urban jungle business plan 10-29-12

7/30/2019 Urban Jungle Business Plan 10-29-12

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A BUSINESS PLAN PREPARED BY:

JOHN FINNEG [email protected] 914-318-6305


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SummaryCombine the thrills of Costa Ricas most popular adventure attraction with the excitement of New York City and the

surrounding areas for a quick getaway thats perfect for adventure seekers in need of an adrenaline fix. Zip lining is no

longer reserved for Central American jungle vacations. Visitors to New York City and other urban areas will soon be able

to experience a high-flying adventure on their lunch break, while shopping, while they wait for the next showing at themovies , or waiting to be seated at their favorite restaurant.

Many people associate zip lining with exotic vacations, but Urban Jungle Zip Lines will make people realize that they

dont have to travel far to experience the unique adrenaline rush you get from zip lining.

Urban Jungle plans on building, operating, managing, andsearching for potential locations for the purpose of buildingzip line attractions in or near urban areas. We will at timesact as location scout for other operations in a revenueshare type agreement. The zip lines we plan to operate are

full-sized 500 to 3000feet+ attractions that will takeadvantage of an existing pedestrian traffic while also actingas a magnet to draw additional pedestrians to an area. Theywill not be anything like the portable, truck pulled childrensrides that zip for about 50 feet and are beginning to get morepopular at fairs and flea markets. We will operate fromrooftops and towers 100 feet high and more in the air and bean absolute THRILL ride, not a carousel. There will be heightand weight limits but the ride is available to the greatmajority of the general population and requires no specialskill.

We plan on operating at existing high density locations suchas NYC and NYS Parks, large regional malls, regional hightraffic vacation areas (Hamptons, Jersey Shore). We havehad discussions with many such areas and have been metwith terrific responses.

With such a small footprint at the takeoff and landing locations, we are in theunique position of being able to operate out of areas that are generally not

revenue producing and turn that into an income stream. Rooftops, storageareas, unused parking areas become high traffic where there was no trafficbefore. Existing operations are not hindered by a zip line because we will zipoverhead. Also, with the height of the towers, the zip line is highly visible andan obvious magnet location.

We can operate in all weather with the exception of thunder and lightning. Wewill operate as often as possible with location being the greatest determining

factor in operating times.

Our biggest startup expense is construction of the zip line attraction itself, costs can vary widely based on a number of factors.

Salaries will be the biggest expense on a monthly basis.

Insurance is readily available and commercial zip lines have a great safety record.

Permits and licensing requirements can vary widely and will be addressed on a case by case basis.

Costs will be significantly offset by photo concessions and sponsorship/advertising opportunities.

We are planning to raise a total of $500,000 for 80% of Urban Jungle.Shares are available @ $6,250 per share. John Finnegan will own 20% before any monetarycontribution and will be purchasing an additional 5% at $31,250.


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ORGANIZATION

The company will be set up as a multiple member limited liability company in the state of New York. A limited

liability company (LLC) is a flexible form of enterprise that blends elements of partnership and corporate

structures. It is a legal form of company that provides limited liability to its owners.

-Choice oftax regime. An LLC can elect to be taxed as a sole

proprietor, partnership, S corporation orC corporation (as long as they

would otherwise qualify for such tax treatment), providing for a great

deal of flexibility.

-A limited liability company with multiple members that elects to be

taxed as partnership may specially allocate the members' distributive

share of income, gain, loss, deduction, or credit via the company

operating agreement on a basis other than the ownership percentage

of each member so long as the rules contained in Treasury Regulation(26 CFR) 1.704-1 are met. S corporations may not specially allocate

profits, losses and other tax items under US tax law.

-Limited liability, meaning that the owners of the LLC, called

members, are protected from some or all liability for acts and debts of

the LLC depending on state shield laws.

-Much less administrative paperwork and record keeping than a

corporation.

-Pass-through taxation (i.e., no double taxation), unless the LLC elects

to be taxed as a C corporation.

-Using default tax classification, profits are taxed personally at the

member level, not at the LLC level.

-LLCs in most states are treated as entities separate from their

members.

-Less risk to be "stolen" by fire-sale acquisitions (more protection

against "hungry" investors).

