Southern Tropics Events

A Business Plan prepared as the final academic requirement for the

course New Enterprise Planning and Management (BM 238)

Submitted by:
Jenice Joy S. Sumaway

Submitted to:
Prof. Antonio Paderanga

University of the Philippines, Manila

Master of Management Business Management
October 13, 2011

1.

EXECUTIVE SUMMARY ..................................................................................................... 3

1.1.

OBJECTIVES ....................................................................................................................... 4

1.2.

VISION ................................................................................................................................ 4

1.3.

MISSION ............................................................................................................................. 4

1.4.

VALUES ............................................................................................................................... 4

1.5.

KEYS TO SUCCESS ............................................................................................................. 4

2.

COMPANY SUMMARY ........................................................................................................ 5

2.1.

COMPANY OWNERSHIP ................................................................................................... 5

2.2.

START-UP SUMMARY ....................................................................................................... 5

3.

SERVICES ............................................................................................................................... 7

4.

MARKET ANALYSIS SUMMARY ..................................................................................... 9

4.1.

MARKET SEGMENTATION ............................................................................................... 9

4.2.

SWOT ANALYSIS ............................................................................................................ 10

5.

STRATEGY AND IMPLEMENTATION SUMMARY ................................................... 11

5.1.

COMPETITIVE EDGE ........................................................................................................ 11

5.2.

MARKETING STRATEGY .................................................................................................. 11

5.2.1.

MARKETING OBJECTIVES ....................................................................................... 11

5.2.2.

MARKETING MIX ..................................................................................................... 11

5.3.

SALES STRATEGY ............................................................................................................ 12

5.3.1.
5.4.
6.

MILESTONES ................................................................................................................... 14

MANAGEMENT SUMMARY ............................................................................................ 14

6.1.
7.

SALES FORECAST .................................................................................................... 12

PERSONNEL PLAN .......................................................................................................... 14

FINANCIAL PLAN .............................................................................................................. 16

7.1.

BREAK-EVEN ANALYSIS ................................................................................................ 16

7.2.

PROJECTED PROFIT AND LOSS .................................................................................... 16

7.3.

PROJECTED CASH FLOW ............................................................................................... 19

7.4.

PROJECTED BALANCE SHEET ....................................................................................... 20

7.5.

BUSINESS RATIOS .......................................................................................................... 21

APPENDIX ......................................................................................................................................... 22

Page | 2

1. EXECUTIVE SUMMARY

Southern Tropics is a new medium-sized special events garden venue in the South, the target
business location is in Sta. Rosa, Laguna. Southern Tropics can handle corporate events,
wedding and parties for 50 to 200 guests. The venue offers a tropical, relax and blossoming
garden ambiance right in the heart of Sta. Rosa Laguna. Southern Tropics offer a unique and
memorable experience, with its indoor and outdoor garden venues.
Services
Southern Tropics offers indoor and outdoor garden venues for all occasions such as
weddings, debut, prom, birthdays, corporate events, reunion and parties. Southern Tropics
can accommodate a maximum of 200 persons. Customers can choose an indoor and outdoor
garden venue.
Customers
Southern Tropics targets both consumer and business market in Sta. Rosa, Cavite, Binan, San
Pedro and Alabang. Private market segment are customer who is living in the South, belongs
to social class A, B and C, loves nature and relaxing ambiance and has a special event to
celebrate. On the other hand, business market segment are the companies, firm and
organization located in various business hubs in the South. This group occasionally has
company meetings, parties and special events for their employees and for their customers.
Management
Southern Tropics will be directed by one of its owner Jenice Joy Sumaway - Operations
Manager, she will handle business operations, finance, marketing and sales. Her partner
Jelome Jell Sumaway - Administrative Manager, will manage personnel, administrative and
aesthetic maintenance.

Page | 3

1.1. OBJECTIVES

Achieve at least 100 events in the first year of operations

Reach Gross Sales of Php 5M in the first year of operation (2012)

Earn at least 5% profit in second year of operation and achieve 5% sales growth
from prior year

1.2. VISION

To be known as the number one preferred nature-inspired garden event venue in the
South.
1.3. MISSION

Southern Tropics will create relax, intimate and tropical ambiance in every events and
will convey wonderful and unforgettable memories for every customers through splendid
events venue and excellent service.
1.4. VALUES

Integrity
We do the right thing and we keep our promise.
Excellence
We will deliver excellent venue and service to our customers.
Passion
We love what we do and we will give our best in every job.
Balance Life
We will work hard and live life to the full.
1.5. KEYS TO SUCCESS

Southern Tropics business keys to success are the following:

Page | 4

Offers a venue that creates a relaxing and inviting atmosphere to client and
guests

State-of-the-art lighting and audio-visual facilities

Manage and exceed client expectations

Excellent Customer Service

Professional and well-trained event coordinators and staff

2. COMPANY SUMMARY

Southern Tropics is a garden themed events venue located in the prime area of Sta. Rosa,
Laguna. The garden is a 500 square meter area. Target market will be the private and
business clients in Sta. Rosa and surrounding the towns. We are offering both indoor and
outdoor garden-themed venue rental. Southern Tropics can accommodate 50 to 200
guests. The enchanting garden setting provides a relaxing and inviting environment to
host any special events. Including in every venue rental is the free use of our state-of-the
art lighting and audio-visual system, wi-fi and warm-friendly assistance of our
professional in-house coordinators and staff. Southern Tropics will partner with various
suppliers in the South.
2.1. COMPANY OWNERSHIP

Southern Tropicss events venue will start out as business partnership owned by Jenice
Joy Sumaway and Jelome Jell Sumaway.
2.2.

START-UP SUMMARY

Southern Tropics location in Sta. Rosa is a land surrounded by plants and trees. This will
be rented at Php 30,000 monthly. 1.5 million pesos will be spent to convert the area into
a beautiful garden, acquire ready-to-build tents, install audio-visual facilities, lights and
builds small office. We plan to come up with 0.9 million pesos as a capital and loan one
million pesos.

Page | 5

Table: Start-up

Start-up
Requirements
Start-up Expenses
Legal
Others
Total Start-up Expenses
Start-up Assets Needed
Cash balance on Starting Date
Other Current Assets
Total Current Assets

8,000.00
7,000.00
15,000.00

247,000.00
158,000.00
405,000.00

Long-Term Assets
Total Assets

1,500,000.00
1,905,000.00

Total Requirements

1,920,000.00

Funding
Investment
Jenice Joy Sumaway
Jelome Jell Sumaway
Total Investment
Current Liabilities
Accounts Payable
Current Liabilities

500,000.00
400,000.00
900,000.00

10,000.00
10,000.00

Long-term Liabilities
Total Liabilities

1,000,000.00
1,010,000.00

Loss at Start-up
Total Capital
Total Capital and Capabilities

(367,983.00)
132,017.00
1,920,000.00

Page | 6

Chart: Start-up

1,600,000.00
1,400,000.00
1,200,000.00
1,000,000.00
800,000.00
600,000.00

400,000.00
200,000.00
Expenses

Current
Assets

Lon-Term
Assets

Investments

Loans

3. SERVICES

Southern Tropics main service offering are three event venue rentals. Southern Tropics boast
its audio-visual facilities, in-house event coordinators and trusted suppliers for worry free
events.
o

The Southern Tropics Patio

This patio is an outdoor lavish garden surrounded

by a gazebo, tropical plants and colorful flowers.
The patio can accommodate 200 guests. Southern
Tropics Patio is perfect for glorious garden
weddings and reception.

Page | 7

The Garden-Themed Tent

This Indoor garden themed venue has been possible

with a clear span tent. This venue can cater 100 to
150 guests. The tent is well-ventilated, airconditioned and complete with lights and surround
sound set-up. This indoor garden is surrounded by
flourishing plants, and ferns.

The Customize-Themed Tent

This are can cater 50 to 75 guests. The tent is wellventilated, air-conditioned and complete with lights
and surround sound set-up. The tent is decorated
with white layers of cloth. Designs and decorations
can freely customize by customers depending on
his/her chosen party theme. This venue is good for
themed parties.

o State-of-the-Art Lighting and Audio-Visual Facilities

Southern Tropics boast the latest technology in lights and sounds. We have technical staff to
assist our clients.
o In-house Event Coordinator
We have in-house event coordinators to assist customers before and during the event. This is
to ensure that customers will have worry-free event.
o Through our partner suppliers, Southern Tropics also offers the following:

Event food caterer

Photographer and Videographer

Event Planner
Page | 8

Cakes

Musicians (Singers/Band)

4. MARKET ANALYSIS SUMMARY

The events venue rental industry provides private, corporate, government and non-profit a
social venue for all types of events. Events are generally held by clients in order to celebrate,
communicate, or both.

Celebration: Parties and banquets as part of key events in life (birthdays, weddings,
engagements, bridal and baby showers, retirement parties, reunion, etc.) or for a
business (holiday or end-of-year parties, retirements, galas, etc.)

Communication: Events to communicate a message for the benefit of attendees or the

press (product launches, press events, trade shows, conferences, presentations,
lectures, fundraisers) or to stimulate discussion (corporate meetings, summits, etc.)

