKERS LTD
Website: www.chancerywright.com
Email:[email protected]
Crawford Business Park, Along State House Rd……………… (020) 272 15 55
CBD FOREX BUREAU
Email: [email protected]
Clyde Hse, Gr Flr, Kimathi St..................................................... (020) 224 46 45
AAR
Head office, Fax: (020) 271 53 28
Website: www.aarhealth.com
Email: [email protected]
Williamson Hse, 2ndFlr, $thNgong Ave
LUCKY AUTOS INTERNATIONAL LTD
Email: [email protected]................................. (020) 235 17 93
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