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RESORT

Baja California Sur

Summer 2008
Table Of Contents

1.0 Executive Summary


1.1 Objectives
1.2 Mission
2.0 Company Summary
2.1 Company Ownership
2.2 Start-up Summary
3.0 Services
4.0 Market Analysis Summary
4.1 Market Segmentation
4.2 Target Market Segment Strategy
4.3 Service Business Analysis
4.3.1 Competition and Buying Patterns
5.0 Strategy and Implementation Summary
5.1 Competitive Edge
5.2 Sales Strategy
5.2.1 Sales Forecast
5.3 Milestones
6.0 Management Summary
6.1 Personnel Plan
7.0 Financial Plan
7.1 Important Assumptions
7.2 Projected Profit and Loss
7.3 Projected Cash Flow
7.4 Projected Balance Sheet
1.0 Executive Summary

Cape Cabo LLC was formed (State of California File #20041343410149) as a diversified
development, brokerage, and management enterprise. By being involved in each step of the
way from development to resort and time share sales (Vacation Interval Ownership), we at
Cape Cabo can ensure our guests that they are receiving the highest quality living available at
that price. We will specialize in providing high quality housing that offers both up-to-date
technological amenities as well as state-of-the-art time-share living conditions at reasonable
prices. The founders formed this company in order to provide guests with a living environment
that is unparalleled, while cutting expenses through organizational diversification enabling
optimal profit margins. Cape Cabo's Resort, Timeshares, and individual units will foster an
atmosphere and a quality of life that is of the highest standards. Guest satisfaction, safety and
an overall healthy working relationship are our main goals at Cape Cabo. Cape Cabo LLC owns
99% of Cape Cabo S.A. de C.V. a corporation formed in Mexico.

Highlights

$140,000,000

$120,000,000

$100,000,000

$80,000,000 Sales
Gross
$60,000,000
Net
$40,000,000

$20,000,000

$0
2008 2009 2010

1.1 Objectives

1. Sales of $46,250,000 by end of 2008.

2. Time Share sales of $91,000,000 by end of 2009

3. Time Share sales of $97,750,000 by end of 2010

4. Gross margin higher than 50%.


1.2 Mission

Cape Cabo provides high-quality, comfortable timeshare (Vacation Interval Ownership) and
resort units in Baja California Sur, Mexico, on the Sea of Cortez. Cape Cabo's units offer state-
of-the-art living conditions reflective of the rapid advancements in technology and a growing
need for quality time share/resort housing. Our company is dedicated to a hassle free-living
environment in which our guests can enjoy all of the benefits of safe, attractive, and inviting
vacation and living. Unlike many other timeshare and resort companies that are solely
concerned with turning profits, our primary objective at Cape Cabo is to maintain the highest
level of guest satisfaction that is achievable. Guest safety, happiness, and comfort are our main
goals. Cape Cabo maintains competitive market prices, while working toward expanding the
number of units owned, and increasing total profits earned. Within the company we will strive to
work as a cohesive, harmonious unit focused on exemplifying our mission. Just as guest
satisfaction is an intricate part of Cape Cabo's success, so is employee satisfaction. That is why
the founders of Cape Cabo believe that employee satisfaction will make the company a success
and will be the key to their longevity.

Initial focus will be to buy and develop an existing land complex. We will modify and remodel the
acquired real estate so as to meet Cape Cabo standards and increase long-term assets and
income. Housing units will predominantly be located on the property adjacent to the beach.
Cape Cabo fosters the ideals of the importance of guest needs along with healthy and
understanding relationships and a professional commitment to satisfaction.

Keys to Success

1. Excellence in fulfilling the promise--completely confidential, reliable, higher end DINKS all
inclusive resort.

2. Developing visibility to sell out vacation fractional ownership sales.

3. Constructing a Toll Road from International airport to property. Travel time less than 30
minutes.

2.0 Company Summary

Cape Cabo LLC is an enterprise that is involved in numerous aspects of the industry. Primary
experience and expertise is in the development of high quality, timeshare/resort living for people
seeking the most up-to-date technologically advanced vacation and living environment. An area
of intense training and attention is the importance of strong guest service. Medical expertise and
ability to attract medical expertise to participate in Cape Cabo's FREE Clinic.