The general partner is John Finnegan of North Salem, NY.

Mr. Finnegan will act as liaison between the partnership, potential sites, potential

builders and other necessary communications among all groups. Other partners are TBD.
http://en.wikipedia.org/wiki/Entity_classification_electionhttp://en.wikipedia.org/wiki/Sole_proprietorhttp://en.wikipedia.org/wiki/Sole_proprietorhttp://en.wikipedia.org/wiki/Partnershiphttp://en.wikipedia.org/wiki/S_corporationhttp://en.wikipedia.org/wiki/C_corporationhttp://www.gpo.gov/fdsys/pkg/CFR-2010-title26-vol8/pdf/CFR-2010-title26-vol8-sec1-704-1.pdfhttp://www.gpo.gov/fdsys/pkg/CFR-2010-title26-vol8/pdf/CFR-2010-title26-vol8-sec1-704-1.pdfhttp://en.wikipedia.org/wiki/Flow-through_entityhttp://en.wikipedia.org/wiki/Flow-through_entityhttp://en.wikipedia.org/wiki/Double_taxationhttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Investorshttp://en.wikipedia.org/wiki/Investorshttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Double_taxationhttp://en.wikipedia.org/wiki/Flow-through_entityhttp://www.gpo.gov/fdsys/pkg/CFR-2010-title26-vol8/pdf/CFR-2010-title26-vol8-sec1-704-1.pdfhttp://www.gpo.gov/fdsys/pkg/CFR-2010-title26-vol8/pdf/CFR-2010-title26-vol8-sec1-704-1.pdfhttp://en.wikipedia.org/wiki/C_corporationhttp://en.wikipedia.org/wiki/S_corporationhttp://en.wikipedia.org/wiki/Partnershiphttp://en.wikipedia.org/wiki/Sole_proprietorhttp://en.wikipedia.org/wiki/Sole_proprietorhttp://en.wikipedia.org/wiki/Entity_classification_election


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Potential LocationsPositive discussions have taken place with these and other potential locations

Westchesters Ridge Hill1 Ridge Hill Road

Yonkers NY

Westchesters Ridge Hill is the ideal environment for shopping, diningand strolling. The creatively designed destination features an eclecti

mix of boutiques, national retailers, restaurants, and entertainment

venues. Among many others, retailers focusing on outdoor sports

and adventure include REI, Dicks Sporting Goods and Eddie Bauer.

Ridge Hill has 1.3 million square feet of retail space with an

abundance of parking. The developers are looking to use a zip line

attraction to turn the upper levels of the parking structures into

revenue generating space. It is easily accessible from all directions an

convenient to neighborhoods from both the NY State Thruway and

Sprain Brook Parkway.

Bryant Park is one of the signature examples of New York

Citys revival in the 1990s. The park is filled with office workers

on sunny weekdays, city visitors on the weekend and revelers

during the holidays. It is the most densely occupied urban park

in the world and is known as Town Square of Midtown. The

park contains a custom built carousel and revived the tradition

of an open air library, The Reading Room. Both the Bryant Park

Grill and Bryant Park Caf have become popular after work spots.

The park is looking for an attraction for the early spring.

Riverhead, NYis located at the junction of the Wine Country of theNorth Fork and the Hamptons of the South fork on Long Island.

Riverhead is revitalizing downtown with a new Riverwalk and world classshops, restaurants and entertainment. At one end of the riverwalk is the

Atlantis Aquarium and just outside of downtown is Splish Splash Water

Park, Tanger Outlets, and Riverhead Raceway. Riverhead has been

featured recently in both the NY Times and Wall Street Journal as a town

on the way up.


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One Time Start Up Costs Monthly Operating Expenses

Monthly In-active Expenses(these expenses will be duringthe exploratory phase, used towards business development and expert consultations.)

*Building expenses can vary widely. However, we expect construction costs to fall into the middle of this range for most cases.

We will use the highest estimates when executing our breakeven analysis.

**This revenue share expense will vary. We hope that this expense will be higher as it is a function of how many riders we process

each month.

