Advernture Park Business Plan

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@2009- Princeton Commercial Holdings
All rights reserves – May not be reproduced, published or transmitted.
Confidentiality Clause
The undersigned acknowledges that the information provided by X YZ Corp, is confidential and therefore agrees not
to disclose it without the written consent of X YZ Corp. Upon request, this document is to be immediately returned to
and no copy kept.
I understand that the attached document is a business plan and not an offering of securities.
____________________
Signature
____________________
Name
_____________________
Date

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Business PlanBusiness PlanBusiness PlanBusiness Plan
All logos removed
X YZ Corp - Business Plan © 2009

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Table ofTable ofTable ofTable of CCCContentontentontentontentssss::::
Executive Summary 4
Business Overview 7
o Business Objectives 7
Business Description 8
SWOT Analysis 10
Business Planning 11
o Operation plan 11
Management Plan 14
Business Structure 16
Marketing Plan & Analysis 17
o Market Research 17
o Target markets 20
o Marketing Plan 20
Financial Plan 22
o Projected Sales 22
o Costs 24
o Projected Costs 24
Financial Analysis 27
Appendices 31
o Appendix 1: References 31
o Appendix 2: Management… 32
o Appendix 3: Cash Flows 36
o Appendix4: Assumptions 40

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Closing balance at the end of the year
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Executive SummaryExecutive SummaryExecutive SummaryExecutive Summary
Project Summary:
X YZ is an exciting eco adventure park situated on 93 acres1 in X Pena,
in a beautiful cloud forest in Panama. It is proposed to offer a wide
range of attractions and facilities which include horseback riding,
mountain trail hiking, bird watching, camping, zip line canopy tour and
many other attractions.
The project will concentrate on eco tourism and we will include
educational and entertaining tourism where visitors to the park will
learn about the local area, its customs and traditions and we will
combine learning with adventure and fun.
It is proposed to build these facilities together with rustic cabins, a
rustic lodge and a a shop to sell souvenirs as well as food and
drinks.
The project has tremendous potential, especially with the strong growth of Eco tourism, the construction of new roads
and pipelines and the proximity to tourist traffic and major tourist centers since there are no similar attractions in the
area.
The owners of the business are experienced in running businesses, especially in the construction and tourism
industries and plan to take advantage of their leadership abilities and extensive experience in the industry to build up
the business. The project will be marketed vigorously; including promotion on the internet and through tour operators
in the nearby tourist centers.
Financial Summary:
The financial projections which are based on a comprehensive
market research, detailed exploration of the requirements and a
detailed study of the construction needs of the project show the
tremendous potential of the project.
Capital requirement:
The owners have already injected in the project a capital of just over
$110,000 and the financial projections show that a further
capital of $350,000 is needed to enable the construction of the
various facilities which will result in a significant increase in the
company’s sales, activity and profitability.
1
37 Hectares

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S ales
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Profit (pre-tax)
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Following a capital injection of $350,000, the projected closing balance show a positive figure “all way long”, which
confirms that no further funds would be required and that the project is then self supportive.
The projected sales which are based on the market research and analysis and the marketing plan and are as follows:
The projections reveal that with the proposed expansion, the construction of the various facilities and the
setting up of the various activities, the operation of X YZ Adventure Park is projected to show the following
return:
Projected return
The projections also show that the profit margin is around 16% in the first year, increasing significantly in the second
and third years and reaching 50% in the 4th and 5th years.
Projected Sales summary
Year1 $251,400
Year 2 $352,800
Year 3 $500,719
Year 4 $610,969
Year 5 $824,250
Average $508,028
Project returns Year1 Year 2 Year 3 Year 4 Year 5 Average
Yearly pre-tax profit ($) $39,183 $116,776 $224,236 $303,036 $462,338 $229,113
% Yearly pre-tax profit Margin 15.59% 33.10% 44.78% 49.60% 56.09% 39.83%
% Total pre-tax return on investment
( initial capital employed)
8.68% 25.86% 49.66% 67.12% 102.40% 50.74%

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ROI Return On Inves tment
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Year 1 2 3 4 5
On the other hand, the return on investment while low in the
first year, it increases substantially in subsequent years
averaging 50% a year in the first 5 years.
Worst case scenario analysis has shown that the project can
easily withstand a 20% reduction in sales with minimal
effect on capital requirements and profitability.
Business targets and budgets have been set and will be
monitored on a regular basis to ensure a successful
project.
Conclusion:
The owners are in an excellent position to take advantage of the growth in eco tourism as they have purchased a
piece of land which is ideal for the development of an eco adventure park in a location which has great potential as:
there are no similar attractions in the area
it is close to major tourist centers
the construction of a new major road is planned in the area
existing tourist traffic
major new pipelines bring in a large number of US and Canadian employees
Market research and financial analysis both confirm the tremendous potential of the project and show that a capital
injection of $350,000 will enable the project to offer facilities and attractions that will provide excellent return on
investment by enabling the company to generate attractive cash flow and profits.