4.1. MARKET SEGMENTATION

There are three market segments in events venue rental industry:

The private market includes households with a combined household income of over
Php 500,000 per year. This group requires added attention, as lavish events may be
uncommon for them. Most events from private market are special life occasions
such as weddings, birthdays, debut, reunion and other intimate parties.

The corporate market is defined as businesses which hold at least one off-site event
each year. Businesses often have A/V and public relations needs in concert with
their events which may serve a marketing function for the business. Most events
from corporate market are meetings, conference, parties for employees, product
launches, school prom and parties, etc.

The government and non-profit market is defined as government and non-profit

organizations which hold at least one off-site event each year. Very price conscious,
the non-profit market looks for in-kind donations and discounted services whenever
possible. Most events from government and non-profit market are project launches
and employee parties.
Page | 9

4.2.

SWOT ANALYSIS

STRENGTHS

WEAKNESSES

We offer a unique garden-themed venue for

every occasion

Cost of start-up investment is high

We offer a venue that can be customize by

Return of Investment is projected on the

customers according to his needs

We are new events place in the South

We have in-house professional events

second year of operations

Lack of parking space

coordinator to assist our customers

We are offering a State-of-the-Art AudioVisual System

We have a well-trained and customeroriented employees

We value the safety and security of our

clients

Our venue is accessible to target market

OPPORTUNITIES

Only few competitors offering the same

THREATS

services

Opportunity to gain customers due to

increasing number of household and

Established competitors surrounding

the area

Near in Tagaytay a well-known

destination events venue

firms in the area

Customers are always looking for

something new to celebrate special
occasions

Page | 10

5. STRATEGY AND IMPLEMENTATION SUMMARY

Southern Tropics will acquire a 500 square meter lot and convert it into a tropical and serene
garden. There will be three areas to cater various events, the main venue is an outdoor garden
and another two will be an indoor garden-themed and customize-themed tents. All event
venues will be fully-equipped with the latest lighting and audio-visuals technology.
5.1. COMPETITIVE EDGE

Southern Tropics will create a competitive edge in the Sta. Rosa, by offering a unique
garden-themed venue for outdoor and indoor events. Clients dont have to worry on light and
audio-visual facilities because this is part of our service. We will also have professional
events coordinator and staff to assist our clients before and during the events. We also offer
our clients other event needs through our accredited suppliers.
5.2.

MARKETING STRATEGY

5.2.1. MARKETING OBJECTIVES

1) Establish a customer base of 80 new customers by December 2012.

2) Conduct intensive promotion by June 2012.
3) Ensure 100% customer satisfaction in every event.
5.2.2. MARKETING MIX

Product
Southern Tropics is offering the market three events venue: The Southern Tropics Patio,
The Garden-Themed Tent and the The Customize-Themed Tent.
Price
Venue rental cost range from Php 30,000 to Php 50,000. Price may vary depending on the
venue selected and the number of hours.
Southern Tropics will also charge accredited suppliers a standard rate of Php 5,000 for
food catering vendors and Php 1,500 for other vendors who will participate in the event.
Page | 11

Promotion
Southern Tropics will promote its business by joining wedding and events expo, through
company website, social media promotion and through sales visit to its corporate market.
Customer Service
Southern Tropics will ensure high-level of customer satisfaction before, during and after
the event.
5.3.

SALES STRATEGY

Initially, the sales strategy of Southern Tropics will be spearheaded by a Marketing and Sales
Officer. He will handle both the private and business clients, but he will focus on business
clients. He will also do business client call and presentation. A Sales Executive will be
reporting to him. Sales Executive will manage private clients. He will also handle on-line,
phone and e-mail and walk-in inquiries from customers.
5.3.1. SALES FORECAST

On the first quarter (Jan-Mar), Southern Tropics is forecasting to have a sales of at least 5
events. Sales Forecast increases every quarter from 5 to 14 events monthly by the end of
the year.

2012 Monthly Sales Forecast

800,000

600,000
400,000

200,000
0
Jan Feb Mar Apr May Jun
Venue Rental

Jul Aug Sep Oct Nov Dec

Fees from accredited suppliers

Fees from non-accredited suppliers

Page | 12

Southern Tropics is forecasting increasing growth percentage every year from 5%, and
7% on 2013 and 2014 respectively. Growth is coming from intensive marketing programs
during 2012 and increasing brand awareness. On the other hand, Southern Tropics is
forecasting 10% and 12% in 2015 and 2016 respectively. Higher growth percentage is
based on brand awareness and customer trust.

