Business Plan

Developing Karimunjava Isles as An Eco-edutourism Destination

by Empowering the Local Community

By : PERAHU BAU

TABLE OF CONTENT

1.

BUSINESS DESCRIPTION ............................................................................................. 1

A. Industry Overview ......................................................................................................... 1
B. Company Summary ....................................................................................................... 2
C. Services ........................................................................................................................... 3
D. Positioning ...................................................................................................................... 4
E. Pricing Strategy ............................................................................................................. 4

2.

MARKET ANALYSIS ...................................................................................................... 4

A. Costumer Analysis ......................................................................................................... 4
B. Market Size and Trends ................................................................................................ 4
C. Competition .................................................................................................................... 6
D. Sales Forecast ................................................................................................................. 8

3.

START-UP SUMMARY................................................................................................... 9
A. Start-up Process ............................................................................................................. 9
B. Start-up Cost .................................................................................................................. 9
C. Operating Requirements............................................................................................... 9

4.

MARKETING PLAN ..................................................................................................... 10

A. Marketing Strategy ..................................................................................................... 10
B. Distribution Plan ......................................................................................................... 11
C. Advertising and Promotion ........................................................................................ 11

5.

MANAGEMENT PLAN ................................................................................................. 12

A. Organizational Structure ............................................................................................ 13
B. External Management Team ...................................................................................... 13
C. Personnel Plan ............................................................................................................. 14

6.

FINANCIAL PLAN ........................................................................................................ 14

A. Important Assumption ................................................................................................ 14
B. Profit and Loss Statement........................................................................................... 15
C. Cash Flow Statement ................................................................................................... 16
D. Balance Sheet ............................................................................................................... 17
E. Funding Request and Return ..................................................................................... 17

APPENDIX ............................................................................................................................. 19

1. Business Description
A. Industry Overview
Tourism industry is growing. Increasing international arrivals in the world can be
seen in Table 1. This industry is projected to grow at an average annual growth rate of
4.1 percent over the period from 1990 to 2010. In long term view, the Asian market is
the fastest growing one. Being leader with average annual growth rate 7.6% and 6.7%,
without any doubt travel destination in Asia will be the most important destination.
Table 1. International Arrivals by World Region
Updated forecast for the years 2000 and 2010 (millions)
1975

1995

1996

Europe
153.8 338.2 347.4
East
8.7
84.5
90.1
Asia/Pacific
Americas
50.0
110.1 115.5
Africa
4.7
18.7
19.4
Middle East 3.6
11.3
15.1
South Asia 1.6
4.5
4.5
World total 222.3 567.4 592.1
Source: Global Stats. Corp. 1997

2000

2010

397
122

525
229

Average annual
growth rate (%)
1990 2010
3.1
7.6

138
25
14
6
702

195
37
21
11
1,018

3.7
4.6
4.9
6.7
4.1

Indonesia is one of the countries in Asia that can be promoted as tourism

destinations. As a tropical country, Indonesia has a lot of unique nature tourism
locations. There are many locations that are not really known by the world and it can be
developed to increase Indonesias tourism. This situation gives a big chance for tourism
industry to explore a new location in Indonesia.
Tourism in Indonesia is currently overseen by the Ministry of Culture and
Tourism. International tourism campaigns have been focusing largely on its tropical
destinations with white sand beaches, blue sky, and cultural attractions. Beach resorts
and hotels have been developed in some popular tourist destinations. At the same time,
the integration of cultural affairs and tourism under the scope of the same ministry
shows that cultural tourism is considered an integral part of Indonesia's tourism
industry, and conversely, that tourism is used to promote and preserve the cultural
heritage.
Some of the challenges Indonesia's tourism industry has to face include the
development of infrastructure to support tourism across the sprawling archipelago,
incursions of the industry into local traditions, and the impact of tourism development
on the life of local people. Our company has a marketing strategy and policy to

