Executive Summary

The Company
Double Decker Tours of Washington, LLC (DDTOW), located in the city of Washington, DC is a new sightseeing company in its
formative stages. It is being organized to take advantage of a specific gap in the local sightseeing tour market. The gap exists in high
quality, reasonably priced sightseeing tours in the nation's capital away from the city center, indicating that a new entrant tour company
could be expected to capture a significant portion of the current sightseeing tour market.
The Company's Mission
Double Decker Tours of Washington's mission is to provide safe, reliable and fun sightseeing tours to the visitors of Washington, DC
using London-style double-decker buses. Nine of the buses will be open top for sunny warm and beautiful days and three will be
closed for cold and inclement weather.
Product and Services
DDTOW will provide daily sightseeing tours and charter services in Washington, DC. We will survey the White House, Capitol Building,
Supreme Court, Senate Office Buildings, House Office Buildings, Museums, Library of Congress, etc., as well as Adams Morgan, the U
Street Corridor, Catholic University and many other sites that make up the city.
Marketing and Sales Strategy
DDTOW will develop a message that touring with us is fun and we will project that message over the airwaves and in print. We will kick
off our message using Comcast Cable System in the Washington area as well as hosting parties for certain tour association decision
makers and the media. We plan a pre-opening marketing budget of 80,000. As we profit, we will spend about 1% of gross revenues
on advertisement and marketing. We will also distribute survey cards to assess what we are doing right and identify what we are doing
wrong.
The Competition
Our main competitors in the Washington sightseeing market are:
1. Tourmobile: Tourmobile is based at East Potomac Park and is authorized by the National Park Service to conduct sightseeing tours
along the National Mall and in Arlington National Cemetary. Tourmobile uses a shuttle service employing 85-passenger trams
along the Mall and 120-passenger trams in Arlington. They have been in business for over 25 years. Tourmobile was started in
1969 as a subsidiary of Universal Studios to provide interpretive services along the National Mall. In 1981 Tom Mack bought the
company making Tourmobile, Inc. a locally owned Washington DC company. Tourmobile has over 42 vehicles and serves upwards
of 2 million riders annually.
2. Historic Tours of America: HTA operates in Washington as the Old Town Trolley and DC Ducks. HTA is a national company with
outlets across the country. HTA, like Tourmobile, uses a shuttle system for its passengers and they use 35- to 60-passenger
trolleys.
3. Grayline: Grayline International is a global company with offices and tours around the world. Grayline contracts out its services to
local bus lines and runs multiple tours. Grayline runs the Lil Red Trolley as its service in Washington.
4. Zohery Tours: Zohery Tours is a local company that runs 15-passenger vans and 45-passenger coach buses. Zohery tours are
about 3 hours in length.
Target Market
In recent Washington Convention and Tourism Corporation figures, it showed that 17.6 million people came to visit Washington, DC,
spending over 10 billion dollars; 4 billion of that on sightseeing and tourism related activities. Although overnight leisure travel
increased significantly while day-trip volume was down, the good news was that average trip expenditures increased to levels of 480
per day per trip. Many of the trips that were made to the city centered around visiting historical places and museums (36%) and
shopping (24%). In leisure travel, 36% of visitors were solo travelers as compared to 80% of business travelers and 23% of leisure
travelers came with children as compared to 6% of business travelers. Also many of our visitors to the city have income of over
75K, were married, had no children, were in the 35-54 age group, and had an advanced degree. Visits from foreign tourists fell three
years ago by 19% and by 14% two years ago, but over 1 million foreign tourists came to Washington, making it 8th in US destinations
by foreign visitors.
Management
Michael Frank Coleman* will serve as member manager. He has extensive experience in the Washington sightseeing industry, working
for Tourmobile and conducting walking tours around town. Mr. Coleman has a knack for recognizing opportunities and developing staff
members to take advantage of those situations. Mr. Coleman will assemble a staff of experienced tour professionals to oversee
operations and market our services.
Paul F. Williams* has over 30 years of entrepreneurial experience in international and private sector business development and will act
as DDTOW's business development manager.
*Confidential and proprietary resume data has been omitted from this sample plan.
Operations
Tickets sales and boarding of the buses will take place at the MCI Center at 601 F Street in Northwest Washington. This site gives us
great foot traffic in the heart of the entertainment district as well as ample parking and public transportation access. The buses will be
stored and serviced by Peter Pan Bus Service in Tuxedo, Maryland thereby reducing staff cost and insuring top notch services for our
customers. A small office located on Third Street in Northeast Washington will serve as administrative offices.
Financial
Our research and projections indicate that the demand for sightseeing tours in and around Washington is sufficient to provide Double
Decker Tours of Washington, LLC with revenues of over 14 million dollars in its first full year of operations, utilizing 15 used London-
style double-decker tour buses and selected routes throughout the city. These sales figures are based on capturing 453,000 customers
out of a potential customer base of 22 million people. Second year revenues are expected to exceed 17 million serving over 500,000
customers with additional advertising and expanded tours. The DDTOW plan has the potential for a more rapid growth due in part to
new memorial and other venues that are opening in Washington in the near future. In short, the demands for tours in DDTOW's target
market during the coming year will be more than enough to support DDTOW's anticipated market share. These sales levels will
produce net profits of 13 million dollars in the first operational year and 15 million in year two. Net profits in year one will be over
60% of sales and will maintain that level in year two. The company's long term plan is part of the due diligence package. The first few
months of formative operation will burn cash (see the Start-up table later in this document) until revenue can commence. This is due to
the organizational and regulatory obligations of a new tour operator but aggressive marketing and promotion will readily make up for the
slow start.
Long-Term Development & Exit Plan
Goals
Our tours, along with the use of double-decker buses, that target new routes in the city, and aggressive media exposure will allow us to
grow over the next five years into a major player in the region. Our goal is to create a reputation of quality, fun and safety that will make
us the leader in the Washington area sightseeing/tour market.
Milestones
After our service starts, we will keep a close eye on sales and profit. If we are on target at the end of year two, we will look to expand
into a new market.
Risk Evaluation
With any new venture, there is risk involved. The success of our project hinges on the strength of acceptance of our new tours and
buses. After year one, we expect a lot of competition in the form of the established tour operators banding together against us.
Exit Plan
Ideally, DDTOW would like to expand into the Baltimore, Richmond, Atlanta and Miami markets over the next ten years. At that time,
we will entertain the possibility of a buy-out by a larger Sightseeing/Tour operator or seek to sell to a new owner.
Funds Sought and Utilization
DDTOW is seeking financing of 800,000, in the form of a five-year loan. Most of the planned start-up costs are apportioned to the
following areas in approximately declining value:
1. Purchasing twelve 70-passenger London-style double-decker sightseeing buses, nine of which are open top for beautiful days and
nights and three closed top for cold or inclement weather.
2. Provisions of a sufficient cash reserve to assure timely payment of operating costs of the buses for the first three months.
3. Costs associated with recruiting, training, and paying operational crews.
4. Marketing, advertising, and public relations costs, including the cost of setting up a website capable of offering tour information
and making online sales and reservations, and related Internet marketing, as well as conventional print and broadcast advertising,
and public relations activities.
5. Administrative and legal costs incurred in setting up the business and the tour operations.
6. A reserve to cover overall operating costs, aside from bus operating costs, over at least the first three months of operations.
The following chart illustrates the highlights of our business plan over the first three years.