2.1 Company Ownership

Cape Cabo LLC is a Limited Liability Corporation based out of Los Angeles, California (State of
California File #20041343410149). Its principal investors, Dr. Alan Weston and Mr. Steven
Doolittle owners. Cape Cabo S.A. de C.V. is a Mexico Corporation established and recorded in
2005.
2.2 Start-up Summary

The total start-up expenses (including purchase, legal, stationery, architect, brochures,
consultants, insurance, rent, R&D, expensed equipment, land, and other) come to $70,388,000.
Start-up assets required include $95,000,000 for purchase of current land and $125,000 in initial
cash to handle the architect and contractor fees prior to opening, $8,000,000 for land
preparation and $27,000,000 for initial construction of the 200 room Cape Cabo Resort and
$21,000,000 for construction of the water plant.. The rest of the cash is needed to pay all
furnishment of the resort, zoning fees and governmental regulations.

Cape Cabo Resort will have state of the art WI-FI facilities and have its own Water Solar plant
that produces 15,000 gallons of pure drinking water per day per unit. In addition, natural wells
are on the property that can also be processed and utilized for gardening. A fishing fleet will be
obtained as part of the resort or contractual arrangements with local fisherman for resort guests.

A Cape Cabo Medical Clinic will be adjacent to the property on the road to provide health
services to the community. This is for Public Relations and government approval of the project.
In addition, we carry executive health care insurance to ensure every guest's health needs are
covered, including the flying back, if necessary, to the guest's hospital of choice in their home
town anywhere in the United States of America. In addition, a small health center will be located
on the resort grounds staffed by the Cape Cabo Medical Clinic.

A toll road with a 50 year concession from the Government of Mexico will enable guests and
visitors to travel to Cape Cabo Resort Complex in less than 30 minutes.

Start-up Plan
Start-up Expenses
Legal $50,000
Stationery etc. $15,000
Brochures $55,000
Consultants $25,000
Insurance $35,000
Rent $95,000
Research and development $75,000
MARKETING FRACTIONAL $15,000,000
OWNERSHIP
TOLL ROAD $21,000,000
SOLAR DISTILLATION $25,000,000
CONSTRUCTION $174,500,000
LAND $95,000,000
Expensed equipment $150,000
Other $17,000,000
Total Start-up Expense $348,000,000

Start-up Assets Needed


Cash Requirements $2,000,000
Other Short-term Assets $0
Total Short-term Assets $2,000,000

Long-term Assets $0
Total Assets $2,000,000

Total Start-up Requirements: $350,000,000


Left to finance: $0
Start-up Funding Plan

Investment
LOAN $350,000,000
Investor 2 $0
Other $0
Total investment $350,000,000

Short-term Liabilities
Unpaid Expenses $0
Short-term Loans $0
Interest-free Short-term Loans $0
Subtotal Short-term Liabilities $0
Long-term Liabilities $0
Total Liabilities $0

Loss at Start-up ($348,000,000)


Total Capital $2,000,000
Total Capital and Liabilities $2,000,000
Checkline $0

Start-up

$350,000,000

$300,000,000

$250,000,000

$200,000,000

$150,000,000

$100,000,000

$50,000,000

$0
Expenses Assets Investment Loans

3.0 Services

Cape Cabo offers on-site security guards who patrol the grounds during evenings, nights, and
early mornings. We also offer an on-site repair service. There will always be an open line of
communication between the potential guests, guests and timeshare owners and the
management via a Cape Cabo web page and a 24-hour, call-in answering service.

Service Description

Cape Cabo provides excellence in all areas of the resort. The all inclusive resort provides all
amenities that this unique to the DINK market.
Competitive Comparison
There is no comparative competition in southern Baja California Mexico for a Resort that
specializes in this Niche market.

Sales Literature
Extensive resort brochures and Vacation Fractional Ownership brochures, CDs and complete
full interactive Website will be developed. This will be made available at every convention trade
show and travel promotion programs for our specific Niche Market in the USA. On the West
Coast of the USA there are more than 6,000,000 potential customers and attend these
conventions in their communities.

4.0 Market Analysis Summary

Cape Cabo’s main consumer base will be primarily people from the State of California, West
Coast and in those states that find the lower Baja attractive and enjoyable. From this market, it
will attract guests and time-share ownership from throughout the world as this DINK Market has
brand loyalty of 89%. These people will benefit from the resort and timeshare's unparalleled
level of quality, location, and technological amenities. We will also be marketing to local area
guests for our amenities' services and our entertainment. These guests will be looking for safe,
high-quality environments that can foster the type of atmosphere needed for a vacation
success.

4.1 Market Segmentation

1. Cape Cabo’s largest market segment in the State of California will be individuals and couples
of Southern California. These individuals will be the most likely to desire the technological
amenities that our company offers. We expect this to be the largest growing segment with a
growth rate of about 7%. Their current income spending on travel and vacations is $64 Billion
per year.

