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Executive Summary
Southwest Adventure, Inc. provides travel-planning services for European adventure to residents of the Greater Austin/San Marcos area. The service industry, including travel agencies, is one of the fastest growing business sectors of the economy, and Southwest Adventure, Inc. intends to capitalize on the success of this industry by taking advantage of travel opportunities in the state of Texas.
President Jim Smith and Vice President of Sales and Marketing Don Thompson currently hold the company's stock. Prior to starting the Southwest Adventure, Inc. travel agency, Jim Smith co-founded, co-owned, and operated the Southwest Adventure Rock Climbing. He has selected a small team with broad travel, sales, and computer skills, all of whom will be very useful to the new venture. Her co-workers bring a combined total of over thirty-five years of travel industry experience to the agency.
Southwest Adventure, Inc. recently became the selected agents for Discovery Travel, one of the largest and most respected tour operations in the market. With almost no marketing effort, Southwest Adventures, Inc. has sold some 400-adventure vacations in the past eight months, netting $150,000 in commissions. Sales of insurance policies and other services have added to this total, and could potentially add much more. Southwest Adventures, Inc. offers a complete range of services to support the adventurous traveler, including pre and post vacation briefing, travel insurance, and a directory of services specific to each destination and activity.
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Jim Smith, President and CEO, before founding Southwest Adventures, Inc., owned and operated Southwest Adventures Rock Climbing, providing services for the Austin/San Marcos area. Prior to that, he managed the Lubbock branch of one of the larger regional chains of general travel agencies operating throughout west Texas, where he was responsible for managing the office systems and a staff of fifteen. He has a degree in travel and tourism from Texas State University.
In addition to Jim Smith, team members Don Thompson and Ralph Stevenson will be moving into the new project on a full-time basis, and Kelly Turner has been recently recruited to cover Saturdays and vacations. Self-employed business consultant Jack Park will be advising during the business's switch from rock climbing to adventure travel agency.
Don Thompson, Vice President of Sales and Marketing, prior to joining Southwest Adventures, Inc. Don Thompson worked for the marketing department of a major airline. His current responsibilities include the company's direct marketing campaign and all sales-related issues.
Ralph Stevenson, Office Manager, has twenty years as a travel agent and has given the ideal background for Southwest Adventures, Inc. As a salesperson, his expertise in the area of European travel enables him to entice the adventure traveler.
Kelly Turner, Sales Assistant, after completing her undergraduate degree at the Austin Institute of Art, she spent a year traveling abroad and joined the staff just recently as a sales assistant.
Jack Park, Business Consultant, with over twenty-five years of consulting experience in a wide variety of industries, his knowledge and guidance will be helpful to the success of this company.
The volunteer members of the Board of Directors provide guidance to the management and staff of Southwest Adventures, Inc. The board meets twice yearly to discuss policy change, review the mission statement, and update the business plan if needed.
Members include
Toby Miller, retail storeowner
Whitney Wisner, CPA
Kevin Senn, former travel agent
Willis Porter, lawyer
Thomas Chung, human resource manager
Valerie Cook, restaurant owner
Steve Gott, retail storeowner
From desk and field market research carried out on 400 clients, it is clear that there is considerable potential in the adventure travel business. Research indicates that Southwest Adventures, Inc. target market finds it difficult to obtain reliable and dependable advice on destinations and activities. Research also suggests that the customers in this market are unlikely to purchase their vacations again from the firm who provided their last vacation due to a lack of useful sales personnel. Southwest Adventures, Inc. will supply to these needs and develop a strong return-customer base.
Because they are currently the only travel agency focused on European adventure vacations located in the Austin/San Marcos area, Southwest Adventure, Inc. has a considerable opportunity to control the region. In order to maintain and improve their current position in the region, they will need to invest in a Website, as well as database software and systems, etc. Southwest Adventures, Inc. maintains the following advantages over existing competitors ongoing support to clients; extensive knowledge of the European adventure vacation field; superior customer service; specialized training programs for staff; informative Website; competitive rates.
Jim Smith plans to sell his shares in the Southwest Adventures rock climbing company and invest the proceeds in the new travel business, Southwest Adventures, Inc. In addition, he will be investing $70,000 of his own money in the business and seeking $0,000 from outside sources. Return on shareholders investments by year three is likely to be close to one hundred percent. The purpose of the business plan is to communicate this highly money-making opportunity to Jim Smith's partners in the rock climbing industry and to outside investors, and to attract interest in this project. Alternatively, Jim Smith is considering loan finance made up of a $50,000 two-year loan and a credit line of $60,000. In total, about $110,000 will be needed to fund the business during the initial months.
Southwest Adventures, Inc. started as a rock climbing business and has expanded into the travel agency business, with its focus on adventure travel in Europe. Last year Southwest Adventures rock climbing made $00,000 profit on sales of $1,500,000 and employed seven people.
Southwest Adventures, Inc. expects that by concentrating full-time on selling adventure vacations, clients will increase from the present level of 400 (achieved over a eight-month period with only a part-time effort), to at least 00 in the first year, 1,00 in the second, and ,000 in the third. To help achieve this growth, Jim Smith has identified three other tour operators she wishes to represent and has begun negotiations with them.
Selling between two and three vacations a day will allow the business to reach cash flow break even in year one, while marketing a humble profit in year one. By year two post tax profits should be $5,000 and will increase to nearly $510,000 by year three.
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