1.1 Objectives
Double Decker Tours of Washington will have as it primary objectives the following elements:
To establish and operate a new tour company aiming specifically at touring the monuments, memorials, museums, and
government buildings of the capital city as well as touring the historic neighborhoods away from the city center.
To implement an organizational and marketing strategy that will, beginning in the first months of operation, achieve an average
load per bus of 65-85 percent depending on season and increasing thereafter to 75-100 percent, thereby maximizing revenues
and return on investment while reducing risk.
To achieve revenues of about 14 million by our first full year of tour operations, exceeding 20 million by our third year. Also to
expand into newer markets in the Baltimore-Washington corridor.
To achieve net operating profits of 60-70 percent within the first 12 months of tour operations and steady growth enabling rational
expansion of the company thereafter.
To achieve the following results starting with twelve 70-passenger London-style doubledecker buses obtained through purchase
to serve the touring public in Washington and incrementally expanding the fleet as demand grows.
To gear operations, and present a professional, serious, growth-oriented image from the outset, that will set the stage for a
reasoned, planned expansion, mirroring growth rates projected for the first years of operations.
As an element critical to achieving DDTOW's other key objectives, to identify and develop strategic alliances through the DC
Chamber of Commerce, the Greater Washington Board of Trade, the Washington Convention and Tourism Corporation and other
Washington associations and tourism groups.
1.2 Keys to Success
In descending order of importance, the five critical keys to success for Double Decker Tours of Washington are:
Employing an experienced, highly professional management team that combines vision; realism; financial ability; solid knowledge
of the Washington tour/sightseeing market; familiarity with, and belief in, the utilization and benefits of the latest computer
informational technologies; realization of the crucial importance of an organization personnel to its success; and a total
commitment to the overall mission and goals of Double Decker Tours of Washington.
Intelligent, progressive, and aggressive marketing that identifies the company as a different kind of player, one that is sharper and
smarter, with a higher level of professionalism and operational standard than is the norm in the Washington region. Concentration
on safety, with highly trained, dedicated, and professional personnel, caring for the customer and the customer's needs and
straightforward, understandable fare pricing will form key pillars of the marketing strategy.
Identification, through careful market research, of unserved or under-served routes in the city that may be of interest to our
customers and enable high load factors and profitable operations.
Use of a fleet of London-style doubledecker buses that offer an unobstructed view of the city from the top deck and offers a high
level of comfort, safety, and fuel and operational efficiency.
Use of information technology to reduce staffing and other operational cost; expand the potential market base; readily capture
sales opportunities; and enhance customer convenience and satisfaction.
1.3 Mission
Double Decker Tours of Washington, LLC has a mission to provide safe, professional, reasonably priced sightseeing services to our
customers. We intend to fill a niche in the Washington sightseeing market that is unmet at this time, to sites in the city that are not
currently shown, as well as highlight the sites that are known to millions of visitors. We will operate and maintain the best fleet of buses
available and we will never skimp on safety or customer service. We will always have and promote fun tours so that when the customer
leaves us, they will remember the good time they had and recommend us to a friend or relative. We will provide friendly and courteous
service from the time we meet to the time they leave.
With a combination of clean buses, friendly and informative and helpful driver guides along with outstanding customer service,
DDTOW intends to lead the other companies and make our standards their ambition.
Double Decker Tours of Washington is a new company that will provide daily sightseeing tours in Washington DC. Its sales and
boarding point will be located at the MCI Center in Northwest Washington, and administrative offices on Third Street in Northeast
Washington. The operation will focus on:
Providing regular sightseeing tours of the nation's capital to include monuments, memorials and other sites of interest.
Provide charter service for special groups.
Provide tours of other historical and interesting venues away from the city center.
2.1 Company Ownership
Double Decker Tours of Washington will be created as a closely held private District of Columbia Limited Liability Company based in
Washington, DC. It will be owned by its founder and principle investors.
2.2 Company Locations and Facilities
Double Decker Tours of Washington will use the facilities of the MCI Center for its boarding and return point in the city. The MCI Center
affords DDTOW a safe secure place with plenty of parking and public transportation access. We have agreed to use the ticketing
outlets available at MCI to reduce our staffing cost, also it will give us a worldwide ticketing presence by using Ticketmaster. The other
facility that we plan to use will be the Peter Pan bus maintenance yard in Tuxedo, Maryland, as this will also reduce staffing and present
us with a fixed cost on maintenance that has been covered in our operating budget. A small office on Third Street in Northeast
Washington will be used for administrative and order processing purposes.
2.2.1 Hours of Operation
DDTOW will be open seven days a week. Tour service will begin at 8:30 am during the spring and summer months and 9:00 am during
the winter. Our evening tour service will begin at 6:30 pm during the winter months and 7:30 pm during spring and summer. We will be
closed on Thanksgiving and Christmas.
2.3 Start-up Summary
Most of the planned start-up costs are apportioned to the following areas:
1. Purchasing twelve 70-passenger London-style double-decker sightseeing buses, nine of which are open top for beautiful days and
nights and three closed top for cold or inclement weather. We budgeted 225,000 for the buses, and it will cost us an additional
100,000 for the paint job.
2. In addition to the twelve buses, our other long-term assets will include the audio-visual system that will be installed on the buses, for
which we budget 80,450.
3. Provisions of a sufficient cash reserve to assure timely payment of operating cost of the buses for the first three months.
4. Costs associated with recruiting, training and paying operational crews.
5. Marketing, advertising, and public relations costs, including the cost of setting up a website capable of offering tour information
and making online sales and reservations, and related Internet marketing, as well as conventional print and broadcast advertising,
and public relations activities.
6. Administrative and legal costs incurred in setting up the business and the tour operations.
7. A reserve to cover overall operating costs, aside from bus operating costs, over at least the first three months of operations.
Start-up capital will be financed through investment and long-term loans. Start-up details are located in the table listed below.



Start-up
Requirements

Start-up Expenses

Legal 10,000
Stationery etc. 2,500
Professional Services 11,500
Brochures 5,000
Pre-opening Promotion & Advertisement 80,000
Rent (pre-opening) 25,000
Salaries (pre-opening) 75,000
Bookkeeping & financial setup 6,000
Computers & Web page setup & Photo processing 35,000
Phones 3,500
License/Fees 10,000
Uniforms 40,000
Paint Job for Buses 100,000
Membership Fee for Board of Trade 1,000
Membership Fee for Chamber of Commerce 350
Membership in Washington Convention & Tourism
Corporation
700
Business travel 15,000
Total Start-up Expenses 420,550
Start-up Assets

Cash Required 114,000
Other Current Assets 0
Long-term Assets 305,450
Total Assets 419,450
Total Requirements 840,000

Start-up Funding
Start-up Expenses to Fund 420,550
Start-up Assets to Fund 419,450
Total Funding Required 840,000
Assets

Non-cash Assets from Start-up 305,450
Cash Requirements from Start-up 114,000
Additional Cash Raised 0
Cash Balance on Starting Date 114,000
Total Assets 419,450
Liabilities and Capital

Liabilities

Current Borrowing 0
Long-term Liabilities 800,000
Accounts Payable (Outstanding
Bills)
0
Other Current Liabilities
(interest-free)
0
Total Liabilities 800,000
Capital

Planned Investment

Michael Coleman 25,000
Frank Williams 15,000
Other 0
Additional Investment
Requirement
0
Total Planned Investment 40,000
Loss at Start-up (Start-up
Expenses)
(420,550)
Total Capital (380,550)
Total Capital and Liabilities 419,450
Total Funding 840,000