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Business OverviewBusiness OverviewBusiness OverviewBusiness Overview
The owners have acquired 93 acres (37 hectares) of land in a forest in one of the most beautiful spots in Panama
and plan to develop into an eco adventure park with a large number of attractions, activities and facilities.
It is proposed to start the construction of these facilities as soon as possible and open the park by the end of the
second quarter of 2009.
Business ObjectivesBusiness ObjectivesBusiness ObjectivesBusiness Objectives
Mission:
To provide a top quality eco friendly tourism experience with an emphasis on sharing interesting aspects of
Panama’s bio-diversity and the creation of a new tourist destination while offering additional employment
opportunities for the area and preserving this cloud forest for the future.
Vision:
Make X YZ adventure Park one of the best adventure parks in the region through providing exceptional
facilities and a unique and fascinating experience.
Conserve nature and help the local population
Offer a friendly and helpful service
Allow people of all ages and corners of life to enjoy nature and learn about the local history, culture and
traditions while having fun.
Provide an environment benefits all those involved including the native population, volunteers, and our
visitors.
Make X YZ one of the most famous eco adventure parks in the whole region.
Business goals:
Completion of the construction work on budget and construction of the adventure park as specified
Effective promotion of the park
Setting up an effective operation
To be open and be operational before the 2009 season
Meeting the sales targets which are:
Projected Sales Year1 Year 2 Year 3 Year 4 Year 5 Average
Summary $251,400 $352,800 $500,719 $610,969 $824,250 $508,028
Meeting the profit targets which are:

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BusinessBusinessBusinessBusiness DDDDescriptionescriptionescriptionescription
X YZ is an eco adventure park located in X Pena in the western part of Panama, 8 Km from Chiriqui Grande, close to
the popular islands of Bocas Del Toro and about 140 Km from the main city of David.
X Pena is located in the Bocas Del Toro Province, a village consisting of about 1000 people in the lowlands of the
Cordillera mountain range. The area is charming and peaceful unspoiled countryside
X YZ has 93 acres2 of land, with lots of vegetation and is located in a cloud forest rich in wildlife. It has two lovely
streams and is the ideal place for eco adventure and the nature lovers. The land has been purchased for a sum of
$158,000.
2
37 Hectares

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X YZ has a beautiful cloud forest, a wide range of vegetation and
interesting species of birds. A consulting biologist has confirmed that
the property has the desired bird species.
We’re planning to open the park for eco tourism where our visitors can
explore the natural, cultural and historical resources of the locality. We
are proposing to offer activities and facilities that are very appealing to
potential ecotourists from all over the globe.
At X YZ Adventure Park, we will be offering for the adventure seekers
an interesting and unique combination of eco tourism and exciting attractions to allow our visitors to learn about the
country’s ecology, history and traditions. As we are concentrating on eco tourism, we will include educational and
entertaining tourism where visitors to the park will learn about the Ngobe Bugle Indians and sustainable living
practices and we may also offer various other activities such as brief courses in making crafts.
We aim to combine learning with adventure and fun so we will also offer thrilling activities which include:
Horseback riding
Mountain trail hiking
Bird watching
Camping
Zip line canopy tour
Further more we proposing to build:
Rustic cabins
Rustic lodge with a souvenir shopwhich will offer for sale the following items:
Interesting and original native crafts
CD’s of the experience, T-shirts, hats
Snacks, drinks and grilled food
Future expansion:
Later on it is proposed to expand the facilities and offer additional attractions such as the Alpine slide which will be
the first one in the region.

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Business PlanningBusiness PlanningBusiness PlanningBusiness Planning
Operation PlanOperation PlanOperation PlanOperation Plan
We propose to first offer horseback riding, mountain trail hiking, bird watching, camping, zip line canopy tour, and
educational and entertaining tourism as these are attractive and thrilling activities that can be offered with a minimal
initial outlay. By the zip lines, paths and buying the
necessary equipment we will be able to offer all of these
activities.
The vision and the people:
This park will be built primarily with manual labor of the
indigenous work force. We want to include them in all
aspects of the project because not only are they an
inexpensive labor force but also because they have skills that
can be used in the building of this type of project from the trails
and thatched roof cabanas to the bridges and a good
knowledge of the natural local building material. We intend to
offer a showcase of their work as an aspect of the project and as
a point of interest to our target market so visitors to the park
will learn more about the locals, their customs and
traditions.
The Ngobe Bugle Indians are very happy to work in the park to make the area more prosperous and to assist in
building something they can be proud of and that will bear their name for the future. They’ve never had this
opportunity in the past and during their initial efforts in making the initial trails they have shown that they are very
keen to be included.
Because the Ngobe Bugle Indigenous people are the primary builders of the project we intend to feature their efforts
through photography and informational plaques throughout the project and on the side of the pathways. Additionally
we are looking to keep four of them on a permanent basis for maintaining the property and the horses.
We are also aiming to provide some interaction with the tourists about the efforts of the natives by working with
sustainable living volunteers we hope to be able to train and encourage these practices and aid the Ngobe Bugle in
their efforts for survival.
We are in the process of finding volunteers such as agriculture degree university students or people that are looking
for voluntourism to help build the paths, cabanas and gardens and who will work alongside the Ngobe Bugle. This
way they will learn from each other since the Ngobe Bugle have the local knowledge but they don’t have the concept
of sustainable living or sustainable farming practices. One of the projects will be to plant the existing part of the land
that has been previously farmed, share the food, and teach the locals how to do this for themselves. We will
coordinate with the natives to promote their culture through our project and sell the crafts that they create.

