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Kastaway Island
Business Plan for the Period
Starting January 2002 David Byers 38 Beaverbank Road Lower Sackville, Nova Scotia, Canada 902-865-9090 d.byers@ns.sympatico.ca December 15, 2001
Table Of Contents Executive Summary Business Description Ownership and Management Key Initiatives and Objectives Marketing Opportunities Competitive Advantages Marketing Strategy Summary of Financial Projections Confidentiality and Recognition of Risks Confidentiality Clause Recognition of Risk Business Overview Business History Vision and Mission Statement Objectives Ownership Location and Facilities Products and Services Description of Products and Services Key Features of the Products and Services Production of Products and Services Future Products and Services Comparative Advantages in Production Industry Overview Market Research Size of the Industry Key Product Segments Key Market Segments Purchase Process and Buying Criteria Description of Industry Participants Key Industry Trends Industry Outlook Marketing Strategy Target Markets Description of Key Competitors Analysis of Competitive Position Pricing Strategy Promotion Strategy Distribution Strategy Management and Staffing Organizational Structure Management Team Staffing Labour Market Issues Regulatory Issues Intellectual Property Protection Regulatory Issues Risks Market Risks Implementation Plan Implementation Activities and Dates Financial
Plan Beginning Balance Sheet Discussion of Projected Net Income Pro Forma Income Statement Cash Flow Statement, Year 1 Three Year Projected Annual Cash Flow Balance Sheet Business Ratios Note 1: Revenue Assumptions Note 2: Assumptions Regarding the Collection of
Sales Revenue Note 3: Cost of Sales Assumptions Note 4: Sales and Marketing Assumptions Note 5: Property and Utilities Assumptions Note 6: Operations Assumptions Note 7: Banking and Other Assumptions Note 8: Wages and Other Assumptions Note 9: Other Sources of Funding Note 10: Other Uses of Funding Executive Summary Business Description Adventure * Diving * Kayaking * Canoeing *
Honeymoon * Christian Retreats * Photographers * Hearing Impaired *
Corporate Meetings * Incentive Programs * Water Skiing * Deep Sea
Fishing * Wind Surfing * Theme Parties * Snorkeling * Pre paid
holidays * Our Business is Helping You "Forget"
About Business! Picture a lush Tropical Island with palm trees,
waterfalls and thatched roofs that would offer you adventure and
romance. NOW, imagine this lush Tropical Island floating along the
water offering you a chance to travel in luxury with gourmet cuisine,
unlimited fishing and diving and a chance to relax and try out more
water toys than you could possibly enjoy in one day. The owner has decided to take ten years and travel
around the world, exploring every exotic port, diving it's virgin
waters, treasure hunting for new and old wreck sites, kayaking and
photographing golden sunsets. "KASTAWAY ISLAND" is a 285 + foot steel
Cruise Ship. During your stay on the Island, your home will be an air conditioned cabin
with hot fresh water showers, audio and video entertainment centers,
library with over 500 books and more, (all based on two per cabin). We have a crew of 94 plus the owners to look after
a maximum of 100 guests per week. A percentage of this vessel will be for weekly
cruise charters, the balance will be pre sold as pre paid holiday
packages. This pre paid holiday package is good for a total of ten
weeks over a ten-year period. You will become a "GUEST" on
our Island and you receive a passport. How you choose to use your
weeks is up to you. Great for romantic getaways, family reunions,
birthdays, anniversaries & corporate incentives Three quarters of the earth's surface is water,
while the remaining quarter is land. Mother Nature's intentions are
very clear. A man's time should be divided as thus: ¼ for work, ¾
for cruising. Ownership and Management Kastaway Island is owned entirely by David Byers.