Services
Double Decker Tours of Washington will provide double-decker bus sightseeing tours throughout Washington and close-in memorials.
We will survey the national monuments, White House, US Capitol, and the many government buildings along the way during a 2-1/2 to
3 hour tour. DDTOW will run 12 converted London-style double-decker buses, giving our tour customers an unobstructed photo
opportunity of the many beautiful sites in Washington.
To make us different from the rest of the companies that operate here, we will aggressively advertise our services and stress and strive
for the best service, tours and customer service in the industry. To accomplish this, we will present surveys to our customers after
every tour and we will evaluate our services at our weekly meetings to expand what we are doing right and correct what we are doing
wrong. Each night, our buses will be cleaned and serviced to prevent breakdowns and each day, before tours begin, we will inspect
ourselves to make sure that we are presentable to our customers. To expand our services to the widest amount of people, in the
future, we will install a multilingual audiovisual system aboard each bus that will explain the tour in Spanish, French, Japanese and
German, as our driver guide narrates in English.
3.1 Service Description
Double Decker Tours will be a full service tour and sightseeing company which will also provide charters for special occasions.
DDTOW's knowledge of the nation's capital, it's rich history, and it's local entertainment and cultural areas will ensure we provide our
customers with a well narrated tour. Our competitive rates and our focus on customer satisfaction will position DDTOW as a tour
company that will be able to weather the economic climate that is facing Washington today and help garner repeat business.
Our tours will consist of surveying the White House, Capitol, Senate Office Buildings, House Office Buildings, Library of Congress,
Supreme Court, Botanical Garden, National Gallery of Art, Smithsonian Museums, Washington Monument, Holocaust Museum, Hains
Point, Jefferson Memorial, Roosevelt Memorial, Lincoln Memorial, Kennedy Center, Georgetown, Iwo Jima Memorial, Embassy Row,
National Cathedral, Ford's Theatre, FBI Headquarters, Union Station, Japanese-American Memorial and many other sites throughout
the city.
3.2 Competitive Comparison
The Washington DC tourism and convention market before September 11, 2001 was robust and hosted more than 18 million visitors
annually. Since that time, the industry has seen a reduction in the number of visitors because many of the sites that were open now
have been closed or access restricted. Although this may present a deterrent to many people, Washington has many visitors that still
come for business and pleasure, so that while depressed, the market is growing and will climb back to previous levels in the future. In
the Washington metro area, over 4 million people make this their home so Double Decker Tours will have many customers to choose
from. DDTOW will tailor its tours to take advantage of areas that are still open.
3.3 Sales Literature
Brochures to feature our tours and services will be produced locally and distributed to hotels, information service kiosks and the
Washington Visitor Center. Direct mail, advertisements and sales promotion literature will be utilized as needed.
3.4 Special Interest Tours
Double Decker Tours of Washington will concentrate on the local sightseeing and tour services, but we will also develop special interest
tours for Black History Month, Veteran's Day, Cherry Blossom Festival and others to showcase the diverse cultural aspect of the city.
We will employ multilingual narrators to cater to our foreign visitors.
In the future, DDTOW will add buses to our fleet so that we may offer a shuttle service narrative tour in the same way that Tourmobile
does today. We intend to expand into the Annapolis and Baltimore markets.
Market Analysis Summary
The travel and tour industry is the third largest retail business in the United States, which generated over 100 billion dol lars in
revenue. The Washington area tour industry generated over 10 billion dollars, including 4 billion in sightseeing and tour related
activities, according the latest figures from the Washington Convention and Tourism Corporation. An estimated 18 million people come
to Washington each year on top of the over 4 million that live in the Metro area and the more than 2 million people that enter the city
every day for work or pleasure. With the completion of the new Washington Convention Center, WCTC estimates that an additional 3
million people will be attracted to the city thereby bringing additional customers. Researching the future conventions and meetings
booked by the Convention Center, preliminary estimates for the coming years show that 415,850 people will be attending meetings or
conventions spending approximately 182 million dollars in 2003 and 497,800 people spending 274 million in 2004.
In recent 2002 WCTC figures, overnight leisure travel increased significantly, while day-trip volume was down, but the good thing was
that average trip expenditures increased to 2000 levels of 480 per day per trip. Many of trips that were made to the city centered
around visiting historical places and museums (36%) and shopping (24%). In leisure travel, 36% of visitors were solo travelers as
compared to 80% of business travelers and 23% of leisure travelers came with children as compared to 6% of business travelers. Also
many of our visitors to the city have income of over 75 thousand, were married, had no children and were in the 35-54 age group.
Our potential customers are people who want a unique tour experience at a reasonable price. These will include people who come to
the city for the day, leisure travelers, honeymooners, budget-conscious travelers, business travelers, families, students and seniors.
4.1 Market Segmentation
1. Sightseeing, R&R, Honeymoon, Special Interest: Our most important customers will be the people who visit Washington for
sightseeing, rest and relaxation, on their honeymoon or are here for a convention or other special interest. We will develop special
pricing to encourage honeymooners to spend some time with us and we will highlight their recent marriage during the tour.
Because we support our service people, we will offer discounts to active duty and retired military personnel during Memorial
Day and Veteran's Day holidays.
2. High-income: For these travelers price is not an option, so by pricing ourselves in the middle of the market, we will be able to attract
these customers.
3. Budget conscious travelers, families, students and seniors: This group of travelers will find our prices competitive and the tour
unsurpassed by the existing tour companies.
Overall, we split our potential market into the DC visitors and Washington area residents. The table below summarizes our market
analysis projections.



Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential
Customers
Growth

CAGR
Visitors 10% 18,000,000 19,000,000 20,000,000 21,000,000 22,000,000 5.14%
Washington
Area Residents
10% 4,000,000 4,100,000 4,150,000 4,200,000 4,250,000 1.53%
Total 4.51% 22,000,000 23,100,000 24,150,000 25,200,000 26,250,000 4.51%
4.2 Target Market Segment Strategy
Double Decker Tours is located in Washington, DC, our nation's capital. The monuments, memorials, theatres, museums and other
points of interest make this one of the most visitor intense cities in the country. Each year over 18 million visitors come here and with
the opening of the new convention center, an additional 3-4 million are expected. Also in the next year, many new sites will be opened
such as the World War II Memorial Museum, City Museum, US Capitol Visitor Center, Martin Luther King Memorial and American
Indian Museum bringing many new visitors and potential customers to the city.
All who come for a day trip or who are here for business or pleasure and stay overnight will be in our target market. We will develop our
marketing message to attract these customers and our company policy and aim will be to develop repeat business through word-of-
mouth advertising and paid advertisement in the local media. Our proposed location at the MCI Center will also help in attracting
customers since it will be in the heart of the entertainment district with plenty of parking and access to Metro.
4.2.1 Market Opportunities
In addition to 4 million residents, the Washington area also welcomes around 18 million visitors annually. As indicated above, both of
these groups represent DDTOW's potential customers. Market research shows that our potential customers spend over 45 weeks per
year in a work setting and when they come to Washington, they have between 3 to 7 days to experience our fair city. Many take
sightseeing tours to get an informative layout of the monuments and other points of interest. This allows them to familiarize themselves
with the historic monuments of the nation's capital in a relaxing and informative way.
4.3 Service Business Analysis
The US travel and tourism industry is the third largest retail industry generating revenues of over 100 billion dollars a year. The
industry is separated into two main categories, business and leisure travel. Each constitutes about 45% to total revenues. The
remainder of revenues are generated from combined business/leisure travel. The market is further divided into domestic and
international travel. Domestic travel accounts for more than 70% of generated revenues. Business travel can be divided into two
categories, the medium and large corporate account and the small independent businessman. Leisure travel is classified according to
the types of trips they take, age, and income.
The four primary leisure travel groups are:
Adventure, Special interest, R&R, Honeymoon and Sightseeing
High-income Travelers
Budget-conscious Travelers
Families, Students and Seniors
4.3.1 Competition and Buying Patterns
There are many companies in Washington providing sightseeing, tours and charter services. Most of them have one or two things in
common, they use coach buses (45 passengers), Trolleys (35-40 passengers) or Tram (85-120 passengers) and the two largest,
Tourmobile and Old Town Trolley, use a shuttle system where they stop at certain points in the city so the passenger can get off and
explore the site. Double Decker Tours may do this in the future, but our focus at this time will be to provide clean buses and
informative tours from a single pick-up and drop-off point. During the warm spring, summer, and fall nights we will conduct a three-
hour tour where we will make three stops so that our customers can explore the Jefferson, Lincoln, and Roosevelt memorials.
4.3.2 Main Competitors
Our main competitors in the Washington sightseeing industry are:
1. Tourmobile: Tourmobile is based at East Potomac Park and is authorized by the National Park Service to conduct sightseeing
tours along the National Mall and in Arlington National Cemetary. Tourmobile uses a shuttle service employing 85-passenger trams
along the Mall and 120-passenger trams in Arlington. They have been in business for over 25 years. Tourmobile was started in
1969 as a subsidiary of Universal Studios to provide interpretive services along the National Mall. In 1981 Tom Mack bought the
company making Tourmobile, Inc. a locally-owned, Washington, DC company. Tourmobile has over 42 vehicles and serves
upwards of 2 million riders annually.
2. Historic Tours of America: HTA operates in Washington as the Old Town Trolley and DC Ducks. HTA is a national company with
outlets across the country. HTA, like Tourmobile, uses a shuttle system for its passengers and they use 35- to 60-passenger
trolleys.
3. Grayline: Grayline International is a global company with offices and tours around the world. Grayline contracts out its services to
local bus lines and runs multiple tours. Grayline runs the Lil Red Trolley as its service in Washington.
4. Zohery Tours: Zohery Tours is a local company that runs 15-passenger vans and 45-passenger coach buses. Zohery tours are
about 3 hours in length.