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The company has already been in contact with a few organizations that offer voluntourism where people will come
and help out for free just to enjoy the experience and it is expected to be able to get free and qualified help to teach
sustainable farming practices to the natives who will be working in the park. It is much needed and will work well as it
will benefit everyone across the board.
This part of the project will be another attraction that’s available for all to see and it will be well documented as it
would be most interesting for the visitors to see how the natives have acquired the skills of sustainable farming while
the volunteers have learned about their customs, traditions and local culture.
Up-to date progress:
More than 2 Kilometers of trails have been completed so far and that includes 9 bridges with handrails and numerous
sitting areas for visitors to rest and enjoy nature. The local youth in the area are already vying for job opportunities as
they are aware of the project through the company’s preliminary promotions and management participation in their
English class at the local school. The local secondary agriculture school has already agreed to help with planting the
previously cleared areas with vegetables and trees that will attract even more wildlife and birds.

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Target: To open and be operational by next years’ season starting in October 2009.
Pictures showing progress
Management PlanManagement PlanManagement PlanManagement Plan
We have an experienced management team to
successfully build and run the park.
Owners:
YZ X
YZ X has many years of services and tourism business experience. She has worked in Florida in resort areas for the
past 30 years. While a district manager supervising multiple stores for 14 years, she has hired and trained thousands

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of employees and was responsible for the daily supervision of more than 100 employees at a time including her
management team. She held a real estate license in Florida and worked in real estate sales for 12 years as an
independent contractor requiring the managing her own business and team including all aspects of marketing and
customer service. She worked for 12 years in different aspects of the restaurant business
During all of her years of work and training, she has been customer service orientated and has always worked
independently. She is an organized self starter and creative problem solver. All of her past experiences, training, and
skills will perfectly fit this business as her experience enables her to be very well equipped to organize and manage
the business, the workers and effectively deal with the customers.
In 2007 she invested in the X YZ property in Panama and in January 2008 she permanently moved to Panama.
X YZ
X YZ was raised in a US Naval Officer’s family and traveled extensively as a child. He was educated in many
different places and his travels have taught him the ability to easily connect with people of different cultures.
X YZ owned and operated his own construction companies for 30 years including a homebuilding company, a
remodeling company and a cabinet shop. He supervised crews of 25 people or more and was responsible for all
aspects of running his business including but not limited to marketing, construction bids, purchasing of supplies and
profitability. He specialized in single family home construction and commercial construction. He holds State Licenses
in both Virginia and Florida and he was able to successfully adjust his business as necessary to market demands
during changing economic climates. He has a great ability to supervise and motivate employees to great productivity.
His management style effectively motivates employees to reach the goals of the company and ensures success of
his team as well as the business.
In 2007 he invested in the X YZ property in Panama and in January 2008 he permanently moved to Panama.
Other members of the team:
We have a bilingual foreman and interpreter with many years of related experience including the supervision
of construction projects.
We have a consultant that is a specialist in canopy tours to help with the planning and construction of the zip
lines.
Professional Consultants:
All of our consultants are bilingual. (Removed)
Attorney:
Accountant:
Biologist:
Marketing: Print and website expert:
Insurance broker:
Management control
Internal Control: All checks will only be signed by YZ or X.
We will have a very small inventory which will be closely monitored and checked on a monthly basis.

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All sales will go through a computerized cash register in 2 locations and each register will be handled by
only one trained cashier / salesperson. Bonuses will be given for no shrinkage.

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Business Structure,Business Structure,Business Structure,Business Structure, Ownership and LOwnership and LOwnership and LOwnership and Licensingicensingicensingicensing
At this point in time we have the property in our other corporation X Group SA. We are planning to setup a new
corporation in Panama to be called: X YZ Corp and transfer the property to it. This process is inexpensive and
expected to only take a few days. The corporation in Panama is the most common and easiest way to establish a
business. It affords enough protection for the purpose of our project and is easily transferred upon a sale. It is
planned that YZ X will be President and X YZ will be secretary, Noelis Lopez our attorney will act as our treasurer.
Licensing:
X YZ Eco Adventure and Canopy Tour licensing and permits:
The following licenses and permits will be obtained as advised by Attorney Noelis Lopez De Sousa David, Panama:
A commercial license to operate a tourism business including restaurant, horseback riding, canopy tour, cabanas,
camping and souvenirs together with permission form ANAM (Autoridad Nacional del ambiante – National authority
for the environment) for the project Permit for the clubhouse, cabanas and restaurant.
Insurance:
Adequate liability and hazard insurance will be arranged and personal release forms will be required for all park
visitors.