2. Professionals are another large segment. They will be attracted to the timeshare units
because of the same technological needs, but will also be attracted to the comfortable, well-
maintained resort and living environment. Cape Cabo offers timeshare units that provide quality
timeshare and home ownership. We expect this segment to grow at a rapid rate.

3. International individuals from outside the United States represent the third and smallest
identifiable segment, but contain the second highest growth rate. Proximity and quality will
entice this segment, which we expect to grow at a rate of 5%.

Market Analysis
Potential Customers Growth 2008 2009 2010 2011 2012 CAGR
Niche Market DINK 14% 5,198,400 5,926,176 6,755,841 7,701,659 8,779,891 14.00%
Professionals 5% 1,102,500 1,157,625 1,215,506 1,276,281 1,340,095 5.00%
General Population 5% 28,665,000 30,098,250 31,603,163 33,183,321 34,842,487 5.00%
Total 6.49% 34,965,900 37,182,051 39,574,510 42,161,261 44,962,473 6.49%
Market Analysis (Pie)

Niche Market DINK


Professionals
General Population

4.2 Target Market Segment Strategy

We believe that our unparalleled level of quality and technological amenities put Cape Cabo into
a niche of its own. This will be the focal point of all our marketing and advertising efforts. These
segments are also easily reached through local newspapers and publications, as well frequent
open house displays. The target market is currently spending more than $64 Billion this year for
travel and vacations. Cape Cabo will be an ideal spot to vacation.

It is essential for Cape Cabo patrons to understand that their needs are our priority.

Market Needs
There is no DINK all inclusive resort in Baja California, Mexico.

4.3 Service Business Analysis

Cape Cabo Resort’s main consumer base will be primarily people from the State of California
and in those states that find the lower Baja attractive and enjoyable for the travel and vacation
experience and the ability to purchase ownership in a specified ideal community with a
commonality. It will attract guests and time share ownership from throughout the world. Cape
Cabo is in the service and entertainment business and these people will benefit from the resort
and timeshare's unparalleled level of quality, location, and technological amenities. Cape Cabo
will also install a theatre and stage for 1st class music entertainment throughout the year.
Entertainment is just one component of the experience that the guests will encounter. The main
focus is service and delivering a safe, high-quality environment that fosters the type of
atmosphere needed for a vacation success.
4.3.1 Competition and Buying Patterns

There is no doubt that we compete with timeshare units in the United States. We need to
effectively complete with the idea that an ALL INCLUSIVE RESORT will make a more effective
timeshare unit. People can enjoy their stay at Cape Cabo alongside the beach without worrying
about meals, entertainment or leisure time activities or facilities. There are NO all inclusive
resort time share (Vacation Fractional Ownership) in Baja California, Mexico.

Main Competitors
There is no specified all inclusive resort/time share resort in this area specific to the DINK
market

5.0 Strategy and Implementation Summary

Cape Cabo will focus on the three previously mentioned market segments: targeted group
populations with double incomes, professionals, and general population.

Our target guest is usually looking for higher end resort/timeshare facilities that foster a safe,
enjoyable, and convenient environment. They are technology savvy and loyalty is everything.

Marketing Strategy

Sales in our business are based upon providing guests with a living concept fitting of their
needs. We must be in touch with the needs and desires of our clientele in order to best attract a
consistent flow of incoming residents. We have an extensive database and network for
extensive presentation for maximum exposure.

5.1 Competitive Edge

We start with a critical competitive edge: there are very few resorts/timeshare units that offer the
same level of quality and technological amenities as Cape Cabo properties. We also have a
very high regard for guest service; something that is unparalleled in this industry for specified
populations. Cape Cabo believes it is essential that the guest feels he/she is being treated with
the utmost care and urgency. All staff and personnel go through a training program that teaches
many of the skills needed for successful client relations and guest service.

Competitive Edge
We start with a critical competitive edge: there are very few resorts/timeshare units that offer the
same level of quality and technological amenities as Cape Cabo properties. We also have a
very high regard for guest service; something that is unparalleled in this industry for specified
populations. Cape Cabo believes it is essential that the guest feels he/she is being treated with
the utmost care and urgency. All staff and personnel go through a training program that teaches
many of the skills needed for successful client relations and guest service.
5.2 Sales Strategy

Sales in our business is client service. It is repeat business as the DINK market carries high
brand loyalty. One doesn't sell an all inclusive vacation; one develops an atmosphere and
attitude with excellent service that works for the guest and buyer of Vacation Fractional
Ownership.

5.2.1 Sales Forecast

Cape Cabo Vacation Fractional Ownership will be priced at the upper edge of what the market
will bear, competing with the name brand resorts. The pricing fits with the general positioning of
Cape Cabo as high-end all inclusive resort.