*** This insurance expense will vary. We hope that this expense will be higher as it is a function of how many riders we process each

month

SetUp, Installation &

Construction*Costs can vary dramatically based

On a variety of factors:

Location of towers,

heights of towers, local

physical features of tower

locations, local weather and

many other possible variables.

$75-$200,000

Office FurnitureNot much actual office space is

required. Some storage for

equipment, restroom and rest

area for employees.

$2000

Computer Hardware&

Software & OfficeSupplies

POS equipment and reservationSystems. Paper goods

$5500

Equipment(safety equip-ment, harnesses, trolleys)

$7500

Utilities down payments $500

Legal & acting feesLLC setup, partnership agreeme

general

accounting

$2000

Consulting feesOn site analysis, inspections,

viability assessments by industr

experts

$5000

Licenses & permits $2000

Advertising & promotion $3000

RentKiosk as retail space x 3 months

$3000

Operating Cash $2000

TOTAL $110,500-

$235,500

Owner/Manager

Salary

$8,334

Other salaries $40,000

Payroll Taxes

$5,000

Revenue Share/

Rent**Operations will be setup, not as

a traditional retail rental agree-

ment but as a revenue share agreemen

based on the # of

riders.

$6,000

Advertising $1500Office Supplies/Tele-

Phone/internet/web-

hosting

$1,000

Insurance(Liability&Business)Based on 150 riders/

Day***

$7,000

Health Insurance $2000

Legal & Accting$500

Inspections $500

TOTAL $71,834

Owner/Manager

Salary

$5,000(salary until

opening day of any

new attraction)

Consultations $2,000

TOTAL $7,000


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Revenue Projections:Based on operating hours of Monday through Sunday

11:00 AM 9:00 PM

Ticket Price $20.00

RIDERS/Day Daily Total Weekly Total 30 Day Total Yearly Total

100 $2000 $14,000 $60,000 $720,000

200 $4000 $28,000 $120,000 $1,440,000

500 $10,000 $70,000 $300,000 $3,600,000

Photos15% Capture

@$20

100 $300 $2,100 $9,000 $108,000

200 $600 $4,200 $18,000 $216,000

500 $1500 $10,500 $45,000 $540,000

Sponsorship activities cansubstantially impact cost basis.

We will actively pursue

sponsorship dollars based on the

time frame/location and other

factors.

Opportunities for additional

advertising revenue will be ample.

Launch towers can be as tall as

100ft. and present perfect

placement of highly visible

billboard type ads. Highly visible

advertising space on the safety

helmets will be made available as

well.


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Break Even Analysis

A calculation of the sales volume (in units) required to just cover costs.

Fixed Costs--Cost that do notchange when production orsales levels do change, suchas rent, property tax,insurance, or interestexpense. The fixed costs aresummarized for one month.Details on estimated fixedcosts are found on page xxVariable Cost (Per Unit Cost)The nature of our productleads to virtually nil in variable

costs.

Selling Price (per unit price)--The price that a unit is sold for.Sales Tax is not included theselling price and sales taxespaid is not included as a cost.Our sales price is $20/rideBreak Even Point--The salesvolume (express as units sold)

at which the company breaks even. Profits are $0 at the break even point. The break even point

is calculated by the following formula: Break Even Point = Fixed Costs / (selling price-variablecosts).

Our breakeven point (cover fixed costs) is roughly 3600 units/rides per month at$20/ride, or ONLY 120 rides/day.These figures DO NOT include figures for Photo Concession or possible advertising revenues.

As illustrated earlier, these additional revenues can be dramatic.

Photos

15% Capture@$20 Day Week Month Year

100 $300 $2,100 $9,000 $108,000

200 $600 $4,200 $18,000 $216,000

500 $1500 $10,500 $45,000 $540,000

A 15% capture rate for photos will lead to

BBBRRREEEAAAKKKEEEVVVEEENNN===111000222 RRRIIIDDDEEESSS///DDDAAAYYY


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Sponsorship/Advertising Revenue

Take a look at the pictures about this page. Throughout this

business plan I have consciously avoided talking about the

potential advertising and sponsorship dollars that are representedby companies like these. I wanted the excitement of zip lines in

urban areas to be able to speak for itself as a viable business

concept. I believe that the pages in this business plan have indeed

shown the enormous potential of Urban Jungle.