2
overcome those challenges. We develop an eco-edutourism concept in our packages.
We also establish a good relationship with local government to ensure the local society
welfare.
B. Company Summary
Perahu Tour is a full service travel agency that specialized in nature tourism and
provides water activities with professional service in Karimunjava Isles, Indonesia.
Perahu Tour is a limited partnership travel agency owned by Amelinda Angela, Marisa,
and Kevin Angga Saputra. Amel has many experiences in leadership through her
leadership role in some committees, e.g. Fieldtrip to Karimunjava Isles committee.
Marisa has a good sense in market analysis that can be seen from her good score in
marketing management course in the university. Kevin is passionate in developing
Karimunjava Isles and he also has a good relationship with the local community.
Karimunjava Isles is one of the nature tourism destinations in Indonesia that has
not been explored yet. It is known with its well-preserved beach and underwater
ecology. Due to its isolated location, Karimunjava Isles is not a well-known tourism
destination. Perahu Tour provides full service of nature tourism and water activities in
Karimunjava Isles for domestic and international tourists.
Our vision is to become an international travel agency that develops Karimunjava
Isles as an eco-edutourism destination. Our missions are stated as follows:
Maintaining a good quality services and costumer relation.
Implementing internet and Computerized Reservation Systems (CRS) in marketing
system.
Maintaining good relationship with stakeholders, such as Ministry of Culture and
Tourism, local government, and the local community in Karimunjava Isles.
Our objectives are:
Sales of $480,000 by year five.
Maintain our gross margins by 16.75%.
Develop strategic alliances with service providers nationally, internationally, and in
the Jakarta.
We have six strategies in advertising and promotions, which are public relations,
shop front, internet website, customer relations, press advertising, and our association.
We will undertake a small amount of press advertising in order to enhance our public
relations activity. There is considerable research to support the argument that the more
often a potential client hears about you, the more likely they are to approach you when
they have a need for your type of service.

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C. Services
Perahu Tour is a full service agency and provides travelling service to
Karimunjava Isles. Additional services include assistance with visa on arrival and
airline ticket for international tourists. Perahu Tour builds connection between
international tourists and the beauties of Karimunjava Isles. This is the unique selling
point and advantage of our company comparing to other travel agents. Other travel
agents arrange the trip to many locations and not focusing to one location.
Karimunjava Isles is isles that have well-preserved beach and underwater ecology.
However, it remains unknown due to its isolated location. Perahu Tour creates a travel
packages focused on Karimunjava Isles. Perahu Tour offers an eco-edutourism concept
in Karimunjava Isles. Tourists can go diving, snorkeling, and swimming in the sea.
Tourists do not only see the underwater beauties, but also involve in the development of
natural resources such as coral reef and shark cultivation. Besides the underwater
experiences, tourists can also enjoy and learn about local communitys culture. One of
the local communitys cultures is the traditional food festival.
Perahu Tour empowers the local community in Karimunjava Isles as local tour
guide. This is our companys uniqueness. Our company has a social responsibility to
increase the welfare of Karimunjava Isles local community. Perahu Tour does not only
focus to get profit, but also contributes to the development of the location and the local
community.
We provide four packages based on price and the length of stay, as follows:
1) Delight 4D. Transportation from Jakarta to Jeparas port, ferry from Jeparas port to
Karimunjavas port, hotels room for three nights, snorkeling or diving, free
underwater photoshoot, shark and reefs cultivation, swimming with shark, ferry from
Karimunjavas port to Jeparas port, transportation from Jeparas port to Jakarta.
2) Delight 7D. Transportation from Jakarta to Jeparas port, ferry from Jeparas port to
Karimunjavas port, hotels room for six nights, snorkeling or diving, free
underwater photoshoot, shark and reefs cultivation, swimming with shark, ferry from
Karimunjavas port to Jeparas port, transportation from Jeparas port to Jakarta.
3) Luxury 4D. Flight from Jakarta to Semarang, speedboat from Semarangs port to
Karimunjavas port, resortss room for three nights, snorkeling or diving, free
underwater photoshoot, shark and reefs cultivation, swimming with shark, ferry from
Karimunjavas port to Semarangs port, flight from Semarang to Jakarta.
4) Luxury 7D. Flight from Jakarta to Semarang, speedboat from Semarangs port to
Karimunjavas port, resortss room for six nights, snorkeling or diving, free

4
underwater photoshoot, shark and reefs cultivation, swimming with shark, ferry from
Karimunjavas port to Semarangs port, flight from Semarang to Jakarta.
D. Positioning
Perahu Tour sells the concept of eco-edutourism destination. We preserve the
natural resources in Karimunjava Isles by empowering the local community. By
empowering local community, we can preserve their local tradition. Besides, we also
improve their welfare. These are our ways to implement our social responsibility.
We intend to maintain a high service element to our business and extend our
range of value added services such as vacation insurance, individualized pre-vacation
booklets, post-vacation follow up, and continually updating our client database. We will
seek to build up a high level of repeat business. Customers loyalty is vital to our
profitable growth.
E. Pricing Strategy
Perahu Tours pricing is determined by market standards. Perahu Tour will
attempt to maintain margins of 16.75% on all service packages. Perahu Tour will make
every effort to maintain a competitive pricing policy. However, as Perahu Tour builds
its reputation as the premier provider of eco-edutourism in Karimunjava Isles, it expects
to earn the ability to charge a premium for its services.

