Business Plan

Developing Karimunjava Isles as An Eco-edutourism Destination

by Empowering the Local Community

By : PERAHU BAU

TABLE OF CONTENT

1. BUSINESS DESCRIPTION ............................................................................................. 1

A. Industry Overview ......................................................................................................... 1

B. Company Summary ....................................................................................................... 2

C. Services ........................................................................................................................... 3

D. Positioning ...................................................................................................................... 4

E. Pricing Strategy ............................................................................................................. 4

2. MARKET ANALYSIS ...................................................................................................... 4

A. Costumer Analysis ......................................................................................................... 4

B. Market Size and Trends ................................................................................................ 4

C. Competition .................................................................................................................... 6

D. Sales Forecast ................................................................................................................. 8

3. START-UP SUMMARY................................................................................................... 9

A. Start-up Process ............................................................................................................. 9

B. Start-up Cost .................................................................................................................. 9

C. Operating Requirements ............................................................................................... 9

4. MARKETING PLAN ..................................................................................................... 10

A. Marketing Strategy ..................................................................................................... 10

B. Distribution Plan ......................................................................................................... 11

C. Advertising and Promotion ........................................................................................ 11

5. MANAGEMENT PLAN ................................................................................................. 12

A. Organizational Structure ............................................................................................ 13

B. External Management Team ...................................................................................... 13

C. Personnel Plan ............................................................................................................. 14

6. FINANCIAL PLAN ........................................................................................................ 14

A. Important Assumption ................................................................................................ 14

B. Profit and Loss Statement ........................................................................................... 15

C. Cash Flow Statement ................................................................................................... 16

D. Balance Sheet ............................................................................................................... 17

E. Funding Request and Return ..................................................................................... 17

APPENDIX ............................................................................................................................. 19

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1. Business Description

A. Industry Overview

Tourism industry is growing. Increasing international arrivals in the world can be

seen in Table 1. This industry is projected to grow at an average annual growth rate of

4.1 percent over the period from 1990 to 2010. In long term view, the Asian market is

the fastest growing one. Being leader with average annual growth rate 7.6% and 6.7%,

without any doubt travel destination in Asia will be the most important destination.

Table 1. International Arrivals by World Region

Updated forecast for the years 2000 and 2010 (millions)

1975

1995

1996

2000

2010

Average annual

growth rate (%)

1990 – 2010

Europe 153.8 338.2 347.4 397 525 3.1

East

Asia/Pacific

8.7 84.5 90.1 122 229 7.6

Americas 50.0 110.1 115.5 138 195 3.7

Africa 4.7 18.7 19.4 25 37 4.6

Middle East 3.6 11.3 15.1 14 21 4.9

South Asia 1.6 4.5 4.5 6 11 6.7

World total 222.3 567.4 592.1 702 1,018 4.1

Source: Global Stats. Corp. 1997

Indonesia is one of the countries in Asia that can be promoted as tourism

destinations. As a tropical country, Indonesia has a lot of unique nature tourism

locations. There are many locations that are not really known by the world and it can be

developed to increase Indonesia’s tourism. This situation gives a big chance for tourism

industry to explore a new location in Indonesia.

Tourism in Indonesia is currently overseen by the Ministry of Culture and

Tourism. International tourism campaigns have been focusing largely on its tropical

destinations with white sand beaches, blue sky, and cultural attractions. Beach resorts

and hotels have been developed in some popular tourist destinations. At the same time,

the integration of cultural affairs and tourism under the scope of the same ministry

shows that cultural tourism is considered an integral part of Indonesia's tourism

industry, and conversely, that tourism is used to promote and preserve the cultural

heritage.

Some of the challenges Indonesia's tourism industry has to face include the

development of infrastructure to support tourism across the sprawling archipelago,

incursions of the industry into local traditions, and the impact of tourism development

on the life of local people. Our company has a marketing strategy and policy to

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overcome those challenges. We develop an eco-edutourism concept in our packages.

We also establish a good relationship with local government to ensure the local society

welfare.

B. Company Summary

Perahu Tour is a full service travel agency that specialized in nature tourism and

provides water activities with professional service in Karimunjava Isles, Indonesia.

Perahu Tour is a limited partnership travel agency owned by Amelinda Angela, Marisa,

and Kevin Angga Saputra. Amel has many experiences in leadership through her

leadership role in some committees, e.g. Fieldtrip to Karimunjava Isles committee.

Marisa has a good sense in market analysis that can be seen from her good score in

marketing management course in the university. Kevin is passionate in developing

Karimunjava Isles and he also has a good relationship with the local community.

Karimunjava Isles is one of the nature tourism destinations in Indonesia that has

not been explored yet. It is known with its well-preserved beach and underwater

ecology. Due to its isolated location, Karimunjava Isles is not a well-known tourism

destination. Perahu Tour provides full service of nature tourism and water activities in

Karimunjava Isles for domestic and international tourists.