The following table and chart gives the forecasted earnings for Cape Cabo vacation and
timeshare units. We perceive a gradual increase in the total number of units over the next year.
As time goes on, the weekly vacation/timeshare unit price will slowly ascend, coupled by the
decline in cost over time, producing an increased per-unit profit.

From our opening in September, we expect that all timeshare units will be completely sold out
within 48 months. In the summer months we anticipate fewer demand, so we have planned on a
timeshare unit cost lower to those timeshare unit buyers.

We will utilize the point system whereby a time-share owner may use their points at any time
other than their specified week (which is guaranteed) as long as space is available at Cape
Cabo.

Sales Forecast
Unit Sales 2008 2009 2010
RESORT 0 100 42,000
FRACTIONAL VACATIONS 1,850 3,640 3,910
PRODUCTS 3,175 7,500 35,000
Other 0 1,500 3,500
Total Unit Sales 5,025 12,740 84,410

Unit Prices 2008 2009 2010


RESORT $0.00 $225.00 $250.00
FRACTIONAL VACATIONS $25,000.00 $27,000.00 $30,000.00
PRODUCTS $50.00 $50.00 $75.00
Other $0.00 $150.00 $200.00

Sales
RESORT $0 $22,500 $10,500,000
FRACTIONAL VACATIONS $46,250,000 $98,280,000 $117,300,000
PRODUCTS $158,750 $375,000 $2,625,000
Other $0 $225,000 $700,000
Total Sales $46,408,750 $98,902,500 $131,125,000

Direct Unit Costs 2008 2009 2010


RESORT $0.00 $2,000.00 $2,200.00
FRACTIONAL VACATIONS $5,000.00 $5,000.00 $5,000.00
PRODUCTS $10.00 $10.00 $15.00
Other $0.00 $10.00 $15.00

Direct Cost of Sales 2008 2009 2010


RESORT $0 $200,000 $92,400,000
FRACTIONAL VACATIONS $9,250,000 $18,200,000 $19,550,000
PRODUCTS $31,750 $75,000 $525,000
Other $0 $15,000 $52,500
Subtotal Direct Cost of Sales $9,281,750 $18,490,000 $112,527,500

Sales Monthly

$9,000,000

$8,000,000

$7,000,000

$6,000,000
RESORT
$5,000,000
FRACTIONAL VACATIONS
$4,000,000
PRODUCTS
$3,000,000
Other
$2,000,000

$1,000,000

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

5.3 Milestones

The accompanying table lists our company's milestones, including dates, management
responsibility, and budgets. This table indicates our expectations from the company as well as
outlining our plan for start up. The table shows the anticipated divisions that are to occur within
the company as it grows, as well as an increase in timeshare units owned.

This is an initial assessment, and Cape Cabo will continually adjust in order to sustain our
business in all the different departments.

Milestones
Milestone Start Date End Date Budget Manager Department
ARCHITECTURAL PLANS 1/1/2008 4/1/2008 $125,000 Weston Admin
CONSTRUCTION 2/1/2008 4/1/2010 $174,500,000 Contractor Admin
FRACTIONAL VACATIONS 6/1/2008 6/1/2011 $15,000,000 Doolittle Marketing
SOLAR DISTILLATION 6/1/2008 6/1/2009 $25,000,000 Joel Research
TOLL ROAD 1/1/2008 6/1/2009 $21,000,000 Hector Consulting
Totals $235,625,000
6.0 Management Summary

The initial management team depends on the founders themselves, with back-up assistance
from the property management department of Cape Cabo LLC. As we continue to grow, we will
establish satellite offices for sales in California, our major targeted area. It will also be necessary
to take on additional help in the marketing and R & D sectors as growth continues.

6.1 Personnel Plan

The following table summarizes our personnel expenditures for the first three years. The
founding partners will take limited compensation for the first three years until earnings are
substantiated and growth is assured. We believe this plan is a compromise between fairness
and expedience and meets the commitment of our mission statement. The detailed monthly
personnel plan for the first year is included in the appendices.

Personnel Plan
Personnel 2008 2009 2010
MANAGERS (3) $720,000 $800,000 $880,000
PERSONNEL $240,000 $280,000 $300,000
Total Payroll $960,000 $1,080,000 $1,180,000

Total Headcount 25 50 50
Payroll Burden $144,000 $162,000 $177,000
Total Payroll Expenditures $1,104,000 $1,242,000 $1,357,000

7.0 Financial Plan

We want to finance growth mainly through cash flow. We recognize that this means we will have
to grow more slowly than we might like.

The most important factor in our case is vacation days and timeshare sales. We cannot force
our clients to purchase timeshare units with total cash. Therefore, we need to develop a
permanent system of receivables financing, using one of the established financial companies in
the timeshare business.

