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Executive Summary

The Silver Bear Lodge is located three blocks from Crest Lake Village, midmountain at Bear Valley Resort and on the free shuttle system. Located in the recently expanded Crest Canyon area, Silver Bear Lodge will offer customers 12 two-bedroom units with underground parking, fully-equipped kitchens, laundry facilities and stone fireplaces. Silver Bear Lodge also will offer a common-area outdoor hot tub as well as a on-site store and on-site front desk service. Each year, over 150,000 skiers and nature lovers visit the Bear Valley Resort area. On average, visitors spend over $250 million, annually, for lodging, food, and recreational activities at Bear Valley Resort. Marty Snyder man and Luke Roth, co-owners of the Silver Bear Lodge, will operate the lodge as a ski resort during the months of November to April. During the spring and summer months (May to August), the Silver Bear Lodge will operate as a summer resort. The lodge will be closed during the months of September and October.

1.1 Objectives
The objectives of the Silver Bear Lodge for the first three years of operation include:

Exceeding customer's expectations for luxury après ski accommodations.

. They will also secure a mortgage to purchase the property for $250.000. 2. 1.2 Mission The mission of Silver Bear Lodge is to become the number one lodge of choice with visitors to Bear Valley Resort. has 12 two-bedroom units with underground parking. Silver Bear Lodge also has a common-area outdoor hot tub as well as an on-site store and on-site front desk service. Assembling an experienced and effective staff. located in the recently opened Crest Canyon area.• • Maintaining a 90% occupancy rate during the peak periods. laundry facilities and stone fireplaces.1 Company Ownership Marty Snyder man and Luke Roth are co-owners of the Silver Bear Lodge.000 and an SBA loan for $100. 2. Company Summary The Silver Bear Lodge. fully-equipped kitchens.2 Start-up Summary Marty Snyder man and Luke Roth will each invest $100.000.

400 $364.600 $0 $14.Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required $185.000 $14.600 $550.600 Liabilities and Capital Liabilities Current Borrowing $0 .600 $364.000 Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets $350.

$5.000 $0 $0 $350.000 We recommend using Live Plan as the easiest way to create automatic financials for your own business plan.000 $400 .400) $14.600 Total Funding $550.000 $0 $200.Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Marty Snyderman Luke Roth Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities $350.000 $100.000 $100.600 $364.000 ($185. Start-up Requirements Start-up Expenses Legal Stationery etc.

Silver Bear Lodge will offer a common-area outdoor hot tub as well as the following services on-site: • • • Food store Ski rental/clothing shop Front desk service .Brochures Rental Shop Setup Property Down payment Lodge Setup Store Setup Insurance $6. Products Silver Bear Lodge will offer customers 12 two-bedroom units. laundry facilities and stone fireplaces.000 Total Assets Total Requirements 2.000 $20.000 $50.000 $185.600 $0 $350.000 $364.400 Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets $14.000 $50.3 Company Locations and Facilities The charm and solitude of Bear Valley's secluded mountain setting is found just 36 miles from the Richmond International Airport.000 $50. fully-equipped kitchens.000 $4.600 $550.

Summer Visitors.1 Market Segmentation Our customers can be broadly divided into two groups: • Skiers.Market Analysis Summary Resort hotel development and operation in the Bear Valley Resort area has been very profitable and successful due to the economic upturn experienced in the early and mid 90's. There are forty condominiums. Time-share / resort hotel development and investments into ski resorts nationwide are currently going strong. The resort is located 36 miles from Richmond International Airport and is easily accessible. inns and hotels within two miles of the resort. The Bear Valley Resort area is quickly becoming one of the best ski resorts in the U.S. sales of time-shares in the Bear Valley Resort area have increased by over 35 percent. In the past two years. the Bear Valley Resort area is a beautiful wilderness retreat with over 50 hiking trails and other outdoor recreational activities. lodges. • . 4. Each year. During the summer months. New construction is planned in the spring for two condo complexes and a hotel. room occupancy is close to 100% during the peak skiing season.