Our vision is to become an international travel agency that develops Karimunjava

Isles as an eco-edutourism destination. Our missions are stated as follows:

Maintaining a good quality services and costumer relation.

Implementing internet and Computerized Reservation Systems (CRS) in marketing

system.

Maintaining good relationship with stakeholders, such as Ministry of Culture and

Tourism, local government, and the local community in Karimunjava Isles.

Our objectives are:

Sales of $480,000 by year five.

Maintain our gross margins by 16.75%.

Develop strategic alliances with service providers nationally, internationally, and in

the Jakarta.

We have six strategies in advertising and promotions, which are public relations,

shop front, internet website, customer relations, press advertising, and our association.

We will undertake a small amount of press advertising in order to enhance our public

relations activity. There is considerable research to support the argument that the more

often a potential client hears about you, the more likely they are to approach you when

they have a need for your type of service.

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C. Services

Perahu Tour is a full service agency and provides travelling service to

Karimunjava Isles. Additional services include assistance with visa on arrival and

airline ticket for international tourists. Perahu Tour builds connection between

international tourists and the beauties of Karimunjava Isles. This is the unique selling

point and advantage of our company comparing to other travel agents. Other travel

agents arrange the trip to many locations and not focusing to one location.

Karimunjava Isles is isles that have well-preserved beach and underwater ecology.

However, it remains unknown due to its isolated location. Perahu Tour creates a travel

packages focused on Karimunjava Isles. Perahu Tour offers an eco-edutourism concept

in Karimunjava Isles. Tourists can go diving, snorkeling, and swimming in the sea.

Tourists do not only see the underwater beauties, but also involve in the development of

natural resources such as coral reef and shark cultivation. Besides the underwater

experiences, tourists can also enjoy and learn about local community’s culture. One of

the local community’s cultures is the traditional food festival.

Perahu Tour empowers the local community in Karimunjava Isles as local tour

guide. This is our company’s uniqueness. Our company has a social responsibility to

increase the welfare of Karimunjava Isle’s local community. Perahu Tour does not only

focus to get profit, but also contributes to the development of the location and the local

community.

We provide four packages based on price and the length of stay, as follows:

1) Delight 4D. Transportation from Jakarta to Jepara’s port, ferry from Jepara’s port to

Karimunjava’s port, hotel’s room for three nights, snorkeling or diving, free

underwater photoshoot, shark and reefs cultivation, swimming with shark, ferry from

Karimunjava’s port to Jepara’s port, transportation from Jepara’s port to Jakarta.

2) Delight 7D. Transportation from Jakarta to Jepara’s port, ferry from Jepara’s port to

Karimunjava’s port, hotel’s room for six nights, snorkeling or diving, free

underwater photoshoot, shark and reefs cultivation, swimming with shark, ferry from

Karimunjava’s port to Jepara’s port, transportation from Jepara’s port to Jakarta.

3) Luxury 4D. Flight from Jakarta to Semarang, speedboat from Semarang’s port to

Karimunjava’s port, resorts’s room for three nights, snorkeling or diving, free

underwater photoshoot, shark and reefs cultivation, swimming with shark, ferry from

Karimunjava’s port to Semarang’s port, flight from Semarang to Jakarta.

4) Luxury 7D. Flight from Jakarta to Semarang, speedboat from Semarang’s port to

Karimunjava’s port, resorts’s room for six nights, snorkeling or diving, free

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underwater photoshoot, shark and reefs cultivation, swimming with shark, ferry from

Karimunjava’s port to Semarang’s port, flight from Semarang to Jakarta.

D. Positioning

Perahu Tour sells the concept of eco-edutourism destination. We preserve the

natural resources in Karimunjava Isles by empowering the local community. By

empowering local community, we can preserve their local tradition. Besides, we also

improve their welfare. These are our ways to implement our social responsibility.

We intend to maintain a high service element to our business and extend our

range of value added services such as vacation insurance, individualized pre-vacation

booklets, post-vacation follow up, and continually updating our client database. We will

seek to build up a high level of repeat business. Customer’s loyalty is vital to our

profitable growth.

E. Pricing Strategy

Perahu Tour’s pricing is determined by market standards. Perahu Tour will

attempt to maintain margins of 16.75% on all service packages. Perahu Tour will make

every effort to maintain a competitive pricing policy. However, as Perahu Tour builds

its reputation as the premier provider of eco-edutourism in Karimunjava Isles, it expects

to earn the ability to charge a premium for its services.

