Our marketing strategy will be based mainly on making the right service(s) available to the right target customer. We will ensure that our services’ prices take into consideration organizations’ and peoples’ budgets, and that these people know that we exist, appreciate the value of our services, and how to contact us. The marketing will convey the sense of quality in every picture, every promotion, and every publication. Our intension will be to target those individuals and groups looking for leisure activities and places to visit. We realize the need to focus our marketing message and our service offerings. We need to develop our message, communicate it, and make good on it. The decision to establish strategic alliances with several hotels, lodges and travel agencies is aimed at tapping our target market effectively and efficiently.
We have identified competing companies, some firmly established, that fill the same needs as Sephats Tours. We intend to market ourselves in such a way that with time competitor customers will choose our service over competitors’ on the basis of our higher quality and informative excursions. A more thorough outline of our main competitors including their strengths and weaknesses follows:
Upon closer analysis of the above competitors it may be observed that the majority of these are offering safari excursions, and this represents an opportunity to be realized by us. According to the Central Statistics Office there are approximately 81 travel agents, tour operators and safari operators in Botswana at present, the majority of which have a South African background either in directorship or actual origin.
Our advantages are best described as our strengths:
The keys to Sephats Tours success will undoubtedly be effective market segmentation through identification of several niche markets and implementation strategies. Along these lines the company intends to implement advertising, personal selling and direct marketing strategies to the target markets. Our personal selling marketing strategies will rotate around keeping in touch with hotels and travel agencies for major customers, and advertising for more individual customers. Hence our key success factors will include the following:
Marketing plan.
One core element of our strategy will be that of differentiation from our competitors. In terms of marketing we intend to ensure that our name and services are marketed on an extensive basis so that customers are aware of our existence. We will have a Social Media Strategy. We will be in Twitter, on Facebook, and on LinkedIn. We will run promotions and sales and have our customers tell us their favorite vacations, and experiences and they will talk to each other. In price, we intend to offer reasonable and competitive prices in comparison to competition and we need to be able to sustain that. Our service marketing will strive to ensure that we establish long relationships with clients.
For the short term at least, the selling process will depend on personal selling/networking and advertising to lure and inform potential customers about the services we offer and the benefits of utilizing our services. Our marketing does not intend to affect the perception of need as much as knowledge and awareness of the service category.
At present the company offices are located at Plot Number 28338, Block 3, Belabela road opposite Gaborone Television Station, near Hill Crest Primary School. However, as time progresses the intention is to move into more accessible and attractive offices in a prime area. This regardless of the fact that our type of business is not too dependent on office location and size.
Sephats Tours will strive to ensure that it contains the latest, or extremely recent personal computer including relevant software so as to ensure that the company is continuously at the forefront in our market arena. The one certainty in our industry is that technology will continue to evolve and develop, changing what we market as well as how we market it. Our aim will be to be aware of the implications of this new technology and utilizing it in our existing framework where possible. However it should be noted that as we are new on the market it will take some time before we have in place our own website and other multimedia presentations. With time we also intend to have the latest and most efficient software in place to enable smooth operations.
Key metrics.
Our Key metrics are:
Sephats Tours is a Private Limited company incorporated at the Registrar of Companies through the foresight and vision of Mr. X and Mrs. Y. It is a 100% wholly owned Botswana firm.
The founders of Sephats Tours are passionate about the activities it will promote and offer on the market. Management style will reflect the participation of the directors/shareholders. The company intends to respect its community and treat all employees well. We will develop and nurture the company as community. However we realize that we are not fully conversant in tourism and as such intend to engage experienced staff as well as undergo a training course from a reputable institution.
The Managing Director’s experience in public commercial transportation and government will assist in the establishment of good networks. He also has attended a course in Auto Mechanics at X Centre that will assist in servicing the vehicles. However acknowledging the importance of continuous training and improvement the Managing Director intends to undergo a course in Travel and Tourism so as to be fully conversant in the field, as well as obtain knowledge of the latest developments in the industry.