7.1 Important Assumptions

Cape Cabo plan depends on the assumptions that are made in the following table. These are
annual and monthly assumptions that show the consistent growth of the company. Since we
operate on a vacation/timeshare unit basis, we are assuming that the majority of the collections
will be timely and in full.
General Assumptions
2008 2009 2010
Short-term Interest Rate % 10.00% 10.00% 10.00%
Long-term Interest Rate % 10.00% 10.00% 10.00%
Payment Days Estimator 30 30 30
Tax Rate % 25.00% 25.00% 25.00%
Expenses in Cash % 10.00% 10.00% 10.00%
Personnel Burden % 15.00% 15.00% 15.00%

7.2 Projected Profit and Loss

The projected profit and loss for Cape Cabo is shown on the following table. Sales are
increasing from about $27,017,250 in 2008 to over $100,000,000 after the third year. We show
that net profit in each year is relatively high, but leaves room for possible unoccupied units.

We are projecting a gross margin of about 48% for the first year. This is an aggressive
projection that will help our efforts to keep total cost of sales low while increasing gross margin.
We will also have very low marketing costs, due to the public exposure to the units, and good
word of mouth around the university area.

The planned projections are included in the attached Profit and Loss Table.

Profit and Loss (Income


Statement)
2008 2009 2010
Sales $46,408,750 $98,902,500 $131,125,000
Direct Cost of Sales $9,281,750 $18,490,000 $112,527,500
Other $0 $0 $0
------------ ------------ ------------
Total Cost of Sales $9,281,750 $18,490,000 $112,527,500
Gross Margin $37,127,000 $80,412,500 $18,597,500
Gross Margin % 80.00% 81.30% 14.18%
Operating Expenses:
Advertising/Promotion $0 $0 $0
Travel $0 $0 $0
Miscellaneous $0 $0 $0
Payroll Expense $960,000 $1,080,000 $1,180,000
Payroll Burden $144,000 $162,000 $177,000
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Utilities $0 $0 $0
Insurance $0 $0 $0
Rent $0 $0 $0
Contract/Consultants $0 $0 $0
------------ ------------ ------------
Total Operating Expenses $1,104,000 $1,242,000 $1,357,000
Profit Before Interest and $36,023,000 $79,170,500 $17,240,500
Taxes
Interest Expense Short-term $0 $0 $0
Interest Expense Long-term $0 $0 $0
Taxes Incurred $9,005,750 $19,792,625 $4,310,125
Extraordinary Items $0 $0 $0
Net Profit $27,017,250 $59,377,875 $12,930,375
Net Profit/Sales 58.22% 60.04% 9.86%
7.3 Projected Cash Flow

The following cash flow projections are a key part of Cape Cabo’s early success. The monthly
cash flow is shown in the illustration, with one bar representing the cash flow per month, and the
other the monthly balance. The annual cash flow figures are included here and the more
important detailed monthly numbers are included in the appendices.

Pro-Forma Cash Flow


2008 2009 2010
Net Profit $27,017,250 $59,377,875 $12,930,375
Plus:
Depreciation $0 $0 $0
Change in Accounts Payable $3,135,915 ($247,144) $6,476,889
Current Borrowing $0 $0 $0
(repayment)
Increase (decrease) Other $0 $0 $0
Liabilities
Long-term Borrowing $0 $0 $0
(repayment)
Capital Input $0 $0 $0
Subtotal $30,153,165 $59,130,731 $19,407,264
Less: 2008 2009 2010
Change in Other Short-term $0 $0 $0
Assets
Capital Expenditure $0 $0 $0
Dividends $0 $0 $0
Subtotal $0 $0 $0
Net Cash Flow $30,153,165 $59,130,731 $19,407,264
Cash Balance $32,153,165 $91,283,896 $110,691,159

Cash

$35,000,000

$30,000,000

$25,000,000

$20,000,000

$15,000,000 Cash Flow


Cash Balance
$10,000,000

$5,000,000

$0

($5,000,000)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
7.4 Projected Balance Sheet

The following balance sheet flow projections are a key part of Cape Cabo’s early success. The
monthly cash flow is shown in the illustration, with one bar representing the cash flow per
month, and the other the monthly balance. The annual cash flow figures are included here and
the more important detailed monthly numbers are included in the appendices.