5 Year Sales Forecast

8,000,000
6,000,000
4,000,000
2,000,000

0
2012

2013

Venue Rental

2014

2015

2016

Fees from accredited suppliers

Fees from non-accredited suppliers

Page | 13

5.4.

MILESTONES

The milestones listed are the key steps before and after the launch in 2012. Events venue and
construction and venue opening will be headed by Jenice and Jelome of Administrative and
Operations Department. Various marketing programs and campaign will be implemented
from January to June. The main objective of this campaign is to promote the opening of
Southern Tropics, engage with potential customers and suppliers and make sales.
Table: Milestones
Milestone
Events venue construction
Open Venue
Create The Southern Tropics Website
Design and Print Brochure
Introductory Rates
Wedding Expo
Summer Business Fair
Email Campaign
A Taste of Corporate Night

Start Date
11/1/2012
1/5/2012
12/1/2012
12/26/2012
1/5/2012
3/15/2012
4/1/2012
1/5/2012
6/17/2012

End Date
Budget
Department
1/3/2012 1,000,000.00 Administrative and Operations
1/5/2012
100,000.00 Administrative and Operations
12/31/2012
50,000.00 Marketing
1/5/2012
50,000.00 Marketing
2/28/2012
100,000.00 Marketing
3/18/2012
50,000.00 Marketing
4/3/2012
50,000.00 Marketing
2/5/2012
Marketing
6/17/2012
100,000.00 Marketing

6. MANAGEMENT SUMMARY

Southern Tropics will be directed by one of its owner Jenice Joy Sumaway - Operations
Manager, she will handle business operations, finance, marketing and sales. Her partner
Jelome Jell Sumaway - Administrative Manager, will manage personnel, administrative and
aesthetic maintenance.

6.1. PERSONNEL PLAN

The personnel table below shows full-time personnel only. Overall, there will be 7 full-time
employees in year 2012-2013 and additional 2 headcounts by year 2014-2016. Headcounts
may vary depending on business growth.
A full-time Marketing and Sales Officer and Sales Executive will be hired in year one, and
will be reporting to Operations Manager. A full-time Over-all events Manager and
Page | 14

Administrative Assistant will be managed by Administrative Manager. Additional headcount

for Sales Executive and Over-all events manager will be considered in year 2014.
Other staff such as technical operators and security during the event will be paid by the hour.

Director,
Operations

Administrative
Manager

Events Manager

Marketing and
Sales Officer

Maintenance &
Housekeeping
Head

Personnel

2012

Administrative
Assistant

2013

2014

Marketing and
Sales Executive

2015

2016

Opera ti ons Ma na ger

325,000.00

341,250.00

358,312.50

376,228.13

395,039.53

Admi ni s tra ti ve Ma na ger

325,000.00

341,250.00

358,312.50

376,228.13

395,039.53

Ma rketi ng a nd Sa l es Offi cer

234,000.00

245,700.00

257,985.00

270,884.25

284,428.46

Sa l es Excuti ve

143,000.00

150,150.00

157,657.50

165,540.38

173,817.39

Admi ni s tra ti ve As s i s ta nt

96,000.00

100,800.00

105,840.00

111,132.00

116,688.60

Over-a l l Events Ma na ger

234,000.00

245,700.00

515,970.00

1,083,537.00

2,275,427.70

Ma i ntena nce a nd Hous ekeepi ng Hea d

104,000.00

109,200.00

114,660.00

120,393.00

126,412.65

10

10

10

1,461,000.00

1,534,050.00

1,868,737.50

2,503,942.88

3,766,853.87

Tota l Peopl e
Total Payroll

Page | 15

7. FINANCIAL PLAN
7.1. BREAK-EVEN ANALYSIS

Since Southerns Tropics is offering a venue rental, the assumption for the fixed costs is
high at average of Php 258,167 per month, while variable cost is estimated at 10% of the
fixed cost. To break-even, Southern Tropics must have at least 9 events at Php 40,000
per event. Revenue will possibly increase because of earnings coming from fees from
accredited and non-accredited hired by the customers during the event.
Chart: Break-Even Analysis
1400000
1200000
1000000

Fixed Cost
800000

Variable Cost

600000

Total Cost

400000

Revenue

200000
0

Assumptions: Break-Even Analysis

Total Fixed Costs:
Total Variable Unit Costs:
Expected Unit Sales:
Price per Unit:
Break Even Units:

293,678.00
6,495.00
11
40,000.00
9

7.2. PROJECTED PROFIT AND LOSS

Venue Rental is Southern Tropics revenue stream 87% of sales is coming from this. As
the number of events increase revenue also increases. In addition, Southern Tropics will
Page | 16

also gain revenue from fees from both accredited and non-accredited suppliers for every
event this contributes to 13% of sales. Direct Cost of Sales (these are expenses related to
events such as electricity, additional staff and usage of facilities) is only 14% of revenue.
Gross Profit is at 86%, but a higher fixed cost at 60% is associated with the business.
Major expenses are those related to payroll this covers 30% including salary, housing,
Social Security Service, Medicare and payroll taxes. Marketing expense is higher at first
year and second year at projected budget 10% of sales to accommodate service
promotion, while 5% is allocated for rental expense.
Chart: Projected Yearly Profit and Loss

Southern Tropics
5 Year Projected Profit and Loss
1,400,000
1,200,000
1,000,000
800,000

PnL

600,000
400,000
200,000
0
-200,000

2012

2013

2014

2015

2016

A projected loss during the first months of operation, this is because of low sales forecast
during this month. This is a new business, so were expecting low sales during the first
quarter. But on April, Southern Tropics is forecasting a 10% net profit.

Page | 17

Chart: Projected Monthly Profit and Loss

Southern Tropics
Projected Monthly Profit and Loss
400,000
200,000
0
-200,000
-400,000

Jan Feb Mar

Apr May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Page | 18

7.3. PROJECTED CASH FLOW

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations

2012

4,011,200.00
1,002,800.00
5,014,000.00

Additional Cash Received

Sales Tax, VAT 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
Expenditures

2013

4,211,760.00
1,052,940.00
5,264,700.00

2012

2014

4,506,583.20
1,126,645.80
5,633,229.00

2013

2014

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations

1,739,443.85
1,112,412.00
2,851,855.85

1,760,008.20
1,187,415.00
2,947,423.20

2,130,341.05
1,266,789.34
3,397,130.39

Additional Cash Spent

Sales Tax, VAT, 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
Dividends
Subtotal Cash Spent

369,570.00
320,000.00
164,360.00
333,333.33
144,000.00
4,183,119.18

388,048.50
320,000.00
169,290.80
350,000.00
612,000.00
4,786,762.50

449,307.50
320,000.00
174,369.52
374,500.00
909,000.00
5,624,307.41

830,880.82
839,630.97

477,937.50
965,575.62

8,921.60
1,110,411.96

Net Cash Flow

Cash Balance

Page | 19

7.4. PROJECTED BALANCE SHEET

Southern Tropics
Pro Forma Balance Sheet

Assets

2012

2013

2014

Current Assets
Cash and cash equivalents
Accounts Receivable - net
Other Current Assets
Total Current Assets

839,630.97
359,841.85
10,000.00
1,209,472.82

965,576
377,834
10,500
1,353,909.56

1,110,412
396,726
11,025
1,518,162.60

Long-Term Assets
Investment Properties
Accumulated Depreciation
Total noncurrent Assets

1,500,000.00
(200,000.00)
1,300,000.00

1,800,000.00
(400,000.00)
1,400,000.00

2,000,000.00
(600,000.00)
1,400,000.00

Total Assets

2,509,472.82

2,753,909.56

2,918,162.60

2012

2013

2014

Liabilities and Capital

Current Liabilities
Accounts Payable
Accrued Expenses
Current Borrowing
Other Current Liabilities
Total Current Liabilities

110,000.00
56,973.00
18,500.00
185,473.00

143,000
116,710
22,200
281,909.56

185,900
256,623
26,640
469,162.60

Long-Term Liabilities
Long-Term Debt
Total Long-Term Liabilities

1,280,000.00
1,280,000.00

960,000.00
960,000.00

640,000.00
640,000.00

Total Liabilities

1,465,473.00

1,241,909.56

1,109,162.60

Paid-in Capital
Retained Earnings
Earnings
Total Capital

900,000.00
63,000.00
81,000.00
1,044,000.00

900,000.00
135,000.00
477,000.00
1,512,000.00

900,000.00
135,000.00
774,000.00
1,809,000.00

Total Liabilities and Capital

2,509,473.00

2,753,909.56

2,918,162.60

Net Worth

1,044,000.00

1,512,000.00

1,809,000.00

Page | 20

7.5. BUSINESS RATIOS

Ratio Analysis
2012

2013

Industry
Profile

2014

Sales Growth

0.0%

5.0%

7.0%

Percent of Total Assets

Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Long-Term Assets
Total Assets

14%
0%
1%
48%
52%
100%

14%
0%
1%
49%
51%
100%

14%
0%
1%
52%
48%
100%

7%
51%
58%
42%

10%
35%
45%
55%

16%
22%
38%
62%

Percent of Sales
Sales
Gross Margin
Selling, General & Administrative Expenses
Advertising Expenses
Profit Before Interest and Taxes