2. Market Analysis
A. Costumer Analysis
Our target consumers are individuals or groups in the ages of 18-45. They consist
of international tourists with median household income at the minimum USD 20,000,
also domestic tourists with median household income at the minimum USD 5,000. They
are interested in nature tourism and sport activities such as diving, snorkeling,
swimming, fishing, biking trip, and camping. They like to spend their holiday in a white
sand beach and exotic villages. Our major customers are located especially in urban
areas in Europe, United States, Canada, Australia, and Asia especially South East Asia.
B. Market Size and Trends
The world travel market is forecasted to expand at a 4.1 percent average annual
growth rate until 2010 (Table 1). The Asian market is the fastest growing one. Being
leader with average annual growth rate 7.6% and 6.7%, without any doubt Asia will be
the most important destination.
1) Market Trends

5
One notable trend in the travel industry is increasing deregulation. Deregulation has
increased the need for differentiation and has, in many cases, lowered the prices of
airfare and other travel related services. Additional trends include caps on agency
commissions by many of the larger airlines, increasing adventure travel, and
reduction of profit margins. More than 50% of the U.S. adult traveling population, or
147 million people, have taken an adventure trip in their lifetime, 98 million in the
past five years. Approximately, 25 million adults engaged in both hard and soft
adventure activities. Activities most commonly participated in during adventure
vacations: camping (85%), hiking (74%), skiing (51%), snorkeling or scuba diving
(30%), sailing (26%), kayaking or whitewater rafting (24%), and biking trips (24%).
Customers tend to be young and affluent, ages 18-45, and one fourth are from
households with annual incomes of USD 30,000 or more.
2) Market Growth
Service industries represent the fastest growing sector of the national economy, and
travel and tourism agencies are poised to flourish in the midst of todays economic
boom. These services are projected to grow at an average annual growth rate of 4.1
percent over the period from 1990 to 2010. The travel and tourism industry thrives in
a vital economy. Figures about size and projected growth of adventure vacations
from one recent study (World Adventure Travel Data Corp.) can be seen in Table 2.
Table 2. Adventure Travel Vacations - World forecast (Million Arrivals): 1990 2010
Destination

1990

Europe
0.25
N. America
0.45
Rest of World 0.10
Total
0.80
Source: WATD Corp. 1997

1997

2003

2010

0.60
0.60
0.25
1.45

1.60
1.40
0.95
3.95

2.35
2.20
1.10
5.65

6
Table 3. Adventure Travel Vacations According Ages
Age

1990
%

16 24
61
25 35
20
36 45
15
46+
4
Total
100
Source: WATD Corp. 1997

2010
%
38
31
25
6
100

It can be seen that adventure travel vacations increase sharply between 1990 and
2010. Asian market still has a small number of visitors although it possesses the
highest average annual growth rate. It means there are many opportunities to increase
international arrival in Asia without considerable amount of competitors.
3) Market Needs
Many potential customers are unsure of the location where they wish to spend their
holiday. Most of them want to find a nature tourism destination which is unique and
well preserved. Karimunjava Isles has all of the values that they wanted. However,
due to its location, most of people dont know how to get there. Perahu tour provide
the knowledge they possess about Karimunjava Isles and how to reach there.
Customers look to the agency to provide them with sound advice for a competitive
price. Perahu tour is confident in its ability to do so. Time is a precious commodity.
Perahu tour can save the customer time and money, and help to ensure that they are
satisfied with their vacation. We will make them feel different excitement rather than
ordinary vacation. We offer study of ecology and zoology especially in marine
zoology. With us, they not only get leisure and adventure, but also knowledge and
involvement of nature preservation.

C. Competition
There are many activities and types of travel available to people contemplating
adventure and educating vacation. These substitute products and services are one type
of competition. Theme parks, motor-home trips, and cruises are just a few. Other
substitutes include less expensive, self-planned, or trips geared towards more traditional
types of vacations. In addition, potential customers do not have to vacation. Instead,
they may elect to spend elsewhere, or invest the money. They would have otherwise
spent on a vacation. Direct competition can come from virtually any agency, and there
are several agencies whom specialize in specific destination in Indonesia. However,