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MarketingMarketingMarketingMarketing PPPPlan & Analysislan & Analysislan & Analysislan & Analysis
Market ResearchMarket ResearchMarket ResearchMarket Research
Ecotourism
Statistics show that demand for ecotourism has surged all over the world. Children, teens and adults of all ages and
backgrounds would rather be out in the wilderness experiencing something really amazing and adventurous rather
than being amongst a group of tourists following a tour guide around an indoor museum.
Research by the World Tourism Board, TIA3 and the International Ecotourism Society into the demand for ecotourism
parks has revealed the following:
Over 50% of U.S. tourists that were surveyed agreed that they enjoy their travel experience more when they
learn as much as they can about their destination’s history, culture, geography and traditions.
Nearly 65% of British tourists that were surveyed said they always request information on the ethical issues
linked with their holidays and 37% said they try to learn a little about the culture before traveling.
Nearly 80% of British tourists that were surveyed indicated that they found the addition of any environmental
and social information in a tour operator’s brochure to be very important.
A little over 80% of Dutch tourists all agreed that incorporating environmental information into travel leaflets
and flyers is important and necessary.
Over 50% of U.S. tourists that were surveyed indicated that they sought destinations that encompass a wide
variety of culture and art.
About 75% of British and Australian tourists admitted that they preferred to see local faces than those of
other tourists when traveling.
More than 80% of British tourists that were surveyed agreed that their travel experiences should include an
insight to that destination’s local culture and food.
Just under 90% of British tourists that were surveyed indicated that it was “very important” the environment
was not damaged as a result of their vacation.
Over 42% of German tourists that were surveyed stated that it was very important for them to find eco-
friendly accommodations when on holiday.
About 58 million U.S. tourists (that’s 38% of all U.S. tourists) are willing to pay more when it comes to
dealing with travel agencies in order to preserve and protect the environment.
Voluntourism
With the same token, voluntourism has also gained popularity over the last few years. According to TIA more than 55
million AmXans have participated in a volunteer vacation, and about 100 million more are considering taking one.
The latest data available indicates that the volunteer tourism trend is only getting stronger. The percentage of
travelers planning to volunteer during vacations in 2007 nearly doubled from the previous year, jumping from 6
percent to 11 in the latest statistics.
Tourism in Panama
The tourism industry in Panama is in its infancy but it is growing in leaps and bounds. According to the Panama
Tourist Board the number of tourists and tourist revenue has increased significantly over the last few years with
average expenditure per tourist per day also increasing as shown in the following graphs.
3
The Travel Industry Association of America

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The recent addition of KLM flights from Amsterdam to Panama is another sign of the increasing tourist numbers. It is
estimated each tourist visiting Panama spends a total of approximately $1,500- $2,000 dollars per trip. The number
of tourists coming to Panama continues to increase. From January through April 2008 some 554,126 tourists have
arrived, according to statistics provided by the Panamanian Tourism Institute (IPAT.) During the same period last
year 507,920 tourists had arrived (reflecting an increase of about 9% over last year.) According to the IPAT report
370,806 tourists came in by air, 42,113 via ground routes, and 141,207 by sea. Those who visit the country come to
conduct business, shop, or to tour the country and beaches. It is estimated that the average tourist spends six or
seven days in the country. Last year in 2007 more than 1.4 million tourists visited the country spending more than
$1.7 billion dollars, according to IPAT data.
Furthermore, the timing is right for an eco tourism business as the Panamanian government is beginning to
understand the importance of sustainable tourism as evidenced by recent reports from the ministry of tourism.
Tourism has doubled since 1997 and the majority of these tourists come to Panama for recreation. The government
supports increases in tourism and the positive effects it has on communities by creating jobs and infusing capital
especially into the rural areas.

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Demand in the area:
In addition to the above, the Provinces of Chiriqui and Bocas are tapping into the tourism market due to their
proximity to Costa Rica and the fact that the area is more natural and pristine than much of the rest of the country
and as the forests remain intact. The designation of the David as an International Airport is further evidence of the
additional tourist traffic that must pass through the area.
The most popular tourist destinations in the Chiriqui area are the towns of Boquete and Cerro Punto, both on the
flanks of Volcan Baru. They are situated in high mountain valleys with a temperate climate. X YZ is within easy
driving distance from these main attractions and strategically located about 140 km from the international airport in
David. Furthermore, 90% of people who travel by road from anywhere in Panama or Costa Rica will pass in the area
to go to Almirante to take the water taxi to Bocas. They also must pass through when they go to to Changuinola
(about 60 km away) and Chiriqui Grande (8 Km from X YZ) which is also the new planned location of a branch of the
water taxi to Bocas.
Since no other attractions in the Bocas area offer the canopy tour we will be easily able to attract tourists who can
arrive by bus or car having enjoyed the trip over the mountain range and on the way to Bocas Islands as these
visitors will have limited recreational activities available other than X YZ.
In addition this year PTP is building a three year project adding 2 additional gas pipelines running from Chiriqui
Grande to Puerto Armuelles. The town of Chiriqui Grande will be home to as many as 3,000 mostly U.S. and
Canadian employees who will come to work on the new pipelines. This will also greatly benefit the X YZ project as it
creates at its doorstep an additional audience of well paid pipeline employees with expendable income and very few
ways to spend it.
This growth of the number of visitors is expected to be exponential due to the eventual opening of the planned road
between Colon and Chiriqui Grande and the construction of the two additional pipeline projects.
It is considered that the increase in the number of potential customers from the new roads and pipelines will more
than offset the possible reduction in the number of tourists due to the global recession.

