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Terri Fargo Jonathan Scharffenberg Sally Arizaga Ramon Perez Christian Machado PowerPoint Presentation
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Terri Fargo Jonathan Scharffenberg Sally Arizaga Ramon Perez Christian Machado

Terri Fargo Jonathan Scharffenberg Sally Arizaga Ramon Perez Christian Machado

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Terri Fargo Jonathan Scharffenberg Sally Arizaga Ramon Perez Christian Machado

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Presentation Transcript

  1. Terri Fargo Jonathan Scharffenberg Sally Arizaga Ramon Perez Christian Machado Gold Compass Travel Travel. In the right direction.

  2. Mission Provide customers with a unique and personalized vacation planning experience in a manner that reflects our passion for travel and commitment to superior customer service.

  3. Vision Our vision is to facilitate the creation of positive life experiencesthrough travel.

  4. Concept • Luxury Vacation Planning Specialists • Customer Value Through • “Above and Beyond” Service • Customer Database • Destination Packets • Vacation Debriefing • Seminars

  5. Concept • Convenient Access • Store Location • Web site • “House Calls”

  6. Organization and Management • General Partner and Manager • Terri Fargo • Limited Partner and Agents • Sally Arizaga • Christian Machado • Ramon Perez • Jon Scharffenberg • Augmented by Advisory Board

  7. Industry • Industry Overview • Travel Agencies: SIC 4724 & NAICS 561510 • Travel & Tourism- 3rd Largest Retail Industry • Overall Travel Expenditures $679.4 billion in 2006

  8. Industry • Industry Characteristics & Trends • Mature and growing at 2.9% • Consolidation of Industry • Declining Commissions = Service Fees • Industry Competitors • Online (Expedia and Priceline.com) • Local Markets

  9. Market • 44% Increase in Millionaire Households Since 2003 • Increased Luxury Consumer Spending in 2006 • 3.8% of income • $56,000 estimated in 2006

  10. Target Market • Individuals Age 30-50 • College Educated • Married • Three Categories • Near Affluent • Affluent • Super-Affluent • Highest Mean Income: El Dorado County & Placer County

  11. Customer Profile • Affluent Traveler • Less likely to book online • Want convenience • Want to be “educated”

  12. Customer Profile • Seek Experience Rather Than Material Goods • Enjoyment & pleasure • Quality of life • Relaxation & stress relief • “Making memories” • 6 trips per year • Almost $26,000 on travel

  13. Sales Forecast • National Market • 33,000 establishments • $59.5 billion • State Market • 5,785 establishments • $7 billion

  14. Sales Forecast • Local Market • 223 establishments • $196.4 million • .45% penetration • $900,000 in revenue • Gold Compass Travel • .15% penetration 1st year • $288,708 in revenue

  15. Start-Up Capital • Owner Injection • General Partner - $500 • Limited Partners - $7,000 each • Total = $28,500 • Loans • $55,000 the 1st year • 1st year only interest payments • 2nd year start paying the principal on the loan

  16. Credit Financing • $200,000 Line of Credit • Amortized over 30 years at 8.25% interest with a balloon after 6 years

  17. Use of Funds • Rent & Tenant Improvements • Tenant improvements $7,800 • Rent $16,000 • Salaries • $80,000 • Technology • $6,110

  18. Use of Funds • Marketing • $28,565 • Licenses & Certificates • $5,355

  19. Growth Rate

  20. Revenue Year 1= $288,708 Year 2= $363,525 Year 3= $398,865 Year 4 = $430,776 Year 5 = $465,238 Net Income Year 1= $18,580 Year 2= $91,754 Year 3= $107,731 Year 4 = $117,109 Year 5 = $135,583 Revenue and Net Income

  21. Total Assets • Year 1 = $135,849 • Year 2 = $253,727 • Year 3 = $368,605 • Year 4 = $496,774 • Year 5 = $642,538

  22. Profitability • 5 Year Annual Average • Return on Investment = 80% • Gross Profit Margin = 90% • Net Profit Margin = 23%

  23. General Partner Terri Fargo 30% equity position Limited Partners Christian, Jon, Ramon, Sally 17.5% equity position each = 70% Allocation of Profits and Losses

  24. Exit Strategy • Remain in business • Alternative: • Sell at the end of year five • No less than balance sheet value of $642,538 • DCF Valuation of expected cash flows

  25. Thank you for viewing our presentation QUESTIONS?