2020 | 2021 | 2022 | |
---|---|---|---|
Accountant | P30,000 | P33,000 | P36,300 |
Tourguide | P24,000 | P26,400 | P29,040 |
Sales and Marketing | P21,600 | P23,760 | P26,136 |
Driver | P18,000 | P18,900 | P19,845 |
Personal Assistant | P14,400 | P15,840 | P17,424 |
Cleaner (2) | P14,400 | P15,120 | P15,876 |
Nightwatchman (2) | P14,400 | P15,120 | P15,876 |
Mechanic (0.67) | P15,000 | P17,000 | |
Totals | P136,800 | P163,140 | P177,497 |
Key assumptions.
Some of the more important underlying assumptions are:
Expenses by month, net profit (or loss) by year, use of funds.
Thus far we have purchased a Mercedes Benz mini bus to run tours for our customers, for P167,00, which was purchased with P32,000 down and the rest on a 5-year 6% loan. Other start-up expenses covered include legal costs, business plan compilation, license costs and related expenses.
START-UP REQUIREMENTS
Start-up Expenses
TOTAL START-UP EXPENSES P5,000
We have 2 investors, investor 1 is investing P100,000, investor 2 is investing 102,000.
2020 | 2021 | 2022 | |
---|---|---|---|
Revenue | P678,000 | P802,000 | P916,000 |
Direct Costs | P325,440 | P384,960 | P439,680 |
Gross Margin | P352,560 | P417,040 | P476,320 |
Gross Margin % | 52% | 52% | 52% |
Operating Expenses | |||
Salaries & Wages | P136,800 | P163,140 | P177,497 |
Employee Related Expenses | P27,360 | P32,628 | P35,499 |
Rent | P14,400 | P14,400 | P14,400 |
Sales and Marketing | P101,700 | P120,300 | P137,400 |
Insurance | P12,000 | P12,000 | P12,000 |
Travel | P1,800 | P1,800 | P1,800 |
Miscellaneous | P2,400 | P2,400 | P2,400 |
Maintenance | P12,000 | P12,000 | P12,000 |
Startup Expenses | P5,000 | ||
Total Operating Expenses | P313,460 | P358,668 | P392,996 |
Operating Income | P39,100 | P58,372 | P83,324 |
Interest Incurred | P7,451 | P5,978 | P4,416 |
Depreciation and Amortization | P16,700 | P16,700 | P16,700 |
Gain or Loss from Sale of Assets | |||
Income Taxes | P2,242 | P5,354 | P9,332 |
Total Expenses | P665,293 | P771,660 | P863,124 |
Net Profit | P12,707 | P30,340 | P52,876 |
Net Profit/Sales | 2% | 4% | 6% |
Starting Balances | 2020 | 2021 | 2022 | |
---|---|---|---|---|
Cash | P25,365 | P46,323 | P57,282 | |
Accounts Receivable | P43,500 | P40,100 | P45,800 | |
Inventory | ||||
Other Current Assets | ||||
Total Current Assets | P68,865 | P86,423 | P103,082 | |
Long-Term Assets | P167,000 | P167,000 | P167,000 | |
Accumulated Depreciation | (P16,700) | (P33,400) | (P50,100) | |
Total Long-Term Assets | P150,300 | P133,600 | P116,900 | |
Total Assets | P219,165 | P220,023 | P219,982 | |
Accounts Payable | P26,085 | P22,827 | P25,820 | |
Income Taxes Payable | P2,242 | P1,360 | P2,355 | |
Sales Taxes Payable | P0 | P0 | P0 | |
Short-Term Debt | P23,869 | P25,342 | P26,905 | P28,564 |
Prepaid Revenue | ||||
Total Current Liabilities | P23,869 | P53,669 | P51,092 | P56,739 |
Long-Term Debt | P111,131 | P85,789 | P58,885 | P30,321 |
Long-Term Liabilities | P111,131 | P85,789 | P58,885 | P30,321 |
Total Liabilities | P135,000 | P139,458 | P109,977 | P87,060 |
Paid-In Capital | P202,000 | P202,000 | P202,000 | |
Retained Earnings | (P135,000) | (P135,000) | (P122,293) | (P121,953) |
Earnings | P12,707 | P30,340 | P52,876 | |
Total Owner’s Equity | (P135,000) | P79,707 | P110,047 | P132,923 |
Total Liabilities & Equity | P0 | P219,165 | P220,023 | P219,982 |
2020 | 2021 | 2022 | |
---|---|---|---|
Net Cash Flow from Operations | |||
Net Profit | P12,707 | P30,340 | P52,876 |
Depreciation & Amortization | P16,700 | P16,700 | P16,700 |
Change in Accounts Receivable | (P43,500) | P3,400 | (P5,700) |
Change in Inventory | |||
Change in Accounts Payable | P26,085 | (P3,258) | P2,993 |
Change in Income Tax Payable | P2,242 | (P882) | P995 |
Change in Sales Tax Payable | P0 | P0 | P0 |
Change in Prepaid Revenue | |||
Net Cash Flow from Operations | P14,234 | P46,300 | P67,864 |
Investing & Financing | |||