However, as seen on the left, our launch towers can be over 100

feet tall and are easily wrapped in fabric to provide an incredible

canvas for potential advertisers. Imagine a tower, brightly lit from

within, with crowds of people looking up to see what all the

excitement is all about. This is the kind of exposure advertisers

pay for and potential sponsors want to have their name associated

with.The potential here is enormous and could easily pay all costs and

expenses for a particular project.

*The Red Bull Stratos project is estimated to have cost upto $15 million.

*The average cost to sponsor a NASCAR Team for 1 year is roughly $20 million.

*Naming rights for the new home of the Brooklyn Nets is costing Barclays $400 million over the next 20 years.

The excitement generated by Urban Jungle Zip Lines will undoubtably lead to significant advertising, sponsorship,

and endorsement income.


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ZIP LINE SAFETY

As you visit numerous zip courses around the world, you will see a wide variety ofdesigns and safety practices.

The absolute first rule of zip line safety is to trust the professionals. While any kid with anelementary grasp of gravity and a pulley can make a zip line in his backyard, a professional

accreditation by either the Professional Ropes Course Association (PRCA) or the Associationfor Challenge Course Technology (ACCT) ensures a regulated experience. Both of theseorganizations are now accredited by the American National Standards Institute (ANSI) to

develop industry standards and regulations.

Following every suggestion to ensure accreditation by both PRCA and ACCT, we willalso ensure that the following design, build and safety practices be built in to every project:

Full Body HarnessesA full body harness is best for accommodatingguests who come in all shapes and sizes. If apulley jams or a guest doesnt fully arrive on azip, they may have to hang for a while beforebeing rescued. A full body harness is more

comfortable and supportive and will lessen thepossibility of the harness hang syndrome in along hanging situation where serious medicalproblems can arise from restricting blood flow

(usually in the case of an unconsciousparticipant). A full body harness significantly

increases the safety margin in the caseof staff and guest who might invert and fall out of

a harness due to improper positioning. Anyharness (full body or sit harness) must always

have the waist belt above the iliac crest (hipbones).

Safe Braking Systems.Hand braking is when staff and guests controltheir zip speed with their own hand(s) on the

cable behind the pulley(s). Hand braking is funand typically safe. Unfortunately, the occasionalguest may not do the procedure correctly .There

are various backup techniques being used toaddress this situation and all work extremelywell without the inexperienced guest beinginvolved and risking injury. Also, there are

numerous accident stories out there of peopleshair becoming entangled in the moving pulleywheels because their head and helmet are tooclose to the cable. Hand braking requires thatthe participant be close

enough to the cable toreach it, therefore long hair

is a concern. Ifsomeone is scared and

over grips the cable to slowdown during hand braking,it can result in injury to the

shoulder assembly or acomplete dislocation. Eventhough they are taught notto, sometimes a guest willgrab the cable in front of the moving pulley and

receive lacerations (on an

ungloved hand) to the fingers. To eliminatethese potential problems, our designs will havethe participants hanging well below the pulleys,with mechanical braking systems and redundantoperator controls. These systems use springs,pulleys, counterweights, and bungee cords tostop the rider and make stopping automatic.


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Cable Diameter

The old standard was 3/8 diameter, 7x19strand, GAC, but now, most professional

companies are using diameter or greater. Itis stronger, lasts longer and is more predictable.A cable doesn't catastrophically fail overnight.What we think of as one cable is actually seven

smaller cables wound together, and each ofthose seven cables is actually made up of 19even smaller cables. These smaller filaments

show signs of wear before a line snapssuddenly, staff members will inspect lines daily

for signs of wear.

Lightning ProtectionLightning protection systems should be used onall structures over 30 feet in height. We will use

it to protect the structures, not so much thepeople, they are being lowered to the ground at

the FIRST sign of lightning or thunder.