Strategy and Implementation Summary
DDTOW will focus it's efforts, initially, on tours in and around the city of Washington. Being the nation's capital, its rich history attracts
visitors from across the country and around the world. Estimates from the Washington Convention and Tourism Corporation concludes
that over 18 million visitors come to the city spending over 10 billion dollars. Most of the money is spent on lodging and food but a
considerable portion is spent for touring and sightseeing. By tapping into 2% of the potential market or 453,000 customers, Double
Decker Tours is posed to make over 14 million dollars in sales during it's first full year of operations. We intend to advertise heavily in
the region to attract customers and hold unique events to help boost sales.
Another method we will utilize to capture sales will be a Welcome Aboard photograph. How this works is that as our customers are
boarding the bus for a tour, we will take a photograph of them and when they return, we will have a digital photo board with their picture
on it. If they would like their photo, we will print it and frame it with one of our DDTOW frames, and we will let them e-mail their photo to
anyone in the world from our e-mail server.
5.1 Competitive Edge
DDTOW's competitive edge is recognizing a niche market that is unfulfilled at the moment. That market consists of introducing to the
Washington sightseeing public the other city away from the monuments and memorials of the Federal City. Groups such as
CulturalTourismDC, HeritageDC, DowntownDC and the mayor's office are spending millions of dollars to entice visitors to the scenic
and entertainment sections of Washington. DDTOW can take advantage of this promotion by introducing a fleet of London-style
double-decker buses and specialized tours in the areas that are being highlighted. Tourmobile, because of their charter with the
National Park Service, cannot operate off the National Mall and Old Town Trolley, being a national service, has established their routes
and at this time are not interested in exploring areas that may not be profitable to them. We, on the other hand, with aggressive
marketing and promotion in conjunction with the above groups can capitalize on that new and emerging market as well as provide
regular tour around the monument and memorial that most tourist want to see.
5.2 Marketing Strategy
Double Decker Tours adheres to the theory that the goal of business is to create and keep customers happy. Our marketing strategy
will reflect this goal as we build our reputation in the Washington sightseeing/tour market. Many of DDTOW's potential customers
spend over 55 weeks per year in a work setting and when they come to Washington, they have between 3 to 7 days to experience our
fair city. Many take sightseeing tours to get an informative layout of the monuments and other points of interest.
DDTOW will promote the capital city of monuments, memorial and historical sites plus we will provide them with a view of the other
city. Our tours will take them to the neighborhoods that they might have seen in the movies, our entertainment districts, and other
prominent sites that will pique their interest. At the end of the tour, our goal is have each and every customer leave the bus with an ear-
to-ear grin. That way when the customer goes home, they will tell their friends about our service and the beauty of Washington. We
will also follow up our tours with survey forms so that we can get feedback from our customers so that we may improve.
5.2.1 Pricing Scheme
Much of Double Decker Tours' pricing is determined by our competition. The price of sightseeing in Washington ranges from 15 to
40. By setting our price at the level of 30, we will appeal to the budget conscious traveler as well as those that price is not an option.
With a potential market of over 22 million people per year, we are basing our first year figures on servicing 453,000 or 2% of the
potential visitors.
5.2.2 Promotion Scheme
The overall concept and design of Double Decker Tours of Washington sets the stage for its promotion. Marketing and promotion will
stress the unique buses, the fun you can have with us and quality of tours that will set it apart from the rest. Strong public relations
combined with well-placed, well-designed, distinctive advertising appealing directly to people who are our prospective customers will
help get the word out.
5.2.3 Marketing Scheme
Customers will be reached through traditional marketing communication methods. Research suggests that our target market
customers, and travelers in general, are Internet savvy, so before traveling to Washington, many will access the Web for sightseeing
information and may make reservations or purchases via that medium. Besides, the Internet will serve as an effective means of
communication and distribution of information about our services. DDTOW will target our customers initially at our kiosks and bus stops
as we board our passengers, giving them brochures and other literature that they may share with their family and friends, but we will
also look at cable television, radio and other inexpensive media to get our message out.
5.2.3.1 Marketing Effort
The marketing effort will employ a mix of vehicles to convey our message and presence.
Print media -- local newspapers, free weeklies
Broadcast media -- local programming and special interest shows
Hotel guides -- concierge relations, Chamber of Commerce, Board of Trade, Washington Convention and Tourism Corporation
brochures
Misc. -- Yellow Pages, charity events
The marketing effort will be split into three phases using the media vehicle described above:
1) Opening -- An advanced notice (press packet) sent out to all media and printed announcement ads in key places, rack brochures,
direct mail/giveaways. Budget - 80,000
2) Ongoing -- A flexible campaign (using above media), assessed regularly for effectiveness. Budget - 12,000 per month in the first
year
3) Point of sale -- A well trained staff can enhance the customer's overall experience. Word-of-mouth referral is very important in
building a customer base.
5.2.4 Futuristic Plans and Strategic Opportunities
DDTOW, upon successful operation of two years, will begin to develop strategies and plans geared towards opening new offices and
sightseeing services in Baltimore, Annapolis, Miami and eventually Atlanta, expanding as the need and resources allow.
5.3 Sales Strategy
Double Decker Tours will aggressively sell the benefits of touring with us by implementing the following action items:
In our first months of operations we will:
Begin a major advertisement campaign to let the Washington area sightseeing public know that there is a new tour in town.
We will host a party for the concierges of all the major hotels in Washington and present them with an incentives offer for referrals
to DDTOW.
We will join the DC Chamber of Commerce, Washington Convention and Tourism Corporation and Washington Board of Trade
and cohost a meet and greet party for the local business, media and government officials and invite decision makers from the
area.
We will buy inexpensive media time throughout the year on local radio, in the print media, on television and cable
television outlets to promote our tours and the fun that you can have traveling with Double Decker Tours.
In the future we will:
During the school year we will offer discount tours to area schools and during the summer we will offer discount tours to area
colleges and universities for their incoming freshmen and their families.
Develop special tours such as 'Lovers Only' tours at Valentine Day.
Host Fraternity and Sorority night tours.
Develop 'Movie Scene' tours.
Host Family Reunion special tours.
Develop Veterans tour specials.
Host a once a year Stone Cold Family Picnic tour.
Add to our product line a picture-taking ability so that before customers go on one of our tours, we will take pictures of the group
and have a framed portrait waiting for their return, as well as the ability to send the picture via e-mail to anywhere in the world.
Our commitment is to maximize the pleasure of our customers so that their time with us will be one of the most memorable parts of their
trip to Washington. As we grow and profit, Double Decker Tours intends to spend from 5% to 10% of gross revenues on advertising
thereby raising DDTOW's image in the regional tour and sightseeing market.
5.3.1 Sales Forecast
The sales forecast is based on DDTOW capturing a 2% share of the over 18 million visitors that visit Washington along with the
approximately 4 million people that live in the metro area. That means that DDTOW would have to service 453,000 customers during
the 2004-2005 year, 543,600 during the 2005-2006 year and 652,300 during the 2006-2007 year. These figures are based on running
an average of 24 tours per day divided between 12 buses during the summer and 8 to 18 tour per day during the winter months.
During the summer months in Washington, with the amount of advertising and aggressive marketing that we plan to do, DDTOW will
be able to meet the goals that we have set for ourselves.
Another service that DDTOW will offer our customers will be a digital photograph of their group. As the groups prepare to board our
buses, we will take photographs of them. After they finish the tour and return to the MCI Center, we will have a framed photo of them
already mounted along with a digital copy that they can e-mail through our Internet station to anyone in the world. We will charge only
10 dollars for this and we forecast only about 1 in 15 will take advantage of this option. This is an option that none of our competitors
are using at the moment.
The table below summarizes our sales forecast. We have chosen to treat only fuel and photo processing and Internet connections as
our direct costs of sales, while some of our other projected expenses related to the service delivery, such as drivers' salaries, are
reflected in our Profit & Loss projections later in this document.