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Target MarketsTarget MarketsTarget MarketsTarget Markets
Ecotourists differ greatly from the traditional tourists, they are a lot more caring and passionate towards the
environment, and they are longing for knowledge and craving for adventure and an exceptional experience.
Ecotourists are looking for a sense of pragmatism, rather than the typical holiday lying on the beach or a day at a
museum. They are searching for adventures and some are even hoping to come across some physical challenges
along the way.
Our customer base will be travelers who seek to understand the beauty of Panama while fulfilling their need for
excitement. Our target age group of adventurers will primarily be adults (age 25 to 45) and of bird watchers typically
high income earners (age 45 to 65).
Our target market will be primarily tourists coming from the USA, Europe and Canada and we will also tap into the
flourishing eco tourism industry in neighboring Costa Rica through various tour companies and the internet.
Marketing PlanMarketing PlanMarketing PlanMarketing Plan
As the adventure park is aimed at bird watchers and nature
lovers as well as at those looking for adventure and
excitement, all advertising and marketing of the park will focus
on these benefits and the various attractions, activities and
facilities.
We intend to market and promote X YZ Eco Adventure Park
and Canopy Tour through the following channels:
Direct contacts in the tourist industry
Promoting the park through various tour
companies
Participation and cooperation with tour agencies
Local promotions
Local magazines
International as well as local travel guides
Word of mouth: Word of mouth is the best form of advertising and will work well for us as we will provide an
excellent service and a most enjoyable experience so our customers will spread the word and encourage
their friends and family to visit the park.
Branding: X YZ Logo and brochure have been professionally created by our advertising specialist in Tampa
Florida. The logo will be put on everything from our vehicles to business cards, hats t-shirts, tour guides
uniforms and will be immediately recognizable. Our X YZ Eco Adventure Park logo will be on everything we
sell, drive or give away. We will brand our logo from day one.
Emphasizing ecotourism and interaction with the local community:
• Our marketing campaign will feature the building efforts of the Ngobe Bugle people as an integral
part of the tour and the gift shop will offer for sale crafts made by the Ngobe Bugle Indians. It is
certainly good marketing to show how voluntourism and the natives learn from each other and help
each other out.
• We are also coordinating with the local agricultural school for re-planting an area of the project that
has been previously cleared for farming and we will promote this involvement in the community to
build goodwill and as part of our overall marketing strategy.

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Pipeline employees: Promote X YZ among the 3,000 mostly U.S. and Canadian employees who will come
to work on the new pipelines.
Promotion of the adventure as a day trip from Boquete which is already a busy tourist destination.
Birding:
Our consulting biologist informed us that the property has the desired birds and assures us that he will be
able to bring clients with his birding company to X YZ. He has given us direction on the paths and trails and
preferences of the typical birder. This activity will greatly appeal to those who are middle aged and above
average income yet adventurous and we have planned it accordingly. We also have access to a village in
the area that has Harpy Eagles so we will work to promote the native culture as well as the birding and offer
this activity in a package visit to our adventure.
Signage:
We will have roadside signage and a billboard on the Pan AmXan Highway.
Local flyers:
We will post flyers about our adventure in hotels, restaurants in Bocas, David, Santiago, Boquete and
Panama City, and at the airport in David.
Local promotion:
Commissions will be paid to other tourist related businesses that refer new customers to X YZ. We will send
information out and invite professional tour agents, birding guides and agents/owners of local newspapers to
come for a free visit to see our project as soon as completed. Papers we will invite include: La Prensa,
Bocas Breezes, Bajareque Times. We will also extend the same invitation to Travel Guides such as
Frommer’s Lonely Planet and Bradt. We will also attempt to get coverage from a local TV station or travel
channel.
Internet marketing:
We will carry out internet advertising and banner advertising with International travel sites. We will set up a
top quality website and send links to anyone in a tourism related business that can help us promote our
project. Our new website will be XYZ.com.
We will also network with anyone who has a tour related company. Links to our site will be posted with all
professional organizations whenever possible including IPAT (Panama Tourist Board), AMCHAM (The
AmXan Chamber of Commerce & Industry in Panama) and similar organizations. Articles will be written and
forwarded to online news papers and blogs about the new “world famous” X YZ Adventure Park. We will
make use of video sites to show clips of the adventure to attract a diverse group of potential clients. We will
offer an e-commerce solution where customers and tour providers can make and confirm bookings through
our own website. We will collect names and email addresses via our website and plan to maintain contact
with existing potential customers through an email database and links to our blog and website which is
updated regularly. Our current blog http://lifeisgoodpanama.blogspot.com/ features photos and progress on
the project and is sent regularly to about 150 people – we will expand this continuously and link it to our
website. We will also provide an opportunity for customers to leave comments on the site/blog.
Commission and Promotion incentives:
It is proposed to organize special events, offer special packages for large groups and during the off-season
as well as commission and promotion incentives to package tours operators who will bring in groups of
tourists.
We are confident that our combination of a top quality eco tourism experience, community involvement, excellent
customer service and branding of our X YZ Eco Adventure Park and Canopy Tour will greatly help the marketing
promotion of X YZ.