Pro-forma Balance Sheet

Assets
Short-term Assets 2008 2009 2010
Cash $32,153,165 $91,283,896 $110,691,159
Other Short-term Assets $0 $0 $0
Total Short-term Assets $32,153,165 $91,283,896 $110,691,159
Long-term Assets
Capital Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $32,153,165 $91,283,896 $110,691,159

Liabilities and Capital


2008 2009 2010
Accounts Payable $3,135,915 $2,888,771 $9,365,659
Short-term Notes $0 $0 $0
Other Short-term Liabilities $0 $0 $0
Subtotal Short-term Liabilities $3,135,915 $2,888,771 $9,365,659

Long-term Liabilities $0 $0 $0
Total Liabilities $3,135,915 $2,888,771 $9,365,659

Paid in Capital $350,000,000 $350,000,000 $350,000,000


Retained Earnings ($348,000,000) ($320,982,750) ($261,604,875)
Earnings $27,017,250 $59,377,875 $12,930,375
Total Capital $29,017,250 $88,395,125 $101,325,500
Total Liabilities and Capital $32,153,165 $91,283,896 $110,691,159
Net Worth $29,017,250 $88,395,125 $101,325,500
Table 5.2.1: Sales Forecast

Sales Forecast
Unit Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 2010
RESORT 0 0 0 0 0 0 0 0 0 0 0 0 0 100 42,000
FRACTIONAL VACATIONS 0 0 0 0 0 150 150 150 350 350 350 350 1,850 3,640 3,910
PRODUCTS 0 0 0 0 0 225 225 225 625 625 625 625 3,175 7,500 35,000
Other 0 0 0 0 0 0 0 0 0 0 0 0 0 1,500 3,500
Total Unit Sales 0 0 0 0 0 375 375 375 975 975 975 975 5,025 12,740 84,410

Unit Prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 2010
RESORT $225.00 $225.00 $225.00 $225.00 $225.00 $225.00 $225.00 $225.00 $225.00 $225.00 $225.00 $225.00 $0.00 $225.00 $250.00
FRACTIONAL VACATIONS $25,000. $25,000. $25,000. $25,000. $25,000. $25,000. $25,000. $25,000. $25,000. $25,000. $25,000. $25,000. $27,000. $30,000.
$25,000. 00 00 00 00 00 00 00 00 00 00 00 00 00 00
00
PRODUCTS $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $75.00
Other $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $0.00 $150.00 $200.00

Sales
RESORT $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $22,500 $10,500,
000
FRACTIONAL VACATIONS $0 $0 $0 $0 $0 $3,750,0 $3,750,0 $3,750,0 $8,750,0 $8,750,0 $8,750,0 $8,750,0 $46,250, $98,280, $117,300
00 00 00 00 00 00 00 000 000 ,000
PRODUCTS $0 $0 $0 $0 $0 $11,250 $11,250 $11,250 $31,250 $31,250 $31,250 $31,250 $158,750 $375,000 $2,625,0
00
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $225,000 $700,000
Total Sales $0 $0 $0 $0 $0 $3,761,2 $3,761,2 $3,761,2 $8,781,2 $8,781,2 $8,781,2 $8,781,2 $46,408, $98,902, $131,125
50 50 50 50 50 50 50 750 500 ,000

Direct Unit Costs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 2010
RESORT $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $0.00 $2,000.0 $2,200.0
$2,000.0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
FRACTIONAL VACATIONS $5,000.0 $5,000.0 $5,000.0 $5,000.0 $5,000.0 $5,000.0 $5,000.0 $5,000.0 $5,000.0 $5,000.0 $5,000.0 $5,000.0 $5,000.0 $5,000.0
$5,000.0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0
PRODUCTS $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $15.00
Other $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $0.00 $10.00 $15.00

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 2010
RESORT $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $200,000 $92,400,
000
FRACTIONAL VACATIONS $0 $0 $0 $0 $0 $750,000 $750,000 $750,000 $1,750,0 $1,750,0 $1,750,0 $1,750,0 $9,250,0 $18,200, $19,550,
00 00 00 00 00 000 000
PRODUCTS $0 $0 $0 $0 $0 $2,250 $2,250 $2,250 $6,250 $6,250 $6,250 $6,250 $31,750 $75,000 $525,000
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $15,000 $52,500
Subtotal Direct Cost of Sales $0 $0 $0 $0 $0 $752,250 $752,250 $752,250 $1,756,2 $1,756,2 $1,756,2 $1,756,2 $9,281,7 $18,490, $112,527
50 50 50 50 50 000 ,500

Table 6.1: Personnel

Personnel Plan
Personnel Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 2010
MANAGERS (3) $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $720,000 $800,000 $880,000
PERSONNEL $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $240,000 $280,000 $300,000
Total Payroll $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $960,000 $1,080,0 $1,180,0
00 00