2. Market Analysis

A. Costumer Analysis

Our target consumers are individuals or groups in the ages of 18-45. They consist

of international tourists with median household income at the minimum USD 20,000,

also domestic tourists with median household income at the minimum USD 5,000. They

are interested in nature tourism and sport activities such as diving, snorkeling,

swimming, fishing, biking trip, and camping. They like to spend their holiday in a white

sand beach and exotic villages. Our major customers are located especially in urban

areas in Europe, United States, Canada, Australia, and Asia especially South East Asia.

B. Market Size and Trends

The world travel market is forecasted to expand at a 4.1 percent average annual

growth rate until 2010 (Table 1). The Asian market is the fastest growing one. Being

leader with average annual growth rate 7.6% and 6.7%, without any doubt Asia will be

the most important destination.

1) Market Trends

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One notable trend in the travel industry is increasing deregulation. Deregulation has

increased the need for differentiation and has, in many cases, lowered the prices of

airfare and other travel related services. Additional trends include caps on agency

commissions by many of the larger airlines, increasing adventure travel, and

reduction of profit margins. More than 50% of the U.S. adult traveling population, or

147 million people, have taken an adventure trip in their lifetime, 98 million in the

past five years. Approximately, 25 million adults engaged in both hard and soft

adventure activities. Activities most commonly participated in during adventure

vacations: camping (85%), hiking (74%), skiing (51%), snorkeling or scuba diving

(30%), sailing (26%), kayaking or whitewater rafting (24%), and biking trips (24%).

Customers tend to be young and affluent, ages 18-45, and one fourth are from

households with annual incomes of USD 30,000 or more.

2) Market Growth

Service industries represent the fastest growing sector of the national economy, and

travel and tourism agencies are poised to flourish in the midst of today’s economic

boom. These services are projected to grow at an average annual growth rate of 4.1

percent over the period from 1990 to 2010. The travel and tourism industry thrives in

a vital economy. Figures about size and projected growth of adventure vacations

from one recent study (World Adventure Travel Data Corp.) can be seen in Table 2.

Table 2. Adventure Travel Vacations - World forecast (Million Arrivals): 1990 -

2010

Source: WATD Corp. 1997

Destination 1990 1997 2003 2010

Europe

0.25

0.60

1.60

2.35

N. America 0.45 0.60 1.40 2.20

Rest of World 0.10 0.25 0.95 1.10

Total 0.80 1.45 3.95 5.65

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Table 3. Adventure Travel Vacations According Ages

Age 1990

%

2010

%

16 – 24 61 38

25 – 35 20 31

36 – 45 15 25

46+ 4 6

Total 100 100

Source: WATD Corp. 1997

It can be seen that adventure travel vacations increase sharply between 1990 and

2010. Asian market still has a small number of visitors although it possesses the

highest average annual growth rate. It means there are many opportunities to increase

international arrival in Asia without considerable amount of competitors.

3) Market Needs

Many potential customers are unsure of the location where they wish to spend their

holiday. Most of them want to find a nature tourism destination which is unique and

well preserved. Karimunjava Isles has all of the values that they wanted. However,

due to its location, most of people don’t know how to get there. Perahu tour provide

the knowledge they possess about Karimunjava Isles and how to reach there.

Customers look to the agency to provide them with sound advice for a competitive

price. Perahu tour is confident in its ability to do so. Time is a precious commodity.

Perahu tour can save the customer time and money, and help to ensure that they are

satisfied with their vacation. We will make them feel different excitement rather than

ordinary vacation. We offer study of ecology and zoology especially in marine

zoology. With us, they not only get leisure and adventure, but also knowledge and

involvement of nature preservation.

C. Competition

There are many activities and types of travel available to people contemplating

adventure and educating vacation. These substitute products and services are one type

of competition. Theme parks, motor-home trips, and cruises are just a few. Other

substitutes include less expensive, self-planned, or trips geared towards more traditional

types of vacations. In addition, potential customers do not have to vacation. Instead,

they may elect to spend elsewhere, or invest the money. They would have otherwise

spent on a vacation. Direct competition can come from virtually any agency, and there

are several agencies whom specialize in specific destination in Indonesia. However,

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there is no travel agency that specialized in Karimunjava Isles. Lifestyle, age, and

disposable income influence the decision to travel and in which type of travel to

participate.

