I. Executive Summary
This Section's Contents
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Business Overview
[Company Name], located in [insert location here] is a new charter boat company that focuses on providing a variety of charter boat rentals for experienced and novice sailors alike. The company has a small fleet of charter boats including yachts, catamarans, sailboats, and motor boats. [Company Name] aims to be the most fun charter boat company with the best customer service around.
Products Served
[Company Name] will provide the following different types of charters:
- Bareboat charters that allow experienced sailors to rent the boat and sail themselves
- Skippered charters for the novice sailor or for a relaxed sailing experience
- Full crew charters that provide meals, lodging, and activities
- Party and corporate event charters complete with full crew to provide all the planning, accommodations, and activities for special events onboard the yacht
Customer Focus
[Company Name] will primarily serve residents and tourists within a 30-mile radius of the location. The demographics of these customers are as follows:
- 50,000 tourists to the area last year
- 200,000 residents
- Average income of $66,000
- 49.3% married
- 40.5% in management/professional occupations
- Median age: 40 years
Of the above target market, a significant portion of the population spends thousands of dollars per year on leisure activities.
Management Team
[Company Name] is a family-owned and operated charter boat business that is owned by [Founder’s name] and his immediate family members. The business will be managed by [Founder’s name] and his son [insert name]. [Founder’s Name] is an experienced charter boat captain who has been working in the charter boat industry for more than 20 years as a skipper and tour guide. While [Founder’s Name] has never run his own company before, he has vast experience and first-hand knowledge of how to run a successful charter boat business from his time working for a local charter boat tour company. He also has a bachelor’s degree in Business and has working knowledge of sales and marketing techniques that he can leverage to promote the new company.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The Company will be providing a valuable service for residents and tourists in the area that are looking to take advantage of the local oceans and waterways [location] has to offer.
- [Company name]’s location is situated adjacent to a busy tourist destination with lots of foot traffic from both tourists and locals. In addition, the founder surveyed the local community and received highly positive feedback pointing towards a demand for charter boat experiences and an excitement about using these services after the new business launches.
- The founder has a track record of success in the charter boat industry and is a proven expert in the field.
- The charter boat is a proven business model that has succeeded in communities throughout the country.
Financial Highlights
[Company Name] is seeking a total funding of $3,000,000 of debt capital to open its charter boat company.
- Dock and office design/build: $1,500,000
- Equipment and supplies: $1,000,000
- Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