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Financial PlanFinancial PlanFinancial PlanFinancial Plan
Projected SalesProjected SalesProjected SalesProjected Sales
The projected sales have been estimated based on the continuous increase in the number of tourists visiting Panama
as outlined above, increased demand for ecotourism, together with a comprehensive market research and analysis,
evaluation of the competition and observation of their traffic, web research and trend studies, tourist traffic counts in
the area, discussions with tour operators and tourism business owners in Boquete and surrounding area.
With the proposed marketing plan, we expect a growth in sales of 20% to 25% a year as the adventure park
becomes more established. All projections have been kept low for the first 6 months to allow time for sales to pick up
and the promotion to take effect.
Studies have shown that this type of adventure tourism has been extremely popular in neighboring Costa Rica. In
the town of El Valle, Panama, there is a zip line tour with only 4 short runs and the in the off season our research
has shown they get an average of 10 people a day at $55 each and in season the numbers average around 100 per
day.
Bearing in mind the above, the number of visitors to our competitors, the amount of tourist traffic in the area and the
proposed marketing and advertising as per the marketing plan, it is reasonable to predict an average of 30 to 50
visitors a day once the park is established, i.e. 900 to 1,500 visitors a month with higher numbers in the peak season.
To be conservative and to allow plenty of time for YZ X to build up and get known and become established, we have
reduced our projected sales to the following figures:
Research has also shown that the most important and profitable aspect of the project is the canopy tour. Prices
range from $40 - $90 per person in Panama and Costa Rica for these tours. There are only currently 4 canopy tours
in Panama and none in the Bocas Del Toro area. El Valle has the famous El Chorro Macho Canopy Adventure which
in season has a waiting line.
The Boquete Tree Trek is new and is doing very well and so are the Canopy Rio Pedras, Colon and the Melia
Panama Canal Canopy Tour over Gatun Lake.
4
Rounded off to the nearest 50
Year
Average Number of visitors per
day
Average Number of visitors per
month4
Year 1 5-10 150-300
Year 2 10-13 300-400
Year 3 13-17 400-500
Year 4 17-20 500-600
Year 5 20-23 600-700

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Based on the above and the pricing of the competition and although no one will be offering activities, attractions and
facilities exactly like ours, we propose to charge $65/person to cover the majority of the activities at X YZ, including,
mountain trail hiking, bird watching, camping, zip line canopy tour, and educational and entertaining tourism tours
and activities. This is a very competitive price bearing in mind that competitors in Panama and neighboring Costa
Rica charge $40 - $90 per person just for the canopy tour.
We have projected the following charge per person:
We do not propose any seasonal adjustment to the prices or the number of visitors although we expect the off
season to be slower, we will promote through special events and promotion incentives in the off season to keep up
the revenue.
Furthermore tourists coming in the off-season are expected to pay the same prices as once in the area they will have
limited recreational activities available other than X YZ.
Extras will be horse back riding, guided birding, DVD’s of the experience, souvenirs and of course food drink and
lodging in the rustic cabanas which is expected to be very popular. For these extras, we anticipate an average
expenditure of $20 to $30 per person based on the figures achieved by our competition.
Again we have reduced our projections to be more conservative and we are planning the following extra charges per
person:
Year Charge / person
Year 1 $15.00
Year 2 $15.00
Year 3 $17.50
Year 4 $17.50
Year 5 $20.00
Cabana rental is projected at 5% of sales in the first 2 years and should be increasing thereafter as the park
becomes established. We have not allowed for any increase in the projections and kept the percentage at 5% over
the 5 year period.
Year Charge / person
Year 1 $65.00
Year 2 $65.00
Year 3 $70.00
Year 4 $70.00
Year 5 $80.00

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CostsCostsCostsCosts
Expenditure to date:
Capital cost balance of the purchase of the land: $ 58,000
Legal, consultancy $ 7,000
Survey $ 3,000
Work progress to date:
Clearing of previously farmed area $ 3,000
Over 2 km of trail and bridges $ 7,000
Importing tools including a van and a trailer $ 11,000
Other expenditure including cost of trips to find
the property, travel, lodging, search cost,
and miscellaneous $ 23,000
Total expenditure to date: $112,000
Projected CoProjected CoProjected CoProjected Costsstsstssts
Pre-opening costs (6 months period):
Start-up expenses:
Capital expenditure:
Computer and Communications equipment
Walkie Talkies for communication around the mountain 10 total cost $ 1,000
Telephones 3 Cellular phones and one land phone and combination
copier, printer scanner and fax $ 1,000
Computers: 2 computers, one desktop and one laptop total cost of $ 3,000
Harnesses and other Equipment $ 5,000
10 horses and their tack $ 6,000
1 x 4 wheel drive vehicle used $15,000
Total $31,000
Other expenditure:
Insurance: Liability and hazard for property and all buildings and
auto insurance $1,500
Material for the educational and entertaining tourism: $2,000
Postage and stationary $ 500
Travelling and Motor Expenses, telephone and communication
expenses $4,000
Professional fees $3,000
Food and other miscellaneous expenditure $5,000
Total $16,000
Total start-up expenses $47,000
_____________________________________________________________________________________________________________________________________________________________________________________________