1) Main Competitors

Until now, according to our market research, we have no direct competitors in our

operation area in Jakarta. However our indirect competitors are:

a. Antatour: established in 1972 as PT China Travel Service. In 25th

March it

changed its name to PT Anta Express Tour and Travel Service (Antatour). It

covered plane ticketing, hotel voucher, MICE, domestic and international tours. In

December 2008 they got ISO 9001:2000.

b. Bayu Buana: Being an industry leader, Bayu Buana able to provide its customers

with the most effective and competitive airfares applicable. Consistently named

Top Agent by major Domestic and International carriers, like Garuda Indonesia

Airways, Singapore Airlines, Cathay Pacific Airways, British Airways, Qantas,

Lufthansa, Air France, Eva Air, Malaysian Airlines, KLM Royal Dutch Airlines,

Thai Airways. Bayu Buana is also the recipient of Abacus Award (Computerized

Reservations System) for Best Performance Agent.

c. Dwidaya Tour and Travel: Established on July 19th, 1967, Dwidaya Tour &

Travel is one of the oldest and largest corporate & leisure travel agencies in

Indonesia. Winner of numerous Top Ten agent awards from all the major airlines

operating in Indonesia, Dwidaya Tour & Travel has also received the "Dirgen

Parseni Cakra Empat" award, the highest award given by the Department of

Tourism to the travel industry.

d. Panorama Tours: PT. Panorama Sentrawisata Tbk is one of Indonesia's leading

travel leisure group of corporations, which over the years, it has been steadily and

systematically developing its position as the leading travel market, and

strategically focusing its operations on 4 (four) business pillars, namely

INBOUND, OUTBOUND, TRANSPORTATION, and MICE. An integrated

portfolio of business, complementary yet well diversified but all have focus in

travel and tourism businesses.

2) Competitive Advantages

The travel agency market is competitive, and technology, namely the Internet

and Computerized Reservation Systems (CRS), has changed the way travel agencies

operate. The Internet gives agencies and individuals the ability to perform travel

related research. Discount airfare brokers have taken advantage of the Internet by

8

offering tickets online at discounted rates. This has increased price competition.

Computerized Reservation Systems have increased the speed and efficiency of the

agency to customer transaction. They have also increased the start-up costs for travel

agencies who wish to be competitive. Moreover, industry competition and the

increased number of travel options available have made it necessary for smaller

travel agencies to establish themselves as specialists in one or more types of travel.

Perahu Tour has done this by positioning itself as a nature tourism and water

activity travel specialist. Perahu Tour has not identified a direct competitor in

Jakarta. However, a travel agency does not have to be a nature tourism and water

activity travel specialist to book a travel trip. Therefore, Perahu Tour will compete

with other Jakarta travel agencies as they offer alternatives to nature tourism and

water activity travel, have the ability to arrange adventure travel themselves, and

have the advantage of established relationships with clients. By concentrating on

Karimunjava Isles, we will be able to have superior product knowledge.

According to our market research, specialized travel agencies like our type of

business have less market share than general travel agencies. But most of client that

used specialized travel agencies would use them again. We aim to increase this

percentage through our superior service.

D. Sales Forecast

Refers to Table 1, we predict that in 2010 Asia Pasific will have approximately

229 million visitors. It means Asia Pasific placed second largest market after Europe

with the largest average annual growth rate. These huge market indicates that travel

business will be long lasting. In the first month, we forecast the sales of 50 packages,

considering Perahu Tour as a start-up company.The monthly rate of sales growth in year

1 is 0.4% and it increases gradually, so that the annual sales growth rate in five year is

about 7%. The projection is based on annual growth rate international arrivals in Asia

Pacific which is 6.7% (Table 1).

We project the sales of USD 480,816 in year 5. In detail, 420 customers on

Delight 4D package, 168 customers on Delight 7D package, 168 customers on Luxury

4D package, and 84 costumers on Luxury 7D package. The detail of sales forecast can

be seen in Table 4 (Appendix).

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3. Start-up Summary

A. Start-up Process

B. Start-up Cost

Perahu Tour’s start-up cost will cover accounting and legal fees, advertising and

promotion, insurance, office rent, salaries, utilities, cost of sales, and start up inventory.

Breakdown of the start-up costs is illustrated as follows:

Start-up Cost USD

Accounting and legal fees 900

Advertising and promotion 300

Insurance 225

Office rent 300

Salaries 1,950

Utilities (electricity, water, phone bill, internet) 285

Cost of sales 23,825

Start-up inventory (computer systems, software, printer, scanner, 2,420

fax machine, stationeries)

Total start-up cost 30,205

C. Operating Requirements

The legal structure of Perahu Tour refers to Indonesia Law Regulation Number 10

Year 2009 about tourism. Perahu Tour preserves natural resources and culture. Perahu

Tour also develops the local communities and facilities. Besides that, Perahu Tour joins

Association of Indonesia Tourism Industry. This association provides a place for

communication and consultation to develop tourism.

Kegiatan Month-5 Month-4 Month-3 Month-2 Month-1 Month 1

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

1. Find place for

office

2. Buy furniture

3. Buy stationeries

4. Setting up

office

5. Contact and

follow up

stakeholders

6. Buy hostname

7. Design web

8. Advertising

9. Launching

10

To control our service’s quality, we will be developing outline scripts to help

manage inquiries. This will ensure that all incoming phone calls are dealt with the same

way and meet a high standard. We will encourage people inquiring about vacations to

give us feedback on our ability to handle their inquiry, the amount of time from the

client’s first inquiry to the date of actual travel, and the client’s reactions to the vacation

in terms of whether it meets their expectations.

