Executive Summary 1.1 1.2 1.3 Objectives Mission Keys to Success

4 4 4

2. 0

Company Summary 2.1 2.2 2.3 2.4 Company Ownership Start-up Summary Company Locations and Facilities Company Values

5 5 8 8

3. 0

Products 3.1 3.2 3.3 3.4 Product Description Competitive Comparison Future Prospects Fulfillment

9 9 9 9

4. 0

SWOT Analysis 4.1 4.2 4.3 4.4 Strengths Weaknesses Opportunities Threats

10 10 10 11

5. 0

Market Analysis Summary 5.1 5.2 Market Segmentation Target Market Segment Strategy 5.2.1 Market Needs 5.2.2 Market Trends 5.2.3 Market Growth

13 13 13 14 14

6. 0

Strategy and Implementation Summary 6.1 6.2 6.3 Value Proposition Competitive Edge Marketing Strategy 6.3.1 Product Marketing 6.3.2 Price Strategy 6.3.3 Promotion Strategy 6.3.4 Distribution channel Sales Strategy 6.4.1 Sales Forecast Corporate Social Responsibility

15 16 16 16 16 17 19 20 20 21

6.4 6.5 7.0

Human Resources Summary 7.1 7.2 7.3 7.4 Management Team Personnel Plan Training Feedback and Control

22 22 23 24


Financial Plan 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 Important Assumptions Break-even Analysis Key Financial Indicators Expense Forecast Projected Profit and Loss Projected Cash Flow Projected Balance sheet Business Ratios

25 26 27 27 28 29 32 33


Controls 9.1 Contingency Planning



1. Executive summary

Travel Solution will be a company that will provide the most suitably designed as well as the customized travel packages to its customers. Today's extremely stressful work environment dictates that individuals requires some joyful holiday, this presents an opportunity that we may exploit, and provide them stress-free joyful refreshing holidays with cost competitive and customized packages according to their needs. This project plan is developed to get the required finance for the project. There financing will be required to purchase busses, cars, the working capital and to cover the expenses for operation for first year. The finance available today with the company is about Rs. XXXXXX Travel Solutions will be incorporated as LLC. This will shield the owner Mr. Amit M. Rampure and it will find investors for additional financing to make the company stable. The investors are treated as shareholders. The financing ,in additional to the capital contributed from the owner, shareholders and bank will allow the Travel Solutions to successfully start and maintain the operations through one year. A unique, upscale innovative idea of the travel packages will help Travel Solutions to become successful in first year of its operations. Company will market its products through aggressive marketing, innovative concepts, participating in trade shows, newspaper ads etc. Successful operation in year one will provide Travel solutions a base for its market to move forward with high growth rate.


1.1 Objective
Travel Solution’s objectives for the first three years of operation include:

• •

The creation of a unique, upscale, innovative and customized tour Packages that will differentiate from other companies The formation of a company’s image that will bring people with diverse interests and backgrounds together in a common forum. To serve its customers with best possible quality and provide them more things in price on one.

1.2 Mission

We want to serve our customers with best possible service and provide them the kind of comfort they want. We would also want to customize our tours as per our customers need without reducing joy or quality of tour. People of all ages and backgrounds will come to enjoy the unique, upscale, joyful, and refreshing environment that Travel Solutions provides.

1.3 Keys to Success

• • • •

Serving with best possible quality. Customized and attentive approach to its individual customers Making tour packages more interesting with innovative ideas. Make Tour packages more attractive as well as cost effective. The establishment of Travel Solutions as hub for socialization and entertainment.

Marketing of products with new ideas.


2. Company Summary
Travel solutions will be a company which will organize tours to different parts of country. The company will start its operations from Pune and provide service to customers targeting Maharashtra area as the first destination. It will subsequently launce its service to other parts of country. It will focus initially on providing and satisfying two kinds of tours: • • Yatra: Different religious places Heritage sites: This will undertakes site tours like Ajanta-Ellora, Forts etc.

As it grows it will take on people and expand into related markets. It will also look for additional leverage by establishing relationships and representations with appropriate strategic allies.

2.1 Company Ownership
The company named ‘Travel Solutions’ will be registered under companies act with legal formalities. Its fiscal year is the calendar year. The company will realize the potential market and opportunity for growth from given implementation of the appropriate strategies, aided by the necessary finances from next year.