All pre paid holiday package purchases entitle the purchaser to join a
non-profit Society. David Byers is the President & Chief Operating
Officer. There are other positions made from the members such as
Secretary treasurer and Vice President as well as three directors. There is a management company set up to look after
the day to day operations of the vessel elected by the directors of
the Society. This company is called Island Management Inc. and is how
David will derive his income over the next ten years. Key Initiatives and Objectives The primary objective of the company is to pre sell
500 pre paid holiday packages of one week or multiples of one week on
a large vessel that will be sailing around the world. Two million dollars US is required to purchase and
an additional two million to outfit the vessel with the latest in dive
gear, fishing charter gear and upgrade the vessel to Lloyd's class (or
equilivent). Once the vessel has been purchased and the
renovation etc. commenced the web site for the weekly charters will be
started. The weekly charter sales will cover the day to day operating
costs, wages, fuel, food etc. The existing web site will answer most questions
regarding the pre paid holiday packages and the new web site will
address the weekly charter sales. The web site is located at http://www.kastawayisland.com
and the phone number is 902-865-9090 Key Initiatives and Objectives Pre paid holiday packages offers millions of people
a lifestyle of wonderful cost effective vacations for themselves,
their friends and family. Major companies such as Disney, Marriott,
and Hilton have similar resorts. A number of pre paid programs offer
an almost endless variety of choices from skiing in Colorado, relaxing
on the beaches of the Caribbean, hiking in the Canadian Rockies,
exploring Europe, and more. The most important factor in selecting
which pre paid holiday package is best for you is choosing a resort
that best fits your lifestyle and budget. Dive shops offer the greatest marketing opportunity
for this project. Through the Internet we will inform the viewer of
the longest cruise voyage in history. With the Internet millions of
potential customers can be accessed overnight. The transaction will unfold much like a real estate
purchase. We must know if you are serious about purchasing a pre paid
holiday package. You fill out a membership request form and receive a
number from 1 - 500. When we reach 500 potential members our escrow
lawyer will request the funds be transferred to his account. You will have 30 days to send in the full amount.
If you do not, you lose your number and the person / couple that was
listed at number 501 will move up to number 500. If you wish to get
back on the list, it will be at the end of the waiting list. There
will be ONLY 500 pre paid holiday packages offered. To further protect you, a Society is being formed
from the 500 pre paid holiday members. The Society (and in turn the
members) has ownership of the vessel in case something happens to Mr.
Byers or the project. The vessel will be sold and your money returned.
After you use your 10 weeks up, you are no longer a member of the
Society. When there are no members left, the vessel becomes the sole
property of Mr. Byers. Your investment is further protected with insurance
and the entire process should take about 6 - 8 months. Marketing Opportunities Our primary target markets are the divers
throughout the world. Other target markets are those that wish to see
the world one-week at a time over the next ten years. We will offer
unlimited diving to all guests which could be as many as 22 dives per
week. A secondary market will be corporate incentive
cruises. This is where a large company purchases a block of weeks and
every year for ten years gets to send their top producers to a
different place in the world. A third & fourth market would be to those
people that enjoy ocean kayaking & photography. A fifth target market is a diverse group made up of
Christian retreats, corporate meetings, seminars or conventions at
sea. The owner has taken two years of sign language so he can offer
cruises to the hearing impaired. The sixth target market will be deep sea fishing
charters. Competitive Advantages Kastaway Island has many competitive advantages.
The main one is that this has never been done before. Cruise holidays
are the fastest growing market segment in the hospitality industry
today but none on a vessel that will be going around the world slow
enough so every owner of a pre paid holiday package can enjoy each
year in a new and exotic port. The "longest" cruise holiday
in history". The second competitive advantage is the fact that
this will not just look like another big white cruise ship. This
entire ship will look like a lush Tropical Island floating along the
ocean. This will offer an additional competitive advantage
in free advertising Vs the amount other cruise companies pay for the
same advertising. Another advantage is within the diving community.
Avid divers can pay only US $9,800.00 / per couple to dive some of the
most virgin waters in the world over the next ten years. No one else
is offering this kind of adventure, excitement or value for your
money. Marketing Strategy Between the divers, photographers, Corporate
incentive cruises, Christian retreats, corporate meetings, seminars
and conventions at sea, deep-sea fishing charters and kayakers, the
strategy will be to market fun. If you just want to relax enjoy all the water toys
that are provided for your enjoyment, many at no cost to the user Summary of Financial Projections There have been 500 pre paid holiday packages at a
"discounted" price of $9,800 per couple and $5,900.00 per
single person put aside. The assumption is that there will be sales from the
ships store as well as an increase in toy rentals, dive gear rentals, fishing and diving
charters as well as on board film processing, additional liquor sales.
The sale of weekly charters will result in approx.