4. Marketing Plan

A. Marketing Strategy

Perahu Tour adheres to the theory that the goal of business is to create and keep

customers. Its marketing strategy will reflect this goal as it builds its reputation in the

Jakarta. Though we operate in the travel industry, it provides much more than travel.

We provide adventure, freedom, and ecology study. Many of our customers spend 50

weeks of the year in an office. We offer people the ability to get away and remember

how much they love the challenge, excitement of an athletic endeavour, curiousity about

marine plants and animal, peace of mind, and cultural change. Perahu Tour will promote

the benefits of eco-edutourism. These benefits include better health, excitement,

personal growth, ear-to-ear grins, additional knowledge, and a whole fun.

Perahu Tour will sell the benefits of the services it offers and the activities it

promotes. We sell the freedom that is part of a healthy and balanced lifestyle. The

benefits of that lifestyle are many. People need to be reminded occasionally that there is

more to life than building bigger barns. Perahu Tour can provide clients with all of the

arrangements they can think of and likely they would not have thought of. Our concern

is not to maximize profit on any individual sale but to satisfy the customer. Doing so

will reduce costs and increase profits in the long run. It is less expensive to maintain a

relationship than develop a new one. At Perahu Tour we believe in the benefits of the

activities we promote, and we are confident that we can satisfy the desires of the

seasoned adventure traveller and the newcomer alike.

Customers will be reached through traditional marketing communication methods.

Research suggests that many of our target customers, and travelers in general, are

Internet savvy and many adventure travelers purchase over the Internet or buy through

travel agents. As such, the Internet will serve as an appropriate and effective medium of

communication. We will target the primary customer group initially. This group has

been defined as persons who have purchased or are likely to purchase a specialized

vacation. In addition to the Internet, methods by which we will communicate with

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customers will depend on the results of our marketing research. We will likely use trade

or special interest magazines, mailing lists and direct mail, and personal selling.

Initially, service will be introduced regionally. Sales will be extended into the national

and global markets within a few years of operation. We hope to promote out of season

services through frequent customer contact and through our own publication, most

likely a monthly newsletter.

Besides that, in order to make our way, the local community is also involved in

our business. These part of partneship let the local community to handle all the facilities

in Karimunjava Isles with arrangement from us. We also use local fisherman’s boat as a

transportation from island to island in Karimunjava Isles. We also give training to local

community so they can communicate with international tourist, know how to care the

environment, and also know how to give superb service. And we will encourage local

community to open gift store and held many cultural events so their culture will survive

and all the tourists could bring home part of our culture and not just experience. By

empowering local community in Karimunjava Isles, we ensure our business continuity.

By introducing Karimunjava as an eco-edutourism place, we will give local community

a chance to improve their income, they will keep us as a partner to develop Karimunjava

Isles as a world class travel destination.

With Perahu Tour’s expertise in Karimunjmava travel, we can create customized

travel itineraries for our clients and provide the most thorough, informative adventure

travel service available. By offering superior customer service, Perahu Tour can

distinguish itself from its competitors.

B. Distribution Plan

We plan to distribute and promote our product by Internet and Computerized

Reservation Systems (CRS). We plan to make our own website with attractive and eye

catching design. On our website, we plan to put our company history, package services

description, latest news and updates, special offers, FAQ, and contact person. All of our

international consumers can reserved and book their trip to us by leaving a comment in

our online guestbook or directly contact to Perahu tour by e-mail. While domestic

consumers can go directly to our office, call us, or contact us by e-mail.

C. Advertising and Promotion

Our advertising and promotions will pivot around six key strategies: public

relations, our shop front, an internet website, customer relations, press advertising, and

our association with the PERAHU Tours Association.

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Public relations: we will put considerable effort into preparing and disseminating

a regular flow of press releases. These will based on stories about our destinations,

activities, corporate clients, and our staff.

Shop front: We plan to have an exciting, informative, and actively managed

display window. There will be a video display showing adventure vacations in progress.

Different destinations can be selected from outside the window via a control panel,

otherwise, the scenes will rotate on a random basis.

Internet website: This is fast becoming a major promotional channel, and we

believe it will increase in importance over time. Also, it is the most convenient way for

us to have a global presence at the outset. Furthermore, we plan to build our own

website and we will try to promote and advertise about Karimunjava Isles in general

social network like facebook, twitter, yahoo, google, etc.