Assets Purchased or Sold | (P167,000) | ||
Net Cash from Investing | (P167,000) | ||
Investments Received | P202,000 | ||
Dividends & Distributions | (P30,000) | ||
Change in Short-Term Debt | P1,472 | P1,563 | P1,659 |
Change in Long-Term Debt | (P25,342) | (P26,905) | (P28,564) |
Net Cash from Financing | P178,131 | (P25,342) | (P56,905) |
Cash at Beginning of Period | P0 | P25,365 | P46,323 |
Net Change in Cash | P25,365 | P20,958 | P10,959 |
Cash at End of Period | P25,365 | P46,323 | P57,282 |
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Tour operator business plan guide.
Before you start to create your official business plan, it can be helpful to think through several aspects of your business so that you are fully prepared to address each topic in this business plan guide. One excellent preparation exercise is to complete a Business Model for your company.
Download Business Plan Guide PDF
With your Business Model prepared, you can now more easily complete your Tour Operator Business Plan .
Your tour operator business plan should contain at least seven sections:
As the first component of your business plan, the executive summary is arguably the most important section. If you’re pitching your idea to investors, they’re likely very busy people, so you want to grab their attention from the beginning. The executive summary should contain a concise outline of your tour operator company’s objectives and goals, your mission and/or vision statements , your key success factors, and a clear description of your value proposition.
Think of this section as what you would post on the “About” section of your tour operator company’s website. The company overview should explain who your company’s key leaders are, how and when the business started, what the ownership structure looks like (if you have investors, for example), where your office is located, and an outline of your current assets and debts. If you’re in the early stages of your business, this section might be quite short.
The operations plan is where you describe exactly what your company will offer. What kinds of tours will you sell? Where exactly will you operate? This is the type of information you would list on your website for potential customers or guests to read – but without too much of a sales pitch.
In this section, it can also be helpful to include a description of the full “ life cycle ” of your business. What happens before, during, and after a tour? What steps does the guest complete, and what happens behind the scenes at your company’s office?
It might be helpful for example, to illustrate how someone could book a tour perhaps six months in advance on your website. Between booking and arrival, coordinate accommodation, meals, and transportation with partner providers. When the tour concludes, offer transportation back to the airport and follow up with a special offer to book another tour with us at a discount.
This section explores your specific niche within the tourism industry and the geographic location(s) where you plan to operate. Who are your target clients or guests? Who are your main competitors? What trends exist in this industry sector? Is the number of visitors to your location increasing or decreasing? Try to include statistics from reputable sources whenever you can. Destination Marketing Organizations (DMOs), Chambers of Commerce, and the New Mexico Tourism Department, just to name a few, can provide valuable insight and add credibility. This section should leave no stone unturned so that your reader can truly understand your market conditions.
For example, try to include information about travel trends in New Mexico, economic trends, the number of new hotels being built, etc. We would also explore the ecotourism market; are more people choosing eco-friendly travel options today compared to five years ago? What companies are the current ecotourism market leaders?