7
there is no travel agency that specialized in Karimunjava Isles. Lifestyle, age, and
disposable income influence the decision to travel and in which type of travel to
participate.
1) Main Competitors
Until now, according to our market research, we have no direct competitors in our
operation area in Jakarta. However our indirect competitors are:
a. Antatour: established in 1972 as PT China Travel Service. In 25th March it
changed its name to PT Anta Express Tour and Travel Service (Antatour). It
covered plane ticketing, hotel voucher, MICE, domestic and international tours. In
December 2008 they got ISO 9001:2000.
b. Bayu Buana: Being an industry leader, Bayu Buana able to provide its customers
with the most effective and competitive airfares applicable. Consistently named
Top Agent by major Domestic and International carriers, like Garuda Indonesia
Airways, Singapore Airlines, Cathay Pacific Airways, British Airways, Qantas,
Lufthansa, Air France, Eva Air, Malaysian Airlines, KLM Royal Dutch Airlines,
Thai Airways. Bayu Buana is also the recipient of Abacus Award (Computerized
Reservations System) for Best Performance Agent.
c. Dwidaya Tour and Travel: Established on July 19th, 1967, Dwidaya Tour &
Travel is one of the oldest and largest corporate & leisure travel agencies in
Indonesia. Winner of numerous Top Ten agent awards from all the major airlines
operating in Indonesia, Dwidaya Tour & Travel has also received the "Dirgen
Parseni Cakra Empat" award, the highest award given by the Department of
Tourism to the travel industry.
d. Panorama Tours: PT. Panorama Sentrawisata Tbk is one of Indonesia's leading
travel leisure group of corporations, which over the years, it has been steadily and
systematically developing its position as the leading travel market, and
strategically focusing its operations on 4 (four) business pillars, namely
INBOUND, OUTBOUND, TRANSPORTATION, and MICE. An integrated
portfolio of business, complementary yet well diversified but all have focus in
travel and tourism businesses.
2) Competitive Advantages
The travel agency market is competitive, and technology, namely the Internet
and Computerized Reservation Systems (CRS), has changed the way travel agencies
operate. The Internet gives agencies and individuals the ability to perform travel
related research. Discount airfare brokers have taken advantage of the Internet by

8
offering tickets online at discounted rates. This has increased price competition.
Computerized Reservation Systems have increased the speed and efficiency of the
agency to customer transaction. They have also increased the start-up costs for travel
agencies who wish to be competitive. Moreover, industry competition and the
increased number of travel options available have made it necessary for smaller
travel agencies to establish themselves as specialists in one or more types of travel.
Perahu Tour has done this by positioning itself as a nature tourism and water
activity travel specialist. Perahu Tour has not identified a direct competitor in
Jakarta. However, a travel agency does not have to be a nature tourism and water
activity travel specialist to book a travel trip. Therefore, Perahu Tour will compete
with other Jakarta travel agencies as they offer alternatives to nature tourism and
water activity travel, have the ability to arrange adventure travel themselves, and
have the advantage of established relationships with clients. By concentrating on
Karimunjava Isles, we will be able to have superior product knowledge.
According to our market research, specialized travel agencies like our type of
business have less market share than general travel agencies. But most of client that
used specialized travel agencies would use them again. We aim to increase this
percentage through our superior service.
D. Sales Forecast
Refers to Table 1, we predict that in 2010 Asia Pasific will have approximately
229 million visitors. It means Asia Pasific placed second largest market after Europe
with the largest average annual growth rate. These huge market indicates that travel
business will be long lasting. In the first month, we forecast the sales of 50 packages,
considering Perahu Tour as a start-up company.The monthly rate of sales growth in year
1 is 0.4% and it increases gradually, so that the annual sales growth rate in five year is
about 7%. The projection is based on annual growth rate international arrivals in Asia
Pacific which is 6.7% (Table 1).
We project the sales of USD 480,816 in year 5. In detail, 420 customers on
Delight 4D package, 168 customers on Delight 7D package, 168 customers on Luxury
4D package, and 84 costumers on Luxury 7D package. The detail of sales forecast can
be seen in Table 4 (Appendix).

3. Start-up Summary
A. Start-up Process
Kegiatan

Month-5

Month-4

Month-3

Month-2

Month-1

Month 1

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

1. Find place for

office
2. Buy furniture
3. Buy stationeries
4. Setting up
office
5. Contact and
follow up
stakeholders
6. Buy hostname
7. Design web
8. Advertising
9. Launching

B. Start-up Cost
Perahu Tours start-up cost will cover accounting and legal fees, advertising and
promotion, insurance, office rent, salaries, utilities, cost of sales, and start up inventory.
Breakdown of the start-up costs is illustrated as follows:
Start-up Cost

USD

Accounting and legal fees

900

Advertising and promotion

300

Insurance

225

Office rent

300

Salaries
Utilities (electricity, water, phone bill, internet)
Cost of sales
Start-up inventory (computer systems, software, printer, scanner,

1,950
285
23,825
2,420

fax machine, stationeries)

Total start-up cost

30,205

C. Operating Requirements
The legal structure of Perahu Tour refers to Indonesia Law Regulation Number 10
Year 2009 about tourism. Perahu Tour preserves natural resources and culture. Perahu
Tour also develops the local communities and facilities. Besides that, Perahu Tour joins
Association of Indonesia Tourism Industry. This association provides a place for
communication and consultation to develop tourism.

10
To control our services quality, we will be developing outline scripts to help
manage inquiries. This will ensure that all incoming phone calls are dealt with the same
way and meet a high standard. We will encourage people inquiring about vacations to
give us feedback on our ability to handle their inquiry, the amount of time from the
clients first inquiry to the date of actual travel, and the clients reactions to the vacation
in terms of whether it meets their expectations.