Costumer relations: We will keep records of every sales contact. Data such as

source of inquiry, client needs, previous vacation, job, and income will be included. By

having superior information on our clients and prospects, we intend to offer a truly

personalized service. Our database will contain full details on all our clients, including

the vacations they have taken and their post-vacation appraisal data. We will use this

data to encourage our satisfied customers to recommend our services to friends,

relatives, colleagues, and employers.

Press advertising: We will undertake a small amount of press advertising in order

to enhance our public relations activity. There is considerable research to support the

argument that the more often a potential client hears about you, the more likely they are

to approach you when they have a need for your type of service.

Perahu Tour Association: We will write to all past shop clients announcing the

establishment of the travel business and offer them a special introductory eco-edu

tourism vacation package.

5. Management Plan

Perahu Tour is a limited partnership company owned by Kevin Angga Saputra,

Amelinda Angela, and Marisa. All of the owners will share in management duties and

decision making. It will be important for each member of team to be capable in all aspects of

business.

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A. Organizational Structure

Perahu Tour will begin operations with 3 full-time positions. The positions are as

follows.

1) General Manager

Amelinda Angela, age 20. Amel has many experiences in leadership through her

leadership role in some committees, e.g. Fieldtrip to Karimunjava Isles committee.

Her minor study in management also gives her a remarkable knowledge in managing

the organization. Amel is responsible in managing the company and monitoring the

business activities.

2) Marketing Director

Marisa, age 21. Marisa has a good reputation as a creative person in the organization.

Achieving a good score in marketing management course in the university is a proof

of her good sense in market analysis. Marisa’s hobby is travelling. Marisa is

responsible in making an integrated marketing strategy to achieve the company’s

goal.

3) Financial and Operational Manager

Kevin Angga Saputra, age 21. Kevin is good in numbers. Kevin is passionate in

developing Karimunjava Isles and he also has a good relationship with the local

community. Kevin is responsible in company’s operation and financial report.

B. External Management Team

1) Operational Advisor

Frenyline Widjaja, age 27, Tourism Diploma, Trisakti Institute of Tourism,

Indonesia. Frenyline has been working in traveling business since 2002. Frenyline

has experiences in leading tour to seven different destinations in Asia-Pacific.

Frenyline has a certificated Galileo system reservation training on 2005. As a part

timer in the company, Frenyline is responsible in giving advice about company’s

operational and expanding the company’s network.

2) Design and IT Consultant

Benny Fajarai, age 20, owner of Cactus Project. Benny is a young entrepreneur in IT,

especially design, multimedia, and website. As a part timer in the company, Benny is

responsible in designing and maintaining company’s advertisement and website.

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C. Personnel Plan

Perahu Tour does not anticipate the need to significantly increase personnel in the

first five years.

Year 1 Year 2 Year 3 Year 4 Year 5

USD USD USD USD USD

General Manager 6,000 6180 6370 6570 6780

Marketing Director 6,000 6180 6370 6570 6780

Financial and

Operational Manager

6,000 6180 6370 6570 6780

Operational Advisor 2,700 2780 2870 2970 3080

Design and IT

Consultant

2,700 2780 2870 2970 3080

Total People 5 5 5 5 5

Total Payroll 23,400 24,100 24,850 25,650 26,500

6. Financial Plan

Perahu Tour's financial plan is detailed in following sections. Preliminary estimates

suggest that Perahu Tour will experience slow growth in the first year of operation. This is

partly due to Perahu Tour's status as a start-up company and seasonal factors. Perahu Tour

does not anticipate an increase in gross margin. Thus, the overall financial plan presents a

conservative but realistic depiction of Perahu Tour's financial position.

A. Important Assumption

Perahu Tour assumes the following:

1) Market growth projections for the travel industry are accurate.

2) National economic conditions, which are favorable for travel industry, will not

experience significant decline in the next five years.

3) International conditions will remain favorable for service provider and Perahu Tour

will be able to maintain those relationships.

4) Assumption of interest rate is 12% per year and tax rate 15%.

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B. Profit and Loss Statement

Year 1 Year 2

Year 3 Year 4 Year 5

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Month

7

Month

8

Month

9

Month

10

Month

11

Month

12

1st

Quarter

2nd

Quarter

3rd

Quarter

4th

Quarter

USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD

Sales 28620 28620 28904 28904 30322 30322 30606 30606 32358 32358 32358 32642 95840 97592 97592 100478 420122 448742 480816

Direct Costs of

Sales 23825 23825 24061 24061 25242 25242 25478 25478 26937 26937 26937 27173 79782 81241 81241 83645 349734 373559 400260

Gross Margin 4795 4795 4843 4843 5080 5080 5128 5128 5421 5421 5421 5469 16058 16351 16351 16833 70388 75183 80556

