The 5 CommodoresKelsey Ellefson

James Sharp Albert Price

Shon DavidsonMollye Peters

Service Idea• Geared towards:

COLLEGE STUDENTS• Transportation to various college

campuses across the state of Indiana

• Students feel safe• Familiar drop-offs at Student

Unions• Fun ride

Why are we Unique?• Cheap fares

• College budget• Save money• Compared to competitors

• Specific Target Market• College students

Form of Business Ownership• Limited Partnership• Owners

• The 5 Commodores

Economy, Competitors, and Global Environment

• Gas Prices• Alternative fuels• Competition:

Greyhound, Peter Pan,

Coach• Compare global services to our business

• Makes our business better

Strength/Weaknesses of BusinessSTRENGTHS

• Affordable• Safe Alternative• Enjoyable atmosphere• Familiar company• Cleanliness• Networking

WEAKNESSES• Price of gas• Time• Size• Need to establish

reputation

Where are we headed?• Not global• Expand from Indiana to Midwest and then

nationally

Who is our Market?

• Age: 18-24 M/F • College Students• Small Budget • Need transportation

Where’s the Locale?• Indiana• Hub in Indianapolis • Branches to University’s throughout

Indiana • 3-4 hours away

Product Usage Characteristics• The 3 C’s

• Comfort

• Cost

• Convenience• Atmosphere

• Safety

• Fun

Marketing Mix • SERVICE-Hip, cool form of transportation for

college students

• PRICE- $32 round trip (including food)• PLACE-A college campus near you!• PROMOTION-

• Direct-Facebook, Website, Flyers, Newspapers, Radio, Memorabilia

• Indirect- Word of mouth

Mission Statement• We provide an alternative, low cost

transportation service specifically for college students. This allows them to travel conveniently and comfortably to other campuses within our network.  At the same time, we provide them with a social atmosphere that is both fun and safe along the way. 

Incentives “Driver of the Month”

Bonus Pay and Job Security

Happy, Excited Customer Who is Having Fun

Quality Excitement and Commitment

to Job

Increases Revenueand Loyalty Board of Directors

Workers/ Employees

Management Philosophy

Organizational Chart

Albert VP MIS

Mollye VP Finance

James VP Sales

Marketing

Shon VP Operations

Kelsey VP Human

Resources

Field Operations

Corporate Manager

MechanicsBus Drivers CashiersSupervisors

Production/OperationsNecessary Resources

• Buses• Bus Drivers• Mechanics• Fuel• Tires• Hub Location• Stops

Funding Requirements

• Human Resources $19,000• Shuttle Bus Rental/Lease $18,000• Advertising & Promotion $3,000• Materials & Supplies $2,000• Other Operating Expenses $35,000

(gas, maintenance, insurance, interest) Total Operating Expenses $77,000

• Equipment Purchases $3,000• Other Capital Expenditures $5,000

Total Capital Expenditures $8,000

Total Funds Needed $85,000

Funding Sources

$6,000 , 20%

$18,000, 60%

$6,000, 20%

Total Owners' Equity

Total Limited Partners'EquityTotal Bank Borrowings

Start Up Funding Requirements

Name Amount

Salaries--Manager $1,000

Advertising $1,000

Rent/Renovations $1,320

Insurance $1,000

Miscellaneous (1% sales) $1,000

Equipment  

Computers & Software $2,000

Other Capital Expenditures $1000

Total $7,320

Profits and Sales 2007-2008 Fiscal Year

($20,000.00)

$0.00

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

Start-Up Quarter 1 Quarter 2 Quarter3 Quarter 4 Total

Sales

Total Expenses

Profit

Profits and Sales 2007-2008 Fiscal Year

($2,000.00)

$0.00

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

$12,000.00

$14,000.00

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Sales

Total Expenses

Profit

Fixed and Variable Expenses for 2007-2008 Operational Year

Total Expenses $76,335.28

Fixed Costs

Name Amount

Managers Salaries $13,000

Rent/Renovations $17,160

Insurance $13,000

Total $43,160

Variable Cost

Name% of Sales Amount

Drivers Salaries 0 $5,984

Maintenance & Repairs 4 $3,941

Total 12 $9,925

Other Expenses   $23,250

Fixed and Variable Expenses for 2007-2008 Operational Year

$0.00

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

$70,000.00

$80,000.00

$90,000.00

Start Up Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Fixed Costs

Variable Costs

Other Expenses

Total Expenses

Division of Total Expenses

56.54%

13.00%

30.46%

Fixed CostsVariable CostsOther Costs

Cash Flow StatementDescription

Start Up

Quarter 1

Quarter 2

Quarter 3

Quarter 4 Total

Beginning Cash Balance $0 $21,680 $26,806 $31,964 $44,566 $0

Initial Equity from Owner $6,000 $0 $0 $0 $0 $6,000

Initial Equity from Limited Partners $18,000 $0 $0 $0 $0 $18,000

Income/Loss ($5,320) $5,126 $9,658 $12,603 $127 $22,193

Bank Borrowings $6,000 $0 ($4,500) $0 $0 $1,500

New Equipment ($3,000) $0 $0 $0 $0 ($3,000)

Ending Cash $21,680 $26,806 $31,964 $44,566 $44,693 $44,693

Ratios• Industry*

• ROS= 7.0%• ROE= 47.2%

• TransportU• ROS= 22.3%• ROE= 92.5%

*Industry and Financial Consulting Services . (2005). Industry norms & key business ratios (p.82). New Jersey: Dun & Bradstreet, Inc.

Conclusion• College students• Indianapolis location• Limited Partnership• 3 C’s• 3 P’s

• Total Funding• $30,000

• Total Expense• $76,335.28

• Total Profit• $22,000

“Travel conveniently and comfortably to other campuses”