Seat Sales Forecast:
Our ratio of sales to inquiries of the seats sold, while operating within South India, has been one in three. For the purposes of our sales forecast, we are assuming that only one in five inquiries will actually result in a booking. This is a very conservative estimate.
Cash Flow Projections:
In our Cash Flow projection, we have assumed the whole additional financing has come from investments. We have allowed profit % on the full amount for the whole period. In practice we would hope to finance part of this at least by a line of credit equal to the money actually required. In this way we believe we have made a prudent, conservative provision.
Income Statement :
We expect to make a good after-tax profit . This is before the drawings. Any owner’s drawings will be contingent on performance being better than that expected in the Plan.
View Report
Financials (Projected) :
The projected financials especially the balance sheet at the end of Year One is expected to show a healthy surplus of current assets over current liabilities. We have shown a conservative funding position, which does not include any of the additional capital that we hope to secure.
Performance Ratios :
We plan to move our gross profit up from 21 percent in Year One to 33 percent in Year Three. These figures look quite low, but it should be remembered that our gross profit is really the margin on sale per seat that we earn, not the full price of a trip. Our net income before taxes is strong.
Break-Even:
To break even we will need to sell at-least half of the seats per day. Based on our part-time effort, we feel confident that the break-even point can be attained within a reasonable period of time.
Funds Required and Timing:
We plan to make two major investments: one in Web site and data base development and one in purchase of BUSES. Both these investments need to be made at the outset to ensure that the business creates the right impression from the start. We get only one chance to make a first impression.
BUSINESS CONTROLS
Accounting System :
We will be using a computer-based financial management system. With this system we can review our sales and marketing activities on a regular basis. This will allow us to analyze the profitability of sales of seats through each booking office and agent. Thus we will be able to reward staff on the basis of profit achieved rather than just on sales.
Quality Control :
We will be developing outline scripts to help the sales staff manage inquiries. This will ensure that all incoming phone calls and net-booking are dealt with in the same way and meet a high standard. We will encourage people inquiring about travel schedules to give us feedback on our service:
- Our ability to handle their enquiry
- The amount of time from the passenger’s first enquiry to the date of actual travel
- The passenger’s reactions to the travel program proposed in terms of whether it meets their expectations
Steps for Achieving Goals :
Salabham Vaidyut Private Limited strategy for achieving our goals consists of six major points:
- - Establish an extensive public relations campaign
- - Recruit well-trained, enthusiastic staff
- - Deliver superior knowledge on the business
- - Provide high-quality customer service
- - Offer competitive pricing on travel with excellent service