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Utilities (Water and electricity):
Equipment to produce the power from the stream
and maintenance of the water wells $ 10,000
Construction costs:
Construction materials cost
Trails and paths throughout the property and 4 wheel drive road
and paddock for horses $ 25,000
Building a rustic lodge, 3 cabanas
3 x cabanas at $5,000 each (materials) $15,000
The lodge5 $20,000
Sub-total $ 35,000
Electric, plumbing, and appliances $ 10,000
Canopy tour total 6 $ 25,000
Materials Total $ 95,000
_____________________________________________________________________________________________________________________________________________________________________________________________
Direct labor costs7:
Total labor cost over the 6 months construction period: $ 28,800
Staff & Management salaries:
Management salaries (over the 6 month start–up period) $ 10,000
Salaries for other members of staff:
• 6 guides in training for one months $ 2,400
• Translator/expeditor at $325 / month for 6 months $ 1,950
$ 4,350
Marketing and promotion costs:
Initial budget for Advertising and Promotion Plans $10,000
Marketing consultation $ 5,000
Website and blog $ 2,500
Total $17,500
_____________________________________________________________________________________________________________________________________________________________________________________________
Inventory:
Start-up inventory:
CD’s, T-shirts, hats, food and drinks, original native crafts,
welcome center items and souvenirs $ 8,000
5
The shop will be located in the lodge as will the office. This takes into account that much of the material for the
construction of all will be used from trees on the property that have previously fallen.
6
Including the cost of a US consultant
7
The cost of labor per day for the construction phase is $1.50 per hour per employee for 8 hours or $12 per day per
employee, add in food and it now costs $13 x 12 employees = $156 per day.

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Expenditure $
Capital Expenditure Balance of the property purchase price 100,000
Start-up expenses – Capital expenditure 31,000
Start-up expenses – Other expenditure 16,000
Utilities 10,000
Construction Materials 95,000
Direct labor cost 28,800
Management salaries 10,000
Staff Salaries 4,350
Marketing & Promotion 17,500
Admin and overhead expenditure 6,000
Inventory 8,000
GRAND TOTAL 326,650
Running costs:
Maintenance:
Construction materials for maintenance / month: $ 1,000
4 permanent maintenance workers $80 per week per person / month8: $ 1,386
Staff
Management salaries / month: $ 1,650
Payroll Staff 6 bi-lingual people at $100 per week each / month: $ 2,600
Marketing
Web marketing / month9: $ 833
Other promotion and marketing as per the marketing plan / month: $1,000
Overhead and other admin costs10 / month: $ 2,000
Commission and Promotion incentives:
8 Total of $16,640 per year
9 The web marketing of the project will be handled by our web designer and brochure designer and we anticipate a cost of $10,000 per year.
This includes hours for internet input, brochures and website maintenance.
10 Includes: vehicle maintenance, insurance, transport, postage and stationary, telephones, food and internet access

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Incentives and commission can reach as much as 30% of the relevant sales, but only applies a percentage of total
sales. We estimate that they apply to about 40% of all sales and average about 25%, so the overall cost is 25% of
40%, i.e. 10% of all sales.
The above costs are the average costs. The projected costs are lower in the initial months and higher after the 3rd
year onwards as the park gets busier.
From the above the average monthly running costs are:
Running Costs / month $
Maintenance materials 1,000
Maintenance workers 1,386
Management 1,650
Staff salaries 2,600
Marketing and promotion (including web) 1,833
Overhead and admin 2,000
Total 10,469
Commission and Promotion incentives 10% of sales

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C losing balance at the end of the year
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
$
Year 1 2 3 4 5
Financial AnalysisFinancial AnalysisFinancial AnalysisFinancial Analysis
The 5 year cash flows have been prepared based on the above analysis of the projected revenue and costs. The
projections have been done on a monthly basis for the first year and then quarterly thereafter.
The cash flow forecast shows that the project has a negative cash flow only in the first few months and that it starts to
produce a decent cash flow of about $7,000 a month by the middle of the third quarter of the first year. The
subsequent years then show a much stronger cash flow with the closing balance11 at the end of year 2 projected to
be over $1/4 Million, at the end of year 3 over $1/2 Million and at the end of year 5 over $1.3 Million.
Capital requirement:
A capital of just over $100,000 has already been injected in the project and the financial projections shows that a
further capital of $350,000 is needed.
After the 350,000 capital is injected, the closing balance shows a positive figure all way long, which confirms that no
further funds would be required thereafter and that the project is then self supportive.
Projected sales:
The projected sales are as follows:
11 Includes the capital injections