$90,000 per week or $360,000 per month. The income from all other
sales including shore excursions, E-6 film developing, our own line of
clothing sales, liquor etc. onboard is estimated at between $1,536,000
annually or approx. $128,000 monthly for the first year projections Confidentiality and Recognition of Risks Confidentiality Clause MEMORANDUM OF AGREEMENT ENTERED INTO IN THE CITY OF_______________, PROVINCE OF ____________, ON THE
______ OF ______ 1999. BETWEEN Mr. David Byers AND: __________________ NOW, THEREFORE, THIS AGREEMENT WITNESSETH AS
FOLLOWS: 1. In consideration of viewing any documents by the
Investor, ___________ agrees that during the reading, he/she will
receive various kinds of information, which is of a confidential
nature. Except as authorized by Mr. David Byers (in writing), he will
not disclose or use, either for his own purposes or for any other
purpose directly or indirectly, any information which he obtains
during the course of his reading relating to the business ideas,
technical or business specifications, plans, designs, methods of
marketing including pricing strategies, research and development,
procedures, prices, operating costs, and information (including
documentation, flowcharts, projections and other financial information), future plans, policies and
all other information and knowledge in whatever form used in
management, marketing, purchasing, finance, operations, or otherwise,
concerning the business of the Company which is of a confidential
nature (hereinafter collectively called "Confidential
Information"). __________ acknowledges and agrees that the
restrictive covenants set forth in this Agreement are reasonable and
valid in all respects and agrees that a breach by him of the
provisions of this Agreement would cause the Company irreparable
injury and damage. _________, therefore, expressly agrees that the
Company shall be entitled to injunctive or other equitable relief in
the event of a breach of this Agreement in addition to any other
remedies legally available to it. IN WITNESS WHEREOF, the parties hereto have duly
executed this Agreement. ____________ ______________ _____________ XXXXXXXXXXXX
David Byers Witness
Recognition of Risk This business plan represents management's best
estimate of the future potential of our business venture. It should be
recognized that not all-major risks can be accurately predicted or
otherwise avoided and that few business plans are free of errors of
omission or commission. Therefore readers should be aware that this
business might have inherent risks that should be evaluated prior to
any involvement. Business Overview Business History Kastaway Island is a new venture founded in 1998 by
David Byers. The concept is to take a ten-year around the world cruise
in a large vessel retrofitted for the express use of this project. 14 guests per week will be pre paid holiday
packages and the other 86 will be booked as weekly charter vacations
or paying guests. The only way the owner could think of mixing
business with pleasure was to pre sell holiday packages prior to the
purchase of the vessel in order to be able to secure the funding for
the vessel. The general income will be from the sale of weekly
charters to cover the day to day operating costs. There will be a limited number of pre paid holiday
packages sold (500) which will allow for the purchase of the vessel as
well as the renovation, provisioning, registration, inspections, insurance and a reserve to be put
aside for emergency use. There will be no investor required. There is one space being placed aside for one
support person. At this time this is Mr. Dale Moses. Mr. Moses will
receive "one" berth that will be designated as his property. Mr. Moses will have the opportunity to cruise the
world or secure a return by selling however many weeks he wishes. If
any week is sold by Mr. Moses, the amount it is sold for (usually
worth $2,000 US per week) is split 50% / 50% with the owners in order
to pay for feeding and accommodating the guest(s) the week was sold
to. Vision and Mission Statement Simply put our mission statement is ... "We are in the business of helping you forget
about business". Our vision statement ... We wish to establish a unique alternative to a
hotel room while offering value for your holiday money and a new
exotic port to vacation in every year. Objectives The objectives of Kastaway Island over the next 12
months are: 1. To sell 500 pre paid holiday units at $9,800 US.