2.2 Start-up Summary
Total start-up capital and expenses (including legal costs, logo design, stationery and related expenses) came to approximately Rs. XXXXXXX. Start-up assets required and utilized included Travel Office, Travel Busses (and/or Busses, cars on rent), Staff, office furniture, personal computers and other office equipment. This figure comes to Rs XXXXXX. Start up expenses Sr. No. 1 2 3 4 5 6 7
Legal Stationery etc. Brochures Insurance Rent Research and Development Expensed Equipment Total Start-up Expenses


Amount reqd. 10,000 5,000 0 0 0 0 5,000 20,000


Start-up Assets

Sr. No. 1 2 3 4 5
Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets


Amount reqd. 10,000,00 10000 0 0 10,10,000

Sr. No.


Amount reqd.

Start-up Funding

1 2

Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required

20,000 10,10,000 10,30,000

Sr. No.


Amount reqd.

1 2 3 4 Sr. No. 5 1 2 3 4

Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities

0 20000 0



0 Amount reqd. 20000

0 0 0

Sr. No.


Amount reqd.


1 2 3 4 5 6

Planned Investment Investor 1 Investor 2 Investor 3 Investor 4 Additional Investment Requirement Total Planned Investment

Sr. No.

Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding



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2.3 Company Locations and Facilities 7

At present the company plans to set up its office at Pune with intentions of establishing additional centers in other parts of Maharashtra, largely depending on the dictates of the market. Our current facilities provide offices, Bus, office equipment and so on.

2.4 Company Values
Travel Solutions is committed towards an open governance system whereby its activities are managed and undertaken ethically, transparently, and in the interests of all concerned stakeholders. This shall be undertaken through implementation of the following company values: • • We intend to conduct our business ethically and transparently, respecting all applicable laws. We intend to be a responsible corporate citizen fulfilling our obligations as an integral member of society. Hence our business decisions shall give appropriate weight and consideration to social and environmental impacts. • • We intend to provide products of uncompromising quality to meet the needs of our customers. We intend to seek mutually beneficial and enduring relationships in all the commitments that we make, ensuring that they are straightforward and honest. Hence our communication shall be open and accurate, internally and externally. • • We intend to optimize the creation of wealth to provide fair reward and recognition for the contributions of our stakeholders. Ultimately we intend to uphold all the above company values, promoting our employees and respective third parties engaged by us to do likewise. Through promotion and implementation of the above stated company values we believe that we will be able to attain our corporate and stakeholders' goals and objectives for the benefit of all concerned, in particular the communities in which we will operate.

3.0 Products 8

Travel Solutions will provide all kind of travel and tour services to its customers. Some of the Tours designed by the company are AshtaVinayak yatra, Shakti, Sai, Ajanta etc. Please see the concerned leaflets for details. We also provide customers the customized travel solutions depending on their suggestions and requirements.

3.1 Product Description
Travel solutions will provide the transportation through its busses. According to its tour packages it will provide the facilities to customers. It may vary from customer to customer and packages.

3.2 Competitive Comparison
Identifying competition in terms of companies that fill the same needs that we do, our competitors are few in our main tour business, though dominant in the market. Hence there will be a need to strongly differentiate ourselves from these other businesses. However on a broader scale our competition comes in several forms.

3.3 Future Prospects
Travel solutions trough its best service and aggressive marketing will try to capture the market. We will treat our customers as their friends will best possible and cost effective packages. We will grow other parts of Maharashtra and subsequently in other parts of country. We will try to develop a model for tourism so that we can attract the schools clubs and other socio-groups etc.

3.4 Fulfillment 1. The key fulfillment and delivery will be provided by the principals and values of the
business. The real core value will be the provision of a quality based service. Hence we intend to ensure that tours we provide to customers of high quality and service.

2. We will try to build our travel image by mouth to mouth publicity, advertising, and
taking part in social functions.

4.0 SWOT Analysis


We are in a highly lucrative market in a rapidly growing economy. We foresee our strengths as the ability to respond quickly to what the market dictates and to provide quality service in a growing market. In addition, through aggressive marketing and quality management we intend to become a well-respected and known entity in our respective industry. Our key personnel have a wide and thorough knowledge of the local market and expertise, which will go towards penetrating the market. However we acknowledge our weakness of a small-sized company without a lot of experience, and the threat of new competition taking aim at our niche. Below are the summarized strengths, weaknesses, opportunities and threats.

4.1 Strengths
• • • Strategic market segmentation and implementation strategies. Diversified market segments: ensuring the lack of dependency on one particular market. Combination of skills in directorship. The directors intend to jointly develop business strategy and long-term plans, having wide experience in product and business knowhow. • • Establishment and maintenance of strong capital base. An aggressive and focused marketing campaign with clear goals and strategies.