Total Headcount 8 8 10 10 15 15 15 15 20 25 25 25 25 50 50
Payroll Burden $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $144,000 $162,000 $177,000
Total Payroll Expenditures $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $1,104,0 $1,242,0 $1,357,0
00 00 00

Table 7.1: General Assumptions

General Assumptions
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 2010
Short-term Interest Rate % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Payment Days Estimator 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30
Collection Days Estimator 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45
Inventory Turnover Estimator 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00
Tax Rate % 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
Expenses in Cash % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Sales on Credit % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Personnel Burden % 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%

Table 7.2: Profit and Loss

Profit and Loss (Income


Statement)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 2010
Sales $0 $0 $0 $0 $0 $3,761,2 $3,761,2 $3,761,2 $8,781,2 $8,781,2 $8,781,2 $8,781,2 $46,408, $98,902, $131,125
50 50 50 50 50 50 50 750 500 ,000
Direct Cost of Sales $0 $0 $0 $0 $0 $752,250 $752,250 $752,250 $1,756,2 $1,756,2 $1,756,2 $1,756,2 $9,281,7 $18,490, $112,527
50 50 50 50 50 000 ,500
Production Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Cost of Sales $0 $0 $0 $0 $0 $752,250 $752,250 $752,250 $1,756,2 $1,756,2 $1,756,2 $1,756,2 $9,281,7 $18,490, $112,527
50 50 50 50 50 000 ,500
Gross Margin $0 $0 $0 $0 $0 $3,009,0 $3,009,0 $3,009,0 $7,025,0 $7,025,0 $7,025,0 $7,025,0 $37,127, $80,412, $18,597,
00 00 00 00 00 00 00 000 500 500
Gross Margin % 0.00% 0.00% 0.00% 0.00% 0.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 81.30% 14.18%
Operating Expenses:
Sales and Marketing Expenses
Sales and Marketing Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Advertising/Promotion $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Travel $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Miscellaneous $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Sales and Marketing Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales and Marketing % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
General and Administrative
Expenses
General and Administrative Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Expense $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $960,000 $1,080,0 $1,180,0
00 00
Payroll Burden $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $144,000 $162,000 $177,000
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Utilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Rent $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total General and Administrative $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Expenses
General and Administrative % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other Expenses
Other Payroll $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Contract/Consultants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Other Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other % 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Operating Expenses $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $92,000 $1,104,0 $1,242,0 $1,357,0
00 00 00
Profit Before Interest and Taxes ($92,000 ($92,000 ($92,000 ($92,000 $2,917,0 $2,917,0 $2,917,0 $6,933,0 $6,933,0 $6,933,0 $6,933,0 $36,023, $79,170, $17,240,
($92,000 ) ) ) ) 00 00 00 00 00 00 00 000 500 500
)
Interest Expense Short-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest Expense Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Taxes Incurred ($23,000 ($23,000 ($23,000 ($23,000 $729,250 $729,250 $729,250 $1,733,2 $1,733,2 $1,733,2 $1,733,2 $9,005,7 $19,792, $4,310,1
($23,000 ) ) ) ) 50 50 50 50 50 625 25
)
Extraordinary Items $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($69,000 ($69,000 ($69,000 ($69,000 $2,187,7 $2,187,7 $2,187,7 $5,199,7 $5,199,7 $5,199,7 $5,199,7 $27,017, $59,377, $12,930,
($69,000 ) ) ) ) 50 50 50 50 50 50 50 250 875 375
)
Net Profit/Sales 0.00% 0.00% 0.00% 0.00% 0.00% 58.17% 58.17% 58.17% 59.21% 59.21% 59.21% 59.21% 58.22% 60.04% 9.86%

Table 7.3: Cash Flow

Pro-Forma Cash Flow


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 2010
Net Profit ($69,000 ($69,000 ($69,000 ($69,000 $2,187,7 $2,187,7 $2,187,7 $5,199,7 $5,199,7 $5,199,7 $5,199,7 $27,017, $59,377, $12,930,
($69,000 ) ) ) ) 50 50 50 50 50 50 50 250 875 375
)
Plus:
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Change in Accounts Payable $0 $20,010 $20,010 $20,010 $20,010 $1,308,9 $0 $0 $1,746,9 $0 $0 $0 $3,135,9 ($247,14 $6,476,8
15 60 15 4) 89
Current Borrowing (repayment) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Increase (decrease) Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Borrowing (repayment) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Capital Input $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal ($48,990 ($48,990 ($48,990 ($48,990 $3,496,6 $2,187,7 $2,187,7 $6,946,7 $5,199,7 $5,199,7 $5,199,7 $30,153, $59,130, $19,407,
($69,000 ) ) ) ) 65 50 50 10 50 50 50 165 731 264
)
Less: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 2010
Change in Accounts Receivable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Change in Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Change in Other Short-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Capital Expenditure $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Cash Flow ($48,990 ($48,990 ($48,990 ($48,990 $3,496,6 $2,187,7 $2,187,7 $6,946,7 $5,199,7 $5,199,7 $5,199,7 $30,153, $59,130, $19,407,
($69,000 ) ) ) ) 65 50 50 10 50 50 50 165 731 264
)
Cash Balance $1,882,0 $1,833,0 $1,784,0 $1,735,0 $5,231,7 $7,419,4 $9,607,2 $16,553, $21,753, $26,953, $32,153, $32,153, $91,283, $110,691
$1,931,0 10 20 30 40 05 55 05 915 665 415 165 165 896 ,159
00