Sales Forecast

Year 1 Year 2 Year 3
Sales

Sightseeing 14,368,000 17,241,600 20,689,920
Photographs 322,366 354,603 390,063
Charters 75,500 83,050 91,355
Total Sales 14,765,866 17,679,253 21,171,338
Direct Cost of Sales Year 1 Year 2 Year 3
Photo processing & Internet
connection
46,631 48,962 51,410
Fuel 96,000 115,000 140,000
Subtotal Direct Cost of Sales 142,631 163,962 191,410
5.4 Milestones
Double Decker Tours of Washington's important milestones are detailed in the following table. DDTOW believes that it is important for
a company to set goals because this helps determine the company's strategy and tactics, and maintain company focus. The
milestones are seen as progress points and will be used to measure DDTOW's success in reaching it's goals.
What the table doesn't show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis,
and we will hold monthly follow-up meetings to discuss the variance and course corrections.



Milestones
Milestone Start Date End Date Budget Manager Department
Business Plan 1/1/2003 4/1/2003 5,000 Coleman Admin
Get Financing 4/16/2003 4/15/2004 15,000
Coleman-
Williams
Admin
Hire Staff 4/16/2004 4/30/2004 5,000 Coleman Admin
Grand Opening 6/1/2004 6/1/2004 80,000 Coleman Admin
World Wide Web
Presence
4/1/2004 4/15/2004 3,000 Coleman Admin
Break-even 12/1/2004 12/1/2004 0 Coleman Admin
Develop Special
Tours
11/1/2003 4/1/2004 8,000 Staff Operations
Order Buses 4/1/2004 4/30/2004 225,000 Coleman Operations
Training 4/15/2004 5/30/2004 20,000 Coleman Operations
Set-up Offices 11/16/2003 5/30/2004 10,000 Coleman Admin
Totals

371,000


Web Plan Summary
DDTOW will establish a presence on the World Wide Web, linking it to the Washington Visitor Center Web site, to promote our tours,
accept electronic mail to answer queries and take reservations.

Management Summary
Mike Coleman and Paul Williams will serve as member managers, however, DDTOW is a small company and its administrative staff will
share in management duties and decision making. This will make it important for each member of the team to be capable in all aspects
of the business. Prerequisites for all administrative employees will be cash handling, personnel management, computer skills and
sightseeing/tour experience.
We will train our staff to become competent in these areas and we will embark on a continuous training program for all employees. Our
operations staff will consist of experienced driver/guides, many of whom have already worked in the local market and we will contract
out to certain narrators for special projects. DDTOW will contract the maintenance of the buses to Peter Pan in Tuxedo, Maryland,
which services Old Town Trolley and Grayline's Lil Red Trolley, so that the fleet will be well maintained at all times.
7.1 Personnel Plan
DDTOW will begin operating with 22 full time positions. The positions are as follows:
o Member Manager - Michael F. Coleman
o Member Business Development - Paul F. Williams
o Marketing / Sales Associates (4)
o Courtesy Captains (4)
o Driver/guides (12)
Member Manager and owner, Michael F. Coleman, age 50, has knowledge of the local sightseeing and touring industry in the
Washington area. Mike has gained his sightseeing and tour experience from working for Tourmobile and conducting walking tours in
the city over the past two year. From that experience, he has gain an unique perspective of what it would take to start and run a
successful tour and sightseeing company. Mike has also been involved in scheduling, guiding and many administrative functions
needed for running a business.
Before starting Double Decker Tours of Washington, LLC, Mike sold health care products under the Equinox label until the company
went out of business in November 1999. From that experience, Mike learned how to motivate a sales force, help design new sales
strategies and develop creative ways to market the products.
Before that, Mike was a software and database consultant to different companies throughout the Washington area working for such
firms as Computer Sciences Corporation, Computer and Applied Sciences, Inc., General Services, Inc., the General Services
Administration and PATA USA. In this capacity, Mike was responsible for scheduling, customer service, writing numerous reports and
billing of services.
Mike also worked as a member of the board for the H Street Northeast Merchants and Professional Association. Working on the board
with numerous business people gave Mike an insight into the day-to-day operations of small businesses and gave him a chance to
meet other business people through the associations membership in the Greater Washington Board of Trade. Mike, as a member of
the board, also worked on the H Street Festival Committee in 1999, which re-introduced the H Street Festival back to Washington after
a long hiatus.
Mike also wrote and independently published a book called the Fitness Diary, which allowed fitness enthusiasts to document their
workouts. The Fitness Diary was well received by bodybuilders and those that just wanted to look good.
Member Business Development, Paul F. Williams, has over 30 years of entrepreneurial experience in computer and information
technology, export promotion, international business development, private sector development, technology transfer and management
and technical assistance domestically and in Africa. Mr. Williams is founder and president of THE INFORMATION PROCESSING
COMPANY, INC. (TIPCO, INC.), an international trade and business development firm. His company consults with governmental and
private sector organizations, businesses and individuals on issues involving domestic and international trade and busi ness
development.
Mr. Williams was the counselor and instructor in International Business Development/Export-Import; past Counselor/Director of Cities In
Schools Youth Entrepreneurial Empowerment Project; creator and coordinator of the Volunteer Consultant Corp at Howard University
Small Business Development Center; Chairperson, International Trade Committee of the Black Presidents' Roundtable Association
(BPRA); Chairperson, International Trade Committee of the D.C. Chamber of Commerce and many other accomplishments. Mr.
Williams will develop strategies for increasing business for DDTOW.
Marketing/Sales Associates: The individuals selected for these positions will have extensive experience in the local tourism and
sightseeing industry. They will have a proven track record in generating sales. Their responsibilities in this position will be to develop
marketing and sales materials and campaigns as well as supervising sales personnel as we grow.
Courtesy Captains: The individuals selected for these positions will have customer service experience as they will be our face to the
public. They will hand out literature about the company and our tours, help customers board the buses and answer questions or
complaint that come up. The Captains will also take photographs of our customers as they board the buses for later sales.
Driver/Guides: The individuals selected will be required to have a Commercial Drivers License and Tour Guide License. Drivers will
have local knowledge of the city and they will be responsible for the safety of the buses and passengers and will present informative,
humorous tours to our customers.

Personnel Plan

Year 1 Year 2 Year 3
Member Manager 72,000 84,000 96,000
Member Business
Development
50,000 60,000 72,000
Driver/Guides 432,000 450,000 500,000
Marketing/Sales Associates 100,000 125,000 156,000
Courtesy Captains 96,000 120,000 172,000
Total People 22 24 29
Total Payroll 750,000 839,000 996,000
7.2 Compensation and Incentive Plan
Compensation and incentives for employees and managers of Double Decker Tours of Washington, LLC is as follows:
Position Salary Bonus
Member-Manager 72,000 10% of profit after taxes
Member-Business Development 50,000 5% of profit after taxes
Marketing/Sales Associate 25,000 5% of gross monthly sales
Courtesy Captain 20,000 Tips and Monthly Customer Service Awards
Driver/Guide 30,000 Tips and Monthly Customer Service Awards

Courtesy Captains and Driver/Guides will receive overtime pay (currently estimated at 20%) in addition to their regular salary. Also all
employees will be covered under a health, dental, and vision plan after three months of employment. Plans for a profit sharing or
401(k) plan will be available for employees.
At Double Decker Tours of Washington, we believe in an incentive based entrepreneurial approach to management. To have the
employee want to work and make money, we will institute programs that will benefit the employee as well as the company. For
example, when we sell photographs of our passengers, the Courtesy Captains will make a commission on the photos sold during their
shift. How this will benefit them is that a receipt will be processed with the CC name on it so that when a purchase has been
transacted, that CC is credited with the sale, thus the commission. At this point, we will assess what commission will be paid. For the
drivers, we will allow them to compete for tips as well as overtime pay. But we will also keep tabs on their attendance and appearance.
At the end of the month, those drivers that have the best attendance record and appearance will be allowed to compete for the monthly
bonus.
7.3 Advisory Committee
Mr. Coleman is in the process of assembling a group of established businessman as his board of advisors so that he may learn from
them the lessons they have learned before encountering them himself.

