I. Executive Summary
This Section's Contents
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Business Overview
[Company Name] is a vacation rental company located in [Location] that rents residential properties around landmarks and points of interest to provide convenient lodging for travelers.
[Company Name] offers top-rated yet affordable vacation accommodations that can be rented daily, weekly, or monthly. It offers bed and breakfast-style rooms, as well as whole-property rentals.
Products Offered
[Company Name] will offer 5 different property types:
- Cabins
- Waterfront properties
- House or Apartment in town
- Mountain getaways
- Bed and Breakfast accommodations
Customer Focus
[Company Name] will primarily serve tourists and business travelers. The demographics of these customers are as follows:
- 85% domestic tourists
- 15% international tourists
- Average income of $80,700
- 48% married
- 51% in Mgt./Professional occupations
- Median age: 35 years
- Average group size: 2.6
Management Team
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a licensed real estate broker for over the past 20 years. He has spent much of his career working in different real estate agencies where he specialized in rentals for 5 years before moving to specialize in vacation sales for the next 10 years.
[Company Name] will also employ an experienced assistant to help with various administrative duties around the office and a design team that will lead the repairs and renovations that needs to be done.
Success Factors
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a licensed real estate broker for the past 20 years. He has spent much of his career specializing in vacation property sales and rentals. Furthermore, [City] is his hometown, so he is intimately familiar with all the local tourist attractions and desirable neighborhoods.
[Company Name] will also employ an experienced assistant to help with administrative duties around the office and a design team that will oversee new property renovation.
Financial Highlights
[Company Name] is seeking a total funding of $200,000 to launch the business. The capital will be used for funding capital expenditures, salaries, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Office Build-out: approximately $50,000
- Working capital: approximately $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $1,980,125 | $2,832,031 | $3,409,160 | $3,783,447 | $4,100,713 |
| Total Expenses | $1,375,530 | $1,561,763 | $1,866,977 | $2,027,436 | $2,107,349 |
| EBITDA | $604,595 | $1,270,268 | $152,183 | $1,756,011 | $1,993,364 |
| Depreciation | $372,760 | $372,760 | $372,760 | $372,760 | $372,760 |
| EBIT | $231,835 | $897,508 | $1,169,423 | $1,383,251 | $1,620,604 |
| Interest | $164,782 | $144,184 | $123,586 | $102,988 | $82,391 |
| PreTax Income | $67,054 | $753,324 | $1,045,837 | $1,280,263 | $1,538,213 |
| Income Tax Expense | $23,469 | $263,663 | $366,043 | $448,092 | $538,375 |
| Net Income | $43,585 | $489,661 | $679,794 | $832,171 | $999,839 |