100%
85%
57%
9%
34%

100%
85%
57%
9%
34%

100%
85%
60%
9%
40%

Main Ratios
Current
Quick
Total Debt to Total Assets
Long-Term Debt to Equity Ratio
Capital Ratio

6.52
6.52
56%
123%
36%

4.80
4.80
41%
63%
33%

3.24
3.24
29%
35%
31%

Current Liabilities
Long-Term Liabilities
Total Liabilities
Net Worth

Business Vitality Profile

Sales per Employee
Survival Rate
Additional Ratios
Net Profit Margin
Operating Ratio
Acitivity Ratios
Accounts Receivable Turnover
Collection Days
Total Asset Turnover
Debt Ratios
Debt to Net Worth
Current Liabilities to Liabilities
Debt to Asset Ratio
Debt to Equity Ratio
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Assets to Sales
Acid Test
Sales/Net Worth

PHP 626,750.00

28%
90%

PHP 658,087.50

PHP 563,322.90

29%
89%

24%
94%

13.93
26
1.91

14.20
26
1.93

1.40
0.13
0.58
1.40

0.82
0.23
0.45
0.82

0.61
0.42
0.38
0.61

1,023,999.82
14.08

1,072,000.00
13.15

1,049,000.00
11.93

0.50
6.52
4.80

0.52
4.80
3.48

0.52
3.24
3.11

13.93
26
2.00

Page | 21

5.5%

APPENDIX
Appendix Table: Monthly Sales Forecast
Southern Tropics
2012 Monthly Sales Forecast

Venue Rental
Fees from accredited suppliers
Fees from non-accredited suppliers
Total Sales

Jan
200,000
20,000
10,000
230,000

Feb
200,000
20,000
10,000
230,000

Mar
200,000
20,000
10,000
230,000

Apr
280,000
28,000
14,000
322,000

May
280,000
28,000
14,000
322,000

Jun
400,000
40,000
20,000
460,000

Jul
400,000
40,000
20,000
460,000

Aug
400,000
40,000
20,000
460,000

Sep
480,000
48,000
24,000
552,000

Oct
480,000
48,000
24,000
552,000

Nov
480,000
48,000
24,000
552,000

Dec
Total
560,000 4,360,000
56,000 436,000
28,000 218,000
644,000 5,014,000

Appendix Table: 5-Year Sales Forecast

Southern Tropics
5-year Sales Forecast
Venue Rental
Fees from accredited suppliers
Fees from non-accredited suppliers
Total Sales

2012
2013
2014
2015
2016
4,360,000 4,578,000 4,898,460 5,388,306 6,034,903
436,000 457,800 489,846 538,831 603,490
218,000 228,900 244,923 269,415 301,745
5,014,000 5,264,700 5,633,229 6,196,552 6,940,138