7.4 Professional Support
1. Stitcher, Mosley & Company, PA of Lanham-Seabrook Maryland has been tapped to be our accountants.
2. DH Lloyd and Associates have been contacted about our insurance needs.

Financial Plan
Double Decker Tours of Washington's financial plan is detailed in the following sections. Preliminary estimates suggest a substantial
profit after our first two quarters of operations. Income estimates are based on garnering 2% of the tourist/sightseeing business in
Washington with a growth rate of 20% for the next three years and a growth of 10% after that.
All our financial projections present a conservative but realistic depiction of DDTOW's financial position based on loans and financing of
800,000.
8.1 Important Assumptions
DDTOW, LLC assumes the following:
Market growth projections for sightseeing will be down because of war fears that permeate the city but with over 4 million
residents in the area and over 20 million visitors per year, DDTOW, LLC will be able to experience a 20% growth rate over the
next three years.
Local economic conditions will remain viable and favorable to the tourism industry for the next five years.
International conditions will change from a war footing to peace thus increasing tourism to the city.

General Assumptions

Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 5.00% 5.00% 5.00%
Long-term Interest
Rate
10.00% 10.00% 10.00%
Tax Rate 24.00% 24.00% 24.00%
Other 0 0 0
8.2 Break-even Analysis
The break-even analysis is based on an average monthly fixed cost of approximately 121,200. By placing our ticket price between
Tourmobile's price and Old town Trolley's, we needed only4,000 riders per month to break even. On a thirty-day basis that comes to
about 134 riders per day or 12 riders per bus per day. During the fall, spring and summer months, we will more than surpass that
number of riders.



Break-even Analysis
Monthly Revenue Break-even 111,821
Assumptions:

Average Percent Variable Cost 1%
Estimated Monthly Fixed Cost 110,741
8.3 Projected Profit and Loss
Our projected profit and loss is shown on the following table, with sales increasing from more than 14 million the first year to more than
21 million the third, and profits varying substantially for the start-up phase of this business. We show a profit in the first year on 2% of
22 million visitors to the city or 453,000 customers which equals 1,286 customers per day or making two tours per day for 12 buses.
As with the break-even analysis, we are projecting very conservatively regarding cost of sales and gross margin. Our cost of sales
should be much lower, and gross margin higher, than in this projection. We prefer to project conservatively so that we make sure we
have enough cash.
The detailed monthly projections are included in the appendices.









Pro Forma Profit and Loss

Year 1 Year 2 Year 3
Sales 14,765,866 17,679,253 21,171,338
Direct Cost of Sales 142,631 163,962 191,410
Other Cost of Sales 0 0 0
Total Cost of Sales 142,631 163,962 191,410
Gross Margin 14,623,235 17,515,291 20,979,928
Gross Margin % 99.03% 99.07% 99.10%
Expenses

Payroll 750,000 839,000 996,000
Sales and Marketing and Other
Expenses
144,000 180,000 220,000
Depreciation 61,090 81,090 101,090
Rent 84,000 92,400 101,640
Utilities 9,600 11,520 13,824
Insurance 18,000 21,600 25,920
Payroll Taxes 0 0 0
Local Taxes 24,000 28,800 34,560
Bus Maintenance 120,000 144,000 172,800
Bookkeeping/Payroll 18,000 21,600 25,920
Professional Asst. 6,000 7,200 8,640
Telephones and Nextels 7,200 8,640 10,368
Office Supplies 3,000 3,600 4,320
Brochures 4,200 5,040 6,048
Licenses/Permits 1,800 2,160 2,592
Website Maintenance 18,000 18,000 18,000
Miscellaneous 48,000 57,600 69,120
Uniforms 12,000 28,800 34,560
Total Operating Expenses 1,328,890 1,551,050 1,845,402
Profit Before Interest and Taxes 12,565,035 15,903,677 19,088,979
EBITDA 12,626,125 15,984,767 19,190,069
Interest Expense 73,075 59,848 44,757
Taxes Incurred 2,998,070 3,802,519 4,570,613
Other Income

Interest Income 0 0 0
Other Income Account Name 0 0 0
Total Other Income 0 0 0
Other Expense

Interest Expense 74,157 60,564 45,547
Profit tax 737,335 927,140 1,107,878
Total Other Expense 729,310 60,564 45,547
Net Other Income (729,310) (60,564) (45,547)
Net Profit 9,493,889 12,041,310 14,473,609
Net Profit/Sales 64.30% 68.11% 68.36%
8.4 Projected Cash Flow
Cash flow projections are critical to our success. Our analysis shows strong cash generation over the projected period. Some of our
assumptions for the cash flow table below are as follows:
We start repaying on the 800,000 five-year long-term loan at the very beginning of our operations. The first few months will be
critical to our survival as we need to make sure that our cash balance remains strong.
We do not plan any additional long-term asset purchases, except for those summarized in the start-up table earlier in this
document, for the first year. During the second and third year we budget 100,000 for each year for additional long-term asset,
which may include some additional or replacement buses.
We assume collecting the District of Columbia's sales tax (5.75%) off the ticket sales. These sales taxes will be paid out quarterly.
For all additional purchases (i.e., operational expenses and capital assets) we assume prices inclusive of applicable sales taxes.
The monthly cash is shown in the illustration below, with one bar representing the cash flow per month, and the other the monthly cash
balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the
appendices.



Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received

Cash from Operations

Cash Sales 14,765,866 17,679,253 21,171,338
Subtotal Cash from Operations 14,765,866 17,679,253 21,171,338
Additional Cash Received

Non Operating (Other) Income 0 0 0
Sales Tax, VAT, HST/GST Received 0 0 0
New Current Borrowing 0 0 0
New Other Liabilities (interest-free) 0 0 0
New Long-term Liabilities 0 0 0
Sales of Other Current Assets 0 0 0
Sales of Long-term Assets 0 0 0
New Investment Received 0 0 0
Subtotal Cash Received 14,765,866 17,679,253 21,171,338
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations

Cash Spending 750,000 839,000 996,000
Bill Payments 3,359,554 4,646,520 5,481,300
Subtotal Spent on Operations 4,109,554 5,485,520 6,477,300
Additional Cash Spent

Non Operating (Other) Expense 729,310 60,564 45,547
Sales Tax, VAT, HST/GST Paid Out 0 0 0
Principal Repayment of Current
Borrowing
0 0 0
Other Liabilities Principal
Repayment
0 0 0
Long-term Liabilities Principal
Repayment
129,814 143,408 158,425
Purchase Other Current Assets 0 0 0
Purchase Long-term Assets 0 100,000 100,000
Dividends 0 0 0
Subtotal Cash Spent 4,968,679 5,789,492 6,781,272
Net Cash Flow 9,797,187 11,889,761 14,390,066
Cash Balance 9,911,187 21,800,947 36,191,013
8.5 Projected Balance Sheet
The balance sheet in the following table shows managed but sufficient growth of net worth, and a sufficiently healthy financi al position.
The monthly estimates are included in the appendices.

Pro Forma Balance Sheet

Year 1 Year 2 Year 3
Assets

Current Assets

Cash 9,911,187 21,800,947 36,191,013
Other Current Assets 0 0 0
Total Current Assets 9,911,187 21,800,947 36,191,013
Long-term Assets

Long-term Assets 305,450 405,450 505,450
Accumulated Depreciation 61,090 142,180 243,270
Total Long-term Assets 244,360 263,270 262,180
Total Assets 10,155,547 22,064,217 36,453,193
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities

Accounts Payable 372,022 382,791 456,583
Current Borrowing 0 0 0
Other Current Liabilities 0 0 0
Subtotal Current Liabilities 372,022 382,791 456,583
Long-term Liabilities 670,186 526,778 368,353
Total Liabilities 1,042,207 909,568 824,935
Paid-in Capital 40,000 40,000 40,000
Retained Earnings (420,550) 9,073,339 21,114,648
Earnings 9,493,889 12,041,310 14,473,609
Total Capital 9,113,339 21,154,648 35,628,257
Total Liabilities and Capital 10,155,546 22,064,217 36,453,193
Net Worth 9,113,339 21,154,649 35,628,258
8.6 Business Ratios
We expect to maintain healthy ratios for profitability, risk, and return. The following table outlines some of the more important ratios from
the Sightseeing tour company industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified
by the Standard Industry Classification (SIC) code, 4725.9902.

