lookout below!1 introducing… lookout below! presented by mike splane
TRANSCRIPT
Lookout Below! 1
Introducing…
Lookout Below!
Presented by
Mike Splane
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Monterey Bay
There’s a world down there
Mysterious...
Hidden…
Inaccessible…
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What’s
Under
That
Quiet
Surface?
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Hungry Predators
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Creepy Crawlers
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And Much More
You can’t see the forest.
You can’t travel through it.
Or can you?
Introducing…
Submarine Tours of Monterey Bay
The Ultimate Underwater Experience
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Lookout Below!
Provides underwater
tours in customized
submarines.
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Our Plan
Beginning in 2006, Lookout Below! will be operating a 48 - passenger submarine in the Monterey Bay.
We will test the concept and develop operational procedures and marketing methods in 2005.
Used tourist submarines are available.
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Like This One
Voyager off Oahu
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Voyager – Interior View
Subs are roomy, safe and comfortable.
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Why should you invest?
2004 - Over 50 subs operating worldwide.
30 million passengers.
Perfect safety record!
A 95% satisfaction level.
Risks are low!
Submarines make money!
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We Solve These Problems
Monterey Bay Aquarium– Artificial environment – Crowded. Long waits.
Tour Boat Operators– Can’t see anything
Scuba Diving– High Cost: $200-300 – Need: training, athleticism, special equipment
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The Market is Huge!Five Million Monterey Tourists
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With No Direct Competition
Building barriers to entry is our main challenge.
Ideas to use as barriers: • Promote govt. regulations • Build Aquarium relationship• Control of key advertising
media placement sites• Agreements w/sub builders• Some confidential ideas.
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The Aquarium is Overcrowded
1,700,000 visitors each year
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Crowds Line Up For Tickets
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We can sell tickets at $50
• We asked potential customers. • We compared prices for other tours.• We looked at our expenses.
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The Basic Revenue Model
Per TripWe have 48 available seatsWe sell 40 seats per trip (average)Tickets sell for $50Revenue per trip = 40 * $50 = $2,000
Per YearOpen 300 days per year. Run 6 trips per day.Total annual trips = 300 * 6 = 1,800Annual revenue = $2,000 * 1,800 = $3,600,000
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Rough Profit Estimate
Ticket Revenues $ 3,600,000Payroll Costs
(Industry Average + 50%) $ 1,000,000Sales Expenses
($10 per passenger) $ 720,000 Operations Expenses
($2,000 Day) $ 600,000Annual Net Profit $ 1,280,000
Sales Margin = 35.5 %
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Development Timeline
Test Stage
2005 - Operate one mini-submarine
Operations Stage
2006 - Operate a large submarine
Expansion Stage
2007 - Add tours
2008 - Add a second submarine
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Most preliminary workhas been done.Business plan √
Marketing surveys √
Feasibility analysis √
Financial analysis √
Operations schedule √
Staffing schedule √
Industry research √
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The Next Steps
Recruiting the management team Developing community relationships Obtaining licenses and permits Raising money Building infrastructure Purchasing assets Selling to Customers
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Planned Management Team
Actively seeking:
A Marketing Manager
An Operations Manager
Mike Splane - Founder
Business Professor
Experienced Travel
Industry Controller
Knows the area/market
MBA in Entrepreneurship
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Asset Requirements
Testing Phase
Purchase a mini-submarine: $ 265,000
Inventory and Start-up Expenses: $ 535,000
Year 1
Purchase a used submarine: $2 million
Year 3
Purchase a new submarine: $5 million
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Financing Desired
Model 1 - Spend a year in testing2005 - $1 Million2006 - $2 Million2008 - $2 Million
Model 2 - Skip the testing phase2005 - $2.5 Million2007 - $2 Million
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The Pay OffPro Forma Summary
Details Available on Request
Year Passengers Revenue Annual ProfitOne 38,808 $ 2,197,185 $ -732,906Two 83,808 $ 4,698,778 $ 1,024,778
Three 143,964 $ 7,975,347 $ 1,034,981Four 181,440 $ 9,994,377 $ 2,531,585Five 194,400 $ 10,693,986 $ 4,083,565
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Investment InformationContact:
Mike Splane
(408) 924-3533San Jose State University
College of Business
One Washington Square
San Jose, CA 95110