Annual Safety ReportAnnual Safety Report prepared for in-housesafety management, their insurance companyand available to the public upon request. The

report will include a general narrativesummarizing the safety findings from the year,

as well as, statistics and narratives on NearMisses, Incidents and Accidents. Of course

learning from accidents is critical fororganizational safety management. The goal of

this organization will be ZERO accidents,incidents and near misses. Near misses aresituations that resulted in no injury or a minorinjury, but had the potential and were close to

being a serious accident or fatality. Staffand management can learn the most from nearmisses, because there will probably be many

times more near misses than accidents IF staffare required to report them. There will be a

climate of openness so staff are not afraid toadmit their mistakes. This openness,

professionalism and willingness to report safetyincidents will be one of the greatest

characteristics of a well run, safe, high qualityorganization, along withthe organizations willingness to share theirlearnings with their insurance company, the

industry and the public.

Two Attachment PointsTHE HUMAN ERROR FACTOR (HEF). TheHEF can expose itself in many ways. We, as

designers, builders and trainers, must behyper-vigilant to insure that we are using the

very best practices in terms of:1. Staff selection and training

2. Staff manuals with crystal clear policies andprocedures

3. Emergency preparedness4. Ongoing refresher trainings and course

inspections5. Accident/incident analysis and reporting

The worst possible human error on a zip linecanopy tour or zip adventure

park would be for a staff member to incorrectlyornot attach the guest to the safety cable or zipcable resulting in serious injury or death. Sadly,there are stories of this occurring. We believe

that everyone, guides and guests,should be attached to the safety or zip cable

with two independent attachment pointsoriginating from two distinct and separate places

on the full body harness, so that if oneattachment fails (or is not clipped on), the other

still serves as a primary life support point. This is

very important to us. By implementing this safetypolicy we have doubled our chances for insuringthat guides and guests are safely attached to a

cable.


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Zip Line Insurance

Zip line insurance is readily available in every state and is offered by carriers thatspecialize in Outdoor Recreation Insurance.

Accidents by zip line are statistically very rare when compared to

other types of accidents. Certain other types of sports, such as

football, basketball, hockey etc. have a higher probability of

being injured statistically, and the primary cause of injury is

heart attack. The majority of other types of accidents or death

caused by zip lines occur when the zip lines are homemade or

when the zip line has not been properly maintained.

All riders/guardians will be required to sign a release andgeneral waiver of liability.

Most insurance companies will require an experienced operator, someone who has been doing it long enoughto give you the necessary training to keep you safe during the ride. Other requirements are all of the necessary safetygear, which may include a helmet, harness, gloves, goggles, pads, and more. Accurate records that can prove regularmaintenance to maintain the integrity and safety of the lines and yearly inspections by the insurance carrier are generalrequirements.

Zip line insurance programs have the ability to include coverage for your Liability, Property, and all your elements, outbuildings,equipment & Workers Compensation. All protection benefits are on very comprehensive forms.

Zip Line Insurance Highlights:

General Liability

Excess/Umbrella - up to $30 Million Limits Available

Property Insurance: Course, Elements, Inventory, Outbuildings, etc.

Workers Compensation

Available in All States

Insurance cost is based on how many people use the zip lines. Basic coverage with $1million liability is in the area of

$1.25/per ride. Additional insurance costs can be passed along to ridership or shared with the property owner.


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OWNERSHIP/INVESTMENT

-Urban Jungle Zip Lines will be selling shares in up to 80% of the company and raising $500,000.

-These funds should be more than enough to build 1-4 zip line attractions.

-This does not include operating costs that will begin upon opening an attraction but we believe that the excitement

generated by such attractions, combined with the existing foot traffic that exists at our envisioned locations, will allow

us to exceed monthly operating expenses and generate positive cash flow immediately.

80% of URBAN JUNGLE Zip Lines = $500,000

1% 0f URBAN JUNGLE Zip Lines = $6250

The Operating Agreement for Urban Jungle Zip Lines willspell out in more detail each members rights and

responsibilitieswith regards to profits, losses, distribution and financial issues..

For financial accounting and tax purposes the Company's netprofits or net losses shall be determined on an

annual basis and shall be allocated to the Members inproportion to each Member's relative capital interest in the

Company.

The Members shall determine and distribute available funds annually

or at more frequent intervals as they see fit. Availablefunds shall mean the net cash of the Company available after

appropriate provision for expenses and liabilities, as determined bythe Managers.


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urban jungle business plan 10-29-12

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