Later in this toolkit, you will have an opportunity to further flush out your marketing plan utilizing the Entrepreneur Tour Operator Toolkit – Branding & Marketing guide .
Now that you’ve explained your business idea and described the market in which you plan to operate, it’s time to outline exactly how you will bring your tour operator business to life. This section should include a SWOT analysis, details about your marketing and pricing strategies, and a sales projection.
In the SWOT analysis , you will explore your company’s strengths, weaknesses, opportunities, and threats. What does your company offer that nobody else in the market does? What are some potential challenges that you will need to face? Using an ecotourism company example, a threat could be natural disasters – if there are floods or mudslides, our business cannot operate. On the other hand, an opportunity is that more people are interested in eco-friendly travel options.
Your marketing and pricing strategies should be very specific. How will customers find your company? Which online channels will you use? Will you work through travel agents or directly with your customers?
Your pricing strategy should include the exact rates you plan to charge for at least a year in advance. For example, will you charge different prices for different packages? For low season vs. high season vs. holiday periods? With rates increasing 5% each year? And/or consider a 10% discount for advance purchase bookings made at least 6 months in advance and charge a cancellation fee for any reservations canceled within 3 months of the tour departure date. Based on your pricing strategy, you can create a sales projection that will estimate your company’s sales performance, preferably over the next three years.
After you understand what your tour operator business will do, you’ll wonder who is going to make it happen. And if you’re planning to launch a full-fledged tour operator business, you’re probably not going at it alone. The Team Summary section should include a thorough plan for your company’s organizational structure, key leaders, employees, and training processes.
Do you already have a management team in place, or will you need to hire additional leaders? How many employees will you need, and how much will you pay them? And how will you train and develop your employees? The Team Summary should answer all of these questions and provide enough information for potential investors to understand exactly how you plan to staff your business, pay your employees, and ensure all team members are trained properly.
The financial plan is extremely important to potential investors because they will want to maximize the return on their investment. Your financial plan is essentially a projection of your revenue streams and cost structure for your company’s first five or so years of operation. It will include not only revenue from ticket sales and costs from employee salaries, but also details like tour-operator software costs, insurance, taxes, marketing spend, depreciation of assets, interest on loans, and more.
A break-even analysis is a critical part of the financial projections in the business plan for a new business. Financing sources will want to see when you expect to break even so they know when your business will become profitable.
But even if you’re not seeking outside financing, you should know when your business is going to break even. This will help you plan the amount of startup capital you’ll need and determine how long that capital will need to last. A one-page break-even analysis template is available to help you through this exercise.
In general, you should aim to break even in 6 to 18 months after launching your business. If your break-even analysis shows that it will take longer, you need to revisit your costs and pricing strategy so you can increase your margins and break even in a reasonable amount of time.
If you don’t have a finance background yourself, it may be helpful to seek assistance from an accountant or someone who knows the ins and outs of financial modeling.
In an appendix, you can include supporting information or statistics that may be helpful for potential investors, but not essential to your business plan. For instance, you could include a full report on trends that you used in your Market Analysis section.
Tips and Tricks for A Strong Tour Operator Business Plan
In summary, writing a business plan is certainly not an easy task. It’s time-consuming and requires a lot of thought, but a well-written business plan can lead to significant growth for your company. As you complete your business plan, keep these pieces of advice in mind:
Back to Tour Operator Toolkit Outline
A tour operating service based firm would need a strategically-made business plan that will help lead it to financial stability and success. Consider creating a plan through this Tour Operator Business Plan Template. You can utilize this well-made business plan to make sure that your tour operating business is aimed towards achieving its envisioned goals in the industry. This business plan comes with suggestive content you can easily customize to your needs. An unapologetically-made business plan that you can view and edit in your computer, laptop, tablet & even smartphone. Download this Tour Operator Business Plan and map your direction towards success!
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Writing a tour operator business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and ...
A tour operator business plan is a document that outlines the strategies you have developed to start and/or grow your tour operator business. Among other things, it details information about your industry, customers and competitors to help ensure your company is positioned properly to succeed. Your tour operator business plan also assesses how ...