2. To secure a cruise ship around the 2 million
dollar US range. 3. To identify the yard where all renovation work
will be completed through a tender process. 4. Complete the search for the crew of this vessel
using headhunters catering to the marine industry. 5. Complete all requirements to have the vessel in
class, Bottom Survey / Annual Loadline and Continuous Machinery, etc. 6. Secure a marine lawyer; establish the escrow
accounts, bank accounts, complete the flagging of the vessel in
Panama, Cyprus, the Bahamas or Greece. 7. Complete a new web site to commence weekly
charter bookings 8. Commence the marketing machine with press
releases; direct email marketing, magazine write-ups, DEMA Trade Show
etc. Ownership The ship’s name will be KASTAWAY ISLAND. The web site is under http://www.kastawayisland.com
The entire pre paid holiday package portion of this
project will operate under a non-profit Society. This Society will
elect a Management Company called Island Management Incorporated. The
bylaws for the Society have already been written. The Society will have a board of Directors and the
Management Company will oversee the day to day operations of the
vessel. The Management Company will be owned in the
following manner: 100% owned by David Byers At the end of the period of ten years (or as soon
as they use up their 10 weeks – which ever is sooner), the rights of
each non-profit member (the pre paid holiday purchasers) will dissolve
and the vessel will revert to 100% ownership of David Byers. The
members will have the security of this vessel until their ten weeks
are used. That is the idea of the non-profit Society and it’s main
function. Location and Facilities Kastaway Island is headquartered on the Internet
under http://www.kastawayisland.com. All information about the vessel, the ten-year trip
around the world, pre paid holiday sales, weekly charters, newsletter,
costs, employment opportunities, the cruise itinerary, legal
agreement, bylaws, and more can be found on this site. The monthly newsletter will be prepared
electronically to keep the viewer informed of where we are, changes in
our plans, what weeks are available for bookings, and more. For maximum protection for the pre paid holiday
package owner, David Byers are setting up this entire project as a
non-profit Society. The members get all of the benefits and none of
the liabilities. The majority of the marketing will be completed on
the Internet. The web page site is completed and we are poised to
start the marketing portion of this venture. A North American toll
free number will be established for ease of contact. Products and Services Description of Products and Services Kastaway Island is offering two products for a
ten-year period. The first product we are offering is the sale of
pre paid holiday packages. The first stage is prior to the purchase of the
vessel and is the best deal available. This pre-purchase offer is for
500 weeks for a one-time fee of $9,800.00 US. The purchaser gets to
use the vessel for ten weeks. The life expectancy of this vessel will be eleven
years. The eleventh year is being put aside to look after any and all
people that had experienced problems due to mechanical breakdown,
strikes, weather or any unforeseen circumstances whatsoever in the
first 10 years. The second product or phase we are offering will be
the sale of weekly charters. This is where the vacationer pays between
$1,295.00 US and $1,995.00 US per person per week, and cruise as they
would on any cruise ship for the week(s) of their choice. Different times of the year the rates will be lower
and others (like a Christmas or New Years cruise) will be more. This vacation is all-inclusive and means that your
accommodation, all meals, some beverages, snorkeling, the floating
trampoline are available for your enjoyment at no cost or very little
cost to you. There are rentals for water toys, unlimited diving,
other water attractions, and more available to all guests. Other activities that will make up the annual
activity list will be Christian and Corporate retreats, ocean kayaking
excursions, deep sea fishing charters, honeymoon cruises and charters
for the hearing impaired. Key Features of the Products and Services The biggest KEY FEATURE is OUR MONEY BACK GUARANTEE
Kastaway Island is offering a money back guarantee
for the first three years. This is unheard of in this industry. We
will purchase the week(s) back from you if you do not want it during
the first three years (minus what you have used). The pre paid holiday package owner can accumulate
weeks for the following year or sell the week and keep the money. The only other fee is the annual upkeep fee of
$450.00. The outside of the ship will look like a lush
tropical island and the inside will have air conditioned cabins. One section of the vessel will have cabins with
theme rooms that anyone can up grade into. Avid divers will experience unparalleled diving
throughout the world in a vessel going slow enough to enjoy the diving
with up to 22 dives per week. No guest will get bored, "guaranteed"!
There are more water toys available than you could possibly use in one
week. The ultimate dive live a board. Production of Products and Services You keep track of where we are in the world via our
Internet web site and our monthly newsletter. You arrange to fly where we are, we pick you up at
the airport, drop you off again and in between you are our guest. Kastaway Island has acquired a network of in-house
desktop publishing systems. In-house desktop publishing systems allow
for high quality publishing and creative control, all at a minimal
cost. This process will be used for the weekly shore
excursions plus an onboard newspaper. All pre paid holiday package sales are through our
office. No high pressure sales tactics or give - a - ways to get you
into a room. There are only a limited number of these weeks available.