Appendix Table: 5 Year Personnel Plan

Southern Tropics
5-Year Personnel Plan
Personnel

2012

2013

2014

2015

2016

Opera tions Ma na ger

325,000.00

341,250.00

358,312.50

376,228.13

395,039.53

Admi ni s tra tive Ma na ger

325,000.00

341,250.00

358,312.50

376,228.13

395,039.53

Ma rketing a nd Sa l es Offi cer

234,000.00

245,700.00

257,985.00

270,884.25

284,428.46

Sa l es Excutive

143,000.00

150,150.00

157,657.50

165,540.38

173,817.39

Admi ni s tra tive As s i s tant

96,000.00

100,800.00

105,840.00

111,132.00

116,688.60

Over-a l l Events Ma na ger

234,000.00

245,700.00

515,970.00

1,083,537.00

2,275,427.70

Ma i ntena nce a nd Hous ekeepi ng Hea d

104,000.00

109,200.00

114,660.00

120,393.00

126,412.65

10

10

10

1,461,000.00

1,534,050.00

1,868,737.50

2,503,942.88

3,766,853.87

Total Peopl e
Total Payroll

Appendix Table: 2012 Monthly Personnel Plan

Page | 22

Southern Tropics
2012 Monthly Personnel Plan
Jan

Feb

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

Opera ti ons Ma na ger

Personnel

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

50,000

325,000

Admi ni s tra ti ve Ma na ger

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

25,000

50,000

325,000

Ma rketi ng a nd Sa l es Offi cer

18,000

18,000

18,000

18,000

18,000

18,000

18,000

18,000

18,000

18,000

18,000

36,000

234,000

Sa l es Excuti ve

11,000

11,000

11,000

11,000

11,000

11,000

11,000

11,000

11,000

11,000

11,000

22,000

143,000

Admi ni s tra ti ve As s i s ta nt

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

16,000

104,000

Over-a l l Events Ma na ger

18,000

18,000

18,000

18,000

18,000

18,000

18,000

18,000

18,000

18,000

18,000

36,000

234,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

8,000

16,000

104,000

113,000

113,000

113,000

113,000

113,000

113,000

113,000

113,000

113,000

113,000

113,000

226,000

1,469,000

Ma i ntena nce a nd Hous ekeepi ng Hea d

Tota l Peopl e
Total Payroll

Mar

Apr

May

Appendix Table: 2012 Twelve-month Profit and Loss Projection

Page | 23

Ju
n-1
2

Ju
l-1
2

Au
g-1
2

Se
p-1
2

Oc
t-1
2

No
v-1
2

De
c-1

YE
A

RL
Y

Ma

200,000

280,000

280,000

400,000

400,000

400,000

480,000

480,000

480,000

560,000

4,360,000

20,000

20,000

20,000

28,000

28,000

40,000

40,000

40,000

48,000

48,000

48,000

56,000

436,000

10,000

10,000

10,000

14,000

14,000

20,000

20,000

20,000

24,000

24,000

24,000

28,000

218,000

230,000

230,000

230,000

322,000

322,000

460,000

460,000

460,000

552,000

552,000

552,000

644,000

5,014,000

Event Cost

20,000

20,000

20,000

28,000

28,000

40,000

40,000

40,000

48,000

48,000

48,000

56,000

436,000

Facilities

27,778

27,778

27,778

27,778

27,778

27,778

27,778

27,778

27,778

27,778

27,778

27,778

333,333

Total Cost of Sales

47,778

47,778

47,778

55,778

55,778

67,778

67,778

67,778

75,778

75,778

75,778

83,778

769,333

182,222

182,222

182,222

266,222

266,222

392,222

392,222

392,222

476,222

476,222

476,222

560,222

4,244,667

79%

79%

79%

83%

83%

85%

85%

85%

86%

86%

86%

87%

84%

Ap
r-1
2

200,000

r-1
2
Ma

200,000

I ND

Fe
b-1
2

y-1
2

Jan-12

Ja
n -1
2

.%

Twelve-month profit and loss projection

Revenue (Sales)
Venue Rental
Fees from accredited
suppliers
Fees from nonaccredited suppliers

Total Revenue (Sales)

Cost of Sales

Gross Profit
Gross Profit %
Expenses
Salary expenses

224,769

112,385

112,385

112,385

112,385

112,385

112,385

112,385

112,385

112,385

112,385

112,385

1,461,000

Payroll expenses

0.1

22,477

16,858

16,858

16,858

16,858

16,858

16,858

16,858

16,858

16,858

16,858

16,950

208,004

Payroll taxes

0.2

33,715

16,858

16,858

16,858

16,858

16,858

16,858

16,858

16,858

16,858

16,858

16,858

219,150

50,000

50,000

50,000

50,000

2,800

4,000

4,000

4,000

4,800

4,800

4,800

5,600

234,800

Supplies (office and

operating)
Facility cleaning and
maintenance
Advertising/Marketing

6,000

6,000

6,000

8,400

8,400

12,000

12,000

12,000

14,400

14,400

14,400

16,800

130,800

20,000

20,000

20,000

28,000

28,000

40,000

40,000

40,000

48,000

48,000

48,000

64,000

444,000

Car, delivery and travel

2,000

2,000

2,000

2,800

2,800

4,000

4,000

4,000

4,800

4,800

4,800

5,600

43,600

Accounting and legal

2,300

2,300

2,300

3,220

3,220

4,600

4,600

4,600

5,520

5,520

5,520

6,440

50,140

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

30,000

360,000

Rent
Telephone

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

1,000

12,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

120,000

Insurance

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

5,000

60,000

Taxes (real estate, etc.)