Table 7.4: Balance Sheet

Pro-forma Balance Sheet

Assets
Short-term Assets Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 2010
Cash $1,882,0 $1,833,0 $1,784,0 $1,735,0 $5,231,7 $7,419,4 $9,607,2 $16,553, $21,753, $26,953, $32,153, $32,153, $91,283, $110,691
$1,931,0 10 20 30 40 05 55 05 915 665 415 165 165 896 ,159
00
Accounts Receivable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Short-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Short-term Assets $1,882,0 $1,833,0 $1,784,0 $1,735,0 $5,231,7 $7,419,4 $9,607,2 $16,553, $21,753, $26,953, $32,153, $32,153, $91,283, $110,691
$1,931,0 10 20 30 40 05 55 05 915 665 415 165 165 896 ,159
00
Long-term Assets
Capital Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $1,882,0 $1,833,0 $1,784,0 $1,735,0 $5,231,7 $7,419,4 $9,607,2 $16,553, $21,753, $26,953, $32,153, $32,153, $91,283, $110,691
$1,931,0 10 20 30 40 05 55 05 915 665 415 165 165 896 ,159
00

Liabilities and Capital


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 2010
Accounts Payable $0 $20,010 $40,020 $60,030 $80,040 $1,388,9 $1,388,9 $1,388,9 $3,135,9 $3,135,9 $3,135,9 $3,135,9 $3,135,9 $2,888,7 $9,365,6
55 55 55 15 15 15 15 15 71 59
Short-term Notes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Short-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Short-term Liabilities $0 $20,010 $40,020 $60,030 $80,040 $1,388,9 $1,388,9 $1,388,9 $3,135,9 $3,135,9 $3,135,9 $3,135,9 $3,135,9 $2,888,7 $9,365,6
55 55 55 15 15 15 15 15 71 59

Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $20,010 $40,020 $60,030 $80,040 $1,388,9 $1,388,9 $1,388,9 $3,135,9 $3,135,9 $3,135,9 $3,135,9 $3,135,9 $2,888,7 $9,365,6
55 55 55 15 15 15 15 15 71 59

Paid in Capital $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000
$350,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000 ,000
,000
Retained Earnings ($348,00 ($348,00 ($348,00 ($348,00 ($348,00 ($348,00 ($348,00 ($348,00 ($348,00 ($348,00 ($348,00 ($348,00 ($320,98 ($261,60
($348,00 0,000) 0,000) 0,000) 0,000) 0,000) 0,000) 0,000) 0,000) 0,000) 0,000) 0,000) 0,000) 2,750) 4,875)
0,000)
Earnings ($138,00 ($207,00 ($276,00 ($345,00 $1,842,7 $4,030,5 $6,218,2 $11,418, $16,617, $21,817, $27,017, $27,017, $59,377, $12,930,
($69,000 0) 0) 0) 0) 50 00 50 000 750 500 250 250 875 375
)
Total Capital $1,862,0 $1,793,0 $1,724,0 $1,655,0 $3,842,7 $6,030,5 $8,218,2 $13,418, $18,617, $23,817, $29,017, $29,017, $88,395, $101,325
$1,931,0 00 00 00 00 50 00 50 000 750 500 250 250 125 ,500
00
Total Liabilities and Capital $1,882,0 $1,833,0 $1,784,0 $1,735,0 $5,231,7 $7,419,4 $9,607,2 $16,553, $21,753, $26,953, $32,153, $32,153, $91,283, $110,691
$1,931,0 10 20 30 40 05 55 05 915 665 415 165 165 896 ,159
00
Net Worth $1,862,0 $1,793,0 $1,724,0 $1,655,0 $3,842,7 $6,030,5 $8,218,2 $13,418, $18,617, $23,817, $29,017, $29,017, $88,395, $101,325
$1,931,0 00 00 00 00 50 00 50 000 750 500 250 250 125 ,500
00