Ratio Analysis

Year 1 Year 2 Year 3
Industry
Profile
Sales Growth 0.00% 19.73% 19.75% 5.03%
Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 38.77%
Total Current Assets 97.59% 98.81% 99.28% 63.07%
Long-term Assets 2.41% 1.19% 0.72% 36.93%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 3.66% 1.73% 1.25% 31.32%
Long-term Liabilities 6.60% 2.39% 1.01% 17.81%
Total Liabilities 10.26% 4.12% 2.26% 49.13%
Net Worth 89.74% 95.88% 97.74% 50.87%
Percent of Sales

Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 99.03% 99.07% 99.10% 39.36%
Selling, General & Administrative
Expenses
9.89% 9.64% 9.43% 28.53%
Advertising Expenses 0.00% 0.00% 0.00% 1.21%
Profit Before Interest and Taxes 85.10% 89.96% 90.16% 1.07%
Main Ratios

Current 26.64 56.95 79.26 1.51
Quick 26.64 56.95 79.26 1.17
Total Debt to Total Assets 10.26% 4.12% 2.26% 2.79%
Pre-tax Return on Net Worth 137.07% 74.90% 53.45% 55.37%
Pre-tax Return on Assets 123.01% 71.81% 52.24% 6.25%
Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 64.30% 68.11% 68.36% n.a
Return on Equity 104.18% 56.92% 40.62% n.a
Activity Ratios

Accounts Payable Turnover 10.03 12.17 12.17 n.a
Payment Days 27 30 28 n.a
Total Asset Turnover 1.45 0.80 0.58 n.a
Debt Ratios

Debt to Net Worth 0.11 0.04 0.02 n.a
Current Liab. to Liab. 0.36 0.42 0.55 n.a
Liquidity Ratios

Net Working Capital 9,539,165 21,418,156 35,734,430 n.a
Interest Coverage 171.95 265.73 426.51 n.a
Additional Ratios

Assets to Sales 0.69 1.25 1.72 n.a
Current Debt/Total Assets 4% 2% 1% n.a
Acid Test 26.64 56.95 79.26 n.a
Sales/Net Worth 1.62 0.84 0.59 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Appendix

Sales Forecast

Month 1 Month 2 Month 3 Month 4 Month 5
Month
6
Month
7
Month
8
Month
9
Month 10 Month 11 Month 12
Sales

Sightseein
g
0
%
1,512,00
0
1,512,00
0
2,268,00
0
1,512,00
0
1,008,00
0
756,00
0
756,00
0
756,00
0
756,00
0
1,008,00
0
1,008,00
0
1,516,00
0
Photograp
hs
0
%
16,967 33,933 33,933 33,933 33,933 16,967 16,967 16,967 16,967 33,933 33,933 33,933
Charters
0
%
5,000 5,000 7,000 7,000 7,000 4,000 3,500 3,500 5,000 7,500 9,000 12,000
Total Sales

1,533,96
7
1,550,93
3
2,308,93
3
1,552,93
3
1,048,93
3
776,96
7
776,46
7
776,46
7
777,96
7
1,049,43
3
1,050,93
3
1,561,93
3
Direct
Cost of
Sales

Month 1 Month 2 Month 3 Month 4 Month 5
Month
6
Month
7
Month
8
Month
9
Month 10 Month 11 Month 12
Photo
processing
& Internet
connection

3,000 4,500 4,500 4,500 4,150 3,800 3,606 3,574 3,000 3,500 4,000 4,500
Fuel

8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000
Subtotal
Direct
Cost of
Sales

11,000 12,500 12,500 12,500 12,150 11,800 11,606 11,574 11,000 11,500 12,000 12,500

Personnel Plan

Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Member
Manager
6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000
Member
Business
Development

4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167
Driver/Guides

36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000 36,000
Marketing/Sales
Associates
8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333 8,333
Courtesy
Captains
8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000
Total People

22 22 22 22 22 22 22 22 22 22 22 22
Total Payroll

62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500

General Assumptions

Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Plan
Month
1 2 3 4 5 6 7 8 9 10 11 12
Current
Interest
Rate

5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Long-
term
Interest
Rate

10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate

24.00% 24.00% 24.00% 24.00% 24.00% 24.00% 24.00% 24.00% 24.00% 24.00% 24.00% 24.00%
Other

0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Sales

1,533,9
67
1,550,9
33
2,308,9
33
1,552,9
33
1,048,9
33
776,96
7
776,46
7
776,46
7
777,96
7
1,049,4
33
1,050,9
33
1,561,9
33
Direct Cost of
Sales
11,000 12,500 12,500 12,500 12,150 11,800 11,606 11,574 11,000 11,500 12,000 12,500
Other Cost of

0 0 0 0 0 0 0 0 0 0 0 0
Sales
Total Cost of
Sales
11,000 12,500 12,500 12,500 12,150 11,800 11,606 11,574 11,000 11,500 12,000 12,500
Gross Margin

1,522,9
67
1,538,4
33
2,296,4
33
1,540,4
33
1,036,7
83
765,16
7
764,86
1
764,89
3
766,96
7
1,037,9
33
1,038,9
33
1,549,4
33
Gross Margin %

99.28% 99.19% 99.46% 99.20% 98.84% 98.48% 98.51% 98.51% 98.59% 98.90% 98.86% 99.20%
Expenses

Payroll

62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500
Sales and
Marketing and
Other Expenses

12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000
Depreciation

5,091 5,091 5,091 5,091 5,091 5,091 5,091 5,091 5,091 5,091 5,091 5,091
Rent

7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000
Utilities

800 800 800 800 800 800 800 800 800 800 800 800
Insurance

1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
Payroll Taxes
15
%
0 0 0 0 0 0 0 0 0 0 0 0
Local Taxes

2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Bus Maintenance

10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Bookkeeping/Pay
roll
1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
Professional
Asst.
500 500 500 500 500 500 500 500 500 500 500 500
Telephones and
Nextels
600 600 600 600 600 600 600 600 600 600 600 600
Office Supplies

250 250 250 250 250 250 250 250 250 250 250 250
Brochures

350 350 350 350 350 350 350 350 350 350 350 350
Licenses/Permits

150 150 150 150 150 150 150 150 150 150 150 150
Website
Maintenance
1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
Miscellaneous
15
%
4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000
Uniforms

1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Total Operating
Expenses
110,741 110,741 110,741 110,741 110,741
110,74
1
110,74
1
110,74
1
110,74
1
110,741 110,741 110,741
Profit Before
Interest and
Taxes

1,405,5
59
1,342,5
74
2,059,3
88
1,344,6
60
868,539
611,81
5
611,62
6
611,75
7
613,82
1
870,132 871,181
1,353,9
82
EBITDA

1,410,6
50
1,347,6
65
2,064,4
79
1,349,7
51
873,630
616,90
6
616,71
7
616,84
8
618,91
1
875,223 876,272
1,359,0
73
Interest Expense

6,581 6,494 6,406 6,318 6,229 6,139 6,049 5,958 5,866 5,773 5,679 5,585
Taxes Incurred

335,755 320,659 492,716 321,202 206,954
145,36
2
145,33
9
145,39
2
145,90
9
207,446 207,720 323,615
Other Income

Interest Income

0 0 0 0 0 0 0 0 0 0 0 0
Other Income
Account Name
0 0 0 0 0 0 0 0 0 0 0 0
Total Other
Income
0 0 0 0 0 0 0 0 0 0 0 0
Other Expense

Interest Expense

6,667 6,581 6,494 6,406 6,318 6,229 6,139 6,049 5,958 5,866 5,773 5,679
Profit tax 0 82,181 78,538 119,810 78,626 51,185 36,382 36,355 36,346 36,448 51,195 51,238 79,031
Total Other
Expense
6,667 85,118 126,304 85,032 57,503 42,611 42,494 42,395 42,406 57,060 57,011 84,710
Net Other
Income
(6,667)
(85,118
)
(126,30
4)
(85,032
)
(57,503
)
(42,61
1)
(42,49
4)
(42,39
5)
(42,40
6)
(57,060
)
(57,011
)
(84,710
)
Net Profit