4.2 Weaknesses
• • • • • Lack of a reputation in comparison to our competitors. The introduction of new organizational practices and personnel who have not previously worked together presents a challenge to the company. A limited financial base compared to the major players in the industry. Lack of clear-cut channels of distribution. Establishment on the Internet will produce technological challenges.

4.3 Opportunities
• • • Specific niche: we will design special and customized packages for our customers. The new generation of individuals and families has a far greater appreciation of attractive packaging (image conscious). Internet marketing and sales--though still in its infancy.

4.4 Threats
The present growth in the market may result in market saturation, through competition. This competition could emerge from a variety of given sources including:


1. Established mass-market companies.
2. New marketing strategies and tactics by established products and companies. 3. Existing competition. 4. Other start-up companies generated by healthy economic growth nationwide.

5.0 Market Analysis Summary
The number of outbound travellers from India grew by 15% to 6.2 million in 2005. This was almost twice the number of arrivals witnessed by the country. A booming economy, with GDP growth of more than 7%, rising disposable incomes, higher aspirations, cheaper air


travel to countries such as Malaysia, Thailand and Singapore and better products from the industry enticed Indian travellers. This has prompted a number of global tour operators to enter the Indian tourism market either directly or through strategic alliances. The travel industry is facing an increasingly competitive marketplace – travel professionals want to adopt new results-driven strategic marketing approaches to meet their unique challenges. Improving the efficiency and results of direct marketing programs, reducing marketing costs, and building more strategic promotional and sales relationships are all key initiatives for success. With Claritas'

segmentation solutions, you'll discover how to

effectively identify and target your most profitable customers and prospects. Critical issues in the travel industry include: impact of downturn in travel acquisition of customers maximizing customer value Multi-channel marketing customer retention Claritas' customer segmentation systems are an important element of any marketing program for the travel industry. Gain a better understanding of your existing customer base and learn how to more expertly target new customers. Analyze the composition and behavior of your segments to uncover a wealth of information to help guide all aspects of your marketing campaign. Focus your efforts on

reaching your most profitable segments – target direct mail and

optimize advertising and promotional activities. By linking travel behaviors with consumer media preferences for newspapers, magazines, television, radio, and the Internet, you can penetrate the relevant media channels to reach your most likely consumers. We appreciate that entering such a market is not a bed of roses, particularly as it is monopolistic. Hence we intend to implement an aggressive marketing strategy, well supported by the other business functions. The above prognosis influenced our decision to enter the brewing industry.

5.1 Market Segmentation
Travel Solutions will be focusing on the corporate and working class who appreciate good quality travel service. The working class will range from the miners who constitute a large portion of the market, to administrative personnel appreciative of good quality service.


The corporate or managerial segment will constitute those managers who though aware of their image and reputation, want to put aside their ties and jackets after hours and/or on weekends to ride on adventures and enjoys life. Our most important group of potential customers is those in the rural areas who often converge after hours to socialize and update one another on local news. These are potential customers who want to have an enjoyable time and also some religious tour at reasonable price. We also intend to appeal to the foreign tourists who would be looking at experiencing a great time.

5.2 Target Market Segment Strategy
Our marketing strategy will be based mainly on making the right kind of customized product available to the right target customer. We will ensure that our products prices take into consideration peoples budgets and that these people appreciate the product and know that it exists, including where to find it. The marketing will convey the sense of quality in every picture, every promotion, and every publication. There is already a sense of segment strategy in the way we define our target market. We are choosing to compete in areas that lend themselves to local competition, service and channel areas that match our strengths, and avoid our weaknesses.

5.2.1 Market Needs
The major customers require a service which will be cost effective and also enjoyable. The customer wants the more things in the price on one. They want to add their knowledge, have a picnic, and meet the god (religious place) in one package. We will provide them all what they want. We will give them a good attention right from choosing a package to the end of tour. We will provide the all necessary information to them. We will also arrange some packages gifts for them

5.2.2 Market Trends
Our target markets are increasingly growing towards recognizing the difference between poor quality tours and those of high quality. This development is an important trend for us as it represents our target market. We now are having an increasing number of people


who appreciate the traditional tours whilst living in the urban areas. With this in mind we intend to ensure that our packages are respectable and attractive. Today's extremely stressful work environment dictates that individuals requires some joyful holiday, this presents an opportunity that we may exploit, marketing the health aspect of our tours.