4. Marketing Plan
A. Marketing Strategy
Perahu Tour adheres to the theory that the goal of business is to create and keep
customers. Its marketing strategy will reflect this goal as it builds its reputation in the
Jakarta. Though we operate in the travel industry, it provides much more than travel.
We provide adventure, freedom, and ecology study. Many of our customers spend 50
weeks of the year in an office. We offer people the ability to get away and remember
how much they love the challenge, excitement of an athletic endeavour, curiousity about
marine plants and animal, peace of mind, and cultural change. Perahu Tour will promote
the benefits of eco-edutourism. These benefits include better health, excitement,
personal growth, ear-to-ear grins, additional knowledge, and a whole fun.
Perahu Tour will sell the benefits of the services it offers and the activities it
promotes. We sell the freedom that is part of a healthy and balanced lifestyle. The
benefits of that lifestyle are many. People need to be reminded occasionally that there is
more to life than building bigger barns. Perahu Tour can provide clients with all of the
arrangements they can think of and likely they would not have thought of. Our concern
is not to maximize profit on any individual sale but to satisfy the customer. Doing so
will reduce costs and increase profits in the long run. It is less expensive to maintain a
relationship than develop a new one. At Perahu Tour we believe in the benefits of the
activities we promote, and we are confident that we can satisfy the desires of the
seasoned adventure traveller and the newcomer alike.
Customers will be reached through traditional marketing communication methods.
Research suggests that many of our target customers, and travelers in general, are
Internet savvy and many adventure travelers purchase over the Internet or buy through
travel agents. As such, the Internet will serve as an appropriate and effective medium of
communication. We will target the primary customer group initially. This group has
been defined as persons who have purchased or are likely to purchase a specialized
vacation. In addition to the Internet, methods by which we will communicate with

11
customers will depend on the results of our marketing research. We will likely use trade
or special interest magazines, mailing lists and direct mail, and personal selling.
Initially, service will be introduced regionally. Sales will be extended into the national
and global markets within a few years of operation. We hope to promote out of season
services through frequent customer contact and through our own publication, most
likely a monthly newsletter.
Besides that, in order to make our way, the local community is also involved in
our business. These part of partneship let the local community to handle all the facilities
in Karimunjava Isles with arrangement from us. We also use local fishermans boat as a
transportation from island to island in Karimunjava Isles. We also give training to local
community so they can communicate with international tourist, know how to care the
environment, and also know how to give superb service. And we will encourage local
community to open gift store and held many cultural events so their culture will survive
and all the tourists could bring home part of our culture and not just experience. By
empowering local community in Karimunjava Isles, we ensure our business continuity.
By introducing Karimunjava as an eco-edutourism place, we will give local community
a chance to improve their income, they will keep us as a partner to develop Karimunjava
Isles as a world class travel destination.
With Perahu Tours expertise in Karimunjmava travel, we can create customized
travel itineraries for our clients and provide the most thorough, informative adventure
travel service available. By offering superior customer service, Perahu Tour can
distinguish itself from its competitors.
B. Distribution Plan
We plan to distribute and promote our product by Internet and Computerized
Reservation Systems (CRS). We plan to make our own website with attractive and eye
catching design. On our website, we plan to put our company history, package services
description, latest news and updates, special offers, FAQ, and contact person. All of our
international consumers can reserved and book their trip to us by leaving a comment in
our online guestbook or directly contact to Perahu tour by e-mail. While domestic
consumers can go directly to our office, call us, or contact us by e-mail.
C. Advertising and Promotion
Our advertising and promotions will pivot around six key strategies: public
relations, our shop front, an internet website, customer relations, press advertising, and
our association with the PERAHU Tours Association.

12
Public relations: we will put considerable effort into preparing and disseminating
a regular flow of press releases. These will based on stories about our destinations,
activities, corporate clients, and our staff.
Shop front: We plan to have an exciting, informative, and actively managed
display window. There will be a video display showing adventure vacations in progress.
Different destinations can be selected from outside the window via a control panel,
otherwise, the scenes will rotate on a random basis.
Internet website: This is fast becoming a major promotional channel, and we
believe it will increase in importance over time. Also, it is the most convenient way for
us to have a global presence at the outset. Furthermore, we plan to build our own
website and we will try to promote and advertise about Karimunjava Isles in general
social network like facebook, twitter, yahoo, google, etc.
Costumer relations: We will keep records of every sales contact. Data such as
source of inquiry, client needs, previous vacation, job, and income will be included. By
having superior information on our clients and prospects, we intend to offer a truly
personalized service. Our database will contain full details on all our clients, including
the vacations they have taken and their post-vacation appraisal data. We will use this
data to encourage our satisfied customers to recommend our services to friends,
relatives, colleagues, and employers.
Press advertising: We will undertake a small amount of press advertising in order
to enhance our public relations activity. There is considerable research to support the
argument that the more often a potential client hears about you, the more likely they are
to approach you when they have a need for your type of service.
Perahu Tour Association: We will write to all past shop clients announcing the
establishment of the travel business and offer them a special introductory eco-edu
tourism vacation package.

