Are you writing a kayak rental business plan? If YES, here is a sample kayak rental financial projection, sales cost, profit & loss statement. Most of our planned start-up costs are apportioned for the provision of sufficient cash reserve to assure timely payment of operating costs for the company in the first three months.
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Our Startup Expenditure (Budget)
We also need adequate funds to cater for the costs associated with recruiting, training, and paying operational crews. We also need funds for marketing, advertising, and public relations, including the cost of setting up a website capable of offering rental information and making online sales and reservations. We have analyzed the market and below are the key areas we plan to spend or startup capital on:
- The Total Fee for Registering the Business in Chicago – $750.
- Legal expenses for obtaining licenses and permits – $3,000
- Marketing promotion budget for Sea Life Rentals – $500,000
- Cost for hiring Business Consultant – $20,000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $254,000
- Cost of accounting software, tracker software apps, CRM software and Payroll Software – $6,000
- Cost for leasing standard office facility with large space for parking our canoes and kayaks- $250,000.
- Cost for facility remodelling the facility- $70,000.
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, fuelling, maintenance, payments of bills et al) – $250,000
- The cost for Start-up inventory – $1,000,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al): $4,000.
- The cost of Launching an official website: $600
- The cost for our grand opening party: $5,500
- Miscellaneous: $10,000
TOTAL EXPENSES: $2,392,100
From our detailed analysis above, we will need an estimated $2,500,000 to start Sea Life Rentals.
Generating Funding/Startup capital
We at Sea Life Rentals are currently seeking $2.5 million to fund our business and its initial operations. This funding will cover the purchase of canoes and kayaks, marketing, software, and hardware, or rather to make it easier for the above financial protection. Sea Life Rentals is owned by its founder Simon Danica and principle investors. These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate funding from angel investors
Note: We have been able to raise $1,000,000 from the personal savings and family soft loans of Mr Simon Danica. We are hoping to raise the remaining funds from investors who would want to invest in a lucrative venture like Sea Life Rentals.
Sources of Income
Sea Life Rentals will generate income from providing canoe and kayak rental services throughout Chicago and other neighbouring cities. We will provide different shapes and kinds of canoes and kayaks for water enthusiasts who want to spend time at sea or in any of the water bodies in Chicago. Our services will range from hourly rentals to 7 days max rentals. Our source of income includes:
- Rental charges from recreational kayaks
- Rental charges from White Water kayaks
- Rental charges from fishing boats
- Rental charges from sea kayaks
- Rental charges from racing kayaks
Our sales forecast is based on Sea Life Rentals capturing 2% share of the over 55 million visitors that visit Chicago along with the approximately 3 million people that live in the metro area. It simply means that we will have to service over a million customers during the 2018-2023 year. This figure is based on renting an average of 96 canoes and kayaks per day divided between our 137 canoes and kayaks during the summer months.
During the summer months in Chicago, with the amount of advertising and aggressive marketing that we plan to do, we will be able to meet the goals that we have set for ourselves. We believe that our location is the best there is in the whole state of Illinois, and our workforce and the services we will be rendering will make all these possible. Our sales forecast is outlined below;
- First Year: $3,100,000
- Second Year: $5,973,000
- Third Year: $7,318,000
Rental charges from recreational kayaks will cost $500
- Having 1,000 clients, it will cost $500,000
Rental charges from the single kayaks for a half day will cost $35
- Having 5,000 clients, it will cost $175,000
Rental charges from the single kayaks for a full day trip will cost $45
- Having 5,000 clients, it will cost $225,000
Rental charges from the fishing boat hourly will cost $100
- Having 5,000 clients, it will cost $500,000
Rental charges from the fishing boat for a full day trip will cost $500
- Having 1,000 clients, it will cost $500,000
Rental charges from sea kayaks will cost $1200
- Having 1,000 clients, it will cost $1,200,000
TOTAL INCOME : $3,100,000
ON-GOING OPERATIONAL EXPENSES:
- Operational cost for second quarter of the year (salaries of employees, payments of bills et al) – $250,000
- Operational cost for third quarter of the year (salaries of employees, payments of bills et al) – $250,000
- Operational cost for last quarter of the year (salaries of employees, payments of bills et al) – $250,000
- Equipment rental, repairs and maintenance – $20,000
- Office supplies (stationaries) – $6,900
- Credit card processing fees – $1,000
- Other miscellaneous expenses – $10,000