5.2.3 Market Growth
Import statistics provide a reliable guide as to the size of the tourism industry. India’s travel and tourism market was valued at US$42 billion in 2005, and is growing rapidly. India emerged as the fifth most preferred destination by the world’s Travellers in a survey conducted across 134 countries. India also figures in the Annual Readers’ Travel Awards 2005, which were announced by the prestigious magazine Conde Nast Travellers UK in its September 2005 edition. A 5,000 year history, culture, religion and alternative medicine fascinate both budget and luxury travelers alike. The Department of Tourism’s resolve in promoting Indian tourism has strengthened as it recognizes it’s potential. Tourism in India is the third largest foreign exchange earner, accounting for 2.5% of GDP. It also makes a direct contribution to economy with significant linkages with agriculture, horticulture, handicrafts and construction. The outlay on tourism development rose to Rs7, 860 million in 2005/2006, from Rs3, 500 million in 2003/2004, and continued to focus on the “Atithi Devo Bhavan” campaign, targeted at the inbound foreign tourists in the country. Translated literally this means “Guest is God”. With 390 million Indians on the move in 2005, it is little wonder that it is domestic Travellers that sustain the travel and tourism business. Domestic business travel and visiting family/friends, as well as pilgrimages, contributed to the 13% growth in number of trips within the country that year.

6. Strategy and Implementation Summary
Our marketing strategy emphasizes focus. This will be the key. We are a relatively new company and hence must focus on certain kinds of customized service with certain kinds of consumers. Initially Travel solutions will focus on the local market in Pune. Hence the form of


growth that shall be initially pursued will be that of organic growth mainly due to limited resources and the need to instill confidence in our company and packages. The target customers will include key decision-makers in the different organizations who often order or recommend on behalf of the whole organization, the aim being to obtain an initial order and fully satisfy the customer from then on. • • We are currently building image and awareness through consistency and distinctiveness in our package provision. We intend to focus on delivering quality products that in turn produce good referrals, which can then generate revenue. We intend to always have a relatively heavy personal selling component to our marketing strategy as previously discussed. Hence we intend to always be active in personal relationships with clients and strategic allies keeping abreast of their needs and wants. • We are focusing advertising on several key media.

We intend to achieve growth by creating a more enthusiastic customer culture than that of our competitors. All criteria from price competitiveness to staff attitudes are to be initially measured six-monthly, and then on a more regular basis as time goes on. The results will go down to depot level and be compared with the overall target. This form of consistent measurement of strategic goals will ensure that the organization remains focused on its goals and objectives, making any necessary adjustments where need be.

6.1 Value Proposition
Our value proposition is offering our customers refreshness and enjoyment at reasonable prices ensuring peace of both body and mind. Hence we intend to: 1. Market the benefit, not the product. 2. Ensure customer satisfaction. 3. Develop long relationships. 4. Market the company. This value proposition shall be communicated through advertisements, personal selling, sales literature and catalogues, and referrals that emphasize how the company is able to provide refreshment, enjoyment and fulfillment to the customers.

6.2 Competitive Edge
Our competitive edge will be our dominance of access to previously remote areas, customer orientation and traditional Yatra tours through customized service.


Though we shall be serving different market segments we intend to focus on each and every customer as single entity and serve them best as possible.

6.3 Marketing Strategy
One core element of our marketing strategy will be that of differentiation from our competitors. In terms of promotion, we intend to sell our company as a differentiated strategic ally, not just our products. In price, we intend to offer extremely reasonable prices in comparison to the competition and we need to be able to sustain that. Market penetration through lower prices shall be undertaken where need be, while premium pricing will be the case of the upper-end of the market.

6.3.1 Product Marketing
Our product marketing will emphasize the benefits of our products, including refreshment and enjoyment of top-quality service. We intend to sell the opportunity to enjoy oneself amongst friends, family and/or colleagues. This will come out in our advertising, delivery and collateral such as sales literature and business cards. Our product marketing's most important challenge will be the problem of being accepted and appreciated on the market as a provider of quality products. Hence we intend to not only meet customers' expectations but to exceed them. We intend to focus on the individual or group who want to enjoy themselves through their requirements of tours. However, not wanting to limit our horizons in the initial period, we intend to be continually looking out for opportunities that we may exploit. In all cases we intend to provide a thorough understanding and appreciation of the products to the customer and the benefits of them.