5. Management Plan
Perahu Tour is a limited partnership company owned by Kevin Angga Saputra,
Amelinda Angela, and Marisa. All of the owners will share in management duties and
decision making. It will be important for each member of team to be capable in all aspects of
business.

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A. Organizational Structure
Perahu Tour will begin operations with 3 full-time positions. The positions are as
follows.
1) General Manager
Amelinda Angela, age 20. Amel has many experiences in leadership through her
leadership role in some committees, e.g. Fieldtrip to Karimunjava Isles committee.
Her minor study in management also gives her a remarkable knowledge in managing
the organization. Amel is responsible in managing the company and monitoring the
business activities.
2) Marketing Director
Marisa, age 21. Marisa has a good reputation as a creative person in the organization.
Achieving a good score in marketing management course in the university is a proof
of her good sense in market analysis. Marisas hobby is travelling. Marisa is
responsible in making an integrated marketing strategy to achieve the companys
goal.
3) Financial and Operational Manager
Kevin Angga Saputra, age 21. Kevin is good in numbers. Kevin is passionate in
developing Karimunjava Isles and he also has a good relationship with the local
community. Kevin is responsible in companys operation and financial report.
B. External Management Team
1) Operational Advisor
Frenyline Widjaja, age 27, Tourism Diploma, Trisakti Institute of Tourism,
Indonesia. Frenyline has been working in traveling business since 2002. Frenyline
has experiences in leading tour to seven different destinations in Asia-Pacific.
Frenyline has a certificated Galileo system reservation training on 2005. As a part
timer in the company, Frenyline is responsible in giving advice about companys
operational and expanding the companys network.
2) Design and IT Consultant
Benny Fajarai, age 20, owner of Cactus Project. Benny is a young entrepreneur in IT,
especially design, multimedia, and website. As a part timer in the company, Benny is
responsible in designing and maintaining companys advertisement and website.

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C. Personnel Plan
Perahu Tour does not anticipate the need to significantly increase personnel in the
first five years.

General Manager
Marketing Director
Financial and
Operational Manager
Operational Advisor
Design and IT
Consultant
Total People
Total Payroll

Year 1
USD
6,000
6,000
6,000

Year 2
USD
6180
6180
6180

Year 3
USD
6370
6370
6370

Year 4
USD
6570
6570
6570

Year 5
USD
6780
6780
6780

2,700
2,700

2780
2780

2870
2870

2970
2970

3080
3080

5
23,400

5
24,100

5
24,850

5
25,650

5
26,500

6. Financial Plan
Perahu Tour's financial plan is detailed in following sections. Preliminary estimates
suggest that Perahu Tour will experience slow growth in the first year of operation. This is
partly due to Perahu Tour's status as a start-up company and seasonal factors. Perahu Tour
does not anticipate an increase in gross margin. Thus, the overall financial plan presents a
conservative but realistic depiction of Perahu Tour's financial position.
A. Important Assumption
Perahu Tour assumes the following:
1) Market growth projections for the travel industry are accurate.
2) National economic conditions, which are favorable for travel industry, will not
experience significant decline in the next five years.
3) International conditions will remain favorable for service provider and Perahu Tour
will be able to maintain those relationships.
4) Assumption of interest rate is 12% per year and tax rate 15%.

15
B. Profit and Loss Statement

Sales
Direct Costs of
Sales

Month
1
USD

Month
2
USD

Month
3
USD

Month
4
USD

Month
5
USD

Year 1
Month
Month
6
7
USD
USD

Month
8
USD

Month
9
USD

Month
10
USD

Month
11
USD

Month
12
USD

1st
Quarter
USD

Year 2
2nd
3rd
Quarter Quarter
USD
USD

4th
Quarter
USD

Year 3
USD

USD

USD

28620

28620

28904

28904

30322

30322

30606

30606

32358

32358

32358

32642

95840

97592

97592

100478

420122

448742

480816

23825

23825

24061

24061

25242

25242

25478

25478

26937

26937

26937

27173

79782

81241

81241

83645

349734

373559

400260

Year 4

Year 5

Gross Margin

4795

4795

4843

4843

5080

5080

5128

5128

5421

5421

5421

5469

16058

16351

16351

16833

70388

75183

80556

Gross Margin %

16,75

16,75

16,76

16,76

16,75

16,75

16,75

16,75

16,75

16,75

16,75

16,75

16,76

16,75

16,75

16,75

16,75

16,75

16,75

900

900

900

General and Administration

Accounting and
900
Legal Fees
Advertising and
300
Promotion
Bank Loan
547
Payments
Bank Interests
197

