Introducing… Lookout Below! Presented by Mike Splane Lookout Below! Monterey Bay There’s a world down there Mysterious... Hidden… Inaccessible… Lookout Below!
Download ReportTranscript Introducing… Lookout Below! Presented by Mike Splane Lookout Below! Monterey Bay There’s a world down there Mysterious... Hidden… Inaccessible… Lookout Below!
Introducing… Lookout Below! Presented by Mike Splane Lookout Below! 1 Monterey Bay There’s a world down there Mysterious... Hidden… Inaccessible… Lookout Below! 2 What’s Under That Quiet Surface? Lookout Below! 3 Hungry Predators Lookout Below! 4 A Kelp Forest Lookout Below! 5 Creepy Crawlers Lookout Below! 6 Weird Things Lookout Below! 7 And Much More You can’t see the forest. You can’t travel through it. Or can you? Introducing… Lookout Below! 8 Submarine Tours of Monterey Bay The Ultimate Underwater Experience Lookout Below! Provides underwater tours in customized submarines. Lookout Below! 10 Our Plan Beginning in 2006, Lookout Below! will be operating a 48 - passenger submarine in the Monterey Bay. We will test the concept and develop operational procedures and marketing methods in 2005. Used tourist submarines are available. Lookout Below! 11 Like This One Voyager off Oahu Lookout Below! 12 Voyager – Interior View Subs are roomy, safe and comfortable. Lookout Below! 13 Why should you invest? 2004 - Over 50 subs operating worldwide. 30 million passengers. Perfect safety record! A 95% satisfaction level. Risks are low! Submarines make money! Lookout Below! 14 We Solve These Problems Monterey Bay Aquarium – Artificial environment – Crowded. Long waits. Tour Boat Operators – Can’t see anything Scuba Diving – High Cost: $200-300 – Need: training, athleticism, special equipment Lookout Below! 15 The Market is Huge! Five Million Monterey Tourists Lookout Below! 16 With No Direct Competition Building barriers to entry is our main challenge. Ideas to use as barriers: • • • • • Promote govt. regulations Build Aquarium relationship Control of key advertising media placement sites Agreements w/sub builders Some confidential ideas. Lookout Below! 17 The Aquarium is Overcrowded 1,700,000 visitors each year Lookout Below! 18 Crowds Line Up For Tickets Lookout Below! 19 We can sell tickets at $50 • We asked potential customers. • We compared prices for other tours. • We looked at our expenses. Lookout Below! 20 The Basic Revenue Model Per Trip We have 48 available seats We sell 40 seats per trip (average) Tickets sell for $50 Revenue per trip = 40 * $50 = $2,000 Per Year Open 300 days per year. Run 6 trips per day. Total annual trips = 300 * 6 = 1,800 Annual revenue = $2,000 * 1,800 = $3,600,000 Lookout Below! 21 Rough Profit Estimate Ticket Revenues Payroll Costs $ 3,600,000 (Industry Average + 50%) $ 1,000,000 Sales Expenses $ ($10 per passenger) 720,000 Operations Expenses $ 600,000 Annual Net Profit $ 1,280,000 Sales Margin = 35.5 % ($2,000 Day) Lookout Below! 22 Development Timeline Test Stage 2005 - Operate one mini-submarine Operations Stage 2006 - Operate a large submarine Expansion Stage 2007 - Add tours 2008 - Add a second submarine Lookout Below! 23 Most preliminary work has been done. Business plan Marketing surveys Feasibility analysis Financial analysis Operations schedule Staffing schedule Industry research √ √ √ √ √ √ √ Lookout Below! 24 The Next Steps Recruiting the management team Developing community relationships Obtaining licenses and permits Raising money Building infrastructure Purchasing assets Selling to Customers Lookout Below! 25 Planned Management Team Actively seeking: A Marketing Manager An Operations Manager Mike Splane - Founder Business Professor Experienced Travel Industry Controller Knows the area/market MBA in Entrepreneurship Lookout Below! 26 Asset Requirements Testing Phase Purchase a mini-submarine: Inventory and Start-up Expenses: Year 1 Purchase a used submarine: Year 3 Purchase a new submarine: Lookout Below! $ 265,000 $ 535,000 $2 million $5 million 27 Financing Desired Model 1 - Spend a year in testing 2005 - $1 Million 2006 - $2 Million 2008 - $2 Million Model 2 - Skip the testing phase 2005 - $2.5 Million 2007 - $2 Million Lookout Below! 28 The Pay Off Pro Forma Summary Details Available on Request Year Passengers Revenue Annual Profit One 38,808 $ 2,197,185 $ -732,906 Two 83,808 $ 4,698,778 $ 1,024,778 Three 143,964 $ 7,975,347 $ 1,034,981 Four 181,440 $ 9,994,377 $ 2,531,585 Five 194,400 $ 10,693,986 $ 4,083,565 Lookout Below! 29 Investment Information Contact: Mike Splane (408) 924-3533 San Jose State University College of Business One Washington Square San Jose, CA 95110 [email protected] Lookout Below! 30