1,063,2
24
1,015,4
21
1,560,2
66
1,017,1
40
655,355
460,31
4
460,23
9
460,40
8
462,04
6
656,913 657,781
1,024,7
82
Net Profit/Sales

69.31% 65.47% 67.58% 65.50% 62.48% 59.24% 59.27% 59.30% 59.39% 62.60% 62.59% 65.61%

Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
Month
10
Month
11
Month
12
Cash
Received
Cash from
Operations
Cash Sales

1,533,9
67
1,550,9
33
2,308,9
33
1,552,9
33
1,048,9
33
776,967 776,467 776,467 777,967
1,049,4
33
1,050,9
33
1,561,9
33
Subtotal
Cash from
Operations

1,533,9
67
1,550,9
33
2,308,9
33
1,552,9
33
1,048,9
33
776,967 776,467 776,467 777,967
1,049,4
33
1,050,9
33
1,561,9
33
Additional
Cash
Received

Non
Operating
(Other)
Income

0 0 0 0 0 0 0 0 0 0 0 0
Sales Tax,
VAT,
HST/GST
Received
0.00
%
0 0 0 0 0 0 0 0 0 0 0 0
New
Current
Borrowing

0 0 0 0 0 0 0 0 0 0 0 0
New Other
Liabilities
(interest-
free)

0 0 0 0 0 0 0 0 0 0 0 0
New
Long-term
Liabilities

0 0 0 0 0 0 0 0 0 0 0 0
Sales of
Other
Current
Assets

0 0 0 0 0 0 0 0 0 0 0 0
Sales of
Long-term
Assets

0 0 0 0 0 0 0 0 0 0 0 0
New
Investment
Received

0 0 0 0 0 0 0 0 0 0 0 0
Subtotal

1,533,9 1,550,9 2,308,9 1,552,9 1,048,9 776,967 776,467 776,467 777,967 1,049,4 1,050,9 1,561,9
Cash
Received
67 33 33 33 33 33 33 33
Expenditur
es
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
Month
10
Month
11
Month
12
Expenditur
es from
Operations

Cash
Spending
62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500 62,500
Bill
Payments
13,216 396,029 388,535 549,052 379,347 266,416 206,441 206,141 206,069 207,990 267,892 272,426
Subtotal
Spent on
Operations

75,716 458,529 451,035 611,552 441,847 328,916 268,941 268,641 268,569 270,490 330,392 334,926
Additional
Cash
Spent

Non
Operating
(Other)
Expense

6,667 85,118 126,304 85,032 57,503 42,611 42,494 42,395 42,406 57,060 57,011 84,710
Sales Tax,
VAT,
HST/GST
Paid Out

0 0 0 0 0 0 0 0 0 0 0 0
Principal
Repaymen
t of
Current
Borrowing

0 0 0 0 0 0 0 0 0 0 0 0
Other
Liabilities
Principal
Repaymen
t

0 0 0 0 0 0 0 0 0 0 0 0
Long-term
Liabilities
Principal
Repaymen
t

10,331 10,417 10,504 10,591 10,680 10,769 10,858 10,949 11,040 11,132 11,225 11,318
Purchase
Other
Current
Assets

0 0 0 0 0 0 0 0 0 0 0 0
Purchase
Long-term
Assets

0 0 0 0 0 0 0 0 0 0 0 0
Dividends

0 0 0 0 0 0 0 0 0 0 0 0
Subtotal
Cash
Spent

92,714 554,065 587,843 707,175 510,030 382,295 322,294 321,985 322,015 338,682 398,628 430,955
Net Cash
Flow
1,441,2
53
996,868
1,721,0
90
845,758 538,903 394,672 454,173 454,482 455,952 710,751 652,305
1,130,9
78
Cash
Balance
1,555,2
53
2,552,1
22
4,273,2
11
5,118,9
69
5,657,8
72
6,052,5
44
6,506,7
17
6,961,1
99
7,417,1
52
8,127,9
03
8,780,2
08
9,911,1
87

Pro Forma Balance Sheet

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
Month
10
Month
11
Month 12
Assets
Starting
Balance
s

Current
Assets
Cash
114,00
0
1,555,2
53
2,552,1
22
4,273,2
11
5,118,9
69
5,657,8
72
6,052,5
44
6,506,7
17
6,961,1
99
7,417,1
52
8,127,9
03
8,780,2
08
9,911,18
7
Other
Current
Assets
0 0 0 0 0 0 0 0 0 0 0 0 0
Total
Current
Assets
114,00
0
1,555,2
53
2,552,1
22
4,273,2
11
5,118,9
69
5,657,8
72
6,052,5
44
6,506,7
17
6,961,1
99
7,417,1
52
8,127,9
03
8,780,2
08
9,911,18
7
Long-term
Assets
Long-term
Assets
305,45
0
305,45
0
305,45
0
305,45
0
305,45
0
305,45
0
305,45
0
305,45
0
305,45
0
305,45
0
305,45
0
305,45
0
305,450
Accumula
ted
Depreciati
on
0 5,091 10,182 15,273 20,363 25,454 30,545 35,636 40,727 45,818 50,908 55,999 61,090
Total
Long-term
Assets
305,45
0
300,35
9
295,26
8
290,17
8
285,08
7
279,99
6
274,90
5
269,81
4
264,72
3
259,63
3
254,54
2
249,45
1
244,360
Total
Assets
419,45
0
1,855,6
12
2,847,3
90
4,563,3
89
5,404,0
56
5,937,8
68
6,327,4
49
6,776,5
31
7,225,9
23
7,676,7
84
8,382,4
45
9,029,6
59
10,155,5
47
Liabilities
and
Capital

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9
Month
10
Month
11
Month 12
Current
Liabilities
Accounts
Payable
0
383,26
9
370,04
3
536,27
9
370,39
8
259,53
4
199,57
0
199,27
2
199,20
5
199,06
1
258,94
0
259,59
8
372,022
Current
Borrowin
g
0 0 0 0 0 0 0 0 0 0 0 0 0
Other
Current
Liabilities
0 0 0 0 0 0 0 0 0 0 0 0 0
Subtotal
Current
Liabilities
0
383,26
9
370,04
3
536,27
9
370,39
8
259,53
4
199,57
0
199,27
2
199,20
5
199,06
1
258,94
0
259,59
8
372,022
Long-term
Liabilities
800,00
0
789,66
9
779,25
2
768,74
8
758,15
7
747,47
7
736,70
8
725,85
0
714,90
1
703,86
1
692,72
9
681,50
4
670,186
Total
Liabilities
800,00
0
1,172,9
38
1,149,2
95
1,305,0
28
1,128,5
54
1,007,0
11
936,27
8
925,12
2
914,10
6
902,92
2
951,66
9
941,10
2
1,042,20
7
Paid-in
Capital
40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000
Retained
Earnings
(420,5
50)
(420,55
0)
(420,55
0)
(420,55
0)
(420,55
0)
(420,55
0)
(420,55
0)
(420,55
0)
(420,55
0)
(420,55
0)
(420,55
0)
(420,55
0)
(420,55
0)
Earnings 0
1,063,2
24
2,078,6
45
3,638,9
11
4,656,0
51
5,311,4
06
5,771,7
20
6,231,9
59
6,692,3
67
7,154,4
12
7,811,3
25
8,469,1
07
9,493,88
9
Total
Capital
(380,5
50)
682,67
4
1,698,0
95
3,258,3
61
4,275,5
01
4,930,8
56
5,391,1
70
5,851,4
09
6,311,8
17
6,773,8
62
7,430,7
75
8,088,5
57
9,113,33
9
Total
Liabilities
and
Capital
419,45
0
1,855,6
12
2,847,3
90
4,563,3
89
5,404,0
55
5,937,8
67
6,327,4
48
6,776,5
31
7,225,9
22
7,676,7
84
8,382,4
44
9,029,6
59
10,155,5
46
Net Worth
(380,5
50)
682,67
4
1,698,0
95
3,258,3
61
4,275,5
01
4,930,8
57
5,391,1
70
5,851,4
09
6,311,8
17
6,773,8
63
7,430,7
76
8,088,5
57
9,113,33
9