6.3.2 Pricing Strategy
Initially our prices will not be under our control but dictated by the market conditions prevailing at the particular time. This is particularly so in the case of products which are also produced by our competitors, as they are often representing a scale for consumers. However we realize that we must charge appropriately for the quality and work we shall be providing, in addition to the distribution of the products. Hence we intend the price will accommodate the mark ups prevailing in the industry, as well as our own costs. To be competitive in the market we intend to offer discounts to customers making bulk orders, which are in competition with the industry. This will also assist in the establishment of customer loyalty. Hence our prices shall be as follows: (discussion removed for confidentiality).


We intend our income structure to match our cost structure, so as to ensure that the salaries we pay to assure good workmanship is balanced by the price we charge. We will make sure that we charge for the product, workmanship and delivery with our aim being to achieve a gross profit margin of at least 30% in our initial years of operation. All in all we intend our prices to be extremely competitive on the market.

6.3.3 Promotion Strategy
Our promotion strategy will be based primarily on informing potential customers of our existence and making the right information available to our target customer. Since we shall be targeting different segments, the promotional tools and messages may vary slightly to match the intended market. However in all cases the marketing will convey the sense of quality, refreshness and health in every picture, every promotion and every publication. Our promotional activities shall be focused towards driving the organization's overall strategy relentlessly, developing internal consistency and prepare it to confront any radical changes that may arise. In such a market we cannot afford to appear in, or provide, second-rate service that makes our products look less than they are. We intend to leverage our presence using quality brochures and other sales literature, including promotional material such as pens, complimentary slips and stickers. Due to the fact that our products are in the introductory phase on the market, promotional expenses are high in order to generate customer attention and knowledge of our products existence. We intend to spread the word about our business through the following: Advertising We intend to undertake extensive advertising of our packages in addition to our brand name--company name. This is so as to instill awareness and knowledge of our existence in the market place, which hopefully shall convert into market share. Hence the need to ensure that our packages are constantly available to our target market, and of consistent high quality. Whilst we are committed to providing products of uncompromising quality to meet the needs and expectations, the company believes its products should be advertised and promoted in an honest and ethical manner that respects the values of our consumers' societies. A constant look out will also be made of any special editions in the local newspapers, which may provide an opportunity to advertise.



These are increasingly becoming important as more firms establish in the country and hence the need to be known. The organization aims to participate in trade shows. Not only will these increase awareness of the products. The organization will be able to take advantage of this in all its promotional campaigns, adding leverage to its reputation and image. Undoubtedly this would add confidence and pride in our staff complement as their hard work would be recognized often at the highest levels. Communicating such achievements often gives customers a feeling that they can rely on the product, and this builds strong customer loyalty Public Relations Recognizing that we are relatively new on the market there will be a need to organize an event, of grandeur nature, introducing ourselves onto the market. At this we intend to invite potential customers, senior officials, including the Minister of Industry and Commerce, and other stakeholders so as to penetrate the market. In collaboration with this we also intend to place news stories and features in magazines and newspapers to keep stakeholders updated on the latest developments and to increase awareness. This will assist in the recognition and appreciation of our company in the surrounding community especially. Our efforts on community service will show that the company has its community at heart, contributing towards the establishment of a good and reputable image. Homes for the under privileged will be also be built in the medium, to long term as we plough back into the society we operate in. In addition we intend to pursue educational sponsorship for the less advantaged but promising young individuals in the community. This will constitute some of our corporate social responsibility details of which are provided in the respective section. We also intend to experiment with a road show in the various often-neglected remote areas giving out caps, bags, and other such prizes to individuals who answer questions correctly. This will also enable our business name and products to be better known by the respective communities. However we are extremely confident that these road shows if well planned will be a success as they encourage community participation. Hopefully visitors will leave impressed and confident in our products, adding to the possibility of positive referrals. Personal publicity This shall be undertaken in the form of sales calls whereby a sales person will go out to potential customers and distributors informing them what products we are able to offer them. In addition the sales person will listen to client's needs at close hand, so as to ensure that the product is delivered timely and that it is the right product as demanded by the surrounding community. Close analysis shall also be undertaken of the respective communities. This will ensure that our products are customized as much as possible to the surrounding community's needs and wants. In cases where there is the opportunity of