Gross Margin % 16,75 16,75 16,76 16,76 16,75 16,75 16,75 16,75 16,75 16,75 16,75 16,75 16,76 16,75 16,75 16,75 16,75 16,75 16,75

General and Administration

Accounting and Legal Fees

900 900 900 900 900

Advertising and

Promotion 300 300 300 300 300 300 300 300 300 300 300 300 900 900 900 900 3600 3600 3600

Bank Loan Payments

547 547 547 547 547 547 547 547 547 547 547 547 1.642 1.642 1.642 1.642 6.568 0 0

Bank Interests 197 192 186 181 175 170 164 159 153 148 142 137 378 328 279 230 427 0 0

Insurance 225 225 225 225 225 225 225 225 225 225 225 225 675 675 675 675 2700 2700 2700

Start-Up Inventory 2420

Office Rent 300 300 300 300 300 300 300 300 300 300 300 300 900 900 900 900 3600 3600 3600

Salaries (Owner or

Directors) 1950 1950 1950 1950 1950 1950 1950 1950 1950 1950 1950 1950 6025 6025 6025 6025 24850 25650 26500

Utilities 285 285 285 285 285 285 285 285 285 285 285 285 855 855 855 855 3420 3420 3420

Total Expenses 7124 3799 3793 3788 3783 3777 3772 3766 3761 3755 3750 3744 12275 11326 11276 11227 46065 39870 40720

Gross Profit

Before Tax -2329 996 1050 1055 1297 1303 1356 1362 1660 1666 1671 1725 3783 5026 5075 5606 24323 35313 39836

Profits Tax 0 0 0 158 195 195 203 204 249 250 251 259 567 754 761 841 3648 5297 5975

Net Profit -2329 -1333 -284 613 1716 2823 3976 5134 6545 7961 9382 10848 14064 18335 22649 27414 48088 78104 111965

16

C. Cash Flow Statement

Year 1 Year 2

Year 3 Year 4 Year 5

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Month

7

Month

8

Month

9

Month

10

Month

11

Month

12

1st

Quarter

2nd

Quarter

3rd

Quarter

4th

Quarter

Cash Revenue

Revenue from Service Sales 28620 28620 28904 28904 30322 30322 30606 30606 32358 32358 32358 32642 95840 97592 97592 100478 420122 448742 480816

Additional Cash Received

Capital Investment 10500

Bank Loan 19705

Subtotal Cash Received 58825 28620 28904 28904 30322 30322 30606 30606 32358 32358 32358 32642 95840 97592 97592 100478 420122 448742 480816

Cash Disbursements

Cash Payments to Trade

Suppliers 23825 23825 24061 24061 25242 25242 25478 25478 26937 26937 26937 27173 79782 81241 81241 83645 349734 373559 400260

Start up Inventory 2420

Salaries 1950 1950 1950 1950 1950 1950 1950 1950 1950 1950 1950 1950 6025 6025 6025 6025 24850 25650 26500

Promotion Expense Paid 300 300 300 300 300 300 300 300 300 300 300 300 900 900 900 900 3600 3600 3600

Professional Fees Paid 900 0 0 0 0 0 0 0 0 0 0 0 900 0 0 0 900 900 900

Rent Payments 300 300 300 300 300 300 300 300 300 300 300 300 900 900 900 900 3600 3600 3600

Insurance Paid 225 225 225 225 225 225 225 225 225 225 225 225 675 675 675 675 2700 2700 2700

Utilities Payments 285 285 285 285 285 285 285 285 285 285 285 285 855 855 855 855 3420 3420 3420

Total Cash Disbursements 30205 26885 27121 27121 28302 28302 28538 28538 29997 29997 29997 30233 90037 90596 90596 93000 388804 413429 440980

Additional Cash Spent

Repayment of Bank Loan and

Bank Interests 744 739 733 728 723 717 712 706 701 695 690 684 2.020 1.971 1.921 1.872 6.995 0 0

Long-term Liabilities

Repayment 875 875 875 875 875 875 875 875 875 875 875 875 2625 2625 2625 2625 10500 10500 10500

Subtotal Cash Spent 31824 28499 28729 28724 29900 29894 30125 30119 31573 31567 31562 31792 94682 95192 95142 97497 406299 423929 451480

Reconciliation of Cash Flow

Opening Cash Balance 0 27001 27122 27296 27476 27899 28327 28808 29295 30080 30871 31668 32517 33676 36076 38526 41507 55330 80143

Add: Total Cash Revenue 58825 28620 28904 28904 30322 30322 30606 30606 32358 32358 32358 32642 95840 97592 97592 100478 420122 448742 480816

Deduct: Total Cash

Disbursements 31824 28499 28729 28724 29900 29894 30125 30119 31573 31567 31562 31792 94682 95192 95142 97497 406299 423929 451480