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S ales
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
$
Year 1 2 3 4 5
Year1 Year 2 Year 3 Year 4 Year 5 Average
Projected Sales
summary
$251,400 $352,800 $500,719 $610,969 $824,250 $508,028
Profit and ROI12
The projections reveal that following the construction of the various facilities and setting up of the various activities
and proposed expansion, the operation will show a reasonable profit in the fist year increasing substantially in
subsequent years reaching just under $1/2 million
in year 5 and averaging around $230,000 over the
first five years.
The projected returns are as follows:
% Yearly pre-tax profit
Margin
15.59% 33.10% 44.78% 49.60% 56.09% 39.83%
% Total pre-tax return on
investment ( initial capital
employed)
8.68% 25.86% 49.66% 67.12% 102.40% 50.74%
12 Return On Investment

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Profit (pre-tax)
0
100000
200000
300000
400000
500000
$
Year 1 2 3 4 5
Profit Margin (pre-tax)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
%
1 2 3 4 5 Year
ROI Return On Inves tment
0%
20%
40%
60%
80%
100%
120%
Year 1 2 3 4 5
Projected return:
The projections also show that although the profit margin is
around 16 % in the first year, it increases significantly in the
second and third years, reaching about 50% in the 4th and 5th
years. This is because as the park becomes more established
and the increasing number brings in additional revenue while
the increase in the overhead and other costs is proportionally
much lower.
For the same reason, the return on the total investment of just
over $450,000 is lower in the first year increasing substantially
in subsequent years and averaging about 50% a year in the first
5 years.
The return on capital figures projection is conservative as it doesn’t take into account that capital is being repaid. In
real terms, the return on investment on the outstanding capital is much higher
Worst case scenario:
Financial analysis also examines the financial situation if things don't go according to plan. Analysis of the various
elements affecting the viability of this project shows that the main risk element is the revenue from sales which is
dependent on the number of visitors that will come to the adventure park. The other projected elements are fixed or
easily predictable. Overhead and operating expenses can be kept to the minimum and expenditure can be kept well
under control by closely following the budget. There are no apparent potential technical or operational difficulties.
Financial Projection - Worst Case Scenario (WCS):
Taking into consideration the various marketing strategies outlined above the projected sales are unlikely to fall
below those projected, but to analyze the worst case scenario if sales do not go according to plan, a 20% reduction in
sales is considered and the WCS projection illustrates the effect of such decrease in sales across the board with all
expenditure kept constant. In practice, some of the expenditure decreases with a reduction in sales but to be more
conservative this is not reflected in the worst case scenario.
Worst case scenario projection (Appendix 3) shows that even with a 20% reduction in sales and no corresponding
reduction in expenditure, the business shows the following:

SAMPLE WORK-
1. There is no additional capital requirement
2. The project still shows a very small profit in year 1, just over $62,000 in year 2 and about $148,000,
$210,000 and $336,000 in years 3, 4 and 5 respectively which is an average profit of $151,000 a year in the
first 5 years
3. Although the profit margin is low in year 1, it is about 22% in year 2, 37% in year 3, 43% in year 4 and just
over 50% in year 5.
4. The pre-tax return on Investment in year 1 is low but it builds up rapidly in year 2 and reaches 35% in year 3
and over 75% in year 5.
Worst scenario analysis shows the project can withstand adverse conditions and that a large reduction in sales, does
not require any additional capital while profitability and return on capital remain good especially after the first year.

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SSSSWOT AnalysisWOT AnalysisWOT AnalysisWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses of the business, and describes the
opportunities and threats facing it.
Strengths:
The owners have already acquired an outstanding piece of land that’s ideal for the proposed activities
Proximity to tourist centers
Experienced management
Enthusiastic workforce already available to do the work
Weaknesses:
The local community is small and cannot be relied on as a source of customers for the park.
The majority of the costs have to be incurred before any revenue is received
Opportunities:
Strong expansion in ecotourism
Expanding and largely un-served markets
Using volunteers who are looking for voluntourism who would work at the park and at the same time help
the natives learn about sustainable farming practices
The various attractions can be implemented with a reasonable cost
No other similar attraction in the area and no other serious competition
More activity in the area from new roads and new pipelines
Huge potential for expansion
Threats:
A major reduction in the number of tourists due to the global recession
It is proposed to cash in on the strengths and opportunities, be aware of the weaknesses and address the threats.
ImplementationImplementationImplementationImplementation
The following areas will be monitored as follows to gauge performance:
Measurement Review Frequency Target
Sales Monthly Projected sales
Expenses Monthly Projected expenditure
Web Site Traffic Monthly To be set
Referrals Monthly To meet projected sales
Customer Satisfaction Quarterly 100% customer satisfaction

SAMPLE WORK-
AppendicesAppendicesAppendicesAppendices

Advernture Park Business Plan

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