obtaining a large order it may be necessary for the top management to go out personally, especially considering the fact that we are still a relatively new firm in the market. Direct Marketing This will be used, but only to a limited extent, in the form of telemarketing and informing potential customers and obtaining referrals where possible. In the case of telemarketing it will involve our targeting potential customers/distributors of our products and informing them of our existence and the products we offer. We may then arrange for an appointment with the respective decision-maker/order-maker, with the intention being to lure them into ordering one or more of our product lines. Internet Marketing The increasing growth of the Internet as an information source provides an opportunity that we may exploit. This is particularly so in view of the increasing investment and global trade amongst countries, as both large and small organizations look at obtaining the best deal possible. More often than not these organizations will seek out potential clients over the Internet due to the cost of transport and accommodation, apart from the obvious time factor, which is increasingly becoming of importance in view of the dynamic environment. However this will require adequate planning and research so as to establish a professionally done website. This will mainly serve foreign customers and other stakeholders including potential investors. In all the above we intend to communicate our ability to provide good quality service that will satisfy the customers needs. Hence our messages will influence the buying decision of prospective customers by emphasizing our unique selling proposition, and persuade prospective buyers that we are different from our competitors. All the above promotional tools shall be well integrated and utilized in tandem so as to maximize their effect.

6.3.4 Distribution channel
• We believe that through our obsession for improvement, and commitment to a leadership position in our respective markets, we can overcome the traditionally binding constraints of resource base, firm size and narrow conceptualization of our business domain. This shall be undertaken through coordination and logical integration of our distribution operations. We aim to reduce cycle time for key processes, eliminate rework and waste, and optimize our human resources utilization.

6.4 Sales Strategy


We intend to focus on improving our implementation, by working on key objectives and better coordination of marketing efforts. For the short term at least, the selling process will depend on personal selling and advertising to lure and inform potential clients about the products we offer and the benefits of consuming our products. Our marketing does not intend to affect the perception of need as much as knowledge and awareness of the product categories.

6.4.1 Sales Forecast
The sales forecast monthly summary is included below. The annual sales projections are included later in the plan. It should be noted that as we become established and known on the market we project sales to increase at a faster rate than the initial year.
Sales Monthly

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Sales Forecast Year Sales Yatra others Customer customized Total Sales 2007 2008 2009

6.5 Corporate Social Responsibility
Travel Solutions intends to be involved in a wide range of social responsibility engagement programs to invest back into the community in which we operate. Through our


social responsibility program we can assist in improving people’s lives. If we contribute to development in a sustainable way, we need to support projects that communities bring to us, rather than strictly creating our own solutions for our communities. This is because if we impose our solution and drive a project it is an artificial response, and the risk is that the project will then always 'belong' to us. Whenever the project comes up against a new challenge, we will be expected to fix it, and will be forced to stay in a situation where we have to look after the same few projects forever. Rather we intend to fund several projects that belong to, and will be driven by, the community and become sustainable. However, before we commit ourselves to projects we intend to ensure that skills will be transferred, communities are involved and the projects will be able to become self-sustaining. We know that we cannot address all the development needs of our society. Where we can, we assist and sometimes may form partnerships so as to increase capacity.

7.0 Human Resources Summary


Travel Solutions shall evaluate the jobs it provides, paying competitive remuneration packages against market benchmarks to employees for their agreed and set out tasks. Consonant with its efforts to create added value by employees, Travel Solutions seeks to negotiate the provision of incentive pay delivery mechanisms against achievement of agreed targets relating to accomplishment in the areas of productivity enhancement, savings and other specific successes, that is, the implementation of an effective performance management system. Hence our human resources strategy will revolve around: • Communicating openly and transparently; addressing strong and trusted: o o o • • • Internal communication. External communication. Stakeholder inclusivity.

Responding and promoting human rights issues, such as equity in the workplace and in community relations. Adoption of a good remuneration policy aimed at developing our people through employee benefits, training and group initiatives. Maintaining preventative health and safety structures for employees and support for surrounding communities.

7.1 Management Team
The management team, mainly comprising of the shareholders, has wide expertise and broad knowledge of the products and markets, which if well planned for, will enable the business to realize its goals and objectives. Daily management will consist of Mr. Amit M. rampure and Mr. Vijay M. Rampure in the role of technical and operations, and in dealing with government, corporate bodies, and public relations. Management style will reflect the participation of the shareholders. The company intends to respect its community and treat all employees well. We will develop and nurture the company as community. We do not intend to be overly hierarchical. Management's ongoing initiatives to drive sales, market share and productivity will provide additional impetus.