Closing Cash Balance 27001 27122 27296 27476 27899 28327 28808 29295 30080 30871 31668 32517 33676 36076 38526 41507 55330 80143 109479

17

D. Balance Sheet

Assets Year 1 Year 2 Year 3 Year 4 Year 5

Long-Term Assets

Capital

Amelinda Angela 3,500 0 0 0 0

Kevin Angga Saputra 3,500 0 0 0 0

Marisa 3,500 0 0 0 0

Total Long-Term Assets 10,500 0 0 0 0

Current Assets

Accounts Receivable 366,620 391,502 420,122 448,742 480,816

Prepaid Expenses 8,720 6,300 6,300 6,300 6,300

Total Current Assets 375,340 397,802 426,422 455,042 487,116

Total Assets 385,840 397,802 426,422 455,042 487,116

Liabilities

Current Liabilities

Accounts payable 305,196 325,909 349,734 373,559 400,260

Accrued expenses 23,400 24,100 24,850 25,650 26,500

Taxes payable 1964.42 2923.43 3648.41 5296.95 5975.4

Total Current

Liabilities 330,560 352,932 378,232 404,506 432,735

Long-Term Liabilities

Notes payable 6,568 6,568 6,568 0 0

Interest payable 2,003 1,215 427 0 0

Total Long-Term

Liabilities 8,572 7,783 6,995 0 0

Total Liabilities 339,132 360,716 385,228 404,506 432,735

Net Assets 46,708 73,294 103,988 144,024 187,905

Owner's equity

Paid-in Capital 10,500 10,500 10,500 10,500 10,500

Retained Earnings 36,208 62,794 93,488 133,524 177,405

Total Owner's Equity 46,708 73,294 103,988 144,024 187,905

E. Funding Request and Return

Total funding that is required to start this business is USD 30,205. It covers the

expenses for operational expenses in the first month of operations, i.e. direct cost of

sales, accounting and legal fees, advertising and promotion, insurance, start-up

inventory, office rent, salaries, and utilities. The fund comes from two sources, which

are owners’ investments and bank loan. The owners’ investment will be repaid as

18

paid-in capital. The bank loan is planned to be repaid in three years with 12% interest

rate a year based on average of credit interest rates commercial bank in business

services in Indonesia on September 2010 (Bank of Indonesia, 2010).

USD

Operational Expenses (1st Month)

Direct Cost of Sales 23825

Accounting and Legal Fees 900

Advertising and Promotion 300

Insurance 225

Start-Up Inventory 2420

Office Rent 300

Salaries 1950

Utilities 285

Total Funding Required 30205

Capital

Amelinda Angela 3500

Kevin Angga Saputra 3500

Marisa 3500

Liabilities

Bank Loans 19705

Total Funding 30205

19

APPENDIX

Table 4. Sales Forecast in 5 years

Year 1 Year 2

Year 3 Year 4 Year 5

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Month

7

Month

8

Month

9

Month

10

Month

11

Month

12

1st

Quarter

2nd

Quarter

3rd

Quarter

4th

Quarter

Revenue

Product Sales

Delight 4D 7100 7100 7384 7384 7384 7384 7668 7668 7952 7952 7952 8236 24140 24424 24424 24424 104512 111612 119280

Delight 7D 4840 4840 4840 4840 5324 5324 5324 5324 5324 5324 5324 5324 16456 16456 16456 16940 71148 75988 81312

Luxury 4D 9340 9340 9340 9340 10274 10274 10274 10274 10274 10274 10274 10274 31756 31756 31756 32690 137298 146638 156912

Luxury 7D 7340 7340 7340 7340 7340 7340 7340 7340 8808 8808 8808 8808 23488 24956 24956 26424 107164 114504 123312

Total

Revenue 28620 28620 28904 28904 30322 30322 30606 30606 32358 32358 32358 32642 95840 97592 97592 100478 420122 448742 480816

Cost of Sales

Direct Costs

Delight 4D 5900 5900 6136 6136 6136 6136 6372 6372 6608 6608 6608 6844 20060 20296 20296 20296 86848 92748 99120

Delight 7D 4030 4030 4030 4030 4433 4433 4433 4433 4433 4433 4433 4433 13702 13702 13702 14105 59241 63271 67704

Luxury 4D 7780 7780 7780 7780 8558 8558 8558 8558 8558 8558 8558 8558 26452 26452 26452 27230 114366 122146 130704

Luxury 7D 6115 6115 6115 6115 6115 6115 6115 6115 7338 7338 7338 7338 19568 20791 20791 22014 89279 95394 102732

Total Direct

Costs 23825 23825 24061 24061 25242 25242 25478 25478 26937 26937 26937 27173 79782 81241 81241 83645 349734 373559 400260