6,900

6,900

6,900

9,660

9,660

13,800

13,800

13,800

16,560

16,560

16,560

19,320

150,420

Interest

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

10,000

120,000

Depreciation

16,667

16,667

16,667

16,667

16,667

16,667

16,667

16,667

16,667

16,667

16,667

16,667

200,000

440,828

305,967

305,967

320,847

273,647

297,167

297,167

297,167

312,847

312,847

312,847

336,619

3,813,914

-258,606

-123,744

-123,744

-54,624

-7,424

95,056

95,056

95,056

163,376

163,376

163,376

223,603

430,753

-112%

-54%

-54%

-17%

-2%

21%

21%

21%

30%

30%

30%

35%

9%

Utilities

Total Expenses
Net Profit
Net Profit %

Page | 24

Appendix Table: 3-Year Profit and Loss Projection

20
12

20
13

20
14

3-Year profit and loss projection

4,360,000

4,578,000

4,898,460

436,000

457,800

489,846

218,000

228,900

244,923

5,014,000

5,264,700

5,633,229

Event Cost

436,000

457,800

489,846

Facilities

333,333

350,000

374,500

Total Cost of Sales

769,333

807,800

864,346

4,244,667

4,456,900

4,768,883

85%

85%

85%

Salary expenses

1,461,000

1,534,050

1,868,738

Payroll expenses

208,004

153,405

186,874

Payroll taxes

219,150

230,108

280,311

234,800

241,844

249,099

130,800

157,941

168,997

Revenue (Sales)
Venue Rental
Fees from accredited
suppliers
Fees from nonaccredited suppliers

Total Revenue (Sales)

Cost of Sales

Gross Profit
Gross Profit %
Expenses

Supplies (office and

operating)
Facility cleaning and
maintenance
Advertising/Marketing

444,000

479,520

517,882

Car, delivery and travel

43,600

52,647

56,332

Accounting and legal

50,140

78,971

84,498

360,000

378,000

396,900

Rent
Telephone
Utilities
Insurance

12,000

12,000

12,000

120,000

105,294

112,665

60,000

63,000

67,410

Taxes (real estate, etc.)

150,420

157,941

168,997

Interest

120,000

120,000

120,000

Depreciation

200,000

200,000

200,000

Total Expenses

3,813,914

3,964,720

4,490,702

Net Profit

1,200,086

1,299,980

1,142,527

24%

25%

20%

Net Profit %

Page | 25

Page | 26

Appendix Table: Projected Cash Flow

Southern Tropics
Projected Cash Flow

Cash Received
Cash from Operations
Cash Sales
Cash from Receivables
Subtotal Cash from Operations

2012

4,011,200.00
1,002,800.00
5,014,000.00

Additional Cash Received

Sales Tax, VAT 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
Expenditures

2013

4,211,760.00
1,052,940.00
5,264,700.00

2012

2014

4,506,583.20
1,126,645.80
5,633,229.00

2013

2014

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations

1,739,443.85
1,112,412.00
2,851,855.85

1,760,008.20
1,187,415.00
2,947,423.20

2,130,341.05
1,266,789.34
3,397,130.39

Additional Cash Spent

Sales Tax, VAT, 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
Dividends
Subtotal Cash Spent

369,570.00
320,000.00
164,360.00
333,333.33
144,000.00
4,183,119.18

388,048.50
320,000.00
169,290.80
350,000.00
612,000.00
4,786,762.50

449,307.50
320,000.00
174,369.52
374,500.00
909,000.00
5,624,307.41

830,880.82
839,630.97

477,937.50
965,575.62

8,921.60
1,110,411.96

Net Cash Flow

Cash Balance

Page | 27

Appendix Table: Projected Balance Sheet

Southern Tropics
Pro Forma Balance Sheet

Assets

2012

2013

2014

Current Assets
Cash and cash equivalents
Accounts Receivable - net
Other Current Assets
Total Current Assets

839,630.97
359,841.85
10,000.00
1,209,472.82

965,576
377,834
10,500
1,353,909.56

1,110,412
396,726
11,025
1,518,162.60

Long-Term Assets
Investment Properties
Accumulated Depreciation
Total noncurrent Assets

1,500,000.00
(200,000.00)
1,300,000.00

1,800,000.00
(400,000.00)
1,400,000.00

2,000,000.00
(600,000.00)
1,400,000.00

Total Assets

2,509,472.82

2,753,909.56

2,918,162.60

2012

2013

2014

Liabilities and Capital

Current Liabilities
Accounts Payable
Accrued Expenses
Current Borrowing
Other Current Liabilities
Total Current Liabilities

110,000.00
56,973.00
18,500.00
185,473.00

143,000
116,710
22,200
281,909.56

185,900
256,623
26,640
469,162.60

Long-Term Liabilities
Long-Term Debt
Total Long-Term Liabilities

1,280,000.00
1,280,000.00

960,000.00
960,000.00

640,000.00
640,000.00

Total Liabilities

1,465,473.00

1,241,909.56

1,109,162.60

Paid-in Capital
Retained Earnings
Earnings
Total Capital

900,000.00
63,000.00
81,000.00
1,044,000.00

900,000.00
135,000.00
477,000.00
1,512,000.00

900,000.00
135,000.00
774,000.00
1,809,000.00

Total Liabilities and Capital

2,509,473.00

2,753,909.56

2,918,162.60

Net Worth

1,044,000.00

1,512,000.00

1,809,000.00

Page | 28

Page | 29