025 136.350 91.411 15.Graphs for your own business plan. There will be a ski rental shop where customers can outfit themselves and purchase ski passes. These facilities represent only 580 room units of the total of 4. During the winter there is skiing but in the summer months. day hikes into Bear Valley. white water adventures.00% 90.000 Year 2 Year 3 Year 4 Year 5 CAGR 103.00% Strategy and Implementation Summary Silver Bear Lodge will aggressively market to both winter and summer visitors of the Bear Valley Resort area.132 262. There are only thirteen lodges and inns in the Bear Valley Resort. and other recreational activities that take advantage of valley's spectacular beauty.879 157.352 15. The Bear Valley Resort has activities occuring year round. Market Analysis Year 1 Potential Customers Growth Skiers Summer Visitors Total 15% 15% 15. We will offer a food shop that will be able to take special orders daily.000 room units in the resort area.000 172.500 198. The lodge will cost a little more but we will offer our customers all the services they need to make their stay memorable.000 60. congenial environment that will assure return visits to the Silver Bear Lodge. the resort has hot-air balloon trips. . Our customers are looking for a different lodging experience that cannot be found in any of the area's condo complexes or hotels.000 79. Each evening.253 104.00% 150.941 15.375 228. We will offer our customers a comfortable.500 119.00% 69. The majority of room units in the area are condos.

Before this position. Being located in the recently opened Crest Canyon area. 5. have over twenty years’ experience in managing ski lodging facilities. Marty is the manager-owner of the Crest Lake Inn. 5. Luke was the manager of The Ridge.5 miles). 5.$250 per night in peak season. He has owned the inn for ten years.1 Competitive Edge The competitive edge of Silver Bear Lodge is the service. a 60 unit condo complex in Silver Lake Village. Room rates for the lodge will range from $150 . first and foremost. Silver Bear Lodge is uniquely positioned to be centrally located to both Crest Lake Village (. In the off season prices will range from $100 to $175 per night.2 Sales Strategy The Silver Bear Lodge's sales strategy is to harness the existing Bear Valley Resort booking system that has been critical to the success of all of the area's lodges and inns.5 miles) and the Bear Valley Resort ski area (. Luke recently was the manager of the Village Resort Hotel. Marty Snyder man and Luke Roth. .1 Sales Forecast The following is the sales forecast for three years.2. co-owners of the Silver Bear Lodge. drinks and light music.guests can gather in the lodge's main room where there is a large fireplace. Another significant advantage for the Silver Bear Lodge is its location. He held that position for the last five years.

000 $132. Sales Forecast Year 1 Year 2 Year 3 Sales Rooms Food Ski Rentals Clothing Total Sales Direct Cost of Sales Rooms Food Ski Rentals Clothing $0 $59.000 $180.000 Year 1 $0 $71.000 Year 2 $0 $90.022.000 $600.000 $560.000 $140.000 $0 $38.000 $0 $30.000 $58.000 $70.500 $0 $23.000 $915.We recommend using Live Plan as the easiest way to create graphs for your own business plan.000 Year 3 .000 $82.000 $121.000 $1.700 $430.000 $145.000 $160.000 $741.

The Silver Bear Lodge is positioned as a new upscale facility that is focused on the high-income visitors to Bear Valley Resort.000 5.000 Year 3 $42. Assistant manager. Maintenance staff (3). Management Summary Luke Roth will be the manager of the daily operations of the Silver Bear Lodge. Lodge staff (7). 70% of the area's visitors use the website to identify lodging and service options.000 . Currently.3 Marketing Strategy The Bear Valley Resort area has its own website and advertising/promotion program that promotes the area's lodging. the Silver Bear Lodge will be highlighted in a promotional piece for Bear Valley Resort in the December issue of Ski Magazine.Subtotal Direct Cost of Sales $83. Food store staff (3).000 Year 2 $39. Ski rental/clothing store (3).200 $101. Personnel Plan Year 1 Manager $36. these lodging units fill up quickly.000 $128. The area's lodges and inns receive approximately 80% of their guests from the Bear Valley Resort booking system.1 Personnel Plan The personnel needed for the Silver Bear Lodge are the following: • • • • • • • Manager. Since the total number of room units are few with the area's lodges and inns. In addition. 6. Cleaning staff (4).

000 $48.000 $126.000 22 $414.000 $42.000 $120.000 $110.000 $76.000 $39.000 22 $438.000 $72.000 $39.000 Financial Plan The following is the financial plan for the Silver Bear Lodge.000 $48. .000 $52.000 $55.000 $79.000 $35.Assistant Manager Lodge Staff Food Store Staff Ski Rental/Clothing Store Staff Maintenance Staff Cleaning Staff Total People Total Payroll $42.000 9 $382.000 $46.000 $45.1 Break-even Analysis The monthly break-even point is approximately $52.000 $43. 7.900.

Break-even Analysis Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost 11% $46. Pro Forma Profit and Loss Year 1 Year 2 Year 3 .965 $52.2 Projected Profit and Loss The following is the projected profit and loss for three years.905 7.