7.2 Personnel Plan
We intend to compensate our personnel well, to retain their invaluable expertise and to ensure job satisfaction and enrichment through delegation of authority. Our compensation will include health care, generous profit sharing, plus a minimum of three weeks vacation. As an equal opportunity employer, we respect the diversity and human rights of our people, and strive to achieve optimal productivity, while realizing the full potential of each employee.


Awards will be given out to outstanding individuals, groups and plants for hard work and production so as to instill a sense of fun into the work and promote the maintenance of high standards. Travel Solutions recognizes that our employees contribute fundamentally to the company's long-term prosperity. We intend to enhance our capacity to attract and retain people of quality, through benefits such as housing and family education grants. Employee health shall be of extreme importance. This is because the health of our people is an integral element of employee well-being at work and at home. Compliance with relevant legislation is a minimum target in our organization. We also intend to minimize if not totally eliminate the number of isolated incidents of intimidation in the workplace, so as to ensure that production and distribution are not materially affected and sound relationships are maintained between employee and employer and between employees as a whole.
Personnel Plan Year President and CEO Operations Manager Marketing Manager Office manager Account officer Driver-1 Driver-2 Total People Total Payroll 2007 2008 2009

7.3 Training
In-house training shall be continuous with regular external training being undertaken particularly following any new developments in the market. This is so as to ensure that we are continuously able to anticipate our markets needs--a proactive approach, which is so essential if we are to gain and maintain a competitive advantage. Internal training will not only include product and technical aspects, but also expand to give much greater knowledge of customers, market trends, products, new technology aids, and time management amongst other such variables. We intend to conduct health education sessions for groups and individuals on health risks in the workplace, balanced with lifestyle education and employee assistance programs that incorporate rehabilitation and counseling in a range of illnesses and social or personal problems. This is of particular importance in view of the AIDS epidemic that has grappled the country and continent as a whole to unparalleled levels.

We acknowledge the fact that successful recruiting, motivation and discipline


procedures are keys to the growth of the organization. Hence we intend to promote and maintain good labor relations, strong morale and high quality work per employee.

7.4 Feedback and Control
1. We intend to use employee satisfaction surveys to shape the business, making sure that the employee understands the goals of the firm, is customer focused, proud of their work and work as a team. This will encourage employees to become entrepreneurial and customer responsible, in addition to unifying staff in customer focus and values. 2. Important notices and developments will be continuously communicated to employers so as to keep them abreast of developments and promoting a sense of belonging and oneness in the organization. 3. We will encourage our employees to put forward any suggestions they might have regarding the improvement of any of the company's functions--an open door philosophy. Such a culture will enhance innovativeness and creativity in turn leading to job satisfaction and enrichment.

8.0 Financial Plan


We want to finance growth mainly through cash flow and equity. We recognize that this means we will have to grow more slowly than we might like. The most important factor in our case is collection days, particularly with the bulk order customers. We can't push our customers hard on collection days, because they are extremely sensitive and will normally judge us on our terms. Hence they tend to have a certain degree of financial authority. Therefore we need to develop a permanent system of receivables financing systems, using a well-coordinated accounting department. In turn we intend to ensure that our investors are compatible with our growth plan, management style and vision. Compatibility in this regard means: • • • • Fundamental respect for giving our customers value, and for maintaining a healthy and congenial workplace. Respect for realistic forecasts, and conservative cash flow and financial management. Cash flow as first priority, growth second, profits third. Willingness to follow the company and contribute valuable input to strategy and implementation decisions.

8.1 Important Assumptions
The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendix. From the beginning, we recognize that collection days are critical, but not a factor we can influence easily. Interest rates, tax rates, and personnel burden are based on conservative assumptions. Some of the more important underlying assumptions are: • • We assume a strong economy, without major recession. We assume, of course, that there are no unforeseen changes in economic policy to make our products immediately obsolete.

General Assumptions Year Plan Month 2007 1 2008 2 2009 3


Current Interest Rate Long-term Interest Rate Tax Rate Other 0 0 0

8.2 Break-even Analysis
Our break-even analysis will be based on running costs that is costs we shall incur in keeping the business running, including salaries and wages, rent, water and electricity, insurance amongst others. Hence many fixed costs shall be included in these costs. We will thus aim to ensure that our sales levels are running comfortably above break-even. The following chart and table summarize our break-even analysis. With fixed costs of approximately XXXXX per month at the outset (a bare minimum), we need to bill approximately XXXXX to cover our costs. We don't really expect to reach break-even until several months into the business operation.
Break-even Analysis

Click to Enlarge Break-even Analysis Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost

8.3 Key Financial Indicators
The following benchmark chart indicates our key financial indicators for the first three years. We foresee major growth in sales and operating expenses, and a bump in our collection days as we spread the business during expansion.