Future Products and Services Our future products will include new and exciting
water toys There will be water trikes, a 20 foot floating
trampoline, 2 person petal boats, sea cycles, Scupper ocean kayaks,
yaks which are glass bottomed kayaks, windsurfers, banana boat, jet
skis, water skis and snorkeling. We will offer dive instruction and deep sea fishing
charters. The web site has several pages of color photos of
the water toys for your enjoyment. At special times of the year there will be
"feature" or "theme" cruises. Other special events
will command a higher demand and a special cruise will be planned for
this event if we are in the area. Comparative Advantages in Production By using the proceeds from the prepaid holiday
packages we are able to secure a larger more stable vessel. We can
have the best dive equipment on board and attract and hire the best
Captain and crew available. The weekly charter sales will cover the operating
costs of the vessel throughout the year There will be access to cheaper labor and
materials, as not all the work required would have to be completed at
the shipyard. Lower overhead costs will be realized due to the
fact that the vessel will be paid for outright with the pre paid
holiday package revenue. No large monthly payments will assist with
the competitive advantage. People want to have fun on their vacation. The fact
that this ship will be painted to look like a lush tropical island
floating on the water will offer a large competitive advantage and the
illusion of "FUN" over the plain white cruise ships. Industry Overview Market Research To analyze the market potential of the cruise ship
industry and the pre paid holiday package market; we collected data
from a number of sources. We conducted a survey of dive storeowners in North
America in November / December 1997. The survey results were used to
prepare profiles and gauge what type of pre paid holiday package sales
and charter cruises were in demand. Newspaper clippings and journal articles gleaned
from the local library and the Internet was also used as sources of
market research information. Subscriptions to numerous publications
already in print, newsletters and many books have been secured. Information was secured from the International
Diving Equipment and Travel Trade Show "DEMA" and the owner
has personally spoken with many dive operators offering these services
at present. Copies of Lloyd’s List newspaper have been
secured as well as directories of existing liveaboards, cruise ships,
and travel agents. Boating, yachting and diving magazines have been
purchased and media kits have been secured for advertising rates and
data from all media associated with this industry. We have surveyed current and potential customers,
reviewed research reports and statistics prepared by others, read
magazine and newspaper articles, and spoken to people particularly
knowledgeable about this industry. Size of the Industry There are over 4,400 pre paid holiday package
resorts worldwide. More than 3,200,000 households now own a pre paid
holiday package. Over 560,000 sold in 1995 alone. Over 5 million weeks sold since 1980. Europe represents 28% of the market with 1,200
resorts in 21 Countries. While 1998 figures are not yet available, a similar
increase is expected by industry experts. According to Cruise Lines International Association
(CLIA), in 1999, 5.4 million North Americans cruised on ships owned by
U.S.-based cruise lines, a figure that's up 7 percent over the
previous year. Another 500,000 sailed with cruise lines not based in
the United States. The cruise industry has responded to vacationers'
obvious approval of their product. There are currently dozens of
cruise lines, more than 223 passenger cruise ships of all sizes (up to
100,000 gross tons!) and more than $24 billion has been committed to
building 60 new ships by 2004, increasing passenger capacity by 35
percent. In the 1970s -- the beginning of cruising's heyday
-- no one would have believed that the future would hold ships that
carry as many as 3,000 people, cruise at speeds of 27 knots per hour
and offer features such as 24-hour Internet cafes, non-smoking
environments, rock-climbing walls, skating rinks and virtual reality
centers! But this is all part of cruising today! The cruise industry is experiencing an explosive
growth rate of 8% per year. The worldwide cruise ship fleet includes 223 ships
that carried 9.5 million passengers in 1998; approximately one-half of
this fleet operates in North American waters. Since the movie "Titanic" the cruise ship
industry has experienced a 28% increase in bookings. All industry experts agree that the phenomenal 28%
increase in interest in cruising is a direct result of the movie and
that growth will continue for at least three to five more years. Most cruise lines have indicated that they are
booked for more than 4 - 6 months in advance at the present time.
Carnival and Cunard both broke their all time individual daily booking
figure in January 1998 with over 96,000 bookings in a single day for a
one-week cruise holiday. Key Product Segments Key segments of this industry are all offered by
the weekly cruises. Kastaway Island caters to a wide and diverse group
of people in most every outdoor-related product segment. Some of these
are as follows; Diving and snorkeling excursions Fishing charters Ocean Kayaking Photography Treasure hunting Corporate incentives Christian retreats Honeymooners Hearing impaired cruises Adventurers |