300

300

300

300

300

300

300

300

300

300

300

900

900

900

900

3600

3600

3600

547

547

547

547

547

547

547

547

547

547

547

1.642

1.642

1.642

1.642

6.568

192

186

181

175

170

164

159

153

148

142

137

378

328

279

230

427

Insurance

225

225

225

225

225

225

225

225

225

225

225

225

675

675

675

675

2700

2700

2700

Start-Up Inventory

2420

Office Rent
Salaries (Owner or
Directors)
Utilities

300

300

300

300

300

300

300

300

300

300

300

300

900

900

900

900

3600

3600

3600

1950

1950

1950

1950

1950

1950

1950

1950

1950

1950

1950

1950

6025

6025

6025

6025

24850

25650

26500

285

285

285

285

285

285

285

285

285

285

285

285

855

855

855

855

3420

3420

3420

Total Expenses

7124

3799

3793

3788

3783

3777

3772

3766

3761

3755

3750

3744

12275

11326

11276

11227

46065

39870

40720

Gross Profit
Before Tax

-2329

996

1050

1055

1297

1303

1356

1362

1660

1666

1671

1725

3783

5026

5075

5606

24323

35313

39836

Profits Tax

158

195

195

203

204

249

250

251

259

567

754

761

841

3648

5297

5975

Net Profit

-2329

-1333

-284

613

1716

2823

3976

5134

6545

7961

9382

10848

14064

18335

22649

27414

48088

78104

111965

900

16
C. Cash Flow Statement
Year 1

Cash Revenue
Revenue from Service Sales
Additional Cash Received
Capital Investment
Bank Loan
Subtotal Cash Received
Cash Disbursements
Cash Payments to Trade
Suppliers
Start up Inventory
Salaries
Promotion Expense Paid
Professional Fees Paid
Rent Payments
Insurance Paid
Utilities Payments
Total Cash Disbursements
Additional Cash Spent
Repayment of Bank Loan and
Bank Interests
Long-term Liabilities
Repayment
Subtotal Cash Spent
Reconciliation of Cash Flow
Opening Cash Balance
Add: Total Cash Revenue
Deduct: Total Cash
Disbursements
Closing Cash Balance

Year 2
Year 3

Year 4

Year 5

100478

420122

448742

480816

97592

100478

420122

448742

480816

81241

81241

83645

349734

373559

400260

6025
900
900
900
675
855
90037

6025
900
0
900
675
855
90596

6025
900
0
900
675
855
90596

6025
900
0
900
675
855
93000

24850
3600
900
3600
2700
3420
388804

25650
3600
900
3600
2700
3420
413429

26500
3600
900
3600
2700
3420
440980

684

2.020

1.971

1.921

1.872

6.995

875

875

2625

2625

2625

2625

10500

10500

10500

31567

31562

31792

94682

95192

95142

97497

406299

423929

451480

29295
32358

30080
32358

30871
32358

31668
32642

32517
95840

33676
97592

36076
97592

38526
100478

41507
420122

55330
448742

80143
480816

30119

31573

31567

31562

31792

94682

95192

95142

97497

406299

423929

451480

29295

30080

30871

31668

32517

33676

36076

38526

41507

55330

80143

109479

st

nd

Month
1

Month
2

Month
3

Month
4

Month
5

Month
6

Month
7

Month
8

Month
9

Month
10

Month
11

Month
12

1
Quarter

2
Quarter

3rd
Quarter

4th
Quarter

28620

28620

28904

28904

30322

30322

30606

30606

32358

32358

32358

32642

95840

97592

97592

10500
19705
58825

28620

28904

28904

30322

30322

30606

30606

32358

32358

32358

32642

95840

97592

23825

23825

24061

24061

25242

25242

25478

25478

26937

26937

26937

27173

79782

2420
1950
300
900
300
225
285
30205

1950
300
0
300
225
285
26885

1950
300
0
300
225
285
27121

1950
300
0
300
225
285
27121

1950
300
0
300
225
285
28302

1950
300
0
300
225
285
28302

1950
300
0
300
225
285
28538

1950
300
0
300
225
285
28538

1950
300
0
300
225
285
29997

1950
300
0
300
225
285
29997

1950
300
0
300
225
285
29997

1950
300
0
300
225
285
30233

744

739

733

728

723

717

712

706

701

695

690

875

875

875

875

875

875

875

875

875

875

31824

28499

28729

28724

29900

29894

30125

30119

31573

0
58825

27001
28620

27122
28904

27296
28904

27476
30322

27899
30322

28327
30606

28808
30606

31824

28499

28729

28724

29900

29894

30125

27001

27122

27296

27476

27899

28327

28808

17
D. Balance Sheet
Assets
Long-Term Assets
Capital
Amelinda Angela
Kevin Angga Saputra
Marisa
Total Long-Term Assets
Current Assets
Accounts Receivable
Prepaid Expenses
Total Current Assets