700 $0 $667.280 $0 $26.000 87.100 $0 $620.254 $42.375 $18.000 $101.964 13.000 $0 $57.000 88.000 $814.580 $94.380 $193.000 $14.48% $382.000 $60.220 $108.000 $14.000 $894.77% $915.280 $0 $26.000 $0 $65.900 $30.980 $226.022.936 $114.Sales Direct Cost of Sales Other Production Expenses Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance Lease Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales $741.200 $657.592 5.000 $83.000 $100.000 $24.000 $24.800 88.300 $27.000 $128.000 $0 $101.60% .200 $0 $83.96% $1.75% $414.500 $59.500 $48.300 $0 $563.000 $80.020 $240.000 $0 $128.000 $0 $62.000 $24.556 $138.48% $438.184 12.280 $0 $26.500 $33.000 $14.620 $207.

555 $165.560 $341.840 $387.995 $430.744 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 Year 1 Year 2 Year 3 $3.405 $200.000 $323.440 $491.619 $0 $0 $30.157 $370.000 $150. Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Other Current Assets Total Current Assets $31.7.619 $200.400) $42.000 $28.619 $290.000 ($142.592 $30.000 $14.405 $260.160 $605.555 $32.809) $114.584 Year 2 Year 3 Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets $350.000 $45.964 .000 $42.437 $14.965 $320.000 ($28.184 $35.405 $0 $0 $35.280 $335.000 $218.3 Projected Balance Sheet The following is the projected balance sheet for three years.000 $295.000 $320.965 $0 $0 $3.437 $118.965 $200.625) $138.000 ($185.720 $381.584 $53.

192 $171.000 Year 2 Year 3 .000 $915.Total Capital Total Liabilities and Capital Net Worth $57.192 $381.376 $310.000 $915.000 $1.022.744 $310.995 $171.000 $1.4 Projected Cash Flow The following is the projected cash flow for three years.376 $491.340 7.340 $605.022.157 $57.000 $741. Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received $741.

000 $0 Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $0 $724.000 $21.000 Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.000 $30.000 $345.971 $47. VAT.882 $87.971 $863.Sales Tax.022.837 $31.000 $18.000 $60.000 $20. 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 $0 $0 $0 Year 1 Year 2 Year 3 $382.882 $438.163 $16.163 $414.163 $680. VAT.000 $425.000 $0 $0 $0 $0 $0 $0 $0 $915.000 $298.437 $0 $827. 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 $0 $0 $0 $0 $0 $0 $0 $741.000 $14.882 $759.118 $118.971 $0 $0 $0 $30.029 $165.000 $0 $0 $0 $30.584 .555 $0 $974.000 $0 $0 $0 $0 $0 $0 $0 $1.

00% 88.7.46 85.40% 34.00% 0.08% 100.95% 85. Ratio Analysis Year 1 Sales Growth Percent of Total Assets 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.72% 100. are shown for comparison.00% 0.00% 68.12% 100.92% 88.48% 8.17 6.90% 2. Hotels and Motels.10% 1.00% 6.75% 36.17% 34.00% 75.00% 1.69% Industry Profile 5.00% 5.50% 30.84% 42.77% 51.00% Year 2 23.00% 100.00% 15.00% 100.22% 58.04% 83.96% 76.05 54.91% 100.48% 73.00% 6.78% 22.92 65.92 4.5 Business Ratios Business ratios for the years of this plan are shown below.92% 48.00% 87.77% 1.90% .10% 12.00% 4. General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets 11.74% 21.46 11.94% 65.00% 32.02% 8. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7011.00% 19.60% 54.50% 3.60% 69.67% 11.48% Year 3 11.00% 46.88% 9.00% 88.40% 100.09% 63.23% 26.16% 100.45 1.17 48.17% 6.77% 83.83% 8.

77% Year 3 13.69 n.Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.00 0.34 0.a n.63% 63.22 n.12 n.17 3.a .936 6.70% n.a n.39% 15.60% 44.a 5.00 0.15% Year 2 12.66 0.96 0.a n.47% 95.180 8.10 0.35 $183.29 0.a n.a n.96% Year 1 5. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 106.01 1.a n.59 6% 6.a n.48% 66.a 76.92 5.54 6% 4.18% 33.a n.75% 74. to Liab.82 $119.86 12.17 28 1.97% 32.a n.a $41.00 n.87 0.78% 1.95 0.17 17 1.46 12.94 12.51 1% 11.472 2.70% 3.a 0.19 27 1.