Vantaggi di un business plan per tour operator. Un piano scritto vi aiuta a fissare obiettivi realistici e a sviluppare una strategia di marketing operativo costruita per il successo. Per questo motivo, quando si inizia a lavorare con la propria azienda turistica, è bene investire tempo nella creazione di un piano aziendale efficace che copra ...
1. Business overview. This section of your tour operator/ tour agency business plan provides a holistic snapshot of your company, offering readers a clear understanding of your business's identity. Ideally, it should include the following: Business Name: Your business name should resonate with your target audience, conveying the essence of ...
With your Business Model prepared, you can now more easily complete your Tour Operator Business Plan. Your tour operator business plan should contain at least seven sections: 1. an executive summary, 2. a company overview, 3. a description of your services, 4. an analysis of your market, 5. an implementation plan, 6. a team summary, and 7.
Let's go through the content of each section in more detail! 1. The executive summary. In your tour operating business's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.
Tour Operator Business Plan Template. Your tour operator business plan should contain at least seven sections: an executive summary, a company overview, a description of your services, an analysis of your market, an implementation plan, a team summary, and a financial plan. You might have one or more appendices at the end, if you have ...
Defining your business goals and having a clear vision of the path to achieving them is the first step you should take when starting a tour operator company. Decide on what you want your business to look like now, in a year, in 3 years, and then further into the future. Success doesn't happen by chance - it is a product of strategy and hard work.
1. Fill our Business Model worksheet. We've created a Business Model worksheet especially for tour and activity business owners looking to define their business ambitions and map a direction forward. Print out a copy, have a few pens handy, and unleash your business creativity. You could also have fun covering a large print-out with Post-it notes.
Step 5: Register Your Business. Registering your business is an absolutely crucial step — it's the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running. Plus, registration is exciting because it makes the entire process official.
Some examples of goals and steps you may come up with: Expand your tour activity selection. In order to do so, you need to find gaps in the market that you can meet with your resources and experience. Reach a new market segment. That requires that you perhaps partner with other travel agents and activity providers.
Il Business Plan Tour Operator è un modello pensato su un Tour Operator standard facilmente modificabile in base alle esigenze ricorrenti. Il documento caricato su un file Word molto facile da usare è suddiviso in diverse sezioni e offre: Il piano economico- finanziario caricato su di un file Excel.
Il Tour Operator "I Viandanti" è un'impresa turistica di piccole dimensioni con sede a Perugia. E' chiuso al pubblico e da qualche anno si è specializzato nella produzione di viaggi da catalogo di medio e lungo raggio alla scoperta di tradizioni e culture autoctone. Le vendite
Pro Business Plans is a team of professional researchers, writers, designers, and financial. analysts. Speak with an advisor today. GET QUOTE. Speak with Sales (646) 866-7619. This article provides information on what is included in a tour operator business plan and how it is typically structured.
Basic Information. A tour company business plan contains several sections to be developed in a clear and detailed manner, such as a description of the company, partnership opportunities, and market analysis. It will also include information for an operations plan, a marketing plan, and a list of the products and services your company will provide.
P25,365. P20,958. P10,959. Cash at End of Period. P25,365. P46,323. P57,282. Download This Plan. Explore a real-world travel tour agency business plan example and download a free template with this information to start writing your own business plan.
Your tour operator business plan should contain at least seven sections: an executive summary, a company overview, a description of your services, an analysis of your market, an implementation plan, a team summary, and. a financial plan. You might have one or more appendices at the end if you have additional relevant information to include.
This business plan comes with suggestive content you can easily customize to your needs. An unapologetically-made business plan that you can view and edit in your computer, laptop, tablet & even smartphone. Download this Tour Operator Business Plan and map your direction towards success! Free Download Free Template. Word. Google Docs. Apple Pages.
Financial Plan. This area is your eyes! Your financial forecast is incredibly important for any startup tour operator business. Every penny going in and every penny going out should be included. This will allow you to see how to price effectively, marketing budgets, cost of sales, staff costs and every element of monies concerning your business.