366,620 391,502 420,122 448,742 480,816

8,720
6,300
6,300
6,300
6,300
375,340 397,802 426,422 455,042 487,116

Total Assets

385,840 397,802 426,422 455,042 487,116

Liabilities
Current Liabilities
Accounts payable
Accrued expenses
Taxes payable
Total Current
Liabilities
Long-Term Liabilities
Notes payable
Interest payable
Total Long-Term
Liabilities

Year 1

Year 2

Year 3

Year 4

Year 5

3,500
3,500
3,500
10,500

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

305,196 325,909 349,734 373,559 400,260

23,400 24,100 24,850 25,650 26,500
1964.42 2923.43 3648.41 5296.95 5975.4
330,560 352,932 378,232 404,506 432,735
6,568
2,003

6,568
1,215

6,568
427

0
0

0
0

8,572

7,783

6,995

Total Liabilities

339,132 360,716 385,228 404,506 432,735

Net Assets

46,708

73,294

103,988 144,024 187,905

Owner's equity
Paid-in Capital
Retained Earnings
Total Owner's Equity

10,500
36,208
46,708

10,500
62,794
73,294

10,500 10,500 10,500

93,488 133,524 177,405
103,988 144,024 187,905

E. Funding Request and Return

Total funding that is required to start this business is USD 30,205. It covers the
expenses for operational expenses in the first month of operations, i.e. direct cost of
sales, accounting and legal fees, advertising and promotion, insurance, start-up
inventory, office rent, salaries, and utilities. The fund comes from two sources, which
are owners investments and bank loan. The owners investment will be repaid as

18
paid-in capital. The bank loan is planned to be repaid in three years with 12% interest
rate a year based on average of credit interest rates commercial bank in business
services in Indonesia on September 2010 (Bank of Indonesia, 2010).

USD
Operational Expenses (1 Month)
Direct Cost of Sales
23825
Accounting and Legal Fees
900
Advertising and Promotion
300
Insurance
225
Start-Up Inventory
2420
Office Rent
300
Salaries
1950
Utilities
285
Total Funding Required
30205
st

Capital
Amelinda Angela
Kevin Angga Saputra
Marisa
Liabilities
Bank Loans
Total Funding

3500
3500
3500
19705
30205

19

APPENDIX
Table 4. Sales Forecast in 5 years
Year 1
Month
1

Month
2

Month
3

Month
4

Month
5

Month
6

Month
7

Year 2
Month
8

Month
9

Month
10

Month
11

Month
12

1st
Quarter

2nd
Quarter

3rd
Quarter

4th
Quarter

Year 3

Year 4

Year 5

Revenue
Product Sales
Delight 4D

7100

7100

7384

7384

7384

7384

7668

7668

7952

7952

7952

8236

24140

24424

24424

24424

104512

111612

119280

Delight 7D

4840

4840

4840

4840

5324

5324

5324

5324

5324

5324

5324

5324

16456

16456

16456

16940

71148

75988

81312

Luxury 4D

9340

9340

9340

9340

10274

10274

10274

10274

10274

10274

10274

10274

31756

31756

31756

32690

137298

146638

156912

Luxury 7D

7340

7340

7340

7340

7340

7340

7340

7340

8808

8808

8808

8808

23488

24956

24956

26424

107164

114504

123312

Total
Revenue

28620

28620

28904

28904

30322

30322

30606

30606

32358

32358

32358

32642

95840

97592

97592

100478

420122

448742

480816

Cost of Sales
Direct Costs
Delight 4D

5900

5900

6136

6136

6136

6136

6372

6372

6608

6608

6608

6844

20060

20296

20296

20296

86848

92748

99120

Delight 7D

4030

4030

4030

4030

4433

4433

4433

4433

4433

4433

4433

4433

13702

13702

13702

14105

59241

63271

67704

Luxury 4D

7780

7780

7780

7780

8558

8558

8558

8558

8558

8558

8558

8558

26452

26452

26452

27230

114366

122146

130704

Luxury 7D

6115

6115

6115

6115

6115

6115

6115

6115

7338

7338

7338

7338

19568

20791

20791

22014

89279

95394

102732

Total Direct
Costs

23825

23825

24061

24061

25242

25242

25478

25478

26937

26937

26937

27173

79782

81241

81241

83645

349734

373559

400260