Collection days are very important. We do not want to let our average collection days get above 30 under any circumstances. This could cause a serious problem with cash flow, because our working capital situation is chronically tight. However, we recognize that we cannot control this factor easily, because of the relationship with our clients.

Click to Enlarge

8.4 Expense Forecast
Initial marketing expenses are relatively high as we seek to become known on the market. This will be brought about by the development of sales literature, advertising expenses, and function expenses (including lunches and dinners with interested stakeholders). As our market share increases and capital is generated, further marketing programs and the expansion of those in existence at the time will be undertaken, to ensure market development. Once these programs will start generating revenue for the business, which we shall in turn reinvest.

8.5 Projected Profit and Loss
Our projected profit and loss is shown on the following table, with sales increasing from more than XXXXXX the first year to more than XXXXXX the second, and approximately XXXXXX in the third year. Profits are calculated to be around XXXXX before tax the first year during the start-up phase of this business. This will be representative of a net profit margin of


approximately XX%, which though may not seem that impressive is relatively good for a startup firm in our line of business. As with the break-even, we are projecting very conservatively regarding cost of sales and gross margin. Our cost of sales should be much lower and gross margin higher, than in this projection.
Pro Forma Profit and Loss 2007 Sales Direct Costs Other -----------Cost of packages Sold ----------------------2008 2009

Gross Margin Gross Margin %

Expenses Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Rent Payroll Taxes Other -----------Total Operating Expenses -----------------------

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

Net Profit Net Profit/Sales


8.6 Projected Cash Flow
Cash flow projections are critical to our success. Detailed monthly numbers are included in the appendix. However it should be noted that they do not take into account the required capital injection.

Click to Enlarge

Pro Forma Cash Flow 2007 Cash Received 2008 2009

Cash from Operations Cash Sales


Cash from Receivables Subtotal Cash from Operations

Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received


Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations

Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities


Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent

Net Cash Flow Cash Balance

8.7 Projected Balance Sheet
The balance sheet shows healthy growth of net worth, and strong financial position. The three-year estimates are included in the appendix.
Pro Forma Balance Sheet 2007 Assets 2008 2009

Current Assets


Cash Accounts Receivable Inventory Other Current Assets Total Current Assets

Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets

Liabilities and Capital

Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities

Long-term Liabilities Total Liabilities

Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital

Net Worth

8.8 Business Ratios
The table below shows our business ratios.
Ratio Analysis 2007 2008 2009 Industry Profile


Sales Growth





Percent of Total Assets Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets

Current Liabilities Long-term Liabilities Total Liabilities Net Worth

Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes 100.00% 100.00% 100.00% 100.00%

Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on



Additional Ratios Net Profit Margin Return on Equity

Activity Ratios Accounts Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover

Debt Ratios Debt to Net Worth Current Liab. to Liab.

Liquidity Ratios Net Working Capital Interest Coverage

Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout


9.0 Controls
The local tourism market has been growing steadily over the last few years due to increases in people's disposable income and opening of the economy. With this in mind we intend our marketing programs to expand accordingly. The introduction of quality catalogues and sales literature will enable travel Solutions to market to potential customers. We project sales to increase accordingly, though slightly slower as we establish a reputation for ourselves. With time, a presence on the Internet and participation in regional trade shows will be key milestones to expanding sales and marketing potentials through the utilization of new channels and identification of potential customers.


Throughout the year we intend to undertake regular evaluations of our marketing programs so as to ensure that we are in-line with our intended objectives. In summary we intend to undertake the following: 1. Tracking and follow-up: We intend to have the discipline, as an organization, to track results of the business plan and make sure that we implement. 2. Market segment focus: We intend to have the discipline to maintain the market segment focus. 3. Saying no: Though difficult initially, we intend to be able to say no to special deals that take us away from the target focus and are unprofitable.

9.2 Contingency Planning 1. We intend to watch our results very carefully. We may need to re-design our certain
packages if we cannot get the margin up becomes difficult to obtain. We might be able to avoid the straight competition with the major companies by focusing more on the previously mentioned products. 2. Another possibility is the introduction of a new company(s) in our niche. Hence the need to undertake aggressive marketing and networking.

3. We need for commitment in our work and striving of total quality in our organization.


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